EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

SideChannel Reports FY 2026 First Quarter Results

 

Financial results conference call on Tuesday, February 17 @ 4:30 P.M. ET

 

WORCESTER, MA / ACCESSWIRE / February 17, 2026 / SideChannel, Inc. (OTCQB:SDCH) (“SideChannel” or the “Company”), a leading provider of cybersecurity services and technology to emerging to enterprise companies, today announced its financial results for the first quarter of the fiscal year ending September 30, 2026 (“FY 2026”).

 

FY 2026 First Quarter Highlights

 

  ● Revenue of $1.8 million, representing $134 thousand, or 7.0%, less than fiscal year ended September 30, 2025 (“FY 2025”) first quarter revenue of $1.9 million.
  ● Gross margin of 51.2%, 540 basis points higher than 45.8% gross margin for FY 2025.
  ● Operating expenses increased $229 thousand, or 21.2%, compared to FY 2025.
  ● Net loss of $396 thousand, or $0.09 per share, versus net loss of $195 thousand, or $0.04 per share, in FY 2025.
  ● Trailing twelve-month revenue retention of 65.2% as of December 31, 2025, compared to 63.6% as of September 30, 2025.
  ● Cash, cash equivalents, and short-term investments decreased by $570 thousand from September 30, 2025, to an ending balance of $595 thousand at December 31, 2025.

 

SideChannel will host a conference call on February 17, 2026, at 4:30 P.M. Eastern Time to discuss its FY 2026 first quarter results and provide an update on the Company’s initiatives.

 

Management Comments

 

Commenting on the results for the quarter ended December 31, 2025, Brian Haugli, SideChannel’s President, Chief Executive Officer and Chairman of the Board, said, “Jamie Wolf, our Chief Marketing Officer, is providing excellent leadership to our Enclave marketing campaign. Her presence fills a gap we identified in effectively telling the Enclave story to our target market. Ms. Wolf is being supported by Anna Seacat, a recent addition to our Board. Our increased participation in strategic partnerships, relevant industry events, and speaking opportunities have been the catalysts for potential customers exploring how Enclave solves critical business challenges, such as business email compromise and certificate lifecycle management.”

 

Mr. Haugli continued, “We have been addressing our declining revenue through improvements in our marketing and selling personnel and processes. It will take time for these improvements to translate into revenue impacts, but we are seeing the precursors to revenue growth in our marketing KPIs and in our sales pipeline. We expect to reduce our annual operating costs by $930 thousand during the balance of FY 2026 to extend our cash runway and bolster our investments in Enclave marketing.”

 

Haugli Appointed Chairman

 

Mr. Haugli was appointed Chairman of the Board effective February 12, 2026. Mr. Haugli succeeds Deborah MacConnel, who previously announced her retirement from the Board. Ms. MacConnel presided over the Board through the Company’s 2026 Annual Meeting of stockholders held on February 12, 2026. The Board also appointed Ms. Seacat as a member of the Audit Committee, effective February 12, 2026.

 

CALL INFORMATION

 

Date: Tuesday February 17, 2026, at 4:30 P.M. Eastern Time
   
Dial In: Toll Free: 888-506-0062
  International: 973-528-0011
  Participant Access Code: 835324

 

A webcast of the call will also be available: https://www.webcaster5.com/Webcast/Page/2071/53378

 

Participants may register in advance for the call using the webcast link.

 

The call will include management remarks and a live question and answer session. Questions may be submitted prior to the meeting using [email protected].

 

 

 

 

The Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, is expected to be filed today with the Securities and Exchange Commission and will be available at https://investors.sidechannel.com/sec-filings.

 

Financial tables follow.

 

SIDECHANNEL, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

   Three Months Ended 
   December 31, 
   2025   2024 
Revenues  $1,774   $1,908 
Cost of revenues   865    1,034 
Gross profit   909    874 
           
Operating expenses          
General and administrative   677    660 
Selling and marketing   457    267 
Research and development   175    153 
Total operating expenses   1,309    1,080 
Operating loss   (400)   (206)
           
Other income, net   7    13 
Net loss before income tax expense   (393)   (193)
           
Income tax expense   3    2 
Net loss  $(396)  $(195)
Net loss per common share – basic and diluted  $(0.09)  $(0.04)
Weighted average common shares outstanding – basic and diluted   4,446,713    4,346,574 

 

The Company’s weighted average common shares outstanding and net loss per common share – basic and diluted for the three months ended December 31, 2025, and December 31, 2024, have been retroactively restated for the 52:1 reverse stock split that became effective on January 22, 2026.

