Ciso Global Inc.

Company Overview

Business Model: CISO Global, Inc. is a cybersecurity, compliance, and software firm that partners with clients to enhance or establish their cybersecurity posture. The company offers a comprehensive suite of services across four pillars: Proprietary Software Stack, Compliance, Cybersecurity, and Organizational Culture. These services include managed security, compliance consulting, Security Operations Center (SOC) services, virtual Chief Information Security Officer (vCISO) services, incident response, certified forensics, technical assessments, and cybersecurity training. CISO Global, Inc. emphasizes a technology-agnostic approach, focusing on attracting and retaining top cybersecurity and compliance talent, and integrating acquisitions into a unified ecosystem to foster cross-pollination of solutions and enhance recurring revenue. Its proprietary software aims to streamline compliance management, threat detection, and response.

Market Position: CISO Global, Inc. operates in a highly fragmented cybersecurity market characterized by a significant supply and demand imbalance for expert professionals. The company positions itself to capitalize on this rapidly expanding market, which is driven by accelerating global connectivity, increasing cyberattacks (projected global damages from cybercrime to reach $1 trillion annually by 2031), heightened regulatory reforms, and tighter cyber insurance standards. Key differentiators include its proven acquisition strategy, expansive client portfolio (serving over 437 clients, with approximately 20% penetrated for multiple services), robust channel and partnership ecosystem, and intellectual property development. The company acknowledges that many competitors possess substantially greater financial, technical, and operational resources, broader brand recognition, and more extensive distribution channels.

Recent Strategic Developments: CISO Global, Inc. is executing a phased growth strategy.

• Phase I (Foundation of Expertise): Established a foundation through strategic acquisitions of niche cybersecurity companies, expanding talent and technical expertise across risk and compliance, cyber defense operations, security testing and training, and secure IT and architecture. No acquisitions were completed in 2025 or 2024.
• Phase II (Expanding Service Offerings): Focused on leveraging synergies from historical acquisitions to expand service offerings to existing clients, with significant cross-selling and upselling opportunities identified (only ~20% of 437 clients utilize multiple services). This phase also included building a strong channel and partnership ecosystem. A key element was heavy investment in proprietary intellectual property, leveraging machine learning (ML), artificial intelligence (AI), deep learning, neural networks, and proprietary DarkNet threat intelligence.
• Phase III (Scaling Through Product-Led Growth): Commencing in 2026, the focus shifts to fueling organic growth through commercialization and scaling of proprietary intellectual property. This involves product-led strategies, optimizing user experience, and enabling hands-free purchasing via digital interfaces to expand the client base while reducing demand on the services team, aiming for increased revenue and operating margins.

Geographic Footprint: All of CISO Global, Inc.'s revenue and long-lived assets are located within the United States. The company previously had Latin America subsidiaries (Arkavia Networks SpA, Servicios Informaticos CUATROi, S.P.A., and NLT Networks, S.P.A. and their respective subsidiaries), which were disposed of on July 1, 2024, to focus on U.S.-based operations and internally developed cybersecurity software.

Financial Performance

Revenue Analysis

Profitability Metrics (2025):

• Gross Margin: 25.63%
• Operating Margin: -33.02%
• Net Margin: -30.35%

Investment in Growth:

• R&D Expenditure: Not explicitly disaggregated, but the company states it "invested heavily in the development of software-first technologies" as part of its Phase II growth strategy.
• Capital Expenditures: $7,491 (2025)
• Strategic Investments: The company's growth strategy is built upon strategic acquisitions (though none in 2024 or 2025) and development of proprietary intellectual property.

Business Segment Analysis

Security Managed Services

Financial Performance:

• Revenue: $23,773,050 (-14.36% YoY)
• Operating Margin: Not directly provided for this segment.
• Key Growth Drivers: The decrease in revenue was primarily due to the loss of several higher-revenue customers, partially offset by newly acquired customers. Cost of revenue for this segment decreased by $1,973,745 (21%) due to lower personnel-related costs from headcount reduction and reduced costs related to service vendor management.

Product Portfolio:

• Risk compliance services (CMMC, FedRAMP, FISMA, HIPAA, HITRUST, IEC, ISO, NIST).
• Cyber Defense Operation (24/7 SOC, Managed Detection and Response (MDR), Extended Detection and Response (XDR), Security Information and Event Management (SIEM), Patch and Vulnerability Management).
• Secured Managed Services (secure network architecture design and management, proprietary cybersecurity software solutions, SOC-driven monitoring and response, regulatory compliance support, incident remediation and recovery teams, advanced firewall and perimeter security management).

