UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number 000-23115 YUNHONG GREEN CTI LTD. (Exact name of registrant as specified in its charter) Illinois 36-2848943 (St ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number 000-23115 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 YUNHONG GREEN CTI LTD. (Exact name of registrant as specified in its charter) Illinois 36-2848943 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36856 HEPION PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) (Address of Principal Executive Offices) (732) 902 ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to ________. Commission file number: 001-40804 PASITHEA THERAPEUTICS CORP. (Exact name of Registrant as specified in its charter) (Address of principal executive o ...

OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 For the transition period from _________to _________ Commission File Number 0-1665 KINGSTONE COMPANIES, INC. (Exact name of registrant as specified in its charter) Delaware ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission File Number: 001-41795 PODCASTONE, INC. (Exact name of registrant as specified in its cha ...

Table of Contents U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q FIRSTHAND TECHNOLOGY VALUE FUND, INC. (Exact Name of Registrant as Specified in Charter) Maryland (State or Other Jurisdiction of Incorporation or Organization) 27-3008946 (I.R.S. Employer Identification No) 150 Almaden Boulevard, Suite 1250 San Jose, California (Address of Principal Executive Offices) 95113 (Zip Code) Telephone Number, Including Area Code: (408) 886-7096 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ____ Commission File Number: 001-36510 LARIMAR THERAPEUTICS, INC. (Exact name of registrant as specified in its charter) Delaware 20-3857670 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d ...

PART I — FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 FY2026 highlight a **$3.9 million** net loss and working capital deficiency, raising substantial doubt about going concern [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$48.9 million**, total liabilities rose to **$61.0 million** due to a new convertible note, and the stockholders' deficit widened to **$12.1 million** as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,891 | $4,119 | | Total Current Assets | $22,946 | $15,246 | | Total Assets | $48,940 | $40,517 | | Total Current Liabilities | $33,956 | $36,384 | | Total Liabilities | $61,032 | $48,929 | | Total stockholders' deficit | ($12,092) | ($8,412) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue significantly decreased to **$19.2 million**, loss from operations widened to **$4.0 million**, and net loss attributable to LiveOne increased to **$3.6 million** for the three months ended June 30, 2025 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $19,207 | $33,078 | | Cost of sales | $16,825 | $25,087 | | Loss from operations | ($4,034) | ($784) | | Net loss attributed to LiveOne | ($3,593) | ($1,169) | | Net loss per share | ($0.04) | ($0.02) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$3.0 million**, offset by **$11.8 million** provided by financing activities, resulting in a **$7.8 million** net increase in cash for the three months ended June 30, 2025 Cash Flow Summary (in thousands) | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($3,047) | $1,342 | | Net cash used in investing activities | ($1,020) | ($736) | | Net cash provided by (used in) financing activities | $11,839 | ($1,428) | | Net change in cash, cash equivalents and restricted cash | $7,772 | ($822) | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a history of losses, **$11.0 million** working capital deficiency, and **$3.9 million** net loss, raising going concern doubts, along with revenue disaggregation and financing activities - The company has a history of losses, incurred a net loss of **$3.9 million** for the quarter, used **$3.0 million** in cash from operating activities, and had a working capital deficiency of **$11.0 million**. These factors raise substantial doubt about its ability to continue as a going concern[25](index=25&type=chunk) Revenue by Type (in thousands) | Revenue Type | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Membership Services | $3,325 | $18,850 | | Advertising | $15,093 | $13,074 | | Merchandising | $789 | $1,154 | | **Total Revenue** | **$19,207** | **$33,078** | - In May 2025, the company sold Original Issue Discount Senior Secured Convertible Debentures in an aggregate principal amount of **$16,775,000** for a cash purchase price of **$15,250,000**. The debentures mature in May 2028 and accrue interest at **11.75%** per year[78](index=78&type=chunk) - Subsequent to the quarter end, on July 17, 2025, the company closed an equity offering with aggregate gross proceeds of approximately **$9.5 million**. The proceeds are intended to fund the acquisition of cryptocurrencies as part of a new treasury strategy[136](index=136&type=chunk)[137](index=137&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, significant revenue decline from OEM changes, user conversion efforts, and the new cryptocurrency treasury strategy, acknowledging going concern doubts [Consolidated Results of Operations](index=41&type=section&id=Consolidated%20Results%20of%20Operations) Total revenue decreased by **42%** to **$19.2 million**, driven by