Company: AHRO
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001477932-25-002774
Chunk: 1187

Company: Authentic Holdings, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 1187
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220   660,910 

Operating expenses increased by $336,310, or 50%, during the year ended December 31, 2024, compared to the year ended in 2023. Listed below are the major changes to operating expenses:

General and administrative expenses increased by $204,000, or 118%, for the year ended December 31, 2024, compared to the year ended in 2023. The increase resulted from increased royalty of $87,000 due under the terms of the Maybacks acquisition agreement and increased salary expense of $88,000. Beginning in October 2024, the Company began accruing a salary expense of $350,000 per annum for the Chris Giordano, the Company President.

Depreciation and amortization increased by $224,000, or 75%, for the year ended December 31, 2024, compared to the year ended in 2023, primarily due to the amortization of the customer list related to the Maybacks acquisition and the license agreement executed with Goliath.

Professional and legal fees decreased by $40,000, or 30%, for the year ended December 31, 2024, compared to the year ended in 2023, primarily due to a decrease of $52,000 in other consulting fees which were offset by an increase in audit fees of $24,000.

Research and development decreased by $52,000, or 92%, for the year ended December 31, 2024, compared to the year ended in 2023, primarily due to the development of blockchain built out and NFT platform service product lines were completed during 2023.

Other Income (Expenses)

Other expenses were $594,210 for the year ended December 31, 2024, compared to $997,545 for the year ended in 2023. During 2024, other expenses resulted primarily from the write-off of advances in the amount of $625,000, interest expense of $294,330 and a loss on the settlement of notes in the amount of $170,813. These other expenses were offset in part by a gain in the valuation of derivative liabilities of $495,933. During 2023, other expenses consisted primarily of interest expense of $344,443, the loss on debt conversion of $452,472, derivative expense of $239,028, offset by the loss in the valuation of derivative liabilities of $24,567 and the gain on the settlement