What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2020-05-14 compared with 2019-04-02 · 471 added, 305 removed, 362 unchanged (68% of the section changed)

2 unchanged sentences

Financial Statements:

of Independent Registered Public Accounting Firm

Balance Sheets as of December 31, 2018 and 2017

Statements of Operations for the years ended December 31, 2018 and 2017

Statement of Stockholders’

Equity (Deficit) for the years ended December 31, 2018 and 2017

Statements of Cash Flows for the years ended December 31, 2018 and 2017

to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2019 and 2018

Consolidated Statements of Operations for the years ended December 31, 2019 and 2018

Consolidated Statement of Stockholders’

Deficit for the years ended December 31, 2019 and 2018

Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018

Notes to Consolidated Financial Statements

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and

Board of Directors of Textmunication Holdings, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated

balance sheets of Textmunication Holdings, Inc.(the “Company”) as of December 31, 2018 and 2017, the related consolidated

statements of operations, stockholders’

equity (deficit), and cash flows for each of the two years in the period ended December

31, 2018 and 2017, and the related notes (collectively referred to as the “consolidated financial statements”).

our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December

31, 2018 and 2017, and the results of its operations and its cash flows for each of the two years in the period ended December

31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis of Opinion

These consolidated financial statements

are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated

financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight

Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with

standards of the Public Company Accounting Oversight Board (United States).

Those standards require that we plan and perform the

audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to

fraud or error.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial

As part of our audits we are required to obtain an understanding of internal control over financial reporting but not

for the purpose of expressing and opinion on the effectiveness of the Company’s internal control over financial reporting.

the Shareholders and

of Directors of Resonate Blends, Inc.

(formerly Textmunication Holdings, Inc.)

on the Financial Statements

have audited the accompanying consolidated balance sheets of Resonate Blends, Inc.

(formerly Textmunication Holdings, Inc.) (the

“Company”) as of December 31, 2019 and 2018, the related consolidated statements of operations, stockholders’

deficit, and cash flows for each of the two years in the period ended December 31, 2019, and the related notes (collectively referred

to as the “consolidated financial statements”).

In our opinion, the financial statements present fairly, in all material

respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash

flows for each of the two years in the period ended December 31, 2019, in conformity with accounting principles generally accepted

in the United States of America.

consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an

opinion on the Company’s consolidated financial statements based on our audits.

We are a public accounting firm registered

with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with

respect to the Company in accordance with U.S.

federal securities laws and the applicable rules and regulations of the Securities

and Exchange Commission and the PCAOB.

conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States).

Those standards

require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of

material misstatement, whether due to fraud or error.

The Company is not required to have, nor were we engaged to perform, an

audit of its internal control over financial reporting.

As part of our audits we are required to obtain an understanding of internal

control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s

internal control over financial reporting.

Accordingly, we express no such opinion.

Our audits included performing procedures

to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures

that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures

in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made

by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide

a reasonable basis for our opinion.

Substantial Doubt About

the Company’s Ability to Continue as a Going Concern

As discussed in Note 1 to the consolidated

financial statements, the Company’s continuing operating losses and accumulated deficit raise substantial doubt about its

ability to continue as a going concern for one year from the issuance of these financial statements.

Management’s plans

are also described in Note 1.

The consolidated financial statements do not include adjustments that might result from the outcome

of this uncertainty.

/s/ Boyle CPA, LLC

We have served as the Company’s auditor since 2018

April 1, 2019

Hopedale Drive SE

(732) 822-4427

(732) 510-0665

TEXTMUNICATION

HOLDINGS, INC.

audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to

error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence

regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles

used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Doubt About the Company’s Ability to Continue as a Going Concern

discussed in Note 1 to the consolidated financial statements, the Company’s continuing operating losses and accumulated

deficit raise substantial doubt about its ability to continue as a going concern for one year from the issuance of these

financial statements.

Management’s plans are also described in Note 1.

The consolidated financial statements do

not include adjustments that might result from the outcome of this uncertainty.

Boyle CPA, LLC

have served as the Company’s auditor since 2018

RESONATE BLENDS, INC.

(FORMERLY TEXTMUNICATION HOLDINGS, INC.)

BALANCE SHEETS

6 unchanged sentences

LIABILITIES AND STOCKHOLDERS’

EQUITY (DEFICIT)

Current liabilities

2 unchanged sentences

Convertible notes payable, net of discount

Derivitive liability

Derivative liability

Settlement liability

Total current liabilities

Convertible notes payable, net of discount - Long term

Total liabilities

Stockholders’

Equity (Deficit)

Preferred stock, 5,933,333 shares authorized, $0.0001 par value, 4,000,000

issued and outstanding

Series B - Preferred stock, 66,667 shares authorized, $0.0001 par value,

66,667 issued and outstanding

Series A - Preferred stock, 10,000,000 shares authorized, $0.0001

par value, 4,000,000 issued and outstanding

Series B - Preferred stock, 66,667 shares authorized, $0.0001 par value, 66,667 issued and outstanding

Series C - Preferred stock, 2,000,000 shares authorized, $0.0001 par value,

3 unchanged sentences

100,000,000 shares authorized;

4,456,452 and 2,435,179

shares issued and outstanding as of December 31, 2018 and 2017, respectively.

17,153,936 and 2,435,179 shares issued and outstanding as of December 31, 2019 and 2018, respectively.

