The following discussion is intended to assist in the understanding and assessment of significant changes and trends related to the results of operations and financial condition of DLT Resolution, Inc. This discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Critical Accounting Policies





Use of Estimates

The preparation of our consolidated financial statements and notes thereto requires management to make estimates and assumptions that affect the amounts and disclosures reported within those financial statements. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, contingencies, litigation and income taxes. Management bases its estimates and judgments on historical experiences and on various other factors believed to be reasonable under the circumstances. Actual results under circumstances and conditions different than those assumed could result in differences from the estimated amounts in the financial statements. There have been no material changes to these policies during the year ended December 31, 2021.





Revenue Recognition

Revenue is recognized when persuasive evidence of an agreement exists, the price is fixed or determinable, goods are delivered, or services performed and collectability is reasonably assured.





Going concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flow from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management's plans in regards to this matter include raising additional equity financing and borrowing funds under a private credit facility and/or other credit sources.





Principals of Consolidation

The consolidated financial statements represent the results of DLT Resolution, Inc. and its wholly owned subsidiaries, DLT Resolution Corp., DLT Data Services; and Union Strategies, Inc. ("USI"), which is a discontinued operation.) All intercompany transactions and balances have been eliminated.





Plan of Operations

Liquidity and Capital Resources. As of December 31, 2021, we had $33,862 of cash on hand and total liabilities of $1,228,181. We must secure additional funds in order to continue our business. We were required to secure a loan to pay expenses relating to filing this report including legal, accounting and filing fees and will be required to secure additional financing to fund future filings. Furthermore, there is no guarantee we will receive the required financing to complete our business strategies; we cannot provide any assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. If we are unable to accomplish raising adequate funds then it would be likely that any investment made into the Company would be lost in its entirety.

Results of Operations. Total revenues were $391,963 and $403,919 in 2021 and 2020, respectively, with the decrease attributable to the deterioration in market conditions due to the COVID-19 pandemic. Total operating expenses were $536,364 for the year ended December 31, 2021 compared to $758,014 during the year ended December 31, 2020. The decrease in operating expenses relates to a reduction in our business attributable to the deterioration in market conditions due to the COVID-19 pandemic.






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Other Expense: Other Expense totaled $2,378 during the year ended December 31, 2021 compared to ($7,342) during the year ended December 31, 2020. For 2021, Other Expense consists primarily of interest expense.

Loss from Discontinued Operations: In 2022, we suspended operations of USI and in 2023 we sold our 100% ownership of USI. Loss from discontinued operations was $2,282,447 for the year ended December 31, 2021 compared to $142,490 for the year ended December 31, 2020. The increase in loss is attributed to writedowns of USI intangible assets and its receivables.

Off-Balance Sheet Arrangements. We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Contractual Obligations. None

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