Company: AHRO
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001477932-25-002774
Chunk: 75

Company: Authentic Holdings, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 75
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ured Notes Payable $116,500  $40,000 Accrued Interest  3,061   1,022 Repayments  (17,500)  -   $102,061  $41,022  Self-Liquidating Promissory Notes Self-liquidating promissory notes consist of various notes accruing interest at 5%.  The following summarizes these notes:   December 31,2024  December 31,2023 Self-liquidating promissory notes $100,000  $150,000 Accrued interest  33,333   42,500   $133,333  $192,500 

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.

 F-17Table of Contents

The following table summarizes the derivative liabilities included in the balance sheet on December 31, 2024: Fair Value Measurements Using Significant Observable Inputs (Level 3)     Balance - December 31, 2022 $1,608,485 Net Loss (gain) on change in fair value of the derivative  24,567 Balance - December 31, 2023 $1,633,052 Net Loss (gain) on change in fair value of the derivative  (495,933)Balance - December 31, 2024 $1,137,119 

NOTE 6 – ACQUISITIONS Maybacks Global Entertainment LLC On April 26, 2023, the “Company entered into a Membership Interest Purchase Agreement with Maybacks Global Entertainment LLC, an Arizona limited liability company (“Maybacks”), and the members of Maybacks. As a result of the transaction, Maybacks became a wholly owned subsidiary of the Company. In accordance with the terms of the Purchase Agreement, at the closing an aggregate of 100,000 shares of the Company’s newly created Series C Preferred Stock were