Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 11

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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100,000 RSAs to LFSI, the Company’s contracted CFO, and 240,000 RSAs to the Company’s newly engaged legal counsel.

The RSAs to LFSI vest as follows: 50,000 shares vested on September 30, 2024, and 25,000 shares will vest on each of the next two fiscal quarter-ends. The RSAs granted to the legal counsel vest 10,000 shares monthly beginning September 30, 2024, through May 31, 2026.

On September 6, 2024, the Board granted an additional RSA of 10,000 shares under the 2021 OIP to an advisor. These shares vest in equal installments of 2,500 shares per month beginning September 30, 2024.

All RSAs are measured at fair value based on the closing price of the Company’s common stock on the OTCQB market on the grant date. Stock-based compensation expense is recognized as the shares vest. The Company expects to continue issuing restricted stock awards to employees, advisors, and consultants as part of its equity compensation strategy.

No RSAs were granted during the nine months ended September 30, 2023.

Stock-Based Compensation Expense

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation. Stock-based compensation expense is recognized based on the grant-date fair value of awards and is expensed over the requisite service period, which is generally the vesting period. The Company’s stock-based awards consist of RSAs granted under its 2021 OIP. No stock options or other equity awards were granted during the periods presented.

For the nine months ended September 30, 2024 and 2023, the Company recognized stock-based compensation expense of $41,685and $136,452, respectively. For the three months ended September 30, 2024 and 2023, the Company recognized stock-based compensation expense of $5,895and $19,934, respectively.

As of September 30, 2024, there was $23,974of unrecognized stock-based compensation expense related to unvested RSAs, which is expected to be recognized over a weighted-average remaining period of approximately 1.43 years, as follows:

  Fiscal year ending December 31,              
 ───────────────────────────────────────────────
  2024 (remaining)                      7,194  
  2025                                 12,580  
  2026