- Gross revenues increased 45% YoY
- Net revenues increased 67% YoY
- Operating expenses decreased 10% YoY
NEW
YORK, Aug. 15, 2022 /PRNewswire/ -- Creatd, Inc.
(Nasdaq CM: CRTD) ("Creatd" or the "Company"), a creator-first
holding company today reported its financial results for the second
quarter ended June 30, 2022. For the
second quarter, Creatd grew its gross revenues by 45% to
$3.6MM and is currently tracking to
achieve between $15MM - $20MM in gross revenues for the year, above
its previously stated guidance. During the quarter, net revenues
grew to over $1.6MM, reflecting a 67%
increase year-over-year. As the Company continues to navigate
external headwinds, cost-cutting initiatives have been implemented
and designed to streamline workflows and lower overall operating
costs.
Savings generated as a result of the Company's second quarter
2022 cost-cutting measures will be reinvested into the Company to
promote its growth and expansion and increase shareholder value.
These investments will fuel numerous planned initiatives including:
expanding Creatd Labs' technology stack; ramping up its marketing
and data analysis; and growing Creatd Ventures' CPG brand
portfolio. At the same time, the Company expects to further reduce
operating expenses as it continues to optimize and reduce its
marketing expenditure and scrutinize many of the contributing
expenses within general & administrative expenses. Already, the
Company has, subsequent to the second quarter, taken steps to
reduce headcount materially to gain efficiencies, integrate
acquired operations, and manage future expenses.
Additionally, the Company has announced that, effective on or
before August 31, 2022, Jeremy Frommer, currently the Company's
Executive Chairman, will be appointed as Chief Executive Officer,
in addition to maintaining his position as Chairman of the Board.
This announcement comes following a notification of intent of
resignation received from Laurie
Weisberg, Creatd's Chief Executive Officer, who will step
down from the CEO position as well as from the Company's Board of
Directors. Justin Maury, the
Company's co-founder and COO, has been approved to join the board
to replace her seat. This is expected to be effectuated shortly.
While serving as a director, Mr. Maury will maintain his current
role as Creatd's Chief Operating Officer.
Commented Creatd CEO Jeremy
Frommer, "As a public company in the microcap space, we are
subject to extreme volatility in our stock price, financing, and
regulatory processes that can often take our management team's
focus off of the broad mission to generate value for Creatd's
shareholders, of which I am the largest. We recently withdrew a
Rights Offering, due to what I firmly believe is a fast money
marketplace that predominantly does not benefit shareholders.
Instead, the space is seemingly riddled with obstacles,
bureaucracy, and often bad actors. While the Rights Offering
expansion plan would have exponentially accelerated Creatd's
revenues and leveraged a rapidly approaching break-even cash flow
moment, in its absence the Company can nevertheless continue to
progress at the current pace of revenue expansion, and take
advantage of available funding structures. But that is not my
preference. Instead, I want to expand revenues rapidly given the
inflection point the company is at, which was the very impetus for
the Rights Offering. I am obligated now to work to maximize
shareholder value, by exploring all alternatives, resources, and
networks to accomplish as much. Part of that process includes
spinning out assets from Creatd Studios, in particular the OG
Collection, Inc. as well as the potential privatization of other
assets."
About Creatd
Creatd, Inc. (Nasdaq CM: CRTD) is a creator-first technology
holding company and the parent company of the Vocal platform. Our
mission is to empower creators, entrepreneurs, and brands through
technology and partnership. We accomplish this through Creatd's
four business pillars: Creatd Labs, Creatd Partners, Creatd
Ventures, and Creatd Studios.
Creatd: https://creatd.com;
Creatd IR: https://investors.creatd.com;
Vocal Platform: https://vocal.media;
Investor Relations Contact: ir@creatd.com
Forward-Looking Statements
Any statements that are not historical facts and that express,
or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but
not always, indicated through the use of words or phrases such as
"will likely result," "are expected to," "will continue," "is
anticipated," "estimated," "intends," "plans," "believes" and
"projects") may be forward-looking and may involve estimates and
uncertainties which could cause actual results to differ materially
from those expressed in the forward-looking statements. We caution
that the factors described herein could cause actual results to
differ materially from those expressed in any forward-looking
statements we make and that investors should not place undue
reliance on any such forward-looking statements. Further, any
forward-looking statement speaks only as of the date on which such
statement is made, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of anticipated or unanticipated events or circumstances.
New factors emerge from time to time, and it is not possible for us
to predict all of such factors. Further, we cannot assess the
impact of each such factor on our results of operations or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. This press release is qualified in its
entirety by the cautionary statements and risk factor disclosure
contained in our Securities and Exchange Commission filings.
