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    RIII   US7599581011

RENAVOTIO, INC.

(RIII)
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RENAVOTIO : Management's Discussion and Analysis of Financial Condition or Plan of Operation (form 10-Q)

08/09/2021 | 07:56am EDT

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

Unless otherwise specified in this quarterly report, all dollar amounts are expressed in United States dollars and all references to "common stock" refer to shares of our common stock.

As used in this quarterly report, the terms "we", "us", "our" and "our company" mean Success Entertainment Group International Inc., unless otherwise indicated.



                             COVID-19 RELATED RISKS


The outbreak of the coronavirus may negatively impact sourcing and manufacturing of the products that we sell as well as consumer spending, which could adversely affect our business, results of operations and financial condition.

In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which has and is continuing to spread throughout China and other parts of the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a "Public Health Emergency of International Concern." On January 31, 2020, U.S. Health and Human Services Secretary Alex M. Azar II declared a public health emergency for the United States to aid the U.S. healthcare community in responding to COVID-19, and on March 11, 2020 the World Health Organization characterized the outbreak as a "pandemic". The significant outbreak of COVID-19 has resulted in a widespread health crisis that could adversely affect the economies and financial markets worldwide, and could adversely affect our business, results of operations and financial condition.

The outbreak of the COVID-19 may adversely affect our supply chain.

The worldwide outbreak of Covid-19 us could adversely affect our business, results of operations and financial condition. The coronavirus outbreak may materially impact sourcing and manufacturing of our personal protection equipment products that are manufactured in other countries and materials for our products that are sourced in other countries by overseas manufacturers and in other affected regions. Travel within and into other overseas countries may be restricted, which may impact our manufacturers' ability to obtain necessary materials and inhibit travel of manufacturers and material suppliers. Additionally, there are potential factory closures, inability to obtain materials, disruptions in the supply chain and potential disruption of transportation of goods produced other countries adversely impacted by the coronavirus outbreak, or threat or perceived threat of such outbreak. As a result, we may be unable to obtain adequate inventory from sources from these regions, which could adversely affect our business, results of operations and financial condition.




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The outbreak of the COVID-19 may adversely affect our customers.

Further, such risks as described above could also adversely affect our customers' financial condition, resulting in reduced spending for the merchandise we sell. Risks related to an epidemic, pandemic, or other health crisis, such as COVID-19, could also lead to the complete or partial closure of one or more of our facilities or operations of our sourcing partners. The ultimate extent of the impact of any epidemic, pandemic or other health crisis on our business, financial condition and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of such epidemic, pandemic or other health crisis and actions taken to contain or prevent their further spread, among others. These and other potential impacts of an epidemic, pandemic, or other health crisis, such as COVID-19, could therefore materially and adversely affect our business, financial condition, and results of operations.

The COVID-19 Pandemic poses threats to manufacturing capacity and temporary disruption of operations.

Some customers, distributors, and end users alike, are stockpiling product and placing orders to assure a continued supply of garments and personal protective equipment through the duration of the COVID-19 Pandemic. The ability of our industry to ramp up production to meet demand, and how long the pandemic lasts, will have a direct impact on the amount of inventory remaining in distribution channels once the pandemic subsides. This factor, coupled with the possibility of economic recession, could have a deleterious impact on sales for a significant period that could negatively impact our revenues and our third-party manufacturing efficiencies. Our ability to increase market penetration is predicated upon our continued ability to sub-manufacturer at a sufficient capacity, however, there can be no guarantees that the sub- manufacturing will not be negatively impacted by the pandemic or government responses to it. Additionally, there is a risk that government responses to thwart the spread of the virus, in the form of local or regional quarantine or shelter-in-place orders, could require temporary curtailment of manufacturing operations of our manufacturers, or prevent the export of our products from the country of origin. In such cases, our inability to deliver product would negatively impact sales.



Corporate History


We were incorporated in the State of Nevada on January 30, 2013, our inception, under the name, Altimo Group Corp., initially to engage in the sale of frozen yogurt machines.

In 2014, Marek Tomaszewski, the Company's then majority shareholder, issued and sold 8,000,000 shares of its common stock, representing 77% of its outstanding common shares, to Success Holding Group Corp. USA, a Nevada corporation. In 2014, we changed our name to "Success Entertainment Group International Inc.", and the Company shifted its focus to the production and development of internet videos and training videos.



Current Business


Our operations have been restructured under our new name Renavotio, Inc., a holding company focused on infrastructure opportunities, including Medical Infrastructure, which includes Personal Protection Equipment sales and manufacturing, 5G, utility construction, utility management, IoT, water, waste management technology, and related industries. RII initial acquisition targets are infrastructure companies with Personal Protection Equipment sales and manufacturing, utility construction, consulting/operational agreements with small towns or county CO-OPS that operate their own water and sewer systems, providing long-term savings, utilizing smart-utility monitoring, and dedicated engineering and service personnel. These platforms capture utility data from hand-held GPS devices or in-place sensors, with planned use of drones to identify waste contamination, leak detection, and topographic underground utility installation planning.




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We operate the following infrastructure and medical platforms through e-commerce, platform sharing; and database-membership:



  · Fiber optics and 5G installation
  · Utility management
  · Medical technology
  · PPE infrastructure products
  · Underground utility construction



Our operations are conducted through:



    ·   Renavotio Infratech, Inc. ("RII"), a Delaware Corporation and its
        subsidiaries:
    ·   Utility Management Corp ("Utility Management") and its two Subsidiaries,
        Utility Management & Construction, LLC and Cross-Bo Construction, LLC



Renavotio Infratech, Inc. (RII)

RII's sells personal protective equipment (medical gloves, face masks, face shields, medical gowns). RII has purchased these products from overseas manufacturers; however, due to price gouging and speculation pertaining to the Pandemic related market, RII seeks to develop relationships and agreements with manufacturers in the US to provide fixed price agreements to hospitals, medical distributors, and government agencies. There are no assurances that RII will be successful in securing agreements with US manufacturers.



Utility Management Corp


Utility Management offers thru its subsidiaries the following:



  · Management and operation of water utility systems
  · Water and waste management technology
  · IoT
  · Underground infrastructure, construction, and installation
  · 5G technology solutions .



Utility Management & Construction LLC (Utility Management Subsidiary) ("UMCCO")

UMCCO is an engineering and smart utility management company that provides a one-stop solution for rural communities to reduce the consumption of electricity, natural gas, and water utilities for commercial, industrial, and municipal end users. UMCCO's unique approach creates immediate bottom line savings for clients, by providing the engineering, planning, permitting, and installation through their second wholly-owned subsidiary, Cross-Bo Construction ("Cross-Bo"), an Oklahoma limited liability company, specializing in water, sewer, Telcom, and 5G design and installation, establishing a long-term value proposition while also achieving respective sustainability goals

UMCCO also provides consulting and operational services to small towns or county CO-OPS that operate their own water and sewer systems to provide long-term savings, utilizing smart-utility monitoring and dedicated engineering and service personnel. These utility related platforms capture utility data from handheld GPS devices or in-place sensors, with planned use of drones to identify waste contamination, leak detection, and topographic underground utility installation planning. As a community-based management company based in Oklahoma, it specializes in the management and operation of small utility systems (Rural Waters Systems or Public Trusts or Authority), including record keeping, reporting , budgeting, customer correspondence, billing, and engineering. provides water-systems management. Utility Management provides services to over 1200 customers in the Northeast Oklahoma and Southeast Kansas area and intends to expand into other areas of the Midwest.




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UMCCO provides geographic information system ("GIS") solutions, infrastructure management and "smart city" infrastructure technology to construction, environmental consulting, utility, and government clients in the United States. (A "smart city" is an urban area that uses different types of electronic Internet of Things ("IoT") sensors to collect data and them to manage assets and resources efficiently.)



    ·   The Utility platforms enables local and distributed teams to do field data
        collection using mobile devices (iOS and Android) and manage all
        geospatial data using a web interface; and
    ·   The Utility Platforms are a collection of components and application
        program interfaces (APIs) that make it easy to create a full, custom
        mapping solution very quickly. These components enable extensive and
        intensive data analysis, routing, and dissemination of geospatial
        information.



