Company: FMHS
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001096906-25-000588
Chunk: 3

Company: FARMHOUSE, INC. /NV
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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During the nine months ended September 30, 2024 and 2023, the Company generated revenues of $4,154 and $10,707, respectively. During the three months ended September 30, 2024 and 2023, the Company generated revenues of zero and $5,503, respectively. Revenues were generated from license fees in connection with NFT art license agreements, whereby licensees are granted a limited right to use the Company’s NFTs for the purpose of creating, marketing, and selling branded cannabis and hemp products and accessories. The Company’s performance obligation is met upon granting the licensee access to the NFTs. Revenue is recognized as the licensee sells products, based on a percentage of their gross sales. Fees are due the month after

sales occur. One licensee accounted for 100% of license revenues for each of the nine months ended September 30, 2024 and 2023.

The corresponding costs of revenues associated with license revenues were $1,874 and $5,006 for the nine months ended September 30, 2024 and 2023, respectively, and zero and $2,404 for the three months ended September 30, 2024 and 2023, respectively.

As discussed in Note 1, the Company has ceased pursuing its NFT licensing business and does not expect to generate further licensing revenues. The decision to discontinue this line of business was made as part of a strategic shift to focus on other opportunities, and the Company is no longer actively marketing or entering into new NFT licensing agreements.

Related Party Transactions

The Company identifies and discloses transactions with related parties in accordance with ASC 850, Related Party Disclosures. Related party transactions are recorded on terms that are no more favorable to the related parties than those that would be available in similar transactions with unaffiliated third parties.

Earnings (Loss) per Common Share

Net income (loss) per common share is computed in accordance with ASC 260, Earnings per Share. Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by adjusting the weighted average number of common shares outstanding to include potentially dilutive securities. As of September 30, 2024 and December 31, 2023, the Company had no potentially dilutive securities.

Stock-Based Compensation

Stock-based compensation expense is measured at the grant date based