What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-14 compared with 2026-05-15 · 162 added, 83 removed, 255 unchanged (49% of the section changed)

81 unchanged sentences

Mexico., was incorporated in 2025 to provide services to Mexican citizens and global members.

Next Gen Physical Security LLC was incorporated in 2026 to improve the efficiency of Bond’s physical security operations, with

a primary focus on managing and delivering physical security projects (including drone operations) in the United States.

subsidiaries are 100% controlled/owned by Our Bond, Inc.

of Results of Operations

of Operational Results

Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, which provides a five-step framework through

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internal pricing data and cost-plus expected margin analysis due to the limited standalone sales history.

the three months ended March 31, 2026, the Company demonstrated annual recurring revenue (“ARR”) of approximately $10 million

and total bookings of $10.5 million.

For the three months ended March 31, 2025, the Company demonstrated ARR of approximately $9.74 million

and total bookings of $10.6 million.

The Company use ARR as a metric to measure customer demand and growth, and use booking values act

as an indicator of customer engagement, including new sales and renewals.

These figures highlight consistent growth and increasing customer

the three and six months ended June 30, 2026, the Company demonstrated annual recurring revenue (“ARR”) of approximately

$10 million and $10 million, respectively, and total bookings of $2.5 million and $4.81 million, respectively.

For the three and six

months ended June 30, 2025, the Company demonstrated ARR of approximately $9.74 million and $9.74 million, respectively, and total bookings

of $2.6 million and $4.8 million, respectively.

The Company uses ARR as a metric to measure customer demand and growth, and use booking

values act as an indicator of customer engagement, including new sales and renewals.

These figures highlight consistent growth and increasing

customer demand.

bookings represent the aggregate dollar value of all customer contracts executed during a given period, inclusive of both recurring subscription

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of Operations

of the three months ended March 31, 2026 to the three months ended March 31, 2025

majority of our net revenues for the three months ended March 31, 2026 and 2025, were generated from our B2B services.

For the three

months ended March 31, 2026, 15.47% of our revenue was generated from cloud-based SaaS services, while 84.53% came from our physical

service offerings.

This compares to 14.67% and 85.33%, respectively, for the three months ended March 31, 2025.

revenue increased by $98,000 or approximately 4.36% to $2,347,000 for the three months ended March 31, 2026, compared to approximately

$2,249 for the three months ended March 31, 2025.

This increase reflects continued demand for our security services and modest growth

in our customer base during the three months ended March 31, 2026 compared to the same period in 2025

of the three and six months ended June 30, 2026 to the three and six months ended June 30, 2025

revenues for the three and six months ended June 30, 2026 and 2025 were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except percentages)

SaaS revenue recognized over time

Services and other revenue recognized point in time

Total Revenue

majority of our net revenues for the three and six months ended June 30, 2026 and 2025, were generated from our B2B services.

three and six months ended June 30, 2026, 17.77% and 16.60%, respectively, of our revenue was generated from cloud-based SaaS services,

while 82.23% and 83.40%, respectively, came from our physical service offerings.

This compares to the three and six months ended June

30, 2025, where 17.14% and 15.92%.

respectively, of our revenue was generated from cloud-based SaaS services, and 82.86% and 84.08%,

respectively, came from our physical service offerings.

revenue decreased by $154,000 or approximately 6.77% to $2,121,000 for the three months ended June 30, 2026, compared to approximately

$2,275,000 for the three months ended June 30, 2025.

This decrease was primarily attributable to a modest reduction in the physical services

provided during the three months ended June 30, 2026, compared to the same period in 2025.

revenue decreased by $55,000 or approximately 1.21% to $4,469,000 for the six months ended June 30, 2026, compared to approximately $4,524,000

for the six months ended June 30, 2025.

This decrease was primarily attributable to a modest reduction in the physical services provided

during the three months ended June 30, 2026, compared to the same period in 2025.

of Services Sold.

cost of services sold increased slightly by $124,000 or approximately 5.7% to $2,300,000 for the three months ended March 31, 2026 compared

to $2,176,000 for the three months ended March 31, 2025.

This modest change is not considered significant and primarily reflects the

Company’s continued global expansion and the use of outsourced services to support its growth initiatives.

Three Months Ended

March 31, 2026

March 31, 2025

($ in thousands)

cost of services sold for the three and six months ended June 30, 2026 and 2025 were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except percentages)

Command Center Operations

Security Services

operating expenses for the three months ended March31, 2026 and 2025 were as follows:

Three Months Ended

March 31, 2026

March 31, 2025

($ in thousands)

Total Cost of Services Sold

cost of services sold increased by $315,000 or approximately 16.24% to $2,255,000 for the three months ended June 30, 2026 compared to

$1,940,000 for the three months ended June 30, 2025.

