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 September 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 September 30, 2020.





Results of Operations

Financial Condition and Changes in Financial Condition





Overall Operating Results:

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

Revenue. For the three months ended September 30, 2020, we generated revenues of $1,025,129 as compared to $1,050,374 for the three months ended September 30, 2019, which were consistent between periods.

Cost of Revenues. For the three months ended September 30, 2020 cost of revenue increased to $796,459 from $524,483 for the three months ended September 30, 2019. The increase was mainly due to reduced margins on services.

Consulting fees. For the three months ended September 30, 2020, consulting fees decreased to $75,477 from $367,599 for the three months ended September 30, 2019, primarily due to issuance of stock for consulting services of approximately $324,000 during the three months ended September 30, 2019. No such stock was issued during the three months ended September 30, 2020.

Investor Relations. For the three months ended September 30, 2020, investor relations expense increased to $25,816 from $2,000 for the three months ended September 30, 2019, primarily as a result of decreased use of investor relation services during the three months ended September 30, 2020.

General and Administrative Expenses. Our general and administrative expenses decreased to $651,341 for the three months ended September 30, 2020 from $753,229 for the three months ended September 30, 2019. The decrease was primarily a result of reduced sales and marketing costs.

Other Income (Expense). For the three months ended September 30, 2020, other expense was $235,960, compared to other income of $1,307,351 for the three months ended September 30, 2019. The decrease in other expense was primarily due to reduced amortization expense on debt discounts and an increase gain on change in fair value of derivative liability.






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Net Income (Loss). The Company's net loss attributable to Singlepoint Inc stockholders was $763,445 compared to net income of $619,756 for the three months ended September 30, 2020 and 2019, respectively. The decrease in net loss was mainly due to the decrease in consulting fees, general and administrative expenses and other expense.

Comparison of the Nine months Ended September 30, 2020 with the Nine months Ended September 30, 2019

Revenue. For the nine months ended September 30, 2020, we generated revenues of $2,495,628 as compared to $2,170,123 for the nine months ended September 30, 2019. The increase of revenue was due primarily to the integration of SDS acquired in May 2019.

Cost of Revenues. For the nine months ended September 30, 2020, cost of revenue increased to $1,852,661 from $1,610,394 for the nine months ended September 30, 2019. The increase was mainly due to the increase in revenue from SDS acquired in May 2019.

Consulting fees. For the nine months ended September 30, 2020, consulting fees decreased to $249,414 from $529,100 for the nine months ended September 30, 2019, primarily due to decreased utilization of consultants during the nine months ended September 30, 2020.

Professional and Legal Fees. For the nine months ended September 30, 2020, professional and legal fees increased to $247,346 from $208,737 for the nine months ended September 30, 2019, primarily due to work related to our Registration Statement provided during the nine months ended September 30, 2020.

Investor Relations. For the nine months ended September 30, 2020, investor relations expense decreased to $88,968 from $150,227 for the nine months ended September 30, 2019, primarily as a result of decreased use of investor relations consultants.

General and Administrative Expenses. Our general and administrative expenses decreased to $2,031,870 for the nine months ended September 30, 2020 from $4,562,144 for the nine months ended September 30, 2019. The decrease was primarily a result of preferred stock issued for services of $3,100,000 issued during the three months ended September 30, 2019.

Other Income (Expense). For the nine months ended September 30, 2020, other expense was $2,003,406, compared to other expense of $3,268,880 for the nine months ended September 30, 2019. The decrease in other expense was primarily due to the gain on change in fair value of derivative liability of $183,199 compared to a loss of $1,617,074 for the three months ended September 30, 2020 and 2019, respectively.

Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders was $3,709,666 and $8,066,090 for the nine months ended September 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 $1,617,074 loss on change in fair value of derivative liability incurred during the nine months ended September 30, 2019.






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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 $42,361 in cash as of September 30, 2020. The Company has negative working capital of approximately $7 million, and total stockholders' deficit of approximately $7 million as of September 30, 2020. As of September 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 used in operating activities - Net cash used in operating activities was $1,398,978 for the nine months ended September 30, 2020 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, loss on change in fair value of derivatives of $183,199 and accrued expenses of $648,042. Net cash used in operating activities for the nine months ended September 30, 2019 was $1,312,203, primarily as a result our net loss attributable to Singlepoint Inc stockholders of $8,066,090, partially offset by non-cash amortization of debt discounts of $1,322,297, loss on change in fair value of derivatives of $1,617,074, 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 nine months ended September 30, 2020.





Financing Activities

Cash flow from financing activities - During the nine months ended September 30, 2020, our financing activities provided cash of $1,306,211 primarily from proceeds from advances from related party of $355,000, proceeds from short-term notes payable of $332,737, proceed from sale of common stock of $216,384, and proceeds from the issuance of convertible notes of $320,500. During the nine months ended September 30, 2019, our financing activities provided cash of $1,537,484 primarily from proceeds from advances from related party of $138,445 and proceeds from the issuance of convertible notes of $1,500,000.

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 September 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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