10-Q

UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

WASHINGTON,

D.C. 20549

FORM

10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ### March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For

the transition period from ___________ to ___________

Commission

File No. 000-28745

SideChannel,Inc.

(Exact name of registrant as specified in its charter)

Delaware	86-0837077
State<br> or other jurisdiction of<br><br> <br>incorporation<br> or organization	I.R.S.<br> Employer<br><br> <br>Identification<br> No.

146Main Street, Suite 405, Worcester, MA 01608

(Address of principal executive offices) (Zip Code)

(508)925-0114

(Registrant’s telephone number, including area code)

Securities

registered pursuant to Section 12(b) of the Act:

Title<br> of each class	Trading<br> Symbol(s)	Name<br> of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large<br> accelerated filer	☐	Accelerated<br> filer	☐
Non-accelerated<br> filer	☒	Smaller<br> reporting company	☒
		Emerging<br> growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As

of May 12, 2026, the registrant had 4,572,757 shares of common stock outstanding.

SIDECHANNEL,

INC.

TABLE

OF CONTENTS

		PAGE
PART I - FINANCIAL INFORMATION
Item<br> 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited), and September 30, 2025	3
	Unaudited Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2026 and 2025	4
	Unaudited Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended March 31, 2026 and 2025	5
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2026 and 2025	6
	Notes to Financial Statements	7
Item<br> 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item<br> 3	Quantitative and Qualitative Disclosures About Market Risk	27
Item<br> 4.	Controls and Procedures	27
PART II - OTHER INFORMATION
Item<br> 1.	Legal Proceedings	29
Item<br> 1A.	Risk Factors	29
Item<br> 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item<br> 3.	Defaults Upon Senior Securities	29
Item<br> 4.	Mine Safety Disclosures	29
Item<br> 5	Other Information	29
Item<br> 6.	Exhibits	30

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PART

I

FINANCIAL

INFORMATION

ITEM

1. FINANCIAL STATEMENTS

SIDECHANNEL,

INC.

CONDENSED

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

			September 30,<br><br> 2025
ASSETS
Current assets
Cash and cash equivalents	311		$	1,065
Short-term investments	-			100
Accounts receivable, net	548			553
Prepaid expenses and other current assets	396			374
Total current assets	1,255			2,092
Fixed assets	9			17
Goodwill	1,356			1,356
Total assets	2,620		$	3,465
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	331		$	515
Deferred revenue	864			801
Income taxes payable	11			6
Total current liabilities	1,206			1,322
Total liabilities	1,206			1,322
Commitments and contingencies (Note 14)				-
Common stock, 0.001 par value, 681,000,000 shares authorized; 4,572,757 and 4,446,713 shares issued and outstanding as of March 31, 2026, and September 30, 2025	5			4
Additional paid-in capital	22,984			22,874
Accumulated deficit	(21,575	)		(20,735	)
Total stockholders’ equity	1,414			2,143
Total liabilities and stockholders’ equity	2,620		$	3,465

All values are in US Dollars.

The

Company’s common stock shares issued and outstanding, common stock and additional paid-in capital as of September 30, 2025, have been retroactively restated for the reverse stock split as described in Note 2 of the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

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SIDECHANNEL,

INC.

CONDENSED

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

	2026			2025			2026			2025
	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2026			2025			2026			2025
Revenues	$	1,576		$	1,894		$	3,350		$	3,802
Cost of revenues		733			953			1,598			1,987
Gross profit		843			941			1,752			1,815
Operating expenses
General and administrative		724			655			1,400			1,315
Selling and marketing		388			227			846			494
Research and development		179			120			354			273
Total operating expenses		1,291			1,002			2,600			2,082
Operating loss		(448	)		(61	)		(848	)		(267	)
Other income, net		6			9			13			22
Net loss before income tax expense		(442	)		(52	)		(835	)		(245	)
Income tax expense		2			2			5			4
Net loss	$	(444	)	$	(54	)	$	(840	)	$	(249	)
Net loss per common share – basic and diluted	$	(0.10	)	$	(0.01	)	$	(0.19	)	$	(0.06	)
Weighted average common shares outstanding – basic and diluted		4,497,378			4,382,878			4,471,765			4,364,524

The

Company’s weighted average common shares outstanding and net loss per common share – basic and diluted for the three and six months ended March 31, 2025, have been retroactively restated for the reverse stock split as described in Note 2 of the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

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SIDECHANNEL,

INC.

CONDENSED

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)

	Shares		Amount		Capital		Deficit			Equity
****	Common Stock				Additional Paid-in		Accumulated		****	Total		****
	Shares		Amount		Capital		Deficit			Equity
Balance at September 30, 2025		4,446,713	$	4	$	22,874	$	(20,735	)	$	2,143
Stock-based compensation		-		-		100		-			100
Net loss		-		-		-		(396	)		(396	)
Balance at December 31, 2025		4,446,713	$	4	$	22,974	$	(21,131	)	$	1,847
Rounding up of fractional shares		20,494		-		-		-			-
Stock-based compensation		105,550		1		10		-			11
Net loss		-		-		-		(444	)		(444	)
Balance at March 31, 2026		4,572,757	$	5	$	22,984	$	(21,575	)	$	1,414
****	Common Stock				Additional<br> <br>Paid-in		****	Accumulated		****	Total		****
---	---	---	---	---	---	---	---	---	---	---	---	---	---
****	Shares		Amount		Capital		****	Deficit		****	Equity		****
Balance at September 30, 2024		4,345,680	$	4	$	22,543		$	(19,843	)	$	2,704
Shares issued for legal settlement		6,854		-		(1	)		-			(1	)
Stock-based compensation		-		-		112			-			112
Net loss		-		-		-			(195	)		(195	)
Balance at December 31, 2024		4,352,534	$	4	$	22,654		$	(20,038	)	$	2,620
Balance		4,352,534	$	4	$	22,654		$	(20,038	)	$	2,620
Stock-based compensation		94,179		-		43			-			43
Net loss		-		-		-			(54	)		(54	)
Balance at March 31, 2025		4,446,713	$	4	$	22,697		$	(20,092	)	$	2,609
Balance		4,446,713	$	4	$	22,697		$	(20,092	)	$	2,609

The

Company’s common shares outstanding (shares and amount) and additional paid-in capital have been retroactively restated for the reverse stock split as described in Note 2 of the accompanying notes,

which

are an integral part of these unaudited condensed consolidated financial statements.

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SIDECHANNEL,

INC.

CONDENSED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	2026			2025
	Six Months Ended March 31,
	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(840	)	$	(249	)
Adjustments to reconcile net loss to net cash flows provided by / (used in) operating activities:
Depreciation and amortization		8			98
Legal Settlement Paid in Stock		-			(1	)
Stock-based compensation and payments for services, net		111			155
Changes in operating assets and liabilities:
Accounts receivable, net		5			(76	)
Prepaid expenses and other assets		(22	)		(86	)
Accounts payable and accrued liabilities		(184	)		(128	)
Deferred revenue		63			337
Income taxes payable		5			(1	)
Net cash provided by / (used in) operating activities		(854	)		49
CASH FLOWS FROM INVESTING ACTIVITIES:
Net sale (purchase) of short-term investments		100			150
Purchase of fixed assets		-			-
Net cash provided by investing activities		100			150
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used in financing activities		-			-
INCREASE / (DECREASE) IN CASH		(754	)		199
CASH, BEGINNING OF PERIOD		1,065			1,045
CASH, END OF PERIOD	$	311		$	1,244
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Purchase of RSUs sold by employees to pay for taxes due on vested RSUs	$	80		$	63

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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SIDECHANNEL,

INC.

NOTES

TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR

THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025

NOTE

1 – DESCRIPTION OF BUSINESS

Our mission is to make cybersecurity simple and accessible for emerging to enterprise companies, a market that we believe is currently underserved. We believe that our cybersecurity product and service offerings provide cybersecurity and privacy risk management solutions for our customers. We anticipate that our target customers will continue to need cost-effective security solutions. We continue to expand our catalogue of services and solutions to address the cybersecurity needs of our customers, including virtual Chief Information Security Officer (“vCISO”), cyber program strategy, zero trust, third-party risk management, compliance readiness, cloud security services, privacy, threat intelligence, managed end-point security solutions, and cybersecurity awareness.

We are marketing and selling Enclave, a proprietary software product that simplifies important cybersecurity tasks to achieve “microsegmentation.” By combining zero trust network access with asset intelligence, certificate management, and machine identity, Enclave seamlessly creates a unified security architecture that eliminates traditional network vulnerabilities. This integration enables IT teams to enforce precise access policies based on verified machine identities. Certificate-based identities allow a simplified management for any certificate-based communication, while the zero trust framework continuously validates every connection attempt. This powerful combination delivers robust security without the typical management overhead, allowing organizations to implement sophisticated microsegmentation strategies with remarkable simplicity and minimal resource requirements.

Our headquarters are located at 146 Main Street, Suite 405, Worcester, MA 01608. Our website is www.sidechannel.com.

NOTE

2 – REVERSE STOCK SPLIT

On February 12, 2025, at the annual meeting of stockholders, the stockholders of the Company approved and adopted an amendment to the Company’s certificate of incorporation, as amended (the “Certificate of Incorporation”), to effectuate a reverse stock split of the Company’s outstanding shares of common stock, at a ratio of no less than 1-for-2 and no more than 1-for-200, with such ratio to be determined by the Company’s board of directors (the “Board”) in its sole discretion. On August 21, 2025, the Board approved a reverse stock split at a ratio of 1-for-52 (the “Reverse Split”). On January 12, 2026, the Company filed a certificate of amendment to its Certificate of Incorporation (the “Certificate of Amendment”) with the Secretary of State of the State of Delaware to effectuate the Reverse Split. The Certificate of Amendment was effective for state law purposes at 4:00 p.m. ET on January 22, 2026, after the close of trading on the OTCQB, such that the Company’s common stock began trading on a post-Reverse Split basis at market open on January 23, 2026.

On January 16, 2026, the Company filed a certificate of correction to the Certificate of Amendment (the “Certificate of Correction”) to correct a scrivener’s error in the Certificate of Amendment. The Certificate of Amendment indicated that any fractional shares resulting from the Reverse Split would be rounded “to the nearest whole share” of common stock, rather than providing that any fractional shares would be rounded “up to the nearest whole share” of common stock, as the Company intended.

Accordingly, at 4:00 p.m. ET on January 22, 2026, after the close of trading on the OTCQB, each 52 shares of issued and outstanding common stock (collectively, the “Pre-Split Common Stock”) were automatically, and without any action on the part of the holder thereof, reclassified such that each 52 shares of Pre-Split Common Stock became one share of common stock, with any resulting fractional shares common stock being rounded up to the nearest whole share of common stock. The Company’s common stock began trading on a post-Reverse Split basis at market open on January 23, 2026.

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The Reverse Split had no effect on our authorized number of shares of common stock, par value of common stock, total assets, total liabilities or stockholders’ equity. We restated our common shares outstanding (shares and amount) and the value of our additional paid-in capital (“APIC”) to reflect the number of shares outstanding after the Reverse Split.

On

January 23, 2026, in connection with the rounding up of fractional shares resulting from the Reverse Split, the Company issued an aggregate of 20,494 shares of common stock. Of this amount, 397 shares of common stock were issued to stockholders of record and 20,097 shares of common stock were issued to CEDE & Co.

NOTE

3 – GOING CONCERN ASSESSMENT

GoingConcern Uncertainty

Management has evaluated the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued, in accordance with ASC 205-40, Presentation of Financial Statements – Going Concern. As of March 31, 2026, the Company has incurred recurring operating losses and experienced negative cash flows from operations and has limited cash and other sources of liquidity. These conditions, together with the Company’s forecasted cash requirements for operations and other obligations coming due within the next twelve months, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued.

The Company’s current business plan assumes continued investment in its product offerings and related support activities. Based on its current cash balance, projected cash used in operations, and other obligations coming due during the twelve months following the issuance of these financial statements, management does not believe that the Company will have sufficient liquidity to fund operations and meet its obligations as they become due during that period without obtaining additional capital or implementing significant changes to its operations.

In particular, management has determined that, for the Company to continue to operate for at least twelve months after the date these financial statements are issued, it would be necessary either (i) to secure additional equity or debt financing on acceptable terms or (ii) to eliminate a significant portion of the Company’s product offering and related cost structure.

Management is actively exploring alternatives to address these conditions, including pursuing additional sources of capital and evaluating potential changes to the Company’s product portfolio and related operating cost structure. However, as of the date these financial statements are issued, the Company has not secured additional financing, has not completed any significant reduction in its product offering, and there can be no assurance that such actions will be successfully executed or will be sufficient to enable the Company to continue as a going concern. Accordingly, substantial doubt about the Company’s ability to continue as a going concern is not alleviated.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities or any other adjustments that might result if the Company is unable to continue as a going concern.

NOTE

4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basisof Presentation and Use of Estimates

The accompanying unaudited condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain of our accounts, including goodwill, identifiable intangibles, and deferred tax assets and liabilities, including related valuation allowances, are based upon estimates. References to fiscal year 2026 and fiscal year 2025 used throughout this report shall mean the current fiscal year ending September 30, 2026, and the prior fiscal year ended September 30, 2025, respectively.

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Reclassifications

Certain prior year amounts have been reclassified to be comparable with the current year’s presentation or adjusted due to rounding and have had no impact on net income or stockholders’ equity.

SegmentInformation

The Company operates as a single reportable segment focused on cybersecurity solutions, which consists of two primary revenue-generating categories: (1) vCISO Services, and (2) Cybersecurity Software and Services.

●

vCISO Services: This category captures the revenue from the Chief Information Security Officer services that we provide to our clients<br> on a “virtual” or outsourced basis. Embedded into the C-suite executive teams of our clients, our vCISOs deliver services<br> including assessing the cybersecurity risk profile, implementing policies and programs to mitigate risks, and managing the day-to-day<br> tasks to ensure compliance with the adopted cybersecurity framework. Most of our clients use our vCISO Services. Engagements typically<br> include a fixed monthly subscription fee and exceed 12 months because of renewal options of 1, 3, 6, or 12 months.

●

Cybersecurity Software and Services: This category encompasses an array of cybersecurity software and services that our clients deem necessary<br> to protect their digital assets, including Enclave. These augment our vCISO offering and include a full range of other cybersecurity<br> products and services delivered through a team of security engineers along with a network of third-party service providers and value-added<br> resellers (“VARs”). Commercial relationships with third-party service providers and VARs provide SideChannel with additional<br> internal capabilities to mitigate cybersecurity risks. We earn licensing revenue from software contracts and commissions from third-party<br> service provider partnerships which are included in this revenue category.

Our Chief Executive Officer is our chief operating decision maker (“CODM”). Revenue is the primary segment performance measure reviewed by the CODM for operational and capital allocation decisions.

