Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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 September 30, 2023

☐ 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: 001-41227

CISO GLOBAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

83-4210278

(State or other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

6900 E. Camelback Road, Suite 900, Scottsdale, Arizona		85251
(Address of Principal Executive Offices)		(Zip Code)

(480) 389-3444

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.00001 par value		CISO		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act: ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 13, 2023, there were 180,176,477 shares of the registrant’s common stock outstanding.

CISO GLOBAL, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023

TABLE OF CONTENTS

		Page

PART I. FINANCIAL INFORMATION		5

ITEM 1.	Financial Statements (unaudited)	5

	Condensed Consolidated Balance Sheets	5

	Condensed Consolidated Statements of Operations and Comprehensive Loss	6

	Condensed Consolidated Statements of Changes in Stockholders’ Equity	7

	Condensed Consolidated Statements of Cash Flows	8

	Notes to Condensed Consolidated Financial Statements	9

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	27

ITEM 4.	Controls and Procedures	28

PART II. OTHER INFORMATION		29

ITEM 1.	Legal Proceedings	29

ITEM 1A.	Risk Factors	29

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

ITEM 3.	Defaults Upon Senior Securities	29

ITEM 4.	Mine Safety Disclosures	29

ITEM 5.	Other Information	29

ITEM 6.	Exhibits	29

SIGNATURES		30

FORWARD-LOOKING STATEMENTS

The information contained in this report should be read in conjunction with the financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q. Certain statements made in this report are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are based upon beliefs of, and information currently available to, us as of the date hereof, as well as estimates and assumptions made by us. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used herein, the words “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue” or the negative of these terms and similar expressions identify forward-looking statements. Such statements reflect our current view with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including the risks relating to our business, industry, and our operations and results of operations. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Forward-looking statements made in this Quarterly Report on Form 10-Q include statements about:

●	that we continually seek to identify and acquire cybersecurity talent to expand our service scope and geographical coverage to provide the best possible service for our clients;

●	our belief that our cash balance as of the date of this filing, together with anticipated revenues, will be sufficient to meet our anticipated cash requirement for the near term;

●	the doubt about our ability to continue as a going concern;

●	our efforts to developing our business, reducing overhead costs, and capital raising;

●	our plan to improve our liquidity by a planned reduction in overhead costs and actively pursuing additional debt and/or equity financing through discussions with investment bankers and private investors;

●	our estimate for indirect tax liabilities; and

●	our expectation that we will incur further losses through the end of 2023.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks detailed from time to time in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, any of which may cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. These risks may cause our or our industry’s actual results, levels of activity, or performance to be materially different from any future results, levels of activity, or performance expressed or implied by these forward-looking statements.

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expenses during the periods presented. Our consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. The following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CISO GLOBAL, INC. and subsidiaries

CONDENSED Consolidated Balance Sheets

(Unaudited)

	September 30,			December 31,
	2023			2022

ASSETS

Current Assets:
Cash and cash equivalents	$	770,480		$	1,833,163
Accounts receivable, net		6,070,619			7,862,297
Inventory		72,572			11,803
Prepaid cost of revenue		2,989,300			2,634,667
Prepaid expenses and other current assets		1,422,164			1,724,650
Contract asset		264,776			332,215
Total Current Assets		11,589,911			14,398,795

Property and equipment, net		3,983,840			4,680,495
Right of use asset, net		824,178			255,687
Intangible assets, net		4,164,782			8,475,229
Goodwill		35,557,637			76,664,017
Other assets		19,375			22,592

Total Assets	$	56,139,723		$	104,496,815

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable and accrued expenses	$	13,161,294		$	8,310,337
Deferred revenue		4,863,166			4,472,140
Lease liability		161,154			121,731
Loans payable		3,727,647			7,758,831
Convertible notes payable		1,050,000			2,550,000
Total Current Liabilities		22,963,261			23,213,039

Long-term Liabilities:
Loans payable, net of current portion		3,277,174			4,243,802
Convertible notes payable, related party		5,000,000			-
Lease liability, net of current portion		706,903			159,205
Deferred tax liability		-			435,678

Total Liabilities		31,947,338			28,051,724

Commitments and Contingencies		-			-

Stockholders’ Equity:
Common stock, $.00001 par value; 300,000,000 shares authorized; 178,176,477 and 146,395,807 issued and outstanding at September 30, 2023 and December 31, 2022, respectively		1,782			1,464
Preferred stock, $.00001 par value; 50,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		-			-
Additional paid-in capital		170,365,244			153,168,984
Accumulated other comprehensive income		1,290,578			1,062,247
Accumulated deficit		(147,465,219	)		(77,787,604	)
Total Stockholders’ Equity		24,192,385			76,445,091

Total Liabilities and Stockholders’ Equity	$	56,139,723		$	104,496,815

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

CISO GLOBAL, INC. and subsidiaries

CONDENSED Consolidated STATEMENTS OF OPERATIONS

(Unaudited)

	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Revenue:
Security managed services	$	12,266,690		$	10,061,304		$	37,623,328		$	28,489,698
Professional services		1,798,431			1,191,728			5,693,468			3,320,689
Total revenue		14,065,121			11,253,032			43,316,796			31,810,387

Cost of revenue:
Security managed services		5,574,180			4,310,378			18,444,204			10,678,728
Professional services		234,549			182,413			683,582			455,902
Cost of payroll		5,458,001			4,978,768			16,514,436			14,132,602
Stock based compensation		317,851			857,950			3,783,116			4,805,423
Total cost of revenue		11,584,581			10,329,509			39,425,338			30,072,655
Total gross profit		2,480,540			923,523			3,891,458			1,737,732

Operating expenses:
Professional fees		745,426			624,391			3,086,365			2,192,600
Advertising and marketing		119,814			245,495			288,984			641,340
Selling, general and administrative		5,557,328			6,684,747			21,178,969			15,856,705
Stock based compensation		677,231			1,791,724			6,421,245			6,761,283
Impairment of goodwill		-			-			41,038,172			-
Total operating expenses		7,099,799			9,346,357			72,013,735			25,451,928

Loss from operations		(4,619,259	)		(8,422,834	)		(68,122,277	)		(23,714,196	)

Other income (expense):
Other income		(121,689	)		29,968			(68,470	)		134,447
Interest expense, net		(766,315	)		(108,233	)		(1,922,546	)		(293,991	)

Total other income (expense)		(888,004	)		(78,265	)		(1,991,016	)		(159,544	)

Loss before income taxes		(5,507,263	)		(8,501,099	)		(70,113,293	)		(23,873,740	)

Benefit from income taxes		-			-			(435,678	)		-

Net loss		(5,507,263	)		(8,501,099	)		(69,677,615	)		(23,873,740	)
Foreign currency translation adjustment		(1,392,395	)		(908,987	)		228,331			(2,207,256	)

Comprehensive loss	$	(6,899,658	)	$	(9,410,086	)	$	(69,449,284	)	$	(26,080,996	)

Net loss per common share - basic and diluted	$	(0.03	)	$	(0.06	)	$	(0.44	)	$	(0.17	)

Weighted average shares outstanding - basic		178,077,576			142,295,780			159,391,428			136,764,168
Weighted average shares outstanding - diluted		178,077,576			142,295,780			159,391,428			136,764,168

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

CISO GLOBAL, INC. and subsidiaries

CONDENSED Consolidated STATEMENTS of CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)


												Accumulated
									Additional			Other
	Common Stock				Preferred Stock				Paid-in			Comprehensive			Accumulated
	Shares		Amount		Shares		Amount		Capital			Gain/(Loss)			Deficit			Total

Balance at January 1, 2023		146,395,807	$	1,464		-		-	$	153,168,984		$	1,062,247		$	(77,787,604	)	$	76,445,091

Stock based compensation - stock options		-		-		-		-		9,190,027			-			-			9,190,027
Stock based compensation - common stock		3,500,000		35		-		-		733,465			-			-			733,500
Stock issued for cash		26,739,853		268		-		-		6,681,930			-			-			6,682,198
Exercise of options		1,040,817		10		-		-		491,843			-			-			491,853
Stock issued for SB Cyber acquisition		500,000		5		-		-		98,995			-			-			99,000
Foreign currency translation		-		-		-		-		-			228,331			-			228,331
Net loss		-		-		-		-		-			-			(69,677,615	)		(69,677,615	)
Balance at September 30, 2023		178,176,477	$	1,782		-	$	-	$	170,365,244		$	1,290,578		$	(147,465,219	)	$	24,192,385

Balance at January 1, 2022		125,852,971	$	1,258		-		-	$	69,309,369		$	-		$	(44,012,422	)	$	25,298,205
Balance		125,852,971	$	1,258		-		-	$	69,309,369		$	-		$	(44,012,422	)	$	25,298,205

Stock based compensation - stock options		-		-		-		-		10,432,048			-			-			10,432,048
Stock based compensation - common stock		736,819		7		-		-		1,592,977			-			-			1,592,984
Stock issued for cash		304,608		3		-		-		1,040,962			-			-			1,040,965
Exercise of options		2,459,809		25		-		-		1,359,239			-			-			1,359,264
Stock issued for cash in public offering		2,060,000		21		-		-		9,521,777			-			-			9,521,798
Stock issued for True Digital acquisition		8,229,000		82		-		-		34,726,298			-			-			34,726,380
Stock issued for VelocIT acquisition		256,678		3		-		-		(3	)		-			-			-
Stock issued for Red74 acquisition		34,000		-		-		-		-			-			-			-
Stock issued for Creatrix acquisition		600,000		6		-		-		3,629,994			-			-			3,630,000
Stock issued for CyberViking acquisition		499,000		5		-		-		1,836,315			-			-			1,836,320
Stock issued for CUATROi acquisition		2,166,922		22		-		-		6,847,452			-						6,847,474
Stock issued for NLT Secure acquisition		2,745,872		27		-		-		6,919,570			-			-			6,919,597
Foreign currency translation		-		-		-		-		-			(2,207,256	)		-			(2,207,256	)
Net loss		-		-		-		-		-			-			(23,873,740	)		(23,873,740	)
Balance at September 30, 2022		145,945,679	$	1,459		-	$	-	$	147,215,998		$	(2,207,256	)	$	(67,886,162	)	$	77,124,039
Balance		145,945,679	$	1,459		-	$	-	$	147,215,998		$	(2,207,256	)	$	(67,886,162	)	$	77,124,039

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

CISO GLOBAL, INC. and subsidiaries

CONDENSED Consolidated STATEMENTS OF CASH FLOWS

(Unaudited)

	September 30, 2023			September 30, 2022
	Nine Months Ended
	September 30, 2023			September 30, 2022
Cash flows from operating activities:
Net loss	$	(69,677,615	)	$	(23,873,740	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation - stock options		9,190,027			10,432,048
Stock based compensation - common stock		733,500			1,134,658
Depreciation and amortization		2,411,989			2,138,493
Right of use amortization		165,291			184,167
Other		93,199			50,362
Impairment of intangible assets		3,023,709			-
Impairment of goodwill		40,651,586			-
Changes in operating assets and liabilities:
Accounts receivable, net		1,689,837			887,816
Inventory		(66,296	)		(106,246	)
Contract assets		67,440			(330,067	)
Prepaids and other current assets		(232,829	)		(1,952,488	)
Accounts payable and accrued expenses		5,129,336			3,003,623
Lease liability		(307,816	)		(154,816	)
Settlement liability		-			(470,000	)
Deferred revenue		424,144			1,205,893

Net cash used in operating activities		(6,704,498	)		(7,850,297	)

Cash flows from investing activities:

Purchases of property and equipment		(166,278	)		(510,973	)
Cash (paid)/acquired in acquisitions, net		30,430			(5,533,244	)

Net cash used in investing activities		(135,848	)		(6,044,217	)

Cash flows from financing activities:
Proceeds from sale of common stock		6,682,198			10,562,763
Proceeds from stock option exercise		491,853			1,359,264
Proceeds from loan payable		4,448,641			5,000,000
Proceeds from convertible notes payable, related party		5,000,000			-
Proceeds from convertible note payable		1,050,000			1,000,000
Proceeds from line of credit		173,477			86,585
Payment on line of credit		(174,547	)		-
Payment on loans payable		(9,206,420	)		(369,829	)
Payment on notes payable, related party		-			(1,575,510	)
Payment of convertible note payable		(2,550,000	)		-
Payment of debt issuance cost		(137,500	)		(25,000	)

Net cash provided by financing activities		5,777,702			16,038,273

Effect of exchange rates on cash and cash equivalents		(39	)		19,539

Net (decrease)/increase in cash and cash equivalents		(1,062,683	)		2,163,298

Cash and cash equivalents - beginning of the period		1,833,163			2,725,035

Cash and cash equivalents - end of the period	$	770,480		$	4,888,333

Supplemental cash flow information:
Cash paid for:
Interest	$	2,094,020		$	224,813
Income taxes	$	-		$	-
Supplemental disclosure of non-cash transactions:
Operating lease assets obtained in exchange for operating lease obligations	$	733,782		$	476,986
Common stock issued in VelocIT acquisition	$	-		$	-
Common stock issued in RED 74 acquisition	$	-		$	-
Common stock issued in NLT Secure acquisition	$	-		$	6,919,597
Common stock issued in SB Cyber acquisition	$	99,000		$	-
Common stock issued in acquisition	$	99,000		$	-

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

CISO GLOBAL, INC. and subsidiaries

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Unless otherwise indicated or the context requires otherwise, the terms “we,” “us,” “our,” and “our company” refer to CISO Global, Inc., a Delaware corporation and its wholly owned subsidiaries. Unless otherwise specified, all dollar amounts are expressed in United States dollars.

NOTE 1 – ORGANIZATION OF BUSINESS AND GOING CONCERN

Description of the Business

We are a cybersecurity and compliance company comprised of highly trained and seasoned security professionals who work with clients to improve their cybersecurity posture. We provide a full range of cybersecurity consulting and related services, encompassing strategy and risk, cyber defense operations, architecture and engineering, and readiness and resiliency. Our services include secured managed services, compliance services, security operations center (“SOC”) services, virtual Chief Information Security Officer (“vCISO”) services, incident response, digital forensics, technical assessments, and cybersecurity training. Our goal is to create a culture of security and to help quantify, define, and capture a return on investment from information technology and cybersecurity spending.

