Company: FMHS
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001096906-25-000995
Chunk: 5

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-06-23
Form: 10-K
Item: Item 7
Chunk 5
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 for the year ended December 31, 2024 reflect a continued focus on managing operating expenses following the discontinuation of the NFT licensing business. Revenue decreased due to the wind-down of that division after a major customer went out of business, while total operating expenses declined year-over-year due to reduced consulting and stock-based compensation costs. Management continues to focus on maintaining expense discipline and exploring strategic opportunities to enhance stockholder value.

Liquidity and Capital Resources

The following discussion summarizes our liquidity position, working capital needs, and sources of capital as of December 31, 2024 and 2023.

Cash Flow and Working Capital

We had cash and cash equivalents of $413 as of December 31, 2024, compared to $0 as of December 31, 2023. Our working capital deficit was $2,334,745 as of December 31, 2024, compared to $1,944,281 as of December 31, 2023.

We continue to experience limited access to capital and expect that additional financing will be necessary to fund our operations. Market conditions for microcap companies remain challenging, making it difficult to secure financing on favorable terms. Our history of operating losses and our working capital deficit raise substantial doubt about our ability to continue as a going concern. Although we are actively seeking to obtain additional capital, there can be no assurance that such financing will be available on acceptable terms, or at all.

Cash Flow from Financing Activities

We have historically funded our operations primarily through related party advances, private placements, and the issuance of debt securities. During the year ended December 31, 2024, we completed the following funding transactions:

·Received $25,000 in proceeds from the sale of common stock;

·Borrowed $35,567 on notes payable from unrelated third parties;

·Borrowed $4,500 from our Chief Executive Officer; and

·Borrowed $41,758 through related party debt and short-term advances.

Comparatively, during the year ended December 31, 2023, we completed the following funding transactions:

·Borrowed $34,000 on convertible notes payable from unrelated parties; and

·Borrowed $10,761 through related party debt and short-term advances.

We also made repayments of $23,370 on related party borrowings during 2023.

Reference is made to Notes 5 and 6 in the Consolidated Financial Statements included under Item 8 of this Report.

Capital Requirements and Outlook

We expect