UMCCO has licensed products that use of georeferenced imagery and vector datasets to obtain insights about that data. They can be used for field asset management, cadaster mapping, urban planning, the analysis of aerial and satellite imagery and other typical GIS use cases. These solutions are currently used across a variety of sectors, including utilities, intelligence, materials (mining), industrial (transportation), government (local, state, national and international) and others. In addition, UMCCO has been using this software user for more than three years, these solutions to help map and visualize the locations of subsurface as-built conditions. Going forward, UMCCO expects to expand its use of these solutions to locate and map underground telecoms infrastructure. We intend to invest in research and development to increase the functionality of this technology, including incorporating active IoT sensor monitoring and network-connected sensor products that can help create a comprehensive "smart infrastructure" solution for clients. We intend to pursue commercialization of these solutions through investment in product, sales, and business development, and to integrate these platforms into our Infrastructure Services business.

UMCCO's solutions leverage cloud technology and a mobile-first approach to data acquisition and geo-analytics. The solutions are a set of cloud-based tools to collect, visualize and analyze geographic information. With the UMCCO solutions, a field crew can collect and update data using iOS and Android smartphones and tablets working online or offline. The web interface enables its users to display, analyze and share data easily. Incorporating these solutions allows organizations to streamline mapping workflows and reduce repetitive mapping workflows. On occasions where the customer has a pre-existing GIS or computer-aided design (CAD) system, APIs and plug-ins enable easy integration with them.

Cross-Bo Construction, LLC (Utility Management Subsidiary) ("Cross Bo")

Cross-Bo operates in Oklahoma, Kansas, and Missouri and provides services on infrastructure projects, specializing in Utility System installation and maintenance, which includes providing the hard assets and expertise to install pipelines for water, wastewater, storm water and gas systems up to thirty-six ("36") inches in diameter. Cross Bo's Hydrovac excavators, drilling, and heavy excavating equipment enables it to compete in the municipal utility bidding market for installation of water, wastewater, storm water, and gas system construction and installation. Cross-Bo has expertise in the installation of HDPE, PVC, and Ductile Piping Systems.

Additionally, Cross-Bo operates as a subsurface utility engineering (referred to in the industry as "SUE") location, inspection and maintenance company, and has developed methodologies, combined with the use of its equipment, to generate detailed records of subsurface "as-built conditions", such as the location of water, electrical, gas, fiber optic and other critical underground utility infrastructure assets. These services enable construction and maintenance activities to be conducted on a given physical site with the precision needed to limit damage to underground utility infrastructure and to avoid utility outages.




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Our Future Plans


We plan to expand our business and service offerings, as follows:



    ·   Expand our Infrastructure Services , developing relationships with
        municipalities, utilities, and construction companies.
    ·   Through Cross-Bo, should it be successful in is planned rollout of 5G
        mobile telecommunications services, develop and market those 5G services
        through an expanded geographic area, initially into Kansas and Missouri.
    ·   Capitalize on infrastructure expansion project in Tulsa, Oklahoma.
    ·   Capitalize on ATT's 5G expansion in the Midwest to provide support
        Infrastructure Services.
    ·   Acquire private companies in the Infrastructure Services area.
    ·   Seek strategic partnerships and/or revenue sharing opportunities in the
        niche infrastructure technology solutions area.



Our acquisitions strategy intends to focus on post-transaction integration and business improvements, including through cross-selling opportunities and the leveraging of operational efficiencies through a central platform of finance, legal and human resources capabilities.

These solutions will enable our Infrastructure Services business to develop and commercialize new services and products. We intend to continue to invest in the development of additional platform capabilities, including capabilities relating to smart IoT sensors and to help create niche "smart infrastructure" solutions for clients.

The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the periods described and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on our unaudited financial statements contained in this Form 10-Q, which we have prepared in accordance with United States generally accepted accounting principles. You should read this discussion and analysis together with such financial statements and the related notes thereto.




Basis of Presentation



The audited financial statements for our fiscal years ended December 31, 2020, and 2019, and the unaudited financial statements for the three and six months ended June 30, 2021, and 2020, include a summary of our significant accounting policies and should be read in conjunction with the discussion below. In the opinion of management, all material adjustments necessary to present fairly the results of operations for such periods have been included in these unaudited financial statements. All such adjustments are of a normal recurring nature.



Going Concern


The accompanying consolidated financial statements have been prepared assuming we will continue as a going concern. During the years ended December 31, 2020 and 2019, the Company had a net loss of approximately $1,753,000 and $1,450,000, respectively. For the six months ended June 30, 2021, the Company had a net loss of approximately $462,000. These factors raise substantial doubt about the Company's ability to continue to operate as a going concern for the next twelve months.

