Core Insights - Creatd, Inc. has signed a Letter of Intent to acquire Air Charter Advisors, Inc., enhancing its position in the aviation sector [1][4] - The acquisition is valued between $3 million and $6 million and is expected to close within 60 days, following due diligence [4][8] - This move follows Creatd's recent acquisition of Flyte for $8.3 million, indicating a strategic focus on consolidating aviation assets [1] Company Overview - Air Charter Advisors specializes in private jet charter, aircraft management, and consulting, with a strong reputation for safety and premium service [6] - Flyte, a subsidiary of Creatd, offers regional and international private flight services and is focused on a shared services model to support high-growth operators [7] - Creatd, Inc. is a publicly traded investment firm that acquires and grows founder-led companies in aviation, media, and advisory services [9] Strategic Integration - The acquisition will allow Flyte to expand its customer base and diversify service offerings while maintaining Air Charter Advisors as an independent entity [2][3] - Air Charter Advisors will benefit from Flyte's shared services infrastructure, including finance, compliance, IT, and AI-powered optimization tools [3][5] - The deal is part of a broader strategy by Creatd to integrate aviation companies with complementary capabilities, aiming to create a comprehensive aviation network [5]

Core Insights - Creatd's subsidiary Flyte has launched an AI-powered platform for private travel, featuring two live offerings: Flyte Luxe and Flyte Hops, with a third, Flyte Escapes, expected soon [1][2] - The launch is part of Creatd's strategy to acquire and scale high-potential businesses through centralized infrastructure in finance, compliance, logistics, and technology [2][3] - Flyte aims to enhance the booking experience using AI for real-time pricing and personalized recommendations, while automating operational workflows to streamline the traditionally labor-intensive private air travel process [2][4] Company Overview - Flyte is positioned as a modern air mobility company, integrating technology and operational efficiency to serve both travelers and providers [2][3] - The platform is designed to eliminate friction in the booking process and is equipped with centralized systems and shared services, making it attractive for boutique private brokerages [3][4] - Flyte operates Flyte Luxe, a premium global charter service, and Flyte Hops, a regional air taxi service, with plans to launch Flyte Escapes, a luxury travel experience [6] Technological Integration - Flyte is described as a full-stack operational engine, transforming the private flight booking process and the overall industry operations [4] - The platform is currently available as a progressive web app on iOS and Android, with native mobile apps set to launch in the next quarter [4] - Flyte Luxe offers premium aircraft access and white-glove service, while Flyte Hops focuses on short-haul efficiency using eco-conscious aircraft [6]

Revenue and Financial Performance - Revenue for the nine months ended September 30, 2023, was $2,123,364, a decrease of 47% compared to $3,997,490 for the same period in 2022 [386]. - Cost of revenue decreased by 62% to $1,809,974 for the nine months ended September 30, 2023, down from $4,771,151 in the prior year [388]. - Operating expenses for the nine months ended September 30, 2023, were $18,660,455, a decrease of 7.6% from $20,205,866 in 2022 [389]. - Net loss for the nine months ended September 30, 2023, was $(23,304,137), compared to a net loss of $(25,112,331) for the same period in 2022 [392]. - The working capital deficit increased to $(21,329,846) as of September 30, 2023, from $(13,728,152) at December 31, 2022, an increase of $7,601,694 [393]. - Net cash used in operating activities improved by $10,335,705 to $(3,384,288) for the nine months ended September 30, 2023 [394]. - Net cash provided by financing activities was $2,434,823 for the nine months ended September 30, 2023, compared to $11,061,905 in the same period of 2022 [396]. - The Company expects to achieve cash flow breakeven within a year, driven by a recapitalization plan projected to be fully implemented by the end of Q4 [385]. Strategic Acquisitions and Business Development - The company has made strategic acquisitions to diversify revenue streams and enhance profitability, focusing on cost synergies and operational efficiencies [341]. - The Company acquired 100% of Seller's Choice, LLC for an undisclosed amount on September 11, 2019, and settled the Seller's Choice Note for $799,000 on March 3, 2022 [351]. - The Company acquired 100% of Dune, Inc. on May 30, 2023, consolidating its operations in the financial statements [366]. - The Company raised $1,500,000 through securities purchase agreements with Dorado Goose LLC on January 18, 2023, including an unsecured debenture and common stock [369]. Product and Service Offerings - Creatd, Inc. has over 1.5 million registered creators on its Vocal platform, which has become a key revenue source through creator subscriptions and microtransactions [321]. - The Vocal+ subscription service is