Hub Cyber Security Ltd. (NASDAQ: HUBC)

Hub Cyber Security Ltd., also known as HUBC, is a company that has been a significant player in the cybersecurity industry since its inception in 1984. Initially founded as A.L.D. Advanced Logistics Development Ltd. (ALD), the company has experienced substantial growth and transformation, including a merger with HUB TLV in 2021. Today, Hub Cyber Security Ltd. specializes in developing unique technology and products in the field of confidential computing. Based in several countries, the company offers secured data fabric SaaS solutions and a wide range of cybersecurity professional services.

Hub's business activities primarily revolve around two interconnected divisions: the Products and Technology Division, which focuses on Secured Data Fabric and Confidential Computing; and the Professional Services Division, which offers cyber security and other technology services. The company's products and services are specifically designed to cater to the needs of governments, banks, financial institutions, and large regulated enterprises.

Hub's primary products and services include confidential computing, data fabric, and cybersecurity consulting services. Confidential computing is a robust cyber protection solution that assumes hackers have already infiltrated a computer and that an administrator's credentials have been compromised. The company's zero-trust confidential computing systems protect data and applications by running them within secure enclaves that are governed by policies and managed with strict, rules-based filters to prevent unauthorized access to the processor.

The data fabric solution offered by Hub is an innovative approach that leaves most of the data as is in its prime original location. By using AI to understand what is there and what applications may need this data, the data fabric solution only fetches the required data when it is needed. This approach eliminates a major cost by not having to perform continuous ETL procedures and not needing a new data lake to collect all the organization's data.

Hub's professional services division provides a wide range of cybersecurity and reliability, availability, maintainability, and safety (RAMS) services. These services include cyber risk assessment, cyber risk mitigation, cyber incident response, and quality reliability, and safety of critical systems.

The company boasts a strong management team and board of directors, including Noah Hershcoviz (CEO), Lior Davidson (Interim CFO), Nachman Geva (Chief Technology Officer), Osher Partok Rheinisch (Chief Legal, Compliance, and Data Protection Officer), Nuriel Kasbian Chirich (Director), Major-General (Ret.) Uzi Moskovich (Director), and Ilan Flato (Director).

However, it's important to note that Hub's financial performance has been impacted by the ongoing investigation and the delay in the filing of this annual report. The company's liquidity and capital resources are uncertain, and there is substantial doubt about its ability to continue as a going concern for the next twelve months from the date of issuance of this annual report. Hub is actively seeking to alleviate its liquidity and capital resources concerns through workforce reductions, interim financing facilities, negotiations with the company's creditors, and other capital-raising efforts.

Despite these challenges, Hub's market opportunity remains significant. The cybersecurity market is projected to grow to $425.0 billion in 2030, with a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030. The demand for cybersecurity consulting services has also increased, and Hub's professional services division is well-positioned for growth, having served the market for over 30 years in this space and having updated its services and offerings to meet the new increased demands.

In terms of brand names and trade names, Hub offers a range of products under the following names:

- Confidential computing: A hardware-based confidential computing platform that secures the entire compute and network stack, leveraging digital twin technology and a new zero-trust paradigm to provide enhanced security and privacy for customers' most sensitive organizational applications and data.
- HUB Vault: A managed file transfer application (MFT) that protects critical data, enabling secure data storage and sharing through an application leveraging Hub's secure compute core.
- HUB PCIe Card: Provides the same confidential computing functionality for a single compute component as HUB Appliance.
- Hub Guard: A cyber resilience bundle that continuously evaluates the security posture of the customer while outlining any weaknesses or threats and suggesting solutions to mitigate and remediate them.