Our ability to continue as a going concern is dependent upon our generating operating cash flow and raising capital sufficient to fund operations. We have discussed our strategy and plans relating to these matters elsewhere in this report although the consolidated financial statements included herein do not include any adjustments that might result from the outcome of these uncertainties. Our business strategy may not be successful in addressing these issues, however, and if we cannot continue as a going concern, our stockholders may lose their entire investment in us.




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Liquidity and Capital Resources

As of June 30, 2021, we had current assets of $2,061,701, consisting of cash of $136,381, accounts receivable, net of allowance, of $190,459, inventory of $335,754, prepaid expenses of $1,059,670, $943,000 of which represent inventory purchases that have been billed by the vendor but are pending delivery, $116,670 representing prepaid services, and other current assets of $339,437.

As of December 31, 2020, we had current assets of $626,161, consisting of cash of $113,798, accounts receivable, net of allowance, of $130,301, inventory of $232,344, and other current assets of $149,718.

As of June 30, 2021, we had current liabilities of $1,115,703, consisting of accounts payable of $155,534, accrued expenses of $85,057, customer deposits for purchases of $265,500, convertible notes payable, net of discounts, of $181,601, and current portion of notes payable, net of discounts, of $428,011.

As of December 31, 2020, we had current liabilities of $1,372,380, consisting of accounts payable of $75,586, accrued expenses of $71,695, convertible notes payable, net of discounts, of $500,189, and current portion of notes payable of $724,910.

We have funded our operations to date through the issuance of notes payable and stock.

Our ability to successfully execute our business plan is contingent upon us obtaining additional financing and/or upon realizing revenues sufficient to fund our ongoing expenses. Until we are able to sustain our ongoing operations through sales revenue, we intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.

Recently Issued Accounting Pronouncements

Our management has considered all recent accounting pronouncements issued since the last audit of our financial statements. Our management believes that these recent pronouncements will not have a material effect on our financial statements.




Critical Accounting Policies



The SEC has requested that all registrants list their most "critical accounting polices" in the Management Discussion and Analysis. The SEC indicated that a "critical accounting policy" is one which is both important to the portrayal of a company's financial condition and results, and requires management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We do not believe that the following accounting policies currently fit this definition.




Basis of Presentation



The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.




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Use of Estimates


The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.



Cash and Cash Equivalents


For purposes of reporting cash flows, the Company has defined cash and cash equivalents as all cash in banks and highly-liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. The Company had no cash equivalents at June 30, 2021 and December 31, 2020.

The Company maintains its cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC"). The FDIC provides coverage of up to $250,000 per depositor, per financial institution, for the aggregate total of depositors' interest and non-interest-bearing accounts. At June 30, 2021, none of the Company's cash balances were in excess of FDIC limits. The Company has not experienced any losses on these accounts and management does not believe that the Company is exposed to any significant risks.




Accounts Receivable



Utility Management and Construction, LLC's (UMCCO) accounts receivable are the result of contracts which require monthly billings for services, installations and maintenance provided by the Company up to the respective monthly billing date. Cross-Bo Construction, LLC's (Cross-Bo) accounts receivable are the result of construction activity, consisting of utility system installation, provided by the Company up to the respective billing date. Accounts receivable is recorded at the invoiced amount and do not bear interest.

Some billed balances are not paid by customers pursuant to retainage provisions within their respective contracts. The balances billed but not paid by customer pursuant to retainage provisions in these contracts are generally due and paid upon completion of the contracts and acceptance by the customer. Based on contract terms and historical collections, the Company expects the retainage balances to be collected within 12 months of the balance sheet date.

The allowance for doubtful accounts is the Company's best estimate of the probable amount of credit losses in the Company's existing accounts receivable. A considerable amount of judgment is required in assessing the realization of receivables. Relevant assessment factors include the creditworthiness of the customer and prior collection history. Balances over 90 days past due are reviewed individually for collectability. Account balances are charged off against the allowance after all reasonable means of collection are exhausted and the potential for recovery is considered remote. The allowance requirements are based on the most current facts available and are re-evaluated and adjusted on a regular basis and as additional information is received. During the three and six months ended June 30, 2021, the Company recorded no bad debt expense. The $328,118 included in the allowance at June 30, 2021 include billed and earned balances which remain unpaid by customers.




