Company: KWIK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008410
Chunk: 5

Company: KwikClick, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 5
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Subtopic 220-40): Disaggregation of
Income Statement Expenses. The ASU requires more detailed disclosures about the types of expenses in commonly presented expense captions
such as cost of sales, selling, general and administrative expenses and research and development expenses. This includes separate footnote
disclosure for expenses such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. Public
business entities are required to apply the guidance prospectively and may apply it retrospectively. The ASU's amendments are effective
for public business entities for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December
15, 2027. Public business entities are required to apply the guidance prospectively and may apply it retrospectively. The Company is currently
evaluating the effect of adopting this ASU on its condensed consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-04, Debt
- Debt with Conversion and Other Options, which clarifies the requirements for determining whether certain settlements of convertible
debt instruments should be accounted for as an induced conversion. The new guidance will first be effective in our annual disclosures
for the year ending December 31, 2026, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company
is currently evaluating the effect of adopting this ASU on its condensed consolidated financial statements and related disclosures.  

In May 2025, the FASB issued ASU 2025-04, Compensation—Stock
Compensation (ASC Topic 718) and Revenue from Contracts with Customers (ASC Topic 606), which clarifies the accounting for share-based
payments granted to customers, including classification of performance conditions, treatment of forfeitures, and application of the variable
consideration constraint. The guidance will first be effective in annual disclosures for the year ending December 31, 2027, and may be
applied prospectively or retrospectively. Early adoption is permitted. The Company has not granted any share-based payments to customers.
As such, the Company does not expect ASU 2025-04 to have a material impact on the condensed consolidated financial statements or
related disclosures.

In September 2025, the FASB issued ASU 2025-06,
Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for