Readers are cautioned that sure statements contained herein are forward-looking statements and ought to be learn at the side of our disclosures underneath the heading "Forward-Looking Statements" above. These statements are primarily based on present expectations and assumptions which are topic to dangers and uncertainties. This dialogue additionally ought to be learn at the side of the notes to our consolidated monetary statements contained in Item 8. "Financial Statements and Supplementary Data" of this Report. OPERATIONS OVERVIEW/OUTLOOK
The Company developed a doc known as the Creds Deck which gives a
description to potential purchasers of Digital Clarity’s worth proposition
http://www.dbmmgroup.com/wp-content/uploads/2020/11/Digital-Clarity-Creds-Deck_DB64F.pdf.
The fiscal yr 2022 has centered on a sluggish return to normalcy although companies have confronted monumental challenges over the previous few years, and DBMM's working enterprise Digital Clarity, isn't any exception. However, for context, it's value reminding buyers and shareholders, that Digital Clarity was acquired by DBMM as a cash-flow constructive enterprise with an excellent fame and business community, successful business awards. As acknowledged within the MD&As for a few years, the working enterprise is money move constructive, however the prices of sustaining a public firm far exceed the revenue in these early days. That was anticipated. That is the digital enterprise mannequin, although many digital corporations wouldn't have any working revenues whereas they construct the enterprise. Though the post-pandemic period nonetheless leaves scars, there may be additionally a possibility for lean organizations to make the most of the brand new and difficult panorama that may little doubt nonetheless affect the general financial system.
Most analysts are clear that as we head towards the top of 2022, the challenges
globally although totally different from the pandemic will nonetheless have an effect in 2023.
Businesses must take care of the after-effects of not solely the worldwide pandemic however new challenges. The backdrop as we enter 2023, it's clear that B2B leaders are bracing for financial upheaval. Concerns about inflation, increased rates of interest, provide chain shortages, and the prospect of a looming recession are already forcing go-to-market leaders to rethink their development methods.
Though the overall enterprise sentiment is pessimistic, Digital Clarity has
tailored its mannequin to repeatedly search to deal with areas that may enable the
enterprise not solely to outlive through the turmoil however thrive as we come out of the
difficult financial backdrop.
Digital Clarity has been pivoting throughout these difficult headwinds and dealing to construct upon its expertise within the B2B area and fascinating with prospects within the SaaS and Tech market. The firm can also be seeking to develop enterprise in Web3 and Ai sectors as corporations look to adapt to a altering enterprise buyer base.
WHY DIGITAL EXPERTS CONTINUE TO BE IN DEMAND
The world has modified. Digital is now throughout the cloth of on a regular basis life. As client markets plateau and are available underneath stress, the transfer by Digital Clarity to meet the wants of the business-to-business sector, is each well timed and has business development potential.
[[Image Removed: dbmm20221130_10qimg001.jpg]]
15
——————————————————————————–
The B2B purchaser journey is advanced. This is why consultants like Digital Clarity want
to be concerned from the beginning.
Savvy communication consultants like Digital Clarity produce concepts that form perceptions and develop markets. There has by no means been a greater time to navigate into theB2B Marketplace as demand for an skilled, protected pair of palms is required. This sector is rising quickly and the demand for experience and talent to assist companies in advertising their providers and merchandise is wanted. B2B digital advert spending is projected to succeed in$18.47 billion by 2024, it'll account for almost 50% of complete B2B advert spending that yr based on Insider Intelligence. A hybrid method to advertising in step with hybrid gross sales departments is anticipated to be essentially the most dominant gross sales technique by 2024 on account of shifts in buyer preferences and remote-first engagement based on McKinsey, The way forward for B2B gross sales Report 2022. Hybrid will drive as much as 50 % extra income by enabling broader, deeper buyer engagement and unlocking a extra various expertise pool than extra conventional fashions.
Winning B2B organizations are shifting to a extra hybrid gross sales pressure by
implementing actions that assist success.
To sustain with the ever-changing scene, digital advertising consultants want to remain in keeping with the evolving tech tendencies. Social media advertising corporations like ours work tirelessly to analysis shoppers and what makes them interact with manufacturers. We attempt to discover one of the best on-line options that may cater to our shopper's end-users queries within the best and most cost-efficient means attainable -- be it by growing new know-how or adapting to tendencies.