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Inventory


Inventory is composed of finished goods inventory, specifically personal protective equipment, valued using weighted average cost, and includes acquisition cost, product freight in, and packaging costs. Slow moving and obsolete inventories are written down based on a comparison of on-hand quantities to historical and projected usages. The Company utilizes a third-party service to manage and secure the Company's inventory.



Property and Equipment


Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to operations as incurred. Depreciation is based on the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in operations in the period realized.




Depreciation is computed on the straight-line method with useful lives as
follows:



Buildings and improvements     15-39 years
Machinery and equipment        7 years
Vehicles                       5 years
Office furniture and equipment 5 years
Software                       3 years



Recoverability of Long-Lived Assets

The Company reviews its long-lived assets on a periodic basis, whenever events and changes in circumstances have occurred which may indicate a possible impairment. The assessment for potential impairment will be based primarily on the Company's ability to recover the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Fixed assets to be disposed of by sale will be carried at the lower of the then current carrying value or fair value less estimated costs to sell.



Commitments and Contingencies


Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when management assesses that it is probably that a liability has been incurred and the amount can be reasonable estimated.




Income Taxes



The Company accounts for income taxes utilizing the liability method of accounting. Under the liability method, deferred taxes are determined based on differences between financial statement and tax bases of assets and liabilities at enacted tax rates in effect in years in which differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts that are expected to be realized.




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The Company follows Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740-10, "Accounting for Uncertainty in Income Taxes." This interpretation requires recognition and measurement of uncertain income tax positions using a "more-likely-than-not" approach. The Company evaluates its tax positions on an annual basis, and as of December 31, 2020, no additional accrual for income taxes is necessary. The Company's policy is to recognize both interest and penalties related to unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest or penalties since its inception. The Company is required to file income tax returns in the U.S. federal tax jurisdiction and in various state tax jurisdictions and the prior three fiscal years remain open for examination by federal and/or state tax jurisdictions. The Company is currently not under examination by any other tax jurisdictions for any tax year.



Revenue Recognition


UMCCO recognizes consulting and operational management service revenues monthly and recognizes maintenance and repair revenues as services are performed.

Cross-Bo and UMCCO recognize construction revenues, which result from utility system installations, monthly as services are performed and materials are used.

Renavotio Infratech, Inc. (Infratech) recognizes revenues from the sale of personal protective equipment when performance obligations are satisfied, which occurs when materials are shipped to the customer.

Renavotio, Inc. (Renavotio) recognizes revenues from training seminars upon completion of the training seminar when services have been provided.

The Company's contracts require monthly billings consisting of services performed and materials used through the billing date. Accordingly, the Company does not incur expenses which are not billed or bill customers for unearned amounts. Performance obligations are satisfied as services are performed and materials used for which control has been transferred to the customer upon installation. At June 30, 2021 and December 31, 2020, the Company had no unsatisfied performance obligations.

Components of Results of Operations



Revenues


UMCCO recognizes consulting and operational management service revenues monthly and recognizes maintenance and repair revenues as services are performed.

Cross-Bo and UMCCO recognize construction revenues, which result from utility system installations, monthly as services are performed and materials are used.

Infratech recognizes revenues from the sale of personal protective equipment when performance obligations are satisfied, which occurs when materials are shipped to the customer.

Renavotio recognizes revenues from training seminars upon completion of the training seminar when services have been provided.




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Cost of Revenues


Our cost of revenues consists primarily of payroll for revenue generating operations, cost of materials, contract labor and rented equipment.



General and Administrative


Our general and administrative expenses consist primarily of payroll for our administrative employees, outside consulting, legal and accounting services, insurance, facilities, and other supporting overhead costs.



