# Cyberloq Technologies, Inc.: Form 10-Q for the period ended Jun 30, 2023

- Company: [Cyberloq Technologies, Inc.](/companies/cloq.md) (CIK 1437517)
- Form: 10-Q
- Filed: 2023-08-04
- Accepted by EDGAR: Aug 4, 2023, 18:30 ET
- Period: 2023-06-30
- Accession: 0001493152-23-026787
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1437517/000149315223026787/form10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1437517/000149315223026787/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2023-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 6 months, 2023-01-01 to 2023-06-30 | $993 | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Selling, general and administrative | 3 months, 2023-04-01 to 2023-06-30 | $4.8k | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2023-01-01 to 2023-06-30 | $8.3k | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2023-04-01 to 2023-06-30 | −$93.5k | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2023-01-01 to 2023-06-30 | −$190.2k | us-gaap:OperatingIncomeLoss |
| Net income | 3 months, 2023-04-01 to 2023-06-30 | −$213.7k | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2023-01-01 to 2023-06-30 | −$370.2k | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2023-04-01 to 2023-06-30 | $0.00 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2023-01-01 to 2023-06-30 | $0.00 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2023-04-01 to 2023-06-30 | $0.00 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2023-01-01 to 2023-06-30 | $0.00 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2023-04-01 to 2023-06-30 | 120,773,087 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2023-01-01 to 2023-06-30 | 120,939,754 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2023-01-01 to 2023-06-30 | −$248.3k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Cash and equivalents | at 2023-06-30 | $23.4k | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2023-06-30 | $102.8k | us-gaap:AssetsCurrent |
| Total assets | at 2023-06-30 | $692.7k | us-gaap:Assets |
| Current liabilities | at 2023-06-30 | $448.8k | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2023-06-30 | $479.2k | us-gaap:Liabilities |
| Shareholders' equity | at 2023-06-30 | $213.5k | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 11,193 characters.

*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, 2022. 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.

### 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 and 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, 2023, the Company’s assets were $692,687 compared to $341,118 in assets as of December 31, 2022. The change in the Company’s financial condition can be attributed to an increase in prepaid expense from $53,811 to $79,397 and an increase in fixed assets of $306,691.

As of June 30, 2023, the Company’s liabilities were $479,191 compared to $324,132 in liabilities as of December 31, 2022. This change in the Company’s financial condition was due to a decrease of $31,656 in accounts payable and accrued expenses, along with an increase of $29,465 in accrued interest, and an increase in convertible debt of $157,250,net of beneficial conversion costs.

Net cash used in operating activities for the six-month period ending June 30, 2023 was $248,267 compared to $177,122 for 2022. Cash provided by or used by operating activities is driven by our net loss and adjusted by non-cash items as well as changes in operating assets and liabilities. At June 30, 2023, there was $149,750 in amortization of debt discount.

Net cash used by investing activities was $306,691 for the six months ended June 30, 2023 as compared to $136,610 for 2022.

Net cash provided by financing activities was $574,250 for the six months ended June 30, 2023 as compared to $276,250 for 2022.

The Company had gross revenue of $993 for the six months ended June 30, 2023 compared to gross revenue of $1,404 for the six months ended June 30, 2022, 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 2023. 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 Six Months Ended June 30, 2023 and 2022

Company revenue was $993 in the six months ended June 30, 2023 as compared to $1,404 for the six months ended June 30, 2022.

The Company’s operating expenses were $191,175 for the six months ended June 30, 2023 as compared to $466,765 for the six months ended June 30, 2022. This decrease in operating expenses was primarily due to a decrease in professional fees which were $52,308 for the six months ended June 30, 2023, compared to $340,397 for the six months ended June 30, 2022. This decrease in professional fees was due to the fact that in the first six months ended June 30, 2022 the Company had increased professional fees in increased consulting services related to increased software development costs associated with upgrading the source code and infrastructure to accommodate increased capacity demands.

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

Officers’ compensation was $90,000 for the six months ended June 30, 2023 as compared to $105,000 for the six months ended June 30, 2022. This decrease was due to the Company only having two officers as of February 28, 2022 instead of three.

Computer and internet expenses were $8,330 for the six months ended June 30, 2023 as compared to $11,637 for the six months ended June 30, 2022.

Other operating expenses were $27,700 for the six months ended June 30, 2023 as compared to $2,185 for the six months ended June 30,2022. This increase in other operating expenses was due to up listing fees paid in the first and second quarters to OTC Markets.

Office supplies and expenses were $5,377 for the six months ended June 30, 2023, compared to $2,274 for the six months ended June 30, 2022.

Travel and entertainment expenses were $2,713 for the six months ended June 30, 2023, compared to $751 for the six months ended June 30, 2022.

Finally, there was no material changes in the Company’s rent expense in the six months ended June 30, 2023 as compared to the six months ended June 30, 2022.

As a result of the foregoing, the Company experienced a net loss from operations of $190,182 in the six months ended June 30, 2023 compared to a net loss from operations of $465,361 in the six months ended June 30, 2022.

