Controls and Procedures
−Removed: required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our
−Removed: disclosure controls and procedures as of the end of the period covered by this annual report, being December 31, 2018.
−Removed: This evaluation
−Removed: was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and
−Removed: Chief Financial Officer.
−Removed: controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed
−Removed: in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within
−Removed: the time periods specified in the Securities and Exchange Commission’s rules and forms.
−Removed: Disclosure controls and procedures
−Removed: include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed
−Removed: under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer
−Removed: and Chief Financial Officer, to allow timely decisions regarding required disclosure.
−Removed: upon that evaluation, including our Chief Executive Officer and Chief Financial Officer, we have concluded that our disclosure
−Removed: controls and procedures were ineffective as of the end of the period covered by this annual report.
−Removed: Management’s
+Added: of Disclosure Controls and Procedures
+Added: required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure
+Added: controls and procedures as of the end of the period covered by this annual report, being December 31, 2021.
+Added: This evaluation was carried
+Added: out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.
+Added: controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our
+Added: reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time
+Added: periods specified in the Securities and Exchange Commission’s rules and forms.
+Added: Disclosure controls and procedures include controls
+Added: and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Securities
+Added: Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Investment Officer,
+Added: to allow timely decisions regarding required disclosure.
+Added: upon that evaluation, including our Chief Executive Officer and Chief Investment Officer, we have concluded that our disclosure controls
+Added: and procedures were ineffective as of the end of the period covered by this annual report.
Annual Report on Internal Control over Financing Reporting
−Removed: management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule
−Removed: 13a-15(f) under the Securities Exchange Act of 1934).
−Removed: Management has assessed the effectiveness of our internal control over financial
−Removed: reporting as of December 31, 2018 based on criteria established in Internal Control-Integrated Framework issued by the Committee
−Removed: of Sponsoring Organizations of the Treadway Commission.
−Removed: As a result of this assessment, management concluded that, as of December
−Removed: 31, 2018, our internal control over financial reporting was not effective.
−Removed: Our management identified the following material weaknesses
−Removed: in our internal control over financial reporting, which are indicative of many small companies with small staff:
−Removed: (i) inadequate
−Removed: segregation of duties and effective risk assessment;
−Removed: and (ii) insufficient written policies and procedures for accounting and
−Removed: financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.
+Added: management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f)
+Added: under the Securities Exchange Act of 1934).
+Added: Management has assessed the effectiveness of our internal control over financial reporting
+Added: as of December 31, 2021 based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring
+Added: Organizations of the Treadway Commission.
+Added: As a result of this assessment, management concluded that, as of December 31, 2021, our internal
+Added: control over financial reporting was not effective.
+Added: Our management identified the following material weaknesses in our internal control
+Added: over financial reporting, which are indicative of many small companies with small staff:
+Added: (i) inadequate segregation of duties and effective
+Added: risk assessment;
+Added: and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements
+Added: and application of both US GAAP and SEC guidelines.
plan to take steps to enhance and improve the design of our internal control over financial reporting.
−Removed: During the period covered
−Removed: by this annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above.
−Removed: such weaknesses, we hope to implement the following changes during our fiscal year ending December 31, 2019:
−Removed: (i) appoint additional
−Removed: qualified personnel to address inadequate segregation of duties and ineffective risk management;
−Removed: and (ii) adopt sufficient written
−Removed: policies and procedures for accounting and financial reporting.
−Removed: The remediation efforts set out in (i) and (ii) are largely dependent
−Removed: upon our securing additional financing to cover the costs of implementing the changes required.
−Removed: If we are unsuccessful in securing
−Removed: such funds, remediation efforts may be adversely affected in a material manner.
−Removed: annual report does not include an attestation report of our registered public accounting firm regarding internal control over
−Removed: financial reporting.
−Removed: Management’s report was not subject to attestation by our registered public accounting firm pursuant
−Removed: to an exemption for non-accelerated filers set forth in Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection
+Added: During the period covered by this
+Added: annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above.
+Added: To remediate such weaknesses,
+Added: we hope to implement the following changes during our fiscal year ending December 31, 2022:
+Added: (i) appoint additional qualified personnel
+Added: to address inadequate segregation of duties and ineffective risk management;
+Added: and (ii) adopt sufficient written policies and procedures
+Added: for accounting and financial reporting.
