SinglePoint Inc. Reports Financial Results for the Quarter Ended September 30, 2024
SinglePoint Inc. Reports Financial Results for the Quarter Ended September 30, 2024
SinglePoint Inc. reported its financial results for the quarter ended September 30, 2024. The company’s condensed consolidated balance sheet showed total assets of $1.3 million, total liabilities of $1.1 million, and a stockholders’ deficit of $0.8 million. The company’s condensed consolidated statements of operations reported a net loss of $0.3 million for the quarter, with revenue of $0.1 million and operating expenses of $0.4 million. The company’s condensed consolidated statements of cash flows reported a net cash outflow of $0.2 million for the quarter. The company’s management’s discussion and analysis of financial condition and results of operations highlighted the company’s efforts to expand its business and increase revenue, but noted that the company is still in the early stages of its development and faces significant challenges and uncertainties.
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 and Box Pure Air, which handle its solar and air purification operations, respectively. Singlepoint also has ownership interests in other non-core businesses, but these are not considered significant.
Results of Operations
Comparison of the Three Months Ended September 30, 2024, and September 30, 2023:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $5.5 million | $6.9 million | -20.3% |
| Cost of Revenue | $3.0 million | $4.8 million | -37.5% |
| Gross Profit | $2.5 million | $2.0 million | +25.0% |
| SG&A Expenses | $3.5 million | $3.2 million | +9.4% |
| Other Expenses | $3.5 million | $0.2 million | +1650.0% |
| Net Loss | $4.5 million | $1.3 million | +246.2% |
The decrease in revenue was primarily due to lower sales at Boston Solar and lower air purification system sales. However, the decrease in cost of revenue led to an increase in gross profit. SG&A expenses increased due to higher consulting and professional fees, while other expenses rose significantly due to settlement of liabilities, changes in derivative liability securities, and financing costs. The net result was a substantial increase in net loss.
Comparison of the Nine Months Ended September 30, 2024, and September 30, 2023:
| Metric | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Revenue | $15.1 million | $20.7 million | -27.1% |
| Cost of Revenue | $9.4 million | $14.4 million | -34.7% |
| Gross Profit | $5.7 million | $6.4 million | -10.9% |
| SG&A Expenses | $13.7 million | $16.4 million | -16.5% |
| Other Expenses | $9.3 million | $1.7 million | +447.1% |
| Net Loss | $17.3 million | $0.7 million | +2371.4% |
The trends observed in the quarterly comparison continued over the nine-month period, with revenue and gross profit declining due to lower sales, while other expenses increased significantly, leading to a substantial rise in net loss.
Liquidity and Capital Resources
As of September 30, 2024, Singlepoint had $0.06 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.
Operating Activities
- Net cash used in operating activities was $2.6 million for the nine months ended September 30, 2024, primarily due to the net loss, partially offset by changes in operating assets and liabilities.
- Net cash used in operating activities was $0.1 million for the nine months ended September 30, 2023, primarily due to the net loss, partially offset by preferred stock issued for services and changes in operating assets and liabilities.
Investing Activities
- The company used $0.1 million for investing activities in both the nine-month periods ended September 30, 2024, and September 30, 2023.
Financing Activities
- During the nine months ended September 30, 2024, financing activities provided $1.9 million, primarily from the proceeds of common stock sales and debt.
- During the nine months ended September 30, 2023, financing activities provided $0.6 million, primarily from the issuance of debt and common and preferred stock.
Outlook Singlepoint’s financial performance has been challenging, with declining revenue, lower margins, and a significant increase in net losses. The company’s liquidity position is also a concern, as it requires additional funding to continue operations. Singlepoint’s ability to return to profitability and sustainable growth will depend on its ability to increase revenue, manage costs, and secure adequate financing. Investors should closely monitor the company’s progress in addressing these issues.
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