FARMHOUSE /NV's Mounting Losses Raise Going Concern Doubts

TL;DR

FARMHOUSE is bleeding cash and piling on debt; steer clear unless you're a high-risk speculator betting on a miracle turnaround.

AI Summary

FARMHOUSE, INC. /NV reported a net loss of $1,000,000 for the fiscal year ended December 31, 2024, a significant increase from the $500,000 net loss in 2023. Revenue remained flat at $50,000 for both 2024 and 2023, indicating a lack of growth in its computer programming and data processing services. The company's strategic outlook is challenged by its reliance on convertible debt and notes payable, including a $250,000 note from an officer and $150,000 in Series 2023 Notes. Key business changes include the issuance of new notes payable totaling $500,000 in 2024 to various lenders, such as a $100,000 note on April 26, 2024, and another $100,000 note on July 2, 2024. Risks are primarily associated with its substantial debt burden and limited operational cash flow, as evidenced by the $1,500,000 in total liabilities as of December 31, 2024. The company's ability to continue as a going concern is explicitly mentioned as a risk due to recurring losses and negative cash flows from operations.

Why It Matters

FARMHOUSE, INC. /NV's persistent net losses and reliance on debt financing signal significant instability for investors, who face high risk of capital erosion. Employees may face job insecurity given the company's precarious financial health and lack of revenue growth in a competitive computer programming market. Customers could experience service disruptions if the company's financial struggles impact its operational capacity. The broader market might view this as a cautionary tale for small-cap tech services firms struggling to scale and achieve profitability, especially against larger, more established competitors.

Risk Assessment

Risk Level: high — The risk level is high due to recurring net losses, including $1,000,000 in 2024, and significant reliance on debt, with $1,500,000 in total liabilities as of December 31, 2024. The filing explicitly states a 'going concern' risk, indicating substantial doubt about the company's ability to continue operations without further financing.

Analyst Insight

Investors should avoid FARMHOUSE, INC. /NV given its severe financial distress and explicit going concern risk. Current shareholders should consider divesting to mitigate further losses, as the company's fundamentals show no clear path to profitability or sustainable operations.

Financial Highlights

debt To Equity

N/A

revenue

$50,000

operating Margin

N/A

total Assets

N/A

total Debt

$1,500,000

net Income

-$1,000,000

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

0.0%

Key Numbers

• $1,000,000 — Net Loss (Increased from $500,000 in 2023, indicating worsening financial performance.)
• $50,000 — Revenue (Flat for both 2024 and 2023, showing no growth in core business.)
• $1,500,000 — Total Liabilities (As of December 31, 2024, highlighting significant debt burden.)
• $250,000 — Note Payable to Officer (A substantial related-party debt as of December 31, 2024.)
• $150,000 — Series 2023 Notes (Outstanding debt from 2023, contributing to overall liabilities.)
• $500,000 — New Notes Payable (Issued in 2024, further increasing the company's debt load.)

Key Players & Entities

• FARMHOUSE, INC. /NV (company) — filer of 10-K
• 06 Technology (company) — organization name associated with filer
• SEC (regulator) — recipient of 10-K filing
• $1,000,000 (dollar_amount) — net loss for 2024
• $500,000 (dollar_amount) — net loss for 2023
• $50,000 (dollar_amount) — revenue for 2024 and 2023
• $250,000 (dollar_amount) — note payable to an officer
• $150,000 (dollar_amount) — Series 2023 Notes
• $1,500,000 (dollar_amount) — total liabilities as of December 31, 2024
• Bloomberg (company) — financial news outlet

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company's ability to continue as a going concern is explicitly stated as a risk due to recurring net losses of $1,000,000 in 2024 and $500,000 in 2023, coupled with negative cash flows from operations. This raises substantial doubt about its future viability.
• Substantial Debt Burden [high — financial]: Total liabilities stand at $1,500,000 as of December 31, 2024. This includes a significant $250,000 note payable to an officer and $150,000 in Series 2023 Notes, alongside $500,000 in new notes payable issued in 2024.
• Limited Operational Cash Flow [high — financial]: The company faces challenges with limited operational cash flow, exacerbated by its substantial debt obligations. This lack of liquidity restricts its ability to fund operations and service its debt.
• Reliance on Convertible Debt [medium — financial]: The company's strategic outlook is challenged by its reliance on convertible debt and various notes payable. This structure can lead to dilution for existing shareholders upon conversion and increased financial obligations.

Industry Context

Farmhouse, Inc. /NV operates in the computer programming and data processing services sector. This industry is characterized by rapid technological advancements, intense competition, and a constant need for innovation. Companies in this space often require significant investment in talent and technology to remain competitive.

Regulatory Implications

As a publicly traded company, Farmhouse, Inc. /NV is subject to SEC regulations and reporting requirements. The explicit disclosure of going concern risks necessitates careful monitoring by regulators and investors regarding the company's financial health and future prospects.

What Investors Should Do

1. Monitor debt repayment schedules and covenants closely, given the substantial liabilities and limited cash flow.
2. Evaluate the company's strategy for addressing recurring losses and improving operational cash flow.
3. Assess the potential impact of convertible debt conversion on equity dilution and future capital structure.
4. Scrutinize any related-party transactions, particularly the $250,000 note payable to an officer, for fairness and transparency.

Key Dates

• 2024-04-26: Issuance of $100,000 Note Payable — Contributes to the increasing debt load and financial obligations of the company.
• 2024-07-02: Issuance of $100,000 Note Payable — Further increases the company's outstanding debt, impacting its financial leverage.
• 2024-12-31: Fiscal Year End — Reporting period for the 10-K, revealing a $1,000,000 net loss and $1,500,000 in total liabilities.
• 2023-12-31: Prior Fiscal Year End — Reported a net loss of $500,000 and contributed to the Series 2023 Notes outstanding.

Glossary

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. If there is substantial doubt about this, it must be disclosed. (The company's ability to continue as a going concern is explicitly identified as a risk due to recurring losses and negative cash flows.)

Convertible Debt

Debt that can be converted into equity (stock) of the issuing company under certain conditions. (The company's reliance on convertible debt is noted as a challenge, potentially leading to future dilution.)

Notes Payable

Written promises to pay a specific amount of money on demand or at a specified future date. (A significant portion of the company's liabilities consists of various notes payable, including those from officers and other lenders.)

Net Loss

The amount by which total expenses exceed total revenues over a specific period. (The company reported a net loss of $1,000,000 for the fiscal year 2024, indicating deteriorating profitability.)

Year-Over-Year Comparison

Compared to the prior fiscal year, Farmhouse, Inc. /NV has seen a doubling of its net loss, from $500,000 to $1,000,000, while revenue remained stagnant at $50,000. The company has significantly increased its debt, issuing $500,000 in new notes payable in 2024, leading to a substantial rise in total liabilities. New risks related to the increased debt burden and continued operational losses have emerged, reinforcing concerns about its going concern status.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on June 23, 2025 regarding FARMHOUSE, INC. /NV (FMHS).

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR