Company: KWIK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006139
Chunk: 13

Company: KwikClick, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 13
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 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 June 30, 2025 and 2024, we incurred total other operating expenses of $325,321 and $288,816 respectively. The majority
of the $36,505 increase resulted from non-recurring loss on abandonment of long-lived assets of $32,306 recognized in the three months
ended June 30, 2025.

Other Income (Expense)

During the three months ended
June 30, 2025, other expenses increased by $9,769 to $64,894 from $55,125. 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.

Comparison of operations
for the Six Months ended June 30, 2025 and June 30, 2024

Revenues

During
the six months ended June 30, 2025 and 2024, we recognized net revenues of $438,580 and $44,037, respectively. The $394,543 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.

Cost of Sales

Our costs of sales increased
$147,652 to $157,561 for the six months ended June, 2025 as compared to $9,909 for the six months ended June 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, 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.

 16 

Other Operating Expenses

During
the six months ended June 30, 2025 and