Tue, May 13, 9:13 PM (41 days ago)
### High Wire Networks, Inc. (HWNI) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** $2,171,626 (up from $2,061,503 in Q1 2024). - **Net Loss:** $2,556,577 (increased from $414,438 in Q1 2024). - **Operating Expenses:** $3,493,139 (down from $3,588,828 in Q1 2024). - **Cash Flow:** Net cash used in operating activities was $1,213,377 (improved from $1,566,722 in Q1 2024). **Profit Margins and Cash Flow:** - **Operating Margin:** -60.8% (improved from -74.1% in Q1 2024). - **Net Margin:** -117.7% (worsened from -20.1% in Q1 2024). - **Cash Flow from Operations:** -$1,213,377 (improved from -$1,566,722 in Q1 2024). **Earnings Changes and Quarterly Performance:** - **Earnings per Share (EPS):** -$2.62 (down from -$0.43 in Q1 2024). - **Quarterly Performance:** Revenue increased by $110,123, but net loss widened significantly due to higher operating expenses and other costs. **Trends and Uncertainties:** - **Revenue Growth:** Positive trend with a 5.3% increase in revenue. - **Expense Management:** Operating expenses decreased, but other expenses increased significantly. - **Cash Flow:** Improved cash flow from operations, but still negative. - **Future Operations Impact:** Continued reliance on external financing and equity offerings. **Segment Performance:** - **Cybersecurity:** Revenue of $1,063,437, operating loss of $1,202,860. - **SVC:** Revenue of $1,108,189, operating loss of $8,471. - **Corporate:** No revenue, operating loss of $110,183. **Discontinued Operations:** - **Impact:** Significant impact on financials due to the sale of the technology services business unit and the non-compete agreement affecting AWS PR and Tropical subsidiaries. **Future Outlook:** - **Challenges:** Continued financial losses and reliance on external financing. - **Opportunities:** Potential for improved operations and increased revenue from cybersecurity services. **Management Discussion:** - **Liquidity:** Working capital deficit of $7,909,175. - **Capital Resources:** Continued need for additional financing to support operations. **Conclusion:** High Wire Networks, Inc. faces significant financial challenges with continued losses and reliance on external financing. However, there are opportunities for growth in the cybersecurity segment. The company must address its financial weaknesses to ensure long-term sustainability.