+Added: The remediation efforts set out in (i) and (ii) are largely dependent upon our securing additional
+Added: financing to cover the costs of implementing the changes required.
+Added: If we are unsuccessful in securing such funds, remediation efforts
+Added: may be adversely affected in a material manner.
+Added: annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial
+Added: Management’s report was not subject to attestation by our registered public accounting firm pursuant to an exemption
+Added: for non-accelerated filers set forth in Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Other Information
+Added: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
Directors, Executive Officers and Corporate Governance
following table sets forth the name and positions of our executive officer and director as of the date hereof.
−Removed: CEO and Director
Operating Officer
−Removed: President of Sales
+Added: Investment Officer and Director
forth below is a brief description of the background and business experience of our executive officer and director:
−Removed: Asefi has served as our President, CEO and Director since November 17, 2013.
−Removed: He served as the Chief Executive Officer
−Removed: and Chairman of Textmunication, Inc., our subsidiary, since March of 2009 to the present.
−Removed: From August 2008 to March 2009, he was
−Removed: exploring and researching his to launch his next company.
−Removed: From January 2002 until July 2008, he was the founder and CEO of Metro
−Removed: General Insurance, an insurance agency focusing on personal lines, life and commercial insurance products.
−Removed: Asefi’s background, passion for technology and experience in starting new business’s from ground up, mergers and acquisition
−Removed: and keen talent for decision making building professional team supports his service as a director of our company.
−Removed: Asefi does not hold and has not held over the past five years any other directorships in any company with a class of securities
−Removed: registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any
−Removed: company registered as an investment company under the Investment Company Act of 1940.
−Removed: Thielen was named as COO of our company on March 1, 2017, and may be considered significant in that he is also the CEO of Apsire,
−Removed: a company that we have a minority interest in.
−Removed: His contributions to the success of Aspire is directly tied to our financial success
−Removed: as a shareholder of Aspire.
−Removed: Thielen brings more than twenty-five years of executive leadership, strategic management and progressive sales experience in IT
−Removed: Services and Healthcare.
−Removed: Thielen worked for global Healthcare surgical manufacture, DeRoyal, for more than twenty years in sales leadership positions as
−Removed: Regional Manager and Area Vice President.
−Removed: Following his career with DeRoyal, he started a successful IT Services company.
−Removed: in the Washington, D.C.
−Removed: market, he worked in Human Capital Management with Randstad Technologies and Alltech - and with IT System
−Removed: Integrator, ICS Nett.
−Removed: Thielen formed Aspire with his business partner in late 2014.
−Removed: Aspire is a Service Disabled Veteran-Owned Small Business (SDVOSB)
−Removed: providing cutting-edge project-based solutions for both commercial and federal clients.
−Removed: will continue operating as CEO of Aspire while managing the partner relationships, sales channel and daily operations for our
−Removed: In his dual role, Mr.
−Removed: Thielen will continue to leverage his vast network of clients increasing partnership opportunities
−Removed: in Technology and Healthcare services.
−Removed: Thielen is a graduate of Iowa State University.
−Removed: Thielen does not hold and has not held over the past five years any other directorships in any company with a class of securities
−Removed: registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any
−Removed: company registered as an investment company under the Investment Company Act of 1940.
−Removed: Miniello has been with our company in sales and was named VP of Sales on January 1, 2017.
−Removed: His sales leadership began in 2000 within
−Removed: the mobile wireless industry as a Regional Manager for AT&T.
−Removed: As Regional Manager, Mr.
−Removed: Miniello earned “Top Regional
−Removed: Manager”
−Removed: for two consecutive years.
−Removed: six years with AT&T, he shifted to the fitness industry managing ‘24 Hour Fitness’
−Removed: clubs for three years taking
−Removed: over a struggling location.
−Removed: His turnaround efforts earned him the “most improved”
−Removed: location award in the San Francisco
−Removed: nine years in the mobile and fitness space, he co-founded our company in 2009 with the goal of becoming the leading SMS provider
−Removed: in the health and fitness industry.
−Removed: Miniello’s background consists of 17 years of sales and leadership experience.
−Removed: has his AA degree from Los Medanos College in the San Francisco Bay area.
−Removed: Miniello does not hold and has not held over the past five years any other directorships in any company with a class of securities
−Removed: registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any
−Removed: company registered as an investment company under the Investment Company Act of 1940.
−Removed: directors are elected to hold office until the next annual meeting of the shareholders and until their respective successors have
−Removed: been elected and qualified.
