Company: KWIK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008410
Chunk: 9

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 9
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 September 30, 2025, for its non-cancelable lease liabilities
through the end of the expected term of the lease:

    Schedule of future lease obligations 

    2025 
    $10,542 
  
    2026 
     43,332 
  
    2027 
     3,620 
  
    Total undiscounted cash payments 
     57,494 
  
    Less imputed interest 
     (3,450)
  
    Present value of payments 
    $54,044 

     12 

For the three months ended September 30, 2025
and 2024, the Company recognized lease expense associated with its non-cancelable operating lease totaling $12,468 and $18,033, respectively,
and is included in general and administrative expenses. For the nine months ended September 30, 2025 and 2024, the Company recognized
lease expense associated with its non-cancelable operating lease totaling $31,115 and $54,256, respectively, and is included in general
and administrative expenses. The remaining term of the Company’s operating lease as of September 30, 2025, was 16 months.

NOTE 6. COMMITMENTS AND CONTINGENCIES

On May 31, 2023, NAI Liquidation Trust, the successor
in interest to the defunct NewAge, Inc. (NewAge) by and through its Liquidation Trustee, Steven Balasiano, filed an adversary proceeding
against the Company in the NewAge Chapter 11 bankruptcy case (Delaware Case #22-10819). The Company licensed some of its technology to
NewAge pursuant to a license agreement that started in September 2021 and terminated in late 2022. A prior adversarial action was brought
by NewAge in the same bankruptcy case but was never served and was dismissed on June 1, 2023. Like the prior dismissed action, NAI Liquidation
Trust contends that they are the rightful owner of KwikClick’s intellectual property. NAI Liquidation Trust brings several causes
of action related to that contention.

The Company believes that the code base and functionality
of its software platform differs materially from any intellectual property owned by NewAge. The Company intends to vigorously defend and
assert its intellectual property rights. In the event the Company does not prevail it may be required to impair substantially all of its
intangible assets with a carrying value of approximately $1.2 million