At the height of COVID-19, DLT Resolution delivers impressive growth in both consecutive quarter and year over year Sales and profitability
LAS VEGAS, Nevada, Aug. 11, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- DLT Resolution, Inc. (OTC: DLTI), an information technology, cyber security, telecommunications and Union Services company, today reported financial results for its second quarter ended June 30, 2020.
2020 Second Quarter Highlights:
- Second quarter revenue of $549,000 was 385% higher than 2019 second quarter revenue
- On a consecutive quarter basis, Second quarter revenue of $549,000 was 28% higher than the 2020 Q1 quarter
- Second quarter net loss of $77,000, was 81% less than 2019 second quarter net loss
- On a consecutive quarter basis, Second quarter net loss of $77,000, was 73% less than first quarter 2020 loss of $329,000.
“We are pleased that our January 30, 2020 acquisition of Union Strategies, Inc. is making significant positive contributions to our financial results. Our business generated $86,000 in EBITDA in the second quarter of 2020 and we achieved near breakeven operating cash flow for the first six months of 2020. In the face of a business environment made challenging by the COVID-19 pandemic, we are servicing customers, winning new business and expanding our product offering,” said John Wilkes, Chief Executive Officer of DLT Resolution Inc.
Second Quarter 2020 Results
- The increase in second quarter revenue to $549,000 from 2019’s second quarter revenue of $113,000 was primarily related to the revenue generated by Union Strategies, Inc. following the Company’s acquisition of its business on January 30, 2020. The Company reported a first quarter net loss of $77,000 that includes $152,000 in depreciation and amortization expense and $11,000 in interest expense, as compared to a $14,000 net loss with $86,000 in depreciation and amortization expense and $2,000 in interest expense in the comparable year-ago period.
John Wilkes concluded, “During this second half of 2020, our focus is to cross-pollinate the variety of services offered by our Subsidiaries with our expanded customer base in order to grow our revenues.”
About DLT Resolution Inc.
DLT Resolution Inc. currently operates in three high-tech industry segments: Blockchain Applications & Cyber Security; Telecommunications; and Data Services which includes Image Capture, Data Collection, Data Phone Center Services, and Payment Processing. Its clients represent some of the top businesses from a variety of sectors. DLT Resolution helps organizations that have invoices, ledgers, statements, applications, surveys, employee and customer rewards programs and a wide range of other non-core functions benefit from data management. DLT Resolution also operates a Health Information Exchange providing the ability to request and retrieve medical information & records while meeting all of today's Security & Compliance demands for HIPAA, PIPEDA and PHIPA. Through RecordsBank.org, the Company offers an easy to use online gateway to its centralized system for patients, lawyers and insurers to retrieve and access medical records. Learn more at: DLTResolution.com and DLTTelecom.com.
About Union Strategies Inc. (USI)
USI has been providing a suite of products and services to Unions for over 10 years. The company designs, builds, and executes programs resulting in greater success for unions. Programs are designed to engage the membership, decrease expenses, and save time for a more productive business. The Company’s suite includes Telecommunications, Event Management, Professional Writing, Social Media Management, Web Design, Graphic Services, and Promotional Offerings. The company is a one-stop-shop for all things union. The company has more than 130 clients that are considered “mid-market” in terms of overall size of the particular local with 450,000 members. USI operates nationally in Canada and looks to expand into the USA in 2020. Learn more at: UnionStrategiesinc.com
Forward-Looking and Cautionary Statements
The use of the word "company" or "Company" refers to DLT Resolution Incorporated and its wholly-owned subsidiaries. This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In accordance with the safe harbor provisions of this Act, statements contained herein that look forward in time that include everything other than historical information, involve risks and uncertainties that may affect the company's actual results. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. DLT Resolution may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual report to stockholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (available at http://www.sec.gov). DLT Resolution undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise. Nothing within this communication is meant to be a solicitation to buy or sell our securities. Investing in over the counter (OTC) securities often carries a high degree of risk. Please contact your financial advisor before investing in our securities.
Source: DLT Resolution Inc.
Contact:
1 800-463-5465
| DLT RESOLUTION, INC | |||||||||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| June 30, | December 31, | ||||||||||||||||
| 2020 | 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 | |||||||||||||
| DLT RESOLUTION, INC. | |||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| 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 | ) | |||||