r10k2024.txt
 BALTIC 10-K 12/31/24

 U.S. SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549

 FORM 10-K

(Mark One)
[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
 ACT OF 1934
 For the Fiscal Year Ended: December 31, 2024

 OR

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
 ACT OF 1934
 For the transition period from ___________ to ___________.

Commission File Number: 0-26588

 (Name of small business issuer in its charter)

 Texas 76-0336843
 (State or other jurisdiction (IRS Employer
 of incorporation or organization) Identification No.)

 6002 Rogerdale Road, Suite 300
 Houston, Texas 77072
 (Address of principal executive offices, including zip code)

 (713) 961-9299
 (Issuer's telephone number, including area code)

 Securities registered under Section 12(b) of the Exchange Act: None

 Securities registered under Section 12(g) of the Exchange Act:

 Common Stock, $0.01 par value
 Warrants
 (Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer,
and accelerated filer, a non-accelerated filer, a smaller reporting company
or an emerging growth company. See the definitions of "large accelerated
filer," "accelerated filer," "smaller reporting company" and "emerging
growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer [ ] Accelerated filer [ ]
 Non-accelerated filer [X] Smaller reporting company [X]
 Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act). Yes [X] No [ ]

Aggregate market value of the voting and non-voting common equity held by non-
affiliates as of the last business day of the registrant's most recently
completed second fiscal quarter (June 30, 2024) was $220,124.

As of April 15, 2025, there were 10,975,760 shares of common stock outstanding.

 Page

 Item 1. Business 3

 Item 1A. Risk Factors 5

 Item 2. Properties 8

 Item 3. Legal Proceedings 8

 Item 4. Mine Safety Disclosures 9

 Item 5. Market for Common Equity and Related Stockholder Matters 9

 Item 6. Selected Financial Data 9

 Item 7. Management's Discussion and Analysis or Plan of Operation 10

 Item 8. Financial Statements 11

 Item 9. Changes In and Disagreements With Accountants on
 Accounting and Financial Disclosure 12

 Item 9A. Controls and Procedures 12

 Item 9B. Other Information 12

 Item 10. Directors, Executive Officers and Corporate Governance 13

 Item 11. Executive Compensation 14

 Item 12. Security Ownership of Certain Beneficial Owners and
 Management and Related stockholder Matters 15

 Item 13. Certain Relationships and Related Transactions and
 Director Independence 15

 Item 14. Principal Accountant Fees and Services 16

 Item 15. Exhibits 16

SIGNATURES 17

Item 1. BUSINESS

Baltic International USA, Inc. ("Baltic") is a Texas corporation that has
provided capital, management, and technical services to start-up and
established private companies. In most instances, we are directly involved in
management, and in all instances assists in allocation of capital either
directly from us or through the investment of third parties. Baltic has not
taken significant profits or management fees from these investments.

During 1999, we decided to sell most of our business interests in Eastern
Europe and to focus on utilizing our assets to achieve profitability by
acquiring business operations based in the United States. We have limited cash
resources available for investment purposes.

Current Status as a Shell Company

Since March 2003, we have been classified as a "shell company". Rule 12b-2 of
the Securities and Exchange Act of 1934, as amended (the "Exchange Act")
defines "shell company," as a company (other than an asset-backed issuer),
which has "no operations; and either no or nominal assets; assets consisting of
solely cash and cash equivalents; or assets consisting of any amount of cash
and cash equivalents and nominal other assets."

We currently plan to investigate and, if such investigation warrants, acquire
a target company or business seeking the perceived advantages of being a
publicly held corporation. Our principal business objective for the next 12
months and beyond, will be to achieve long-term growth potential through a
combination with a business rather than immediate, short-term earnings. We
will not restrict our potential candidate target companies to any specific
business, industry or geographical location and, thus, may acquire any type of
business.

The analysis of new business opportunities has and will be undertaken by or
under the supervision of our executive officers. As of the date of this
filing, we have not entered into any definitive agreement with any party, nor
have there been any specific discussions with any potential business
combination candidate regarding business opportunities for us. In our efforts
to analyze potential acquisition targets, we will consider the following kinds
of factors:

 (a) Potential for growth, indicated by new technology, anticipated market
 expansion or new products;

 (b) Competitive position as compared to other firms of similar size and
 experience within the industry segment as well as within the industry
 as a whole;

 (c) Strength and diversity of management, either in place or scheduled
 for recruitment;

 (d) Capital requirements and anticipated availability of required funds,
 to be provided by us or from operations, through the sale of
 additional securities, through joint ventures or similar arrangements
 or from other sources;

 (e) The cost of participation by us as compared to the perceived tangible
 and intangible values and potentials;

 (f) The extent to which the business opportunity can be advanced;

 (g) The accessibility of required management expertise, personnel, raw
 materials, services, professional assistance and other required
 items; and

 (h) Other relevant factors.

In applying the foregoing criteria, no one of which will be controlling, our
management will attempt to analyze all factors and circumstances and make a
determination based upon reasonable investigative measures and available data.
Potentially available business opportunities may occur in many different
industries, and at various stages of development, all of which will make the
task of comparative investigation and analysis of such business opportunities
extremely difficult and complex. Due to the limited capital we have available
for investigation, we may not discover or adequately evaluate adverse facts
about the opportunity to be acquired.

Form of Acquisition

The manner in which we participate in an opportunity will depend upon the
nature of the opportunity, our respective needs and desires as well as those of
the promoters of the opportunity, and the relative negotiating strength of us
and such promoters.

It is likely that we will acquire our participation in a business opportunity
through the issuance of common stock or other securities. This could result in
substantial additional dilution to the equity of those who were our
shareholders prior to such reorganization. Our present shareholders will
likely not have control of a majority of our voting shares following a
reorganization transaction. As part of such a transaction, all or a majority
of our directors may resign and new directors may be appointed without any vote
by shareholders.

In the case of an acquisition, the transaction may be accomplished upon the
sole determination of our management without any vote or approval by
shareholders. In the case of a statutory merger or consolidation directly
involving the Company, it will likely be necessary to call a shareholders'
meeting and obtain the approval of the holders of a majority of the outstanding
shares. The necessity to obtain such shareholder approval may result in delay
and additional expense in the consummation of any proposed transaction and will
also give rise to certain appraisal rights to dissenting shareholders. Most
likely, management will seek to structure any such transaction so as not to
require shareholder approval.