We believe that culture is the foundation of every successful cybersecurity and compliance program, as it affects every area of the business, from policies and practices to technology settings and configurations. To deliver that outcome, we offer a holistic approach that provides these services in a unified way from a dedicated team of subject matter experts. In contrast to the majority of cybersecurity firms that are focused on a specific technology or service, we seek to differentiate ourselves by focusing on leveraging teams of highly sought-after practitioners, as well as designing best-in-class solutions to accompany them. We continually seek to identify and acquire cybersecurity talent to expand our service scope and geographical coverage to provide the best possible service for our clients.

We believe that bringing together a world-class team of technological experts with multi-faceted expertise in the critical aspects of cybersecurity is key to providing solutions to our clients. As we help them build cyber resilience, we recognize that today’s business environment suffers from widespread cybersecurity ineffectiveness due to key challenges in attracting and retaining cybersecurity talent. This workforce shortfall drives consistent demand for both cybersecurity expertise and cutting edge, automated solutions that can supplement in-house teams’ existing capabilities. Our goal is to leverage thought leadership and innovation to help our clients create a culture of security across their people, processes, and technologies, helping them quantify, define, and capture a return on investment from information technology and cybersecurity spending. Our brand is founded on and rallies around a simple truth that experts learn through experience, “Cyber security is a Culture, not a Product™.”

Basis of Presentation

Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), the instructions to Form 10-Q pursuant to regulations of the SEC, and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated.

Our interim financial statements are unaudited, and in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for the interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2023. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with our audited financial statements for the year ended December 31, 2022.

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2023, we incurred a net loss of $69,677,615 and had negative cash flows from operations of $6,704,498. At September 30, 2023, we had total current assets of $11,589,911 and total current liabilities of $22,963,261, resulting in a working capital deficit of $11,373,350. At September 30, 2023, we had cash and cash equivalents of $770,480.

Based on our current business plan, we believe our cash balance as of the date of this filing, together with anticipated revenues, will be sufficient to meet our anticipated cash requirement for the near term. However, there can be no assurance that the current business plan will be achievable. Such conditions raise substantial doubts about our ability to continue as a going concern for one year from the date the unaudited condensed consolidated financial statements are issued.

Our existence is dependent upon our ability to develop profitable operations. We are devoting substantially all of our efforts to developing our business, reducing overhead costs, and raising capital, although there can be no assurance that our efforts will be successful. No assurance can be given that our actions will result in profitable operations or the resolution of liquidity problems. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should we be unable to continue as a going concern.

In order to improve our liquidity, in addition to a planned reduction in overhead costs, we are actively pursuing additional debt and/or equity financing through discussions with investment bankers and private investors. There can be no assurance that we will be successful in our efforts to secure additional financing.

The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should we be unable to continue as a going concern.

Reclassifications

Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.

Use of Estimates

GAAP requires management to make estimates and assumptions that affect the reported amounts in our unaudited condensed consolidated financial statements. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results could materially differ.

We believe the critical accounting policies discussed below affects our more significant judgments and estimates used in the preparation of the accompanying unaudited condensed consolidated financial statements. Significant estimates include the allowance for doubtful accounts, the carrying value of intangible assets and goodwill, deferred tax asset and valuation allowance, the estimated fair value of assets acquired, liabilities assumed and stock issued in business combinations, and assumptions used in the Black-Scholes option pricing model, such as expected volatility, risk-free interest rate, share price, and expected dividend rate.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue

Our revenue is derived from two major types of services to clients: security managed services and professional services. With respect to security managed services, we provide culture education and enablement, tools and technology provisioning, data and privacy monitoring, regulations and compliance monitoring, remote infrastructure administration, and cybersecurity services, including, but not limited to, antivirus and patch management. With respect to professional services, we provide cybersecurity consulting, compliance auditing, vulnerability assessment and penetration testing, and disaster recovery and data backup solutions.

Our revenue is categorized and disaggregated as reflected in our unaudited condensed consolidated statement of operations as follows:

Security Managed Services

Security managed services revenue primarily consists of compliance, security managed services, SOC managed services, and vCISO. We considered these services to be a single performance obligation, and revenue is recognized as services and materials are provided to the customer.

Professional Services

Professional services revenue primarily consists of technical assessments, incident response and forensics, training, and other cybersecurity services. We considered these services to be a single performance obligation, and revenue is recognized in the period in which the performance obligations are satisfied.

Accounts Receivable

Accounts receivable are reported at their outstanding unpaid principal balances, net of allowances for doubtful accounts. We periodically assess our accounts and other receivables for collectability on a current expected credits loss basis. We provide for allowances for doubtful receivables based on management’s estimate of uncollectible amounts considering age, collection history, and any other factors considered appropriate. Payments are generally due within 30 days of invoice. We write off accounts receivable against the allowance for doubtful accounts when a balance is determined to be uncollectible. As of September 30, 2023 and December 31, 2022, our allowance for doubtful accounts was $224,629 and $270,011, respectively.

Inventory

Inventory consists of computer equipment for sale to customers. Inventory is measured using the first-in, first-out method and stated at lower of cost or net realizable value as of September 30, 2023 and December 31, 2022. The value of inventories is reduced for excess and obsolete inventories. We monitor inventory to identify events that would require impairment due to obsolete inventory and adjust the value of inventory when required. We recorded no inventory impairment losses for the three and nine months ended September 30, 2023 and 2022.

Net Loss per Common Share

Net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. For dilutive securities, all outstanding options, warrants, and convertible debt is considered potentially outstanding common stock. The dilutive effect, if any, of stock options and warrants is calculated using the treasury stock method. All outstanding convertible notes are considered common stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. Since the effect of common stock equivalents is anti-dilutive with respect to losses, the options and shares issuable upon conversion thereof have been excluded from our computation of net loss per common share for the three and nine months ended September 30, 2023 and 2022.

The following tables summarize the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to our net loss position even though the exercise price could be less than the average market price of the common shares:

	September 30, 2023		December 31, 2022
Stock options		33,820,457		36,397,521
Warrants		744,200		144,200
Convertible debt		4,166,667		430,718
Total		38,731,324		36,972,439

Deferred Revenue

Deferred revenue primarily consists of billings or payments received from customers in advance of revenue recognized for the services provided to our customers or annual licenses and is recognized as services are performed or ratably over the life of the license. We generally invoice customers in advance or in milestone-based installments. Deferred revenue of $3,629,416 was recognized as revenue for the nine months ended September 30, 2023, which was included in the deferred revenue balance as of December 31, 2022. As of September 30, 2023, deferred revenue is expected to be recognized during the succeeding 12-month period and is therefore presented as current.

Deferred revenue consisted of the following:

SCHEDULE OF DEFERRED REVENUE

	September 30, 2023		December 31, 2022
Security managed services	$	4,131,529	$	3,609,087
Professional services		731,637		863,053
Total deferred revenue	$	4,863,166	$	4,472,140

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities, including tax loss and credit carry forwards, are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

We utilize ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated financial statements or tax returns. We account for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. A valuation allowance is recorded when it is “more likely than not” that a deferred tax asset will not be realized. At September 30, 2023, our net deferred tax asset has been fully reserved due to our current period impairment, we expect to be in a net deferred tax asset position in Chile, and a valuation allowance has been recorded for this jurisdiction during the current period.

For uncertain tax positions that meet a “more likely than not” threshold, we recognize the benefit of uncertain tax positions in the unaudited condensed consolidated financial statements. Our practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense in the unaudited condensed consolidated statements of operations when a determination is made that such expense is likely.

NOTE 3 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	September 30, 2023		December 31, 2022
Prepaid expenses	$	572,285	$	987,651
Prepaid taxes		785,456		572,645
Prepaid insurance		64,423		164,354
Total prepaid expenses and other current assets	$	1,422,164	$	1,724,650

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT

	September 30, 2023			December 31, 2022
Computer equipment	$	1,284,250		$	1,264,713
Building		1,697,296			1,776,040
Leasehold improvements		522,255			541,647
Vehicles		-			28,229
Furniture and fixtures		166,210			151,142
Software		1,721,170			1,667,283
Property and equipment gross		5,391,181			5,429,054
Less: accumulated depreciation		(1,407,341	)		(748,559	)
Property and equipment, net	$	3,983,840		$	4,680,495

Total depreciation expense was $220,703 and $186,738 for the three months ended September 30, 2023 and 2022, respectively, and was $762,514 and $519,121 for the nine months ended September 30, 2023 and 2022, respectively.

NOTE 5 – INTANGIBLE ASSETS AND GOODWILL

Goodwill

During the quarterly period ended September 30, 2023, our share price reduction was determined to be an indicator of impairment under ASC 350 of our two reporting units, United States and Latin America. We performed an ongoing assessment to consider whether events or circumstances had occurred that could more likely than not reduce the fair value of a reporting unit below its carrying value. The valuation limitation from our recent share price decline caused us to perform an interim goodwill impairment test as of September 30, 2023.

Based on the results of this testing, we did not record a pre-tax, non-cash impairment charge related to the United States reporting unit and Latin America reporting unit, respectively, for the three-months ended September 30, 2023. For the nine-months ended September 30, 2023, we recorded $31,776,819 and $9,261,353 of pre-tax, non-cash impairment charges related to the United States reporting unit and Latin America reporting units, respectively. This charge is recorded as Impairment of goodwill on the Consolidated Statements of Operations and Comprehensive Loss. The overall enterprise fair value was limited by the recent decline in our share price. The reduction in fair value for the reporting units, and corresponding impairment charge, was primarily driven by an increase in the discount rate arising from higher equity premiums that reflect significant uncertainty surrounding our company and a decrease in forecasted near-term cashflows of our reporting units.

As part of our quantitative testing process for goodwill of the reporting units, we estimated fair values using a revenue multiple analysis, a form of the income approach, from the perspective of a market participant. Significant assumptions used in the revenue multiple approach are revenue growth rates and revenue multiples of key comparable companies within our industry.

The following table summarizes the changes in goodwill during the nine months ended September 30, 2023:

SCHEDULE OF CHANGES IN GOODWILL

Balance December 31, 2022	$	76,664,017
Impairment		(41,038,172	)
Foreign currency translation adjustment		(68,208	)
Ending balance, September 30, 2023	$	35,557,637

The remaining balance of goodwill for the reporting units continue to be at risk for future impairment. There continues to be uncertainty surrounding the factors impacting our business, and a sustained downturn, significantly extended recovery, or a change in long-term revenue growth or profitability for our reporting units could increase the likelihood of an additional future impairment. Additionally, changes in market participant assumptions or further share price reductions could increase the likelihood of further future impairment.

Intangible Assets

We performed an interim impairment test of our intangible assets based upon the conditions that precipitated the interim goodwill impairment test described above.

Based on the results of this testing, we recorded pre-tax, non-cash impairment charges totaling zero and $3,116,039 for the three and nine-months ended September 30, 2023, respectively, related to our customer base, intellectual property, tradenames-trademarks and non-compete, which is included in the net carry amount of intangibles in the table below. These charges were recorded in Selling, general and administrative expenses on the Consolidated Statement of Operations and Comprehensive Loss.

Fair values used in testing for potential impairment of our intangible assets are calculated using a discounted cash flows method by applying estimated cash flows from our forecasted revenue and expenses of the business that utilize those assets. The assumed cash flows from this calculation are discounted at a rate based on a market participant discount rate.

There is uncertainty surrounding the revenue growth factors for these assets and a change in the long-term revenue growth rate or increase in the discount rate assumption could increase the likelihood of a future impairment.

Following the recognition of the impairment losses, the affected assets had an aggregate carrying value of $483,738 as of September 30, 2023.

Intangible assets, net are summarized as follows:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	September 30, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames – trademarks	$	4,024,463	$	(2,124,575	)	$	1,899,888
Customer base		1,191,491		(610,927	)		580,564
Non-compete agreements		665,855		(590,003	)		75,852
Intellectual property/technology		2,562,917		(954,439	)		1,608,478
Intangible Asset	$	8,444,726	$	(4,279,944	)	$	4,164,782

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames – trademarks	$	4,744,409	$	(1,167,476	)	$	3,576,933
Customer base		2,949,143		(449,565	)		2,499,578
Non-compete agreements		796,583		(436,611	)		359,972
Intellectual property/technology		2,659,391		(620,645	)		2,038,746
Intangible Asset	$	11,149,526	$	(2,674,297	)	$	8,475,229

The weighted average remaining useful life of identifiable amortizable intangible assets remaining is 3.29 years as of September 30, 2023.

Amortization of identifiable intangible assets for the three months ended September 30, 2023 and 2022 was $384,126 and $797,703, respectively, and was $1,655,911 and $1,615,170 for the nine months ended September 30, 2023 and 2022, respectively.

Based on the balance of intangible assets at September 30, 2023, expected future amortization expense is as follows:

SCHEDULE OF FUTURE AMORTIZATION EXPENSE


2023 (remainder of)	$	397,060
2024		1,323,051
2025		1,134,113
2026		1,020,342
2027		290,216
Future Amortization Expense	$	4,164,782

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following amounts:

	September 30, 2023		December 31, 2022
Accounts payable	$	8,631,762	$	5,267,492
Accrued payroll and bonuses		1,883,593		1,274,919
Accrued expenses		2,251,244		1,296,382
Accrued commissions		93,449		305,768
Accrued interest		301,246		165,776
Total accounts payable and accrued expenses	$	13,161,294	$	8,310,337

Note 7 – RELATED PARTY TRANSACTIONS

Independent Consulting Agreement with Stephen Scott

In August 2020, we entered into an Independent Consulting Agreement with Stephen Scott, a then director of our company, with respect to advisory and consulting services relating to our strategic and business development and sales and marketing. Mr. Scott receives a consulting fee of $11,500 per month for such services.

