SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2025

SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE

The following is a reconciliation of the numerators and denominators of the basic net income (loss) per share computations for the periods presented:

	2025			2024			2025			2024
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Numerator:
Income (loss) from continuing operations	$	2,532,428		$	(3,838,453	)	$	(5,857,097	)	$	(14,385,643	)
Less: Series A Preferred Stock dividend		(145,200	)		-			(145,200	)		-
Income (loss) from discontinued operations		-			160,567			-			(4,338,318	)
Net income (loss) attributable to common stockholders	$	2,387,228		$	(3,677,886	)	$	(6,002,297	)	$	(18,723,961	)

Denominator:
Weighted-average shares outstanding - basic		33,398,602			11,693,367			26,565,334			12,001,220

Basic income (loss) per share:
Income (loss) from continuing operations	$	0.07		$	(0.33	)	$	(0.23	)	$	(1.20	)
Gain (loss) from discontinued operations		-			0.01			-			(0.36	)
Net income (loss)	$	0.07		$	(0.32	)	$	(0.23	)	$	(1.56	)

The following is a reconciliation of the numerators and denominators of the diluted net income (loss) per share computations for the periods presented:

	2025			2024			2025			2024
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Numerator:
Net income (loss) attributable to common stockholders	$	2,387,228		$	(3,838,453	)	$	(6,002,297	)	$	(14,385,643	)
Less: Gain on extinguishment of convertible notes		(4,096,855	)		-			(4,096,855	)		-
Add: Convertible notes – interest expense		41,667			-			357,330			-
Income (loss) from discontinued operations		-			160,567			-			(4,338,318	)
Net loss	$	(1,667,960	)	$	(3,677,886	)	$	(9,741,822	)	$	(18,723,961	)

Denominator:
Weighted-average shares outstanding - basic		33,398,602			11,693,367			26,565,334			12,001,220
Dilutive effect of equity awards:
Convertible notes payable		346,845			-			721,351			-
Weighted-average shares outstanding - diluted		33,745,447			11,693,367			27,286,685			12,001,220

Dilutive income (loss) per share:
Loss from continuing operations	$	(0.05	)	$	(0.33	)	$	(0.36	)	$	(1.20	)
Gain (loss) from discontinued operations		-			0.01			-			(0.36	)
Net loss	$	(0.05	)	$	(0.32	)	$	(0.36	)	$	(1.56	)

SUMMARY OF SECURITIES EXCLUDED FROM DILUTED PER SHARE

The following potentially dilutive securities were excluded from the computation of diluted net loss per common share because their inclusion would have been anti-dilutive:

	2025		2024		2025		2024
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Stock options		4,213,392		1,550,718		4,213,392		1,550,718
Restricted stock units		1,550,000		-		1,550,000		-
Warrants		5,433,281		49,614		5,433,281		49,614
Series A Preferred Stock		9,297,894		-		9,297,894		-
Convertible notes payable		-		888,560		-		888,560
Total		20,494,567		2,488,892		20,494,567		2,488,892

SCHEDULE OF DEFERRED REVENUE

Deferred revenue consisted of the following:

SCHEDULE OF DEFERRED REVENUE

	September 30, 2025		December 31, 2024
Current:
Security managed services	$	254,898	$	461,599
Professional services		337,194		631,241
Cybersecurity software		62,864		272,475
Total deferred revenue - current	$	654,956	$	1,365,315
Long-term:
Security managed services	$	45,750	$	84,403
Total deferred revenue – long term	$	45,750	$	84,403

SCHEDULE OF PERFORMANCE OBLIGATIONS EXPECTED TO RECOGNIZED REVENUE

	Remainder of 2025		2026		2027		2028		2029		Total
Security managed services	$	114,692	$	152,283	$	25,297	$	5,290	$	3,086	$	300,648
Professional services		337,194		-		-		-		-		337,194
Cybersecurity software		60,185		2,679		-		-		-		62,864
Total deferred revenue	$	512,071	$	154,962	$	25,297	$	5,290	$	3,086	$	700,706

CISO Global, Inc. 10-Q