What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-14 · 391 added, 296 removed, 416 unchanged (62% of the section changed)

Financial Statements.

Financial Statements (Unaudited)

PICTURE HOUSE CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2025

CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2025

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets, June 30, 2025 (unaudited) and December 31, 2024

Condensed Consolidated Statements of Operations, for the three and six months ended June 30, 2025 and 2024

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit), for the three and six months ended June 30, 2025 and 2024

Condensed Consolidated Statements of Cash Flows, for the six months ended June 30, 2025 and 2024

Condensed Consolidated Balance Sheets, September 30, 2025 (unaudited) and December 31, 2024

Condensed Consolidated Statements of Operations, for the three and nine months ended September 30, 2025 and 2024

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit), for the three and nine months ended September 30, 2025 and 2024

Condensed Consolidated Statements of Cash Flows, for the nine months ended September 30, 2025 and 2024

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

and cash equivalents

- related party

September 30, 2025

December 31, 2024

Current Assets

and licensed content costs

receivable, film financing arrangements

Intangible assets, net of accumulated amortization of $ 30,917 and $ 19,250 as of June 30, 2025 and December 31, 2024, respectively.

AND STOCKHOLDERS’ DEFICIT

payable and accrued expenses

revenue, current portion

payable - related party

payable - EIDL loan

payable - related party

Line of Credit

Cash and cash equivalents

Accounts receivable

Prepaid expenses

Receivable - related party

Total Current Assets

Produced and licensed content costs

Loans receivable, film financing arrangements

Intangible assets, net of accumulated amortization of $ 36,750 and $ 19,250 as of September 30, 2025 and December 31, 2024, respectively.

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities

injury disaster loan, non-current

Stockholders’

Equity (Deficit):

Stock $ 0.0001 par value.

Cash overdraft

Accounts payable and accrued expenses

Deferred revenue, current portion

Interest payable - related party

Interest payable - EIDL loan

Note payable - related party

Commercial Line of Credit

Total Current Liabilities

Economic injury disaster loan, non-current

Total Liabilities

Stockholders’ Equity (Deficit):

Common Stock $ 0.0001 par value.

1,000,000,000 authorized.

112,899,325 and 111,399,325 issued and outstanding as of June 30, 2025 and December

31, 2024, respectively.

Stock $ 0.0001 par value.

112,899,325 and 111,399,325 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.

Preferred Stock $ 0.0001 par value.

1,000,000 authorized.

3,839 and 3,829 issued and outstanding as of June 30, 2025 and December 31, 2024,

respectively.

paid in capital

3,839 and 3,829 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.

Additional paid in capital

Accumulated deficit

( 8,646,976 )

( 7,291,954 )

Stockholders’ Equity (Deficit)

Total Stockholders’ Equity (Deficit)

( 1,138,629 )

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

from audited information

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

* Derived from

audited information

accompanying notes are an integral part of these unaudited interim consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS

months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Cost of revenues

23 unchanged sentences

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

the six months ended June 30, 2025 and 2024

the nine months ended September 30, 2025 and 2024

Preferred Stock

Additional Paid In

Stockholders’ Equity

Total Stockholders’ Equity

Balance, December 31, 2023

10 unchanged sentences

$ ( 6,922,254 )

Balance, September 30, 2024

$ ( 7,248,768 )

$ ( 273,486 )

Preferred Stock

Additional Paid In

Stockholders’ Equity

Total Stockholders’

Balance, December 31, 2024

$ ( 7,291,954 )

Preferred stock redeemed in exchange for assets

10 unchanged sentences

$ ( 1,106,107 )

Stock option compensation

Balance, September 30, 2025

$ ( 8,646,976 )

$ ( 1,138,629 )

$ ( 8,646,976 )

$ ( 1,138,629 )

accompanying notes are an integral part of these unaudited interim consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

months ended June 30,

Flows from Operating Activities:

Income (Loss)

Nine months ended September 30,

Cash Flows from Operating Activities:

Net Income (Loss)

$ ( 1,355,022 )

$ ( 2,227,072 )

to Reconcile Net Income (Loss) to Net Cash Flows from Operating Activities:

of produced and licensed costs

of loan receivable, film financing arrangements

option expense

stock issued for services

stock redeemed in exchange for assets

in operating assets and liabilities:

- related party

receivable, film financing arrangements

and licensed costs

payable and accrued expenses

to related party

payable - related parties

payable - EIDL loan

Cash Flows from Operating Activities

Flows from Investing Activities:

Adjustments to Reconcile Net Income (Loss) to Net Cash Flows from Operating Activities:

Expiration of produced and licensed costs

Impairment of loan receivable, film financing arrangements

Stock option expense

Commons stock issued for services

Preferred stock redeemed in exchange for assets

Amortization expense

Change in operating assets and liabilities:

Accounts receivable

Prepaid expenses

Receivables - related party

Loans receivable, film financing arrangements

Produced and licensed costs

Cash overdraft

Accounts payable and accrued expenses

Payable to related party

Interest payable

Interest payable - related parties

Interest payable - EIDL loan

Deferred revenue

Net Cash Flows from Operating Activities

Cash Flows from Investing Activities:

Flows from Financing Activities:

from debt borrowings - related parties

of debt borrowings - related parties

from commercial line of credit

on commercial line of credit

from sale of Common Stock

Intangible assets

Net Cash Flows from Investing Activities

Cash Flows from Financing Activities:

Increase in Cash and Cash Equivalents

and Cash Equivalents, Beginning of Period

and Cash Equivalents, End of Period

Proceeds from issuance of note payable

Proceeds from debt borrowings - related parties

Repayment of debt borrowings - related parties

Proceeds from commercial line of credit

Repayments on commercial line of credit

Proceeds from sale of Common Stock

Net Cash Flows from Financing Activities

Net Increase in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Period

Cash and Cash Equivalents, End of Period

accompanying notes are an integral part of these unaudited interim consolidated financial statements.

