Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References in this Management's Discussion and Analysis of Financial Condition and Results of Operations to "us," "we," "our," and similar terms refer to the Company.

The information contained in this Form 10-Q and documents incorporated herein by reference are intended to update the information contained in the Company's Form 10-K for its fiscal year ended December 31, 2025 which includes our audited financial statements for the years ended December 31, 2025 and 2024 and such information presumes that readers have access to, and will have read, the "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and other information contained in such Form 10-K and other Company filings with the Securities and Exchange Commission ("SEC").

This statement contains forward-looking statements within the meaning of the Securities Act. Discussions containing such forward-looking statements may be found throughout this statement. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors, including the matters set forth in this statement. The accompanying consolidated financial statements include the accounts of Mobiquity Technologies, Inc. (the "Company") and its wholly owned subsidiaries.

This Quarterly Report includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as "anticipate," "estimate," "plan," "continuing," "ongoing," "expect," "believe," "intend," "may," "will," "should," "could," and similar expressions are used to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain risk factors discussed in our Annual Report on Form 10-K (filed with the Securities and Exchange Commission (the "SEC") on April 8, 2026.

Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.

Our Company

Mobiquity Technologies, Inc. is a next-generation advertising technology and data intelligence company focused on the programmatic advertising industry. The Company operates proprietary software platforms that enable advertisers, agencies, publishers and data owners to efficiently monetize digital advertising inventory, consumer data and audience insights.

Our technology ecosystem is built around three primary platform solutions:

	·	Advertising Technology Operating System (ATOS)
	·	CMOne AI Marketing Platform (formerly AdHere)
	·	Data Intelligence Platforms

These platforms provide integrated capabilities including programmatic advertising execution, AI-driven campaign optimization, audience data analytics, publisher monetization tools.

Management believes that combining advertising execution technology with data intelligence solutions positions the Company to participate in multiple segments of the digital advertising value chain.

The Programmatic Advertising Industry

Programmatic advertising refers to the automated buying and selling of digital advertising inventory using software, data and algorithms rather than manual negotiations between advertisers and publishers.

Programmatic technology allows advertisers to target audiences in real time using data signals such as location, behavioral insights and contextual information. The automation of media buying has made programmatic advertising one of the fastest-growing segments of the digital marketing industry.

Industry sources estimate global programmatic advertising spending exceeded $595 billion in 2024 and is expected to surpass $800 billion by 2028, with the United States representing the largest market.

The industry continues to evolve toward increased use of artificial intelligence, privacy-compliant data usage and vertically integrated platforms capable of executing campaigns across multiple channels.

Strategic Positioning

Our strategy is to provide a de-fragmented advertising technology ecosystem that allows advertisers, publishers and data providers to transact within a single integrated environment.

Traditional digital advertising stacks often require multiple vendors including demand-side platforms, data management platforms, fraud detection tools, analytics software and reporting platforms. Our platforms are designed to consolidate these capabilities into a unified operating system.

Additionally, through partnerships and integrations with companies such as Context Networks (Context), the Company is expanding its presence in specialized digital advertising environments, including casino gaming networks and digital out-of-home (DOOH) media within gaming establishments.

Management believes this represents a differentiated opportunity as the Company participates in advertising networks deployed across casino environments, including slot machines, gaming floors, digital signage and hospitality venues.

Our Mission

Our mission is to help enterprises in the programmatic industry become more efficient and effective regarding the monetization of advertising, audience segments and data compliance. We do this by offering three proprietary solutions: Our ATOS platform for brands and agencies, our data intelligence platform for audience segments and targeting, and our publisher platform for privacy compliance and publisher monetization.

Our Opportunity

By combining Context's innovation in gaming-specific advertising with Mobiquity's expertise in geo-targeted advertising, we're creating a first-of-its-kind platform delivering ads to slot machines in real-time Slot machine advertising technology now live with River City Amusements; beginning of a broader rollout, introducing an omni-channel ad ecosystem within casino environments (table games, card rooms, digital signage, hospitality, etc.)

Our Solutions

The ATOS Platform

The Advertising Technology Operating System ("ATOS") is our core programmatic advertising platform designed to automate the buying, selling, delivery, and measurement of digital advertising inventory across mobile, desktop, connected television (CTV), and other internet-connected devices.

