10-Q: CyberloQ Technologies Faces Going Concern Doubt Amidst Net Losses

CyberloQ Technologies, Inc. (CLOQ) reported continued net losses and a substantial accumulated deficit, raising substantial doubt about its ability to continue as a going concern, despite efforts to secure additional financing.

Summary

• CyberloQ Technologies, Inc. (CLOQ) filed its Form 10-Q for the quarterly period ended June 30, 2026.
• The company reported a net loss of $224,609 for the three months ended June 30, 2026, and $458,668 for the six months ended June 30, 2026.
• As of June 30, 2026, the company has an accumulated deficit of $10,218,444.
• There is substantial doubt about the entity's ability to continue as a going concern within one year after the financial statements are issued.
• The company's cash and cash equivalents decreased from $261,987 at December 31, 2025, to $49,975 at June 30, 2026.
• Total liabilities increased to $4,635,249 as of June 30, 2026, from $4,190,752 as of December 31, 2025.
• Operating expenses decreased to $115,283 for the three months ended June 30, 2026, from $163,269 in the prior year period.
• Operating expenses also decreased to $300,290 for the six months ended June 30, 2026, from $430,262 in the prior year period.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the continued net losses, significant accumulated deficit, and the substantial doubt about the entity's ability to continue as a going concern, despite ongoing efforts to secure financing.

Positives

• Operating expenses decreased by approximately 29% for the three months ended June 30, 2026, compared to the same period in 2025.
• Operating expenses decreased by approximately 30% for the six months ended June 30, 2026, compared to the same period in 2025.
• The company capitalized $288,450 in development costs for the CyberloQ platform during the six months ended June 30, 2026.
• The company has a proprietary software platform, CyberloQ, for fraud prevention and credit management, and another platform, TurnScor, for credit monitoring.
• The company believes its multi-purpose functionality and ability to white-label its technology provide a competitive advantage.

Negatives

• The company incurred net losses of $224,609 and $458,668 for the three and six months ended June 30, 2026, respectively.
• The company has an accumulated deficit of $10,218,444 as of June 30, 2026.
• There is substantial doubt about the company's ability to continue as a going concern.
• Cash and cash equivalents significantly decreased from $261,987 to $49,975 during the first six months of 2026.
• Total liabilities increased to $4,635,249 as of June 30, 2026.
• The company has no revenue from its planned principal operations.
• Disclosure controls and procedures were not effective as of June 30, 2026.
• Material weaknesses in internal control over financial reporting were previously identified.

Risks

• The company has a history of losses, deficits, and negative operating cash flows.
• The company has a limited operating history.
• The company faces industry competition from entities with significantly greater resources.
• Environmental and governmental regulations could impact the business.
• Protection and defense of intellectual property rights are critical.
• Reliance on, and the ability to attract, key personnel is a risk.
• The company could incur increased costs, decreased revenue, or suffer reputational damage in the event of a cyber-attack.
• A breach of the company's security measures could adversely affect its business.

Future Outlook

The company anticipates continued dependence on additional investment capital to fund operating expenses and intends to raise additional funds through the capital markets. There are no assurances of success in becoming financially viable or continuing as a going concern.

Management Comments

• Management acknowledges that disclosure controls and procedures were not effective as of June 30, 2026.
• Management anticipates that as the company grows and formalizes its internal control processes, it will add sufficient staff for oversight.
• Management believes the multi-purpose functionality of CyberloQ, along with its multi-purpose applications, will give the Company a distinct advantage.
• Management believes these distinct features, along with the ability to White Label the technology for marketing partners, give the Company a distinction in the marketplace.

Industry Context

StockSavvy.ai notes that CyberloQ operates in the competitive cybersecurity and fraud prevention space. While the company highlights its unique multi-factor authentication and data security features, it faces established players like Wells Fargo, Discover Card, and Ondot Systems, many of whom possess greater resources.

Comparison to Industry Standards

• The filing does not provide specific comparisons to industry benchmarks or named competitors' financial performance.
• The company acknowledges competition from Wells Fargo (on/off feature for cards), Discover Card (Freeze It functionality), and Ondot Systems (mobile card security).
• CyberloQ claims its multi-purpose functionality (banking, healthcare, corporate data) and white-labeling capability offer a competitive distinction.

Corporate Governance

Legal Proceedings

• The company is not currently a party to any legal proceedings.
• The company's officers and directors have not been convicted in any criminal proceedings or enjoined from securities/banking activities.

Related Party Transactions

• Notes payable to stockholders totaling $360,000 as of June 30, 2026.
• Convertible debt to stockholders totaling $3,060,000 as of June 30, 2026.
• Notes payable to related parties totaling $175,000 as of June 30, 2026.
• A promissory note with a director for $25,000 entered into on July 8, 2025, with no interest and a maturity date of July 8, 2026.
• Loan modification agreements with a director's estate totaling $150,000 with a 12.5% interest rate, with ongoing quarterly interest payments.

Stakeholder Impact

• Shareholders: Continued net losses and doubt about going concern status may negatively impact share value and investor confidence. Efforts to raise capital may lead to dilution.
• Creditors: Increased liabilities and going concern issues could impact the company's ability to meet its obligations.
• Employees: Uncertainty about the company's future viability could affect employee morale and retention.
• Management: Responsible for addressing financial challenges and improving internal controls.

Next Steps

• Continue development and integration of CyberloQ and TurnScor platforms.
• Seek additional financing through capital markets.
• Address material weaknesses in internal controls and improve disclosure procedures.
• Continue to compete in the fraud prevention and credit management market.

Key Dates

Recommendation

The company exhibits significant financial distress, including ongoing net losses, a substantial accumulated deficit, and substantial doubt about its ability to continue as a going concern. While operating expenses have been reduced, revenue generation remains absent, and cash reserves are dwindling. The lack of effective disclosure controls and identified material weaknesses in financial reporting further increase risk. The need for continuous capital raises to sustain operations suggests a high risk for investors.

Keywords

CyberloQ, fraud prevention, credit management, multi-factor authentication, software platform, technology, cybersecurity, development stage