Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 535

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 535
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; quoted prices in markets that are not active; or other inputs that
are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported
by little or no market activity and that are significant to the fair value of the assets or liabilities.

Whenever possible, the Company is required to use
observable market inputs (Level 1 – quoted market prices) when measuring fair value. The Company performed fair value measurements
of its common stock and stock options, using unobservable inputs within Level 3 of the hierarchy.

The fair value of cash and equivalents, accounts payable,
accrued liabilities, and shareholder loans approximates the carrying amount of these financial instruments due to their short-term maturity.

Advertising

The Company expenses advertising costs as incurred.
Advertising expense was $6,418 and $163,798 for the years ended December 31, 2024 and 2023, respectively.

Use of Estimates

The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.

Lease Accounting

The Company occupies office space under a lease arrangement.
The property is leased under a non-cancelable agreement that contains a lease term in excess of twelve months on the date of entry as
well as renewal options for additional periods. The agreement, which has been classified as an operating lease, provides for base minimum
rental payments, as well non-lease components including insurance, taxes, maintenance, and other common area costs.

At the lease commencement date, the Company recognizes
a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of twelve months or less. The
right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of
the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount
of the lease liability, plus any prepayments to the lessor and initial direct costs such as brokerage commissions, less any lease incentives
received. All right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets.
The lease liability is initially measured at the present value of the lease payments, discounted