CREATD(US:CRTD)2023-04-19 11:05Financial 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]