Company: AHRO
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001477932-25-002774
Chunk: 664

Company: Authentic Holdings, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 5
Chunk 664
---
 accounting for potential derivatives and assessment of management’s conclusions.

Intangible Assets

As described in Note 6, Acquisitions, to the consolidated financial statements, the Company entered into separate transactions to acquire a Company and complete license agreement with another company. Both companies in the transactions with Authentic Holdings, Inc. are owned by the same individual. The Company considered both transactions inseparable, therefore effectively one transaction and recorded intangible assets based on value of the preferred stock (if converted) issued as purchase consideration on the transaction date. The value of the intangible assets, net of amortization was $4,284,185 as of December 31, 2024.

We identified the accounting considerations, subjectivity of the related fair value of the intangible assets, and the presence of an impairment event  as a critical audit matter. The principal considerations for our determination were: (1) determining the valuation method (2) subjective and uncertain nature of the valuation models as it relies on assumptions and forecasts, (3) determining the measuring the amount of economic benefit, and (4) the determination of the presence of an impairment event. 

Our audit procedures related to management’s conclusion on the valuation of the intangible assets, included the following, among others: (1) assessing the continued relevance of the valuation model used to estimate carrying value, (2) assessing the reliability of the underlying data included in the assumptions, and (3) assessing the presence of an impairment event and judgments made by the Company.

We have served as the Company’s auditor since 2023.Victor Mokuolu, CPA PLLC Houston, Texas  April 15, 2025PCAOB ID: 6771 

 F-3Table of Contents

AUTHENTIC HOLDINGS INC.Consolidated Balance Sheets   December 31,  December 31,   2024  2023 ASSETS      CURRENT ASSETS      Cash and cash equivalents $5,890  $- Accounts receivable  201,628   - Advances  -   625,000 TOTAL CURRENT ASSETS  207,518   625,000          Property and equipment, net of depreciation  -   21,721 Intangible assets  4,284,185   4,771,322          TOTAL ASSETS $4,491,703  $5,418,043          LIABILITIES AND