RELENTLESS DIGITAL GROWTH POSITIONS DIGITAL CLARITY AS A LEADER
The want for seasoned experience and perception is in big demand. Digital Clarity's energy, heritage, and attain in digital advertising places the DBMM model in an glorious place for funding and development. As the consumer-facing market turns into much more commoditized, the corporate's transfer to serving the enterprise sector (B2B) will see it leveraging expertise for development.
[[Image Removed: dbmm20221130_10qimg002.jpg]]
Though the pandemic is actually not over, the enterprise world entered right into a
interval of restoration in 2022. In the method, it is change into obvious that even when
the continued shift towards digital and cell promoting in B2B may decelerate
to a level, it is not going to cease.
16
——————————————————————————–
THE SHIFT TO DIGITAL IS PERMANENT
Despite slower development, digital will proceed to command a larger total share as extra B2B entrepreneurs make the everlasting shift from conventional promoting to on-line actions. One of essentially the most pronounced results the pandemic had on B2B advertising was exponentially accelerating its transition into digital. As the enterprise world begins recovering from the pandemic and returning to extra conventional fashions, this transition has slowed down. The previous yr has affirmed, nevertheless, that it is not going to cease.
HOW MACHINE LEARNING IS ENHANCING DIGITAL MARKETING STRATEGY
Digital Clarity applies technique to algorithmic primarily based machine studying instruments. The launch of
MACHINE LEARNING AND DIGITAL MARKETING
Because machine studying is getting used to resolve an enormous set of various issues with the assistance of knowledge, channels, content material, and context, as entrepreneurs, Digital Clarity stands to learn from this data and phenomenon as a complete. But, as the data we collect grows, digital advertising as we all know it's set to change. Digital Clarity can be on the forefront of this variation. PAY PER CLICK (PPC) CAMPAIGNS
With
Display Campaigns, and In-Market Audience to assist companies maximize
conversions, it’s clear that the way forward for PPC lies in machine studying.
To change into extra strategic and take PPC campaigns to the subsequent degree for its
purchasers, Digital Clarity:
? Get to grips with the metrics which are most dear to what you are promoting
? Understand obstacles that would get in the best way of assembly your objectives
? Know the underlying efficiency drivers to make extra strategic choices
SEARCH - OVERALL Search makes up half (52%) of promoting spend, growing on par at 15% to$4.3bn , subsequent is non-video show at$1.73bn (+9%), then video show$1.2bn (40%). Classifieds stays at$949m and different remained at$53.3m .
DIGITAL CLARITY EMBRACE
Machine studying and AI have grown at a fast tempo and are an integral a part of daily search promoting administration and planning. Though machine studying has been an integral a part of the advert world, what has been extra important has been the addition of Artificial Intelligence or AI. According to a latest report in TheHarvard Business Review by Deloitte, AI in Digital Marketing isn't just getting larger, it is getting much more persuasiveMIT researchers just lately unveiled a chip that may carry out inference utilizing neural community computations three to seven instances sooner than earlier chips, and with as much as 95 % much less energy consumption. Dozens of corporations engaged on new generations of AI chips-for use each in and outdoors of knowledge centers-are attracting important funding. These corporations raised greater than$1.5 billion in funding final yr, almost twice the quantity they raised the yr earlier than. 17
——————————————————————————–
DIGITAL CLARITY PERFECTLY POSITIONED FOR THE FUTURE
According to Gartner’s Digital Business Acceleration report: Where to Focus Now,
Enterprises have the intention of changing into extra digital on account of COVID-19.
[[Image Removed: dbmm20221130_10qimg003.jpg]]
SALES ARE GOING DIGITAL
Disruptive purchaser dynamics are rewriting the rulebook for B2B gross sales, demanding
digital-first engagement with prospects. The rise in digital gross sales can be
pushed by advertising that creates demand and belief in manufacturers.
