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, 2020.

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, 2020.





Revenue Recognition

Revenue is recognized when persuasive evidence of an agreement exists, the price is fixed or determinable, goods are delivered, or services performed and collectability is reasonably assured.





Going concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flow from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management's plans in regards to this matter include raising additional equity financing and borrowing funds under a private credit facility and/or other credit sources.





Principals of Consolidation

The consolidated financial statements represent the results of Union Strategies, Inc. ("USI") and DLT Resolution, Inc.; its wholly owned subsidiary, DLT Resolution Corp.; its 100%-owned subsidiary, DLT Data Services; and the assets, processes, and results therefrom of 1922861 Ontario Inc. Note 7 - Acquisition of 1922861 Ontario Inc.) All intercompany transactions and balances have been eliminated.





Plan of Operations

Liquidity and Capital Resources. As of December 31, 2020, we had $7,666 of cash on hand and total liabilities of $2,834,195. We must secure additional funds in order to continue our business. We were required to secure a loan to pay expenses relating to filing this report including legal, accounting and filing fees and may be required to secure additional financing to fund future filings. We believe that we will be able to obtain this loan from a current shareholder of the Company. 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 $2,160,606 and $463,325 in 2020 and 2019, respectively, with the increase attributable to the Company's acquisition of USI on January 30, 2020. USI contributed $1,756,687 in 2020 revenues. Total operating expenses were $1,410,748 during the year ended December 31, 2020 compared to $546,542 during the year ended December 31, 2019. The increase in operating expenses relates to the Company's acquisition of USI.






          9

  Table of Contents

Other Income (Expense): Other Expenses totaled ($45,873) during the year ended December 31, 2020 compared to ($801,227) during the year ended December 31, 2019. The reduction in other expenses relates primarily to one-time losses on an investment and a stock based liability in 2019.

Off-Balance Sheet Arrangements. We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Contractual Obligations. None

© Edgar Online, source Glimpses