Farmhouse, Inc. (OTCQB: FMHS) Releases 2025 Annual Report: Key Highlights & Shareholder Insights

Summary of the Report

• Farmhouse, Inc. (FMHS) is a Nevada-incorporated technology and brand management company, now transitioning toward strategic acquisitions and digital asset initiatives.
• The company operates primarily as a public company platform, currently with minimal revenue and limited licensing activities.
• Going Concern: The company faces substantial doubt regarding its ability to continue as a going concern, dependent on securing additional capital and achieving profitability.
• As of April 16, 2026, FMHS had 19,105,950 shares of common stock outstanding, par value \$0.0001 per share.
• Market value of public float (non-affiliates) was approximately \$1,078,800 (closing price \$0.103 per share).
• FMHS is classified as a penny stock under SEC rules, which may affect liquidity and increase transaction costs for investors.
• No dividends, share repurchases, or stock option grants during the reporting period.
• All related party transactions (including convertible debt) were conducted on arm’s length terms.

Business and Strategic Direction

Transition to Digital Assets: Farmhouse, Inc. is actively exploring digital asset strategies, including preliminary discussions with cryptocurrency financing and investment platforms. However, no binding agreements or definitive plans have been established. The company’s transition does not depend on its existing intellectual property portfolio (including the @420 social media handle, domain names, and trademarks).

Licensing Activities: Existing licensing and intellectual property activities remain minimal and are not material to financial results.

Emerging Growth Company: FMHS has elected not to delay the adoption of new accounting standards, signaling its intent to move quickly on new regulatory and financial reporting requirements.

Financial Performance and Position

• Revenue: Minimal revenues reported for 2025 and prior years.
• Net Loss: Basic and diluted net loss per share was \$0.02 for 2025 and \$0.03 for 2024, with weighted average shares of 18,201,566 (2025) and 17,669,080 (2024).
• Stockholders’ Deficit: As of December 31, 2025, FMHS reported a stockholders’ equity deficit of (\$2,342,570).
• Assets: Total assets at year-end were \$30,788.
• Cash and Cash Equivalents: None as of December 31, 2025 and 2024.
• Funding: Operations were funded primarily via related party advances, private placements, and debt issuance. In 2025, FMHS:
  • Received \$5,000 on a convertible note from the spouse of a director (arm’s length terms).
  • Borrowed \$12,067 through related party short-term advances.

  In 2024, FMHS:

  • Received \$25,000 from sale of common stock.
  • Borrowed \$35,567 from unrelated third parties.
  • Borrowed \$4,500 from CEO.
  • Borrowed \$41,758 from related parties.

Potentially Price-Sensitive Developments

• FMHS is evaluating a potential financing with an investor for approximately \$2.0 million, which may include cash and non-cash digital asset consideration. The advance will be credited toward the investor’s subscription if the offering is completed; otherwise, it converts to a promissory note. No assurances the transaction will be completed.
• All related party transactions were conducted on terms no less favorable than those offered to third parties, mitigating conflict-of-interest concerns.
• The company needs additional financing to continue operations and pursue strategic growth. If not secured, FMHS may have to curtail or cease operations, posing a significant risk to shareholders.
• Derivative liabilities associated with convertible notes required complex judgment and are sensitive to management estimates. Valuation changes could materially impact financial statements.
• FMHS has no off-balance-sheet arrangements or contractual obligations material to its liquidity or financial condition.

Stockholder Information

• FMHS common stock is quoted on OTCQB under symbol FMHS.
• Transfer agent: Securities Transfer Corporation, Plano, Texas (www.stctransfer.com).
• As of December 31, 2025: 18,925,950 shares outstanding, held by 143 record holders. As of April 15, 2026: 19,105,950 shares, 144 holders.
• No registration rights outstanding.

Risks and Outlook

• FMHS is a non-accelerated filer and a smaller reporting company, which limits disclosure requirements.
• Substantial doubt remains about the company’s ability to continue as a going concern due to low revenues, negative equity, and reliance on external financing.
• Management is prioritizing cost discipline and evaluating strategic transactions and capital formation to enhance shareholder value.
• Shareholders should monitor closely for updates on the proposed \$2 million financing and any further developments regarding digital asset strategies.

Conclusion

Farmhouse, Inc.’s 2025 Annual Report underscores the company’s transitional phase, minimal operations, and urgent need for new financing to sustain its future. The ongoing evaluation of a substantial capital raise and digital asset strategy could be transformative, but until finalized, shareholders face material uncertainty. Risks are heightened by persistent losses, negative equity, and penny stock classification. Investors should stay alert for news regarding the potential \$2 million financing and strategic acquisitions, as these may significantly impact FMHS’s share price and long-term prospects.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full Farmhouse, Inc. Annual Report and consult professional advisors before making investment decisions. The information is based on the company’s SEC filings and may be subject to change or revision.