Company: FMHS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001317
Chunk: 5

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 break-up fee and charged to expense.

NOTE 4 - CONVERTIBLE NOTES PAYABLE, IN DEFAULT

Convertible notes payable is comprised of a promissory note issued to an unrelated individual with a principal amount of $45,000as of June 30, 2025 and December 31, 2024. Principal and accrued interest were originally due in July 2018, and the note is currently in default. The note bears interest at a rate of18% per annum, accrues monthly, and is unsecured.

The note, together with all unpaid accrued interest, is automatically convertible in full upon the closing of a qualified financing. A qualified financing is defined as an equity financing resulting in gross proceeds to the Company of at least $750,000 (including the conversion of this note and other debt). Upon a qualified financing, the conversion price would be equal to 100% of the per share price paid by investors in the financing, subject to the following valuation adjustments: (i) if the Company’s valuation associated with the qualified financing is less than $15,000,000, the conversion price shall be based on a $15,000,000 valuation; and (ii) if the valuation exceeds $30,000,000, the conversion price shall be based on a $30,000,000 valuation.

Interest expense related to the convertible note was $4,017and $4,040for the six months ended June 30, 2025 and 2024, respectively, and $2,019and $2,021for the three months ended June 30, 2025 and 2024, respectively. Accrued interest was $64,534and $60,517as of June 30, 2025 and December 31, 2024, respectively.

NOTE 5 - NOTES PAYABLE

Notes payable is comprised of the following:

                                                                                                                    June 30,                  December 31,              
                                                                                                                                                                        
                                                                                                                    2025                      2024                      
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Loan agreement with an unaffiliated individual, interest at 6% per annum, due December 16, 2021. In default.      $             50,000      $                 50,000  
  Note payable to unaffiliated individual, interest at 20% per annum, due October 26, 2024. In default.                            5,000