Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 83

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 83
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in interest to the defunct NewAge, Inc. 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 $1.3 million at December 31, 2024 and may be forced to discontinue its on-going
fee-based sales platform. The litigation is in its early stages, an estimate of reasonably possible loss cannot be made at this time.
As such, there has been no further adjustment to the accompanying consolidated statements of financial position, results of operations,
or cash flows as of and for the twelve months ended December 31, 2024.

NOTE 9. OPERATING LEASE

As of December 31, 2024, the Company was released
from its previous Bountiful, Utah corporate headquarters lease without penalty.

The Company recognized lease expense associated
with its operating lease totaling $72,316
and $72,254
for the years ended December 31, 2024 and 2023, respectively.

NOTE 10. SEGMENT INFORMATION

The Company has one reportable and operating segment
which provides customers the platform to sell their products or services. The accounting policies of this operating segment are the same
as those described in the summary of significant accounting policies. The Company’s chief operating decision maker (“CODM”)
is its President and CEO.

The CODM’s measure of segment profit or
loss is net income. For purposes of evaluating performance and allocating resources, the CODM reviews the financial information and evaluates
net income against comparable prior periods and the Company’s forecast