CISO Global, Inc. Segments Disclosure
NOTE 20 – SEGMENT INFORMATION
Our Chief Operating Decision Maker (“CODM”), as of December 31, 2024, was our Chief Executive Officer. Our CODM evaluates the performance of and allocates resources to our segment based on our consolidated net loss and earnings before interest, taxes, depreciation and amortization (Segment EBITDA). Segment EBITDA is defined as segment revenue less operating costs and expenses, excluding depreciation and amortization interest income or expense (net), provision or benefit for income taxes, change in fair value of derivative liabilities, loss on issuance of convertible notes, impairment of goodwill and intangible assets, and stock-based compensation expense. We believe Segment EBITDA serves as a measure that assists our CODM and our investors in comparing our segment performance on a consistent basis.
Net loss and Segment EBITDA are used to monitor budgeted versus actual results. Additionally, review of budgeted versus actual results is used in assessing performance of the segment.
Our CODM does not use assets by segment to evaluate performance or allocate resources; therefore, we do not provide disclosure of assets by segment.
The following table presents our segment information for the periods indicated and, because we currently only have one segment, net loss is identical to the information presented in our “Consolidated Statement of Operations” above:
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Net loss from continuing operations | $ | (19,905,601 | ) | $ | (64,984,498 | ) | ||
| Impairment of goodwill | 35,933,364 | |||||||
| Impairment of intangible assets | 229,990 | |||||||
| Loss on issuance of convertible notes | 1,022,650 | |||||||
| Interest expense, net | 3,584,172 | 2,266,573 | ||||||
| Depreciation and amortization | 2,351,760 | 2,300,699 | ||||||
| Stock-based compensation | 9,014,471 | 12,536,500 | ||||||
| Change in fair value of derivative liabilities | 593,083 | |||||||
| Segment EBITDA | $ | (3,339,465 | ) | $ | (11,717,372 | ) | ||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.