Quarterly Report for Quarter Ending June 30, 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.

Recent Developments

During July 2026, the Company announced a strategic evolution of its business centered on GrowthOS™, its AI-powered customer acquisition operating system. Building upon years of experience in audience intelligence, location-based data, programmatic advertising, and campaign execution, the Company is expanding beyond traditional advertising technology to provide an integrated platform designed to automate and optimize customer acquisition.

Management believes customer acquisition has become increasingly complex as organizations rely on numerous disconnected technologies, including advertising platforms, customer relationship management systems, analytics tools, artificial intelligence applications, and marketing automation software. GrowthOS is designed to unify these capabilities within a single intelligent operating environment that continuously transforms data into customer intelligence, customer intelligence into AI-driven decisions, and those decisions into automated execution across customer acquisition channels.

GrowthOS is built upon three proprietary technology components:

	·	GeoIntel™, which transforms consumer, behavioral, geographic, transactional, and contextual data into predictive customer intelligence;
	·	CMOne™, which serves as the AI decision engine that determines customer targeting, messaging, timing, and optimization strategies; and
	·	ATOS™ (Advertising Technology Operating System), which automates campaign activation, execution, measurement, and optimization across digital customer acquisition channels.

These integrated technologies create a closed-loop system that continuously collects performance data, refines predictive models, improves AI decision-making, and enhances future customer acquisition performance. Management believes this architecture enables the platform to become more intelligent over time as additional customer interactions generate new data signals.

Unlike traditional advertising platforms that primarily generate advertising revenue, GrowthOS is designed to support multiple recurring and transaction-based revenue streams, including software subscriptions, platform licensing, managed services, AI-powered customer acquisition solutions, data intelligence, analytics, media execution, strategic partnerships, and enterprise integrations.

Management believes the Company's strategic transition positions Mobiquity at the intersection of several large and rapidly growing technology markets, including artificial intelligence, enterprise software, predictive analytics, decision intelligence, marketing automation, and customer acquisition technology.

Our Company

Mobiquity Technologies, Inc. is an AI software and customer acquisition technology company that develops proprietary software designed to help enterprises identify, acquire, engage, and retain customers through intelligent automation.

The Company's proprietary GrowthOS™ platform combines customer intelligence, artificial intelligence, predictive analytics, and automated execution into a unified operating system that enables organizations to optimize customer acquisition throughout the customer lifecycle.

GrowthOS is built upon three integrated technology platforms:

	·	GeoIntel™ - customer intelligence and predictive analytics
	·	CMOne™ - AI-powered decisioning and workflow automation
	·	ATOS™ - campaign activation, execution, measurement, and optimization

Together, these technologies create an intelligent operating environment capable of continuously learning from customer interactions while improving acquisition efficiency through automation and machine learning.

Industry Opportunity

Management believes customer acquisition represents one of the largest recurring operating expenditures for businesses across industries including healthcare, financial services, retail, hospitality, gaming, automotive, real estate, telecommunications, and e-commerce.

Organizations increasingly depend on multiple independent software products to manage advertising, customer relationship management, analytics, personalization, artificial intelligence, and marketing automation. This fragmented technology environment often creates operational inefficiencies, inconsistent customer experiences, and rising acquisition costs.

Management believes the market is evolving toward integrated AI-driven operating systems capable of combining customer intelligence, autonomous decision-making, and automated execution within a single platform. GrowthOS is designed to address this market opportunity.

Our Technology Platform

GrowthOS is an autonomous customer acquisition operating system consisting of three integrated software components.

GeoIntel™

GeoIntel transforms consumer, behavioral, geographic, transactional, and contextual information into predictive customer intelligence. The platform creates audience models, identifies customer opportunities, and provides actionable insights that support acquisition and engagement strategies.

CMOne™

CMOne serves as the AI decision layer within GrowthOS. The platform utilizes artificial intelligence and machine learning to determine customer targeting, messaging, timing, content generation, channel selection, and campaign optimization.

ATOS™

ATOS is the execution engine that activates and manages customer acquisition campaigns across digital advertising and customer engagement channels. The platform automates campaign deployment, optimization, measurement, attribution, and reporting while providing continuous feedback to the GrowthOS intelligence engine.

Revenue Model

The Company generates revenue through multiple complementary business models, including:

	·	Software-as-a-Service (SaaS) subscriptions
	·	Platform licensing and white-label solutions
	·	Managed customer acquisition services
	·	AI-powered marketing and automation solutions
	·	Data intelligence and analytics services
	·	Media execution and campaign management
	·	Implementation and integration services
	·	Strategic technology partnerships

Management expects recurring software and platform-based revenue to become an increasingly significant component of total revenue as GrowthOS adoption expands.

