End of Year 2021 Letter to Shareholders

Rhea-AI Summary

SANTA BARBARA, CA, Dec. 07, 2021 (GLOBE NEWSWIRE) -- High Wire Networks (OTCQB: SGSI) shared its 2021 achievements and expectations for 2022. Total Contract Value (TCV) for Overwatch and managed services is expected to reach approximately $4 million. The Human Capital Management Segment's MRR increased by 46% from March to December 2021, reaching around $2 million. The Technology sector reported nearly $10 million in orders for Q4, a record high. The Secure Voice Corp acquisition will contribute an additional $650,000 MRR. High Wire anticipates 30% sales growth in 2022, aiming to exceed $70 million.

Positive

• Total Contract Value (TCV) for Overwatch and managed services projected at $4 million.
• 46% increase in Human Capital Management Segment MRR from March to December 2021.
• Record nearly $10 million in orders in Technology sector for Q4 2021.
• Secure Voice Corp acquisition expected to add over $650,000 in MRR.
• Projected 30% sales growth in 2022, targeting over $70 million.

Negative

• Recent retreat in stock price despite prior gains, attributed to increased short positions.

Valued Shareholders,

SANTA BARBARA, CA, Dec. 07, 2021 (GLOBE NEWSWIRE) -- As we wind down 2021 and prepare for 2022, High Wire Networks (OTCQB: SGSI ) would like to provide you with highlights of what we have accomplished this year, and some insight into what we anticipate next year.  Since closing our High Wire acquisition approximately five months ago, our focus for the latter half of this year has been to set up the Company for long-term sequential success in ’22 and beyond. 

• Total Contract Value (TCV) booked for Overwatch and managed services in the third and fourth quarters of 2021 is expected to be approximately $4 million. As businesses continue to allow employees to work remotely and we see an expansion of our digital economy,  cybersecurity threats will continue to create new opportunities for the Company’s Overwatch platform, setting the stage for a strong baseline of monthly recurring revenue (MRR) in 2022 and beyond
• Our Human Capital Management Segment MRR grew from $1.37 million in March to approximately $2 million in December (46% growth) and expected MMR of $2.2 million in Q1 2022
• Our Technology sector booked nearly $10 million in orders in the fourth quarter, an all-time company record
• Secure Voice Corp, our most recent acquisition, is expected to add over $650,000 MRR going forward

Business Operations

When I joined SGSI as CEO earlier this year, we had several different entities with different management teams, accounting teams, sales teams, and support teams.  In the last five months we have consolidated those teams, streamlined our operations for maximum efficiency, and enabled scalability for the next level of success.  We now have greater visibility into what our customers are buying, with an ability to cross pollenate skills and offerings across customer segments.

Our Customers

Nothing we do could be possible without our incredible customers. We continue to grow our customer base in every channel. On top of that, we are expanding our business offerings within existing customers. Our newly streamlined sales team is having conversations with our customers that they could not have before.  Our customers are embracing our product portfolio in new ways and validating the company’s long-term strategy.

Our Stock Performance

In 2021, our long-term shareholders were rewarded with a tremendous increase in the SGSI stock price and the market cap of our company.  A year ago, the SGSI common stock traded at less than .05 a share.  In November of this year, we traded at more than .50 a share.  While the stock price has retreated in recent weeks, as the reported short position in our stock has seemingly increased, we believe that the stock is currently undervalued. As we continue to report solid results those results should eventually be reflected in our stock price. Our quest for an up listing to a national exchange should be realized in the near future and provide us with more institutional following and investment. 

Going Forward

As we have previously stated, we are expecting very significant growth in 2022.  I have shared expectations of 30% growth, which would take us over $70 million in sales.  We wanted to share with you just a few of the data points that we are seeing that guide our expectations.  Our team is focused on the mission at hand, and we will not stop innovating and building value for our shareholders.  We look forward to being able to provide more concrete guidance as we mature our systems.  We thank you for your support, and we wish you all Happy Holidays, and cheers to a healthy and prosperous 2022! 

Sincerely, 

Mark W. Porter
Chief Executive Officer
High Wire Networks, Inc.

Investor Relations

www.highwirenetworks.com/investors
investors@highwirenetworks.com

Media Relations
Susanna Song
Vice President of Communications
susanna.song@highwirenetworks.com

FAQ

What is the Total Contract Value for High Wire Networks in 2021?

The Total Contract Value (TCV) booked for Overwatch and managed services is expected to be approximately $4 million.

How much did the Human Capital Management Segment's MRR grow in 2021?

The Human Capital Management Segment's MRR grew from $1.37 million in March 2021 to approximately $2 million in December 2021, a 46% growth.

What is the expected MRR from Secure Voice Corp acquisition?

The Secure Voice Corp acquisition is expected to contribute over $650,000 in monthly recurring revenue (MRR) going forward.

What is the expected sales growth for High Wire Networks in 2022?

High Wire Networks anticipates a 30% sales growth in 2022, aiming to exceed $70 million.

How did High Wire Networks' stock perform in 2021?

SGSI stock price increased significantly in 2021, trading at over $0.50 in November after starting at less than $0.05 a year ago.