−Removed: Our executive officers are appointed by our board of directors and hold office until removed by our
−Removed: board of directors or until their successors are appointed.
+Added: Selzer – Chief Executive Officer and Chairman
+Added: Selzer has built his career through over two decades of hands-on corporate finance, management, creative and production experience.
+Added: roles include CEO of Emergent Game Technologies, a video game software company, and the Creative Head of Disney Interactive’s edutainment
+Added: Geoffrey is the founder of Resonate Blends and has a passion for building organizations and delivering results.
+Added: Selzer does not hold and has not held over the past five years any other directorships in any company with a class of securities registered
+Added: pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered
+Added: as an investment company under the Investment Company Act of 1940.
+Added: Kerwin – Chief Operating Officer
+Added: Kerwin has extensive senior management experience with both start-up and Fortune 500 companies.
+Added: As the Vice President and General Manager
+Added: of Pixar Animation Studios, Pamela played a critical role in the company’s successful IPO and transition from a tech company to
+Added: a blockbuster studio.
+Added: Pam is a company builder who specializes in identifying competitive advantages and executing successful marketing
+Added: Kerwin does not hold and has not held over the past five years any other directorships in any company with a class of securities registered
+Added: pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered
+Added: as an investment company under the Investment Company Act of 1940.
+Added: Thielen – Chief Investment Officer and Board Member
+Added: Thielen’s career includes roles in Management, Sales, Business Development, Start-ups and Strategy Management as Vice President,
+Added: Prior to joining Textmunication Holdings, Inc.
+Added: in 2017 as COO, he served as Area Vice President of DeRoyal, a global healthcare
+Added: manufacture doing $500 million in annual revenues.
+Added: In 2014, he founded Aspire Consulting Group based in Washington, D.C., an IT Services
+Added: government system integrator that continues to operate as Veteran Owned company.
+Added: Thielen does not hold and has not held over the past five years any other directorships in any company with a class of securities registered
+Added: pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered
+Added: as an investment company under the Investment Company Act of 1940.
+Added: directors are elected to hold office until the next annual meeting of the shareholders and until their respective successors have been
+Added: elected and qualified.
+Added: Our executive officers are appointed by our board of directors and hold office until removed by our board of directors
+Added: or until their successors are appointed.
Relationships
−Removed: are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become
−Removed: directors or executive officers.
+Added: are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors
+Added: or executive officers.
+Added: have no significant employees.
in Certain Legal Proceedings
−Removed: the past 10 years, none of our current directors, nominees for directors or current executive officers has been involved in any
−Removed: legal proceeding identified in Item 401(f) of Regulation S-K, including:
−Removed: Any petition under the Federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or
−Removed: similar officer was appointed by a court for the business or property of such person, or any partnership in which he or she was
−Removed: a general partner at or within two years before the time of such filing, or any corporation or business association of which he
−Removed: or she was an executive officer at or within two years before the time of such filing;
−Removed: Any conviction in a criminal proceeding or being named a subject of a pending criminal proceeding (excluding traffic violations
−Removed: and other minor offenses);
+Added: the past 10 years, none of our current directors, nominees for directors or current executive officers has been involved in any legal
+Added: proceeding identified in Item 401(f) of Regulation S-K, including:
+Added: Any petition under the Federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or similar
+Added: officer was appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner
+Added: at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive
+Added: officer at or within two years before the time of such filing;
+Added: Any conviction in a criminal proceeding or being named a subject of a pending criminal proceeding (excluding traffic violations and other
+Added: minor offenses);
Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining him or her from, or otherwise limiting, the following activities:
−Removed: Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,
−Removed: leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person
−Removed: of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person,
−Removed: director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing
−Removed: any conduct or practice in connection with such activity;
+Added: Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
+Added: transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing,
+Added: or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment
+Added: company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection
+Added: with such activity;
Engaging in any type of business practice;
−Removed: Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation
−Removed: of Federal or State securities laws or Federal commodities laws;
−Removed: Being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority
−Removed: barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any type of business regulated
−Removed: by the Commodity Futures Trading Commission, securities, investment, insurance or banking activities, or to be associated with
−Removed: persons engaged in any such activity;
−Removed: Being found by a court of competent jurisdiction in a civil action or by the SEC to have violated any Federal or State securities
−Removed: law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
−Removed: Being found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated
−Removed: any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has
−Removed: not been subsequently reversed, suspended or vacated;
+Added: Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of
+Added: Federal or State securities laws or Federal commodities laws;
+Added: Being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring,
+Added: suspending or otherwise limiting for more than 60 days the right of such person to engage in any type of business regulated by the Commodity
+Added: Futures Trading Commission, securities, investment, insurance or banking activities, or to be associated with persons engaged in any
+Added: such activity;
+Added: Being found by a court of competent jurisdiction in a civil action or by the SEC to have violated any Federal or State securities law,
+Added: and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
+Added: Being found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any
+Added: Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently
+Added: reversed, suspended or vacated;
Being subject to, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently
2 unchanged sentences
Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent
−Removed: injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal
−Removed: or prohibition order;
+Added: injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or
+Added: prohibition order;
Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity;
−Removed: Being subject to, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory
−Removed: organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C.
