Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 201

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 201
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 changes to current law or new legislation could adversely affect our business if the requirement of tax to be charged on items sold
on our marketplaces causes our marketplaces to be less attractive to current and prospective buyers, which could materially impact our
business and KwikClick sellers’ businesses. This legislation could also require us or our sellers to incur substantial costs in
order to comply, including costs associated with tax calculation, collection, remittance, and audit requirements, which could make selling
on our marketplaces less attractive. Additionally, the European Union, certain member states, and other countries have proposed or enacted
taxes on online advertising and marketplace service revenues. Our results of operations and cash flows could be adversely affected by
additional taxes of this nature imposed on us prospectively or retroactively or additional taxes or penalties resulting from the failure
to provide information about our buyers, sellers, and other third parties for tax reporting purposes to various authorities. In some cases,
we also may not have sufficient notice to enable us to build solutions and adopt processes to properly comply with new reporting or collection
obligations by the applicable effective date.

Our business is subject to a large number of U.S.
and non-U.S. laws, many of which are evolving.

We are subject to a variety of laws and regulations
in the United States and around the world, including those relating to traditional businesses, such as employment laws and taxation, and
laws and regulations focused on e-commerce and online marketplaces, such as online payments, privacy, anti-spam, data security and protection,
online platform liability, intellectual property, product liability, and consumer protection. In the event that we commence international
operations, we will also need to comply with various laws associated with doing business outside of the United States, including anti-money
laundering, sanctions, anti-corruption, and export control laws. In some cases, non-U.S. privacy, data security, consumer protection,
e-commerce, and other laws and regulations are more detailed or comprehensive than those in the United States and, in some countries,
are actively enforced.

These laws and regulations are continuously evolving,
and compliance is costly and can require changes to our business practices and significant management time and effort. In some jurisdictions,
these laws and regulations may be subject to attempts to apply such domestic rules world-wide against KwikClick or its subsidiaries, and
occasionally may subject us to inconsistent obligations across jurisdictions.

Additionally, it is not always clear how existing
laws apply to online marketplaces as many of these