Authentic Holdings Files 2023 10-K

TL;DR

AHRO filed its 2023 10-K, detailing financials and stock structure. Check it out.

AI Summary

Authentic Holdings, Inc. filed its 2023 10-K on June 12, 2024, reporting on its fiscal year ending December 31, 2023. The company, formerly known as Global Fiber Technologies, Inc., is involved in wholesale apparel and related products. The filing details its financial structure, including various classes of stock and debt instruments like promissory notes and convertible notes.

Why It Matters

This filing provides a comprehensive overview of Authentic Holdings' financial health and operational structure for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and future prospects.

Risk Assessment

Risk Level: medium — The filing indicates a complex financial structure with various debt instruments and preferred stock, which can introduce financial risk.

Key Numbers

• 000-52047 — SEC File Number (Identifies the company's filings with the SEC.)
• 113746201 — IRS Number (Company's tax identification number.)
• 08876 — ZIP Code (Part of the company's Somerville, NJ address.)

Key Players & Entities

• Authentic Holdings, Inc. (company) — Filer of the 10-K
• Global Fiber Technologies, Inc. (company) — Former name of Authentic Holdings, Inc.
• 2023-12-31 (date) — Fiscal year end
• 20240612 (date) — Filing date
• 50 DIVISION STREET SUITE 501 (address) — Business and mailing address
• SOMERVILLE, NJ 08876 (address) — Business and mailing address

FAQ

Key Financial Figures

• $0.001 — ection 12(g) of the Act: Common Stock, $0.001 par value (Title of class) Indicate
• $447,150 — nd the issuance of a promissory note of $447,150 that bears 3% interest per annum and ha
• $37,302,081 — atements show an accumulated deficit of $37,302,081 as of December 31, 2023, with a net wor
• $4,261,894 — with a net working capital deficit of $4,261,894 and limited cash resources. These facto
• $100 — hentic Heroes agreed to (i) pay Serbiak $100 within ten business days of License Agr
• $10,000 — days of License Agreement and a fee of $10,000 on or before January 1, 2023, (ii) pay
• $3,000,000 — e of the products amounting to at least $3,000,000 in revenue at year three of the License
• $10,000,000 — e of the products amounting to at least $10,000,000 in revenue at year five (5) of the Lice
• $1,658,,455 — 023 and 2022, we incurred a net loss of $1,658,,455 and $1,157,783, respectively, and, as o
• $1,157,783 — incurred a net loss of $1,658,,455 and $1,157,783, respectively, and, as of such dates, w
• $38,038,768 — dates, we had an accumulated deficit of $38,038,768 and $36,380,313, respectively. We had
• $36,380,313 — accumulated deficit of $38,038,768 and $36,380,313, respectively. We had net cash used in
• $227,228 — et cash used in operating activities of $227,228 for the year ended Decembre 31, 2023. A
• $4,998,581 — 23, we had a working capital deficit of $4,998,581. Any losses in the future could cause t
• $0 — cash flow. At December 31, 2023, we had $0 in cash and continue to have limited ca

Filing Documents

• ahro_10k.htm (10-K) — 1013KB
• ahro_ex41.htm (EX-4.1) — 28KB
• ahro_ex311.htm (EX-31.1) — 11KB
• ahro_ex312.htm (EX-31.2) — 11KB
• ahro_ex321.htm (EX-32.1) — 4KB
• ahro_ex322.htm (EX-32.2) — 4KB
• ahro_10kimg3.jpg (GRAPHIC) — 12KB
• ahro_10kimg5.jpg (GRAPHIC) — 7KB
• ahro_10kimg4.jpg (GRAPHIC) — 7KB
• ahro_10kimg2.jpg (GRAPHIC) — 12KB
• ahro_10kimg1.jpg (GRAPHIC) — 3KB
• 0001477932-24-003655.txt ( ) — 4501KB
• ahro-20231231.xsd (EX-101.SCH) — 45KB
• ahro-20231231_lab.xml (EX-101.LAB) — 250KB
• ahro-20231231_cal.xml (EX-101.CAL) — 45KB
• ahro-20231231_pre.xml (EX-101.PRE) — 222KB
• ahro-20231231_def.xml (EX-101.DEF) — 143KB
• ahro_10k_htm.xml (XML) — 540KB

Business

Business 4 Item 1B. Unresolved Staff Comments 17 Item 1C. Cybersecurity 17 Item 2.

Properties

Properties 18 Item 3.

