Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 447

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 447
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ARs”), of which 2,500,000 were issued to third party
investors for cash to purchase shares of common stock based on the fair market value in excess of the base price on the date of exercise
for a period of seven years.

The Company estimated the fair value of the SARs on
the grant date using a Black-Scholes options pricing model using the quoted market price on the grant date; exercise prices ranging from
$0.07 to $0.44 per share; expected volatility of approximately 89.3%; the contractual term of seven years; and a risk-free interest rate
of 4.25%.

A summary of the stock appreciation rights activity
is as follows:

    Schedule of  stock appreciation rights activity 

    Stock  Appreciation Rights  
    Weighted Average Exercise Price  
    Weighted Average Remaining Contractual Term (Years) 
  
    Outstanding at January 1, 2024 
     5,296,099  
    $0.41  
     – 
  
    Granted 
     3,981,538  
     0.16  

    Exercised 
     –  
     –  

    Forfeited, cancelled or expired 
     (23,432) 
     0.50  

    Outstanding at December 31, 2024 
     9,254,205  
    $0.33  
     6.21 
  
    Exercisable at December 31, 2024 
     9,253,934  
    $0.30  
     6.21 

The grant date fair value of the stock appreciation
rights issued for compensation during the twelve months ended December 31, 2024 totaled $106,939.

During the years ended December 31, 2024 and 2023,
the Company recognized total expense associated with the SARs of $512,425 and $1,152,010, respectively. As of December 31, 2024 the Company
expects to recognize $109 of compensation expense over the next nine months associated with the vesting of its currently outstanding stock
appreciation rights.

As of December 31, 2024, the Company has committed
10,856,675 shares of stock for the fulfillment of the all of its outstanding equity and equity-linked awards.

NOTE 7. RELATED PARTY TRANSACTIONS

The Company’s related party