$CISO

CISO Global, Inc.

CIK:0001777319|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 5,791,488	$ 6,713,587	$ 12,011,813	$ 13,875,909
Cost of revenue:
Total cost of revenue	4,368,724	5,076,747	8,764,942	10,457,467
Total gross profit	1,422,764	1,636,840	3,246,871	3,418,442
Operating expenses:
Professional fees	327,266	166,178	1,016,432	679,857
Advertising and marketing	1,942	525,302	14,504	529,032
Selling, general and administrative	2,355,212	2,630,096	4,703,520	5,286,987
Stock-based compensation	225,430	644,651	443,551	961,698
Total operating expenses	2,909,850	3,966,227	6,178,007	7,457,574
Loss from operations	(1,487,086)	(2,329,387)	(2,931,136)	(4,039,132)
Other (expense) income:
Change in fair value of derivative liability		79,919		5,467,610
Loss on extinguishment of convertible notes		(24,518)		(863,669)
Interest expense, net	(127,941)	(736,309)	(254,992)	(8,949,180)
Other income (expense)	2,322	374	(15,483)	(5,154)
Total other expense	(125,619)	(680,534)	(270,475)	(4,350,393)
Loss from continuing operations before income taxes	(1,612,705)	(3,009,921)	(3,201,611)	(8,389,525)
Benefit from income taxes
Loss from continuing operations	(1,612,705)	(3,009,921)	(3,201,611)	(8,389,525)
Net loss	$ (1,612,705)	$ (3,009,921)	$ (3,201,611)	$ (8,389,525)
Net loss per common share, basic	$ (0.04)	$ (0.09)	$ (0.07)	$ (0.36)
Net loss per common share, diluted	$ (0.04)	$ (0.09)	$ (0.07)	$ (0.36)
Weighted-average shares used in computing net loss per share, basic	45,353,001	31,834,324	45,267,824	23,084,015
Weighted-average shares used in computing net loss per share, diluted	45,353,001	31,834,324	45,267,824	23,084,015
Other comprehensive income (loss):
Foreign currency translation adjustments	$ (1,747)	$ (1,487)	$ 4,654	$ 2,719
Other comprehensive income (loss)	(1,747)	(1,487)	4,654	2,719
Comprehensive loss	(1,614,452)	(3,011,408)	(3,196,957)	(8,386,806)
Security Managed Services [Member]
Revenue:
Total revenue	5,132,830	6,046,950	10,673,178	12,492,183
Cost of revenue:
Total cost of revenue	1,757,344	1,809,328	3,397,298	3,813,175
Professional Services [Member]
Revenue:
Total revenue	464,525	522,804	949,496	1,092,627
Cost of revenue:
Total cost of revenue	64,546	72,547	103,916	122,739
Cybersecurity Software [Member]
Revenue:
Total revenue	194,133	143,833	389,139	291,099
Cost of revenue:
Total cost of revenue	56,629	58,815	112,972	92,045
Cost of Payroll [Member]
Cost of revenue:
Total cost of revenue	2,445,608	2,658,957	5,030,907	5,411,003
Stock based Compensation [Member]
Cost of revenue:
Total cost of revenue	$ 44,597	$ 477,100	$ 119,849	$ 1,018,505

