Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 24

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 24
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 33,376  
                                               $ 323,736      $ 408,447  

The decrease was primarily due to lower consulting and stock-based compensation costs, as well as reduced professional fees for accounting and audit services, offset by an increase in public company related costs for news releases issued announcing the initial MOU and the SEA with Thrown.

Interest Expense. Interest expense increased slightly for the nine months ended September 30, 2024, compared to the same period in 2023, due to interest accrued on new borrowings.

Net Loss. Net loss for the nine months ended September 30, 2024, was $362,383, compared to a net loss of $440,750 for the same period in 2023. The improvement was primarily due to reduced operating expenses.

Liquidity and Capital Resources

Cash Flow and Working Capital

We had zero cash and cash equivalents as of both September 30, 2024, and December 31, 2023. Our working capital deficit was $2,239,979 as of September 30, 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 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. During the nine months ended September 30, 2024, we completed the following funding transactions: proceeds from the sale of common stock of $25,000; borrowings on notes payable from unrelated parties of $35,567; borrowings from our Chief Executive Officer of $4,500; and borrowings of related party debt and short-term advances of $30,187. Reference is made to Notes 5 and 6 to the interim condensed consolidated financial statements included under Item 1 of this Report for additional information.

We expect to require additional financing to support our ongoing operations and strategic growth initiatives. These conditions raise substantial doubt about our ability to continue as a going concern, which is dependent upon obtaining sufficient capital to fund operations and achieve profitability. Management is evaluating various