Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References in this Management's Discussion and Analysis of Financial Condition and Results of Operations to "us," "we," "our," and similar terms refer to the Company.

The information contained in this Form 10-Q and documents incorporated herein by reference are intended to update the information contained in the Company's Form 10-K for its fiscal year ended December 31, 2025 which includes our audited financial statements for the years ended December 31, 2025 and 2024 and such information presumes that readers have access to, and will have read, the "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and other information contained in such Form 10-K and other Company filings with the Securities and Exchange Commission ("SEC").

This statement contains forward-looking statements within the meaning of the Securities Act. Discussions containing such forward-looking statements may be found throughout this statement. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors, including the matters set forth in this statement. The accompanying consolidated financial statements include the accounts of Mobiquity Technologies, Inc. (the "Company") and its wholly owned subsidiaries.

This Quarterly Report includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as "anticipate," "estimate," "plan," "continuing," "ongoing," "expect," "believe," "intend," "may," "will," "should," "could," and similar expressions are used to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain risk factors discussed in our Annual Report on Form 10-K (filed with the Securities and Exchange Commission (the "SEC") on April 8, 2026.

Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.

Overview and Strategic Direction

During July 2026, the Company announced a strategic evolution of its business centered on GrowthOS™, its AI-powered customer acquisition operating system. Building upon years of experience in audience intelligence, location-based data, programmatic advertising, and campaign execution, the Company has expanded beyond traditional advertising technology to develop integrated artificial intelligence solutions designed to automate business operations, improve customer acquisition, and create scalable revenue opportunities.

The Company's strategy is focused on two complementary growth initiatives: GrowthOS™, its enterprise-focused AI-powered customer acquisition platform, and BYOB (Build Your Own Business), a new AI-powered business operating platform designed to make advanced artificial intelligence and business automation accessible to a substantially broader customer base.

GrowthOS is built upon three proprietary technology components:

	·	GeoIntel™, which transforms consumer, behavioral, geographic, transactional, and contextual data into predictive customer intelligence;
	·	CMOne™, which serves as the AI decision engine that determines customer targeting, messaging, timing, and optimization strategies; and
	·	ATOS™ (Advertising Technology Operating System), which automates campaign activation, execution, measurement, and optimization across digital customer acquisition channels.

Management believes BYOB represents a potentially significant expansion of the Company's business model. While GrowthOS primarily addresses enterprise customer acquisition needs, BYOB is being developed to serve businesses of virtually any size across numerous industries, potentially expanding the Company's commercial reach from a relatively concentrated enterprise market to a much larger and more diversified population of customers.

Together, these initiatives are intended to position Mobiquity as a broader AI software company with opportunities to develop scalable, recurring revenue stream

Our Company

Mobiquity Technologies, Inc. is an AI software and customer acquisition technology company that develops proprietary software platforms designed to help enterprises operate more efficiently, acquire customers, and automate business processes.

The Company's proprietary GrowthOS™ platform combines customer intelligence, artificial intelligence, predictive analytics, and automated execution through the following proprietary technologies:

	·	GeoIntel™ - customer intelligence and predictive analytics
	·	CMOne™ - AI-powered decisioning and workflow automation
	·	ATOS™ - campaign activation, execution, measurement, and optimization

Together, these technologies create an intelligent operating environment capable of continuously learning from customer interactions while improving acquisition efficiency through automation and machine learning.

In addition to GrowthOS, the Company is developing BYOB as a distinct commercial product intended to extend its AI capabilities into a substantially broader range of business applications and customer markets.

BYOB is designed to simplify the adoption of artificial intelligence by allowing users to describe their business, objectives, and operational requirements. Based on this information, the platform is intended to propose and organize a customized AI team with defined roles, responsibilities, and automated workflows. These AI agents are designed to assist with activities including marketing, sales, customer engagement, business planning, administrative functions, and operational management, while the business owner retains oversight and approval authority.

Management believes BYOB has the potential to materially expand the Company's addressable market and fundamentally broaden how its technology is commercialized. Rather than relying primarily on enterprise-level customer relationships, BYOB is being designed to support a potentially much larger number of individual businesses and users through a standardized, scalable software platform.

The platform's intended flexibility may allow the Company to address opportunities across a wide variety of industries without developing separate software solutions for each market. Management believes this approach could reduce barriers to adoption, improve distribution efficiency, and create opportunities for recurring subscription revenue across a diversified customer base.

Importantly, BYOB is intended to extend beyond marketing and customer acquisition into broader business operations, potentially positioning the Company to participate in the growing adoption of AI-powered business productivity and automation solutions.

Management currently estimates that BYOB will require approximately two to three additional months of development before its anticipated initial commercial availability, subject to successful completion of development, integration, testing, and available resources.

