CLOUDASTRUCTURE, INC.
For the period ended Mar 31, 2026. Filed Jul 17, 2026.
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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.
Mar 31, 2026 · Filed Jul 17, 2026
CSAI$1.57-12.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001683168-25-008294
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-07-17.
0001683168-26-005585
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 77 previous paragraphs and 75 current paragraphs.
40 unchanged; 11 reworded; 24 added; 21 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 5 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 (24)
Current report
Cloudastructure, Inc. (“Cloudastructure,” “we,” “our,” or “the Company”) is an award-winning innovator in cloud-native, AI-powered security solutions, delivering comprehensive, real-time situational awareness to enterprises to protect people, property, and brand reputation from threats such as theft, vandalism, false liability and violence. Headquartered in Palo Alto, California, Cloudastructure delivers a full-stack solution—cutting-edge cloud video surveillance, proprietary AI/ML analytics, and a seamless remote guarding platform with accompanying services—that transforms security from a reactive toolkit into a proactive system capable of stopping crime in real time.
Current report
Our mission is to empower businesses to see and respond to events as they happen, turning video data into actionable intelligence and deterrence into measurable results. By leveraging a cloud-based architecture, we provide organizations with unprecedented scalability, flexibility, and operational insight, without the limitations of traditional, on-premises systems. Every camera and alert is woven into a unified digital fabric, giving operators the power to act proactively, mitigate risks, and safeguard communities.
Current report
Cloudastructure’s solutions encompass a suite of integrated offerings:
Current report
**Cloud Video Surveillance –**AI-enhanced video capture and analytics that automate event detection, anomaly recognition, and real-time alerts to reduce loss, liability, and security blind spots.
Current report
**Seamless Remote Guarding Software –**Cloud-native orchestration that connects cameras, AI, and operators into one platform, enabling incident triage, standardized response playbooks, and auditable records that strengthen risk management and compliance.
Current report
**Remote Guarding –**24/7 live response by trained security personnel, tightly integrated with AI monitoring for rapid intervention, risk mitigation, and documented response to support insurance and legal defense.
Current report
**Operational Intelligence –**Centralized dashboards, reporting, and alerts for property managers and enterprise security teams, driving informed decision-making, streamlined workflows, and better alignment between security operations and overall risk management strategy.
Current report
Our platform primarily serves multifamily residential and broader property management, with a growing presence in commercial real estate, construction, critical infrastructure, transportation and logistics. We focus on enterprises that value safety, liability reduction, and operational efficiency, helping them realize clear returns through fewer incidents, stronger compliance, and better protection of their tenants, assets, and brand.
Current report
Cloudastructure’s competitive advantage lies in its ability to centralize security operations, leveraging AI to monitor activity at scale while seamlessly connecting to a global network of trained security professionals. Unlike traditional hardware-bound systems, our platform eliminates on-site constraints, reduces total cost of ownership, and allows organizations to protect what matters most with precision and confidence.
Current report
Since our founding, Cloudastructure has maintained an entrepreneurial commitment to innovation, reliability, and customer-centric design, continually expanding its reach while reinforcing its reputation as a trusted partner for modern security challenges. By combining state-of-the-art technology, cloud-first infrastructure, and proactive security services, we redefine what it means to protect people and property in an increasingly complex world.
Current report
Net Revenues
Current report
Cost of Goods Sold
Current report
Operating Expenses
Current report
Net Revenues
Current report
Cost of Goods Sold
Current report
Operating Expenses
Current report
General and administrative expenses increased by $301,000, or 28%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This change was primarily due to an increase of $117,000, or 13%, in Salaries and Benefits, an increase of $111,000, or 3,458%, in Professional Services, and an increase of $59,000, or 1,521%, in Equipment.
Current report
Research and Development (“R&D”) expenses decreased by $64,000, or 8%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This change was primarily due to a decrease of $183,000, or 32%, in Salaries and Benefits, offset by an increase of $110,000, or 62%, in Consulting Fees.
Current report
Sales and Marketing expenses increased by $101,000, or 12%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This change was primarily due to an increase of $52,000, or 358%, in Consulting Fees and an increase of $34,000, or 588%, in Other.
Current report
Operations expenses increased by $209,000, or 203%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This change was primarily due to an increase of $168,000, or 287%, in Salaries and Benefits related to increased headcount in the department.
