DLTI 10-K & 10-Q changes, risk factors and insider trading
DLT Resolution Inc. · OTC · Services-Personal Services · CIK 1420368 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Not available: the section could not be located automatically in both filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
Removed heading “Critical Accounting Policies”
Removed heading “Use of Estimates”
Largest changes
“The preparation of our consolidated financial statements and notes thereto requires management to make estimates and assumptions that affect the amounts and disclosures reported within those financial statements. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, contingencies, litigation and income taxes. Management bases its estimates and judgments on historical experiences and on various other factors believed to be reasonable under the circumstances. …”see in full comparison
“Loss from Discontinued Operations: In 2022, we suspended operations of USI and DLT Data and in 2023 we sold our 100% ownership of those discontinued subsidiaries. Loss from discontinued operations was ($967,497) for the year ended December 31, 2021 compared to( $2,304,385) for the year ended December 31, 2021. The decrease in loss is attributed to write-downs of USI and DLT Data intangible assets and its receivables in 2021.”see in full comparison
Results of Operations. Total revenues weresee in full comparison$218,707$142,738 and$326,944$218,707 in20222023 and2021,2022, respectively, with the decrease attributable to adecrease in the numberloss ofcustomers.customers due to a lack of liquidity that impaired operations. Total operating expenses were$391,959$223,853 for the year ended December 31,20222023, compared to$450,015$327,721 during the year ended December 31,2021.2022. The decrease in operating expenses relates toacostreductionreductions implemented inheadcountconnectionandwithvolumeourofreducedbusiness.business volume.
“The following discussion is intended to assist in the understanding and assessment of significant changes and trends related to the results of operations and financial condition of DLT Resolution, Inc. This discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K for the fiscal year ended December 31, 2022.”see in full comparison
Full comparison: every changed paragraph (12)
The following discussion is intended to assist in the understanding and assessment of significant changes and trends related to the results of operations and financial condition of DLT Resolution, Inc. This discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Critical Accounting Policies
Use of Estimates
The preparation of our consolidated financial statements and notes thereto requires management to make estimates and assumptions that affect the amounts and disclosures reported within those financial statements. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, contingencies, litigation and income taxes. Management bases its estimates and judgments on historical experiences and on various other factors believed to be reasonable under the circumstances. Actual results under circumstances and conditions different than those assumed could result in differences from the estimated amounts in the financial statements. There have been no material changes to these policies during the year ended December 31, 2022.
Liquidity and Capital Resources. As of December 31, 2022,2023, we had $11,885$650 of cash on hand and total liabilities of $1,202,670.$263,135. We must secure additional funds in order to continue our business. We were required to securesell ashares loanof our Series A Common Stock to pay expenses relating to filing this report including legal, accounting and filing fees and will be required to secure additional financing to fund future filings. Furthermore, there is no guarantee we will receive the required financing to complete our business strategies; we cannot provide any assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. If we are unable to accomplish raising adequate funds then it would be likely that any investment made into the Company would be lost in its entirety.
Results of Operations. Total revenues were $218,707$142,738 and $326,944$218,707 in 20222023 and 2021,2022, respectively, with the decrease attributable to a decrease in the numberloss of customers.customers due to a lack of liquidity that impaired operations. Total operating expenses were $391,959$223,853 for the year ended December 31, 20222023, compared to $450,015$327,721 during the year ended December 31, 2021.2022. The decrease in operating expenses relates to acost reductionreductions implemented in headcountconnection andwith volumeour ofreduced business.business volume.
Other Expense: Other Expense totaled ($156,949) for the year ended December 31, 2023, compared to Other Expense of ($11,137) during the year ended December 31, 2022. In 2023, we realized a ($162,665) loss from the sales of our subsidiaries DLT Data Services Ltd. and Union Strategies Inc. in March 2023.
Net (Loss) from Continuing Operations: For the years ended December 31, 2023 and 2022, we incurred losses from continuing operations of ($238,060) and ($120,151), respectively.
Net Income (Loss) from Discontinued Operations: For the year ended December 31, 2023, we generated $1,444,645 of net income from discontinued operations. For the year ended December 31, 2022, we incurred a ($212,697) loss from discontinued operations.
Net Income (Loss): We generated $1,206,585 of Net Income for the year ended December 31, 2023, compared to ($332,848) of Net Loss for the year ended December 31, 2022. The Net Income in 2023 was primarily the result of net income from discontinued operations in the amount of $1,444,645 compared to a ($212,697) loss from discontinued operations for the year ended December 31, 2022.
