WHK
Whitehawk Limited
ASX
Quarterly Activities Report and Appendix 4C - quarterly
Sentiment:
Quarterly Activities Report
31 July 2024 1:45 AM
WhiteHawk Limited (ASX: WHK) reports US$362K invoicing for Q2 2024, totaling US$678K year-to-date, and secures new contracts and renewals, while facing delays in key contract awards.
Delay expected
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
The Company is currently exploring funding options in the market in the event of delay of pending new contracts.
Summary
- WhiteHawk Limited (ASX: WHK) reported invoicing of US$362K for the second quarter of 2024, bringing the year-to-date total to US$678K.
- The company's trade receivables stood at US$153K as of June 30, 2024.
- A new Cyber Risk Program was contracted with an ASX 100 Company in July 2024 for US$70K, with potential for additional features.
- A Cyber Risk Radar paid pilot was contracted with a major U.S. City for US$50K, commencing on July 17, 2024.
- The Cyber Risk Radar contract with a Federal CISO was renewed for a 5th year at USD $700K, starting August 1, 2024.
- A new Cyber Risk Radar paid pilot was contracted with the National Cybersecurity Center (NCC) in April 2024 for US$36K, targeting 50 Water System Entities.
- Demonstrations are being conducted in July and August 2024 to shape US State and City program options.
- WhiteHawk is also pursuing R&D efforts with the U.S. Department of Defense, focusing on supply chain risk and information operations.
- The final award of Peraton's bid for a US$2B a year Veterans Affairs Supply Chain Risk Management (SCRM) contract, where WhiteHawk is a sub-contractor, is still pending.
- A new SaaS solution sales channel has been established with Carahsoft for Cyber Risk Programs and Radars across North America.
- Partnerships have been formed with Aniza Corp and Keplerbase to expand the reach of Cyber Risk Programs.
- A joint go-to-market campaign was executed with Hyprfire in Western Australia.
- The company is sub-contracted under Peraton for a Supply Chain Risk Management Program for a GSA US Federal Government Travel & Expense 15YR Contract, with an award expected in 4QTR 2024.
- WhiteHawk is putting in place a new 90 Day Contract with Executive Strategy Group (ESG) to accelerate revenue growth.
Sentiment
Score: 7
Explanation: The report shows positive revenue generation and new contract wins, but also highlights delays and potential funding concerns, leading to a moderately positive sentiment.
Highlights
- WhiteHawk's invoiced revenue reached US$362K in Q2 2024, contributing to a year-to-date total of US$678K.
- The company secured a new Cyber Risk Program contract with an ASX 100 Company for US$70K in July 2024.
- A Cyber Risk Radar paid pilot was contracted with a major U.S. City for US$50K, set to include ten City Entities and 20 critical City Vendors.
- The Cyber Risk Radar contract with a Federal CISO was renewed for a 5th year at USD $700K, commencing August 1, 2024.
- A new Cyber Risk Radar paid pilot was contracted with the National Cybersecurity Center (NCC) for US$36K.
- WhiteHawk is partnering with D&B on the U.S. General Services Administration (GSA) SCRIPTS BPA Contract Vehicle, potentially worth US$99M a year for 10 years.
- The company is sub-contracted under Peraton for a Supply Chain Risk Management Program for a GSA US Federal Government Travel & Expense 15YR Contract, with an award expected in 4QTR 2024.
Positives
- The company has seen significant invoicing with US$678K year to date.
- New contracts and renewals, including a US$700K renewal with a Federal CISO, indicate strong demand for WhiteHawk's services.
- Partnerships with companies like D&B, Aniza Corp, and Keplerbase expand market reach.
- The establishment of a new SaaS sales channel with Carahsoft provides access to a broader customer base.
- The company is exploring R&D opportunities with the U.S. Department of Defense.
Negatives
- The final award of Peraton's bid for a US$2B a year Veterans Affairs Supply Chain Risk Management (SCRM) contract, where WhiteHawk is a sub-contractor, is still pending.
- The contract competition with D&B on the U.S. General Services Administration (GSA) SCRIPTS BPA Contract Vehicle has been delayed.
Risks
- The delay in the award of the Peraton bid for the Veterans Affairs SCRM contract could impact future revenue.
- Competition for the GSA SCRIPTS BPA Contract Vehicle could result in WhiteHawk not being selected.
- The company's ability to secure further funding is uncertain, as indicated by their exploration of funding options in the event of contract delays.
Future Outlook
WhiteHawk is focused on accelerating revenue growth through a new contract with Executive Strategy Group (ESG), streamlining sales and marketing processes, and enhancing market presence. Key activities are being conducted from August through October 2024 to achieve these objectives.