Current report
Other Income / Expense
Current report
Change in fair value of derivative liabilities consists of non-cash gains and losses arising from the remeasurement of bifurcated derivative liabilities associated with the Company’s preferred stock at each reporting date and conversion date using a Monte Carlo simulation model. For the three months ended March 31, 2026, we experienced a loss on change in fair value of the derivative liability totaling $128,000. For the three months ended March 31, 2025, we experienced a gain on change in fair value of the derivative liability totaling $415,000.
Current report
As described in Note 2 to the condensed consolidated interim financial statements, the comparative financial information for the three months ended March 31, 2025 has been revised to correct errors related to the accounting for the Company’s Series 1 Shares and Series 2 Shares. The errors related solely to the technical classification of the instrument on the balance sheet and to the measurement of the embedded derivative liability, and had no impact on the Company’s cash position, liquidity, revenue, or operating expenses. It was always the intent of both the Company and Streeterville that the Series 1 Shares and the Series 2 Shares be classified as permanent equity. As a result, as described in Note 9, subsequent to March 31, 2026, the Company amended and restated the Series 2 Certificate of Designations to eliminate the contractual provisions that gave rise to the classification errors. Management believes these actions have effectively resolved the underlying accounting classification issues on a prospective basis.
Current report
As of March 31, 2026, we had approximately $5.75 million of cash on hand and approximately $4.76 million of working capital. We believe that our cash on hand, anticipated cash flows from operations, and financing available to us pursuant to the Equity Line and ATM Facility (subject to meeting the conditions of those financing arrangements) will be sufficient to meet our liquidity and capital resource requirements and continue operations for at least 12 months from the date of this Report. Our ability to draw on these facilities is subject to a number of conditions, many of which are outside of our control, including satisfaction of share price thresholds, beneficial ownership limitations, and other closing conditions. There is no assurance that such financing will be available when needed or on terms acceptable to us. If we are unable to access these facilities or raise alternative financing, it would be necessary to seek other sources of debt or equity capital, which may not be available or may only be available on terms that would have a material adverse effect on our results of operations and financial condition.
Removed paragraphs (21)
Previous report
Cloudastructure, Inc. (“Cloudastructure,” “we,” “us,” “our” or the “Company”) was formed under the laws of the State of Delaware on March 28, 2003. We have one wholly-owned subsidiary, Cloudastructure India Private Limited, which was formed in July 2025 in Kolkata, India, to run our remote guarding operations. We provide an award-winning cloud-based artificial intelligence (“AI”) video surveillance and Remote Guarding (as described below) service built on AI and machine learning platforms.
Previous report
General and administrative expenses increased by 65% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This increase was primarily due to an increase of $83,876 in payroll and consulting services, an increase of $80,348 in legal and recruiting services, and $19,925 in office equipment and software expenses.
Previous report
Research and development (“R&D”) expenses increased by 36% during the quarter ended in September 30, 2025 when compared to the same period in 2024. This increase is mainly due to a payroll increase of $75,908 and an increase for consulting services of $27,395 resulting from growth in the engineering workforce.
Previous report
Sales and marketing expenses increased by 95% for the three months ended September 30, 2025, compared to the sales and marketing expenses incurred during the three months ended September 30, 2024. This increase in sales and marketing expenses was due to an increase in payroll of $306,207 derived from an expansion of our sales team, an increase of $12,929 in consulting services, a $100,719 increase in marketing expenses and a $45,927 increase in office equipment and software expenses.
Previous report
Non-cash expenses increased by 51% for the three months ended September 30, 2025 compared to the same period for 2024. This increase is primarily due to an increase of $10,242 in depreciation resulting from colocation equipment purchased, $25,977 of recording of allowance for bad debt and an increase of $128,899 in stock option expenses during the three-month period ended in September 30, 2025 compared to the same period in 2024.
Previous report
Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024
Previous report
Total revenue increased by $2,354,699, or 255%, from $923,784 for the nine months ended September 30, 2024 compared to $3,278,483 for the nine months ended September 30, 2025. This increase is due a 67% increase in properties being serviced during the nine months ended September 30, 2025 compared to the same period in 2024. Cloud video subscriptions increased by 121%, remote guarding increased by 155%, hardware sales increased by 296%, and installation labor sales and other sales increased by 398% over the same period in 2024.