Market Dynamics:

• The company aims to deliver proactive, scalable, and resilient cybersecurity solutions tailored to evolving threat landscapes and regulatory requirements.

Professional Services

Financial Performance:

• Revenue: $2,240,719 (-12.15% YoY)
• Operating Margin: Not directly provided for this segment.
• Key Growth Drivers: The decrease in revenue was primarily due to fewer customer projects. Cost of revenue for this segment decreased by $234,798 (50%) due to decreased use of consultants.

Product Portfolio:

• Incident Response and Digital Forensics (identifying, containing, and eradicating cyberattacks, environment-wide investigations).
• Security Testing and Training (red team and purple team penetration testing, simulated attack exercises, specialized cybersecurity training, industry-recognized certifications like CMMC, CompTIA, and ISC2).

Market Dynamics:

• Focuses on mitigating risk, enhancing resilience, and protecting organizational value through comprehensive cybersecurity solutions.

Cybersecurity Software

Financial Performance:

• Revenue: $592,229 (+34.35% YoY)
• Operating Margin: Not directly provided for this segment.
• Key Growth Drivers: The increase in revenue was primarily due to the initial launch of the company's suite of internally developed cybersecurity software products. Cost of revenue for this segment increased by $82,820 (69%) also due to the initial launch.

Product Portfolio:

• CISO Edge: AI-driven cloud security solution for cloud-first, hybrid, and remote environments, designed for large enterprises, government entities, and high-value networks.
• CHECKLIGHT ® Security Monitoring: Proactive security monitoring software for endpoint threat detection, backed by a financial warranty.
• Argo Security Management: Security management platform that aggregates and curates security data across various services (SIEM, MDR, XDR, GRC) for enhanced visibility.
• DISC Next Gen VPN: Token exchange-protected remote access solution.
• Skanda Breach Assessment Tool: AI-based automation and ML technologies for continuous security assessments.

Market Dynamics:

• Aims to empower organizations to enhance cybersecurity measures, protect critical assets, and maintain compliance in an evolving threat landscape, with a strategy to scale through product-led growth in Phase III.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: 502,137 shares held in treasury stock as of December 31, 2025, at a cost of $290,737. No repurchases were made in 2025 or 2024.
• Dividend Payments: CISO Global, Inc. has never paid cash dividends and does not intend to pay any for the foreseeable future, planning to retain all earnings for business development and expansion.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: None disclosed.

Balance Sheet Position (as of December 31, 2025):

• Cash and Equivalents: $1,695,994
• Total Debt: $2,260,255 (comprising $87,588 in term loans and $2,172,667 in line of credit)
• Net Cash Position: ($564,261) (Cash and Equivalents - Total Debt)
• Credit Rating: Not disclosed.
• Debt Maturity Profile:
  • 2026: $2,256,650
  • 2027: $3,605
  • Total future principal payments: $2,260,255

Cash Flow Generation (2025):

• Operating Cash Flow: ($7,971,902)
• Free Cash Flow: ($7,979,393) (Operating Cash Flow - Capital Expenditures of $7,491)
• Cash Conversion Metrics: Not explicitly detailed, but the company had a working capital deficit of $4,474,265 as of December 31, 2025, a significant improvement from $21,474,576 in 2024.

Operational Excellence

Production & Service Model: CISO Global, Inc. operates with a model where its employees are dedicated partners, not consultants, available under recurring monthly contracts. This structure is designed to mitigate challenges associated with hiring experienced cybersecurity professionals. The team of industry and subject matter experts is integrated into clients’ operations, supported by proprietary software, to offer a robust, embedded cybersecurity solution that continuously adapts to evolving threats. The company's approach is technology-agnostic, allowing compatibility with various existing client systems and tools.

Supply Chain Architecture: Key Suppliers & Partners:

• Service Vendors: The company manages service vendors associated with its client base, with reduced costs in 2025.
• Technology Partners: The company's technology-agnostic stance allows it to work with almost any business, regardless of existing systems or tools, implying a broad ecosystem of technology partners.

Facility Network:

• Corporate Headquarters: Scottsdale, Arizona, leasing approximately 3,300 square feet of office space.
• Other Offices: Leases one additional office, which is not material to operations.
• Research & Development: The company invests heavily in the development of software-first technologies, leveraging cutting-edge advancements such as machine learning, AI, deep learning, neural networks, and proprietary DarkNet threat intelligence. Specific R&D center locations are not detailed.