This does not portend the eventual "dying of the gross sales rep," however it does sign drastic adjustments wanted within the vendor function. Sales leaders should ship important worth by means of digital and omnichannel gross sales fashions, aided by gross sales professionals who can steer self-learning prospects towards extra assured choices. Digital delivers this.
THE GROWTH OF THE DIGITAL OMNICHANNEL
Gartner analysis reveals a gradual shift of buyer preferences from in-person gross sales interactions to digital channels. B2B patrons spend solely 17% of the entire buy journey with gross sales reps. Because the typical deal includes a number of suppliers, a gross sales rep will get roughly 5% of a buyer's complete buy time. And 44% of millennials favor no gross sales rep interplay in any respect in a B2B setting. Sales leaders should ship important worth by means of digital and omnichannel gross sales fashions, aided by gross sales professionals who can steer self-learning prospects towards extra assured choices.
[[Image Removed: dbmm20221130_10qimg004.jpg]]
18
——————————————————————————–
OMNICHANNEL IS THE STANDARD, NOT THE EXCEPTION
Digital Clarity may also help organizations undertake the B2B Omnichannel. Eight in ten B2B leaders say that omnichannel is as or more practical than conventional strategies, a sentiment that has grown sharply within the final 2 years. Even as in-person engagement re-emerged as an possibility, patrons made clear they like a cross-channel combine, selecting in-person, distant, and digital self-serve interactions in equal measure. Increasing calls for from prospects, the proliferation of gross sales channels, the enhance in information availability, and the necessity to personalize content material have pushed the necessity for gross sales and advertising groups to work as one. In reality, 89 % of respondents now say that advertising and gross sales have to work intently collectively, extra so than ever earlier than. To assist allow and drive elevated gross sales, advertising groups have been busy. Fifty-two % of respondents say their corporations have performed in depth main analysis to enhance buyer expertise. Another 51 % have invested in new capabilities to allow customized advertising, whereas 45 % say their corporations have just lately re-evaluated the function of selling of their group total.
McKinsey says that the equilibrium isn’t any accident. As B2B patrons flexed to
distant and digital methods of participating, they discovered a lot to love. The use and
desire for e-commerce-self-serve, for example-has frequently grown yr on
yr.
[[Image Removed: dbmm20221130_10qimg005.jpg]]
Omnichannel is more practical than conventional gross sales fashions alone. As extra corporations allow face-to-face, distant, and e-commerce interactions, satisfaction with the gross sales mannequin has grown exponentially. More than 90 % of B2B corporations say their go-to-market mannequin is simply as or more practical than earlier than the pandemic started.
DIGITAL CLARITY PERFECTLY POSITIONED FOR GROWTH
Organizations must battle laborious to retain loyalty if buyer wants are not met: for instance, eight in ten B2B resolution makers say they'll actively search for a brand new provider if efficiency ensures. Buyers are extra prepared than ever earlier than to spend large by means of distant or on-line gross sales channels, with 35 % prepared to spend$500,000 or extra in a single transaction. Seventy-seven % of B2B prospects are additionally prepared to spend$50,000 or extra.
B2B prospects now recurrently use ten or extra channels to work together with suppliers.
Digital Clarity is a specialist in lots of of those channels and has been for a
variety of years. This experience, expertise, and belief will put Digital Clarity
entrance of thoughts for organizations as they search skilled recommendation.
19
——————————————————————————–
Some of the channels of focus are:
B2B DIGITAL MARKETING SERVICES
There isn’t any denying the final yr has proved difficult for Digital Marketing
Services.
That mentioned, the necessity for specialist advertising advisors is in demand.
——————————————————————————–
CONTENT MARKETING Content has change into a essential instrument within the advertising combine for nearly each B2B model. Nine out of ten B2B entrepreneurs are utilizing content material advertising methods to pull in new prospects. This yr, essentially the most profitable entrepreneurs have been already spending 40% or extra of their price range on their content material technique.
At its easiest, B2B content material advertising is when a model makes use of tales, concepts, and
insights to have interaction and affect a enterprise viewers.
