SEC Filing Document

Company: Palermo Technologies Inc.
Ticker: 
CIK: 2101355
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-01-20
Accession Number: 0002097570-26-000005
Exchange: 
SIC Code: 4899
SIC Description: Communications Services, NEC
URL: https://www.sec.gov/Archives/edgar/data/2101355/000209757026000005/pale-20260120_s1.htm

Chunk 4 of 21
Word Count: 1494
Character Count: 9504

Document Content:

to have our common stock traded over the counter; there is no guarantee that our shares will ever be quoted on the OTC Pink Market listed or on an exchange, which could severely impact their liquidity. Currently our shares are not traded on any market or exchange. We will apply to have our common stock quoted via the OTC Pink Market. Therefore, our common stock is expected to have fewer market makers, lower trading volumes and larger spreads between bid and asked prices than securities listed on an exchange such as the New York Stock Exchange or the NASDAQ Stock Market. These factors may result in higher price volatility and less market liquidity for the common stock. It is possible that the company’s shares may never be quoted on the OTC Pink Market listed on an exchange. low market price would severely limit the potential market for our common stock.

Our
common stock is expected to trade at a price substantially below $5.00 per share, subjecting trading in the stock to certain SEC rules
requiring additional disclosures by broker-dealers.  These rules generally apply to any non-NASDAQ equity security that has a market
price share of less than $5.00 per share, subject to certain exceptions (a “penny stock”).  Such rules require the delivery,
prior to any penny stock transaction, of a disclosure schedule explaining the penny stock market and the risks associated therewith and
impose various sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and institutional
or wealthy investors.  For these types of transactions, the broker-dealer must make a special suitability determination for the
purchaser and have received the purchaser’s written consent to the transaction prior to the sale.  The broker-dealer also
must disclose the commissions payable to the broker-dealer, current bid and offer quotations for the penny stock and, if the broker-dealer
is the sole market maker, the broker-dealer must disclose this fact and the broker-dealer’s presumed control over the market.
Such information must be provided to the customer orally or in writing before or with the written confirmation of trade sent to the customer.
Monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited
market in penny stocks.  The additional burdens imposed upon broker-dealers by such requirements could discourage broker-dealers
from effecting transactions in our common stock.

FINRA
sales practice requirements may also limit a stockholders ability to buy and sell our stock.

addition to the penny stock rules promulgated by the SEC, which are discussed in the immediately preceding risk factor, FINRA rules
require that in recommending an investment to a customer, a broker -dealer must have reasonable grounds for believing that the
investment is suitable for that customer.  Prior to recommending speculative, low-priced securities to their non-institutional
customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax
status, investment objectives and other information.  Under interpretations of these rules, FINRA believes that there is
a high probability that speculative low-priced securities will not be suitable for at least some customers.  FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit the ability to buy
and sell our stock and have an adverse effect on the market value for our shares.

investor’s ability to trade our common stock may be limited by trading volume.

consistently active trading market for our common stock may not occur on the OTC Pink Market. A limited trading volume may prevent
our shareholders from selling shares at such times or in such amounts as they may otherwise desire.  The company’s shares
may never be quoted on the OTC Pink Market listed on an exchange.

Our
company has a concentration of stock ownership and control, which may have the effect of delaying, preventing, or deterring a change
of control.

Our
common stock ownership is highly concentrated.  Through ownership of shares of our common stock, one shareholder, our officer beneficially
owns 100% of our total outstanding shares of common stock before this offering.  As a result of the concentrated ownership of the
stock, these stockholders, acting in concert, will be able to control all matters requiring stockholder approval, including the election
of directors and approval of mergers and other significant corporate transactions.  This concentration of ownership may have the
effect of delaying, preventing or deterring a change in control of our company.  It could also deprive our stockholders of an opportunity
to receive a premium for their shares as part of a sale of our company and it may affect the market price of our common stock.

have not voluntarily implemented various corporate governance measures, in the absence of which, shareholders may have more limited protections
against interested director transactions, conflicts of interest and similar matters.

Recent
federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted in the adoption of various corporate governance measures
designed to promote the integrity of the corporate management and the securities markets.  Some of these measures have been adopted
in response to legal requirements; others have been adopted by companies in response to the requirements of national securities exchanges,
such as the NYSE or the NASDAQ Stock Market, on which their securities are listed.  Among the corporate governance measures that
are required under the rules of national securities exchanges and NASDAQ, are those that address the board of Directors independence,
audit committee oversight, and the adoption of a code of ethics.  We have not yet adopted any of these corporate governance measures,
and since our securities are not listed on a national securities exchange or NASDAQ, we are not required to do so.  It is possible
that if we were to adopt some or all of these corporate governance measures, shareholders would benefit from somewhat greater assurances
that internal corporate decisions were being made by disinterested directors and that policies had been implemented to define responsible
conduct.  For example, in the absence of audit, nominating and compensation committees comprised of at least a majority of independent
directors, decisions concerning matters such as compensation packages to our senior officers and recommendations for director nominees,
may be made by a majority of directors who have an interest in the outcome of the matters being decided.  Prospective investors
should bear in mind our current lack of corporate governance measures in formulating their investment decisions.

Because
we will not pay dividends in the foreseeable future, stockholders will only benefit from owning common stock if it appreciates.

have never paid dividends on our common stock and we do not intend to do so in the foreseeable future.  We intend to retain any
future earnings to finance our growth.  Accordingly, any potential investor who anticipates the need for current dividends from
his investment should not purchase our common stock.

are only subject to the reporting requirements of Section 15(d) of the Exchange Act of 1934.

this time, we do not intend to register any of our securities under Section 12 of the Exchange Act.  Accordingly, we are only
subject to the reporting requirements of Section 15(d) of the Exchange Act and those requirements are not as rigorous as those
placed on companies that register its securities under Section 12.  Specifically, we are not subject to the any proxy rules,
Section 16 reporting and short-swing profit provisions, beneficial ownership reporting, and the bulk of the tender offer
rules under U.S. securities laws and principal beneficial owners will not be required to report their beneficial ownership of
securities to the SEC pursuant to Section 16 of the Exchange Act.  Previously, a company with more than 500 shareholders of
record and $10 million in assets had to register under the Exchange Act.  However, the JOBS Act raises the minimum shareholder
threshold from 500 to either 2,000 persons or 500 persons who are not “accredited investors” (or 2,000 persons in the
case of banks and bank holding companies).  This means that access to information regarding our business and operations will be
limited.

USE OF PROCEEDS

The
net proceeds to us from the sale of the Shares are estimated to be approximately $325,000 if the entire Offering is sold, of which there
can be no assurance.

The
net proceeds of this Offering will be used for working capital, product development, marketing, and manufacturing.

of Offering Sold 50%
of Offering Sold 75%
of Offering Sold 100%
of Offering Sold

Proceeds from this Offering $	62,500 $	150,000 $	237,500 $	325,000

Application of Proceeds
Working Capital (1) $	7500 $	15,000 $	22,500 $	30,000

Product Development

Software Design $	10,000 $	60,000 $	80,000 $	120,000

Software Development and
Research $	10,000 $	20,000 $	30,000 $	40,000

Software Testing/Validation $	10,000 $	20,000 $	30,000 $	40,000

Total Product Development
Expenses $	37,500 $	105,000 $	162,500 $	230,000

Marketing (3)

Company Website $	5,000 $	7,500 $	12,500 $	15,000

Communications $	5,000 $	7,500 $	12,500 $	15,000