Company: CLOQ
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009976
Chunk: 9

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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, future results of operations will
be affected.

     F-5 

CyberloQ Technologies, Inc.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)

For the Three Months Ended March 31, 2025

Cash and Cash Equivalents

Cash equivalents are comprised of certain highly
liquid investments with maturities of three months or less when purchased. The Company maintains its cash in bank deposit accounts, which
at times may exceed federally insured limits. As of March 31, 2025, and December 31, 2024, the Company had $0 and $32,866 in
deposits in excess of federally-insured limits.

Research and Development, Software Development
Costs, and Internal Use Software Development Costs

Software development
costs are accounted for in accordance with ASC Topic No. 985. Software development costs are capitalized once technological feasibility
of a product is established and such costs are determined to be recoverable. For products where proven technology exists, this may occur
very early in the development cycle. Factors we consider in determining when technological feasibility has been established include (i)
whether a proven technology exists; (ii) the quality and experience levels of the individuals developing the software; (iii) whether the
software is similar to previously developed software which has used the same or similar technology; and (iv) whether the software is being
developed with a proven underlying engine. Technological feasibility is evaluated on a product-by-product basis. Capitalized costs for
those products that are canceled or abandoned are charged immediately to cost of sales. The recoverability of capitalized software development
costs is evaluated on the expected performance of the specific products for which the costs relate.

During the three months
ended March 31, 2025, and 2024, we capitalized $132,200 and $91,264, respectively, of development costs for the CyberloQ platform
and we expensed zero and zero, respectively, for expenditures on research and development. None was paid to related parties.

Internal use software
development costs are accounted for in accordance with ASC Topic No. 350 which requires the capitalization of certain external and 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