| Summary Of Significant Accounting Policies | NOTE
2 – Summary Of Significant Accounting Policies Basis
of Presentation The
accompanying unaudited consolidated financial statements are presented in conformity with accounting principles generally accepted in
the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission
(“SEC”). Our
interim financial statements are unaudited, and in our opinion, include all adjustments of a normal recurring nature necessary for the
fair presentation of the periods presented. The results for the interim periods are not necessarily indicative of the results to be expected
for any subsequent period or for the year ending December 31, 2024. These unaudited consolidated financial statements and related notes
should be read in conjunction with our financial statements for the year ended December 31, 2023. Principles
of Consolidation The
condensed consolidated financial statements of the Company include the accounts of American Picture House Corporation and its wholly
owned subsidiaries, Devil’s Half-Acre, LLC and Ask Christine Productions, LLC. Use
of Estimates The
preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the
reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. The most significant estimates relate to income taxes and contingencies.
The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to
be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions
provide the basis for making estimates about the carrying amount of assets and liabilities that are not readily apparent from other sources.
Actual results could differ from these estimates. Cash
and cash equivalents Cash
equivalents are short-term highly liquid investments which include short term bank deposits (up to three months from date of deposit),
that are not restricted as to withdrawals or use that are readily convertible to cash with maturities of three months or less as of the
date acquired. The Company’s policy is to maintain its cash balances with financial institutions with high credit ratings and in
accounts insured by the Federal Deposit Insurance Corporation (the “FDIC”) and/or by the Securities Investor Protection Corporation
(the “SIPC”). The Company may periodically have cash balances in financial institutions in excess of the FDIC and SIPC insurance
limits of $ 250,000 500,000 Accounts
receivable Accounts
receivable primarily consist of trade receivables due from customers for consulting services and from fees derived from licensing of
IP to content providers worldwide. As of September 30, 2024, $ 35,000 100 100 BUFFALOED Assigned
Rights to feature film, BUFFALOED Schedule
of Accounts Receivable
September
30, 2024 December
31, 2023
Accounts receivable, trade $ 35,000 $ -
Accounts receivable, CAMA - 31,948
Accounts receivable $ 35,000 $ 31,948 Allowance
for doubtful accounts The
allowance for doubtful accounts is determined with respect to amounts the Company has determined to be doubtful of collection. In determining
the allowance for doubtful accounts, the Company considers, among other things, its past experience with customers, the length of time
that the balance is past due, the customer’s current ability to pay and available information about the credit risk on such customers.
In 2023, the Company wrote off $ 193,932 no 193,932 no Prepaid
expenses At
September 30, 2024, prepaid expenses consisted of prepaid insurance, prepaid licenses, and prepaid services. Prepaid expenses are
amounts paid to secure the use of assets or the receipt of services at a future date or continuously over one or more future
periods. When the prepaid expenses are eventually consumed, they are charged to expense. The Company had $ 22,031 29,185 Produced
and Licensed Content Costs Capitalized
production costs, whether produced or acquired/ licensed rights, include development costs, direct costs and production overhead. These
amounts and licensed content are included in “Produced and Licensed Content Costs” on the balance sheet as follows: Schedule
of Produced and Licensed Content Costs
September
30, 2024 December
31, 2023
Films in development
and pre-production stage $ 349,432 $ 210,633
$ 349,432 $ 210,633 During
the nine months ended September 30, 2024, the Company capitalized $ 143,333 Impairment
Assessment for Investment in Films and Licensed Program Rights A
film group or individual film is evaluated for impairment when an event or change in circumstances indicates that the fair value of an
individual film or film group is less than its unamortized cost. During
the quarter ended March 31, 2024, the Company allowed options to two screenplays to expire and wrote-off $ 15,000 Assigned
rights to the feature film, BUFFALOED. In
November 2022, the Company obtained certain limited rights to the feature film BUFFALOED 1,380,000.00 35 0 0 23,003 0 304,875 As
partial consideration for the BC Assets being acquired by APH hereunder, APHP agreed to pay BC the first one hundred thirty thousand
dollars ($ 130,000.00 10,000.00 BUFFALOED 130,000.00 125 17 Intangible
assets The
Company’s intangible assets include in-service and under-development websites and licensed internal use software. During the year
ended December 31, 2023 the Company developed an external website that was placed in service during the third quarter of 2023. Additionally,
during the fourth quarter of 2023 the Company began developing additional aspects of its website that went live in April 2024. During
the fourth quarter of 2023, the Company licensed rights to new internal use software, but subsequently placed that project on hold and
has not established a timeline for placing the software in service. The
capitalized costs of the Company’s websites placed into service were subject to straight-line amortization over a three-year period.
