Company: KWIK
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001683168-25-003684
Chunk: 9

Company: KwikClick, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 9
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 31, 2025 and 2024,
the Company recognized total interest expense of $62,672 and $47,211, respectively.

NOTE 4. STOCKHOLDERS' DEFICIT

The Company did not issue any equity or equity-linked
instruments during the three months ended March 31, 2025. For the three months ended March 31, 2025 and 2024, the Company recognized stock-based
compensation totaling $109 and $406,772, respectively. All previously issued equity and equity-linked awards were fully vested as of March
31, 2025. As of March 31, 2025, the outstanding equity awards, consisting of 9,254,205 SARs and 1,602,470 warrants had a weighted average
remaining contractual term of approximately six years.

As of March 31, 2025, 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 5. OPERATING LEASE

On February 1, 2025, the Company entered into an operating
lease for its Bountiful, Utah corporate headquarters under a non-cancellable lease arrangement. The operating lease, which expires in
January 2028, calls for base monthly payments on an escalating basis ranging from $3,514 to $3,728. The Company estimated the lease
liability associated with the corporate headquarters operating lease using a discount rate of 10% per annum. The discount rate is based
on an estimate of the Company’s incremental borrowing rate for a term similar to the lease term on the commencement date of February
1, 2025.

The following table summarizes the Company’s
undiscounted cash payment obligations for its non-cancelable lease liabilities through the end of the expected term of the lease:

    Schedule of undiscounted cash payment obligations 

    2025 
    $31,628 
  
    2026 
     43,332 
  
    2027 
     3,620 
  
    Total undiscounted cash payments 
     78,580 
  
    Less imputed interest 
     (6,506)
  
    Present value of payments 
    $72,074 

The Company recognized lease expense associated
with its non-cancelable operating lease totaling $5,946 and $18,043 for the three months ended March 31, 2025 and 202