CISO Global, Inc.
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 13, 2025
CISO$0.18+12.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001641172-25-023931
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001493152-25-022410
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 73 previous paragraphs and 82 current paragraphs.
29 unchanged; 39 reworded; 13 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Third Quarter 2025 Highlights
Current report
Professional services revenue increased by $43,142, or 10%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to more customer projects.
Current report
Stock-based compensation expenses decreased by $735,631, or 69%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, due to the forfeiture of options by terminated employees and options that contractually expired.
Current report
Stock-based compensation expenses decreased by $303,759, or 24%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to the forfeiture of options by terminated employees, fewer grants granted, and options that contractually expired.
Current report
Interest expense decreased by $1,110,088 for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to the extinguishment of convertible notes payable.
Current report
Stock-based compensation expenses decreased by $1,701,803, or 47%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to the forfeiture of options by terminated employees, fewer grants granted, and options that contractually expired.
Current report
Other Income (Expense)
Current report
Series A Preferred Stock
Current report
On August 4, 2025, we entered into Exchange Agreements (each, an “Exchange Agreement,” and collectively, the “Exchange Agreements”) with each of Hensley & Company, d/b/a Hensley Beverage Company (“Hensley”), an entity affiliated with Andrew K. McCain, a director of our company, and JC Associates, Inc. (“J C Associates,” an unrelated party, and collectively with Hensley, the “Holders”). Pursuant to the Exchange Agreements, the Holders exchange certain outstanding convertible notes payable with aggregate principal and accrued interest of approximately $9,297,894 (collectively, the “Exchange Notes”) for an aggregate of 9,297,894 newly authorized shares of Series A Preferred Stock, par value $0.00001 per share (“Series A Preferred Stock”). Upon the closing of the transactions contemplated by the Exchange Agreements, the Exchange Notes were cancelled, and the Holders relinquished all rights, powers, privileges, remedies, or interest under such securities. The Series A Preferred Stock is entitled to cumulative dividends at a rate of 10% per annum, accruing daily and compounding quarterly, whether or not declared by the Board of Directors, based on the original issuance price plus any previously accrued and unpaid dividends. As of September 30, 2025, cumulative dividends in arrears on the Series A Preferred Stock totaled $145,200; no dividends were declared during the period.
Current report
As a result of this transaction, during the three and nine months ended September 30, 2025, the Company recognized a gain on troubled debt restructuring of $5,296,103, which reflects the difference between the carrying value of the Exchange Notes and the estimated fair value of the Series A Preferred Stock issued.
Current report
Series B Preferred Stock
Current report
On September 24, 2025, we entered into a Preferred Equity Purchase Agreement (the “Purchase Agreement”) with B. Riley Principal Capital I (“B. Riley”), an affiliate of B. Riley Securities, Inc. (“BRS”), pursuant to which we will have the right to issue and sell to B. Riley, and B. Riley must purchase from us, up to $15.0 million shares of our newly authorized Series B Convertible Preferred Stock, par value $0.00001 per share (the “Series B Preferred Stock”). Such sales of Series B Preferred Stock by us to B. Riley, if any, will be subject to certain limitations and conditions set forth in the Purchase Agreement, and may occur from time to time, at our sole discretion, over the 18-month period commencing September 24, 2025 and terminating on the earliest of (i) March 24, 2027, (ii) the date on which B. Riley shall have made payment of the aggregate purchase price equal to $15.0 million, (iii) if we have not obtained approval by our stockholders by September 24, 2026, such date as there ceases to be a sufficient number of authorized but unissued shares of Common Stock of the Company, par value $0.00001 (the “Common Stock”) remaining under the Exchange Cap. In no event may we issue or sell to B. Riley under the Purchase Agreement shares of our Series B Preferred Stock that are convertible into an aggregate number of shares of Common Stock exceeding a customary 9.99% beneficial ownership limitation, as well as a conversion limitation equal to 6,821,115 (representing 19.99% of the aggregate number of shares of Common Stock issued and outstanding as of September 24, 2025 and subject to adjustment for any stock splits, combinations or the like) pursuant to applicable Nasdaq Listing Rules (the “Exchange Cap”) until approval has been obtained from our stockholders. As of September 30, 2025, no shares of Series B Preferred Stock were sold to B. Riley pursuant to the Purchase Agreement.
