Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 354

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 354
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Our principal executive office is located at 585 West
500 South Suite 200, Bountiful, Utah 84010. The space is suitable for the conduct of our business and will be for the foreseeable future.

 22 

ITEM 3.  LEGAL PROCEEDINGS

From time to time, we may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent
uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

On May 31, 2023, NAI Liquidation Trust, the successor
in interest to the defunct NewAge, Inc. by and through its Liquidation Trustee, Steven, Balasiano filed an adversary proceeding against
the Company in the Newage Chapter 11 bankruptcy case (Delaware Case #22-10819). The Company licensed some of its technology to NewAge
pursuant to a license agreement that started in September 2021 and terminated in late 2022. A prior adversarial action was brought by
NewAge in the same bankruptcy case but was never served and was dismissed on June 1, 2023. Like the prior dismissed action, NAI Liquidation
Trust contends that they are the rightful owner of KwikClick’s intellectual property. NAI Liquidation Trust brings several causes
of action related to that contention.

The Company believes that the code base and functionality
of its software platform differs materially from any intellectual property owned by NewAge. The Company intends to vigorously defend and
assert its intellectual property rights. In the event the Company does not prevail it may be required to impair substantially all of its
intangible assets with a carrying value of approximately $1.3 million at December 31, 2023 and may be forced to discontinue its on-going
fee-based sales platform. The litigation is in its early stages, an estimate of reasonably possible loss cannot be made at this time.
As such, there has been no further adjustment to the accompanying consolidated statements of financial position, results of operations,
or cash flows as of and for the twelve months ended December 31, 2024.

If KwikClick is unable to defend itself in the adversary
proceeding, it is unlikely that the Company will be able to continue as a going concern. Other than the reference above, to the knowledge
of management, no director or executive officer is party to any other action