mSEVEN software, your reputation is quickly spiraling to the ground level. I would bet that if you actually showed that your customers matter with a prompt press release addressing our concerns then you may be able to save face with many of them. There are not a lot of choices out there for password managers and we all know NONE can prevent an attack especially as AI is used more and more against cyber targets. If you were able to clearly explain what happened and how we need to react then customers may choose to stick with you on the other side of this issue. As it stands now, you are WAY late on this as people are totally confused. 

For example, I back up my password locally with my home computer. Does this mean I need to anything? I never synced with the cloud, but obviously my main password to the app is managed by you so how does that affect me?

Get you heads out of your ass and address this issue ASAP and get some reasonable info out to the public as your future state as a company is in your hands.