Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 497

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 497
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 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. The Company derives nearly all of its revenue from United
States of America (“US”) based customers with an immaterial amount coming from foreign based customers. Additionally, one
US-based customer provided all the custom design services revenue recognized during the year ended December 31, 2024. No other material
revenue was recognized from a single customer for the years ended December 31, 2024 and 2023.

In addition to the significant expense categories included within net
income presented on the Company's statements of operations and comprehensive loss, see below for disaggregated research and development
expenses:

    Schedule of research and development expenses by segment 

    2024 
    2023
  
    Platform coding and development 
    $314,515  
    $787,937 
  
    Other third-party engineering 
     47,561  
     16,910 
  
    Total research and development expense 
    $362,076  
    $804,847 

The measure of segment assets is reported on the
sheet as total consolidated assets. All the Company's long-lived assets are located in the United States. The Company does not have intra-entity
sales or transfers.

     F-16 

NOTE 11. SUBSEQUENT EVENTS

In January 2025, the Company entered into a new operating lease for its
corporate headquarters for a term of two years. The lease calls