Management believes BYOB could become an important driver of the Company's future growth by expanding its market reach, creating additional recurring revenue opportunities, and enabling the Company to serve a substantially larger customer population than its historical business model.

The Company anticipates evaluating subscription-based pricing and additional premium service offerings as commercialization progresses. BYOB remains under development, and there can be no assurance regarding its completion date, commercial adoption, revenue generation, or ultimate success.

Industry Opportunity

Management believes artificial intelligence is creating significant opportunities for businesses to improve productivity, automate operations, reduce costs, and enhance customer acquisition.

Historically, advanced customer intelligence, marketing automation, and enterprise software solutions have primarily served larger organizations with the financial and technical resources necessary to implement and manage these technologies. GrowthOS addresses these requirements through an integrated AI-powered customer acquisition platform.

BYOB is intended to expand the Company's reach beyond traditional enterprise customers by providing businesses of varying sizes access to customized AI agents and automated workflows through a simplified operating environment.

Management believes the combination of GrowthOS and BYOB could substantially increase the Company's commercial opportunities, allowing it to pursue both higher-value enterprise relationships and a broader subscription-based customer market. This dual-platform strategy is intended to diversify revenue opportunities and provide multiple potential avenues for commercial expansion.

Revenue Model

The Company's existing and anticipated revenue opportunities include:

	·	Enterprise GrowthOS licensing and managed customer acquisition services.
	·	Digital advertising execution, campaign management, and data intelligence services.
	·	AI-powered marketing and business automation solutions.
	·	BYOB software subscriptions and potential premium service offerings.
	·	Platform licensing, enterprise integrations, and strategic commercial partnerships.

GrowthOS provides opportunities for enterprise relationships involving software, technology services, and customer acquisition activities.

BYOB is being designed around a more broadly distributed software model, potentially allowing the Company to acquire and serve a larger number of customers without the same level of individualized implementation typically associated with enterprise deployments.

Management believes this model could create opportunities for recurring subscription revenue and more efficient scaling as customer adoption increases.

Although the Company has not yet established commercial adoption or recurring subscription revenue from BYOB, management believes its potential market breadth and software delivery model could contribute meaningfully to the Company's longer-term revenue diversification and growth strategy.

Recent Business Developments

The Company's commercial agreements with Context Networks, Inc. have been terminated. Mobiquity retains an approximately 5% equity interest in Context Networks, subject to potential dilution from future capital raises.

Plan of Operation

Management's primary objective is to expand commercial adoption of GrowthOS while completing development and preparing for the launch of BYOB.

The Company's operating strategy focuses on the following priorities:

	·	Expand GrowthOS Commercial Adoption: Increase enterprise customer relationships, managed services revenue, and strategic partnerships utilizing the Company's AI-powered customer acquisition technologies.
	·	Complete and Commercialize BYOB: Complete the remaining development and testing activities over an anticipated two-to-three-month period and prepare for initial commercial deployment.
	·	Significantly Broaden Market Reach: Leverage BYOB's flexible AI business operating model to pursue customers across multiple industries, including small and medium-sized businesses, entrepreneurs, independent professionals, and other organizations.
	·	Develop Scalable Recurring Revenue: Pursue subscription-based software revenue opportunities that may allow the Company to expand its customer base without proportionate increases in individualized service requirements.
	·	Enhance AI Technology Capabilities: Continue improving the Company's artificial intelligence, predictive analytics, automation, and platform integration capabilities.
	·	Expand Strategic Distribution Opportunities: Explore partnerships, commercial relationships, and distribution channels that may accelerate adoption of GrowthOS and BYOB.

Management believes the development of BYOB represents an important step in the Company's strategy to expand beyond its historical advertising technology business. By combining enterprise-focused customer acquisition capabilities with a broadly accessible AI-powered business operating platform, the Company intends to pursue opportunities across a significantly larger and more diversified customer market.

Management believes the potential scalability of BYOB, combined with GrowthOS's enterprise capabilities, could provide the Company with multiple avenues for revenue growth and a more diversified recurring revenue base. Successful execution will depend upon completing product development, securing sufficient financing, attracting and retaining customers, and effectively scaling commercial operations. There can be no assurance that these initiatives will achieve anticipated revenue levels or profitability.

Results of Operations

Executive Overview

During the nine months ended September 30, 2026, the Company continued executing its strategic transformation from a traditional advertising technology business toward an AI-powered customer acquisition platform through the expansion of GrowthOS™.

Management believes the first nine months of 2026 represented continued progress in the commercialization of this strategy. Revenue increased compared to the prior-year periods, and operating expenses remained consistent despite continued investment in product development. While the Company remains in an investment phase, management believes these operating trends demonstrate continued progress toward building a more scalable software-based business.

