Quarterly ResultMay 12, 2026, 08:36 AM
SideChannel Q3 Net Loss Widens to $444K; Going Concern Doubt
AI Summary
SideChannel, Inc. reported a significant increase in net loss for the three and six months ended March 31, 2026, alongside a substantial decrease in cash and total assets. The company's management has raised substantial doubt about its ability to continue as a going concern due to recurring operating losses, negative cash flows, and limited liquidity. Revenues also declined for both periods compared to the prior year, with vCISO services experiencing a notable decrease.
Key Highlights
- Management raised substantial doubt about SideChannel's ability to continue as a going concern.
- Net loss for Q3 2026 widened to $444 thousand, up from $54 thousand in Q3 2025.
- Revenues for Q3 2026 decreased 16.8% to $1,576 thousand from $1,894 thousand YoY.
- Cash and cash equivalents decreased 70.8% to $311 thousand as of March 31, 2026, from $1,065 thousand.
- Net cash used in operating activities was $854 thousand for the six months ended March 31, 2026.
- Total assets decreased 24.4% to $2,620 thousand as of March 31, 2026.
- vCISO Services revenue decreased to $1,621 thousand for the six months ended March 31, 2026.
- Cybersecurity Software and Services revenue increased to $1,729 thousand for the six months ended March 31, 2026.