PICTURE HOUSE CORPORATION

to (Unaudited) Condensed Consolidated Financial Statements

11 unchanged sentences

House Corporation.

is focused on the development, financing and production of feature films and related content.

There were no changes to the Company’s

organizational structure during the three months ended September 30, 2025.

(As previously disclosed, the Company dissolved Devil’s

Half-Acre, LLC and Ask Christine Productions, LLC on May 12, 2025.)

Company’s year-end is December 31.

39 unchanged sentences

of Accounts Receivable

Accounts receivable,

September 30,

Accounts receivable, CAMA

Accounts receivable

for doubtful accounts

f or doub tful accounts

allowance for doubtful accounts is determined with respect to amounts the Company has determined to be doubtful of collection.

2 unchanged sentences

that the balance is past due, the customer’s current ability to pay and available information about the credit risk on such customers.

Management determined that no allowance for doubtful accounts is necessary at June 30, 2025 or December 31, 2024.

June 30, 2025, prepaid expenses consisted of prepaid insurance, prepaid licenses, and prepaid services.

Management determined that no allowance for doubtful accounts is necessary at September 30, 2025 or December 31, 2024.

September 30, 2025, prepaid expenses consisted of prepaid insurance, prepaid licenses, and prepaid services.

Prepaid expenses are amounts

2 unchanged sentences

The Company had $ 45,306 and $ 29,629 in prepaid expenses as of

June 30, 2025 and December 31, 2024, respectively.

September 30, 2025 and December 31, 2024, respectively.

and Licensed Content Costs

12 unchanged sentences

of Produced and Licensed Content Costs

Films in development

and pre-production stage

September 30,

Films in development and pre-production stage

Produced and licensed

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Luessenhop was required to do by the APHP Luessenhop Agreement dated March 11, 2025.

Assessment for Investment in Films and Licensed Program Right

Assessment f or Investment in Films and Licensed Program R ig ht

June 12, 2025, the Company’s Chief Executive Officer reported to the Board of Directors that the Company will not pursue production

4 unchanged sentences

as an impairment loss of $ 150,834 .

of June 30, 2025, the Company has one property, TURN UP THE SUN!, in pre-production and continues to actively market it through

its sales agent, The Syndicate, including at film festivals, and is pursuing distribution arrangements with potential streaming partners.

Although the original option to acquire a 24 % ownership interest expired on January 7, 2025, the option has been extended under the current

agreement with SSS Entertainment, LLC such that the original terms remain exercisable.

Based on the extension, ongoing marketing efforts,

and expected ability to consummate a distribution or strategic transaction, management believes the carrying value of the related asset

remains recoverable and, therefore, no impairment was recognized as of June 30, 2025.

the quarter ended June 30, 2024, the Company allowed options to two screenplays to expire and wrote-off $ 15,000 of previously capitalized

option costs.

rights to the feature film, BUFFALOED.

of September 30, 2025, the Company has one property, TURN UP THE SUN!, which is completed and is awaiting a release date.

and continues

to be actively marketed through its sales agent, The Syndicate, including at film festivals, and is pursuing distribution

arrangements with potential streaming partners.

Although the original option to acquire a 24 %

ownership interest expired on January 7, 2025, the option has been extended under the current agreement with SSS Entertainment, LLC

such that the original terms remain exercisable.

Based on the extension, ongoing marketing efforts, and expected ability to

consummate a distribution or strategic transaction, management believes the carrying value of the related asset remains recoverable

and, therefore, no impairment was recognized as of September 30, 2025.

the nine months ended September 30, 2024, the Company allowed options to two screenplays to expire and wrote-off $ 15,000 of previously

capitalized option costs.

r ig hts to the f eature f ilm, BUFFALOED.

November 2022, the Company obtained certain limited rights to the feature film BUFFALOED from Bold Crayon, Inc.

2 unchanged sentences

(“the BC Assets”).

During the quarters ended June 30, 2025 and 2024, the Company reported revenues of $ 0 and $ 0 , respectively,

During the quarters ended September 30, 2025 and 2024, the Company reported revenues of $ 0 and $ 0 , respectively,

from the CAMA.

During the six months ended June 30, 2025 and 2024, the Company reported revenues of $ 0 and $ 23,003 , respectively, from

During the nine months ended September 30, 2025 and 2024, the Company reported revenues of $ 0 and $ 23,003 , respectively,

from the CAMA.

partial consideration for the BC Assets acquired by APHP, APHP paid BC the first one hundred thirty thousand dollars ($ 130,000.00 USD)

2 unchanged sentences

to exceed one hundred twenty-five ( 125 ) Preferred Shares.

In April 2025, , the Company issued BC 20 Preferred Shares of APHP pursuant

In April 2025, the Company issued BC twenty Preferred Shares of APHP pursuant

to this arrangement.

1 unchanged sentence

capitalized costs of the Company’s websites placed into service were subject to straight-line amortization over a three-year 3

Amortization expense totaled $ 5,834 and $ 5,833 for the quarters ended June 30, 2025 and 2024, respectively.

