CREATD(US:CRTD)2023-11-15 01:02Revenue 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].