Other Expense: Other Expense totaled ($12,495) during the year ended December 31, 2022 compared to ($2,378) during the year ended December 31, 202. Other Expense consists primarily of interest expense.
Loss from Discontinued Operations: In 2022, we suspended operations of USI and DLT Data and in 2023 we sold our 100% ownership of those discontinued subsidiaries. Loss from discontinued operations was ($967,497) for the year ended December 31, 2021 compared to( $2,304,385) for the year ended December 31, 2021. The decrease in loss is attributed to write-downs of USI and DLT Data intangible assets and its receivables in 2021.
What changed in the latest 10-Q
Risk Factors
Not required under Regulation S-K for smaller reporting companies.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Largest changes
“For the three and six months ended June 30, 2024, we generated net income of $277,927 from discontinued operations that resulted from our sale of DLT Resolution Corp in April 2024. For the three months ended June 30, 2023, we generated ($22,067) of net losses from discontinued operations that was DLT Resolution Corp., which had minimal activity. For the six months ended June 30, 2023, we generated $1,243,387 of net income from discontinued operations that was primarily from our sales of DLT Data Services Inc. and Union Strategies Inc, our two former subsidiaries.”see in full comparison
We realized a foreign exchangesee in full comparisonlossgain of$109,557, other income $5,412$15,886 and interestexpenseincome of$2,468$1,266 for the three months endedMarchJune31,30, 2024 compared to a foreign exchange loss ofNil, other income of Nil$121 and interest expense of$1,842$1,828 for the three months endedMarchJune31,30, 2023. We realized a foreign exchange loss of ($93,669), other income $5,412 and interest expense of ($1,202) for the six months ended June 30, 2024 compared to a foreign exchange loss of $121, other income of $Nil and interest expense of $3,657 for the six months ended June 30, 2023.
“For the three months ended June 30, 2024, we incurred losses from continuing operations of ($328,922). For the six months ended June 30, 2024, we incurred losses from continuing operations of ($624,386). For the three months ended June 30, 2023, we generated income from continuing operations of $8,836. For the six months ended June 30, 2023, we generated from continuing operations of $7,007.”see in full comparison
We generated a (see in full comparison$295,465$50,995) Net Loss for the three months endedMarchJune31,30, 2024, compared to$758,877($13,231) for the three months ended June 30, 2023. We generated a ($346,549) Net Loss for the six months ended June 30, 2024, compared to $1,250,394 of Net Income for thethreesix months endedMarchJune31,30, 2023. The Net Income in 2023 was primarily the result of net income from discontinued operations in the amount of$1,265,454.$1,243,387 compared toNil$277,927 from discontinued operations for thethreesix months endedMarchJune31,30, 2024.
Revenues for the three and six months endedsee in full comparisonMarchJune31,30, 2024 were $29,270 and2023$64,325,were $35,055,respectively, all of which were generated by DLT Telecom, Inc. For the three and six months endedMarchJune31,30,2024,2023, revenues were$46,529,$25,627allandof$25,627,whichrespectively. All 2023 revenues were generated by DLT Resolution Corp., a discontinued operation.The decrease resulted primarily from having fewer customers and less revenue per customer in the three months ended March 31, 2024.
General and administrative expense wassee in full comparison$199,163$358,895 and $558,058 for the three and six months endedMarchJune31,30,2024.2024, respectively. For the three and six months endedMarchJune31,30, 2023, general and administrative expense was$31,036,$9,141allandof$9,141,which wa incurred by DLT Resolution Corp., a discontinued operation.respectively. The increase in general and administrative expense was primarily due to the costs incurred in 2024 to reduce the backlog in our accounting and audit our 2022 and 2023 financialstatements.statements and the increase in consulting fees.
Full comparison: every changed paragraph (14)
Revenues for the three and six months ended MarchJune 31,30, 2024 were $29,270 and 2023$64,325, were $35,055,respectively, all of which were generated by DLT Telecom, Inc. For the three and six months ended MarchJune 31,30, 2024,2023, revenues were $46,529,$25,627 alland of$25,627, whichrespectively. All 2023 revenues were generated by DLT Resolution Corp., a discontinued operation. The decrease resulted primarily from having fewer customers and less revenue per customer in the three months ended March 31, 2024.
