Company: KWIK
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001683168-25-003684
Chunk: 38

Company: KwikClick, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 38
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 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 $432,821 decrease resulted from non-recurring stock-based compensation of $406,772 recognized in the three months ended
March 31, 2024. Additionally, we have reduced our research and development costs as we have been able to focus on implementing and operating
our software platform.

In the event we are able to
raise additional capital, we would anticipate our total operating expenses will trend upward as we add additional employees and consultants
to work on the execution of our business plan, which includes activities such as design and coding of our website and app, vendor acquisition,
cybersecurity, and user acquisition. We anticipate that much of this work will be done by outside consultants. 

Other Income (Expense)

During the three months ended
March 31, 2025, the Company negotiated settlements with previous brands surrounding previously accrued commissions payable on their behalf
for no additional consideration resulting in a gain on settlement totaling $147,527 ($30,000 for similarly settled vendor obligations
for the three months ended March 31, 2024). We do