Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 107

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 107
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 increase our costs, and limit our ability to attract and retain our sellers and buyers on cost-effective terms.
As a result, our business and results of operations could be adversely affected.

Enforcement of our marketplace policies may negatively
impact our brand, reputation, and/or our financial performance.

We intend to develop, maintain and enforce policies
that outline expectations for users while they engage with our services, whether as a seller, a buyer or a third-party. Additionally,
we intend to prohibit a range of items on our marketplaces, including (but not limited to): drugs, alcohol, tobacco, weapons, endangered
animal products, hazardous materials, recalled items, highly regulated items, items violating intellectual property rights of others,
illegal products, pornography, items from federally sanctioned jurisdictions, hateful content, and items that promote or glorify violence.

We intend to enforce these policies in order to uphold
the safety and integrity of our marketplaces, engender trust in the use of our services, and encourage positive connections among members
of the community. We intend to attempt to enforce these policies in a consistent and principled manner that is transparent and explicable
to stakeholders. However, policy enforcement is a combination of human and technological review. As a result, there could be errors, it
could be subject to different or inconsistent regional consensus or regulatory standards in different jurisdictions, or it could be perceived
to be arbitrary, unclear, or inconsistent. This could lead to negative public perception of our enforcement, distrust from members, or
lack of confidence in the use of our services and could negatively impact our brand reputation. In particular, certain enforcement decisions,
even those we deem necessary for the health and safety of our marketplaces, may be received negatively by stakeholders or the public.
We may choose to limit or prohibit the sale of items in our marketplaces based on our policies, even though we could benefit financially
from the sale of those items. From time to time, we may revise our policies in ways that we believe will enhance trust in our platform,
even though the changes may be perceived unfavorably.

REGULATORY, COMPLIANCE, AND LEGAL RISKS

Failure to deal effectively with constantly evolving
fraud or other illegal activity could harm our business.

We intend to adopt policies and procedures that are
intended to ensure compliance with law, including, for example anti-corruption, anti-money laundering, export control, and trade sanctions
requirements, and we have measures in place to detect and limit the occurrence of fraudulent and other illegal