Overview

We are a company focused on providing renewable energy solutions and energy-efficient applications to drive the highest quality healthy living. Our current core subsidiaries specialize in solar energy and air purification. We have built and continue to build our portfolio through synergistic acquisitions, strategic partnerships, and products to establish a diversified holding base. The Company's initial focus is on solar energy, and we are committed to building a foundation for future expansion opportunities. In addition to building brands based on technology solutions we believe will increase efficiencies across various markets, we strive to create long-term value for our shareholders by helping our partner companies to increase their market penetration, grow revenue and improve cash flow. To assist in our focus on healthy living, we intend to spin-off additional assets or non-core subsidiaries in the future.





Plan of Operation

Singlepoint operates through multiple core subsidiaries built around renewable energy, environmental sustainability, and overall healthy living. Our portfolio will continue to grow with the acquisition and scale of new and innovative companies. Through technology solutions that will increase efficiency, both inside and outside the home, we will continue expanding in the renewable energy market with a wholistic approach that includes solar, air purification, battery back-up and EV charging solutions.





Critical Accounting Policies

Our significant accounting policies are more fully described in the notes to our financial statements included herein for the period ended September 30, 2021.

New and Recently Adopted Accounting Pronouncements

Any new and recently adopted accounting pronouncements are more fully described in Note 2 to our financial statements included herein for the period ended September 30, 2021.





Results of Operations

Financial Condition and Changes in Financial Condition





Overall Operating Results:

Comparison of the Three Months Ended September 30, 2021 with the Three Months Ended September 30, 2020

Revenue. For the three months ended September 30, 2021, we generated revenues of $273,877 as compared to $1,025,129 for the three months ended September 30, 2020. The decrease of revenue was due primarily to lower solar revenues resulting from the implementation of a new business model.

Cost of Revenues. For the three months ended September 30, 2021 cost of revenue decreased to $217,923 from $796,459 for the three months ended September 30, 2020. The decrease was mainly due to the decrease in revenue for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

Consulting fees. For the three months ended September 30, 2021, consulting fees decreased to $8,101 from $75,477 for the three months ended September 30, 2020, primarily due to reduced utilization of consultants during the three months ended September 30, 2021.

Professional and legal fees. For the three months ended September 30, 2021, professional and legal fees increased to $496,230 from $75,732 for the three months ended September 30, 2020, primarily due to increased corporate and acquisition activities during the three months ended September 30, 2021.

Investor Relations. For the three months ended September 30, 2021, investor relations expense increased to $153,495 from $25,816 for the three months ended September 30, 2020, primarily as a result of increased use of investor relation services during the three months ended September 30, 2021.

General and Administrative Expenses. Our general and administrative expenses increased to $926,176 for the three months ended September 30, 2021 from $651,341 for the three months ended September 30, 2020. The increase was primarily due to increase overhead through acquisitions and employee growth.

Other Income (Expenses). For the three months ended September 30, 2021, other income was $264,058 compared to other expenses of $235,960 for the three months ended September 30, 2020. The decrease in other expenses was primarily due to $0 amortization of debt discounts for the three months ended September 30, 2021, compared to $710,314 in the same period a year ago. This was partially offset by warrant expense of $322,338 for three months ended September 30, 2021 compared to $0 in the same period a year ago, and the gain on settlement of debt for PPP loan forgiveness of $623,370 in the three months ended September 30, 2021 compared to no gain or loss recognized during the three months ended September 30, 2020.






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Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders was $1,409,427 compared to $763,445 for the three months ended September 30, 2021 and 2020, respectively. The increase in net loss was mainly due to the increase in general and administrative expenses and other operating expenses offset by loan forgiveness.

Comparison of the Nine Months Ended September 30, 2021 with the Nine Months Ended September 30, 2020

Revenue. For the nine months ended September 30, 2021, we generated revenues of $967,712 as compared to $2,495,628 for the nine months ended September 30, 2020. The decrease of revenue was due primarily to lower solar revenue.

Cost of Revenues. For the nine months ended September 30, 2021, cost of revenue decreased to $824,994 from $1,852,661 for the nine months ended September 30, 2020. The decrease was mainly due to the decrease in solar revenue.

