SinglePoint Inc. Reports Financial Results for the Quarter Ended June 30, 2024

Press release · 09/27 20:30

SinglePoint Inc. filed its quarterly report for the period ended June 30, 2024, reporting a net loss of $1.4 million and a comprehensive loss of $1.5 million. The company’s total assets decreased to $1.3 million, primarily due to a decrease in cash and cash equivalents. The company’s total liabilities increased to $2.1 million, primarily due to an increase in accounts payable and accrued expenses. The company’s stockholders’ equity decreased to a deficit of $0.8 million. The company’s revenue was $0.2 million, primarily from the sale of its products and services. The company’s operating expenses were $1.6 million, primarily due to research and development expenses and general and administrative expenses. The company’s management’s discussion and analysis of financial condition and results of operations notes that the company is focused on developing its products and services and expanding its customer base, but also notes that the company faces significant challenges and uncertainties in its industry.

Overview

Singlepoint is a diversified holding company primarily focused on providing energy solutions and energy-centric applications. The company operates through its subsidiaries, Boston Solar (100% equity interest) and Box Pure Air (100% equity interest), which handle the company’s solar and air purification operations, respectively. Singlepoint also has ownership interests in other non-core and non-significant businesses.

Results of Operations

Comparison of the Three Months Ended June 30, 2024, with the Three Months Ended June 30, 2023:

Metric	Q2 2024	Q2 2023	Change
Revenue	$5.4 million	$8.1 million	Decrease of 33.3%
Cost of Revenue	$4.1 million	$5.4 million	Decrease of 24.1%
Gross Profit	$1.4 million	$2.7 million	Decrease of 48.1%
SG&A Expenses	$6.0 million	$3.2 million	Increase of 87.5%
Other Expense	$5.3 million	$0.8 million	Increase of 562.5%
Net Loss	$9.9 million	$1.3 million	Increase of 661.5%

The decrease in revenue and gross profit was primarily due to lower revenues at Boston Solar and lower sales of air purification systems. The increase in SG&A expenses was mainly due to stock issued for services and higher consulting and professional fees. The increase in other expense was primarily due to settlement of liabilities, changes in fair value of derivative liability securities, financing costs, and amortization of debt discounts.

Comparison of the Six Months Ended June 30, 2024, with the Six Months Ended June 30, 2023:

Metric	H1 2024	H1 2023	Change
Revenue	$9.6 million	$13.9 million	Decrease of 30.9%
Cost of Revenue	$6.3 million	$9.5 million	Decrease of 33.7%
Gross Profit	$3.2 million	$4.4 million	Decrease of 27.3%
SG&A Expenses	$10.2 million	$13.2 million	Decrease of 22.7%
Other Expense	$5.8 million	$1.4 million	Increase of 314.3%
Net Loss	$12.7 million	$10.0 million	Increase of 27.0%

The decrease in revenue and gross profit was primarily due to lower revenues at Boston Solar and lower sales of air purification systems. The decrease in SG&A expenses was due to a one-time preferred stock issuance for services in the prior year, partially offset by an increase in stock-based compensation and higher consulting and professional fees. The increase in other expense was primarily due to settlement of liabilities, changes in fair value of derivative liability securities, financing costs, and amortization of debt discounts.

Liquidity and Capital Resources

As of June 30, 2024, Singlepoint had approximately $0.25 million in cash and cash equivalents. The company estimates a cash need of $4.0 million to continue operations for the next 12 months. Singlepoint plans to fund its operations using available cash, cash flow from operations, and proceeds from an offering. However, the company’s net losses and need for additional funding raise substantial doubt about its ability to continue as a going concern. Singlepoint’s principal sources of liquidity have been cash from operating activities and capital raised from the sale of securities.

Operating, Investing, and Financing Activities

Cash used in operating activities was $2.3 million for the six months ended June 30, 2024, primarily due to the net loss, partially offset by changes in operating assets and liabilities.
Cash used in investing activities was negligible during the six months ended June 30, 2024, and 2023.
Cash provided by financing activities was $1.8 million for the six months ended June 30, 2024, primarily from proceeds of the sale of common stock and debt.

Outlook

Singlepoint’s financial performance has been impacted by lower revenues at its subsidiaries and higher expenses, leading to significant net losses. The company’s ability to continue as a going concern is dependent on its ability to increase revenue and manage operating expenses. Singlepoint’s future success will rely on its efforts to improve profitability and secure additional funding to support its operations.