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

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 fraud technology products, including
CyberloQ Vault, and from licensing fees for the TurnScor product.

The
revenue derived from the CyberloQ banking fraud technology products are comprised of two components. First, there is a development and
customization fee paid to the Company to integrate CyberloQ with the banking institution or program manager’s ecosystem in order
to add the CyberloQ authentication to the bank’s payment cards, website or digital service. This fee is customarily paid in multiple
payments based upon the Company reaching certain milestones as set forth in the scope of work for each customer. Since completion of
a milestone is subject to each customer’s approval, there are significant judgments involved in the determination of timing and
satisfaction of performance obligations and the payments are recognized as revenue upon the completion of each milestone. Second, where
the Company’s agreement is with a processor as opposed to an end user customer, there is an API license fee that is accrued monthly.
Third, revenue from user fees are accrued monthly based over the number of individual card users each month.

The
revenue derived from CyberloQ Vault is also comprised of two components. First, there is a development and customization fee paid to
the Company to build a customized cloud-based encryption and a secure web portal to send/receive confidential data. This fee is customarily
paid in multiple payments based upon the Company reaching certain milestones as set forth in the scope of work for each customer. Since
completion of a milestone is subject to each customer’s approval, there are significant judgments involved in the determination
of timing and satisfaction of performance obligations and the payments are recognized as revenue over the completion of each milestone.
Second, revenue from a monthly user fee is accrued monthly based upon the number of individual users of the product each month.

License
fees generated by the nonexclusive licensing of the Company’s TurnScor product are accrued monthly.

As
of June 30, 2025, and December 31, 2024, the Company had $0 in contract assets and contract liabilities.

Accounts
Receivable

The
Company extends credit to customers in the normal course of business. The allowance for doubtful accounts represents the Company’s
best estimate of the amount of profitable credit losses in the Company’s existing accounts receivable. The Company determines the
allowance based on specific customer information, historical write-off experience and current industry and economic data. Account balances
are charged off against the allowance when the Company believes that it is probable that the rece