Significant Year-over-Year Margin Expansion, Streamlined Operations, and Strategic Wins Position HUB for Scalable Growth in 2025 Conference call will be held Friday, May 2 at 10:00 am ET TEL AVIV, Israel, May 01, 2025 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB” or the “Company”), a global leader in confidential computing and advanced data fabric technology, today announced results for the full year and second half period ended December 31, 2024 and the filing of its Annual Report on Fo ...

Financial Performance - The company reported net losses of $39.1 million, $86.6 million, and $80 million for the years ended December 31, 2024, 2023, and 2022, respectively[60]. - The company is generating negative cash flow and requires constant cash injections to continue operations, failing to meet obligations including payments to debt holders and vendors[61]. - The company has reached a settlement with unsecured creditors and is in the process of addressing insolvency applications[61]. - The company is currently in default under certain debt obligations, with overdue amortization payments totaling approximately $1.2 million and an aggregate principal amount of approximately $5.9 million[79]. - The company has received a deficiency notice from Nasdaq regarding non-compliance with the $1.00 minimum bid price requirement, with a 180-day period to regain compliance[72]. - The company submitted a compliance plan to Nasdaq after failing to meet the Total Assets and Total Revenue Requirement, which requires total assets and total revenue to be above $50 million[73]. - The company is in discussions with holders of the Outstanding Debt regarding possible solutions for overdue payments, including potential extensions or extinguishing the debt[80]. - The company may need to raise additional funds to execute its business plan, which may not be available when needed[82]. - The company’s ability to maintain compliance with Nasdaq listing requirements is uncertain, which could negatively affect the market price of its securities[76]. - The company does not intend to pay dividends for the foreseeable future, focusing on retaining funds for business operations instead[236]. Internal Controls and Compliance - The company has identified material weaknesses in internal control over financial reporting, which have not been remedied as of December 31, 2024[63]. - The company is engaged in a costly process to document and evaluate its internal control over financial reporting, which may divert management's attention from other business matters[224]. - Failure to remediate material weaknesses could result in adverse market reactions and investigations by regulatory authorities[225]. - The company has enacted tougher anti-fraud and anti-corruption policies following the internal investigation[51]. - The company is working to improve its internal control systems, including the implementation of an internal audit[224]. - The company may incur significant legal and financial compliance costs due to its status as a U.S. listed public company[216]. Investigations and Legal Matters - Approximately NIS 2 million (approximately $582,000) was misappropriated by the former CEO for personal use, leading to his termination and legal actions against him and a former staff member[48]. - The company is pursuing recovery of misappropriated funds and is subject to regulatory scrutiny from authorities in Israel and the United States[52]. - The company has appointed a Special Committee to oversee the internal investigation and has replaced all management involved during the period of misappropriation[51]. Market and Competitive Landscape - The company may face challenges in attracting new customers and retaining existing ones, which could adversely impact revenue and results of operations[86]. - The network security market is rapidly evolving, and if the company's solutions fail to adapt, sales may not continue to grow or may decline[91]. - Competition in the secured data fabric and technology solutions market is intense, with major players like IBM, Oracle, and Microsoft posing significant threats[100][101]. - The ability to acquire large enterprise customers is crucial for future revenue growth, and failure to do so may harm operating results[108]. - The market's acceptance of secured data fabric and confidential computing is not fully proven, and its development may be slower than expected[113]. Operational Challenges - The company has implemented a workforce reduction plan starting in March 2023 to improve operational efficiencies and align investments with strategic priorities[88]. - The company faced operational difficulties with Comsec Distribution, leading to cessation of sales and layoffs starting July 2023[117]. - The company has yet to recognize any revenues from the assets acquired from Legacy Technologies Gmbh, with uncertainty regarding future customer acquisition[117]. - The company is experiencing intense competition for skilled personnel, which may impact its ability to execute growth plans[126]. - Economic downturns could adversely affect customer spending on network security solutions, particularly in the financial services industry[131]. Regulatory and Compliance Risks - The dynamic regulatory environment around privacy and data protection may limit the company's offerings and increase operational expenses[92]. - Compliance with evolving privacy and data protection laws, such as GDPR and CCPA, may require significant resources and could impact operational efficiency[177]. - The company may need to modify its products and services to comply with new regulations, potentially increasing operational costs[173]. - Increased scrutiny of cross-border data transfers could restrict the company's ability to store and process data, impacting service offerings[178]. - Non-compliance with economic sanctions laws could materially adversely affect the company's reputation and operations[181]. - The ongoing conflict in Ukraine has led to expanded sanctions and export controls that could adversely impact the company's business operations[186]. - The company has ceased operations in Russia and may face material adverse effects depending on the extent of sanctions imposed[190]. Intellectual Property and Technology Risks - The company faces challenges in protecting its intellectual property rights, with potential unauthorized copying or reverse engineering of its products[158]. - Legal actions may be necessary to enforce patents and protect trade secrets, which could incur substantial costs and divert resources[161]. - The process of securing patent protection can take five or more years, and there is uncertainty regarding the approval of pending applications[163]. - HUB's reliance on AI and machine learning in its products may present compliance and reputational risks if the models produce inaccurate results[147]. - The reliance on open-source software components poses risks, including potential infringement claims and the obligation to disclose proprietary code[167]. Financial and Tax Risks - Changes in tax laws and exposure to additional income tax liabilities could affect the company's future profitability[134]. - HUB's effective tax rate is influenced by the geographic distribution of earnings, tax regulations, and tax planning strategies, leading to potential material differences between forecasted and actual rates[135]. - Changes in OECD guidelines could increase HUB's tax obligations and worldwide effective tax rate due to its international business activities[136]. - Fluctuations in currency exchange rates, particularly between the U.S. dollar and Israeli New Shekels, could adversely impact HUB's financial results and operating expenses[137]. Shareholder and Market Risks - The market price and trading volume of the company's ordinary shares and warrants on Nasdaq may be volatile, with significant fluctuations already observed since trading began[231]. - The trading market for the company's ordinary shares and warrants is affected by the research and reports published by industry analysts, which may impact share price and trading volume[239]. - The company anticipates maintaining cash reserves for acquisitions and general corporate purposes as it grows[214]. - The company may be negatively affected by activist shareholders, which could disrupt operations and divert management's attention[208]. - The company is eligible to be treated as an emerging growth company, which may affect the attractiveness of its ordinary shares to investors due to reduced disclosure requirements[241].