In July 2023, we entered into an Independent Consulting Agreement with Mr. Scott to provide, on a non-exclusive basis, advisory and consulting services relating to our strategic and business development, intellectual property development, banking relationships, and strategic M&A for a period of one year. Mr. Scott will receive a consulting fee of $15,000 per month for such services under the terms of this agreement. During the three and nine months ended September 30, 2023, we paid consulting fees to Mr. Scott in the amount of $45,000 and $114,000, respectively. Mr. Scott resigned from his position as a director of our company in May 2023. Mr. Scott remains a significant stockholder of our company due to his beneficial ownership.

Managed Services Agreement with Hensley Beverage Company – Related Party

In July 2021, we entered into a 1-year Managed Services Agreement with Hensley Beverage Company to provide secured managed services. We also may be engaged by Hensley Beverage Company from time to time to provide other related services outside the scope of the Managed Services Agreement. While the agreement provides for a term through December 31, 2021, the agreement will continue until terminated by either party. For the three and nine months ended September 30, 2023, we received $416,058 and $923,150, respectively, from Hensley Beverage Company for contracted services, and had an outstanding receivable balance of $176,944 and $39,615 as of September 30, 2023 and 2022, respectively. Andy McCain, a director of our company, is President and Chief Operating Officer of Hensley & Company, the parent company of Hensley Beverage Company.

Convertible Note Payable with Hensley & Company

In March 2023, we issued an unsecured convertible note to Hensley & Company in the principal amount of $5,000,000 bearing an interest rate of 10.00% per annum. The principal amount, together with accrued and unpaid interest is due on March 20, 2025. At any time prior to or on the maturity date, Hensley & Company is permitted to convert all or any portion of the outstanding principal amount and all accrued but unpaid interest thereon into shares of our common stock at a conversion price of $1.20 per share. During the three and nine months ended September 30, 2023, we recorded interest expense of $125,000 and $263,888, respectively. At September 30, 2023, we had accrued interest of $263,888. Mr. McCain, a director of our company, is President and Chief Operating Officer of Hensley & Company.

Note 8 – STOCKHOLDERS’ EQUITY

In May 2023, we completed a $4,000,000 registered direct offering of shares of our common stock, pursuant to which an aggregate 20,000,000 shares of our common stock were issued. In addition, we granted the placement agent warrants to purchase 600,000 shares of our common stock. We have used the net proceeds from the offering to repay $2.0 million in outstanding principal of short-term indebtedness and for general corporate purposes.

For the nine months ended September 30, 2023, we sold 6,739,853 shares of our common stock for net proceeds of $3,283,165 through our at-the-market offering under our S-3 Registration Statement.

Our 2023 Equity Incentive Plan (the “2023 Plan”), which replaces our 2019 Equity Incentive Plan (the “2019 Plan”), became effective on September 13, 2023. The total number of shares of our common stock reserved and available for delivery under the 2023 Plan at any time during the term of the 2023 Plan will be 40,000,000 shares plus any shares remaining available for delivery under the 2019 Plan on the effective date of the 2023 Plan. As of the effective date of the 2023 Plan, there were 21,839,752 shares remaining available for delivery under the 2019 Plan. Therefore, as of September 13, 2023, there were an aggregate of 61,839,752 shares reserved and available for delivery under the 2023 Plan. In addition, to the extent that any stock options pursuant to the 2019 Plan expire, terminate, or are canceled or forfeited under the terms of the 2019 Plan, the shares of common stock reserved for issuance pursuant to such stock options will become available for issuance under the 2023 Plan.

Options

We granted stock options vesting solely upon the continued service of the recipient. We recognize the accounting grant date fair value of equity-based awards as compensation expense over the required service period of each award.

The following table summarizes stock option activity:

SCHEDULE OF STOCK OPTIONS ACTIVITY

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2023		36,397,521		$	2.45		-		-
Granted		4,414,833			0.40		-		-
Exercised		(1,040,817	)		0.48		-		-
Expired or cancelled		(5,951,080	)		2.99		-		-
Outstanding at September 30, 2023		33,820,457		$	2.12		4.78	$	70,000
Exercisable at September 30, 2023		22,812,881		$	1.80		3.34	$	70,000

Total compensation expense related to the options was $554,249 and $2,252,716 for the three months ended September 30, 2023 and 2022, respectively, and $9,190,027 and $10,432,048 for the nine months ended September 30 2023 and 2022, respectively. As of September 30, 2023, there was future compensation expense of $21,175,369 with a weighted average recognition period of 2.09 years related to the options.

Warrant Activity Summary

The following table summarizes warrant activity:

SCHEDULE OF STOCK WARRANT ACTIVITY

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2023		144,200	$	5.00		4.06	$	-
Granted		600,000		0.25		5.00		-
Exercised		-		-		-		-
Expired or cancelled		-		-		-		-
Outstanding at September 30, 2023		744,200	$	1.17		4.37	$	-
Exercisable at September 30, 2023		744,200	$	1.17		4.37	$	-

NOTE 9 – COMMITMENTS AND CONTINGENCIES

Legal Claims

There are no material pending legal proceedings in which we or any of our subsidiaries are a party or in which any of our directors, officers or affiliates, any owner of record or beneficially of more than 5% of any class of our voting securities, or security holder is a party adverse to us or has a material interest adverse to us.

Indirect Taxes

We are subject to indirect taxation in some, but not all, of the various states and foreign jurisdictions in which we conduct business. Laws and regulations attempting to subject commerce conducted over the Internet to various indirect taxes are becoming more prevalent, both in the United States and internationally, and may impose additional burdens on us in the future. Increased regulation could negatively affect our business directly, as well as the business of our customers. Taxing authorities may impose indirect taxes on the Internet-related revenue we generated based on regulations currently being applied to similar, but not directly comparable, industries. There are many transactions and calculations where the ultimate indirect tax determination is uncertain. In addition, domestic and international indirect taxation laws are complex and subject to change. We may be audited in the future, which could result in changes to our indirect tax estimates. We continually evaluate those jurisdictions in which nexus exists, and believe we maintain adequate indirect tax accruals.

As of September 30, 2023 and December 31, 2022, our accrual for estimated indirect tax liabilities was $556,151 and $409,187, respectively, reflecting our best estimate of the potential liability based on an analysis of our business activities, revenues subject to indirect taxes, and applicable regulations. Although we believe our indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits, litigation, or settlements could be materially different than the amounts established for indirect tax contingencies.

NOTE 10 – LOANS PAYABLE AND LINES OF CREDIT

Loans Payable

Loans payable was as follows:

SCHEDULE OF LOAN PAYABLE

	Interest Rate			Maturities		September 30, 2023			December 31, 2022

Term loans (US dollar denominated)		5.00% – 155.11	%		2023 - 2027	$	1,934,663		$	5,461,520
Term loans (Chilean peso denominated)		3.48% - 7.14	%		2023 - 2029		5,070,158			6,541,113
							7,004,821			12,002,633
Less, current portion							(3,727,647	)		(7,758,831	)
Long term loans payable						$	3,277,174		$	4,243,802

In June 2022, we entered into a bridge loan, secured by substantially all of our assets, in the principal amount of $5,000,000 bearing an interest rate of 4.00% per annum payable monthly with a maturity date of December 14, 2022, which was extended to March 14, 2023. We did not repay this bridge loan on the maturity date, which resulted in an event of default under the terms thereof. As a result, the interest rate applicable to amounts due under this bridge loan increased from 4.00% to 7.50%. This bridge loan was repaid in full on March 20, 2023. We recorded interest expense of zero and $116,667 during the three months and nine months ended September 30, 2023, respectively.

Various subsidiaries in the United States are borrowers under certain unsecured term loans. These term loans require monthly principal and interest payments. We recorded aggregate interest expense on these term loans of $8,536 and $47,015 for the three and nine months ended September 30, 2023, respectively. Accrued interest as of September 30, 2023 was zero. The aggregate effective interest rate of the term loans is 9.87%.

Our Latin America subsidiaries are the borrowers under certain term loans denominated in Chilean Pesos. These term loans require monthly principal and interest payments. These term loans are secured by various assets owned by our subsidiaries. We recorded aggregate interest expense on these term loans of $141,269 and $396,679 for the three and nine months ended September 30, 2023. Accrued interest as of September 30, 2023 was zero. The aggregate effective interest rate of the term loans is 9.11%.

In March 2023, we entered into a Cash Advance Agreement, pursuant to which we received gross proceeds of $2,000,000 and paid $87,500 in upfront fees. The terms of the Cash Advance Agreement call for us to remit aggregate weekly payments of $99,398 until such time as we have repaid $2,870,000. The effective interest rate of the Cash Advance Agreement is 155.11%. This Cash Advance Agreement is secured by the accounts receivable of CISO Global Inc. and our wholly owned subsidiaries, Talatek, LLC and True Digital Security, Inc. We recorded interest expense of $237,964 and $822,017 for the three and nine months ended September 30, 2023, respectively.

In August 2023, we entered into a second Cash Advance Agreement, pursuant to which we received gross proceeds of $2,000,000 and paid $50,000 in upfront fees. The terms of the Cash Advance Agreement call for us to remit weekly payments of $80,588 until such time as we have repaid $2,740,000. The effective interest rate of the Cash Advance Agreement is 112.00%. This Cash Advance Agreement is secured by the accounts receivable of CISO Global Inc. and our wholly owned subsidiaries, Talatek, LLC and True Digital Security, Inc. We recorded interest expense of $226,164 for the three and nine months ended September 30, 2023.

Convertible Notes Payable

In October 2021, we issued a convertible note to Neil Stinchcombe in the principal amount of $1,500,000 bearing an interest rate of 5.00% per annum payable at maturity with a maturity date of January 27, 2022, with a conversion price of $5.00 per share. On March 10, 2022, we entered into an amendment to the note pursuant to which the maturity date was extended to October 27, 2022. In March 2023, we entered into a letter agreement with Neil Stinchcombe to resolve certain payment terms of his convertible note. We agreed to repay the principal amount of the note in three equal installments of $500,000 on each of March 31, April 28, and May 31, 2023, with accrued interest to be paid on May 31, 2023. The principal amount of this note, plus all accrued interest was repaid in full as of June 30, 2023. At December 31, 2022, we had accrued interest of $119,007. We recorded interest income of zero and interest expense of $632 during the three and nine months ended September 30, 2023.

In June 2022, we issued an unsecured convertible note in the principal amount of $1,000,000 bearing an interest rate of 5.00% per annum payable monthly with a maturity date of June 2023, with a conversion price of $7.83 per share. The outstanding principal of this note can be redeemed at any time by us or at maturity at 105%. At maturity in June 2023, we repaid the unpaid accrued interest on this convertible note and rolled the principal amount of $1,050,000 into a new convertible note with the lender. We recorded interest expense of zero and $22,101 for the three and nine months ended September 30, 2023.

In June 2023, we issued an unsecured convertible note in the principal amount of $1,050,000 bearing an interest rate of 10.00% per annum payable monthly. The principal amount, together with accrued and unpaid interest is due on June 7, 2024. At anytime prior to or on the maturity date, the holder is permitted to convert all of the outstanding principal amount into 4.20% of the authorized units of our wholly owned subsidiary vCISO, LLC. We recorded interest expense of $27,603 and $33,083 for the three and nine months ended September 30, 2023. At September 30, 2023 we had accrued interest of $33,083.

Future minimum payments under the above loans payable and convertible notes payable due as of September 30, 2023 were as follows:


2023 (remainder of)	$	1,504,990
2024		4,187,156
2025		6,024,936
2026		524,275
2027		287,141
Thereafter		570,624
Total future minimum payments		13,099,122
Less: discount		(44,301	)
Total		13,054,821
Less: current		(4,777,647	)
	$	8,277,174

NOTE 11 – LEASES

We have entered into various non-cancellable operating lease agreements for certain offices. These leases currently have lease periods expiring between 2023 and 2028. The lease agreements may include one or more options to renew. Renewals were not assumed in our determination of the lease term unless the renewals were deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs, weighted-average lease term, and discount rates are detailed below.

When measuring lease liabilities for leases that were classified as operating leases, we discounted lease payments using our estimated incremental borrowing rate at the commencement date of each lease. The weighted average incremental borrowing rate applied was 9.99%. As of September 30, 2023, our leases had a remaining weighted average term of 3.96 years.

Operating leases are included in the unaudited condensed Consolidated Balance Sheets as follows:

	Classification	September 30, 2023		December 31, 2022
Lease assets
Operating lease cost ROU assets	Assets	$	824,178	$	255,687
Total lease assets		$	824,178	$	255,687

Lease liabilities
Operating lease liabilities, current	Current liabilities	$	161,154	$	121,731
Operating lease liabilities, non-current	Liabilities		706,903		159,205
Total lease liabilities		$	868,057	$	280,936

The components of lease costs, which are included in loss from operations in our unaudited condensed consolidated Statements of Operations, were as follows:

SCHEDULE OF LEASE COST

	2023		2022
	Nine Months Ended September 30,
	2023		2022
Leases costs
Operating lease costs	$	196,642	$	277,842
Short term lease cost		78,307		-
Total lease costs	$	274,949	$	277,842

Future minimum payments under non-cancelable leases for operating leases for the remaining terms of the leases following the nine months ended September 30, 2023 were as follows:

Fiscal Year	Operating Leases
2023 (remainder of)	$	73,996
2024		294,383
2025		252,513
2026		199,177
2027		205,145
Thereafter		51,661
Total future minimum lease payments		1,076,875
Amount representing interest		208,818
Present value of net future minimum lease payments	$	868,057

NOTE 12 – CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents. Although we deposit cash with multiple banks, these deposits, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may generally be redeemed upon demand and bear minimal risk.

No single customer represented over 10% of our total revenue for any period presented.

