CISO Global, Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 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.
Jun 30, 2025 · Filed Aug 14, 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 2025-03-31; filed 2025-05-15.
0001641172-25-010897
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent 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 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 73 current paragraphs.
16 unchanged; 21 reworded; 34 added; 36 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 5 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 (34)
Current report
First Half 2025 Highlights
Current report
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 report
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 report
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 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.
Current report
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Current report
Revenue
Current report
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 report
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 report
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 report
Expenses
Current report
Cost of Revenue
Current report
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 report
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 report
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 report
Operating Expenses
Current report
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 report
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 report
Other Income (Expense)
Current report
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 report
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 report
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 report
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 report
Material Cash Requirements
Current report
Our material cash requirements included the following contractual obligations as of June 30, 2025:
Current report
Indebtedness
Current report
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 report
Leases
Current report
As of June 30, 2025, the carrying value of our outstanding operating lease obligations was $523,167.
Current report
Sources of Funding to Satisfy Material Cash Requirements
Current report
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 report
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 report
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 report
Critical Accounting Estimates
Removed paragraphs (36)
Previous report
First Quarter 2025 Highlights
Previous report
Security managed services revenue decreased by $713,400, or 10%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to lower hardware and software sales.
Previous report
The accompanying condensed consolidated financial statements have been prepared on the basis that we will continue as a going concern, which contemplates the realization of assets and satisfying liabilities in the normal course of business. For the three months ended March 31, 2025, we incurred a net loss of $5,379,604 and negative cash flows from operations of $2,953,508 and expect to incur further losses through the end of 2025. In the report accompanying our financial statements for the year ended December 31, 2024, our independent registered public accounting firm stated that our financial statements were prepared assuming that we would continue as a going concern and that they have substantial doubt as to our ability to do so based on our recurring losses from operations and need to raise additional capital. These condensed consolidated financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should we be unable to continue as a going concern.
Previous report
The increase in current assets is primarily due to an increase in cash and cash equivalents and prepaid expenses and other current assets of $794,271 and $944,858, respectively, offset by a decrease in accounts receivable, net, and prepaid cost of revenue of $95,814 and $114,135, respectively. The decrease in current liabilities is primarily due to a decrease in accounts payable and accrued expenses, loans payable, and derivative liability of $1,338,235, $1,629,647, and $2,023,008, respectively.
Previous report
We are actively evaluating strategies to obtain the necessary additional funding for future operations. These strategies may include, obtaining equity financing, issuing debt, or entering into other financing arrangements, and restructuring of operations to grow revenues and decrease expenses. However, we may be unable to access further equity or debt financing when needed. Consequently, there is no assurance that we will be able to obtain the necessary liquidity when needed or under acceptable terms, if at all.
Previous report
Critical Accounting Policies and Estimates
Previous report
Use of Estimates
Previous report
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the periods. Our significant estimates and assumptions include the allowance for credit losses, the carrying value of intangible assets and goodwill, deferred tax asset and valuation allowance, the valuation of convertible notes, derivative liabilities, the adequacy of insurance reserves, and assumptions used in the Black-Scholes option pricing model, such as expected volatility, risk-free interest rate, share price, and expected dividend rate could be affected by external conditions, including those unique to us and general economic conditions. It is reasonably possible that these external factors could have an effect on our estimates and could cause actual results to differ from those estimates.
Previous report
Fair Value Measurement
Previous report
The fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in the valuation of an asset or liability. It establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the fair value measurement guidance are described below:
Previous report
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;
Previous report
Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; or
Previous report
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
Previous report
Goodwill and Indefinite-Lived Intangible Assets
Previous report
Goodwill and indefinite-lived intangible assets are assessed for impairment annually, or more frequently, if events occur that would indicate a potential reduction in the fair value of a reporting unit below its carrying value. We perform our annual impairment review of goodwill at the reporting unit level. If we determine the fair value of the reporting unit’s goodwill or other indefinite-lived intangible assets is less than their carrying value as a result of an annual or interim test, an impairment loss is recognized and reflected in operating income or loss in the consolidated statements of operations during the period incurred. We perform our impairment assessment based on a quantitative analysis performed for our reporting unit.
