Company: CLOQ
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023402
Chunk: 11

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 internal computer software costs incurred during the application development stage. The application development stage is characterized
by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred,
while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality.

In
accounting for website software development costs, we have adopted the provisions of ASC Topic No. 350. ASC Topic No. 350 provides that
certain planning and training costs incurred in the development of website software be expensed as incurred, while application development
stage costs are to be capitalized. During the period ended September 30, 2023, the Company began capitalizing website development costs,
for the six month period ended June 30, 2025 and 2024 we capitalized $6,745 and $1,200.

Fixed
Assets, Intangibles and Long-Lived Assets

The
Company records its fixed assets at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of fixed
assets, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book value is
recorded as a gain or loss on sale of assets. The Company depreciates its fixed assets over their respective estimated useful lives ranging
from 3 three to fifteen years.

The
Company follows FASB ASC 360-10, “Property, Plant, and Equipment,” which established a “primary asset”
approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for
a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not
recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.
Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. As of December 31,
2020, the Company wrote-off the book value of the CyberloQ technology software fixed asset and recorded software impairment expense of
$321,725. Even though the software asset was written-off as impaired as of December 31, 2020, the software asset continued to be functionable
but required updating the software programming code to current technology standards. During 2021, the Company developed and