DLT Resolution Reports First Quarter 2020 Financial Results

LAS VEGAS, NV, July 13, 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 first quarter ended March 31, 2020.

2020 First Quarter Highlights in USD:

•  First quarter revenue of $428,000 was 250% higher than 2019 first quarter revenue
•  First quarter net loss of $329,000, was 63% less than 2019 first quarter net loss
•  Loss per share was $0.01 per share compared to a 2019 first quarter loss of $0.05 per share 
•  Total Assets increased 748% to $4,410,316 compared to Q1 2019’s $589,253
•  Total liabilities increased to $2,667,845 compared to the previous year quarter liabilities of $957,553.  The increase was due to the acquisition of Union Strategies Inc. on January 31, 2020.

“We are pleased that, in a difficult global environment, our January 30, 2020 acquisition of Union Strategies, Inc. immediately made a significant contribution to first quarter revenues. We have, during the COVID-19 outbreak, leveraged our ability to implement and provide support remotely. We are quickly adapting to find ways to communicate, sell and service our current and prospective customers,” said John Wilkes, Chief Executive Officer of DLT Resolution Inc.

 First Quarter 2020 Results

The increase in first quarter revenue to $428,000 from $122,000 in 2019 first quarter revenue was primarily related to the $326,000 of 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 $329,000 that includes a $159,000 one-time charge for writing off goodwill that was carried from a prior acquisition, as compared to an $855,000 net loss in the comparable year-ago period.  

John Wilkes concluded, “We continue to monitor the effects on our business of the current global pandemic and take the necessary actions to service our clients to our fullest ability. During 2020, we plan to continue our focus on integrating the Union Strategies business and creating new opportunities to provide value to its Union customers and their members that will in turn grow our revenues.”

DLT RESOLUTION, INC
Condensed Consolidated Balance Sheets
(Unaudited)
		March 31,				December 31,
		2020				2019
ASSETS
Current assets
Cash and cash equivalents		$	-			$	13,140
Accounts receivable, net of allowance for doubtful accounts of $44,730 at March 31, 2020 and $0 at December 31, 2019			171,396				34,631
Total current assets			171,396				47,771
Property, plant and equipment, net of accumulated depreciation			84,869				-
Operating lease – right of use asset			11,642				-
Intangible assets, net of accumulated amortization			4,142,409				376,460
Goodwill			-				165,022
Total assets		$	4,410,316			$	589,253
LIABILITIES AND STOCKHOLDERS'DEFICIT
Current liabilities
Bank overdraft		$	25,139			$	16,782
Accounts payable and accrued liabilities			471,702				99,201
Accounts payable, related party			15,000				15,000
Interest payable, related party			36,034				34,190
Related party payables			20,858				20,880
Note payable, related party			81,500				81,500
Lease obligation – operating lease			6,023				-
Total current liabilities			656,256				267,553
Notes payable, net of current portion			5,000				5,000
Other long term liability			2,001,461				685,000
Lease obligation – operating lease, net of current portion			5,128				-
Total liabilities			2,667,845				957,553
Stockholders' deficit
Series A convertible preferred stock, $1.00 par value; 5,000,000 shares authorized; 0 and 25,000 issued and outstanding at March 31, 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 March 31, 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 March 31, 2020 and December 31, 2019			25,926				24,395
Additional paid-in capital			6,641,734				4,218,265
Other comprehensive income			(19,757	)			(34,430	)
Treasury stock, 3,815,000 shares  as of March 31, 2020 and December 31, 2019, at cost			(5,300	)			(5,300	)
Accumulated deficit			(4,964,132	)			(4,653,230	)
Total stockholders’ deficit			1,742,471				(368,300	)
Total liabilities and stockholders' deficit		$	4,410,316			$	589,253
DLT RESOLUTION, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
		Three months ended March 31,
		2020				2019
Revenue			428,347			$	122,009
Cost of revenue and operating expenses
Cost of revenue			238,686				33,674
General and administrative			196,245				59,354
Depreciation and amortization			115,268				25,655
Professional fees			40,439				32,571
Goodwill impairment loss			159,187				-
Total operating expenses			749,825				117,580
Loss from operations			(321,478	)			(29,245	)
Other income (expense)
Loss on stock based liability			-				(526,571	)
Foreign exchange gain			-				5,366
Loss on investment			-				(331,787	)
Interest expense			(7,424	)			(1,804	)
Total other (expense)			(7,424	)			(854,796	)
Net loss			(328,902	)		$	(884,041	)
Basic loss per common share - net loss			(0.01	)		$	(0.05	)
Diluted loss per common share - net loss			(0.01	)		$	(0.05	)
Weighted average basic shares outstanding			25,427,317				19,263,408
Weighted average diluted shares outstanding			25,427,317				19,263,408

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:
DLTTelecom.com 

1 800-463-5465