CyberloQ's Losses Widen Amid Zero Revenue, Increased Spending

TL;DR

**CLOQ is burning cash with zero revenue, making it a high-risk bet on future tech that hasn't materialized yet.**

AI Summary

CYBERLOQ TECHNOLOGIES, INC. (CLOQ) reported a net loss of $584,133 for the six months ended June 30, 2025, a significant increase from the $464,796 net loss in the same period of 2024. The company generated no service revenue or license fees in the first six months of 2025, compared to $15,000 in license fees in 2024. Total operating expenses rose to $430,262 in 2025 from $373,055 in 2024, driven by increased officer's compensation, which jumped from $122,500 to $226,000, and computer and internet expenses, which increased from $17,779 to $57,338. Interest expense also grew from $106,741 to $153,873. Cash and equivalents decreased significantly from $282,866 at December 31, 2024, to $86,454 at June 30, 2025. The company capitalized $291,200 in CyberloQ platform development costs and $6,745 in website development costs during the period, indicating continued investment in its core technology despite the lack of revenue generation.

Why It Matters

For investors, CLOQ's continued lack of revenue and increasing net losses, reaching $584,133, signal significant operational challenges and raise questions about its long-term viability. The company's reliance on financing activities, including proceeds from common stock sales and convertible debt, to fund operations is a red flag. Employees might face job insecurity given the company's financial strain and inability to generate income. Customers, particularly institutional clients for CyberloQ and Turnscor, should be wary of the company's financial instability, which could impact service continuity and future development. In the competitive cybersecurity and credit management markets, CLOQ's zero revenue and mounting losses put it at a severe disadvantage against more established and profitable players.

Risk Assessment

Risk Level: high — The company reported zero revenue for the six months ended June 30, 2025, while incurring a net loss of $584,133. Cash and equivalents plummeted from $282,866 to $86,454, indicating a rapid depletion of liquidity without corresponding income. The accumulated deficit reached $9,216,018, demonstrating a history of significant losses.

Analyst Insight

Investors should exercise extreme caution and consider avoiding CLOQ shares given the company's zero revenue, increasing losses, and dwindling cash reserves. The current financial state suggests a high probability of further dilution or potential insolvency if a viable revenue stream is not established quickly.

Financial Highlights

debt To Equity

Not Disclosed

revenue

$0

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

$(584,133)

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

$86,454

revenue Growth

N/A

Revenue Breakdown

Executive Compensation

Key Numbers

• $0 — Total Revenue (for the six months ended June 30, 2025, down from $15,000 in 2024)
• $(584,133) — Net Loss (for the six months ended June 30, 2025, widened from $(464,796) in 2024)
• $86,454 — Cash and Equivalents (as of June 30, 2025, a decrease from $282,866 at December 31, 2024)
• $9,216,018 — Accumulated Deficit (as of June 30, 2025, increased from $8,631,886 at December 31, 2024)
• $226,000 — Officer's Compensation (for the six months ended June 30, 2025, up from $122,500 in 2024)
• $291,200 — CyberloQ platform development costs capitalized (for the six months ended June 30, 2025)
• $3,354,405 — Total Liabilities (as of June 30, 2025, increased from $2,831,229 at December 31, 2024)
• 131,962,254 — Common Shares Outstanding (as of June 30, 2025, up from 128,789,754 at December 31, 2024)

Key Players & Entities

• CYBERLOQ TECHNOLOGIES, INC. (company) — registrant
• CyberloQ (company) — proprietary software platform
• Turnscor (company) — web-based proprietary software platform
• OTC QB (regulator) — exchange where common stock is registered
• SEC (regulator) — Securities and Exchange Commission
• SBA (company) — loan provider

FAQ

Risk Factors

• Significant Net Loss and Negative Cash Flow [high — financial]: The company reported a net loss of $584,133 for the six months ended June 30, 2025, an increase from $464,796 in the same period of 2024. This, coupled with a substantial decrease in cash and equivalents from $282,866 to $86,454, indicates a continued burn rate without corresponding revenue generation, posing a significant financial risk.
• Dependence on Future Revenue Generation [high — financial]: CYBERLOQ TECHNOLOGIES, INC. generated no service revenue or license fees in the first six months of 2025. The company's ability to continue operations and achieve profitability is entirely dependent on its capacity to successfully monetize its CyberloQ platform and other future offerings.
• Increasing Operating Expenses [medium — operational]: Total operating expenses rose to $430,262 in 2025 from $373,055 in 2024. This increase was primarily driven by a significant jump in officer's compensation ($122,500 to $226,000) and computer and internet expenses ($17,779 to $57,338), indicating rising costs that could further strain financial resources.
• Growing Interest Expense [medium — financial]: Interest expense increased from $106,741 to $153,873 for the six months ended June 30, 2025. This rise in debt servicing costs exacerbates the net loss and reduces available capital for operations and development.
• Accumulated Deficit [medium — financial]: The accumulated deficit increased to $9,216,018 as of June 30, 2025, from $8,631,886 at December 31, 2024. This growing deficit highlights the company's historical unprofitability and the long road to achieving sustainable financial health.
• Capitalization of Development Costs [low — operational]: The company capitalized $291,200 in CyberloQ platform development costs and $6,745 in website development costs. While this reflects investment in core technology, it also means these costs are not immediately expensed, impacting short-term profitability metrics and requiring future amortization.

