As an official Department of Defense (DoD) supplier, Cyberlux Corporation (OTC: CYBL) has always been a particular favorite among penny stock investors. In the past, the company produced a line of tactical lighting products for various branches of the US military and government. However, CYBL is undergoing a transformation through acquisitions and diversification in an effort to become a leading digital technology growth company. CYBL stock has increased more than 33% this week after making headlines for its $19.5 million share buyback program.
CYBL Stock News
The last year was filled with milestones for CYBL, in October the company announced its major accomplishment in an update for shareholders, sharing that the company exceeded the month’s revenue expectations by $0.9 million and its year-to-date revenue by $1 million. CYBL’s CEO – Mark Schmidt – marked the occasion by saying it “was an exceptional month by all measures”, before going on to mention the company’s new funding from RB Capital Partners, Inc. for about $4.5 million. CYBL intends to use this funding to accelerate its overall growth plans.
In November, CYBL reported a 51% increase in its projected revenue for the month as it obtained $1,509,267. The company also made tremendous progress in its advanced Lighting Solutions, FlightEye unmanned aircraft systems, and the Infrastructure Technology Solutions business units. Maintaining November’s momentum, the company met with prospective investment banking partners in New York and laid the foundation for uplisting strategies which are expected to be finalized as early as the first quarter of 2022.
Revenue Guidance
In light of its achievements in October and November, the company increased its revenues guidance for 2021 by 26% – pushing it from $5.2 million to $6.6 million. CYBL also increased its projections for 2022 from $30.5 million to $44.7 million – a 47% increase. With that in mind, the company expects to have significant net income growth from its operations in 2022.
HAVAS Group S.A.S.
Building value through acquisitions are a key part of the company’s growth strategies. With that in mind, CYBL brought a renewable energy financing company located in Colombia – HAVAS Group S.A.S. – under its wing, allowing it to build out the Cyberlux renewable infrastructure capability platform. The company has plans to expand its network across South America and believes that this acquisition will help it implement its renewable infrastructure technology which includes solar, wind, and hydroelectric infrastructure projects.
A specific benefit of the acquisition is the rights to three projects covering over 100 hectares of renewable energy property. With three projects already in progress, CYBL will implement its new technology to generate over 100MW of electric power and $6 million in revenue over the coming year.
FBD Group SHPK
Additionally, CYBL completed its acquisition of FBD Group SHPK to create a new business unit – Cyberlux Infrastructure Technology Solutions (Cyberlux ITS) – to facilitate the use of infrastructure technologies across the globe. FBD Group SHPK is a global telecommunications, infrastructure, software and service provider. But it is breaking into the developing space for 5G technology. This acquisition is important for CYBL as it develops its unmanned aircraft systems (UAS) because 5G technology will be an important component of aircraft guidance systems.
This acquisition could open the door for CYBL to develop its supplier relationship with military departments thanks to FBD Group SHPK‘s ongoing work on an infrastructure project at one of Europe’s strategic NATO military bases. With its background in telecommunications infrastructure and software applications, this acquisition could be an important stepping stone for CYBL as it develops its global presence.
Asset Acquisition
Recently, the company finalized another acquisition to maximize profits and optimize its resources. CYBL acquired 30 solar generation hectares in Colombia and is currently evaluating plans for 2 energy reseller partnerships and 3 cryptocurrency mining alternatives. The company promised to update its shareholders with more details in the near future regarding its upcoming partnerships and CYBL promised that its putting all its efforts in choosing a partner with the optimal business model that will aid in long-term growth.
ARG Group Partnership
To speed up contracting for CYBL’s unmanned aircraft systems as well as its advanced lighting systems and tactical solar power generation solutions, the company has partnered with ARG Group. Well-known for distributing advanced technology equipment to the DoD and Federal Law Enforcement Agencies, ARG also has a huge customer base in North and South America, as well as Europe.
Through this partnership, CYBL’s products will be featured in ARG’s First Look program while ARG takes charge of marketing these products to various government decision-makers. As a result of this partnership, CYBL anticipates bringing in higher revenues from these units.
