Overview
Singlepoint Inc. (hereinafter the "Company", "Our", "We" or "Us") is a
technology and acquisition company with a focus on acquiring companies that will
benefit from the injection of growth capital and technology integration. Our
portfolio companies include solar installation, mobile payments, ancillary
cannabis services and blockchain solutions. We built our portfolio by acquiring
an interest in undervalued companies, thereby providing a rich, diversified
holding base. We acquire and work with key company management to grow successful
candidate companies.
Plan of Operation
Our portfolio companies include solar installations, mobile payments, ancillary
cannabis services and blockchain solutions. We have developed and released
applications mainly in the mobile payments market. The Company has been able to
place and develop programs directed towards providing business efficiencies to
underserved markets such as the cannabis businesses. The Company has acquired a
majority interest in companies as well as invested in others for equity.
Critical Accounting Policies
Our significant accounting policies are more fully described in the notes to our
financial statements included herein for the period ended March 31, 2020.
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 March
31, 2020.
Results of Operations
Financial Condition and Changes in Financial Condition
Overall Operating Results:
Comparison of the Three Months Ended March 31, 2020 with the Three Months Ended
March 31, 2019
Revenue. For the three months ended March 31, 2020, we generated revenues of
$1,075,222 as compared to $262,890 for the three months ended March 31, 2019.
The increase of revenue was due primarily to the integration of our SDS
subsidiary acquired in May of 2019.
Cost of Revenues. For the three months ended March 31, 2020 cost of revenue
increased to $765,608 from $187,261 for the three months ended March 31, 2019.
The increase was mainly due to the integration of our SDS subsidiary acquired in
May of 2019.
Consulting fees. For the three months ended March 31, 2020, consulting fees
increased to $137,016 from $67,442 for the three months ended March 31, 2019,
primarily due to the issuance of stock issued for services of $118,000 during
the three months ended March 31, 2020.
Investor Relations. For the three months ended March 31, 2020, investor
relations expense decreased to $43,784 from $112,439 for the three months ended
March 31, 2019, primarily as a result of decreased use of investor relations
services.
General and Administrative Expenses. Our general and administrative expenses
increased to $690,972 for the three months ended March 31, 2020 from $295,025
for the three months ended March 31, 2019. The increase was primarily a result
of the integration of our SDS subsidiary acquired in May of 2019.
Other Income (Expense).
For the three months ended March 31, 2020, other expense was $1,325,816,
compared to other expense of $763,571 for the three months ended March 31, 2019.
The increase in other expense was primarily due an increase in interest expense
and amortization of debt discounts as a result of an increase in convertible
notes payable.
Net Loss. The Company's net loss attributable to Singlepoint stockholders was
$1,920,431 compared to $1,267,353 for the three months ended March 31, 2020 and
2019, respectively. The increase in net loss was mainly due to an increase in
general and administrative expenses as a result of the integration of our SDS
subsidiary acquired in May of 2019, as well as an increase in interest and
amortization expense as a result of increased notes payable.
21
Table of Contents
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 $222,579 in cash as of March 31, 2020. The Company has negative
working capital of approximately $8 million, and total stockholders' deficit of
approximately $6 million as of March 31, 2020. As of March 31, 2020, 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 $395,971 for the three months ended March 31, 2020 primarily as a result of
our net loss attributable to Singlepoint stockholders of $1,837,279, partially
offset by non-cash debt discount amortization expense of $448,290, shares of
common stock issued for services of $118,000, a non-cash loss of $708,932
related to loss on change in fair value of derivatives and an increase in
accrued expenses of $201,933. Net cash used in operating activities for the
three months ended March 31, 2019 was $458,977, primarily as a result of our net
loss attributable to Singlepoint shareholders of $1,267,353, partially offset by
non-cash debt discount amortization expense of $73,394, loss on change in fair
value of derivatives of $616,983, and an increase in accrued expenses of
$168,622.
Investing Activities
Cash flow used in investing activities - There was no cash used or provided by
investing activities for the three months ended March 31, 2020 or 2019.
Financing Activities
Cash flow from financing activities - During the three months ended March 31,
2020, our financing activities provided cash of $508,422 primarily from proceeds
from advances from related party of $226,800 and proceeds from the issuance of
convertible notes of $320,500. During the three months ended March 31, 2019, our
financing activities provided cash of $773,445 from proceeds from advances from
related party of $23,445 and proceeds from the issuance of convertible notes of
$750,000.
22
Table of Contents
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 is material to
investors.
Recent Accounting Pronouncements
During the three months ended March 31, 2020, 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.
© Edgar Online, source Glimpses
SINGLEPOINT INC. 