NOTE 13 – GEOGRAPHIC INFORMATION

Revenue by geography is based on the customer’s billing address and was as follows:

	2023		2022		2023		2022
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

U.S.	$	8,835,728	$	9,000,560	$	25,921,186	$	26,764,895
Chile		5,157,981		2,148,503		16,840,734		4,941,523
All other countries		71,412		103,969		554,876		103,969
Revenue	$	14,065,121	$	11,253,032	$	43,316,796	$	31,810,387

Property and equipment, net by geography was as follows:

	September 30, 2023		December 31, 2022

U.S.	$	1,181,275	$	1,198,057
Chile		2,801,543		3,480,911
All other countries		1,022		1,527
Property and equipment net	$	3,983,840	$	4,680,495

No other international country represented more than 10% of property and equipment, net in any period presented.

NOTE 14 – ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents AOCI activity in equity:

	Foreign Currency Translation Adjustments		Total AOCI

Balance as of December 31, 2022	$	1,062,247	$	1,062,247
Other comprehensive income		228,331		228,331
Amounts reclassified from AOCI		-		-
Balance as of September 30, 2023	$	1,290,578	$	1,290,578

NOTE 15 – SUBSEQUENT EVENTS

On November 9, 2023, we and our US subsidiaries entered into a Business Loan and Security Agreement (the “Loan Agreement” with LendSpark Corporation (the “Lender”), pursuant to which we obtained a loan with a principal amount of $2,200,000 (the “Loan”) from the Lender. Pursuant to the Loan Agreement, we paid the Lender a $44,000 origination fee. The Loan bears interest at a rate of 53.44% per annum and is payable in 52 weekly installments of $53,731, commencing on November 16, 2023. We may prepay the Loan in whole or in part, but partial repayments do not reduce the total interest payable on the Loan, or $594,000. If the Loan is prepaid in full prior to the 90-day anniversary of the date of the Loan Agreement, the total interest is reduced as follows: (i) if the Loan is repaid within 30 days, the total amount of interest due will be $464,000, (ii) if the Loan is repaid within 60 days, the total amount of interest due will be $508,000, and (iii) if the Loan is repaid within 90 days, the total amount of interest due will be $552,000.

Pursuant to the Loan Agreement, we granted the Lender a security interest in all if its assets and the assets of our US subsidiaries (the “Collateral”). Upon the occurrence of an event of default, the Lender may, among other things, accelerate the Loan and declare all obligations immediate due and payable or take possession of the Collateral.

The proceeds from the Loan were used to repay in full the amount owed under Cash Advance Agreement with Cedar Advance, LLC that we entered into in March 2023.

In connection with Loan, we entered into a Fee Agreement (the “Fee Agreement”) with the Lender pursuant to which we issued 2,000,000 shares of our common stock, par value $0.00001 per share (the “Shares”) as partial consideration for the Lender’s agreement to enter into the Loan Agreement and extend credit to us. Pursuant to the Fee Agreement, if we repay the Loan in full by (i) December 9, 2023, the Lender will return all of the Shares to us, (ii) January 8, 2023, the Lender will return 1,500,000 of the Shares to us and (iii) February 8, 2024, the Lender will return 1,000,000 of the Shares to us. The Fee Agreement contains customary representations, warranties, agreements and obligations of the parties.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our condensed financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Unless otherwise indicated or the context requires otherwise, the terms “we,” “us,” “our,” and “our company” refer to CISO Global Inc., a Delaware corporation, and its wholly owned subsidiaries. Unless otherwise specified, all dollar amounts are expressed in U.S. dollars.

Third Quarter 2023 Highlights

Our operating results for the nine months ended September 30, 2023 included the following:

	●	Total revenue increased by $11.5 million to $43.3 million for the nine months ended September 30, 2023, as compared to the nine months ended September 30, 2022.
	●	Total gross profit increased to $3.9 million for the nine months ended September 30, 2023, as compared to $1.7 million the nine months ended September 30, 2022.

Results of Operations

Comparison of the Three Months Ended September 30, 2023 to the Three Months Ended September 30, 2022

Our financial results for the three months ended September 30, 2023 are summarized as follows in comparison to the three months ended September 30, 2022:

	Three Months Ended September 30,
	2023			2022			Variance
Revenue:
Security managed services	$	12,266,690		$	10,061,304		$	2,205,386
Professional services		1,798,431			1,191,728			606,703
Total revenue		14,065,121			11,253,032			2,812,089

Cost of revenue:
Security managed services		5,574,180			4,310,378			1,263,802
Professional services		234,549			182,413			52,136
Cost of payroll		5,458,001			4,978,768			479,233
Stock based compensation		317,851			857,950			(540,099	)
Total cost of revenue		11,584,581			10,329,509			1,255,072
Total gross profit		2,480,540			923,523			1,557,017
Operating expenses:
Professional fees		745,426			624,391			121,035
Advertising and marketing		119,814			245,495			(125,681	)
Selling, general, and administrative		5,557,328			6,684,747			(1,127,419	)
Stock based compensation		677,231			1,791,724			(1,114,493	)
Total operating expenses		7,099,799			9,346,357			(2,246,558	)

Loss from operations		(4,619,259	)		(8,422,834	)		3,803,575
Other income (expense):
Other income		(121,689	)		29,968			(151,657	)
Interest expense, net		(766,315	)		(108,233	)		(658,082	)

Total other income (expense)		(888,004	)		(78,265	)		(809,739	)

Loss before income taxes	$	(5,507,263	)	$	(8,501,099	)	$	2,993,836

Revenue

Security managed services revenue increased by $2,205,386, or 22%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, primarily due to revenue acquired through our completion of two acquisitions over the last 12 months and new and existing customer revenue growth.

Professional services revenue increased by $606,703, or 51%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, primarily due to revenue acquired through our completion of two acquisitions over the last 12 months and new and existing customer revenue growth.

Expenses

Cost of Revenue

Security managed services cost of revenue increased by $1,263,802, or 29%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, primarily due to our completion of two acquisitions over the last 12 months.

Professional services cost of revenue increased by $52,136, or 29%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, due to our increase in revenue from professional services from two acquisitions completed over the last 12 months.

Cost of payroll increased by $479,233, or 10%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, due to headcount added primarily through our completion of two acquisitions over the last 12 months.

Stock-based compensation expenses decreased by $540,099, or 63%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, due to the timing of recognition of the reversal of expense for options forfeited by former employees.

Operating Expenses

Professional fees increased by $121,035, or 19%, for the three months ended September 30, 2023 as compared to three months ended September 30, 2022, due to a increase in accounting, legal, and other professional fees.

Advertising and marketing expenses decreased by $125,681, or 51%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, due to utilization of more internal marketing resources.

Selling, general, and administrative expenses decreased by $1,127,419, or 17%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, primarily due to a decrease in insurance costs and also cost reductions in software resulting from increase purchasing power with vendors.

Stock based compensation expenses decreased by $1,114,493, or 62%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022, due to the timing of recognition of the reversal of expense for options forfeited by former employees.

Comparison of the Nine Months Ended September 30, 2023 to the Nine Months Ended September 30, 2022

Our financial results for the nine months ended September 30, 2023 are summarized as follows in comparison to the nine months ended September 30, 2022:

	Nine Months Ended September 30,
	2023			2022			Variance
Revenue:
Security managed services	$	37,623,328		$	28,489,698		$	9,133,630
Professional services		5,693,468			3,320,689			2,372,779
Total revenue		43,316,796			31,810,387			11,506,409

Cost of revenue:
Security managed services		18,444,204			10,678,728			7,765,476
Professional services		683,582			455,902			227,680
Cost of payroll		16,514,436			14,132,602			2,381,834
Stock based compensation		3,783,116			4,805,423			(1,022,307	)
Total cost of revenue		39,425,338			30,072,655			9,352,683
Total gross profit		3,891,458			1,737,732			2,153,726
Operating expenses:
Professional fees		3,086,365			2,192,600			893,765
Advertising and marketing		288,984			641,340			(352,356	)
Selling, general, and administrative		21,178,969			15,856,705			5,322,264
Stock based compensation		6,421,245			6,761,283			(340,038	)
Impairment of goodwill		41,038,172			-			41,038,172
Total operating expenses		72,013,735			25,451,928			46,561,807

Loss from operations		(68,122,277	)		(23,714,196	)		(44,408,081	)
Other income (expense):
Other income		(68,470	)		134,447			(202,917	)
Interest expense, net		(1,922,546	)		(293,991	)		(1,628,555	)

Total other income (expense)		(1,991,016	)		(159,544	)		(1,831,472	)

Loss before income taxes	$	(70,113,293	)	$	(23,873,740	)	$	(46,239,553	)

Revenue

Security managed services revenue increased by $9,133,630, or 32%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, primarily due to revenue acquired through our completion of two acquisitions over the last 12 months and new and existing customer revenue growth.

Professional services revenue increased by $2,372,779, or 71%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, primarily due to revenue acquired through our completion of two acquisitions over the last 12 months and new and existing customer revenue growth.

Expenses

Cost of Revenue

Security managed services cost of revenue increased by $7,765,476, or 73%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, primarily due to our completion of two acquisitions over the last 12 months.

Professional services cost of revenue increased by $227,680, or 50%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, due to our increase in revenue from professional services from two acquisitions completed over the last 12 months.

Cost of payroll increased by $2,381,834, or 17%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, due to headcount added primarily through our completion of two acquisitions over the last 12 months.

Stock-based compensation expenses decreased by $1,022,307, or 21%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, due to the timing of recognition of the reversal of expense for options forfeited by former employees.

Operating Expenses

Professional fees increased by $893,765, or 41%, for the nine months ended September 30, 2023 as compared to nine months ended September 30, 2022, due to an increase in accounting, legal, and other professional fees incurred related to our periodic SEC filings and our efforts to raise additional capital.

Advertising and marketing expenses decreased by $352,356, or 55%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, due to utilization of more internal marketing resources.

Selling, general, and administrative expenses increased by $5,322,264, or 34%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, primarily due to our analysis of our carrying amount of intangible assets being impaired and headcount added through our completion of two acquisitions over the last 12 months.

Stock based compensation expense decreased by $340,038, or 5%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, due to the timing of recognition of the reversal of expense for options forfeited by former employees.

Impairment of goodwill increased by $41,038,172, or 100%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, due to our analysis of our carrying amount of goodwill being impaired.

Liquidity and Capital Resources

The accompanying condensed consolidated financial statements have been prepared on the basis that we will continue as a going concern, which contemplates realization of assets and satisfying liabilities in the normal course of business. For the nine months ended September 30, 2023, we incurred a net loss of $69,677,615 and negative cash flows from operations of $6,704,498 and expect to incur further losses through the end of 2023. In the report accompanying our financial statements for the year ended December 31, 2022, our independent auditors stated that our financial statements were prepared assuming that we would continue as a going concern and that they have substantial doubt as to our ability to do so based on our recurring losses from operations and need to raise additional capital. These condensed consolidated financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should we be unable to continue as a going concern.

As of September 30, 2023, we had $291,351,048 of available funding under our S-3 Registration Statement from which we may issue our securities to fund current and future operations, assuming there is adequate demand for our securities.

Working Capital Deficit

Our working capital deficit as of September 30, 2023, in comparison to our working capital deficit as of December 31, 2022, is summarized as follows:

	As of
	September 30,			December 31,
	2023			2022
Current assets	$	11,589,911		$	14,398,795
Current liabilities		22,963,261			23,213,039
Working capital deficit	$	(11,373,350	)	$	(8,814,244	)

The decrease in current assets is primarily due to a decrease in cash, accounts receivable and prepaid expenses of $1,062,683, $1,791,678 and $302,486, respectively. Current liabilities remained consistent due to an increase in accounts payable and accrued expenses of $4,850,957, offset by a decrease in loans payable and convertible notes payable of $4,031,184 and $1,500,000, respectively.

Cash Flows

Our cash flows for the nine months ended September 30, 2023, in comparison to our cash flows for the nine months ended September 30, 2022, is summarized as follows:

	Nine Months ended September 30,
	2023			2022
Net cash used in operating activities	$	(6,704,498	)	$	(7,850,297	)
Net cash used in investing activities		(135,848	)		(6,044,217	)
Net cash provided by financing activities		5,777,702			16,038,273
Effect of exchange rates on cash and cash equivalents		(39	)		19,539
(Decrease)/Increase in cash	$	(1,062,683	)	$	2,163,298

Operating Activities

Net cash used in operating activities was $6,704,498 for the nine months ended September 30, 2023 and was primarily due to cash used to fund a net loss of $69,677,615, adjusted for non-cash expenses in the aggregate of $56,269,301 and additional cash inflow by changes in the levels of operating assets and liabilities, primarily as a result of a decrease in accounts receivable and increases in deferred revenue and accounts payable and accrued expenses. Net cash used in operating activities was $7,850,297 for the nine months ended September 30, 2022 and was primarily due to cash used to fund a net loss of $23,873,740, adjusted for non-cash expenses in the aggregate of $13,939,728, partially offset by cash generated by changes in the levels of operating assets and liabilities, primarily as a result of an increase in accounts payable.

Investing Activities

Net cash used in investing activities of $135,848 for the nine months ended September 30, 2023 was due to purchases of property and equipment. Net cash used in investing activities of $6,044,217 for the nine months ended September 30, 2022 and was primarily due to net cash paid in the acquisition of True Digital Security, Inc.

Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2023 was $5,777,702, which was primarily due to net cash received from the sale of our common stock of $6,682,198, $4,448,641 in net proceeds from our loans payable, and $6,050,000 in proceeds from convertible notes payable, offset by aggregate repayments on loans payable and convertible notes payable of $11,756,420. Net cash provided by financing activities for the nine months ended September 30, 2022 was $16,038,273 which was primarily due to cash received from the sale of our common stock in our public offerings of $10,562,763 and $5,975,000 in net proceeds from our bridge loans.

Based on our current business plan, we believe our cash balance as of the date of this filing, together with anticipated revenues, will be sufficient to meet our anticipated cash requirement for the near term. However, there can be no assurance that the current business plan will be achievable. Such conditions raise substantial doubts about our ability to continue as a going concern for one year from the date the condensed consolidated financial statements are issued.

