SEC Filing Document

Company: Palermo Technologies Inc.
Ticker: 
CIK: 2101355
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0002097570-26-000016
Exchange: 
SIC Code: 4899
SIC Description: Communications Services, NEC
URL: https://www.sec.gov/Archives/edgar/data/2101355/000209757026000016/pale-20260512_s1a3.htm

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revenue levels necessary to attain profitability. We may have difficulty raising additional capital, which could deprive us of necessary resources. We expect to continue to devote significant capital resources to Company research and development. In order to support the initiatives envisioned in our business plan, we will need to raise additional funds through public or private debt or equity financing, collaborative relationships or other arrangements. Our ability to raise additional financing depends on many factors beyond our control, including the state of capital markets and the market price of our common stock. Because our common stock is not listed on a major stock market, many investors may not be willing or allowed to purchase it or may demand steep discounts. Sufficient additional financing may not be available to us or may be available only on terms that would result in further dilution to the current owners of our common stock.

We expect to raise additional capital during
2025 but we do not have any firm commitments.  If we are unsuccessful in raising additional capital, or the terms of raising such
capital are unacceptable, we may have to modify our business plan and/or significantly curtail our planned activities and other operations.

There are substantial doubts about our ability to
continue as a going concern and if we are unable to continue our business, our shares may have little or no value.

The company’s ability to become a profitable
operating company is dependent upon its ability to generate revenues and/or obtain financing adequate to fulfill its research and market
introduction activities, and achieving a level of revenues adequate to support our cost structure has raised substantial doubts about
our ability to continue as a going concern.  We plan to attempt to raise additional equity capital by selling shares in this offering
and, if necessary, through one or more private placement or public offerings.  However, the doubts raised, relating to our ability
to continue as a going concern, may make our shares an unattractive investment for potential investors.  These factors, among others,
may make it difficult to raise any additional capital.

We Are Dependent On Our President, To Guide
Our  Operations and Implement Our Plan Of Operations. If We Lose Such Services We Will Have To Change Our Business Plan/Direction
or Cease Operations.

Our success will depend on the ability and resources
of our President. If we lose the services of our CEO, we will be forced to either change our business plan and direction or cease operations.
We have no written employment agreement with our CEO. We have not obtained any key man life insurance relating to our President. If we
lose such services, we may not be able to hire and retain another leader with comparable experience. As a result, the loss of Roger McClay’s
services could impact our revenues. We have no written employment agreement or covenant not to compete with Mr. McClay.

Our President Devotes
Only a Portion of His Time to Our Business, Which May Adversely Affect Our Operations.

Our President is engaged in other business activities
and currently expects to devote approximately 30% of his business time to our operations and management. As a result, he may have limited
availability to oversee our development activities, strategic initiatives and capital raising efforts. Because we are an early-stage company
and rely heavily on his leadership and experience, any reduction in the time he is able to devote to our business could delay our development
plans and adversely affect our business and prospects.

Risks Relating to Our Business

Our technology is still
under development and may not perform as intended.

Our software and security infrastructure are in prototype
or testing stages. Unexpected technical challenges, performance limitations, or security vulnerabilities could delay product release or
reduce customer adoption. Any failure to deliver reliable, secure, and scalable solutions could harm our reputation and prospects.

We have limited internal technical expertise, which may
delay development of our platform and adversely affect our business.

We currently have limited in-house expertise in information
technology, software development, and secure communications systems. As a result, we will rely on hiring qualified technical personnel
and engaging third-party consultants and development firms to design, develop and maintain our platform. Competition for experienced technical
professionals is significant, and we may encounter difficulties in recruiting and retaining qualified personnel. In addition, reliance
on third parties may increase costs, reduce our control over development timelines, and expose us to operational and security risks. If
we are unable to successfully address technological challenges or build our platform in a timely and cost-effective manner, our business,
financial condition, and results of operations could be materially adversely affected.

We operate in a competitive
and rapidly evolving industry.

The secure communications and cybersecurity markets
are highly competitive, with many established companies and emerging startups. Larger competitors may have greater financial, technical,
and marketing resources, which could make it difficult for us to gain market share or attract customers.

Changes in laws or government
regulations could adversely affect our business.

Our products may be subject to data privacy, encryption,
and export control laws that are complex and frequently changing. Compliance may become costly, or new regulations could limit our ability
to develop or distribute certain technologies.

Our financial statements may not be comparable
to those of companies that comply with new or revised accounting standards.

We have elected to take advantage of the benefits
of the extended transition period that Section 107 of the JOBS Act provides an emerging growth company, as provided in Section 7(a)(2)(B)
of the Securities Act for complying with new or revised accounting standards. Our financial statements may, therefore, not be comparable
to those of companies that comply with such new or revised accounting standards. We cannot predict if investors will find our common stock
less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may
be a less active trading market for our common stock and our stock price may be more volatile.

Even if we no longer qualify as an emerging
growth company, as a smaller reporting company, we would still be eligible to use reduced disclosure requirements, which may make our
common stock less attractive to investors.

Even if we no longer qualify as an emerging growth
company, we may still qualify as a smaller reporting company. As such, we plan to take advantage of reduced disclosure obligations, including
regarding executive compensation, in our periodic reports and proxy statements. As a result, investors may find our common stock less
attractive. As a smaller reporting company that is a non-accelerated filer, we also will not be subject to Section 404(b) of the Sarbanes-Oxley
Act, which would require that our independent auditors review and attest to the effectiveness of our internal control over financial reporting.
We would remain a smaller reporting company as long as (1) the public float for our securities remains below $250 million or (2) our annual
revenues remain below $100 million and our public float remains below $700 million. We would remain a non-accelerated filer as long as
the public float of our securities remains below $75 million (or any higher threshold amount, as currently proposed by the Securities
and Exchange Commission).

Risks Relating to our Stock

The Offering price of $0.10 per share is arbitrary.

The Offering price of $0.10 per share has been arbitrarily
determined by our management and does not bear any relationship to the assets, net worth or projected earnings of the Company, or any
other generally accepted criteria of value.

We have no firm commitments to purchase any
shares.

We have no firm commitment for the purchase of any
shares.  Therefore, there is no assurance that a trading market will develop or be sustained.  The Company has not engaged a
placement agent or broker for the sale of the shares.  The Company may be unable to identify investors to purchase the shares and
may have inadequate capital to support its ongoing business obligations.

Our Sole Officer and Director beneficially owns
a significant percentage of our outstanding voting securities which could reduce the ability of minority shareholders to effect certain
corporate actions

Our Sole Officer and Director beneficially owns a
substantial majority of our voting securities. As a result, currently, and after the offering, the company will possess a significant
influence and can elect a majority of our board of directors and authorize or prevent proposed significant corporate transactions. The
Company’s ownership and control may also have the effect of delaying or preventing a future change in control, impeding a merger,
consolidation, takeover or other business combination or discourage a potential acquirer from making a tender offer.

Because our Sole Officer and Director owns a
substantial majority of our Common Stock, it may not be possible to have adequate internal controls.