It is anticipated that the investigation of specific business opportunities and
the negotiation, drafting and execution of relevant agreements, disclosure
documents and other instruments will require substantial management time and
attention and substantial cost for accountants, attorneys and others. If a
decision is made not to participate in a specific business opportunity, the
costs theretofore incurred in the related investigation would not be

recoverable. Furthermore, even if an agreement is reached for the
participation in a specific business opportunity, the failure to consummate
that transaction may result in our loss of the related costs incurred.

Employees

We currently employ no persons on a full-time basis and one person on a
part-time basis. We have in the past, and will continue in the future, to
employ independent contractors and to make extensive use of our outside
directors and others as consultants. None of our employees and our
subsidiaries and joint operations are represented by a labor organization.

Item 1A. RISK FACTORS

Our business is subject to numerous risk factors, including the following:

WE HAVE MINIMAL ASSETS AND HAVE HAD NO OPERATIONS AND GENERATED NO REVENUES FOR
APPROXIMATELY THE LAST THREE YEARS.

We have had no operations nor any revenues or earnings from operations since
March 2003. We have no significant assets or financial resources. We will, in
all likelihood, sustain operating expenses without corresponding revenues, at
least until the consummation of a business combination. This may result in us
incurring a net operating loss which will increase continuously until we can
consummate a business combination with a target company. There is no assurance
that we can identify such a target company and consummate such a business
combination.

THERE MAY BE CONFLICTS OF INTEREST BETWEEN OUR MANAGEMENT AND OUR NON-
MANAGEMENT SHAREHOLDERS.

Conflicts of interest create the risk that management may have an incentive to
act adversely to the interests of other investors. A conflict of interest may
arise between our management's personal pecuniary interest and its fiduciary
duty to our shareholders. Further, our management's own pecuniary interest may
at some point compromise its fiduciary duty to our shareholders.

THE NATURE OF OUR PROPOSED OPERATIONS IS HIGHLY SPECULATIVE.

The success of our proposed plan of operation will depend to a great extent on
the operations, financial condition and management of the identified target
company. While management will prefer business combinations with entities
having established operating histories, there can be no assurance that we will
be successful in locating candidates meeting such criteria. In the event we
complete a business combination, of which there can be no assurance, the
success of our operations will be dependent upon management of the target
company and numerous other factors beyond our control.

THE COMPETITION FOR BUSINESS OPPORTUNITIES AND COMBINATIONS IS GREAT.

We are and will continue to be an insignificant participant in the business of
seeking mergers with and acquisitions of business entities. A large number of
established and well-financed entities, including venture capital firms, are
active in mergers and acquisitions of companies which may be merger or
acquisition target candidates for us. Nearly all such entities have

significantly greater financial resources, technical expertise and managerial
capabilities than us and, consequently, we will be at a competitive
disadvantage in identifying possible business opportunities and successfully
completing a business combination. Moreover, we will also compete with
numerous other small public companies in seeking merger or acquisition
candidates.

IT WILL BE IMPRACTICABLE FOR US TO CONDUCT AN EXHAUSTIVE INVESTIGATION PRIOR TO
ANY BUSINESS COMBINATION, WHICH MAY LEAD TO A FAILURE TO MEET OUR FIDUCIARY
OBLIGATIONS TO OUR SHAREHOLDERS.

Our limited funds and the fact that we only have two part-time officers will
likely make it impracticable to conduct a complete and exhaustive investigation
and analysis of a target company. The decision to enter into a business
combination, therefore, will likely be made without detailed feasibility
studies, independent analysis, market surveys or similar information which, if
we had more funds available to it, would be desirable. We will be particularly
dependent in making decisions upon information provided by the principals and
advisors associated with the business entity seeking our participation.
Management may not be able to meet its fiduciary obligation to us and our
shareholders due to the impracticability of completing thorough due diligence
of a target company. By our failure to complete a thorough due diligence and
exhaustive investigation of a target company, we are more susceptible to
derivative litigation or other shareholder suits. In addition, this failure to
meet our fiduciary obligations increases the likelihood of plaintiff success in
such litigation.

WE HAVE NO CURRENT AGREEMENTS IN PLACE FOR A BUSINESS COMBINATION OR OTHER
TRANSACTION, AND WE CURRENTLY HAVE NO STANDARDS FOR POTENTIAL BUSINESS
COMBINATIONS.

We have no current arrangement, agreement or understanding with respect to
engaging in a business combination with a specific entity. There can be no
assurance that we will be successful in identifying and evaluating suitable
business opportunities or in concluding a business combination. Management has
not identified any particular industry or specific business within an industry
for evaluation by us. There is no assurance that we will be able to negotiate
a business combination on terms favorable to us. We have not established a
specific length of operating history or a specified level of earnings, assets,
net worth or other criteria which we will require a target company to have
achieved, or without which we would not consider a business combination with
such business entity. Accordingly, we may enter into a business combination
with a business entity having no significant operating history, losses, limited
or no potential for immediate earnings, limited assets, negative net worth or
other negative characteristics.

ANY FUTURE BUSINESS COMBINATION IS HIGHLY DEPENDENT ON THE ACTIONS OF OUR TWO
OFFICERS, WHO MAY ONLY HAVE A LIMITED AMOUNT OF TIME AVAILABLE TO CONCENTRATE
US.

While seeking a business combination, management anticipates devoting only a
limited amount of time per month to our business. Our officers have not
entered into a written employment agreement with us and they are not expected
to do so in the foreseeable future. We have not obtained key man life
insurance on our officers. Notwithstanding the combined limited experience and

time commitment of management, loss of the services of our officers would
adversely affect development of our business and likelihood of continuing
operations.

THERE IS SUBSTANTIAL DOUBT AS TO WHETHER WE CAN CONTINUE AS A GOING CONCERN.

We have not generated any revenues since March 2003, nor have we had any
operations since March 2003. We had an accumulated deficit of $18,955,933 as
of December 31, 2024. These factors among others indicate that we may be
unable to continue as a going concern, particularly in the event that we cannot
obtain additional financing and/or attain profitable operations. The
accompanying financial statements do not include any adjustments that might
result from the outcome of this uncertainty and if we cannot continue as a
going concern, your investment in us could become devalued or even worthless.

REPORTING REQUIREMENTS MAY DELAY OR PRECLUDE AN ACQUISITION.

Section 13 of the Exchange Act requires companies subject thereto to provide
certain information about significant acquisitions including audited financial
statements for the company acquired and a detailed description of the business
operations and risks associated with such company's operations. The time and
additional costs that may be incurred by some target companies to prepare such
financial statements and descriptive information may significantly delay or
essentially preclude consummation of an otherwise desirable acquisition by us.
Additionally, acquisition prospects that do not have or are unable to obtain
the required audited statements may not be appropriate for acquisition so long
as the reporting requirements of the Exchange Act are applicable.

