Company: KWIK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006139
Chunk: 5

Company: KwikClick, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 5
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 evaluating the effect of adopting this ASU on its condensed consolidated financial statements and related disclosures.  

In May 2025, the FASB issued ASU
2025-04, Compensation—Stock Compensation (ASC Topic 718) and Revenue from Contracts with Customers (ASC Topic
606), which clarifies the accounting for share-based payments granted to customers, including classification of performance
conditions, treatment of forfeitures, and application of the variable consideration constraint. The guidance will first be effective
in annual disclosures for the year ending December 31, 2027, and may be applied prospectively or retrospectively. Early adoption is
permitted. The Company has not granted any share-based payments to customers. As such, the Company does not expect ASU 2025-04
to have a material impact on the condensed  consolidated financial statements or related disclosures.

     10 

NOTE 3. RELATED PARTY TRANSACTIONS

The Company’s related party loans consist
of the following:

    Schedule of related party loans 

    June 30, 2025  
    December 31, 2024 
  
    Related party note payable with a nominal interest rate of 10% per annum due on demand 
    $2,633,677  
    $2,541,677 
  
    Accrued interest 
     428,681  
     301,305 
  
    Total related party loans 
    $3,062,358  
    $2,842,982 

During
the three and six months ended June 30, 2025, the Company recognized interest expense of $64,704 and $127,376, respectively. During the
three and six months ended June 30, 2024, the Company recognized interest expense of $54,532 and $100,923, respectively.

NOTE 4. STOCKHOLDERS' DEFICIT

Stock Based Compensation

Stock Appreciation Rights

During
the three and six months ended June 30, 2025, the Company issued 25,891 stock
appreciation rights (“SARs”), of which 24,641 were
fully vested to settle compensation due to an employee totaling $60,000.
As of June 30, 2025, 255,999 SARs
were fully vested, and the Company expects to recognize $1,156 of
compensation expense over the next three months associated with the vesting