Results of Operations


The results of our consolidated operations are summarized as follows:



                               Three Months Ended June 30,
                                  2021                2020

Revenues                     $     2,209,052       $        -
Cost of revenues                   1,593,856                -
Gross profit                         615,196                -

Expenses
General and administrative           607,611          155,385
Depreciation                          24,715                -
Other (income) expense               128,683                -
Provision for income taxes                 -                -
                                     761,009          155,385
Net loss                     $      (145,813 )     $ (155,385 )




                               Six Months Ended June 30,
                                  2021              2020

Revenues                     $    2,579,688      $        -
Cost of revenues                  1,818,842               -
Gross profit                        760,846               -

Expenses
General and administrative        1,118,623         254,659
Depreciation                        183,733               -
Other (income) expense              (79,447 )             -
Provision for income taxes                -               -
                                  1,222,909         254,659
Net loss                     $     (462,063 )    $ (254,659 )





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Revenues


The following table summarizes our historical revenues:



                       Three months ended June 30,             Six months ended June 30,
                          2021              2020                 2021                  2020
Personal Protective
Equipment             $  1,806,000       $         -     $          1,825,494       $        -
Management                 222,879                 -                  466,881                -
Repair &
Maintenance                180,173                 -                  287,313                -
                      $  2,209,052       $         -     $          2,579,688       $        -

                       Three months ended June 30,              Six months ended June 30,
                          2021              2020                 2021                  2020
Personal Protective                           *                                         *
Equipment                     81.8 %                                     70.8 %
Management                    10.1 %          *                          18.1 %         *
Repair &                                      *                                         *
Maintenance                    8.2 %                                     11.1 %



The shift and increase in revenues were due to the acquisition of Infratech and UMC during the second half of 2020.



Cost of Revenues


Cost of revenues increased from 2020 to 2021 due to the acquisition of Infratech and Utility Management Corp. (UMC) during the second half of 2020. Cost of revenues for the three months ended June 30, 2021 and 2020 were $1,593,856, and $-0-, respectively. Cost of revenues as a percentage of revenues for the three months ended June 30, 2021 and 2020 were 72%, and 0%, respectively. Cost of revenues for the six months ended June 30, 2021 and 2020 were $1,818,842, and $-0-, respectively. Cost of revenues as a percentage of revenues for the six months ended June 30, 2021 and 2020 were 71%, and 0%, respectively.



General and Administrative


General and administrative expenses increased from 2020 to 2021 due to the acquisition of Infratech and UMC during the second half of 2020. General and administrative expenses for the three months ended June 30, 2021 and 2020 were $607,611, and $155,385, respectively, representing an increase of $452,226. The increase is due to the expansion of our operations through acquisitions. General and administrative expenses as a percentage of revenues for the three months ended June 30, 2021 and 2020 were 28%, and 100%, respectively. General and administrative expenses for the six months ended June 30, 2021 and 2020 were $1,118,623, and $254,659, respectively, representing an increase of $863,964. The increase is due to the expansion of our operations through acquisitions. General and administrative expenses as a percentage of revenues for the six months ended June 30, 2021 and 2020 were 43%, and 100%, respectively.



Depreciation


During the three and six months ended June 30, 2021, the Company incurred $24,715 and $183,733, respectively, in depreciation expenses on the assets acquired as part of the UMC acquisition during the second half of 2020.




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Other Income


During the six months ended June 30, 2021, the Company had other income totaling $353,967 from relief payments made under the CARES Act for principal and interest on SBA notes payable.



Other Expense


During the three months ended June 30, 2021, the Company incurred $108,593 in interest expenses and $20,090 in expenses related to its debt obligations. During the six months ended June 30, 2021, the Company incurred $204,430 in interest expenses and $70,090 in expenses related to its debt obligations.

Off-Balance Sheet Arrangements

As of June 30, 2021 and December 31, 2020, there were no off-balance sheet arrangements (as that term is defined in Item 303(a)(4)(ii) of Regulation S-K) 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.

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Financials (USD)
Sales 2020 4,12 M - -
Net income 2020 -1,75 M - -
Net Debt 2020 3,71 M - -
P/E ratio 2020 -2,15x
Yield 2020 -
Capitalization 6,37 M 6,37 M -
EV / Sales 2019 968x
EV / Sales 2020 2,05x
Nbr of Employees 36
Free-Float 63,1%
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Renavotio, Inc. Technical Analysis Chart | MarketScreener
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Income Statement Evolution
Managers and Directors
William Robinson Chairman, President, CEO, CFO & Secretary
Jake Shih Chief Technology Officer
Robert Josephy MacKey Chief Operating Officer & Director
Steve Andrew Chen Director
Brian K. Kistler Director
Sector and Competitors