Scalable solutions

Long-time lurker, first time poster on the CPT thread.

Its obviously frustrating for holders when a company makes a seemingly good announcement and goes nowhere in price.

But this is what happens when a rodeo-clown like Ted Pretty is running the show. But the stark reality is that Cipherpoint with only Brace168 were never going to be able to generate any level of meaningful income to scale their business model into a company that could manage multiple multi-million $$ contracts. Brace had one major customer, so a central point of failure, and they lost that customer. That deal was worth a similar amount to the Lend Lease agreement. Repairing the business has been a slow steady process but we are now starting to see this perseverance bear fruit.

Unfortunately we've seen issued capital go from somewhere around 200m to now over 1b. This creates a huge amount of "overhang" particularly as much of this stock was issued at higher prices - we are going to see a wall of selling as holders of stock wish to liquidate and move their capital into what they perceive to be as better investment opportunities. Why remain in a company that generates cash when you can move your funds into an exploration company that will probably dig anything out of the ground but triples on a high grade intercept!!? But I digress....

Has Cipherpoint invested enough in infrastructure to successfully scale into multiple multi-million $$ contracts without an explosion in their cost base? For anyone who knows this type of business, you will know that a managed service is "data-heavy", it requires adept security experts who can find ways to filter extraordinarily large quantities of logs and ensure that the customer in real-time is protected. This is just one part of the managed service, obviously, but the point is that if Cipherpoint has invested well in infrastructure and personnel the potential here is enormous.

Having a "plug and play" solution where they can essentially onboard a new client rapidly is what will make or break this company. Unless they plan on absorbing more companies that provide additional synergy, we should have seen the last of the capital raisings. There is very little downside at this point to Cipherpoint.