Previous report
We review finite-lived intangible assets for impairment whenever an event occurs or circumstances change that indicate that the carrying amount of such assets may not be fully recoverable. Recoverability is determined based on an estimate of undiscounted future cash flows resulting from the use of an asset and its eventual disposition. Should an asset not be recoverable, an impairment loss is measured by comparing the fair value of the asset to its carrying value. If we determine the fair value of an asset is less than the carrying value, an impairment loss is recognized in operating income or loss in the consolidated statements of operations during the period incurred.
Previous report
Impairment of Long-Lived Assets
Previous report
We will periodically evaluate the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review and at least annually. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily by using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose.
Previous report
Stock-Based Compensation
Previous report
We measure and recognize compensation expense for equity-based awards based on the grant date fair values of the awards. For options with service or performance-based vesting conditions, the grant date fair value is estimated using the Black-Scholes option-pricing model, which requires management to make assumptions and apply judgment in determining the grant date fair value.
Previous report
The most significant assumptions and judgments include estimating the expected option term, the expected stock price volatility, and the risk-free interest rates. The assumptions used in our option pricing model represent management’s best estimates. If factors change and different assumptions are used, our equity-based compensation expense could be materially different in the future. We record forfeitures when they occur, based on our lack of historical data available to estimate an appropriate forfeiture rate. Changes in our forfeiture rate can have a significant impact on our equity-based compensation expense since the cumulative effect of adjusting the forfeiture rate is recognized in the period in which the estimate is changed.
Previous report
We will continue to use judgment in evaluating the assumptions related to our equity-based awards on a prospective basis. As we continue to accumulate additional data related to our awards, we may refine our estimates, which could materially impact our future equity-based compensation expense.
Previous report
Revenue Recognition
Previous report
Our agreements with clients are primarily service contracts that range in duration from a few months to three year. We recognize revenue when control of these services is transferred to the client for an amount, referred to as the transaction price, which reflects the consideration to which we are expected to be entitled in exchange for those goods or services.
Previous report
A contract with a client exists only when:
Previous report
We do not adjust the promised amount of consideration for the effects of a significant financing component since we expect, at contract inception, that the period between the time of transfer of the promised goods or services to the client and the time the client pays for these goods or services to be generally one year or less. Our credit terms to clients generally average 30 days, although in some cases payments are required in 15 days.
Previous report
We do not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.
Previous report
Our revenue is categorized and disaggregated as reflected in our statements of operations as follows:
Previous report
Security Managed Services
Previous report
Security managed services revenue primarily consists of compliance, security managed services, SOC managed services, and vCISO. We consider these services to be a single performance obligation, and revenue is recognized as services and materials are provided to the customer.
Previous report
Professional Services
Previous report
Professional services revenue primarily consists of technical assessments, incident response and forensics, training, and other cybersecurity services. We consider these services to be a single performance obligation, and revenue is recognized in the period in which the performance obligations are satisfied.
Previous report
Cybersecurity Software
Previous report
Cybersecurity revenue primarily consists of our internally developed software products, CHECKLIGHT Endpoint Security Monitoring, ARGO Security Management, CISO Edge Cloud Security Platform, DISC Net Gen VPN, and Skanda Breach Assessment Tool. Each software offering is a single performance obligation, and we begin revenue recognition upon provisioning of our cybersecurity software to our customers and recognize ratably over the duration of the service period. We currently do not bundle our cybersecurity software with other product offerings, and as a result, judgment is not required to determine standalone selling price.
Previous report
Off-Balance Sheet Arrangements
Previous report
We have no off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.
Reworded paragraphs (21)
Previous wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Current wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Previous wording
Our operating results for the three months ended March 31, 2025 included the following:
Current wording
Our operating results for the six months ended June 30, 2025 included the following:
Previous wording
Professional services revenue decreased by $196,675, or 26%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to fewer customer projects.
Current wording
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 wording
Cybersecurity software revenue increased by $46,983, or 47%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to an increase in subscriptions for our Checklight cybersecurity software.
