High Wire Networks Reports Improved Revenue, Profitability, and Strategic Developments in Q3 2024

High Wire Networks, Inc. (HWN) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, HWN generated revenue of $2,051,672, an increase from $1,974,464 in the same period of 2023. For the nine months, revenue rose to $6,050,793 from $5,623,104 year-over-year. The company attributed this growth to improved gross profit margins, which increased from 30% to 40%, driven by more cost-efficient software provider contracts and efficiencies from a larger install base.

Operating expenses for the third quarter decreased to $3,621,782 from $4,588,039 in 2023, primarily due to a reduction in salaries and wages. This led to a loss from operations of $(1,570,110), an improvement from $(2,613,575) in the prior year. The net loss attributable to common shareholders for the quarter was $(1,670,439), down from $(3,550,649) in 2023. For the nine-month period, HWN reported a net income of $2,014,058, a significant turnaround from a net loss of $(7,524,335) in the same period of 2023.

Strategically, HWN has undergone significant changes, including the divestiture of its technology services business unit, which was sold on June 27, 2024, for $11.2 million. This sale resulted in a gain of $7,950,773 and has been classified as discontinued operations. The company also paused operations of its AWS PR and Tropical subsidiaries in 2023, further streamlining its focus on core cybersecurity services.

As of September 30, 2024, HWN's total assets were reported at $7,844,202, down from $10,831,754 at the end of 2023, while total liabilities decreased significantly to $7,490,197 from $13,581,383. This resulted in total stockholders’ equity improving to $354,005, compared to a deficit of $(2,749,629) at the end of the previous fiscal year.

Cash reserves at the end of the reporting period stood at $140,682, a decline from $328,282 at the end of 2023. The company reported net cash used in operating activities of $(5,801,122) for the nine months, an improvement from $(7,817,319) in the same period of 2023. Additionally, HWN generated $9,767,115 from investing activities, a significant increase from $190,000 in the prior year.

Overall, HWN's financial performance reflects a strategic shift towards enhancing its cybersecurity offerings while managing operational costs effectively.