Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 361

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 361
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 KWIKClick application.

The patent pending KWIKClick application and website
are free to download, distribute and use. In any scenario, sellers and buyers all access the same KWIKClick platform.

Revenues

The Company’s revenues are primarily sourced
from the Company’s KwikClick platform. The Company generates revenues by being a software as a service (SAAS) platform via loyalty
and reward programs tailored for a particular brand, retailer or influencer. With the program, the brand, retailer or influencer can offer
products with loyalty incentives, discounts, or other benefits to induce sales and brand loyalty. The Company provides expertise in attracting
new customers through these loyalty programs and provides unique affiliate commission payment services with its patented waves of pay
and revenue sharing technology. The Company currently integrates with Shopify, which facilitates over $200 Billion Gross Merchandise
Volume (GMV) annually for other ecommerce platforms. The Company is currently planning integrations with WooCommerce, BigCommerce, Magento
and others. Additionally, some brands prefer a more integrated branding view of the KWIK software into their own website, requiring additional
design and programming. This enables a more uniquely branded user experience within the brand’s website. In December, the Company
entered into an arrangement with a brand to provide programming services to integrate the KWIK software into their website. The arrangement
provides for a monthly payment of service fees of $50,000 for the next 18 months, including monitoring, updates and maintenance. The Company
is noting increasing interest with this capability and anticipates more brands will opt for this type of custom design. The Company recognizes
additional revenue for these integrations which is noted as Custom Design Services in the Company’s Statement of Operations. Brand
Services revenues for the current year decreased $180,858 from $288,229 in the prior year to $107,371 this year due to a decrease in small
retailer and a reduced number of influencer campaigns. This reduction was offset by Custom Design Services which will likely increase
in coming quarters as noted above. With the recent enrollment of some significant retail brands on the KWIK platform, and additional custom
design projects under review, we believe the Company will be able to generate increasing revenues during fiscal 2025 with an expectation
for positive cash flows during fiscal 2026.

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Operating Expenses

Operating expenses for the fiscal year ended December
31, 2024 were $1,914,551 as compared to $4,194,407 for the