CISO Global, Inc. Releases Q3 10-Q Report Highlighting Financial and Operational Improvements
CISO Global, Inc., a leading provider of cybersecurity solutions, has released its Form 10-Q report for the third quarter, detailing significant financial and operational developments. The report highlights the company's efforts to streamline operations, reduce costs, and launch new products in the cybersecurity space.
Financial Highlights
- Total Revenue: $11.8 million, decreased by $1.9 million compared to the same period last year, primarily due to lower hardware sales in the Latin American region and reduced project work volumes.
- Total Gross Profit: $0.6 million, increased compared to the same period last year, reflecting improved cost management and efficiency.
- Loss from Operations: $(5.7) million, a significant improvement from the $(34.7) million loss in the prior year, driven by reduced operating expenses and absence of goodwill impairment.
- Net Loss: $(6.6) million, improved from a $(34.8) million loss in the previous year, attributed to cost reductions and absence of goodwill impairment.
- Net Loss Per Common Share - Basic and Diluted: $(0.55), improved from $(3.56) in the prior year, reflecting the overall reduction in net loss.
Business Highlights
Revenue Segments
The company reported a decrease in security managed services revenue by $1,318,293, or 11%, primarily due to higher hardware sales in the Latin American region during the previous year. Professional services revenue also decreased by $675,335, or 34%, due to lower volumes of project work in Latin America. However, cybersecurity software revenue increased by $100,283, marking a 100% rise due to the initial launch of new cybersecurity software products.
Geographical Performance
Revenue from the U.S. decreased slightly to $8,045,743 from $8,600,864. In Chile, revenue decreased to $3,691,673 from $4,891,318. Other countries contributed $95,920 compared to $234,499 in the previous year.
New Product Launches
The company launched a suite of internally developed cybersecurity software products, contributing to the increase in cybersecurity software revenue.
Future Outlook
The company is focusing on developing profitable operations and reducing overhead costs. They are actively pursuing additional debt and/or equity financing to improve liquidity and continue operations.
Operational Adjustments
The company has reduced headcount and lowered costs for insurance and lease expenses as part of its strategy to manage expenses and improve operational efficiency.
Stock-Based Compensation
There was a significant decrease in stock-based compensation expenses by $2,521,953, or 69%, due to outstanding option awards becoming fully vested and a decrease in new stock options awarded.