Amortization expense

totaled $ 11,667 and $ 6,583 for the six months ended June 30, 2025 and 2024, respectively.

Amortization expense totaled $ 5,833

for the quarters ended September 30, 2025 and 2024, respectively.

Amortization expense totaled $ 17,500

for the nine months ended September 30, 2025 and 2024, respectively.

noted above, on March 11, 2025, the Company’s past president, Alfred John Luessenhop, Jr was assigned APHP’s rights under

1 unchanged sentence

revenue represents the amount billed to clients that has not yet been earned, pursuant to agreements entered into in current and prior

As of June 30, 2025 and December 31, 2024, total net deferred revenue was $ 50,000 and $ 50,000 , respectively.

The $ 50,000 in

deferred revenue relates to the grant of a producer credit to a proposed film.

and Costs from Services and Products – Historically, Company’s revenue comes from contracts with customers for

consulting services and from the licensing and distribution of film and other entertainment rights.

As of September 30, 2025 and December 31, 2024, total net deferred revenue was $ 50,000 and $ 50,000 , respectively.

in deferred revenue relates to the grant of a producer credit to a proposed film.

and Costs from Services and Products – Historically, Company’s revenue comes from contracts with customers

for consulting services and from the licensing and distribution of film and other entertainment rights.

The consulting services typically

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The Company has elected to adopt this practical expedient with regards to its consulting services revenue.

Revenues for the three months and six months ended June 30, 2025 and 2024 totaled $ 0 and $ 0 , respectively.

Revenues for the three months and nine months ended September 30, 2025 and 2024 totaled $ 0 and $ 0 , respectively.

from Films and Licensed Rights , are calculated based on expected ultimate revenues estimated over a period not to exceed ten

5 unchanged sentences

estimates over a period not to exceed twenty years following the date of acquisition.

derived from the BUFFALOED CAMA totaled $ 0 and $ 0 for the quarters ended June 30, 2025 and 2024, respectively.

derived from the BUFFALOED CAMA totaled $ 0 and $ 0 for the quarters ended September 30, 2025 and 2024, respectively.

Revenue derived

from the BUFFALOED CAMA totaled $ 0 and $ 23,003 for the six months ended June 30, 2025 and 2024, respectively.

from the BUFFALOED CAMA totaled $ 0 and $ 23,003 for the nine months ended September 30, 2025 and 2024, respectively.

Value Measurements – The Company measures and discloses fair value in accordance with the ASC Topic 820, Fair Value

76 unchanged sentences

of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Shares Outstanding

September 30,

Convertible Preferred Stock

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applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

As of June 30, 2025, the Company had a working capital deficit of approximately ($ 1,495,000 ) and an accumulated deficit of approximately

As of September 30, 2025, the Company had a working capital deficit of approximately ($ 1,522,000 ) and an accumulated deficit of approximately

$ 8,647,000 .

Further, as of June 30, 2025, the Company had $ 1,104 cash.

These factors, among others, raise significant doubt about the

Company’s ability to continue as a going concern.

The accompanying financial statements do not include adjustments to reflect the

possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may

result from an inability of the Company to continue as a going concern.

Further, as of September 30, 2025, the Company had $ 102,000 in cash.

These factors, among others, raise significant doubt

about the Company’s ability to continue as a going concern.

The accompanying financial statements do not include adjustments to

reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities

that may result from an inability of the Company to continue as a going concern.

Company has a limited operating history, which makes it difficult to evaluate current business and future prospects.

During the first

six months of 2025, the Company reported $ 0 revenues.

During 2024 and 2023, the Company reported approximately $ 53,000 and $ 164,000 of

total revenues, respectively.

nine months of 2025, the Company reported $ 0 revenues.

During 2024 and 2023, the Company reported approximately $ 53,000 and $ 164,000

of total revenues, respectively.

Management expects the Company to incur further losses in the foreseeable future due to costs associated

4 unchanged sentences

by the Company’s CEO, to fund its month-to-month cash flow needs.

During the first six months of 2025, the Company borrowed $ 230,906

from and repaid $ 10,080 to Mr.

MacGregor pursuant to a master loan agreement.

The master note agreements accrue interest at a rate of

4.4 % due and payable in a lump sum upon maturity of the obligation.

These notes are not convertible.

Film Production Loans

During the first nine months of 2025, the Company borrowed approximately

$ 331,000 from and repaid approximately $ 15,000 to Mr.

MacGregor and the Noah Morgan Private Family Trust pursuant to master loan agreements.

The master note agreements accrue interest at a rate of 4.4 % due and payable in a lump sum upon maturity of the obligation.

are not convertible.

4 — Film Production Loans and Receivables

Mezzanine Loan Agreement with Barron’s Cove Movie, LLC

4 unchanged sentences

proceeds received by Barron’s Cove Movie, LLC related to the movie, whichever occurs first.

maintains a first-priority recoupment/loan position against BARRON’S COVE, acquired August 1, 2025, from SSS Entertainment,

Under the applicable agreements and security filings (UCC-1), APHP is entitled to receive first-priority distributions from specified

project receipts after sales fees, distribution expenses, participations, residuals and other senior deductions (see Note 5 “Produced

& Licensed Content”).

As of the date of this report, APHP is evaluating the exercise of remedies under Article 9 of the New

York Uniform Commercial Code, including potential foreclosure on collateral, which may result in APHP obtaining greater control over

project revenues and/or related assets.

