Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 484

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 484
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 accompanying consolidated financial statements
include the accounts of the Company and its wholly owned subsidiary KwikClick LLC. Intercompany transactions and balances have been eliminated
in consolidation.

Segments 

The Company has one reportable operating segment.

Cash and Cash Equivalents

Cash equivalents include all highly liquid investments
with an original maturity of three months or less when purchased. The Company did not have cash equivalents at December 31, 2024 or 2023.

Net Loss Per Share

The Company presents both basic and diluted earnings
per share (EPS) on the face of the statements of operations. Basic EPS is computed by dividing net loss by the weighted average number
of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period
under the treasury stock method using the if-converted method. Due to the incurrence of net losses, the Company did not include outstanding
instruments convertible into common stock that would be anti-dilutive. As of December 31, 2024 and 2023 the Company had 1,602,470 and
102,470 warrants respectively; and 9,253,934 and 1,758,000 stock appreciation rights exercisable into shares of common stock, respectively,
that were potentially dilutive.

     F-6 

KWIKCLICK, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2024 and 2023

Property and Equipment

Property and equipment are recorded at cost. Expenditures
for major betterments and additions are charges to the asset accounts, while replacements, maintenance and repairs which do not improve
or extend the lives of the respective assets are charged to expense as incurred. Depreciation of property and equipment is computed by
the straight-line method using various rates based generally on the useful lives of the assets, which range from five to seven years.

Intellectual Property

Intellectual property includes certain external legal
costs for the application, maintenance and extension of the useful life of patents. Intellectual property costs are capitalized, based
on management’s estimates, when they are deemed to be recoverable. Other intellectual property-related costs are expensed as incurred.
Capitalized intellectual property costs are amortized utilizing the straight-line method over their remaining economic useful lives of
up to 20 years. Amortization of such costs begins when the patent is issued.

Impairment of Long-Lived Tangible Assets and Intellectual
Property

The Company reviews long