Plurilock Security (PLUR.CN) reports $70.4 million total revenue for 2023

Plurilock Security Inc (PLUR.V) is a Canadian identity-centric AI cybersecurity solutions company. The cybersecurity company provides multi-factor authentication (MFA) solutions using behavioral-biometric, environmental, and contextual technologies.

Today, Plurilock reported fiscal 2023 financial results. All figures are stated in Canadian Dollars. Here are the milestones and highlights:

Key Business Milestones

Revenue increased to $70.4 million for the year ended December 31, 2023, as compared to $64.6 million over the same period in 2022, attributable to the strategic acquisitions of Integra and Atrion in 2022.

Gross margins increased to 8.3% for the year ended December 31, 2023, as compared to 7.7% over the same period in 2022.

High margin software sales and Professional Services for the year ended December 31, 2023, increased by 165% and 241%, respectively, year-over-year, totaling $3.8 million in revenue.

Plurilock achieved $494k in cost savings for the year ended as of December 31, 2023, as a result of streamlining operations and unlocking new business synergies across all acquisitions.

Fiscal 2023 Financial Highlights

Total revenue for the year ended December 31, 2023, was $70,420,131 as compared to $64,632,371 for the year ended December 31, 2022. Revenue for the year ended December 31, 2023, and December 31, 2022 included revenue from both the Technology Division and the Solutions Division. Revenue for year ended December 31, 2023, is significantly higher than the prior year ended December 31, 2022, as a result of the timing of the acquisitions of the (“INC”), as well as the asset acquisitions of Atrion (“ATR”) and CloudCodes (“CC”) along with the increase in organic sales volume and cross selling amongst the Solutions and Technology Division.

Hardware and systems sales revenue for the year ended December 31, 2023, totalled $55,716,530 compared to $56,919,768 respectively in the prior year ended December 31, 2022. Software, license, and maintenance sales revenue for the year ended December 31, 2023, was $11,921,540 compared to $6,970,057 in the prior year ended December 31, 2022. Professional services revenue was $2,782,061 for the year ended December 31, 2023, compared to $742,546 in the prior year ended December 31, 2022.

Hardware and systems sales revenues for the year ended December 31, 2023, accounted for 79.1% of total revenues compared to 88.1% for the year ended December 31, 2022. Software, license and maintenance sales revenues for the year ended December 31, 2023, accounted for 16.9% compared to 10.8% for the year ended December 31, 2022. Professional services revenue for the year ended December 31, 2023, accounted for 4.0% of total revenues, compared to 1.1% for the year ended December 31, 2022.

Gross margin for the year ended December 31, 2023, was 8.3% compared to 7.7% for the year ended December 31, 2022.

Adjusted EBITDA for the year ended December 31, 2023, was $(6,470,386) compared to $(6,091,476) in the prior year ended December 31, 2022.

Cash and cash equivalents and restricted cash on December 31, 2023, was $2,058,193 compared to $2,853,107 on December 31, 2022.

During the year ended December 31, 2023, the Company used $2,130,536 of cash from operating activities compared to $9,837,363 in the prior year.

Annual 2023 Highlights

On January 3, 2023, the Company issued 440,277 of common shares at $0.125 related to the convertible debenture December 31, 2022, interest payment of $55,035.

On January 17, 2023, the Company closed the third and final tranche of the Units Financing for aggregate gross proceeds to the Company of $198,995 consisting of 1,421,393 units at a price of $0.14 per unit and share issuance costs of $7,410 bringing the total gross proceeds of the Units Financing to $1,755,115.

On January 31, 2023, the Company appointed Blake Corbet, a seasoned veteran with over 25 years of investment banking and corporate experience, to its Board of Directors.

On January 31, 2023, the Company granted certain officers, employees, and consultants of the Company an aggregate of 3,908,667 options to purchase common shares at an exercise price of $0.15 per share, which will vest over four years from the grant date. As at the year ended December 31, 2023, 3,857,667 options are fully vested.

