Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 5

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 to expense.

As of April 25, 2025, the date of this report, the SEA has not closed, and the Company and Thrown remain in discussions. See Note 14.

NOTE 4 - CONVERTIBLE NOTES PAYABLE, IN DEFAULT

Convertible notes payable is comprised of a promissory note issued to an unrelated individual with a principal amount of $45,000as of both September 30, 2024 and December 31, 2023. Principal and accrued interest were originally due in July 2018, and the note is currently in default. The note bears interest at a rate of18% per annum, accrues monthly, and is unsecured.

The note, together with all unpaid accrued interest, is automatically convertible in full upon the closing of a qualified financing. A qualified financing is defined as an equity financing resulting in gross proceeds to the Company of at least $750,000 (including the conversion of this note and other debt). Upon a qualified financing, the conversion price would be equal to 100% of the per share price paid by investors in the financing, subject to the following valuation adjustments: (i) if the Company’s valuation associated with the qualified financing is less than $15,000,000, the conversion price shall be based on a $15,000,000 valuation; and (ii) if the valuation exceeds $30,000,000, the conversion price shall be based on a $30,000,000 valuation.

Interest expense related to the convertible note was $6,082and $6,059for the nine months ended September 30, 2024 and 2023, respectively, and $2,042for each of the three months ended September 30, 2024 and 2023, respectively. Accrued interest was $58,476and $52,394as of September 30, 2024 and December 31, 2023, respectively.

NOTE 5 - NOTES PAYABLE

In 2021, the Company entered into a loan agreement with an unaffiliated individual (the “ Lender”) for borrowings up to $75,000 and received a first advance of $ 50,000 6

Interest expense related to this loanwas $2,252and $2,244for the nine months ended September 30, 2024 and 2023, respectively, and $756for each of the three months ended September 30, 2024 and 2023, respectively. Acc