Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 213

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 213
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 platforms. The Company is currently planning integrations with WooCommerce, BigCommerce, Magento
and others. Additionally, some brands prefer a more integrated branding view of the KWIK software into their own website, requiring additional
design and programming. This enables a more uniquely branded user experience within the brand’s website. In December, the Company
entered into an arrangement with a brand to provide programming services to integrate the KWIK software into their website. The arrangement
provides for a monthly payment of service fees of $50,000 for the next 18 months, including monitoring, updates and maintenance. The Company
is noting increasing interest with this capability and anticipates more brands will opt for this type of custom design. The Company recognizes
additional revenue for these integrations which is noted as Custom Design Services in the Company’s Statement of Operations. Brand
Services revenues for the current year decreased $180,858 from $288,229 in the prior year to $107,371 this year due to a decrease in small
retailer and a reduced number of influencer campaigns. This reduction was offset by Custom Design Services which will likely increase
in coming quarters as noted above. With the recent enrollment of some significant retail brands on the KWIK platform, and additional custom
design projects under review, we believe the Company will be able to generate increasing revenues during fiscal 2025 with an expectation
for positive cash flows during fiscal 2026.

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Operating Expenses

Operating expenses for the fiscal year ended December
31, 2024 were $1,914,551 as compared to $4,194,407 for the comparable prior period, a decrease of $2,279,856.
The decrease is primarily the result of a reduction in payroll costs of approximately $1,100,000 and a reduction in research and development
expenses of $450,000. Cost of sales decreased by $172,100 in line with the decrease in brand services revenue of $180,858. The expenses
in connection with the Company’s revenue sources are expected to consist primarily of charges for programming services and commission
payments made to influencers, users and other affiliates of the Kwik platform. We anticipate operating expenses to increase as revenues
increase.

Liquidity and capital resources

As of December 31, 2024, we had cash and cash
equivalents of $192,996 compared to $64,186 of cash at December 31, 2023. Based on currently available capital resources (cash), we estimate
that