Company: ALDA
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001548123-25-000035
Chunk: 7

Company: ATLANTICA INC
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 the quarter ended March 31, 2025; however, the management fees accrue and are not initially payable to Richland until
the Company’s completion of its initial acquisition or financing that occurs subsequent to the date of the agreement. Accordingly,
we accrued management fees payable to Richland totaling$ 30,000during the quarters ended March 31, 2025 and 2024, which fees, along with
any other management fees that may subsequently accrue, are due and payable to Richland if and when such an acquisition or financing is
completed by the Company.

The Management Services Agreement also provides for
the Company to pay a separate, cash transaction-based fee for investment banking services that Richland provides in connection with future
acquisitions and financing transactions that may be completed by the Company. This transaction-based fee equals1% of the transaction
value of any acquisitions or other business combinations or debt or equity financings completed by the Company subsequent to the date
of the agreement; however, the amount of the initial transaction-based fee payable to Richland is reduced by the amount of all accrued
but unpaid management fees earned by Richland under the agreement. To date, no transaction-based fee has accrued or is otherwise payable
by the Company to Richland.

Under the Management Services Agreement, the Company
also reimburses Richland for all reasonable out-of-pocket expenses incurred by Richland in providing its services to the Company and indemnifies
Richland and its agents and affiliates for any liabilities that they may incur in connection with providing these services. This expense
reimbursement is payable on April 15, July 15, October 15 and January 15 of each year, with respect to expenses incurred by Richland during
the immediately preceding calendar quarter. To date, no such expenses have been incurred by Richland and, accordingly, no expenses have
been reimbursed by the Company to Richland and no expense reimbursement obligation has been accrued or is otherwise payable by the Company.

A copy of the Management Services Agreement was filed
as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2008; see Part IV, Item 15 of that Report. A copy of the
First Amendment to the Management Services Agreement, which extends the term to April 29, 2029, was filed as an exhibit to our June 30,
2018 Quarterly Report, see Part II, Item 6 of this Report.

ATLANTICA, INC.

Notes to Condensed