This increase was primarily attributable to investments supporting our global expansion,

including additional personnel and facilities required to establish and deliver our services in new markets, as well as increased resources

needed to support the growth of our client base.

cost of services sold increased by $439,000 or approximately 10.66% to $4,555,000 for the six months ended June 30, 2026 compared to

$4,116,000 for the six months ended June 30, 2025.

This increase was primarily attributable to investments supporting our global expansion,

including additional personnel and facilities required to establish and deliver our services in new markets, as well as increased resources

needed to support the growth of our client base.

anticipate that the growth in the cost of services will remain lower than the rate of revenue growth.

Most of the increase in service

costs during the three and six month periods ended June 30, 2026, was incurred in anticipation of projects that the Company either expected

to win or had been awarded but had not yet been formally contracted.

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

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except percentages)

General and Administrative

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Sales and Marketing

operating expenses for the three months ended March 31, 2026, were approximately $6,422,000 compared to approximately $1,858,000 for

the three months ended March 31, 2025, an increase of approximately $4,564,000.

increase in operating expenses for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily

attributable to non-recurring costs associated with the Company’s transition to and operation as a public company following the

completion of its public listing on February 4, 2026.

Such costs included approximately $1.2 million of one-time expenses related to

the public listing transaction, a $2.0 million strategic marketing investment related to 2026 (TV ads that will be aired in the second

half of 2026), approximately $0.8 million of investor relations expenses, and approximately $0.4 million of incremental public company

operating costs, primarily consisting of increased directors and officers insurance premiums and accounting-related expenses.

a result of the foregoing, the Company suffered a net loss of approximately $6,703,000 for the three months ended March 31, 2026, compared

to a net loss of approximately $2,162,000 for the three months ended March 31, 2025.

Total Cost of Services Sold

operating expenses for the three months ended June 30, 2026, were approximately $3,793,000 compared to approximately $3,072,000 for the

three months ended June 30, 2025, an increase of approximately $721,000.

increase in operating expenses for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily

attributable to costs associated with operating as a public company following the completion of the Company’s public listing on

February 4, 2026.

These costs included approximately $0.25 million of investor relations expenses, approximately $0.3 million of additional

payroll and related costs, and approximately $0.2 million of incremental public company operating expenses, primarily consisting of increased

directors’ and officers’ insurance premiums and accounting and other professional services fees.

operating expenses for the six months ended June 30, 2026, were approximately $10,219,000 compared to approximately $4,930,000 for the

six months ended June 30, 2025, an increase of approximately $5,289,000.

increase in operating expenses for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily

realized during the first quarter of 2026 and attributable to non-recurring costs associated with the Company’s transition to and

operation as a public company following the completion of its public listing on February 4, 2026.

Such costs included approximately $1.2

million of one-time expenses related to the public listing transaction, a $2.0 million stock deal - strategic marketing investment related

to 2026 (TV ads that will be aired in the second half of 2026), approximately $1.2 million of investor relations expenses, approximately

$0.5 million of additional payroll and related costs, and approximately $0.4 million of incremental public company operating costs, primarily

consisting of increased directors and officers insurance premiums and accounting-related expenses.

a result of the foregoing, the Company suffered a net loss of approximately $4,772,000 and $11,473,000, respectively, for the three and

six months ended June 30, 2026, compared to a net loss of approximately $3,035,000 and $5,197,000, respectively, for the three and six

months ended June 30, 2025.

and Capital Resources

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Based on our current operating plan, we believe that our existing cash and cash equivalents, together

with anticipated cash generated from operations, will support our working capital and capital expenditure requirements for the near term.

with anticipated cash generated from operations – as well as loans from existing investors and to the extent necessary the sell

of securities - will support our working capital and capital expenditure requirements for the near term.

future capital requirements will depend on many factors, including the pace of growth in our customer base, the timing and extent of

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of Cash Flows

following table summarizes our cash flows for the three months ended March 31, 2026 and 2025.

Three Months Ended

March 31, 2026

March 31, 2025

following table summarizes our cash flows for the three and six months ended June 30, 2026 and 2025.