Additional paid-in capital

2 unchanged sentences

(15,489,993 )

Total stockholders’equity (deficit)

Total liabilities and stockholders’

equity (deficit)

Total Stockholders’

TOTAL LIABILITIES AND STOCKHOLDER’S DEFICIT

accompanying notes are an integral part of these consolidated financial statements

TEXTMUNICATION

HOLDINGS, INC.

(FORMERLY TEXTMUNICATION HOLDINGS, INC.)

STATEMENTS OF OPERATIONS

9 unchanged sentences

Sales Commission

Impairment of inhouse software

Impairment of in house software

Non cash management fees

Total operating expenses

4 unchanged sentences

Amortization of debt discount

Gain on settlement of derivative liabilities

Gain (loss) on settlement of derivative liabilities

Legal settlement

Gain on settlement of notes payable

Total other income (expense)

Total other expense

Income (loss) from investment in equity method investee

NET INCOME (LOSS)

$ (7,649,220 )

Basic weighted average common shares outstanding

1 unchanged sentence

basic and diluted

accompanying notes are an integral part of these consolidated financial statements

TEXTMUNICATION,

The accompanying

notes are an integral part of these consolidated financial statements

(FORMERLY TEXTMUNICATION HOLDINGS, INC.)

STATEMENTS OF STOCKHOLDERS’

THE YEAR ENDED DECEMBER 31, 2019

Preferred stock

1 unchanged sentence

Preferred stock - Series C

Preferred stock - Series D

Total Stockholders’

1 unchanged sentence

$ (15,150,240 )

$ (1,242,328 )

Stock issued to settle notes payable

Stock issued to settle debt

Shares issued for services

Conversion of common stock to preferred

Settlement of derivative liability

Balance, December 31, 2017

$ (15,150,240 )

Proceeds from subscription agreements

3 unchanged sentences

$ (15,489,993 )

accompanying notes are an integral part of these financial statements

TEXTMUNICATION,

Settlement of liabilities

Stock issuance for services

Preferred shares converted to common

Stocks and warrant issued for cash

Conveyance of ownership of Aspire

Preferred shares D retired

Stock issuance for acquisition of Resonate Blends, LLC and Entourage, LLC

$ (19,159,721 )

accompanying notes are an integral part of these consolidated financial statements

(FORMERLY TEXTMUNICATION HOLDINGS, INC.)

STATEMENTS OF CASH FLOWS

the years ended December 31

the years ended December 31, 2019 and 2018

Cash Flows from Operating Activities

1 unchanged sentence

$ (3,669,728 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Adjustments to reconcile

Amortization of debt discount

2 unchanged sentences

Non cash interest expense

Legal Settlement

Share based compensation

1 unchanged sentence

Gain on settlement of derivative liabilities

Income from equity method investee

Income (Loss) from equity method investee

Changes in assets and liabilities

Accounts payable and accrued expenses

Net cash provided by / ( used

in) operating activities

Capitalization of software cost

Net cash provided by investing

Due to Related party

Net cash provided by operating activities

Investments in Joiant

Disposal of Investment in Aspire

Net cash provided by investing activities

Cash Flows from Financing Activities

Proceeds from subscription

Proceeds on loans payable

Payments on loans payable

Net proceeds from convertible notes payable

Net cash provided by financing

Proceeds from convertible notes / loans payable

Proceeds from issuance of stock warrants

Payments on preferred stocks buy back

Payments on convertible notes payable

Acquisition of Resonate Blends

Net cash provided by financing activities

Net increase in cash

3 unchanged sentences

Cash paid for interest

Cash paid for tax

Non-Cash investing and financing transactions

2 unchanged sentences

Settlement of derivative liability

accompanying notes are an integral part of these audited consolidated financial statements

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

accompanying notes are an integral part of these consolidated financial statements

(formerly TEXTMUNICATION HOLDINGS, INC.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

BASIS OF PRESENTATION AND GOING CONCERN

Textmunication

Resonate Blends, Inc.

formerly Textmunication

Holdings, Inc.

(Company) was incorporated on May 13, 2010 under the laws of the State of California.

Textmunication is an online

mobile marketing platform service that will connect merchants with their customers and allow them to drive loyalty and repeat

business in a non-intrusive, value added medium.

For merchants we provide a mobile marketing platform where they can always send

the most up-to-date offers/discounts/alerts/events schedule, such as happy hours, trivia night, and other campaigns.

can also access specials and promotions that merchants choose to distribute through Textmunication by opting in to keywords designated

to the merchant’s keywords.

November 16, 2013, the Company entered into a Share Exchange Agreement (SEA) with Textmunication Holdings (Holdings).

corporation, whereby the sole shareholder of the Company received 65,640,207 new shares of common stock of Holdings in exchange

for 100% of the Company’s issued and outstanding shares.

July 9, 2018 the 1 –

1,000 Reverse Split of “Textmunication Holdings, Inc.”

(TXHD) common stock took effect

at the open of business.

All shares and per share amounts have been retroactively adjusted to reflect the r3everse split.

9th, 2018 Textmunication Holdings, Inc.

(“TXHD”) entered into Advisory Agreements with Mr.

Thomas DiBenedetto and

Joseph Griffin.

DiBenedetto will advise Textmunication on business execution, growth initiatives and strategic investment

opportunities.

Joseph Griffin will join Textmunication as a financial investment advisor.