WE HAVE NOT CONDUCTED ANY MARKET RESEARCH REGARDING ANY POTENTIAL BUSINESS
COMBINATIONS.

We have neither conducted, nor have others made available to it, market
research indicating that demand exists for the transactions contemplated by us.
Even in the event demand exists for a transaction of the type contemplated by
us, there is no assurance we will be successful in completing any such business
combination.

WE DO NOT PLAN TO DIVERSIFY OUR OPERATIONS IN THE EVENT OF A BUSINESS
COMBINATION.

Our proposed operations, even if successful, will in all likelihood result in
our engaging in a business combination with only one target company.
Consequently, our activities will be limited to those engaged in by the
business entity which we will merge with or acquire. Our inability to
diversify its activities into a number of areas may subject us to economic
fluctuations within a particular business or industry and therefore increase
the risks associated with our operations.

ANY BUSINESS COMBINATION WILL LIKELY RESULT IN A CHANGE IN CONTROL AND IN OUR
MANAGEMENT.

A business combination involving the issuance of our common stock will, in all
likelihood, result in shareholders of a target company obtaining a controlling
interest in the Company. Any such business combination may require our
shareholder to sell or transfer all or a portion of their common stock.

REDUCTION OF PERCENTAGE SHARE OWNERSHIP FOLLOWING BUSINESS COMBINATION.

Our primary plan of operation is based upon a business combination with a
business entity which, in all likelihood, will result in our issuing securities
to shareholders of such business entity. The issuance of previously authorized
and unissued common stock would result in a reduction in percentage of shares
owned by our present shareholders and could therefore result in a change in
control of our management.

FEDERAL AND STATE TAXATION RULES COULD ADVERSELY EFFECT ANY BUSINESS
COMBINATION WE MAY UNDERTAKE.

Federal and state tax consequences will, in all likelihood, be major
considerations in any business combination we may undertake. Currently, such
transactions may be structured so as to result in tax-free treatment to both
companies, pursuant to various federal and state tax provisions. We intend to
structure any business combination so as to minimize the federal and state tax
consequences to both us and the target company; however, there can be no
assurance that such business combination will meet the statutory requirements
of a tax-free reorganization or that the parties will obtain the intended tax-
free treatment upon a transfer of stock or assets. A non-qualifying
reorganization could result in the imposition of both federal and state taxes
which may have an adverse effect on both parties to the transaction.

WE MAY BE FORCED TO RELY ON UNAUDITED FINANCIAL STATEMENTS IN CONNECTION WITH
ANY BUSINESS COMBINATION.

We will require audited financial statements from any business entity we
propose to acquire. No assurance can be given; however, that audited
financials will be available to us prior to a business combination. In cases
where audited financials are unavailable, we will have to rely upon unaudited
information that has not been verified by outside auditors in making our
decision to engage in a transaction with the business entity. The lack of the
type of independent verification which audited financial statements would
provide increases the risk that we, in evaluating a transaction with such a
target company, will not have the benefit of full and accurate information
about the financial condition and operating history of the target company.
This risk increases the prospect that a business combination with such a
business entity might prove to be an unfavorable one for us.

WE MAY BE SUBJECT TO FURTHER GOVERNMENT REGULATION WHICH WOULD ADVERSELY AFFECT
OUR OPERATIONS.

Although we will be subject to the reporting requirements under the Exchange
Act, management believes we will not be subject to regulation under the
Investment Company Act of 1940, as amended (the "Investment Company Act"),
since we will not be engaged in the business of investing or trading in
securities. If we engage in business combinations which result in our holding
passive investment interests in a number of entities, we could be subject to
regulation under the Investment Company Act. If so, we would be required to
register as an investment company and could be expected to incur significant
registration and compliance costs. We have obtained no formal determination
from the Securities and Exchange Commission as to our status under the

Investment Company Act and, consequently, violation of the Act could subject us
to material adverse consequences.

OUR BUSINESS WILL HAVE NO REVENUES UNLESS AND UNTIL WE MERGE WITH OR ACQUIRE AN
OPERATING BUSINESS.

We have had no revenues from operations for approximately the past four years.
We have had no operations for approximately the past four years. We may not
realize any revenues unless and until we successfully merge with or acquire an
operating business.

THE COMPANY MAY ISSUE MORE SHARES IN CONNECTION WITH A MERGER OR ACQUISITION,
WHICH WOULD RESULT IN SUBSTANTIAL DILUTION.

Our Certificate of Incorporation authorizes the issuance of a maximum of
40,000,000 shares of common stock and a maximum of 500,000 shares of preferred
stock. Any merger or acquisition effected by us may result in the issuance of
additional securities without shareholder approval and may result in
substantial dilution in the percentage of our common stock held by our then
existing shareholders. Moreover, the common stock issued in any such merger or
acquisition transaction may be valued on an arbitrary or non-arm's-length basis
by our management, resulting in an additional reduction in the percentage of
common stock held by our then existing shareholders. Our Board of Directors
has the power to issue any or all of such authorized but unissued shares
without shareholder approval. To the extent that additional shares of common
stock or preferred stock are issued in connection with a business combination
or otherwise, dilution to the interests of our shareholders will occur and the
rights of the holders of common stock might be materially adversely affected.

WE CANNOT ASSURE YOU THAT FOLLOWING A BUSINESS COMBINATION WITH AN OPERATING
BUSINESS, OUR COMMON STOCK WILL BE LISTED ON NASDAQ OR ANY OTHER SECURITIES
EXCHANGE.

Following a business combination, we may seek the listing of our common stock
on NASDAQ or the American Stock Exchange. However, we cannot assure you that
following such a transaction, we will be able to meet the initial listing
standards of either of those or any other stock exchange, or that we will be
able to maintain a listing of our common stock on either of those or any other
stock exchange. After completing a business combination, until our common
stock is listed on the NASDAQ or another stock exchange, we expect that our
common stock would be eligible to trade on the OTC Bulletin Board, or another
over-the-counter quotation system," where our shareholders may find it more
difficult to dispose of shares or obtain accurate quotations as to the market
value of our common stock. In addition, we would be subject to an SEC rule
that, if it failed to meet the criteria set forth in such rule, imposes various
practice requirements on broker-dealers who sell securities governed by the
rule to persons other than established customers and accredited investors.
Consequently, such rule may deter broker-dealers from recommending or selling
our common stock, which may further affect its liquidity. This would also make
it more difficult for us to raise additional capital following a business
combination. Additionally, there can be no assurances that we will be able to
obtain listing on the OTC Bulletin Board, which failure could cause our common
stock become worthless.

