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."
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.
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.
Accounts receivable, net
Prepaid expenses and other current assets
Total Current Assets
Property and equipment, net
Deposits and other assets
Minority investment in businesses
Operating lease right of use asset
Liabilities and Stockholders' Deficit
Accounts payable and accrued liabilities
Convertible Notes, net of debt discount and issuance costs
Current portion of operating lease payable
Note payable, net of debt discount and issuance costs
Total Current Liabilities
Operating lease payable
Total Non-current Liabilities
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
Common stock par value $0.001: 100,000,000 shares authorized; 20,254,839
Additional paid in capital
Less: Treasury stock, 5,657 and 5,657 shares, respectively
Accumulated other comprehensive income
Total Creatd, Inc. Stockholders' Equity
Non-controlling interest in consolidated subsidiaries
Total Liabilities and Stockholders' Equity (Deficit)
Cost of revenue
Gross margin (loss)
Research and development
Stock based compensation
General and administrative
Total operating expenses
Loss from operations
Other income (expenses)
Accretion of debt discount and issuance cost
Change in derivative liability
Impairment of investment
Settlement of vendor liabilities
Gain on extinguishment of debt
Loss on marketable securities
Gain on extinguishment of debt
Gain on forgiveness of debt
Other income (expenses), net
Loss before income tax provision
Income tax provision
Non-controlling interest in net loss
Net Loss attributable to Creatd, Inc.
Net loss attributable to common shareholders
Currency translation gain (loss)
Basic and diluted loss per share
Weighted average number of common shares
SOURCE Creatd, Inc.
These press releases may also interest you