Ryan Freemantle's questions to Plurilock Security Inc (PLCKF) leadership • Q3 2024
Question
As the moderator, Ryan Freemantle posed a series of pre-submitted questions on behalf of investors. The questions covered a wide range of topics including the financial impact of partnerships with CrowdStrike and TD SYNNEX, the reasons for the decline in hardware/software revenue, the possibility of a NASDAQ uplisting, and the impact of a Trump presidency on the business. Other topics included international expansion plans, the growth potential and revenue recognition of Critical Services, the timeline to profitability, the impact of reduced R&D spending, capital raising plans, the competitive landscape, and the sales cycle for government versus commercial clients.
Answer
The company does not break out sales by partner but sees both direct and indirect benefits. The revenue decline is a result of a strategic shift to higher-margin Critical Services, focusing on gross profit. A NASDAQ uplisting is being considered to enhance shareholder value. Management is bullish on cybersecurity demand regardless of the political administration. The focus remains on North America, though opportunities are emerging in Europe. Critical Services is shifting to longer-term contracts with revenue recognized over the service period. Profitability is a key focus, to be achieved through gross profit growth and cost discipline, funded by ongoing warrant exercises rather than new capital raises. R&D spending was optimized without impacting competitive ability. The company wins contracts through existing relationships, past performance, and a growing brand reputation. While no specific 2025 guidance was given, the strategy remains focused on profitability driven by high-margin commercial and Critical Services contracts.