an **82%** drop in membership revenue, partially offset by a **15%** increase in advertising revenue, resulting in a widened net loss of **$3.9 million** Revenue Comparison (in thousands) | Revenue Stream | Q1 FY2026 | Q1 FY2025 | % Change | | :--- | :--- | :--- | :--- | | Membership services | $3,325 | $18,850 | -82% | | Advertising | $15,093 | $13,074 | 15% | | Merchandising | $789 | $1,154 | -32% | | **Total Revenue** | **$19,207** | **$33,078** | **-42%** | - The **82% decrease** in membership revenue was primarily a result of the change in terms with the company's largest OEM customer, which no longer subsidizes the product for new customers as of December 1, 2024[163](index=163&type=chunk) - Advertising revenue increased by **$2.0 million (15%)**, primarily attributable to a **$1.0 million** quarter-over-quarter growth in barter revenue[164](index=164&type=chunk) [Business Segment Results](index=46&type=section&id=Business%20Segment%20Results) PodcastOne revenue grew **14%** to **$15.0 million** with a narrowed operating loss, while Slacker revenue plummeted **82%** to **$3.4 million** due to OEM changes, swinging to an operating loss PodcastOne Operations (in thousands) | Metric | Q1 FY2026 | Q1 FY2025 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $14,994 | $13,159 | 14% | | Operating Loss | ($697) | ($1,366) | -49% | | Adjusted EBITDA | $580 | ($316) | -284% | Slacker Operations (in thousands) | Metric | Q1 FY2026 | Q1 FY2025 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $3,384 | $18,704 | -82% | | Operating Income (Loss) | ($196) | $4,193 | -105% | | Adjusted EBITDA | ($191) | $5,425 | -104% | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company had **$11.9 million** cash but a **$11.0 million** working capital deficiency, raising going concern doubts, addressed by **$15.25 million** from convertible debentures and **$9.5 million** from a subsequent equity offering - The company has a history of losses, a working capital deficiency of **$11.0 million** as of June 30, 2025, and used **$3.0 million** in cash from operations, raising substantial doubt about its ability to continue as a going concern[202](index=202&type=chunk) - In May 2025, the company raised **$15.25 million** in cash through the sale of Original Issue Discount Senior Secured Convertible Debentures[208](index=208&type=chunk) - In July 2025, after the quarter's end, the company completed an underwritten public offering for gross proceeds of approximately **$9.5 million**, with proceeds intended for its cryptocurrency treasury strategy and working capital[212](index=212&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This disclosure is not required as the company qualifies as a smaller reporting company - This section is not required for smaller reporting companies[225](index=225&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[227](index=227&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[229](index=229&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) A complaint filed by Sony Music Entertainment on June 6, 2025, alleges **$2.6 million** in unpaid licensing fees against Slacker and LiveOne, with LiveOne's guarantee limited to **$250,000** - On June 6, 2025, Sony Music Entertainment filed a complaint against Slacker and the Company for an alleged breach of contract, claiming **$2.6 million** in unpaid licensing fees. LiveOne's guarantee is limited to **$250,000**[110](index=110&type=chunk) [Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) Key risks include heavy reliance on its largest OEM customer, challenges in converting users, significant operating losses raising going concern doubts, substantial debt, and new risks from its cryptocurrency assets treasury strategy [Risks Related to Our Business and Industry](index=57&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Significant reliance on Tesla, with revenue dropping from **53%** to **9%**, poses a major risk, as future success depends on converting subsidized users to direct subscribers, alongside ongoing going concern doubts - The company's business is highly dependent on its relationship with Tesla, which accounted for **9%** of consolidated revenue for the three months ended June 30, 2025, a sharp decrease from **53%** for the same period in 2024[236](index=236&type=chunk) - The company's ability to convert a significant number of former subsidized Tesla drivers to direct subscribers of the LiveOne app is a major uncertainty and risk to its future business and financial condition[239](index=239&type=chunk)[240](index=240&type=chunk) - The company has a history of significant losses, with a net loss of **$3.9 million** for the quarter, an accumulated deficit of **$269.1 million**, and a working capital deficit of **$11.0 million** as of June 30, 2025[241](index=241&type=chunk) [Risks Related to Our Company](index=60&type=section&id=Risks%20Related%20to%20Our%20Company) Financial and operational risks include the ability to repay **$15.9 million** in outstanding debt, restrictive covenants, dependence on third-party music licenses, and potential Nasdaq delisting due to minimum bid price non-compliance - The company has significant indebtedness, with **$15.9 million** outstanding as of June 30, 2025, and may not have the ability to repay the amounts due at maturity[246](index=246&type=chunk)[251](index=251&type=chunk) - The company depends on