Creatd, Inc. Unveils Q3 2024 Financial Results, Uplisting Plans, and Bitcoin Integration Strategy

Creatd, Inc. (OTC: CRTD) announced the release of its Q3 2024 financial results, highlighting substantial progress in liability reduction and balance sheet enhancement. The company continues to prioritize maximizing shareholder value through strategic debt minimization and cost optimization, positioning itself for a streamlined pathway to a national exchange uplisting, with the potential for multiple listings.

Operational and Financial Highlights for Q3 2024:

• Operational Infrastructure: Creatd has optimized its infrastructure to seamlessly integrate distressed assets, execute strategic stock swaps, and manage peer equity investments. The company continues to leverage its stock as currency for both public and private investments.
• Adaptable Technology: Creatd’s investments in machine learning and AI-driven technology continue to create synergies and operational efficiencies across its portfolio, driving value both for current assets and future acquisitions in the emerging growth space. The company has recently had dialogues with AI adaptive companies as potential acquisitions, particularly in the social media space.
• Crypto Market Strategy: In light of the strength in the cryptocurrency markets, Creatd will revisit its strategy to explore the integration of crypto into its transactional ecosystem. This includes potential acquisitions and partnerships to enable seamless crypto transactions, decentralized payment solutions, and tokenized membership models. Additionally, Creatd is in an ongoing discussion with a fintech crypto platform about a possible acquisition.
• Net Revenue: Reported net revenue of approximately $400,000 for the third quarter, remaining steady year over year.
• Cost of Revenue: Reduced cost of revenue led to an improved gross margin exceeding $330,000, reflecting ongoing efforts to streamline operations and enhance efficiency.
• Debt and Liabilities: Improved cash position and comprehensive debt restructuring have significantly strengthened the company's financial standing compared to previous quarters.

CEO Remarks:

“After years of navigating significant challenges, we are now witnessing the tangible results of our efforts. Creatd is experiencing a rapid evolutionary moment, benefiting not only our investors but all stakeholders,” said Jeremy Frommer, CEO of Creatd, Inc. “We are committed to a technology-driven approach to M&A, with plans to acquire up to $100 million in revenue over the next 12 months and to scale that to $500 million in the subsequent year.

As I’ve reiterated on many occasions, maintaining a tightly managed shareholder float of just 4 million shares issued and outstanding, with 2 million in street name, alongside 3 billion authorized shares, equips us to structure non-dilutive acquisitions that enhance shareholder net equity. This strategic setup allows for the execution of multiple spin-offs and the distribution of special dividends. All of this has been made possible thanks to the nearly unanimous approval from our shareholders during the August vote, which demonstrated overwhelming support for our vision.

I extend my deepest gratitude to our shareholders—none of this progress would be achievable without their trust and steadfast support of our strategic direction. Below you will find a list of the highlights.”

Key M&A and Equity-Building Initiatives:

• Murge E-commerce Partnership: We have secured a $50 million equity facility with Murge E-commerce Inc., through which Creatd will acquire a 49% stake. This transaction is structured as a non-dilutive, preferred equity deal and will integrate multiple high-revenue consumer product acquisitions. Expected to generate over $30 million in revenue and $8.5 million in EBITDA, these acquisitions will accelerate our path to $100 million in annual revenue within 18 months​.
• Cross-Holdings Transactions: Our Project 100 initiative has gained momentum, with completed strategic equity exchanges with companies like Hollywall Entertainment and Geopulse Exploration. These cross-holdings improve our net equity and set the stage for future spin-outs and special dividends, while solidifying our position for an uplisting​. We are in active discussions with a dozen more companies.

Spinning Out Vocal and OG Collection for True Valuation:

• Vocal Spin-Out: This strategic move aims to unlock the intrinsic value of Vocal, which is projected to raise significant capital and operate independently starting in 2025. By transitioning Vocal to a standalone entity, we will attract dedicated investors and better reflect its intrinsic value on Creatd's balance sheet​.
• OG Collection Expansion: We are harnessing our AI-driven archival asset, OG Collection, to generate new revenue streams by forming strategic partnerships, such as with The Powerhouse LLC, and through key initiatives like our acquisition of Studio96 and the launch of the AR-enabled art book, Centerfold. By integrating OG’s content into interactive art exhibitions and augmented reality projects, we are setting up OG Collection for a strategic spin-out, maximizing its valuation and appeal to investors​.

Building Net Equity through Strategic M&A:

Creatd’s recent M&A activities are designed to bolster our equity and financial standing. The Murge E-commerce transaction exemplifies our approach, as it brings in high-growth, EBITDA-positive assets under a shared-services model, optimizing operations and providing robust financial oversight. This structure enables Murge and Creatd to maximize synergies, scale efficiently, and deliver long-term shareholder value.

Path to Uplisting:

Our strategic transactions and equity-building initiatives are key to achieving our near-term goal of relisting on the OTCQB. The imminent completion of our 2023 audit by Astra Audit & Advisory, LLC will be instrumental in restoring our SEC reporting status, a critical requirement for this relisting. Looking ahead, we are also focused on meeting the financial benchmarks necessary for a future uplisting to a national exchange. By enhancing our net equity through asset spin-outs and accretive M&A deals, we are building a solid foundation for sustainable growth and setting the stage for long-term market expansion.

Join Our Journey:

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