−Removed: 78c(a)(26))), any registered entity (as defined in
−Removed: Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C.
−Removed: 1(a)(29))), or any equivalent exchange, association, entity or organization
−Removed: that has disciplinary authority over its members or persons associated with a member.
+Added: Being subject to, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization
+Added: (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C.
+Added: 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of
+Added: the Commodity Exchange Act (7 U.S.C.
+Added: 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
+Added: authority over its members or persons associated with a member.
do not have a separately designated standing audit committee.
−Removed: The entire board of directors performs the functions of an audit
−Removed: committee, but no written charter governs the actions of the board of directors when performing the functions of that would generally
−Removed: be performed by an audit committee.
−Removed: The board of directors approves the selection of our independent accountants and meets and
−Removed: interacts with the independent accountants to discuss issues related to financial reporting.
−Removed: In addition, the board of directors
−Removed: reviews the scope and results of the audit with the independent accountants, reviews with management and the independent accountants
−Removed: our annual operating results, considers the adequacy of our internal accounting procedures and considers other auditing and accounting
−Removed: matters including fees to be paid to the independent auditor and the performance of the independent auditor.
+Added: The entire board of directors performs the functions of an audit committee,
+Added: but no written charter governs the actions of the board of directors when performing the functions of that would generally be performed
+Added: by an audit committee.
+Added: The board of directors approves the selection of our independent accountants and meets and interacts with the
+Added: independent accountants to discuss issues related to financial reporting.
+Added: In addition, the board of directors reviews the scope and results
+Added: of the audit with the independent accountants, reviews with management and the independent accountants our annual operating results,
+Added: considers the adequacy of our internal accounting procedures and considers other auditing and accounting matters including fees to be
+Added: paid to the independent auditor and the performance of the independent auditor.
do not have an audit committee financial expert because of the size of our company and our board of directors at this time.
−Removed: believe that we do not require an audit committee financial expert at this time because we retain outside consultants who possess
−Removed: these attributes as needed.
+Added: that we do not require an audit committee financial expert at this time because we retain outside consultants who possess these attributes
the fiscal year ending December 31, 2021, the board of directors:
and discussed the audited financial statements with management, and
−Removed: and discussed the written disclosures and the letter from our independent auditors on the matters relating to the auditor’s
+Added: and discussed the written disclosures and the letter from our independent auditors on the matters relating to the auditor’s
independence.
−Removed: upon the board of directors’
−Removed: review and discussion of the matters above, the board of directors authorized inclusion of
−Removed: the audited financial statements for the year ended December 31, 2018 to be included in this Annual Report on Form 10-K and filed
−Removed: with the Securities and Exchange Commission.
+Added: upon the board of directors’ review and discussion of the matters above, the board of directors authorized inclusion of the audited
+Added: financial statements for the year ended December 31, 2021 to be included in this Annual Report on Form 10-K and filed with the Securities
+Added: and Exchange Commission.
16(a) Beneficial Ownership Reporting Compliance
−Removed: 16(a) of the Exchange Act requires our directors and executive officers and persons who beneficially own more than ten percent
−Removed: of a registered class of the Company’s equity securities to file with the SEC initial reports of ownership and reports of
−Removed: changes in ownership of common stock and other equity securities of the Company.
−Removed: Officers, directors and greater than ten percent
−Removed: beneficial shareholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file.