ATOS incorporates artificial intelligence ("AI") and machine learning ("ML") technologies to optimize campaign performance, automate inventory management, and improve audience targeting.

Key capabilities include:

	·	Ad serving and demand-side platform functionality
	·	AI-driven campaign optimization
	·	Audience and location targeting
	·	Contextual targeting and identity graph integration
	·	Real-time analytics and campaign reporting
	·	Fraud detection and inventory quality tools
	·	Private marketplace capabilities

The ATOS platform consists primarily of proprietary internally developed technology supplemented by certain open-source software components.

Data Intelligence Platform - MobiExchange

Our Data Intelligence Platform, marketed as MobiExchange, provides data ingestion, normalization, and analytics capabilities designed to transform large volumes of data into actionable insights for advertisers and enterprise clients.

The platform aggregates multiple forms of data including location, transactional, contextual, and behavioral data. Using distributed computing and machine learning technologies, MobiExchange enables customers to analyze audiences, develop marketing insights, and build custom data products.

MobiExchange is offered primarily as a software-as-a-service ("SaaS") platform allowing users to access analytics, segmentation, and reporting tools through a self-service environment.

The platform is hosted on Amazon Web Services (AWS) infrastructure and supports scalable data processing and analytics workloads.

CMOne Publisher Platform (Formerly AdHere)

Our CMOne platform, formerly marketed as AdHere, is a publisher monetization and compliance platform designed to enable digital publishers to manage first-party data, comply with evolving privacy regulations, and optimize advertising revenue.

CMOne represents an enhanced version of the original AdHere platform and incorporates expanded functionality including:

	·	AI-assisted campaign optimization
	·	First-party data activation and audience segmentation
	·	Integrated privacy and consent management tools
	·	Direct advertising sales management
	·	Programmatic inventory monetization tools

The platform addresses industry changes resulting from increased privacy regulation and the decline of third-party identifiers, enabling publishers to maintain control over audience data while monetizing digital inventory in a compliant manner.

Our Revenue Sources

The Company generates revenue primarily through two operating models:

Platform Licensing. Clients license one or more of our platforms on a SaaS or white-label basis and pay fees typically based on platform usage or a percentage of advertising spend.

Managed Services. Under managed services arrangements, we operate advertising campaigns or platform services on behalf of clients and receive service fees or a percentage of advertising revenue.

Our customers include advertising agencies, brands, publishers, and other advertising technology companies.

Plan of Operation

Management's strategy is focused on expanding adoption of the Company's technology platforms while pursuing strategic partnerships that extend the reach of our advertising ecosystem.

Key areas of focus include:

	·	expansion of CMOne SaaS subscriptions
	·	growth of programmatic advertising volumes through ATOS
	·	expansion of data intelligence products through MobiExchange
	·	development of specialized advertising environments such as casino gaming networks
	·	continued integration of artificial intelligence tools across our platform ecosystem

Management believes these initiatives position the Company to capture opportunities across multiple segments of the rapidly expanding programmatic advertising industry.

Results of Operations

Three Months Ended March 31, 2026, Compared to Three Months Ended March 31, 2025

The following table sets forth certain selected consolidated statements of operations data for the periods indicated in dollars. In addition, we note that the period-to-period comparison may not be indicative of future performance.

		Three Months Ended
		March 31, 2026				March 31, 2025
Revenues		$	18,440			$	12,613
Cost of revenues			4,354				31,468
Gross profit (loss)			14,086				(18,855	)
Total operating expenses			2,000,654				2,126,599
Loss from operations		$	(1,986,568	)		$	(2,145,454	)

We generated revenues of $18,440 in the three months ended March 31, 2026, compared to $12,613 for the same period in 2025, an increase of $5,827. The Company has developed several new features which we believe will help grow revenue in 2026 and beyond.

Low revenue for the three months ended March 31, 2026 was influenced by several factors, including customer concentration, the timing of campaign launches and renewals, adoption of the Company's newer platforms, including CMOne, and the timing of deployments associated with the Company's partnership with Context Networks.

