Company: KWIK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006139
Chunk: 1

Company: KwikClick, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 1
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 any other period.

Reclassifications

Certain amounts in the 2024 condensed consolidated
balance sheet have been reclassified to conform with the current period presentation.

Use of Estimates

The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.

     7 

Principles of Consolidation

The accompanying condensed consolidated financial
statements include the accounts of the Company and its wholly owned subsidiary Kwik LLC. Intercompany transactions and balances have been
eliminated in consolidation.

Segments 

The Company has one reportable operating segment.

Cash and Cash Equivalents

Cash equivalents include all highly liquid investments
with an original maturity of three months or less when purchased. The Company did not have any cash equivalents as of June 30, 2025 or
December 31, 2024.

Net Loss Per Share

The Company presents both basic and diluted earnings
per share (EPS) on the face of the statements of operations. Basic EPS is computed by dividing net loss by the weighted average number
of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period
under the treasury stock method using the if-converted method. Due to the incurrence of net losses, the Company did not include outstanding
instruments convertible into common stock that would be anti-dilutive. As of June 30, 2025, the Company had approximately 257,000 stock
appreciation rights (“SARs”) and approximately 44,000 warrants outstanding and exercisable into shares of common stock that
were potentially dilutive.

Revenue Recognition

The Company determines the measurement of revenue
and the timing of revenue recognition utilizing the following core principles:

    ·
    Step 1:  Identify the contract with the customer

    ·
    Step 2:  Identify the performance obligations in the contract

    ·
    Step 3:  Determine the transaction price

    ·
    Step 4:  Allocate the transaction price to the performance obligations in the contract

    ·
    Step 5:  Recognize revenue when the Company satisfies a performance obligation

Revenue is measured based on the amount of consideration
that the Company expects to receive,