SING.OTC.PinkSinglepoint INC
10-Q: SinglePoint Inc. Reports Q3 2024 Results, Cites Revenue Decline and Increased Net Loss
Sentiment:
Quarterly Report
SinglePoint Inc.'s Q3 2024 results reveal a decrease in revenue and a significant increase in net loss compared to the same period in 2023, primarily due to lower revenues at Boston Solar and air purification systems, coupled with increased expenses.
Delay expectedThe Company received a written notice from the Listing Qualifications Department of The Cboe BZX Exchange, Inc. notifying the Company that because the Company had not timely filed its Form 10-Q for the quarter ended June 30, 2024 within the 5-day grace period, the Company was out of compliance with the Timely Filing Requirement.
Capital raiseThe company is dependent on its ability to raise capital from stockholders or other sources to sustain operations.Management will continue to pursue additional debt and equity financing.The company anticipates funding its operations for the next 12 months using available cash, cash flow generated from operations and proceeds from an offering.Should we not be able to fulfill our cash needs through the increase of revenue we will need to raise money through the sale of additional shares of common stock, convertible notes, debt or similar instrument(s).
Worse than expectedThe company's revenue decreased compared to the same period last year.The company's net loss increased significantly compared to the same period last year.
Summary
- SinglePoint Inc. reported a net loss of $4.5 million for the three months ended September 30, 2024, compared to a net loss of $1.3 million for the same period in 2023.
- Revenue for the quarter decreased to $5.5 million from $6.9 million in the prior year, attributed to lower revenues at Boston Solar and reduced sales of air purification systems.
- Selling, general, and administrative expenses increased to $3.5 million from $3.2 million, primarily due to higher consulting and professional fees.
- Other expenses were $3.5 million, compared to $0.2 million in the prior year, driven by settlement of liabilities, changes in the fair value of derivative liability securities, financing costs, and amortization of debt discounts.
- For the nine months ended September 30, 2024, the company's net loss was $17.3 million, compared to a net loss of $0.7 million for the same period in 2023.
- Revenue for the nine-month period was $15.1 million, down from $20.7 million in the prior year.
- The company's cash and cash equivalents stood at approximately $0.06 million as of September 30, 2024.
- The company estimates a cash need of approximately $4.0 million to continue operations for the next 12 months.
- Management intends to fund operations through available cash, cash flow from operations, and proceeds from potential offerings.
- The company's ability to continue as a going concern is dependent on its ability to achieve profitable operations.
Sentiment
Score: 3
Explanation: The document presents a negative outlook due to decreased revenue, increased net losses, low cash reserves, and concerns about the company's ability to continue as a going concern. The delisting from Cboe BZX and material weaknesses in internal controls further contribute to the negative sentiment.
Positives
- Cost of revenue decreased to $3.0 million for the three months ended September 30, 2024, from $4.8 million for the three months ended September 30, 2023.
- Selling, general and administrative expenses decreased to $13.7 million for the nine months ended September 30, 2024, from $16.4 million for the nine months ended September 30, 2023.
Negatives
- Revenue decreased for both the three and nine months ended September 30, 2024, compared to the same periods in 2023.
- Net loss increased significantly for both the three and nine months ended September 30, 2024, compared to the same periods in 2023.
- The company has a working capital deficit of approximately $15.6 million as of September 30, 2024.
- The company's cash position is very low, with approximately $65,000 in cash as of September 30, 2024.
- The company's auditors have raised substantial doubt about the company's ability to continue as a going concern.
Risks
- The company's ability to continue as a going concern is dependent on its ability to raise capital and achieve profitable operations.
- The company's net losses and need for additional funding raise substantial doubt about its ability to continue as a going concern.
- The company's disclosure controls and procedures were not effective as of September 30, 2024, due to material weaknesses in internal control over financial reporting.
- The company is subject to various lawsuits and legal proceedings which arise in the ordinary course of business.
- The company's common stock was suspended and delisted from the Cboe BZX exchange.