Previous report
General and administrative expenses increased by 80% for the nine months ended September 30, 205 compared to the nine months ended September 30, 2024. This increase was primarily due to an increase of $402,955 in payroll derived from a one-time bonus paid to employees to compensate for the salary reductions in 2024, $222,833 in executive consulting services, $106,433 in professional services (legal, audit, tax ,and recruiting), $32,440 in office equipment and software expenses, and a $38,599 increase in general insurance for the nine months ending in September 30, 2025 when compared to the same period in 2024.
Previous report
Research and development (“R&D”) expenses increased by 37% for the nine months ended September 30, 2025 compared to the same period in 2024. This increase is due to an increase of $333,402 in payroll derived from a one-time bonus paid to employees to compensate for the salary reductions in 2024, an increase of $26,982 in consulting services, and an increase of $23,001 in equipment purchases during the nine months ending in September 30, 2025 when compared to the same period in 2024.
Previous report
Sales and marketing expenses increased by 65% for the nine months ended September 30, 2025, compared to the sales and marketing expenses incurred during the nine months ended September 30, 2024. This increase is due to an increase of $630,985 in payroll derived from a one-time bonus paid to employees to compensate for the salary reductions in 2024 and the expansion of our sales team, a $69,895 increase in consulting services, a $74,499 increase in the purchase of equipment, and an increase of $245,414 in marketing expenses during the nine months ending in September 30, 2025 when compared to the same period in 2024.
Previous report
Non-cash expenses increased by 33% for the nine months ended September 30, 2025 compared to the same period in 2024. This is due to an increase of $494,458 in stock compensation expense, offset by a decrease of $104,608 in allowance for bad debt expense during the nine months ended in September 30, 2025 compared to the nine months ended in September 30, 2024.
Previous report
Net Loss
Previous report
The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2024:
Previous report
On January 29, 2025, we received gross proceeds of $6.3 million through the sale of shares of our Series 1 Convertible Preferred Stock, par value $0.0001 per share (the “Series 1 Preferred) and 720,000 shares of our Class A common stock to Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”), pursuant to the terms of a Securities Purchase Agreement we entered into with Streeterville on November 25, 2024, as subsequently amended (the “Series 1 Purchase Agreement”).
Previous report
On March 25, 2025, we received gross proceeds of $4.5 million through the sale of shares of our Series 2 Convertible Preferred Stock, par value $0.0001 per share (the “Series 2 Preferred) to Streeterville, pursuant to the terms of a Securities Purchase Agreement we entered into with Streeterville on March 21, 2025 (the “Series 2 Purchase Agreement”).
Previous report
On April 14, 2025, we received gross proceeds of $3 million through the sale of shares of our Series 2 Convertible Preferred Stock, par value $0.0001 per share (the “Series 2 Preferred) to Streeterville pursuant to the terms of a Securities Purchase Agreement we entered into with Streeterville on March 21, 2025 (the “Series 2 Purchase Agreement”).
Previous report
See Note 4 to the condensed unaudited financial statements included within this report for additional information regarding the Series 1 Purchase Agreement and the Series 2 Purchase Agreement.
Previous report
On July 2, 2025, pursuant to the respective terms of our Series 1 Preferred shares and our Series 2 Preferred shares, we issued Streeterville an additional 163 shares of Series 2 Preferred as dividend payments. On October 1 st, 2025 the Company issued 141 shares of Series 2 Preferred stock as dividend payments.
Previous report
As of September 30, 2025, we had approximately $6.4 million of cash on hand and approximately $6.5 million of working capital. We currently expect our current cash will be sufficient to fund operations through at least the third quarter of 2026; however, it is possible we will need additional funding during that period if we are unable to sustain or grow our current revenues or if our expenses increase more than currently anticipated. The Series 2 Purchase Agreement described above gives us the ability to sell additional shares of our Series 2 Preferred to Streeterville, subject to the satisfaction or waiver of several significant conditions set forth in such Series 2 Purchase Agreement. In addition, we have entered into an Equity Purchase Agreement with Atlas Sciences, LLC that gives us the ability to sell shares of our Class A common stock to Atlas Sciences, subject to the satisfaction or waiver of several significant conditions set forth in such Equity Purchase Agreement.