Cost of revenue for the three and six months ended MarchJune 31,30, 2024 were $24,745,$16,449 and $41,194, respectively, all of which were incurred by DLT Telecom, Inc. For the three and six months ended MarchJune 31,30, 2024,2023, cost of revenue were $5,701 and $5,701, respectively. All 2023 was $21,837, all of which were incurred by DLT Resolution Corp., a discontinued operation.
General and administrative expense was $199,163$358,895 and $558,058 for the three and six months ended MarchJune 31,30, 2024.2024, respectively. For the three and six months ended MarchJune 31,30, 2023, general and administrative expense was $31,036,$9,141 alland of$9,141, which wa incurred by DLT Resolution Corp., a discontinued operation.respectively. The increase in general and administrative expense was primarily due to the costs incurred in 2024 to reduce the backlog in our accounting and audit our 2022 and 2023 financial statements.statements and the increase in consulting fees.
Other (Income) Expense
We realized a foreign exchange lossgain of $109,557, other income $5,412$15,886 and interest expenseincome of $2,468$1,266 for the three months ended MarchJune 31,30, 2024 compared to a foreign exchange loss of Nil, other income of Nil$121 and interest expense of $1,842$1,828 for the three months ended MarchJune 31,30, 2023. We realized a foreign exchange loss of ($93,669), other income $5,412 and interest expense of ($1,202) for the six months ended June 30, 2024 compared to a foreign exchange loss of $121, other income of $Nil and interest expense of $3,657 for the six months ended June 30, 2023.
For the three months ended June 30, 2024, we incurred losses from continuing operations of ($328,922). For the six months ended June 30, 2024, we incurred losses from continuing operations of ($624,386). For the three months ended June 30, 2023, we generated income from continuing operations of $8,836. For the six months ended June 30, 2023, we generated from continuing operations of $7,007.
For the three months ended March 31, 2024 and 2023, we incurred losses from continuing operations of ($295,465) and ($8,173), respectively.
For the three and six months ended June 30, 2024, we generated net income of $277,927 from discontinued operations that resulted from our sale of DLT Resolution Corp in April 2024. For the three months ended June 30, 2023, we generated ($22,067) of net losses from discontinued operations that was DLT Resolution Corp., which had minimal activity. For the six months ended June 30, 2023, we generated $1,243,387 of net income from discontinued operations that was primarily from our sales of DLT Data Services Inc. and Union Strategies Inc, our two former subsidiaries.
For the three months ended March 31, 2024, we generated net income of Nil from discontinued operations. For the year ended December 31, 2023, we generated $1,265,454 of net income from discontinued operations.
We generated a ($295,465$50,995) Net Loss for the three months ended MarchJune 31,30, 2024, compared to $758,877($13,231) for the three months ended June 30, 2023. We generated a ($346,549) Net Loss for the six months ended June 30, 2024, compared to $1,250,394 of Net Income for the threesix months ended MarchJune 31,30, 2023. The Net Income in 2023 was primarily the result of net income from discontinued operations in the amount of $1,265,454.$1,243,387 compared to Nil$277,927 from discontinued operations for the threesix months ended MarchJune 31,30, 2024.
As of MarchJune 31,30, 2024, we had total current assets of $94,722$600,851 and current liabilities of $345,876 creating a working capital deficit of $251,154.$326,598. As of December 31, 2023, we had $727 cash on hand and total liabilities of $263,212. We must secure additional funds in order to continue our business.
Net cash used in operating activities was ($16,670$196,001) during the threesix months ended MarchJune 31,30, 2024 compared to ($161,881$108,576) for the same period in 2023. Net cash usedprovided inby discontinued operating activities was ($3,815)$29,843 for the threesix months ended MarchJune 31,30, 2024 compared to $158,278$120,454 in net cash provided by discontinued operations for the threesix months ended MarchJune 31,30, 2023.
No cash was used in investing activities during the threesix months ended MarchJune 31,30, 2024 and 2023.
During the threesix months ended MarchJune 31,30, 2024, the Company provided $69,659$764,639 cash from financing activities, which resulted from sales of shares of our Common Stock. During the threesix months ended MarchJune 31,30, 2023, the Company used $6,532$Nil of cash in financing activities.
DLTI insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding DLTI (13F)
None of the 59 investors we track reported a position in their latest 13F.