AUSTIN, TX / ACCESSWIRE / March 9, 2021 / Cipherloc Corporation (OTCQB:CLOK) ("CipherLoc"), a developer of advanced encryption technology, today provided a business update letter from Chief Executive Officer David Chasteen.
To my fellow shareholders,
The first quarter of 2021 is an important turning point for Cipherloc as we continue to move forward in our top priority - transitioning our commercial ready software into revenue.
We start 2021 an extremely lean, focused and mission-oriented organization. We look forward to excellent opportunities in the year ahead. Today I want to share a number of updates with you as we continue to move our business forward.
First, we have drastically reduced our operating expenses over the past year. The global COVID pandemic hit just as we were preparing to launch a proactive engineering, marketing and sales effort last spring. We moved quickly to halt those plans, then began a rapid cost reduction program to conserve capital and lean out the business. Those efforts have been very successful, enabling us to operate through the pandemic and continue advancing key development programs.
We also settled ongoing litigation issues over the past few months, ultimately returning more than 14.5 million shares to the company and wrapping up legal expenses. The shares returned represented approximately one-third of our total shares outstanding.
But our focus was not strictly on conserving capital or reclaiming shares. We have made consistent forward progress over the past year, with multiple partners and distributors now ready to integrate and sell our solutions.
Every stage of testing done over the past year, whether by customers or third parties, has shown that our software not only works, it works extremely well for both present and future encryption needs. Where we have seen opportunities for further performance improvement, we have done so as part of our relentless focus on giving customers the best performance possible using Cipherloc's products.
The market for quantum-resistant market solutions is growing quickly and, according to analysts, is expected to hit $9.5B by 2029. And quantum is no longer a concept - it is reality. Google arguably achieved "quantum supremacy" at the end of 2019, and quantum computers are becoming increasingly capable of breaking existing encryption.
And that threat is real.
The SolarWinds breach makes it clear that private companies need to worry about threats from foreign nation state actors, who are making significant investments in quantum and encryption.
We believe that post-quantum encryption will be one of the largest and most critical technology migrations since Y2K. And like Y2K, organizations that plan for transition early in the product lifecycle will have an easier, lower cost transition process. Organizations that wait until the last minute will spend a lot more money fighting for scarce resources.
As far as we know, today Cipherloc is the only company currently deploying the AES algorithm in a quantum-resistant way with a FIPS-certified product. We are particularly well-suited to solve the problem of quantum decryption with a solution that is agile and algorithm-independent.
We are also future proof, helping to de-risk customers who choose Cipherloc for their encryption needs. When the NIST PQE standard algorithm is selected in 2022, we will be ready to deploy it to our customers, making Cipherloc a true quantum-ready solution.
We look forward to an exciting and productive 2021 as we continue to advance our efforts with partners, distributors and customers ready to move into the post-quantum world.
Chief Executive Officer
About Cipherloc Corporation (OTCQB:CLOK)
Cipherloc Corporation provides advanced technology and expertise to secure your data Cipherloc Corporation provides advanced technology and expertise to secure your data and safeguard your privacy with the speed you need today and the agility you'll need tomorrow. Our patented Polymorphic Encryption technology provides a layer of security that is stronger, adaptable, and scalable across a variety of applications and systems. Learn more at www.cipherloc.net.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set forth in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
Darrow Associates Investor Relations
SOURCE: CipherLoc Corporation
View source version on accesswire.com: