VirtualArmour Reports Q3 2020 Results

VirtualArmour Reports Q3 2020 Results

16% Growth in Managed & Professional Services

CENTENNIAL, Colorado, – (November 30, 2020) – VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), a premier cybersecurity managed services provider, reported results for the third quarter ended September 30, 2020. Financial results are in U.S. dollars, with comparisons made to the same year-ago quarter unless otherwise noted. For complete details, please refer to our financial statements and discussion found here: https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00037617 

2020-Q3 Financial Highlights

  • Managed and professional services revenue for the quarter increased to $1.6 million, increasing by 15.6% year-over-year. 
  • Gross profit margins for managed and professional services exceeded 52% with overall gross profit margin, including lower margin resale revenue, of 38.2%. 
  • The company realized $130,000 in operating income in the quarter ending September 30, 2020.
  • Adjusted EBITDA was $218,000 for the quarter ending September 30, 2020. See Supplemental Non-GAAP Financial Measures below.
  • Annual recurring revenue (ARR) totaled $5.1 million at September 30, 2020, representing an increase of  8% from $4.7 million at September 30, 2019. ARR is defined as the value of VirtualArmour’s service contracts normalized to a one-year period.

2020-Q3 Operational Highlights 

  • Launch of new Essential Core Managed SOCaaS service offering and initial customer activated to the service. These economical service offerings enable current and new clients to extend, renew, or establish contracts with VirtualArmour given the current market conditions. 
  • Won 595k Managed SIEM, Endpoint Detection & Response contract win with high-tech manufacturing client.
  • VirtualArmour & Dynamic Funding Partnership enables financial options for clients to defer payments on managed service costs. Locks in for the term – hardware, software, and managed services for reduced upfront cashflow expenditure.
  • Strengthened relationship within the IBM Partner program, as well as new relationship expansion to Forescout Technologies, driving additional leads into the business. 
  • Digital marketing tactics expanded to Colorado region podcast audio advertisements and The Guardian UK online digital advertisements.
  • Memorandum of Understanding signed with Teesside University; strengthening the ties with Local University to UK SOC. Allowing VirtualArmour to conduct advanced research and development projects which lead to cutting edge solutions that would solve real life VirtualArmour problems, enriched access to hiring and module input.


2020-Q3 Financial Summary

  • Revenue totaled $2.76 million for the three months ending September 30, 2020. Managed and professional services revenue totaled $1.6 million in the third quarter reflecting a 15.6% increase in managed and professional services revenue year-over-year and Product revenue increased year-over-year by 11.0% to $1,128,000.
  • Q3 2020 Cost of sales totaled $1.7 million, same as 2019.
  • Gross profit was $1.06 million for the third quarter 2020 as compared to $723,000 in 2019. The change in gross profit was due to higher margin revenues from managed services and higher utilization of professional services resources in the third quarter 2020.
  • Total operating expenses were $926,000 in the third quarter 2020 as compared to $1.07 million in the prior year. 
  • Operating income was $130,000 for the third quarter 2020 compared to an operating loss of $342,000 in 2019. Net income was $185,500 or $(0.00) per share in the third quarter as compared to a net loss of $492,000 or $(0.01) per share in the prior year. 
  • Cash totaled $16,262 at September 30, 2020, compared to $72,358 at September 30, 2019.

Management Commentary

Tianyi Lu, VirtualArmour VP Product Strategy, highlights, “We have had great results from the launch of our new Essential Core Service offerings, so we have expanded these offerings to include SOCaaS. This new offering is intended for businesses that are less complex, but still require management of their SIEM while being mindful of their budgets.”

VirtualArmour CEO, Russ Armbrust, gives an overview of market conditions, “We are seeing an increase in the market for managed and professional security services when working with new clients that are looking to out-source their IT needs.”

VirtualArmour Outlook 2020

COVID-19 pandemic has forced a rapid shift in business to a remote workforce, something most companies were not prepared to do. With employees working from home for the first time, many IT departments are overwhelmed in regard to their cybersecurity posture and the expansion of their Remote Access VPNs. While having employees work from home reduces the risk of spreading and contracting the virus, this also puts business data at risk of malicious security threats. An unprotected remote workforce increases a company’s chance of security threats and can lead to detrimental consequences for a business – some even being forced into bankruptcy. In order to protect the remote workforce and prevent data loss, businesses will need to keep a close eye on security or hire an outside Managed Security Services Provider (MSSP) to ensure their information is secure. Due to its focus and go-to market on Managed Services, VirtualArmour is better prepared operationally and strategically to address these rapidly evolving needs compared to others that may have a narrower focus on just hardware/software resale.

Due to this rapidly evolving environment, VirtualArmour’s customers have approached the Company for needed expertise on filling their ever-changing needs. Companies are laying off IT staff to cut costs which results in an increased reliance on MSPs. Customers are relying on VirtualArmour as their strategic partner to help them with not only the planning and design, but also on-going managed services post COVID. VirtualArmour is well-positioned to capitalize on this growth opportunity and continues to deepen its penetration into the healthcare, financial, retail and service provider industries. VirtualArmour has seen an uptick in professional services around SSL VPN migrations and implementations due to a shifting workforce to all remote employees. The Company’s ability to provide Network Managed Services has been emphasized due to client base having to work fully remote with a reliance on digital communications’ uptime/availability critical to their success.

In order to increase managed services gross margin and further internal operational efficiency, VirtualArmour has enhanced its roadmap for automation. Based on existing KPI’s, it is expected that the productivity of our SOC analysts will drastically increase due to automating more of their typical workload, allowing us to accomplish more with less. SOC automation will allow VirtualArmour to resolve current and future threats quickly with automated proprietary playbooks, as attackers are becoming more sophisticated in their tactics and techniques. This differentiator keeps VirtualArmour at the forefront of stopping cybersecurity threats and increasing our clients’ security postures. The SOC Automation project in conjunction with Teesside University is due to commence in early September and the expectation is that we will start to see results by the end of 2020 – setting the foundations for expansion at scale in 2021.

About VirtualArmour 

VirtualArmour International is a global cybersecurity and managed services provider that delivers customized solutions to help businesses build, monitor, maintain and secure their networks. 

The company maintains 24/7 client monitoring and service management with specialist teams located in its U.S. and UK-based security operation centers. Through partnerships with best-in-class technology providers, VirtualArmour delivers leading hardware and software solutions for customers that are both sophisticated and scalable, and backed by industry-leading customer service and experience. The company’s proprietary CloudCastr client portal and prevention platform provides clients with unparalleled access to real-time reporting on threat levels, breach prevention and overall network security. VirtualArmour services a wide range of clients, which include Fortune 500 companies and several industry sectors in over 30 countries across five continents. For further information, visit www.virtualarmour.com.

Supplemental Non-GAAP Financial Measures

In addition to GAAP financial measures, management uses non-GAAP financial measures to assess the company’s operational performance. It is likely that the non- GAAP financial measures used by the company will not be comparable to similar measures reported by other issuers or those used by financial analysts as their measures may have different definitions.  Generally, a non-GAAP financial measure is a numerical measure of an entity’s historical or future financial performance, financial position or cash flows that is neither calculated nor recognized under GAAP. Management believes that such non-GAAP financial measures can be important as they provide users of the financial statements with a better understanding of the results of the company’s recurring operations and their related trends, while increasing transparency and clarity into its operating results. Management also believes these measures can be useful in assessing the company’s capacity to discharge its financial obligations.

Management assesses adjusted EBITDA as the net gain (loss) for the period as reported excluding depreciation and amortization, change in fair value of warrant derivative liabilities, share-based compensation and interest expense. Adjusted EBITDA is not a term recognized under GAAP and non-GAAP measures do not have standardized meaning. Accordingly, non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. 

The table below provides a reconciliation of net gain (loss) for the period as reported to non-GAAP adjusted EBITDA for the three months and nine months ended September 30, 2020 and 2019:

Important Cautions Regarding Forward Looking Statements

This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning a service contract VirtualArmour has entered into with a current client, VirtualArmour’s continued relationship with various suppliers, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct.

Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of the Company in performing the IT implementation and migration, performance under the contract by all parties, the ability of VirtualArmour to meet timelines, the continued availability of necessary hardware, the absence of any trade war or tariffs affecting VirtualArmour’s ability to perform, competitive risks and the availability of financing. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

 

Three months ended 

September 30

Nine months ended 

September 30

Notes 2020

$

2019

$

2020

$

2019

$

Revenue 11 2,762,208 2,429,105 7,891,313 8,679,594
Cost of sales 12 (1,706,870) (1,705,750) (4,956,277) (6,207,712)
Gross Profit 1,055,338 723,355 2,935,036 2,471,882
  
Expenses
General and administrative  12 466,727 452,492 1,466,969 1,742,458
Research and development 12 97,647 53,034 279,749 154,986
Sales and marketing 12 361,412 559,770 1,231,862 1,815,814
Total Expenses 925,786 1,065,296 2,978,580 3,713,258
Gain (Loss) from Operations 129,552 (341,941) (43,544) (1,241,376)
Other Income (Expenses)
Change in fair value of warrant derivative liabilities 131,485 20,376
Interest expense (75,678) (150,096) (808,851) (299,362)
Net and Comprehensive Gain (Loss) for the period 185,359 (492,037) (832,019) (1,540,738)
Gain (Loss) per share – basic and diluted 0.00 (0.01) (0.01) (0.02)
Weighted average number of shares outstanding – basic and diluted 106,508,822 63,599,447 95,546,573 63,599,447

 

Notes September 30,           2020

$

December 31,   2019

$

ASSETS 
Current Assets
Cash  16,262 145,268
Accounts receivable 3 1,720,878 3,776,520
Other receivables 47,513
Prepaid expenses 222,853 279,003
Contract assets  1,010,710 722,683
Total Current Assets 2,970,703 4,970,987
Operating lease right-of-use assets 9 19,860 88,242
Property and equipment 4 331,223 555,860
Intangible assets 5 33,648 45,519
Contract assets  139,937 542,012
Total Assets  3,495,371 6,202,620
  
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities 6 1,459,139 5,305,786
Factoring payable 3 501,295 377,740
Deferred revenue 11 2,699,910 1,099,387
Loans payable 7 838,536 1,206,468
Current portion of operating lease liabilities 9 22,578 100,772
Current portion of finance lease liabilities 9 27,632 138,441
Due to related parties 8 401,699
Total Current Liabilities 5,549,090 8,630,293
Deferred revenue 11 215,820 626,178
Loans payable  7 429,082 281,984
Warrant liabilities 571,945
Finance lease liabilities 9 12,188
Total Liabilities  6,765,937 9,550,643
STOCKHOLDERS’ DEFICIT
Common stock, no par value, 300,000,000 shares authorized Issued and outstanding: 106,508,822 (2019 – 63,599,447) shares 8,578,654 7,670,975
Additional paid-in capital 2,015,242 2,013,445
Deficit (13,864,462) (13,032,443)
Total Stockholders’ Deficit  (3,270,566) (3,348,023)
Total Liabilities and Stockholders’ Deficit  3,495,371 6,202,620

Company Contact

Russ Armbrust, CEO

VirtualArmour International Inc.

Tel (720) 644-0913

Email Contact

VirtualArmour Reports Q3 2020 Results

VirtualArmour Wins $595k Managed SIEM, Endpoint Detection & Response Contract with High-tech Manufacturing Client

FOR IMMEDIATE RELEASE
October 12, 2020

Contact: Elise Silagy
Marketing Coordinator
[email protected]

VirtualArmour Wins $595k Managed SIEM, Endpoint Detection & Response Contract with High-tech Manufacturing Client

Denver, CO, October 2020: VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), cybersecurity managed services provider, has won the contract to manage a new manufacturing client’s SIEM and Endpoint  Detection & Response. This contract will include managed cybersecurity services and a major QRadar Cloud &  Crowdstrike hardware/software refresh to the manufacturing client’s network. The total contract value is $595,000 over a 1-year period.  

