Company: KWIK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008410
Chunk: 6

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 6
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Internal-Use Software. This guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities
apply to begin capitalizing costs. Under the new standard, cost capitalization should only commence when an entity has committed to funding
a software project and it is probable the project will be completed and the software will be used for its intended function. The amendments
are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting
periods. Entities may apply the guidance using a prospective, retrospective or modified transition approach. Early adoption is permitted
as of the beginning of an annual reporting period. The Company is currently evaluating the impact this standard will have on its condensed
consolidated financial statements.

The Company currently believes there are no other
issued and not yet effective accounting standards that are materially relevant to its condensed consolidated financial statements.

     10 

NOTE 3. RELATED PARTY TRANSACTIONS

The Company’s related party loans consist
of the following:

    Schedule of related party loans 

    September 30,  2025  
    December 31,  2024 
  
    Related party note payable with a nominal interest rate of 10% per annum due on demand 
    $2,778,677  
    $2,541,677 
  
    Accrued interest 
     496,149  
     301,305 
  
    Total related party loans 
    $3,274,826  
    $2,842,982 

During the three and nine months ended September
30, 2025, the Company recognized interest expense of $67,468 and $194,844, respectively. During the three and nine months ended September
30, 2024, the Company recognized interest expense of $62,278 and $163,201, respectively.

NOTE 4. STOCKHOLDERS' DEFICIT

Stock Based Compensation

Stock Appreciation Rights

During the three months ended September 30, 2025,
the Company issued 49,766 fully vested stock appreciation rights (“SARs”), of which 10,334 settled compensation due to an
employee totaling $30,000. During the nine months ended September 30, 2025, the Company issued 75,657 fully vested stock appreciation
rights (“SARs”), of which 34,975 settled compensation due to an employee totaling $90,000. As of September