I'm not sure that it's not working. Here's why.
When the CyberQ Cloud is in hotspot mode, there is a single one-to-one relationship with the iPhone. No other devices or networks, including the Internet, are usable. The CyberQ Cloud sees the iPhone and the iPhone sees the CyberQ. That's why you're seeing the "No Internet" connection message. Even if you have your phone's provider's name showing on the iPhone, that data network is not currently accessible. After you connect to the CyberQ Cloud device (by choosing it from the wireless choices from the iPhone), you'd want to test it by opening up a browser window, like Safari, and typing in 192.168.101.10 (press enter), which is the default IP address for the CyberQ Cloud as it came from the factory for hotspot mode. If you see the CyberQ Cloud's webpage show up in the browser, you're good to go and can use that app. Those are the basics. Knowing the CyberQ Cloud's IP address to connect to is very important.
It's much easier to use the app in infrastructure mode. Are you going to hotspot mode because you don't have an infrastructure wi-fi network to connect to where you are smoking?