Tianyi Lu, VirtualArmour VP of Product, is excited to announce, “We are greatly looking forward to this new partnership with a client in the high-tech manufacturing industry. As 2020 comes to a close, we continue to see  new business and a need for our services across many growing industries.”  

VirtualArmour CEO, Russ Armbrust explains, “Remote work has forever changed how IT departments and cybersecurity teams need to approach endpoints, with consideration of how organizations are allowing employees to use their own personal devices. Securing these endpoints is critical, especially when they have access to sensitive customer or company data. In the high-tech manufacturing industry, it is more important  than ever to protect data, we feel that this new client came to us because our team of expert cybersecurity  engineers can ensure a safe online environment and the protection they need.” Managed service contracts to  be covered include: 

Endpoint Detection & Response 

Our next-generation endpoint protection solutions provide continuous breach protection. We provide constant prevention, detection, visibility, and intelligence, so our clients can be protected before, during and even after a  breach. 

Managed SIEM 

Creation and management of all rules and policies in the SIEM environment based on the needs of our client.  Full incident detection and remediation/recommendations will be provided, as well as asset detection and monitoring as assets enter and leave the network.  

VirtualArmour offers end-to-end project management and support for the duration of these projects led by professionals with experience in Managed SIEM and Endpoint Detection & Response projects of equal or greater size. VirtualArmour also ensures a consistent review, knowledge transfer, handover and operational success of the new network architecture to the client.  

About VirtualArmour 

VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial  alerting to the investigation phase to resolution. Visit us at www.virtualarmour.com

VirtualArmour Wins $1.7M Managed SIEM & Vulnerability Scanning Contract with Healthcare Client

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FOR IMMEDIATE RELEASE
July 17, 2020
Download as PDF

Contact: Elise Silagy
Marketing Coordinator
[email protected]

VirtualArmour Wins $1.7M Managed SIEM & Vulnerability Scanning Contract with Healthcare Client

Denver, CO, June 2020: VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), cybersecurity managed services provider, has won (2) contracts to manage a healthcare client’s SIEM and Vulnerability Scanning. The contracts will include professional and managed cybersecurity services as well as a major hardware/software refresh to the healthcare client’s network. VirtualArmour was able to provide a special financing option to defer payments on managed service costs until 2021. The total contract value is $1,700,000 over a 3-year period. 

Chad Schamberger, VirtualArmour VP of Operations, mentions, “Through our Managed SIEM offering, the client will be provided healthcare specific use cases that address security compliance standards from HIPAA. Our Vulnerability Scanning offering will provide the client with greater visibility into surface attacks, enhanced patch management and threat detection.” Managed service contracts to be covered include: 

Vulnerability Scanning Vulnerability reports generated from this offering will be utilized to gauge risk associated with known vulnerabilities and threats, which will help the client prioritize a patching schedule and/or emergency patches. 

Managed SIEM Creation and management of all rules and policies in the SIEM environment based on the needs of our client. Full incident detection and remediation/recommendations will be provided, as well as asset detection and monitoring as assets enter and leave the network. 

VirtualArmour offers end-to-end project management and support for the duration of these projects led by professionals with experience in Managed SIEM and Vulnerability Scanning projects of equal or greater size. VirtualArmour also ensures a consistent review, knowledge transfer, handover and operational success of the new network architecture to the client. VirtualArmour CEO, Russ Armbrust states, “As with many industries, the healthcare industry is highly driven by compliance from HIPAA to receive funding. VirtualArmour has become the trusted advisor when it comes to security compliance.” 

About VirtualArmour VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial alerting, to the investigation phase to resolution. Visit us at www.virtualarmour.com 

[/cs_text][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content][cs_content_seo]FOR IMMEDIATE RELEASE
July 17, 2020
Download as PDF
Contact: Elise Silagy
Marketing Coordinator
[email protected]
VirtualArmour Wins $1.7M Managed SIEM & Vulnerability Scanning Contract with Healthcare Client
Denver, CO, June 2020: VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), cybersecurity managed services provider, has won (2) contracts to manage a healthcare client’s SIEM and Vulnerability Scanning. The contracts will include professional and managed cybersecurity services as well as a major hardware/software refresh to the healthcare client’s network. VirtualArmour was able to provide a special financing option to defer payments on managed service costs until 2021. The total contract value is $1,700,000 over a 3-year period. 
Chad Schamberger, VirtualArmour VP of Operations, mentions, “Through our Managed SIEM offering, the client will be provided healthcare specific use cases that address security compliance standards from HIPAA. Our Vulnerability Scanning offering will provide the client with greater visibility into surface attacks, enhanced patch management and threat detection.” Managed service contracts to be covered include: 
Vulnerability Scanning Vulnerability reports generated from this offering will be utilized to gauge risk associated with known vulnerabilities and threats, which will help the client prioritize a patching schedule and/or emergency patches. 
Managed SIEM Creation and management of all rules and policies in the SIEM environment based on the needs of our client. Full incident detection and remediation/recommendations will be provided, as well as asset detection and monitoring as assets enter and leave the network. 
VirtualArmour offers end-to-end project management and support for the duration of these projects led by professionals with experience in Managed SIEM and Vulnerability Scanning projects of equal or greater size. VirtualArmour also ensures a consistent review, knowledge transfer, handover and operational success of the new network architecture to the client. VirtualArmour CEO, Russ Armbrust states, “As with many industries, the healthcare industry is highly driven by compliance from HIPAA to receive funding. VirtualArmour has become the trusted advisor when it comes to security compliance.” 
About VirtualArmour VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial alerting, to the investigation phase to resolution. Visit us at www.virtualarmour.com [/cs_content_seo]

VirtualArmour Wins $4.1M Managed Services Contracts with Data Center Client

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FOR IMMEDIATE RELEASE
April 14, 2020
Download as PDF

Contact: Elise Silagy
Marketing Coordinator
[email protected]

VirtualArmour Wins $4.1M Managed Services Contracts with Data Center Client

Denver, CO, April 2020: VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), a cybersecurity managed services provider, has won (3) contracts to manage a client’s network architecture and engineering, tier 1 operations center support, and data center optimization. The total contract value is $4,139,500 over a 3 year period.

