CLOQ 10-Q
Cyberloq Technologies, Inc. (CLOQ)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For
the quarterly period ended
or
Commission
File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
| (Commission File Number) | (IRS Employer Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s
telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| OTC QB |
Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.
Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this form 10-K or any amendment to this form 10-K.
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Smaller
reporting company | |
| Emerging
Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐ No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ☒ No ☐
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of the date of this filing, there were shares of the Issuer’s common stock issued and outstanding and held by approximately 152 shareholders, six of which are deemed affiliates within the meaning of Rule 12b-2 under the Exchange Act.
As of the date of this filing, there were 27,750 shares of the Issuer’s preferred stock issued and outstanding.
CyberloQ Technologies, Inc.
FORM 10-Q
For The Fiscal Quarter Ended June 30, 2026
TABLE OF CONTENTS
| 2 |
PART I
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q and the documents incorporated by reference herein contain forward-looking statements that are not statements of historical fact and may involve a number of risks and uncertainties. These statements related to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by forward-looking statements.
In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “proposed,” “intended,” or “continue” or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other “forward-looking” information. There may be events in the future that we are not able to accurately predict or control. Before you invest in our securities, you should be aware that the occurrence of any of the events described in this quarterly report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline and you could lose all or part of your investment. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this Annual Report to conform these statements to actual results.
The following factors are among those that may cause actual results to differ materially from our forward-looking statements:
| ● | General economic and industry conditions; | |
| ● | Out history of losses, deficits and negative operating cash flows; | |
| ● | Our limited operating history; | |
| ● | Industry competition; | |
| ● | Environmental and governmental regulation; | |
| ● | Protection and defense of our intellectual property rights; | |
| ● | Reliance on, and the ability to attract, key personnel; | |
| ● | Other factors including those discussed in “Risk Factors” in this quarterly report on Form 10-Q and our incorporated documents. |
You should keep in mind that any forward-looking statement made by us in this quarterly report or elsewhere speaks only as of the date on which we make it. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and do not intend to, update or revise the forward-looking statements in this annual report after the date of filing, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this annual report or elsewhere might not occur.
In this quarterly report on Form 10-Q, the terms “CLOQ,” “Company,” “we,” “us” and “our” refer to CyberloQ Technologies, Inc.
| 3 |
Item 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
CyberloQ Technologies, Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
| June 30, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | $ | ||||||
| Deposits and prepaids | ||||||||
| Total Current Assets | ||||||||
| Fixed Assets | ||||||||
| CyberloQ platform | ||||||||
| Website | ||||||||
| Patents | ||||||||
| Total Fixed Assets | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable and Accrued Expenses | $ | $ | ||||||
| Accrued interest | ||||||||
| Note Payable – Stockholders | ||||||||
| Note Payable – Related Party | ||||||||
| Convertible debt – Stockholders, net | ||||||||
| Loan payable - SBA | ||||||||
| Total Current Liabilities | ||||||||
| Long Term Liabilities | ||||||||
| SBA Loan Payable | ||||||||
| Total Long Term Liabilities | ||||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, $ par value, shares authorized: and shares issued and outstanding, respectively | ||||||||
| Common stock: $ par value, shares authorized; and shares issued and outstanding, respectively | ||||||||
| Treasury stock | ( | ) | ( | ) | ||||
| Preferred shares to be issued: and | ||||||||
| Common shares to be issued: and common shares respectively | ||||||||
| Additional Paid in Capital | ||||||||
| Accumulated Deficit | ( | ) | ( | ) | ||||
| Total Stockholders’ Equity | ( | ) | ( | ) | ||||
| Total Liabilities and Stockholders’ Equity | $ | $ | ||||||
See accompanying notes to financial statements
| F-1 |
CyberloQ Technologies, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Operational Expense | ||||||||||||||||
| Professional Fees | $ | $ | $ | $ | ||||||||||||
| Officer’s Compensation | ||||||||||||||||
| Travel and Entertainment | ||||||||||||||||
| Rent | ||||||||||||||||
| Computer and Internet | ||||||||||||||||
| Office Supplies and Expenses | ||||||||||||||||
| Other Operating Expenses | ||||||||||||||||
