AR9 - archTIS Limited

[System]

archTIS is a Canberra-based firm that specialises in the design and development of products, solutions and services for secure information sharing and collaboration. The company's products and solutions have the ability to apply and enforce dynamic, policy-driven access controls at the user and information level.

Established in 2006, archTIS has over 10 years experience delivering secure information and identity management services and solutions within the highest security levels of the Australian Government.

It is anticipated that AR9 will list on the ASX during August 2018.

https://www.archtis.com

 

[Dona Ferentes]

at its IPO in Sep 2018, archTIS was:

• headquartered in Canberra and employs 24 staff – both full time and contractors. Employees hold high levels of security clearance and product accreditation (up to Top Secret with Australian and US Departments of Defence).
• Its proprietary technology, currently in use by the Australian Department of Defence, enables trusted information sharing between governments and organisations, in a secure, protected environment, at the highest levels of security
• Its technology and staff meet the strictest compliance, security standards and protocols
• archTIS has transitioned from a consulting services business to a software platform company, with SaaS product-based revenues expected to gain traction following Kojensi Gov launch.

Since then, by May 2019, Kojensi Gov (its key product so far coming out of the DoD work) achieved endorsed cloud product status by the Federal Digital Transformation Agency
• The Cloud Services Panel is the largest cloud services procurement panel for the Australian government, accessible by Commonwealth, State and Territory governments, as well as universities and local councils.
• The CSP enables these institutions and agencies to sole source Kojensi Gov directly from the panel, shortening and simplifying procurement processes
• Inclusion on the CSP is an endorsement of Kojensi Gov by the Digital Transformation Agency as being “value for money” for government agencies and institutions

Aug 2019: Attorney General's Dept becomes first government client, after running a Beta program (testing) for a few months
Oct 2019: Signs agreement with ACIC for Kojensi Gov use by the National Criminal Intelligence System (NCIS) Program Team, to facilitate secure collaboration across all state, territory and Commonwealth law enforcement, law compliance and regulatory agencies involved in developing the NCIS.

Managing Director Daniel Lai said at IPO that "there was a need for federal and state government agencies to share and collaborate on information securely, as well as those industries that service government and were part of the supply chain."
“The difference between us and other products is that we solved a problem in the top secret space in the Department of Defence and what we did is take that security model and apply it to this new government platform, Kojensigov, and apply it to a lower level. So we've come down from top secret, not having to build it up, that is a huge differentiation." The cloud-based Kojensi suite of software solutions treated security and information sharing as one issue, whereas traditionally, these two challenges were treated as mutually exclusive.

- still finding it hard to get any home runs. A little bit here, a little bit there.

 

[Dona Ferentes]

From the Quarterly

$2.5m of cash and receivables at the end of the quarter; broadly equal to two quarters of estimated cash outflows
$0.8m of cash is held along with receivables of $0.3m and $1.5m of R&D Refundable Tax Offset. The R&D refund was received early January 2020

glacial score rate of engagement. Cap raising ....wait for news?

 

[Dona Ferentes]

• Dr Miles Jakeman AM, co-founder and former Chief Executive Officer of Australian software and technology success story, Citadel Group , joins the archTIS Board
• During his time as CEO of Citadel, Miles grew the company from a start-up to 250 employees with a market capitalisation of $400 million
• Miles also brings to the board strong industry knowledge and existing networks of key contacts in Defence, intelligence, and government

 

[Dona Ferentes]

The Commonwealth Ombudsman today signed an agreement to use archTIS' platform, Kojensi, for secure collaboration between government agencies.

In the current environment of worker self-isolation this will provide the agency and its partners a way to continue working collaboratively from anywhere, anytime.

"I have no doubt that other agencies that do not want the expense of implementing a PROTECTED environment will also see our Kojensi Platform as an attractive alternative for corroboration on classified and sensitive material" said archTIS' CEO, Daniel Lai

 

[Dona Ferentes]

Trading Halt and capital raise.

a complex Investor Presentation highlights the opportunity to get its Kojensi 'content and collaboration cloud service' offering out there. It is a
• Multi-level security platform allowing government and industry to share and collaborate on highly classified information
• Patented security model, uses Attributed Based Access Control (ABAC) to define the rules of who access the information, and under what conditions
• Information is secured not only at the perimeter to the system but also within the system

Realistically at Launch phase now, and want to transform to Scale and Optimise, targeting
• Clients that provide a network effect
• Clients that have strong dependence on commercial supply chain
• Clients that work in high compliance environments
• Clients where a breach of trust or security risks reputational harm

Have been focusing on Aust/NZ govt departments, looking to deepen impact with Defence and Intel, plus contractors, consultants and law firms dealing with govt, both here and Internationally.

Big ask. So far, its been slow.

 

[Dona Ferentes]

• $1.65 million raised via a Placement to new and existing shareholders at A$0.055 per share
• archTIS will conduct a Share Purchase Plan to existing shareholders at the same price of A$0.055 to raise approximately another A$500,000
• All Directors have participated in the Placement
• Funds will be used to pursue the execution of archTIS’ sales pipeline across both Enterprise and Government

 

[Dona Ferentes]

AR9 bouncing around the 5.5c level, may be hard for punters to stump up the money in SPP?

Recently announced : archTIS selected to solve Curtin University’s space tracking data sharing challenges

archTIS has been selected to build and implement differential access controls for the Curtin University SSA DataLake. archTIS will enable different stakeholders and organisations to access information, collaborate, and query information at different levels of sensitivity. This is a paid prototype generating $62,000 in initial revenue. The prototype will integrate Kojensi Enterprise with Axiomatics’ ABAC policy engine to manage differential access to both content and data

- one would hope this is 'leverage'?

