Business Context and Reporting Period
Company: Our Bond, Inc. (OBAI)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
Business Overview: The Company provides a preventative personal security platform powered by AI, offering cloud-based SaaS solutions and physical security services (B2B, B2B2C, and DTC). Operations are conducted through subsidiaries in the US, Israel, UK, France, Belgium, Canada, Brazil, and Mexico.
Capital Structure: As of August 14, 2026, there were 29,975,526 shares of common stock outstanding. The Company is classified as a non-accelerated filer, smaller reporting company, and emerging growth company.
Key Financial Metrics
| Metric (in thousands) | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
|---|---|---|
| Revenue | $4,469 | $4,524 |
| Cost of Revenues | $4,555 | $4,116 |
| Gross Profit | $(86) | $408 |
| Operating Expenses | $10,219 | $4,930 |
| Net Loss | $(11,473) | $(5,197) |
| Net Loss Per Share (Basic & Diluted) | $(0.57) | $(1.75) |
| Cash and Cash Equivalents (End of Period) | $5,190 | $2,845 |
| Total Debt (Current + Long-term) | $7,666 | $7,212 |
| Working Capital | $(1,023) | $(5,703) |
Note: Working Capital calculated as Total Current Assets ($7,264) minus Total Current Liabilities ($8,287).
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased by 1.2% ($55,000) year-over-year for the six-month period, driven by a modest reduction in physical services revenue, partially offset by a 3.1% increase in SaaS revenue.
- Margin Compression: The Company moved from a positive gross profit of $408,000 in the prior year to a gross loss of $86,000. Cost of revenues increased by 10.7% due to global expansion investments and personnel costs.
- Operating Expense Surge: Operating expenses more than doubled (107.3% increase) to $10.2 million. This was primarily driven by non-recurring costs associated with the Company's public listing in February 2026, including $1.2 million in listing transaction costs, $2.0 million in strategic marketing investments, and increased public company compliance costs.
- Liquidity Improvement: Cash and cash equivalents increased significantly from $599,000 at year-end 2025 to $5,190,000 at June 30, 2026, fueled by financing activities.
- Debt Restructuring: The Company converted approximately $6.8 million of senior loan obligations into Series E Preferred Stock (later converted to common) and exchanged $3.3 million in promissory notes for Series G Preferred Stock.
Outlook, Risks, and Contingencies
- Going Concern Uncertainty: Management has disclosed a material uncertainty regarding the Company's ability to continue as a going concern due to recurring losses, negative operating cash flows, and current liabilities exceeding current assets. The Company relies on capital raising and existing financing arrangements to maintain liquidity for the next 12 months.
- Capital Raising: The Company has an equity line of credit facility (reduced from $300M to $50M) and recently raised funds through the issuance of Series D Preferred Stock and common stock under the equity line. It also issued promissory notes with a requirement to apply 25% of future net proceeds to repayment.
- Legal Proceedings: A lawsuit filed in February 2025 by a lessor in Israel seeks $1.6 million regarding a lease dispute. The Company has accrued this amount but cannot assess the likelihood of the claim being accepted at this preliminary stage.
- Guidance: Management projects that profitability will be achieved as sales and end-user numbers increase, improving platform utilization. No specific numerical guidance for future periods was provided in this filing.
Key Investor Verification Points
- Liquidity Runway: Verify the sufficiency of the $5.2 million cash balance against the $11.5 million net loss run rate and upcoming debt obligations (including the $7.7 million total debt).
- Debt Covenants: Review the terms of the remaining senior secured debt and the requirement to use 25% of future financing proceeds to repay promissory notes and redeem Series G Preferred Stock.
- Public Company Costs: Assess whether the significant increase in operating expenses ($5.3 million increase YoY) is sustainable or if it represents a one-time step-up in costs.
- Revenue Mix: Monitor the shift between high-margin SaaS revenue and lower-margin physical services, as the latter currently drives the majority of revenue but also the cost structure.
- Legal Exposure: Track the status of the $1.6 million Israeli lease litigation and potential impact on future cash flows.