Core Insights - CISO Global has been designated as a Certified Third-Party Assessment Organization (C3PAO) under the Cybersecurity Maturity Model Certification (CMMC) program, enhancing its commitment to compliance and risk management services [1][2][3] Company Overview - CISO Global, headquartered in Scottsdale, Arizona, specializes in AI-powered cybersecurity software and compliance services, aiming to protect organizations from emerging cyber threats [4] - The company’s subsidiary, TalaTek, has held FedRAMP 3PAO status since 2014, providing independent assessments to help organizations comply with federal security standards [2] Strategic Importance - The C3PAO status enables CISO Global to assist defense contractors and suppliers in meeting the Department of Defense's stringent CMMC requirements, which are critical for safeguarding the Defense Industrial Base (DIB) and national security [2][3] - The company emphasizes its expertise in advisory services and continuous monitoring to help clients achieve and maintain compliance in a dynamic threat landscape [3] Service Offerings - CISO Global provides a comprehensive range of Governance, Risk, and Compliance (GRC) services, including CMMC assessments, FedRAMP advisory, continuous monitoring, and compliance strategy development [6]

Core Viewpoint - CISO Global has entered into a private financing arrangement with B. Riley Securities, allowing the company to sell up to $15 million of convertible preferred stock to fund its growth initiatives, particularly in the cybersecurity software sector [1][4]. Financing Arrangement - The convertible preferred stock has a stated value of $1,000 per share, sold at a 4% discount, with no preferred return or dividends [2]. - The financing facility has an 18-month term, allowing CISO to draw funds at its discretion, starting with an initial increment of $2.3 million and up to $500,000 weekly, contingent on certain conditions [2][3]. - CISO retains full control over the timing and amount of sales, with no obligation to utilize the full $15 million available [2][3]. Use of Proceeds - Proceeds from the financing will be used to fund expansion initiatives, specifically scaling the cybersecurity software business in the insurance channel through a strategic relationship with CAGI [2]. Conversion Terms - The preferred stock is convertible into common stock at a price of 105% of the lowest daily VWAP over the five trading days prior to conversion for the initial draw, and 95% for subsequent draws, with a floor price of $0.40 [3]. - There are beneficial ownership caps and blocker provisions to comply with NASDAQ Listing Rules [3]. Management Commentary - The CEO of CISO Global emphasized that this investment is a significant step forward for the company, enabling accelerated growth and execution of its strategic vision [4]. - The CFO noted that the facility strengthens the company's balance sheet and positions it for financial strength [5]. Legal and Compliance - B. Riley Securities acted as the Sole Placement Agent, and legal counsel was provided by Greenberg Traurig, LLP for CISO and Lowenstein Sandler LLP for B. Riley [5].