Company: AHRO
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001477932-25-008590
Chunk: 118

Company: Authentic Holdings, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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 determined that the convertible notes should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company accounts for convertible notes and warrants as a derivative liability due to there being no explicit limit to the number of shares to be delivered upon settlement of all conversion options.

 19Table of Contents

 The following table summarizes the derivative liabilities included in the balance sheet on September 30, 2025: Fair Value Measurements Using Significant Observable Inputs (Level 3) Balance - December 31, 2024 $1,137,119 Net Loss (gain) on change in fair value of the derivative  203,384 Balance - September 30, 2025 $1,340,503 

NOTE 6 – ACQUISITIONS Maybacks Global Entertainment LLC On April 26, 2023, the “Company entered into a Membership Interest Purchase Agreement with Maybacks Global Entertainment LLC, an Arizona limited liability company (“Maybacks”), and the members of Maybacks. As a result of the transaction, Maybacks became a wholly owned subsidiary of the Company. In accordance with the terms of the Purchase Agreement, at the closing an aggregate of 100,000 shares of the Company’s newly created Series C Preferred Stock were issued to the holders of Maybacks in exchange for their membership interests of Maybacks. The Purchase Agreement includes a funding obligation, which requires the Company to provide capital to fund the monthly expenses of Maybacks.  Maybacks is a 27 station network whose programming is carried by Roku, Direct TV, Local Now and many other platforms giving it an FCC reach of over 450,000,000 worldwide. On the acquisition date, Maybacks did not have any tangible assets or liabilities. Goliath Motion Picture Promotions On June 20, 2023, the Company closed a License Agreement with Seller. On the Closing Date, the Company licensed various full-length motion pictures and serial television shows for a period of 10 years. In exchange for the license, the Company issued to the Seller 100,000 shares of the Company’s Series D Preferred Stock, par value $0.001 with stated value of $50 per share. As a result of the Purchase Agreement and the acquisition of the Assets, the Company plans to “tokenize” all the titles, namely 15,439 plus full