Operational Metrics:

• Headcount: Approximately 125 full-time-equivalent employees as of December 31, 2025. The company also utilizes independent contractors for short-duration projects or specialized knowledge.
• Client Base: Serves more than 437 clients, with approximately 20% penetrated for multiple services.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: The company's employees act as "dedicated partners" integrated into client operations, suggesting a direct sales and relationship management approach.
• Channel Partners: CISO Global, Inc. is building and expanding a strong channel and partnership ecosystem, providing value-added training, support, and partner marketing content to acquire new clients and foster long-term relationships.
• Digital Platforms: In Phase III, the company plans to accelerate growth through product-led strategies, optimizing the user experience and enabling hands-free purchasing via digital interfaces.

Customer Portfolio: Enterprise Customers:

• Client Base: Serves more than 437 clients.
• Customer Concentration: For the year ended December 31, 2025, one customer represented approximately 10% of total revenue and 17% of accounts receivable. For 2024, no single customer represented 10% or more of total revenue, but two customers represented approximately 13% and 11% of accounts receivable.

Geographic Revenue Distribution:

• United States: All of the company's revenue is generated within the United States.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The cybersecurity market is highly fragmented, characterized by a diverse landscape of established industry leaders and emerging security product vendors. It is experiencing a significant supply and demand imbalance for expert compliance and cybersecurity professionals. The market is poised for growth, driven by accelerating global connectivity, increasing cyberattacks (projected global damages from cybercrime to reach $1 trillion annually by 2031), heightened regulatory reforms, and tighter cyber insurance standards. Global cybersecurity spending is forecasted to surpass $520 billion annually by 2026, up from $260 billion in 2021. A critical talent gap exists, with 3.5 million cybersecurity roles unfilled, expected to persist through 2025.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: CISO Global, Inc. competes with technology companies, consulting firms, telecommunication companies, technology resellers, hardware and software providers, and other entities. Many competitors have substantially greater financial, technical, and operational resources, broader brand recognition, larger sales and marketing infrastructures, deeper customer relationships, more extensive distribution channels, and mature intellectual property portfolios. Cloud-based service providers also introduce increased competition.

Emerging Competitive Threats: The company anticipates encountering new competitors as it expands into adjacent markets. The rapid evolution of AI technology also presents new risks and challenges, with competitors potentially incorporating AI more quickly or successfully.

Competitive Response Strategy: CISO Global, Inc. leverages its core strengths: frontline expertise, comprehensive integrated solutions, ease of deployment and versatility, strong reputation and consulting expertise, and a disciplined acquisition strategy (though no acquisitions in 2024-2025). The company is committed to innovation and operational excellence, empowering organizations to stay resilient and secure.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Industry Competition: Highly competitive landscape with many competitors having greater resources, brand recognition, and market share. This could lead to loss of customers, reduced revenue, increased expenses, or margin pressure.
• Sales Cycle Length: Long and unpredictable sales cycles require considerable time and expense, introducing uncertainty in revenue forecasting.
• AI Initiatives: Investments in AI/ML technology may not be successful, or competitors may integrate AI more quickly, impairing competitiveness and reducing demand. AI also poses ethical issues (privacy, bias, discrimination) and regulatory scrutiny risks.
• Economic Conditions: Adverse macroeconomic conditions (higher interest rates, inflation, recessions) can impact customer demand, spending priorities, and credit availability, negatively affecting business operations and financial results.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Independent Contractor Dependency: Reliance on independent contractors for specialized services; inability to secure or manage them effectively could delay business processes and cause economic loss.
• Service Level Commitments: Failure to meet contractual service level commitments could lead to partial refunds, contract terminations, and reputational damage.
• Product Liability & Warranty Claims: Solutions are subject to warranty claims from defects or misuse, potentially leading to substantial liability, legal costs, and reputational harm. The CHECKLIGHT ® financial warranty exposes the company to potential costs if insurance coverage is insufficient or denied.
• Cybersecurity Breaches: As a cybersecurity firm, breaches of its own network or IT security could severely impact operations, financial condition, and reputation, leading to legal/regulatory risks, lawsuits, and loss of client trust.

