Company: CLOQ
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009976
Chunk: 12

Company: CYBERLOQ TECHNOLOGIES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 12
---
 Company to
integrate CyberloQ with the banking institution or program manager’s ecosystem in order to add the CyberloQ authentication to the
bank’s payment cards, website or digital service. This fee is customarily paid in multiple payments based upon the Company reaching
certain milestones as set forth in the scope of work for each customer. Since completion of a milestone is subject to each customer’s
approval, there are significant judgments involved in the determination of timing and satisfaction of performance obligations and the
payments are recognized as revenue upon the completion of each milestone. Second, where the Company’s agreement is with a processor
as opposed to an end user customer, there is an API license fee that is accrued monthly. Third, revenue from user fees are accrued monthly
based over the number of individual card users each month.

The revenue derived from CyberloQ Vault is also
comprised of two components. First, there is a development and customization fee paid to the Company to build a customized cloud-based
encryption and a secure web portal to send/receive confidential data. This fee is customarily paid in multiple payments based upon the
Company reaching certain milestones as set forth in the scope of work for each customer. Since completion of a milestone is subject to
each customer’s approval, there are significant judgments involved in the determination of timing and satisfaction of performance
obligations and the payments are recognized as revenue over the completion of each milestone. Second, revenue from a monthly user fee
is accrued monthly based upon the number of individual users of the product each month.

License fees generated by the nonexclusive licensing
of the Company’s TurnScor product are accrued monthly.

As of March 31, 2025, and December 31, 2024, the
Company had $0 in contract assets and contract liabilities.

Accounts Receivable

The Company extends credit to customers in the
normal course of business. The allowance for doubtful accounts represents the Company’s best estimate of the amount of profitable
credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on specific customer information,
historical write-off experience and current industry and economic data. Account balances are charged off against the allowance when the
Company believes that it is probable that the receivable will not be recovered. Management believes that there are no concentrations of
credit risk for which an allowance has not been established. Although management believes that the allowance is adequate, it is possible
that the estimated amount of cash collections with respect to accounts receivable could