Resonate Blends Inc (KOAN)

[TEDennis]

NT-10K notice of late filing

From Form 12b-25, filed 4/1/2005

Firstwave Technologies, Inc. (“Registrant”) is in the process of compiling and reviewing the financial information to be included in the Form 10-K for the year ended December 31, 2004. This process could not be completed by the date required without incurring unreasonable effort and expense. The Registrant is re-evaluating the assumptions utilized at year-end to evaluate certain significant intangibles, including goodwill. The Registrant expects to file its Form 10-K within the fifteen days provided by this Form 12b-25.

[...snip...]

Notwithstanding any changes resulting from the evaluation indicated above in Part III, current estimates comparing 2004 to 2003 show a decrease of 38% in total revenues from $11,904,000 to $7,400,000, and an increase in net loss applicable to common shareholders from $996,000 to $4,143,000. In addition to reduced revenues, the increase in the net loss included a $711,000 write-off of previously capitalized software development costs, a $153,000 rent expense for abandoned office space, and a reserve of $240,000 for surplus third party products. If a determination is made to establish a change to intangibles, those changes will impact the above numbers. The Registrant does not anticipate any restatement of prior period financial statements that it filed on Forms 10-Q and 10-K due to this evaluation. Complete details will be explained in Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Form 10-K.

http://www.sec.gov/Archives/edgar/data/897078/000116796605000517/t5644_nt10k.htm

Filed on 4/1/2005 at 5:26pm EST