other material
confidence high
sentiment neutral
materiality 0.65
SideChannel files SCS financials; SCS revenue up 124% in FY2021, growth slows in 9 months
SideChannel, Inc.
- SCS revenue $2.8M in FY2021 (vs $1.25M in FY2020); net income $512.6K (vs $303.9K).
- For 9 months ended June 30, 2022 unaudited: revenue $3.56M, net income ~$40K (from retained earnings change).
- Acquisition consideration: 59.9M common shares + 100 Series A preferred; earn-out up to 59.9M shares if SCS exceeds $5.5M revenue in any 12 months.
- Sellers received ~40.4% of combined common stock; could rise to ~57.5% if earn-out achieved.
- SCS had $428.9K cash, $535.6K receivables, and $50K promissory note as of June 30, 2022.