Company: NTCS
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001683168-25-004268
Chunk: 54

Company: Natics Corp.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1B
Chunk 54
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 on a timely basis.

Our size has prevented us from being able to employ
sufficient resources to enable us to have an adequate level of supervision and segregation of duties within our system of internal control.
Therefore, while there are some compensating controls in place, it is difficult to ensure effective segregation of accounting and financial
reporting duties. Management reported the following material weaknesses:

    ·
    Lack of segregation of duties in certain accounting and financial reporting processes including the initiation, processing, recording and approval of disbursements;

    ·
    Our corporate governance responsibilities are performed by the Board of Directors, none of whom are independent under applicable standards; we do not have an audit committee or compensation committee. Our Board of Directors acts primarily by written consent without meetings which results in several of our corporate governance functions not being performed concurrent (or timely) with the underlying transactions, including evaluation of the application of accounting principles and disclosures.

    ·
    Certain reports that we prepare, and accounting and reporting conclusions reached in connection with the financial statement preparation process are not subjected to a formal review process that includes multiple levels of review and are not submitted timely to the Board of Directors for review or approval; and

While we strive to segregate duties as much as
practicable, there is an insufficient volume of transactions at this point in time to justify additional full-time staff. We believe that
this is typical in many development stage companies. We may not be able to fully remediate the material weakness until we commence operations
at which time, we would expect to hire more staff. We will continue to monitor and assess the costs and benefits of additional staffing.

This Annual Report does not include an attestation
report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not
subject to attestation by our registered public accounting firm pursuant to the SEC rules that permit us to provide only management’s
report in this Annual Report.

 6 

Changes in Internal Control Over Financial
Reporting

There were no changes in our internal control
over financial reporting that occurred during the quarter ended April 30, 2025, that has materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

During the year ended April 30, 2025, no director
or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,”
as each term