There can be no assurance as to, if, or when any such remedies will be exercised or the outcome

Loan Agreement with PNP Movie, LLC

February 2024, the Company agreed to loan PNP Movie, LLC $ 97,475 to be used solely in connection with a named feature length motion picture.

In April 2024, the loan agreement was amended whereby the Company agreed to lend an additional $ 42,525 and to use best efforts to increase

the aggregate financing to $ 597,475 .

As of June 30, 2025 and December 31, 2024, a total of $ 196,200 had been advanced to PNP Movie, LLC.

These loans, plus a premium of twenty percent (20%), are due and payable on that date which is the earlier of either (a) twelve (12) months

from the date of the loan, or (b) from allocable proceeds received by PNP Movie, LLC related to the movie, whichever occurs first .

Additionally,

the agreement states that Mr.

MacGregor shall be entitled to a producer fee based on work to be performed and that Mr.

MacGregor will

receive a “Producer” credit and his son a “Co-Producer” credit on the film.

loan associated with People Not Places has been in default for more than 120 days.

The project is experiencing significant post-production

challenges and management believes there is significant uncertainty regarding whether the film will be completed or released.

concluded that the loan investment is uncollectible and has no future economic benefit, and accordingly, recorded a full write-off of

the investment during the quarter.

The write-off was recorded as an impairment loss of $ 196,200 .

Movie, LLC senior loan (default;

written off).

In February 2024, the Company agreed to lend $ 97,475 to PNP Movie, LLC for a feature-length

motion picture;

in April 2024, the agreement was amended to provide an additional $ 42,525 and to use best efforts to increase aggregate

financing to $ 597,475 .

As of September 30, 2025, cumulative advances totaled $ 196,200 ($ 196,200 at December 31, 2024).

Under the agreement,

principal plus a 20% premium was due on the earlier of twelve months from funding or receipt of allocable project proceeds.

loan has been in default for more than 120 days, and management believes there is significant uncertainty regarding completion or release

Accordingly, during the quarter ended June 30, 2025, the Company recorded a full write-off of $ 196,200 as impairment

loss in the condensed statements of operations.

No recoveries were recognized as of the reporting date.

Background terms were initially

disclosed in our Form 10-Q for the quarter ended June 30, 2025.

5 — Produced & Licensed Content Costs (Film Projects)

COVE — Completed;

On August 1, 2025, APHP acquired from SSS Entertainment, LLC a first-priority recoupment/loan position related

to this title (see Note 4 “Film Production Loans and Receivables”).

APHP also holds an “in Association with”

credit, and Bannor Michael MacGregor holds a Producer credit.

The film premiered at the Hamptons International Film Festival in October

2024 and was released in the U.S.

on June 6, 2025 by Well Go USA.

As reported by the producer/sales agent, a three-year U.S.

license with Paramount+ was executed in early October 2025 (see Note 12 “Subsequent Events”).

( aka POSE) — Completed;

Awaiting Release Date.

( aka POSE) .

APHP earned an “in Association with” credit;

MacGregor holds a producer

The film was completed and awaiting release as of September 30, 2025.

APHP currently holds an option

to purchase a 24 % ownership position through December 31, 2025, which would require an additional investment of $ 725,000 to exercise.

As of September 30, 2025, the option had not been exercised.

The Company carries this asset on the balance sheet at $ 300,000 .

No revenue was recognized as of quarter-end.

Related-party

The producer credit is held by Mr.

MacGregor, the Company’s CEO.

See Note 11 “Related Party Transactions”.

Awaiting Release Date.

The film was completed and awaiting release as of September 30, 2025.

APHP anticipates earning an “in Association with”

credit and issuing 250,000 shares

Sanghani (or an assignee), of SSS Entertainment LLC, a producer of the film, as consideration attributed to this title.

date APHP has not issued such shares, pending final negotiations and anticipates issuing the shares in Q4;

APHP does not own an

equity interest in the film.

No revenue was recognized as of quarter-end.

Related-party

A producer credit may also be granted to Mr.

MacGregor, the Company’s CEO.

See Note 11 “Related Party

Transactions”.

HIGHWAY — Completed;

Awaiting Release Date.

The film was completed and awaiting release as of September 30, 2025.

APHP anticipates earning an “in association

with” credit.

APHP anticipates issuing 250,000

common shares to Mr.

Sanghani (or an assignee), of SSS

Entertainment, a producer of the film, as consideration attributed to this title.

To date APHP has not issued such shares and is in

final negotiations and anticipates issuing the shares in Q4;

APHP does not own an equity interest in the film.

No revenue was recognized as of quarter-end.

Related-party

A producer credit may also be issued to Mr.

MacGregor, the Company’s CEO.

See Note 11 “Related Party Transactions”.

(aka GET DA BAG ) — In Pre-Production.

(aka GET DA BAG ).

As of September 30, 2025, the project was in pre-production, with principal photography planned for

mid-December 2025 in New Orleans, Louisiana, subject to financing, production and talent conditions.

APHP expects to co-produce with

SSS Entertainment and Mr.

MacGregor is expected, but subject to final negotiations, to receive a Producer credit.

APHP anticipates

owning an ownership stake in the film subject to future investment.

No revenue was recognized as of quarter-end.

Related-party

A producer credit may also be issued to Mr.

MacGregor, the Company’s CEO.

See Note 11 “Related Party Transactions”.

