DLTI 8-K

DLT Resolution Inc. (DLTI)

8-K 2020-08-11 For: 2020-08-11

View Original

Added on April 06, 2026

Exhibit		Description

99.1		Second Quarter 2020 Financial Results

	DLT Resolution Inc.

Date: August 11, 2020	By:	/s/ John S. Wilkes
	Name:	John S. Wilkes
	Title:	President and Chief Executive Officer

	·	2020 Q2 revenue of $549,000 was 385% higher than 2019 Q2 revenue

	·	On a consecutive quarter basis, 2020 Q2 revenue of $549,000 was 28% higher than the 2020 Q1 quarter

	·	2020 Q2 net loss of $77,000, was 81% less than 2019 Q2 net loss

	June 30, 2020			December 31, 2019
ASSETS
Current assets
Cash and cash equivalents	$	37,864		$	13,140
Accounts receivable, net of allowance for doubtful accounts of $44,730 at June 30, 2020 and $0 at December 31, 2019		305,047			34,631
Total current assets		342,911			47,771

Property, plant and equipment, net of accumulated depreciation		81,660			-
Operating lease – right of use asset		10,456			-
Intangible assets, net of accumulated amortization		4,126,427			376,460
Goodwill		-			165,022

Total assets	$	4,561,454		$	589,253

LIABILITIES AND STOCKHOLDERS’DEFICIT

Current liabilities
Bank overdraft	$	-		$	16,782
Accounts payable and accrued liabilities		537,514			99,201
Related party payables		35,866			35,880
Interest payable, related party		37,878			34,190
Note payable, related party		81,500			81,500
Notes payable, current portion		5,000			-
Lease obligation – operating lease		6,102			-
Total current liabilities		703,680			267,553

Notes payable, net of current portion		88,146			5,000
Other long term liability		2,400,000			685,000
Lease obligation – operating lease, net of current portion		3,814			-
Total liabilities		3,195,820			957,553

Stockholders’ equity (deficit)
Series A convertible preferred stock, $1.00 par value; 5,000,000 shares authorized; 0 and 25,000 issued and outstanding at June 30, 2020 and December 31, 2019		-			-
Series B convertible preferred stock, $1.00 par value; 500,000 shares authorized; 64,000 and 64,000 issued and outstanding at June 30, 2020 and December 31, 2019		64,000			64,000
Common stock, $0.001 par value; 275,000,000 shares authorized; 25,926,287 and 24,395,037 issued; 22,698,787 and 21,167,537 outstanding at June 30, 2020 and December 31, 2019		25,926			24,395
Common stock subscribed		14,000			-
Additional paid-in capital		6,641,734			4,218,265
Other comprehensive income		(333,758	)		(34,430	)
Treasury stock, 3,815,000 shares as of June 30, 2020 and December 31, 2019, at cost		(5,300	)		(5,300	)
Accumulated deficit		(5,040,968	)		(4,653,230	)
Total stockholders’ equity (deficit)		1,365,634			(368,300	)

Total liabilities and stockholders’ equity (deficit)	$	4,561,454		$	589,253

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Revenue	$	549,453		$	113,358		$	977,800		$	235,367

Cost of revenue and operating expenses
Cost of revenue		263,828			38,738			502,514			72,412
General and administrative		172,643			86,213			368,888			120,010
Depreciation and amortization		151,765			86,213			267,033			51,212
Professional fees		31,850			31,850			64,421			64,421
Goodwill impairment loss		(4,768	)		-			154,419			-
Total operating expenses		614,804			350,976			1,364,629			359,267

Loss from operations		(65,351	)		(43,443	)		(386,829	)		(72,688	)

Other income (expense)
Gain/(loss) on stock based liability		-			31,133			-			(495,438	)
Foreign exchange gain/(loss)		(3	)		(17	)		(3	)		5,349
Loss on investment		-			-			-			(331,787	)
Interest expense		(11,482	)		(1,823	)		(18,906	)		(3,627	)
Total other income (expense)		(11,485	)		29,293			(18,909	)		(825,503	)

Net income (loss)	$	(76,836	)	$	(14,150	)	$	(405,738	)	$	(898,191	)

Basic loss per common share – net loss	$	(0.00	)	$	(0.00	)	$	(0.02	)	$	(0.04	)
Diluted loss per common share – net loss	$	(0.00	)	$	(0.00	)	$	(0.02	)	$	(0.04	)
Weighted average basic shares outstanding		25,926,287			19,263,408			25,676,802			20,594,092
Weighted average diluted shares outstanding		25,926,287			19,263,408			25,676,802			20,594,092