Sidechannel Inc

Greetings. Welcome to the Side Channel Fiscal Year 2024 Q1 Financial Results Update Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Brian Hoagley.

You may begin. Thanks, John. Hello, everyone.

Brian Hoagley, CEO of SideChannel. You can find us online at sidechannel.com or under ticker symbol FDCH. I'm joined today with our CFO, Ryan Polk, and we just wanted to briefly cover our Q1, have some comments on our go forward and some numbers, and then we will go to questions from the phone line. So John will take over on that and dial you in and you can ask your question and then we will respond. So overall, you know, another quarter under our belt. You know, we close out the calendar year 2023, but we start our fiscal year 2024. Traditionally, this time of year is interesting time when you're working in IT if anybody has you see quite a bit of activity and then you see lulls so this was not an uncommon quarter for side channel and a lot for IT you're seeing kind of a ramp down on people working or scheduling work to be done at the end of the year mostly because they are getting things set up for the calendar year coming up where budgets reset January 1. So we'll go over some of those numbers. Ryan will hit those highlights. But overall, pretty pleased with the clients that we were able to start working with, relationships that we started building, and setting ourselves up and our pipeline for this year. You know, on the services side, you know, it's been great. David and the operations team now, as you saw a press release recently, as we promoted Matt Klein, Eric Gauthier, and Dele to new roles to lead the operations and delivery. Obviously, we're focusing a lot on customer success, customer happiness, and a lot of that is due to how our folks are managing and leading and delivering. So very excited about the growth there and what we're setting ourselves up for as we expand to meet new client demand. You know, we need the leadership in place to be able to support our delivery teams and elsewhere. So having these three new folks underneath David's leadership is just a step in the right direction and setting us up for more growth and success. So very happy with that on the services side. On the Engineering and expansion, we're constantly looking for new opportunities. We've put a lot of effort into looking into our current client base and trying to figure out ways to figure out where to expand in current clients, looking for new opportunities, things like that, trying to make sure that we're meeting the needs that our CISOs are identifying, our clients are asking about. Also, we see a big change in regulatory landscapes. New SEC rules impacting publicly traded companies and the new requirements for public companies to meet those cyber requirements. That's been a big kind of growing discussion, and it's something that we're positioning ourselves to be able to work with clients in. And we're very excited about it. If you read our 10K, you'll see that we actually completed one of the first ones to publish new disclosure statements and language in a 10-K. We've gotten some really good feedback that we might have set a bit of a standard on that, or at least a good way about how to look at what that is. All of that type of work is the type of work that SideChannel is stepping in and fulfilling for customers. And we're looking for more customers that are in need of that. And I think we're just going to see that really kind of expand as we move forward. Overall, I'm very happy with where we are and what we're doing. On the product side, we've seen some good adoption and movement on Enclave. You'll note that in the press release, we're still kind of really viewing it in a beta phase, but we've had a number of solid proof concepts, adoptions by clients, and interest that we're just establishing and building out that pipeline for Enclave. Overall, you know, you've got to look at the whole industry as a whole. Zero trust is new. The concept is generally new from an adoption standpoint across organizations. Traditionally, 10,000, 25,000 plus person or employee enterprises are at the forefront of adopting any type of zero trust technology. We feel very confident in the tech that we have built. You know, kudos to Nick, our CTO, and Don and the development team on what they've done with this and what we're bringing to market and showcasing in demos and discussions. So, again, we feel very positive about the product. We know we've got a good solution that meets the need from our years of experience having been cybersecurity professionals, and we're starting to see that interest get an uptake from clients as well as non-current clients, you know, just net new folks that we're talking with. So again, overall, just kind of a recap of what we've been working on, what we've been looking at, and we're going to continue on the same track through 2024 and forward. So with that, I'll hand it over to Ryan, and we'll touch on some of the financial aspects, and then we'll try to get into some questions. Ryan?