The following table presents revenue reviewed by the CODM for the six months ended March 31, 2026 and 2025:

SCHEDULE OF DISAGGREGATED REVENUE

(in thousands)	2026		2025
	Six Months Ended
	March 31,
(in thousands)	2026		2025
vCISO Services	$	1,621	$	2,265
Cybersecurity Software and Services		1,729		1,537
Total	$	3,350	$	3,802

Cash,Cash Equivalents, and Short-Term Investments

Cash includes funds deposited in banks.

We consider all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. Highly liquid investments with original maturities of 91 days or more that will mature less than one year from the balance sheet date are classified as short-term investments. Securities with maturities of more than 360 days, if any, are included in “long-term investments.”

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Our cash equivalents and short-term investments are placed primarily in money market funds and time deposits and are classified as held-to-maturity based on our positive intent and ability to hold the securities to maturity. We value cash equivalents at their original purchase prices plus interest that has accrued at the stated rate. We value short-term investments at their original purchase prices. Interest earned on short-term investments is accrued in interest receivable which is included on our balance sheet in “Accounts receivable, net.”

Interest income related to cash equivalents and short-term investments is reported in “Other income, net” on the Consolidated Statement of Operations.

AccountsReceivable

Trade accounts receivable are recorded at the invoiced amounts and do not bear interest. We grant credit to customers and generally require no collateral. To minimize our risk, we perform ongoing credit evaluations of our customers’ financial condition. Effective January 1, 2023*,* we implemented the guidance in ASC Topic 326 (Financial Instruments – Credit Losses) in developing our estimate of the allowance for credit losses related to our accounts receivable. The allowance for credit losses is our best estimate of the amount of expected credit losses in our existing accounts receivable. In establishing the amount of allowance for credit losses, we consider all information available as of the reporting date including information related to past events, such as historical loss rates and actual incurred losses, as well as current conditions that may indicate future risk of loss and any other factors of which we are aware, that we believe could impact the ultimate collectability of the related receivables in future periods.

Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any significant off-balance sheet credit exposure related to our customers. Cash flows from accounts receivable are recorded in operating cash flows.

There was no bad debt expense recorded for the six months ended March 31, 2026 and 2025.

FairValue of Financial Instruments

Our financial instruments consisted primarily of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued expenses. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments.

Fair value is focused on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Within the measurement of fair value, the use of market-based information is prioritized over entity specific information and a three-level hierarchy for fair value measurements is used based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

The three-level hierarchy for fair value measurements is defined as follows:

●	Level<br> 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;
●	Level<br> 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs<br> that are observable for the asset or liability other than quoted prices, either directly or indirectly, including inputs in markets<br> that are not considered to be active; and
●	Level<br> 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

For more information about the Company’s accounting policies surrounding fair value investments, see Note 7.

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Goodwill,Intangible, and Long-Lived Assets

We account for goodwill and intangible assets in accordance with ASC Topic 350 (Intangibles – Goodwill and Other) and ASC Topic 360 (Property, Plant and Equipment). Finite-lived intangible assets are amortized over their estimated useful economic life and are carried at cost less accumulated amortization. Goodwill is assessed for impairment annually at the beginning of the fourth quarter on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. Goodwill is considered to be impaired if the fair value of a reporting unit is less than its carrying amount.

If the fair value of a reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

Long-lived assets, which consist of finite-lived intangible assets and property and equipment, are assessed for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. The cash flow estimates used to determine the impairment, if any, contain management’s best estimates using appropriate assumptions and projections at that time. There have been no significant events or changes in circumstances during the six months ended March 31, 2026, that would indicate that the carrying amount of the Company’s intangible asset, goodwill, may be impaired as of March 31, 2026.

RevenueRecognition

We recognize revenue in accordance with the guidance in ASC Topic 606 (Revenue from Contracts with Customers).

Natureof Products and Services

We identify, develop, and deploy cybersecurity and privacy risk management solutions for our clients in North America. We categorize our products and services as either vCISO Services or Cybersecurity Software and Services. The revenue earned from Enclave, our proprietary software product, as well as the revenue from reselling third-party software and services, is included in Cybersecurity Software and Services.

PerformanceObligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of accounting in Topic 606. A significant portion of our revenue is from clients with whom we have a Master Service Agreement (“MSA”). Each MSA generally contains one or more Statement(s) of Work (“SOW”). Each SOW specifies the products and services and their respective transaction prices. We refer to an MSA and its SOW(s) as a “Contract”. Our Contracts generally contain monthly service subscriptions, annual software licenses, time and material based billing, or fixed fee projects.

A Contract’s transaction price is allocated to each distinct performance obligation. For Contracts with multiple performance obligations, we allocate the Contract’s transaction price to each performance obligation based on the relative standalone selling price.

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Revenue is recognized over a period of time for monthly service subscriptions and software licenses. Revenue is recognized at a point in time when, or as, the performance obligation is satisfied for fixed fee projects and time and material based billing. The completed work products we create for our clients do not have alternative uses to SideChannel and our Contracts created a right to payment for work completed. Generally, each of the fixed fee project performance obligations we deliver is accompanied by an upfront payment. Our determination for point in time revenue recognition is based upon client acceptance of the performance obligation.

We do not have any material variable consideration arrangements, client-specific acceptance criteria, or any material payment terms with our clients other than standard payment terms which generally range from net 15 to net 30 days.

Principalversus Agent

We resell software and services provided by third parties. When we have discretion over the pricing used in the Contracts with our clients then we deem ourselves to be the principal for purposes of revenue recognition and record revenue on a gross basis using the price specified in the Contract. This is the case for almost all the third-party software and services we sell. Also consistent in our determinations to recognize revenue as the principal is our ability to direct the third party to provide the service to the client on our behalf.

Occasionally, we receive a commission from the sale of third-party software and services, in which case we are an agent and record revenue on a net basis equal to the amount of the commission earned.

ContractBalances

We record accounts receivable at the time of invoicing. To the extent that we do not recognize revenue at the same time as we invoice, we record a liability for deferred revenue. In certain instances, we also receive customer deposits in advance of invoicing and recording of accounts receivable. Deferred revenue and customer deposits are included in current liabilities on our consolidated balance sheets. In these instances, the recognition of revenue is deferred until we have determined that we have satisfied our performance obligations under the Contract.

Coststo Obtain a Contract with a Customer

The costs we incur associated with obtaining contracts with customers are marketing costs incurred with third-party service providers and sales commissions that we pay to our employees, contractors, or third-party sales representatives. Commissions are calculated based on set percentages of the revenue value of each product or service sold. Commissions are considered earned by our internal sales personnel at the time we recognize revenue for a particular transaction. Commissions are considered earned by third-party sales representatives at the time that revenue is recognized for a particular transaction. We record commission expense in our consolidated statements of operations at the time the commission is earned. Commissions earned but not yet paid are included in current liabilities on our balance sheets.

Leases

We account for leases in accordance with ASC Topic 842 (Leases). We determine if an arrangement is a lease at inception. A lease contract is within scope if the contract has an identified asset (property, plant, or equipment) and grants the lessee the right to control the use of the asset during the lease term. The identified asset may be either explicitly or implicitly specified in the contract. In addition, the supplier must not have any practical ability to substitute a different asset and would not economically benefit from doing so for the lease contract to be in scope. The lessee’s right to control the use of the asset during the term of the lease must include the ability to obtain substantially all the economic benefits from the use of the asset as well as decision-making authority over how the asset will be used. Leases are classified as either operating leases or finance leases based on the guidance in ASC Topic 842. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment and financing lease liabilities. We do not currently have any financing leases.

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Operating lease payments are included in cash outflows from operating activities on our consolidated statements of cash flows.

