Company: AHRO
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001477932-25-008590
Chunk: 16

Company: Authentic Holdings, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 1
Chunk 16
---
 recorded at the invoiced amount and do not bear interest. The Company has no amount recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of probable credit losses in its existing accounts receivable. Based on management’s estimate and all charges being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time. On September 30, 2025 and December 31, 2024, the Company’s accounts receivable balances totaled $98,828 and $201,628, respectively. The Company recorded an allowance for bad debts of $8,373 and $0, during the nine months ended September 30, 2025 and 2024, respectively. Concentration of Credit Risk  On September 30, 2025, receivables from 3 customers represented 97% of the accounts receivable balance. During the nine months ended September 30, 2025, 100% of sales were via direct billings to customers by the Company’s. On September 30, 2024, receivables from 3 customers represented 78% of the accounts receivable balance. During the nine months ended September 30, 2024, 80% of sales were through the Company’s agent channel. The carrying value of short-term financial instruments, including cash, restricted cash, trade accounts receivable, accounts payable, accrued expenses, and short-term debt, approximates the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturity or have short-term maturities and carry interest rates that approximate the market. The Company maintains cash balances at financial institutions insured by the FDIC. On September 30, 2025, and December 31, 2024, the Company had no amounts above the FDIC limit. Leases Effective October 1, 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing essential information about leasing arrangements. The Company adopted the new lease standard utilizing the