Financial Performance - For the fiscal year 2022, HUB Security reported revenues of $79.7 million, a significant increase from $32.5 million in 2021, representing a growth of 145%[21] - The company recorded a gross profit of $6.4 million for 2022, compared to $5.1 million in 2021, reflecting a gross profit margin increase of approximately 26%[21] - Operating loss for the year was $(79.5) million, a substantial increase from $(12.8) million in 2021, indicating operational challenges[21] - HUB Security's adjusted EBITDA loss for 2022 was $(21.1) million, compared to a loss of $(13.2) million in the previous year[10] - Net loss for the year 2022 was $80,000 million, compared to a net loss of $13,623 million in 2021, representing a significant increase in losses[25] - Adjusted EBITDA for 2022 was $(21,128) million, worsening from $(4,580) million in 2021[28] Cash and Assets - HUB Security's cash and cash equivalents as of December 31, 2022, totaled $5.6 million[10] - Cash and cash equivalents dropped from $13,974 million at the end of 2021 to $3,994 million at the end of 2022, a decrease of about 71%[25] - Total assets decreased from $120,732 million in 2021 to $74,793 million in 2022, a decline of approximately 38%[23] - Total shareholders' equity plummeted from $65,778 million in 2021 to $8,810 million in 2022, a decline of about 87%[23] - Cash flows from operating activities resulted in a net cash outflow of $23,432 million in 2022, compared to $5,280 million in 2021[25] Liabilities and Impairments - Total current liabilities increased from $37,958 million in 2021 to $57,836 million in 2022, an increase of approximately 52%[23] - Impairment of goodwill and intangible assets amounted to $23,356 million in 2022, with no such impairment recorded in 2021[25] - The company recorded a non-cash impairment charge of $23.4 million for goodwill and intangible assets due to macroeconomic factors[9] Strategic Initiatives - HUB Security has partnered with Getronics to form a global strategic partnership, which includes a contract worth 1.3 million Euros[6] - The company has launched the "HUB Secure File Vault," a cyber risk management solution aimed at enhancing the security of cyber insurance policies[7] - As of December 31, 2022, the company had a backlog of approximately $39 million in customer contracts and an estimated $103 million in pipeline[6] - The company plans to report its first half results for the period ended June 30, 2023, and is focused on its strategy to disrupt the market with its confidential computing platform[2] Shareholder Activity - The company issued shares net of expenses totaling $18,836 million in 2022, down from $34,571 million in 2021[25] - The company reported an increase in other accounts payable by $15,216 million in 2022, compared to an increase of $2,884 million in 2021[25]
HUB CYSEC(HUBCZ) - 2023 Q2 - Quarterly Report