Cyberlux Divisions
Digital Platform Solutions
Continuing with its growth-by-acquisition model, CYBL brought in the software solutions company – Digital Automation Solution – under its umbrella to transition its Infrastructure Software Solutions unit into a Digital Platform Solutions unit instead. This unit will be tasked with increasing the offerings of CYBL’s PaaS and SaaS products to meet the demand of governments and militaries. Over the past three years, DAS has had $20 million in investments as it became a solutions developer for Comcast and Cox. This acquisition will not only bring in DAS’ pre-existing customers but will form a key part of CYBL’s software investment strategy.
Forming the basis for this unit, CYBL also acquired Kreatx SHPK – a software solutions developer – for its specialization in SaaS solutions and end-user applications. This expertise will benefit CYBL as it builds the end-to-end SaaS offerings, required by global governments and commercial customers. CYBL supplemented this unit with its acquisition of Digital Automation Systems – which like its acquisition of Kreatx – has provided CYBL with its existing customers, revenues, and technical capabilities.
All together, DAS will focus on Digital Services Management, Telecommunications, Business Digital Transformation Solutions, Data Center and Data Analytics Application Solutions, as well as supporting the UAS unit in terms of software.
Thanks to DAS’ new digital platform technology, CYBL will assist enterprises in automating their processes and improving their digital experiences. At this time, CYBL plans on making ongoing strategic investments in digital technology platform development and working capital investments for all of its units – enabling CYBL to become a leading digital technology growth company.
Given the assets that DAS brings to CYBL and its customers, the company is anticipating $17 million in revenues with the potential to grow to over $55 million by 2024. In exchange, CYBL provided both investment capital – to be paid out over a two-year investment cycle – and a three year earn-out of shares of common stock with an expected value between $0.09 and $0.29.
Since then, CYBL has signed a contract with the Albanian government to improve its Judicial Court’s public records and case management systems through its subsidiary – Kreatx Group – for $625 thousand. However, this contract will scale over the next two years to $10 to $30 million as it expands across Europe.
This contract is a sign of what CYBL’s DPS unit could be capable of as it works to access the $17 billion legal technology market and a sign that, as Schmidt shared, “Cyberlux is now a high-performance software provider with our portfolio of innovative digital platform assets. This portfolio will continue to scale quickly with innovative offerings, propelling us to become a digital platform global leader.”
Currently, CYBL expects this unit to exceed its revenue expectations of $11 million for this year – potentially even doubling it.
Unmanned Aircraft Systems
Its FlightEye UAS Solutions department manufactures advanced sensors while providing data capture and intelligence services. CYBL is already making moves to solidify its place in this expanding sphere after announcing that Mr. Paul “NURK” Nurkkala – a Worldwide Champion of the Drone Racing League and Commentator – has joined the Company as its FlightEye Chief Test Pilot and Technical Advisory Board Member.
In 2022, CYBL is expected to build on its FlightGDN platform – a global UAS capabilities framework capable of supporting compact, next-generation military-grade UAS products and solutions. After introducing the platform in 2021, Cyberlux believes it “will provide a seamless, scalable UAS solution for both military and commercial UAS command and control operations”.
To set up this unit, CYBL acquired CTMC Drone Solutions, LLC in August of 2021 and announced that Larson Isely would act as Cyberlux Executive VP and General Manager for the FlightEye Drone Solution unit. Isely was selected for the position thanks to his experience as a Guidance Systems Expert and consultant for major aerospace and defense firms. He was also in several executive leadership positions at IBM for decades.
Meanwhile, CYBL has also acquired Catalyst Machineworks – a leader in the drone market with products catering to the military-grade market. This acquisition will provide CYBL with a UAS hardware technology platform and CMW’s existing customers. Through this, CYBL expects its Unmanned Aircraft Solutions business unit to achieve revenues of $22 million annually with the potential to grow to over $67 million by 2024. As the film and oil industries continue to utilize drones in addition to government agencies, CYBL is now well-positioned to meet this growing demand through its business unit.
Currently, CYBL is capitalizing on Catalyst Machineworks’ reputation as a US drone manufacturer with significant engineering and IP to offer DoD and law enforcement solutions. CYBL also anticipates future licensing and revenue streams across the DoD Industry thanks to this acquisition. However, the company has found a way to assist Ukrainian forces and is working with its channel partners to execute its plan. The company has also noted that its South American and European defense opportunities are progressing for Q2. As is, CYBL expects to generate $9.75 million this year from the unit.
