Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 12

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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                                  4,200  
  Total                                23,974  

NOTE 11 - LITIGATION

In August 2017, the Company’s subsidiary, DTLA, entered into a Strategic Consulting Agreement (the “ SCA”) with Los Angeles Farmers, Inc. (“ LAFI”), formerly known as a medical marijuana growing and retail company. In October 2017, DTLA filed litigation in Los Angeles County Superior Court (Case No. BC681251) against LAFI and its principals, seeking to enforce its rights under the SCA. Following a confidential settlement with the principals in January 2020 and a judgment in favor of DTLA against LAFI in April 2021, a court-appointed receiver completed the sale of LAFI in April 2024.

As of April 25, 2025, the date of this report, there has been no material activity related to the matter for more than two years. The Company does not expect to recover any proceeds from the sale and is no longer pursuing any remedies. Accordingly, the matter is considered closed.

NOTE 12 - RELATED PARTY TRANSACTIONS

As discussed in Note 6, on August 12, 2024 the Company entered into an unsecured promissory note with its Chief Executive Officer in the principal amount of $4,500. The note bears interest at 20% per annum, matured on February 12, 2025, and remains unpaid as of April 25, 2025. The note is in default and is classified as a related party transaction. As of September 30, 2024 $4,500in principal and $121in accrued interest was due to the Chief Executive Officer.

As discussed in Note 7, Officers of the Company have also provided cash advances and paid Company expenses directly to fund operations. Amounts due to related parties totaled $57,978and $28,958as of September 30, 2024 and December 31, 2023, respectively. These amounts are unsecured, non-interest bearing, and due on demand.

For the nine months ended September 30, 2024, Company officers advanced $30,187to the Company and were repaid $1,167through the use of the Company’s credit card. For the comparable nine months ended September 30, 2023, Company officers advanced $2,751to the Company and were repaid $21,255in cash and $2,490 through use of the