WE HAVE PREFERRED STOCK AUTHORIZED, WHICH PREFERRED STOCK MAY BE ISSUED BY OUR
BOARD OF DIRECTORS WITHOUT FURTHER SHAREHOLDER APPROVAL AND WHICH MAY HAVE
RIGHTS AND PREFERENCES GREATER THAN OUR COMMON STOCK.

Our Certificate of Incorporation authorizes the issuance of up to 500,000
shares of preferred stock with designations, rights and preferences determined
from time to time by its Board of Directors. Accordingly, our Board of
Directors is empowered, without shareholder approval, to issue preferred stock
with dividend, liquidation, conversion, voting, or other rights which could
adversely affect the voting power or other rights of the holders of the common
stock. In the event of issuance, the preferred stock could be utilized, under
certain circumstances, as a method of discouraging, delaying or preventing a
change in control of the Company. Although we have no present intention to
issue any shares of its authorized preferred stock, there can be no assurance
that the Company will not do so in the future.

Item 2. PROPERTIES

Our corporate office is currently at the offices of our chief executive officer
in Houston, Texas.

Item 3. LEGAL PROCEEDINGS

We are not aware of any material pending legal proceeding by or about us.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Item 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Our common stock is currently traded on the over-the-counter (OTC) market and
is quoted on the Pink Sheets under the symbol "BISA."

As of March 31, 2025, the last sales price for the common stock was $0.0151
and we believe there were approximately 1,000 beneficial holders of our
common stock.

We have not paid, and do not currently intend to pay, cash dividends on our
common stock. The current policy of our Board of Directors is to retain
earnings, if any, to provide funds for operation and expansion of our business.
Such policy will be reviewed by our Board of Directors from time to time in
light of, among other things, our earnings and financial position.

Item 6. SELECTED FINANCIAL DATA

As a smaller reporting company, we are not required to provide the
information required by this Item.

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussions contain forward-looking information. Readers are
cautioned that such information involves risks and uncertainties, including
those created by general market conditions, competition and the possibility of
events may occur which limit our ability to maintain or improve our operating
results or execute our primary growth strategy. Although we believe that the
assumptions underlying the forward-looking statements are reasonable, any of
the assumptions could be inaccurate, and there can therefore be no assurance
that the forward-looking statements included herein will prove to be accurate.
The inclusion of such information should not be regarded as a representation by
us or any other person that our objectives and plans will be achieved.

The following discussion should be read in conjunction with the financial
statements and notes thereto included elsewhere herein.

CURRENT PLAN OF OPERATIONS

Our current business objective for the next 12 months is to investigate and, if
such investigation warrants, acquire a target company or business seeking the
perceived advantages of being a publicly held corporation. Our principal
business objective for the next 12 months and beyond will be to achieve long-
term growth potential through a combination with a business rather than
immediate, short-term earnings. We will not restrict our potential candidate
target companies to any specific business, industry or geographical location
and, thus, may acquire any type of business.

We do not currently engage in any business activities that provide us with
positive cash flows. As such, the costs of investigating and analyzing
business combinations for the next approximately 12 months and beyond will be
paid with our current cash on hand and through funds from financing to be
obtained.

During the next 12 months we anticipate incurring costs related to filing of
Exchange Act reports and costs relating to consummating an acquisition.

We believe we will be able to meet these costs with our current cash on hand
and additional amounts, as necessary, to be loaned to or invested in us by
our stockholders or other investors.

We may consider a business which has recently commenced operations, is a
developing company in need of additional funds for expansion into new products
or markets, is seeking to develop a new product or service, or is an
established business which may be experiencing financial or operating
difficulties and is in need of additional capital. In the alternative, a
business combination may involve the acquisition of, or merger with, a company
which does not need substantial additional capital, but which desires to
establish a public trading market for its shares, while avoiding, among other
things, the time delays, significant expense, and loss of voting control which
may occur in a public offering.

Any target business that is selected may be a financially unstable company or
an entity in its early stages of development or growth, including entities
without established records of sales or earnings. In that event, we will be
subject to numerous risks inherent in the business and operations of
financially unstable and early stage or potential emerging growth companies.
In addition, we may effect a business combination with an entity in an industry
characterized by a high level of risk, and, although our management will
endeavor to evaluate the risks inherent in a particular target business, there
can be no assurance that we will properly ascertain or assess all significant
risks.

We anticipate that the selection of a business combination will be complex and
extremely risky. Because of general economic conditions, rapid technological
advances being made in some industries and shortages of available capital, our
management believes that there are numerous firms seeking even the limited
additional capital which we will have and/or the perceived benefits of becoming
a publicly traded corporation. Such perceived benefits of becoming a publicly
traded corporation include, among other things, facilitating or improving the
terms on which additional equity financing may be obtained, providing liquidity
for the principals of and investors in a business, creating a means for
providing incentive stock options or similar benefits to key employees, and
offering greater flexibility in structuring acquisitions, joint ventures and
the like through the issuance of stock. Potentially available business
combinations may occur in many different industries and at various stages of
development, all of which will make the task of comparative investigation and
analysis of such business opportunities extremely difficult and complex.

Liquidity and Capital Resources

At December 31, 2024, we had a working capital deficit of $4,994,685 compared
to working capital deficit of $4,811,257 at December 31, 2023. The increase in
the working capital deficit is due primarily to the increase in accrued
liabilities. We had shareholders' deficit of $4,994,685 at December 31, 2024.

Net cash used in operating activities was $0 for 2024 compared to $0 for 2023.

We had no financings in 2024 and 2023.

We have incurred operating losses from inception through December 31, 2024. We
incurred operating losses of $15,623 in 2024 and $15,622 in 2023. At
December 31, 2024, we had an accumulated deficit of $18,955,933.

Management believes that we will be able to achieve a satisfactory level of
liquidity to meet our business plan and capital needs for the next 12 months.
Management believes we have the ability to obtain additional financing from key
officers, directors and certain investors. However, there can be no assurance
that we will be able to generate sufficient liquidity to maintain our
operations.

At December 31, 2024, we had cash of $2,976. We have limited cash resources
available and have obligations due and past due.

Critical Accounting Policies

Our financial statements have been prepared in accordance with accounting
principals generally accepted in the United States. The preparation of these
financial statements requires us to make estimates and judgments that affect
the reported amounts of assets, liabilities, revenues and expenses, and related
disclosure of any contingent assets and liabilities. On an on-going basis, we
evaluate our estimates, including those related to uncollectible receivable,
investment values, income taxes, the recapitalization and contingencies. We
base our estimates on various assumptions that we believe to be reasonable
under the circumstances, the results of which form the basis for making
judgments about 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.