* SSA = Space Situational Awareness

 

[Dona Ferentes]

SPP has a few more days, and the trading of shares has seen SP rise above the 5.5c offer mark. Closed today at 6.0c

There's a promo clip interviewing CEO at


He's not the most polished of performers but the message sounds +ve. Anyway there's cash to pursue next stage, hope some growth through network effect comes off.

 

[Dona Ferentes]

archTIS successfully raised A$590,750 from its Share Purchase Plan (was aiming for $500K, so this is encouraging), following on from the A$1,650,000 placement completed in May.

Was priced at 5.5c which, until today's sell-off, was in the money (just).

 

[Dona Ferentes]

Up some 38% on Friday after going nowhere during the capital raise. Picking up new clients that deal with Govt may be a way in.

And this:

Australian security agency chiefs and government officials have been actively monitoring the spike in domestic and global cyber hacking during the COVID-19 pandemic, and were working closely with Five Eyes and NATO countries reporting similar online threats.

Companies and state governments are being advised by the Australian Signals Directorate and Australian Cyber Security Centre on defence strategies to thwart the industrial-scale cyber hacking campaign.

Mr Morrison, who spoke about the cyber threats with British Prime Minister Boris Johnson on Thursday night, said security agencies had not identified any “large-scale personal data breaches” during investigations in recent months.

- hold, took up new shares in SPP

 

[Dona Ferentes]

and to think, AR9 was to be my June comp tip
(but doubled my money on the just closed 5.5c SPP)

 

[finicky]

One for my crash list. Big customer and lots of 'network effect'

 

[finicky]

I take a Helen Keller approach to SaaS and Cloud stocks but that got me into IRI and DTL at lower prices than today.
This has the right vibes. Gaining brand and network value through prestige customers like Northrop Grumman and Curtin Uni, space and defence security against totalitarian CCP. Going for <1.5 book value, just raised cash, biggest expenses done.
It has the right roots - they were invited to commercialise it by Aust govt after doing work for them on some Aus/US high security exchange thingo.
I got 50,000 today @ 9.2c and hope the 5.5c cap raising drags it down to where I can add more. When the global deflationary bust happens this is one candidate for me to load up. I don't think their business will be all that sensitive to economic conditions - indispensible once embedded I'd guess.

 

[Dona Ferentes]

This has the right vibes. Gaining brand and network value through prestige customers like Northrop Grumman and Curtin Uni, space and defence security against totalitarian CCP. Going for <1.5 book value, just raised cash, biggest expenses done.
It has the right roots - they were invited to commercialise it by Aust govt after doing work for them on some Aus/US high security exchange thingo.
I got 50,000 today @ 9.2c.

just as an aside, AR9 one of only two companies with Top Secret clearance for both USA and Aust Defence depts (I was told) (around the time of its float)

Consensus pricing has 9-10c the new normal; excitement of the Ann, a bit of profit taking, new buyers lining up. Lets hope some more customers come on board

 

[Dona Ferentes]

poking around ....

Cyber security is the fastest-growing course at ECU*, which has a 20-year pedigree as one of the world's leading universities in the field. As well as being headquarters for the CSCRC**, whose backers include the Australian Federal Police and secretive Australian Signals Directorate, the university is home to Woodside Petroleum-backed cyber security firm Sapien. The Sapien board includes one-time US director of national intelligence James Clapper and is headed by former defence minister Stephen Smith

* Edith Cowan Uni
** Cyber Security Co-operative Research Centre

Sapien is a Edith Cowan University-backed private cyber security company. https://www.sapiencyber.com.au/
Of course, Stephen Smith is Chairman of the Board of Directors for archTIS. He has been a Professor of Public International Law at the University of Western Australia since 2014.
Another WA connection: director Wayne Zekulich is Head of Perth for Deutsche Bank.
And the former boss of Citadel Group, Miles Jakeman, should be able to help grow AR9

- global cyber security industry is estimated to be worth $US120 billion ($174 billion) annually and forecast to hit $US340 billion by 2024.

 

[Garpal Gumnut]

I like this mob. everyone except a former High Court judge who shall remain nameless is involved with them.

They protect government and companies from viruses from state actors. Cybersecurity.

gg

 

[finicky]

 

[Dona Ferentes]

Following Mr Morrison's revelation 10 days ago that a state-sponsored actor was behind a barrage of hacks targeting governments, businesses, critical infrastructure, health research and other organisations, the PM will go on a cyber war footing on Tuesday. The Cyber Enhanced Situational Awareness and Response, or CESAR, would identify more cyber threats, disrupt more foreign cyber criminals and build more partnerships between industry and government.

Headlining the package is $470 million to create more than 500 new jobs within the Australian Signals Directorate, the highly regarded agency responsible for thwarting cyber attacks. The ASD has a workforce of 1800 now.

ASD will also get a further $278 million to tackle offshore cybercrime; expand its data science and intelligence capabilities to stay ahead of emerging cyber threats; block and disrupt cyber attacks including sharing information with businesses in near real time; and developing a national situational awareness system to respond to threats on a national scale and assist vulnerable industries.

“The federal government’s top priority is protecting our nation’s economy, national security and sovereignty. Malicious cyber activity undermines that,” Mr Morrison said. “My government’s record investment in our nation’s cyber security will help ensure we have the tools and capabilities we need to fight back and keep Australians safe."

https://www.cyber.gov.au/

 

[Lead3r]

AR9 currently at 16c today


WOW