Company: CLOQ
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023402
Chunk: 12

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 implemented
a business plan to fully update the CyberloQ Secure Solution and feasibility of the software to meet the demands of the market. As of
January 1, 2022, the Company began capitalizing software costs which totaled $1,836,621 as of June 30, 2025.

Patent
costs including those incurred to acquire patents, including legals costs, are capitalized and amortized using the straight line method
over their estimated useful lives or statutory lives, whichever is shorter, and are reviewed for impairment upon any triggering event
that may give rise to the assets ultimate recoverability as prescribed under the guidance related to impairment of long-lived assets.
As of June 30, 2025, the Company has capitalized $21,497.

    F-6

CyberloQ
Technologies, Inc.

NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)

For
the Six Months Ended June 30, 2025

Revenue
Recognition

Effective
January 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU
2014-09 or ASC 606). The adoption of ASC 606 resulted in changes to the Company’s accounting policies for revenue recognition previously
recognized under ASC 605 (Legacy GAAP), as detailed below. However, since the Company had not earned any revenue prior to adopting ASC
606, this policy change had no effect on any financial statements from prior periods, thus no adjustments have been made to any prior
periods related to the adoption of ASC 606.

Revenue
Recognition Policy

Under
ASC 606, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects
the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606,
the Company performs the following steps:

    1)
    Identify
    the contract(s) with a customer;

    2)
    Identify
    the performance obligations in the contract;

    3)
    Determine
    the transaction price;

    4)
    Allocate
    the transaction price to the performance obligations in the contract; and

    5)
    Recognize
    revenue when (or as) we satisfy a performance obligation.

The
Company derives its revenue from development, customization and user fees for the CyberloQ banking