Item 8. FINANCIAL STATEMENTS

The information required hereunder is included in this report as set forth in
the "Index to Consolidated Financial Statements" on page F-1.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

Item 9A. CONTROLS AND PROCEDURES.

(a) As of December 31, 2024, we carried out an evaluation of the effectiveness
of the design and operation of our disclosure controls and procedures pursuant
to Exchange Act Rule 13a-15. This evaluation was done under the supervision and
with the participation of our management, including our Chief Executive Officer
and Chief Financial Officer. Based on his evaluation of our disclosure controls
and procedures (as defined in the Exchange Act Rule 13a-15e), our Chief
Executive Officer and Chief Financial Officer has concluded that as of
December 31, 2024 such disclosure controls and procedures were effective.

Our management is responsible for establishing and maintaining adequate
internal control over financial reporting for the Company. Internal control
over financial reporting is a process to provide reasonable assurance regarding
the reliability of our financial reporting for external purposes in accordance
with accounting principles generally accepted in the United States of America.
Internal control over financial reporting includes maintaining records that in
reasonable detail accurately and fairly reflect the transactions and
dispositions of our assets; provide reasonable assurance that transactions are
recorded as necessary for preparation of our financial statements; provide
reasonable assurance that receipts and expenditures of company assets are made

in accordance with management authorization; and provide reasonable assurance
that unauthorized acquisition, use or disposition of company assets that could
have a material effect on our financial statements would be prevented or
detected on a timely basis. Because of its inherent limitations, internal
control over financial reporting is not intended to provide absolute assurance
that a misstatement of our financial statements would be prevented or detected.

Pursuant to Rule 13a-15d of the Exchange Act, management conducted an
evaluation of the effectiveness of our internal control over financial
reporting based on the framework in Internal Control - Integrated Framework
(2013) and Internal Control Over Financial Reporting - Guidance for Smaller
Public Companies (2006), issued by the Committee of Sponsoring Organizations of
the Treadway Commission. Based on this evaluation, management concluded that
our internal control over financial reporting was effective as of December 31,
2024.

(b) There have been no changes in internal control over financial reporting
that occurred during the last fiscal quarter that have materially affected, or
are reasonably likely to materially affect our internal controls over financial
reporting.

Item 9B. OTHER INFORMATION.

None.

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Executive Officers and Directors

The following table gives certain information with respect to our
executive officers and directors:

 Name Age Position
 ---- --- --------
 David A. Grossman (3) 61 Chairman of the Board, Chief Executive
 Officer, Chief Financial Officer,
 Corporate Secretary and Director
 Paul R. Gregory (1)(2) 84 Director
 Ted Reynolds (1)(2) 94 Director
___________________________
(1) Member of the Audit Committee.
(2) Member of the Compensation Committee.
(3) Member of the Nominating Committee.

Mr. Robert L. Knauss has served as Chairman of the Board since our inception in
March 1991 until his passing in October 2024.

Mr. Grossman has served as Chief Financial Officer since September 1997 and as
Corporate Secretary since December 1996. He was appointed Chief Executive
Officer in February 2010 and as Chairman in October 2024. He served as
President from November 1998 until May 2000 when he resigned as a full-time
employee of Baltic. He served as comptroller from November 1995 until
September 1997. Mr. Grossman was chief financial officer of LynkTel, Inc. from
May 2000 to January 2003. From February 2003 to January 2005, he served as
operations controller of BHP Billiton. He was an audit partner of Malone &
Bailey, PC from 2005 to 2007. Mr. Grossman was an audit partner with GBH CPAs,
PC from 2007 to 2018 and an audit partner with Marcum LLP from 2017 to 2024.
Prior to joining Baltic, he was an audit senior manager for Deloitte & Touche
LLP. Mr. Grossman is a certified public accountant and graduated from Indiana
University in 1985 with a BS degree in accounting.

Dr. Gregory served as our treasurer, on a part-time basis, since our inception
in March 1991 until August 1995. Dr. Gregory is the Cullen Professor of
Economics and Finance at the University of Houston where he has been a faculty
member since 1972. He was involved in creating the Petroleum Legislation
Project with Russia and he served as project coordinator of the Russian
Securities Project in conjunction with the Russian State Committee for Property
Management and the various Russian stock exchanges. He serves as advisor to a
number of major United States corporations on their Russian business
activities, and has been active in the former Soviet Union for 25 years. He
has served as chairman of the board of Amsovco International Consultants, Inc.
since 1988. He has also served as a consultant to the World Bank. Dr. Gregory
graduated from Harvard University with a Ph. D. in economics and is fluent in
Russian and German. Dr. Gregory is the author of a text on the Soviet and
Russian economies.

Mr. Reynolds has been president of Houston Grain Company since 1983 and vice
president of Mid-America Grain Commodities since 1976. He also formed and is
owner of Red River Grain Company. He is actively involved in various
international business transactions. Mr. Reynolds is a graduate of Texas
Christian University.

Directors hold office until their successors are elected and qualified. The
Audit Committee reviews and reports to the Board on the financial results of
our operations and the results of the audit services provided by our
independent accountants, including the fees and costs for such services. The
Compensation Committee reviews compensation paid to management and recommends
to the Board of Directors appropriate executive compensation. The Nominating
Committee selects director nominees for election to the Board of Directors.
Officers are elected annually and serve at the discretion of the Board of
Directors. There is no family relationship between or among any of our
directors and executive officers.

Director Compensation

No compensation has been provided to our directors for 2024 and 2023.

Compliance with Section 16(a) of the Exchange Act

Section 16(a) of the Exchange Act requires our directors and executive officers
and persons who own more than ten percent of a registered class of our equity
securities to file reports with the Securities and Exchange Commission relating
to transactions and holdings in our common stock. We believe that during the
fiscal year ended December 31, 2024 all such filing requirements were satisfied.

Item 11. EXECUTIVE COMPENSATION

The following table sets forth information with respect to our chief executive
officer and chief financial officer. No other employee received total annual
salary and bonus for the fiscal year ended December 31, 2024 in excess of
$100,000.

