Company: AHRO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003767
Chunk: 32

Company: Authentic Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 5
Chunk 32
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2025, compared to a net loss of $1,071,951 for the three months ended March 31, 2024.  

 26Table of Contents

Liquidity and Capital Resources

Since our inception, we have financed our operations through private placements, convertible notes, and unsecured debt, and we have recently issued debt in our company secured by all of our assets. Our current liabilities on our Condensed Consolidated Balance Sheets on March 31, 2025, contains certain of this debt that is in default, including convertible notes with face values of $1,441,304, secured promissory notes with face values of $92,061, related party promissory notes with face values of $1,255,977 and self-liquidating promissory notes of $134,583. At March 31, 2025, we have limited cash, a substantial working capital deficit, our revenues have only commenced in 2024 and future losses are anticipated. Additionally, we expect to experience higher interest payments in the future as a result of our outstanding liabilities. If we are unable to generate sufficient revenues and/or additional financing to service this debt, there is a risk the lenders will call the notes and we will be unable to repay the loans. If this happens, we could go out of business.

Based upon the current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired and we could go out of business. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

The following is a summary of the cash and cash equivalents as of March 31, 2025 and December 31, 2024.

  March 31, 2025  December 31,2024  $ Change  % Change Cash and cash equivalents $2,744  $5,890  $(3,146 )  53%

Summary of Cash Flows 

Below is a summary of the Company’s cash flows for the three months ended March 31