Financial & Regulatory Risks

Market & Financial Risks:

• Need for Capital: The company has incurred significant operating losses and has a working capital deficit, requiring additional capital raises (equity or debt) to achieve profitability and growth, which may dilute existing stockholders.
• Customer Concentration: One customer represented 10% of total revenue and 17% of accounts receivable in 2025, exposing the company to risks if this customer reduces business, renegotiates terms, or fails to pay.
• Revenue Recognition: Subscription revenue is recognized ratably over the contract term (1-3 years), delaying the reflection of new business upturns or downturns in operating results.
• Debt Obligations: Incurring additional debt subjects the company to restrictive covenants and debt service obligations, potentially limiting operational flexibility and increasing default risk.
• Going Concern Uncertainty: Recurring losses, negative operating cash flows, and a working capital deficit raise substantial doubt about the company's ability to continue as a going concern.
• Nasdaq Delisting Risk: The common stock bid price fell below $1.00, triggering a Nasdaq non-compliance notification, with a deadline of June 29, 2026, to regain compliance. Failure could lead to delisting.
• Series B Preferred Stock: The issuance and potential conversion of Series B Preferred Stock may dilute common stockholders and depress the stock price. Redemption obligations upon certain triggering events (e.g., delisting, low stock price) could materially harm liquidity.

Regulatory & Compliance Risks:

• Evolving Cybersecurity Regulations: Increasingly complex federal and state cybersecurity regulations and standards may require substantial investment in development capabilities and could impact service offerings and profitability.
• International Operations: Expansion into international and emerging markets exposes the company to compliance with foreign regulations, geopolitical/economic risks, changes in trade policies, and anti-corruption laws.
• Legal Proceedings: Potential involvement in disputes and litigation could incur significant costs, divert management attention, and negatively impact business and financial condition.

Geopolitical & External Risks

Geopolitical Exposure:

• International Operations: Risks from operating in emerging markets include political and economic volatility, currency fluctuations, and compliance with anti-corruption laws.
• Trade Relations: Not explicitly detailed, but general geopolitical instability and changes in trade policies are mentioned as risks.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Machine Learning (ML) & Artificial Intelligence (AI): Heavy investment in developing software-first technologies leveraging cutting-edge advancements in ML, AI, deep learning, and neural networks.
• DarkNet Threat Intelligence: Integration of proprietary DarkNet threat intelligence into software solutions.
• Cybersecurity Software Suite: Development of a comprehensive suite of proprietary software solutions including ARGO Security Management, CISO Edge Cloud Security Platform, CHECKLIGHT ® Security Monitoring, DISC Next Gen VPN, and Skanda Breach Assessment Tool.

Innovation Pipeline: The company is focused on the commercialization and scaling of its proprietary intellectual property in Phase III, aiming for product-led growth and hands-free purchasing via digital interfaces.

Intellectual Property Portfolio: CISO Global, Inc. relies on a combination of trademarks, patents, copyrights, trade secrets, license agreements, intellectual property assignment agreements, confidentiality procedures, non-disclosure agreements, and employee non-disclosure and invention assignment agreements. The company intends to pursue additional intellectual property protections where appropriate. While legal protections are important, success is also driven by workforce expertise and continuous innovation.

Technology Partnerships: The company's technology-agnostic stance allows it to work compatibly with almost any business, regardless of existing systems or tools, implying a flexible approach to technology integration rather than exclusive partnerships.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The company's future success relies on its ability to attract, hire, and retain top-tier talent, particularly within senior management, engineering, and technical teams. The resignation of the Interim Chief Operating Officer, Kyle J. Young, was effective January 2, 2026.

Board Composition: The Board of Directors consists of five members. Four directors (Phillip Balatsos, Andrew Hancox, Mohsen (Michael) Khorassani, and Andrew K. McCain) are considered independent. David G. Jemmett is an employee director. The Board has three standing committees: Audit Committee, Compensation Committee, and Governance and Nominating Committee.

• Audit Committee: Phillip Balatsos, Andrew Hancox, Mohsen (Michael) Khorassani (Chair). All are financially literate and considered "audit committee financial experts."
• Compensation Committee: Phillip Balatsos, Andrew Hancox (Chair), Mohsen (Michael) Khorassani.
• Governance and Nominating Committee: Phillip Balatsos, Andrew Hancox, Mohsen (Michael) Khorassani (Chair).

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 125 full-time-equivalent employees as of December 31, 2025.
• Geographic Distribution: Acquired talent spans across the United States.
• Skill Mix: Focus on highly trained and seasoned security professionals, including compliance and cybersecurity experts with diverse skill sets. The company also utilizes independent contractors for specialized knowledge or short-duration projects.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Prioritizes identifying, attracting, and retaining top cybersecurity and compliance talent through acquisitions, direct hiring, and employee incentivization (e.g., stock options).
• Retention Metrics: Not explicitly disclosed, but the company strategically deploys equity-based grants with thoughtful vesting schedules to align employee success with company performance and foster long-term commitment.
• Employee Value Proposition: Comprehensive compensation and benefits programs, including competitive salaries, performance-based incentive plans, pensions, healthcare and insurance coverage, paid time off, and family leave, tailored to regional requirements.