Previous report
We currently anticipate that the Series 2 Purchase Agreement and/or the Equity Purchase Agreement will provide us the necessary funding to continue our operations for the next 12 months; however, our ability to sell additional shares of our capital stock pursuant to the Series 2 Purchase Agreement and/or the Equity Purchase Agreement is subject to a number of conditions, many of which are out of our control. As a result, there is no assurance that we will be able to sell additional shares of our capital stock pursuant to either the Series 2 Purchase Agreement and/or the Equity Purchase Agreement. In that case, it would be necessary for us to seek alternative debt or equity financing to fund our operations; however, such alternative financing may only be available at a price and on terms and conditions that would have a material adverse effect on our results of operations and financial condition or may not be available at all.
Previous report
During the three months ended June 30, 2024, we had an outstanding obligation to the SEC pursuant to the terms of a final settlement reached with the SEC on September 27, 2023. See “Business—Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2024, for additional details regarding the settlement. This obligation was paid in full on August 9, 2024. We do not have any other long-term debt, capital lease obligations, operating lease obligations or long-term liabilities.
Reworded paragraphs (11)
Previous wording
We operated as a small Silicon Valley startup until early 2021 when we raised over $35 million in funding under Regulation A of the Securities Act of 1933, as amended (the “Securities Act”). With these funds we quickly built a sales, marketing and support structure and achieved a degree of early success in the property management space. As of the date of this report, we have contracts in place with five of the top 10 property management companies on the National Multifamily Housing Council’s (“NMHC’s”) 2024 NMCH 50 list (Greystar Real Estate Partners, Avenue5 Residential, LLC, Cushman & Wakefield, BH Management Services, LLC and FPI Management, Inc.). Our cloud-based solutions allow our customers to provide real-time safety and security solutions for their properties, as well as easily manage security across all of their locations. As of the date of this report, we are focused on expanding into more of our existing top tier customer locations and acquiring additional customers in the property management (“proptech”) space, and we anticipate entering into additional markets in 2025 and 2026.
Current wording
Cloudastructure was formed under the laws of the State of Delaware on March 28, 2003. We operated as a small Silicon Valley startup until early 2021 when we raised over $35 million in funding under Regulation A of the Securities Act. With these funds, we quickly built a sales, marketing, and support structure and achieved a degree of early success in the property management space. We went public on the Nasdaq under ticker symbol CSAI in January 2025. As of December 31, 2025, we have contracts with six of the top ten property management companies on the National Multifamily Housing Council’s (“NMHC’s”) 2025 NMHC 50 list—Greystar Real Estate Partners, Asset Living, Avenue5 Residential, LLC, Cushman & Wakefield, FPI Management, Inc., and Bozzuto. Our cloud-based solutions allow our customers to provide real-time safety and security across their properties, while efficiently managing operations across all locations. Beyond multifamily, we have seen growth in adjacent verticals, including construction and critical infrastructure, supported by strategic engagements with a leading national builder and a trucking and logistics partner. We are currently focused on expanding within our existing top-tier customer locations and acquiring additional customers in the property management (“proptech”) space, and we anticipate continuing to enter into additional new markets in 2026.
Previous wording
Our intelligent AI solution works by identifying objects (faces, license plates, animals, guns, etc.) in video footage so that property managers can quickly search for those objects. Additionally, our AI and Remote Guarding services provide a proactive response to crime. Remote Guarding combines video surveillance, AI analytics, monitoring centers, and security agents (“Remote Guarding”). Based on internal data comparing the total number of actual threatening activity alerts received by our Remote Guards, against all potentially suspicious and threatening activity alerts received by our Remote Guards, on average, for 2025 to the date of this report, our Remote Guarding services deterred over 98% of all threatening activity for our customers. We believe AI security delivers multiple benefits for many property owners, including, without limitation:
Current wording
Our intelligent AI solution works by sorting motion-based footage and subsequently indexing the people, vehicles, and objects (license plates, animals, backpacks, guns, etc.) within that footage. Eliminating static footage enables rapid search, so that property managers can rapidly search for challenges brought to their attention by tenants. Simultaneously, our AI analytics create customizable alerts to anomalous behavior as it is occurring, such as unauthorized access, loitering, and vandalism, and forward that behavior in seconds to live remote guards for further review. Our Remote Guarding software enables guards to review the footage that created the alert with live view, and, should they determine unwanted activity is occurring, they can “voice down” the perpetrator on a speaker, as well as contact security or law enforcement, thereby providing a proactive response to crime. Based on internal data comparing the total number of actual threatening activity alerts received by our Remote Guards, against all potentially suspicious and threatening activity alerts received by our Remote Guards, our Remote Guarding services deterred an average of over 98% of all threatening activity for our customers in 2025. We believe AI security delivers multiple benefits for many property owners, including, without limitation:
Previous wording
We believe that our solution is more affordable and easier to use than the various solutions that our competitors offer. Our Remote Guarding service bridges the line between AI and human intelligence. AI has the ability to monitor all cameras at the same time and all of the time, a task from which humans would fatigue. When the AI detects an event occurring, the Remote Guards are notified. The Remote Guards can then determine if escalation is required. With real-time human intervention, our Remote Guarding service can turn video surveillance from a forensic tool, used after a crime has been committed, into a real time crime prevention tool. This has the potential to greatly increase value for our customers.