Advanced Lighting Solutions
However, CYBL started out as a provider of advanced lighting solutions and while it has expanded its range of services since then, its Advanced Lighting Solutions division still meets the needs of militaries and governmental agencies. At the start CYBL was known for its hardened multispectral illuminators and continues to market its Advanced Infrared and White LED Lighting
System Platform to U.S. agencies.
As an official Department of Defense (DoD) supplier it sells directly to or through distribution partners which has been an asset for the company. In this way, CYBL meets its ongoing contract requirements for the U.S. Air Force, Army National Guard, U.S. Special Operations Command, U.S. Army, National Guard, and US Marine Corps. It continues to pursue ongoing strategic IP development with legacy and future strategic partner technologies.
Currently the company expects ALS to generate $11 million this year.
Infrastructure Technology Solutions
CYBL’s final division is Infrastructure Technology Solutions which was formed with the acquisition of FBD Group – a telecommunications infrastructure and equipment supplier as well as a supplier of fiber optic broadband network infrastructure in its region. HAVAS Group was also acquired to form a key component of accelerating progress across CYBL’s solar, wind and hydroelectric infrastructure projects.
Overall, this unit is responsible for implementing CYBL’s infrastructure technology across global renewable energy and infrastructure projects primarily located in North and South America as well as Europe. CYBL is targeting new acquisitions that will facilitate the growth of its renewable energy and infrastructure projects in its focus regions. With this in mind the company has set the goal of expanding into Brazil, Panama, or Peru in the first half of 2022. CYBL is also planning to make acquisitions in the solar energy sector and the DOD market in the first half of 2022.
According to the company’s update, its renewable energy site visit and engineering plan in Colombia will occur in June as government officials sign off on the project. Meanwhile, the headquarters in Bogotá is currently finalizing the Bitcoin mining partnership which could be complete in the coming months. As is, the South America renewable projects testbed is currently in operation as Colombian agencies continue to monitor the project. CYBL is planning for additional rollouts for the project in Q3 or Q4.
However its European Renewable and Telecom team is currently engaged in 3 new projects across Europe and has also identified a potential 100MW project in Europe which is now under review for Q3 or Q4. Altogether, CYBL expects this unit to bring in $13 million in 2022 as a result of its operations.
In 2021, CYBL worked on a bid for a project included in the infrastructure spending bill, which would involve them as a subcontractor in a rural broadband infrastructure project across six states. Thanks to the expertise brought in from its FBD Group acquisition, CYBL was positioned to take part in the project while also working on proposals for ten municipal government opportunities. Whether these projects come to fruition remains to be seen, but the ITS unit’s work across multiple continents is an impressive feat already.
Share Cancellation
Following through on its plans for a 700 million share cancellation, CYBL has successfully cancelled all 700 million shares – reducing its OS by 12% to 5.1 billion shares. In addition, CYBL reduced its AS by 1.75 billion shares – giving the company an AS of 7 billion and an OS of 5.1 billion shares.
With this in mind, CYBL is bullish this share reduction will protect its shareholders from dilution while allowing the company to pursue its growth strategy to reach $224 million in revenues by 2025.
*Updated June 9th
Share Buyback
Aiming to drive up the value of CYBL stock, the company’s BOD approved a share buyback program of up to $19.5 million using the company’s available cash. According to this program, CYBL will buy shares on the open market and in private transactions according to market conditions. Because the share buyback is subject to the company’s digression, CYBL could increase the number of shares or discontinue/suspend the program at any time. With more details due to be released in a PR, CYBL stock is one to watch this month.
CYBL Stock Financials
On that note, CYBL reported an impressive annual report which showed major financial growth in a number of key metrics. In terms of revenues, CYBL reported $8 million – a 244% increase from the previous quarter. At the same time, CYBL grew its assets to $9.3 million from $78 thousand in the previous year. Meanwhile, liabilities unrelated to financing activities decreased 22% YOY. This growth resulted in $1.9 million in net income – a major win for CYBL stock and its shareholders.