 Summary Compensation Table

 Long-Term Compensation
 ------------------------
 Annual Compensation (1)(2) Securities
 --------------------------------- Underlying
Name and Principal Fiscal All Other Restricted Options
Position Year Salary Bonus Compensation Stock Awards and Warrants

David Grossman 2024 $ 0 $ 0 $ 0 $ 0 0
 Chief Executive 2023 0 0 0 0 0
 Officer and Chief
 Financial Officer

 (1) None of the named executive officers received perquisites or other
 benefits valued in excess of 10% of the total of reported annual salary
 and bonus.
 (2) Unpaid salaries of $12,000 for Mr. Grossman for each of the years 2024
 and 2023 have been accrued.

Stock Options

As of March 31, 2025, no options were outstanding.

The following table shows, as to the named executive officers, information
concerning individual grants of stock options during 2024.

 Option Grants in Last Fiscal Year

 Number of Percentage of Total
 Securities Options/Warrants
 Underlying Granted
 Options/Warrants Employees in Exercise Price Expiration
Name Granted 2024 Per Share Date

David A. Grossman 0 0.0% N/A N/A

The following table shows, as to the named executive officers, information
concerning aggregate stock option and warrant exercises during 2024 and the
stock option and warrant values as of December 31, 2024.

 Aggregated Option and Warrant Exercises in Last Fiscal Year
 and Year End Option and Warrant Values

 Number of Securities
 Underlying Value of Unexercised
 Unexercised In-the-Money
 Options/Warrants at Options/Warrants at
 Shares December 31, 2024 December 31, 2024
 Acquired on Value Exercisable/ Exercisable/
Name Exercise Realized Unexercisable Unexercisable

David A. Grossman 0 0 0 / 0 $0 / $0

We have not established, nor does it provide for, long-term incentive plans or
defined benefit or actuarial plans.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth, as of March 31, 2025, certain information with
respect to the beneficial ownership of our Common Stock by (i) each person
known to us who beneficially owns more than 5% of our outstanding Common Stock;
(ii) each director; (iii) each named executive officer; and (iv) all directors
and officers as a group:

 Shares Beneficially Owned
Name of Beneficial Owner Number Percent

Nicol Family Partnership (1) 1,500,000 13.67%
Angela Knauss (2) 1,072,431 (3) 9.52
Citibank (Switzerland) (1) 1,000,000 9.11
Paul R. Gregory 515,369 4.70
David A. Grossman 220,084 (4) 1.98
Ted Reynolds 83,000 0.76
All directors and executive officers 818,453 (5) 7.37

 (1) The business address for Citibank (Switzerland) is P. O. Box 244, Zurich,
 Switzerland CH-8021. The business address for the Nicol Family
 Partnership is P.O. Box 278, Grapeland, Texas 75844.
 (2) Angela Knauss is the widow of Robert L. Knauss, our founder and former
 Chairman of the Board.
 (3) Includes an aggregate of 284,227 shares subject to Series A Preferred
 Stock that are currently exercisable/convertible.
 (4) Includes an aggregate of 135,417 shares subject to Series A Preferred
 Stock that are currently exercisable/convertible.
 (5) Includes an aggregate of 135,417 shares subject to Series A Preferred
 Stock that are currently exercisable/convertible.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Management believes that all prior related party transactions are on terms no
less favorable to us as could be obtained from unaffiliated third parties. All
ongoing and future transactions with such persons, including any loans to such
persons, will be approved by a majority of disinterested, independent outside
members of our Board of Directors.

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

We qualify as an inactive entity pursuant to Sec. 210.3-11 of Regulation S-X.
Therefore, we have not engaged an independent registered public accountant for
any services for the years ended December 31, 2024 and 2023.

Item 15. EXHIBITS

Exhibits identified in parentheses below, on file with the Securities and
Exchange Commission, are incorporated herein by reference as exhibits hereto.

 Exhibit No. Identification of Exhibit

 2.1 Plan and Agreement of Recapitalization (Exhibit 2.1 to
 Form SB-2, No. 33-74654-D)

 3.1(a) Restated Articles of Incorporation (Exhibit 3.1(a) to
 Form SB-2, No. 33-74654-D)

 3.1(b) Amended Articles of Incorporation (Exhibit 3.1(b) to
 Form SB-2, No. 33-74654-D)

 3.1(c) Articles of Correction (Exhibit 3.1(c) to Form SB-2,
 No. 33-74654-D)

 3.2 Bylaws (Exhibit 3.2 to Form SB-2, No. 33-74654-D)

 3.3 Statement of Resolution Establishing and Designating a Series
 of Shares of the Company, Series A Cumulative Preferred Stock,
 $10.00 par value (Exhibit 3.3 to Form SB-2, No. 33-74654-D)

 3.4 Certificate of Elimination of Shares Designated as Series A
 Cumulative Preferred Stock (Exhibit 3.4 to Form 10-QSB for
 the quarter ended June 30, 1995, File No. 0-26588)

 3.5 Certificate of the Designation, Preference, Rights and
 Limitations of Convertible Redeemable Series A Preferred Stock
 (Exhibit 3.5 to Form 10-QSB for the quarter ended June 30,
 1995, File No. 0-26588)

 4.1 Common Stock Specimen (Exhibit 4.1 to Form SB-2,
 No. 33-74654-D)

 10.1 Statement of the Designation, Preferences, Rights and
 Limitations of Series B Convertible Redeemable Preferred Stock,
 as amended (Exhibit 10.45 to Form SB-2, File No. 333-860)

 31 * Chief Executive Officer and Chief Financial Officer
 Certification pursuant to Section 302 of the Sarbanes-Oxley Act
 of 2002

 32 * Chief Executive Officer and Chief Financial Officer
 Certification pursuant to Section 906 of the Sarbanes-Oxley Act
 of 2002

* Attached hereto.

 SIGNATURES

In accordance with the requirements of Section 13 or 15(d) of the Exchange Act,
the registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on April 15, 2025.

