OTC:FMHS
FARMHOUSE, INC. /NV
A distressed micro-cap OTC stock facing severe liquidity challenges and persistent operational losses without visible revenue generation.
Key Metrics
Investment Thesis
Bull Case
A speculative investor might buy FMHS as a high-risk lottery ticket hoping for a sudden corporate reorganization or undisclosed asset liquidation that could wipe out debt and reset the stock price. The current share price may reflect market skepticism, offering a potential entry point if the company can pivot to a viable revenue model or secure a strategic merger.
Bear Case
Investors should avoid this stock entirely as it reports no meaningful revenue for the last three years and burns cash rapidly through operations. The negative shareholders' equity of $2.3M indicates the company is effectively insolvent and relies on continuous capital raises to survive, which often leads to severe dilution.
About FARMHOUSE, INC. /NV
Farmhouse, Inc. (FMHS) operates as a micro-cap entity on the OTC market with minimal operational scale, reporting negligible revenue of $4,154 and substantial cash burn from operations in 2024. The company serves a highly limited market with no accounts receivable and significant debt obligations relative to its tiny asset base. Key products or services are not disclosed in available financial filings, suggesting a lack of established commercial traction.
Analysis
Management Discussion
Management has engaged in aggressive financing activities, raising over $106k from financing sources while operations burned nearly $464k in net income for the year. Despite generating a small gross profit of $2,279, the company recorded an operating loss of $408k driven by interest expenses of $55k and general administrative costs exceeding $286k. The balance sheet remains fragile with total liabilities of $2.4M against total assets of only $30k.
Industry Overview
The company operates in an undefined sector where traditional industry metrics do not apply due to its lack of commercial activity. Most companies in this financial state are struggling startups or shell entities attempting to find a viable business path before facing delisting.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $10.3K | $15.2K | $4.2K |
| Cost of Revenue | $3.8K | $6.9K | $1.9K |
| Gross Profit | $6.5K | $8.3K | $2.3K |
| Operating Expenses | $786.1K | $517.8K | $410.7K |
| Operating Income | $-779.6K | $-509.5K | $-408.4K |
| G&A | $403.4K | $336.1K | $286.6K |
| D&A | $94 | $0 | — |
| Other OpEx | $382.7K | $181.8K | $124.0K |
| Non-Operating Income | $336.9K | $-51.2K | $0 |
| Interest Expense | $53.1K | $51.2K | $56.0K |
| Pre-Tax Income | $-442.8K | $-560.8K | $-408.4K |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-442.8K | $-560.8K | $-408.4K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-442.8K | $-560.8K | $-464.3K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-442.8K | $-560.8K | $-464.3K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $65.9K | $8.2K | $4.6K |
| Cash & Equivalents | $62.1K | $0 | $413 |
| Accounts Receivable | — | $4.2K | $0 |
| Other Current Assets | $3.8K | $4.0K | $4.2K |
| Long-Term Assets | $0 | $0 | $26.2K |
| PP&E (Net) | $0 | — | — |
| Other LT Assets | $0 | — | — |
| Total Assets | $65.9K | $8.2K | $30.8K |
| Current Liabilities | $1.6M | $2.0M | $2.3M |
| Accounts Payable | $11.2K | $45.4K | $59.7K |
| Other Current Liab | $1.5M | $1.7M | $2.2M |
| Long-Term Liabilities | $0 | $34.0K | $34.0K |
| Total Liabilities | $1.6M | $2.0M | $2.4M |
| Shareholders' Equity | $-1.6M | $-2.0M | $-2.3M |
| Paid-In Capital | $4.2M | $4.3M | $4.4M |
| Retained Earnings | $-5.7M | $-6.3M | $-6.8M |
| Total L&E | $65.9K | $8.2K | $30.8K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-442.8K | $-560.8K | $-464.3K |
| Non-Cash Adjustments | $-244.1K | $157.7K | $105.1K |
| Working Capital Changes | $434.1K | $319.6K | $252.8K |
| Cash from Operations | $-252.8K | $-83.5K | $-106.4K |
| Cash from Investing | $390.0K | $0 | $0 |
| Cash from Financing | $-78.9K | $21.4K | $106.8K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $58.3K | $-62.1K | $413 |
| Beginning Cash | $3.8K | $62.1K | $0 |
| Ending Cash | $62.1K | $0 | $413 |
Frequently Asked Questions
How does FARMHOUSE, INC. /NV make money?
The company's financial structure suggests a single, non-operational segment characterized by massive financing cash flows likely used to service debt or fund share issuances rather than traditional product sales. There are no identifiable distinct business lines as current assets are negligible and operating expenses vastly exceed gross profit.
What are the main risks for FMHS?
The company faces extreme insolvency risk with a retained earnings deficit of $6.8M against only $413 in cash and equivalents. Investors are exposed to delisting risk due to lack of revenue and inability to meet standard financial reporting requirements for listed status. There is a high probability of dilution via common share issuances, which totaled $25,000 recently to cover operational deficits. The business model appears unsustainable given operating expenses exceeding revenue by over 98%.
What is FMHS's competitive advantage?
None identified; the company lacks market share, brand recognition, or operational scale typical of competitive advantages in any industry.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.