Company: ALDA
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001548123-25-000017
Chunk: 17

Company: ATLANTICA INC
Filing Date: 2025-03-18
Form: 10-K
Item: Item 8
Chunk 17
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, on its results of operation, financial position or cash flows. Based
on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements.

NOTE 2 - GOING CONCERN

The Company’s financial statements are prepared
using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization
of assets and liquidation of liabilities in the normal course of business. The Company has not established revenues sufficient to cover
its operation costs. In addition, the Company has no assets, a working capital deficit and accumulated losses. This raises substantial
doubt about its ability to continue as a going concern. The Company is seeking the acquisition of, or merger with, an existing operating
company. The financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts
and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company is relying on its principal shareholder
to pay all of its operating and other expenses until it can complete a reorganization or merger. While the Company's principal stockholder
currently pays the Company's limited operating and other expenses, on the Company's behalf, that principal stockholder is not obligated
to pay any of those expenses and the Company can provide no assurance that such stockholder will continue to pay any of those expenses
in the future. This stockholder paid a total of $48,754in expenses for the Company in the year ended December 31, 2024, increasing the
aggregate principal amount of a demand note held by this stockholder to $762,407, plus accrued interest of $1,126,269, as of December 31,
2024.

NOTE 3 - INCOME TAXES

Deferred taxes are provided on a liability method
whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred
tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts
of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities
are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Tax Cuts and Jobs Act was enacted on December
22, 2017, which reduced the U