Current 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.
Previous wording
Professional services cost of revenue decreased by $105,388, or 68%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to a decreased use of consultants.
Current 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.
Previous wording
Cybersecurity software cost of revenue increased by $2,725, or 9%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to our increase in Checklight subscriptions.
Current 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.
Previous wording
Cost of payroll decreased by $729,862, or 21%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to headcount reductions in 2024.
Current 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.
Previous wording
Professional fees increased by $22,612, or 5%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to an increase in legal and accounting fees offset by a decrease in consultant fees.
Current 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.
Previous wording
Advertising and marketing expenses decreased by $22,708, or 86%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to utilizing internal resources for advertising and marketing activities.
Current 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.
Previous wording
Selling, general, and administrative expenses decreased by $1,321,703, or 33%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 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 $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.
Previous wording
Security managed services cost of revenue decreased by $550,102, or 22%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to lower hardware and software sales.
Current 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.
Previous wording
Stock-based compensation expenses decreased by $555,845, or 51%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to the forfeiture of options by terminated employees and options that contractually expired.
Current wording
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 wording
Stock based compensation expenses decreased by $790,175, or 71%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to the forfeiture of options by terminated employees and options that contractually expired.
Current wording
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.
Previous wording
The accompanying financial statements have been prepared on a going concern basis, which assumes the realization of assets and satisfaction of liabilities in the normal course of business. However, due to losses incurred, substantial doubt about our ability to continue as a going concern exists.
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 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.
Previous wording
As of March 31, 2025, we had $289,409,103 of available funding under our Shelf Registration Statement on Form S-3 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, including the Shelf Registration Statement, 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
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.
Previous wording
Our ability to continue as a going concern depends on successfully executing the plan outlined in our growth strategy and eventually achieving profitable operations. The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if we were unable to continue as a going concern.
Current wording
There can be no assurance that we will be able to obtain additional liquidity when needed or under acceptable terms, if at all. As such, we may be unable to access further equity or debt financing when needed. The ability for us to continue as a going concern is dependent upon our ability to successfully implement our strategies and eventually attain profitable operations. The accompanying unaudited condensed consolidated financial statements do not include any adjustments to the carrying amounts or classification of assets, liabilities, and reported expenses that may be necessary if we are unable to continue as a going concern.
Previous wording
Our cash flows for the three months ended March 31, 2025 in comparison to our cash flows for the three months ended March 31, 2024, can be summarized as follows:
Current 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:
Previous wording
Net cash used in operating activities was $2,953,508 for the three months ended March 31, 2025 and was primarily due to cash used to fund a net loss of $5,379,604, adjusted for non-cash expenses in the aggregate of $4,563,916 and additional cash inflow by changes in the levels of operating assets and liabilities, primarily as a result of a decrease in accounts payable and accrued expenses, and prepaids and other current assets. Net cash used in operating activities was $1,408,633 for the three months ended March 31, 2024 and was primarily due to cash used to fund a net loss of $6,609,199, adjusted for non-cash expenses in the aggregate of $3,207,036 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.
Current 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.
Previous wording
Net cash used in investing activities of zero and $75,571 for the three months ended March 31, 2025 and 2024, respectively, was due to purchases of property and equipment.
Current 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.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2025 was $3,747,779, which was primarily due to $1,719,556 from the sale of our common stock, cash received from borrowings on our convertible loans payable and line of credit, net of debt issuance cost, of $4,591,358, offset by $2,563,135 in repayments of our loans payable and lines of credit. Net cash provided by financing activities for the three months ended March 31, 2024 was $2,014,034, which was primarily due to cash received from borrowings on our loans payable and lines of credit, net of debt issuance cost, of $4,571,583, offset by $2,605,636 in repayments of our loans payable and lines of credit.
Current 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.
Previous wording
Our critical accounting policies are more fully described in the notes to our condensed consolidated financial statements included herein for the quarter ended March 31, 2025 and in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025.
Current wording
Our critical accounting estimates are more fully described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025. There have been no material changes to our critical accounting estimates described in our 2024 Annual Report on Form 10-K.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
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.