Resonate Blends, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial increase in sales, reporting $598.6 thousand for the three months ended September 30, 2024, compared to no sales in the same period of the previous year. For the nine months ended September 30, 2024, sales reached $1.35 million, a notable rise from $16.5 thousand in the prior year.
Gross profit for the third quarter of 2024 was $419.5 thousand, with a nine-month total of $872.8 thousand, compared to just $3.2 thousand for the same period in 2023. However, total operating expenses surged to $689.2 thousand for the three months ended September 30, 2024, up from $47.0 thousand in the prior year, leading to a loss from operations of $(269.8) thousand for the quarter and $(1.35 million) for the nine months, compared to $(192.4) thousand in the previous year.
The net loss for the third quarter of 2024 was $(305.5) thousand, compared to $(228.2) thousand in the same quarter of 2023. For the nine months, the net loss increased to $(1.56 million) from $(1.01 million) in the prior year. The company reported a cash balance of $68.2 thousand as of September 30, 2024, a significant increase from $6.9 thousand at the end of 2023.
Total assets rose to $1.86 million as of September 30, 2024, up from $992.3 thousand at the end of 2023, primarily due to increased investments, which grew to $805.4 thousand from $100. Total liabilities and shareholders’ deficit also increased, reaching $1.86 million, with a shareholders’ deficit of $(2.64 million) compared to $(2.14 million) at the end of 2023.
Strategically, the company underwent significant changes, including a name change and stock symbol update to "KOAN" to reflect its new business focus. In March 2024, a Share Exchange Agreement with Emergent Health Corp. was executed, resulting in a restructuring of equity interests. The company also assigned ownership of its subsidiaries to Geoffrey Selzer, who assumed all liabilities associated with them.
As of September 30, 2024, Resonate Blends reported an accumulated deficit of $28.3 million and expressed substantial doubt about its ability to continue as a going concern without additional financing and achieving profitable operations. The company recognizes revenue upon the purchase of products by customers, in accordance with ASC 606.
About Resonate Blends, Inc.
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