Amortization expense totaled $ 5,833 250 12,417 250 Deferred
Revenue Deferred
revenue represents the amount billed to clients that has not yet been earned, pursuant to agreements entered into in current and prior
periods. As of September 30, 2024 and December 31, 2023, total net deferred revenue was $ 50,000 0 50,000 Revenues
and Costs from Services and Products 0 0 165,000 35,000 135,000 Revenues
from Films and Licensed Rights Revenue
derived from the BUFFALOED 0 0 BUFFALOED 23,003 0 Fair
Value Measurements – Level
1 - unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to
access as of the measurement date. Level
2 - pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly
observable through corroboration with observable market data. Level
3 - pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity
for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant
management judgment or estimation. Level 3 inputs are considered as the lowest priority within the fair value hierarchy. The valuation
of the right to obtain control over affiliated company, right to acquire shares of other companies, contingent consideration to be paid
upon achieving of performance milestone, certain convertible bridge loans (following the maturity date and thereafter) and certain freestanding
stock warrants and bifurcated convertible feature of convertible bridge loans issued to the units’ owners, fall under this category. This
hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining
fair value. The
fair value of cash and cash equivalents is based on its demand value, which is equal to its carrying value. Additionally, the carrying
value of all other short-term monetary assets and liabilities are estimated to be equal to their fair value due to the short-term nature
of these instruments. Valuation
of Long-Lived Assets (principally produced and licensed content costs) Stock-Based
Compensation Income
taxes The
Company accounts for income taxes under FASB ASC 740, “ Accounting for Income Taxes” Accounting for Uncertainty in Income Taxes” The
amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate
settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or
circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability
under audit. Net
Loss per Share Basic
(loss) income per share is computed by dividing net (loss) income available to Common Stockholders by the weighted average number of
common shares outstanding during the period. Diluted (loss) income per share reflects the potential dilution, using the treasury stock
method that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted
in the issuance of Common Stock that then shared in the (loss) income of the Company. In computing diluted (loss) income per share, the
treasury stock method assumes that outstanding instruments are exercised/converted, and the proceeds are used to purchase Common Stock
at the average market price during the period. Instruments may have a dilutive effect under the treasury stock method only when the average
market price of the Common Stock during the period exceeds the exercise price/conversion rate of the instruments. The
following common share equivalents are excluded from the calculation of weighted average common shares outstanding because their inclusion
would have been anti-dilutive: Schedule
of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding
September
30, 2024 December
31, 2023
Convertible
Preferred Stock 382,900,000 382,900,000
Options to Purchase Common
Stock 4,583,471 -
387,483,471 382,900,000 Segment
Information Operating
segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief
operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance.
For the period of these financial statements, the CEO of the Company was the CODM. The Company views its operations and manages its business
as one operating and reporting segment. New
accounting standards The
Company’s management has evaluated all the recently issued, but not yet effective, accounting standards and guidance that have
been issued or proposed by the FASB or other standards-setting bodies through the filing date of these financial statements and does
not believe the future adoption of any such pronouncements will have a material effect on the Company’s financial position and
results of operations. |