6 — Intangible Assets

1 unchanged sentence

Schedule of Intangible Assets

September 30, 2025

December 31, 2024

Website placed in service

1 unchanged sentence

Intangible assets, gross

Accumulated amortization

noted above, on March 11, 2025, the Company’s past president, Alfred John Luessenhop, Jr was assigned APHP’s rights under

a Software License Agreement dated November 16, 2023, and a Microsoft Azure Cloud Services Agreement.

were no impairment charges associated with the Company’s identifiable intangible assets during the three and six months ended June

30, 2025 and 2024.

expense totaled $ 5,834 and $ 5,833 for the three months ended June 30, 2025 and 2024, respectively.

Amortization expense totaled $ 11,667

and $ 6,583 for the six months ended June 30, 2025 and 2024, respectively.

6 – Notes Payable

were no impairment charges associated with the Company’s identifiable intangible assets during the three and nine months ended

September 30, 2025 and 2024.

Amortization expense totaled $ 5,833 and $ 5,833 for the nine months ended September 30, 2025 and 2024, respectively.

Amortization expense totaled $ 17,500 and $ 12,417 for the nine months ended September 30, 2025 and 2024, respectively .

7 — Notes Payable and Line of Credit

Related-party

notes (CEO and Noah Morgan Private Family Trust), commercial lines of credit, EIDL loan;

activity during Q3.

Payable – Mr.

the six months ended June 30, 2025, the Company borrowed $ 230,906 , from and repaid $10,080 to Mr.

MacGregor pursuant to a master loan

agreement dated March 1, 2023.

the six months ended June 30, 2024, the Company borrowed $ 125,500 from and repaid $ 53,500 to Mr.

MacGregor under the same master loan

the nine months ended September 30, 2025, the Company borrowed $ 302,822 , from and repaid $ 15,119 to Mr.

MacGregor pursuant to a master

loan agreement dated March 1, 2023.

the nine months ended September 30, 2024, the Company borrowed $ 70,292 from and repaid $ 30,310 to Mr.

MacGregor under the same master

loan agreement.

The master note agreement accrues interest at a rate of 4.4 % due and payable in a lump sum upon maturity of the obligation.

This note is not convertible.

Morgan Private Family Trust Loan Agreement (“NMPFT”)

the six months ended June 30, 2025, the Company borrowed $ 29,000 ,

from and repaid $ 0

to NMPFT pursuant to a master loan agreement.

During the six months ended June 30, 2024, the Company borrowed $ 280,000

from and repaid $ 0

to NMPFT under the same master loan agreement.

The master note agreement accrues interest at a rate of 4.4 %

due and payable in a lump sum upon maturity of the obligation.

Morgan Private Fami ly Trust Loan Agreement (“NMPFT” )

the nine months ended September 30, 2025, the Company borrowed $ 29,000 , from and repaid $ 0 to NMPFT pursuant to a master loan agreement.

During the nine months ended September 30, 2024, the Company borrowed $ 280,000 from and repaid $ 0 to NMPFT under the same master loan

The master note agreement accrues interest at a rate of 4.4 % due and payable in a lump sum upon maturity of the obligation.

This note is not convertible.

of these loan proceeds were used to fund the senior mezzanine loan to Barron’s Cove Movie, LLC.

$ 200,000 of these loan proceeds were used to fund the senior mezzanine loan to Barron’s Cove Movie,

Payable – Board Member

2 unchanged sentences

during the first quarter of 2025.

In j ury Disaster Loan

Injury Disaster Loan

March 2021, the Company executed an Economic Injury Disaster Loan (“EIDL ”) secured loan with the U.S.

6 unchanged sentences

April 2024, the Company entered into a line of credit agreement with American Express.

During the six months ended June 30, 2024, the

Company borrowed a total of $ 142,500

under the line and repaid principal of $ 29,052 .

During the six months ended June 30, 2025, the Company borrowed a total of $ 1,050

under the line and repaid principal of $ 0 .

The borrowings on the line of credit bear interest at rates ranging from 16.09 %

During the nine months ended September 30, 2024,

the Company borrowed a total of $ 142,500 under the line and repaid principal of $ 29,052 .

During the nine months ended September 30, 2025,

the Company borrowed a total of $ 1,050 under the line and repaid principal of $ 0 .

The borrowings on the line of credit bear interest

at rates ranging from 16.09 % to 34.3 %.

At present, the Company cannot draw upon the line of credit until the Company pays it down to

MacGregor has personally guaranteed these loans.

Fund II, L.P.

Promissory Note (Sept 22, 2025).

The Company issued an unsecured $ 115,000 promissory note to Labrys Fund II, L.P.

The note matures twelve months from issuance and permits prepaymentwithin 181 days at stated premiums.

It includes a discretionary

proceeds sweep on certain future financings and customary covenants/events of default;

upon default, the balance is immediately due at

Conversion is permitted only upon default or missed amortization, at 65% of the lowest traded price over the twenty prior

trading days, subject to a 4.99% (up to 9.99%) ownership cap and share-reserve requirements .

Amortization begins March 23, 2026 with

monthly payments through maturity.

As of September 30, 2025, there were no events of default, conversions, or prepayments.

Line of Credit.

September 12, 2025, the Company entered into an Equity Line of Credit Agreement (“ELOC”) with RH2 Equity Partners, L.P.,

and a related Registration Rights Agreement.

The ELOC provides the Company the right, at its discretion and subject to specified

conditions, to sell shares of its common stock to the investor over a 24-month period for aggregate gross purchase price up to the

lesser of $ 100.0

million or the Maximum Common Stock Issuance (as defined therein).

