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

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 25
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 financing alternatives, including potential equity or debt offerings and strategic partnerships. If we are unable to obtain additional financing, we may be required to further curtail or cease operations.

Subsequent Event Financing

Subsequent to September 30, 2024, we raised additional capital through a Convertible Note Offering (the “ Offering”), as follows:

·$10,000 issued to an unrelated individual on February 24, 2025.

·$61,000 issued to an unrelated individual on March 18, 2025, consisting of $35,000 in new cash proceeds and $26,000 converted from a previously accrued liability for services rendered.

·$25,000 issued to an unrelated individual on April 16, 2025.

·$25,000 issued to the spouse of a Company director on April 18, 2025. This note was issued on

the same terms as those offered to unaffiliated investors and was executed on an arm’s length basis.

·$12,500 issued to an unrelated individual on April 21, 2025.

The notes issued under the Offering bear interest at a rate of 10% per annum and mature three years from their respective dates of issuance. The notes are automatically convertible into shares of our common stock upon the occurrence of certain events, including: (i) the completion of a new equity offering of at least $1,000,000, or (ii) the Company’s common stock trading at or above $1.00 per share for ten consecutive trading days. The conversion price will equal 50% of the price per share of the new equity offering or 50% of the tenth day’s closing price, depending on the trigger event. We may prepay the notes at any time without penalty, subject to the holders’ right to convert during a five-day notice period. Proceeds from the Offering are being used for general corporate purposes, including working capital and operational expenses.

Reference is made to Note 14 to the interim condensed consolidated financial statements included under Item 1 of this Report for additional information. These financings are not expected to materially change our financial condition.

Significant Estimates and Assumptions

The preparation of our consolidated financial statements in accordance with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. These estimates are based on historical experience, current conditions, and other reasonable factors. Actual results could differ materially from these estimates. We review these estimates and