Future Outlook
The company anticipates funding its operations for the next 12 months using available cash, cash flow generated from operations, and proceeds from an offering. 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.
Management Comments
- Management will continue to pursue additional debt and equity financing.
- Management intends to fund operations through available cash, cash flow from operations, and proceeds from potential offerings.
Industry Context
The document does not provide specific details on industry context or competitor analysis. However, the company's focus on energy solutions and air purification aligns with growing trends in sustainable energy and health-conscious consumerism.
Legal Proceedings
- From time to time, we are a party to claims and actions for matters arising out of our business operations.
Related Party Transactions
- As of September 30, 2024, the chief executive officer of the Company and an officer of a subsidiary had advanced to the Company $-0and $3,074, respectively.
- As of September 30, 2024, a total of $229,620 was accrued for unpaid officer wages due the Companys CEO and CFO/President under their respective employment agreements.
Stakeholder Impact
- Shareholders face potential dilution from future equity offerings.
- Employees may be concerned about job security given the company's financial challenges.
- Customers may be concerned about the company's ability to fulfill its obligations.
- Creditors face increased risk of non-payment given the company's low cash reserves.
Next Steps
- 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.
- Management will continue to pursue additional debt and equity financing.
Key Dates
| Date | Description |
|---|---|
| 2020-05-01 | Date of SBA Loan |
| 2020-05-22 | Date of SBA Economic Injury Disaster Loan (EIDL) |
| 2021-01-26 | Date of acquisition of 100% ownership of EnergyWyze, LLC |
| 2021-07-01 | Date of Note Purchase Agreement with Bucktown Capital LLC (BCL) |
| 2022-04-21 | Date of purchase of 80.1% membership interests in The Boston Solar Company, LLC (Boston Solar) |
| 2023-03-01 | Date of Settlement and Release Agreement with a third party |
| 2023-08-28 | Date of securities purchase agreement providing for the issuance of a convertible promissory note (Promissory Note 3) |
| 2023-10-03 | Date of securities purchase agreement providing for the issuance of a Convertible Promissory Note (Promissory Note 4) |
| 2023-10-10 | Date of securities purchase agreement providing for the issuance of a Convertible Promissory Note (Promissory Note 5) |
| 2024-01-01 | Date of purchase of the remaining 19.9% membership interests in The Boston Solar Company, LLC (Boston Solar) |
| 2024-01-16 | Remaining balance of the seller note and related accrued interest was assigned to a third party |
| 2024-02-23 | Date of Securities Purchase Agreements with 1800 Diagonal Lending LLC |
| 2024-02-27 | Effective date of Securities Purchase Agreements with 1800 Diagonal Lending LLC |
| 2024-04-26 | Date of 12% Convertible Promissory Note |
| 2024-06-05 | Date of securities purchase agreement providing for the issuance of a Convertible Promissory Note (Promissory Note 8) |
| 2024-06-26 | Date of securities purchase agreement providing for the issuance of a Convertible Promissory Note (Promissory Note 2) |
| 2024-06-30 | Date of 15% Convertible Promissory Note |
| 2024-07-11 | Date of Settlement Agreement with Silverback Capital Corporation (SCC) |
| 2024-08-15 | Date of filing Form 12b-25 with the SEC and date of 1 for 100 reverse stock split |
| 2024-08-22 | Date of securities purchase agreement providing for the issuance of a Convertible Promissory Note (Promissory Note 9) |
| 2024-08-27 | Date the Company received a written notice from the Listing Qualifications Department of The Cboe BZX Exchange, Inc. |
| 2024-09-06 | Date the Company received a notice from the Staff of Cboe BZX that the Cboe BZX Hearings Panel had denied the Company's request for an extension |
| 2024-09-10 | Effective date of suspension of trading of the Company's common stock |
| 2024-09-30 | End of the quarterly period |
| 2024-12-30 | Date of report |
Keywords
financial results, net loss, revenue, SinglePoint, Boston Solar, Box Pure Air, going concern, convertible notes, reverse stock split, Q3 2024
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