AHRO's Revenue Jumps 112% Amidst Widening Losses, Cash Dries Up

TL;DR

**AHRO is a cash-strapped, loss-making entity with defaulted debt; avoid at all costs.**

AI Summary

Authentic Holdings, Inc. (AHRO) reported a significant increase in revenue for the nine months ended September 30, 2025, reaching $348,925, up from $164,668 in the prior year, representing a 111.9% increase. Despite this revenue growth, the company's net loss widened to $1,081,757 for the nine months ended September 30, 2025, compared to a net loss of $512,854 for the same period in 2024. This deterioration was primarily driven by a substantial increase in general and administrative expenses, which rose to $657,939 from $194,260, and a negative change in the fair value of derivative liabilities, resulting in a loss of $203,384 compared to a gain of $385,011 in 2024. The company's cash and cash equivalents plummeted from $5,890 at December 31, 2024, to just $7 by September 30, 2025. AHRO also reported an accumulated deficit of $40,440,662 and a working capital deficit of $6,284,026 as of September 30, 2025, alongside approximately $2.22 million in defaulted debt, raising substantial doubt about its ability to continue as a going concern. Strategically, AHRO acquired the Goliath Motion Picture Promotions' movie library and is developing an NFT platform for music and a new platform to help NFT investors recapture losses.

Why It Matters

Authentic Holdings' precarious financial state, marked by a near-zero cash balance and over $2.2 million in defaulted debt, signals extreme risk for investors. While revenue growth is positive, the escalating net losses and administrative costs suggest a lack of operational efficiency and control, making it difficult for the company to compete effectively in its diverse ventures, from entertainment to NFTs. Employees face job insecurity given the going concern warning, and customers might question the long-term viability of its new NFT platforms or movie library. The broader market should view AHRO as a cautionary tale of a micro-cap struggling with multiple pivots and significant financial distress.

Risk Assessment

Risk Level: high — The company has virtually no cash ($7 as of September 30, 2025), an accumulated deficit of $40,440,662, and a working capital deficit of $6,284,026. Furthermore, AHRO has approximately $2.22 million in debt that is currently in default, explicitly raising substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should immediately divest any holdings in AHRO due to its severe liquidity crisis, mounting losses, and significant defaulted debt. The going concern warning indicates a high probability of bankruptcy or further dilutive financing, making it an unsuitable investment.

Financial Highlights

debt To Equity

N/A

revenue

$348,925

operating Margin

N/A

total Assets

$10,931,460

total Debt

N/A

net Income

-$1,081,757

eps

N/A

gross Margin

N/A

cash Position

$7

revenue Growth

+111.9%

Revenue Breakdown

Key Numbers

• $348,925 — Revenue for nine months ended Sep 30, 2025 (Increased 111.9% from $164,668 in 2024)
• $1,081,757 — Net Loss for nine months ended Sep 30, 2025 (Widened from $512,854 in 2024)
• $7 — Cash and cash equivalents as of Sep 30, 2025 (Significantly down from $5,890 at Dec 31, 2024)
• $40,440,662 — Accumulated deficit as of Sep 30, 2025 (Increased from $39,358,905 at Dec 31, 2024)
• $6,284,026 — Working capital deficit as of Sep 30, 2025 (Increased from $5,324,664 at Dec 31, 2024)
• $2.22 million — Total principal amount of defaulted debt (Raises substantial doubt about going concern)
• $657,939 — General and administrative expenses for nine months ended Sep 30, 2025 (Increased from $194,260 in 2024)
• $203,384 — Loss on change in fair value of derivative liabilities for nine months ended Sep 30, 2025 (Shift from a gain of $385,011 in 2024)
• 2,379,178,836 — Shares outstanding as of Nov 24, 2025 (High share count indicates potential for significant dilution)
• 100,000 — Shares of Series F Preferred Stock (Issued for acquisition of Goliath movie library assets)

Key Players & Entities

• Authentic Holdings, Inc. (company) — registrant
• Goliath Motion Picture Promotions (company) — seller of movie library assets
• Priscella Cooper (person) — owner of Goliath Motion Picture Promotions
• Maybacks Global Entertainment LLC (company) — wholly owned subsidiary acquired by AHRO
• Authentic Heroes, Inc. (company) — subsidiary holding acquired assets from A.H. Originals, Inc.
• Inventel Products LLC (company) — joint venture partner
• Maestro Entertainment Corp. (company) — joint venture partner
• Nevada (regulator) — state of incorporation
• SEC (regulator) — filing authority
• Bloomberg (company) — publisher of analysis

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has a severe cash crunch, with cash and cash equivalents at $7 as of September 30, 2025, down from $5,890 at year-end 2024. This, coupled with a working capital deficit of $6,284,026 and approximately $2.22 million in defaulted debt, raises substantial doubt about its ability to continue as a going concern.
• Widening Net Loss [high — financial]: Despite a 111.9% revenue increase to $348,925 for the nine months ended September 30, 2025, the net loss widened to $1,081,757 from $512,854 in the prior year. This was primarily due to a tripling of general and administrative expenses to $657,939 and a negative swing in derivative liability valuations.
• Intangible Asset Valuation [medium — operational]: Intangible assets increased significantly to $10,809,566 from $4,284,185, largely due to the acquisition of the Goliath Motion Picture Promotions' movie library. The valuation and future performance of these assets are critical and subject to market acceptance.
• Derivative Liability Volatility [medium — financial]: The company experienced a loss of $203,384 from the change in fair value of derivative liabilities, a reversal from a gain of $385,011 in the prior year. This volatility can significantly impact net income and is a key risk to monitor.
• High Share Count and Dilution Risk [medium — financial]: With 2,379,178,836 shares outstanding as of November 24, 2025, and the issuance of 100,000 shares of Series F Preferred Stock for the Goliath acquisition, there is a significant risk of future dilution for common shareholders.
• Defaulted Debt [high — legal]: The company reported approximately $2.22 million in defaulted debt. This default could lead to legal actions, acceleration of debt repayment, and further financial distress.