priced at approximately $10 per month, providing a scalable source of monthly recurring gross revenue for the company [342]. - The company’s Consumer Products Group has grown significantly, contributing to revenue through brands like Camp, Dune, Basis, and Brave, with a focus on direct-to-consumer strategies [328]. - Creatd's Vocal for Brands unit leverages first-party data to create targeted marketing campaigns, enhancing brand visibility and engagement [327]. - Vocal takes platform processing fees ranging from approximately 3% to 7% on transactions, which are designed to support creators [342]. - Creatd's revenue model includes e-commerce sales from its owned brands and revitalizing legacy media content for new formats [343]. Management and Corporate Governance - The Company appointed Mr. Eric Pickens as Chief Financial Officer effective May 22, 2023, to enhance financial strategy [384]. - The Company plans to pay cash bonuses totaling $218,750 to key management members, with additional monthly housing stipends of $6,300 for two executives [374]. - The Company approved the Creatd, Inc. 2022 Omnibus Securities and Incentive Plan, allowing for the issuance of up to 30,000,000 common shares plus annual increases [370]. Corporate Changes and Stock Information - On February 5, 2016, the Company completed a merger with Jerrick Ventures, Inc., acquiring all outstanding capital stock in exchange for 475,000 shares of common stock [346]. - The Company changed its name to Jerrick Media Holdings, Inc. on February 28, 2016, to reflect its new business strategy following the merger [349]. - The Company executed a one-for-twenty reverse stock split on July 30, 2019, reducing the number of authorized common stock shares proportionately [350]. - The Company increased its authorized shares of common stock to 100,000,000 on July 13, 2020 [352]. - The Company’s common stock is quoted on the OTCQB Marketplace under the symbol "VOCL" effective April 4, 2023 [370]. - The Company issued 800,000 shares of common stock to the Investor as part of the Investment Agreement on October 20, 2022 [381]. Innovation and Future Plans - The company is committed to innovation and scalability, utilizing a capital-light infrastructure to continuously improve the Vocal platform [323]. - Creatd's IP Development and Production efforts aim to adapt creator content for various media, including television and podcasts, expanding audience reach [333]. - The company utilizes first-party data to tailor marketing campaigns, improving user engagement and retention rates [336].

Revenue Generation - Creatd, Inc. has over 1.5 million registered creators on its Vocal platform, which has become a key revenue source through subscriptions and microtransactions [280]. - The Vocal+ subscription service is priced at approximately $10 per month, providing a scalable source of monthly recurring gross revenue for the company [301]. - Vocal generates platform processing fees ranging from approximately 3% to 7% on transactions, further diversifying revenue streams [301]. - The establishment of Vocal for Brands allows Creatd to create targeted marketing campaigns, increasing visibility and revenue for client brands [284]. - The company’s Consumer Products Group has grown significantly, contributing to revenue through brands like Camp, Dune, Basis, and Brave, with a focus on direct-to-consumer strategies [287]. - Creatd's IP Development and Production efforts aim to adapt creator content for various media, expanding audience reach and engagement [292]. - The company maintains an exclusive license to leverage stories on Vocal for various media adaptations, enhancing its revenue potential [302]. Financial Performance - Revenue for the six months ended June 30, 2023, was $1,685,509, a decrease of 43% from $2,974,639 in the same period of 2022 [346]. - Cost of revenue decreased by 57% to $1,450,274 for the six months ended June 30, 2023, compared to $3,366,589 in 2022 [347]. - Operating expenses increased to $16,659,487 for the six months ended June 30, 2023, from $14,611,058 in 2022, primarily due to stock-based compensation [348]. - Loss from operations for the six months ended June 30, 2023, was $16,424,252, compared to $15,003,008 in the same period of 2022 [349]. - Net loss for the six months ended June 30, 2023, was $20,421,383, compared to a net loss of $15,586,286 in 2022 [351]. - Working capital deficit increased to $20,023,839 as of June 30, 2023, from $13,728,152 at December 31, 2022 [352]. - Net cash used in operating activities for the six months ended June 30, 2023, was $3,190,572, an improvement of $7,429,883 from the same period in 2022 [353]. - Net cash provided by financing activities for the six months ended June 30, 2023, was $2,338,549, compared to $8,778,934 in 2022 [355]. Strategic Initiatives - The company leverages first-party data to create personalized marketing campaigns, improving user engagement and retention rates [295]. - Creatd's acquisition strategy has led to the integration of complementary businesses, enhancing profitability and operational efficiencies [300]. - The company is committed to continuous improvement of the Vocal platform, utilizing