Current report
July 2025 Prospectus
Removed paragraphs (5)
Previous report
First Half 2025 Highlights
Previous report
Professional services revenue decreased by $109,421, or 17%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to fewer customer projects.
Previous report
Stock-based compensation expenses decreased by $608,069, or 49%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to forfeiture of options by terminated employees and options that contractually expired.
Previous report
Stock-based compensation expenses decreased by $1,278,892, or 56%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to the forfeiture of options by terminated employees and options that contractually expired.
Previous report
Stock-based compensation expenses decreased by $1,398,044, or 59%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to the forfeiture of options by terminated employees and options that contractually expired.
Reworded paragraphs (39)
Previous wording
Our operating results for the six months ended June 30, 2025 included the following:
Current wording
Our operating results for the nine months ended September 30, 2025 included the following:
Previous wording
Security managed services revenue decreased by $1,033,376, or 15%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to lower annual contract values among newly acquired customers.
Current wording
Security managed services revenue decreased by $1,129,609, or 16%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to lower annual contract values among newly acquired customers.
Previous wording
Cybersecurity software revenue increased by $47,959, or 50%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to an increase in subscriptions for our Checklight cybersecurity software.
Current wording
Cybersecurity software revenue increased by $36,968, or 34%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to an increase in subscriptions for our Checklight cybersecurity software.
Previous wording
Security managed services cost of revenue decreased by $525,375, or 23%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to lower costs associated with our existing client base.
Current wording
Security managed services cost of revenue decreased by $429,619, or 19%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to lower costs associated with existing client base.
Previous wording
Professional services cost of revenue decreased by $62,037, or 46%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to decreased use of consultants.
Current wording
Professional services cost of revenue decreased by $39,227, or 46%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, due to decreased use of consultants.
Previous wording
Cybersecurity software cost of revenue increased by $30,551, or 108%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to our increase in Checklight subscriptions.
Current wording
Cybersecurity software cost of revenue increased by $24,777, or 83%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to our increase in Checklight subscriptions.
Previous wording
Cost of payroll decreased by $517,861, or 16%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to headcount reductions in 2024.
Current wording
Cost of payroll decreased by $443,045, or 15%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to headcount reductions.
Previous wording
Professional fees decreased by $145,016, or 47%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to a decrease in legal and accounting fees.
Current wording
Professional fees increased by $193,355, or 87%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, due to an increase in legal and accounting fees.
Previous wording
Advertising and marketing expenses increased by $518,980 for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to investment into marketing efforts.
Current wording
Advertising and marketing expenses increased by $310,572 for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, due to investment into marketing efforts.
Previous wording
Selling, general, and administrative expenses decreased by $975,184, or 27%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to reductions in headcount during 2024 resulting in lower costs for compensation, insurance, and leases in 2025.
Current wording
Selling, general, and administrative expenses decreased by $511,919, or 17%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to reductions in headcount during 2024 resulting in lower costs for compensation, insurance, and leases in 2025.
Previous wording
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Current wording
Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Previous wording
Our financial results for the six months ended June 30, 2025 are summarized as follows in comparison to the six months ended June 30, 2024:
Current wording
Our financial results for the nine months ended September 30, 2025 are summarized as follows in comparison to the nine months ended September 30, 2024:
Previous wording
Security managed services revenue decreased by $1,746,776, or 12%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to lower annual contract values among newly acquired customers.
Current wording
Security managed services revenue decreased by $2,876,385, or 14%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to lower annual contract values among newly acquired customers.
Previous wording
Professional services revenue decreased by $306,096, or 22%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to lower customer projects.
Current wording
Professional services revenue decreased by $262,954, or 14%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to lower customer projects.
Previous wording
Cybersecurity software revenue increased by $94,942, or 48%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to the initial launch of our suite of internally developed cybersecurity software products.
Current wording
Cybersecurity software revenue increased by $131,910, or 43%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to the initial launch of our suite of internally developed cybersecurity software products.
Previous wording
Security managed services cost of revenue decreased by $1,075,477, or 22%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to lower costs associated with existing client base.
Current wording
Security managed services cost of revenue decreased by $1,505,096, or 21%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to lower costs associated with existing client base.
Previous wording
Professional services cost of revenue decreased by $167,425, or 58%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to our decreased use of consultants.
Current wording
Professional services cost of revenue decreased by $206,652, or 55%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, due to our decreased use of consultants.
