Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 533

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 533
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 asset is less than the
carrying amount of the asset, an impairment loss is recorded equal to the excess of the asset’s carrying value over its fair value.
The Company did not recognize any impairment charges for the years ended December 31, 2024 and 2023.

Research and Development

Research and development costs primarily consist of
internal and external engineering staff wages, coding, and related on-going activities associated with upgrading and enhancing the Company’s
internally developed software platform. Research and development costs that do not meet the criteria for capitalization, including those
costs determined to be probable to result in additional functionality, are expensed as incurred. For the years ended December 31, 2024
and 2023 the Company did not capitalize any research and development costs.

Revenue Recognition

The Company determines the measurement of revenue
and the timing of revenue recognition utilizing the following core principles:

    ·
    Step 1:  Identify the contract with the customer

    ·
    Step 2:  Identify the performance obligations in the contract

    ·
    Step 3:  Determine the transaction price

    ·
    Step 4:  Allocate the transaction price to the performance obligations in the contract

    ·
    Step 5:  Recognize revenue when the Company satisfies a performance obligation

Revenue is measured based on the amount of consideration
that the Company expects to receive, reduced by estimates for return allowances, promotional discounts, and rebates. Revenue excludes
any amounts collected on behalf of third parties, including product costs for goods not owned and indirect taxes.

     F-7 

A description of the Company’s revenue generating
activities is as follows:

Third-Party Seller Services (Brand Services Revenue):

The Company offers programs that provide sellers a
software platform to sell their products. For some contracts the Company provides payment processing and order fulfillment facilitation.
The Company is not the seller of record in these transactions.

The Company generally determines stand-alone revenue
based on a percentage of the prices charged by the seller to deliver products sold. The commissions and any related fulfillment, shipping,
and transaction processing fees the Company earns from these arrangements are recognized when the services are rendered, which generally
occurs upon delivery of the related products to a third-party carrier or to the product purchaser. The Company does not incur material
costs in obtaining third party seller contracts.

Software Licensing (Hosting Arrangement):

The Company licenses the use of its internally developed