Algorithm: Max Counters

Question

I have the following problem:

You are given N counters, initially set to 0, and you have two possible operations on them:

• increase(X) − counter X is increa

Answer 1

public int[] counters(int N, int[] A)
{
    int[] count = new int[N];
    int maxCount = 0;
    int setAll = 0;

    for (int i = 0; i < A.Length; i++)
    {
        if (A[i] == N + 1)
        {
            setAll += maxCount;
            maxCount = 0;
            count = new int[N];
        }
        else
        {
            count[A[i] - 1] += 1;


            if (count[A[i] - 1] > maxCount)
            {
                maxCount = count[A[i] - 1];
            }
        }
    }

    for (int j = 0; j < count.Length; j++)
    {
        count[j] += setAll;
    }

    return count;
}

I think this is O(N+K), but codility say its O(N*K)? Would appreciate if anyone could explain which is correct...