Previous wording
Cybersecurity software cost of revenue increased by $33,276, or 57%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to the initial launch of our suite of internally developed cybersecurity software products.
Current wording
Cybersecurity software cost of revenue increased by $58,053, or 65%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to the initial launch of our suite of internally developed cybersecurity software products.
Previous wording
Cost of payroll decreased by $1,247,723, or 19%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to headcount reductions.
Current wording
Cost of payroll decreased by $1,690,768, or 18%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to headcount reductions.
Previous wording
Stock-based compensation expenses decreased by $723,047, or 60%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to forfeiture of options by terminated employees and options that contractually expired.
Current wording
Stock-based compensation expenses decreased by $2,014,523, or 60%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, due to the forfeiture of options by terminated employees and options that contractually expired.
Previous wording
Professional fees decreased by $122,404, or 15%, for the six months ended June 30, 2025 as compared to six months ended June 30, 2024, due to a decrease in legal and accounting fees.
Current wording
Professional fees increased by $70,951, or 7%, for the nine months ended September 30, 2025 as compared to nine months ended September 30, 2024, due to an increase in legal and accounting fees.
Previous wording
Advertising and marketing expenses increased by $496,272 for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to marketing efforts initiated in 2025.
Current wording
Advertising and marketing expenses increased by $806,844 for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, due to marketing efforts initiated in 2025.
Previous wording
Selling, general, and administrative expenses decreased by $2,296,887, or 30%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to reductions in headcount during 2024 resulting in lower costs for compensation, insurance, and leases in 2025.
Current wording
Selling, general, and administrative expenses decreased by $2,808,806, or 26%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to reductions in headcount during 2024 resulting in lower costs for compensation, insurance, and leases in 2025.
Previous wording
The loss on extinguishment of convertible notes increased by $863,669 for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 due to the conversion of certain convertible notes into shares of our common stock during 2025. No such conversion occurred in 2024.
Current wording
The gain on extinguishment of convertible notes increased by $4,432,434 for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 due to the conversion of certain convertible notes into shares of our Common Stock and Series A Preferred Stock during 2025. No such conversion occurred in 2024.
Previous wording
Change in fair value of derivative liability increased by $5,467,610 for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 due to changes in the fair value of the derivative liability since the issuance of the related convertible notes payable during December 2024 and January 2025.
Current wording
Change in fair value of derivative liability increased by $5,467,610 for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 due to changes in the fair value of the derivative liability since the issuance of the related convertible notes payable during December 2024 and January 2025.
Previous wording
Interest expense increased by $7,575,414 for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to the accretion of convertible notes payable and the amortization of debt issuance costs associated with the issuance of certain convertible notes payable during December 2024 and January 2025.
Current wording
Interest expense increased by $6,456,326 for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to the accretion of convertible notes payable and the amortization of debt issuance costs associated with the issuance of certain convertible notes payable during December 2024 and January 2025.
Previous wording
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the six months ended June 30, 2025, we incurred a net loss of $8,389,525, reported cash used in operations of $5,303,332, and expect to incur further losses through the end of 2025. Further, we have a working capital deficit of $14,460,071 as of June 30, 2025. As a result, substantial doubt about our ability to continue as a going concern exists. Our ability to fund ongoing operations is highly dependent upon raising additional capital through the issuance of equity securities and issuing debt or other financing vehicles. We are evaluating strategies to obtain the required additional funding for future operations. These strategies may include obtaining equity financing, issuing debt or entering into other financing arrangements, and restructuring operations to grow revenues and decrease expenses.
Current wording
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2025, we incurred a net loss of $5,857,097, reported cash used in operations of $6,180,042 and expect to incur further losses through the end of 2025. Further, we have a working capital deficit of $5,376,502 as of September 30, 2025. As a result, substantial doubt about our ability to continue as a going concern exists. The Company’s ability to fund ongoing operations is highly dependent upon raising additional capital through the issuance of equity securities and issuing debt or other financing vehicles. We are evaluating strategies to obtain the required additional funding for future operations. These strategies may include obtaining equity financing, issuing debt or entering into other financing arrangements, and restructuring operations to grow revenues and decrease expenses.
