WHK
Whitehawk Limited
ASX
Preliminary Final Report
Sentiment:
Preliminary Final Report
27 February 2025 4:04 PM
WhiteHawk Limited reports a 15.6% increase in revenue to US$2.1M for 2024, alongside strategic contract renewals and new partnerships aimed at expanding its cybersecurity offerings.
Better than expected
The company's revenue increased by 15.6% compared to the previous year.
Summary
- WhiteHawk Limited (ASX: WHK) reported US$2.1M in revenue for 2024, a 15.6% increase compared to the previous year.
- This figure does not include US$801K in unearned revenue already invoiced in 2024.
- A significant US$2.4M contract was signed in December 2024, with delivery scheduled between January 2025 and December 2026.
- The company's net loss after income tax was US$1.8M, which includes non-cash expenditures such as depreciation (US$58K), share-based payments (US$37K), and finance expenses (US$185K).
- WhiteHawk ended 2024 with a cash balance of US$1.1M.
- A two-year contract renewal with a Global Social Media Company is valued at US$2.4M, commencing in January 2025.
- The company is collaborating with the University of South Florida (USF) to provide cybersecurity internships through its Cyber Risk Analyst Platform-as-a-Service (PaaS).
Sentiment
Score: 7
Explanation: The report shows positive revenue growth and improved cash flow management, but the net loss remains a concern. The strategic contract wins and focus on talent development are encouraging signs for the future.
Highlights
- WhiteHawk's revenue increased by 15.6% to US$2.1M in 2024.
- The company secured a US$2.4M contract with a Global Social Media Company, spanning from January 2025 to December 2026.
- WhiteHawk ended 2024 with a cash balance of US$1.1M.
- Operating cash outflows decreased by 64% from US$3.05M in 2023 to US$1.11M in 2024.
- Receipts from customers increased by 178% to US$2.48M.
- The net asset position improved from (US$806K) to US$63K.
Positives
- Revenue increased by 15.6% to US$2.1M in 2024.
- The company secured a US$2.4M contract with a Global Social Media Company.
- Operating cash outflows decreased by 64% from US$3.05M in 2023 to US$1.11M in 2024.
- Receipts from customers increased by 178% to US$2.48M.
- Cost savings were achieved in payroll (19%), travel (61%), interest (30%) and administration expenses (37%).
- The net asset position improved from (US$806K) to US$63K.
Negatives
- The company reported a net loss after income tax of US$1.8M for 2024.
- The loss includes non-cash expenditures for depreciation expense of US$58K, share-based payments expense of US$37K and finance expense of US$163K.
Risks
- State and local entities often lack cybersecurity expertise and funding.
- Regulatory burdens can outweigh proactive risk mitigation.
- Traditional cybersecurity methods may not keep up with AI-enabled threats.
- Organizations need to prioritize the protection of critical data and services.
Future Outlook
WhiteHawk is focused on scaling its Cyber Risk Analyst Platform-as-a-Service (PaaS) initiative with the University of South Florida (USF) to provide hands-on cybersecurity internships and address cybersecurity challenges for state and local critical infrastructure entities.
Industry Context
WhiteHawk operates in the growing cybersecurity market, providing solutions to businesses of all sizes. The company's focus on automated cyber risk monitoring and risk mitigation services aligns with the increasing need for proactive cybersecurity measures in the face of evolving threats.
Comparison to Industry Standards
- It is difficult to compare WhiteHawk directly to industry standards without knowing the specific details of their contracts and services.
- However, companies like CrowdStrike and Palo Alto Networks are much larger and have a broader range of cybersecurity solutions.
- WhiteHawk's focus on smaller businesses and specific cyber risk assessments could be a niche market.
Stakeholder Impact
- Shareholders: Increased revenue and improved cash flow are positive signs, but the net loss may be a concern.
- Employees: The company's growth and new contracts could lead to increased job security and opportunities.
- Customers: WhiteHawk's cybersecurity solutions can help protect their businesses from cyber threats.
- Suppliers: Increased revenue could lead to more business opportunities for suppliers.
- Creditors: Improved cash flow and a stronger balance sheet reduce the risk of default.
Next Steps
- Deliver the US$2.4M contract with the Global Social Media Company between January 2025 and December 2026.
- Execute Statements of Work with Norwich University Applied Research Institute (NUARI).
- Pursue partnership opportunities with Zura Group.
- Continue collaboration with the University of South Florida (USF) to scale the Cyber Risk Analyst Platform-as-a-Service (PaaS) initiative.
Key Dates
- 31 December 2023: Previous corresponding period for financial results.
- January 2025 to December 2026: Period for delivery of US$2.4M contract with Global Social Media Company.
- 22 January 2025: Response to State of Ohio $500K RFP for Cybersecurity Services.
- 06 February 2025: Response to City of Atlanta RFP for Cyber-Supply Chain Risk Management (C-SCRM Cyber Risk Radar) 3-year contract.
- April 2025-June 2025: PMY New Client, Grand Slam Track scoping underway Cyber Risk Services for 4 Events.
- 31 December 2024: End of the reporting period for the preliminary final report.
Keywords
WHK
Whitehawk Limited
ASX
Sector: Software & Services
Filings with Classifications
Capital raise
17 April 2025 12:02 AM
Notice of Annual General Meeting
- The company is seeking approval to issue future shares to Lind Partners under the 2024 Agreement.
