Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 112

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 112
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 share personal information and other proprietary or
confidential information. Compliance with these changing regulations have necessitated some specific product changes for our non-U.S.
activities and required additional compliance obligations for us and for our relationships with sellers, vendors, and other third parties.

 17 

In the European Union, the GDPR contains strict requirements
for processing the personally identifiable information of individuals residing in the European Economic Area (“EEA”), Switzerland
and (in a form frozen as of December 31, 2020 and as further separately domestically amended), the United Kingdom. The GDPR seeks to harmonize
the data protection regulations throughout these jurisdictions. The regulation contains numerous requirements and changes from previous
E.U. law, including more robust obligations on data processors, greater rights for data subjects (requiring potentially significant changes
to both our technology and operations), security and accountability obligations, and significantly heavier documentation and record-keeping
requirements for data protection compliance programs. Specifically, the GDPR introduced numerous privacy-related changes for companies
operating in the European Union, including greater control over personal data by data subjects (e.g., the “right to be forgotten”),
increased data portability, access, and redress rights for E.U. consumers, data breach notification requirements, increased rules for
online and email marketing, compliance requirements related to our sellers, vendors and third parties, and stronger regulatory enforcement
regimes. The GDPR is subject to changing interpretations due to decisions of data protection authorities, courts, and related legislative
efforts both E.U.-wide and in particular jurisdictions. The GDPR requirements apply to some third-party transactions (such as commercial
contracts with partners and vendors) and to transfers of information between us and our subsidiaries, including user and employee information.
GDPR requirements may also apply, depending on interpretation of its reach, to some users in our worldwide community of sellers. We may
experience difficulty retaining or obtaining new E.U. sellers, or current and new sellers may limit their selling into the European Union,
due to the legal requirements, compliance cost, potential risk exposure, and uncertainty for them in respect of their own compliance obligations
with respect to GDPR. In addition, although our sellers are independent businesses, it is possible that a privacy authority could deem
us jointly and severally liable for actions of our sellers or vendors, which would increase our potential liability exposure and costs
of compliance, which could negatively impact our business. We could face potential liability, regulatory investigation, and costly litigation,
which may not be adequately covered by insurance.

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