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 June 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 June
30, 2021.
Results of Operations
Financial Condition and Changes in Financial Condition
Overall Operating Results:
Comparison of the Three Months Ended June 30, 2021 with the Three Months Ended
June 30, 2020
Revenue. For the three months ended June 30, 2021, we generated revenues of
$454,822 as compared to $395,277 for the three months ended June 30, 2020. The
increase of revenue was due primarily to the seasonality of solar installs and
the implementation of the new post pandemic business model.
Cost of Revenues. For the three months ended June 30, 2021 cost of revenue
increased to $302,332 from $290,594 for the three months ended June 30, 2020.
The increase was mainly due to the increase in revenue for the three months
ended June 30, 2021 compared to the three months ended June 30, 2020.
Consulting fees. For the three months ended June 30, 2021, consulting fees
decreased to $68,544 from $36,921 for the three months ended June 30, 2020,
primarily due to reduced utilization of consultants during the three months
ended June 30, 2021.
Investor Relations. For the three months ended June 30, 2021, investor relations
expense increased to $111,601 from $96,796 for the three months ended June 30,
2020, primarily as a result of increased use of investor relation services
during the three months ended June 30, 2021.
General and Administrative Expenses. Our general and administrative expenses
increased to $867,107 for the three months ended June 30, 2021 from $689,557 for
the three months ended June 30, 2020. The increase was primarily due to increase
overhead through acquisitions and employee growth.
Other Income (Expenses). For the three months ended June 30, 2021, other
expenses were $12,404, compared to other expenses of $441,630 for the three
months ended June 30, 2020. The decrease in other expenses was primarily due to
$0 amortization of debt discounts for the three months ended June 30, 2021,
compared to $631,084 in the same period a year ago. This was partially offset by
the gain on change in fair value of derivative liability of $291,634 recognized
in the three months ended June 30, 2020 compared to no gain or loss recognized
during the three months ended June 30, 2021.
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Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders
was $998,489 compared to $1,025,790 for the three months ended June 30, 2021 and
2020, respectively. The decrease in net loss was mainly due to the decrease in
other expenses, partially offset by an increase in general and administrative
expenses and other expenses.
Comparison of the Six Months Ended June 30, 2021 with the Six Months Ended June
30, 2020
Revenue. For the six months ended June 30, 2021, we generated revenues of
$693,835 as compared to $1,470,499 for the six months ended June 30, 2020. The
decrease of revenue was due primarily to the performance of Direct Solar
America.
Cost of Revenues. For the six months ended June 30, 2021, cost of revenue
decreased to $607,071 from $1,056,202 for the six months ended June 30, 2020.
The decrease was mainly due to the decrease in revenue from Direct Solar
America.
Consulting fees. For the six months ended June 30, 2021, consulting fees
decreased to $128,875 from $173,937 for the six months ended June 30, 2020,
primarily due to decreased utilization of consultants during the six months
ended June 30, 2021.
Professional and Legal Fees. For the six months ended June 30, 2021,
professional and legal fees increased to $358,538 from $171,614 for the six
months ended June 30, 2020, primarily due to increased activity surrounding
acquisitions and regulatory filings.
Investor Relations. For the six months ended June 30, 2021, investor relations
expense increased to $278,956 from $63,152 for the six months ended June 30,
2020, primarily as a result of increased use of investor relations consultants.
General and Administrative Expenses. Our general and administrative expenses
increased to $1,564,556 for the six months ended June 30, 2021 from $1,380,529
for the six months ended June 30, 2020. The increase was primarily a result of
increased overhead from acquisitions and employee growth.
Other Income (Expense). For the six months ended June 30, 2021, other expenses
were $261,123, compared to other expenses of $1,767,446 for the six months ended
June 30, 2020. The decrease in other expenses was primarily due to the
$1,079,374 amortization of debt discounts during the six months ended June 30,
2020.
Net Loss. The Company's net loss attributable to Singlepoint Inc stockholders
was $2,140,129 and $2,946,221 for the six months ended June 30, 2021 and 2020,
respectively. The decrease in net loss was mainly due to the decrease in debt
discount amortization during the six months ended June 30, 2021, partially
offset by an increase in general and administrative expenses 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 $854,589 in cash as of June 30, 2021. The Company had total
stockholders' equity of approximately $989,648 million as of June 30, 2021. As
of June 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 $2,183,241 for the six months ended June 30, 2021 primarily as a result of
our net loss attributable to Singlepoint Inc stockholders of $2,140,129. Net
cash used in operating activities for the six months ended June 30, 2020 was
$918,429 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.
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Investing Activities
Cash flow used in investing activities - The Company invested $16,120 in
property, plant and equipment during the six months ended June 30, 2021. The
Company received cash of $25,000 for the return of an investment during the six
months ended June 30, 2020. In Q1 2021 the company paid $25,000 in conjunction
with an acquisition.
Financing Activities
Cash flow from financing activities - During the six months ended June 30, 2021,
our financing activities provided cash of $2,880,477 primarily from proceeds of
issuance of common and preferred stock, in addition to proceeds from short-term
notes payable. During the six months ended June 30, 2020, our financing
activities provided cash of $859,777 primarily from proceeds from advances from
a 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.
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 June 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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