Business
Creatd, Inc. Announces Record Q2 2024 Financial Results
Creatd, Inc. Announces Record Q2 2024 Financial Results.
About this update from Creatd Inc.
[{"type":"text","content":"Debt and Liabilities:Convertible debt reduced by 90%, from $12 million to an implied $1.5 million.Approximately $3.7 million in pro-forma liabilities, with 25% in taxes and 50% owed to Meta.Operational and Financial Efficiency:Non-GAAP adjusted loss from operations fell by 85% for the six months ending June 30, from $5.9 million in 2023 to just over $894,000 in 2024.Operational expenses reduced by 69% year-over-year, from $6.2 million in 2023 to $1.8 million in 2024.Creatd, Inc. (OTC: CRTD), a leading creator-first technology company, today announced record financial results for the second quarter ended June 30, 2024.CEO RemarksOver the past quarter, Creatd has made significant strides in empowering creators and entrepreneurs through investments in technologies like community publishing platform Vocal, and the AI-driven, archival company OG Collection, Inc. On the heels of the recently-announced HWAL transaction, we will continue to seek out collaborations with like-minded creator-first companies, particularly in the public markets and trading on the OTC.Moving forward, mergers and acquisitions will be crucial for our growth strategy, adding to our portfolio of other creator-related assets. This approach enhances net equity, strengthens balance sheets, and creates value for investors. By investing across artificially-distressed assets, we ensure a solid foundation for exponential growth.As our financials indicate, we have strengthened our balance sheet by reducing convertible debt a record 90%, from $12 million to an implied $1.5 million, with half of that held by insiders and affiliates. The remaining debt is on friendly terms.Having nearly eliminated all debt, we are left with a number of payables and accrued tax liabilities. About 25% of these liabilities are taxes, while another 50% is owed to our largest vendor, Meta, with whom we have a ten-year relationship.With approximately $3.7 million of these liabilities on a pro-forma basis, the Company will vigorously pursue its M&A strategy to create net equity in excess of $5 million, by acquiring approximately $9 million in value. The $9 million covers both the $3.7 million in liabilities, creating the required $5 million of net equity to uplist, while lowering the cash needed to raise to less than $5m.Financial HighlightsBalance Sheet: The company had historical positive gr...