Singlepoint Inc.(SING) - 2021 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2021, was $239,013, a decrease of 77.8% compared to $1,075,222 for the same period in 2020[14] - Gross profit for the quarter was a loss of $65,726, compared to a gross profit of $309,614 in the prior year, indicating a significant decline in profitability[14] - Operating expenses increased to $1,046,693 for the quarter, up from $946,590 in the same period last year, reflecting a rise of approximately 10.6%[14] - The net loss attributable to Singlepoint Inc. stockholders for the quarter was $1,141,731, compared to a net loss of $1,920,431 in the prior year, showing an improvement of 40.5%[14] - For the three months ended March 31, 2021, the net loss attributable to Singlepoint Inc. stockholders was $1,141,731, a decrease from a net loss of $1,920,431 for the same period in 2020, representing a 40.5% improvement[21] - The company reported a net cash used in operating activities of $997,882 for the three months ended March 31, 2021, compared to $395,971 for the same period in 2020, indicating a significant increase in cash outflow[21] - Cash at the end of the period was $1,691,686, up from $222,579 at the end of the same period in 2020, reflecting a net change in cash of $1,493,213[21] - The cost of revenue decreased to $304,739 from $765,608, reflecting a reduction of 60.2% due to decreased expenses incurred with business operations[144] - The company's net loss attributable to stockholders was $1,141,731, a 39.3% improvement from a net loss of $1,879,279 for the same period in 2020[147] Assets and Liabilities - Total assets as of March 31, 2021, were $5,572,641, a significant increase from $2,915,680 as of December 31, 2020[12] - Current liabilities decreased to $3,923,697 from $5,916,339, representing a reduction of approximately 33.7%[11] - The accumulated deficit as of March 31, 2021, was $(81,927,618), compared to $(80,785,887) at the end of 2020, indicating ongoing financial challenges[16] - The company reported a total stockholder equity of $84,017,072 as of March 31, 2021, compared to an accumulated deficit of $81,927,618, reflecting ongoing financial challenges[21] Cash Flow and Financing - Cash and cash equivalents increased to $1,691,686 as of March 31, 2021, compared to $198,473 at the end of 2020, indicating improved liquidity[11] - The company raised $760,000 from the sale of Class C preferred stock and $1,500,000 from the sale of Class D preferred stock during the financing activities for the three months ended March 31, 2021[21] - The company plans to raise approximately $2.5 million to continue operations over the next 12 months if revenue does not increase[151] - The company plans to pursue additional equity financing through private placements of common stock to sustain operations and achieve viable operations[29] Acquisitions and Subsidiaries - The company has five subsidiaries as of March 31, 2021, including Energy Wyze LLC (100% interest) and Box Pure Air (51% interest), indicating a diversified portfolio in renewable energy solutions[27] - The Company completed the acquisition of 51% of Box Pure Air, LLC for $500,000, paid with the issuance of 168,350 shares of common stock, which was allocated to goodwill[57] - The Company entered into a purchase agreement to acquire 100% ownership of EnergyWyze, LLC for a total consideration of $75,000, including a $25,000 cash payment and a $50,000 Seller Note[59] - The company completed the acquisition of 100% ownership of EnergyWyze, LLC, and 51% ownership of Box Pure Air, indicating a strategic focus on expanding its renewable energy solutions[27] Market Strategy and Operations - The company is focused on expanding its market presence in renewable energy and energy-efficient applications, aiming to create long-term value for shareholders[27] - The Company aims to create long-term value for shareholders by increasing market penetration and improving cash flow for partner companies[139] - The company has a commitment to build a national solar installation network through a joint venture with Standard Eco, with ownership of 51% by Direct Solar America[138] Financial Concerns - The financial statements indicate substantial doubt about the company's ability to continue as a going concern, as it has yet to achieve profitable operations[28] - The company has not yet achieved profitable operations and is dependent on raising capital to sustain operations, raising concerns about its ability to continue as a going concern[28] Stock and Equity - The company reported a weighted average number of common shares outstanding of 34,587,638 for the quarter, an increase from 22,903,450 in the same period last year[14] - As of March 31, 2021, the company had 59,000,000 shares of Class A Convertible Preferred Stock issued and outstanding, convertible into a total of 1,475,000,000 shares of common stock[78] - The Class B Preferred Stock has a stated value of $1,200 per share, with an 8% annual dividend payable quarterly[82] - The Company has issued 1,500 shares of Class C Preferred Stock as of March 31, 2021, with a Stated Value of $1,200 per share and a dividend rate of 3% per annum[93][95] - The Company has issued 1,500 shares of Class D Preferred Stock as of March 31, 2021, also with a Stated Value of $1,200 per share and a 3% annual dividend[102][105] - The Company has the right to redeem Class C Preferred Stock at a price of 115% to 125% of the Stated Value depending on the timing of redemption[103] - The Company has 39,995,000 shares of preferred stock remaining undesignated and unissued as of March 31, 2021[111] Debt and Liabilities - The company incurred a loss on debt settlement of $35,830 related to the UAHC Note, which was amended to extend the maturity date to December 31, 2022[69] - The company borrowed $1,925,000 under the Iliad Note during the year ended December 31, 2019, with total repayments of $194,637 in 2020[69] - The company plans to apply for forgiveness of the PPP loans, indicating a strategy to manage debt effectively[71] - The company received $332,737 in loan proceeds under the SBA's Paycheck Protection Program (PPP), with $20,437 of the Singlepoint note principal forgiven on March 9, 2021[71] Investments and Fair Value - The fair value of the Company's investments in equity securities was $547,010 as of March 31, 2021, down from $588,637 as of December 31, 2020[56] - The Company recorded a loss of $41,627 related to the fair value measurement of certain equity securities for the three months ended March 31, 2021[50] - The Company’s convertible notes derivative liability had a fair value of $547,010 as of March 31, 2021[51] - The Company’s financial instruments include cash, accounts receivable, and convertible notes payable, with estimated fair values approximating their carrying amounts due to their short-term nature[47] Revenue Recognition - The Company follows ASC 606 for revenue recognition, recording revenue when control of goods transfers to the customer[33]