Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 312

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 312
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 revenue for these integrations which is noted as Custom Design Services in the Company’s Statement of Operations. Brand
Services revenues for the current year decreased $180,858 from $288,229 in the prior year to $107,371 this year due to a decrease in small
retailer and a reduced number of influencer campaigns. This reduction was offset by Custom Design Services which will likely increase
in coming quarters as noted above. With the recent enrollment of some significant retail brands on the KWIK platform, and additional custom
design projects under review, we believe the Company will be able to generate increasing revenues during fiscal 2025 with an expectation
for positive cash flows during fiscal 2026.

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Operating Expenses

Operating expenses for the fiscal year ended December
31, 2024 were $1,914,551 as compared to $4,194,407 for the 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