Company: AHRO
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001477932-25-002774
Chunk: 154

Company: Authentic Holdings, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 11
Chunk 154
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 between annual tests when circumstances indicate the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including identifying reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include assessing future cash flows and determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to differ from such estimates materially and affect the determination of fair value and goodwill impairment at future reporting dates. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology, and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. When certain events or changes in operating conditions occur, an impairment assessment is performed, and lives of intangible assets with determinable lives may be adjusted. We amortize the cost of our intangible assets over the 5 to 15-year estimated useful life on a straight-line basis.

 F-10Table of Contents

The following table sets forth the amortization for the intangible assets on December 31, 2024, and 2023:   December 31,  December 31,   2024  2023 License agreement $5,015,000  $5,000,000 Customer lists  7,000   7,000 Patent  12,406   12,406 Websites  11,690   10,690 Royalties  125,000   125,000    5,171,096   5,155,096 Less accumulated amortization  (886,911 )  (383,774 )  $4,284,185  $4,771,322  During 2024, the Company entered into a license agreement with the Salci Sports and Entertainment Group for a cash payment of $15,000 and acquired a website from Authentic Heroes for a cash payment of $1,000. Amortization expense amounted to $503,137 and $254,151 for the year ended December 31, 2024, and 2023, respectively.  Revenue Recognition The Company recognizes revenue from its