Our existence is dependent upon our ability to develop profitable operations. We are devoting substantially all of our efforts to developing our business, reducing overhead costs, and raising capital, although there can be no assurance that our efforts will be successful. No assurance can be given that our actions will result in profitable operations or the resolution of liquidity problems. The accompanying condensed consolidated financial statements do not include any adjustments that might result should we be unable to continue as a going concern.

The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should we be unable to continue as a going concern.

Critical Accounting Policies and Estimates

Our critical accounting policies are more fully described in the notes to our condensed consolidated financial statements included herein for the quarter and nine months ended September 30, 2023 and in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 31, 2023.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at dates of the financial statements and the reported amounts of revenue and expenses during the periods. Our significant estimates and assumptions include the allowance for doubtful accounts, the carrying value of intangible assets and goodwill, deferred tax asset and valuation allowance, the estimated fair value of assets acquired, liabilities assumed and stock issued in business combinations, and assumptions used in the Black-Scholes option pricing model, such as expected volatility, risk-free interest rate, share price, and expected dividend rate. Certain of our estimates, including the carrying amount of intangible assets and goodwill, could be affected by external conditions, including those unique to us and general economic conditions. It is reasonably possible that these external factors could have an effect on our estimates and could cause actual results to materially differ from those estimates.

Business Combination

We allocate the purchase price of an acquired business to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. Any excess of the purchase price over the fair value of the net assets acquired is recorded as goodwill. The purchase price allocation process requires management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets. Direct transaction costs associated with the business combination are expensed as incurred. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. We include the results of operations of the business that we have acquired in our consolidated results prospectively from the date of acquisition.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognized in profit or loss.

Intangible Assets

Intangible assets are comprised of trademarks, customer bases, non-compete agreements, and intellectual property with original estimated useful lives with a range of 2 to 10 years. Once placed into service, we amortize the cost of intangible assets over their estimated useful lives on a straight-line basis.

Goodwill

Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at the reporting unit level at least annually at year end or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and revenue multiple approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.

Impairment of Long-Lived Assets

We will periodically evaluate the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review and at least annually. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose.

Stock-Based Compensation

We measure the cost of services received in exchange for an award of equity instruments based on the fair value of the award. The fair value of the award is measured on the grant date. Awards granted to directors are treated on the same basis as awards granted to employees.

Revenue Recognition

Our agreements with clients are primarily service contracts that range in duration from a few months to one year. We recognize revenue when control of these services is transferred to the client for an amount, referred to as the transaction price, which reflects the consideration to which we are expected to be entitled in exchange for those goods or services.

A contract with a client exists only when:

	●	the parties to the contract have approved it and are committed to perform their respective obligations;
	●	we can identify each party’s rights regarding the distinct services to be transferred (“performance obligations”);
	●	we can determine the transaction price for the services to be transferred; and
	●	the contract has commercial substance, and it is probable that we will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the client.

For the majority of our contracts, we receive non-refundable upfront payments. We do not adjust the promised amount of consideration for the effects of a significant financing component since we expect, at contract inception, that the period between the time of transfer of the promised goods or services to the client and the time the client pays for these goods or services to be generally one year or less. Our credit terms to clients generally average 30 days, although in some cases payments are required in 15 days.

We do not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.

Our revenue is categorized and disaggregated as reflected in our statements of operations as follows:

Security Managed Services

Security managed services revenue primarily consist of compliance, security managed services, SOC managed services, and vCISO. We consider these services to be a single performance obligation, and revenue is recognized as services and materials are provided to the customer.

Professional Services

Professional services revenue primarily consists of technical assessments, incident response and forensics, training, and other cybersecurity services. We consider these services to be a single performance obligation, and revenue is recognized in the period in which the performance obligations are satisfied.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Because we are a smaller reporting company, we are not required to provide the information called for by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.

In designing and evaluating our disclosure controls and procedures, management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of September 30, 2023, our disclosure controls and procedures were not effective due to the material weaknesses in internal control over financial reporting described below. Thus there remains a reasonable possibility that a material misstatement of our interim financial statements will not be prevented or detected on a timely basis. This does not include an evaluation by our independent registered public accounting firm regarding our internal control over financial reporting. Accordingly, we cannot provide reasonable assurance that information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported, to allow our principal financial and executive officers to make timely decisions regarding required disclosures as of September 30, 2023.

Our management’s evaluation was based on the following material weaknesses in our internal control over financial reporting, which existed as of December 31, 2022 and which continue to exist, as discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022:

	●	lack of risk assessment procedures on internal controls to detect financial reporting risks in a timely manner; and
	●	lack of documentation on policies and procedures that are critical to the accomplishment of financial reporting objectives.

A material weakness is a control deficiency or combination of control deficiencies that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. As a company with limited accounting resources, a significant amount of management’s time and attention has been and will be diverted from our business to ensure compliance with these regulatory requirements.

Management’s Plan to Remediate the Material Weaknesses

We are implementing measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively. The remediation actions planned include:

●	identifying gaps in our skills base and the expertise of our staff required to meet the financial reporting requirements of a public company; and
●	developing policies and procedures on internal control over financial reporting and monitoring the effectiveness of operations on existing controls and procedures.

We will continue to monitor and evaluate the relevance of our risk-based approach and the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis, and we are committed to taking further action and implementing additional enhancements or improvements, as necessary and in accordance with financial and budgetary considerations.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2023, other than those noted above, that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are currently not a party to any material legal proceedings.

Item 1A. Risk Factors

We have disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 31, 2023, risk factors that materially affect our business, financial condition, or results of operations. There have been no material changes from the risk factors previously disclosed.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

The Loan Agreement contains customary representations and warranties, indemnification provisions in favor of Lender, events of default and affirmative and negative covenants, including, among others, covenants that limit or restrict the our ability to, among other things, merge or consolidate.

The proceeds from the Loan were used to repay in full the amount owed under Cash Advance Agreement with Cedar Advance, LLC that we entered into in March 2023.

The Shares have not been registered under the Securities Act and are being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act and Rule 506(b) promulgated thereunder.

During the quarter ended September 30, 2023, no director or officer of our company adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, defined in Item 408 of Regulation S-K).

Item 6. Exhibits

Exhibit		Incorporated by Reference
Number	Exhibit Description	Form	Exhibit	Filing Date

3.1	Second Amended and Restated By-Laws of the Registrant	8-K	3.1	10/10/2023
10.1#	2023 Equity Incentive Plan	S-8	10.2	10/31/2023
31.1	Rule 13a-14(a) / 15d-14(a) Certification of Principal Executive Officer
31.2	Rule 13a-14(a) / 15d-14(a) Certification of Principal Financial Officer
32.1	Section 1350 Certification of Principal Executive Officer
32.2	Section 1350 Certification of Principal Financial Officer
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

#Management contracts and compensatory plans and arrangements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CISO GLOBAL, INC.

By:	/s/ David G. Jemmett
	David G. Jemmett
	Chief Executive Officer
	(Principal Executive Officer)
Date:	November 13, 2023

By:	/s/ Debra L. Smith
	Debra L. Smith
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)
Date:	November 13, 2023

Exhibit 31.1

CISO GLOBAL, INC.

CERTIFICATE PURSUANT TO SECTION 302

I, David G. Jemmett, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of CISO Global, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ David G. Jemmett
	David G. Jemmett
	Chief Executive Officer
	(Principal Executive Officer)
Date:	November 13, 2023

Exhibit 31.2

CISO GLOBAL, INC.

CERTIFICATE PURSUANT TO SECTION 302

I, Debra L. Smith, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of CISO Global, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Debra L. Smith
	Debra L. Smith
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)
Date:	November 13, 2023

Exhibit 32.1

CISO GLOBAL, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of CISO Global, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

By:	/s/ David G. Jemmett
	David G. Jemmett
	Chief Executive Officer
	(Principal Executive Officer)
Date:	November 13, 2023

This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of CISO Global, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

Exhibit 32.2

CISO GLOBAL, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

By:	/s/ Debra L. Smith
	Debra L. Smith
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)
Date:	November 13, 2023

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 13, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-41227
Entity Registrant Name	CISO GLOBAL, INC.
Entity Central Index Key	0001777319
Entity Tax Identification Number	83-4210278
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	6900 E. Camelback Road
Entity Address, Address Line Two	Suite 900
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85251
City Area Code	(480)
Local Phone Number	389-3444
Title of 12(b) Security	Common Stock, $0.00001 par value
Trading Symbol	CISO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		180,176,477

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 770,480	$ 1,833,163
Accounts receivable, net	6,070,619	7,862,297
Inventory	72,572	11,803
Prepaid cost of revenue	2,989,300	2,634,667
Prepaid expenses and other current assets	1,422,164	1,724,650
Contract asset	264,776	332,215
Total Current Assets	11,589,911	14,398,795
Property and equipment, net	3,983,840	4,680,495
Right of use asset, net	824,178	255,687
Intangible assets, net	4,164,782	8,475,229
Goodwill	35,557,637	76,664,017
Other assets	19,375	22,592
Total Assets	56,139,723	104,496,815
Current Liabilities:
Accounts payable and accrued expenses	13,161,294	8,310,337
Deferred revenue	4,863,166	4,472,140
Lease liability	161,154	121,731
Loans payable	3,727,647	7,758,831
Convertible notes payable	1,050,000	2,550,000
Total Current Liabilities	22,963,261	23,213,039
Long-term Liabilities:
Loans payable, net of current portion	3,277,174	4,243,802
Lease liability, net of current portion	706,903	159,205
Deferred tax liability		435,678
Total Liabilities	31,947,338	28,051,724
Commitments and Contingencies
Stockholders’ Equity:
Common stock, $.00001 par value; 300,000,000 shares authorized; 178,176,477 and 146,395,807 issued and outstanding at September 30, 2023 and December 31, 2022, respectively	1,782	1,464
Preferred stock, $.00001 par value; 50,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
Additional paid-in capital	170,365,244	153,168,984
Accumulated other comprehensive income	1,290,578	1,062,247
Accumulated deficit	(147,465,219)	(77,787,604)
Total Stockholders’ Equity	24,192,385	76,445,091
Total Liabilities and Stockholders’ Equity	56,139,723	104,496,815
Related Party [Member]
Long-term Liabilities:
Convertible notes payable, related party	$ 5,000,000

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	178,176,477	146,395,807
Common stock, shares outstanding	178,176,477	146,395,807
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Total revenue	$ 14,065,121	$ 11,253,032	$ 43,316,796	$ 31,810,387
Cost of revenue:
Total cost of revenue	11,584,581	10,329,509	39,425,338	30,072,655
Total gross profit	2,480,540	923,523	3,891,458	1,737,732
Operating expenses:
Professional fees	745,426	624,391	3,086,365	2,192,600
Advertising and marketing	119,814	245,495	288,984	641,340
Selling, general and administrative	5,557,328	6,684,747	21,178,969	15,856,705
Stock based compensation	677,231	1,791,724	6,421,245	6,761,283
Impairment of goodwill			41,038,172
Total operating expenses	7,099,799	9,346,357	72,013,735	25,451,928
Loss from operations	(4,619,259)	(8,422,834)	(68,122,277)	(23,714,196)
Other income (expense):
Other income	(121,689)	29,968	(68,470)	134,447
Interest expense, net	(766,315)	(108,233)	(1,922,546)	(293,991)
Total other income (expense)	(888,004)	(78,265)	(1,991,016)	(159,544)
Loss before income taxes	(5,507,263)	(8,501,099)	(70,113,293)	(23,873,740)
Benefit from income taxes			(435,678)
Net loss	(5,507,263)	(8,501,099)	(69,677,615)	(23,873,740)
Foreign currency translation adjustment	(1,392,395)	(908,987)	228,331	(2,207,256)
Comprehensive loss	$ (6,899,658)	$ (9,410,086)	$ (69,449,284)	$ (26,080,996)
Net loss per common share - basic	$ (0.03)	$ (0.06)	$ (0.44)	$ (0.17)
Net loss per common share - diluted	$ (0.03)	$ (0.06)	$ (0.44)	$ (0.17)
Weighted average shares outstanding - basic	178,077,576	142,295,780	159,391,428	136,764,168
Weighted average shares outstanding - diluted	178,077,576	142,295,780	159,391,428	136,764,168
Security Managed Services [Member]
Revenue:
Total revenue	$ 12,266,690	$ 10,061,304	$ 37,623,328	$ 28,489,698
Cost of revenue:
Total cost of revenue	5,574,180	4,310,378	18,444,204	10,678,728
Professional Services [Member]
Revenue:
Total revenue	1,798,431	1,191,728	5,693,468	3,320,689
Cost of revenue:
Total cost of revenue	234,549	182,413	683,582	455,902
Cost of Payroll [Member]
Cost of revenue:
Total cost of revenue	5,458,001	4,978,768	16,514,436	14,132,602
Stock based Compensation [Member]
Cost of revenue:
Total cost of revenue	$ 317,851	$ 857,950	$ 3,783,116	$ 4,805,423

