Castellam Co., Ltd. announces first quarter financial results

Castellum, Inc.'s revenue for Q1 2024 was $11.3 million, up sequentially from $11.1 million in Q4 2023 - https://castellumus.com/ — Castellum, Inc.'s revenue for Q1 2024 was $11.3 million, up sequentially from $11.1 million in Q4 2023 – https://castellumus.com/

VIENNA, Va., May 15, 2024 (Globe Newswire) — Castellum, Inc. (the “Company”), a federal government-focused cybersecurity, electronic warfare, and software services company (NYSE-American: CTM) announces the following: Highlights of financial results for the first quarter ended March 31, 2024.

Castellam Co., Ltd. Revenue for the first quarter of 2024 was $11.3 million, up sequentially from $11.1 million in the fourth quarter of 2023. Gross profit was $4.5 million compared to $4.6 million in the fourth quarter of 2023. Operating (loss) (including non-cash) and non-recurring expenses were ($2.7 million) compared to ($1.5 million) in the fourth quarter of 2023.

Management uses a non-GAAP measure, recurring cash operating income (loss) (“RCOP”), as an important measure of our operating results. This non-GAAP measure was approximately $100,000 in the first quarter and excludes non-cash expenses such as $1.7 million in stock option and stock acquisition rights expense and $0.6 million in depreciation and amortization. That compares to $400,000 in the fourth quarter. $500,000 in the first quarter of 2023 and $500,000 in the first quarter of 2023. Please see the table below for details.

Castellum, Inc.'s complete financial results for the three months ended March 31, 2024 are expected to be released later today. Form 10-Q in www.sec.gov.

“We made significant financial progress in the first quarter of 2024, particularly in strengthening our balance sheet,” he said. Mark Fuller, President and CEO of Castellum “With the completion of two significant financing transactions, we have significantly reduced short-term debt while investing in business development and slightly increasing revenues. We have a large pipeline of opportunities under contract. We look forward to converting our acquisitions, improving profitability and RCOP, and continuing to improve our balance sheet through the remainder of 2024 and into 2025.”

About Castellum Co., Ltd.

castelyoumeter, Co., Ltd. is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government. http://castellumus.com.

Forward-looking statements:

This 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. These forward-looking statements express our expectations or beliefs regarding future events and generally include words such as “estimate,” “predict,” “believe,” “anticipate,” or “forecast.” Can be identified by the use of descriptions that include words such as '', “anticipating'', etc. “intends,” “stands to,” “aims,” ”seeks,” “stands to,” “will,” “likely,” “would” or similar words. words and phrases. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for revenue growth, RCOP growth, new customer opportunities, cost structure improvements and profitability. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are beyond the Company's control and which may cause actual results to be expressed or implied in the forward-looking statements. The results may differ (possibly significantly) from the actual results. our ability to compete with new and existing competitors; our ability to effectively integrate and grow acquired companies; our ability to identify additional acquisition targets and complete additional acquisitions; the impact on our revenues of delays in approving federal budgets from the U.S. Congress; and the Company's ability to maintain the listing of his common stock on NYSE American LLC. For a detailed description of these and other risk factors, please see our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”). Please refer to. View at www.sec.gov. All forward-looking statements are based on current expectations and assumptions about future events or our future performance and are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements. These statements are predictive only and speak only as of the date hereof. The Company expressly disclaims any intention or obligation to update any forward-looking statements contained in this release or in any SEC filings, except as otherwise specified by the Company.

Non-GAAP Financial Measures and Key Performance Indicators

This press release includes non-GAAP ordinary cash operating income (loss), which is a non-GAAP financial measure used by management to measure the Company's results of operations. A reconciliation of this measure to the most directly comparable GAAP financial measure is included here. To the extent necessary, a statement disclosing the definition, utility, and purpose of this measure is also included here.

meaning:
Non-GAAP ordinary cash operating income (loss) is the Company's GAAP operating loss, excluding non-cash expenses and non-recurring gains, such as stock-based compensation, depreciation, amortization, and changes in the amount of contingent gains. represents. Fee.

Utility and purpose:
The Company discloses non-GAAP ordinary cash operating income (loss). This is because this non-GAAP measure is used by management to evaluate our business, measure our operating results and make strategic decisions. The Company believes that non-GAAP ordinary cash operating income (loss) helps investors and others understand and evaluate the Company's results of operations in the same manner as management. However, non-GAAP ordinary cash operating income (loss) is not a financial measure calculated in accordance with GAAP and should not be considered a substitute for GAAP operating loss or any other measure of operating performance calculated in accordance with GAAP. There may be significant limitations to using this non-GAAP measure to analyze our business. This is because the calculations are based on management's subjective decisions regarding the nature and classification of events and circumstances that investors may consider significant. Additionally, other companies in our industry may report a metric entitled non-GAAP ordinary cash operating income (loss), which is calculated differently than how we calculate this non-GAAP financial measure. potential, reducing its overall usefulness as a comparative metric. measurement. Because of these inherent limitations, non-GAAP ordinary cash operating income (loss) must be considered concurrently with other financial performance measures, such as net loss and other financial results presented in accordance with GAAP.

Castellam Co., Ltd. Reconciliation of unaudited Non-GAAP ordinary cash operating income and operating loss 3 months ending March 31, 2024
revenue	$	11,335,053
gross profit		4,515,421
operating loss		(2,671,222	)

Non-cash charges:
Depreciation and amortization		597,986
stock compensation		1,660,451
non-recurring charges		278,424
Total non-cash charges		2,536,861

Non-GAAP ordinary cash operating income	$	(134,361	)