| Amortization | ||||||||||||||||
| Total Operating Expenses | ||||||||||||||||
| Loss from Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income | ||||||||||||||||
| Other expense | ( | ) | ( | ) | ||||||||||||
| Total Other Income (Expenses) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Provision for Income Taxes | ||||||||||||||||
| Net Loss | $ | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
| Loss per common share-Basic and diluted | $ | ) | ) | ) | ) | |||||||||||
| Weighted Average Number of Common Shares Outstanding Basic and diluted | ||||||||||||||||
See accompanying notes to financial statements
| F-2 |
CyberloQ Technologies, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
(unaudited)
From January 1, 2025 to June 30, 2026
| Common | Common | Preferred | Preferred | Add’l | ||||||||||||||||||||||||||||||||||||||||
| (Issued) | (Unissued) | Stock | (Unissued) | Paid-In | Treasury | Accum. | ||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Amount | Shares | Amount | Shares | Amount | Capital | Stock | Deficit | Total | ||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||||||||
| Common stock to be issued | ( | ) | - | |||||||||||||||||||||||||||||||||||||||||
| Common stock issued for cash | - | |||||||||||||||||||||||||||||||||||||||||||
| Net loss, March 31, 2025 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||||||
| Common stock issued for cash | - | |||||||||||||||||||||||||||||||||||||||||||
| Common stock to be issued | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Net loss, June 30, 2025 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Common stock to be issued | ( | ) | - | |||||||||||||||||||||||||||||||||||||||||
| Preferred stock to be issued | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Common stock issued for cash | - | |||||||||||||||||||||||||||||||||||||||||||
| Net loss, September 30, 2025 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Common stock issued for cash | - | |||||||||||||||||||||||||||||||||||||||||||
| Preferred shares to be issued for convertible debt | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Net loss, December 31, 2025 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Common stock issued for cash | - | |||||||||||||||||||||||||||||||||||||||||||
| Common stock to be issued | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Preferred Shares issued | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Preferred shares issued for convertible debt | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||
| Net loss, March 31, 2026 | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2026 | $ | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||||||||
| Common stock issued for cash | ( | ) | - | - | ||||||||||||||||||||||||||||||||||||||||
| Preferred shares issued for services | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Preferred shares to be issued | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Net loss June 30, 2026 | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||
| Balance June 30, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
See accompanying notes to financial statements
| F-3 |
CyberloQ Technologies, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30,
| 2026 | 2025 | |||||||
| (unaudited) | (unaudited) | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Amortization | ||||||||
| Stock compensation | ( | ) | ||||||
| Change in Operating Assets and Liabilities: | ||||||||
| Decrease (increase) in deposits and prepaids | ( | ) | ( | ) | ||||
| Increase (decrease) in accounts payable and accrued expenses | ||||||||
| Increase (decrease) in accrued interest | ||||||||
| Net Cash Used in Operating Activities | ( | ) | ( | ) | ||||
| INVESTING ACTIVITIES | ||||||||
| Software | ( | ) | ( | ) | ||||
| Website | ( | ) | ||||||
| Patents | ( | ) | ||||||
| Net cash provided by (used) in investing activities | ( | ) | ( | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from sale of common stock | ||||||||
| Proceeds from sale of common stock to be issued | ||||||||
| Proceeds from convertible debt | ||||||||
| Payment of convertible debt | ( | ) | ||||||
| Repayment of note payable | ( | ) | ||||||
| Proceeds from note payable-stockholders | ||||||||
| Net Cash Provided by Financing Activities | ||||||||
| Net Increase (Decrease) in Cash and Equivalents | ( | ) | ( | ) | ||||
| Cash and Equivalents at Beginning of the Period | ||||||||
| Cash and Equivalents at End of the Period | $ | $ | ||||||
| SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
| Interest Paid | $ | $ | ||||||
| Income Taxes Paid | $ | $ | ||||||
| NON-CASH DISCLOSURES | ||||||||
| Common stock issued for convertible debt | $ | $ | ||||||
See accompanying notes to financial statements
| F-4 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six Months Ended June 30, 2026
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Business
CyberloQ Technologies Inc. (“CLOQ”, ‘We” or the “Company”) is a development-stage technology company focused on fraud prevention and credit management. The Company was originally incorporated as Advanced Credit Technologies, Inc. in the State of Nevada on February 25, 2008. On November 20, 2019, the Company changed its name from Advanced Credit Technologies, Inc. to CyberloQ Technologies, Inc.