−Removed: best of our knowledge based solely on a review of Forms 3, 4, and 5 (and any amendments thereof) received by us during or with
−Removed: respect to the year ended December 31, 2018, the following persons have failed to file, on a timely basis, the identified reports
−Removed: required by Section 16(a) of the Exchange Act during fiscal year ended December 31, 2018:
−Removed: and principal position
−Removed: a required form
−Removed: CFO & Director
−Removed: Nick Miniello
+Added: 16(a) of the Exchange Act requires our directors and executive officers and persons who beneficially own more than ten percent of a registered
+Added: class of the Company’s equity securities to file with the SEC initial reports of ownership and reports of changes in ownership
+Added: of common stock and other equity securities of the Company.
+Added: Officers, directors and greater than ten percent beneficial shareholders
+Added: are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file.
+Added: To the best of our knowledge based solely
+Added: on a review of Forms 3, 4, and 5 (and any amendments thereof) received by us, no persons have failed to file, on a timely basis, the
+Added: identified reports required by Section 16(a) of the Exchange Act during fiscal year ended December 31, 2021.
of December 31, 2021, we had not adopted a Code of Ethics.
−Removed: We feel that the small size of our board and management did not warrant
−Removed: the adoption of a Code of Ethics.
+Added: We feel that the small size of our board and management did not warrant the
+Added: adoption of a Code of Ethics.
Executive Compensation
−Removed: table below summarizes all compensation awarded to, earned by, or paid to our former or current executive officers for the fiscal
−Removed: years ended December 31, 2018 and 2017.
−Removed: and principal
−Removed: CEO, Director
−Removed: David Thielen
+Added: table below summarizes all compensation awarded to, earned by, or paid to our former or current executive officers for the fiscal years
+Added: ended December 31, 2021 and 2020.
+Added: Name and principal position
+Added: Former President, Chairman, CEO and Director
Nick Miniello
+Added: Former VP of Sales
+Added: Geoffrey Selzer
+Added: CEO and Director
+Added: David Thielen
+Added: CIO and Director
+Added: Chief Operating Officer
to Summary Compensation Table
−Removed: Asefi was appointed as our President, CEO and director on November 17, 2013.
−Removed: Asefi was paid $40,000 in 2012 and $60,000 in
−Removed: 2013 by our wholly-owned subsidiary, Textmunication, Inc.
−Removed: He signed an employment agreement on December 17, 2013 with Textmunication,
−Removed: to serve as CEO and Chairman and will receive an annual salary of $100,000 and is eligible for bonuses as determined by the
−Removed: Board, and other benefits, such as paid vacation, retirement benefits and life insurance as established by the company.
−Removed: the agreement, he also received an $800 per month allowance for an automobile for personal and professional use.
−Removed: Asefi agreed not to compete with our business for 3 years and not to solicit employees or customers of our company for a period
−Removed: of twelve months.
−Removed: The agreement has a term until May 1, 2017 but automatically renews for an additional year unless either party
−Removed: provides a notice of termination 90 days prior to scheduled termination.
−Removed: There are provisions that provide for termination for
−Removed: cause and resignation for good reason.
−Removed: We will be required to pay Mr.
−Removed: Asefi severance as provided under the agreement.
−Removed: have no other employment agreements with our executive officers.
March 1, 2017, we appointed David Thielen as of Chief Operating Officer.
We do not have an employment agreement with Mr.
−Removed: He is CEO of Aspire in which we own a 49% equity interest.
+Added: was CEO of Aspire in which we used to own a 49% equity interest.
Thielen an annual salary of $60,000.
−Removed: January 1, 2017, we appointed Nick Miniello as Vice President of Sales.
−Removed: We do not have an employment agreement with Mr.
−Removed: and he has not had any material interest in our company in the last two fiscal years.
−Removed: We pay him an annual salary of $72,000.
+Added: On October 25, 2019,
+Added: Thielen resigned as COO of Textmunication and accepted a new role as Chief Investment Officer (CIO) and Director.
+Added: an employment agreement and is paid $120,000 annually.
+Added: He can also receive equity shares through assigned revenue and company milestones
+Added: set by the Board of Directors.
+Added: the merger of Resonate Blends LLC and Entourage Labs LLC on October 25, 2019, Mr.
+Added: Selzer was announced as Chief Executive Officer of
+Added: the holding company.
+Added: His annual salary is $180,000 and his team has 10% non-dilutive stock, with Mr.
+Added: Selzer controlling 51% of this amount.
