Company: CLOQ
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023402
Chunk: 16

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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. Diluted earnings (loss) per share is based on the assumption that
all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method.
Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later),
and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

At
June 30, 2025 and December 31, 2024, the Company has no warrants outstanding, 10,000,000 options outstanding, but none of them have vested,
are not exercisable and therefore not included, and had 104,674,341 and 99,842,927 convertible debt shares irrespectively that could have
been exercised and could have been dilutive to the existing number of shares issued and outstanding. The convertible debt shares were
not included in the weighted average shares outstanding as they were anti-dilutive.

The
computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial
statements.

Stock
Based Compensation

The
Company adopted FASB ASC Topic 718 – Compensation – Stock Compensation (formerly SFAS 123R), which establishes the use of
the fair value-based method of accounting for stock-based compensation arrangements under which compensation cost is determined using
the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related
services are rendered. For stock-based compensation, the Company recognizes an expense in accordance with FASB ASC Topic 718 and values
the equity securities based on the fair value of the security on the date of grant. Stock option and warrant awards are valued using
the Black-Scholes option-pricing model, which according to ASC 820-10 is a level 3 value on the hierarchy.

Leases

FASB
issued ASU No. 2016-02, Leases (Topic 842), which establishes a comprehensive new lease accounting model. The new standard: (a)
clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and,
(c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases.
The standard became effective for calendar years beginning after December 15, 2018.

The
Company has made