Six Months Ended

June 30, 2026

June 30, 2025

($ in thousands)

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Cash flows from operating activities are

significantly affected by investments to support the growth of our business, including expenditures related to product and service development,

engineering resources required to maintain and enhance our technology platform, Command Center operations, and selling, general and administrative

In addition, operating cash flows during the three months ended March 31, 2026 were adversely affected by non-recurring costs

associated with the Company’s transition to and operation as a public company following the completion of its public listing on

February 4, 2026.

Such costs included approximately $1.2 million of one-time expenses related to the public listing transaction, a $2.0

million strategic marketing investment related to 2026 (TV ads that will be aired in the second half of 2026), approximately $0.8 million

of investor relations expenses, and approximately $0.4 million of incremental public company operating costs, primarily consisting of

increased directors and officers insurance premiums and accounting-related expenses.

Operating cash flow also continue to be impacted

by working capital requirements associated with supporting our growth, including fluctuations in personnel-related expenditures, accounts

payable, and other current assets and liabilities.

cash used in operating activities for the three months ended March 31, 2026 was approximately $4,410,000 which reflects our net loss

of approximately $6,703,000.

Net cash used in operating activities for the three months ended March 31, 2025 was approximately $1,416,000

significantly affected by investments to support the growth of our business, including investment in sales and marketing programs and

expenditures related to product and service development, engineering resources required to maintain and enhance our technology

platform, Command Center operations, and general and administrative functions.

In addition, operating cash flows during the six months

ended June 30, 2026 were adversely affected by non-recurring costs associated with the Company’s transition to and operation as

a public company following the completion of its public listing on February 4, 2026.

Such costs included approximately $1.2 million of

one-time expenses related to the public listing transaction, a $2.0 million stock deal - strategic marketing investment related to 2026

(TV ads that will be aired in the second half of 2026), approximately $1.2 million of investor relations expenses, approximately $0.5

million of additional payroll and related costs, and approximately $0.4 million of incremental public company operating costs, primarily

consisting of increased directors and officers insurance premiums and accounting-related expenses.

cash used in operating activities for the six months ended June 30, 2026 was approximately $8,338,000 which reflects our net loss of

approximately $11,473,000.

Net cash used in operating activities for the six months ended June 30, 2025 was approximately $2,995,000

which reflects our net loss of approximately $5,197,000.

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our Command Center growth.

cash used in investing activities for the three months ended March 31, 2026 was approximately $11,000 which was entirely attributable

to purchases of IT and other Electronic equipment.

cash provided by financing activities was $7.6 million during the three months ended March 31, 2026, consisting primarily of $2.95 million

in proceeds from the issuance of Series D convertible preferred stock, $2.5 million in proceeds from the issuance of a promissory note,

and $3.5 million from the exercise of common warrants, partially offset by repayments of related party loans, promissory note and stock issuance costs.

cash used in investing activities for the six months ended June 30, 2026 was approximately $27,000 which was entirely attributable to

purchases of IT and other Electronic equipment.

Net cash used in investing activities for the six months ended June 30, 2025 was approximately

$8,000 which was entirely attributable to purchases of IT and other Electronic equipment.

cash provided by financing activities was approximately $13,029,000 during the six months ended June 30, 2026, consisting primarily of

$2,950,000 in proceeds from the issuance of Series D convertible preferred stock, $3,500,000 in proceeds from the issuance of a promissory

notes, approximately $4,153,000 in proceeds from the issuance of Common Stock under Equity Line of Credit, and approximately $5,255,000

from the exercise of common warrants, partially offset by repayments of related party loans, promissory note, redemption of Series G

convertible preferred stock and stock issuance costs.

Net cash provided by financing activities was approximately $5,179,000 during the

six months ended June 30, 2025, consisting primarily of approximately $2,798,000 in proceeds from the issuance of Series CF convertible

preferred stock, $3,000,000 in proceeds from the issuance of Series C convertible preferred stock, partially offset by repayments of

related party loans and stock issuance costs.

of Series D Preferred Stock

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225,275 shares of Series D Preferred Stock for gross proceeds of approximately $2.1 million.

During the three months ended March 31,

2026, the Company completed the remaining closings under the SPA and issued an additional 324,176 shares of Series D Preferred Stock

for aggregate gross proceeds of approximately $2.95 million.

Issuance costs incurred during the three months ended March 31, 2026 were

approximately $0.2 million.

During the six months ended June 30, 2026,

the Company completed the remaining closings under the SPA and issued an additional 324,176 shares of Series D Preferred Stock for aggregate

gross proceeds of approximately $2.95 million.