third-party licenses for sound recordings and musical compositions. An adverse change to, loss of, or claim that it does not hold necessary licenses could materially harm the business[254](index=254&type=chunk) - In March 2025, the company received a notice from Nasdaq for failing to meet the **$1.00** minimum bid price requirement, creating a risk of delisting if not resolved[264](index=264&type=chunk) [Risks Related to Our Cryptocurrency Assets Treasury Strategy](index=65&type=section&id=Risks%20Related%20to%20Our%20Cryptocurrency%20Assets%20Treasury%20Strategy) New risks from the **$500 million** cryptocurrency assets treasury strategy include the novelty, volatility, and regulatory uncertainty of digital assets, custody risks like private key loss, and potential classification as an investment company - The company has announced a new cryptocurrency assets treasury strategy with board authorization up to **$500 million**, an initiative that is nascent, unproven, and subject to significant risks[269](index=269&type=chunk) - Bitcoin and other digital assets are subject to significant legal, commercial, regulatory, and technical uncertainty, which could adversely impact their price and the company's investment[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk) - The company faces risks related to the custody of its crypto assets, including the loss or destruction of private keys and cyberattacks. Insurance coverage for such losses may be insufficient[278](index=278&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued **175,649** shares to consultants and **35,763** shares to employees in unregistered transactions, and repurchased **291,459** shares as part of its publicly announced program during the quarter - During the quarter, the company issued **175,649 shares** of its common stock to various consultants and **35,763 shares** to employees, relying on exemptions from registration under the Securities Act[288](index=288&type=chunk)[289](index=289&type=chunk) Issuer Purchases of Equity Securities (April 1, 2025 – June 30, 2025) | Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | | :--- | :--- | :--- | :--- | | April 2025 | - | - | - | | May 2025 | 24,056 | $0.74 | 24,056 | | June 2025 | 267,403 | $0.81 | 291,459 | | **Total** | **291,459** | **$0.79** | **291,459** | [Defaults Upon Senior Securities](index=68&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[292](index=292&type=chunk) [Mine Safety Disclosures](index=68&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - Not applicable[293](index=293&type=chunk) [Other Information](index=68&type=section&id=Item%205.%20Other%20Information) There is no other information to disclose for this period - None[294](index=294&type=chunk) [Exhibits](index=69&type=section&id=Item%206.%20Exhibits) A list of all exhibits filed with the Form 10-Q includes corporate governance documents, financing agreements, and required CEO and CFO certifications - The report lists numerous exhibits filed, including corporate governance documents, debt and equity financing agreements, and required CEO/CFO certifications[296](index=296&type=chunk)[298](index=298&type=chunk)

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%2E%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201%2E%20Financial%20Statements%20%28Unaudited%29) Unaudited Q2 2025 financials show decreased revenue and net loss, with reduced liabilities, but going concern doubt persists [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Assets slightly decreased to $25.8 million, liabilities significantly reduced to $18.2 million, improving equity to $7.6 million Condensed Consolidated Balance Sheet Highlights (in USD) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$25,789,188** | **$26,654,456** | | Cash and cash equivalents | $760,754 | $992,589 | | Goodwill | $19,900,550 | $19,900,550 | | **Total Liabilities** | **$18,236,545** | **$25,505,392** | | Total Current Liabilities | $17,802,580 | $24,955,647 | | Derivative liability | $0 | $2,102,927 | | **Total Stockholders' Equity** | **$7,552,643** | **$1,149,064** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue decreased in Q2 2025, but significant cost reductions improved gross profit and reduced net loss for both the quarter and six-month period Three Months Ended June 30, (in USD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $6,713,587 | $7,808,425 | | Total Gross Profit | $1,636,840 | $933,909 | | Loss from Operations | $(2,329,387) | $(4,241,607) | | Net Loss | $(3,009,921) | $(8,436,887) | | Net Loss per Share | $(0.09) | $(0.69) | Six Months Ended June 30, (in USD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $13,875,909 | $15,833,839 | | Total Gross Profit | $3,418,442 | $1,640,131 | | Loss from Operations | $(4,039,132) | $(9,138,506) | | Net Loss | $(8,389,525) | $(15,046,075) | | Net Loss per Share | $(0.36) | $(1.24) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations increased to $5.3 million in H1 2025, partially offset by $5.1 million from financing, resulting in a net cash decrease Six Months Ended June 30, Cash Flow Summary (in USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,303,332) | $(2,679,622) | | Net cash used in investing activities | $0 | $(83,095) | | Net cash provided by financing activities | $5,071,497 | $3,068,338 | | **Net (decrease) increase in cash** | **$(231,835)** | **$246,407** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's