Company: CLOQ
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009976
Chunk: 41

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 41
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 that has materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.

 6 

PART II

OTHER INFORMATION

Item
1. Legal Proceedings

The Company is not currently a party to any legal
proceedings, nor is the Company a party to any administrative proceedings.

In addition, the Company’s officers and
directors have not been convicted in any criminal proceedings nor have they been permanently or temporarily enjoined, barred, suspended
or otherwise limited from involvement in any type of securities or banking activities.

Item
1A. Risk Factors

The Company qualifies as a smaller reporting company
as defined by §229.10(f)(1) and therefore is not required to provide the information required by this Item. However, the Company
does acknowledge that there are risks associated with the business of the Company.

We will be competing with a variety of companies,
many of which have significantly greater financial, technical, marketing and other resources than us. If we fail to attract and retain
a large base of customers for our products, or if our competitors establish a more prominent market position relative to ours, this will
inhibit our ability to grow and successfully execute our business plan. For example, Wells Fargo has introduced an “on/off”
feature for their customers, Discover Card has “Freeze It” functionality, and Ondot Systems has already been operating in
the mobile card security space for quite some time. However, the Company believes that the multi-purpose functionality of CyberloQ, along
with its multi-purpose applications will give the Company a distinct advantage by comparison. CyberloQ can be used in the banking system
to protect debit/credit cards, in the health care industry to protect PII (Personal Identifying Information) now that medical records
are kept digitally, and can protect corporate data bases in any industry from outside intrusion via geo-fencing. The Company believes
that these distinct features, along with the ability to “White Label” the technology for marketing partners, give the Company
a distinction in the marketplace. However, there can be no assurance that we will be able to successfully compete with other companies
in the marketplace.

In addition, the Company could incur increased
costs, decreased revenue, or suffer reputational damage in the event of a cyber-attack. The Company’s business involves the collection,
storage, processing and transmission of customers’ personal data, including financial information. In the event that the Company’s
security measures are breached due to human error, malfeas