The Company offers a proprietary software platform branded as CyberloQ®. While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ.
CyberloQ is a banking fraud prevention technology that is offered to institutional clients in order to combat fraudulent transactions and unauthorized access to customer accounts. Through the use of a customer’s smart-phone, CyberloQ uses a multi-factor authentication system to control access to a bank card, transaction type or amount, website, database or digital service. The mobile applications for CyberloQ have been built and have been successfully integrated into the banking ecosystem.
The CyberloQ Vault is a “cloud based’ security protocol that allows clients the ability to send/receive secure data without having to use traditional e-mail which is prone to a breach. This CyberloQ service uses cloud-based encryption and a secure web portal to send/receive confidential data, the sender and receiver both must have authenticated their position within the prescribed geo coordinates as well as authenticate their mobile devices prior to sending/receiving any data. Thus, rendering a hack or breach utterly useless for the encrypted data is unusable without the CyberloQ authentication component.
In addition to CyberloQ, the Company offers a web-based proprietary software platform under the brand name Turnscor® which allows customers to monitor and manage their credit from the privacy of their own homes. Although individuals can sign-up for Turnscor on their own, the Company also intends to market Turnscor to certain institutional clients, where appropriate, in conjunction with CyberloQ as a value-added benefit to offer their customers.
Basis of Presentation
The financial statements of the Company have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and the rules of the Securities and Exchange Commission. All amounts are presented in U.S. dollars. The Company has adopted a December 31 fiscal year end.
Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission.
Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and transactions have been eliminated.
Use of Estimates
In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the year reported. Actual results may differ from these estimates. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
| F-5 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
Cash and Cash Equivalents
Cash
equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company maintains
its cash in bank deposit accounts, which at times may exceed federally insured limits. As of June 30, 2026, and December 31, 2025, the
Company had $
Research and Development, Software Development Costs, and Internal Use Software Development Costs
Software development costs are accounted for in accordance with ASC Topic No. 985. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable. For products where proven technology exists, this may occur very early in the development cycle. Factors we consider in determining when technological feasibility has been established include (i) whether a proven technology exists; (ii) the quality and experience levels of the individuals developing the software; (iii) whether the software is similar to previously developed software which has used the same or similar technology; and (iv) whether the software is being developed with a proven underlying engine. Technological feasibility is evaluated on a product-by-product basis. Capitalized costs for those products that are canceled or abandoned are charged immediately to cost of sales. The recoverability of capitalized software development costs is evaluated on the expected performance of the specific products for which the costs relate.
During
the six months ended June 30, 2026, and 2025, we capitalized $
Internal use software development costs are accounted for in accordance with ASC Topic No. 350 which requires the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality.
In
accounting for website software development costs, we have adopted the provisions of ASC Topic No. 350. ASC Topic No. 350 provides that
certain planning and training costs incurred in the development of website software be expensed as incurred, while application development
stage costs are to be capitalized. During the period ended September 30, 2023, the Company began capitalizing website development costs,
for the six month period ended June 30, 2026 and 2025 we capitalized $
Fixed Assets, Intangibles and Long-Lived Assets
The
Company records its fixed assets at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of
fixed assets, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book
value is recorded as a gain or loss on sale of assets. The Company depreciates its fixed assets over their respective estimated
useful lives ranging from three to
The
Company follows FASB ASC 360-10, “Property, Plant, and Equipment,” which established a “primary asset”
approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for
a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not
recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.
Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. As of December 31,
2020, the Company wrote-off the book value of the CyberloQ technology software fixed asset and recorded software impairment expense of
$
Patent
costs including those incurred to acquire patents, including legals costs, are capitalized and amortized using the straight line method
over their estimated useful lives or statutory lives, whichever is shorter, and are reviewed for impairment upon any triggering event
that may give rise to the assets ultimate recoverability as prescribed under the guidance related to impairment of long-lived assets.
As of June 30, 2026, the Company has capitalized $
| F-6 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
Fair Value Measurements
For certain financial instruments, including accounts receivable, accounts payable, accrued expenses, interest payable, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities.
The Company has adopted FASB ASC 820-10, “Fair Value Measurements and Disclosures.” FASB ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:
| ● | Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. |
| ● | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
| ● | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with FASB ASC 815.
Segment Reporting
The Company has not yet begun generating revenue from its planned principal operation and operates as a single reportable segment. The principal executive officer of the Company is the chief operating decision maker who assesses performance based on total expenses, cash flows and progress made towards the CyberloQ Secure Solution.
Advertising
Advertising
costs are expensed as incurred. Advertising expense for the three-months ended June 30, 2026, and 2025 were $
| F-7 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
Earnings per share is calculated in accordance with the FASB ASC 260-10, “Earnings Per Share.” Basic earnings (loss) per share is based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.
At June 30, 2026 and December 31, 2025, the Company has warrants outstanding, options outstanding, but none of them have vested, are not exercisable and therefore not included, and had and convertible debt shares irrespectively that could have been exercised and could have been dilutive to the existing number of shares issued and outstanding. The convertible debt shares were not included in the weighted average shares outstanding as they were anti-dilutive.
The computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements.
NOTE 2 – INTANGIBLE ASSETS
Software, website and patents, recorded at cost, consisted of the following:
| June 30, 2026 | December 31, 2025 | |||||||
| CyberloQ platform | $ | $ | ||||||
| Website | ||||||||
| Patent | ||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| Fixed assets, net | $ | $ | ||||||
Amortization
expense was $
| F-8 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
NOTE 3 – GOING CONCERN
The
Company has incurred losses since Inception resulting in an accumulated deficit of $
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that could result from the outcome of this uncertainty.
The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
| F-9 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
NOTE 4 – STOCKHOLDERS’ EQUITY
Common Stock
The Company has shares of $ par value common stock authorized as of June 30, 2026 and 2025.
During
the three month period ended June 30, 2026, the Company received $
During
the three month period ended June 30, 2025, the Company received $
Treasury Stock
The
Company entered into a settlement agreement with a prior employee, officer and director resulting in treasury stock of shares
valued at $
Preferred Stock
The
Company did not have any preferred stock prior to 2017. In April of 2017, the Company amended its articles of incorporation to create
a new class of stock designated Series A Super Voting Preferred Stock consisting of thirty-thousand () shares at par value of $
per share. Certain rights, preferences, privileges and restrictions were established for the Series A Preferred Stock as follows: (a)
the amount to be represented in stated capital at all times for each share of Series A Preferred Stock shall be its par value of $
per share; (b) except as otherwise required by law,
During
the three month period ended June 30, 2026, the Company issued shares of Series B Preferred Stock for services valued at $
During the three month period ended June 30, 2025, the Company did not issue any shares of preferred stock.