Proceeds, if any, are for general corporate purposes.

issuable, if and when issued, will be offered and sold in reliance on Section 4(a)(2) and/or Rule 506 under the Securities Act of

1933, as amended.

The Company filed the Agreements as Exhibits 10.1 and 10.2 to its Current Report on Form 8-K on September 19,

As of September 30, 2025, no shares had been issued and no proceeds had been received pursuant to the ELOC.

8 — Equity and Equity-Based Compensation

Entertainment — POSE .

As previously disclosed, under a November 11, 2024 agreement the Company agreed to issue 1,000,000

common shares and to pay $ 725,000

beneficial interest in Turn Up the Sun!

(aka POSE ), subject to a default provision requiring an additional 500,000

shares upon non-payment.

During the quarter ended June 30,

2025, the Company issued 500,000

shares under that default provision.

No additional shares were

issued during the quarter ended September 30, 2025.

Company has 1,000,000,000 common shares authorized.

As of August 14, 2025, the Company has 112,899,325 shares issued and outstanding.

As of August 14, 2025, the total number of shareholders of record was 333 .

As of October 27, 2025, the Company has 112,899,325 shares issued and outstanding.

As of October 27, 2025, the total number of shareholders of record was 333 .

Common Stock has a one share, one voting right, with no other rights.

24 unchanged sentences

Stock Activity

the six months ended June 30, 2024, the Company sold 75,000 shares of Common Stock resulting in total proceeds of $ 15,000 .

of Common Stock were sold during the six month ended June 30, 2025.

the nine months ended September 30, 2024, the Company sold 691,000 shares of Common Stock resulting in total proceeds of $ 169,000 .

shares of Common Stock were sold during the nine months ended September 30, 2025.

Stock Activity

20 unchanged sentences

of employment (or such longer period as determined by the Board of Directors).

the quarters ended June 30, 2025 and 2024, the Company recorded $ 232,995 and $ 0 of stock option expense.

During the six month periods

ended June 30, 2025 and 2024, the Company recorded $ 306,030 and $ 1,258,159 of stock option expense, respectively.

the quarters ended September 30, 2025 and 2024, the Company recorded $ 73,035 and $ 0 of stock option expense.

During the nine month periods

ended September 30, 2025 and 2024, the Company recorded $ 379,065 and $ 1,258,159 of stock option expense, respectively.

Option Grants

February 8, 2024, the Company’s Board of Directors authorized the issuance of 250,000

options to each of its nine board members, 1,673,250

options to advisors, 662,983

options to Mr.

Macgregor, and 497,238

options to Mr.

Blanchard for an aggregate of 5,083,471

options with the rights to purchase common shares of the Company at an exercise price of $ 0.0125

February 8, 2024, the Company’s Board of Directors authorized the issuance of 250,000 options to each of its nine board members,

1,673,250 options to advisors, 662,983 options to Mr.

Macgregor, and 497,238 options to Mr.

Blanchard for an aggregate of 5,083,471 options

with the rights to purchase common shares of the Company at an exercise price of $ 0.0125 per share.

As all of the options vested 100 %

upon grant, the Company recorded $ 1,258,160

of stock option compensation expense in the quarter ended March 31, 2024.

Share-based compensation expense is reported within

General and Administrative expenses.

Also during 2024, two of the directors resigned from the Board and forfeited options to

purchase an aggregate of 500,000

shares of Common Stock.

In November 2024, the Board granted management the right to issue options to purchase an aggregate of 5,569,967

shares of Common Stock to two consultants.

9 – Contingencies and Uncertainties

upon grant, the Company recorded $ 1,258,160 of stock option compensation expense in the quarter ended March 31, 2024.

Share-based compensation

expense is reported within General and Administrative expenses.

Also during 2024, two of the directors resigned from the Board and forfeited

options to purchase an aggregate of 500,000 shares of Common Stock.

In November 2024, the Board granted management the right to issue

options to purchase an aggregate of 5,569,967 shares of Common Stock to two consultants.

10 — Commitments and Contingencies

Potential JAMS arbitrations — consulting agreements (Sanger;

Subsequent to quarter-end, JAMS administratively opened two matters styled Jonathan Sanger v.

American Picture House Corporation (JAMS

5220010741) and Michael Jones v.

American Picture House Corporation (JAMS Case No.

APHP has not been served in accordance

with the consulting agreements’ notice provisions and, on November 5, 2025, requested that JAMS defer arbitrator selection/administration

pending proof of contract-compliant service and reserved all rights (including consolidation if properly commenced).

No arbitrator has

been appointed and no schedule has issued.

Based on current information, management cannot conclude that a loss is probable and is unable

to reasonably estimate a possible loss or range of loss, if any, at this time.

APHP intends to evaluate any claims and defend its interests

as appropriate,

and Uncertainties – The Company’s operations are subject to significant risks and uncertainties including financial,

3 unchanged sentences

11 — Related Party Transactions

Company has agreed to indemnify Mr.

MacGregor for all legal and professional costs originating from the lawsuit Randall S.

Bannor Michael MacGregor, Jeffery Katz, and Life Design Station International, Inc.

– Supreme Court of New York, County

of Kings, Index No.:

This indemnification arrangement remained in effect through the conclusion of the litigation, which

was permanently discontinued in May 2025.

On August 1, 2025, Bannor Michael MacGregor, the Company’s Chief Executive Officer and Chairperson, entered into a Pledge and Agreement

August 1, 2025, Bannor Michael MacGregor, the Company’s Chief Executive Officer and Chairperson, entered into a Pledge and Agreement

Not to Convert Preferred Shares with the Company.

