Company: AHRO
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001477932-25-002774
Chunk: 122

Company: Authentic Holdings, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 10
Chunk 122
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%. These notes are convertible at a fixed conversion price of $0.0005. Thes agreements include royalty agreements for Maybacks, wherein the Company agrees to pay 2.50% of gross sales. During the year ended December 31, 2024, the Company recognized $19,930 in accrued royalties for the two convertible promissory notes. During the year ended December 31, 2024, the Company repaid $1,000 of the principal amount due to the two convertible promissory note holders. During the year ended December 31, 2024, the Company received proceeds of $55,000 from a convertible note, maturing in 2025. The note bears interest 10%, with a penalty rate of 24%. This note is convertible at a fixed conversion price of $0.0005, unless in default. Provided that an Event of Default continues for not less than 21 days, the Holder may elect to use the lower of (i) the Fixed Price of $0.0005 or (ii) the lowest traded price of the Company Common Stock during the prior 21-day trading period.  On December 31, 2024, convertible notes with face values of $1,403,428 were in default.

 F-16Table of Contents

Secured Promissory Note During 2024, the Company entered into two secured promissory notes totaling $76,500.  The notes do not bear interest and no stated maturity date. During the year ended December 31, 2024, the Company repaid a total of $17,500 of the principal amounts due on the two secured promissory notes. On June 30, 2023, the Company entered into a secured promissory note for $40,000.  The note bears interest at 5% per annum and was due on December 31, 2023.  The maturity date was subsequently extended to October 4, 2025.  The Company granted a security interest in all its assets to the noteholder. On December 31, 2024, and 2023, the Company had $3,061 and $1,022, respectively, in accrued interest on the secured promissory note. The following notes are secured by the assets of the Company on December 31:   2024  2023 Secured Notes Payable $116,500  $40,000