In his role, he will advise the

company on strategic investment opportunities and investment execution.

(the “Company”) was incorporated on in October 1984 in the State of Georgia as Brock Control

Founded by Richard T.

Brock, the Company was in the sales automation market and an early developer of enterprise customer

management systems.

The Company went public at the end of March of 1993.

In February of 1996, the Company changed its name to

Brock International Inc., and in March of 1998, the Company again changed our name to Firstwave Technologies, Inc.

In 2007, the Company deregistered its common

stock in order to avoid the expenses of being a public company.

The Company reported briefly on the OTC Disclosure & News

Service in 2008 but not for long.

The Company again changed its name to FSTWV, Inc.

On October 28, 2013, the Company held a

shareholder meeting to reincorporate the company in the State of Nevada and concurrently change its name to Textmunication Holdings,

The Company also voted to approve a 1 for 5 reverse split of its outstanding common stock.

On November 16, 2013, the Company entered

into a Share Exchange Agreement (SEA) with Textmunication, Inc.

a California corporation, whereby the sole shareholder of the

Company received 65,640,207 new shares of common stock of the Company in exchange for 100% of the Textmunication’s issued

and outstanding shares.

Textmunication is an online mobile marketing

platform service that will connect merchants with their customers and allow them to drive loyalty and repeat business in a non-intrusive,

value added medium.

For merchants we provide a mobile marketing platform where they can always send the most up-to-date offers/discounts/alerts/events

schedule, such as happy hours, trivia night, and other campaigns.

The consumer can also access specials and promotions that merchants

choose to distribute through Textmunication by opting into keywords designated to the merchant’s keywords.

On July 9, 2018, the 1 –

1,000 Reverse

Split of the Company’s common stock took effect at the open of business.

All shares and per share amounts have been

retroactively adjusted to reflect the reverse split.

On June 25, 2019, the Company issued a press

release announcing it plans to change its business direction from its current SMS technology business to focus on the emerging

national cannabis market.

The Company planned on using its mobile texting platform to enhance communication efforts with

the potential acquisitions.

On October 25, 2019, the Company entered into

a Membership Interest Purchase Agreement (the “Resonate Purchase Agreement”) with Resonate Blends, LLC, a California

limited liability company (“Resonate”), and the members of Resonate.

As a result of the transaction, Resonate became

a wholly owned subsidiary of the Company.

In accordance with the terms of the Purchase Agreement, at the closing an aggregate of

5% of the Company’s outstanding shares of common stock for a total of 665,072 shares were issued to the holders of Resonate

in exchange for their membership interests of Resonate.

These shares have anti-dilution protection.

We have also agreed as part

of the purchase price to issue:

(ii) such number of shares of Series E Preferred Stock that will convert into 5% of the outstanding

shares of common stock in the Company on a fully-diluted basis upon an annualized revenue run rate of Ten Million Dollars ($10,000,000.00)

for any three (3) consecutive month trailing period;

and (iii) such number of shares of Series E Preferred Stock that will convert

into 5% of the outstanding shares of common stock in the Company on a fully-diluted basis upon the occurrence of the Company’s

public market value reaching One Hundred Million US Dollars ($100,000,000).

The shares in (ii) and (iii) shall have anti-dilution

protections, except that this provision only applies for 2.5% of the outstanding shares acquired under each subsection.

on October 25, 2019, the Company entered into a Membership Interest Purchase Agreement (the “Entourage Labs Purchase Agreement”)

with Entourage Labs, LLC, a California limited liability company (“Entourage Labs”), and the members of Entourage

As a result of the transaction, Entourage Labs became a wholly owned subsidiary of the Company.

In accordance with the terms

of the Purchase Agreement, at the closing an aggregate of 5% of the Company’s outstanding shares of common stock for a total

of 665,072 shares were issued to the holders of Entourage Labs in exchange for their membership interests of Entourage Labs.

shares have anti-dilution protection.

We have also agreed as part of the purchase price to issue:

(ii) such number of shares of

Series E Preferred Stock that will convert into 5% of the outstanding shares of common stock in the Company on a fully-diluted

basis upon an annualized revenue run rate of Ten Million Dollars ($10,000,000.00) for any three (3) consecutive month trailing

and (iii) such number of shares of Series E Preferred Stock that will convert into 5% of the outstanding shares of common

stock in the Company on a fully-diluted basis upon the occurrence of the Company’s public market value reaching One Hundred

Million US Dollars ($100,000,000).

The shares in (ii) and (iii) shall have anti-dilution protections, except that this provision

only applies for 2.5% of the outstanding shares acquired under each subsection.

RESONATE BLENDS, INC.

(formerly TEXTMUNICATION HOLDINGS, INC.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

addition, the Company entered into an Agreement of Conveyance, Transfer and Assignment of Assets and Assumption of Obligations

(the “Conveyance Agreement”) with Mark S.

Johnson and the Company’s 49% owned subsidiary, Aspire Consulting

Group, LLC, a Virginia limited liability company.

Pursuant to the Conveyance Agreement, the Company transferred all assets and

business operations associated with its IT consulting solutions, including all of the capital stock of Aspire Consulting, to Mr.

In exchange, Mr.

Johnson agreed to cancel 20,000 shares of common stock in the Company and to assume and cancel all liabilities

relating to the Company’s former business.