Diversity & Development:

• Diversity Metrics: The company believes a combination of diverse team members and an inclusive culture contributes to its success. Specific metrics are not disclosed.
• Development Programs: Not explicitly detailed, but the company emphasizes cultivating an environment where talent thrives and has opportunities for growth.
• Culture & Engagement: Committed to fostering a healthy, safe, and supportive work environment, recognizing that people are its greatest asset.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: CISO Global, Inc. is committed to protecting the environment and attempts to mitigate any negative impact of its operations.

• Emissions Targets: Monitors resource use, improves efficiency, and reduces emissions and waste. Specific targets are not disclosed.
• Carbon Neutrality: No specific commitments or milestones disclosed.
• Renewable Energy: No specific adoption or sourcing strategies disclosed.

Supply Chain Sustainability:

• Supplier Engagement: Standard operating procedures apply to employees and subcontractors overseeing and conducting technical protocols for third-party vendor selection and oversight.
• Responsible Sourcing: No specific details on materials sourcing or conflict minerals compliance.

Social Impact Initiatives:

• Community Investment: Not explicitly detailed, but the company states it is a trusted cybersecurity expert providing safe, efficient, and sustainable services to its existing and new communities.
• Product Impact: No specific details on accessibility, digital divide, or social benefit applications.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Not explicitly detailed in the filing.
• Economic Sensitivity: The company's operations, demand for services, and overall business performance are subject to general macroeconomic conditions, including higher interest rates, inflation, recessions, or economic slowdowns. Adverse economic conditions can lead to changes in customer behavior, demand patterns, and spending priorities.
• Industry Cycles: The cybersecurity market is described as high-growth, driven by increasing cyberattacks and regulatory pressures, suggesting a less cyclical demand for core services, but economic conditions can still impact spending.

Planning & Forecasting: The unpredictability of macroeconomic conditions makes it difficult to accurately forecast and plan for future business activities. The company's sales cycles are often long and unpredictable, requiring significant time and resources, which introduces considerable uncertainty into revenue and operating results forecasting.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: CISO Global, Inc. is not aware of specific regulations governing cybersecurity firms directly, but it serves industries subject to federal cybersecurity regulations such as HIPAA (healthcare), CMMC (federal contractors), and FISMA (federal agencies). These regulations mandate protection of systems and information but often require only a "reasonable" level of security without specifying exact measures.

• International Compliance: Expansion into international markets exposes the company to compliance with foreign regulations and multi-jurisdictional requirements.

Trade & Export Controls:

• Export Restrictions: Not explicitly detailed, but international operations inherently carry risks related to changes in trade policies and non-compliance with international laws.
• Sanctions Compliance: The company's CHECKLIGHT ® warranty terms prohibit customers from using warranty claim payments to fund payments to OFAC-listed persons or those subject to U.S. sanctions, indicating awareness and compliance efforts.

Legal Proceedings: CISO Global, Inc. is currently not a party to any material legal proceedings. The company investigates claims as they arise and accrues estimates for resolutions when losses are probable and reasonably estimable.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 0.00% for both 2025 and 2024.
• Geographic Tax Planning: The company files federal and state income tax returns in various jurisdictions.
• Tax Reform Impact: The company is an "emerging growth company" and has elected to use the extended transition period for complying with new or revised accounting standards, including ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which will be adopted for annual periods beginning after December 15, 2025.
• Deferred Tax Assets: As of December 31, 2025, the company had approximately $30.76 million in total deferred tax assets, primarily from net operating loss carryforwards ($10.81 million federal, $41.70 million state) and stock-based compensation ($12.01 million).
• Valuation Allowance: A full valuation allowance of $30.61 million was provided for net deferred tax assets as of December 31, 2025, due to uncertainty surrounding future realization and cumulative losses.

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage: CISO Global, Inc. maintains insurance to protect against claims associated with its products and services, including a specific insurance policy to cover potential liability arising from the limited financial warranty offered to CHECKLIGHT ® customers. The company also maintains director and officer liability insurance coverage.
• Risk Transfer Mechanisms: The company indemnifies its officers and directors against certain liabilities. The CHECKLIGHT ® warranty is backed by an insurance policy.
• Liabilities in Excess of Coverage: There is a risk that existing insurance coverages may not fully protect against all operational risks or that additional insurance may not be available on favorable terms. Claims or liabilities exceeding coverage could materially adversely affect the business.