CISO Global Strengthens Balance Sheet, Positions for Growth and Strategic Opportunities

Rhea-AI Summary

CISO Global (NASDAQ: CISO) has significantly strengthened its financial position through two key transactions. The company has converted over $9 million of investor debt into Preferred A shares and secured a financing agreement with B. Riley providing access to up to $15 million in growth capital through Preferred B shares, both without warrants.

The cybersecurity software provider, serving over 600 clients, is now positioned to scale its operations and pursue strategic growth opportunities. CISO Global's proprietary software solutions are valued at more than $50 million pre-revenue, and the company has established important insurance partnerships to integrate its security offerings within financial assurance solutions.

Positive

• None.

Negative

• Potential dilution from future conversion of Preferred A and B shares
• Pre-revenue status of software solutions indicates unproven market acceptance

Insights

Financial Restructuring Specialist

CISO Global eliminates $9M debt, secures $15M potential capital, strengthening its balance sheet for strategic growth in cybersecurity solutions.

CISO Global has executed a significant financial restructuring that transforms its capital structure in two key ways. First, the company has converted over $9 million in investor debt to Preferred A shares without issuing any dilutive warrants. This debt-to-equity swap effectively eliminates the company's remaining investor debt while preserving these stakeholders as equity holders.

Second, CISO has secured a flexible financing agreement with B. Riley providing access to up to $15 million in growth capital through convertible Preferred B shares, again without warrants. The discretionary nature of this arrangement is particularly strategic as it allows management to access capital only when specific growth opportunities justify the potential dilution.

This restructuring significantly improves the company's balance sheet strength by eliminating debt obligations and associated interest costs while simultaneously increasing available growth capital. For a technology company in the high-growth cybersecurity sector, this financial flexibility is crucial for pursuing strategic opportunities, whether through organic growth initiatives or potential acquisitions.

The company's focus on monetizing its proprietary software solutions (valued at over $50 million pre-revenue) across its existing 600+ client base represents a substantial cross-selling opportunity. Additionally, the insurance partnerships strategy creates an innovative go-to-market approach that bundles cybersecurity solutions with financial assurance products, potentially accelerating adoption among risk-conscious business owners.

Scottsdale, AZ, Oct. 01, 2025 (GLOBE NEWSWIRE) -- CISO Global (NASDAQ: CISO) a leading provider of AI-powered cybersecurity software and compliance services, today announced it is well-positioned to accelerate sales growth and pursue strategic opportunities following significant steps to strengthen its balance sheet.

The Company recently exchanged the last remaining investor debt into Preferred A shares, with no associated warrants. This transaction eliminated more than $9 million in debt, moving it to equity now held by two long-term supporters of CISO Global.

Earlier this week, CISO Global announced a financing agreement with B. Riley that provides up to $15 million in potential growth capital through the sale of convertible Preferred B shares, also with no associated warrants. The Company retains full discretion over whether to issue these shares, and intends to do so only when the growth opportunity merits the investment.

“After a lot of hard work by our entire CISO Global team, I am pleased to report that our balance sheet is now strong,” said David Jemmett, CEO of CISO Global. “The agreement with B. Riley underscores their confidence in our business and provides flexible access to growth capital while minimizing shareholder dilution. We are well positioned to take advantage of strategic growth opportunities that maximize shareholder value.”

CISO Global is focused on scaling its cybersecurity software and services portfolio. The Company is actively marketing its proprietary software solutions—valued at more than $50 million when pre-revenue—to its base of over 600 services clients. In addition, CISO Global has forged significant insurance partnerships to integrate its security offerings within financial assurance solutions.

“We continue to see a strong sales pipeline from business owners seeking to reduce their cybersecurity risk through innovative financial-backed models,” said Kyle Young, COO of CISO Global. “By aligning with partners such as CAGI, we can deliver our software and services in ways that align with how business owners prefer to buy them.”

“This is an exciting time for CISO Global and our shareholders,” added Jemmett. “With a strong balance sheet, access to flexible growth capital, and a differentiated market offering, we are well positioned to execute on our strategic vision.”

About CISO Global

CISO Global, Inc. (NASDAQ: CISO), headquartered in Scottsdale, Arizona, is an industry leader in AI-powered cybersecurity software, managed cybersecurity, and compliance that delivers comprehensive solutions designed to protect organizations from the latest cyber threats. The company protects the most demanding businesses and government organizations against continuing and emerging security threats and ensures their compliance obligations are being met. For more information about the company, visit ciso.inc; see the following link to join the investor relations email alerts.
 
Safe Harbor Statement

This news release contains certain statements that may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements include, among others, our belief that we are an industry leader in AI-powered cybersecurity software and compliance services; our belief in our strong profit growth, our margin expansion, and our healthier balance sheet; our belief that the reduction of our current liabilities further strengthens our balance sheet; our expectation that our financial discipline has and will continue to sustain profitability; our belief in the strength of the sales pipeline of our software-related sales; our belief in the rapid growth and substantial potential of our software business; and our belief that we provide comprehensive cybersecurity solutions to our clients and are a profitable, resilient, and trusted enterprise. These statements are often, but not always, made through the use of words or phrases such as "believes," "expects," "anticipates," "intends," "estimates," “predict,” "plan," “project,” “continuing,” “ongoing,” “potential,” “opportunity,” "will," "may," "look forward," "guidance," "future" or similar words or phrases. These statements reflect our current views, expectations, and beliefs concerning future events and are subject to substantial risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. These risks may be detailed from time to time in the reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. Except as required by law, we assume no obligation and do not intend to update any forward-looking statements, whether as a result of new information, future developments, or otherwise.

For Media Inquiries:
Hilary Meyers
hilary.meyers@ciso.inc
(480) 389-3444

FAQ

How much debt did CISO Global convert to equity in October 2025?

CISO Global converted over $9 million of investor debt into Preferred A shares, with no associated warrants.

What is the size of the B. Riley financing agreement with CISO Global?

B. Riley provided CISO Global with access to up to $15 million in growth capital through the sale of convertible Preferred B shares.

How many clients does CISO Global currently serve?

CISO Global serves a base of over 600 services clients to whom they are actively marketing their proprietary software solutions.

What is the pre-revenue valuation of CISO Global's software solutions?

CISO Global's proprietary software solutions are valued at more than $50 million on a pre-revenue basis.

How will CISO Global use the B. Riley financing agreement?

CISO Global retains full discretion over issuing the Preferred B shares and intends to use them only when growth opportunities merit the investment.