We have made an accounting policy election not to apply the recognition requirements of ASC Topic 842 to short-term leases (leases with a term of one year or less at the commencement date of the lease). Our lease periods are less than one year in duration. Lease expense for short-term lease payments is recognized on a straight-line basis over the lease term.

Following the guidance of ASC Topic 842, we are not required to record ROU assets and operating lease liabilities.

See Note 6 for further disclosures regarding our leases.

Researchand Development and Software Development Expenses

All research and development costs, including patent and software development costs, are expensed as incurred.

Stock-BasedCompensation

We account for stock-based compensation in accordance with ASC Topic 718 (Compensation – Stock Compensation) which requires that employee share-based equity awards be accounted for under the fair value method and requires the use of an option pricing model for estimating fair value of awards, which is then amortized to expense over the service periods. The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing mode or the fair value of our stock on the grant date. The value of the portion of the award that is ultimately expected to vest is recognized as stock compensation expense over the requisite service period in the Company’s consolidated statements of income. See further disclosures related to our stock-based compensation plans in Note 13.

Legal

We are subject to legal proceedings, claims, and liabilities which arise in the ordinary course of business, and we accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to general and administrative expenses as they are incurred.

IncomeTaxes

We utilize the asset and liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that the value of such assets will be realized.

We use the two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments. We did not record any liabilities for uncertain tax positions during the six months ended March 31, 2026.

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NetLoss Per Common Share

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the reporting period. The weighted average number of shares is calculated by taking the number of shares outstanding and weighting them by the amount of time that they were outstanding. Diluted earnings per share reflects the potential dilution that could occur if warrants were exercised or equity awards vest resulting in the issuance of common stock that could share in our earnings. Diluted loss per share is the same as basic loss per share during periods where net losses are incurred since the inclusion of the potential common stock equivalents would be anti-dilutive because of the net loss.

Warrants

We evaluate warrants in accordance with ASC Topics 480 (Distinguishing Liabilities from Equity) and 815 (Derivatives and Hedging). The result of this accounting treatment is that the fair value of the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a liability. The change in fair value is recorded in the Statement of Operations as a component of other income or expense. Upon exercise of a warrant, it is marked to fair value at the exercise date and then that fair value is reclassified to equity.

RecentAccounting Announcements

FASB issues Accounting Standards Updates (“ASU”) to amend the authoritative literature in the ASC. There have been several ASUs to date that amend the original text of the ASCs. Other than those discussed below, we believe those ASUs issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us, or (iv) are not expected to have a significant impact on us.

AccountingPronouncements Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which provides guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The purpose of the guidance is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. For us, annual reporting requirements were effective for our fiscal year 2025 beginning on October 1, 2024, and interim reporting requirements were effective beginning with our first quarter of fiscal year 2026. We manage our operations as a single operating segment for the purpose of assessing performance and making operating decisions. Our Chief Executive Officer is our chief operating decision maker. No changes have been made to the presentation of our financial statements because of this pronouncement.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation table and disaggregation of income taxes paid, net of refunds, by jurisdiction. All entities are required to apply the guidance prospectively, with the option to apply it retrospectively. The guidance is effective for fiscal years beginning after December 15, 2024, which for us is our fiscal year 2026 beginning on October 1, 2025.

We did not adopt additional new accounting pronouncements during the six months ended March 31, 2026.

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AccountingPronouncements Not Yet Adopted

In November 2024, the FASB also issued ASU 2024-03, Disaggregation of Income Statement Expenses, which will require the disclosure of additional information about specific expense categories in the notes to the financial statements. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. For us, annual reporting requirements will be effective for our fiscal year 2028 beginning on October 1, 2027, and interim reporting requirements will be effective beginning with our first quarter of fiscal year 2029. Early adoption is permitted. We are currently evaluating the impact of this amended disclosure guidance.

In March 2024, the Securities and Exchange Commission issued a rule which will require companies to make certain climate-related disclosures in periodic filings. The rule includes certain disclosures in the footnotes of the financial statements:

● capitalized costs, expenditures expensed, and losses incurred because of severe weather events and other natural conditions, such as hurricanes, tornadoes, flooding, drought, wildfires, extreme temperatures, and sea level rise;

● capitalized costs, expenditures expensed, and losses related to carbon offsets and renewable energy credits or certificates if they are used as a material component of a registrant’s plans to achieve its disclosed climate-related targets or goals; and

● whether estimates and assumptions used to produce the financial statements were materially impacted by risks and uncertainties associated with severe weather events and other natural conditions or any disclosed climate-related targets or transition plans.

The climate-related footnote disclosures are effective for annual filings for the year ending September 30, 2026. The Company is currently evaluating the impact of the adoption of the rule.

The Company does not believe that the above recently issued, but not yet effective, accounting standards, if and when adopted, will have a material effect on the accompanying unaudited condensed consolidated financial statements.

NOTE

5 – CASH EQUIVALENTS AND INVESTMENTS

We have financial instruments included as cash equivalents and short-term investments on our balance sheets. Money market funds and time deposits with maturities of less than 90 days from the purchase date are included in “Cash and cash equivalents.” Time deposits with maturities from 91-360 days are included in “Short-term investments.” As of March 31, 2026, the Company had no long-term investments.

The following table presents the carrying amounts of cash equivalents and short-term investments as of March 31, 2026, and September 30, 2025:

SCHEDULE OF CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

	March 31,		September 30,
(in thousands)	2026		2025
Cash equivalents
Money market funds	$	264	$	-
Total cash equivalents	$	264	$	-
Short-term investments
Time deposits		-		100
Total short-term investments	$	-	$	100

For more information about the fair value of the Company’s financial instruments, see Note 7.

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NOTE

6 - LEASES

On

December 10, 2021, we entered into a lease for approximately 500

square feet of office space at 146 Main Street in Worcester, Massachusetts, with the option to renew annually. The annual renewal date is January 1^st^. The lease allows for a 2

%

increase effective at the beginning of each renewal period. The lease payment is $1,006

per month during calendar year 2026.

Operating lease payments are included in cash outflows from operating activities on our consolidated statements of cash flows.

Operating lease expenses were $6 thousand and $6 thousand for the six months ended March 31, 2026 and 2025, respectively.

We have made an accounting policy election not to apply the recognition requirements of ASC Topic 842 (Leases) to short-term leases (leases with a term of one year or less at the commencement date of the lease). Lease expense for short-term lease payments is recognized on a straight-line basis over the lease term. We do not have any long-term operating leases or financing leases as of March 31, 2026.

We expect to pay approximately $12 thousand over the next 12 months for the Worcester lease**.**

NOTE

7 – FAIR VALUE MEASUREMENT

ASC Topic 820 “Fair Value Measurement” (“Topic 820”) defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands disclosures about fair value measurements. Topic 820 is applicable whenever assets and liabilities are measured and included in the financial statements at fair value.

The following tables present the carrying amounts, estimated fair values, and valuation input levels of certain financial instruments as of March 31, 2026, and September 30, 2025.

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS

	March 31, 2026
	Carrying		Fair Value Measured Using						Fair
(in thousands)	Amount		Level 1		Level 2		Level 3		Value
Short-term investments
Time deposits: 91 - 360 days	$	-	$	-	$	-	$	-	$	-
Total short-term investments	$	-	$	-	$	-	$	-	$	-
	September 30, 2025
---	---	---	---	---	---	---	---	---	---	---
	Carrying		Fair Value Measured Using						Fair
(in thousands)	Amount		Level 1		Level 2		Level 3		Value
Short-term investments
Time deposits: 91 - 360 days	$	100	$	-	$	100	$	-	$	100
Total short-term investments	$	100	$	-	$	100	$	-	$	100

NOTE

8 – DEBT

SideChannel did not have debt at March 31, 2026.

