Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 249

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 249
---
  
    $0.01  
     – 
  
    Warrants granted 
     1,500,000  
     0.04  

    Exercised 
     –  
     –  

    Forfeited, cancelled or expired 
     –  
     –  

    Outstanding at December 31, 2024 
     1,602,470  
    $0.04  
     6.6 
  
    Exercisable at December 31, 2024 
     1,602,470  
    $0.04  
     6.6 

During the year ended December 31, 2024 the Company recognized $49,115
of stock-based compensation based on the estimated fair value ($0.03 per share) of the fully vested warrants granted.

During the year ended December 31, 2023 the Company
issued 102,470 fully vested warrants to purchase shares of common stock at an exercise price of $0.01 per share for a term of two years.
Included in the issuance of the warrants were 41,801 warrants that a grantee elected to receive in lieu of common stock not yet issued
in accordance with the terms of a prior agreement. The Company had previously recognized stock-based compensation expense associated with
the unissued common stock owed to the grantee of $104,502 during the year ended December 31, 2023.

The grant date fair value of the warrants not previously
recognized totaled $26,694 and the associated expense for the fully vested awards were recognized during the twelve months ended December
31, 2023.

     F-14 

Stock Appreciation Rights

During the year ended December 31, 2024 the Company
issued 3,981,538 fully vested stock appreciation rights (“SARs”), 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