Company: FMHS
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001096906-25-000995
Chunk: 3

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-06-23
Form: 10-K
Item: Item 7
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ITEM 7. MANAGEMENT’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited Consolidated Financial Statements and related notes included in this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed or implied in these forward-looking statements due to various factors in our Form 10-K and other filings with the Securities and Exchange Commission.

Overview

We are focused on integrating technology, IP, and consumer products- including beverages into our company in order to diversify into new revenue opportunities to augment our prior portfolio of intellectual property, and previous Web3 division. We launched the Web3 division in December 2021 to facilitate licensing opportunities between established wellness brands and holders of influential digital collectibles. Revenues from this initiative have been limited, and we have ceased pursuing this line of business to focus on other strategic opportunities. We do not currently expect to generate significant revenues from existing operations until such a strategic opportunity is completed.

On September 10, 2024, we entered into a Share Exchange Agreement (“ SEA”) with Thrown, LLC (“ Thrown”) and its members. Thrown is a beverage company and its initial product is Good Game by T-Pain, a nootropic esports beverage packaged in 2-ounce servings. Under the SEA, we will acquire all the membership interests of Thrown in exchange for 5,130,000 newly issued shares of common stock. This represents approximately 25% of our total issued and outstanding shares following the closing of the transaction. As of June 20, 2025, the transaction has not closed, and discussions with Thrown management are ongoing. Reference is made to Notes 3 and 13 in the Consolidated Financial Statements included under Item 8 in this Report.

On June 9, 2025, the Company entered into a non-binding term sheet with Ledgewood Holdings, LLC (“ Ledgewood”), a multi-unit franchise operator with approximately $31 million in trailing twelve-month revenue, outlining a proposed acquisition through the issuance of up to 31,000,000 shares of the Company’s common stock. The contemplated transaction includes both time- and performance-based equity vesting, governance rights for Ledgewood, and monthly operating support contributions to the Company tied to Ledgewood’s revenue. The proposed structure also provides for Ledgewood’s continued operational control, subject