What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-04-19 compared with 2022-04-18 · 70 added, 75 removed, 813 unchanged (15% of the section changed)

12 unchanged sentences

on the Financial Statements

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

(the “Company”) as of December 31, 2021

and 2020, the related consolidated statements of operations, stockholders’ deficit, and cash flows for each of the two years in

the period ended December 31, 2021, and the related notes (collectively referred to as the “financial statements”).

opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31,

2021 and 2020, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2021,

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

We have audited the accompanying consolidated

balance sheets of Resonate Blends, Inc.

(the “Company”) as of December 31, 2021 and 2020, the related consolidated statements

of operations, stockholders’ deficit, and cash flows for each of the two years in the period ended December 31, 2021, and the related

notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly,

in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and

its cash flows for each of the two years in the period ended December 31, 2021, in conformity with accounting principles generally accepted

in the United States of America.

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

67 unchanged sentences

have served as the Company’s auditor since 2018

Newman Springs Road

1, 4 th Floor, Suite 143

(732) 784-1582

Bank, NJ 07701

(732) 510-0665

TEXTMUNICATION HOLDINGS, INC.)

BALANCE SHEET

13 unchanged sentences

Derivative liability

Settlement liability

Current liabilities of discontinued operations

Total current liabilities

18 unchanged sentences

accompanying notes are an integral part of these consolidated financial statements

STATEMENT OF OPERATIONS

The Three Months Ended

TEXTMUNICATION HOLDINGS, INC.)

STATEMENT OF OPERATION

The Year Ended

1 unchanged sentence

December 31 2020

December 31 2021

December 31 2020

COST OF REVENUES

12 unchanged sentences

Interest expense

Loss on change of derivative liability

Gain on change of derivative liability

( 2,011,881 )

4 unchanged sentences

Gain on settlement of notes payable

Depreciation expense

Total other expense

( 2,341,651 )

Income (loss) from investment in equity method investee

INCOME (LOSS) from continuing operations

2 unchanged sentences

INCOME (LOSS) from discontinued operations

NET INCOME (LOSS)

( 4,873,056 )

4 unchanged sentences

accompanying notes are an integral part of these consolidated financial statements

STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE YEAR ENDED DECEMBER 31, 2021 AND 2020

TEXTMUNICATION, INC.)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

Preferred Stock Series A

4 unchanged sentences

Issuance of common stock in private placement

Debt converted to common stock

Shares issued for services

Issuance of common stock for debt conversions

Non cash compensation

Exercise of warrant

Common Stock Issuance

Common Stock Issuance, shares

Common stock issuance for service

Common stock issuance for service, shares

Stocks issuance to settle notes payable

Stocks issuance to settle notes payable, shares

Cancellation of shares held by Textmunication Inc.

Cancellation of shares held by Textmunication Inc., shares

Shares issued for legal settlement

Shares issued for legal settlement, shares

Cancellation of preferred stocks

Cancellation of preferred stocks, shares

( 4,873,056 )

3 unchanged sentences

$ ( 4,101,931 )

Paid-in Capital

Preferred stock- Series A

Preferred stock - Series C

Total Stockholders’

Balance, December 31, 2019

2 unchanged sentences

Common Stock Issuance

Common stock issuance for services

Stock issuance to settle notes payable

Cancellation of shares held by Textmunication

Common stock issuance for service

Stocks issuance to settle notes payable

Non-cash compensation

Cancellation of shares held by Textmunication Inc.

( 4,755,029 )

Shares issues for legal settlement

Cancellation of preferred stock

Shares issued for legal settlement

Cancellation of preferred stocks

( 4,000,000 )

( 1,941,274 )

Balance, December 31, 2020

$ ( 21,100,995 )

$ ( 996,339 )

accompanying notes are an integral part of these consolidated financial statements

(FORMERLY TEXTMUNICATION,

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the year ended December 31, 2021

years ended December 31, 2021 and 2020

Cash Flows from Operating Activities

6 unchanged sentences

Impairment of investments

Amortization and depreciation

Loss on derivative liability

5 unchanged sentences

Gain on settlement of derivative liabilities

Depreciation expense

Changes in operating assets and liabilities

16 unchanged sentences

Proceeds from convertible notes (net)

Proceeds from warrant exercise

Proceeds from notes payables

Payments on preferred stocks buy back

Payments on convertible notes payable

2 unchanged sentences

Net cash used in finance

Net increase in cash

Net increase (decrease) in cash

Cash, beginning of period

8 unchanged sentences

RESONATE BLENDS,

(formerly TEXTMUNICATION

HOLDINGS, INC.)

NOTES TO THE CONSOLIDATED

172 unchanged sentences

31, 2021, the Company has an accumulated deficit of $ 25,974,051 .

The company’s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements

and its ability to achieve and maintain profitable operations.

While the Company is expanding its best efforts to achieve the above plans,

there is no assurance that any such activity will generate funds that will be available for operations.

These conditions raise substantial

doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial

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

The company’s ability to continue as a going concern is contingent upon the successful

completion of additional financing arrangements and its ability to achieve and maintain profitable operations.

While the Company is expanding

its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available

for operations.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period

of one year from the issuance of these financial statements.

These consolidated financial statements do not include any adjustments that

might arise from this uncertainty.

NOTE 2 – SUMMARY

282 unchanged sentences

As of December 31,

31, 2021 and 2020 accrued interest payable on notes payable were $ 134,759 and $ 54,659

respectively.

2021 and 2020 accrued interest payable on notes payable were $ 134,758.63 and $ 54,659 respectively.

The Company accounts

62 unchanged sentences

During the year ended

December 31, 2018,

the 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

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

company common shares outstanding for $ 100,000 .

During 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

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

During the first quarter

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

The fair market

value of the share issues accounted as expenses as follows:

SCHEDULE OF COMPENSATION AND SERVICES RENDERED

Management Fees

Payment to subcontractor

During the second quarter

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

During 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 .

During 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.

During the year ended

December 31, 2021 the company issued a total of 3,427,990 shares of common stock to management and vendors for compensation and services

19 unchanged sentences

Gain (loss) from discontinued operations

$ ( 108,748 )

NOTE 9 – SUBSEQUENT

49 unchanged sentences

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/A

Item 8. Financial Statements and Supplementary Data