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NOTE

9 – STOCKHOLDERS’ EQUITY

CommonStock

As

of March 31, 2026, and September 30, 2025, we had 4,572,757 and 4,446,713 shares of common stock outstanding, respectively.

The

authorized shares and par value per share of common stock were unchanged by the Reverse Split and remain at 681,000,000 shares and $0.001 per share, respectively.

We

restated our common shares outstanding (shares and amount) and the value of our APIC to reflect the number of shares outstanding after the Reverse Split. The outstanding shares were retroactively restated for the effect of the Reverse Split from 231,229,054 to 4,446,713 for September 30, 2025.

CommonStock Issued Under Equity Incentive Plan

During

the six months ended March 31, 2026, 141,870 Restricted Stock Units (“RSUs”) vested for which we issued 105,550 shares of common stock and 36,320 RSUs were sold by employees to fund payroll taxes.

During

the six months ended March 31, 2025, 123,062 RSUs vested for which we issued 94,180 shares of common stock and 28,882 RSUs were sold by employees to fund payroll taxes.

PreferredStock

As

of March 31, 2026, we had zero (0) shares of preferred stock outstanding and were authorized to issue 10,000,000 shares of preferred stock at a par value of $0.001 per share.

Warrants

We have four categories of warrants outstanding which are summarized below along with exercise prices and expiration dates.

SCHEDULE OF WARRANT OUTSTANDING

(in thousands, except prices and dates)	Number of<br> <br>Warrants		Exercise Price		Expiration Date
2018 Placement Agent		106	$	52.00	Aug 7, 2028
2021 Private Placement		130		18.72	Apr 16, 2026
2021 Placement Agent		160		9.36	Apr 16, 2031
2023 Warrant Exchange		335		9.36	Dec 29, 2028
Total Outstanding Warrants		731

The following table summarizes warrant activity for the six months ended March 31, 2026:

SCHEDULE OF WARRANT ACTIVITY

(in thousands, except prices and lives)	Number of<br> <br>Warrants			Weighted<br> <br>Average<br> <br>Exercise Price			Weighted<br> <br>Average<br> <br>Remaining Life
Outstanding at September 30, 2025		832		$	17.40			2.89
Granted		—			—			—
Exercised		—			—			—
Canceled/Forfeited		(101	)		(18.72	)		—
Outstanding at March 31, 2026		731		$	17.22			2.73

Approximately 101 thousand of 2021 Private Placement warrants expired on March 31, 2026.

The

remaining 130 thousand 2021 Private Placement warrants outstanding at March 31, 2026, expired between April 1, 2026, and April 16, 2026. Following the expiration of 2021 Private Placement warrants on April 16, 2026, the total warrants outstanding were 601 thousand with average exercise price $16.90 and remaining life of 3.3 years, respectively. The 2021 Private Placement Warrants contained terms that significantly restricted our options for raising capital. The expiration of these warrants provides us with more options to increase liquidity.

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NOTE

10 – REVENUE FROM CONTRACTS WITH CLIENTS

Deferred revenue is comprised of payments received from our clients and customers for products or services in advance of receiving the product or service and primarily occurs for annual software and service contracts including Enclave. The deferred revenue is expected to be earned within 12 months of the balance sheet date.

SCHEDULE OF CHANGES IN DEFERRED REVENUE

(in thousands)
Balance at September 30, 2025	$	801
Deferral of revenue		895
Recognition of revenue		(832	)
Balance at March 31, 2026	$	864

NOTE

11 – BUSINESS RISK AND CREDIT RISK CONCENTRATION INVOLVING CASH

One client individually accounted for over 10% of our revenue during the three months ended March 31, 2026. No one client individually accounted for over 10% of our revenue during the six months ended March 31, 2026, or the three or six months ended March 31, 2025.

We had no clients with an accounts receivable balance that exceeded 10% of accounts receivable at March 31, 2026.

We

maintain our cash, cash equivalents, and short-term investments in accounts held by highly reputable financial institutions (collectively “Deposits”). The Federal Deposit Insurance Corporation (“FDIC”) insures these Deposits up to $250 thousand per financial institution. At times our balance at each institution may exceed the $250 thousand FDIC insured limit. As of March 31, 2026, we had insured Deposits totaling $149 thousand at three (3) distinct financial institutions, leaving approximately $162 thousand of our Deposits uninsured. We have not experienced any losses on Deposits.

NOTE

12 – RELATED PARTY TRANSACTIONS

We did not have any new related party transactions or material changes to existing related party transactions during the six months ended March 31, 2026.

Brian Haugli, our Chief Executive Officer, a member of our Board of Directors, and a significant stockholder in the Company, is also a principal shareholder of RealCISO Inc. (“RealCISO”). We are a reseller of the RealCISO software. We receive revenue from our customers for the use of RealCISO software and pay licensing fees to RealCISO for such use.

For the six months ended March 31, 2026, we paid $66 thousand to RealCISO for licenses, and invoiced RealCISO $38 thousand for software development services that we provided RealCISO.

No other related party transactions occurred during the six months ended March 31, 2026.

For

fiscal years ended September 30, 2025 and 2024, SideChannel paid $75 thousand and $30 thousand to RealCISO for licenses, respectively. We also invoiced $34 thousand and $122 thousand from RealCISO for software development services that we provided RealCISO during fiscal years ended September 30, 2025, and 2024, respectively.

On October 13, 2023, the Association of the US Army (“AUSA”) signed an agreement for a cybersecurity risk assessment for approximately $24 thousand. On February 15, 2024, the President of AUSA, Retired U.S. Army General Robert Brown, joined our Board. On July 8, 2024, AUSA signed an agreement for recurring vCISO Services which generated approximately $9 thousand of revenue in fiscal year 2024 and $54 thousand of revenue in fiscal year 2025 for the Company before terminating in March 2025. SideChannel reserved booth space at the AUSA Global Force Symposium held in March 2025 and paid $8 thousand to AUSA for this event.

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NOTE

13 – STOCK-BASED COMPENSATION

We grant equity compensation awards to directors, employees, and contractors under the 2021 Omnibus Equity Compensation Plan. We have granted restricted stock units (“RSUs”) and stock options with service-based vesting conditions with vesting typically occurring over a 3-year period.

The award quantities and grant date fair values have been retroactively adjusted to reflect the Reverse Split.

RestrictedStock Units

The following table summarizes the activity of our RSUs granted under our Equity Incentive Plan during the six months ended March 31, 2026:

SCHEDULE OF RESTRICTED STOCK UNITS VESTING

(in thousands)	Number<br> <br>of RSUs
Outstanding RSUs at September 30, 2025		294
Granted		173
Vested		(142	)
Canceled/Forfeited		(12	)
Outstanding RSUs at March 31, 2026		313

On March 16, 2026, we awarded 140,497 RSUs vesting over three years beginning on March 1, 2027, and ending on March 1, 2029, to officers and employees. During the quarter ended December 31, 2025, we awarded 32,695 RSUs to new employees. Vesting of 30,771 RSUs awarded during the quarter ended December 31, 2025, occurs over three years beginning on March 1, 2026, and ending on March 1, 2028, and the remaining 1,924 vested on March 2, 2026. The average grant date fair value of RSUs granted during the six months ended March 31, 2026, was $2.31. The Company recognizes compensation cost for unvested share-based awards on a straight-line basis over the requisite service period.

