Company: KWIK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008410
Chunk: 15

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 15
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 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.

Operating Expenses

During
the nine months ended September 30, 2025 and 2024, we incurred total operating expenses of $995,840 and $1,322,536 respectively. The $326,696
decrease primarily resulted from non-recurring stock-based compensation of $407,858 recognized in the nine months ended September 30,
2024 and a reduction in research and development of $176,310, offset by increases in management and payroll and general and administrative
to support the growth of the business.

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, customer acquisition,
cybersecurity, and user acquisition. We anticipate that much of this work will be done by outside consultants.

Other Income (Expense)

During the nine months ended
September 30, 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 nine months ended September 30, 2024). We do not expect these settlements to occur on a frequent basis in the future.

Other income was offset by
an increase in related party interest to $194,844 from $163,201. 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 to fund expenses required for an expansion of our customer base.

Liquidity and capital resources

At
September 30, 2025, we had a working capital deficit of $3,821,083. Approximately 81% of our liabilities as of September 30, 2025 are
due to our founder, majority shareholder, and CEO Mr. Fred Cooper under a note payable arrangement carrying an interest rate of 10% per
annum. Mr. Cooper has informally agreed to defer repayment of