As with many enterprise software businesses, quarterly operating results may fluctuate due to the timing of customer implementations, campaign launches, contract renewals, and customer purchasing decisions. Accordingly, management evaluates performance based not only on quarterly revenue but also on continued product development, customer deployments, operating discipline, and the expansion of recurring commercial opportunities.

Three Months Ended September 30, 2026, Compared to Three Months Ended September 30, 2025

The following table sets forth certain selected consolidated statements of operations data for the periods indicated in dollars. In addition, we note that the period-to-period comparison may not be indicative of future performance.

		Three Months Ended
		September 30, 2026				September 30, 2025
Revenues		$	138,759			$	117,074
Cost of revenues			87,216				29,301
Gross profit			51,543				87,773
Total operating expenses			3,588,432				2,039,999
Loss from operations		$	(3,536,889	)		$	(1,952,226	)

We generated revenues of $138,759 in the three months ended September 30, 2026, compared to $117,074 for the same period in 2025, an increase of $21,685 or 19%. The Company has developed several new features which we believe will help grow revenue in 2026 and beyond.

The increase in revenue primarily reflects continued commercialization of the Company's software platforms and customer engagements as the Company expands deployment of GrowthOS™. During the quarter ended September 30, 2026, the Company continued enhancing its AI-enabled software capabilities, expanding platform functionality, and supporting customer implementations intended to increase future recurring software and managed services revenue.

Revenue during the quarter ended September 30, 2026, continued to reflect the timing of enterprise customer implementations, campaign launches, renewals, and customer purchasing cycles. As GrowthOS™ continues to be commercialized, management expects quarterly revenue to vary based on the timing of customer deployments and program launches.

Management believes future revenue growth will depend upon continued adoption of GrowthOS™, including AI-enabled capabilities within CMOne, increased utilization of ATOS, expansion within the casino and gaming advertising market, growth of recurring SaaS and managed services revenue, and continued execution of its enterprise customer acquisition strategy. However, the timing and extent of future revenue growth remain subject to numerous factors, and there can be no assurance that these initiatives will generate revenue on the timing or scale anticipated.

Cost of revenues was $87,216 or 63% of revenues for the three months ended September 30, 2026, as compared to $29,301 or 25% of revenues in the same quarter of 2025. Cost of revenues consists primarily of cloud infrastructure, software licensing, data services, engineering support, and platform operating costs required to deliver the Company's technology solutions. As GrowthOS™ continues to scale, management believes portions of the Company's technology infrastructure can support additional customer activity without proportional increases in operating costs, creating opportunities for improved operating leverage.

Gross profit was $51,543, or 37% of revenues, for the third quarter of 2026 as compared to $87,773, or 75% of revenues, in the same period of 2025.

Operating expenses were $3,588,432 for the third quarter of 2026 compared to $2,039,999 in the third quarter of 2025, an increase of $1,548,433, or 76%. The increase primarily reflects higher professional fees and technology-related expenses, including a one-time, non-cash stock-based compensation charge of approximately $1,968,000 associated with a Consulting Services Agreement with an unrelated consultant entered into during August, 2026, as discussed in Note 4 to the consolidated financial statements.

The Company continued investing throughout the quarter in GrowthOS™, including artificial intelligence capabilities, machine learning functionality, software engineering, customer implementations, platform integrations, and business development activities designed to support future revenue growth. Management intends to continue investing strategically while maintaining disciplined cost management as the Company scales its software platform.

The loss from operations for the three months ended September 30, 2026, was $3,536,889 as compared to $1,952,226 for the same quarter in 2025, representing an increased loss of approximately $1,585,000, or 81%. The increase in loss reflects the combination of slight increase in revenue, offset by increased operating expenses discussed above, while continuing to invest in GrowthOS™ and the Company's long-term commercialization strategy.

Nine Months Ended September 30, 2026, Compared to Nine Months Ended September 30, 2025

The following table sets forth certain selected consolidated statements of operations data for the periods indicated in dollars. In addition, we note that the period-to-period comparison may not be indicative of future performance.

		Nine Months Ended
		September 30, 2026				September 30, 2025
Revenues		$	334,896			$	160,795
Cost of revenues			202,605				60,939
Gross profit			132,291				99,856
Total operating expenses			7,486,632				6,157,017
Loss from operations		$	(7,354,341	)		$	(6,057,161	)

We generated revenues of $334,896 in the nine months ended September 30, 2026, compared to $160,795 for the same period in 2025, an increase of $174,101, or 108%. The Company has developed several new features which we believe will help grow revenue during the remainder of 2026 and beyond.

The increase in revenue reflects continued commercialization of GrowthOS™ together with expanded customer engagements and ongoing deployment of the Company's software platform. During the first nine months of 2026, the Company continued investing in AI-enabled functionality, automation capabilities, and platform enhancements intended to support future recurring software revenue and customer growth.