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021	$ 1,258	$ 69,309,369		$ (44,012,422)	$ 25,298,205
Balance, shares at Dec. 31, 2021	125,852,971
Stock based compensation - stock options		10,432,048			10,432,048
Stock based compensation - common stock	$ 7	1,592,977			1,592,984
Stock based compensation - common stock, shares	736,819
Stock issued for cash	$ 3	1,040,962			1,040,965
Stock issued for cash, shares	304,608
Exercise of options	$ 25	1,359,239			1,359,264
Exercise of options, shares	2,459,809
Stock issued for CyberViking acquisition	$ 5	1,836,315			1,836,320
Stock issued for CyberViking acquisition, shares	499,000
Foreign currency translation			(2,207,256)		(2,207,256)
Net loss				(23,873,740)	(23,873,740)
Stock issued for cash in public offering	$ 21	9,521,777			9,521,798
Stock issued for cash in public offering, shares	2,060,000
Stock issued for True Digital acquisition	$ 82	34,726,298			34,726,380
Stock issued for True Digital acquisition, shares	8,229,000
Stock issued for VelocIT acquisition	$ 3	(3)
Stock issued for VelocIT acquisition, shares	256,678
Stock issued for Red74 acquisition
Stock issued for Red74 acquisition, shares	34,000
Stock issued for Creatrix acquisition	$ 6	3,629,994			3,630,000
Stock issued for Creatrix acquisition, shares	600,000
Stock issued for CUATROi acquisition	$ 22	6,847,452			6,847,474
Stock issued for CUATROi acquisition, shares	2,166,922
Stock issued for NLT Secure acquisition	$ 27	6,919,570			6,919,597
Stock issued for NLT Secure acquisition, shares	2,745,872
Balance at Sep. 30, 2022	$ 1,459	147,215,998	(2,207,256)	(67,886,162)	77,124,039
Balance, shares at Sep. 30, 2022	145,945,679
Balance at Dec. 31, 2022	$ 1,464	153,168,984	1,062,247	(77,787,604)	76,445,091
Balance, shares at Dec. 31, 2022	146,395,807
Stock based compensation - stock options		9,190,027			9,190,027
Stock based compensation - common stock	$ 35	733,465			733,500
Stock based compensation - common stock, shares	3,500,000
Stock issued for cash	$ 268	6,681,930			6,682,198
Stock issued for cash, shares	26,739,853
Exercise of options	$ 10	491,843			$ 491,853
Exercise of options, shares	1,040,817				1,040,817
Stock issued for CyberViking acquisition	$ 5	98,995			$ 99,000
Stock issued for CyberViking acquisition, shares	500,000
Foreign currency translation			228,331		228,331
Net loss				(69,677,615)	(69,677,615)
Balance at Sep. 30, 2023	$ 1,782	$ 170,365,244	$ 1,290,578	$ (147,465,219)	$ 24,192,385
Balance, shares at Sep. 30, 2023	178,176,477

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (69,677,615)	$ (23,873,740)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation - stock options	9,190,027	10,432,048
Stock based compensation - common stock	733,500	1,134,658
Depreciation and amortization	2,411,989	2,138,493
Right of use amortization	165,291	184,167
Other	93,199	50,362
Impairment of intangible assets	3,023,709
Impairment of goodwill	40,651,586
Changes in operating assets and liabilities:
Accounts receivable, net	1,689,837	887,816
Inventory	(66,296)	(106,246)
Contract assets	67,440	(330,067)
Prepaids and other current assets	(232,829)	(1,952,488)
Accounts payable and accrued expenses	5,129,336	3,003,623
Lease liability	(307,816)	(154,816)
Settlement liability		(470,000)
Deferred revenue	424,144	1,205,893
Net cash used in operating activities	(6,704,498)	(7,850,297)
Cash flows from investing activities:
Purchases of property and equipment	(166,278)	(510,973)
Cash (paid)/acquired in acquisitions, net	30,430	(5,533,244)
Net cash used in investing activities	(135,848)	(6,044,217)
Cash flows from financing activities:
Proceeds from sale of common stock	6,682,198	10,562,763
Proceeds from stock option exercise	491,853	1,359,264
Proceeds from loan payable	4,448,641	5,000,000
Proceeds from convertible notes payable, related party	5,000,000
Proceeds from convertible note payable	1,050,000	1,000,000
Proceeds from line of credit	173,477	86,585
Payment on line of credit	(174,547)
Payment on loans payable	(9,206,420)	(369,829)
Payment on notes payable, related party		(1,575,510)
Payment of convertible note payable	(2,550,000)
Payment of debt issuance cost	(137,500)	(25,000)
Net cash provided by financing activities	5,777,702	16,038,273
Effect of exchange rates on cash and cash equivalents	(39)	19,539
Net (decrease)/increase in cash and cash equivalents	(1,062,683)	2,163,298
Cash and cash equivalents - beginning of the period	1,833,163	2,725,035
Cash and cash equivalents - end of the period	770,480	4,888,333
Cash paid for:
Interest	2,094,020	224,813
Income taxes
Supplemental disclosure of non-cash transactions:
Operating lease assets obtained in exchange for operating lease obligations	733,782	476,986
VelocIT [Member]
Supplemental disclosure of non-cash transactions:
Common stock issued in acquisition
RED74 [Member]
Supplemental disclosure of non-cash transactions:
Common stock issued in acquisition
NLT Secure [Member]
Supplemental disclosure of non-cash transactions:
Common stock issued in acquisition		6,919,597
SB Cyber [Member]
Supplemental disclosure of non-cash transactions:
Common stock issued in acquisition	$ 99,000

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ (5,507,263)	$ (8,501,099)	$ (69,677,615)	$ (23,873,740)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

ORGANIZATION OF BUSINESS AND GOING CONCERN

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION OF BUSINESS AND GOING CONCERN

NOTE 1 – ORGANIZATION OF BUSINESS AND GOING CONCERN

Description of the Business

Basis of Presentation

Going Concern

Reclassifications

Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.

Use of Estimates

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue

Our revenue is categorized and disaggregated as reflected in our unaudited condensed consolidated statement of operations as follows:

Security Managed Services

Professional Services

Accounts Receivable

Inventory

Net Loss per Common Share

	September 30, 2023		December 31, 2022
Stock options		33,820,457		36,397,521
Warrants		744,200		144,200
Convertible debt		4,166,667		430,718
Total		38,731,324		36,972,439

Deferred Revenue

Deferred revenue consisted of the following:

SCHEDULE OF DEFERRED REVENUE

	September 30, 2023		December 31, 2022
Security managed services	$	4,131,529	$	3,609,087
Professional services		731,637		863,053
Total deferred revenue	$	4,863,166	$	4,472,140

Income Taxes

PREPAID EXPENSES AND OTHER CURRENT ASSETS

9 Months Ended

Sep. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 3 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	September 30, 2023		December 31, 2022
Prepaid expenses	$	572,285	$	987,651
Prepaid taxes		785,456		572,645
Prepaid insurance		64,423		164,354
Total prepaid expenses and other current assets	$	1,422,164	$	1,724,650

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT

	September 30, 2023			December 31, 2022
Computer equipment	$	1,284,250		$	1,264,713
Building		1,697,296			1,776,040
Leasehold improvements		522,255			541,647
Vehicles		-			28,229
Furniture and fixtures		166,210			151,142
Software		1,721,170			1,667,283
Property and equipment gross		5,391,181			5,429,054
Less: accumulated depreciation		(1,407,341	)		(748,559	)
Property and equipment, net	$	3,983,840		$	4,680,495

INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 5 – INTANGIBLE ASSETS AND GOODWILL

Goodwill

The following table summarizes the changes in goodwill during the nine months ended September 30, 2023:

SCHEDULE OF CHANGES IN GOODWILL

Balance December 31, 2022	$	76,664,017
Impairment		(41,038,172	)
Foreign currency translation adjustment		(68,208	)
Ending balance, September 30, 2023	$	35,557,637

Intangible Assets

We performed an interim impairment test of our intangible assets based upon the conditions that precipitated the interim goodwill impairment test described above.

Following the recognition of the impairment losses, the affected assets had an aggregate carrying value of $483,738 as of September 30, 2023.

Intangible assets, net are summarized as follows:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	September 30, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames – trademarks	$	4,024,463	$	(2,124,575	)	$	1,899,888
Customer base		1,191,491		(610,927	)		580,564
Non-compete agreements		665,855		(590,003	)		75,852
Intellectual property/technology		2,562,917		(954,439	)		1,608,478
Intangible Asset	$	8,444,726	$	(4,279,944	)	$	4,164,782

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames – trademarks	$	4,744,409	$	(1,167,476	)	$	3,576,933
Customer base		2,949,143		(449,565	)		2,499,578
Non-compete agreements		796,583		(436,611	)		359,972
Intellectual property/technology		2,659,391		(620,645	)		2,038,746
Intangible Asset	$	11,149,526	$	(2,674,297	)	$	8,475,229

The weighted average remaining useful life of identifiable amortizable intangible assets remaining is 3.29 years as of September 30, 2023.

Based on the balance of intangible assets at September 30, 2023, expected future amortization expense is as follows:

SCHEDULE OF FUTURE AMORTIZATION EXPENSE


2023 (remainder of)	$	397,060
2024		1,323,051
2025		1,134,113
2026		1,020,342
2027		290,216
Future Amortization Expense	$	4,164,782

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following amounts:

	September 30, 2023		December 31, 2022
Accounts payable	$	8,631,762	$	5,267,492
Accrued payroll and bonuses		1,883,593		1,274,919
Accrued expenses		2,251,244		1,296,382
Accrued commissions		93,449		305,768
Accrued interest		301,246		165,776
Total accounts payable and accrued expenses	$	13,161,294	$	8,310,337

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2023

RELATED PARTY TRANSACTIONS

Note 7 – RELATED PARTY TRANSACTIONS

Independent Consulting Agreement with Stephen Scott

Managed Services Agreement with Hensley Beverage Company – Related Party

Convertible Note Payable with Hensley & Company

STOCKHOLDERS’ EQUITY

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

STOCKHOLDERS’ EQUITY

Note 8 – STOCKHOLDERS’ EQUITY

For the nine months ended September 30, 2023, we sold 6,739,853 shares of our common stock for net proceeds of $3,283,165 through our at-the-market offering under our S-3 Registration Statement.

Options

The following table summarizes stock option activity:

SCHEDULE OF STOCK OPTIONS ACTIVITY

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2023		36,397,521		$	2.45		-		-
Granted		4,414,833			0.40		-		-
Exercised		(1,040,817	)		0.48		-		-
Expired or cancelled		(5,951,080	)		2.99		-		-
Outstanding at September 30, 2023		33,820,457		$	2.12		4.78	$	70,000
Exercisable at September 30, 2023		22,812,881		$	1.80		3.34	$	70,000

Warrant Activity Summary

The following table summarizes warrant activity:

SCHEDULE OF STOCK WARRANT ACTIVITY

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2023		144,200	$	5.00		4.06	$	-
Granted		600,000		0.25		5.00		-
Exercised		-		-		-		-
Expired or cancelled		-		-		-		-
Outstanding at September 30, 2023		744,200	$	1.17		4.37	$	-
Exercisable at September 30, 2023		744,200	$	1.17		4.37	$	-

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 9 – COMMITMENTS AND CONTINGENCIES

Legal Claims

Indirect Taxes

LOANS PAYABLE AND LINES OF CREDIT

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

LOANS PAYABLE AND LINES OF CREDIT

NOTE 10 – LOANS PAYABLE AND LINES OF CREDIT

Loans Payable

Loans payable was as follows:

SCHEDULE OF LOAN PAYABLE

	Interest Rate			Maturities		September 30, 2023			December 31, 2022

Term loans (US dollar denominated)		5.00% – 155.11	%		2023 - 2027	$	1,934,663		$	5,461,520
Term loans (Chilean peso denominated)		3.48% - 7.14	%		2023 - 2029		5,070,158			6,541,113
							7,004,821			12,002,633
Less, current portion							(3,727,647	)		(7,758,831	)
Long term loans payable						$	3,277,174		$	4,243,802

Convertible Notes Payable

Future minimum payments under the above loans payable and convertible notes payable due as of September 30, 2023 were as follows:


2023 (remainder of)	$	1,504,990
2024		4,187,156
2025		6,024,936
2026		524,275
2027		287,141
Thereafter		570,624
Total future minimum payments		13,099,122
Less: discount		(44,301	)
Total		13,054,821
Less: current		(4,777,647	)
	$	8,277,174

LEASES

9 Months Ended

Sep. 30, 2023

Leases

LEASES

NOTE 11 – LEASES

Operating leases are included in the unaudited condensed Consolidated Balance Sheets as follows:

	Classification	September 30, 2023		December 31, 2022
Lease assets
Operating lease cost ROU assets	Assets	$	824,178	$	255,687
Total lease assets		$	824,178	$	255,687

Lease liabilities
Operating lease liabilities, current	Current liabilities	$	161,154	$	121,731
Operating lease liabilities, non-current	Liabilities		706,903		159,205
Total lease liabilities		$	868,057	$	280,936

The components of lease costs, which are included in loss from operations in our unaudited condensed consolidated Statements of Operations, were as follows:

SCHEDULE OF LEASE COST

	2023		2022
	Nine Months Ended September 30,
	2023		2022
Leases costs
Operating lease costs	$	196,642	$	277,842
Short term lease cost		78,307		-
Total lease costs	$	274,949	$	277,842

Future minimum payments under non-cancelable leases for operating leases for the remaining terms of the leases following the nine months ended September 30, 2023 were as follows:

Fiscal Year	Operating Leases
2023 (remainder of)	$	73,996
2024		294,383
2025		252,513
2026		199,177
2027		205,145
Thereafter		51,661
Total future minimum lease payments		1,076,875
Amount representing interest		208,818
Present value of net future minimum lease payments	$	868,057

CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

9 Months Ended

Sep. 30, 2023

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

NOTE 12 – CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

No single customer represented over 10% of our total revenue for any period presented.

GEOGRAPHIC INFORMATION

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

GEOGRAPHIC INFORMATION

NOTE 13 – GEOGRAPHIC INFORMATION

Revenue by geography is based on the customer’s billing address and was as follows:

	2023		2022		2023		2022
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

U.S.	$	8,835,728	$	9,000,560	$	25,921,186	$	26,764,895
Chile		5,157,981		2,148,503		16,840,734		4,941,523
All other countries		71,412		103,969		554,876		103,969
Revenue	$	14,065,121	$	11,253,032	$	43,316,796	$	31,810,387

Property and equipment, net by geography was as follows:

	September 30, 2023		December 31, 2022

U.S.	$	1,181,275	$	1,198,057
Chile		2,801,543		3,480,911
All other countries		1,022		1,527
Property and equipment net	$	3,983,840	$	4,680,495

No other international country represented more than 10% of property and equipment, net in any period presented.

ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME

NOTE 14 – ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents AOCI activity in equity:

	Foreign Currency Translation Adjustments		Total AOCI

Balance as of December 31, 2022	$	1,062,247	$	1,062,247
Other comprehensive income		228,331		228,331
Amounts reclassified from AOCI		-		-
Balance as of September 30, 2023	$	1,290,578	$	1,290,578

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 15 – SUBSEQUENT EVENTS

The proceeds from the Loan were used to repay in full the amount owed under Cash Advance Agreement with Cedar Advance, LLC that we entered into in March 2023.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Revenue

Revenue

Our revenue is categorized and disaggregated as reflected in our unaudited condensed consolidated statement of operations as follows:

Security Managed Services

Professional Services

Accounts Receivable

Accounts Receivable

Inventory

Inventory

Net Loss per Common Share

Net Loss per Common Share

	September 30, 2023		December 31, 2022
Stock options		33,820,457		36,397,521
Warrants		744,200		144,200
Convertible debt		4,166,667		430,718
Total		38,731,324		36,972,439

Deferred Revenue

Deferred Revenue

Deferred revenue consisted of the following:

SCHEDULE OF DEFERRED REVENUE

	September 30, 2023		December 31, 2022
Security managed services	$	4,131,529	$	3,609,087
Professional services		731,637		863,053
Total deferred revenue	$	4,863,166	$	4,472,140

Income Taxes

Income Taxes

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

SUMMARY OF SECURITIES EXCLUDED FROM DILUTED PER SHARE

	September 30, 2023		December 31, 2022
Stock options		33,820,457		36,397,521
Warrants		744,200		144,200
Convertible debt		4,166,667		430,718
Total		38,731,324		36,972,439

SCHEDULE OF DEFERRED REVENUE

Deferred revenue consisted of the following:

SCHEDULE OF DEFERRED REVENUE

	September 30, 2023		December 31, 2022
Security managed services	$	4,131,529	$	3,609,087
Professional services		731,637		863,053
Total deferred revenue	$	4,863,166	$	4,472,140

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

9 Months Ended

Sep. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	September 30, 2023		December 31, 2022
Prepaid expenses	$	572,285	$	987,651
Prepaid taxes		785,456		572,645
Prepaid insurance		64,423		164,354
Total prepaid expenses and other current assets	$	1,422,164	$	1,724,650

PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT

	September 30, 2023			December 31, 2022
Computer equipment	$	1,284,250		$	1,264,713
Building		1,697,296			1,776,040
Leasehold improvements		522,255			541,647
Vehicles		-			28,229
Furniture and fixtures		166,210			151,142
Software		1,721,170			1,667,283
Property and equipment gross		5,391,181			5,429,054
Less: accumulated depreciation		(1,407,341	)		(748,559	)
Property and equipment, net	$	3,983,840		$	4,680,495

INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF CHANGES IN GOODWILL

The following table summarizes the changes in goodwill during the nine months ended September 30, 2023:

SCHEDULE OF CHANGES IN GOODWILL

Balance December 31, 2022	$	76,664,017
Impairment		(41,038,172	)
Foreign currency translation adjustment		(68,208	)
Ending balance, September 30, 2023	$	35,557,637

SUMMARY OF IDENTIFIABLE INTANGIBLE ASSETS

Intangible assets, net are summarized as follows:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	September 30, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames – trademarks	$	4,024,463	$	(2,124,575	)	$	1,899,888
Customer base		1,191,491		(610,927	)		580,564
Non-compete agreements		665,855		(590,003	)		75,852
Intellectual property/technology		2,562,917		(954,439	)		1,608,478
Intangible Asset	$	8,444,726	$	(4,279,944	)	$	4,164,782

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames – trademarks	$	4,744,409	$	(1,167,476	)	$	3,576,933
Customer base		2,949,143		(449,565	)		2,499,578
Non-compete agreements		796,583		(436,611	)		359,972
Intellectual property/technology		2,659,391		(620,645	)		2,038,746
Intangible Asset	$	11,149,526	$	(2,674,297	)	$	8,475,229

SCHEDULE OF FUTURE AMORTIZATION EXPENSE

Based on the balance of intangible assets at September 30, 2023, expected future amortization expense is as follows:

SCHEDULE OF FUTURE AMORTIZATION EXPENSE


2023 (remainder of)	$	397,060
2024		1,323,051
2025		1,134,113
2026		1,020,342
2027		290,216
Future Amortization Expense	$	4,164,782

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following amounts:

	September 30, 2023		December 31, 2022
Accounts payable	$	8,631,762	$	5,267,492
Accrued payroll and bonuses		1,883,593		1,274,919
Accrued expenses		2,251,244		1,296,382
Accrued commissions		93,449		305,768
Accrued interest		301,246		165,776
Total accounts payable and accrued expenses	$	13,161,294	$	8,310,337

STOCKHOLDERS’ EQUITY (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

SCHEDULE OF STOCK OPTIONS ACTIVITY

The following table summarizes stock option activity:

SCHEDULE OF STOCK OPTIONS ACTIVITY

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2023		36,397,521		$	2.45		-		-
Granted		4,414,833			0.40		-		-
Exercised		(1,040,817	)		0.48		-		-
Expired or cancelled		(5,951,080	)		2.99		-		-
Outstanding at September 30, 2023		33,820,457		$	2.12		4.78	$	70,000
Exercisable at September 30, 2023		22,812,881		$	1.80		3.34	$	70,000

SCHEDULE OF STOCK WARRANT ACTIVITY

The following table summarizes warrant activity:

SCHEDULE OF STOCK WARRANT ACTIVITY

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2023		144,200	$	5.00		4.06	$	-
Granted		600,000		0.25		5.00		-
Exercised		-		-		-		-
Expired or cancelled		-		-		-		-
Outstanding at September 30, 2023		744,200	$	1.17		4.37	$	-
Exercisable at September 30, 2023		744,200	$	1.17		4.37	$	-

LOANS PAYABLE AND LINES OF CREDIT (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

SCHEDULE OF LOAN PAYABLE

Loans payable was as follows:

SCHEDULE OF LOAN PAYABLE

	Interest Rate			Maturities		September 30, 2023			December 31, 2022

Term loans (US dollar denominated)		5.00% – 155.11	%		2023 - 2027	$	1,934,663		$	5,461,520
Term loans (Chilean peso denominated)		3.48% - 7.14	%		2023 - 2029		5,070,158			6,541,113
							7,004,821			12,002,633
Less, current portion							(3,727,647	)		(7,758,831	)
Long term loans payable						$	3,277,174		$	4,243,802

SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR LONG TERM DEBT

Future minimum payments under the above loans payable and convertible notes payable due as of September 30, 2023 were as follows:


2023 (remainder of)	$	1,504,990
2024		4,187,156
2025		6,024,936
2026		524,275
2027		287,141
Thereafter		570,624
Total future minimum payments		13,099,122
Less: discount		(44,301	)
Total		13,054,821
Less: current		(4,777,647	)
	$	8,277,174

LEASES (Tables)

9 Months Ended

Sep. 30, 2023

Leases

SCHEDULE OF LEASE COST AND OTHER SUPPLEMENT LEASE INFORMATION

Operating leases are included in the unaudited condensed Consolidated Balance Sheets as follows:

	Classification	September 30, 2023		December 31, 2022
Lease assets
Operating lease cost ROU assets	Assets	$	824,178	$	255,687
Total lease assets		$	824,178	$	255,687

Lease liabilities
Operating lease liabilities, current	Current liabilities	$	161,154	$	121,731
Operating lease liabilities, non-current	Liabilities		706,903		159,205
Total lease liabilities		$	868,057	$	280,936

SCHEDULE OF LEASE COST

The components of lease costs, which are included in loss from operations in our unaudited condensed consolidated Statements of Operations, were as follows:

SCHEDULE OF LEASE COST

	2023		2022
	Nine Months Ended September 30,
	2023		2022
Leases costs
Operating lease costs	$	196,642	$	277,842
Short term lease cost		78,307		-
Total lease costs	$	274,949	$	277,842

SCHEDULE OF FUTURE MINIMUM UNDER NON-CANCELLABLE LEASES FOR OPERATING LEASES

Future minimum payments under non-cancelable leases for operating leases for the remaining terms of the leases following the nine months ended September 30, 2023 were as follows:

Fiscal Year	Operating Leases
2023 (remainder of)	$	73,996
2024		294,383
2025		252,513
2026		199,177
2027		205,145
Thereafter		51,661
Total future minimum lease payments		1,076,875
Amount representing interest		208,818
Present value of net future minimum lease payments	$	868,057

GEOGRAPHIC INFORMATION (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SCHEDULE OF REVENUE BY GEOGRAPHY IS BASED ON CUSTOMERS BILLING ADDRESS

Revenue by geography is based on the customer’s billing address and was as follows:

	2023		2022		2023		2022
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

U.S.	$	8,835,728	$	9,000,560	$	25,921,186	$	26,764,895
Chile		5,157,981		2,148,503		16,840,734		4,941,523
All other countries		71,412		103,969		554,876		103,969
Revenue	$	14,065,121	$	11,253,032	$	43,316,796	$	31,810,387

SCHEDULE OF PROPERTY AND EQUIPMENT, NET BY GEOGRAPHIC AREAS

Property and equipment, net by geography was as follows:

	September 30, 2023		December 31, 2022

U.S.	$	1,181,275	$	1,198,057
Chile		2,801,543		3,480,911
All other countries		1,022		1,527
Property and equipment net	$	3,983,840	$	4,680,495

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents AOCI activity in equity:

	Foreign Currency Translation Adjustments		Total AOCI

Balance as of December 31, 2022	$	1,062,247	$	1,062,247
Other comprehensive income		228,331		228,331
Amounts reclassified from AOCI		-		-
Balance as of September 30, 2023	$	1,290,578	$	1,290,578

ORGANIZATION OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 5,507,263	$ 8,501,099	$ 69,677,615	$ 23,873,740
Cash flow from operations			6,704,498	$ 7,850,297
Current assets	11,589,911		11,589,911		$ 14,398,795
Current liabilities	22,963,261		22,963,261		23,213,039
Working capital deficit	11,373,350		11,373,350
Cash and cash equivalents	$ 770,480		$ 770,480		$ 1,833,163

SUMMARY OF SECURITIES EXCLUDED FROM DILUTED PER SHARE (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the diluted per share calculation	38,731,324	36,972,439
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the diluted per share calculation	33,820,457	36,397,521
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the diluted per share calculation	744,200	144,200
Convertible Debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the diluted per share calculation	4,166,667	430,718

SCHEDULE OF DEFERRED REVENUE (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Product Information [Line Items]
Total deferred revenue	$ 4,863,166	$ 4,472,140
Security Managed Services [Member]
Product Information [Line Items]
Total deferred revenue	4,131,529	3,609,087
Professional Services [Member]
Product Information [Line Items]
Total deferred revenue	$ 731,637	$ 863,053

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accounting Policies [Abstract]
Allowances for doubtful accounts	$ 224,629		$ 270,011
Inventory impairment losses	0	$ 0
Deferred revenue	$ 3,629,416

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 572,285	$ 987,651
Prepaid taxes	785,456	572,645
Prepaid insurance	64,423	164,354
Total prepaid expenses and other current assets	$ 1,422,164	$ 1,724,650

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 5,391,181	$ 5,429,054
Less: accumulated depreciation	(1,407,341)	(748,559)
Property and equipment, net	3,983,840	4,680,495
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	1,284,250	1,264,713
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	1,697,296	1,776,040
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	522,255	541,647
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross		28,229
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	166,210	151,142
Software Development [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 1,721,170	$ 1,667,283

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 220,703	$ 186,738	$ 762,514	$ 519,121

SCHEDULE OF CHANGES IN GOODWILL (Details) - USD ($)	3 Months Ended		9 Months Ended
SCHEDULE OF CHANGES IN GOODWILL (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Balance beginning			$ 76,664,017
Impairment			(41,038,172)
Foreign currency translation adjustment			(68,208)
Ending balance	$ 35,557,637		$ 35,557,637

SUMMARY OF IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,444,726	$ 11,149,526
Accumulated Amortization	(4,279,944)	(2,674,297)
Net Carrying Amount	4,164,782	8,475,229
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,024,463	4,744,409
Accumulated Amortization	(2,124,575)	(1,167,476)
Net Carrying Amount	1,899,888	3,576,933
Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,191,491	2,949,143
Accumulated Amortization	(610,927)	(449,565)
Net Carrying Amount	580,564	2,499,578
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	665,855	796,583
Accumulated Amortization	(590,003)	(436,611)
Net Carrying Amount	75,852	359,972
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,562,917	2,659,391
Accumulated Amortization	(954,439)	(620,645)
Net Carrying Amount	$ 1,608,478	$ 2,038,746

SCHEDULE OF FUTURE AMORTIZATION EXPENSE (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remainder of)	$ 397,060
2024	1,323,051
2025	1,134,113
2026	1,020,342
2027	290,216
Future Amortization Expense	$ 4,164,782	$ 8,475,229

INTANGIBLE ASSETS AND GOODWILL (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Impairment charge of goodwill			$ 41,038,172
Pre-tax non-cash impairment charges of intangible assets	0		3,116,039
Iintangible assets	483,738		$ 483,738
Weighted average remaining useful life			3 years 3 months 14 days
Amortization of identifiable intangible assets	$ 384,126	$ 797,703	$ 1,655,911	$ 1,615,170
UNITED STATES
Impairment charge of goodwill			31,776,819
Latin America [Member]
Impairment charge of goodwill			$ 9,261,353

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable	$ 8,631,762	$ 5,267,492
Accrued payroll and bonuses	1,883,593	1,274,919
Accrued expenses	2,251,244	1,296,382
Accrued commissions	93,449	305,768
Accrued interest	301,246	165,776
Total accounts payable and accrued expenses	$ 13,161,294	$ 8,310,337

