Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

Liquidity, Capital Resources and Material Changes in Financial Condition

As of December 31, 2025, total assets were $2,525,110 compared to $1,842,701 in assets as of December 31, 2024. The Company's fixed assets increased from $1,552,871 to $2,228,503 due to the capitalization of the CyberloQ Platform, website development and patents, the Company's prepaid expense and deposits increased from $6,964 to $34,620 due to paying draws on commissions. In addition, the Company's cash assets were $261,987 as of December 31, 2025 as opposed to $282,866 as of December 31, 2024.

As of December 31, 2025, current liabilities were $4,160,391 compared to $2,800,867 in liabilities as of December 31, 2024. This increase in the Company's liabilities was due to an increase in the Company's convertible debt of $823,141, an increase in note payable-related party and shareholders of $125,000, an increase in accrued interest of $277,222, and increase in accounts payable and accrued expenses of $134,161.

Net cash used in operating activities for 2025 was $775,051 compared to net cash used in operating activities for 2024 of $715,123. Cash used by operating activities is driven by our net loss, which was approximately $138,437 more than in 2024, and adjusted by non-cash items as well as changes in operating assets and liabilities. Non-cash adjustments , for 2025 include stock compensation of $56,275,amortization of $1,454 and loss on prepaids of $4,849.

Net cash used by investing activities for 2025 was $588,469 and was due to the Company capitalizing development costs for the CyberloQ platform as well as website development costs and patent costs.

Net cash provided by financing activities was $1,342,641 for 2025 as compared to $1,146,859 for 2024. Proceeds from convertible debt were $903,141 in 2025, and proceeds from notes payable - related party of $125,000 offset by payments on convertible debt of $80,000, as compared to $876,859 in proceeds from convertible debt with no offsetting payments for 2024. Conversely, proceeds from common stock issuance were $394,500 for 2025 as compared to $250,000 for 2024, and proceeds from common stock to be issued was $0 for 2025 as compared to $20,000 for 2024.

The Company had no operating revenue in 2025 and $15,000 in 2024 and is currently reliant on its ability to raise additional capital and/or debt to continue execution of its business plan to move the Company forward towards profitability. The Company does not anticipate any significant decrease in its operating expenses for 2026. Unless the Company begins to generate operating revenue, it will be reliant on its ability to raise additional debt and/or capital in order to continue its operations.

Results of Operations for the Years Ended December 31, 2025 and 2024

The Company experienced a net loss of $1,127,889 for 2025 compared to net loss of $989,452 for 2024. This increase in the Company's net loss was primarily due to an increase in interest expense. The Company experienced no material change in loss from operations in 2025 as compared to 2024. Specifically, the Company experienced a loss from operations of $771,616 for 2025 compared to a loss from operations of $752,929 for 2024.

Service revenue was $0 for 2025 in comparison to $15,000 for 2024.

The increase in the Company's loss from operations was primarily due to increases in most expense categories offset by a decrease in professional fees.

Professional fees were $215,370 in 2025, compared to $299,504 in 2024. This decrease in professional fees was due to an decrease in consulting services related to software development costs associated with upgrading the source code and infrastructure of its software to accommodate increased capacity demands, and the completion of SOC 2 compliance. Additionally, there was a decrease in legal fees

Computer and internet expenses were $105,999 in 2025 as compared to $51,893 in 2024. This increase was due to an increase in hosting costs associated with the Company's web services.

Officers' compensation expense was $352,000 in 2025 as compared to $335,500 in 2024. This increase was due to an increase in officers' compensation, and bonuses paid.

Office supplies and equipment were $17,326 in 2025 as compared to $11,715 in 2024.

Other operating expenses were $58,629 in 2025 as compared to $50,509 in 2024. This increase was due to an increase in advertising and promotion offset by a decrease in bad debt.

Travel and entertainment expenses were $10,705 in 2025 as compared to $8,952 in 2024.

Amortization expense was $1,454 in 2025 as compared to $0 in 2024.

For 2025, there were no material change in rent expense, as compared to 2024.

Although the Company's loss from operations was $771,616 for 2025, the overall net loss of the Company was $1,127,889 for 2025.

In summary, total revenue was $0 for 2025, and the Company is currently reliant on its ability to raise additional debt and/or capital to continue execution of its business plan to move forward towards profitability. Whether or not there are any material changes in operational revenues or expenses in 2026 will be highly-dependent upon the Company's ability to enter into material revenue contracts with customers.

Critical Accounting Policies and Estimates

The discussion of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates and assumptions on an ongoing basis. The results of our analysis form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, and the impact of such differences may be material to our consolidated financial statements. We do not currently have any critical accounting estimates.