On March 2, 2023, the Company announced the completion of the SOC 2 Type II Report renewal.

On March 22, 2023, the Company was approved for an increase to its existing INC $1.5 million revolving line of credit (“INC LOC”) dated July 29, 2022, from Pathward, National Association, a division of MetaBank, N.A, for up to $2.0 million effective March 8, 2023.

On March 23, 2023, the Company announced that it has received a $3.4 million purchase order for Plurilock’s IT solutions from the Department of National Defence.

On April 4, 2023, the Company announced the appointment of Jord Tanner as the Chief Information Officer.

On June 5, 2023, the Company announced the appointment of Scott Meyers as the Chief Financial Officer.

On June 21, 2023, the Company closed the first tranche of non-brokered private placement of 4,857,588 units at a price of $0.145 per unit for aggregate gross proceeds of $704,350.

On June 28, 2023, the Company closed the second and final tranche of its non-brokered private placement of 6,499,688 units at a price of $0.145 per Unit, for aggregate gross proceeds of $942,455.

On June 28, 2023, the Company announced the repricing of 12,536,538 non-brokered private placement warrants and 765,000 convertible debenture warrants ranging from original exercise price of $0.25-$0.40 to $0.20 per warrant subject to TSX.V approval.

On August 10, 2023, the Company signed a US$393,000 contract for a project to provide cybersecurity solutions to a California state critical infrastructure agency for a period of 1 year.

On August 16, 2023, the Company signed a US$2.2 million contract with the U.S. Department of Defense (the ‘Customer’) for a period of 1 year.

On August 31, 2023, the Company established an Information Security Advisory Council aimed at promoting AI safety and guiding the Company’s strategy and technology expansion.

On September 6, 2023, the Company signed it’s first cross-sale order for PromptGuard with a US financial services firm.

On September 7, 2023, the Company signed a Contract with the State of South Carolina to expand distribution statewide in addition to signing a US$791,000 purchase order.

On October 3, 2023, the Company received a US$4.2 million sale order from the US Department of Health and Human Services.

On October 5, 2023, the Company received a US$5.1 million sale order from the US Department of Treasury.

On October 12, 2023, the Company received a notice of allowance for the US patent application covering behavioral-biometric authentication.

On October 17, 2023, the Company increased its line of credit with Pathward National Association to US$7.0 million from US$4.0 million.

On November 13, 2023, the Company began providing cybersecurity and disaster recovery services to a leading global semiconductor provider.

On November 14, 2023, the Company announced that PlurilockAI was added to the Yubikey Catalog offered by Yubico.

On December 5, 2023, the Company announced a 3-year contract renewal with the Canadia Air Transport Security Authority allowing for Plurilock to sell computing and technology peripherals.

The Company remains committed to reaching cash flow breakeven by growing Plurilock Critical Services as well as continuing to identify more opportunities to achieve financial and operational efficiencies across all business units. At the end of December 2023, Plurilock enacted a plan in accordance with this strategy and expects to realize approximately $2.0 million in savings on an annualized basis.

“We made many significant changes in 2023 and continue to move forward as we grow the business and drive forward towards profitability,” said Ian L. Paterson, CEO of Plurilock. “While the economic outlook is unclear for 2024, cybersecurity threats are on the rise and show no signs of slowing down. Increased cyber threats are one of the main drivers of our growing sales pipeline, particularly with Plurilock Critical Services.”

Ian continues, “Our focus remains on reaching cash flow breakeven by expanding the delivery of our Plurilock Critical Services to existing and new customers.”

The stock is flat at time of writing on the news of financial results.

We did have a small breakout on the daily chart with yesterday’s price action, taking out interim resistance at $0.355. The major resistance comes in at the $0.50 zone which is a major psychological level. The downtrend is still intact, but a close above $0.50 would nullify many bearish confluences.