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

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 14
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The expansion of our custom design business requires higher labor costs than our brand services. We expect the costs of revenue to increase
as sales increase, but at a slower pace if we are successful in the expansion of the custom design services. Additionally, we would expect
our sales volume and cost of sales to correspondingly increase as more brands launch our platform within their own website. The underlying
products and services sold through our platform is currently unpredictable.

Operating Expenses

During
the three months ended September 30, 2025 and 2024, we incurred total operating expenses of $355,049 and $306,297 respectively. The $48,752
increase resulted from an increase in management and payroll of $127,890, offset by a decrease in research and development of $69,393
and a decrease in general and administrative expenses of $9,745.

Other Income (Expense)

During the three months ended
September 30, 2025, other expenses increased by $4,625 to $67,468 from $62,843. 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 to fund expenses required for an expansion of our customer
base.

Comparison of operations
for the nine Months ended September 30, 2025 and September 30, 2024

Revenues

During the nine months ended
September 30, 2025 and 2024, we recognized net revenues of $681,077 and $76,569, respectively. The $604,508 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.

 16 

Cost of Sales

Our costs of sales increased
$200,857 to $263,604 for the nine months ended September 30, 2025 as compared to $62,747 for the nine months ended September 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
as sales increase, but at a slower pace if we