Although recent revenue levels have been low, management expects that future revenue growth, will be increasingly influenced by the expansion of the Company's casino and gaming advertising network, increased adoption of AI-enabled capabilities within CMOne, and growth in programmatic advertising spend processed through ATOS. However, the timing and extent of such growth remain uncertain. Management expects that future revenue growth will depend on the Company's ability to increase adoption of its software platforms, expand recurring SaaS and managed services revenue, and convert strategic deployments and partnerships into revenue-producing activity. However, there can be no assurance that these initiatives will generate revenue on the timing or scale expected by management, or that they will offset the decline from non-recurring political advertising revenue.

Cost of revenues was $4,354 or 24% of revenues for the first three months ended March 31, 2026, as compared to $31,468 or 249% of revenues in the same quarter of 2025. Costs of revenues include audience building, targeting features and web services for storage of our data and web engineers who are building and maintaining our platforms. Our ability to capture and store data for sales does not translate to increased cost of revenues.

Gross profit was $14,086, or 76% of revenues, for the first quarter of 2026 as compared to a loss of $18,855, or 149% of revenues, in the same period of 2025.

Operating expenses were $2,000,654 for the first quarter of 2026 compared to $2,126,599 in the first quarter of 2025, a decrease of $125,945. The decrease in operating costs was primarily related to decreases in professional fees of approximately $215,000 and technology expense of approximately $40,000, offset by increases in office and miscellaneous fees expense of approximately $53,000, advertising expense of approximately $39,000, and salaries expense of approximately $15,000.

Furthermore, during the three months ended March 31, 2026, the Company continued to invest in platform development, including AI and machine learning capabilities, supported integration and deployment efforts related to its strategic partnerships, and expanded business development activities.

The Company expects operating expenses to remain elevated in the near term as it continues to invest in its growth strategy. The Company's ability to achieve operating leverage is dependent upon its ability to increase revenues, which is subject to significant uncertainty.

The loss from operations for the three months ended March 31, 2026 was $1,986,568 as compared to $2,145,454 for the same quarter in 2025. Our loss from operations decreased by approximately $159,000, driven in part by the changes in operating expenses discussed above, along with the increase in amortization of debt discount of approximately $356,000. The continuing operating loss is attributable to the focused effort in creating the products and services required to move forward with our business, and the Company expects to incur operating losses in the near term as it executes its growth strategy.

Liquidity and Capital Resources

We have a history of operating losses, and our management has concluded that factors raise substantial doubt about our ability to continue as a going concern and our auditor has included an explanatory paragraph relating to our ability to continue as a going concern in its audit report for the fiscal year ended December 31, 2025.

The Company had cash of $137,933 at March 31, 2026. Cash used in operating activities for the three months ended March 31, 2026, was $1,249,949. This resulted primarily from a net loss of $2,539,031 offset by amortization of capitalized software development costs of $180,116, amortization of debt discounts of $496,613, issuance of common stock and warrants for services rendered of $390,184, and an increase in accounts payable and accrued expenses of $46,340, and a decrease in prepaid expenses and other assets of $137,577. Cash used in investing activities was insignificant. Cash flows provided by financing activities consisted of $1,128,388 of net proceeds received from the sale of common stock and $303,226 related to issuance of long-term debt, offset by repayments on long-term debt of $681,052.

The Company had cash of $331,360 on March 31, 2025. Cash used in operating activities for the three months ended March 31, 2025, was $1,318,996. This resulted primarily from a net loss of $2,295,987 offset by amortization of intangibles $180,116, stock and warrants issued for services of $641,793, increase in accounts receivable of $14,784 and a decrease in prepaid expenses and other assets of $62,501. Net cash used in operating activities also increased due to a decrease in accounts payable and accrued expenses of $73,184 for the quarter. Cash flows used in investing activities were minimal. Cash flows provided by financing activities of $492,409 resulted from cash paid on debt of $322,732 offset by net proceeds received from the issuance of debt of $245,641 and net proceeds of $569,500 from the issuance of common stock.

Our company commenced operations in 1998 and was initially funded by our three founders, each of whom have made demand loans to our company that have been repaid. Since 1999, we have relied on equity financing and borrowings from outside investors to supplement our cash flow from operations and expect this to continue in 2026 and beyond until cash flow from our proximity marketing operations becomes substantial.

Debt and Equity Transactions

For a description of debt and equity transactions for the fiscal year ending December 31, 2025, and the three months ended March 31, 2026, reference is made to the Notes to the Consolidated Financial Statements described elsewhere herein.

Off-Balance Sheet Arrangements

As of March 31, 2026, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.