Company: CCCP
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001477932-25-001313
Chunk: 91

Company: Crona Corp.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 3
Chunk 91
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 statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. Communication of critical audit matters does not alter in any way our opinion on the financial statements taken as a whole and we are not, by communicating the critical audit matters, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate. 

Convertible and promissory notes

During the Audit, we observed that the company has convertible and promissory notes which are both matured in the year 2024. The company is unable to fulfil the repayment obligation upon maturity hence, they extended repayment for Thirty-six months and Twelve months respectively. 

We identified this as a Critical Audit Matter because Management exercise significant judgement in negotiating and determining the suitable extension period for the repayment of the principal sum. Also, the risk of being exposed to company takeover by the lenders in the event of failure to repay at maturity or non-conversion of convertible note to shares.

The procedures performed includes:

 ·We review and evaluated Management plans and their intending business plans for business operations ·We reviewed the extension notice agreement and challenge the judgement made ·We reviewed the original and extended agreement for the notes. ·We raised confirmation to the note holders for confirmation of balances

 F-2Table of Contents

Going Concern Uncertainty – See also Going Concern Uncertainty explanatory paragraph above

As described further in Note 2 to the financial statements, the Company has suffered recurring losses from operations and does not have an established source of revenues sufficient to cover its operating costs. The ability of the Company to continue as a going concern is dependent on executing its business plan and ultimately to attain profitable operations. Accordingly, the Company has determined that these factors raise substantial doubt as to the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. 

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds through the capital markets. However, the Company has not concluded that these plans alleviate the substantial doubt related to its ability to continue as a going concern.

We determined the Company