cybersecurity business, ongoing going concern doubt, debt instruments, and a significant post-quarter debt-to-equity conversion - The company has **substantial doubt about its ability to continue as a going concern** due to recurring losses, cash used in operations, and a working capital deficit. Its continuation is highly dependent on raising additional capital[31](index=31&type=chunk) - In December 2024 and January 2025, the company issued convertible notes with an effective interest rate exceeding **100% per annum**. These notes were fully converted into common stock during the six months ended June 30, 2025, resulting in the derecognition of a related derivative liability[90](index=90&type=chunk)[94](index=94&type=chunk) - Subsequent to the quarter end, on August 4, 2025, the company exchanged approximately **$9.3 million** of outstanding convertible notes (principal and interest) for newly authorized Series A Preferred Stock, significantly altering its capital structure[100](index=100&type=chunk)[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased revenue but improved gross profit due to cost reductions, while liquidity remains a major concern with ongoing going concern doubt - For the first half of 2025, total gross profit more than doubled to **$3.4 million** from **$1.6 million** in H1 2024, despite a revenue decline. This was driven by significant cost-cutting measures[106](index=106&type=chunk)[116](index=116&type=chunk) - The company's working capital deficit improved to **$(14.5) million** from **$(21.5) million** at year-end 2024, mainly due to the reduction of debt and accounts payable[135](index=135&type=chunk) - The company is subject to "baby shelf" rules for its S-3 registration, limiting its ability to sell securities to no more than **one-third of its public float** (which is below **$75 million**) in any 12-month period, constraining its capital-raising ability[129](index=129&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q2 2025 revenue fell 14%, but cost reductions led to a 75% increase in gross profit and a significantly smaller operating loss for the quarter and six-month period Revenue Comparison - Three Months Ended June 30 (in USD) | Revenue Stream | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Security managed services | $6,046,950 | $7,080,326 | -15% | | Professional services | $522,804 | $632,225 | -17% | | Cybersecurity software | $143,833 | $95,874 | +50% | | **Total Revenue** | **$6,713,587** | **$7,808,425** | **-14%** | - For Q2 2025, selling, general, and administrative (SG&A) expenses decreased by **27% YoY**, and stock-based compensation fell by **49%**, primarily due to headcount reductions made in 2024[114](index=114&type=chunk)[115](index=115&type=chunk) - For the six months ended June 30, 2025, interest expense increased dramatically to **$8.9 million** from **$1.4 million** in the prior year, mainly due to the accretion of convertible notes issued in late 2024 and early 2025[116](index=116&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Significant liquidity challenges persist with a $14.5 million working capital deficit and going concern doubt, necessitating capital raises via its S-3 shelf registration - The company reported a net loss of **$8.4 million** and cash used in operations of **$5.3 million** for the first six months of 2025, highlighting the ongoing cash burn[128](index=128&type=chunk) - Financing activities provided **$5.1 million** in cash during H1 2025, primarily from stock sales (**$2.7 million**), warrant exercises (**$0.7 million**), and net borrowings, which were used to fund operations and repay other debt[141](index=141&type=chunk) - A significant portion of the company's debt as of June 30, 2025, was addressed post-quarter via an exchange agreement, converting approximately **$9.3 million** of convertible notes and accrued interest into Series A Preferred Stock[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=ITEM%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, CISO Global, Inc. is exempt from providing quantitative and qualitative disclosures about market risk - The company is exempt from providing quantitative and qualitative disclosures about market risk because it qualifies as a **smaller reporting company**[143](index=143&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204%2E%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[146](index=146&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[147](index=147&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II%2E%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=ITEM%201%2E%20Legal%20Proceedings) The company reports that it is not currently a party to any material legal proceedings - As of the filing date, the company is not involved in any **material legal proceedings**[150](index=150&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A%2E%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - The company states there have been **no material changes** from the risk factors disclosed in its 2024 Annual Report on Form 10-K[151](index=151&type=chunk) [Other Information](index=38&type=section&id=ITEM%205%2E%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading plans during Q2 2025 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading plans during the quarter ended June 30, 2025[155](index=155&type=chunk)