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, hemp and ancillary cannabis services. 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



We are a company whose core subsidiaries include solar and hemp. We built our portfolio by acquiring undervalued companies, providing a rich, diversified holding base. The Company looks to acquire businesses and build brands based on technology solutions we believe will increase efficiencies across various markets.





Critical Accounting Policies



Our significant accounting policies are more fully described in the notes to our financial statements included herein for the period ended June 30, 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 June 30, 2020.





Results of Operations



Financial Condition and Changes in Financial Condition





Overall Operating Results:


Comparison of the Three Months Ended June 30, 2020 with the Three Months Ended June 30, 2019

Revenue. For the three months ended June 30, 2020, we generated revenues of $395,277 as compared to $856,859 for the three months ended June 30, 2019. The decrease of revenue was due primarily to the sale of hemp products the Company executed to a distributor of approximately $447,000 in the three months ended June 30, 2019.

Cost of Revenues. For the three months ended June 30, 2020 cost of revenue decreased to $290,594 from $440,946 for the three months ended June 30, 2019. The decrease was mainly due to the decrease in revenue for the three months ended June 30, 2020 compared to the three months ended June 30, 2019.

Consulting fees. For the three months ended June 30, 2020, consulting fees decreased to $36,921 from $94,059 for the three months ended June 30, 2019, primarily due to reduced utilization of consultants during the three months ended June 30, 2020.

Investor Relations. For the three months ended June 30, 2020, investor relations expense decreased to $19,368 from $35,788 for the three months ended June 30, 2019, primarily as a result of decreased use of investor relation services during the three months ended June 30, 2020.

General and Administrative Expenses. Our general and administrative expenses decreased to $689,557 for the three months ended June 30, 2020 from $3,971,594 for the three months ended June 30, 2019. The decrease was primarily a result of preferred stock issued to officers totaling $3,100,000 during the three months ended June 30, 2019, with no preferred stock issued for services during the three months ended June 30, 2020.

Other Income (Expense). For the three months ended June 30, 2020, other expense was $441,630, compared to other expense of $3,812,660 for the three months ended June 30, 2019. The decrease in other expense was primarily due to the gain on change in fair value of derivative liability of $291,634 recognized in the three months ended June 30, 2020 compared to the loss on change in fair value of derivative liability of $2,984,286 recognized during the three months ended June 30, 2019.






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Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders was $1,025,790 compared to $7,418,493 for the three months ended June 30, 2020 and 2019, respectively. The decrease in net loss was mainly due to the decrease in general and administrative expenses and other expense.

Comparison of the Six Months Ended June 30, 2020 with the Six Months Ended June 30, 2019

Revenue. For the six months ended June 30, 2020, we generated revenues of $1,470,499 as compared to $1,119,749 for the six months ended June 30, 2019. The increase of revenue was due primarily to the integration of SDS acquired in May 2019.

Cost of Revenues. For the six months ended June 30, 2020, cost of revenue increased to $1,056,202 from $628,207 for the six months ended June 30, 2019. The increase was mainly due to the increase in revenue from SDS acquired in May 2019.

Consulting fees. For the six months ended June 30, 2020, consulting fees increased to $173,937 from $161,501 for the six months ended June 30, 2019, primarily due to increased utilization of consultants during the six months ended June 30, 2020.

Professional and Legal Fees. For the six months ended June 30, 2020, professional and legal fees increased to $171,614 from $151,977 for the six months ended June 30, 2019, primarily due to work related to our Registration Statement provided during the six months ended June 30, 2020.

Investor Relations. For the six months ended June 30, 2020, investor relations expense decreased to $63,152 from $148,227 for the six months ended June 30, 2019, primarily as a result of decreased use of investor relations consultants.

General and Administrative Expenses. Our general and administrative expenses decreased to $1,380,529 for the six months ended June 30, 2020 from $4,266,619 for the six months ended June 30, 2019. The decrease was primarily a result of preferred stock issued to officers totaling $3,100,000 during the six months ended June 30, 2019, with no preferred stock issued for services during the six months ended June 30, 2020.

Other Income (Expense). For the six months ended June 30, 2020, other expense was $1,767,446, compared to other expense of $4,576,231 for the six months ended June 30, 2019. The decrease in other expense was primarily due to the $3,601,269 loss on change in fair value of derivative liability incurred during the six months ended June 30, 2019.

Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders was $2,946,221 and $8,685,846 for the six months ended June 30, 2020 and 2019, respectively. The decrease in net loss was mainly due to the decrease in general and administrative expenses, as well as the $3,601,269 loss on change in fair value of derivative liability incurred during the six months ended June 30, 2019.

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 $76,476 in cash as of June 30, 2020. The Company has negative working capital of approximately $9 million, and total stockholders' deficit of approximately $7 million as of June 30, 2020. As of June 30, 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 $918,429 for the six months ended June 30, 2020 primarily as a result of our net loss attributable to Singlepoint Inc stockholders of $2,946,221, offset partially by non-cash amortization of debt discounts of $1,079,374 and loss on change in fair value of derivatives of $417,298. Net cash used in operating activities for the six months ended June 30, 2019 was $950,047, primarily as a result our net loss attributable to Singlepoint Inc stockholders of $8,685,846, partially offset by non-cash amortization of debt discounts of $792,030, loss on change in fair value of derivatives of $3,601,269, and preferred stock issued for services of $3,100,000.






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Investing Activities


Cash flow used in investing activities - The Company received cash of $25,000 for the return of an investment during the six months ended June 30, 2020. The Company used cash of $100,000 towards the acquisition of SDS during the six months ended June 30, 2019.





Financing Activities


Cash flow from financing activities - During the six months ended June 30, 2020, our financing activities provided cash of $859,777 primarily from proceeds from advances from related party of $260,000, proceeds from short-term notes payable of $332,737 and proceeds from the issuance of convertible notes of $320,500. During the six months ended June 30, 2019, our financing activities provided cash of $1,066,980 primarily from proceeds from advances from related party of $123,445 and proceeds from the issuance of convertible notes of $1,000,000.

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 June 30, 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.

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