Company: KWIK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006139
Chunk: 8

Company: KwikClick, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 8
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 43,332 
  
    2027 
     3,620 
  
    Total undiscounted cash payments 
     68,038 
  
    Less imputed interest 
     (4,866)
  
    Present value of payments 
    $63,172 

     12 

For
the three months ended June 30, 2025 and 2024, the Company recognized lease expense associated with its non-cancelable operating lease
totaling $12,701 and $18,180, respectively, and is included in general and administrative expenses .
For the six months ended June 30, 2025 and 2024, the Company recognized lease expense associated with its non-cancelable operating lease
totaling $18,647 and $36,223, respectively, and is included in general and administrative expenses. The remaining term of the Company’s
operating lease as of June 30, 2025, was 19 months.

NOTE 6. COMMITMENTS AND CONTINGENCIES

On May 31, 2023, NAI Liquidation Trust, the successor
in interest to the defunct NewAge, Inc. (NewAge) by and through its Liquidation Trustee, Steven Balasiano, filed an adversary proceeding
against the Company in the NewAge Chapter 11 bankruptcy case (Delaware Case #22-10819). The Company licensed some of its technology to
NewAge pursuant to a license agreement that started in September 2021 and terminated in late 2022. A prior adversarial action was brought
by NewAge in the same bankruptcy case but was never served and was dismissed on June 1, 2023. Like the prior dismissed action, NAI Liquidation
Trust contends that they are the rightful owner of KwikClick’s intellectual property. NAI Liquidation Trust brings several causes
of action related to that contention.

The Company believes that the code base and functionality
of its software platform differs materially from any intellectual property owned by NewAge. The Company intends to vigorously defend and
assert its intellectual property rights. In the event the Company does not prevail it may be required to impair substantially all of its
intangible assets with a carrying value of approximately $1.2 million at June 30, 2025 and may be forced to discontinue its on-going fee-based
sales platform. The litigation has been delayed and an estimate of a reasonably possible loss cannot be made at this time. As such, there