Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 359

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 359
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 to these differences include those discussed below and elsewhere in this Form
10-K.

INTRODUCTION

Management’s Discussion and Analysis (“MD&A”) of
our financial condition and results of operations is provided as a supplement to the accompanying financial statements and related notes
to help provide an understanding of our financial condition, the changes in our financial condition and the results of operations.

Overview

KWIKClick, Inc., a Delaware corporation. 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, pay nothing to use the platform, which connects them to promoters, influencers,
and customers, all referred to as “affiliates”. The Brands establish an incentive budget, which is an amount discounted from
their regular retail pricing, which is used by KWIKClick to entice users to promote a product or refer others to purchase a product. With
no conditions such as follower size, invitation, or negotiation, any consumers or influencers who open a KWIKClick account and become
users or affiliates, may receive a cash-back reward, paid from the Brand’s incentive budget administered by KWIKClick, for all purchases
they make, and can immediately share their own automatically encoded link, associated with the product they purchased, to other consumers.
Shared links that lead to a purchase and/or repurchases result in commission payments which are electronically paid to the referrer. When
the Brand is paid for the consumer purchases through the KWIKClick platform, the Brand’s incentive budget is paid 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.  

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The essential driver of sales activity on the platform
by sellers and buyers is the free-use mobile application which has the potential to turn all social media activity into a product solicitation
on behalf of sellers in an unobtrusive manner. Furthermore, the software automates person-to-person requests for recommendations
by simply sharing a link to any mobile device. Much like a “pin” can be sent to share locations, the encoded link provides
to the requestor a way to instantly purchase the goods or services of interest. Traditionally on other platforms, and based on the reach
of a contracted influencer, compensation may include only a single commission paid for an initial purchase attributable to the influ