TEL AVIV, Israel, April 16, 2025 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (NASDAQ:HUBC) ("HUB" or the "Company"), a global leader in confidential computing and advanced data fabric technology, is pleased to announce the appointment of Shlomo Bibas as an Independent Member of the Company's Board of Directors, effective immediately. Mr. Bibas will also serve on various board committees and has been appointed Chairperson of the Compensation Committee. Mr. Bibas brings over two decades of leadership experien ...

Core Viewpoint - HUB Cyber Security Ltd. has appointed John Rogers as President of the Americas Region, which is a strategic move to enhance its expansion in North America and establish its U.S. headquarters this summer [1][4]. Company Overview - HUB Cyber Security Ltd. specializes in advanced cybersecurity solutions, particularly in confidential computing and data fabric technology, and was founded in 2017 by veterans of the Israeli Defense Forces [6]. Leadership Appointment - John Rogers brings extensive experience in public policy, national security, and business strategy, having previously served as Deputy Assistant Secretary of Defense and held leadership roles in various organizations [2][3]. - In his new role, Rogers will focus on engaging stakeholders across government agencies, financial institutions, and enterprises to deliver HUB's cybersecurity solutions [3][5]. Strategic Initiatives - HUB aims to strengthen its market presence and deliver transformative solutions to critical sectors such as banking, transportation, and web intelligence under Rogers' leadership [3][5]. - The company plans to launch its North American headquarters this summer, marking a significant milestone in its global growth strategy [4]. Market Positioning - HUB's recent selection by Cassa di Risparmio, a prestigious bank in San Marino, highlights the quality of its work and the potential for multiple partnerships with U.S. banks in the next 12-18 months [4]. - The company is well-positioned to enhance operational efficiency and secure vast volumes of digital data through next-generation cybersecurity technologies [5].

TEL AVIV, Israel, April 09, 2025 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB” or the “Company”), a global provider of cybersecurity and data protection solutions, today announced it has been selected by Cassa di Risparmio della Repubblica di San Marino S.p.A. (the “Bank”) to execute a comprehensive €20 million digital banking and infrastructure modernization initiative (the “Project”). The Bank is the oldest financial institution in San Marino. The Project remains subject to regulatory ...

