WHK
Whitehawk Limited
ASX
Quarterly Activities Report and Appendix 4C
Sentiment:
Quarterly Activities Report
30 January 2025 4:18 PM
WhiteHawk Limited reports US$2.5M in year-to-date invoicing and a renewed contract with a Global Social Media Company, alongside new partnerships and product developments in its December 2024 quarterly activities report.
Worse than expected
The company reported a net cash loss from operations of US$84,000 for the quarter, indicating worse than expected financial performance.
Capital raise
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.
Summary
- WhiteHawk Limited invoiced US$696K in the fourth quarter, bringing the year-to-date total to US$2.5M.
- The company has US$2.5M in receivables as of December 31, 2024.
- A significant 2-year contract renewal with a Global Social Media Company for $2.4M was secured, starting January 1, 2025.
- WhiteHawk partnered with Zura Group, with three proposals valued at $780K per year, $450K for 6 months, and a third under client review for the first quarter of 2025.
- A paid pilot program with the University of South Florida (USF) was completed, leading to approval for a follow-on contract in 2025.
- A new Open-Source Intelligence (OSINT-PAI) product line was developed with an AI partner, with Phase 2 baseline set at $333K for the first quarter of 2025.
- Cyber Risk Services scoping is underway for PMY New Client, Grand Slam Track for 4 events between April and June 2025.
- New Cyber Due Diligence requirements are being scoped for 8 Degrees East in January 2025.
- An updated proposal is in process for FISERV to offer WhiteHawk's Cyber Risk Solutions to Mid-Tier Financial Sector Clients.
- A new Cyber Risk Services initiative is in partnership with the University of Southern California, San Diego (UCSD) Digital Science Dept.
- Meetings with new Healthcare Leads resulted from a marketing campaign in the last quarter of 2025.
- The company's revenue for the quarter was US$718K.
- WhiteHawk's net cash from operations in the quarter was a loss of US$84,000.
- The company is managing expenses within the planned budget, averaging US$267,000 per month in total operating expenses over the last quarter.
Sentiment
Score: 6
Explanation: The document presents a mixed picture with positive contract wins and product development, but also a net cash loss and a need for a capital raise. The sentiment is cautiously optimistic.
Highlights
- WhiteHawk invoiced US$696K in the fourth quarter, contributing to a year-to-date total of US$2.5M.
- The company holds US$2.5M in receivables as of December 31, 2024.
- A 2-year contract renewal with a Global Social Media Company was secured for $2.4M, starting January 1, 2025.
- A partnership with Zura Group includes three proposals, with the largest valued at $780K per year.
- A new Open-Source Intelligence (OSINT-PAI) product line was developed with an AI partner, with Phase 2 baseline set at $333K for the first quarter of 2025.
- The company's revenue for the quarter was US$718K.
- WhiteHawk's net cash from operations in the quarter was a loss of US$84,000.
Positives
- The company secured a significant 2-year contract renewal with a Global Social Media Company for $2.4M.
- New partnerships with Zura Group and universities like USF and UCSD are expanding WhiteHawk's reach.
- The development of a new OSINT-PAI product line with an AI partner indicates innovation and growth.
- The company is actively pursuing new opportunities in the U.S. Federal, State, and Local Government sectors.
- WhiteHawk is managing expenses within the planned budget.
Negatives
- The company experienced a net cash loss from operations of US$84,000 for the quarter.
- Salaries were reduced for selected employees to manage operational expenditures.
Risks
- The company's net cash from operations was negative for the quarter, indicating potential financial strain.
- The reliance on securing new contracts and renewals poses a risk to future revenue.
- The company is dependent on the successful development and adoption of new product lines.
- The company is exposed to risks associated with government contracts, including delays and down-selects.
Future Outlook
WhiteHawk is focused on expanding its product line, particularly in the area of Global Entity Illumination, and pursuing opportunities in the U.S. Federal, State, and Local Government sectors. The company is also working on new partnerships and initiatives to drive future growth.
Management Comments
- WhiteHawk continues to manage expenses within planned budget.
- In continuous effort to manage operational expenditures, reduced salaries on selected employees to take into effect 2025.
Industry Context
The report reflects a growing demand for cybersecurity services, particularly in areas like third-party risk management and supply chain security. WhiteHawk's focus on AI-enabled solutions and government contracts aligns with current industry trends.
Comparison to Industry Standards
- WhiteHawk's focus on cyber risk management and supply chain security aligns with industry trends, similar to companies like CrowdStrike and Palo Alto Networks.
- The company's partnerships with universities for research and development are similar to initiatives seen at companies like FireEye.
- The development of a new OSINT-PAI product line is a move towards advanced threat intelligence, comparable to offerings from Recorded Future.
- The company's government contracts are similar to those pursued by companies like Booz Allen Hamilton and CACI International.
Stakeholder Impact
- Shareholders may be concerned about the net cash loss but encouraged by new contracts and product development.
- Employees may be affected by salary reductions, but also see opportunities for growth with new initiatives.
- Customers will benefit from new and improved cybersecurity solutions.
- Suppliers may see increased business opportunities with WhiteHawk's growth.
- Creditors may be concerned about the net cash loss but reassured by the company's efforts to manage expenses.
Next Steps
- Submit proposal for Cyber Risk Radar on 06FEB25.
- Seek shareholder approval for capital raise on 11 February 2025.
- Continue conversations with Cailabs U.S. Subsidiary for subscription renewal in February 2025.
- Scope Cyber Risk Services for PMY New Client, Grand Slam Track for 4 events between April and June 2025.
- Continue to pursue opportunities in the U.S. Federal, State, and Local Government sectors.
Key Dates
- August 2019: Base year commenced for U.S. Federal Government contract.
- 16SEP24: Submission date for GSA SCRIPTS BPA.
- 31 December 2024: End of the reporting period for the quarterly activities report.
- JAN25: Scoping in process for 8 Degrees East new Cyber Due Diligence requirements.
- 28/30JAN25: New Cyber Risk Services initiative in partnership with University of Southern California, San Diego (UCSD) Digital Science Dept in support of CENIC.
- 06FEB25: Cyber Risk Radar proposal response to be submitted.
- 11 February 2025: General Meeting scheduled to seek shareholder approval to raise up to $535,000 under Tranche 2 of the Placement.
- February 2025: Conversations initiated with Cailabs U.S. Subsidiary for subscription renewal.
- APR25-JUN25: Cyber Risk Services for 4 Events for PMY New Client, Grand Slam Track.
Keywords
Cybersecurity, Cyber Risk, Risk Management, SaaS, OSINT, AI, Government Contracts, Software, Data Analysis, Vulnerability Assessment
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.