Wed, Aug 21, 10:04 AM (146 days ago)
For the quarter ended June 30, 2024, Resonate Blends, Inc. reported significant financial changes following its acquisition of Emergent Health Corp. (EMGE). Revenue surged to $721,278 from $16,468 year-over-year, driven by EMGE's business operations. Despite this increase, the company faced a net loss of $1,250,272 compared to a loss of $783,262 in the previous year, largely due to escalating operating expenses, which rose to $1,530,560 from $148,652. Total assets increased to $1,700,015, with current liabilities growing to $4,050,658, resulting in a working capital deficit of $3,057,528. The company's accumulated deficit stands at $27,986,675, raising concerns about its ability to continue as a going concern without additional financing. The company has engaged in various financing arrangements, including loans from AJB Capital Investments and Ray Vollintine, to bolster liquidity. However, uncertainties persist regarding future capital availability and operational profitability. The management acknowledges material weaknesses in internal controls, necessitating improvements to ensure accurate financial reporting. Overall, the company's financial health remains precarious amid efforts to stabilize operations post-acquisition.