Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 108

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 108
---
 activity in our marketplaces,
however, those policies, procedures, and measures may not always be effective. Further, the measures that we use to detect and limit the
occurrence of fraudulent and other illegal activity must be dynamic and require significant investment and resources, particularly as
our marketplaces increase in public visibility and size. Bad actors constantly apply continually evolving technologies and ways to commit
fraud and other illegal activity, and regulations requiring marketplaces to detect and limit these activities are increasing. Our measures
may not always keep up with these changes. If we fail to limit the impact of illegal activity in our marketplaces, we could be subject
to penalties, fines, other enforcement actions and/or significant expenses and our business, reputation, financial performance, and growth
could be adversely affected.

We rely upon third-party service providers to perform
certain compliance services. If we or our service providers do not perform adequately, our compliance tools may not be effective, which
could increase our expenses, lead to potential legal liability, and negatively impact our business.

 15 

Our brand may be harmed if third parties or members
of our community use or attempt to use KwikClick as part of their illegal or unethical business practices.

Our emphasis on our mission and guiding principles
makes our reputation particularly sensitive to allegations of illegal or unethical business practices by our sellers or other members
of our community. We want our seller policies to promote legal and ethical business practices. KwikClick expects sellers to work only
with manufacturers who comply with all applicable laws, who do not use child or involuntary labor, who do not discriminate, and who promote
sustainability and humane working conditions. Although we seek to influence, we do not directly control our sellers, vendors, or other
members of our community or their business practices and cannot ensure that they comply with our policies. If members of our community
engage in illegal or unethical business practices, or are perceived to do so, we may receive negative publicity and our reputation may
be harmed.

We may be subject to claims that items listed by
sellers in our marketplace are counterfeit, infringing, illegal, harmful or otherwise violate our policies.

Items listed in our marketplaces may be accused of
infringing upon third-party copyrights, trademarks, patents, or other intellectual property rights. We have intellectual property complaint
and take-down procedures in place to address these communications, and we believe such procedures are important to promote confidence
in our marketplaces, along with both proactive and reactive anti-counterfeiting measures