Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 26

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 26
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owners could require us to pay substantial damages or refrain from permitting any further listing of the relevant items. These types of
claims could force us to modify our business practices, which could lower our revenue, increase our costs, or make our platform less user-friendly.
These claims, or legal and regulatory changes, could require the removal of non-infringing, lawful or completely unrelated content, which
could negatively impact our business and our ability to retain sellers. Moreover, public perception that unlicensed, counterfeit, harmful
or unlawful items are commonly offered by sellers in our marketplaces, even if factually incorrect, could result in negative publicity
and damage to our reputation.

 16 

We may be involved in litigation and regulatory
matters that are expensive and time consuming and that may require changes to our strategy, the features of our platform and/or how our
business operates.

In addition to intellectual property claims, we may
become involved in other litigation matters, including consumer protection, product liability, security and privacy, commercial, or shareholder
derivative lawsuits, either individually or, where available, on a class-action basis. We may become subject to heightened regulatory
scrutiny, inquiries, or investigations, including with respect to our sellers, vendors or third parties, relating to broad, industry-wide
concerns, such as antitrust, product liability, and privacy, that could lead to increased expenses or reputational damage. For example,
while we have stated on our platform that items offered by sellers on KwikClick, such as masks and hand sanitizers, are not medical-grade,
and that our sellers cannot make substantive medical or health claims, we may nevertheless be subject to claims based in whole or in part
on the actions of sellers in violation of that directive.

Under certain circumstances, we have contractual and
other legal obligations to indemnify and to incur legal expenses on behalf of current and former directors, officers, and underwriters.
Any lawsuit or regulatory action to which we are a party, with or without merit, may result in an unfavorable judgment. We also may decide
to settle lawsuits or regulatory actions, even if non-meritorious, on unfavorable terms. Any such negative outcome could result in payments
of substantial damages or fines, damage to our reputation, or adverse changes to our offerings or business practices. Any of these results
could adversely affect our business. In addition, defending claims is costly and can impose a significant burden on our management.

We will attempt to limit certain claims against us
under our