Company: NTCS
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001683168-25-004268
Chunk: 345

Company: Natics Corp.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 11
Chunk 345
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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.

     F-8 

Fair Value of Financial Instruments

FASB ASC Topic 820, “Fair Value Measurement,”
defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standards
apply to recurring and nonrecurring fair value measurements of financial and non-financial assets and liabilities. The Company determines
the fair values of its assets and liabilities based on a fair value hierarchy that includes three levels of inputs that may be used to
measure fair value.

The three levels are defined as follows:

    Level 1: 
    defined as observable inputs such as quoted prices in active markets;
  
    Level 2: 
    defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
  
    Level 3: 
    defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Due to its short-term nature, the carrying value
of cash, director loans and issuance of common stock approximated fair value at April 30, 2025.

Income Taxes

The Company is a C Corporation under the Internal
Revenue Code and a similar section of the state code.

All income tax amounts reflect the use of the
liability method under accounting for income taxes. Income taxes are provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due plus deferred taxes arising primarily from differences between financial and tax reporting
purposes. Current year expense represents the amount of income taxes paid, payable or refundable for the period.

Deferred income taxes, net of appropriate valuation
allowances, are determined using the tax rates expected to be in effect when the taxes are actually paid. Valuation allowances are recorded
against deferred tax assets when it is more likely than not that such assets will not be realized. When an uncertain tax position meets
the more likely than not recognition threshold, the position is measured to determine the amount of benefit or expense to recognize in
the financial statements.

The Company’s income tax returns are subject
to review and examination by federal, state and local governmental authorities. As of April 30, 2025, our April 30, 2024 tax return was
open to examination with federal, state and local