Legal Proceedings

Legal Proceedings 18 Item 4. Mine Safety Disclosures 18 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6. [Reserved] 20 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 25 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 25 Item 9A.

Controls and Procedures

Controls and Procedures 25 Item 9B. Other Information 26 Item 9C Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 26 Part III 27 Item 10. Directors, Executive Officers and Corporate Governance 27 Item 11.

Executive Compensation

Executive Compensation 31 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 32 Item 13. Certain Relationships and Related Transactions, and Director Independence 33 Part IV 34 Item 14. Principal Accounting Fees and Services 34 Item 15. Exhibits, Financial Statement Schedules 34 Item 16. Form 10-K Summary 2 Table of Contents

Forward Looking Statements

Forward Looking Statements This annual report on Form 10-K and the documents incorporated by reference herein contain forward-looking statements that are not statements of historical fact and may involve a number of risks and uncertainties. These statements related to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. We have used the words "anticipate," "believe," "estimate," "expect," "intend," "may," "will," "plan," "predict," "project" and similar terms and phrases, including references to assumptions, in this annual report on Form 10-K and our incorporated documents to identify forward-looking statements. These forward-looking statement are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: General economic and industry conditions; Out history of losses, deficits and negative operating cash flows; Our limited operating history; Industry competition; Environmental and governmental regulation; Protection and defense of our intellectual property rights; Reliance on, and the ability to attract, key personnel; Other factors including those discussed in "Risk Factors" in this annual report on Form 10-K and our incorporated documents. You should keep in mind that any forward-looking statement made by us in this annual report or elsewhere speaks only as of the date on which we make it. New risks and uncertainties arise from time to t

Business

Item 1. Business General Overview Authentic Holdings Inc. (formerly Global Fiber Technologies, Inc.) was incorporated in Nevada on March 25, 2005. We are a multi-faceted media and merchandising company with operating subsidiaries and license rights, described below. On June 18, 2019, we completed the acquisition of assets from AH Originals, Inc. ("AHO"), a corporation controlled by the same owner group of our company for the consideration of 6,400,000 shares of our common stock to be issued and the issuance of a promissory note of $447,150 that bears 3% interest per annum and has a one-year term with eight options to extend the maturity date for six-month periods. In addition, we issued to AHO 200,000 common shares of Authentic Heroes, Inc. ("AHI"), a subsidiary created by us to hold the purchased assets. The Authentic Heroes, Inc. subsidiary has patented technology that takes the original event worn apparel from an iconic individual and creates "Fan-wear" collectibles containing fibers from that original. All of the Fan-Wear items have an embedded QR Code that registers the items on our Blockchain for their provenance and immutability. The Authentic Heroes subsidiary is also in the business of creating vinyl records for distribution into retail department stores and online sales and has pressed 150,000 Vinyls to date under the heading of "Old is Gold" Christmas. The Authentic Heroes subsidiary also has completed an NFT Platform on the Ethereum Blockchain capable of housing millions of NFTs. The NFT platform has minted 500,000 NFTs as part of free music NFT given away with its "Old is Gold" Christmas album. On April 26, 2023, we entered into a Membership Interest Purchase Agreement (the "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 our wholly owned subsidiary. Maybacks is looking to capitalize on the "cutting the

Risk Factors

Item 1A. Risk Factors Investing in our common stock involves a high degree of risk. Our business, reputation, results of operations, financial condition and stock price can be affected by a number of factors, whether currently known or unknown, including those described below. When any one or more of these risks materialize from time to time, our business, reputation, results of operations, financial condition and stock price can be materially and adversely affected. Because of the following factors, as well as other factors affecting the Company's results of operations and financial condition, past financial performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods. This discussion of risk factors contains forward-looking statements. You should carefully consider the risks and uncertainties described below, together with all of the other information in this report, including the consolidated audited financial statements and the related notes appearing at the end of this annual report on Form 10-K, with respect to any investment in shares of our common stock. If any of the following risks actually occurs, our business, financial condition, results of operations and future prospects would likely be materially and adversely affected. In that event, the market price of our common stock could decline, and you could lose part or all of your investment. These statements, like all statements in this report, speak only as of the date of this report (unless another date is indicated) and we undertake no obligation to update or revise the statements in light of future development. Risks Related to Our Financial Condition There is a substantial doubt about our ability to continue as a going concern. The report of our independent auditors that accompanies our consolidated financial statements includes an explanatory paragraph indicating there is

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View this 10-K filing on SEC EDGAR