Castellum eliminates $2 million debt, reduces long-term debt to zero

VIENNA, Va. - Cybersecurity and software engineering services company Castellum, Inc. (NYSE-American:CTM) announced Thursday it has fully eliminated its $2 million debt obligation to Robert Eisiminger, leaving the company with no outstanding principal balance to the creditor. This move aligns with an InvestingPro observation that Castellum now "holds more cash than debt on its balance sheet."

The debt paydown, which Castellum completed using free cash flow generated in the third quarter and cash reserves, has reduced the company's long-term debt to zero. Current notes payable now stand at $400,000, according to the company's statement. With total debt of just $3.3 million and a strong current ratio of 4.17, Castellum's financial position appears increasingly solid.

"This milestone reflects Castellum's disciplined strategy and strong execution," said David Bell, Chief Financial Officer of Castellum. "By advancing our debt reduction strategy, we continue to strengthen an already solid balance sheet."

The federal government-focused firm said the improved financial position will enable strategic investments in business development capabilities to pursue prime contract opportunities.

Glen Ives, Chief Executive Officer of Castellum, acknowledged Eisiminger's support, noting he "largely funded our first acquisition in 2019" and provided other assistance over the years.

Castellum specializes in cybersecurity, electronic warfare, and software engineering services for federal government clients. The announcement was made in a company press release.

In other recent news, Castellum, Inc. secured a significant $66.2 million contract through its subsidiary, Specialty Systems, Inc. This five-year contract, awarded by the Naval Air Warfare Center Aircraft Division Lakehurst, involves logistics, engineering, and cyber support services. This marks a notable achievement as it is Castellum's first major prime contract win without small-business set-aside restrictions. Furthermore, Castellum has enhanced its capabilities by adding Special Item Number 54151S to a new General Services Administration Multiple Award Schedule contract, allowing its subsidiary to bid on IT professional services contracts. In addition to these developments, Castellum has formed a reseller agreement with Tradewinds Networks, Inc. to provide AI-driven cybersecurity solutions to its clients. These recent developments highlight Castellum's expanding role in cybersecurity and defense support services.

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