- The company is seeking approval of a 7.1A mandate to issue up to 10% of the company's issued capital.
Capital raise
28 March 2025 12:03 AM
Annual Report
- The company has the ability to continue to raise additional funds on a timely basis pursuant to the Corporations Act 2001.
Worse than expected
28 March 2025 12:03 AM
Annual Report
- The company reported a net loss after tax of US$1,780,630, indicating that the company is not yet profitable.
Better than expected
27 February 2025 4:04 PM
Preliminary Final Report
- The company's revenue increased by 15.6% compared to the previous year.
Capital raise
10 February 2025 5:54 PM
General Meeting Results
- The company received approval to issue Tranche 2 placement shares.
- The company received approval to issue placement options.
- The company received approval to issue broker options.
- The company received approval to issue securities to Peak in lieu of fees.
- The company received approval to issue securities to Viaticus Capital.
- The company received approval to issue incentive options to Viaticus Capital.
Worse than expected
30 January 2025 4:18 PM
Quarterly Activities Report
- The company reported a net cash loss from operations of US$84,000 for the quarter, indicating worse than expected financial performance.
Capital raise
30 January 2025 4:18 PM
Quarterly Activities Report
- WhiteHawk will seek shareholder approval to raise up to $535,000 under Tranche 2 of the Placement at the General Meeting scheduled on 11 February 2025.
Capital raise
9 January 2025 7:37 PM
Notice of General Meeting
- The company is seeking approval to issue up to 53,500,000 shares at $0.01 each, potentially raising $535,000.
- The company is also issuing options to placement participants, brokers, and consultants, which could lead to further capital raises if exercised.
Better than expected
12 December 2024 6:42 PM
Contract Renewal Announcement
- The contract renewal represents increased revenue compared to the previous contract with the same client.
Capital raise
1 December 2024 9:21 PM
Capital Raise Announcement
- WhiteHawk Limited is raising capital through the issue of 120,000,000 ordinary shares at AUD 0.01000 each and 40,000,000 placement options.
- The capital raise is subject to shareholder approval by January 28, 2025.
Delay expected
1 December 2024 9:21 PM
Capital Raise Announcement
- The issue date for the shares and placement options has been delayed pending shareholder approval, which is expected by January 28, 2025.
Capital raise
1 December 2024 9:10 PM
Securities Quotation Application
- Further share issues are planned to complete the placement, subject to shareholder approval.
Capital raise
25 November 2024 5:28 PM
Capital Raise Proposal
- WhiteHawk Limited is proposing to issue 56,000,000 ordinary shares and 28,666,667 options.
- The funds raised will be used for business growth, further development of AI-based cybersecurity solutions, debt repayment, and working capital.
Capital raise
25 November 2024 5:28 PM
Capital Raise Announcement
- Further capital raising is planned, subject to shareholder approval, involving the issuance of additional shares and options.
Better than expected
25 November 2024 5:28 PM
Capital Raise Announcement
- The successful A$1.7 million capital raise exceeded expectations, providing WhiteHawk with the resources to pursue its growth strategy and repay debt.
Capital raise
21 November 2024 5:13 PM
Trading Halt Announcement
- WhiteHawk Limited is planning a capital raising.
Capital raise
12 September 2024 6:19 PM
Notice of General Meeting
- Resolution 1 seeks ratification of a prior share issue of 15,000,000 shares to Lind Partners.
- Resolution 2 proposes issuing 12,500,000 options to Lind Partners.
- Resolutions 3 and 4 seek approval for future share issuances to Lind Partners.
- Resolution 5 proposes issuing 200,000 shares to related party Phil George.
Capital raise
6 August 2024 7:37 PM
Capital Raise Announcement
- WhiteHawk has secured an initial A$500,000 investment from Lind Global Fund II, LP.
- The Investment may be increased up to A$1M at a later stage on the same terms subject to mutual agreement.
- The company will issue 12,500,000 unlisted 3-year options to Lind at a 2c exercise price, subject to shareholder approval.
Delay expected
31 July 2024 1:45 AM
Quarterly Activities Report
- The final award of Peraton's bid for the Veterans Affairs Supply Chain Risk Management (SCRM) contract is delayed.
- The contract competition with D&B on the U.S. General Services Administration (GSA) SCRIPTS BPA Contract Vehicle has been delayed.
Capital raise
31 July 2024 1:45 AM
Quarterly Activities Report
- The Company is currently exploring funding options in the market in the event of delay of pending new contracts.
Capital raise
3 April 2024 10:34 PM
Notice of Annual General Meeting
- The company is seeking approval to issue up to 44,444,445 Placement Options to placement participants.
- The company is seeking approval to issue up to 17,777,778 Lead Manager Options to Alpine Capital.
- The company is seeking approval to issue up to 12,500,000 Consultant Options to Viaticus Capital.
- The company is seeking approval for a 7.1A mandate, allowing the company to issue equity securities up to 10% of its issued capital.
Delay expected
27 March 2024 8:34 PM
Annual Report
- The final award of Peraton's bid for Veterans Affairs Supply Chain Risk Management (SCRM) was delayed by 5 months.
- 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.
Worse than expected
27 March 2024 8:34 PM
Annual Report
- The company reported a net loss after tax of US$2,844,279, which is worse than the previous year's loss of US$1,537,740.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.