Company: AHRO
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001477932-25-002774
Chunk: 567

Company: Authentic Holdings, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 3
Chunk 567
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3, are as follows:   December 31,  December 31,   2024  2023 Net operating loss carryforward $39,358,905  $38,038,768 Effective tax rate  21%  21%Deferred tax asset  8,265,370   7,988,141 Less: Valuation allowance $(8,265,370 ) $(7,988,141 )Net deferred asset $-  $-  As of December 31, 2024, the Company had approximately $39 million in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2029 and 2039. NOLs generated in tax years prior to December 31, 2017, can be carryforward for twenty years, whereas NOLs generated after December 31, 2017, can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2019 through 2024 are subject to review by the tax authorities.

NOTE 10 – COMMITMENTS AND CONTINGENCIES Litigation The Company is a party to the following three pending litigation matters. The Company does not believe it has any liability, nor has it accrued any liability as of December 31, 2024, and 2023 for the following:

 F-20Table of Contents

One matter is entitled Randazzo LLC v. Avani Holdings LLC & Global Fashion Technologies, Inc. The plaintiff initiated this litigation to evict Avani Holdings LLC from its rented premises in California and to recover unpaid rent. The Company does not operate outside the premises and has never signed any leases or other documents with the plaintiff. A judgment of eviction was entered, but the Company does not operate out of the premises in question and therefore did not appear in the matter to oppose the judgment of eviction. The plaintiff is also seeking unpaid rent in the amount of $26,595. The second matter is entitled Patricia Witthuhn v. Global Fashion Technologies, Inc. The plaintiff initiated this litigation to collect wages allegedly due pursuant to her employment with Avani Holdings LLC. The Company never hired Ms. Witthuhn and never acquired Avani Holdings, LLC. Consequently, there is no