Spectrum Global Solutions Reports Over $4 Million in Revenue For First Quarter 2021, Narrows Operating Loss for Period

GLOBENEWSWIRE

Monday, May 17, 2021, 5:32 PM MDT

BOCA RATON, Fla., May 17, 2021 (GLOBE NEWSWIRE) -- Spectrum Global Solutions, Inc. (the "Company") (OTCQB:SGSI) reported financial results for the three months ended March 31, and provides a Management Discussion and Analysis.

The impact of COVID-19 was evident in the Company’s First Quarter revenues. However, our overall business performance has improved year over year. Here are some of the highlights from Q1 2021:

  • Operating loss was narrowed to $559k from over $900k for the same quarter 2020
    • Of this loss, $430k is related to corporate overhead and the cost of being public
    • $28k was related to one-time costs associated with the costs of acquisitions and financing related activities
  • Net Loss per share of $0.53 compared to $4.89
  • Operating loss from the business units was $112k compared to $193k – a 42% improvement
    • Approximately $99k of this loss is attributable to an A/R factoring line that the Company is currently seeking to convert to a traditional line of credit subsequent to the merger of High Wire
  • Management has been streamlined and overhead costs reduced
  • Funnel opportunities are up across all segments of the business
  • Customer sentiment has improved across all segments

After taking over in March, the management team led by CEO Mark Porter, worked as quickly as possible to assess, stabilize, and reorganize the business. While the Company believes this is a continuous process, it was particularly intensive in March and April. We believe that the improvement in our financial results is just the beginning, and that the transformation we have started will set the Company on solid footing for the future. Our plan is to go faster as the headwinds of COVID-19 begin to ease, and we work with our customers to deliver innovative solutions they need.

Our operating results for the Period ended March 31, 2021 and 2020 are summarized as follows:

     
Spectrum Global Solutions, Inc,    
Consolidated Statement of Operations    
  Three Month ended March 31,
   2021   2020 
Revenues $4,065,989  $5,216,346 
Operating expenses  4,617,308   6,155,150 
Loss from operations  (551,319)  (938,804)
Total other income (expense) (a)  (9,540,317)  (1,867,363)
Provision for income taxes  -   - 
Net loss from continuing operations  (10,091,636)  (2,806,167)
Net loss from discontinued operations  -   (725,535)
Net loss attributable to Spectrum Global Solutions  (10,091,636)  (3,531,702)
Less deemed dividend, Series A Preferred Stock extinguishment  83,987   - 
Net loss attributable to Spectrum Global Solutions common shareholders $(10,007,649) $(3,531,702)
     
Net loss per share, continuing operations $(0.53) $(3.89)
Net loss per share, discontinued operations $-  $(1.00)
Net loss per share $(0.53) $(4.89)
Basic and diluted weighted average shares outstanding  18,933,868   722,364 
     
(a) includes $2,470,000 of initial derivative expense $5,270,344 of change in fair value of derivative and $1,199,373 of loss on debt extinguishment the loss on debt extinguishment was a result of the conversion prices compared to market price on the date of conversion
 

Spectrum Global Solutions, Inc,   
Non-GAAPreconciliation of net loss   
 Three Month ended March 31,
  2021   2020 
Net loss attributable to Spectrum Global Solutions common shareholders$(10,007,649) $(3,531,702)
    
Add:   
Depreciation and amortization 13,520   13,961 
Stock based compensation 165,965   201,938 
Amortization of operating right of use asset 8,280   30,395 
Interest expense 94,704   413,360 
Loss on settlement of debt 1,199,373   190,902 
Amortization of discounts on convertible debentures and loans payable 175,855   388,982 
Loss on change in fair value of derivatives 5,270,344   813,630 
Exchange loss 5,706   - 
Initial derivative expense 2,470,000   - 
Loss on contract cancellation 164,950   - 
Loss on settlement of warrants 117,655   - 
Loss on fair value of additional shares 41,730   - 
Default and debt extension fees -   60,489 
Loss from discontinued operations -   725,535 
    
Less:   
Amortization of operating right of use liability (8,329)  (29,898)
Deemed divdend, Series A Preferred Stock extinguishment (83,987)  - 
    
Adjusted operating loss (non -GAAP)$(371,883) $(722,408)

About Spectrum Global Solutions

Spectrum Global Solutions operates through its subsidiaries, AW Solutions Puerto Rico, ADEX Corp and Tropical Communications. The Company is a leading provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. For more information about the Company and its technologies visit the Company’s public filings at www.SEC.gov or the Company’s website at https://SpectrumGlobalSolutions.com/.

About High Wire Networks.

For 20 years, High Wire Networks has been a trusted partner to VARs, MSPs, distributors, integrators, manufacturers, and telecom providers by enabling them to minimize overhead while extending delivery capabilities around the world. Our flexible workforce delivers vendor-agnostic technical field, professional and security services in more than 180 countries. Our services include design, installation, configuration, and support for unified communications, wired and wireless networks, cabling and infrastructure, and electrical systems. Our new Overwatch Managed Security Platform-as-a-Service enables our partners to deliver comprehensive cybersecurity that’s easy to sell and easy to buy for an affordable subscription. We also offer a variety of on-demand, rapid-response solutions with service levels ranging from two hours to the next business day for onsite break-fix and remote technical support. With High Wire Networks, partners Get Work Done. Learn more at http://www.highwirenetworks.com.

Forward-Looking Statements:

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.

Investor Relations

Spectrum Global Solutions

www.SpectrumGlobalSolutions.com/

561.672.7068

Media Relations

Susanna Song

Director of Marketing Communications

susanna.song@highwirenetworks.com

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