+Added: Selzer also has equity milestones in place for meeting preassigned revenue and market valuation goals.
+Added: Selzer’s term of employment is for two years.
+Added: He may request to terminate his employment contract and forfeit all benefits and
+Added: equity grants, if provided, with a 30-day notice.
+Added: Should he terminate his employment before two years, he will forfeit the right to earn
+Added: any future milestone achievement benefits entirely regardless of how close the company may be to achieving them.
+Added: At the end of his employment
+Added: term, an option to continue employment at an annual contract or at-will employment will be available if agreed upon by both parties.
+Added: The Company may not terminate his employment without Cause.
+Added: Pamela Kerwin was announced as Chief Operating Officer of the holding company on October 25, 2019.
+Added: Kerwin’s salary is $120,000
+Added: annually and she also participates in the 10% of non-dilutive stock of the holding company.
+Added: term of employment is for two years.
+Added: She may request to terminate her employment contract and forfeit all benefits and equity grants,
+Added: if provided, with a 30-day notice.
+Added: Should she terminate her employment before two years, she will forfeit the right to earn any future
+Added: milestone achievement benefits entirely regardless of how close the company may be to achieving them.
+Added: However, should a change of control
+Added: occur resulting in the sale of the business anytime within 9 months of termination, all milestone achievements shall be deemed accomplished
+Added: and all rights to the shares shall immediately vest prior to the close of such Change of Control event.
Equity Awards at Fiscal Year-End
−Removed: at December 31, 2018 we did not have any outstanding equity awards.
+Added: table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive
+Added: officers as of December 31, 2021.
+Added: OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
+Added: OPTION AWARDS
+Added: Number of Securities Underlying Unexercised Options (#) Exercisable
+Added: Number of Securities Underlying Unexercised Options (#) Unexercisable
+Added: Equity Incentive Plan Awards:
+Added: Number of Securities Underlying Unexercised Unearned Options (#)
+Added: Option Exercise Price ($)
+Added: Option Expiration Date
+Added: Number of Shares or Units of Stock That Have Not Vested (#)
+Added: Market Value of Shares or Units of Stock That Have Not Vested ($)
+Added: Equity Incentive Plan Awards:
+Added: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)
+Added: Equity Incentive Plan Awards:
+Added: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#)
+Added: David Thielen
+Added: Geoffrey Selzer
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
−Removed: following table sets forth, as of Jan 01, 2019, certain information as to shares of our common stock owned by (i) each person
−Removed: known by us to beneficially own more than 5% of our outstanding common stock, (ii) each of our directors, and (iii) all of our
−Removed: executive officers and directors as a group.
−Removed: Unless otherwise stated, the address for each beneficial owner is at 1940 Contra
−Removed: Pleasant Hill, CA 94523.
−Removed: and Address of Beneficial Owner
−Removed: A Preferred Stock
−Removed: C Preferred Stock
−Removed: of Shares Owned
+Added: OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS
+Added: following table sets forth, as of April 14, 2022, certain information as to shares of our common stock owned by (i) each person
+Added: known by us to beneficially own more than 5% of our outstanding common stock, (ii) each of our directors, and (iii) all of our executive
+Added: officers and directors as a group.
+Added: Unless otherwise stated, the address for each beneficial owner is at 26565 Agoura Road, Suite 200
+Added: Calabasas, CA 91302.
+Added: Preferred Stock
+Added: Number of Shares
+Added: Number of Shares
+Added: Geoffrey Selzer
David Thielen
−Removed: Nick Miniello
−Removed: All Directors and Executive Officers
−Removed: as a Group (3 persons)
−Removed: 250,000,000 shares of common stock, 4,000,000 shares of Series A Preferred Stock that may convert into 4,000,000 shares of
−Removed: common stock, and 2,000,000 shares of Series C Preferred Stock that may convert into 1,750,000,000 shares of common stock.
−Removed: to Rules 13d-3 and 13d-5 of the Exchange Act, beneficial ownership includes any shares as to which a shareholder has sole
−Removed: or shared voting power or investment power, and also any shares which the shareholder has the right to acquire within 60 days,
−Removed: including upon exercise of common shares purchase options or warrants.
−Removed: percent of class is based on 3,975,519,454 shares of common stock outstanding, 4,000,000 shares of Series A Preferred Stock
−Removed: outstanding and 1,750,000 shares of Series C Preferred Stock outstanding as of June 13, 2018.