[[Image Removed: dbmm20221130_10qimg007.jpg]]
There is a realization amongst B2B manufacturers that reasonably than being faceless organizations, they should inform their model's story and present a extra human aspect to their enterprise, endear and promote demand from different companies and prospects. The finest content material advertising campaigns again up these tales and concepts with sturdy insights: fascinating information factors, authentic analysis, and real-world examples that assist their prospects perceive a brand new pattern or problem and equip them with the instruments and finest practices to reply and thrive.
These information factors and analysis is utilized by Digital Clarity to assist
corporations in shaping their content material technique. Typically, areas that Digital
Clarity assist purchasers are:
? Blog posts – entrepreneurs who make running a blog a precedence are 13x extra more likely to
see a constructive ROI for his or her efforts. ? White papers - favored by 22% of enterprise leaders, these longer
research-based studies present extra in-depth data. Learn extra about
writing a compelling B2B advertising white paper right here.
? Short-form articles – loved by 37% of execs, these need to research-based
if they're to face out.
? Case research – these present patrons with reassurance additional down the shopping for
funnel and could be made sector-specific. Nearly half of all enterprise leaders
respect them.
? Infographics – these have change into probably the most in style content material advertising
instruments lately.
? Podcasts – more and more in style lead technology instruments with entrepreneurs trying
to ship thought management content material to patrons on the transfer.
? Videos – corporations utilizing video, expertise clickthrough charges which are 27%
increased and net conversion charges 34% larger than people who do not.
? Email – almost eight out of 10 entrepreneurs report see g a rise in e-mail
engagement over the previous 12 months of 2022.
? LinkedIn – generates greater than 50% of all social site visitors to B2B web sites &
blogs.
21
——————————————————————————–
CONTENT IS INFORMATION, AND DISCOVERABLE INFORMATION DRIVES REVENUE
Information drives buy ease and high-quality gross sales
All of this looping round and bouncing from one job to a different implies that
patrons worth suppliers that make it simpler for them to navigate the acquisition
course of.
In reality, Gartner analysis discovered that prospects who perceived the data they acquired from suppliers to be useful in advancing throughout their shopping for jobs have been 2.8 instances extra more likely to expertise a excessive diploma of buy ease, and 3 times extra probably to purchase a much bigger take care of much less remorse.
Digital Clarity has a course of that helps form their shopper’s content material to change into
extra discoverable data, and this will increase revenues.
[[Image Removed: dbmm20221130_10qimg008.jpg]]
Buyer enablement, or the provisioning of knowledge to prospects in a means that
allows them to finish data on-line, like gathering data or
making a purchase order, is an space that Digital Clarity are serving to organizations.
KEY MILESTONES As the market circumstances within the client market cool barely, the group at Digital Clarity has been busy pivoting their enterprise mannequin to deal with the necessity within the 2b2 enterprise sector. This is a extra strategic providing for potential prospects.
Digital Clarity has began providing a wider array of providers to it
fast-growing S firm within the US. Services embrace, LinkedIn technique, content material
positioning and search engine optimization.
Digital Clarity has attended a serious convergence summit with its shopper within the Unified Communication and Digital Transformation enviornment. This allowed the group to meet with the likes of SaaS CX suppliers, 8x8, Five9, and Mitel, amongst others. This can be an space of focus for the corporate into 2023. In October, Digital Clarity was a part of a choose group that a part of a panel that mentioned the affect of NFTs, Blockchain and the expansion of Web 3 and the Metaverse. The occasion was organized by main legislation agencyMemery Crystal , a part of Rosenblatt.
Digital Clarity has been on a big enterprise improvement push and attended
varied networking occasions in
Security hosted on the
and InpositiveTech.
Other examples are consultant of the variety of shopper base. DBMM’s
method utilizing a shopper’s analytics and executing an individualized mannequin to
enhance ROI because the prime goal, spans a variety of industries.
22
——————————————————————————–
Core business verticals for Digital Clarity embrace: B2B, SaaS, Digital
Transformation, FinTech, Unified Communication Companies and discretionary
recommendation for skilled service suppliers and consultants.
