10-Q: CyberloQ Technologies Q1 2026 Financial Results

CyberloQ Technologies reports a net loss of $234,060 for Q1 2026 as it continues development of its fraud prevention platform.

Summary

• Reported a net loss of $234,060 for the three months ended March 31, 2026, compared to a net loss of $341,030 in the same period of 2025.
• Operating expenses decreased to $185,008 from $266,992 in the prior year quarter, primarily due to lower officer compensation.
• Cash position declined significantly to $10,098 as of March 31, 2026, from $261,987 at year-end 2025.
• Capitalized $149,602 in software development costs during the quarter.
• Total liabilities stand at $4,235,762, including $3,060,000 in convertible debt.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk situation due to the lack of revenue, significant cash burn, and the explicit going concern warning.

Positives

• Reduction in net loss compared to the same quarter in the previous year.
• Decrease in total operating expenses year-over-year.
• Continued investment in the CyberloQ platform through capitalization of development costs.

Negatives

• Zero revenue generated during the quarter.
• Significant decline in cash reserves, raising liquidity concerns.
• Accumulated deficit of $9,993,835 as of March 31, 2026.
• Management identified material weaknesses in internal controls over financial reporting.

Risks

• Substantial doubt regarding the ability to continue as a going concern.
• History of losses and negative operating cash flows.
• High reliance on additional investment capital to fund operations.
• Intense competition from established financial institutions and security providers.
• Potential for cyber-attacks and data breaches impacting reputation and operations.

Future Outlook

The company intends to continue developing its CyberloQ and TurnScor platforms and expects to remain dependent on additional investment capital to fund operating expenses in the near future.

Management Comments

• Management acknowledges that there is substantial doubt about the entity's ability to continue as a going concern.
• The company believes the multi-purpose functionality of CyberloQ provides a distinct competitive advantage.

Industry Context

StockSavvy.ai notes that the company operates in a highly competitive fraud prevention and cybersecurity space, facing established players like Wells Fargo and Discover, which have integrated similar security features into their existing banking ecosystems.

Comparison to Industry Standards

• Unlike established fintech competitors, the company lacks a revenue-generating customer base.
• The company's reliance on convertible debt and equity raises is typical for early-stage development companies but presents higher risk compared to mature industry peers.

Corporate Governance

Legal Proceedings

• The company is not currently a party to any legal or administrative proceedings.

Related Party Transactions

• Promissory note with a director for $25,000.
• Loan modification agreements with a director's estate regarding consolidated promissory notes.
• Promissory note with a stockholder for $100,000.

Stakeholder Impact

• Shareholders face significant dilution risk due to the high volume of convertible debt.
• Creditors are exposed to the company's liquidity constraints and going concern status.

Next Steps

• Continue efforts to raise additional funds through capital markets.
• Pursue institutional clients for the CyberloQ and TurnScor platforms.
• Formalize internal control processes and procedures.

Key Dates

Recommendation

The company is pre-revenue, has a severe liquidity shortage, and carries a going concern warning, making it a highly speculative and risky investment.

Keywords

CyberloQ, fraud prevention, multi-factor authentication, fintech, cybersecurity, 10-Q, CLOQ