 /s/ David A. Grossman
 -------------------------------------------------
 DAVID A. GROSSMAN
 Chief Executive Officer and
 Chief Financial Officer

Pursuant to the requirements of the Exchange Act, this report has been
signed by the following persons on behalf of the registrant and in the
capacities indicated as of April 15, 2025:

Signature Title

/s/ David A. Grossman Chairman of the Board
----------------------- Chief Executive Officer,
DAVID A. GROSSMAN Chief Financial Officer
 Corporate Secretary and Director
 (Principal Executive Officer and
 Principal Financial and Accounting
 Officer)

 * Director
-----------------------
PAUL R. GREGORY

 * Director
-----------------------
TED REYNOLDS

* Pursuant to Power of Attorney
By: /s/ David A. Grossman
Name: David A. Grossman
Title: Attorney-in-Fact

 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 Page

Consolidated balance sheets at December 31, 2024 and 2023 F-2

Consolidated statements of operations for the years ended
 December 31, 2024 and 2023 F-3

Consolidated statements of shareholders' deficit for the
 years ended December 31, 2024 and 2023 F-4

Consolidated statements of cash flows for the years ended
 December 31, 2024 and 2023 F-6

Notes to consolidated financial statements F-7

FINANCIAL STATEMENTS OF AN INACTIVE REGISTRANT

Pursuant to Sec. 210.3-11 of Regulation S-X, Baltic International USA, Inc.
qualifies as an inactive entity, meeting all of the following conditions:

(a) Gross receipts from all sources for the fiscal year are not in excess of
 $100,000;

(b) We have not purchased or sold any of our own stock, granted options
 therefore, or levied assessments upon outstanding stock;

(c) Expenditures for all purposes for the fiscal year are not in excess of
 $100,000;

(d) No material change in the business has occurred during the fiscal year,
 including any bankruptcy, reorganization, readjustment or succession or
 any material acquisition or disposition of plants, mines, mining
 equipment, mine rights or leases; and

(e) No exchange upon which the shares are listed, or governmental authority
 having jurisdiction, requires the furnishing to it or the publication of
 audited financial statements.

Accordingly, the consolidated financial statements of Baltic International USA,
Inc. are unaudited.

 Consolidated Balance Sheets

 December 31, December 31,
ASSETS

CURRENT ASSETS
 Cash and cash equivalents $ 2,976 $ 2,976
 Total assets $ 2,976 $ 2,976
 =========== ===========

LIABILITIES AND SHAREHOLDERS' DEFICIT

CURRENT LIABILITIES
 Accounts payable and accrued liabilities $ 588,876 $ 563,544
 Dividends payable 4,339,304 4,181,208
 Short-term debt 69,481 69,481
 Total current liabilities 4,997,661 4,814,233

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT
Preferred stock:
 Series A, convertible, $10 par value,
 499,930 shares authorized, 123,000 shares
 issued and outstanding 1,230,000 1,230,000
 Series B, convertible, $10 par value,
 $25,000 stated value, 70 shares authorized,
 14 shares issued and outstanding 350,000 350,000
 Common stock, $0.01 par value, 40,000,000 shares
 authorized, 16,629,229 shares issued and
 10,975,760 shares outstanding 166,292 166,292
 Additional paid-in capital 13,019,530 13,019,530
 Accumulated deficit (18,955,933) (18,772,505)
 Treasury stock, at cost (804,574) (804,574)
 Total shareholders' deficit (4,994,685) (4,627,952)
 Total liabilities and shareholders' deficit $ 2,976 $ 2,976
 =========== ===========

 Consolidated Statements of Operations

 Year Ended December 31,

REVENUES $ - $ -

OPERATING EXPENSES:
 Personnel and consulting 13,763 13,762
 Other general and administrative 1,860 1,860
 Total operating expenses 15,623 15,622

LOSS FROM OPERATIONS (15,623) (15,622)

OTHER INCOME (EXPENSE):
 Interest expense (9,709) (9,683)
 Total other income (expense) (9,709) (9,683)

INCOME (LOSS) BEFORE INCOME TAXES (25,332) (25,305)

INCOME TAX EXPENSE - -
NET INCOME (LOSS) $ (25,332) $ (25,305)

INCOME (LOSS) PER SHARE AMOUNTS:
Basic and diluted $ (0.02) $ (0.02)

WEIGHTED AVERAGE OUTSTANDING SHARES:
Basic and diluted 10,975,760 10,975,760

 Consolidated Statements of Shareholders' Deficit

 Preferred Stock
 Series A Series B Common Stock
 Warrants Shares Amount Shares Amount Shares Amount

Balance, December 31, 2022 $ - 123,000 $1,230,000 14 $ 350,000 16,629,229 $166,292
Net loss
Dividends on preferred stock:
 Series A, $1.00 per share
 Series B, $2,500 per share
 ---------- -------- ---------- --- ---------- ---------- -------
Balance, December 31, 2023 $ - 123,000 $1,230,000 14 $ 350,000 16,629,229 $166,292
 ========== ======== ========== === ========== ========== =======
Net loss
Dividends on preferred stock:
 Series A, $1.00 per share
 Series B, $2,500 per share
 ---------- -------- ---------- --- ---------- ---------- -------
Balance, December 31, 2024 $ - 123,000 $1,230,000 14 $ 350,000 16,629,229 $166,292
 ========== ======== ========== === ========== ========== =======

 Consolidated Statements of Shareholders' Deficit
 (Continued)

 Additional
 paid-in Accumulated Treasury stock
 capital deficit Shares Amount Total

Balance, December 31, 2022 $13,019,530 $(18,589,200) 5,653,469 $(804,574) $(4,627,952)
Net loss (25,305) (25,305)
Dividends on preferred stock:
 Series A, $1.00 per share (123,000) (123,000)
 Series B, $2,500 per share (35,000) (35,000)
 ----------- ------------ ----------- --------- -----------
Balance, December 31, 2023 $13,019,530 $(18,772,505) 5,653,469 $(804,574) $(4,811,257)
 =========== ============ =========== ========= ===========
Net loss (25,332) (25,332)
Dividends on preferred stock:
 Series A, $1.00 per share (123,000) (123,000)
 Series B, $2,500 per share (35,096) (35,096)
 ----------- ------------ ----------- --------- -----------
Balance, December 31, 2024 $13,019,530 $(18,955,933) 5,653,469 $(804,574) $(4,994,685)
 =========== ============ =========== ========= ===========

 Consolidated Statements of Cash Flows

 Year Ended December 31,

Cash flows from operating activities:
 Net loss $ (25,332) $ (25,305)
 Adjustments to reconcile net loss to
 net cash used in operating activities:
 Change in operating assets and liabilities:
 Accounts payable and accrued liabilities 25,332 25,305
 ----------- -------------
 Net cash used by operating activities - -
 ----------- -------------

Net change in cash and cash equivalents - -
Cash and cash equivalents, beginning of year 2,976 2,976
 ----------- -------------
Cash and cash equivalents, end of year $ 2,976 $ 2,976
 =========== =============

Supplemental disclosures:
 Interest paid $ - $ -
 Income taxes paid $ - $ -

Noncash investing and financing activities:
 Dividends on preferred stock declared and
 unpaid $ 158,096 $ 158,000

 Notes to Consolidated Financial Statements

NOTE 1 - BUSINESS OPERATIONS AND FINANCIAL CONDITION

Business operations

Baltic International USA, Inc. ("Baltic"), a Texas corporation, was organized
on March 1, 1991 to identify, form and participate in aviation-related and
other business ventures in the former Soviet Union.