Incentive Stock Options
The
employment contracts for Christopher Jackson and Enrico Giordano include performance incentive stock options based upon the Company meeting
certain performance conditions that can potentially result in the issuance of stock option awards of up to shares each in the
event that the Company reaches certain performance goals. Specifically,
| F-10 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
NOTE 5 – SBA EIDL Loan
On
June 9, 2020, the Company received an Economic Injury Disaster Loan from the Small Business Administration in the amount of $
| Payment Obligations | ||||
| Amount | ||||
| 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 to 2050 | ||||
| Total | $ | |||
NOTE 6 – RELATED PARTY TRANSACTIONS
Related Parties and Stockholders Notes Payable
The following is a summary of related party notes payable:
| For the Periods Ended | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| Notes payable – stockholders | $ | $ | ||||||
| Convertible debt - stockholders | $ | $ | ||||||
| Notes payable – related parties | $ | $ | ||||||
Notes Payable - Stockholders
On
December 29, 2014, the Company entered into a partially-convertible promissory note with a stockholder in the amount of $
On
February 18, 2026, the Company entered into a promissory note with a stockholder in the amount of $
On April 3, 2026, the Company entered into a promissory
note with a stockholder in the amount of $
On April 29, 2026, the Company entered into a promissory
note with a stockholder in the amount of $
On April 29, 2026, the Company entered into a promissory
note with a stockholder in the amount of $
On May 20, 2026, the Company entered into a promissory
note with a stockholder in the amount of $
On June 30, 2026, the Company entered into a promissory
note with a stockholder in the amount of $
Convertible Debt - Stockholders
| June 30, 2026 | December 31, 2025 | |||||||
| Principal | $ | $ | ||||||
| Adjustment for ASU 2020-06 | ||||||||
| Convertible Debt - Stockholders, net | $ | $ | ||||||
| F-11 |
CyberloQ Technologies, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
For the Six months Ended June 30, 2026
As of June 30, 2026 the Company had the following convertible debt outstanding:
| Issuance Date | Principal | Maturity Date | Conversion Terms | |||||||
| Total | ||||||||||
Notes Payable - Related Parties
On
July 8, 2025, the Company entered into a Promissory Note with the director of the Company in the amount of $
On
December 31, 2021, the Company entered into a loan modification agreement with a director which consolidated three outstanding promissory
notes dated August 8, 2020, September 9, 2020, and December 28, 2020 into one loan. The total amount borrowed is $
NOTE 7 – SUBSEQUENT EVENTS
On July 5, 2026, the Company issued shares of common stock for
cash of $
On July 23, 2026, the Company issued shares of common stock for
cash of $
On July 30, 2026, the Company issued shares
valued at $
On August 4, 2026, the Company issued shares
of common stock for cash of $
On August 5, 2026, the Company issued
shares of common stock for cash of $
On August 7, 2026, the Company issued shares
of common stock for cash of $
On
August 19, 2026, the Company issued shares of common stock for cash of $
The Company is not aware of any other subsequent events through the date of this filing that require disclosure or recognition in these financial statements.
| F-12 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion is intended to assist you in understanding our business and the results of our operations. It should be read in conjunction with the Condensed Financial Statements and the related notes that appear elsewhere in this report as well as our Report on Form 10K filed with the Securities and Exchange Commission for the period ending December 31, 2025. Statements made in this Form 10-Q that are not historical or current facts are “forward-looking statements”. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Company History
CyberloQ Technologies Inc. (“CLOQ”, ‘We” or the “Company”) was incorporated in Nevada on February 5, 2008 as Advanced Credit Technologies, Inc. The Company changed its name to CyberloQ Technologies, Inc. on November 20, 2019. The Company has never been the subject of any bankruptcy, receivership or similar proceeding. The Company has never been involved in any material reclassification, merger, or consolidation.
On June 15, 2017, the Company created a private limited company in the United Kingdom named CyberloQ Technologies LTD. CyberloQ Technologies LTD is a wholly-owned subsidiary of the Company, and any business that the Company has in the United Kingdom will be transacted through CyberloQ Technologies LTD. However, to date CyberloQ Technologies LTD has had no activity, operational or otherwise and is now dissolved.
Current Overview of the Company
The Company is a development-stage technology company focused on fraud prevention and credit management.
The Company offers a proprietary software platform branded as CyberloQ®. While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ.
CyberloQ is a MFA (Multi Factor Authentication) protocol technology that is offered to institutional clients in order to combat fraudulent transactions and unauthorized access to customer accounts or any digital asset. Through the use of a customer’s smart-phone, CyberloQ uses a multi-factor authentication system to control access to a bank card, transaction type or amount, website, database or digital service. The mobile applications for CyberloQ have been built, and have been successfully integrated into the banking ecosystem. The Company has also updated the entire infrastructure, UI/UX and streamlined the deliverable services per strategic partnerships with clients in multiple channels in order to increase the scalability of the original platform.