+Added: All Directors and Executive Officers as a Group (3 persons)
+Added: to Rules 13d-3 and 13d-5 of the Exchange Act, beneficial ownership includes any shares as to which a shareholder has sole or shared
+Added: voting power or investment power, and also any shares which the shareholder has the right to acquire within 60 days, including upon
+Added: exercise of common shares purchase options or warrants.
+Added: percent of class is based on 47,796,859 shares of common stock outstanding and 2,000,000 shares of Series C Preferred Stock
+Added: outstanding as of April 14, 2022.
Certain Relationships and Related Transactions, and Director Independence
−Removed: from that which is disclosed in “Executive Compensation,”
−Removed: none of our directors or executive officers, nor any proposed
−Removed: nominee for election as a director, nor any person who beneficially owns, directly or indirectly, shares carrying more than 5%
−Removed: of the voting rights attached to all of our outstanding shares, nor any members of the immediate family (including spouse, parents,
−Removed: children, siblings, and in-laws) of any of the foregoing persons has any material interest, direct or indirect, in any transaction
−Removed: for the last two fiscal years or in any presently proposed transaction which, in either case, has or will materially affect us.
+Added: than described below or the transactions described under the heading “Executive Compensation” (or with respect to which such
+Added: information is omitted in accordance with SEC regulations), there have not been, and there is not currently proposed, any transaction
+Added: or series of similar transactions to which we were or will be a participant in which the amount involved exceeded or will exceed the
+Added: lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years, and in which
+Added: any director, executive officer, holder of 5% or more of any class of our capital stock or any member of the immediate family of any
+Added: of the foregoing persons had or will have a direct or indirect material interest.
+Added: May 22, 2020, the Company entered into a Separation and Release Agreement (the “Separation Agreement”) with Wais Asefi.
+Added: to the Separation Agreement, Mr.
+Added: Asefi agreed to separate from all officer positions and as a director of the Company and to further
+Added: accept the payment of $200,000 from the Company’s future fundraising as consideration of all debts outstanding under Mr.
+Added: employment agreement with the Company.
+Added: Asefi further agreed to cancel his 4,000,000 shares of Series A Preferred Stock and to transfer
+Added: his 2,000,000 shares of Series C Preferred Stock to Geoffrey Selzer, the Company’s current CEO and Director.
+Added: Asefi further
+Added: released the Company of all claims.
+Added: May 22, 2020, the 4,000,000 shares of Series A Preferred Stock were returned to the Company’s transfer agent and cancelled and
+Added: on May 22, 2020 the 2,000,000 shares of Series C Preferred Stock were transferred to Mr.
+Added: The parties to the Separation Agreement
+Added: agreed to a payment schedule of $200,000 based on future monies raised by the Company - and not on a specific date – as follows:
+Added: when the initial $250,000 is raised by the Company;
+Added: when a total of $500,000 is raised by the Company;
+Added: when a total of $750,000 is raised by the Company;
+Added: when a total of $1,750,000 is raised by the Company;
+Added: when a total of $2,750,000 is raised by the Company;
+Added: when a total of $3,750,000 is raised by the Company;
+Added: when a total of $4,750,000 is raised by the Company;
+Added: when a total of $5,750,000 is raised by the Company.
+Added: May 13, 2021, we amended the Separation Agreement to state the parties desire to reduce the total amount payable to Wais Asefi from $200,000
+Added: USD to $142,500 USD.
+Added: In addition to the earlier payments made to Mr.
+Added: Asefi, a payment of $40,000 was made on May 14, 2021 and another
+Added: payment on June 27, 2021 for $40,000.
+Added: The final payment was made on August 11, 2021 for $25,000.
+Added: The final payment on August 11, 2021
+Added: settled this agreement in full.
+Added: Further under the amendment, Mr.
+Added: Asefi nominated Textmunication, Inc., our prior subsidiary, as the recipient
+Added: of the funds due under the Separation Agreement.
+Added: As of December 31, 2021, the Company made all of its required payments to Mr.
+Added: outstanding balances as of December 31, 2021 and December 31, 2020 are $45,000 and $187,500 respectively.
