2024 Q3 Form 10-K Financial Statement

#000109690624001512 Filed on July 11, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2023 Q4 2023
Revenue $4.520K $15.23K
YoY Change 71.21% 48.4%
Cost Of Revenue $1.920K $6.930K
YoY Change 45.45% 82.08%
Gross Profit $2.600K $8.297K
YoY Change 96.97% 28.54%
Gross Profit Margin 57.52% 54.49%
Selling, General & Admin $109.4K $517.8K
YoY Change -22.47% -34.1%
% of Gross Profit 4207.69% 6241.29%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $0.00 $0.00
YoY Change -100.0%
% of Gross Profit 0.0% 0.0%
Operating Expenses $109.4K $517.8K
YoY Change -22.47% -34.12%
Operating Profit -$106.8K -$509.5K
YoY Change -23.6% -34.64%
Interest Expense -$13.24K $51.24K
YoY Change -106.23% -3.59%
% of Operating Profit
Other Income/Expense, Net -$51.24K
YoY Change -115.21%
Pretax Income -$120.0K -$560.8K
YoY Change -265.39% 26.65%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$120.0K -$560.8K
YoY Change -265.39% 26.65%
Net Earnings / Revenue -2655.75% -3682.86%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.01 -$0.03
COMMON SHARES
Basic Shares Outstanding 17.73M shares 17.33M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2024 Q3 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $0.00 $0.00
YoY Change -100.0% -100.0%
Cash & Equivalents $0.00 $0.00
Short-Term Investments
Other Short-Term Assets $3.990K $3.990K
YoY Change 4.72% 4.72%
Inventory
Prepaid Expenses $3.990K
Receivables $4.170K $4.170K
Other Receivables $0.00 $0.00
Total Short-Term Assets $8.160K $8.160K
YoY Change -87.61% -87.61%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $0.00 $0.00
YoY Change
TOTAL ASSETS
Total Short-Term Assets $8.160K $8.160K
Total Long-Term Assets $0.00 $0.00
Total Assets $8.160K $8.160K
YoY Change -87.61% -87.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $45.44K $45.44K
YoY Change 306.36% 306.44%
Accrued Expenses $204.1K $1.783M
YoY Change 30.76% 18.97%
Deferred Revenue
YoY Change
Short-Term Debt $95.00K $95.00K
YoY Change 0.0% 0.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $1.952M $1.952M
YoY Change 18.34% 18.35%
LONG-TERM LIABILITIES
Long-Term Debt $34.00K $34.00K
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $34.00K $34.00K
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $1.952M $1.952M
Total Long-Term Liabilities $34.00K $34.00K
Total Liabilities $1.986M $1.986M
YoY Change 20.41% 20.41%
SHAREHOLDERS EQUITY
Retained Earnings -$6.305M
YoY Change 9.76%
Common Stock $1.733K
YoY Change 1.46%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.978M -$1.978M
YoY Change
Total Liabilities & Shareholders Equity $8.160K $8.160K
YoY Change -87.61% -87.61%

Cashflow Statement

Concept 2024 Q3 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$120.0K -$560.8K
YoY Change -265.39% 26.65%
Depreciation, Depletion And Amortization $0.00 $0.00
YoY Change -100.0%
Cash From Operating Activities -$13.54K -$83.45K
YoY Change 33.4% -66.99%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0% -100.0%
Cash From Investing Activities $0.00 $0.00
YoY Change -100.0% -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 8.380K $21.39K
YoY Change -103.12% -127.1%
NET CHANGE
Cash From Operating Activities -13.54K -$83.45K
Cash From Investing Activities 0.000 $0.00
Cash From Financing Activities 8.380K $21.39K
Net Change In Cash -5.160K -$62.06K
YoY Change -90.45% -206.49%
FREE CASH FLOW
Cash From Operating Activities -$13.54K -$83.45K
Capital Expenditures
Free Cash Flow
YoY Change

