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Resonate Blends Inc (KOAN-13.33%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing sales of $1,349,905 compared to $16,468 in the same period the previous year. The increase is attributed to the business operations of Emergent Health Corp. (EMGE0.00%) (EMGE) acquired in March 2024.
Cost of goods sold for the quarter was $477,079, resulting in a gross profit of $872,826, compared to a gross profit of $3,211 in the previous year.
Operating expenses for the quarter were $2,219,787, up from $195,627 in the previous year, reflecting the impact of the EMGE acquisition.
Other expenses amounted to $208,805, compared to $819,016 in the previous year.
The company reported a net loss of $1,555,767 for the quarter, compared to a net loss of $1,011,432 in the previous year.
Resonate Blends had total current assets of $1,044,236 and total current liabilities of $4,557,634 as of September 30, 2024, resulting in a working capital deficit of $3,513,398.
The company acknowledges its dependence on additional financing to continue operations, with recent loans obtained from AJB Capital Investments, LLC and Ray Vollintine.
The filing details a reformation of the share exchange agreement with EMGE, resulting in the acquisition of assets including Evolutionary Biologics, Inc., Apollo Biowellness, Inc., Nanosthetic, Inc., and Nanogistics, Inc.
The company identified material weaknesses in its internal controls over financial reporting, including insufficient segregation of duties and lack of written documentation of internal control policies.
Resonate Blends plans to address these weaknesses by engaging a third-party firm and hiring additional employees to improve internal controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Resonate Blends Inc quarterly 10-Q report dated November 26, 2024. To report an error, please email earnings@qz.com.