Industry Context

The cybersecurity technology sector is highly competitive and rapidly evolving, with significant investment in R&D. Companies like CYBERLOQ TECHNOLOGIES, INC. face pressure to innovate and demonstrate clear value propositions to attract customers and investors. The current market demands robust solutions for data protection and threat mitigation, often requiring substantial upfront development and marketing expenditures.

Regulatory Implications

As a technology company, CYBERLOQ TECHNOLOGIES, INC. may be subject to data privacy regulations (e.g., GDPR, CCPA) depending on its services and customer base. Compliance with these evolving regulations is critical to avoid penalties and maintain customer trust. The lack of revenue and ongoing losses could also attract scrutiny regarding the company's long-term viability.

What Investors Should Do

1. Monitor revenue generation closely: The absence of service revenue and license fees is a critical concern. Investors should look for any signs of traction or a clear strategy to monetize the platform.
2. Assess cash runway: With cash reserves dwindling to $86,454 and a significant net loss, investors need to understand the company's burn rate and its ability to secure additional funding.
3. Evaluate the justification for increased officer compensation: The substantial rise in officer's compensation warrants scrutiny, especially in the context of zero revenue and increasing losses.
4. Understand the path to profitability: The company's investment in platform development needs to translate into a viable business model. Investors should seek clarity on the timeline and strategy for achieving profitability.

Key Dates

• 2025-06-30: Six months ended June 30, 2025 financial reporting period — Indicates a significant increase in net loss and operating expenses, with zero revenue generation.
• 2025-06-30: Cash and Equivalents as of June 30, 2025 — Sharp decline to $86,454 from $282,866 at year-end 2024, highlighting cash burn.
• 2024-12-31: Cash and Equivalents as of December 31, 2024 — Represents the starting cash position before the significant burn in the first half of 2025.

Glossary

Accumulated Deficit

The total cumulative net losses of a company that have not been offset by net income or other gains. (Shows the company's historical unprofitability, which has increased to $9,216,018 as of June 30, 2025.)

Capitalized Costs

Costs that are recorded as assets on the balance sheet rather than being expensed immediately on the income statement. (Indicates investment in the CyberloQ platform ($291,200) and website ($6,745), impacting current expenses but representing future potential value.)

Officer's Compensation

Remuneration paid to the company's officers, including salary, bonuses, and other benefits. (A significant driver of increased operating expenses, rising from $122,500 to $226,000 for the period.)

Interest Expense

The cost incurred by an entity for borrowed funds. (Increased to $153,873, contributing to the overall net loss.)

Year-Over-Year Comparison

Compared to the six months ended June 30, 2024, CYBERLOQ TECHNOLOGIES, INC. has seen a significant deterioration in its financial performance. Total revenue has dropped to $0 from $15,000, while the net loss has widened from $464,796 to $584,133. Operating expenses have increased, driven by higher officer compensation and computer costs, and interest expense has also risen. Most critically, cash and equivalents have plummeted from $282,866 to $86,454, indicating a severe reduction in liquidity.

Filing Documents

• form10-q.htm (10-Q) — 813KB
• ex31-1.htm (EX-31.1) — 19KB
• ex32-1.htm (EX-32.1) — 8KB
• 0001641172-25-023402.txt ( ) — 4496KB
• cloq-20250630.xsd (EX-101.SCH) — 39KB
• cloq-20250630_cal.xml (EX-101.CAL) — 41KB
• cloq-20250630_def.xml (EX-101.DEF) — 167KB
• cloq-20250630_lab.xml (EX-101.LAB) — 302KB
• cloq-20250630_pre.xml (EX-101.PRE) — 223KB
• form10-q_htm.xml (XML) — 666KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 3

Consolidated Condensed Financial Statements

Item 1. Consolidated Condensed Financial Statements. F-1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 4

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 6

Controls and Procedures

Item 4. Controls and Procedures. 6

— OTHER INFORMATION

PART II — OTHER INFORMATION 7

Legal Proceedings

Item 1. Legal Proceedings. 7

Risk Factors

Item 1A. Risk Factors. 7

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 7

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 7

Other Information

Item 4. Other Information. 7

Exhibits

Item 5. Exhibits. 8

SIGNATURES

SIGNATURES 9 2 PART I SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This quarterly report on Form 10-Q and the documents incorporated by reference herein contain forward-looking statements that are not statements of historical fact and may involve a number of risks and uncertainties. These statements related to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "proposed," "intended," or "continue" or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other "forward-looking" information. There may be events in the future that we are not able to accurately predict or control. Before you invest in our securities, you should be aware that the occurrence of any of the events described in this quarterly report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline and you could lose all or part of your investment. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity

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