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Jul. 31, 2023	Mar. 31, 2023	Aug. 31, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction [Line Items]
Consulting fees				$ 745,426	$ 624,391	$ 3,086,365	$ 2,192,600
Interest expense				766,315	108,233	1,922,546	293,991
Unsecured Debt [Member]
Related Party Transaction [Line Items]
Debt instrument face amount		$ 5,000,000
Debt instrument interest rate		10.00%
Maturity date		Mar. 20, 2025
Conversion price		$ 1.20
Interest expense				125,000		263,888
Independent Consulting Agreement [Member] \| Stephen Scott [Member]
Related Party Transaction [Line Items]
Consulting fees	$ 15,000		$ 11,500	45,000		114,000
One Year Managed Services Agreement [Member] \| Hensley Beverage Company [Member] \| Related Party [Member]
Related Party Transaction [Line Items]
Revenues				416,058		923,150
Outstanding receivable related parties				$ 176,944	$ 39,615	$ 176,944	$ 39,615

SCHEDULE OF STOCK OPTIONS ACTIVITY (Details)	9 Months Ended
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details)	Sep. 30, 2023 USD ($) $ / shares shares
Equity [Abstract]
Number of Shares Outstanding, Beginning \| shares	36,397,521
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 2.45
Number of Shares Outstanding, Granted \| shares	4,414,833
Weighted Average Exercise Price, Granted \| $ / shares	$ 0.40
Number of Shares Outstanding, Exercised \| shares	(1,040,817)
Weighted Average Exercise Price, Exercised \| $ / shares	$ 0.48
Number of Shares Outstanding, Expired or cancelled \| shares	(5,951,080)
Weighted Average Exercise Price, Expired or cancelled \| $ / shares	$ 2.99
Number of Shares Outstanding, Ending \| shares	33,820,457
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 2.12
Weighted Average Remaining Contractual Life Outstanding, Ending	4 years 9 months 10 days
Aggregate Iintrinsic Value Outstanding Ending \| $	$ 70,000
Number of Shares Outstanding, Exercisable \| shares	22,812,881
Weighted Average Exercise Price, Exercisable Ending \| $ / shares	$ 1.80
Weighted Average Remaining Contractual Life, Exercisable Ending	3 years 4 months 2 days
Aggregate Intrinsic Value Exercisable Ending \| $	$ 70,000

SCHEDULE OF STOCK WARRANT ACTIVITY (Details)	9 Months Ended
SCHEDULE OF STOCK WARRANT ACTIVITY (Details)	Sep. 30, 2023 USD ($) $ / shares shares
Equity [Abstract]
Number of Warrants Outstanding, Beginning \| shares	144,200
Weighted Average Exercise Price, Beginning \| $ / shares	$ 5.00
Weighted Average Remaining Contractual Life, Beginning	4 years 21 days
Aggregate Intrinsic Value, Beginning \| $
Number of Warrants, Granted \| shares	600,000
Weighted Average Exercise Price, Granted \| $ / shares	$ 0.25
Weighted Average Remaining Contractual Life, Granted	5 years
Number of Warrants, Exercised \| shares
Weighted Average Exercise Price, Exercised \| $ / shares
Number of Warrants, Expired or Cancelled \| shares
Weighted Average Exercise Price, Expired or Cancelled \| $ / shares
Number of Warrants Outstanding, Ending \| shares	744,200
Weighted Average Exercise Price, Ending \| $ / shares	$ 1.17
Weighted Average Remaining Contractual Life, Ending	4 years 4 months 13 days
Aggregate Intrinsic Value, Ending \| $
Number of Warrants, Exercisable \| shares	744,200
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 1.17
Weighted Average Remaining Contractual Life, Exercisable	4 years 4 months 13 days
Aggregate Intrinsic Value, Exercisable \| $

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	May 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 13, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Direct offering Cost				$ 6,682,198	$ 1,040,965
Number of common stock shares sold				6,739,853
Value of common stock shares sold				$ 3,283,165
Stock based compensation		$ 554,249	$ 2,252,716	9,190,027	$ 10,432,048
Unrecognized stock-based compensation expense		$ 21,175,369		$ 21,175,369
Unrecognized stock-based compensation expense, recognition period				2 years 1 month 2 days
2023 Equity Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock resserved for issuance		40,000,000		40,000,000		61,839,752
2019 Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock resserved for issuance		21,839,752		21,839,752
Placement Agent Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Direct offering Cost	$ 4,000,000
Direct offering shares	20,000,000
Warrants to purchase common stock	600,000
Net proceeds	$ 2,000,000.0

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Description for voting securities	beneficially of more than 5% of any class of our voting securities, or security holder is a party adverse to us or has a material interest adverse to us
Indirect tax liabilities	$ 556,151	$ 409,187

SCHEDULE OF LOAN PAYABLE (Details) - USD ($)	9 Months Ended
SCHEDULE OF LOAN PAYABLE (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Loans payable	$ 7,004,821	$ 12,002,633
Less current portion	(3,727,647)	(7,758,831)
Long term loans payable	3,277,174	4,243,802
Term Loans One [Member]
Short-Term Debt [Line Items]
Loans payable	$ 1,934,663	5,461,520
Term Loans One [Member] \| Minimum [Member]
Short-Term Debt [Line Items]
Line of credit facility interest rate percentage	5.00%
Line of credit maturity description	2023
Term Loans One [Member] \| Maximum [Member]
Short-Term Debt [Line Items]
Line of credit facility interest rate percentage	155.11%
Line of credit maturity description	2027
Term Loans Two [Member]
Short-Term Debt [Line Items]
Loans payable	$ 5,070,158	$ 6,541,113
Term Loans Two [Member] \| Minimum [Member]
Short-Term Debt [Line Items]
Line of credit facility interest rate percentage	3.48%
Line of credit maturity description	2023
Term Loans Two [Member] \| Maximum [Member]
Short-Term Debt [Line Items]
Line of credit facility interest rate percentage	7.14%
Line of credit maturity description	2029

SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR LONG TERM DEBT (Details)	Sep. 30, 2023 USD ($)
Debt Disclosure [Abstract]
2023 (remainder of)	$ 1,504,990
2024	4,187,156
2025	6,024,936
2026	524,275
2027	287,141
Thereafter	570,624
Total future minimum payments	13,099,122
Less: discount	(44,301)
Total	13,054,821
Less: current	(4,777,647)
Long term debt, net of current portion	$ 8,277,174

LOANS PAYABLE AND LINES OF CREDIT (Details Narrative) - USD ($)					1 Months Ended					3 Months Ended		9 Months Ended
	May 31, 2023	Apr. 28, 2023	Mar. 31, 2023	Mar. 10, 2022	Aug. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Oct. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Interest expense										$ 766,315	$ 108,233	$ 1,922,546	$ 293,991
Proceeds from convertable debt												1,050,000	$ 1,000,000
Cash Advance Agreement [Member]
Debt Instrument [Line Items]
Interest expense										237,964		822,017
Aggregate effective interest rate			155.11%				155.11%
Proceeds from convertable debt							$ 2,000,000
Upfront fees							87,500
Periodic payment							99,398
Repayments for debt							2,870,000
Second Cash Advance Agreement [Member]
Debt Instrument [Line Items]
Interest expense										226,164		226,164
Aggregate effective interest rate					112.00%
Proceeds from convertable debt					$ 2,000,000
Upfront fees					50,000
Periodic payment					80,588
Repayments for debt					$ 2,740,000
Term Loans One [Member]
Debt Instrument [Line Items]
Interest expense										8,536		47,015
Interest and debt expense										$ 0		$ 0
Aggregate effective interest rate										9.87%		9.87%
Term Loans Two [Member]
Debt Instrument [Line Items]
Interest expense										$ 141,269		$ 396,679
Interest and debt expense										$ 0		$ 0
Aggregate effective interest rate										9.11%		9.11%
Convertible Note Payable [Member] \| Neil Stinchcombe [Member]
Debt Instrument [Line Items]
Debt instrument face amount									$ 1,500,000
Debt instrument interest rate									5.00%
Maturity date				Oct. 27, 2022					Jan. 27, 2022
Interest expense												$ 632
Interest and debt expense														$ 119,007
Conversion price									$ 5.00
Interest income										$ 0
Convertible Note Payable [Member] \| Neil Stinchcombe [Member] \| Installment One [Member]
Debt Instrument [Line Items]
Periodic payment			$ 500,000
Convertible Note Payable [Member] \| Neil Stinchcombe [Member] \| Installment Two [Member]
Debt Instrument [Line Items]
Periodic payment		$ 500,000
Convertible Note Payable [Member] \| Neil Stinchcombe [Member] \| Installment Three [Member]
Debt Instrument [Line Items]
Periodic payment	$ 500,000
Convertible Note Payable [Member] \| Mr Mc Cain [Member]
Debt Instrument [Line Items]
Interest and debt expense										263,888		263,888
Unsecured Debt [Member]
Debt Instrument [Line Items]
Interest expense										0		22,101
Interest and debt expense										33,083		33,083
Unsecured Debt [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Debt instrument face amount			$ 5,000,000			$ 1,050,000	$ 5,000,000	$ 1,000,000		1,050,000		1,050,000
Debt instrument interest rate			10.00%			10.00%	10.00%	5.00%
Maturity date						Jun. 07, 2024	Mar. 20, 2025
Interest expense										27,603		33,083
Conversion price			$ 1.20				$ 1.20	$ 7.83
Debt instrument redemption, description								The outstanding principal of this note can be redeemed at any time by us or at maturity at 105%
Unsecured Debt [Member] \| VCISO LLC [Member] \| Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Debt instrument interest rate						4.20%
Unsecured Debt [Member] \| Mr Mc Cain [Member]
Debt Instrument [Line Items]
Interest expense										125,000		263,888
Bridge Loan [Member]
Debt Instrument [Line Items]
Debt instrument face amount								$ 5,000,000
Debt instrument interest rate								4.00%
Maturity date								Dec. 14, 2022
Interest expense										$ 0		$ 116,667
Bridge Loan [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate								4.00%
Bridge Loan [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate								7.50%

SCHEDULE OF LEASE COST AND OTHER SUPPLEMENT LEASE INFORMATION (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Leases
Operating lease cost ROU assets	$ 824,178	$ 255,687
Total lease assets	824,178	255,687
Operating lease liabilities, current	161,154	121,731
Operating lease liabilities, non-current	706,903	159,205
Total lease liabilities	$ 868,057	$ 280,936

SCHEDULE OF LEASE COST (Details) - USD ($)	9 Months Ended
SCHEDULE OF LEASE COST (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating lease costs	$ 196,642	$ 277,842
Short term lease cost	78,307
Total lease costs	$ 274,949	$ 277,842

SCHEDULE OF FUTURE MINIMUM UNDER NON-CANCELLABLE LEASES FOR OPERATING LEASES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Leases
2023 (remainder of)	$ 73,996
2024	294,383
2025	252,513
2026	199,177
2027	205,145
Thereafter	51,661
Total future minimum lease payments	1,076,875
Amount representing interest	208,818
Present value of net future minimum lease payments	$ 868,057	$ 280,936

LEASES (Details Narrative)	Sep. 30, 2023
Leases
Weighted average incremental borrowing rate	9.99%
Operating lease, weighted average remaining lease term	3 years 11 months 15 days

CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details Narrative)	9 Months Ended
	Sep. 30, 2023
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| No Single Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

SCHEDULE OF REVENUE BY GEOGRAPHY IS BASED ON CUSTOMERS BILLING ADDRESS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 14,065,121	$ 11,253,032	$ 43,316,796	$ 31,810,387
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	8,835,728	9,000,560	25,921,186	26,764,895
CHILE
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	5,157,981	2,148,503	16,840,734	4,941,523
All Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 71,412	$ 103,969	$ 554,876	$ 103,969

SCHEDULE OF PROPERTY AND EQUIPMENT, NET BY GEOGRAPHIC AREAS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment net	$ 3,983,840	$ 4,680,495
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment net	1,181,275	1,198,057
CHILE
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment net	2,801,543	3,480,911
All Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment net	$ 1,022	$ 1,527

SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Details)	9 Months Ended
	Sep. 30, 2023 USD ($)
Balance as of December 31, 2022	$ 1,062,247
Other comprehensive income	228,331
Amounts reclassified from AOCI
Balance as of September 30, 2023	1,290,578
Foreign Currency Gain (Loss) [Member]
Balance as of December 31, 2022	1,062,247
Other comprehensive income	228,331
Amounts reclassified from AOCI
Balance as of September 30, 2023	$ 1,290,578

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Nov. 09, 2023	Sep. 30, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Loans Payable		$ 7,004,821	$ 12,002,633
Common stock, par value		$ 0.00001	$ 0.00001
Subsequent Event [Member]
Subsequent Event [Line Items]
Originationfee	$ 44,000
Debt instrument interest rate stated percentage	53.44%
Debt Instrument, Periodic Payment	$ 53,731
Loans Payable	$ 594,000
Debt Instrument, Covenant Description	If the Loan is prepaid in full prior to the 90-day anniversary of the date of the Loan Agreement, the total interest is reduced as follows: (i) if the Loan is repaid within 30 days, the total amount of interest due will be $464,000, (ii) if the Loan is repaid within 60 days, the total amount of interest due will be $508,000, and (iii) if the Loan is repaid within 90 days, the total amount of interest due will be $552,000
Subsequent Event [Member] \| January Eight Two Thousand Twenty Three [Member]
Subsequent Event [Line Items]
Shares, Issued	1,500,000
Subsequent Event [Member] \| February Eight Two Thousand Twenty Three [Member]
Subsequent Event [Line Items]
Shares, Issued	1,000,000
Subsequent Event [Member] \| Within Thirtyydays [Member]
Subsequent Event [Line Items]
Debt Instrument, Periodic Payment, Interest	$ 464,000
Subsequent Event [Member] \| Within Sixty [Member]
Subsequent Event [Line Items]
Debt Instrument, Periodic Payment, Interest	508,000
Subsequent Event [Member] \| Within Ninety [Member]
Subsequent Event [Line Items]
Debt Instrument, Periodic Payment, Interest	552,000
Subsequent Event [Member] \| Loan And Security Agreement [Member]
Subsequent Event [Line Items]
Debt instrument face amount	$ 2,200,000
Subsequent Event [Member] \| Fee Agreement [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	2,000,000
Common stock, par value	$ 0.00001

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