Farmhouse, Inc. Reports No Revenue and Net Income Improvement in Q1 2025

Farmhouse, Inc. reported its financial results for the first quarter of 2025, revealing a significant shift in its financial performance compared to the same period in 2024. The company recorded no revenue for the three months ended March 31, 2025, a decrease from $2,261 in revenue during the same period last year, which was primarily derived from NFT licensing agreements. The absence of revenue reflects the company's strategic pivot away from these agreements, as it does not anticipate generating future income from them. Operating expenses decreased to $90,794 from $104,103 year-over-year, attributed to lower stock-based compensation costs and reduced professional fees.

The company reported a net income of $68,288 for the first quarter of 2025, a notable improvement from a net loss of $116,071 in the prior year. This positive shift was largely driven by a gain on the extinguishment of debt amounting to $174,935, which contributed significantly to the net income. The reduction in operating expenses also played a role in this turnaround, as the company managed to lower costs in several areas, including accounting and professional fees.

Farmhouse, Inc. continues to pursue strategic growth through acquisitions, as evidenced by its ongoing discussions regarding a Share Exchange Agreement with Thrown, LLC, a beverage company. The proposed acquisition involves the issuance of 5,130,000 shares of common stock in exchange for all membership interests in Thrown. Additionally, the company has entered into a non-binding term sheet with Ledgewood Holdings, LLC, a franchise operator with approximately $31 million in trailing twelve-month revenue, to potentially acquire the company through the issuance of up to 31,000,000 shares of common stock.

As of March 31, 2025, Farmhouse, Inc. reported total assets of $52,992,000, a significant increase from $30,788,000 at the end of 2024. The company's cash position improved to $19,317 from $413, reflecting its recent financing activities, which included raising $45,000 through the issuance of convertible notes. However, the company also reported a working capital deficit of $1,914,212, down from $2,334,745 at the end of 2024, indicating ongoing challenges in securing sufficient capital to support operations. Management has expressed concerns about the company's ability to continue as a going concern, emphasizing the need for additional financing to sustain operations and achieve profitability.

Looking ahead, Farmhouse, Inc. is actively exploring various financing options, including potential equity or debt offerings and strategic partnerships, to bolster its liquidity and support its growth initiatives. The company remains focused on leveraging its public platform to enhance shareholder value while navigating the challenges posed by market conditions for microcap companies.