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (3,201,611)	$ (8,389,525)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	563,400	1,927,243
Stock-based compensation - stock issued for services		52,960
Non-cash interest expense		8,364,805
Depreciation and amortization	474,670	622,074
Non-cash operating lease costs	83,414	83,414
Bad debt expense	(1,999)	72,563
Change in fair value of derivative liability		(5,467,610)
Loss on extinguishment of convertible notes		863,669
Other	1,316	1,751
Changes in operating assets and liabilities:
Accounts receivable	(205,845)	170,219
Contract assets	36,848	(35,391)
Prepaid expenses and other assets	560	(243,157)
Accounts payable	1,120,061	(2,323,767)
Accrued expenses and other current liabilities	384,042	(453,616)
Lease liabilities	(87,395)	(75,192)
Deferred revenue	(115,876)	(473,772)
Net cash used in operating activities	(948,415)	(5,303,332)
Cash flows from investing activities:
Purchases of property and equipment	(8,911)
Net cash used in investing activities	(8,911)
Cash flows from financing activities:
Tax withholding related to the vesting of restricted stock units	(21,803)
Proceeds from sales of Common Stock, net of offering costs		2,684,754
Proceeds from stock option exercises		2,171
Proceeds from exercises of warrants		655,000
Proceeds from loans payable	350,000
Proceeds from convertible notes payable		5,000,000
Proceeds from line of credit	11,880,300	6,270,625
Payments on line of credit	(12,057,026)	(6,473,657)
Payments on loans payable	(163,118)	(1,658,754)
Payments of debt issuance costs	(5,250)	(1,408,642)
Net cash (used in) provided by financing activities	(16,897)	5,071,497
Net decrease in cash and cash equivalents	(974,223)	(231,835)
Cash and cash equivalents - beginning of the period	1,695,994	992,589
Cash and cash equivalents - end of the period	721,771	760,754
Cash paid for:
Interest	253,573	556,679
Income taxes
Supplemental disclosures of non-cash investing and financing activities:
Common Stock issued in exchange for services		91,000
Conversion of convertible notes - Common Stock		8,988,669
Conversion of Series B Preferred Stock to Common Stock	290,880
Adjustment to redemption value of Series B Preferred Stock	14,200
Conversion of Series B Preferred Stock to loan payable	$ 1,866,900

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 721,771	$ 1,695,994
Accounts receivable, net of allowance for credit losses of $0 and $60,551 at June 30, 2026, and December 31, 2025, respectively	1,408,905	1,201,061
Prepaid cost of revenue	137,840	70,216
Prepaid expenses and other current assets	166,802	204,997
Contract assets	55,108	91,956
Total Current Assets	2,490,426	3,264,224
Property and equipment, net	356,768	450,104
Operating lease right-of-use assets, net	286,931	370,345
Intangible assets, net	507,336	881,075
Goodwill	19,900,550	19,900,550
Prepaid cost of revenue, net of current portion		29,989
Other assets	131,966	131,966
Total Assets	23,673,977	25,028,253
Current Liabilities:
Accounts payable	3,798,169	2,682,762
Accrued expenses and other current liabilities	1,976,916	1,592,874
Deferred revenue	906,152	1,024,725
Lease liabilities	195,252	181,478
Loans payable	2,136,120	83,983
Line of credit	1,995,941	2,172,667
Total Current Liabilities	11,008,550	7,738,489
Deferred revenue, net of current portion	36,370	33,673
Loans payable, net of current portion		3,605
Lease liabilities, net of current portion	159,403	260,572
Total Liabilities	11,204,323	8,036,339
Commitments and Contingencies (Note 10)
Stockholders’ Equity:
Common Stock, $.00001 par value; 1,300,000,000 shares authorized; 46,027,792 and 45,173,774 shares issued at June 30, 2026 and December 31, 2025, respectively; 45,525,655 and 44,671,637 outstanding at June 30, 2026 and December 31, 2025, respectively	460	451
Additional paid-in capital	206,309,094	205,462,426
Treasury stock, at cost (502,137 shares)	(290,737)	(290,737)
Accumulated other comprehensive loss	(6,035)	(10,689)
Accumulated deficit	(193,543,128)	(190,341,517)
Total Stockholders’ Equity	12,469,654	14,819,934
Total Liabilities and Stockholders’ Equity	23,673,977	25,028,253
Series B Preferred Stock [Member]
Current Liabilities:
Temporary Equity: Series B Preferred Stock; 2,396 shares issued at June 30, 2026 and December 31, 2025, respectively; 1,778 and 2,081 shares outstanding at June 30, 2026 and December 31, 2025, respectively		2,171,980
Series A Preferred Stock [Member]
Stockholders’ Equity:
Series A Preferred Stock, $.00001 par value; 50,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively