Company: KWIK
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001683168-25-003684
Chunk: 39

Company: KwikClick, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 39
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 not expect these settlements to occur on a frequent basis in the future.

Other income was offset by
an increase in related party interest to $62,672 from $47,211. The increase was the result of continued compounding (at a rate of 10%
per annum) of our unpaid related party loan outstanding. If we are successful in increasing our customer base, we do not expect an increase
the principal balance of the loan over the next twelve months.

 15 

Liquidity and capital resources

At
March 31, 2025, we had a working capital deficit of $3,638,896. Approximately 78% of our liabilities as of March 31, 2025 are due to our
founder, majority shareholder, and CEO Mr. Fred Cooper under a note payable arrangement carrying an interest rate of 10% per annum. Mr.
Cooper has informally agreed to defer repayment of the note until the Company has achieved a more stable liquidity position, however,
he is not legally obligated to continue to do so.

We require additional capital
to continue to operate our business, and to develop and expand our business. Sources of additional capital through various financing transactions
or arrangements with third parties may include equity or debt financing, bank loans or revolving credit facilities. We may not be successful
in locating suitable financing transactions in the time period required or at all, and we may not obtain the capital we require by other
means.

Off-Balance Sheet Arrangements

The Company does not have any
off-balance sheet arrangements.

Critical Accounting Estimates

There has been no change in our critical accounting
estimates from those disclosed in our annual report on Form 10-K filed with the SEC on March 31, 2025.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls
and Procedures

Based on an evaluation under the
supervision and with the participation of our management, our principal executive officer and principal financial officer have concluded
that our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were not effective as of
March 31, 2025 to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i)
recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii