High Wire Networks, Inc. reported a revenue increase of 21.3% for the fiscal year ending December 31, 2024, generating $8.38 million compared to $6.91 million in 2023. Despite this growth, the company continued to face significant operational challenges, resulting in a net loss attributable to common shareholders of $384,826, a notable improvement from a loss of $14.49 million in the previous year. The operating loss for 2024 was $8.55 million, down from $11.95 million in 2023, indicating a reduction in operational inefficiencies.
The company underwent significant strategic changes during the fiscal year, including the divestiture of its ADEX Entities and the Technology Services business unit, which were classified as discontinued operations. These moves were part of a broader strategy to streamline operations and focus on core competencies in managed cybersecurity and network services. Additionally, High Wire formed a new entity, Overwatch Cyberlab, Inc., which is 80% owned by the company, further emphasizing its commitment to cybersecurity solutions.
Operationally, High Wire Networks reported a customer base of over 1,300 paying clients and more than 250 established Managed Service Provider (MSP) channel partners. The company’s Overwatch managed security platform continues to gain traction, with nearly 100% of its revenue derived from long-term, recurring contracts. However, the company’s workforce has been reduced to 38 full-time employees and 5 part-time employees, reflecting ongoing cost-cutting measures in response to financial pressures.
The company’s financial health remains precarious, with a working capital deficit of $6.22 million as of December 31, 2024, an improvement from $9.92 million in 2023. High Wire's total indebtedness stood at $2.68 million, with a significant portion due within the year. The management has indicated that additional financing will be necessary to support operations and growth, and they are actively seeking equity financing and restructuring existing debt to improve liquidity.
Looking ahead, High Wire Networks anticipates continued growth in its cybersecurity segment, driven by multi-year contracts and an expanding client base. The company aims to leverage its investments in automation and artificial intelligence to enhance service delivery and operational efficiency. However, management has cautioned that achieving sustained profitability will depend on successfully navigating market conditions and executing its strategic initiatives.
About HIGH WIRE NETWORKS, INC.
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