Company: ALDA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001548123-25-000049
Chunk: 6

Company: ATLANTICA INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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land, Gordon & Company (“ Richland”), a private
investment firm beneficially owned by Alan D. Gordon, the Company’s President and Chief Executive Officer and one of the Company’s
directors. Pursuant to the Management Services Agreement, Richland provides certain financial and management consulting services to the
Company, including, among other things, advice regarding the Company's operations, identification of potential businesses for the Company
to acquire or other suitable business combinations for the Company, and advice regarding the Company's general preparation for its initial
acquisition, other business combination or financing transaction that may occur in the future.

The Management Services Agreement has a term of
ten years and provides for the Company to pay to Richland an annual management fee equal to the greater of (i)$ 120,000or (ii)5% of the Company's
consolidated EBITDA (as defined in the agreement). The management fee is payable in quarterly installments in arrears, on April 15,
July 15, October 15 and January 15 of each year, with respect to the immediately preceding calendar quarter, equal to the greater of
(i)$ 30,000or (ii)5% of the Company's
consolidated EBITDA for the immediately preceding calendar quarter, with such payments commencing July 15, 2009 and covering
services provided by Richland during the period from January 1, 2008 (prior to the date of the agreement) and continuing through the
quarter ended June 30, 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 June 30, 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