Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 531

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 531
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–  
    $4,010 

The accompanying footnotes are an integral part of
these consolidated financial statements.

 F-5 

KWIKCLICK, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023 and 2022

NOTE 1. BUSINESS

KwikClick, Inc., (the Company) was organized pursuant
to the laws of the State of Delaware on November 16, 1993. Beginning in 2020, the Company commenced its KwikClick business operations
to allow sellers to make products or services available on the KwikClick platform, at Kwik.com, offering a self-determined incentive budget
on goods or services in exchange for exposure and substantially increased sales volume. KwikClick is a social interaction, selling, and
referral software platform. Stores and manufacturers (“Brands”) wishing to promote their products or services on the
KwikClick software platform, which connects them to promoters, influencers, and customers. When the Brand is paid for the consumer
purchases through the KwikClick platform, the Brand pays an incentive budget to KwikClick. KwikClick 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.

Going Concern

As reflected in the accompanying consolidated financial
statements, the Company has a net loss of $1,956,424 for the year ended December 31, 2024. If the Company does not begin to generate sufficient
revenue or raise additional funds through financing, the Company may need to incur additional liabilities with certain related parties
to sustain the Company's existence. There are currently no plans or agreements in place to provide such funding. The Company will require
additional funding to finance the growth of its future operations as well as to achieve its strategic objectives.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Basis

These consolidated financial statements are prepared
on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“US
GAAP”). The Company’s fiscal year end is December 31.

Principles of Consolidation

The accompanying consolidated financial statements
include the accounts of the Company and its wholly owned subsidiary KwikClick LLC. Intercompany transactions and balances have been eliminated
in consolidation.

Segments 

The Company has one reportable operating segment.

Cash and Cash Equival