Quarterly Report for Quarter Ending June 30, 2026 (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, 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.

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