As the Company continues expanding its commercial activities, revenue may fluctuate based upon customer implementation schedules, campaign timing, contract renewals, and customer purchasing decisions. Management believes future growth will depend upon continued customer adoption of GrowthOS™, expansion of AI-powered customer acquisition capabilities, increased utilization of ATOS, broader deployment of CMOne, growth in recurring SaaS and managed services revenue, and continued expansion into targeted industry verticals. However, there can be no assurance regarding the timing or magnitude of future revenue growth.

Cost of revenues was $202,605 or 60% of revenues for the nine months ended September 30, 2026, as compared to $60,939 or 38% of revenues in the same period of 2025.

Gross profit was $132,291, or 40% of revenues, for the nine months of 2026 as compared to $99,856, or 62% of revenues, in the same period of 2025. The improvement in gross profit reflects increased revenue together with improved utilization of the Company's technology infrastructure. Management believes the scalability of GrowthOS™ provides opportunities to improve gross margins over time as customer adoption increases, although future results will depend on revenue growth and customer mix.

Operating expenses were $7,486,632 for the nine months of 2026 compared to $6,157,017 in the nine months of 2025, an increase of approximately $1,330,000, or 65%. The increase primarily reflects higher professional fees, including a one-time, non-cash stock-based compensation charge of approximately $1,968,000 associated with a Consulting Services Agreement with an unrelated consultant entered into during August, 2026, as discussed in Note 4 to the consolidated financial statements. The increase was also driven, in part, by the Company's continued investment in technology, business development, marketing initiatives, and infrastructure supporting the Company's strategic transformation. Management remains focused on balancing continued investment in GrowthOS™ with disciplined expense management.

The loss from operations for the nine months ended September 30, 2026, was $7,354,341 as compared to $6,057,161 for the same nine months in 2025, representing an increase in loss of approximately $1,297,000, or 21%. The improvement reflects higher revenue, improved gross profit, offset by increased professional fees while the Company continued investing in its AI-powered customer acquisition platform. Management believes the operating results for the first nine months of 2026 reflect continued progress toward building a more scalable software business while maintaining disciplined cost controls. Future operating results will depend on the Company's ability to continue commercializing GrowthOS™, expand customer adoption, and increase recurring revenue, although there can be no assurance that these objectives will be achieved.

Liquidity and Capital Resources

We have a history of operating losses, and our management has concluded that factors raise substantial doubt about our ability to continue as a going concern and our auditor has included an explanatory paragraph relating to our ability to continue as a going concern in its audit report for the fiscal year ended December 31, 2025.

The Company had cash of $146,746 at September 30, 2026. Cash used in operating activities for the nine months ended September 30, 2026, was $3,897,155. This resulted primarily from a net loss of $8,604,729 offset by provision for credit losses of $22,325, amortization of capitalized software development costs of $540,348, amortization of debt discounts of $1,082,291, issuance of common stock and warrants for services rendered of $2,908,871, and an increase in accounts receivable of $44,909, a decrease in prepaid expenses and other assets of $2,329, and an increase in accounts payable and accrued expenses of $113,093. Cash used in investing activities was insignificant. Cash flows provided by financing activities consisted of $3,422,888 of net proceeds received from the sale of common stock and $1,623,247 related to issuance of long-term debt, offset by repayments on long-term debt of $1,633,996.

The Company had cash of $361,894 at September 30, 2025. Cash used in operating activities for the nine months ended September 30, 2025, was $4,090,540. This resulted primarily from a net loss of $6,685,887 offset by provision for credit losses of $66,983, loss on debt extinguishment of $37,440, amortization of capitalized software development costs of $540,349, amortization of debt discounts of $536,749, issuance of common stock and warrants for services rendered of $1,780,840, stock-based compensation of $6,230, and an increase in accounts receivable of $143,638, an increase in prepaid expenses and other assets of $148,907, and an increase in accounts payable and accrued expenses of $82,462. Cash used in investing activities was insignificant. Cash flows provided by financing activities consisted of $2,944,792 of net proceeds received from the sale of common stock and warrants, and $1,034,171 related to issuance of long-term debt, offset by repayments on long-term debt of $686,148.

Our company commenced operations in 1998 and was initially funded by our three founders, each of whom have made demand loans to our company that have been repaid. Since 1999, we have relied on equity financing and borrowings from outside investors to supplement our cash flow from operations and expect this to continue in 2026 and beyond until cash flow from our proximity marketing operations becomes substantial.

Debt and Equity Transactions

For a description of debt and equity transactions for the fiscal year ending December 31, 2025, and the nine months ended September 30, 2026, reference is made to the Notes to the Consolidated Financial Statements described elsewhere herein.

Off-Balance Sheet Arrangements

As of September 30, 2026, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.