Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 4

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 4
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 to be an equity security that has a
market or exercise price of less than $5.00 per share, subject to specific exemptions. The market price of our common
stock may be less than $5.00 per share and, therefore, may be designated as a “penny stock” according to SEC rules. This
designation requires any broker or dealer selling these securities to disclose certain information concerning the transaction, to
obtain a written agreement from the purchaser, and to determine that the purchaser is reasonably suitable to purchase the
securities. These rules may restrict the ability of brokers or dealers to sell our common stock and may adversely affect the ability
of investors to sell our common stock and may materially adversely affect our business and the trading price of our common stock.
For example, many brokers refuse to clear or trade in penny stocks. As part of a settlement with the SEC in September 2019, COR
Clearing, a large clearing firm in the U.S., agreed to exit a key penny stock clearing business by significantly limiting the sale
of penny stocks deposited at COR.

 3 

Our common stock lacks institutional or analyst
support

Our Company lacks institutional support. In addition,
investment banks with research capabilities do not currently follow our common stock. This lack of institutional or analyst support lessens
the trading volume and general market interest in our common stock and may adversely affect an investor’s ability to trade a significant
amount of our common stock. This lack of institutional or analyst support could materially adversely affect our Company and the trading
price of our common stock.

The public float of our common stock is small

The public float of our common stock is small, which
may limit the ability of some institutions to invest in our common stock. This lack of liquidity could materially adversely affect our
Company and the trading price of our common stock.

The trading price of our common stock may be volatile
and could drop quickly and unexpectedly

The stocks of micro-cap and small-cap companies have
experienced substantial volatility in the past, often based on factors unrelated to the financial performance or prospects of the companies
involved. These factors include macro-economic developments in North America and globally, and market perceptions of the attractiveness
of particular industries. This volatility could materially adversely affect our Company by making it more difficult to raise capital or
complete acquisitions. In addition, securities class-action litigation often has been brought against companies following periods of volatility
in the market price of their securities. Our Company may in the future be the target of similar litigation