 

 

 

 

SIDECHANNEL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 

   December 31, 2025   September 30, 2025 
   (Unaudited)     
ASSETS          
Current assets          
Cash and cash equivalents  $495   $1,065 
Short-term investments   100    100 
Accounts receivable, net   686    553 
Prepaid expenses and other current assets   328    374 
Total current assets   1,609    2,092 
           
Fixed assets   13    17 
Goodwill   1,356    1,356 
Total assets  $2,978   $3,465 
           
LIABILITIES & STOCKHOLDERS’ EQUITY          
Current liabilities          
Accounts payable and accrued liabilities  $445   $515 
Deferred revenue   677    801 
Income taxes payable   9    6 
Total current liabilities   1,131    1,322 
           
Total liabilities   1,131    1,322 
           
Commitments and contingencies          
           
Common stock, $0.001 par value, 681,000,000 shares authorized; 4,446,713 shares issued and outstanding as of December 31, 2025, and September 30, 2025,   4    4 
Additional paid-in capital   22,974    22,874 
Accumulated deficit   (21,131)   (20,735)
Total stockholders’ equity   1,847    2,143 
Total liabilities and stockholders’ equity  $2,978   $3,465 

 

 

 

 

About SideChannel

 

Our mission is to make cybersecurity simple and accessible for mid-market and emerging companies, a market that we believe is currently underserved. We believe that our cybersecurity product and service offerings provide cybersecurity and privacy risk management solutions for our customers. We anticipate that our target customers will continue to need cost-effective security solutions. We continue to expand our catalogue of services and solutions to address the cybersecurity needs of our customers, including virtual Chief Information Security Officer (“vCISO”), cyber program strategy, zero trust, third-party risk management, compliance readiness, cloud security services, privacy, threat intelligence, managed end-point security solutions, and cybersecurity awareness.

 

We are marketing and selling Enclave, a proprietary software product that simplifies important cybersecurity tasks to achieve “microsegmentation.” By combining zero trust network access with certificate management and machine identity, Enclave seamlessly creates a unified security architecture that eliminates traditional network vulnerabilities. This integration enables IT teams to enforce precise access policies based on verified machine identities. Certificate-based identities allow a simplified management for any certificate-based communication, while the zero trust framework continuously validates every connection attempt. This powerful combination delivers robust security without the typical management overhead, allowing organizations to implement sophisticated microsegmentation strategies with remarkable simplicity and minimal resource requirements. Learn more at sidechannel.com. 

 

Investors and shareholders are encouraged to receive press releases and industry updates by subscribing to the investor email newsletter and following SideChannel on X and LinkedIn.

 

You may contact us at:

 

SideChannel

 

146 Main Street, Suite 405

Worcester, MA 01608

 

Investor Contact

 

Ryan Polk

[email protected]

 

Forward-Looking Statements 

 

This press release may contain forward-looking statements, including information about management’s view of SideChannel’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes”, “hopes”, “expects”, “intends”, “plans”, “anticipates”, “potential”, “could”, “should” or “may”, and similar conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

 

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause SideChannel’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. These risk factors include, but are not limited to: that we have incurred net losses since inception, our need for additional funding, the substantial doubt about our ability to continue as a going concern, and the terms of any future funding we raise; our ability to grow revenues from our Enclave product; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop and successfully introduce new products, improve current products and innovate; unpredictability in our operating results; our ability to retain existing licensees and add new licensees; our ability to manage our growth; our ability to protect our intellectual property (IP), enforce our IP rights and defend against claims that we infringed on the IP of others; the risk associated with the concentration of our cash in financial institutions at levels above the amount protected by FDIC insurance; and other risk factors included from time to time in documents we file with the Securities and Exchange Commission, including, but not limited to, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These reports are available at www.sec.gov.

 

Other unknown or unpredictable factors also could have material adverse effects that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Further, factors that we do not presently deem material as of the date of this release may become material in the future. The forward-looking statements included in this press release are made only as of the date hereof. SideChannel cannot guarantee future results, levels of activity, performance, or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SideChannel undertakes no obligation to update these forward-looking statements after the date of this release, except as required by law, nor any obligation to update or correct information prepared by third parties.