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, 2021. 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 25, 2008 as Advanced Credit Technologies, Inc. On November 20, 2019, the Company changed its name from Advanced Credit Technologies, Inc. to CyberloQ Technologies, Inc. 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 banking fraud prevention technology that is offered to institutional clients in order to combat fraudulent transactions and unauthorized access to customer accounts. 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.

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.



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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 March 31, 2022, the Company's assets were $301,286 compared to $264,503 in assets as of December 31, 2021. The change in the Company's financial condition can be attributed to a decrease in prepaid expense from $210,208 to $138,781and an increase in fixed assets of $109,885.

As of March 31, 2022, the Company's liabilities were $931,744 compared to $299,530 in liabilities as of December 31, 2021. This change in the Company's financial condition was due to an increase of $36,493 in accounts payable and accrued expenses, along with an increase of $6,421 in accrued interest, an increase in loan payable related party of $100,000 and an increase in common stock settlement liability of $490,000.

Net cash used in operating activities for the three-month period ending March 31, 2022 was $88,590 compared to $107,859 for 2021. 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 March 31, 2022, there was $184,376 in stock compensation.

Net cash used by investing activities was $109,885 for the three months ended March 31, 2022 as compared to $0 for 2021.

Net cash provided by financing activities was $196,800 for the three months ended March 31, 2022 as compared to $113,000 for 2021.

The Company had gross revenue of $300 for the three months ended March 31, 2022 compared to gross revenue of $300 for the three months ended March 31, 2021, 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 2022. 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 Three Months Ended March 31, 2022 and 2021

Company revenue was $300 in the three months ended March 31, 2022 as compared to $300 for the three months ended March 31, 2021.

The Company's operating expenses were $276,215 for the three months ended March 31, 2022 as compared to $93,564 for the three months ended March 31, 2021. This increase in operating expenses was primarily due to an increase in professional fees which were $206,754 for the three months ended March 31, 2022, compared to $15,796 for the three months ended March 31, 2021. This increase in professional fees was due to increased consulting services as a result of 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.



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Officers' compensation was $60,000 for the three months ended March 31, 2022 as compared to $67,500 for the three months ended March 31, 2021. This decrease was due to the Company only having two officers as of February 28, 2022 instead of three.

Research was $0 for the three months ended March 31, 2022 as compared to $1,720 for the three months ended March 31, 2021. Research was $0 for the three months ended March 31, 2022 as the Company began capitalizing costs.

Travel and entertainment expenses were $60 for the three months ended March 31, 2022, compared to $1,696 for the three months ended March 31, 2021. This decrease in travel and entertainment expenses was due to less travel.

Computer and internet expenses were $4,450 for the three months ended March 31, 2022 as compared to $1,194 for the three months ended March 31, 2021. This increase was due to a new web service.

Office supplies and expenses were $1,580 for the three months ended March 31, 2022, compared to $1,158 for the three months ended March 31, 2021.

Rent expenses were $2,188 for the three months ended March 31, 2022, compared to $1,917 for the three months ended March 31, 2021. This increase in rent expense was due to the Company entering into a new office lease in April/May of 2021.

Other operating expenses were $1,183 for the three months ended March 31, 2022 as compared to $1,159 for the three months ended March 31,2021.

As a result of the foregoing, the Company experienced a net loss from operations of $275,915 in the three months ended March 31, 2022 compared to a net loss from operations of $93,264 in the three months ended March 31, 2021.

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