Previous wording
On June 26, 2025, we filed a shelf registration statement on Form S-3, which was deemed effective on July 7, 2025 (“July 2025 Registration Statement”), to replace our expiring shelf registration statement on Form S-3. The July 2025 Registration Statement contains two prospectuses:
Current wording
On June 26, 2025, we renewed our shelf registration statement on Form S-3 (that was deemed effective on July 7, 2025) (“July 2025 Prospectus”) that contains two prospectuses:
Previous wording
The July 2025 Registration Statement provides for up to $100,000,000 available funding from which we may issue our securities to fund current and future operations, assuming there is adequate demand for our securities. Although we have access to the July 2025 Registration Statement, based on our public float, as of the filing date of our Annual Report on Form 10-K for the year ended December 31, 2024, we are subject to Instruction I.B.6 to Form S-3, which is referred to as the “baby shelf” rules. For so long as our public float is less than $75,000,000, we may not sell more than the equivalent of one-third of our public float during any twelve consecutive months pursuant to the “baby shelf” rules. While alternative public and private transaction structures may be available, these may require additional time and costs, may result in substantial dilution to existing stockholders, in light of our current stock price, may impose operational restrictions on us, and may not be available on attractive terms or at all.
Current wording
Upon the renewal of our shelf registration statement on Form S-3, we had $100,000,000 available funding from which we may issue our securities to fund current and future operations, assuming there is adequate demand for our securities. Although we have access to our shelf registration statement on Form S-3, based on our public float, as of the filing date of our Annual Report on Form 10-K for the year ended December 31, 2024, we are only permitted to utilize a “shelf” registration statement for primary offerings, and our shelf registration statement on Form S-3 is subject to Instruction I.B.6 to Form S-3, which is referred to as the “baby shelf” rules. For so long as our public float is less than $75,000,000, we may not sell more than the equivalent of one-third of our public float during any twelve consecutive months pursuant to the “baby shelf” rules. While alternative public and private transaction structures may be available, these may require additional time and costs, may result in substantial dilution to existing stockholders, in light of our current stock price, may impose operational restrictions on us, and may not be available on attractive terms or at all.
Previous wording
Our material cash requirements included the following contractual obligations as of June 30, 2025:
Current wording
The Company’s material cash requirements included the following contractual obligations as of September 30, 2025:
Previous wording
As of June 30, 2025, the carrying value of our outstanding debt obligations was $9,912,816, substantially all of which was scheduled to mature during the remainder of 2025 and during 2026. However, on August 4, 2025, we entered into Exchange Agreements to exchange certain outstanding convertible notes with aggregate principal of $8,070,000 and accrued interest of approximately $1,227,894 (collectively, the “Exchange Notes”) for an aggregate of 9,297,894 newly authorized shares of Series A Preferred Stock, par value $0.00001 per share. Upon the closing of the transactions contemplated by the Exchange Agreements, the Exchange Notes were cancelled. Refer to Note 15 in the accompanying unaudited condensed consolidated financial statements for further information.
Current wording
As of September 30, 2025, the carrying value of our outstanding debt obligations was $2,053,884, substantially all of which is scheduled to mature during the remainder of 2025 and during 2026.
Previous wording
As of June 30, 2025, the carrying value of our outstanding operating lease obligations was $523,167.
Current wording
As of September 30, 2025, the carrying value of our outstanding operating lease obligations was $483,192.
Previous wording
Our principal sources of liquidity are our cash on hand, cash provided by operations, and our shelf registration statement on Form S-3 discussed above. However, we expect to incur further losses through the end of 2025, and there can be no assurance that we will be able to obtain additional liquidity from the shelf registration statement on Form S-3 when needed or under acceptable terms, if at all.
Current wording
Our principal sources of liquidity are our cash on hand, cash provided by operations, the Purchase Agreement discussed above, and our shelf registration statement on Form S-3 discussed above. Our current cash on hand is not sufficient to satisfy our operating cash needs for the 12 months from the filing of this Quarterly Report on Form 10-Q. We expect to incur further losses through the end of 2025, and there can be no assurance that we will be able to obtain additional liquidity from the shelf registration statement on Form S-3 when needed or under acceptable terms, if at all.
Previous wording
The decrease in current assets is primarily due to the $452,987 increase in prepaid expenses and other current assets being more than offset by decreases in cash and cash equivalents and accounts receivable of $231,835 and $242,782, respectively. Cash and cash equivalents decreased due to the pay down of debt and accounts payable. Accounts receivable decreased due to collection efforts. Prepaid expenses increased due to increased prepaid marketing expenses.
