Infinite Group Inc. Reports $7M Revenue and Improved Losses for Fiscal Year 2023

Infinite Group Inc., a cybersecurity software and services provider based in Pittsford, New York, reported a total revenue of approximately $7.0 million for the fiscal year ending December 31, 2023, consistent with the previous year. The company experienced an operating loss of approximately $1.9 million, an improvement from the $2.3 million loss reported in 2022. The net loss for the year was approximately $1.9 million, which included a one-time other income item of about $1.7 million from the Employee Retention Credit, compared to a net loss of $3.6 million in 2022.

The company's revenue composition revealed that managed support services accounted for approximately 64% of total sales, while cybersecurity software and consulting services made up the remaining 36%. Notably, sales of the Nodeware cybersecurity solution increased by over 63%, rising from $431,824 in 2022 to $705,562 in 2023, attributed to a reorganization of the sales team and increased marketing efforts. Conversely, sales from Webroot, a legacy product, decreased from $720,222 in 2022 to $559,215 in 2023, as the company has shifted focus away from this offering.

Operationally, Infinite Group has maintained a workforce of 51 employees as of December 31, 2023, with plans to expand in sales, technical support, and cybersecurity consulting roles to meet growing demand. The company continues to rely heavily on its channel partners for sales, with approximately 90% of revenue generated through these relationships. The firm is also focused on geographic expansion and enhancing its product offerings, particularly through its Nodeware solution, which is designed to automate network asset identification and vulnerability management.

In terms of financial strategy, Infinite Group has engaged in multiple short-term funding arrangements, netting approximately $2.2 million during 2023. The company has also been proactive in managing its debt, including a recent financing arrangement with Mast Hill Fund, L.P. for $118,000. However, as of December 31, 2023, the company reported a working capital deficit of approximately $8.5 million, raising concerns about its ability to continue as a going concern. The management has indicated that it is exploring additional financing options to support operations and growth.

Looking ahead, Infinite Group anticipates continued growth in its Nodeware sales and overall cybersecurity services, driven by increased investments in marketing and product development. The company aims to leverage its patented technologies and expand its market presence, particularly among small and medium-sized enterprises, which it identifies as an underserved segment in the cybersecurity landscape.