Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 84

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 84
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. The Company derives nearly all of its revenue from United
States of America (“US”) based customers with an immaterial amount coming from foreign based customers. Additionally, one
US-based customer provided all the custom design services revenue recognized during the year ended December 31, 2024. No other material
revenue was recognized from a single customer for the years ended December 31, 2024 and 2023.

In addition to the significant expense categories included within net
income presented on the Company's statements of operations and comprehensive loss, see below for disaggregated research and development
expenses:

    Schedule of research and development expenses by segment 

    2024 
    2023
  
    Platform coding and development 
    $314,515  
    $787,937 
  
    Other third-party engineering 
     47,561  
     16,910 
  
    Total research and development expense 
    $362,076  
    $804,847 

The measure of segment assets is reported on the
sheet as total consolidated assets. All the Company's long-lived assets are located in the United States. The Company does not have intra-entity
sales or transfers.

     F-16 

NOTE 11. SUBSEQUENT EVENTS

In January 2025, the Company entered into a new operating lease for its
corporate headquarters for a term of two years. The lease calls for monthly fixed payments of $3,700 increasing 3% annually.

On March 5, 2025, by consent of approximately 54.83% of its outstanding
voting stock, the Company’s Certificate of Incorporation was amended to reduce the number of shares of common stock authorized for
issuance from 400,000,000 to 50,000,000 with no adjustment to the par value of $0.0001 per share. In conjunction with the with Amendment,
the shareholders approved recapitalization plan involving a reverse stock split on a 1-for-40 basis, whereby shareholders will receive
one share of Common Stock for every 40 shares currently held. The reverse split is to be effected no later than December 31, 2025. Fractional
shares will not be issued in connection with the reverse split; any fractional shares will be rounded down to the nearest whole share.

The following provides an unaudited pro forma presentation of the impact
of the approved 1-for-40 reverse stock split as if it had taken place at the beginning