THE GROWTH OF DIGITAL MARKETING & CONSULTANCY SERVICES
The talent set traditionally owned by companies providing disciplines comparable to UX, design, creativity, customer-centric information analytics and buyer engagement is now being immersed with massive consultancy companies whose conventional bread and butter was Digital Transformation. Accenture, Deloitte, IBM,KPMG , McKinsey andPricewaterhouseCoopers rank amongst essentially the most aggressive gamers in buying and partnering with companies comparable to Digital Clarity. They current not solely a possibility for Digital Clarity however additionally a potential exit and funding alternative. Digital Clarity have continued to develop theirDigital Consulting and Strategy Planning providing. The ahead trying program is to be a acknowledged chief in this discipline and fulfill corporations in search of Digital Transformation for his or her originations.
THE NEED FOR PROFESSIONAL CONSULTANCY AND THE OPPORTUNITY FOR MASSIVE GROWTH
Four consultancies lead Ad Age's rating of the ten largest company corporations in the world. With mixed income of$13.2 billion , the advertising providers models of Accenture, PwC, IBM and Deloitte sit just under WPP, Omnicom, Publicis Groupe, Interpublic and Dentsu. Last yr, solely two consultancies-Accenture Interactive and IBM iX-made the highest 10. IBM iX was the primary to interrupt into the prime 10. Given the expertise of the group, Digital Clarity's advisory and consultancy is in demand. With the latest development in these enterprise areas, and the rise of consultancies, it's affirmation that Digital Clarity is headed in the suitable path for development
THE GROWTH OF DIGITAL TRANSFORMATION WORLDWIDE
The Global Digital Transformation Market measurement is anticipated to succeed in$1.3 billion by 2027, rising at a market development of 20.8% CAGR through the forecast interval. Digital transformation is taken into account because the utilization of digital know-how. Digitally reworked enterprises could be versatile to the altering technological panorama and might tackle abrupt shifts within the business, notably the one presently created by the COVID-19 pandemic; research present that the effectivity and price of adaptation of digitally reworked corporations to a post-pandemic period are comparatively bigger than standard companies. Source Digital Clarity may also help varied companies which have been significantly affected by the worldwide outbreak of the COVID-19 pandemic. One of the numerous challenges for the worldwide financial system in 2020 was to facilitate enterprise continuity within the midst of social distancing pointers, lockdowns norms, work-from-home tradition, and different operational challenges. The lack of availability of digital methods, infrastructure, or instruments worsens the challenges for varied corporations that have been wanted to abruptly shift operations on-line or enable employees to work from their properties. The scenario, then again, resulted in a substantial surge in consciousness concerning the pressing requirement for digital transformation throughout a majority of the industries and created some profitable alternatives for the worldwide market. Companies are getting extra conscious of some great benefits of digital transformation, notably within the work-from-home tradition that wants a enterprise to permit the staff to simply be taught, collaborate and carry out organizational capabilities throughout distant places.
THE IMPORTANCE OF STRATEGIC MARKETING CONSULTANCY
The fundamentals of selling might not have modified, however every thing else has: objectives, roles, expectations, expertise wants, and extra. B2B advertising leaders want to navigate this new terrain and construct the capabilities wanted to win. Digital Clarity helps these organizations win.
Across industries, organizations are accelerating digital transformation
processes for long-term development and profitability. Yet: “53% of the organizations
surveyed stay untested within the face of digital problem and their digital
transformation readiness subsequently unsure.” This report from Gartner
highlights the necessity embrace change.
Businesses had no selection however to reply shortly to difficult circumstances.
Although not formally classed as 'agile', the twists and turns of the pandemic
have required executives to innovate on the fly and collaborate to get issues
accomplished. This has been compounded by working from dwelling, which has lower out
distractions and created extra time for 'deep pondering'. Regardless of headcount,
a return to extra steady buying and selling circumstances should not imply operating again to the
customary practices and silos that beforehand slowed entrepreneurs down.
23
——————————————————————————–
Adobe says that Business-to-business (B2B) commerce will proceed to endure a
main transformation as corporations undertake the most recent applied sciences to search out new
prospects, enhance their supply-chain efficiencies, and supply a extra
customized person expertise to their clientele.
Digital Clarity has created a singular
establish wants in addition to assess the chance accessible. The core focus is to
assist scale back wastage and enhance outcomes.