Finally, the Company entered into Employment

Agreements with the following persons:

(i) Geoffrey Selzer as Chief Executive Officer (CEO) of the Company with an annual

salary of $180,000;

and (ii) Pamela Kerwin as Chief Operating Officer (COO) of the Company with an annual salary of $120,000.

Both are eligible for salary increases upon milestone achievements and other benefits.

The Employment Agreement for the CEO has

a term of 2 years and can’t be terminated without cause.

Severance of six (6) weeks is available for termination of the

COO without cause before one-year of service and eight (8) weeks after one-year of service.

On December 16, 2019 the Company filed

Articles of Merger with the Secretary of State of Nevada in order to effectuate a merger with its wholly owned subsidiary;

Resonate Blends, Inc.

Shareholder approval was not required under Section 92A.180 of the Nevada Revised Statutes.

As part of the

merger, the Company’s board of directors authorized a change in our name to “Resonate Blends, Inc.”

the Company’s Articles of Incorporation have been amended to reflect this name change.

In connection with the name change, the Company’s

symbol was changed to “KOAN”

that more resembles the Company’s new business focus.

of Presentation

1 unchanged sentence

as reported on our fiscal years ending on December 31, 2019 and 2018.

We have summarized our most significant accounting

We have summarized our most significant accounting policies.

consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to

11 unchanged sentences

These consolidated financial statements do not include any adjustments that might arise from this

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4 unchanged sentences

the federally insured limit.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

receivable and allowance for doubtful accounts

4 unchanged sentences

receivable, historical collection information and existing economic conditions.

As of December 31, 2018, and 2017 the allowance

for doubtful accounts was $0 and bad debt expense of $0 and $0, respectively.

As of December 31, 2019, and 2018 there’s

no allowance for doubtful accounts and bad debts.

At December 31, 2019 and 2018, one customer represented 51% and 71%, respectively,

of the Company’s accounts receivable.

are recognized when control of the promised is transferred to our customers, in an amount that reflects the consideration we expect

4 unchanged sentences

For all of the Company’s

customers, regardless of the method, the Company uses to bill them, subscription revenue is recorded as deferred revenue in the

accompanying consolidated balance sheets.

customers, regardless of the method, the Company uses to bill them;

subscription revenue is recorded as deferred revenue

in the accompanying consolidated balance sheets.

As services are performed, the Company recognizes subscription revenue on a monthly

3 unchanged sentences

services revenues are generated from SMS and RCS packages where client logs into a cloud-based application to send targeted SMS

messages to their subscribers base.

Our custom web application SMS/RCS platform is typically billed on a fixed-price based on

the number of SMS/RCS allocated for each package our client purchases.

Generally, revenue for SMS/RCS services is recognized immediately

as our clients have instant access to their web-based application to send out messages, the number of SMS/RCS messages allocated

to a client expires at the end of each month and renews beginning of each month.

The Company offers whereby control of the product

passes to the customer when delivered and revenue is recognized at the time of delivery.

for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not

adjusted and continue to be reported in accordance with our historic accounting under Topic 605

messages to their subscriber’s base.

Our custom web application SMS/RCS platform is typically billed on a fixed-price based

on the number of SMS/RCS allocated for each package our client purchases.

Generally, revenue for SMS/RCS services are recognized

immediately as our clients have instant access to their web-based application to send out messages, the number of SMS/RCS messages

allocated to a client expires at the end of each month and renews beginning of each month.

The Company offers whereby control

of the product passes to the customer when delivered and revenue is recognized at the time of delivery.

for reporting periods beginning after January1, 2018 are presented under Topic 606, while prior period amounts are not adjusted

and continue to be reported in accordance with our historic accounting under Topic 605

did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated

statement of operations for the year ended December 31, 2018 as a result of applying Topic 606.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

Value of Financial Instruments

9 unchanged sentences

to develop its own assumptions.

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

three levels of the fair value hierarchy are described below:

6 unchanged sentences

value is considered fair value.

of December 31, 2018 there’s no f inancial assets and liabilities

measured at fair value.

of December 31, 2018, there are no financial assets and liabilities measured at fair value.

assets and liabilities measured at fair value on a recurring basis are summarized below for the year ended December 31, 2019:

Financial Instruments

Derivative Financial Instruments

income (loss) per Common Share

4 unchanged sentences

if the potential common shares had been issued and if the additional common shares were dilutive.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

and equipment

4 unchanged sentences

of are removed from the accounts, and any gain or loss thereon is reflected in operations.

Company policy capitalize property

Company policy capitalizes property

and equipment for cost over $1,000, asset acquired under $1,000 are charge to operations.

7 unchanged sentences

of the accumulated net loss has been fully offset by an equal valuation allowance.

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates

25 unchanged sentences

net realizable value of the related product.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

Company also applies the principles of FASB ASC 350-40, Accounting for the Cost of Computer Software Developed or Obtained for

4 unchanged sentences

stage is complete and it is probable that the project will be completed, and the software will be used to perform the function

the 3rd quarter of the year management determine that the software is unable to handle the expanding business and decided to scrap

the entire project and recognize as loss for the year.

A total cost of $85,092 was written off in the 3 rd quarter.

2018, management determined that the software is unable to handle the expanding business and decided to scrap the entire project

and recognize as loss for the year.

A total cost of $85,092 was written off during the year ended December 31, 2018.

expenses are included in General and administrative expenses in the Statements of Operations and are expensed as incurred.

Company incurred $13,873 and $26,389 in advertising expenses for the year ended December 31, 2018 and 2017,

respectively.

Company incurred $21,831 and $13,873 in advertising expenses for the years ended December 31, 2019 and 2018, respectively.

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

Accounting Pronouncements

13 unchanged sentences

for those areas.

ASU 2016-10 was effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

ASU 2016-10 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

May 2016, the FASB issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606):

6 unchanged sentences

the narrow aspects noted in Topic 606.

ASU 2016-12 was effective January 1, 2018 to be in alignment with the effective

date of ASU 2014-09.

The Company will adopt the provisions of Topic 606 effective in January 1, 2018 the adoption did not

have a material impact on the Company’s consolidated financial statements.

ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of

The Company will adopt the provisions of Topic 606 effective in January 1, 2018 and does not believe the adoption

of the new revenue recognition standard will have a material impact on the Company’s consolidated financial statements.

January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall:

6 unchanged sentences

notes to the financial statements.

ASU 2016-01 was effective for the Company beginning on January 1, 2018 and will be applied

ASU 2016-01 will be effective for the Company beginning on January 1, 2018 and will be applied

by means of a cumulative effect adjustment to the balance sheet, except for effects related to equity securities without readily

determinable values, which will be applied prospectively.

The adoption did not have a material impact to the consolidated

financial statements.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

Management has reviewed this pronouncement and has determined that it

would not have a material impact to the consolidated financial statements.

February 2016, the FASB issued ASU 2016-02, Leases , which requires an entity to recognize long-term lease arrangements

21 unchanged sentences

standard did not have a material impact on the Company’s consolidated financial statements.

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815):

Contingent Put and Call Options in Debt Instruments,

which aims to reduce the diversity of practice in identifying embedded derivatives in debt instruments.

ASU 2016-06 clarifies

that the nature of an exercise contingency is not subject to the “clearly and closely”

criteria for purposes of assessing

whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative.

is effective for the Company beginning on January 1, 2017.

Management evaluated ASU 2016-06 and determined that the adoption of

this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation:

Improvements to Employee Share-Based Payment Accounting.

ASU 2016-09 simplifies several aspects of the accounting and presentation of share-based payment transactions, including the

accounting for related income taxes consequences and certain classifications within the statement of cash flows.

ASU 2016-09 is

effective for the Company beginning on January 1, 2017.

Management evaluated the impact of adopting ASU 2016-09 and determined

that the new accounting standard did not have a material impact on the Company’s consolidated financial statements.

August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230):

2 unchanged sentences

(“ASU 2016-15”).

ASU 2016-15 targeted changes to how cash receipts and cash payments are

presented and classified in the statement of cash flows.

ASU 2016-15 was effective for fiscal years beginning after December

The new standard requires adoption on a retrospective basis unless it is impracticable to apply, in which case

it would be required to apply the amendments prospectively as of the earliest date practicable.

The adoption did not have a

material impact to the consolidated financial statements.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

ASU 2016-15 will make eight targeted changes to how cash receipts and cash

payments are presented and classified in the statement of cash flows.

ASU 2016-15 is effective for fiscal years beginning after

December 15, 2017.

The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which

case it would be required to apply the amendments prospectively as of the earliest date practicable.

November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)”, requiring that the statement of

cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted

cash equivalents.

This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December

15, 2017 with early adoption permitted.

The provisions of this guidance are to be applied using a retrospective approach which

requires application of the guidance for all periods presented.

Management has reviewed this pronouncement and has determined

that it would not have a material impact to the consolidated financial statements.

May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting.

2 unchanged sentences

to apply modification accounting in Topic 718.

The amendments in this Update were effective for all entities for annual

periods, and interim periods within those annual periods, beginning after December 15, 2017.

Early adoption was permitted,

including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements

have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made

available for issuance.

The adoption did not have a material impact to the consolidated financial statements.

The amendments in this Update are effective for all entities for annual periods,

and interim periods within those annual periods, beginning after December 15, 2017.

Early adoption is permitted, including adoption

in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been

issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance.

Management has reviewed this pronouncement and has determined that it would not have a material impact to the consolidated financial

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

35 unchanged sentences

notes payable consists of the following:

convertible notes payable

notes, net of discount

December 31, 2019

December 31, 2018

Total convertible notes payable

Less discounts

Convertible notes, net of discount

Company accounts for the fair value of the conversion features of its convertible debt in accordance with ASC Topic No.

10 unchanged sentences

pricing model.

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

following table presents details of the changes in the Company’s derivative liabilities associated with its convertible

notes for the year ended December 31, 2019:

December 31, 2017

to derivative liability due to debt conversion

in fair market value of derivative liabilities

December 31, 2018

the nine months ended September 30, 2018, the Company entered into certain cancellation agreements with the holder of a certain

notes payable in the amounting to $96,721, including accrued interest issued from December 10, 2015 through August 27, 2017.

face value of the canceled debt of $96,721 has been recorded as a gain on settlement of notes payable as of September 30, 2018.

The company also have settled convertible notes amounting to $172,230 for a total amount of $32,500

October 12, 2018, Textmunication Holdings, Inc.

entered into a Settlement Agreement and Release (the “Agreement”)

with Lester Einhaus (“Holder”) concerning a $25,000 convertible note issued by the Company to the Holder on September

23, 2015 (the “Note”).

Agreement requires the Company to issue to the Holder 475,000 shares of the Company’s common stock, subject to the condition

that the Holder does not own more than 4.99% of the Company’s outstanding shares at any time.

As such, the shares will be

issued out in tranches, with the first such tranche due within 10 days of signing the Agreement for 198,000 shares.

agreed to a daily leak out of the greater of 10,000 shares or 15% of the trading volume

Balance December 31, 2018

Add derivative liability due to new convertible notes

Change in fair market value of derivative liabilities

Balance December 31, 2019

the year ended December 31, 2019, the Company issued 1,280,000 shares of common stock with a fair value of $164,033 for the settlement

of liabilities payable.

The conversion of the derivative liabilities has been recorded through additional paid-in capital.

TEXTMUNICATION HOLDINGS, INC.)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEARS ENDED DECEMBER 31, 2019 and 2018

INVESTMENT IN ASPIRE CONSULTING GROUP, LLC

6 unchanged sentences

49% equity interest and therefore has accounted for the acquisition of the interest under the equity method.

following table presents details of the Company’s investment is Aspire as of December 31, 2017 and 2016:

following table presents details of the Company’s investment in Aspire as of December 31, 2017 and 2016:

Balance December 31, 2017

Loss from equity method investee

Loss from equity method

Balance December 31, 2018

1 unchanged sentence

Balance December 31, 2019

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

October 25, 2019 the Company entered into an Agreement of Conveyance, Transfer and Assignment of Assets and Assumption of Obligations

(the “Conveyance Agreement”) with Mark S.

Johnson and the Company’s 49% owned subsidiary, Aspire Consulting

Group, LLC, a Virginia limited liability company.

Pursuant to the Conveyance Agreement, the Company transferred all assets and

business operations associated with its IT consulting solutions, including all of the capital stock of Aspire Consulting, to Mr.

In exchange, Mr.

Johnson agreed to cancel 20,000 shares of common stock in the Company and to assume and cancel all liabilities

relating to the Company’s former business.

COMMITMENTS AND CONTINGENCIES

6 unchanged sentences

Employment Agreement

Company has an employment agreement with the CEO/Chairman to perform duties and responsibilities as may be assigned by the Board

of Directors.

The base salary is in the amount of $132,000 per annum plus an annual discretionary bonus plus benefits commencing

on December 17, 2013 and ending May 1, 2019 with an automatic renewal on each anniversary date (May 1) thereafter.

October 25, 2019 the Company entered into Employment Agreements with the following persons:

(i) Geoffrey Selzer as Chief

Executive Officer (CEO) of the Company with an annual salary of $180,000;

and (ii) Pamela Kerwin as Chief Operating Officer

(COO) of the Company with an annual salary of $120,000.

Both are eligible for salary increases upon milestone achievements and

other benefits.

The Employment Agreement for the CEO has a term of 2 years and can’t be terminated without cause.

of six (6) weeks is available for termination of the COO without cause before one-year of service and eight (8) weeks after one-year

RESONATE BLENDS, INC.

(formerly TEXTMUNICATION HOLDINGS, INC.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31,

2019 and 2018

Claims and Assessments

October 12, 2018, Textmunication Holdings, Inc.

(“Company”), Wais Asefi, the Company’s CEO, and David Thielen,

the Company’s COO, entered into a Settlement Agreement and Release (the “Agreement”) with Lester Einhaus (“Holder”)

concerning a $25,000 convertible note issued by the Company to the Holder on September 23, 2015 (the “Note”).

detail as follows:

October 12, 2018, the Company, Wais Asefi, the Company’s former CEO, and David Thielen, the Company’s COO, entered

into a Settlement Agreement and Release (the “Agreement”) with Lester Einhaus (“Holder”) concerning a

$25,000 convertible note issued by the Company to the Holder on September 23, 2015 (the “Note”).

Case detail as follows:

Textmunication

2 unchanged sentences

1:17-cv-04478

of December 31, 2018, there are no pending case against Textmunication Inc.

Agreement requires the Company to issue to the Holder 475,000 shares of the Company’s common stock, subject to the condition

that the Holder does not own more than 4.99% of the Company’s outstanding shares at any time.

As such, the shares will be

issued out in tranches;

with the first such tranche was due within 10 days of signing the Agreement for 198,000 shares.

The Holder agreed to a daily leak out of the greater of 10,000 shares or 15% of the trading volume.

An anti-dilution provision

in the Agreement required an additional 379,386 shares to be issued.

During the year ended December 31, 2019, all required

shares were issued by the Company and no further liability exists.

the year ended December 31, 2019, the cumulative net operating loss carry-forward from continuing operations is approximately

2 unchanged sentences

of December 31, 2019 and 2018:

tax asset attributable to:

operating loss carryover

deferred tax asset

Deferred tax asset attributable to:

Net operating loss carryover

Valuation allowance

Net deferred tax asset

to the enactment of the Tax Reform Act of 2017, the corporate tax rate for those tax years beginning with 2018 has been reduced

TEXTMUNICATION

HOLDINGS, INC.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

THE YEAR ENDED DECEMBER 31, 2018 and 2017

STOCKHOLDERS’

Company is authorized to issue an aggregate of 4,000,000,000 shares of common stock with a par value of $0.0001.

The Company is

also authorized to issue 10,000,000 shares of “blank check”

preferred stock with a par value of $0.0001, which includes

4,000,000 shares of Series A preferred stock (“Series A”), 66,667 shares of Series B preferred stock (“Series

B”), and 2,000,000 shares of Series C preferred stock (“Series C”).

