10-K: CyberloQ Technologies Reports Increased Liabilities and Net Loss in 2024 10-K Filing

CyberloQ Technologies' 2024 10-K filing reveals increased liabilities and a net loss, alongside ongoing efforts to develop its CyberloQ platform and achieve SOC 2 compliance.

Summary

• CyberloQ Technologies experienced a net loss of $989,452 in 2024, slightly better than the $1,026,530 loss in 2023.
• Total assets increased to $1,842,701 from $1,458,565, driven by capitalization of the CyberloQ platform and website development.
• Liabilities significantly increased to $2,831,229 from $1,021,359, primarily due to a rise in convertible debt.
• The company's operating revenue was $15,000 in 2024, similar to $15,993 in 2023, highlighting its reliance on external funding.
• The company is working towards SOC 2 compliance, expecting to achieve certification in the second quarter of 2025.
• The company's corporate office is located in Sarasota, FL, with monthly rent of $804 including phone and internet.
• As of the filing date, there were 131,299,754 shares of common stock issued and outstanding, held by approximately 142 shareholders.
• The aggregate market value of common equity held by non-affiliates as of June 30, 2024, was approximately $7,095,846.
• The company is reliant on raising additional capital and/or debt to continue its business plan.
• The company has two full-time employees, its President and Vice-President.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the ongoing losses, increased liabilities, and reliance on external funding, despite some positive developments in asset growth and security compliance efforts.

Positives

• The net loss decreased slightly compared to the previous year.
• Total assets increased due to investments in the CyberloQ platform and website.
• The company is actively pursuing SOC 2 compliance to enhance its security posture.
• The company has successfully integrated the mobile applications for CyberloQ into the banking ecosystem.

Negatives

• The company continues to experience significant net losses.
• Liabilities have increased substantially, primarily due to convertible debt.
• Operating revenue remains minimal, indicating a strong reliance on external funding.
• Disclosure controls and procedures were deemed not effective as of December 31, 2024.
• The company does not have sufficient staff to maintain appropriate segregation of duties, as it pertains to application and oversight of internal control processes.

Risks

• The company faces strong competition from companies with greater resources.
• Failure to attract and retain a large customer base could hinder growth.
• Cyber-attacks could lead to increased costs, decreased revenue, and reputational damage.
• The company's ability to continue as a going concern is dependent on generating revenue or securing additional financing.
• The company's disclosure controls and procedures were not effective as of December 31, 2024.

Future Outlook

The company anticipates being dependent on additional investment capital to fund operating expenses in the near future and intends to position itself to raise additional funds through the capital markets.

Industry Context

The company operates in the competitive fraud prevention and credit management technology sector, facing established players like Wells Fargo, Discover Card, and Ondot Systems. CyberloQ aims to differentiate itself through its multi-purpose functionality and white-labeling options.

Comparison to Industry Standards

• Wells Fargo has introduced an on/off feature for their customers.
• Discover Card has Freeze It functionality.
• Ondot Systems has already been operating in the mobile card security space for quite some time.

Legal Proceedings

• The litigation of Mark Carten v. Cyberloq Technologies, Inc. has been dismissed without prejudice and is no longer pending.

Related Party Transactions

• The company entered into a fourth loan modification agreement with the estate of a director, extending the maturity date to April 15, 2025, and incurring an extension penalty of $7,500.

Stakeholder Impact

• Shareholders face the risk of dilution due to potential future equity issuances.
• Employees' job security is contingent on the company's ability to secure funding and generate revenue.
• Customers may benefit from the enhanced security features of the CyberloQ platform, but also face potential risks if the company fails to maintain its security standards.
• Creditors face the risk of non-payment if the company is unable to generate sufficient cash flow or secure additional financing.

Next Steps

• The company plans to continue developing and scaling the CyberloQ platform.
• The company aims to achieve SOC 2 certification in the second quarter of 2025.
• The company intends to secure additional financing to support its operations and growth.

Key Dates

Keywords

CyberloQ, Technologies, Convertible Debt, SOC 2, Financials, Authentication, Fraud Prevention, Credit Management