Spectrum Global Solutions Shows Positive Operating Income

Significant Second Quarter Gains Lay Foundation for Long-term Success

BOCA RATON, Fla, Aug. 27, 2021 (Globalrelease Wire) — Spectrum Global Solutions Inc. (the “Company” or “Spectrum”) (OTCQB: SGSI), today reported second quarter earnings. Auditors advised the Company they deemed High Wire Networks, Inc. the acquiring entity in the merger previously announced.   As a result, the financial statements reflect High Wire’s full Q2 and SGSI’s last two weeks of the quarter.

Highlights from Q2 2021:

  • Shareholder net equity, including Series D preferred stock, increased to $11.174M, versus $1M for the same period ending June 30, 2020
  • $10.8M pro forma revenue 
  • $1.161M pro forma net income
  • High Wire’s industry leading Overwatch Managed Cybersecurity marketplace showed tremendous growth in every key metric

Outlook:

  • The sales and marketing organization has been consolidated and expanded, and growth is expected to continue
  • Operations have been streamlined across operating units, lowering overall costs and increasing operational efficiencies
  • Revenue and EBITDA trends expected to continue in positive direction, building off Q2
  • Cost trends in historical SGSI businesses continue to trend downward
  • Company liquidity is expected to continue through remainder of the year and result in cash flow improvements
  • Previously announced Secure Voice Corp. transaction expected to close before end of Q3

“We are very excited with the improvements made during the Second Quarter.  Our team continues to do the little things that build on themselves to make big things happen,” said Mark Porter, High Wire President and CEO. “We are laser-focused on building a foundation for long term, sequential success through lasting partners relationships, profitable recurring revenue in high growth sectors, and by putting the absolute best players on the field at all times.  As we continue to get better, we will be able to accelerate our growth and ‘go faster’.”

    Q-2 2021        
    As Reported     Spectrum for period prior to reverse acquisitions     With effect of Spectrum for entire quarter  
Revenue   $ 7,794,068     $ 3,029,879     $ 10,823,947  
                         
Net income (loss)   $ (1,591,590 )   $ 2,752,779     $ 1,161,189  
                         
                         
Balance Sheet Data   30-Jun-21     31-Dec-20          
Cash and restricted cash (a)   $ 4,195,227     $ 436,448          
Total current assets     11,787,222       3,185,127          
Total assets     38,295,925       8,978,444          
Total liabilities     27,120,986       5,195,894          
Total equity and mezzanine equity   $ 11,174,939     $ 3,782,550          

(a) On June 30, 2021, the Company had $2 million of restricted cash per the terms of a CARES Act Loan.  On July 26, 2021, the cash was no longer restricted, and was released into the Company’s operating account.

About Spectrum Global Solutions
Spectrum Global Solutions Inc. operates through its subsidiaries ADEX Corp., Tropical Communications Inc. and AW Solutions Puerto Rico LLC. The Company is a leading provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico and Caribbean. For more information about the Company and its technologies visit the Company’s public filings at www.SEC.gov or the Company’s website at https://SpectrumGlobalSolutions.com

About High Wire Networks

For 20 years, High Wire Networks has been a trusted partner to VARs, MSPs, distributors, integrators, manufacturers, and telecom providers by enabling them to minimize overhead while extending delivery capabilities around the world. Our flexible workforce delivers vendor-agnostic technical field, professional and security services in more than 180 countries. Our services include design, installation, configuration, and support for unified communications, wired and wireless networks, cabling and infrastructure, and electrical systems. Our Overwatch Managed Security Platform-as-a-Service enables our partners to deliver comprehensive cybersecurity that’s easy to sell and easy to buy for an affordable subscription. We also offer a variety of on-demand, rapid-response solutions with service levels ranging from two hours to the next business day for onsite break-fix and remote technical support. With High Wire Networks, partners Get Work Done. Learn more at http://www.highwirenetworks.com/

Forward-Looking Statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations. 

Investor Relations
Spectrum Global Solutions
http://www.SpectrumGlobalSolutions.com/
561-672-7068

Media Relations
Susanna Song
Vice President of Communications
[email protected]

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