Our

total stock-based compensation expense for the six months ended March 31, 2026, was $191 thousand for the amortization of outstanding equity compensation grants. Stock-based compensation of $144 thousand is included in general and administrative expense, $29 thousand in selling and marketing expense, and $18 thousand in research and development expense.

The

unamortized stock compensation expense at March 31, 2026, was $707 thousand, and the remaining weighted average term to vesting was 2.33 years.

NOTE

14 – COMMITMENTS AND CONTINGENCIES

We are currently not involved in any litigation that we believe could have a material adverse effect on its financial condition or results of operations.

NOTE

15 - SUBSEQUENT EVENTS

On

April 16, 2026, the final tranche of 2021 Private Placement Warrants expired. As of April 17, 2026, the total warrants outstanding were 601 thousand with average exercise price $16.90 and remaining life of 3.3 years, respectively. The 2021 Private Placement Warrants contained terms that significantly restricted our options for raising capital. The expiration of these warrants provides us with more options to increase liquidity.

The Company has evaluated events through May 13, 2026, the filing date of this Quarterly Report on Form 10-Q and determined that there have been no additional subsequent events that occurred that would require adjustments to our disclosures in the unaudited condensed consolidated financial statements.

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ITEM

2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements in our Management’s Discussion and Analysis of Financial Condition and Results of Operations, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements”. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (the “2025 Form 10-K”), and elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

This information should be read in conjunction with the interim unaudited financial statements and the notes thereto included in this Quarterly Report, and the audited financial statements and notes thereto and “Part II. Other Information - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contained in our 2025 Form 10-K.

Our logo and some of our trademarks and tradenames are used in this Quarterly Report. Solely for convenience, trademarks, tradenames, and service marks referred to in this Quarterly Report may appear without the ®, ™ and SM symbols. References to our trademarks, tradenames and service marks herein are not intended to indicate in any way that we will not fully assert under applicable law our rights or the rights of the applicable licensors if any, nor that respective owners of other intellectual property rights will not assert, to the fullest extent under applicable law, their rights thereto. We do not intend the use or display of other companies’ trademarks and trade names herein to imply a relationship with, or endorsement or sponsorship of us by, any other persons, firm or entity, except as otherwise so expressly indicated.

The market data and certain other statistical information used throughout this Quarterly Report are based on independent industry publications, reports by market research firms or other independent sources that we believe to be reliable sources. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. We are responsible for all the disclosures contained in this Quarterly Report, and we believe these industry publications and third-party research, surveys and studies are reliable. We are not aware of any misstatements regarding any third-party information presented in this Quarterly Report; however, their estimates, in particular, as they relate to projections, involve numerous assumptions, are subject to risks and uncertainties, and are subject to change based on various factors, including those discussed under, and incorporated by reference in, the section entitled “Part II Item1A. Risk Factors” of this Quarterly Report. These and other factors could cause our future performance to differ materially from our assumptions and estimates. Some market and other data included herein, as well as the data of competitors as they relate to SideChannel (as defined herein), is also based on our good faith estimates.

Unless the context requires otherwise, references to the “Company,” “we,” “us,” “our,” “SideChannel,” and “SideChannel, Inc.” refer specifically to SideChannel, Inc. and its consolidated subsidiaries.

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In addition, unless the context otherwise requires and for the purposes of this Quarterly Report only:

●	“Exchange<br> Act” refers to the Securities Exchange Act of 1934, as amended;
●	“SEC”<br> or the “Commission” refers to the United States Securities and Exchange Commission; and
●	“Securities<br> Act” refers to the Securities Act of 1933, as amended.

All references to years relate to the fiscal year ended September 30 of the particular year.

Overview

OurBusiness

Our mission is to make cybersecurity simple and accessible for emerging to enterprise companies, a market that we believe is currently underserved. We believe that our cybersecurity offerings will identify and develop cybersecurity, privacy, and risk management solutions for our customers. We anticipate that our target customers will continue to need cost-effective security solutions. We continue to expand our catalogue of services and solutions to address the cybersecurity needs of our customers, including virtual Chief Information Security Officer (“vCISO”), cyber program strategy, zero trust, third-party risk management, compliance readiness, cloud security services, privacy, threat intelligence, managed end-point security solutions, and cybersecurity awareness.

We are marketing and selling Enclave, a proprietary software product that simplifies important cybersecurity tasks to achieve “microsegmentation.” By combining zero trust network access with asset intelligence, certificate management and machine identity, Enclave seamlessly creates a unified security architecture that eliminates traditional network vulnerabilities. This integration enables IT teams to enforce precise access policies based on verified machine identities. Certificate-based identities allow a simplified management for any certificate-based communication, while the zero trust framework continuously validates every connection attempt. This powerful combination delivers robust security without the typical management overhead, allowing organizations to implement sophisticated microsegmentation strategies with remarkable simplicity and minimal resource requirements.

Our growth strategy focuses on these three initiatives:

●	Increasing adoption of Enclave: By promoting Enclave and our other cybersecurity solutions to our existing vCISO clients, we aim to deepen<br> our relationships and provide comprehensive, integrated security solutions. This supports the increased demand for zero trust strategies<br> and remote worker technologies.
●	Securing new vCISO Services Clients: As organizations plan to increase security investments due to breaches and the rising complexity<br> of cyber threats, we aim to expand our client base by offering flexible, expert vCISO Services that address budget constraints and<br> the need for rapid security posture establishment.
●	Adding new Cybersecurity Software and Services offerings: We plan to enhance our portfolio by incorporating transformational technologies<br> such as AI-based security operations, data security posture management, polymorphic encryption, cyber-physical system security, and<br> application security posture management. This aligns with industry trends and the anticipated incremental spend on application and<br> data security due to generative AI.

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We internally report our revenue using two categories:

●

vCISO Services: This category captures the revenue from the Chief Information Security Officer services that we provide to our clients<br> on a “virtual” or outsourced basis. Embedded into the C-suite executive teams of our clients, our vCISOs deliver services<br> including assessing the cybersecurity risk profile, implementing policies and programs to mitigate risks, and managing the day-to-day<br> tasks to ensure compliance with the adopted cybersecurity framework. Most of our clients use our vCISO Services. Engagements typically<br> include a fixed monthly subscription fee and exceed 12 months because of renewal options of 1, 3, 6, or 12 months.

●

Cybersecurity Software and Services: This category encompasses an array of cybersecurity software and services that our clients deem necessary<br> to protect their digital assets, including Enclave. These augment our vCISO offering and include a full range of other cybersecurity<br> products and services delivered through a team of security engineers along with a network of third-party service providers and value-added<br> resellers (“VARs”). Commercial relationships with third-party service providers and VARs provide SideChannel with additional<br> internal capabilities to mitigate cybersecurity risks. We earn licensing revenue from software contracts and commissions from third-party<br> service provider partnerships which are included in this revenue category.

Revenue

The following revenue metrics are for the six months ended March 31, 2026, compared to the six months ended March 31, 2025:

●	Total<br> revenue decreased by $452 thousand or 11.9%.
●	vCISO<br> Services revenue decreased by $644 thousand or 28.4%.
●	Cybersecurity<br> Software and Services category revenue grew by $192 thousand or 12.5%.

The year-over-year decline in vCISO Services revenue reflects the loss of clients with a higher-than-average annual contract value and the transitioning of vCISO Services clients into lower revenue generating Cybersecurity Software and Services. Cybersecurity Software and Services revenue benefited from these transitions along with the expansion of the software and services offered.