### Results of Operations for the Three Months Ended June 30, 2023 and 2022

Company revenue was $0 in the three months ended June 30, 2023 as compared to $1,104 for the three months ended June 30, 2022.

The Company’s operating expenses were $93,468 for the three months ended June 30, 2023 as compared to $190,549 for the three months ended June 30, 2022. This decrease in operating expenses was primarily due to a decrease in professional fees which were $18,489 for the three months ended June 30, 2023, compared to $133,643 for the three months ended June 30, 2022. This decrease in professional fees was due to the fact that in the three months ended June 30, 2022 the Company had increased professional fees in increased consulting services related to increased software development costs associated with upgrading the source code and infrastructure to accommodate increased capacity demands.

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

Computer and internet expenses were $4,782 for the three months ended June 30, 2023 as compared to $7,187 for the three months ended June 30, 2022.

Other operating expenses were $16,359 for the three months ended June 30, 2023 as compared to $1,001 for the three months ended June 30,2022. This increase in other operating expenses was due to up listing fees paid in the first and second quarters to OTC Markets.

Office supplies and expenses were $4,232 for the three months ended June 30, 2023, compared to $695 for the three months ended June 30, 2022.

Travel and entertainment expenses were $2,157 for the three months ended June 30, 2023, compared to $691 for the three months ended June 30, 2022.

Finally, there were no material changes in the Company’s rent and officers’ compensation expenses in the three months ended June 30, 2023 as compared to the three months ended June 30, 2022.

As a result of the foregoing, the Company experienced a net loss from operations of $93,468 in the three months ended June 30, 2023 compared to a net loss from operations of $189,445 in the three months ended June 30, 2022.

## Market risk

As filed, 160 characters.

The Company qualifies as a smaller reporting company as defined by §229.10(f)(1) and therefore is not required to provide the information required by this Item.

## Controls and procedures

As filed, 2,571 characters.

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2023 in accordance with Committee of Sponsoring Organizations of the Treadway Commission’s 2013 Integrated Framework. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. In addition, due to its current size, the Company currently does not have sufficient staff to maintain appropriate segregation of duties, as it pertains to application and oversight of internal control processes. Material weaknesses have previously been identified, including lack of segregation of duties and lack of formal written policies and procedures surrounding financial close and reporting. However, the Company anticipates that as it grows and formalizes its internal control processes and procedures, it will add sufficient staff to perform internal control processes, as well as adequately provided oversight to ensure processes are working as designed. Such officer also confirmed that there was no change in our internal control over financial reporting during the six-month period ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

### PART II

### OTHER INFORMATION

## Risk factors

As filed, 2,956 characters.

The Company qualifies as a smaller reporting company as defined by §229.10(f)(1) and therefore is not required to provide the information required by this Item. However, the Company does acknowledge that there are risks associated with the business of the Company.

We will be competing with a variety of companies, many of which have significantly greater financial, technical, marketing and other resources than us. If we fail to attract and retain a large base of customers for our products, or if our competitors establish a more prominent market position relative to ours, this will inhibit our ability to grow and successfully execute our business plan. For example, Wells Fargo has introduced an “on/off” feature for their customers, Discover Card has “Freeze It” functionality, and Ondot Systems has already been operating in the mobile card security space for quite some time. However, the Company believes that the multi-purpose functionality of CyberloQ, along with its multi-purpose applications will give the Company a distinct advantage by comparison. CyberloQ can be used in the banking system to protect debit/credit cards, in the health care industry to protect PII (Personal Identifying Information) now that medical records are kept digitally, and can protect corporate data bases in any industry from outside intrusion via geo-fencing. The Company believes that these distinct features, along with the ability to “White Label” the technology for marketing partners, give the Company a distinction in the marketplace. However, there can be no assurance that we will be able to successfully compete with other companies in the marketplace.

In addition, the Company could incur increased costs, decreased revenue, or suffer reputational damage in the event of a cyber-attack. The Company’s business involves the collection, storage, processing and transmission of customers’ personal data, including financial information. In the event that the Company’s security measures are breached due to human error, malfeasance, system errors or vulnerabilities, or other irregularities, such breach could adversely affect our business through possible interruption of the Company’s operations, improper disclosure of data, damage to the Company’s reputation, and/or legal exposure.

Finally, management has evaluated whether or not COVID-19 has had any material impact on the Company. The Company is a technology-based company with personnel already working remotely prior to COVID-19. Therefore, the Company has not been impacted by any stay-at-home orders or travel restrictions. Likewise, the Company has continued to have access to capital and funding sources, and COVID-19 has had no material effect on the demand for the Company’s services. Consequently, to date COVID-19 has not impacted the Company’s financial condition or the results of its operations, and the Company does not anticipate that there be any material impact in the future.

Filed Aug 4, 2023.
Source: SEC EDGAR, the filing index for accession 0001493152-23-026787. Last ingested by Listed: Oct 24, 2026, 15:08 ET. No prices; not investment advice.