Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 200

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 200
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 to our insurance policies (including
premium increases or the imposition of large deductible or co-insurance requirements), it could have an adverse effect on our business.
In addition, we cannot be sure that our existing insurance coverage, cyber coverage and coverage for errors and omissions will continue
to be available on acceptable terms or that our insurers will not deny coverage as to all or part of any future claim or loss. Our risks
are likely to increase as we continue to expand, grow our customer base, and process, store, and transmit increasingly large amounts of
proprietary and sensitive data.

 19 

Our business and our sellers and buyers may be
subject to evolving sales and other tax regimes in various jurisdictions, which may harm our business.

The application of indirect taxes, such as sales and
use tax, value-added tax, provincial tax, goods and services tax, business tax, withholding tax, digital service tax, gross receipt tax,
and tax information reporting obligations to businesses like ours and to our sellers and buyers is a complex and evolving issue. Significant
judgment is required to evaluate applicable tax obligations and as a result amounts recorded are estimates and are subject to adjustments.
In many cases, the ultimate tax determination is uncertain because it is not clear when and how new and existing statutes might apply
to our business or to our sellers’ businesses. In some cases, it may be difficult or impossible for us to validate information provided
to us by our sellers on which we must rely to ascertain any obligations that may apply to us related to our sellers’ businesses,
given the intricate nature of these regulations as they apply to particular products or services and that many of the products and services
sold in our marketplace are unique or handmade. If we are found to be deficient in how we have addressed our tax obligations, our business
could be adversely impacted.

Various jurisdictions (including the U.S. states and
E.U. member states) are seeking to, or have recently imposed additional reporting, record-keeping, indirect tax collection and remittance
obligations, or revenue-based taxes on businesses like ours that facilitate online commerce. If requirements like these become applicable
in additional jurisdictions, our business, collectively with KwikClick sellers’ businesses, could be harmed. For example, taxing
authorities in many U.S. states and in other countries have targeted e-commerce platforms as a means to calculate, collect, and remit
indirect taxes for transactions taking place over the internet, and have enacted laws and others are considering similar legislation.
Such