SEC Filing Document

Company: Palermo Technologies Inc.
Ticker: 
CIK: 2101355
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-03-05
Accession Number: 0002097570-26-000011
Exchange: 
SIC Code: 4899
SIC Description: Communications Services, NEC
URL: https://www.sec.gov/Archives/edgar/data/2101355/000209757026000011/pale-20260304_s1a1.htm

Chunk 13 of 21
Word Count: 1490
Character Count: 10007

Document Content:

proposed business operations and products. Our business could be subject to any or all of the problems, expenses, delays and risks inherent in the establishment of a new business enterprise, including limited capital resources, possible changes in consumer interest, possible cost overruns due to price and cost increases in services we require. Therefore, we cannot guarantee we will be able to achieve or maintain profitable operations. Further, there is no assurance that we will not encounter unforeseen difficulties that may deplete our capital resources more rapidly than anticipated. See “Risk Factors.” We are a cutting-edge software infrastructure company committed to redefining the architecture of secure digital communications. We operate at the intersection of national sovereignty, cryptographic security, and regulatory compliance. We are building a sovereign-grade, AI-enhanced encrypted communications mesh platform tailored to governments, regulated enterprises, legal professionals, NGOs and mission-critical users operating under regulatory scrutiny or in high-risk threat environments.

Our vision is to create a verifiable, trustless communication
substrate for the post-cloud, post-quantum world—where single points of failure are eliminated, surveillance risk is structurally
mitigated, and compliance is not a bolt-on but an intrinsic design constraint. The Palermo platform delivers secure communications via
five converging channels: email, messaging, file transfer, voice/video conferencing, and decentralized identity. All services run atop
our proprietary peer-to-peer infrastructure protocol, PalermoMesh.

We are in the early stages of development and have
not yet launched a commercial product. Although we have undertaken planning, research, and preliminary architectural design activities,
substantial additional development, testing, funding, and hiring will be required before any commercial release. The technologies described
in this Registration Statement are based on our current development plans and should not be interpreted as representing a completed or
market-ready product.

We have never been subject to any bankruptcy proceeding.

Our executive offices are located at 1122-1577 Gulf
Road, Point Roberts, WA 98281. Our telephone number is (307) 357-3085.

RESULTS OF OPERATIONS

We had no operating revenues from July 2, 2025 (inception),
through July 31, 2025 our fiscal year-end.  Our activities have been financed from loans from our sole officer and director.
There is no assurance that we will ever attain profitability.  As of July 31, 2025 the Company has no revenues.

Liquidity and Capital Resources

At October 31, 2025, we had a cash balance of $7,468.
Our expenditures over the next 12 months are expected to be approximately $380,000, assuming we sell all shares in this offering.

Based on our current cash position, we will not be able to continue operations
for approximately 12 months, assuming we do not rise additional funding.  We believe our current cash and net working capital balance
is only sufficient to cover our expenses for filing required quarterly and annual reports with the Securities and Exchange Commission
and our status as a corporation in the State of Wyoming for the next 12 months.

Additional funding will likely come from equity financing
from the sale of our common stock, if we are able to sell such stock.  If we are successful in completing an equity financing, existing
shareholders will experience dilution of their interest in our Company.  We do not have any financing arranged and we cannot provide
investors with any assurance that we will be able to rise sufficient funding from the sale of our common stock to fund our development
activities.  In the absence of such financing, our business will fail.  There are no assurances that we will be able to achieve
further sales of our common stock or any other form of additional financing.  If we are unable to achieve the financing necessary
to continue our plan of operations, then we will not be able to continue our plan of operation for the next 12 months and our business
will fail.

Controls and Procedures

We are not currently required to maintain an effective
system of internal controls.  We will be not be required to comply with the internal control requirements of the Sarbanes-Oxley Act
until we either are required to file an annual report pursuant to section 13(a) or 15(d) of the Exchange Act (15 B.SC. 78m or 78o (d))
for the prior fiscal year or if we had filed an annual report with the Commission for the prior fiscal year.

When and if we do become subject to the internal control
requirements of the Sarbanes-Oxley Act we may incur significant expense in meeting our public reporting responsibilities because it will
take time, management involvement and perhaps outside resources to determine what internal control improvements are necessary for us to
meet regulatory requirements and market expectations for our operations.  Becoming compliant may take longer than we expect, which
may increase our exposure to financial fraud or erroneous financing reporting.

Off-Balance Sheet Arrangements; Commitments and
Contractual Obligations

We have not entered into any off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical accounting estimates –
The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States.  The preparation of these
consolidated financial statements requires us to make estimates and judgments that affect the amounts of assets, liabilities, revenues
and expenses, and related disclosure of contingent assets and liabilities.  On an on-going basis, we evaluate our estimates based
on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or conditions.  The following represents a summary of
our critical accounting policies, defined as those policies that we believe are the most important to the portrayal of our financial condition
and results of operations and that require management’s most difficult, subjective or complex judgments, often as a result of the
need to make estimates about the effects of matters that are inherently uncertain.

Basis of presentation

The accompanying financial statements have been prepared
in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations
of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments,
which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company
for the year ended July 31, 2025.

The accompanying condensed financial statements have been
prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of operations, and cash flows at July 31, 2025, and for the related periods
presented.

Cash and Cash Equivalents

The Company considers all highly liquid investments
with original maturities of three months or less to be cash equivalents. The Company had $10,000 cash as of July 31, 2025.

Income Taxes

The Company recognizes the tax effects of transactions
in the year in which such transactions enter into the determination of net income, regardless of when reported for tax purposes.

Revenue Recognition

We recognize revenue in accordance with Accounting
Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The standard’s stated
core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core
principle, ASC 606 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the
performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations,
and recognizing revenue when, or as, an entity satisfies a performance obligation.

Use of Estimates

The preparation of financial statements in conformity
with generally accepted accounting principles 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 the financial statements and the reported amount
of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

AS topic 820 “Fair Value Measurements and Disclosures”
establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs
into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

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