Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 13

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 13
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 systems could, in the event of a cyber-incident, harm our growth prospects, our business, and our reputation
for maintaining trusted marketplaces.

The costs and effort to respond to a security breach
and/or to mitigate any security vulnerabilities that may be identified could be significant, our efforts to address these problems may
not be successful, and these problems could result in unexpected interruptions, delays, cessation of service, negative publicity, and
other harm to our business and our competitive position. We could be required to fundamentally change our business activities and practices
in response to a security breach or related regulatory actions or litigation, which could have an adverse effect on our business.

Cyber-attacks aimed at disrupting our and our third-party
service providers’ services have occurred regularly in the past, and we expect they will continue to occur in the future. If we
or our third-party service providers experience security breaches that result in marketplace performance or availability problems or the
loss, compromise, or unauthorized disclosure of personal data or other sensitive information, or if we fail to respond appropriately to
any security breaches that we may experience, people may become unwilling to provide us the information necessary to set up an account
with us. Existing sellers and buyers may stop listing new items for sale, decrease their purchases, or close their accounts altogether.
We could also face damage to our reputation, potential liability, regulatory investigations in multiple jurisdictions, and costly remediation
efforts and litigation, which may not be adequately covered by insurance. Any of these results could harm our growth prospects, our business,
and our reputation for maintaining trusted marketplaces.

We must rely on the security practices of third-party
service providers, which may be outside of our direct control. Additionally, some of our likely third-party service providers, such as
identity verification and payment processing providers, regularly have access to payment card information and other confidential and sensitive
member data. We may have contractual and regulatory obligations to supervise the security and privacy practices of our third-party service
providers. Despite our best efforts, if these third parties fail to adhere to adequate security practices or experience a cyber-attack
such as a breach of their networks, our members’ data may be improperly accessed, used, or disclosed. More generally, our third-party
service providers may not have adequate security and privacy controls, may not properly exercise their compliance, regulatory or notification
requirements, including as to personal data, or may not have the resources to properly respond to an incident. Many of our service providers
have moved to a