Creatd, Inc.
Condensed Consolidated Balance Sheets
|
|
|
|
June 30,
2022
|
|
|
December 31,
2021
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
Cash
|
|
$
|
1,556,663
|
|
|
$
|
3,794,734
|
|
Accounts receivable,
net
|
|
|
379,312
|
|
|
|
337,440
|
|
Inventory
|
|
|
429,754
|
|
|
|
106,403
|
|
Marketable
securities
|
|
|
48,646
|
|
|
|
-
|
|
Prepaid expenses and
other current assets
|
|
|
186,883
|
|
|
|
236,665
|
|
Total Current Assets
|
|
|
2,601,258
|
|
|
|
4,475,242
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
250,915
|
|
|
|
102,939
|
|
Intangible
assets
|
|
|
2,526,763
|
|
|
|
2,432,841
|
|
Goodwill
|
|
|
1,383,785
|
|
|
|
1,374,835
|
|
Deposits and other
assets
|
|
|
1,169,329
|
|
|
|
718,951
|
|
Minority investment in
businesses
|
|
|
-
|
|
|
|
50,000
|
|
Operating lease right
of use asset
|
|
|
2,197,394
|
|
|
|
18,451
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
10,129,444
|
|
|
$
|
9,173,259
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
4,899,108
|
|
|
$
|
3,730,540
|
|
Share
liability
|
|
|
31,080
|
|
|
|
-
|
|
Convertible Notes, net
of debt discount and issuance costs
|
|
|
2,291,010
|
|
|
|
159,193
|
|
Current portion of
operating lease payable
|
|
|
149,830
|
|
|
|
18,451
|
|
Note payable, net of
debt discount and issuance costs
|
|
|
1,863,831
|
|
|
|
1,278,672
|
|
Deferred
revenue
|
|
|
262,583
|
|
|
|
234,159
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
9,497,442
|
|
|
|
5,421,015
|
|
|
|
|
|
|
|
|
|
|
Non-current Liabilities:
|
|
|
|
|
|
|
|
|
Note payable
|
|
|
31,417
|
|
|
|
63,992
|
|
Operating lease
payable
|
|
|
2,100,818
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total Non-current Liabilities
|
|
|
2,132,235
|
|
|
|
63,992
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
11,629,677
|
|
|
|
5,485,007
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity (Deficit)
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001
par value: 20,000,000 shares authorized
|
|
|
|
|
|
|
|
|
Series E Preferred
stock, $0.001 par value: 8,000 shares authorized; 500 and 500
shares issued and outstanding,
respectively
|
|
|
-
|
|
|
|
-
|
|
Common stock par value
$0.001: 100,000,000 shares authorized; 20,254,839
issued and 20,249,182 outstanding as of June
30, 2022 and 16,691,170
Outstanding 16,685,513 outstanding as of
December 31, 2021
|
|
|
20,255
|
|
|
|
16,691
|
|
Additional paid in
capital
|
|
|
122,068,892
|
|
|
|
111,563,618
|
|
Less: Treasury stock,
5,657 and 5,657 shares, respectively
|
|
|
(62,406)
|
|
|
|
(62,406)
|
|
Accumulated
deficit
|
|
|
(124,314,530)
|
|
|
|
(109,632,574)
|
|
Accumulated other
comprehensive income
|
|
|
(107,881)
|
|
|
|
(78,272)
|
|
Total Creatd, Inc.
Stockholders' Equity
|
|
|
(2,395,670)
|
|
|
|
1,807,057
|
|
Non-controlling
interest in consolidated subsidiaries
|
|
|
895,437
|
|
|
|
1,881,195
|
|
|
|
|
(1,500,233)
|
|
|
|
3,688,252
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
(Deficit)
|
|
$
|
10,129,444
|
|
|
$
|
9,173,259
|
|
Creatd, Inc.