For its 2022 financials, CYBL expects to record $44.7 million in revenues while generating a positive net income from operations. As the company continues to grow its business with acquisitions, CYBL stock could be a profitable long-term investment especially as the company pursues a 700 million share reduction.
Q1 Report
While CYBL projected its Q1 revenues to be $4.5 million, the company exceeded its projections by 39% – realizing revenues of $6.25 million for the quarter. In April alone, CYBL generated $2.46 million in revenue despite forecasting only $2 million. In light of this, CYBL could be well-positioned to achieve its projected revenues of $44.7 million in 2022.
With the company beating its projections by 23%, CYBL continued its impressive run of nine straight months of revenue growth. At the same time, these revenues marked the first time in CYBL’s history where monthly revenues exceeded $2 million for three consecutive months. In total, CYBL realized $8.7 million in revenues on a year-to-date basis. In light of this consistent financial growth, CYBL stock could prove to be a smart long-term investment.
CYBL Stock Forecast 2022
Commenting on the success of Operation Alpha, Mark Schmidt said that CYBL is “only six months into the Company transformation with the launch of Operation Alpha, and our revenue growth is almost 50% higher than we initially imagined for 2022.” He went on to add that the company is expecting that 2022 will “be a fully transformative year,” as CYBL Is already witnessing “growth across all business units”.
In light of these accomplishments, CYBL raised its 2022 revenue guidance from $30.5 million to $44.7 million, a 47% increase from its the previous estimate.
CYBL’s vision has been made possible thanks to the $4.5 million in funding the company secured from RB Capital Partners, Inc. in 2021 to accelerate growth across its different divisions. CYBL structured the funding as a premium-to-market fixed-price convertible note that can only convert to common stock at $0.25 per share. This debt is obligatorily convertible on or before its maturity date in October 2023.
RB Capital has also offered an additional $10.5 million in further funding at the same terms as long as CYBL stock continues to reflect the company’s growth. However, CYBL took the opportunity to meet with potential investment banking partners in New York that year. CYBL has since met with these investment banks again as it evaluates the best banking partner as it pursues its plans for uplisting.
The company’s commitment to shareholders has led CYBL to reduce its outstanding shares and achieve incredible revenue growth since initiating its plan to re-engineer the company. CYBL has since pursued its plans for achieving rapid revenue expansion and industry diversification by leveraging its market cap to pursue acquisitions and investment. As the company continues to develop its unique industry relationships and take advantage of new opportunities thanks to its diversification, the CYBL stock forecast 2022 looks brighter than ever.
Media Sentiment
To find out more about CYBL’s share buyback check out @ChaseMacTrades video covering it.
Possibly CYBL’s most supportive shareholder, @og_tigress is a long-term believer in the company’s growth potential
@LadeBackk predicts that CYBL will hit $.02
Technical Analysis
On the 15 minute time frame, CYBL stock is trading at $.0168 and has supports near .016, .0145, .0136, and .0119. The run up began on June 8th following CYBL’s share buyback announcement and will likely continue this week. CYBL stock recently had a golden cross of its MAs and had a high trading volume of 94.4 million. Since the stock had lost some ground in recent weeks, CYBL could have an explosive move up past its resistance at .0179 with its next clear resistance near .0186.
Accumulation is trending upwards and the MACD is bullish to the upside. Meanwhile, the RSI is at 81 indicating CYBL stock is overbought. Although CYBL stock is running, now is not the time to chase. Investors could find an entry point on a pullback to a support level with confirmation that the trend will continue.
CYBL stock was also alerted at $.0126 on June 6th in our free telegram alerts room – 33%+ since the alert.
CYBL Stock Forecast
CYBL is a communicative company that regularly updates its shareholders on its progress – giving it a loyal following among FinTwit investors. Considering that CYBL has continued to pinpoint its goals and work towards them, this company has a lot of potential – especially if it continues to foster its relationships with the military and governmental organizations.
With this in mind, CYBL is focused on delivering value to its shareholders after reducing its AS and OS. This $19.5 million share buyback is another example of the company’s commitment to generating shareholder value – increasing CYBL stock’s appeal. With the company planning to share more details regarding its share buyback, CYBL stock is one to add to your watchlist this month.
If you have questions about CYBL stock and where it could be heading next feel free to reach out to us in our free alerts room!
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