Industry Context

Authentic Holdings operates in the entertainment and digital asset space, which is highly competitive and rapidly evolving. The company's strategy involves leveraging intellectual property (movie library) and developing new platforms for digital assets (NFTs). This sector faces challenges related to content monetization, technological adoption, and regulatory scrutiny of digital assets.

Regulatory Implications

The company's financial distress and potential going concern issues may attract scrutiny from regulatory bodies like the SEC. The development and operation of NFT platforms could also be subject to evolving regulations concerning digital assets and securities.

What Investors Should Do

1. Monitor cash burn and funding sources
2. Assess the viability of new platforms
3. Evaluate the value of acquired assets
4. Understand the impact of derivative liabilities

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant revenue growth but a widening net loss, with critically low cash reserves and substantial debt defaults.
• 2025-12-31: December 31, 2024 — Previous year-end balance sheet showing higher cash reserves ($5,890) and a smaller working capital deficit.
• 2025-11-24: Shares outstanding reported — As of this date, there were 2,379,178,836 shares outstanding, indicating a high potential for dilution.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net income. It represents a deficit in retained earnings. (AHRO has a substantial accumulated deficit of $40,440,662, indicating a history of unprofitability.)

Working capital deficit

Occurs when a company's current liabilities exceed its current assets, indicating a potential short-term liquidity problem. (AHRO has a working capital deficit of $6,284,026, highlighting its immediate liquidity challenges.)

Derivative liabilities

Financial instruments whose value is derived from an underlying asset, group of assets, or benchmark. These can be used for hedging or speculation and their fair value can fluctuate. (A negative change in the fair value of derivative liabilities contributed to AHRO's net loss, showing financial instrument volatility.)

Going concern

An accounting assumption that a business will continue to operate for the foreseeable future. If there is substantial doubt, it must be disclosed. (The company's financial condition, including low cash and defaulted debt, raises substantial doubt about its ability to continue as a going concern.)

Intangible assets

Non-physical assets that have value, such as patents, copyrights, and goodwill. In this case, it includes a movie library. (The significant increase in intangible assets is due to the acquisition of a movie library, which is a key part of the company's strategy but also a significant asset value.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Authentic Holdings, Inc. has seen a dramatic increase in revenue, more than doubling to $348,925. However, this growth has been overshadowed by a significant widening of the net loss to $1,081,757, driven by a surge in general and administrative expenses and unfavorable changes in derivative liabilities. The company's liquidity has deteriorated severely, with cash reserves plummeting to $7, and its working capital deficit has grown, alongside approximately $2.22 million in defaulted debt, presenting new and critical financial risks.

Filing Documents

• ahro_10q.htm (10-Q) — 1105KB
• 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) — 5KB
• 0001477932-25-008590.txt ( ) — 5252KB
• ahro-20250930.xsd (EX-101.SCH) — 55KB
• ahro-20250930_lab.xml (EX-101.LAB) — 302KB
• ahro-20250930_cal.xml (EX-101.CAL) — 48KB
• ahro-20250930_pre.xml (EX-101.PRE) — 277KB
• ahro-20250930_def.xml (EX-101.DEF) — 190KB
• ahro_10q_htm.xml (XML) — 757KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 3 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Stockholders' Equity/(Deficiency) for the Nine Months Ended September 30, 2025 and 2024 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (unaudited) 6 Notes to the Unaudited Condensed Consolidated Financial Statements 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults Upon Senior Securities 37 Item 4. Mine Safety Disclosures 37 Item 5. Other Information 37 Item 6. Exhibits 38

Signatures

Signatures 39 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AUTHENTIC HOLDINGS, INC. Condensed Consolidated Balance Sheets September 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 7 $ 5,890 Accounts receivable, net of allowance for doubtful accounts of $ 8,373 and $ 0 on September 30, 2025 and December 31, 2024, respectively 98,828 201,628 Advances made for inventory purchases 23,059 - TOTAL CURRENT ASSETS 121,894 207,518 Intangible assets, net of accumulated amortization of $ 157,930 and $ 886,911 on September 30, 2025 and December 31, 2024, respectively 10,809,566 4,284,185 TOTAL ASSETS $ 10,931,460 $ 4,491,703 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) CURRENT LIABILITIES Bank overdraft $ 82 $ - Accounts payable and accrued liabilities 671,727 518,946 Accrued compensation 851,254 588,751 Unsecured notes and accrued interest payable 191,674 164,935 Convertible notes and accrued interest - net of debt discount 1,782,584 1,513,737 Convertible notes and accrued interest - related party 91,443 89,568 Secured Promissory Notes and Accrued Interest 89,509 102,061 Promissory note and accrued interest - related party 532,435 522,374 Derivative liabilities 1,340,503 1,137,119 Advances from related parties 430,275 479,533 Related party loans and accrued interest 287,351 281,825 Self Liquidating Promissory Notes 137,083 133,333 TOTAL CURRENT LIABILITIES 6,405,920 5,532,182 TOTAL LIABILITIES 6,405,920 5,532,182 STOCKHOLDER'S EQUITY (DEFICIENCY) Preferred stock, Class B, $ 0.001 par value, 1,000,000 shares and authorized, 400,000 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 400 400 Preferred stock, Class C, $ 0.001 par value, 100,000 shares authorized, 100,000 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 100 100 Preferred stock, Class D

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