Financial condition

We have incurred operating losses since inception through December 31, 2024.
We incurred operating losses of $15,623 in 2024 and $15,622 in 2023. At
December 31, 2024, we had an accumulated deficit of $18,955,933. Net cash
used by operating activities was $0 in 2024 and $0 in 2023. At December 31,
2024, we had cash of $2,976. We currently have limited cash resources
available and have obligations due and past due.

Management believes that we will be able to achieve a satisfactory level of
liquidity to meet our business plan and capital needs for the next 12 months.
Management believes we have the ability to obtain additional financing
from key officers, directors and certain investors. However, there can be no
assurance that we will be able to generate sufficient liquidity to maintain our
operations. In addition, management believes that we can continue to defer
certain amounts payable by us that are either currently due or past due.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The consolidated financial statements include the accounts of Baltic and our
wholly owned subsidiary, Advanced Reclamation Company, L.L.C. ("ARC"). All
significant intercompany accounts and transactions have been eliminated.

Revenue recognition

Revenues are recognized when realizable and earned and expenses are recognized
when the goods and services are acquired or provided.

Cash and cash equivalents

For purposes of the statement of cash flows, we consider all highly liquid
investments purchased with original maturities of three months or less to be
cash equivalents.

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 of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

Concentration of credit risk

Financial instruments that potentially subject us to concentrations of credit
risk consist of cash, cash equivalents and trade receivables. We consider such
risk in placing our cash and cash equivalents in financial institutions and
other instruments. We perform ongoing credit evaluations of our customers'
financial condition.

Contingencies

Liabilities for loss contingencies, including environmental remediation costs,
arising from claims, assessments, litigation, fines and penalties and other
sources are recorded when it is probable that a liability has been incurred and
the amount of the assessment and/or remediation can be reasonably estimated.

Income taxes

Deferred income taxes result from temporary differences between the financial
statements and tax basis of assets and liabilities.

Income (loss) per common share

Basic earnings per share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding during
the period. Diluted earnings per share reflects the potential dilution that
could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in the earnings. Stock warrants and options are
considered to be dilutive for earnings per share purposes if the average market
price during the period ending on the balance sheet date exceeds the exercise
price and we had earnings from continuing operations for the period.

Subsequent events

We evaluated events occurring from the end of our fiscal year, December 31,
2024, through the date when the financial statements were issued for disclosure
consideration.

New accounting pronouncements

Recently issued or adopted accounting pronouncements are not expected to have
have, or did not have, a material effect on our financial position or results
of operations.

NOTE 3 - DEBT

Debt consists of the following:

 December 31,

Notes payable to officers and directors,
unsecured, interest rate of 13%, due on demand $ 69,481 $ 69,481
Total debt 69,481 69,481
Less short-term debt (69,481) (69,481)
Long-term debt, net $ - $ -

NOTE 4 - INCOME TAXES

The components of net deferred tax assets consisted of the following:

 December 31,

Deferred tax assets:
Net operating loss carryforward $ 101,888 $ 99,943
Valuation allowance (101,888) (99,943)
Net deferred tax assets $ - $ -

Differences between the effective income tax rate and the statutory federal
income tax rate were primarily the result of net operating losses for which
valuation reserves have been fully provided.

As of December 31, 2024, we had net operating loss carryforwards of
approximately $485,000 available to offset future taxable income. These
carryforwards will expire at various dates beginning in 2025.

NOTE 5 - PREFERRED STOCK

Effective June 30, 1995, we created our Convertible Redeemable Series A
Preferred Stock ("Series A Preferred Stock"), 500,000 shares authorized $10 par
value, and issued 123,000 shares thereof upon conversion of $1,230,000 in
aggregate principal amount of long-term indebtedness. The Series A Preferred
Stock: (i) is redeemable only at our option and only during the thirty day
period beginning on December 31 and June 30 of each year that the Series A
Preferred Stock is outstanding; (ii) is convertible at any time by the holders
thereof at the initial conversion price of $2 per share; (iii) carries a
liquidation preference of $10 per share; (iv) is non-voting; and (v) accrues
cumulative cash dividends per share at an annual rate equal to 10% of the
stated value per share, payable in equal quarterly installments. The voting
rights of the holders of our common stock will be diluted upon conversion of
the Series A Preferred Stock and the holders of the Series A Preferred Stock
will have preferential dividend and liquidation rights over the holders of
common stock. The conversion price of the Series A Preferred Stock is
adjustable for certain issuances of securities at less than 90% of the
conversion price. At December 31, 2024, the conversion price was $0.84 per
share.

Effective February 22, 1996, we created our Series B Convertible Redeemable
Preferred Stock ("Series B Preferred Stock"), 70 shares authorized $25,000
stated value per share and $10 par value, and issued 50 shares thereof for net
proceeds of $1,090,200 in February and March 1996. The Series B Preferred
Stock: (i) is not entitled to receive dividends; (ii) is convertible at any
time by the holders thereof on or after the 55th day after the date that the
shares were issued at the conversion price of the lesser of $2 per share or 82%
of the 5-day average closing bid price of our common stock; (iii) is non-
voting; (iv) carries a liquidation preference of $25,000 per share and an
amount equal to 10% per annum since the issuance date after payment in full of
the Series A Preferred Stock; and (v) is redeemable only at our option if the
conversion price is $0.75 or less per share. In October 1996, we amended the
conversion price to the lesser of $0.55 per share or 82% of the 5-day average
closing bid price of our Common Stock. During 2024 and 2023, there were no
conversions of Series B Preferred Stock into shares of our common stock.

NOTE 6 - LOSS PER SHARE

Supplemental disclosures for income (loss) per share are as follows:

 Year ended December 31,
Basic and diluted
Net income (loss) to be used to compute loss
 per share:
 Net income (loss) $ (25,332) $ (25,305)
 Less preferred dividends (158,096) (158,000)
Net loss attributable to common shareholders $ (183,428) $ (183,305)

Weighted average number of shares:
 Average common shares outstanding 10,975,760 10,975,760

Basic and diluted loss per common share $ (0.02) $ (0.02)

NOTE 7 - COMMITMENTS AND CONTINGENCIES

Rent expense under operating leases was $0 and $0 for 2024 and 2023,
respectively. We have no future minimum lease payments under noncancelable
operating leases as of December 31, 2024.

We are from time to time party to litigation in the ordinary course of
business. There are currently no pending legal proceedings that, in
management's opinion, would have a material adverse effect on our operating
results or financial position.