Company: KWIK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008410
Chunk: 8

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 8
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 expected volatilities of approximately 87.3% and 87.5%; contractual
terms of 2.9 and 7.0 years, and risk-free interest rates of 4.31% and 3.93%.

A summary of the common stock warrant activity
is as follows:

    Schedule of warrant activity

    Weighted

    Average

    Weighted

    Remaining

    Average

    Contractual

    Warrants

    Exercise Price

    Term (Years)

    Outstanding at January 1, 2025

    40,062

    $
    1.52

    6.6

    Granted

    31,250

    2.84

    Exercised

    (1,312
    )

    –

    Forfeited, cancelled or expired

    (1,250
    )

    –

    Outstanding at September 30, 2025

    68,750

    $
    2.16

    6.11

    Exercisable at September 30 2025

    68,750

    $
    2.16

    6.11

For the three months ended September 30, 2025
and 2024, the Company recognized stock-based compensation totaling $73,729 and $562, respectively. For the nine months ended September
30, 2025 and 2024, the Company recognized stock-based compensation totaling $81,787 and $408,420, respectively.

As of September 30, 2025, the Company has committed
375,765 shares of stock for the fulfillment for all of its outstanding equity and equity-linked awards.

NOTE 5. OPERATING LEASE

On February 1, 2025, the Company entered into
an operating lease for its Bountiful, Utah corporate headquarters under a non-cancellable lease arrangement. The operating lease, which
expires in January 2027, calls for base monthly payments on an escalating basis ranging from $3,514 to $3,728. The Company estimated the
lease liability associated with the corporate headquarters operating lease using a discount rate of 10% per annum. The discount rate is
based on an estimate of the Company’s incremental borrowing rate for a term similar to the lease term on the commencement date of
February 1, 2025.

The following table summarizes the Company’s
future undiscounted cash payment obligations for each calendar year as of