Company: AHRO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003767
Chunk: 108

Company: Authentic Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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 promissory notes, which are secured by the assets of the Company, consist of the following as of March 31, 2025 and on December 31, 2024:   March 31,  December 31,   2025  2024 Principal balances $99,000  $116,500 Accrued Interest  3,561   3,061 Repayments  (10,500)  (17,500)  $92,061  $102,061  Self-Liquidating Promissory Notes Self-liquidating promissory notes consist of various notes accruing interest at 5%. The following summarizes these notes:   March 31,  December 31,   2025  2024 Principal balances $100,000  $100,000 Accrued Interest  34,583   33,333   $134,583  $133,333  During the three months ended March 31,2024, self-liquidating promissory notes of $50,000 were exchanged for a royalty agreement, wherein the holder will receive a royalty of 5% of net sales of Maybacks. On March 31, 2025, the remaining $100,000 in self-liquidating notes were in default.

NOTE 5 – DERIVATIVE LIABILITIES The Company analyzed the conversion option for derivative accounting consideration under ASC 815, "Derivatives and Hedging," and 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. The following table summarizes the derivative liabilities included in the balance sheet on March 31, 2025:

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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  1,048,016 Balance - March 31, 2025 $2,185,135 

NOTE 6 – ACQUISITIONS