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Sep. 12—A Manchester-based Wi-Fi security company founded by Dyn's Jeremy Hitchcock reduced its workforce by approximately 78% earlier this month and could file for bankruptcy as it struggles to make a profit.
The number of full-time workers at Minim went from 41 to nine, many of whom worked remotely, according to a Sept. 7 filing with the U.S. Securities and Exchange Commission. The reduction was designed to "reduce costs and extend the company's cash," the filing reads.
The company is known for developing security applications and manufactures a variety of mesh Wi-Fi-routers under the Motorola brand.
Hitchcock co-founded Dyn, an internet data company sold to Oracle in 2016, for more than $600 million.
He became Minim's executive chairman after CEO Mehul Patel stepped down in April. Patel took over last August after Gray Chynoweth left to pursue a career as a U.S. Navy reservist.
The extent of the reductions were widespread, including hardware engineering, software engineering, product management and development, sales and marketing, customer and technical support, and logistics and operations, according to the filing.
In March, Patel reported 2022 revenues were down 9% year over year to $50.6 million.
"Across the industry, demand for consumer electronics softened in the fourth quarter and brick-and-mortar retailers took actions to absorb higher inventories that had been amassed to offset supply chain challenges," Patel said in a news release at the time.
The company took actions to increase capital and executed a 20% cost-reduction plan.
"The company's actions thus far have not fully offset the company's lack of continual revenue from normal operations," the SEC filing reads. "As such, substantial doubt exists about our ability to continue as a going concern, and we will require additional liquidity to continue operations."
The company is exploring selling assets or "obtaining relief under the U.S. Bankruptcy Code," according to the filing.
In December 2020, Minim merged with Zoom Telephonics, a Boston-based hardware company. The merger brought together Minim's AI-driven Wi-Fi management and security software applications with Zoom's home-hardware products as part of a growing $355.1 billion global broadband services market.
Minim was founded in 2018. The idea came about after a botnet attack that impacted Dyn's internet in 2016.