The following discussion is intended to assist you in understanding our business and the results of our operations. It should be read in conjunction with the Condensed Financial Statements and the related notes that appear elsewhere in this report as well as our Report on Form 10K filed with the Securities and Exchange Commission for the period ending December 31, 2020. Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements". These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.





Company History

CyberloQ Technologies Inc. ("CLOQ", 'We" or the "Company") was incorporated in Nevada on February 25, 2008 as Advanced Credit Technologies, Inc. On November 20, 2019, the Company changed its name from Advanced Credit Technologies, Inc. to CyberloQ Technologies, Inc. The Company has never been the subject of any bankruptcy, receivership or similar proceeding. The Company has never been involved in any material reclassification, merger, or consolidation.

On June 15, 2017, the Company created a private limited company in the United Kingdom named CyberloQ Technologies LTD. CyberloQ Technologies LTD is a wholly-owned subsidiary of the Company, and any business that the Company has in the United Kingdom will be transacted through CyberloQ Technologies LTD. However, to date CyberloQ Technologies LTD has had no activity, operational or otherwise.

Current Overview of the Company

CyberloQ Technologies Inc. is a development-stage technology company focused on fraud prevention and credit management. The Company offers a proprietary software platform branded as CyberloQ®. While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ.

CyberloQ is a banking fraud prevention technology that is offered to institutional clients in order to combat fraudulent transactions and unauthorized access to customer accounts. Through the use of a customer's smart-phone, CyberloQ uses a multi-factor authentication system to control access to a bank card, transaction type or amount, website, database or digital service. The mobile applications for CyberloQ have been built, and have been successfully integrated into the banking ecosystem.

The Company also has a product named CyberloQ Vault which is a "cloud based' security protocol that allows clients the ability to send/receive secure data without having to use traditional e-mail which is prone to breach. This service uses cloud-based encryption and a secure web portal to send/receive confidential data. Both the sender and receiver must have authenticated their position within the prescribed geo-coordinates as well as authenticate their mobile devices prior to sending/receiving any data, rendering a hack or breach utterly useless since the encrypted data is unusable without the CyberloQ authentication component.

Moreover, the Company is able to develop secure databases for clients by developing and attaching a private blockchain to the SQL database and further securing the database through use of the Company's CyberloQ technology. The blockchain being developed by the Company is a private blockchain and is an invitation-only network governed by a single entity. Entrants to the network require permission to read, write or audit the blockchain.





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Finally, the Company offers a web-based proprietary software platform under the brand name Turnscor® which allows customers to monitor and manage their credit from the privacy of their own homes.

The Company currently has three officers - its President, Vice-President and Chief Technology Officer. The Company does not have other employees of the Company at this time.

Liquidity, Capital Resources and Material Changes in Financial Condition

As of March 31, 2021, the Company's assets were $32,582 compared to $27,441 in assets as of December 31, 2020. The change in the Company's financial condition can be attributed to an increase in cash from $26,741 to $31,882.

As of March 31, 2021, the Company's liabilities were $323,040 compared to $337,464 in liabilities as of December 31, 2020. This change in the Company's financial condition was due to a decrease of $19,595 in accounts payable and accrued expenses, along with an increase of $5,171 in accrued interest.

Net cash used in operating activities for the three month period ending March 31, 2021 was $107,859 compared to $112,337 for 2020. Cash provided by or used by operating activities is driven by our net loss and adjusted by non-cash items as well as changes in operating assets and liabilities. There were no non-cash adjustments at March 31, 2021.

Net cash used by investing activities was $0 for the three months ended March 31, 2021 as compared to $0 for 2020.

Net cash provided by financing activities was $113,000 for the three months ended March 31, 2021 as compared to $136,666 for 2020.

The Company had gross revenue of $300 for the three months ended March 31, 2021 compared to gross revenue of $8,140 for the three months ended March 31, 2020, and is currently reliant on its ability to raise additional capital to continue execution of its business plan to move the Company forward towards profitability. The Company does not anticipate any significant decrease in its operating expenses for the remainder of 2021. Unless the Company begins to generate operational revenue, it will be reliant on its ability to raise additional capital in order to continue its operations.

Results of Operations for the Three Months Ended March 31, 2021 and 2020

Company revenue was $300 in the three months ended March 31, 2021 as compared to $8,140 for the three months ended March 31, 2020. This decrease in service revenue was due to the expiration of a customer contract.

The Company's operating expenses were $93,564 for the three months ended March 31, 2021 as compared to $130,538 for the three months ended March 31, 2020. This decrease in operating expenses was primarily due to a one-time software impairment expense in 2020. In addition, the Company's expenses either decreased or remained flat in all but four expense categories: professional fees, travel and entertainment, rent and other operating expense. The Company experienced changes in expense categories as noted below.

Depreciation expense was $0 for the three months ended March 31, 2021, compared to $30,669 for the three months ended March 31, 2020. This decrease in depreciation expense was due to the Company the one-time software impairment expense in 2020.

Stock compensation expenses were $0 for the three months ended March 31, 2021, compared to $8,000 for the three months ended March 31, 2020. This decrease in stock compensation expense was due to a one-time grant of common stock for services rendered by an outside contractor in the first quarter of 2020.

Office supplies and expenses were $1,158 for the three months ended March 31, 2021, compared to $3,287 for the three months ended March 31, 2020.





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Computer and internet expenses were $1,194 for the three months ended March 31, 2021 as compared to $2,955 for the three months ended March 31, 2020. This decrease was due to lower hosting costs associated with the Company's private blockchain product.

Professional fees were $15,796 for the three months ended March 31, 2021, compared to $12,861 for the three months ended March 31, 2020. This increase in professional fees was due to increased accounting fees during the quarter.

Rent expenses were $1,917 for the three months ended March 31, 2021, compared to $195 for the three months ended March 31, 2020. This increase in rent exepnse was due to the Company entering into a new office lease in June of 2020.

Travel and entertainment expenses were $1,696 for the three months ended March 31, 2021, compared to $79 for the three months ended March 31, 2020. This increase in travel and entertainment expenses was due to Company officers travelling for a sales meeting.

Other operating expenses were $1,159 for the three months ended March 31, 2021 as compared to $881 for the three months ended March 31,2020.

For the three months ended March 31, 2020, there were no material changes in officer compensation, research, and sales commission expense as compared to the three months ended March 31, 2020.

As a result of the foregoing, the Company experienced a net loss from operations of $102,653 in the three months ended March 31, 2021 compared to a net loss from operations of $122,398 in the three months ended March 31, 2020.

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