Andrew Douthwaite, VirtualArmour CTO, highlights, “We are really pleased that this new contract extends our service offerings with one of our longest standing clients. As we manage and operate this client’s infrastructure, provisioning new customers and keeping client office locations operational through growth, we are hopeful our client sees the value of multiple VirtualArmour service offerings, building a lasting relationship where both companies can grow together successfully.” Managed service contracts to be covered include:

Network Architecture & Engineering

Audit existing network infrastructure, topology and design, identify inefficiencies and/or bottlenecks, and implementation of network architecture and site migrations.

Operation Center Support

Provide first line operations support 24/7 at a reduced cost and higher technical value for a major international data center provider. Customized to how the client wants their support delivered, seamless experience to thousands of client’s end customers operating under the guise of the client look and feel.

Data Center Optimization

Newly built and acquired data center locations to be combined into one logical, functional datacenter to provide the client with optimized traffic flow and a scalable architecture of the new next-generation network platform.

VirtualArmour offers end-to-end project management and support for the duration of these projects led by professionals with previous experience in network migration projects of equal or greater size. VirtualArmour also ensures a consistent review, knowledge transfer, handover and operational success of the new network architecture to the client. Client President & Chief Revenue Officer states, “VirtualArmour has become our trusted advisor when it comes to the build out of our security network and infrastructure. Working closely with us as we grow through acquisition to ensure a smooth transition on to our network is invaluable. The high-touch managed support that we rely on 24/7/365 from VirtualArmour allows us to continue our growth while ensuring the security of our company and our clients.”

About VirtualArmour

VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial alerting, to the investigation phase to resolution. Visit us at www.virtualarmour.com

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Important Cautions Regarding Forward Looking Statements

This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct.

Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of this partnership, the future deal potential from this partnership, future interest in such partnerships, competitive risks and the availability of financing. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

[/cs_text][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content][cs_content_seo]FOR IMMEDIATE RELEASE
April 14, 2020
Download as PDF
Contact: Elise Silagy
Marketing Coordinator
[email protected]
VirtualArmour Wins $4.1M Managed Services Contracts with Data Center Client
Denver, CO, April 2020: VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), a cybersecurity managed services provider, has won (3) contracts to manage a client’s network architecture and engineering, tier 1 operations center support, and data center optimization. The total contract value is $4,139,500 over a 3 year period.
Andrew Douthwaite, VirtualArmour CTO, highlights, “We are really pleased that this new contract extends our service offerings with one of our longest standing clients. As we manage and operate this client’s infrastructure, provisioning new customers and keeping client office locations operational through growth, we are hopeful our client sees the value of multiple VirtualArmour service offerings, building a lasting relationship where both companies can grow together successfully.” Managed service contracts to be covered include:
Network Architecture & Engineering
Audit existing network infrastructure, topology and design, identify inefficiencies and/or bottlenecks, and implementation of network architecture and site migrations.
Operation Center Support
Provide first line operations support 24/7 at a reduced cost and higher technical value for a major international data center provider. Customized to how the client wants their support delivered, seamless experience to thousands of client’s end customers operating under the guise of the client look and feel.
Data Center Optimization
Newly built and acquired data center locations to be combined into one logical, functional datacenter to provide the client with optimized traffic flow and a scalable architecture of the new next-generation network platform.
VirtualArmour offers end-to-end project management and support for the duration of these projects led by professionals with previous experience in network migration projects of equal or greater size. VirtualArmour also ensures a consistent review, knowledge transfer, handover and operational success of the new network architecture to the client. Client President & Chief Revenue Officer states, “VirtualArmour has become our trusted advisor when it comes to the build out of our security network and infrastructure. Working closely with us as we grow through acquisition to ensure a smooth transition on to our network is invaluable. The high-touch managed support that we rely on 24/7/365 from VirtualArmour allows us to continue our growth while ensuring the security of our company and our clients.”
About VirtualArmour
VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial alerting, to the investigation phase to resolution. Visit us at www.virtualarmour.com
Important Cautions Regarding Forward Looking Statements
This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct.
Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of this partnership, the future deal potential from this partnership, future interest in such partnerships, competitive risks and the availability of financing. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.[/cs_content_seo]

VirtualArmour Service Offering – Response to COVID-19 Business Continuity

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Contact: Elise Silagy
Marketing Coordinator
[email protected]
Download as PDF

Denver, CO, March 2020: COVID-19 pandemic has forced a rapid shift in business to a remote workforce, something most companies were not prepared to do. With employees working from home for the first-time many IT departments are overwhelmed regarding their cybersecurity and the expansion of their Remote Access VPNs. While having employees work from home reduces the risk of spreading and contracting the virus, this also puts business data at risk to malicious security threats. An unprotected remote workforce increases a company’s chance of security threats and can lead to detrimental consequences for a business – some even being forced into bankruptcy. In order to protect the remote workforce and prevent data loss, businesses will need to keep a close eye on security or hire an outside Managed Security Services Provider (MSSP) to ensure their information is secure. VirtualArmour has expertise in supporting a work from home capability for our current customers and with the business shift, have experienced a major uptick in inbound requests to provide this capability.
Over the next several weeks, many businesses will be evaluating the steps they need to take to protect their business from security threats. VirtualArmour CEO, Russ Armbrust commented on the current economic situation, “We are seeing a huge shift in the business environment, I believe this is not only a short-term impact but the shift will become a long-term solution for a way to conduct business. I believe we will start to see many companies embrace the work from home lifestyle for their employees to boost profitability and save on cost in the near future.” As for steps that can be taken in the immediate future, VirtualArmour suggests:

