Resonate Blends Reports 353% Revenue Growth but Records Net Loss in Latest Quarter

Resonate Blends, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenues of $430,768, a substantial increase from $95,050 in the same period last year, marking a growth of approximately 353%. The cost of goods sold also rose to $140,725 from $31,204, resulting in a gross profit of $290,043 compared to $63,846 in the prior year. Despite these gains, Resonate Blends recorded a net loss of $411,818, a notable reduction from a net loss of $3,688,470 in the first quarter of 2024.

The company’s balance sheet reflects a total asset value of $1,202,091 as of March 31, 2025, down from $1,854,461 at the end of 2024. This decline is primarily attributed to the removal of investments previously valued at $805,379. Current liabilities increased slightly to $5,418,185 from $5,306,040, with notable changes in accounts payable and accrued liabilities, which rose to $1,260,837 from $1,196,528. The shareholders' deficit also widened to $(4,216,094) from $(3,451,579), driven by the accumulated deficit reaching $29,533,429.

Strategically, Resonate Blends has undergone significant organizational changes, including the appointment of James W. Zimbler as President and CEO on March 5, 2025, following the resignation of Jim Morrison. The company has also been active in restructuring its operations, including the acquisition of Emergent Health Corp. and the subsequent reformation of the share exchange agreement to a share-for-asset structure. This reformation allowed the company to acquire assets from Emergent Health, including several subsidiaries, which may enhance its operational capabilities moving forward.

Operationally, Resonate Blends has seen changes in its customer engagement metrics, although specific user statistics were not disclosed in the filing. The company’s cash position improved, with cash and cash equivalents increasing to $18,117 from $8,048 at the end of 2024. However, the company continues to face challenges, as indicated by its accumulated deficit and the need for additional financing to support ongoing operations. The management has expressed that the company’s ability to continue as a going concern is contingent upon successful financing arrangements and achieving profitable operations.

Looking ahead, Resonate Blends aims to leverage its recent acquisitions and organizational changes to enhance its market position. The company is focused on expanding its product offerings and improving operational efficiencies to drive revenue growth. However, the management has cautioned that there are no assurances that these efforts will yield the necessary funds for operations, highlighting the ongoing uncertainty surrounding the company’s financial stability.