Company: NTCS
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001683168-25-004268
Chunk: 52

Company: Natics Corp.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1B
Chunk 52
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 condition
and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles
generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, and expenses. These estimates and assumptions are affected by management’s
application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with
the following aspects of our financial statements is critical to an understanding of our financial statements.

Use of Estimates

The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual
results could differ from these good faith estimates and judgments.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

Not applicable to smaller reporting companies.

Item 8. Financial Statements and Supplementary Data

The Company’s Financial Statements required
by Item 8, together with the reports thereon of the Independent Registered Public Accounting Firm are set forth on pages F-1 through F-11
of this report and are incorporated by reference in this Item 8.

Item 9. Changes in and Disagreements with Accounting
and Financial Disclosures.

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

Disclosure controls and procedures are designed
to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized
and reported, within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated
to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures. Our management necessarily
applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable
assurance regarding management’s control objectives.

Our management, with the participation of our
CEO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered
by this Report. Based upon this evaluation, our CEO concluded that our disclosure controls and procedures were not effective because of
the identification of a material weakness in our internal control over financial reporting which is described below.

 5 

Management’s