Company: KWIK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008410
Chunk: 10

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 10
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 at September 30, 2025 and may be forced to discontinue its on-going
fee-based sales platform. The litigation has been delayed and an estimate of a reasonably possible loss cannot be made at this time. As
such, there has been no further adjustment to the accompanying condensed consolidated financial position, results of operations, or cash
flows as of and for the three and nine months ended September 30, 2025.

NOTE 7. SUBSEQUENT EVENTS

The Company has evaluated subsequent events through
the date the condensed consolidated financial statements were issued and has determined that there are no material events that need to
be disclosed, except as follows:

Subsequent to September 30, 2025, the Company
repaid $50,000 in principal of the outstanding note payable to Mr. Fred W. Cooper, Chairman and CEO. The principal balance of working
capital advances outstanding through November 14, 2025 totaled $2,728,677. These advances bear interest of 10% per annum and are due on
demand. Mr. Cooper has informally agreed to defer repayment of these loans until the Company has achieved a more stable liquidity position,
however, he is not legally obligated to continue to do so.

NOTE 8. 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 or loss. 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 the majority of the custom design services revenue recognized during the three and nine months ended September
30, 2025. No other material revenue was recognized from a single customer for the three months and nine months ended September 30, 2025
and 2024.

     13 

In addition to the significant expense categories
included within net income or loss presented on the Company's condensed consolidated statements of operations, the following is disaggregated
research and development expenses for the three months ended September 30: