• WhiteHawk Limited's 2023 annual report indicates a year of steady revenue and strategic positioning for future growth.
• The company recognized US$1.8 million in revenue, including the first month's revenue from a US$1.2 million contract signed in December 2023.
• Annual Recurring Revenue (ARR) has been consistent at $1.4 million per year over the past three years.
• Margins for contracts over $100,000 have reached 80% due to in-house development and AI/ML-based automation.
• The company experienced a net loss after tax of US$2,844,279 for the year.
• WhiteHawk ended 2023 with a cash balance of US$103,000.
• A US$1.2M contract order with a Global Social Media Company started in December 2023.
• The company is awaiting the final award of Peraton's bid for Veterans Affairs Supply Chain Risk Management (SCRM), where WhiteHawk is a sub-contractor.
• A Critical Infrastructure Cyber Risk Assessment (CIRA) Program contract for USD $1.9M, for State and Local client via Peraton delayed in procurement and State Legislature.

Score: 5

Explanation: The report presents a mixed sentiment. While there's revenue growth and strategic positioning for 2024, the significant net loss and low cash balance raise concerns. The company's reliance on a few key contracts also adds risk.

• WhiteHawk recognized US$1.8 million in revenue during 2023, including initial revenue from a US$1.2 million contract signed in December.
• The company maintains a consistent Annual Recurring Revenue (ARR) of $1.4 million over the last three years.
• Margins on contracts exceeding $100,000 have reached 80% due to internal development and AI/ML automation.
• The company is registered as a Cyber Risk Assessment Partner with a global consulting firm, leading to weekly client engagements.
• WhiteHawk is part of a joint go-to-market campaign with Hyprfire, targeting colleges and universities in Australia and Asia.
• The company is awaiting the final award of a U.S. Veterans Affairs Supply Chain Risk Management (SCRM) bid, projecting US$1 million in revenue for May/June 2024.
• The net loss after tax for the year was US$2,844,279.
• WhiteHawk ended 2023 with a cash balance of US$103,000.
• A US$1.2M contract order with a Global Social Media Company started in December 2023.

• Steady revenue generation from contract renewals and new, smaller contracts.
• High margins of 80% on contracts over $100,000 due to in-house development and AI/ML automation.
• Consistent Annual Recurring Revenue (ARR) of $1.4 million over the past three years.
• Registration as a Cyber Risk Assessment Partner with a global consulting firm, leading to client engagement.
• Execution of a joint go-to-market campaign with Hyprfire to expand business in Australia and Asia.
• New SaaS Solution sales and distribution channel being put in place for Cyber Risk Programs and Radars at the U.S. State and Local level nation-wide.

• The company experienced a net loss after tax of US$2,844,279 for the year.
• WhiteHawk ended 2023 with a low cash balance of US$103,000.
• Revenue reported does not include US$421K unearned revenue already invoiced in 2023.
• A Critical Infrastructure Cyber Risk Assessment (CIRA) Program contract for USD $1.9M, for State and Local client via Peraton delayed in procurement and State Legislature.

• Reliance on a limited number of large contracts, as highlighted by the dependence on the US$1.2 million contract signed in December 2023.
• Potential delays in procurement processes, as evidenced by the 5-month delay in the final award of the Peraton bid and the delay in the Critical Infrastructure Cyber Risk Assessment (CIRA) Program contract.
• The company's low cash balance of US$103,000 at the end of 2023 raises concerns about short-term liquidity.
• The loss of the Agency (CISA) ACTS 5YR Contract which Peraton responded to as Prime with WHK as sub-contractor.

WhiteHawk aims to optimize its financial position with recurring revenue from SaaS annual subscriptions of WHK and Partner Solutions, focusing on executing near-term wins with Peraton and Carahsoft, and growing consulting firm partnerships.

• 2023 was another solid foundation year that has positioned 2024 to be a growth year for WhiteHawk.
• FBI Director Wray issued a stark warning on the growing threat posed by Chinese cyberattacks targeting U.S. Critical Infrastructure.

The company operates in the cybersecurity sector, focusing on cyber risk management and supply chain risk management, leveraging AI/ML technologies to provide scalable and automated solutions.

• WhiteHawk's focus on AI/ML-driven cyber risk assessment aligns with industry trends towards automation and proactive threat detection, similar to companies like CrowdStrike and Palo Alto Networks.
• The company's partnership with Carahsoft mirrors the strategies of other cybersecurity firms seeking to expand their reach within the U.S. government sector, akin to how companies like FireEye (now Trellix) have leveraged government contracts.
• The emphasis on supply chain risk management reflects a growing concern in the industry, with companies like SecurityScorecard and BitSight offering similar services, though WhiteHawk differentiates itself with its SaaS and PaaS models.

• Shareholders may be concerned about the increased net loss and low cash balance, but encouraged by the potential for future growth.
• Employees may experience job security given the low cash balance.
• Customers could benefit from the company's focus on AI/ML-based automation and scalable solutions.
• Suppliers and creditors may be concerned about the company's ability to meet its financial obligations given the low cash balance.

• Execute on near-term US Federal, State and Local wins with Peraton and Carahsoft.
• Grow current Consulting Firm formal and informal business partnerships.
• Continue to advance AI/ML automated SaaS/PaaS Product lines.

• January 19, 2018: Terry Roberts appointed as Chief Executive Officer and Executive Chair
• July 14, 2017: Philip George appointed as Non-Executive Director
• November 13, 2020: Melissa King appointed as Non-Executive Director
• August 31, 2021: Brian A Hibbeln appointed as Non-Executive Director
• October 2022: WhiteHawk executed a share subscription agreement with Lind Global Fund II, LP.
• May 10, 2023: Shareholders approved the issue of 25,029,711 Stock Appreciation Rights (SAR) units to Terry Roberts.
• December 2023: Start of US$1.2M contract order with Global Social Media Company.
• March 7, 2024: WhiteHawk received the full agreed proceeds, net of costs, from an oversubscribed A$2m placement.
• March 28, 2024: Date of the Directors' Declaration and Corporate Governance Statement approval.
• April 2024: Expected final award of Peraton's bid for Veterans Affairs Supply Chain Risk Management (SCRM).
• May/June 2024: US$1M projected revenue from Peraton's bid for U.S. Veterans Affairs Supply Chain Risk Management (SCRM).