In addition to CyberloQ, the Company offers a web-based proprietary software platform under the brand name TurnScor® which allows customers to monitor and manage their credit from the privacy of their own homes. Although individuals can sign-up for TurnScor on their own, the Company also intends to market TurnScor to certain institutional clients, where appropriate, in conjunction with CyberloQ as a value-added benefit to offer their customers.
The CyberloQ Vault is a “cloud based’ security protocol that allows clients the ability to send/receive secure data without having to use traditional e-mail which is prone to a breach. This CyberloQ service uses cloud-based encryption and a secure web portal to send/receive confidential data, the sender and receiver both must have authenticated their position within the prescribed geo coordinates as well as authenticate their mobile devices prior to sending/receiving any data. Thus, rendering a hack or breach utterly useless for the encrypted data is unusable without the CyberloQ authentication component.
The Company currently has two full-time employees — its President and Vice-President. There are no other employees of the Company at this time.
The Company also has a Board of Advisors comprised of individuals from the banking, business development, and technical sectors to advise the Company as it moves forward with its business strategy. The Board of Advisors does not have any decision-making authority.
| 4 |
Liquidity, Capital Resources and Material Changes in Financial Condition
As of June 30, 2026, the Company’s assets were $2,610,840 compared to $2,525,109 in assets as of December 31, 2025.
This change in the Company’s financial condition can be primarily attributed to an increase in intangible assets of $288,997 due to the capitalization of the CyberloQ Platform, website development, the acquisition of patents, and an increase in the Company’s prepaid expense from $34,620 to $45,366. This increase in current assets was partially offset by a decrease in cash from $261,987 as of December 31, 2025 to $49,975 as of June 30, 2026.
As of June 30 2026, the Company’s liabilities were $4,635,249 compared to $4,190,752 in liabilities as of December 31, 2025. This change in the Company’s financial condition can be primarily attributed to an increase of $33,646 in accounts payable and accrued expenses, along with an increase of $185,851 in accrued interest and an increase in notes payable stockholders of $225,000.
Net cash used in operating activities for the six-month period ending June 30, 2026, was $289,261 compared to $403,612 for 2025. Cash provided by or used by operating activities is driven by our net loss and adjusted by noncash items as well as changes in operating assets and liabilities. At June 30, 2026, there is a negative $40,797 in stock compensation resulting from preferred shares issued for services of $4,516 and preferred stock issued for interest of $1,459 and by a correcting entry for the reduction in valuation of preferred shares issued for interest in Quarter 4, 2025 of $47,032 and a positive $1,454 in amortization in non cash adjustments.
Net cash used by investing activities was $288,451 for the six months ended June 30, 2026 as compared to $319,442 for 2025.
Net cash provided by financing activities was $365,700 for the six months ended June 30, 2026 as compared to $526,642 for 2025.
Results of Operations for the Three Months Ended June 30, 2026 and 2025
The Company had no revenue for the three months ended June 30, 2026 and 2025
The Company’s operating expenses were $115,283 for the three months ended June 30, 2026 as compared to $163,269 for the three months ended June 30, 2025. This decrease in operating expenses was primarily due to a decrease in professional fees which was $26,966 for the three months ended June 30, 2026 compared to $62,014 for the three months ended June 30, 2025, and a decrease in computer and internet expense which was $10,412 for the three months ended June 30, 2026 as compared to $27,195 for the three months ended June 30, 2025 which was due a difference in web services.
In addition, the Company experienced changes in expense categories as noted below.
Travel expenses were $2,115 for the three months ended June 30, 2026 as compared to $220 for the three months ended June 30, 2025.
Other operating expenses were $5,275 for the three months ended June 30, 2026 as compared to $5,153 for the three months ended June 30, 2025.
Office supplies and expenses were $4,124 for the three months ended June 30, 2026 as compared to $3,075 for the three months ended June 30, 2025.
Finally, there were no material changes in the Company’s rent, officer compensation and amortization expenses in the three months ended June 30, 2026 as compared to the three months ended June 30, 2026.
As a result of the foregoing, the Company experienced a net loss from operations of $115,283 in the three months ended June 30, 2026 compared to a net loss from operations of $163,269 in the three months ended June 30, 2025.
