Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 29

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part II, Item 1
Chunk 29
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ITEM 1. LEGAL PROCEEDINGS

From time to time, we may become involved in legal proceedings, claims, or regulatory matters arising in the ordinary course of business. We assess our potential liability in connection with these matters by analyzing potential outcomes, assuming various litigation and settlement strategies, and consulting with legal counsel. As of April 25, 2025, the date of this report, there were no material pending legal proceedings against us, and we does not believe the outcome of any current claims or legal proceedings will have a material adverse effect on our financial position, results of operations, or cash flows.

In August 2017, our subsidiary, DTLA, entered into a Strategic Consulting Agreement (the “ SCA”) with Los Angeles Farmers, Inc. (“ LAFI”), formerly known as a medical marijuana growing and retail company. In October 2017, DTLA filed litigation in Los Angeles County Superior Court (Case No. BC681251) against LAFI and its principals, seeking to enforce our rights under the SCA. Following a confidential settlement with the principals in January 2020 and a judgment in favor of DTLA against LAFI in April 2021, a court-appointed receiver completed the sale of LAFI in April 2024.

As of April 25, 2025, the date of this report, there has been no material activity related to the matter for more than two years. We do not expect to recover any proceeds from the sale and are no longer pursuing any remedies. Accordingly, the matter is considered closed.

ITEM 1A. RISK FACTORS