Industry Context
WhiteHawk operates in the growing cybersecurity market, focusing on cyber risk management and supply chain risk solutions. The company's partnerships and contracts with government entities and large corporations reflect the increasing demand for these services. The focus on third-party risk management (TPRM) aligns with industry trends emphasizing the importance of securing supply chains.
Comparison to Industry Standards
- WhiteHawk's focus on online cyber security exchange and virtual consults positions it uniquely compared to traditional cybersecurity firms.
- Companies like Palo Alto Networks and CrowdStrike focus on broader cybersecurity solutions, while WhiteHawk specializes in risk management and third-party assessments.
- The company's partnerships with consulting firms like Aniza Corp and Keplerbase are similar to strategies employed by other cybersecurity companies to expand their market reach.
- The US$700K contract renewal with a Federal CISO is comparable to government contracts secured by other cybersecurity vendors, reflecting the importance of the public sector market.
Stakeholder Impact
- Shareholders: The new contracts and revenue generation are positive for shareholders, but delays and potential funding needs could create uncertainty.
- Employees: New contracts and partnerships could lead to growth opportunities for employees.
- Customers: The company's services help customers manage cyber risks and improve their security posture.
- Suppliers: Increased business activity could lead to more opportunities for suppliers.
- Creditors: The company's ability to meet its financial obligations depends on securing new contracts and managing cash flow.
Next Steps
- Continue executing on existing contracts and partnerships.
- Pursue new business opportunities, including R&D efforts with the U.S. Department of Defense.
- Monitor the status of delayed contract awards and take appropriate action.
- Implement the new 90-day contract with Executive Strategy Group (ESG) to accelerate revenue growth.
Key Dates
- August 2019: Base year commenced for Prime Cyber Risk Radar Contract being executed in support of U.S. Federal Government Department Chief Information Security Officer (CISO)
- December 2023: Contract renewed with a Global Social Media Platform company for TPRM Services
- December 2023: Media Company started focused on Third-Party Risk Management (TPRM) services
- April 2024: New Cyber Risk Radar Paid Pilot contracted with National Cybersecurity Center (NCC)
- May 7th, 2024: Sales Webinar to all 60+ members held with Perth, WA, based partner Hyprfire
- May 2024: Phase 1 commenced as pilot effort for one state water supply critical infrastructure for Cyber Risk Program contract with major U.S. Critical Infrastructure Non-Government Organization (National Cybersecurity Center)
- June 2024: Separate submission for a Federal Grant also submitted for potential award Fall 2024 for Cyber Risk Radar Platform Paid Pilot for Cyber Analyst Services Capacity Building, through University of South Floridas 502 Project
- June 30, 2024: Trade receivables as of this date were US$153K
- July 2024: New Cyber Risk Program contracted with ASX 100 Company
- July 15, 2024: Technical demonstrations on this date for D&B & WHK partnering on U.S. General Services Administration (GSA) SCRIPTS BPA Contract Vehicle
- July 17, 2024: Kick-Off conducted for New Cyber Risk Radar 60-Day Paid Pilot contracted for a major U.S. City
- July/August 2024: Contract competition delayed and now anticipated for D&B & WHK partnering on U.S. General Services Administration (GSA) SCRIPTS BPA Contract Vehicle
- August 1, 2024: Cyber Risk Radar 5th Year Contract renewed with Federal CISO
- August 5, 2024: Technical demonstrations on this date for D&B & WHK partnering on U.S. General Services Administration (GSA) SCRIPTS BPA Contract Vehicle
- August 2024: New Supply Chain Risk Tools and Analytics opportunity on current US Federal Contract with Prime Contractor, capability gaps under assessment for scoping of WHK capabilities
- August 2024: Key Activities Being Conducted August through October 2024 for Putting in place a new 90 Day Contract with Executive Strategy Group (ESG)
- July and August 2024: Aniza is conducting a Client engagement campaign across 80+ of their current Company and Municipality Clients
- July and August 2024: Demonstrations to stakeholders being conducted to shape US State and City program options for 3rd/4th QTR 2024 for New Cyber Risk Radar Paid Pilot contracted with National Cybersecurity Center (NCC)
- 4QTR 2024: Award expected for Sub-contracted under Peraton for Supply Chain Risk Management Program for GSA US Federal Government Travel & Expense 15YR Contract Peraton Prime
Keywords
Cyber Risk, Supply Chain Risk Management, SCRM, Cybersecurity, SaaS, Federal Government, WhiteHawk, Contracts, Invoicing
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.