  • Implement Virtual Private Networks (VPN): VPNs allow employees to access the resources they need securely. VPNs are a useful security tool for remote workers because it provides access to company resources by way of a private network. This protects companies by encrypting web traffic from hackers looking to access private information. An additional layer of protection that works side by side with VPN, is firewall protection.
  • Remote Access VPN Service: Secure your remote workforce and empower always/anywhere productivity. We design, deploy, & monitor VPN connections for businesses and institutions of all sizes.
  • Device Protection: Devices outside the office are more vulnerable to attacks. Advise staff about the risk of having their devices outside the office and how to reduce the loss of their devices.
  • SIEM Health Check Service: SIEM Health Check will evaluate and review an existing SIEM deployment against industry best practices. VirtualArmour will review overall SIEM environment for correct software levels, EPS licenses, and reporting.
  • Reporting on Security Issues: Put in place a system where employees can report any security issues they might encounter while working remotely. There will be an increase in the number of email scams regarding the Coronavirus. Advise employees about email scams and how to identify if the email is authentic or not.
  • Vulnerability Scanning Service: VirtualArmour has a team of engineers that can monitor and find potential security threats 24/7. Once a threat is detected, an engineer will take action within minutes to remove the threat. Our engineers will alert you to the incident, file a report, and record it in our client portal.

About VirtualArmour

VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial alerting, to the investigation phase to resolution. Visit us at www.virtualarmour.com[/cs_text][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content][cs_content_seo]Contact: Elise Silagy
Marketing Coordinator
[email protected]
Download as PDF
Denver, CO, March 2020: COVID-19 pandemic has forced a rapid shift in business to a remote workforce, something most companies were not prepared to do. With employees working from home for the first-time many IT departments are overwhelmed regarding their cybersecurity and the expansion of their Remote Access VPNs. While having employees work from home reduces the risk of spreading and contracting the virus, this also puts business data at risk to malicious security threats. An unprotected remote workforce increases a company’s chance of security threats and can lead to detrimental consequences for a business – some even being forced into bankruptcy. In order to protect the remote workforce and prevent data loss, businesses will need to keep a close eye on security or hire an outside Managed Security Services Provider (MSSP) to ensure their information is secure. VirtualArmour has expertise in supporting a work from home capability for our current customers and with the business shift, have experienced a major uptick in inbound requests to provide this capability.
Over the next several weeks, many businesses will be evaluating the steps they need to take to protect their business from security threats. VirtualArmour CEO, Russ Armbrust commented on the current economic situation, “We are seeing a huge shift in the business environment, I believe this is not only a short-term impact but the shift will become a long-term solution for a way to conduct business. I believe we will start to see many companies embrace the work from home lifestyle for their employees to boost profitability and save on cost in the near future.” As for steps that can be taken in the immediate future, VirtualArmour suggests:
Implement Virtual Private Networks (VPN): VPNs allow employees to access the resources they need securely. VPNs are a useful security tool for remote workers because it provides access to company resources by way of a private network. This protects companies by encrypting web traffic from hackers looking to access private information. An additional layer of protection that works side by side with VPN, is firewall protection.
Remote Access VPN Service: Secure your remote workforce and empower always/anywhere productivity. We design, deploy, & monitor VPN connections for businesses and institutions of all sizes.
Device Protection: Devices outside the office are more vulnerable to attacks. Advise staff about the risk of having their devices outside the office and how to reduce the loss of their devices.
SIEM Health Check Service: SIEM Health Check will evaluate and review an existing SIEM deployment against industry best practices. VirtualArmour will review overall SIEM environment for correct software levels, EPS licenses, and reporting.
Reporting on Security Issues: Put in place a system where employees can report any security issues they might encounter while working remotely. There will be an increase in the number of email scams regarding the Coronavirus. Advise employees about email scams and how to identify if the email is authentic or not.
Vulnerability Scanning Service: VirtualArmour has a team of engineers that can monitor and find potential security threats 24/7. Once a threat is detected, an engineer will take action within minutes to remove the threat. Our engineers will alert you to the incident, file a report, and record it in our client portal.
About VirtualArmour
VirtualArmour is a global Managed Security Services Provider (MSSP) that delivers custom security services tailored to meet the needs of our clients. VirtualArmour manages the entire security lifecycle, from initial alerting, to the investigation phase to resolution. Visit us at www.virtualarmour.com[/cs_content_seo]

VirtualArmour Reports Q3 2019 Results; Services Revenue Exceeds Product Sales Revenue For First Time

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CENTENNIAL, Colo., Nov. 29, 2019 (GLOBE NEWSWIRE) — VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), a premier cybersecurity managed services provider, reported results for the third quarter ended September 30, 2019. Financial results are in U.S. dollars, with comparisons made to the same year-ago quarter unless otherwise noted.

Q3 2019 Financial Highlights

  • Revenue for the quarter came in at $2.4 million.
  • Managed and professional services revenue increased 9.5% to $1.4 million, due primarily to the expansion and addition of clients signed under contracts over the last year.
  • Gross profit as a percentage of revenue increased to 29.8% from 26.4% due to a favorable shift in revenue mix to higher margin managed and professional services revenue.
  • Annual recurring revenue (ARR) totaled $4.7 million at September 30, 2019, up 12% from $4.2 million at September 30, 2018. The company defines ARR as the value of its service contracts normalized to a one-year period.

Q3 2019 Operational Highlights

  • Won a $330K contract with a Global Service Provider.  This opportunity will build on the almost $2M additional hardware, software and services deals that have been closed since January of 2019 for this customer.
  • Expanded opportunity with Global Satellite Company with a $245K gateway expansion project. This opportunity will build on the $1.7M additional hardware deals that have been closed in the first half of 2019 for this customer.
  • Was ranked Top 100 MSSP Globally by MSSP Alert’s Top 200 MSSP List.
  • Joined AT&T Cybersecurity Partner Program to Deliver 24/7 Cybersecurity Managed Services Across the Globe.
  • Signed two new channel partner as managed security service resellers that expands the range of service offerings to both companies allowing VirtualArmour to pursue opportunities across the US.

Q3 2019 Financial Summary

Revenue totaled $2.4 million in the third quarter of 2019. The improvement was due to managed and professional services revenue increasing 9.5% to $1.4 million while overall sales declined from $3.9 million vs. the same period a year ago due to lower product sales (hardware and software).