Areas of focus embrace: ? Cost evaluation ? Audit present channels ? Digital technique planning ? ROI projection planning ? Digital consulting and coaching COMPETITIVE LANDSCAPE Digital promoting is the fastest-growing section of the worldwide marketplace for promoting spending. The growing use of smartphones and the supply of low-cost web providers are the 2 main elements propelling the expansion prospects for this market. More than 30% of the businesses are planning to spend round 75% of their promoting expenditures on digital advertising throughout the subsequent 5 years. "U. S. Marketers are anticipated to spend$110.1 billion on digital advertisements this yr, or 51% of the$214.6 billion completeU.S. promoting spending forecast, excluding political advertisements. Newspapers, radio, magazines, and native tv now account for simply 21% of theU.S. advert market." FromThe Wall Street Journal
DIGITAL CLARITY HAS A COMPETITIVE ADVANTAGE
Digital Clarity function in a extremely commoditized market however have through the years construct a stellar fame that makes it totally different from its rivals. Some of these areas embrace: 1. Our DNA is Strategically Driven
We consider the trail to profitable buyer acquisition lies in understanding a
shopper’s enterprise – not simply operating a marketing campaign. We search to assist purchasers
perceive that success needs to be goal and measurable.
2. We are Business Led
Digital advertising is just not a price however an asset. Not a line in a spreadsheet however an
emotive pressure that if accomplished proper, will carry actual enterprise change and development.
3. We are Digital Thinkers
Marketing needs to be on the coronary heart of the enterprise. Delivering actual innovation in
digital advertising requires not simply data however authority and bravado. We
assume digital. We drive outcomes.
4. Our purpose is to ship Digital Performance
We assist our purchasers to know their objectives and goals, utilizing digital
advertising to drive new enterprise alternatives and retain their present
prospects.
HIS Markit, a analysis agency, reported: “Each greenback that corporations spent on
promoting in
THE GROWTH OF B2B SOCIAL MEDIA
2020 will go down because the yr that advertising was pulled into the boardroom. 80%
of senior executives mentioned the function of selling in setting technique has expanded
because the pandemic. Traditional shoppers have moved on-line, making the digital
surroundings much more vital proper now.
24
——————————————————————————–
This precedence has raised the profile of selling as corporations scramble to
perceive the digital-first client. The battleground for 2023 can be about
velocity and agility. Now that many corporations have treasure troves of knowledge, the
distinction is how briskly they'll personalize the expertise and reply to
client behaviors. Expect to see extra funding and innovation in know-how
infrastructure alongside advertising.
? 76% of B2B organizations use social media analytics to measure content material
efficiency.
? By 2025, 80% of B2B gross sales interactions will happen on digital channels.
?
billion in 2023.
GROWTH IN LINKEDIN ADVERTISING SET TO SOAR BEYOND 2023
Almost all B2B content material entrepreneurs (96%) use LinkedIn. They additionally rated it because the
top-performing natural platform.
For paid social posts, the image is analogous however not equivalent.
Digital Clarity assist enterprise group profit from LinkedIn. We assist prospects perceive and construct campaigns across the 95-5 rule. The 95-5 rule advises you market largely to patrons who will not be probably to purchase from you immediately.
[[Image Removed: dbmm20221130_10qimg009.jpg]]
THE NEW NORMAL IS DIGITAL
In simply one-year, because the pandemic. digital adoption has occurred at 5 to
ten instances the projected price.
Lockdown durations, financial uncertainty and lack of predictability have compelled prospects and companies on-line in beforehand unseen numbers. This migration has upset the facility stability, with prospects now extra accountable for the connection and fewer loyal to manufacturers and merchandise. On prime of that, 60% of corporations have seen new shopping for behaviors comparable to adjustments to common basket measurement and product pursuits. Pandemic disruption can also be inflicting many companies to demand an identical degree of comfort to shoppers. When we return to regular, there is no query that the new regular can be digital.
GROWTH IN INVESTOR AWARENESS AND OUTREACH.
We count on that, in 2023, the strategic outreach can be directed at buyers
world wide who perceive the digital market and its increasing
affect on client choices. DBMM will goal new buyers by means of a worldwide
digital and conventional built-in investor outreach marketing campaign which can be run
by Digital Clarity, with third events, as required, for distribution. In all
areas, the Company will act within the pursuits of all stakeholders.