5 unchanged sentences

entered into to provide stability to the Company’s capital and voting structure.

the three months ended June 30, 2025 and 2024, the Company incurred approximately $ 45,000 and $ 45,000 , respectively, of professional

the three months ended September 30, 2025 and 2024, the Company incurred approximately $ 15,000 and $ 45,000 , respectively, of professional

fees to a legal firm affiliated with a member of the Board of Directors.

During the six months ended June 30, 2025 and 2024, the Company

incurred approximately $ 90,000 and $ 90,000 , respectively, of professional fees to a legal firm affiliated with a member of the Board

of Directors.

As of June 30, 2025 and December 31, 2024, $ 136,000 and $ 94,000 , respectively, were unpaid.

During the nine months ended September 30, 2025 and 2024, the

Company incurred approximately $ 105,000 and $ 135,000 , respectively, of professional fees to a legal firm affiliated with a member of

the Board of Directors.

As of September 30, 2025 and December 31, 2024, $ 146,000 and $ 94,000 , respectively, were unpaid.

Company has consulting services relationships with members of the Board whereby they were compensated a total of $ 15,000 and $ 15,000

during the three months ended June 30, 2025, and 2024, respectively.

During the six months ended June 30, 2025 and 2024, the Company

incurred approximately $ 45,000 and $ 45,000 , respectively to the same individuals.

As of June 30, 2025 and December 31, 2024, $ 15,000

during the three months ended September 30, 2025, and 2024, respectively.

During the nine months ended September 30, 2025 and 2024, the

Company incurred approximately $ 45,000 and $ 45,000 , respectively to the same individuals.

As of September 30, 2025 and December 31, 2024,

$ 30,000 and $ 0 , respectively, were accrued and unpaid.

August 2022, the Company funded Devil’s Half-Acre Productions, LLC owned by Alfred John Luessenhop to produce the feature film

Devil’s Half-Acre written and directed by Dashiell Luessenhop, a son of Alfred John Luessenhop, a former Board member.

2023 APHP obtained 100 % ownership of Devil’s Half-Acre Productions, LLC and executed a new option agreement with the writer.

September 2023, APHP paid a $ 5,000 option fee to the writer.

This option entitles APHP to produce the film by July 2024, with the ability

to extend the option for an additional two (2) years.

As of December 31, 2024, the Company has capitalized $ 152,264 of production costs

associated with this film.

On March 11, 2025, an agreement was executed between the Company’s past president, Alfred John Luessenhop,

(“Luessenhop”) and APHP, along with its affiliated entities Devil’s Half-Acre, LLC and Ask Christine Productions,

Under the terms of the agreement, Luessenhop agreed to transfer one million shares of APHP common stock, valued at $ 256,000 , to

In exchange, Luessenhop received all rights, title, and interest in the motion picture project DEVIL’S HALF-ACRE, including

the screenplay, filmed footage, copyright, and related materials, as well as the screenplay and associated option agreement for ASK

Additionally, Luessenhop was also assigned APHP’s rights under a Software License Agreement dated November 16, 2023,

and a Microsoft Azure Cloud Services Agreement.

The agreement also included a mutual release of all claims related to the referenced

screenplays and agreements.

2022, the Company entered into definitive agreements to secure Bold Crayon Corporation (“Bold Crayon” or “BC”)

as a development partner and purchased certain assets from Bold Crayon, including a portion of the rights to a feature film, and copyrights

on six film titles.

The Parties agree that APHP will designate BC as a “Content Partner”, wherein BC will develop content

and present APHP with a first opportunity to co-finance and/or coproduce content developed by BC subject to a mutually agreed upon Content

Partner Agreement and BC will accept such designation.

The Company anticipates any rights and obligations between APHP and BC to be effective

upon the greenlighting of a specific film or show by Mr.

MacGregor, CEO and a director of the Company.

MacGregor is also the CEO

and a director of Bold Crayon and effectively controls Bold Crayon as a managing manager of the trustee of the trust that owns the majority

ownership interest in Bold Crayon.

Michael Blanchard was a past Director and Secretary/Treasurer of Bold Crayon and is a director

The transaction between the parties has been consummated and all IP and copyrights have been transferred.

During the quarters

ended June 30, 2025 and 2024, the Company reported revenues of $ 0 and $ 23,003 , respectively, from the CAMA.

Inception to date, the Company

has received $ 304,875 under the CAMA.

As partial consideration for the BC Assets being acquired by APHP hereunder, APHP agreed to pay

BC the first one hundred thirty thousand dollars ($ 130,000.00 USD) that APHP collected from the BUFFALOED and to deliver one Preferred

Share to BC for each ten thousand dollars ($ 10,000.00 USD), in value paid to the APHP from the BUFFALOED receivable above the

one hundred thirty thousand dollars ($ 130,000.00 USD), not to exceed one hundred twenty-five ( 125 ) Preferred Shares.

As of June 30, 2025,

Bold Crayon was due to receive 20 Preferred Shares of APHP.

These Preferred Shares were issued to BC at the end of April 2025.

November 11, 2024, the Company entered into an agreement with SSS Entertainment LLC wherein the Company exchanged one million common

shares of APHP and the promise to pay $ 725,000 on or before January 6, 2025, for a 24 % beneficial ownership interest in the feature film

currently titled, TURN UP THE SUN also referred to as POSE, starring James McVoy, Aisling Franciosi, and Lucas Bravo.

