Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 2

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 1
Chunk 2
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 These reclassifications had no effect on previously reported net loss or stockholders’ equity.

Cash and Cash Equivalents

Cash and cash equivalents as of September 30, 2024, included cash held in banks. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U. S. GAAP and the rules of the Securities and Exchange Commission (“ SEC”) applicable to interim financial information. They do not include all of the information and footnotes required for complete annual financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on July 11, 2024. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.

Use of Estimates

The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements and during the reporting periods. Significant estimates include those related to convertible debt, deferred tax assets and any related valuation allowances, contingent assets and liabilities, and stock-based compensation. Actual results could materially differ from those estimates. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.

Accounts receivable

Accounts receivable represent amounts due from customers in the ordinary course of business and are recorded at the invoiced amount. Accounts receivable do not bear interest and are presented net of an allowance for doubtful accounts. The Company evaluates the collectability of its accounts receivable and establishes an allowance based on a combination of factors, including historical collection trends and specific information about customer credit risk. When the Company becomes aware of a customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded. During the nine months ended September 30, 2024, the Company recognized bad debts of $607 on its accounts receivable.

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.