VANCOUVER, BRITISH COLUMBIA—Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries (“Plurilock” or the “Company”), an identity-centric cybersecurity solutions provider for workforces, is pleased to provide its 2021 year in review from Chief Executive Officer Ian L. Paterson.
Current and future shareholders,
As we begin 2022, we would like to thank each of you for your support of PlurilockTM. In writing this letter, I wanted to highlight the transformational progress made in 2021. Since 2016, Plurilock has rapidly grown, creating novel behavioral biometric technology and using it for our advanced cybersecurity solutions, to protect enterprises against the increasing cyber threat. As stated throughout the year, we believe that extending our distribution streams to scale the delivery of our technology solutions is imperative in driving sales and securing new clients. With this in mind, we will continue to integrate with resellers and our existing distribution channels to capitalize on the growing demand from government, education, healthcare, and defense verticals. We believe this strategy continues to evolve as we continue to capture market share in the IAM market.
Let’s look back on Plurilock’s accomplishments in 2021 with our eye to what lies ahead.
In November, we released our fiscal 2021 third quarter financial results, demonstrating strong sales growth, with CA$23.9 million in total revenue (as of September 30, 2021) for the 9 month period.
During the year we saw progress in our technology division, namely in the sales of our Plurilock ADAPTTM and Plurilock DEFENDTM product. On August 16, 2021, we secured a US$672,000 order with an overseas financial institution for our DEFEND product. This transaction marked our first purchase order in the cybersecurity market outside of North America. This sale came following the client’s stringent product evaluation in which DEFEND achieved an average detection time of under 1 minute.
Financing Success & Healthy Balance Sheet
During the year we raised over CA$9.5M in growth capital, including CA$4.6 million in a “bought deal” financing, announced on November 10, 2021. This financing, led by Leede Jones Gable, received strong institutional investor demand and participation from insiders. The additional working capital has allowed Plurilock to invest in our growth initiatives as part of our work to become the industry’s leading identity-centric cybersecurity solutions provider. We are positioned well heading into the new year with a strong balance sheet with CA$7.05 million cash on hand (as of September 30, 2021).
Growth Through M&A
We are presently seeing a shift in the way enterprises are protecting their networks and assets. This shift has resulted in emerging authentication technologies gaining traction in the market. We are regularly evaluating assets we believe could be good bolt-on acquisitions and assist us in scaling our technology and distribution, while expanding our geographical footprint.
On April 1, Plurilock announced its first acquisition of Aurora Systems Consulting, Inc., a leading cybersecurity and IT service provider based in California. Through this acquisition, Plurilock expanded its sales footprint across North America with major U.S. operations, gaining access to over 140 tier-1 customers and a professional sales team. As a result of this acquisition, Aurora now forms the backbone of Plurilock’s Solutions Division, securing multiple contracts and orders with U.S. federal and state entities, including:
U.S. Air Force – US$1.08 Million Purchase Order
U.S. Department of Defense – US$1.9 Million Purchase Order & US$1.7 Million Overseas Order
U.S. Department of Navy – US$1.15 Million Order
We will continue our work to integrate Aurora into the Plurilock family of companies and leverage existing sales channels and business relationships to serve customers in the government, education, healthcare, and defense verticals.
On October 21, we announced that Plurilock has entered into a definitive asset purchase agreement with CloudCodes Software Private Limited, a leading cloud access security broker (CASB). This pending asset acquisition is expected to provide Plurilock with additional offerings within our product portfolio and create new opportunities to provide our customers with a cloud security solution and a path to integrate low-friction, high-security behavioral biometric identity with SSO. The Cloud Codes acquisition is subject to certain closing conditions which are expected to be completed in Q1 2022. We believe this acquisition will further accelerate our sales growth and strongly position us in the zero trust market.
Expansion of Advisory Board
In 2021, we added world-class cybersecurity leadership to Plurilock’s Advisory Board to provide expert guidance as the Company moves forward. On February 4, 2021, it was announced that Dr. Jan Tighe joined our advisory board. Dr. Tighe is a retired Vice Admiral of the U.S. Navy who currently serves as an independent director at Goldman Sachs. Dr. Tighe has held numerous executive roles in the U.S. Navy and U.S. National Security Agency. Dr. Tighe has a 20-year federal career, having served as the Deputy Chief of Naval Operations for Information Warfare, Director of Naval Intelligence, Fleet Commander of the U.S. Fleet Cyber Command, and Deputy Director of Operations in the U.S. Cyber Command.
Continued Innovation with an Eye Toward Zero Trust
As part of our commitment to continuous innovation, Plurilock has continued to expand our competitive moat through patent filings. On October 28, we announced that Plurilock has submitted documentation to finalize a patent currently pending with the United States Patent and Trademark Office, to solve for delays that exist when operating remotely in a virtual desktop infrastructure environment and protect against cyber attacks that target remote desktop data.
In addition to new offerings via M&A activities, Plurilock has continued to invest heavily in the development of its core continuous authentication products, Plurilock ADAPT and Plurilock DEFEND. Our team has been working hard to innovate and enhance the functionality of our products, with an eye toward the growing emphasis on a zero trust architecture (ZTA). We have seen the market begin a shift from outdated authentication paradigms to the mindset of zero trust – never trust, always verify – and the architecture that will facilitate enhanced security for enterprises. Zero trust will be a core focus for us in the year ahead.
Expectations for 2022
As we look to the next year, you can expect that Plurilock will be focused on executing on our combined organic and in-organic growth strategy, continuing product development, and pursuing opportunities that solidify our role as a zero trust leader.
I am energized about our future, as customer demand in cybersecurity continues to accelerate. And while the number of high-profile cyber attacks continue to increase, and the challenges posed by COVID-19 persist, the Plurilock family of companies is positioned for growth and to deliver a competitive product in the growing zero trust market.
Thank you for your continued support and investment in our company.
Ian L. Paterson
Chief Executive Officer
Plurilock provides identity-centric cybersecurity for today’s workforces. The Plurilock family of companies enables organizations to operate safely and securely while reducing cybersecurity friction. Plurilock offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division. Together, the Plurilock family of companies delivers persistent identity assurance with unmatched ease of use.
For more information, visit https://www.plurilock.com or contact:
Ian L. Paterson
Chief Executive Officer
Chief Financial Officer
This press release may contain certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) related to future events or Plurilock’s future business, operations, and financial performance and condition. Forward-looking statements normally contain words like “will”, “intend”, “anticipate”, “could”, “should”, “may”, “might”, “expect”, “estimate”, “forecast”, “plan”, “potential”, “project”, “assume”, “contemplate”, “believe”, “shall”, “scheduled”, and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock’s business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, the success of the Company in obtaining new or extended contracts or orders; the Company’s ability to maintain existing customers or develop new customers; the Company’s ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; and unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company’s business are more fully discussed under the heading “Risk Factors” in its most recent Annual Information Form. They are otherwise disclosed in its filings with securities regulatory authorities available on SEDAR at www.sedar.com.
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