Company: AHRO
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001477932-25-006087
Chunk: 46

Company: Authentic Holdings, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 June 30, 2025, the Company repaid $14,000 of the principal amounts due on these notes. On June 30, 2023, the Company entered into a secured promissory note for $40,000.  The note bears interest at 5% per annum and was due on December 31, 2023.  The maturity date was subsequently extended to October 4, 2025.  The Company granted a security interest in all its assets to the noteholder.   Self-Liquidating Promissory Notes Self-liquidating promissory notes consist of various notes accruing interest at 5%. The following summarizes these notes:   June 30,  December 31,   2025  2024 Principal balances $100,000  $100,000 Accrued Interest  35,833   33,333   $135,833  $133,333  During the six months ended June 30,2024, self-liquidating promissory notes of $50,000 were exchanged for a royalty agreement, wherein the holder will receive a royalty of 5% of net sales of Maybacks. On June 30, 2025, the remaining $100,000 in self-liquidating notes were in default.

NOTE 5 – DERIVATIVE LIABILITIES The Company analyzed the conversion option for derivative accounting consideration under ASC 815, "Derivatives and Hedging," and determined that the convertible notes should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company accounts for convertible notes and warrants as a derivative liability due to there being no explicit limit to the number of shares to be delivered upon settlement of all conversion options.

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The following table summarizes the derivative liabilities included in the balance sheet on June 30, 2025: Fair Value Measurements Using Significant Observable Inputs (Level 3) Balance - December 31, 2024 $1,137,119 Net Loss (gain) on change in fair value of the derivative  312,682 Balance - June 30, 2025 $1,449,801 

NOTE 6 – ACQUISITIONS Maybacks Global Entertainment LLC On April 26,