Authentic Holdings Reports 280% Revenue Growth but Incurred Net Loss in Latest Quarter

Authentic Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenues of $153,314, a substantial increase from $40,240 in the same period last year, marking a growth of approximately 280%. However, the company also reported a net loss of $1,413,629, compared to a loss of $1,071,951 in the prior year, indicating ongoing challenges in achieving profitability.

The company's total operating expenses rose sharply to $417,684 from $245,358, primarily driven by increased general and administrative costs, which surged from $58,904 to $242,718. This increase was attributed to higher royalty expenses related to the acquisition of Maybacks Global Entertainment and increased salary expenses for key executives. The company’s accumulated deficit now stands at $40,772,534, reflecting its ongoing financial struggles and the need for additional capital to sustain operations.

In terms of strategic developments, Authentic Holdings completed the acquisition of Maybacks Global Entertainment LLC in April 2023, which has since expanded its channel offerings from 25 to 42 channels. The company also entered into a license agreement with Goliath Motion Picture Promotions, acquiring rights to over 14,000 films and television shows, which it plans to tokenize and distribute through its Maybacks network. These acquisitions are expected to diversify revenue streams beyond advertising, including potential video-on-demand services.

Operationally, the company reported a decrease in cash and cash equivalents to $2,744 from $5,890 at the end of the previous fiscal year. The total current liabilities increased to $6,824,765, up from $5,532,182, indicating a growing financial burden. The company’s working capital deficit also widened to $6,679,251, raising concerns about its ability to meet short-term obligations. Despite these challenges, management remains optimistic about future revenue growth from new partnerships and content distribution agreements.

Looking ahead, Authentic Holdings acknowledges the need for additional financing to support its operations and growth initiatives. The company plans to pursue capital through debt and equity markets, although it faces significant risks, including high debt levels and competition from larger firms. The management's ability to execute its business plan and achieve profitability remains uncertain, as indicated by the substantial doubt about the company's ability to continue as a going concern.