Current wording
We believe that our full stack solution is more affordable, offers greater accountability, and is easier to use than the various solutions that our competitors offer. Our Remote Guarding service bridges the line between AI and human intelligence. AI has the ability to monitor all cameras at the same time and all of the time, a task from which humans would fatigue. By filtering out non-essential footage and only sending alerts for unusual or suspicious activity, our guards no longer need to watch every camera constantly. This focused monitoring allows a single Remote Guard to effectively oversee up to 50 cameras—roughly eight times more than the typical six cameras a guard can manage with traditional static surveillance—while maintaining the same level of vigilance and response accuracy. With real-time human intervention, our Remote Guarding service can turn video surveillance from a forensic tool, used after a crime has been committed, into a real time crime prevention tool.
Previous wording
Total revenue increased by $1,060,140 or 272% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. As the Company continues to grow its customer base, there was an 83% increase in the number of properties being serviced for the three months ended September 30, 2025 when compared to the same period in 2024. During the third quarter of 2025, cloud video subscriptions increased by 142%, remote guarding increased by 154%, hardware sales increased by 144%, and installation sales and other sales increased by 790% over the same period in 2024.
Current wording
Total revenue increased by $578,000, or 78%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The Company increased the number of subscribing properties by 79% during the three months ended March 31, 2026 when compared to the same period in 2025. During the first quarter of 2026, cloud video subscriptions increased by $222,000, or 193%, Remote Guarding increased by $196,000, or 187%, hardware sales increased by $71,000, or 23%, and installation sales and other sales increased by $89,000, or 43%, over the same period in 2025.
Previous wording
Our cost of goods sold increased $404,488, or 124% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This increase was the result of increased sales and completion of more installation projects in the three months ended September 30, 2025 compared to the same period in 2024. Hosting and data center bandwidth costs increased by 45%, remote guarding costs increased by 160%, hardware costs increased by 20%, and installation labor costs increased by 279% over the same period in 2024.
Current wording
Our cost of goods sold increased by $198,000, or 49%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This increase was the result of increased sales and completion of more installation projects in the three months ended March 31, 2026 compared to the same period in 2025. Hosting and data center bandwidth costs increased by $63,000, or 105%, Remote Guarding costs increased by $21,000, or 49%, hardware costs decreased by $81,000, or 47%, and installation labor costs increased by $195,000, or 148% compared to the same period in 2025.
Previous wording
As a result of the foregoing, the Company had a net loss of $2.06 million for the three months ended September 30, 2025, compared to net loss of $1.72 million for the three months ended September 30, 2024, a loss increase of approximately 14% for the current period compared to the prior period. Gross profit increased by approximately 1,070%. Gross profit was $749,277 for the three months ended September 30, 2025 and $64,018 for the three months ended September 30, 2024.
Current wording
As a result of the foregoing, the Company had a net loss of $2.77 million for the three months ended March 31, 2026, compared to a net loss of $2.01 million for the three months ended March 31, 2025, a loss increase of 38% for the current period compared to the prior period. Gross profit increased by approximately 115%. Gross profit was $710,000 for the three months ended March 31, 2026 and $330,000 for the three months ended March 31, 2025.
Previous wording
Net cash used in operating activities for the nine months ended September, 2025 was $6.35 million, which reflects our net loss of $6.6 million and increases in accounts receivable of $1,192,162, inventory of $73,630, prepaid expenses of $257,666, deferred revenue of $874,156, and $173,560 in accrued expenses. Accounts payable decreased by $429,913, and the rest was offset by $1,814,675 of stock compensation expense and $59,973 of depreciation expense.
Current wording
Net cash used in operating activities for the three months ended March 31, 2026 was $2.51 million, which reflects our net loss of $2.77 million, increases in accounts receivable of $43,000, prepaid expenses of $296,000, deferred revenue of $102,000, and accrued expenses of $41,000 and offset by decreases in inventory of $17,000, accounts payable of $126,000, $414,000 of stock compensation expense, and $24,000 of depreciation expense.
Previous wording
Net cash used in investing activities for the nine months ended September 30, 2025 was $255,623, of which $236,373 was attributable to colocation equipment for our Montana data center, $14,908 in computer equipment for new employees, and $4,342 of equipment in India.
Current wording
Net cash used in investing activities for the three months ended March 31, 2026 was $58,000, which was attributable to asset additions to colocation equipment for our Montana data center in the amount of $33,000, $21,000 for equipment for research and development, and $3,000 of equipment in India.
Previous wording
Our net cash provided by financing activities for the nine months ended September 30, 2025 was $12.1 million compared to $261,000 cash used in financing activities for the same period in 2024. This increase in cash provided by financing activities is principally attributed to $13.7 million from the issuance of preferred shares, and approximately $426,000 declared in preferred dividends, reduced by approximately $2.02 million in issuance costs.
Current wording
Our net cash used in financing activities for the three months ended March 31, 2026 was $130,000 compared to $9.36 million of cash provided by financing activities for the same period in 2025. The cash used in financing activities during the three months ended March 31, 2026 was principally attributed to $140,000 of issuance cost offset by $11,000 of proceeds from issuance of Class A common shares.
Previous wording
On April 3, 2025, pursuant to the respective terms of our Series 1 Preferred shares and our Series 2 Preferred shares, we issued Streeterville an additional 75 shares of Series 1 Preferred and an additional 7 shares of Series 2 Preferred as dividend payments.
Current wording
On January 5, 2026, pursuant to the terms of our Series 2 Shares, we issued Streeterville an additional 75 Series 2 Shares as dividend payments.
Previous wording
The condensed unaudited financial statements included within this report have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is dependent on our ability to further implement our business plan, raise capital, and generate revenues. Our financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. We have incurred operating losses and negative cash flows from operations since inception. As of September 30, 2025, we had an accumulated deficit of approximately $47.38 million. Management expects to continue to incur operating losses and negative cash flows for the foreseeable future.
Current wording
The interim condensed consolidated unaudited financial statements included within this Report have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is dependent on our ability to further implement our business plan, raise capital, and generate revenues. Our financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. We have incurred operating losses and negative cash flows from operations since inception. As of March 31, 2026, we had an accumulated deficit of approximately $53.8 million. Management expects to continue to incur operating losses and negative cash flows for the foreseeable future.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The following table summarizes our revenue by service line:
Previous report — wording carried elsewhere
Our cost of goods sold increased $1,056,571, or 138%, from $768,128 for the nine months ended September 30, 2024 compared to $1,824,700 for the nine months ended September 30, 2025. This increase was the result of increased sales and completion of more installation projects in the nine months ended September 30, 2025 compared to the same period in 2024. Hosting and data center bandwidth costs increased by 3%, remote guarding costs increased by 118%, hardware costs increased by 196%, and installation labor costs increased by 205% over the same period in 2024.
Previous report — wording carried elsewhere
The following table summarizes our cost of goods sold:
Previous report — wording carried elsewhere
Our operating expenses for the nine months ended September 30, 2025 and September 30, 2024 were as follows:
Previous report — wording carried elsewhere
As a result of the foregoing, the Company had a net loss of $6.6 million for the nine months ended September 30 2025, compared to a net loss of $5.29 million for the nine months ended September 30, 2024, a loss increase of approximately 23% for the current period compared to the prior period. Gross profit increased by approximately 853%. Gross profit was $1,483,390 in the nine months ended September 30 2025 and $155,655 for the nine months ended September 30, 2024.