MeritValue

SideChannel, Inc.

SDCHdata completeness 75%17 fiscal years on file
The thesis, from the filings

SideChannel, Inc. earns about 17% on invested capital, but has diluted owners by 282% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$2.8M1$4.79M2$6.57M3$7.4M4$7.35M4
Net income$513,0005−$11.8M6−$7.01M7−$904,0008−$892,0008
Operating cash flow$157,0009−$396,00010−$1.95M11$307,00012−$130,00012
Capital expenditure——$32,00013$15,00014—
Free cash flow (derived)——−$1.98M11$292,00012—
Total debt—————
Cash & equivalents$348,00015$3.03M16$42,00017$6,00018$1.07M19
Diluted shares59.9M82.0M175.3M222.1M229.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.09
your share of equity
Profit it earned you last year
−$0.04
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $0.09 of net worth that earned you −$0.04 last year.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY21 513%FY22 -144%FY23 -195%FY24 -26%FY25 -64%

It earned an average 17% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+282% shares · 5y

Share count is up 282% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-09-30 · accession 0001493152-22-036042 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-09-30 · accession 0001493152-23-046278 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-09-30 · accession 0001493152-24-049837 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-09-30 · accession 0001493152-25-028364 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-09-30 · accession 0001493152-22-036042 (NetIncomeLoss)
  6. 10-K · period ending 2022-09-30 · accession 0001493152-23-046278 (NetIncomeLoss)
  7. 10-K · period ending 2023-09-30 · accession 0001493152-24-049837 (NetIncomeLoss)
  8. 10-K · period ending 2024-09-30 · accession 0001493152-25-028364 (NetIncomeLoss)
  9. 10-K · period ending 2021-09-30 · accession 0001493152-22-036042 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-09-30 · accession 0001493152-23-046278 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-09-30 · accession 0001493152-24-049837 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-09-30 · accession 0001493152-25-028364 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2023-09-30 · accession 0001493152-24-049837 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2024-09-30 · accession 0001493152-25-028364 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-09-30 · accession 0001493152-22-036042 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-09-30 · accession 0001493152-23-046278 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-09-30 · accession 0001493152-24-049837 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-09-30 · accession 0001493152-25-028364 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2025-09-30 · accession 0001493152-25-028364 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)