Financial Performance - The company reported a net loss of $8,907,922 for the period, compared to a loss of $233,904 in the previous period, indicating a significant increase in losses [55]. - The company reported a net income (loss) of $(9,882,556) for the latest quarter, compared to $(9,883,004) in the previous quarter, indicating stability in losses [57]. - As of September 30, 2024, the company reported a net loss of approximately $17.25 million and a working capital deficit of approximately $15.63 million [61]. - As of September 30, 2024, the company reported a net loss of $4,513,326 for the three months ended, compared to a net loss of $1,270,860 for the same period in 2023 [103]. - The company reported a gross profit of $2.5 million for the three months ended September 30, 2024, compared to $2.0 million for the same period in 2023, reflecting a decrease due to the completion of higher margin projects [172]. - Other expenses for the three months ended September 30, 2024, were ($3.5 million), significantly higher than ($0.2 million) for the same period in 2023, primarily due to settlement of liabilities and changes in fair value of derivative liability securities [173]. - For the nine months ended September 30, 2024, the cost of revenue decreased to $9.4 million from $14.4 million for the same period in 2023, attributed to lower revenues at Boston Solar and decreased sales of air purification systems [175]. Capital Structure and Financing - Issuance of common shares for cash amounted to $38,077, while issuance for acquisition expenses was $36,118, reflecting ongoing capital raising efforts [55]. - The company converted preferred shares totaling 120,000, which may impact future equity structure and financing [55]. - The total accrued preferred stock dividends reached $71,240, highlighting ongoing obligations to preferred shareholders [55]. - The company has engaged in the conversion of debt and accrued interest into common shares, totaling $2,974,381, which may affect leverage and equity [57]. - The company is actively managing derivative liabilities, with a settlement amount of $804,025, reflecting ongoing financial strategy adjustments [57]. - The company completed the acquisition of the remaining 49% ownership of Box Pure Air on October 1, 2023 [67]. - The company entered into an unsecured note payable of $1,000,000 as part of the Boston Solar acquisition, with a principal balance of $750,000 as of December 31, 2023 [128]. - Boston Solar agreed to make payments totaling $500,000 over a 30-month period, with $90,000 included in current notes payable and $215,000 in long-term notes payable as of December 31, 2023 [129]. - The Company issued a 36-month seller note to the CEO of Boston Solar for $1,940,423, with a fair value of $1,252,272, and recorded a gain on settlement of debt of approximately $888,000 after acquiring 100% of Boston Solar [130]. - The Company recorded discounts totaling $468,938 from embedded derivative liabilities related to the seller convertible notes, amortized over the life of the notes [131]. - As of September 30, 2024, the Company had a total of $729,167 included in current portion of convertible notes payable from a 12% Convertible Promissory Note issued for $1,250,000 [138]. - The Company entered into a 15% Convertible Promissory Note for $312,500, with $312,500 included in current portion of convertible notes payable as of September 30, 2024 [139]. - The company has entered into multiple promissory notes with accredited investors, including Promissory Note 6 and Promissory Note 7, with aggregate principal amounts of $156,000 and $163,585, respectively [149]. Cash Flow and Liquidity - The company had approximately $65,000 in cash at the end of the reporting period [61]. - Net cash used in operating activities was approximately $2.57 million, an increase of 355% compared to the previous period [66]. - Net cash used in investing activities was approximately $60,476, a decrease of 52% compared to the previous period [66]. - Net cash provided by financing activities was approximately $1.93 million, an increase of 247% compared to the previous period [66]. Revenue Recognition and Operations - The company recognizes revenue upon completion of services, with significant revenue derived from its solar operations [75]. - The company is focused on providing integrated energy solutions through its subsidiaries, primarily Boston Solar and Box Pure Air [68]. - The company does not anticipate achieving profitable operations or adequate cash flows in the near term and will pursue additional financing [62]. Liabilities and Obligations - The company’s balance sheet reflects a significant increase in liabilities, with total liabilities reaching $(119,810,093) as of the latest reporting date [57]. - The company has an allowance for credit losses of $375,000 as of September 30, 2024, consistent with the amount as of December 31, 2023 [107]. - Inventory as of September 30, 2024, is net of a reserve for obsolescence of $236,000, down from $762,000 as of December 31, 2023 [94]. - The company has a net operating loss carryforward, with a full valuation allowance for deferred tax assets due to uncertainty of realization [101]. - The company recognized lease liabilities based on the present value of unpaid lease payments for existing operating leases longer than twelve months [99]. - The company entered into a settlement agreement on July 11, 2024, to resolve overdue liabilities totaling approximately $2.5 million, which will be settled through the issuance of common stock shares contingent on court approval [180]. - The Company entered into a Settlement Agreement with Silverback Capital Corporation to resolve overdue liabilities totaling approximately $2.5 million, issuing freely tradable common stock shares as "Settlement Shares" contingent on court approval [180]. Compliance and Governance - The company was notified of non-compliance with the Timely Filing Requirement by the Cboe BZX Exchange due to the late filing of its Form 10-Q for the quarter ended June 30, 2024 [181]. - The Company received a Deficiency Notification from Cboe BZX Exchange for not timely filing its Form 10-Q for the quarter ended June 30, 2024, resulting in non-compliance with the Timely Filing Requirement [181]. - The Company adopted the 2019 Equity Incentive Plan to attract and retain employees, but has not issued any awards under the Plan as of the report date [179].
Singlepoint Inc.(SING) - 2024 Q3 - Quarterly Report