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We also monitor new and retained revenue. The revenue earned from clients during our first twelve months of working with them is classified as new, while the revenue earned with clients after our first twelve months of working with them is classified as retained. The following chart provides details on our new and retained revenue for the six months ended March 31, 2026 and 2025:

Further, we consider revenue retention a key performance indicator. Revenue retention is calculated by dividing retained revenue by the prior year total revenue. The following table shows the revenue retention for the trailing twelve months ended March 31, 2026, and September 30, 2025, by revenue category:

	Trailing Twelve Months Ended
	March 31,<br><br> 2026			September 30,<br><br> 2025
vCISO Services		58.9	%		56.4	%
Cybersecurity Software & Services		79.0	%		76.9	%
Total		66.8	%		63.6	%

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Resultsof Operations

ThreeMonths Ended March 31, 2026, Compared to Three Months Ended March 31, 2025

	Three Months Ended
	March 31,
(in thousands)	2026			2025
Revenues	$	1,576		$	1,894
Cost of revenues		733			953
Gross profit		843			941
Gross margin		53.5	%		49.7	%
Operating expenses
General and administrative		724			655
Selling and marketing		388			227
Research and development		179			120
Total operating expenses		1,291			1,002
Operating loss		(448	)		(61	)
Other income, net		6			9
Net loss before income tax expense		(442	)		(52	)
Income tax expense		2			2
Net loss	$	(444	)	$	(54	)
Net loss per common share – basic and diluted	$	(0.10	)	$	(0.01	)
Weighted average common shares outstanding – basic and diluted		4,497,378			4,382,878

*Revenue.*Our revenue was $1.6 million for the quarter ended March 31, 2026, compared to $1.9 million for the quarter ended March 31, 2025, representing a decrease of $318 thousand or 16.8%. This decrease was primarily due to the loss of clients with higher than average contract value.

GrossProfit. Our gross profit was $843 thousand and gross margin was 53.5% for the quarter ended March 31, 2026, compared to $941 thousand or 49.7% for the quarter ended March 31, 2025. The increase in our gross margin was the result of Enclave, which has a high gross margin, contributing a larger percentage of our revenue in the three months ended March 31, 2026, than for the three months ended March 31, 2025. Additional factors contributing to our gross margin increase in the quarter ended March 31, 2026, were improved utilization of service delivery employees in the current fiscal year compared to the prior fiscal year.

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OperatingExpenses. Operating expenses increased $289 thousand or 28.8% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The changes for each operating expense area are discussed below.

Generaland Administrative Expenses. Our general and administrative expenses were $724 thousand for the three months ended March 31, 2026, compared to $655 thousand for the three months ended March 31, 2025, representing an increase of $69 thousand or 10.5%. The increase was the result of higher personnel and public entity expenses as well as the impact of the elimination of our allowance for doubtful accounts in 2025, which was not the case in 2026, partially offset by lower consulting, legal, and amortization costs in the current fiscal year.

Sellingand Marketing Expenses. Our sales and marketing expenses were $388 thousand for the three months ended March 31, 2026, compared to $227 thousand for the three months ended March 31, 2025, representing an increase of $161 thousand or 70.9% due to an increase in employees and compensation, consulting costs, advertising, and events.

Researchand Development Expenses. Our research and development expenses were $179 thousand for the three months ended March 31, 2026, compared to $120 thousand for the three months ended March 31, 2025, representing an increase of $59 thousand or 49.2% due to an increase in employees and compensation.

SixMonths Ended March 31, 2026, Compared to Six Months Ended March 31, 2025

	Six Months Ended
	March 31,
(in thousands)	2026			2025
Revenues	$	3,350		$	3,802
Cost of revenues		1,598			1,987
Gross profit		1,752			1,815
Gross margin		52.3	%		47.7	%
Operating expenses
General and administrative		1,400			1,315
Selling and marketing		846			494
Research and development		354			273
Total operating expenses		2,600			2,082
Operating loss		(848	)		(267	)
Other income, net		13			22
Net loss before income tax expense		(835	)		(245	)
Income tax expense		5			4
Net loss	$	(840	)	$	(249	)
Net loss per common share – basic and diluted	$	(0.19	)	$	(0.06	)
Weighted average common shares outstanding – basic and diluted		4,471,765			4,364,524

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*Revenue.*Our revenue was $3.4 million for the six months ended March 31, 2026, compared to $3.8 million for the six months ended March 31, 2025, representing a decrease of $452 thousand or 11.9%. This decrease was primarily due to the loss of clients with higher than average contract value.

GrossProfit. Our gross profit was $1.8 million and gross margin was 52.3% for the six months ended March 31, 2026, compared to $1.8 million and gross margin was 47.7% for the six months ended March 31, 2025. The increase in our gross margin was the result of Enclave, which has a high gross margin, contributing a larger percentage of our revenue in the six months ended March 31, 2026, than for the six months ended March 31, 2025. Additional factors contributing to our gross margin increase in the six months ended March 31, 2026, were improved utilization of service delivery employees in the current fiscal year compared to the prior fiscal year.

OperatingExpenses. Operating expenses increased $518 thousand or 24.9% for the six months ended March 31, 2026, compared to the six months ended March 31, 2025. The changes for each operating expense area are discussed below.

Generaland Administrative Expenses. Our general and administrative expenses were $1.4 million for the six months ended March 31, 2026, compared to $1.3 million for the six months ended March 31, 2025, representing an increase of $85 thousand or 6.5%. The increase was the result of higher personnel expenses as well as the impact of the elimination of our allowance for doubtful accounts in 2025, which was not the case in 2026, partially offset by lower consulting, legal, and amortization costs in the current fiscal year.

Sellingand Marketing Expenses. Our sales and marketing expenses were $846 thousand for the six months ended March 31, 2026, compared to $494 thousand for the six months ended March 31, 2025, representing an increase of $352 thousand or 71.3% due to an increase in employees and compensation, consulting costs, advertising, and events.

Researchand Development Expenses. Our research and development expenses were $354 thousand for the six months ended March 31, 2026, compared to $273 thousand for the six months ended March 31, 2025, representing an increase of $81 thousand or 29.7% due to an increase in employees and compensation.

Liquidityand Capital Resources

During the six months ended March 31, 2026, we incurred a net loss of $840 thousand, and we used $854 thousand of cash in operating activities. Our primary source of liquidity and capital resources has been the $1.1 million of cash and cash equivalents at the beginning of fiscal year 2026. We had an accumulated deficit of $21.6 million as of March 31, 2026, which includes three non-operational expenses totaling $16.8 million: $6.2 million for the contingent consideration and business combination related costs, $5.7 million for the impairment of goodwill, and $4.9 million for the impairment of intangible assets.

We had net working capital of $49 thousand as of March 31, 2026, compared to net working capital of $770 thousand as of September 30, 2025. The decline in net working capital was primarily due to a decrease in cash partially offset by a decrease in accrued expenses.

We had $82 thousand of accounts receivable included in our deferred revenue balance of $864 thousand at March 31, 2026.

We did not have any credit facilities available to us as of March 31, 2026, or as of the filing date of this Quarterly Report.

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CashFlows

The following table summarizes selected items in our unaudited Condensed Consolidated Statements of Cash Flows for the six months ended March 31:

(in thousands)	2026			2025
Net cash provided by (used in):
Operating activities	$	(854	)	$	49
Investing activities		100			150
Financing activities		-			-

OperatingActivities

We receive cash each month from revenue generated from our clients. We use this cash and a portion of our cash reserves to pay for our monthly expenses. Material cash requirements include personnel costs and the expenses associated with being a public reporting company.