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<p style="font:11pt Times New Roman;margin:0;margin-right:-1.8pt"><b>NOTE 1 – ORGANIZATION AND OPERATIONS</b></p> <p style="font:11pt Times New Roman;margin:0"> </p> <p style="font:11pt Times New Roman;margin:0;text-indent:36pt"><b><i>Organization</i></b></p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF">The Company was incorporated in June 2013 as Somerset Transition Corporation under the Oklahoma General Corporation Act. In September 2013, the Company was redomesticated in Maryland and changed its name to Somerset Property, Inc. In July 2017, the Company was redomesticated in Nevada and changed its name to Revival, Inc. In June 2019, the Company changed its name to Farmhouse, Inc. to reflect its new business endeavors. </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF">In August 2019, the Company acquired Farmhouse, Inc., a Washington corporation (“Farmhouse Washington”) as its wholly owned subsidiary (the “Acquisition”). The financial statements of the Company are the continuation of Farmhouse Washington with the adjustment to reflect the capital structure of the Company. The consolidated financial statements also includes Farmhouse DTLA, Inc., a wholly owned subsidiary of Farmhouse Washington (“DTLA”). DTLA is party to certain litigation. See Note 9.</p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;text-indent:36pt"><b><i>Current Operations</i></b></p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF">The Company is a technology company with multiple cannabis related divisions and IP, including the WeedClub® Platform, the @420 Twitter handle and a Web3 division. The WeedClub® Platform is a cannabis social network platform that enables industry professionals to connect, discover products and services and scale their businesses. Within the WeedClub® Platform, members utilize an increasing set of technology-based tools for discovering professional connections and information. The Company’s @420 Twitter handle serves as a public platform to engage with cannabis enthusiasts. The Company’s Web3 division, launched in December 2021, facilitates licensing opportunities between established cannabis brands and influential digital collectible holders to launch digital collectible branded products and accessories.</p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF">Subsequent to December 31, 2023, the Company executed a non-binding Memorandum of Understanding for a proposed acquisition of all membership interests of Thrown, LLC, a joint venture beverage firm led by T-Pain, the Grammy Award-winning artist, professional gamer, and entrepreneur. Thrown’s premier product, T-Pain’s GamerShot, is a zero-crash, focus-enhancing functional esports beverage, featuring a proprietary Nootropic Energy Blend and conveniently packaged in 2-ounce servings. See Note 14.</p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;text-indent:36pt"><b><i>Going Concern and Management Plans</i></b></p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;margin-right:-4.5pt;background-color:#FFFFFF">The accompanying consolidated financial statements have been presented on the basis that the Company is a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. For the year ended December 31, 2023, the Company had a net loss from operations of $509,546, consisting of general and administrative and legal and professional expenses. In addition, as of December 31, 2023, the Company had stockholders’ deficit of $1,978,281. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF"> </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF">The Company has financed its activities principally from the sale of its common stock, loans and advances from Company officers, and loans from third parties. The Company intends to finance its future working capital needs from these sources until such time that funds provided by operations are sufficient </p> <p style="font:11pt Times New Roman;margin:0;background-color:#FFFFFF">to fund working capital requirements. Management believes that loans and advances from Company officers, funds raised from the sale of its common stock, and funds raised from loans with third parties allow the Company sufficient capital for operations and to continue as a going concern.</p>
CY2023 us-gaap Operating Income Loss
OperatingIncomeLoss
-509546 usd
CY2023Q4 us-gaap Stockholders Equity
StockholdersEquity
-1978281 usd
CY2023 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p style="font:11pt Times New Roman;margin:0;text-indent:36pt"><b><i>Financial Statement Reclassification</i></b></p> <p style="font:11pt Times New Roman;margin:0"> </p> <p style="font:11pt Times New Roman;margin:0">Certain amounts from the prior year’s financial statements have been reclassified in these consolidated financial statements to conform to the current year’s classifications.</p>
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p style="font:11pt Times New Roman;margin:0;text-indent:36pt"><b><i>Use of Estimates</i></b></p> <p style="font:11pt Times New Roman;margin:0"> </p> <p style="font:11pt Times New Roman;margin:0">The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these consolidated financial statements and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from those estimates.</p>
CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font:11pt Times New Roman;margin:0;text-indent:36pt"><b><i>Concentrations of Credit Risk</i></b></p> <p style="font:11pt Times New Roman;margin:0"> </p> <p style="font:11pt Times New Roman;margin:0">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable as of December 31, 2023. The Company places its cash with high credit quality financial institutions. </p>
CY2023 us-gaap Revenues
Revenues
15227 usd
CY2022 us-gaap Revenues
Revenues
10261 usd
CY2023 us-gaap Cost Of Revenue
CostOfRevenue
6930 usd
CY2022 us-gaap Cost Of Revenue
CostOfRevenue
3806 usd
CY2023 us-gaap Concentration Risk License
ConcentrationRiskLicense
A new licensee accounted for 91.0% of license revenues
CY2022 us-gaap Concentration Risk License
ConcentrationRiskLicense
Two licensees represented 60.4% and 39.6% of license revenues
CY2023Q4 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
45000 usd
CY2022Q4 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
45000 usd
CY2023Q4 fil Company S Series2023 Notes Excluded From Dilutive Net Income Loss Per Common Share
