Hub Cyber Security Ltd.

Analysis for Ticker: HUBC

Hub Cyber Security Ltd is an Israeli company specializing in Confidential Computing and secure data infrastructures for government, finance, and healthcare sectors. While the company sells high-tech security, the internal math reveals a machine built to burn cash while executives took money for themselves. Between 12/2022 and 12/2023, the company lost over 166$ million while the former chief executive officer and his wife used the company bank account like a personal wallet to renovate their private home. It is like a piggy bank that stays empty because the people who own it keep spending the money on themselves, while the bank they borrow from takes a larger piece of the house every day until the owners have nothing left. This math is a disaster because the company is forced to print millions of new shares just to pay back old debts, leaving the original shareholders with almost no value. The decay began with massive operational failures. In 12/2022, the company lost 80$ million, followed by 86,6$ million in 12/2023. During this period, one financial controller used company credit cards for personal expenses and sent a fake bonus to a third party, taking 110.000$. By 12/2024, revenue dropped from 42,6$ million to 29,5$ million, resulting in a 39,1$ million loss. The company became so broke that it could not pay employee taxes or pension funds, leading its own auditor to warn that the business might not survive.