Core Viewpoint - Hub Cyber Security Ltd. announced a 1-for-10 reverse share split of its ordinary shares, effective March 28, 2025, aiming to increase the per share trading price and regain compliance with Nasdaq's minimum bid price requirement [1][4]. Group 1: Reverse Share Split Details - The reverse share split will convert every 10 issued and outstanding ordinary shares into one ordinary share, with no fractional shares issued; fractional shares will be rounded down [2]. - The reverse share split will also adjust the Company's derivative securities, including outstanding notes, options, warrants, and restricted share units, to maintain the same economic effect [3]. Group 2: Company Overview - Hub Cyber Security Ltd. specializes in cybersecurity solutions, protecting sensitive commercial and government information, and operates in over 30 countries [5][11]. - The Company was established in 2017 by veterans of elite intelligence units of the Israeli Defense Forces and focuses on advanced encrypted computing solutions [5].

Core Viewpoint - HUB Cyber Security Ltd. has announced a significant leadership transition with the appointment of Ms. Renah Persofsky as the new Active Chairperson of the Board, effective March 25, 2025, following Mr. Kasbian Nuriel Chirich's decision to step down for personal reasons [1][4]. Group 1: Leadership Transition - Mr. Kasbian Nuriel Chirich will remain on the Board as a director after stepping down as Chairperson [1]. - Ms. Renah Persofsky brings over 40 years of executive leadership experience across various sectors, which is expected to enhance HUB's corporate governance and support its growth objectives [2][4]. Group 2: Ms. Persofsky's Background - Ms. Persofsky has held significant roles, including Executive Chair of Green Gruff and Vice-Chair of Tilray Brands, and has experience with major institutions such as Tim Hortons and Canadian Tire [3]. - Her appointment is anticipated to strengthen the Board's contributions as HUB aims to become a leader in global cybersecurity and core-banking platforms [4]. Group 3: Company Overview - HUB Cyber Security Ltd. specializes in advanced cybersecurity solutions, protecting sensitive information for commercial and government clients, and operates in over 30 countries [6].

Core Points - HUB Cyber Security Ltd. has received a 14-day extension from the Nasdaq Hearings Panel to comply with the minimum bid price requirement, now having until April 14, 2025, to achieve 10 consecutive trading days of at least $1 per share [1][2] - The extension was granted after the Panel reviewed HUB's recent developments and progress, indicating confidence in the company's achievements and its roadmap for continued listing on Nasdaq [2] Company Overview - HUB Cyber Security Ltd. was established in 2017 by veterans of the Israeli Defense Forces and specializes in advanced cybersecurity solutions that protect sensitive commercial and government information [3] - The company offers encrypted computing technologies to prevent hardware-level intrusions and innovative data theft prevention solutions, operating in over 30 countries and serving a diverse client base [3]

Core Points - HUB Cyber Security Ltd. has received a 14-day extension from the Nasdaq Hearings Panel to comply with the minimum bid price requirement, now having until April 14, 2025, to achieve 10 consecutive trading days of at least $1 per share [1][2] - The Panel's decision was influenced by HUB's compliance with the continued listing requirements for the Market Value of Listed Securities and recent developments within the company [2] - CEO Noah Hershcoviz expressed confidence in the company's progress and the Panel's decision, indicating a positive outlook for HUB's continued listing on Nasdaq [2] Company Overview - HUB Cyber Security Ltd. was established in 2017 by veterans of elite intelligence units of the Israeli Defense Forces, specializing in advanced cybersecurity solutions [3] - The company offers encrypted computing technologies and data theft prevention solutions, operating in over 30 countries and serving a diverse client base [3]

Nasdaq Hearings Panel Grants HUB Cyber Security Continued Listing on NasdaqTEL AVIV, Israel, Feb. 28, 2025 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (NASDAQ: HUBC) ("HUB" or the "Company"), a global leader in confidential computing and secured data fabric technology, announced today that following a thorough review and analysis of the Company’s history, recent successful achievements and positive outlook, the Nasdaq Hearings Panel (the “Panel”) has granted the Company’s request to continue its listing on ...