Company: KWIK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006139
Chunk: 12

Company: KwikClick, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 12
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 filed with
the SEC on June 30, 2025, that can be read at www.sec.gov.

Although we have sought to
identify the most significant risks to our business, we cannot predict whether, or to what extent, any of such risks may be realized,
nor can there be any assurance that we have identified all possible issues which we might face. For all of these reasons, the reader is
cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date hereof. We assume
no responsibility to update any forward-looking statements as a result of new information, future events, or otherwise except as required
by law.

Overview

The Company was organized
pursuant to the laws of the State of Delaware on November 16, 1993. Beginning in 2020, the Company commenced its Kwik business operations
to allow sellers to make products or services available on the Kwik platform, at Kwik.com, offering a self-determined incentive budget
on goods or services in exchange for exposure and substantially increased sales volume. Kwik is a social interaction, selling, and referral
software platform.  Stores and manufacturers (“Brands”) wishing to promote their products or services on the Kwik software
platform are connected to promoters, influencers, and customers.

 15 

Comparison of operations
for the Three Months ended June 30, 2025 and June 30, 2024

Revenues

During the three months ended
June 30, 2025 and 2024, we recognized net revenues of $231,710 and $13,146, respectively. The $218,564 increase is primarily the result
of the expansion of our custom design services in which we build custom software features for customers that is generally done in addition
to embedding our transaction platform into a customer’s website. We intend to continue to pursue providing these products and
services which we expect to drive increases in our brand services on a perpetual basis.

Cost of Sales

Our costs of sales increased
$80,394 to $88,538 for the three months ended June, 2025 as compared to $8,144 for the three months ended June 30, 2024. The expansion
of our custom design business requires higher labor costs than our brand services. We expect the costs of revenue to increase, but at
a slower pace if we are successful in the expansion of the custom design services. Additionally, we would expect our