Principal Accounting Fees and Services
−Removed: is the table of Audit Fees (amounts in US$) billed by our auditor in connection with the audit of the Company’s annual financial
−Removed: statements for the years ended:
−Removed: Statements for the Year Ended December 31
+Added: are tables of Audit Fees (amounts in US$) billed by our auditors in connection with the audit of the Company’s annual financial
+Added: statements and review of the quarterly financial statements for the years ended:
+Added: Financial Statements for the
+Added: Year Ended December 31
+Added: Audit Services
Exhibits, Financial Statements Schedules
2 unchanged sentences
Statements (See Item 8)
−Removed: of Incorporation, as amended (1)
−Removed: as amended (1)
+Added: Stock Purchase Agreement (1)
+Added: Interest Purchase Agreement (2)
+Added: Interest Purchase Agreement (2)
+Added: of Conveyance (2)
+Added: Letter of Intent (11)
+Added: of Incorporation (3)
of Change (3)
+Added: of Amendment (4)
+Added: to Certificate of Designation for Series C Preferred Stock (5)
+Added: of Designation for Series E Preferred Stock (7)
+Added: of Amendment (8)
+Added: as amended (3)
+Added: Convertible Promissory Note (6)
+Added: Unsecured Convertible Promissory Note (10)
+Added: Promissory Note (12)
+Added: Promissory Note (12)
+Added: Stock Purchase Warrant (12)
+Added: Stock Purchase Warrant (12)
+Added: Promissory Note (13)
+Added: Promissory Note (13)
+Added: Stock Purchase Warrant (13)
+Added: Stock Purchase Warrant (13)
+Added: Convertible Promissory Note (14)
+Added: Common Stock Purchase Warrant (14)
+Added: Agreement and Release (1)
+Added: Agreement (1)
+Added: Agreement (2)
+Added: Agreement (2)
+Added: Purchase Agreement (6)
+Added: to Securities Purchase Agreement (9)
+Added: Purchase Agreement (12)
+Added: Purchase Agreement (12)
Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
2 unchanged sentences
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
+Added: XBRL Instance Document
+Added: XBRL Taxonomy Extension Schema Document
+Added: XBRL Taxonomy Extension Calculation Linkbase Document
+Added: XBRL Taxonomy Extension Definition Linkbase Document
+Added: XBRL Taxonomy Extension Label Linkbase Document
+Added: XBRL Taxonomy Extension Presentation Linkbase Document
+Added: Page Interactive Data File (embedded within the Inline XBRL document)
+Added: by reference to the Current Report on Form 8-K filed on July 20, 2020.
+Added: by reference to the Current Report on Form 8-K filed on October 31, 2019.
by reference to the Registration Statement on Form S-1 filed on June 6, 2014.
−Removed: to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed
−Removed: on its behalf by the undersigned, thereunto duly authorized.
−Removed: Textmunication
−Removed: Holdings, Inc.
−Removed: Chief Executive Officer, Principal Executive Officer,
−Removed: Financial Officer, Principal Financial Officer, Principal Accounting Officer and Director
−Removed: to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf
−Removed: of the registrant and in the capacities and on the dates indicated.
−Removed: Chief Executive Officer, Principal Executive Officer,
−Removed: Financial Officer, Principal Financial Officer, Principal Accounting Officer and Director
+Added: by reference to the Quarterly Report on Form 10-Q filed on November 23, 2020.
+Added: by reference to the Current Report on Form 8-K filed on May 21, 2019.
+Added: by reference to the Current Report on Form 8-K filed on July 23, 2020.
+Added: by reference to the Current Report on Form 8-K filed on August 10, 2020.
+Added: by reference to the Quarterly Report on Form 10-Q filed on August 14, 2020.
+Added: by reference to the Current Report on Form 8-K filed on September 21, 2020.
+Added: by reference to the Current Report on Form 8-K filed on March 18, 2021.
+Added: by reference to the Current Report on Form 8-K filed on September 13, 2021.
+Added: by reference to the Current Report on Form 8-K filed on February 3, 2022.
+Added: by reference to the Current Report on Form 8-K filed on February 10, 2022.
+Added: Incorporated by reference to the Current Report on Form 8-K filed on March
+Added: Form 10-K Summary
+Added: to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its
+Added: behalf by the undersigned, thereunto duly authorized.
+Added: Resonate Blends, Inc.
+Added: Geoffrey Selzer
+Added: Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting
+Added: Officer and Director
+Added: to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
+Added: registrant and in the capacities and on the dates indicated.
+Added: Geoffrey Selzer
+Added: Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting
+Added: Officer and Director
+Added: David Thielen
+Added: Investment Officer and Director
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.