Continues Progress to Commercialization and Industry Partnerships
SCOTTSDALE, AZ / ACCESSWIRE / October 15, 2019 / Cipherloc Corporation (OTCQB:CLOK), a developer of highly secure, quantum-safe data protection technology, today provided a corporate update on operations and progress over the prior quarter.
"Cipherloc has made substantial progress over the past few months on its key operational and strategic goals. These include adding experienced technology industry leadership to both the management team and the board, refocusing operations on our core engineering and software strengths, building partner and customer relationships, managing cash utilization and maximizing the strength of our balance sheet," said Tom Wilkinson, Interim Chief Executive Officer and Chairman of the Board. "Our board added highly experienced and well proven leadership with relevant technology and public company experience to help Cipherloc execute on its business plans. We have also reorganized our management team and employee base to put our focus squarely on engineering, software development and cultivating commercial partnerships across a number of industries with both existing and prospective partners. Importantly, we have done this while closely managing our operating expenses so as to maximize the strength of our balance sheet, which included more than $7.6 million in cash as of October 12, 2019."
During August and September 2019, Cipherloc executed an extensive restructuring plan to improve employee productivity and manage operating costs. This included reduction in headcount for underperforming or duplicative employees and reallocating those headcount expenses toward engineering and software hires within the company, a process which is ongoing. Additionally, Cipherloc has retained an experienced business development team in Washington D.C. to focus on government business opportunities to augment the existing sales team in Scottsdale, Arizona.
The company has continued to progress on its initial polymorphic encryption software platforms to make them commercial ready, including products for data at rest, data in motion, messaging and email. In addition, in support of commercial development efforts, the company has secured additional patents, patents pending and patent applications, including the recently announced polymorphic One Time Pad (OTP) patent activity, making this unique and mathematically unbreakable encryption protocol cost effective and accessible across a range of applications in both classical and quantum computing environments for what the company believes is the first time in history. "We view the core engine technology as ready to be sold as an integrated offering with our potential partners and our future products as offerings that, when available, will provide branded solutions to be deployed as a superior alternative to currently available encryption products, but at a market price which will encourage customers to choose Cipherloc," said Wilkinson.
The company is also advancing its partnership and sales efforts, including moving ahead with existing partnerships, while building new partnerships across a range of industries and markets. The company plans to announce additional partnership activity as mutually agreed with these existing and prospective technology leaders.
"The changes over these past few months have focused Cipherloc on a pathway to commercializing the company's best-in-class encryption and quantum security platforms to generate revenue and value for shareholders," said Wilkinson. "We have identified major partners in both the public and private sectors and have advanced discussions with regard to not only licensing our technology, but providing development services to generate revenue from the outset. "Importantly, all of this activity is being undertaken with a strong balance sheet and reduced operating cash burn to not only support our operations, but also to ensure we can negotiate the right types of agreement so both Cipherloc and its partners can be successful in quantum encryption."
The board of directors has also created a committee focusing on, among other efforts, the hiring of a permanent Chief Executive Officer. "Tom Wilkinson has been doing a fabulous job of stabilizing the company's operations," stated lead Independent Director, Anthony Ambrose. "He has also led the company's actions in defending itself against the spurious litigation efforts of its former Chief Executive Officer. The board recognizes the importance of having a CEO who will focus on the business, without the distractions of resolving litigation issues. As such, we have formed a committee to consider the best solution for both the permanent CEO and the allocation of work between the CEO and the board of directors."
About Cipherloc Corporation (OTCQB: CLOK)
Cipherloc Corporation is a provider of highly secure, quantum-safe data protection technology. Our highly innovative solutions are based on our patented Polymorphic Cipher Engine which is designed to enable an ironclad layer of protection to be added to existing products, services, or applications. We deliver solutions that are highly secure, synergistic, and scalable. In short, we keep information safe in today's highly dangerous world. For further information, please go to www.cipherloc.net.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set forth in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
Investor Contact:
Matt Kreps
Darrow Associates Investor Relations
214-597-8200
[email protected]
SOURCE: Cipherloc Corporation