Company: CLOQ
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009976
Chunk: 11

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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software costs which totaled $1,677,621 as of March 31, 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 March 31, 2025,
the Company has capitalized $21,497.

     F-6 

CyberloQ Technologies, Inc.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)

For the Three Months Ended March 31, 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 fraud technology products, including CyberloQ Vault, and from licensing fees for
the TurnScor product.

The revenue derived from the CyberloQ banking
fraud technology products are comprised of two components. First, there is a development and customization fee paid to the