Cost of sales totaled $1.7 million in the third quarter of 2019 as compared to $2.9 million in the year ago quarter). The decrease in cost of sales was due primarily to a decrease in product cost of sales.

Gross profit was $0.7 million or 29.8% of revenue in the third quarter of 2019, as compared to $1.0 million or 26.4% of revenue in the year ago quarter. The increase in gross profit and gross profit as a percentage of revenue was due to a favorable shift in revenue to higher margin managed and professional services revenue.

Total expenses were $1.1 million in the third quarter of 2019, as compared to $1.1 million in the year ago quarter.

Net and comprehensive loss was $492,000 or $(0.01) per share in the third quarter of 2019, as compared to a loss of $165,000 or $(0.00) per share in the year-ago quarter. The loss was primarily due to lower gross profit reflecting the lower product sales and the increase in interest expense.

Cash totaled $72,000 at September 30, 2019, compared to $25,000 at June 30, 2019, with the increase primarily due to the collection of receivables.

Management Commentary

“In 2019, we saw our business shift from a focus on hardware sales to more services contracts. Q3 is the first time that we have seen our managed service and professional service revenue exceed our hardware/software revenue,” said  Russ Armbrust, CEO of VirtualArmour. “VirtualArmour will benefit from this shift to managed services vs. third party resale, given rapidly growing, high margin, recurring revenues are highly attractive, thereby increasing valuation multiples. Consequently, enterprise value will increase as VirtualArmour continues to deemphasize the hardware/software resale business and continues to focus on expanding its managed service business.

“As part of the new alliance with AT&T Cybersecurity, the AlienVault Unified Security Management™ (USM™) platform will be integrated with VirtualArmour’s proprietary CloudCastr client portal. The integration of our platforms will further simplify and centralize threat management across our new and existing customers’ cloud and on-premise environments. Through this alliance, we also see a tremendous cross-selling opportunity to bring a unique combination of capability and value to our respective clients

“Subsequent to the quarter, we expanded upon an engagement with a global satellite company. This client has been a long-time customer of ours and exemplifies the type of customer we focus on as a cornerstone to our growth strategy. Through our partnership we have worked closely together to open gateways all over the globe enabling this satellite provider to become a pioneering force in networking and communications.

“Due to the continued growing threat of targeted breaches across all industries and business sizes, our outlook for the rest of 2019 and into 2020 remains very positive. We are seeing larger budgets being allocated to cyber protection as companies prepare for 2020 and beyond. We anticipate further revenue growth and margin expansion from our continued ramp up in sales of managed services, along with further penetration of new markets led by our growing sales, marketing, and service organization.”

Cybersecurity Outlook

Annual global cyber losses are expected to hit US$6 trillion by 2021, with cybersecurity spending projected to exceed a total of US$1 trillion for the five years leading up to 2021. This is according to a report from Cybersecurity Ventures that suggests the immediate costs of a cyberattack can be significant, but the damage to a business’s reputation could cost just as much or even more in the long term.

With the ever-increasing cybersecurity risks and regulations being introduced, business leaders are fast realizing that there is more to be protected and serious penalties for not complying. According to the Worldwide Security Spending Guide from International Data Corporation (IDC), worldwide spending on security solutions will achieve a compound annual growth rate (CAGR) of 9.2% over the 2018 to 2022 forecast period and total US$133.8 billion in 2022.

The report says worldwide spending on security-related software, hardware and services is forecast to reach $103.1 billion in 2019, an increase of 9.4% over 2018.

VirtualArmour is well positioned to capitalize on this growth opportunity and continues to deepen its penetration into the healthcare, financial, retail and service provider industries.

About VirtualArmour

VirtualArmour International is a global cybersecurity and managed services provider that delivers customized solutions to help businesses build, monitor, maintain and secure their networks.

The company maintains 24/7 client monitoring and service management with specialist teams located in its U.S. and UK-based security operation centers. Through partnerships with best-in-class technology providers, VirtualArmour delivers leading hardware and software solutions for customers that are both sophisticated and scalable, and backed by industry-leading customer service and experience. The company’s proprietary CloudCastr client portal and prevention platform provides clients with unparalleled access to real-time reporting on threat levels, breach prevention and overall network security. 

VirtualArmour services a wide range of clients, which include Fortune 500 companies and several industry sectors in over 30 countries across five continents. For further information, visit www.virtualarmour.com.

Important Cautions Regarding Forward Looking Statements

This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning a service contract VirtualArmour has entered into with a current client, VirtualArmour’s continued relationship with various suppliers, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct.

Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of the Company in performing the IT implementation and migration, performance under the contract by all parties, the ability of VirtualArmour to meet timelines, the continued availability of necessary hardware, the absence of any trade war or tariffs affecting VirtualArmour’s ability to perform, competitive risks and the availability of financing. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

VirtualArmour International Inc.
Interim Consolidated Statements of Operations and Comprehensive Loss
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – Expressed in U.S. Dollars)
Three months ended
September 30
Nine months ended
September 30
2019
$
2018
$
2019
$
2018
$
   
Revenue 2,429,105 3,932,672 8,679,594 11,203,415
Cost of sales (1,705,750) (2,894,256) (6,207,712) (8,161,866)
Gross Profit 723,355 1,038,416 2,471,882 3,041,549
Expenses    
General and administrative 452,492 478,108 1,742,458 1,426,305
Research and development 53,034 56,189 154,986 144,569
Sales and marketing 559,770 591,730 1,815,814 1,710,889
Total Expenses 1,065,296 1,126,027 3,713,258 3,281,763
Loss from Operations (341,941) (87,611) (1,241,376) (240,214)
Other Income (Expenses)    
Change in fair value of warrant derivative liabilities 2,589
Interest expense (150,096) (77,804) (299,362) (174,201)
Net and Comprehensive Loss for the period (492,037) (165,415) (1,540,738) (411,826)
Loss per share – basic and diluted (0.01) (0.00) (0.02) (0.01)
Weighted average number of shares outstanding – basic and diluted 63,599,447 63,599,447 63,599,447 61,678,669
VirtualArmour International Inc.
Interim Consolidated Balance Sheets
As at September 30, 2019 and December 31, 2018
(Unaudited – Expressed in U.S. Dollars)
September 30, December 31,
2019
$
2018
$
 
