Mon, Jun 16, 8:30 PM (27 days ago)
**Resonate Blends, Inc. (KOAN) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $430,768 (Q1 2025) vs. $95,050 (Q1 2024) - **Gross Profit Margin:** 67.3% (Q1 2025) vs. 67.2% (Q1 2024) - **Net Loss:** $411,818 (Q1 2025) vs. $3,688,470 (Q1 2024) - **Cash Flow from Operations:** -$236,055 (Q1 2025) vs. -$199,244 (Q1 2024) - **Cash Position:** $18,117 (Q1 2025) vs. $8,048 (Q1 2024) **Key Metrics & Trends:** - **Sales Growth:** 353% YoY, driven by the acquisition of EMGE assets. - **Operating Expenses:** Decreased by 23.2% YoY, but still high at $620,285. - **Interest Expense:** Reduced by 50.6% YoY, but remains significant at $81,791. - **Going Concern:** Substantial doubt due to accumulated deficit of $29,533,429 and reliance on additional financing. **Future Operations & Uncertainties:** - Dependent on further investment capital and successful completion of financing arrangements. - Historical reliance on convertible debt with unfavorable terms. - Material weaknesses in internal controls and disclosure procedures identified. - Plans to address material weaknesses and improve internal controls once resources become available. **Impact of Recent Events:** - Acquisition of EMGE assets in Q1 2024 significantly impacted financial results. - Change in control and business plan, with EMGE operations now representing the entirety of the company's business. - Obtained loans from third parties, with terms that may impact future financial performance. - Termination of merger agreement with Pegasus Specialty Vehicles, LLC, resulting in a $970,000 receivable. **Conclusion:** Resonate Blends, Inc. demonstrated significant revenue growth in Q1 2025, driven by the acquisition of EMGE assets. However, the company continues to face substantial financial challenges, including high operating expenses, a large accumulated deficit, and material weaknesses in internal controls. The company's ability to continue as a going concern is contingent upon securing additional financing and achieving profitable operations.