SideChannel Inc (SDCH) reports earnings

The report was filed on February 5, 2025

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SideChannel Inc (SDCH+2.28%). has submitted its 10-Q filing for the quarterly period ended December 31, 2024.

The filing includes financial statements for the quarter, showing an increase in revenue to $1,908,000 from $1,736,000 in the same quarter the previous year. This growth is attributed to an increase in vCISO engagements and higher adoption of Cybersecurity Services and Software.

Cost of revenues for the quarter was $1,034,000, compared to $891,000 in the same quarter of the previous year. The increase is due to higher revenue derived from third-party software and services.

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The company reported a gross profit of $874,000 for the quarter, compared to $845,000 in the previous year, with the gross margin decreasing from 48.7% to 45.8%.

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General and administrative expenses decreased to $660,000 from $709,000, primarily due to reduced costs related to being a publicly traded company.

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Selling and marketing expenses remained relatively stable at $267,000, while research and development expenses increased to $153,000 from $126,000, due to higher personnel costs.

Net loss for the quarter was $195,000, compared to $246,000 in the previous year.

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Cash provided by operating activities was $75,000, with no cash used in investing or financing activities during the quarter.

SideChannel had working capital of $1,235,000 as of December 31, 2024. The company believes its existing cash and anticipated cash flows will be sufficient to meet its requirements for the next 12 months.

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The filing also details a settlement agreement that required the issuance of 356,400 shares of common stock and a cash payment of $95,000.

SideChannel continues to focus on increasing the adoption of its Enclave software, securing new vCISO clients, and expanding its Cybersecurity Software and Services offerings.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SideChannel Inc quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.