ASSETS  
Current Assets  
Cash 72,358 114,281
Accounts receivable 1,232,949 2,491,233
Other receivables –  43,750
Prepaid expenses 193,028 390,968
Contract assets 722,683 722,683
Total Current Assets 2,221,018 3,762,915
Property and equipment 457,798 513,984
Intangible assets 49,476 61,347
Contract assets 722,683 1,264,695
Total Assets 3,450,975 5,602,941
LIABILITIES  
Current Liabilities  
Accounts payable and accrued liabilities 2,348,781 3,728,051
Deferred revenue 1,274,718 888,593
Debt 957,820
Current portion of lease obligations 349,292 679,647
Due to related parties 234,813
Total Current Liabilities 5,165,424 5,296,291
Deferred revenue 831,358 1,331,256
Lease obligations 115,894 150,632
Total Liabilities 6,112,676 6,778,179
STOCKHOLDERS’ DEFICIT  
Common stock, no par value, 300,000,000 shares authorized Issued and outstanding: 63,599,447 (2018 – 63,599,447) shares 7,670,975 7,670,975
Additional paid-in capital 2,009,497 1,955,222
Deficit (12,342,173) (10,801,435)
Total Stockholders’ Deficit (2,661,701) (1,175,238)
Total Liabilities and Stockholders’ Deficit 3,450,975 5,602,941

Company Contact
Russ Armbrust
CEO
VirtualArmour International Inc.
Tel (720) 644-0913
Email Contact

virtualarmour.jpg

Source: VirtualArmour International Inc.

[/cs_text][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content][cs_content_seo]Download PDF
CENTENNIAL, Colo., Nov. 29, 2019 (GLOBE NEWSWIRE) — VirtualArmour International Inc. (CSE:VAI) (OTCQB:VTLR), a premier cybersecurity managed services provider, reported results for the third quarter ended September 30, 2019. Financial results are in U.S. dollars, with comparisons made to the same year-ago quarter unless otherwise noted.
Q3 2019 Financial Highlights
Revenue for the quarter came in at $2.4 million.
Managed and professional services revenue increased 9.5% to $1.4 million, due primarily to the expansion and addition of clients signed under contracts over the last year.
Gross profit as a percentage of revenue increased to 29.8% from 26.4% due to a favorable shift in revenue mix to higher margin managed and professional services revenue.
Annual recurring revenue (ARR) totaled $4.7 million at September 30, 2019, up 12% from $4.2 million at September 30, 2018. The company defines ARR as the value of its service contracts normalized to a one-year period.
Q3 2019 Operational Highlights
Won a $330K contract with a Global Service Provider.  This opportunity will build on the almost $2M additional hardware, software and services deals that have been closed since January of 2019 for this customer.
Expanded opportunity with Global Satellite Company with a $245K gateway expansion project. This opportunity will build on the $1.7M additional hardware deals that have been closed in the first half of 2019 for this customer.
Was ranked Top 100 MSSP Globally by MSSP Alert’s Top 200 MSSP List.
Joined AT&T Cybersecurity Partner Program to Deliver 24/7 Cybersecurity Managed Services Across the Globe.
Signed two new channel partner as managed security service resellers that expands the range of service offerings to both companies allowing VirtualArmour to pursue opportunities across the US.
Q3 2019 Financial Summary
Revenue totaled $2.4 million in the third quarter of 2019. The improvement was due to managed and professional services revenue increasing 9.5% to $1.4 million while overall sales declined from $3.9 million vs. the same period a year ago due to lower product sales (hardware and software).
Cost of sales totaled $1.7 million in the third quarter of 2019 as compared to $2.9 million in the year ago quarter). The decrease in cost of sales was due primarily to a decrease in product cost of sales.
Gross profit was $0.7 million or 29.8% of revenue in the third quarter of 2019, as compared to $1.0 million or 26.4% of revenue in the year ago quarter. The increase in gross profit and gross profit as a percentage of revenue was due to a favorable shift in revenue to higher margin managed and professional services revenue.
Total expenses were $1.1 million in the third quarter of 2019, as compared to $1.1 million in the year ago quarter.
Net and comprehensive loss was $492,000 or $(0.01) per share in the third quarter of 2019, as compared to a loss of $165,000 or $(0.00) per share in the year-ago quarter. The loss was primarily due to lower gross profit reflecting the lower product sales and the increase in interest expense.
Cash totaled $72,000 at September 30, 2019, compared to $25,000 at June 30, 2019, with the increase primarily due to the collection of receivables.
Management Commentary
“In 2019, we saw our business shift from a focus on hardware sales to more services contracts. Q3 is the first time that we have seen our managed service and professional service revenue exceed our hardware/software revenue,” said 
Russ Armbrust, CEO of VirtualArmour. “VirtualArmour will benefit from this shift to managed services vs. third party resale, given rapidly growing, high margin, recurring revenues are highly attractive, thereby increasing valuation multiples. Consequently, enterprise value will increase as VirtualArmour continues to deemphasize the hardware/software resale business and continues to focus on expanding its managed service business.
“As part of the new alliance with AT&T Cybersecurity, the AlienVault Unified Security Management™ (USM™) platform will be integrated with VirtualArmour’s proprietary CloudCastr client portal. The integration of our platforms will further simplify and centralize threat management across our new and existing customers’ cloud and on-premise environments. Through this alliance, we also see a tremendous cross-selling opportunity to bring a unique combination of capability and value to our respective clients
“Subsequent to the quarter, we expanded upon an engagement with a global satellite company. This client has been a long-time customer of ours and exemplifies the type of customer we focus on as a cornerstone to our growth strategy. Through our partnership we have worked closely together to open gateways all over the globe enabling this satellite provider to become a pioneering force in networking and communications.
“Due to the continued growing threat of targeted breaches across all industries and business sizes, our outlook for the rest of 2019 and into 2020 remains very positive. We are seeing larger budgets being allocated to cyber protection as companies prepare for 2020 and beyond. We anticipate further revenue growth and margin expansion from our continued ramp up in sales of managed services, along with further penetration of new markets led by our growing sales, marketing, and service organization.”
Cybersecurity Outlook
Annual global cyber losses are expected to hit US$6 trillion by 2021, with cybersecurity spending projected to exceed a total of US$1 trillion for the five years leading up to 2021. This is according to a report from Cybersecurity Ventures that suggests the immediate costs of a cyberattack can be significant, but the damage to a business’s reputation could cost just as much or even more in the long term.
With the ever-increasing cybersecurity risks and regulations being introduced, business leaders are fast realizing that there is more to be protected and serious penalties for not complying. According to the Worldwide Security Spending Guide from International Data Corporation (IDC), worldwide spending on security solutions will achieve a compound annual growth rate (CAGR) of 9.2% over the 2018 to 2022 forecast period and total US$133.8 billion in 2022.
The report says worldwide spending on security-related software, hardware and services is forecast to reach $103.1 billion in 2019, an increase of 9.4% over 2018.
VirtualArmour is well positioned to capitalize on this growth opportunity and continues to deepen its penetration into the healthcare, financial, retail and service provider industries.
About VirtualArmour
VirtualArmour International is a global cybersecurity and managed services provider that delivers customized solutions to help businesses build, monitor, maintain and secure their networks.
The company maintains 24/7 client monitoring and service management with specialist teams located in its U.S. and UK-based security operation centers. Through partnerships with best-in-class technology providers, VirtualArmour delivers leading hardware and software solutions for customers that are both sophisticated and scalable, and backed by industry-leading customer service and experience. The company’s proprietary CloudCastr client portal and prevention platform provides clients with unparalleled access to real-time reporting on threat levels, breach prevention and overall network security. 
VirtualArmour services a wide range of clients, which include Fortune 500 companies and several industry sectors in over 30 countries across five continents. For further information, visit www.virtualarmour.com.
Important Cautions Regarding Forward Looking Statements
This press release may include forward-looking information within the meaning of Canadian securities legislation and U.S. securities laws. This press release includes certain forward-looking statements concerning a service contract VirtualArmour has entered into with a current client, VirtualArmour’s continued relationship with various suppliers, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. The forward-looking information is based on certain key expectations and assumptions made by the management of VirtualArmour. Although VirtualArmour believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information as VirtualArmour cannot provide any assurance that it will prove to be correct.
Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the success of the Company in performing the IT implementation and migration, performance under the contract by all parties, the ability of VirtualArmour to meet timelines, the continued availability of necessary hardware, the absence of any trade war or tariffs affecting VirtualArmour’s ability to perform, competitive risks and the availability of financing. These forward-looking statements are made as of the date of this press release and VirtualArmour disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
VirtualArmour International Inc.
Interim Consolidated Statements of Operations and Comprehensive Loss
For the three and nine months ended September 30, 2019 and 2018
(Unaudited – Expressed in U.S. Dollars)
Three months ended
September 30
Nine months ended
September 30
2019
$
2018
$
2019
$
2018
$
 
 
Revenue
2,429,105
3,932,672
8,679,594
11,203,415
Cost of sales
(1,705,750)
(2,894,256)
(6,207,712)
(8,161,866)
Gross Profit
723,355
1,038,416
2,471,882
3,041,549
Expenses
 
 
General and administrative
452,492
478,108
1,742,458
1,426,305
Research and development
53,034
56,189
154,986
144,569
Sales and marketing
559,770
591,730
1,815,814
1,710,889
Total Expenses
1,065,296
1,126,027
3,713,258
3,281,763
Loss from Operations
(341,941)
(87,611)
(1,241,376)
(240,214)
Other Income (Expenses)
 
 
Change in fair value of warrant derivative liabilities



2,589
Interest expense
(150,096)
(77,804)
(299,362)
(174,201)
Net and Comprehensive Loss for the period
(492,037)
(165,415)
(1,540,738)
(411,826)
Loss per share – basic and diluted
(0.01)
(0.00)
(0.02)
(0.01)
Weighted average number of shares outstanding – basic and diluted
63,599,447
63,599,447
63,599,447
61,678,669
VirtualArmour International Inc.
Interim Consolidated Balance Sheets
As at September 30, 2019 and December 31, 2018
(Unaudited – Expressed in U.S. Dollars)
September 30,
December 31,
2019
$
2018
$
 
ASSETS
 
Current Assets
 
Cash
72,358
114,281
Accounts receivable
1,232,949
2,491,233
Other receivables
– 
43,750
Prepaid expenses
193,028
390,968
Contract assets
722,683
722,683
Total Current Assets
2,221,018
3,762,915
Property and equipment
457,798
513,984
Intangible assets
49,476
61,347
Contract assets
722,683
1,264,695
Total Assets
3,450,975
5,602,941
LIABILITIES
 
Current Liabilities
 
Accounts payable and accrued liabilities
2,348,781
3,728,051
Deferred revenue
1,274,718
888,593
Debt
957,820

Current portion of lease obligations
349,292
679,647
Due to related parties
234,813

Total Current Liabilities
5,165,424
5,296,291
Deferred revenue
831,358
1,331,256
Lease obligations
115,894
150,632
Total Liabilities
6,112,676
6,778,179
STOCKHOLDERS’ DEFICIT
 
Common stock, no par value, 300,000,000 shares authorized Issued and outstanding: 63,599,447 (2018 – 63,599,447) shares
7,670,975
7,670,975
Additional paid-in capital
2,009,497
1,955,222
Deficit
(12,342,173)
(10,801,435)
Total Stockholders’ Deficit
(2,661,701)
(1,175,238)
Total Liabilities and Stockholders’ Deficit
3,450,975
5,602,941
Company Contact
Russ Armbrust
CEO
VirtualArmour International Inc.
Tel (720) 644-0913
Email Contact
Source: VirtualArmour International Inc.virtualarmour.jpg[/cs_content_seo]