Current wording
The decrease in current assets is primarily due to the $176,198 increase in prepaid expenses and other current assets being more than offset by decreases in accounts receivable and prepaid cost of revenue of $539,177 and $248,355, respectively. Accounts receivable decreased due to collection efforts. Prepaid expenses increased due to increased prepaid marketing expenses.
Previous wording
The decrease in current liabilities is primarily due to decreases in accounts payable and accrued expenses, debt obligations, and the derivative liability of $2,810,470, $1,790,697, and $2,102,927, respectively. During the six months ended June 30, 2025, we paid down accounts payable and loans payable outstanding, certain convertible notes payable were converted into shares of our common stock, and the derivative liability was derecognized as a result of the conversion of the notes payable.
Current wording
The decrease in current liabilities is primarily due to decreases in accounts payable and accrued expenses, debt obligations, and the derivative liability of $4,128,590, $9,637,106, and $2,102,927, respectively. During the nine months ended September 30, 2025, we paid down accounts payable and loans payable outstanding, certain convertible notes payable were converted into shares of our Common Stock and preferred stock, and the derivative liability was derecognized as a result of the conversion of the notes payable.
Previous wording
Our cash flows for the six months ended June 30, 2025 in comparison to our cash flows for the six months ended June 30, 2024, are summarized as follows:
Current wording
Our cash flows for the nine months ended September 30, 2025 in comparison to our cash flows for the nine months ended September 30, 2024, are summarized as follows:
Previous wording
Net cash used in operating activities was $5,303,332 for the six months ended June 30, 2025 and was primarily due to cash used to fund a net loss of $8,389,525 (which includes non-cash expenses in the aggregate of $6,520,869), a decrease in accounts payable and accrued expenses and a decrease in deferred revenue. Net cash used in operating activities was $2,679,622 for the six months ended June 30, 2024 and was primarily due to cash used to fund a net loss of $15,046,075 (which includes non-cash expenses in the aggregate of $9,913,043), offset by a decrease in accounts receivable and an increase in deferred revenue.
Current wording
Net cash used in operating activities was $6,180,042 for the nine months ended September 30, 2025 and was primarily due to cash used to fund a net loss of $5,857,097 (which includes non-cash expenses in the aggregate of $4,044,057), a decrease in accounts payable and accrued expenses and a decrease in deferred revenue. Net cash used in operating activities was $3,582,726 for the nine months ended September 30, 2024 and was primarily due to cash used to fund a net loss of $18,723,961, adjusted for non-cash expenses in the aggregate of $11,704,296 and additional cash inflow by changes in the levels of operating assets and liabilities, primarily as a result of a decrease in accounts receivables, net, and an increase in deferred revenue.
Previous wording
Net cash used in investing activities of $83,095 for the six months ended June 30, 2024 was due to purchases of property and equipment.
Current wording
Net cash provided by investing activities of $916,905 for the nine months ended September 30, 2024 was primarily due to the sale of our subsidiary vCISO.
Previous wording
Net cash provided by financing activities for the six months ended June 30, 2025 was $5,071,497, which was primarily due to $2,684,754 from the sale of our common stock, $655,000 from the exercise of warrants, cash received from borrowings on our convertible loans payable and line of credit (net of debt issuance costs) of $9,861,983, offset by $8,132,411 in repayments of our loans payable and line of credit. Net cash provided by financing activities for the six months ended June 30, 2024 was $3,068,338, which was primarily due to cash received from borrowings on our loans payable and line of credit (net of debt issuance costs) of $6,694,412, offset by $3,781,021 in repayments of our loans payable and line of credit.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2025 was $6,299,182, which was primarily due to $2,816,075 from the sale of our Common Stock, $1,547,999 from the exercise of warrants, cash received from borrowings on our convertible loans payable and line of credit (net of debt issuance costs) of $16,276,483, offset by $14,344,167 in repayments of our loans payable and line of credit. Net cash provided by financing activities for the nine months ended September 30, 2024 was $2,105,679, which was primarily due to cash received from borrowings on our loans payable and lines of credit, net of debt issuance cost, of $6,694,412, offset by $4,743,680 in repayments of our loans payable and lines of credit.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The gain on extinguishment of convertible notes increased by $5,296,103 for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 due to the conversion of certain convertible notes into shares of Series A Preferred Stock during 2025. No such conversion occurred in 2024.