Plan of Operation

Management's primary objective is to expand commercial adoption of GrowthOS while continuing to enhance the platform's artificial intelligence, customer intelligence, and automation capabilities.

Key strategic priorities include:

	·	Expanding enterprise deployments of GrowthOS
	·	Increasing recurring SaaS and platform subscription revenue
	·	Enhancing GeoIntel's customer intelligence capabilities
	·	Continuing development of CMOne's AI decision engine
	·	Expanding ATOS activation capabilities across additional customer acquisition channels
	·	Growing strategic partnerships and enterprise integrations
	·	Increasing recurring revenue from software licensing, managed services, and AI-powered customer acquisition solutions

Management believes these initiatives position the Company to capitalize on the growing demand for AI-powered enterprise software designed to automate and optimize customer acquisition while creating long-term recurring revenue opportunities.

Results of Operations

Executive Overview

During the six months ended June 30, 2026, the Company continued executing its strategic transformation from a traditional advertising technology business toward an AI-powered customer acquisition platform through the expansion of GrowthOS™.

Management believes the first half of 2026 represented continued progress in the commercialization of this strategy. Revenue increased significantly compared to the prior-year periods, gross profit improved, operating expenses declined despite continued investment in product development, and operating losses narrowed period over period. While the Company remains in an investment phase, management believes these operating trends demonstrate continued progress toward building a more scalable software-based business.

As with many enterprise software businesses, quarterly operating results may fluctuate due to the timing of customer implementations, campaign launches, contract renewals, and customer purchasing decisions. Accordingly, management evaluates performance based not only on quarterly revenue but also on continued product development, customer deployments, operating discipline, and the expansion of recurring commercial opportunities.

Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 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
		June 30, 2026				June 30, 2025
Revenues		$	177,697			$	31,108
Cost of revenues			111,035				170
Gross profit			66,662				30,938
Total operating expenses			1,897,546				1,990,416
Loss from operations		$	(1,830,884	)		$	(1,959,478	)

We generated revenues of $177,697 in the three months ended June 30, 2026, compared to $31,108 for the same period in 2025, an increase of $146,589 or 471%. The Company has developed several new features which we believe will help grow revenue in 2026 and beyond.

The increase in revenue primarily reflects continued commercialization of the Company's software platforms and customer engagements as the Company expands deployment of GrowthOS™. During the quarter ended June 30, 2026, the Company continued enhancing its AI-enabled software capabilities, expanding platform functionality, and supporting customer implementations intended to increase future recurring software and managed services revenue.

Revenue during the quarter ended June 30, 2026 continued to reflect the timing of enterprise customer implementations, campaign launches, renewals, and customer purchasing cycles. As GrowthOS™ continues to be commercialized, management expects quarterly revenue to vary based on the timing of customer deployments and program launches.

Management believes future revenue growth will depend upon continued adoption of GrowthOS™, including AI-enabled capabilities within CMOne, increased utilization of ATOS, expansion within the casino and gaming advertising market, growth of recurring SaaS and managed services revenue, and continued execution of its enterprise customer acquisition strategy. However, the timing and extent of future revenue growth remain subject to numerous factors, and there can be no assurance that these initiatives will generate revenue on the timing or scale anticipated.

Cost of revenues was $111,035 or 62% of revenues for the three months ended June 30, 2026, as compared to $170 or 1% of revenues in the same quarter of 2025. Cost of revenues consists primarily of cloud infrastructure, software licensing, data services, engineering support, and platform operating costs required to deliver the Company's technology solutions. As GrowthOS™ continues to scale, management believes portions of the Company's technology infrastructure can support additional customer activity without proportional increases in operating costs, creating opportunities for improved operating leverage.

Gross profit was $66,662, or 38% of revenues, for the second quarter of 2026 as compared to $30,938, or 99% of revenues, in the same period of 2025.

Operating expenses were $1,897,546 for the second quarter of 2026 compared to $1,990,416 in the second quarter of 2025, a decrease of $92,870, or 5%. The decrease primarily reflects lower professional fees and technology-related expenses, partially offset by increased investments in advertising, business development, insurance, and general corporate infrastructure supporting the Company's commercialization efforts.

The Company continued investing throughout the quarter in GrowthOS™, including artificial intelligence capabilities, machine learning functionality, software engineering, customer implementations, platform integrations, and business development activities designed to support future revenue growth. Management intends to continue investing strategically while maintaining disciplined cost management as the Company scales its software platform.