Results of Operations for the Six Months Ended June 30, 2026 and 2025
The Company had no revenue for the six months ended June 30, 2026 and 2025
The Company’s operating expenses were $300,290 for the six months ended June 30, 2026 as compared to $430,262 for the six months ended June 30, 2025. This decrease in operating expenses was primarily due to a decrease in officers compensation which was $126,000 for the six months ended June 30, 2026 as compared to $226,000 for the six months ended June 30, 2025 which was due to one-time bonuses that were paid to officers’ in the first quarter of 2025.
In addition, the Company experienced changes in expense categories as noted below.
Computer and internet expenses were $38,170 for the six months ended June 30, 2026 as compared to $57,338 for the six months ended June 30, 2025.
Travel expenses were $2,115 for the six months ended June 30, 2026 as compared to $10,339 for the six months ended June 30, 2025.
Other operating expenses were $11,105 for the six months ended June 30, 2026 as compared to $7,977 for the six months ended June 30, 2025.
Professional fees were $107,898 for the six months ended June 30, 2026 compared to $113,566 for the six months ended June 30, 2025.
Office supplies and expenses were $8,386 for the six months ended June 30, 2026 as compared to $9,979 for the six months ended June 30, 2025.
Amortization expenses were $1,454 for the six months ended June 30, 2026 as compared to $0 for the six months ended June 30, 2025.
Finally, there were no material changes in the Company’s rent in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
As a result of the foregoing, the Company experienced a net loss from operations of $300,290 in the six months ended June 30, 2026 compared to a net loss from operations of $430,262 in the six months ended June 30, 2025
| 5 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company qualifies as a smaller reporting company as defined by §229.10(f)(1) and therefore is not required to provide the information required by this Item.
ITEM 4. CONTROLS AND PROCEDURES
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2026 in accordance with Committee of Sponsoring Organizations of the Treadway Commission’s 2013 Integrated Framework. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. In addition, due to its current size, the Company currently does not have sufficient staff to maintain appropriate segregation of duties, as it pertains to application and oversight of internal control processes. Material weaknesses have previously been identified, including lack of segregation of duties and lack of formal written policies and procedures surrounding financial close and reporting. However, the Company anticipates that as it grows and formalizes its internal control processes and procedures, it will add sufficient staff to perform internal control processes, as well as adequately provided oversight to ensure processes are working as designed. Such officer also confirmed that there was no change in our internal control over financial reporting during the three-month period ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
| 6 |
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not currently a party to any legal proceedings, nor is the Company a party to any administrative proceedings.
In addition, the Company’s officers and directors have not been convicted in any criminal proceedings nor have they been permanently or temporarily enjoined, barred, suspended or otherwise limited from involvement in any type of securities or banking activities.
Item 1A. Risk Factors
The Company qualifies as a smaller reporting company as defined by §229.10(f)(1) and therefore is not required to provide the information required by this Item. However, the Company does acknowledge that there are risks associated with the business of the Company.
We will be competing with a variety of companies, many of which have significantly greater financial, technical, marketing and other resources than us. If we fail to attract and retain a large base of customers for our products, or if our competitors establish a more prominent market position relative to ours, this will inhibit our ability to grow and successfully execute our business plan. For example, Wells Fargo has introduced an “on/off” feature for their customers, Discover Card has “Freeze It” functionality, and Ondot Systems has already been operating in the mobile card security space for quite some time. However, the Company believes that the multi-purpose functionality of CyberloQ, along with its multi-purpose applications will give the Company a distinct advantage by comparison. CyberloQ can be used in the banking system to protect debit/credit cards, in the health care industry to protect PII (Personal Identifying Information) now that medical records are kept digitally, and can protect corporate data bases in any industry from outside intrusion via geo-fencing. The Company believes that these distinct features, along with the ability to “White Label” the technology for marketing partners, give the Company a distinction in the marketplace. However, there can be no assurance that we will be able to successfully compete with other companies in the marketplace.
