Resonate Blends, Inc issued a Promissory Note in the principal amount of $265,000 with the participation of accredited investor on August 1, 2023. The company received $250,000 from the note after applying the original issue discount of $15,000 in the transaction. The maturity date for repayment of the principal on the above notes is three months from issuance.

There is no penalty or premium for prepayments, but if company is in default, the interest rate is 18% per annum. The Note will convert into common stock into the next funding round expected to be priced at $.08 per share issued in a Series Preferred with a 4% coupon payable until the pref is converted into common stock. A 2-year cash warrant with 50% coverage priced at $.25 is also available as part of this conversion.