The Company is authorized to issue an

aggregate of 100,000,000 shares of common stock with a par value of $0.0001.

The Company is also authorized to issue 10,000,000

shares of “blank check”

preferred stock with a par value of $0.0001, which includes 4,000,000 shares of Series A preferred

stock (“Series A”) and 2,000,000 shares of Series C preferred stock (“Series C”).

the Certificate of Designation, holders of Series A Preferred Stock will participate on an equal basis per-share with holders

3 unchanged sentences

(300) votes for each share held.

January 5, 2016, pursuant to Article III of our Articles of Incorporation, the Company’s Board of Directors voted to designate

a class of preferred stock entitled Series B Convertible Preferred Stock, consisting of up 66,667 shares, par value $0.0001.

the Certificate of Designation, holders of Series B Convertible Preferred Stock participate on an equal basis per-share with holders

of the Company’s common stock and Series A Preferred Stock in any distribution upon winding up, dissolution, or liquidation.

Holders of Series B Convertible Preferred Stock are not entitled to voting rights.

May 9, 2017, the Board of Directors voted to designate a class of preferred stock entitled Series C Convertible Preferred Stock,

consisting of up to 2,000,000 shares, par value $0.0001.

Under the Certificate of Designation, holders of Series C Convertible

Preferred Stock will participate on an equal basis per-share with holders of common stock, Series A Preferred Stock and Series

B Preferred Stock in any distribution upon winding up, dissolution, or liquidation.

Holders of Series C Convertible Preferred

Stock are entitled to vote together with the holders of our common stock on all matters submitted to shareholders at a rate of

875 votes for each share held.

Holders of Series C Convertible Preferred Stock are entitled to convert each share held for 875

shares of common stock.

February 16, 2017, the Company issued a total of 2,000,000 shares of our common stock (post-split) to our officer and director,

Wais Asefi, as compensation for services rendered.

During the year ended December 31, 2017, the officer exchanged the common shares

for 2,000,000 shares of newly designated Series C Preferred stock.

the year ended December 31, 2017, the Company issued 1,608,877 shares of common stock (post-split) for the partial conversion

and settlements of $765,217.

RESONATE BLENDS, INC.

(formerly TEXTMUNICATION HOLDINGS, INC.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31,

2019 and 2018

the year ended December 31, 2018,

Company’s Board of Directors approved a one to one thousand (1:1000) reverse stock split, which became effective July

The Company consolidated financial statements have been retroactively restated to the reflect the effect of the stock

Company entered into a subscription agreement for 9.98% of the company common shares outstanding for $100,000.

the year ended December 31, 2018, the Company issued 1,380,933 shares of common stock with a fair value of $354,010 for the conversion

of convertible notes payable.

The converted portion of the notes also had associated derivative liabilities with fair values on

the date of conversion of 866,361.

The conversion of the derivative liabilities has been recorded through additional paid-in

the year ended December 31, 2017, the Company issued 299,397 shares of common stock (post-split) valued at $109,571 for the settlement

of debt related to a 3a10 settlement.

the year ended December 31, 2017, the Company issued 77,500 shares of common stock (post-split) for services valued at $115,100.

the year ended December 31, 2018,

Company’s Board of Directors approved a one to one thousand (1:1000) reverse stock

split, which became effective July 9, 2018.

The Company consolidated financial statements

have been retroactively restated to the reflect the effect of the stock split

Company entered into a subscription agreement for 9.98% of the company common

shares outstanding for $150,000.

the year ended December 31, 2018, the Company issued 1,380,933 shares of common stock

with a fair value of $354,010 for the conversion of convertible notes payable.

The converted

portion of the notes also had associated derivative liabilities with fair values on the

date of conversion of 866,361.

The conversion of the derivative liabilities has been

recorded through additional paid-in capital

The conversion of the derivative liabilities has been recorded through additional paid-in capital

the first quarter of 2019 the company issued a total of 6,685,000 shares to employees and vendors for compensation and services

The fair market value of the shares issues accounted as expenses as follows:

Management Fees

Payment to subcontractors

the second quarter of 2019 the company issued 40,000 shares of preferred stock warrants for $200,000 cash.

the third quarter of 2019 the company issued 1,280,000 common stocks in settlement of liabilities.

The fair market value

of the liabilities accounted as additional paid in capital of $164,033.

the year ended December 31, 2019, we entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”)

with the purchasers identified therein (collectively, the “Purchasers”) providing for the issuance and sale to the

Purchasers of an aggregate of up to 40,000 shares of our Series D Convertible Preferred Stock (the “Preferred Shares”)

and related warrants for gross proceeds to the Company of $200,000.

On December 9, 2019, we exercised our right to redeem the

Preferred Shares by paying the Purchasers $260,000 or 130% of the amount paid for the Preferred Shares, as called for under the

Securities Purchase Agreement.

During the last quarter year end December

31, 2019, the company issued 4,274,936 shares of common stocks to acquire Resonate Blends, LLC, and Entourage LLC, both

California limited liability companies.

As a result of the transaction, both companies became wholly owned subsidiaries

of the Company.

The Company recognized a loss of $834,022 on the acquisitions.

