CSAI — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-18

• Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025

• The majority of our net revenues for the six months ended June 30, 2026 were comprised of subscription revenue generated from our core business services (cloud video surveillance and remote guarding) and hardware sales.

• Total revenue increased by $724,000, or 40%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The Company increased the number of subscribing properties by 169% during the six months ended June 30, 2026 when compared to the same period in 2025. During the first …

• Our cost of goods sold increased by $134,000, or 12%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was the result of more installation projects which consisted of less hardware and carried a smaller margin profile than our services lines for th…

• Our operating expenses for the six months ended June 30, 2026 and June 30, 2025 were as follows:

Text removed vs the prior filing · source: 10-Q · 2026-07-17

• Our significant accounting policies are described in “Note 2 — Summary of Significant Accounting Policies.” Many of these accounting policies require judgment and the use of estimates and assumptions when applying these policies in the preparation of our financial statements. On a quarterly basis, w…

Text added vs the prior filing · source: 10-Q · 2026-08-18

• As previously reported in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, in connection with the preparation of the condensed consolidated interim financial statements for that quarter, management identified a material weakness in the Company's internal control over…

• A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

• Notwithstanding this material weakness, management has concluded that the condensed consolidated financial statements included in this report present fairly, in all material respects, our financial position, results of operations, and cash flows for the periods presented, in conformity with U.S. gen…

• Management, under the oversight of the Audit Committee of the Board of Directors, is continuing to implement the remediation plan described in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 to address the material weakness. Additionally, as described in Note 5, on J…

• The material weakness will not be considered remediated until the applicable remedial controls have operated for a sufficient period of time and management has concluded that these controls are operating effectively. Management continues to anticipate that the material weakness will be remediated no…

Text removed vs the prior filing · source: 10-Q · 2026-07-17

• Material Weakness in Internal Control over Financial Reporting

• In connection with the preparation of these condensed consolidated interim financial statements, management identified a material weakness in the Company's internal control over financial reporting relating to the accounting for complex equity-linked financial instruments. Specifically, the Company …

• A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. Th…

• Management, under the oversight of the Audit Committee of the Board of Directors, has designed and is implementing a remediation plan to address the material weakness described above. The plan is intended to address the root cause of the deficiency, specifically, the absence of sufficient qualified …

• ·Instrument intake and classification protocol. The Company has designed a new control requiring that, prior to initial recognition, all new debt and equity instruments (including instruments with embedded features, conversion rights, redemption features, or anti-dilution provisions) receive a forma…

Text added vs the prior filing · source: 10-Q · 2026-08-18

• This report should be read in conjunction with Part I – Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by the risk factors disclosed in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. There have been no material …

• As previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and as further described in Part I, Item 4 of this report, we identified a material weakness in our internal control over financial reporting related to the accounting for complex equity-linked financi…

• We are implementing remediation measures as described in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. However, we cannot assure you that these measures will be sufficient to remediate the material weakness or prevent future material weaknesses. The material weakness will n…

• If we are unable to remediate the material weakness in a timely manner, or if we identify additional material weaknesses or significant deficiencies in our internal controls, our ability to produce timely and accurate financial statements may be impaired, which could adversely affect investor confid…

• There is a risk that our Class A common stock may be delisted from Nasdaq, which would adversely affect the liquidity and market price of our Class A common stock and our ability to raise capital.

Text removed vs the prior filing · source: 10-Q · 2026-07-17

• This Report should be read in conjunction with Part I - Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in our risk factors from those set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, …

• As described in Part I, Item 4 of this Quarterly Report, we identified a material weakness in our internal control over financial reporting related to the accounting for complex equity-linked financial instruments. A material weakness is a deficiency, or a combination of deficiencies, in internal co…

• There is an increased risk that our Class A common stock may be delisted from Nasdaq, which would adversely affect the liquidity and market price of our Class A common stock and our ability to raise capital.

• Our Class A common stock is listed on The Nasdaq Capital Market. To maintain our listing, we must satisfy certain continued listing requirements, including a minimum bid price of $1.00 per share under Nasdaq Listing Rule 5550(a)(2) and timely filing of periodic reports with the SEC under Nasdaq List…

• Under Nasdaq Listing Rules, a company listed on the Nasdaq Capital Market may be eligible for an additional 180 calendar day compliance period if, on the 180th day, it meets the applicable market value of publicly held shares requirement for continued listing and all other applicable standards for i…