The loss from operations for the three months ended June 30, 2026, was $1,830,884 as compared to $1,959,478 for the same quarter in 2025, representing an improvement of approximately $129,000, or 7%. The improvement reflects the combination of significantly higher revenue, increased gross profit, and lower operating expenses while continuing to invest in GrowthOS™ and the Company's long-term commercialization strategy.

Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 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.

		Six Months Ended
		June 30, 2026				June 30, 2025
Revenues		$	196,137			$	43,721
Cost of revenues			115,389				31,638
Gross profit			80,748				12,083
Total operating expenses			3,898,200				4,117,015
Loss from operations		$	(3,817,452	)		$	(4,104,932	)

We generated revenues of $196,137 in the six months ended June 30, 2026, compared to $43,721 for the same period in 2025, an increase of $152,416, or 349%. The Company has developed several new features which we believe will help grow revenue during the remainder of 2026 and beyond.

The increase in revenue reflects continued commercialization of GrowthOS™ together with expanded customer engagements and ongoing deployment of the Company's software platform. During the first six months of 2026, the Company continued investing in AI-enabled functionality, automation capabilities, and platform enhancements intended to support future recurring software revenue and customer growth.

As the Company continues expanding its commercial activities, revenue may fluctuate based upon customer implementation schedules, campaign timing, contract renewals, and customer purchasing decisions. Management believes future growth will depend upon continued customer adoption of GrowthOS™, expansion of AI-powered customer acquisition capabilities, increased utilization of ATOS, broader deployment of CMOne, growth in recurring SaaS and managed services revenue, and continued expansion into targeted industry verticals. However, there can be no assurance regarding the timing or magnitude of future revenue growth.

Cost of revenues was $115,389 or 59% of revenues for the six months ended June 30, 2026, as compared to $31,638 or 72% of revenues in the same period of 2025.

Gross profit was $80,748, or 41% of revenues, for the six months of 2026 as compared to $12,083, or 28% of revenues, in the same period of 2025. The improvement in gross profit reflects increased revenue together with improved utilization of the Company's technology infrastructure. Management believes the scalability of GrowthOS™ provides opportunities to improve gross margins over time as customer adoption increases, although future results will depend on revenue growth and customer mix.

Operating expenses were $3,898,200 for the six months of 2026 compared to $4,117,015 in the six months of 2025, a decrease of approximately $219,000, or 5%. The decrease primarily reflects lower professional fees, partially offset by continued investment in software development, business development, marketing initiatives, and infrastructure supporting the Company's strategic transformation. Management remains focused on balancing continued investment in GrowthOS™ with disciplined expense management.

The loss from operations for the six months ended June 30, 2026, was $3,817,452 as compared to $4,104,932 for the same six months in 2025, representing an improvement of approximately $287,000, or 7%. The improvement reflects higher revenue, improved gross profit, and reduced operating expenses while the Company continued investing in its AI-powered customer acquisition platform. Management believes the operating results for the first six months of 2026 reflect continued progress toward building a more scalable software business while maintaining disciplined cost controls. Future operating results will depend on the Company's ability to continue commercializing GrowthOS™, expand customer adoption, and increase recurring revenue, although there can be no assurance that these objectives will be achieved.

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 $123,340 at June 30, 2026. Cash used in operating activities for the six months ended June 30, 2026, was $2,602,162. This resulted primarily from a net loss of $4,806,580 offset by amortization of software development costs of $360,232, amortization of debt discounts of $867,158, expense related common stock and warrants issued for services of $781,883, and a decrease in prepaid expenses and other assets of $119,838. Cash flow provided by financing activities of $2,093,740 resulted primarily from net cash received from common stock issuances of $2,540,888, net proceeds from the issuance of debt $450,487, offset by repayments on debt of $897,635.

The Company had cash of $184,081 at June 30, 2025. Cash used in operating activities for the six months ended June 30, 2025, was $2,573,161. This resulted primarily from a net loss of $4,464,836 offset by amortization of intangibles of $360,232, amortization of debt discount of $321,271, expense related common stock and warrants issued for services of $1,114,633, and a decrease in prepaid expenses and other assets of $87,501. Cash flow provided by financing activities of $1,597,623 resulted primarily from net cash received from common stock issuances of $1,790,000, net proceeds from the issuance of debt $267,994, offset by repayments on notes payable of $459,871.

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 and six months ended June 30, 2026, reference is made to the Notes to the Consolidated Financial Statements described elsewhere herein.

Off-Balance Sheet Arrangements

As of June 30, 2026, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.