EXHIBIT 99.1

 

DLT Resolution Reports Second Quarter 2020 Financial Results

 

LAS VEGAS, Nevada – August 11, 2020 – 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:

 

 

·

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

 

“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.”

 

 
1

 

 

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:

Fred Vecchio

President

Union Strategies Inc.

(647) 776-0950 ext. 874

(416) 669-5465 Cell

87 Caster Avenue, Woodbridge ON, L4L 5Z2

UnionStrategiesinc.com

 

DLTTelecom.com 

1 800-463-5465

 

 
2

 

 

DLT RESOLUTION, INC

Condensed Consolidated Balance Sheets

(Unaudited)

        

 

 

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

 

 
 
3

 

 

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 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 
 
4

 


The following information was filed by Dlt Resolution Inc. (DLTI) on Tuesday, August 11, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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