Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 40

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 40
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 to both the broker-dealer and the registered representative, current quotations for the securities
and, if the broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealer’s presumed control
over the market. Finally, monthly statements must be sent disclosing recent price information for the penny stock held in the account
and information on the limited market in penny stocks. Consequently, the “penny stock” rules may restrict the ability of broker-dealers
to sell our Common Stock and may affect the ability of investors to sell their Common Stock in the secondary market.

In addition to the “penny stock” rules
promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) has adopted rules
that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers
must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and
other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities
will not be suitable for at least some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their
customers buy our Common Stock, which may limit the investors’ ability to buy and sell our stock.

Dividend Policy

Any future determination as to the declaration and
payment of dividends on shares of our Common Stock will be made at the discretion of our board of directors out of funds legally available
for such purpose. We are under no contractual obligations or restrictions to declare or pay dividends on our shares of Common Stock. In
addition, we currently have no plans to pay such dividends. Our board of directors currently intends to retain all earnings for use in
the business for the foreseeable future.

Equity Compensation Plan Information

We offer stock options, stock appreciation rights,
and stock awards to certain of our employees, including our executive officers, as the long-term incentive component of our compensation
program. We may grant equity awards to new hires upon their commencing employment with us. Our stock options allow employees to purchase
shares of our common stock at a price per share equal to the fair market value of our common stock on the date of grant and may or may
not be intended to qualify as “incentive stock options” for U.S. federal income tax purposes