Financial Performance - Total revenues for Q2 2024 were $5.45 million, a decrease of 33.3% compared to $8.15 million in Q2 2023[9] - Gross profit for Q2 2024 was $1.40 million, down 48.3% from $2.70 million in Q2 2023[9] - Net loss for Q2 2024 was $9.88 million, compared to a net loss of $1.34 million in Q2 2023, representing a significant increase in losses[9] - For the six months ended June 30, 2024, the company reported a net loss of $12,740,461 compared to a net loss of $10,252,846 for the same period in 2023[19] - The company reported a net loss available for common stockholders of $9,883,004 for the three months ended June 30, 2024, compared to a net income of $9,228,829 for the same period in 2023[43] - Net loss attributable to stockholders was ($12.7 million) for the six months ended June 30, 2024, compared to a net loss of ($10.0 million) for the same period in 2023, reflecting higher other expenses and SG&A costs[84] Expenses - Selling, general and administrative expenses increased to $5.99 million in Q2 2024, up 85.5% from $3.23 million in Q2 2023[9] - Selling, General and Administrative (SG&A) expenses increased to $6.0 million for the three months ended June 30, 2024, from $3.2 million in the prior year, driven by stock issued for services and higher consulting fees[80] - SG&A expenses decreased to $10.2 million for the six months ended June 30, 2024, from $13.2 million in the prior year, attributed to prior year preferred stock issuance and increased consulting fees[23] - Other expenses for the three months ended June 30, 2024, were ($5.3 million), compared to ($0.8 million) in the same period of 2023, mainly due to liability settlements and changes in fair value of derivative liabilities[81] - Other expenses increased to ($5.8 million) for the six months ended June 30, 2024, compared to ($1.4 million) in the same period of 2023, mainly due to settlement of liabilities and financing costs[84] Assets and Liabilities - Total current assets decreased to $3.70 million as of June 30, 2024, down 31.1% from $5.38 million at December 31, 2023[6] - Total liabilities increased to $18.63 million as of June 30, 2024, up 14.0% from $16.37 million at December 31, 2023[8] - Cash balance decreased to $253,816 as of June 30, 2024, down 66.6% from $758,622 at December 31, 2023[6] - The company had a working capital deficit of $13,692,140 as of June 30, 2024[23] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2024, was $2,303,191, significantly higher than $556,518 for the same period in 2023[19] - Cash flow from financing activities provided $1.8 million during the six months ended June 30, 2024, primarily from the sale of common stock and debt[87] Capital and Financing - The company is dependent on raising capital from stockholders or other sources to sustain operations and achieve profitable operations[23] - The company issued common shares for cash totaling $526,882 and for services amounting to $1,457,800 during the period[16] - The company converted debt and accrued interest into common shares, resulting in an increase of $2,974,381[16] - The company entered into a note purchase agreement with Bucktown Capital LLC for a promissory note of $1,580,000 at an interest rate of 8% per annum, with quarterly payments of $250,000 starting January 1, 2022[52] Acquisitions and Growth Strategy - The company has completed acquisitions to increase its portfolio, including 100% ownership of EnergyWyze, LLC and 100% ownership of Box Pure Air, LLC[20] - The company plans to continue building its portfolio through organic growth and synergistic acquisitions, focusing on businesses where it can provide significant value[22] Internal Controls and Compliance - The company reported material weaknesses in internal controls over financial reporting, including a lack of a functioning audit committee and inadequate segregation of duties[90] - The company has not identified any changes in internal control over financial reporting that materially affected its effectiveness during the quarter ended June 30, 2024[91] - The report includes certifications from the Chief Executive Officer and Chief Financial Officer as per the Sarbanes-Oxley Act[93] Revenue Recognition - The company recognizes revenue from its solar operations upon completion of services, with a focus on increasing market penetration and improving cash flow[29]
Singlepoint Inc.(SING) - 2024 Q2 - Quarterly Report