a capital-light infrastructure to enhance scalability and innovation [282]. - The Company expects to achieve cash flow breakeven within a year, driven by a recapitalization plan projected to be fully implemented by the end of Q3 [344]. - The Company plans to continue reducing expenses while focusing on organic revenue growth throughout 2023 [353]. Corporate Actions - On February 5, 2016, the Company completed a merger with Jerrick Ventures, Inc., acquiring all outstanding capital stock in exchange for 475,000 shares of common stock and assuming 33,415 shares of Series A Convertible Preferred Stock and 8,064 shares of Series B Convertible Preferred Stock [305]. - The Company changed its name to Jerrick Media Holdings, Inc. on February 28, 2016, to better reflect its new business strategy [309]. - On July 25, 2019, the Company executed a one-for-twenty reverse stock split, reducing the number of authorized common stock shares proportionately [310]. - The Company acquired 100% of Seller's Choice, LLC on September 11, 2019, and settled the Seller's Choice Note for $799,000 on March 3, 2022 [311]. - The Company increased its authorized shares of common stock to 100,000,000 on July 13, 2020 [312]. - The Company acquired 100% of Dune, Inc. on May 30, 2023, consolidating its operations in the Statements of Operations [325]. - The Company entered into a securities purchase agreement with Dorado Goose LLC on January 18, 2023, raising $1,500,000 through an unsecured debenture and common stock [327]. - The Company’s common stock is quoted on the OTCQB Marketplace under the symbol "VOCL" effective April 4, 2023 [329]. - The Company approved the Creatd, Inc. 2022 Omnibus Securities and Incentive Plan, allowing for the issuance of up to 30,000,000 common shares plus annual increases [330]. - The Company entered into an Investment Agreement with Coventry on October 20, 2022, allowing for the purchase of up to $15,000,000 of common stock over 36 months [337].

Revenue Generation - Creatd, Inc. has over 1.5 million registered creators on its Vocal platform, which has become a key revenue source through creator subscriptions and microtransactions [253]. - The Vocal+ subscription service is priced at approximately $10 per month, providing a scalable source of monthly recurring gross revenue for the company [274]. - The company's Consumer Products Group has grown significantly, contributing to revenue through brands like Camp, Dune, Basis, and Brave, with a focus on direct-to-consumer strategies [260]. - Vocal takes platform processing fees ranging from approximately 3% to 7% on transactions, enabling audience engagement and creator support [274]. - Creatd's revenue model includes e-commerce sales from its owned brands and revitalizing legacy media content, further diversifying its income sources [275]. - Digital subscription revenue decreased by 41%, while direct-to-consumer brand revenue increased by 61% [328]. - Total revenue for Q1 2023 was $986,145, a decrease of 27% from $1,348,738 in Q1 2022 [328]. Strategic Acquisitions - The company has a strategic acquisition strategy, enhancing its revenue streams and operational efficiencies through complementary business acquisitions [273]. - On February 5, 2016, the company completed a merger with Jerrick Ventures, Inc., acquiring all outstanding capital stock in exchange for 475,000 shares of common stock and assuming 33,415 shares of Series A Convertible Preferred Stock and 8,064 shares of Series B Convertible Preferred Stock [278][279]. - The company acquired 100% of Seller's Choice, LLC on September 11, 2019, and settled the Seller's Choice Note for $799,000 on March 3, 2022 [283]. - The company acquired 89% of Plant Camp, LLC on June 4, 2021, which has been included in the Statements of Operations since the acquisition date [287]. - As of January 25, 2023, the company acquired an additional 23% equity interest in Dune, Inc., bringing total ownership to 85% [291]. Financial Performance - Operating expenses for Q1 2023 were $13,685,073, up from $6,785,852 in Q1 2022, primarily due to stock-based compensation [332]. - Net loss for Q1 2023 was $15,955,525, compared to a net loss of $6,881,048 in Q1 2022 [335]. - Loss per share for Q1 2023 was $0.35, slightly improved from $0.36 in Q1 2022 [335]. - Cost of revenue decreased by 35% to $1,012,687 in Q1 2023 from $1,572,170 in Q1 2022 [331]. - The company reported current assets of $946,743, a decrease of $532,421 from $1,479,164 on December 31, 2022 [336]. - Current liabilities increased to $17,776,824, up by $2,569,508 from $15,207,316 at the end of 2022 [336]. - The working capital deficit widened to $16,830,081, an increase of $3,101,929 compared to a deficit of $13,728,152 at December 31, 2022 [336]. - Net cash used in operating activities for Q1 2023 was $2,858,058, a decrease of $2,184,071 from the same period in 2022 [337]. - Net cash provided by financing activities decreased to $2,073,886 in Q1 2023 from $4,527,972 in Q1 2022 [339]. Operational Strategies - The company is committed to leveraging first-party data to create personalized user experiences, which can lead to higher retention rates and improved user satisfaction [268]. - Creatd's Vocal for Brands unit specializes in creating organic marketing campaigns, leveraging first-party data to optimize audience targeting and increase brand visibility [257][259]. - The company continues to invest in research and development to enhance the Vocal platform, ensuring scalability and sustainability without incurring high operational costs [255]. - The company plans to continue reducing expenses and improving operational efficiency while focusing on organic revenue growth throughout 2023 [337]. - A managed pause in influencer marketing led to a 57% decrease in revenues from that segment [328]. - The company reduced marketing spend by almost 75% during the quarter [328]. - The company expects to achieve cash flow break-even within a year due to reduced operating expenses and a recapitalization plan [328]. - The company anticipates significant revenue growth following the implementation of its Q2 recapitalization plan [328]. Corporate Governance - The company changed its name to Jerrick Media Holdings, Inc. on February 28, 2016, to better reflect its new business strategy following the merger [281]. - On July 25, 2019, the company executed a one-for-twenty reverse stock split, reducing the number of authorized common stock shares proportionately [282]. - On January 18, 2023, the company entered into securities purchase agreements with Dorado Goose LLC, raising $1,500,000 through an unsecured debenture and common stock [296]. - The company has an investment agreement allowing the purchase of up to $15,000,000 of common stock over 36 months, with the purchase price set at 82% of the lowest volume weighted average price during the last ten trading days prior to a drawdown notice [305]. - The company issued a promissory note for $300,000 to an investor, with a purchase price of $255,000, to be used for general working capital purposes [306]. - The company approved the Creatd, Inc. 2022 Omnibus Securities and Incentive Plan, allowing for the issuance of up to 30,000,000 common shares plus annual increases through 2031 [297]. Market Risk - As of March 31, 2023, there were no off-balance sheet arrangements reported by the company [340]. - There have been no material changes in the company's exposures to market risk since December 31, 2022 [342].

Financial Performance - Revenue for the year ended December 31, 2022, was $4,796,474, an increase of $496,757 from $4,299,717 in 2021, driven by ecommerce growth[216] - The cost of revenue rose to $6,109,206 in 2022, up $809,169 from $5,300,037 in 2021, primarily due to increased supply side costs[217] - Operating expenses decreased to $27,718,380 in 2022 from $32,368,400 in 2021, a reduction of $4,650,020 attributed to lower marketing and R&D expenses[218] - The net loss for the year ended December 31, 2022, was $35,676,315, or a loss per share of $1.66, compared to a net loss of $37,379,153, or $2.98 per share in 2021[221] - The ecommerce business revenue grew significantly from $90,433 in 2021 to $1,456,593 in 2022, contributing to overall revenue growth[216] Assets and Liabilities - As of December 31, 2022, the company reported current assets of $1,479,164, a decrease of $2,996,078 from $4,475,242 in 2021[210] - The working capital deficit increased to $13,728,152 in 2022 from $945,773 in 2021, reflecting a rise of $12,782,379[210] - As of December 31, 2022, the Company had deferred revenue of $299,409, an increase from $234,159 in 2021[244] - The Company had deferred revenue recognized within the next twelve months, indicating ongoing customer commitments[244] Cash Flow - Net cash used in operating activities decreased to $16,805,429 in 2022 from $20,518,807 in 2021, reflecting a reduction in extraordinary cash outlays[211] - Net cash provided by financing activities was $13,405,624 in 2022, down from $17,615,915 in 2021, with significant contributions from the exercise of warrants and loans[214] Impairment Charges - The company recorded an impairment charge of $2,043,011 for intangible assets in 2022, compared to $688,127 in 2021[233] - The Company recorded an impairment charge of $1,433,815 for goodwill for the year ended December 31, 2022, compared to $1,035,795 for 2021[236] Accounting Policies - Revenue is recognized when control of the promised goods or services is transferred to customers, reflecting the expected consideration[243] - The Company utilizes a Monte Carlo simulation model and a binomial option model to compute the fair value of derivatives[242] - The Company evaluates its debt and equity issuances to determine if they qualify as derivatives for separate accounting[237] - The fair value of an option award is estimated using the Black-Scholes option valuation model, with assumptions based on historical data[247] - The Company has a relatively low forfeiture rate of stock-based compensation, with forfeitures recognized as they occur[245] Other Financial Information - During the year ended December 31, 2022, the Company recognized approximately $2.0 million related to a beneficial conversion feature[251] - The Company expects no material impact on its consolidated financial statements upon the adoption of ASU 2021-08[252]