Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 72

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 72
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 the timing of revenue recognition utilizing the following core principles:

    ·
    Step 1:  Identify the contract with the customer

    ·
    Step 2:  Identify the performance obligations in the contract

    ·
    Step 3:  Determine the transaction price

    ·
    Step 4:  Allocate the transaction price to the performance obligations in the contract

    ·
    Step 5:  Recognize revenue when the Company satisfies a performance obligation

Revenue is measured based on the amount of consideration
that the Company expects to receive, reduced by estimates for return allowances, promotional discounts, and rebates. Revenue excludes
any amounts collected on behalf of third parties, including product costs for goods not owned and indirect taxes.

     F-7 

A description of the Company’s revenue generating
activities is as follows:

Third-Party Seller Services (Brand Services Revenue):

The Company offers programs that provide sellers a
software platform to sell their products. For some contracts the Company provides payment processing and order fulfillment facilitation.
The Company is not the seller of record in these transactions.

The Company generally determines stand-alone revenue
based on a percentage of the prices charged by the seller to deliver products sold. The commissions and any related fulfillment, shipping,
and transaction processing fees the Company earns from these arrangements are recognized when the services are rendered, which generally
occurs upon delivery of the related products to a third-party carrier or to the product purchaser. The Company does not incur material
costs in obtaining third party seller contracts.

Software Licensing (Hosting Arrangement):

The Company licenses the use of its internally developed
software to third parties for a fixed fee over a specified term. Revenue under these arrangements are recognized ratably over the contract
term.

Custom Design Services

The Company provides custom brand programming services
in which its software platform gets integrated into a customer’s own website. These custom design services are performed over a
specified term for a fixed monthly fee. Revenue under these arrangements are recognized ratably over the contract term as the Company
performs design, monitoring, and on-going maintenance and update services.

Applicable sales commissions paid in connection with
contracts exceeding one year are capitalized and amortized over the contract term. During the years ended December 31, 2024 and 2023 the
Company did not incur material sales commissions.

Return Allowances

The fees earned by the Company are subject to returns
under similar terms as set by the