CREATD(US:CRTD)2023-08-14 20:01Revenue 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].