Company: KWIK
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001683168-25-003684
Chunk: 23

Company: KwikClick, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 23
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balance sheets. Deferred revenue is for sales where the right to payment exists or payment has been received, but control has not been
transferred.

The beginning and
ending contract balances were as follows:

    Schedule of contract assets/liabilities 
    March 31, 
    2025  
    December 31, 
    2024  
    December 31, 
    2023 

    Accounts receivable 
    $26,564  
    $32,278  
    $16,503 
  
    Deferred revenue 
     30,000  
     –  
     – 

Cost
to Obtain Revenue Contracts

Applicable sales commissions paid in connection
with contracts exceeding one year are capitalized and amortized over the period of benefit, which has been determined to be the contract
term. During the three months ended March 31, 2025 and 2024 the Company did not incur material sales commissions.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements
are issued by the Financial Accounting Standards Board (“FASB”) under its accounting standard codifications (“ASC”)
or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below.

New Accounting Pronouncements, Adopted

On December 14, 2023, the FASB issued ASU
2023-09, Improvements to Income Tax Disclosures, which amends the guidance in ASC 740, Income Taxes. The ASU is intended to improve
the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the
rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve
the effectiveness of income tax disclosures. The ASU’s amendments are effective for public business entities for annual
periods beginning after December 15, 2024. Entities are permitted to early adopt the standard “for annual financial statements
that have not yet been issued or made available for issuance.” Adoption is either prospectively or retrospectively; the
Company adopted this ASU on a prospective basis effective January 1, 2025 and there was not a material impact to the
Company’s financial statements.

     9 

New Accounting Pronouncements, Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06,
Disclosure Improvements: Codification Amendments in Response to the SEC’s