Our Bond, Inc. (OBAI) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Our Bond, Inc. operates a preventative personal security platform powered by AI, offering cloud-based SaaS solutions and physical security services globally. The company completed a direct listing on February 4, 2026, and is classified as a non-accelerated filer, smaller reporting company, and emerging growth company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $2,347,000 | $2,249,000 |
| Gross Profit | $47,000 | $73,000 |
| Gross Margin | 2.0% | 3.2% |
| Net Loss | $(6,703,000) | $(2,162,000) |
| Operating Cash Flow | $(4,410,000) | $(1,416,000) |
| Cash and Equivalents (End of Period) | $3,758,000 | $1,420,000 |
| Total Debt (Current + Long-term) | $9,937,000 | $(Data not provided for Q1 2025 total) |
Note: Total Debt includes $2,500,000 Promissory Note, $1,555,000 current portion of long-term debt, and $5,882,000 long-term debt.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 4.4% year-over-year to $2.35 million, driven by continued demand for security services. SaaS revenue accounted for 15.5% of total revenue.
- Expense Surge: Operating expenses jumped 246% to $6.42 million. This increase is primarily attributed to non-recurring costs associated with the February 2026 direct listing, including $1.2 million in listing transaction costs, $2.0 million in strategic marketing investments (TV ads), and $0.8 million in investor relations expenses.
- Liquidity Improvement: Cash and cash equivalents increased from $599,000 at year-end 2025 to $3.76 million, bolstered by $7.6 million in net financing cash flows.
- Capital Structure: Significant equity activity occurred, including the conversion of Series E, B-2, and B-3 preferred stock into common stock, and the issuance of Series D preferred stock.
Outlook, Risks, and Contingencies
- Going Concern: The filing includes a "substantial doubt" disclosure regarding the company's ability to continue as a going concern due to recurring losses and negative operating cash flows. Management plans to mitigate this through capital raising.
- Guidance: Management projects that profitability will be achieved as sales and end-user numbers increase, improving platform utilization. Annual Recurring Revenue (ARR) is reported at approximately $10 million.
- Legal Contingency: A lawsuit filed in February 2025 by a former Israeli landlord seeks $1.6 million. The company has accrued this amount, but a court decision is not anticipated until 2027.
- Subsequent Events: In April and May 2026, the company reduced its equity line financing commitment from $300 million to $50 million and issued a new $1 million promissory note.
Investor Verification Checklist
- Cash Burn Rate: Verify the sustainability of the $4.4 million quarterly operating cash burn against the $3.76 million cash balance.
- Debt Covenants: Review the terms of the $2.5 million Promissory Note (due Sept 2026) and the senior secured loan facility, specifically the requirement to apply 25% of future offering proceeds to debt repayment.
- Equity Dilution: Assess the impact of the 56 million potential common share equivalents (warrants, options, convertible preferred) currently excluded from diluted EPS calculations.
- Revenue Quality: Confirm the mix of recurring SaaS revenue versus one-time service revenue, noting that 84.5% of Q1 revenue was from physical services.
- Legal Exposure: Monitor the status of the $1.6 million Israeli lease dispute and potential additional liabilities.