CompanySSeries2023NotesExcludedFromDilutiveNetIncomeLossPerCommonShare
34000 usd
CY2022Q4 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
45000 usd
CY2023Q4 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
45000 usd
CY2023 fil Equity Financing Description
EquityFinancingDescription
The note and any unpaid accrued interest automatically converts in whole upon a qualified financing which is defined as an equity financing resulting in gross proceeds to the Company of at least $750,000 (including the conversion of the Notes and other debt). The conversion price would be equal to 100% of the per share price paid in the qualified financing, provided that: if the Company valuation associated with the Qualified Financing is less than $15,000,000, the valuation associated with the conversation shall be $15,000,000; and, if the Company valuation associated with the Qualified Financing is greater than $30,000,000, the Company valuation associated with the conversion shall be $30,000,000
CY2023 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
34000 usd
CY2023Q4 us-gaap Convertible Long Term Notes Payable
ConvertibleLongTermNotesPayable
34000 usd
CY2023Q4 fil Due To Related Parties
DueToRelatedParties
28958 usd
CY2022Q4 fil Due To Related Parties
DueToRelatedParties
44882 usd
CY2023Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
295000000 shares
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
295000000 shares
CY2023Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2022Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2023Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2022Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2023Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2023Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
17325950 shares
CY2022 us-gaap Stock Issued During Period Value Other
StockIssuedDuringPeriodValueOther
59415 usd
CY2022 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
189582 usd
CY2022Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
17075950 shares
CY2021Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
150000 shares
CY2021Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
1.02
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Number Of Shares Period Increase Decrease
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNumberOfSharesPeriodIncreaseDecrease
-1118000 shares
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
0.194
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
516000 shares
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
0.351
CY2022Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
752000 shares
CY2022Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
0.251
CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Number Of Shares Period Increase Decrease
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNumberOfSharesPeriodIncreaseDecrease
-250000 shares
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
0.05
CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
732000 shares
CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
0.227
CY2023Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
270000 shares
CY2023Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
0.128
CY2023 fil Stock Based Compensation On Rsa S Vested
StockBasedCompensationOnRsaSVested
166424 usd
CY2022 fil Stock Based Compensation On Rsa S Vested
StockBasedCompensationOnRsaSVested
181112 usd
CY2023Q4 fil Unrecognized Stock Based Compensation Expense
UnrecognizedStockBasedCompensationExpense
34500 usd
CY2023Q4 fil Unrecognized Stock Based Compensation Expense
UnrecognizedStockBasedCompensationExpense
34500 usd
CY2023Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
789000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
737300 usd
CY2023 fil Deferred Tax Assets Accrued Payroll
DeferredTaxAssetsAccruedPayroll
220000 usd
CY2022 fil Deferred Tax Assets Accrued Payroll
DeferredTaxAssetsAccruedPayroll
184300 usd
CY2023 fil Deferred Tax Assets Depreciation
DeferredTaxAssetsDepreciation
47300 usd
CY2022 fil Deferred Tax Assets Depreciation
DeferredTaxAssetsDepreciation
52000 usd
CY2023Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1056300 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
973600 usd
CY2023Q4 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2022Q4 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2023 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-117800 usd
CY2022 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-93000 usd
CY2023 us-gaap Income Tax Reconciliation Nondeductible Expense Depreciation
IncomeTaxReconciliationNondeductibleExpenseDepreciation
-4700 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense Depreciation
IncomeTaxReconciliationNondeductibleExpenseDepreciation
-5600 usd
CY2023 us-gaap Income Tax Reconciliation Nondeductible Expense Meals And Entertainment
IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment
200 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense Meals And Entertainment
IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment
200 usd
CY2023 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
34900 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
77800 usd
CY2023 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
35700 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
35700 usd
CY2023 fil Excess Book Gain On Disposal Over Tax
ExcessBookGainOnDisposalOverTax
0 usd
CY2022 fil Excess Book Gain On Disposal Over Tax
ExcessBookGainOnDisposalOverTax
-22100 usd
CY2023 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
51700 usd
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
7000 usd
CY2023 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
0 usd
CY2022 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
0 usd
CY2023Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
3757000 usd
CY2023Q4 fil Due To Related Parties1
DueToRelatedParties1
28958 usd
CY2022Q4 fil Due To Related Parties1
DueToRelatedParties1
44882 usd
CY2023 fil Company Officers Ownership Percentage
CompanyOfficersOwnershipPercentage
43.2 pure
CY2022 us-gaap Proceeds From Sales Of Assets Investing Activities
ProceedsFromSalesOfAssetsInvestingActivities
165000 usd
CY2022 us-gaap Net Investment Income
NetInvestmentIncome
225000 usd

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