Consulting fees. For the nine months ended September 30, 2021, consulting fees decreased to $136,976 from $249,414 for the nine months ended September 30, 2020, primarily due to decreased utilization of consultants during the nine months ended September 30, 2021.

Professional and Legal Fees. For the nine months ended September 30, 2021, professional and legal fees increased to $854,768 from $247,346 for the nine months ended September 30, 2020, primarily due to increased activity surrounding acquisitions and regulatory filings.

Investor Relations. For the nine months ended September 30, 2021, investor relations expense increased to $432,451 from $88,968 for the nine months ended September 30, 2020, primarily as a result of increased use of investor relations consultants.

General and Administrative Expenses. Our general and administrative expenses increased to $2,490,732 for the nine months ended September 30, 2021 from $2,031,870 for the nine months ended September 30, 2020. The increase was primarily a result of increased overhead from acquisitions and employee growth.

Other Income (Expense). For the nine months ended September 30, 2021, other income was $2,935, compared to other expenses of $2,003,406 for the nine months ended September 30, 2020. The decrease in other expenses was primarily due to the $1,789,688 amortization of debt discounts during the nine months ended September 30, 2020 and a gain on settlement of debt of $474,622 during the nine months ended September 30 2021.

Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders was $3,549,646 and $3,709,666 for the nine months ended September 30, 2021 and 2020, respectively. The decrease in net loss was mainly due to the decrease in debt discount amortization during the nine months ended September 30, 2021, partially offset by an increase in general and administrative expenses and gain on settlement of debt for the same period.

Liquidity and Capital Resources

We are an early-stage company and have generated insufficient revenue to date. We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

The Company had $865,815 in cash as of September 30, 2021. The Company had total stockholders' equity of approximately $99,271 as of September 30, 2021. As of September 30, 2021, the Company has yet to achieve profitable operations, and while the Company hopes to achieve profitable operations in the future, if not it may need to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's principal sources of liquidity have been cash provided by operating activities, as well as its ability to raise capital. The Company's operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to become profitable and continue growth for the foreseeable future. If management is not able to increase revenue and/or manage operating expenses, the Company may not be able to maintain profitability. The Company's ability to continue in existence is dependent on the Company's ability to achieve profitable operations.

To continue operations for the next 12 months we will have a cash need of approximately $2.5 million. Should we not be able to fulfill our cash needs through the increase of revenue we will need to raise money through outside investors through convertible notes, debt or similar instrument(s), including but not limited to the current outstanding convertible notes. Except as mentioned above, the Company has no committed external source of funds, and there is no guarantee we would be able to raise such funds. The Company plans to pay off current liabilities through sales and increasing revenue through sales of Company services and or products, or through financing activities as mentioned above.





Operating Activities

Cash flow used in operating activities - Net cash used in operating activities was $3,651,416 for the nine months ended September 30, 2021 primarily as a result of our net loss attributable to Singlepoint Inc stockholders of $3,551,166. Net cash used in operating activities for the nine months ended September 30, 2020 was $1,398,978 primarily as a result of our net loss attributable to Singlepoint Inc stockholders of $3,709,666, offset partially by non-cash amortization of debt discounts of $1,789,688 and accrued expenses of $648,042.






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Investing Activities

Cash flow used in investing activities - The Company paid $25,000 in expenses related to potential acquisitions and invested $16,702 in property, plant and equipment during the nine months ended September 30, 2021. The Company received cash of $25,000 for the return of an investment during the nine months ended September 30, 2020.





Financing Activities

Cash flow from financing activities - During the nine months ended September 30, 2021, our financing activities provided cash of $4,360,460 primarily from proceeds of issuance of common and preferred stock, in addition to proceeds from short-term and long-term notes payable. During the nine months ended September 30, 2020, our financing activities provided cash of $1,306,211 primarily from proceeds from advances from a related party of $355,000, proceeds from short-term notes payable of $332,737, and proceeds from the issuance of convertible notes of $320,500.

Off Balance Sheet Arrangements

We do not have any significant 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 are material to investors.

Recent Accounting Pronouncements

During the three months ended September 30, 2021, there were no accounting standards and interpretations issued which are expected to have a material impact on the Company's financial position, operations or cash flows.

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