SUBSEQUENT EVENTS

February 12, 2019, Textmunication signed a Letter of Intent to acquire Off Day Trainer (“ODT”), a patented software

platform designed to help fitness pros and health clubs scale their businesses through automated messaging and communication management.

addition to owning the ODT software platform, the acquisition will include all branding, media (social), source code, patent associated

with the platform and all existing ODT clients.

March 19, 2019 the Company completed its 2019 Stock Equity Plan.

The purpose of the Plan is to attract and retain the best available

personnel for positions of substantial responsibility with the Company, to provide additional incentive to employees, directors

and consultants of the Company, and to promote the success of the Company’s business.

Under the Plan the Company may issue

up to an aggregate total of 10,000,000 shares of the Company’s common stock.

As of March 29, 2019, the Company has issued

6,500,000 shares of common stock under the Plan.

January 20, 2020, Wais Asefi resigned as Chairman and as a member of our Board of Directors.

Asefi’s resignation is

in support of Resonate Blends strategic direction of becoming a pure play cannabis company.

The Company does not believe that

Asefi has any disagreements on matters relating to our operations, policies or practices.

Also, on January 20, 2020, our Board

of Directors appointed Geoffrey Selzer as our Chairman.

January 21, 2020, we executed a convertible promissory note with Geneva Roth Remark Holdings, Inc.

for $113,300 together with

any interest at the rate of 10% per annum from the issue date.

If we decide to let this Note convert, the variable conversion

price is 75% multiplied by the market price, representing a market discount of 25%.

We have the ability to prepay this Note beginning

on the Issue Date and ending on the date which is one hundred twenty (120) days following the Issue Date with a prepayment percentage

The period beginning on the date which is one hundred twenty-one (121) days following the Issue Date and ending on the

date which is one hundred eight (180) days following the Issue Date, the prepayment percentage is 118%.

RESONATE BLENDS, INC.

(formerly TEXTMUNICATION HOLDINGS, INC.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31,

2019 and 2018

March 3, 2020, we executed a settlement agreement with Cicero on both the Note and email marketing program.

We agreed to pay back

the Note by making payments to Cicero of $10,000 monthly commencing on April 15, 2020 with a balloon payment due on September

Five equal monthly payments of $10,000 each will be made by the 15th of each month starting on April 15, 2020 through

August 15, 2020.

A final payment of $60,000 will be made on September 15, 2020 to close out the payment of the Note in its entirety.

To settle the email marketing program, the Company will issue to Cicero 500,000 shares of restricted common stock upon execution

of this Agreement.

Such shares will be issued to Cicero within 5 business days of the date hereof.

There will be a twelve (12)

month leak-out period that will start once the shares are eligible to be resold, with no more than 5,000 shares allowed to be

sold on any given trading day.

After the issuance of the 500,000 shares, the Contract is paid in full.

previously disclosed, on June 11, 2019, we sold 40,000 shares of our Series D Convertible Preferred Stock (the “Preferred

Shares”) for gross proceeds to us of approximately $200,000.

The Preferred Shares were sold along with warrants to purchase

83,333 shares of our common stock (the “Warrants”).

The Warrants have an exercise price of $0.30 per share and are

exercisable sixty months from the issuance date.

The Warrants provide for cashless exercise in the event we have not registered

the common shares underlying the Warrants.

On March 10, 2020, we entered into Exchange Agreements with three Warrant holders to

exchange their outstanding Warrants for shares of our common stock.

Each Warrant holder shall receive 184,000 shares of our common

stock (the “Exchange Shares”) valued at $0.25 per share in exchange for the Warrant holder’s surrender of the

Each Warrant holder agreed that it will not sell any of the Exchange Shares for sixty (60) days commencing on the Closing

Date (“Lockup Period”).

After the Lockup Period, each Warrant holder agreed that it will not sell more than 61,333

Exchange Shares, plus any Additional Shares (described below) issued in relation to such Exchange Shares in any calendar month.

March 13, 2020, we entered into Securities Purchase Agreements (the “Purchase Agreements”) with three accredited investors

(the “Investors”), pursuant to which we issued and sold to the Investors three promissory notes, dated March 13, 2020,

each in the principal amount of $141,999.99 for an aggregate principal amount of $425,999.97 (the “Notes”).

$399,999.99 from the Notes after applying the original issue discount to the Notes, $232,270.79 of which was used to retire an

existing convertible promissory note and the balance to our account, after legal costs, amounted to $157,229.20.

date for repayment of the Notes is April 20, 2021 and the Notes bear interest at 15% per annum.

We are required to repay the Notes

by making nine equal instalments of $17,613 to each of the three Investors starting on July 13, 2020 and ending on March 13,

As additional consideration, we agreed to issue to each Investor 250,000 shares of our common stock.

We are required to

issue additional shares in the event our common stock trades at less than $0.20 per share in any 10 day trading period.

a right to repurchase the total 750,000 shares issued by paying each Investor $50,000 within 170 calendar days.

The shares may

only be sold under a leak out provision that restricts sales to no more than 10% of our average daily trading volume for the prior

30 days and no more than $35,000 in any calendar month.

All principal and accrued interest on the Notes is convertible into shares

of our common stock upon an event of default.

The conversion price amounts to 65% of the lowest one day VWAP for our common stock

during the 10 trading days prior to the issue date.

The conversion price is subject to adjustment as provided in the Notes.

company has evaluated subsequent events for recognition and disclosure through March 20, 2019 which is the date the financial

statements were available to be issued.

No other matters were identified affecting the accompanying financial statements and related

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data