In addition, the Company could incur increased costs, decreased revenue, or suffer reputational damage in the event of a cyber-attack. The Company’s business involves the collection, storage, processing and transmission of customers’ personal data, including financial information. In the event that the Company’s security measures are breached due to human error, malfeasance, system errors or vulnerabilities, or other irregularities, such breach could adversely affect our business through possible interruption of the Company’s operations, improper disclosure of data, damage to the Company’s reputation, and/or legal exposure.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
During the first six months of 2026, the Company raised $100,700 for the operations of the Company through the unregistered sale of 2,714,000 shares of restricted common stock.
All of the shares described above were issued by the Company in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 4(2). All of the purchasers of the unregistered securities were all known to us and our management, through pre-existing business relationships, as long standing business associates, friends, and employees. All purchasers were provided access to all public material information, which they requested, and all information necessary to verify such information and were afforded access to our management in connection with their purchases. All purchasers of the unregistered securities acquired such securities for investment and not with a view toward distribution, acknowledging such intent to us. All certificates or agreements representing such securities that were issued contained restrictive legends, prohibiting further transfer of the certificates or agreements representing such securities, without such securities either being first registered or otherwise exempt from registration in any further resale or disposition.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The Company is not in default on any financing arrangements at this time.
ITEM 4. OTHER INFORMATION
There exists no information required to be disclosed by us in a report on Form 8-K during the three-months ended June 30, 2026, but not reported.
| 7 |
ITEM 5. EXHIBITS
Exhibits have been filed separately with the United States Securities and Exchange Commission in connection with the quarterly report on Form 10-Q or have been incorporated into the report by reference.
| Exhibit | Description | |
| 3.1(i) | Articles of Incorporation* | |
| 3.2(i) | Amended Articles of Incorporation dated May 4, 2010* | |
| 3.3(i) | Amended Articles of Incorporation dated May 5, 2017** | |
| 3.4(i) | Amended Articles of Incorporation dated November 20, 2019*** | |
| 3.4(ii) | By-Laws**** | |
| 14.1 | Code of Ethics**** | |
| 14.2 | Related-Party Transactions Policy**** | |
| 14.3 | Anti-Corruption Policy**** | |
| 16.1 | Letter re Change in Certifying Accountant ***** | |
| 31.1 | Rule 13a-14(a) / 15d-14(a) Certification of Principal Executive Officer & Principal Financial Officer.****** | |
| 32.1 | Section 1350 Certification of the Principal Executive Officer & Principal Financial Officer.****** | |
| 101.1 | Interactive data files pursuant to Rule 405 of Regulation S-T.******* | |
| 101.INS | Inline XBRL Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
| * | Incorporated by reference through the Registration Statement on form S-1 filed with the Commission on October 26, 2010. (101141203) | |
| ** | Incorporated by reference through the Quarterly Report on form 10-Q filed with the Commission on May 11, 2017. (17832815) | |
| *** | Incorporated by reference through the Quarterly Report on form 10-Q filed with the Commission on August 20, 2024. (_____________) | |
| **** | Incorporated by reference through the Current Report on form 8-K filed with the Commission on November 6, 2017. | |
| ***** | Incorporated by reference through the Current Report on form 8-K filed with the Commission on May 19, 2017. | |
| ****** | Filed herewith. In addition, in accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed. | |
| ******* | Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
| 8 |
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CYBERLOQ TECHNOLOGIES, INC. | ||
| By: | /s/ Christopher Jackson | |
| Christopher Jackson | ||
| President, Secretary, Treasurer and Director | ||
| Principal Executive Officer | ||
| Principal Financial Officer | ||
| Date: August 19, 2026 | ||
Pursuant to the requirements of the Securities Act of 1933, this report has been signed by the following persons in the capacities and on the dates indicated.
| CYBERLOQ TECHNOLOGIES, INC. | ||
| By: | /s/ Enrico Giordano | |
| Enrico Giordano, Director | ||
| Date: August 19, 2026 | ||
| By: | /s/ Leon Hurst | |
| Leon Hurst, Director | ||
| Date: August 19, 2026 | ||
| By: | /s/ Christopher Jackson | |
| Christopher Jackson, Director | ||
| Date: August 19, 2026 | ||
| 9 |