Sidechannel Inc

Welcome to the side channel fiscal year 2025 second quarter financial results update call. At this time all participants are on a listen only mode and 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, Mr. Brian Hoagley. Sir, the floor is yours.

Thank you. Good afternoon, everyone, and thank you for joining SideChannel's Just Go Q2 2025 investor call. I'm pleased to report continued progress in our financial performance, operational execution, and strategic focus this quarter. Despite a modest 1.7 percent decrease in year-over-year revenue, we delivered meaningful improvements in profitability and operational efficiency. Our gross margin rose to 49.7 percent, up nearly five percentage points from the same quarter last year. This improvement reflects discipline, cost control, better service delivery margins, and early contribution from enclave sales. We also reduced operating expenses by 11.2%, narrowing our net loss to just $54,000. This is a significant step forward compared to the $253,000 loss reported in Q2 of last year. Year to date, we've generated 3.7 million in revenue, a 3.8% increase over the first half of FY2024, These results demonstrate resilience and execution across our core offerings, even as we reposition parts of the business for long-term growth. We acknowledge the challenges in our VC services segment. As previously mentioned, we've experienced the loss of a handful of larger contracts in the back half of last fiscal year, which has impacted our trailing 12-month revenue retention. That said, we've built a more scalable targeted go-to-market strategy and enhanced our sales capabilities, which are beginning to show traction. We believe these investments will yield strong results as the market demand for cybersecurity leadership continues to rise, particularly among mid-sized and regulated organizations. So looking ahead, we're highly focused on accelerating adoption of Enclave, our zero-trust network solution. Enclave continues to gain attention from both public and private sector organizations seeking secure segmented communication in increasingly complex environments. And we're confident in its role as a long-term growth driver. We also improved our cash position this quarter, ending March with $1.3 million in cash, cash equivalents, and short-term investments. So our ability to improve margin, reduce losses, and maintain a lean operational footprint all while continuing to fund product development and go-to-market activities is a testament to our disciplined approach. So really, in summary, we remain confident in our strategy. One, we're executing on our vision to be the leading cybersecurity partner for the mid-market. Two, we're expanding relationships and acquiring new clients across our advisory and our product lines. And three, we're investing where it matters to drive future growth, improve client outcomes, and enhance shareholder value. Thank you for your continued support and beliefs inside Channel's mission. We look forward to updating you again next quarter.

I'll now turn it over to our CFO, Ryan Polk, for a more detailed review of the financials.