Investment Thesis
CISO Global is experiencing severe financial distress with persistent operating losses, negative free cash flow of -$6.3M, and critically low liquidity (0.36x current ratio) that threatens near-term viability. The company is burning cash despite positive gross margins of 24.7%, indicating operational inefficiency and inability to control operating expenses relative to declining revenues.
Strengths
- Positive gross margin of 24.7% indicates core service delivery profitability
- Moderate debt/equity ratio of 0.13x provides some balance sheet flexibility
- Total assets of $25.1M with stockholders' equity of $16.3M suggests tangible asset base
Risks
- Operating cash flow of -$6.2M with negative free cash flow indicates unsustainable cash burn and inability to fund operations from core business
- Current ratio of 0.36x signals acute liquidity crisis with insufficient current assets to cover short-term obligations
- Declining revenue (-9.4% YoY), persistent operating losses (-$32.8% margin), and negative ROE/ROA (-35.8%/-23.3%) demonstrate fundamental business deterioration
Key Metrics to Watch
- Operating cash flow trend and path to cash flow breakeven
- Revenue stabilization and gross margin sustainability
- Current ratio and cash position adequacy relative to monthly burn rate
Financial Metrics
Revenue
20.3M
Net Income
-5.9M
EPS (Diluted)
$-0.36
Free Cash Flow
-6.3M
Total Assets
25.1M
Cash
1.1M
Profitability Ratios
Gross Margin
24.7%
Operating Margin
-32.8%
Net Margin
-28.8%
ROE
-35.8%
ROA
-23.3%
FCF Margin
-30.8%
Balance Sheet & Liquidity
Current Ratio
0.36x
Quick Ratio
0.36x
Debt/Equity
0.13x
Debt/Assets
34.9%
Interest Coverage
-5.65x
Long-term Debt
2.1M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-22T10:32:10.256707 |
Data as of: 2025-09-30 |
Powered by Claude AI