Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

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, 2024. 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.

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.

Liquidity, Capital Resources and Material Changes in Financial Condition

As of September 30, 2025, the Company's assets were $2,173,786 compared to $1,842,701 in assets as of December 31, 2024.

This change in the Company's financial condition can be primarily attributed to an increase in intangible assets of $447,300 due to the capitalization of the CyberloQ Platform, $6,744 due to website development, net of amortization of $727, $21,497 due to the acquisition of patents, and an increase in the Company's prepaid expense from $6,964 to $43,474 due to commission advances paid to salespersons. This increase in fixed assets was partially offset by a decrease in the Company's cash assets to $102,626 as of September 30, 2025 as opposed to $282,866 as of December 31, 2024.

As of September 30 2025, the Company's liabilities were $3,756,059 compared to $2,831,229 in liabilities as of December 31, 2024. This change in the Company's financial condition can be attributed to an increase of $628,141 in convertible debt, an increase of $231,778 in accrued interest and an increase of $64,911 in accounts payable and accrued expenses.

Net cash used in operating activities for the nine-month period ending September 30, 2025, was $562,340 compared to $461,784 for 2024. 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 September 30, 2025, amortization of $727 and stock compensation of $7,000 are the only non cash adjustments.

Net cash used by investing activities was $475,542 for the nine months ended September 30, 2025 as compared to $337,094 for 2024.

Net cash provided by financing activities was $857,642 for the nine months ended September 30, 2025 as compared to $681,859 for 2024.

The Company had gross revenue of $0 for the nine months ended September 30, 2025 compared to gross revenue of $15,000 for the nine months ended September 30, 2024, and is currently reliant on its ability to raise additional capital 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 the remainder of 2025. Unless the Company begins to generate operational revenue, it will be reliant on its ability to raise additional capital in order to continue its operations.

Results of Operations for the Nine Months Ended September 30, 2025 and 2024

Company revenue was $0 in the nine months ended September 30, 2025 as compared to $15,000 for the nine months ended September 30, 2024. This was due to the services agreement with QRails, Inc no longer being in effect.

The Company's operating expenses were $581,558 for the nine months ended September 30, 2025 as compared to $517,419 for the nine months ended September 30, 2024. This increase in operating expenses was primarily due to an increase in officers compensation which was $289,000 for the nine months ended September 30, 2025 compared to $182,500 for the nine months ended September 30, 2024 due to a bonus approved by the Board of Directors that was issued in the first quarter of 2025.

In addition, there was an increase in computer and internet expense which was $73,576 for the nine months ended September 30, 2025 compared to $33,443 for the nine months ended September 30, 2024. This increase was due to an increase in hosting costs associated with the Company's web services.

These increases were partially offset by a decrease in professional fees which were $164,729 for the nine months ended September 30, 2025 as compared to $228,486 for the nine months ended September 30, 2024 due to an issuance of common stock for services that occurred in the first quarter of 2024. The Company also experienced a decrease in other operating expenses which were $21,326 for the nine months ended September 30, 2025 as compared to $48,859 for the nine months ended September 30, 2024 primarily due to bad debt and dues and subscriptions in 2024.

In addition, the Company experienced changes in expense categories as noted below.

Travel expenses were $10,488 for the nine months ended September 30, 2025 as compared to $6,510 for the nine months ended September 30, 2024.

Office supplies and expenses were $14,077 for the nine months ended September 30, 2025 as compared to $10,216 for the nine months ended September 30, 2024.

Finally, there were no material change in the Company's rent expense in the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

As a result of the foregoing, the Company experienced a net loss from operations of $581,558 in the nine months ended September 30, 2025 compared to a net loss from operations of $502,419 in the nine months ended September 30, 2024. The overall net loss for the nine months ended September 30, 2025 was $830,248 due to interest expense of $248,692, as compared to overall net loss of $680,694 for the nine month period ended September 30, 2024.

Results of Operations for the Three Months Ended September 30, 2025 and 2024

Company revenue was $0 in the three months ended September 30, 2025, which was unchanged from $0 for the three months ended September 30, 2024.

The Company's operating expenses were $151,295 for the three months ended September 30, 2025 as compared to $144,365 for the three months ended September 30, 2024.

Professional fees were $51,388 for the three months ended September 30, 2025 as compared to $60,162 for the three months ended September 30, 2024.

Other operating expenses were $13,123 for the three months ended September 30, 2025 as compared to $1,283 for the three months ended September 30, 2024 primarily due to advertising and dues and subscriptions in 2025.

Officer's compensation was $63,000 for the three months ended September 30, 2025 as compared to $60,000 for the three months ended September 30, 2024.

Travel expenses were $149 for the three months ended September 30, 2025 as compared to $1,779 for the three months ended September 31, 2024.

Office supplies and expenses were $4,097 for the three months ended September 30, 2025 as compared to $2,897 for the three months ended September 30, 2024.

Computer and internet expenses were $16,238 for the three months ended September 30, 2025 as compared to $15,664 for the three months ended September 30, 2024. This increase was due to an increase in hosting costs associated with the Company's web services.

Finally, there was no material change in the Company's rent expense in the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

As a result of the foregoing, the Company experienced a net loss from operations of $151,295 in the three months ended September 30, 2025 compared to a net loss from operations of $144,365 in the three months ended September 30, 2024. The overall net loss for the three months ended September 30, 2025 was $246,114 due to interest expense of $94,819, as compared to overall net loss of $215,900 for the three month period ended September 30, 2024.