Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 96

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 96
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or employees of our third-party service providers. In addition, if our employees or employees of our third-party service providers fail
to comply with our internal security policies and practices, member or employee data may be improperly accessed, used, or disclosed.

Our security and access controls for our systems may
not be adequate, which may heighten the risk of a cyber-attack or security breach. Among other things, our applications, systems, networks,
software and physical facilities could have material vulnerabilities, be breached or the personal or confidential information that we
store could be otherwise compromised due to employee error or malfeasance, if, for example, third parties attempt to fraudulently induce
our employees or our members to disclose information or user names and/or passwords, or otherwise compromise the security of our networks,
systems and/or physical facilities. Additionally, employees or service providers may inadvertently misconfigure resources or misdirect
certain communications in manners that may lead to security incidents on which we must then expend effort and expenses to correct.

A successful cyber-attack could occur and persist
for an extended period of time before being detected. Because the techniques used by hackers change frequently, we may be unable to anticipate
these techniques or implement adequate preventive measures. In addition, because any investigation of a cybersecurity incident would be
inherently unpredictable, the extent of a particular cybersecurity incident and the path of investigating the incident may not be immediately
clear. It may take a significant amount of time before an investigation can be completed and full and reliable information about the incident
is known. While an investigation is ongoing, we may not necessarily know the extent of the harm or how best to remediate it, certain errors
or actions could be repeated or compounded before they are discovered and remediated, and communication to the public, regulators, members
of our community, and other stakeholders may be inaccurate, any or all of which could further increase the costs and consequences of a
cybersecurity incident. Applicable rules regarding how to respond, notice to users and reporting to regulators vary by jurisdiction, and
may subject KwikClick to additional liability and reputational harm.

 8 

Our production systems are expected to increasingly
rely on internal technology, along with cloud services and software provided by our third-party service providers. In the event of a cyber-incident,
even partial unavailability of our production systems could impair our ability to serve our customers, manage transactions, or operate
our marketplaces. We intend to implement disaster recovery mechanisms, including systems to back up