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

Company: KwikClick, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 15
---
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. When the Brand is paid for the consumer purchases through the Kwik platform,
the Brand pays an incentive budget to Kwik. Kwik receives the entire incentive budget as revenue for generating the sales through its
platform, and recognizes cost of sales upon calculation and payment of the commissions paid to the wave of affiliates.

Comparison of operations
for the Three Months ended March 31, 2025 and March 31, 2024

Revenues

During the three months ended
March 31, 2025 and 2024, we recognized net revenues of $206,870 and $30,891, respectively. The $175,979 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 part of 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
$67,258 to $69,023 for the three months ended March 31, 2025 as compared to $1,765 for the three months ended March 31, 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 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.

Other Operating Expenses

During
the three months ended March 31, 2025 and 2024, we incurred total other operating expenses of $315,470 and $748,291 respectively. The
majority of the