Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 362

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 362
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 comparable prior period, a decrease of $2,279,856.
The decrease is primarily the result of a reduction in payroll costs of approximately $1,100,000 and a reduction in research and development
expenses of $450,000. Cost of sales decreased by $172,100 in line with the decrease in brand services revenue of $180,858. The expenses
in connection with the Company’s revenue sources are expected to consist primarily of charges for programming services and commission
payments made to influencers, users and other affiliates of the Kwik platform. We anticipate operating expenses to increase as revenues
increase.

Liquidity and capital resources

As of December 31, 2024, we had cash and cash
equivalents of $192,996 compared to $64,186 of cash at December 31, 2023. Based on currently available capital resources (cash), we estimate
that we would not be able to conduct our planned operations without immediate additional funding. Given the current rate at which we use
cash, we cannot survive unless we increase revenues or obtain additional equity or debt financing. While our majority shareholder has
committed to continue to provide funding for the foreseeable future, there is no assurance that we can increase revenues and/or obtain
additional necessary financing, much less on reasonable terms.

Our current liabilities as of December 31, 2024,
totaled $3,720,580, compared to $2,819,669 on December 31, 2023. If the Company doesn’t begin to generate sufficient
revenue or raise additional funds through financing, the Company may need to incur additional liabilities with certain related parties
to sustain the Company’s existence. Currently, there can be no assurance that the Company will be able to raise additional funds
necessary to further develop or operate its business or that such funding can be at commercially reasonable terms. The Company intends
to increasingly utilize stock or stock-based awards to compensate people and organizations who are or will be providing services or investment
to the Company.

We have historically been funded primarily from private
placements of stock and loans from Company affiliates and may continue to be so funded for the foreseeable future. However, there is no
assurance that we can obtain additional funds.

During the year ended 2024, Fred Cooper provided funding
of $861,272 under a promissory note originated in 2022. While we do not anticipate any default on the loan, in the event that we do default,
Mr. Cooper may take possession of our