Financial Performance - Net revenues for Q3 2024 were $2.4 million, down 26.4% from $3.3 million in Q3 2023[4] - Gross profit margins decreased to 46.0% from 52.3% year-over-year, primarily due to fixed costs and lower digital revenue[4] - The net loss for Q3 2024 was $3.5 million, an improvement from a net loss of $5.4 million in Q3 2023[5] - Net loss per diluted share improved to $1.63 from $14.55 a year ago[5] - Net loss for September 30, 2024, was $7,735,452, compared to a net loss of $6,528,082 for the same period in 2023[9] - The company reported a net cash used in operating activities of $3,293,269 for the quarter ending September 30, 2024, compared to $6,457,639 for the same period in 2023[9] Expenses - General and administrative expenses decreased by $1.3 million to $2.4 million compared to $3.7 million a year ago[4] - Sales and marketing expenses were $655,000, down 43.5% from $1.2 million in the previous year[4] Future Outlook - The company expects a benefit of approximately $3.1 million to net earnings in fiscal 2025 due to reduced interest expenses starting Q1 2025[5] - A projected increase of over $4.5 million in earnings is anticipated from the conclusion of amortized non-cash expenses by the end of 2024[3] - The company plans to launch new initiatives including AVO and limited-edition online products to drive growth[3] Assets and Liabilities - Cash and cash equivalents increased to $289,346 as of September 30, 2024, from $20,773 at the end of December 31, 2023[10] - Total current assets rose to $6,397,774 as of September 30, 2024, up from $5,559,687 at December 31, 2023[10] - Inventory increased to $5,040,518 as of September 30, 2024, compared to $4,849,600 at December 31, 2023[10] - Total liabilities decreased to $23,274,075 as of September 30, 2024, from $23,733,441 at December 31, 2023[11] - Stockholders' equity was $19,046 as of September 30, 2024, significantly down from $1,602,592 at December 31, 2023[13] - The total assets decreased to $23,293,121 as of September 30, 2024, from $25,336,033 at December 31, 2023[12] Business Model - The company has a business model focused on direct-to-consumer and wholesale apparel, leveraging customer data for personalized marketing[14] Partnerships - Digital Brands Group partnered with VAYNERCOMMERCE to enhance digital revenue, which has already shown positive results[2]
Digital Brands Group(DBGI) - 2024 Q3 - Quarterly Results