Condensed Consolidated Statements of Operations and
Comprehensive Loss
(Unaudited)
|
|
|
|
For the
Three Months
Ended
|
|
|
For the
Three Months
Ended
|
|
|
For the
Six Months
Ended
|
|
|
For the
Six Months
Ended
|
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
1,625,901
|
|
|
$
|
970,857
|
|
|
$
|
2,974,639
|
|
|
$
|
1,714,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
1,794,419
|
|
|
|
731,309
|
|
|
|
3,366,589
|
|
|
|
1,940,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin (loss)
|
|
|
(168,518)
|
|
|
|
239,548
|
|
|
|
(391,950)
|
|
|
|
(225,945)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
224,512
|
|
|
|
56,598
|
|
|
|
451,166
|
|
|
|
385,450
|
|
Marketing
|
|
|
1,277,510
|
|
|
|
4,194,524
|
|
|
|
3,369,531
|
|
|
|
6,237,179
|
|
Stock based
compensation
|
|
|
2,141,218
|
|
|
|
1,940,250
|
|
|
|
3,222,010
|
|
|
|
3,510,489
|
|
General and
administrative
|
|
|
4,181,666
|
|
|
|
2,428,971
|
|
|
|
7,568,051
|
|
|
|
3,967,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
7,824,906
|
|
|
|
8,620,343
|
|
|
|
14,610,758
|
|
|
|
14,100,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(7,993,424)
|
|
|
|
(8,380,795)
|
|
|
|
(15,002,708)
|
|
|
|
(14,326,792)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
-
|
|
|
|
-
|
|
|
|
99
|
|
|
|
-
|
|
Interest
expense
|
|
|
(20,360)
|
|
|
|
(60,760)
|
|
|
|
(34,256)
|
|
|
|
(259,431)
|
|
Accretion of debt
discount and issuance cost
|
|
|
(623,531)
|
|
|
|
(354,199)
|
|
|
|
(647,008)
|
|
|
|
(851,364)
|
|
Derivative
expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(100,502)
|
|
Change in derivative
liability
|
|
|
-
|
|
|
|
(65,442)
|
|
|
|
3,729
|
|
|
|
(262,831)
|
|
Impairment of
investment
|
|
|
(50,000)
|
|
|
|
(62,733)
|
|
|
|
(50,000)
|
|
|
|
(62,733)
|
|
Settlement of vendor
liabilities
|
|
|
(17,392)
|
|
|
|
-
|
|
|
|
(2,867)
|
|
|
|
92,909
|
|
Gain on extinguishment
of debt
|
|
|
-
|
|
|
|
82,431
|
|
|
|
-
|
|
|
|
286,009
|
|
Loss on marketable
securities
|
|
|
(231)
|
|
|
|
-
|
|
|
|
(231)
|
|
|
|
-
|
|
Gain on extinguishment
of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
147,256
|
|
|
|
-
|
|
Gain on forgiveness of
debt
|
|
|
-
|
|
|
|
279,022
|
|
|
|
-
|
|
|
|
279,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses), net
|
|
|
(711,514)
|
|
|
|
(181,681)
|
|
|
|
(583,278)
|
|
|
|
(878,921)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
provision
|
|
|
(8,704,938)
|
|
|
|
(8,562,476)
|
|
|
|
(15,585,986)
|
|
|
|
(15,205,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(8,704,938)
|
|
|
|
(8,562,476)
|
|
|
|
(15,585,986)
|
|
|
|
(15,205,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest in net loss
|
|
|
367,872
|
|
|
|
432
|
|
|
|
985,758
|
|
|
|
432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss attributable to Creatd,
Inc.
|
|
|
(8,337,066)
|
|
|
|
(8,562,044)
|
|
|
|
(14,600,228)
|
|
|
|
(15,205,281)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed
dividend
|
|
|
-
|
|
|
|
(410,750)
|
|
|
|
(81,728)
|
|
|
|
(410,750)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common
shareholders
|
|
$
|
(8,337,066)
|
|
|
$
|
(8,972,794)
|
|
|
$
|
(14,681,956)
|
|
|
$
|
(15,616,031)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(8,704,938)
|
|
|
|
(8,562,476)
|
|
|
|
(15,585,986)
|
|
|
|
(15,205,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation
gain (loss)
|
|
|
(24,659)
|
|
|
|
(552)
|
|
|
|
(29,609)
|
|
|
|
(7,863)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
|
|
$
|
(8,729,597)
|
|
|
$
|
(8,563,028)
|
|
|
$
|
(15,615,595)
|
|
|
$
|
(15,213,576)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per-share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
|
$
|
(0.41)
|
|
|
$
|
(0.81)
|
|
|
$
|
(0.77)
|
|
|
$
|
(1.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares
outstanding
|
|
|
20,233,585
|
|
|
|
11,081,354
|
|
|
|
18,977,745
|
|
|
|
10,465,815
|
|
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multimedia:https://www.prnewswire.com/news-releases/creatd-announces-record-gross-revenues-of-3-6mm-for-its-second-quarter-2022--and-nears-break-even-gross-profit-margins-raises-full-year-gross-revenue-guidance-to-15mm-20mm-301605986.html
SOURCE Creatd, Inc.