Cash used in operating activities was $854 thousand during the six months ended March 31, 2026, and we recorded a net loss of $840 thousand. During the same period, our non-cash charges totaled $119 thousand, comprised of $111 thousand in stock-based compensation expense and $8 thousand in depreciation. The changes in our net operating assets and liabilities include a $184 thousand decrease in accounts payable and accrued liabilities, a $63 thousand increase in deferred revenue, and a $22 thousand increase in prepaid expenses and other assets.

InvestingActivities

During the six months ended March 31, 2026, a $100 thousand certificate of deposit matured.

FinancingActivities

There were no financing activities during the six months ended March 31, 2026.

ITEM

3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined in Item 10(f) of Regulation S-K.

ITEM

4. CONTROLS AND PROCEDURES

DisclosureControls and Procedures

We have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure, and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this Quarterly Report, at the reasonable assurance level.

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The material weaknesses identified, and the related remediation plan are more fully described in our 2025 Form 10-K. The material weaknesses, summarized in the bullet points below, relate to the fact that we did not design and maintain accounting policies, procedures and controls to ensure complete, accurate and timely financial reporting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Specifically, the material weaknesses identified included the following:

●	We<br> did not design and maintain formal accounting policies, procedures and controls to achieve complete, accurate and timely financial<br> accounting, reporting and disclosures, including controls over the preparation and review of account reconciliations, journal entries<br> and classification of certain costs;
●	We<br> had not developed and effectively communicated to our employees our accounting policies and procedures, which resulted in inconsistent<br> practices. Since these entity level programs have a pervasive effect across the organization, management has determined that these<br> circumstances constitute a material weakness;
●	We<br> do not have sufficient, qualified finance and accounting staff with the appropriate U.S. GAAP technical accounting expertise to identify,<br> evaluate and account for accounting and financial reporting, and effectively design and implement systems and processes that allow<br> for the timely production of accurate financial information in accordance with internal financial reporting timelines. As a result,<br> we did not design and maintain formal accounting policies, processes and controls related to complex transactions necessary for an<br> effective financial reporting process; and
●	As<br> a high-growth, smaller reporting company that became responsible for listed financial reporting, we have a limited staff and budget<br> available to adequately test and monitor the effectiveness of certain internal controls.

Changesin Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the six months ended March 31, 2026, that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting, including any corrective actions regarding significant deficiencies and material weaknesses.

Limitationson Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

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PART

II

OTHER

INFORMATION

ITEM

1. LEGAL PROCEEDINGS

During the quarter ended March 31, 2026, and through the filing date of this Quarterly Report, there were no material developments to the legal proceedings as disclosed in Part I, Item 3 of the 2025 Form 10-K.

ITEM

1A. RISK FACTORS

Except as set forth below, there have been no material changes from the risk factors previously disclosed in Part I, Item 1A “Risk Factors” of our 2025 Form 10-K.

Areverse stock split may not increase the market price of our common stock or improve liquidity.

On January 23, 2026, we effectuated a reverse stock split of our outstanding common stock at a ratio of 1-for-52. There can be no assurance that the reverse stock split will result in a sustained increase in the market price of our common stock, or that it will have the intended effect of improving liquidity or market perception of our common stock. The market price of our common stock may decline following the reverse stock split, and the reduced number of shares outstanding may adversely affect the liquidity of our common stock.

In addition, reverse stock splits are often viewed negatively by the market, which may adversely affect the trading price of our common stock. If the market price of our common stock does not increase proportionately with the reverse stock split ratio, our stockholders may experience a loss in value. Further, the reverse stock split may result in some stockholders owning fewer shares, which could limit their ability to sell shares at desired prices or times.

ITEM

2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Salesof Securities

There were no sales of unregistered securities during the six months ended March 31, 2026, or from the period beginning April 1, 2026, through the filing date of this Quarterly Report.

Purchasesof Equity Securities by the Issuer and Affiliated Purchasers

There were no purchases of equity securities by the issuer or affiliated purchasers during the six months ended March 31, 2026, and from the period from April 1, 2026, to the filing date of this Quarterly Report.

ITEM

3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM

4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM

5. OTHER INFORMATION

(a) None.

(b) There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors since the Company last provided disclosure in response to the requirements of Item 407(c)(3) of Regulation S-K.

(c) During the quarter ended March 31, 2026, no director or officer of the Company adopted or terminated a contract, instruction or written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or a non-Rule 10b5-1 trading arrangement.

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ITEM

6. EXHIBITS

Exhibit<br><br> <br>No.	Description
3.1	Certificate of Amendment to the Certificate of Incorporation, as amended, of the registrant, as filed January 12, 2026 (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed with the SEC on January 16, 2026).
3.2	Certificate of Correction to the Certificate of Amendment to the Certificate of Incorporation, as amended, of the registrant, as filed January 16, 2026 (incorporated by reference to Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed with the SEC on January 16, 2026).
31.1*	Certification of Principal Executive Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline<br> XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within<br> the Inline XBRL document. XBRL Instance Document
101.SCH*	Inline<br> XBRL Taxonomy Extension Schema Document XBRL Taxonomy Extension Schema Document
101.CAL*	Inline<br> XBRL Taxonomy Extension Calculation Linkbase Document XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline<br> XBRL Taxonomy Extension Definition Linkbase Document XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline<br> XBRL Taxonomy Extension Label Linkbase Document XBRL Taxonomy Extension Label Linkbase Document
101.LAB*	Inline<br> XBRL Taxonomy Extension Presentation Linkbase Document XBRL Taxonomy Extension Presentation Linkbase Document
104*	Inline<br> XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set
*	Filed<br> electronically herewith.
---	---
**	Furnished<br> electronically herewith, not filed.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SIDECHANNEL, INC.
Date:<br> May 12, 2026	By:	/s/ Brian Haugli
		Brian<br> Haugli
		Chief<br> Executive Officer
		(Principal<br> Executive Officer)
Date:<br> May 12, 2026	By:	/s/ Ryan Polk
		Ryan<br> Polk
		Chief<br> Financial Officer
		(Principal<br> Accounting/Financial Officer)

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Exhibit 31.1

Certifications

I, Brian Haugli, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of SIDECHANNEL, INC.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: May 12, 2026	By:	/s/ Brian Haugli
---	---	---
	Name:	Brian Haugli
	Title:	Chief Executive Officer
		(Principal Executive Officer)

Exhibit 31.2

Certifications

I, Ryan Polk, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of SIDECHANNEL, INC.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: May 12, 2026	By:	/s/ Ryan Polk
---	---	---
	Name:	Ryan Polk
	Title:	Chief Financial Officer
		(Principal Financial Officer)

Exhibit 32.1

CERTIFICATIONS

Pursuant to Section 906 of the Sarbanes-Oxley Actof 2002

(Subsections (A) and (B) of Section 1350, Chapter63 of Title 18, United States Code)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Brian Haugli, Principal Executive Officer of SideChannel, Inc., a Delaware corporation (the “Company”), hereby certify, to my knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: May 12, 2026	By:	/s/ Brian Haugli
	Name:	Brian Haugli
	Title:	Chief Executive Officer
		(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

CERTIFICATIONS

Pursuant to Section 906 of the Sarbanes-Oxley Actof 2002

(Subsections (A) and (B) of Section 1350, Chapter63 of Title 18, United States Code)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Ryan Polk, Principal Financial Officer of SideChannel, Inc., a Delaware corporation (the “Company”), hereby certify, to my knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: May 12, 2026	By:	/s/ Ryan Polk
	Name:	Ryan Polk
	Title:	Chief Financial Officer
		(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.