Issuance costs incurred during the six months ended June 30, 2026 were approximately $0.2

of Series C and Series D Common Warrants

February 2026, holders of the Company’s Series C and Series D warrants exercised warrants to purchase an aggregate of 1,041,433

shares of the Company’s common stock.

The Series C warrants were exercised at an exercise price of $3.2475 per share, and the Series

D warrants were exercised at an exercise price of $12.35 per share.

As a result of these exercises, the Company received aggregate gross

proceeds of approximately $3.46 million.

the three and six months ended June 30, 2026, the Company issued 8,098 and 1,434,098 shares, respectively, of common stock upon the exercise

of warrants from the Series D financing, resulting in aggregate proceeds of approximately $100,010 and $1,882,000, respectively.

addition, the Company issued 1,033,335 and 1,033,335 shares, respectively, of common stock upon the exercise of Series C warrants at

an exercise price of $3.2475 per share, resulting in aggregate proceeds of approximately $3.35 million and $3.35 million, respectively.

Company incurred issuance costs of approximately $367,000 related to the warrant exercises.

March 1, 2026, the Company issued a Promissory Note in the principal amount of $2,500,000.

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the overdue amount.

following table summarizes our financing activities for the three months ended March 31, 2026 and 2025.

Three Months Ended

March 31, 2026

March 31, 2025

May 5, 2026, the Company issued an additional Promissory Note in the principal amount of $1,000,000.

The Promissory Note bears interest

at a rate of 10% per annum and matures on November 5, 2026.

The terms of the Promissory Note are identical to those of the Company’s

previously issued Promissory Note dated March 1, 2026, including the requirement that the Company apply 25% of the net proceeds from

any future offerings or issuances of the Company’s securities toward repayment of the Promissory Note until paid in full.

line financing

April 9, 2026, the Securities and Exchange Commission declared effective the registration statement covering the resale of shares issuable

under the Company’s equity line financing arrangement originally entered into on October 27, 2025 pursuant to a Securities Purchase

The facility provides the Company with the right, but not the obligation, to direct the purchaser to purchase shares of the

Company’s common stock from time to time, subject to specified pricing, volume and other customary conditions, for aggregate gross

proceeds of up to $300.0 million.

Following the effectiveness of the registration statement, the Company became eligible to access the

facility in accordance with its terms.

In April and May 2026, the Company entered into amendments to the equity line financing arrangement

that modified certain operational, pricing and settlement provisions and reduced the maximum aggregate purchase commitment under the

facility from $300.0 million to $50.0 million.

the three months ended June 30, 2026, the Company issued 6,438,184 shares of common stock under the equity line financing arrangement

and received aggregate net proceeds of approximately $4,000,029 net of issuance costs.

of Series G Preferred Stock

June 11, 2026, the Company entered into an Exchange Agreement with the holder of the March 1, 2026 and May 5, 2026 Promissory Notes.

Under the Exchange Agreement, the holder exchanged all outstanding principal and accrued but unpaid interest under the promissory notes,

with an aggregate value of approximately $3.3 million, for an aggregate of 336,941 shares of the Company’s Series G Convertible

Preferred Stock, consisting of 254,687 shares issued in exchange for the March 1, 2026 Promissory Note and 112,254 shares issued in exchange

for the May 5, 2026 Promissory Note.

Following the exchange, the promissory notes were cancelled and deemed paid in full.

to the terms of the Exchange Agreement, the Company is required to use 25% of the net proceeds from future offerings or issuances of

the Company’s securities to redeem the outstanding shares of Series G Convertible Preferred Stock until such shares are redeemed

During June 2026, the Company redeemed 123,096 shares of Series G Convertible Preferred Stock for aggregate cash consideration

of approximately $1.2 million, using proceeds received from the Company’s securities offerings.

following table summarizes our financing activities for the six months ended June 30, 2026 and 2025.

Six Months Ended

June 30, 2026

June 30, 2025

($ in thousands)

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Issuance of Series CF-1 Preferred Stock fundraising fees

Issuance of Series C preferred stock

Issuance of Series C preferred stock fundraising fees

Issuance of Series D convertible preferred stock

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Payment of Promissory Note

Issuance of Common Stock under Equity Line of Credit

Issuance of Common Stock under Equity Line of Credit - issuance costs

Exercise of Series C Common Warrants

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Exercise of Series D Common Warrants - issuance costs

Exercise of Common Stock

Exercise of Common Stock Warrants

Direct Listing Costs

Redemption of Series G convertible preferred stock

Sheet Arrangements

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis