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

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 carrying values of assets and liabilities
and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company
may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates
and the actual results, future results of operations will be affected.

    F-5

CyberloQ
Technologies, Inc.

NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)

For
the Six Months Ended June 30, 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 June 30, 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 six months ended June 30, 2025, and 2024, we capitalized $291,200 and $207,214, 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