UP THE SUN aka POSE is a psychological thriller, where two couples arrive at a countryside mansion they booked unknowingly

together and discover strange occurrences during their stay.

As part of the agreement APHP will receive an “in Association”

credit for the Company and a “producer” credit for Mr.

MacGregor, the Company’s CEO.

The agreement also has a default

provision, wherein the event of a default, specifically non-payment of the aforementioned $725,000, the Company will forfeit right to

its beneficial ownership, but not the two credits and further that SSS Entertainment will receive another 500,000 common shares in APHP.

During the quarter ended June 30, 2025, the Company delivered the 500,000 additional shares .

Payable – Mr.

the six months ended June 30, 2025, the Company borrowed $ 230,906 , from and repaid $ 10,080 to Mr.

MacGregor pursuant to a master loan

agreement dated March 1, 2023.

the six months ended June 30, 2024, the Company borrowed $ 125,500 from and repaid $ 53,500 to Mr.

MacGregor under the same master loan

The master note agreement accrues interest at a rate of 4.4 % due and payable in a lump sum upon maturity of the obligation.

This note is not convertible.

Morgan Private Family Trust Loan Agreement (“NMPFT”)

the six months ended June 30, 2025, the Company borrowed $ 29,000 , from and repaid $ 0 to NMPFT pursuant to a master loan agreement.

the six months ended June 30, 2024, the Company borrowed $ 280,000 from and repaid $ 0 to NMPFT under the same master loan agreement .The

master note agreement accrues interest at a rate of 4.4 % due and payable in a lump sum upon maturity of the obligation.

not convertible.

$ 200,000 of these loan proceeds were used to fund the senior mezzanine loan to Barron’s Cove Movie, LLC.

Payable – Board Member

the quarter ended September 30, 2024, the Company borrowed $ 5,000 from a member of the Board of Directors.

This note was repaid in full

during the first quarter of 2025.

Michael MacGregor, the Company’s Chief Executive Officer, has irrevocably waived, and has not received, the compensation otherwise

payable to him under his consulting agreement for the year to date, including the quarter ended September 30, 2025.

credits on third-party productions.

MacGregor expects to received “Producer” credits on certain third-party

titles, including PROTECTOR and THIEVES HIGHWAY .

These credits do not entitle Mr.

MacGregor to any cash compensation or

revenue participation separate from APHP’s arrangements, and APHP does not have an ownership interest in those films.

5 “Produced & Licensed Content”.

12 — Subsequent Events

accordance with FASB ASC 855-10, Subsequent Events , the Company has analyzed its operations subsequent to June 30, 2025, to the

date these consolidated financial statements were issued.

Except as noted below, management has determined that it does not have any

material subsequent events to disclose in these consolidated financial statements.

Entertainment Agreement – Turn Up the Sun Option Extension and Barron’s Cove Acquisition

August 1, 2025, the Company entered into an agreement with SSS Entertainment, LLC (“SSS”) to (i) extend to December 31,

2025 its option to acquire a 24 %

ownership interest in the feature film Turn Up the Sun!

(aka Pose ) for $ 725,000

and (ii) acquire all rights, title, and interest in the feature film Barron’s Cove and related secured assets,

including liens, loans, UCC-1 filings, and security interests.

As consideration, the Company issued 500,000 shares of its common stock to SSS’s principal, allocated equally between the option

extension and the asset acquisition.

The Company will pay to SSS the first 85 % of revenues from exploitation of Barron’s Cove

until SSS has recouped $ 2 million, after which all such revenues will be retained by the Company.

SSS may elect to convert future revenue

entitlements into shares of the Company’s common stock at a conversion rate of 2.5 times the retained revenue, subject to a $ 1.00

per share floor.

The Company will also assume up to $ 50,000 in costs to enforce and perfect the secured rights.

Company is assessing the accounting treatment and financial impact of this transaction, which will be reflected in future periods.

accordance with FASB ASC 855-10, Subsequent Events , the Company has analyzed its operations subsequent to September 30, 2025,

to the date these consolidated financial statements were issued.

Except as noted below, management has determined that it does not have

any material subsequent events, other than those listed below, to disclose in these consolidated financial statements.

COVE — Paramount+ License.

In early October 2025, the producer/sales agent reported execution of a three-year U.S.

license with Paramount+.

APHP is not the counterparty to this license;

the timing and amount of any distributions to APHP, if any, cannot

be estimated at this time.

See Note 5 “Produced & Licensed Content” and Note 4 “Film Production Loans and Receivables”.

JAMS Arbitration.

After the close of this quarter, the Company became aware that Mr.

Sanger and Mr.

Jones may assert claims relating

to their consulting agreements and may initiate a JAMS arbitration.

See Item 1 — Legal Proceedings and Note 10 “Commitments

& Contingencies”.

of October 27, 2025, APHP anticipates issuing 500,000

common shares to Mr.

Sanghani (or an assignee), of SSS Entertainment, in Q4 related to APHP’s involvement in PROTECTOR

and THIEVES HIGHWAY.

of October 27, 2025, APHP had not sold any shares under the ELOC and had not received proceeds.

We may elect to draw in future periods

subject to the conditions in the agreements.

JAMS administrative openings;

service objection.

On November 5, 2025, APHP requested that JAMS defer administration in Sanger v.

APHP (JAMS Case No.

5220010741) and Jones v.

5220010727) pending proof of contract-compliant service.

APHP designated a service email, reserved all rights (including potential

consolidation), and no arbitrator has been appointed.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements