Company: FMHS
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001096906-25-001169
Chunk: 15

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
2025                  2024               
 ──────────────────────────────────────────────────────────────────────────────────────────
  Accounting and professional fees               $         23,684      $          29,923  
  Wages and benefits                                       46,036                 55,536  
  Consulting fees                                             625                  1,625  
  Public company related and filing fees                    6,164                  4,825  
  Other general and administrative expenses                14,285                 12,194  
                                                 $         90,794      $         104,103  

The decrease in accounting and professional fees and wages and consulting categories was primarily due to higher stock-based compensation costs recognized in the three months ended March 31, 2024 as compared to the three months ended March 31, 2025. The increase in public company and filing fees and other general and administrative expenses was due to the general increase in costs and inflation under the normal course of business.

Gain on Extinguishment of Debt. On March 31, 2025, accrued legal fees and finance charges totaling $424,930 were converted into a new Series 2025 Note in the face amount of $250,000. We recorded a gain on extinguishment of debt of $174,930 upon the conversion.

Interest Expense. Interest expense increased slightly for the three months ended March 31, 2025, compared to the same period in 2024, due to new borrowings.

Net Income/Loss. Net income for the three months ended March 31, 2025, was $68,288, compared to a net loss of $116,071 for the same period in 2024. The gain on extinguishment of debt of $174,935 attributed to the net income for the three months ended March 31, 2025. Additionally, there was reduced stock-based compensation costs during the three months ended March 31, 2025, as mentioned above.

Liquidity and Capital Resources

Cash Flow and Working Capital

We had $19,317 and $413 in cash as of March 31, 2025 and December 31, 2024, respectively. Our working capital deficit was $ 1,914,212 as of March 31, 2025, compared to $2,334,745 as of December 31, 2024. We continue to experience limited access to capital and expect that additional financing will be necessary to fund our operations. Market conditions for