25
——————————————————————————–
In the total business context of dramatic growth of digital footprints, there has been no direct correlation between DBMM's revenues and its share worth. Economic and business analysts have opined that the business a number of continues to develop to, in some instances, 25-30 instances revenues. DBMM will broaden its shopper and geographic scale, thus growing revenues. There have been issues outdoors of DBMM's management which precipitated development to be in impartial, and in 2020/21 the pandemic threw all planning into disarray. With capital infusion following the closure of theSEC evaluate with a closing order of the sooner dismissal, 2023 will observe the mannequin of a rising shopper base and geographic attain till it achieves a TBD degree of profitability. We anticipate the benchmark will replicate profitable business fashions in digital know-how, advertising and firm transformation. OnOctober 26, 2022 ,FINRA processed a Form 211 regarding the initiation of priced quotations of our shares of frequent inventory, which implies that the submitting broker-dealer has demonstrated toFINRA compliance with FINRA Rule 6432 and subsequently has met the necessities underneath that rule to provoke a citation for our shares of frequent inventory inside 4 days ofOctober 26, 2022 .FINRA's processing of a Form 211 under no circumstances constitutesFINRA's approval of the safety, the issuer, or the issuer's enterprise and relates solely to the submitting broker-dealer's obligation to adjust to FINRA Rule 6432 and SEA Rule 15c2-11 when quoting a safety. (FINRA TO Glendale Securities ) After OTC Markets' evaluate of our actions following their course of, our shares of frequent inventory returned to regular market buying and selling with out restriction or caveat emptor. The caveat emptor was eliminated onDecember 20, 2022 . Accordingly, plans to develop investor consciousness and outreach are underway
FINANCIAL OVERVIEW/OUTLOOK
DBMM has been honing its business mannequin because the acquisition of Digital
Clarity ("DC") in 2011, and has been money flow-positive as an working firm
since then. Unfortunately, exterior occasions outdoors of DBMM's management have
precluded the expansion anticipated thus far; nevertheless, its margins of 35-50% are
correct. Aspirationally, when the Company reaches acceptable scale and
profitability TBD, the enterprise will meet all stakeholder expectations.
The development trajectory anticipated throughout 2022 remained deferred till the
Company returns to regular enterprise and regular buying and selling. Normal buying and selling has
resumed and the purchasers will profit instantly on account of a wider vary of
assets, and the shareholders will profit because the market cap grows. The media
market a number of far exceeds the "previous" manufacturing multiples, as digital
know-how and advertising has change into certainly one of quickest rising industries within the
world immediately. The buying and selling in our shares of frequent inventory returned to regular on
December 20, 2022 with no restrictions. The US retail market of our shares
of frequent inventory was open lastly to all buyers.
DBMM’s place within the business reputationally is robust, notably for its
measurement. The business surroundings continues to develop exponentially, and digital
advertising and firm transformation is a necessary technique for any business
exercise, and thus has change into embedded in planning.
Since 2020, revenues have slowed down briefly on account of plenty of elements: 1) shopper uncertainty attributable to Brexit commerce points, 2) COVID-19 world slowdown with some purchasers pausing as lockdowns stopped and began, 3) purchasers needing to increase or double down lacked the assets. To tackle the altering surroundings, the enterprise improvement mannequin has advanced and, as such, Digital Clarity has earned a "seat on the desk," shopper by shopper. With precision, the revenues are turning round. Several years in the past, the Company acquired a dedication for future working capital to develop the Company in key markets. Growth capital can be directed to assist a shopper base rebalancing and leveraging of a really dynamic, transformational, digital panorama. DC's mantra stays the identical: "ROI is our DNA." Going ahead, there can be an emphasis on investor consciousness as quickly as regular enterprise and regular buying and selling has recommenced. DBMM intends to make important strides in aggressively broadening its model publicity. There are buyers across the globe who perceive the digital market and its growing affect on business choices. DBMM can be concentrating on new shareholders in the general public market by means of a worldwide digital and conventional, built-in marketing campaign run by DC, with third events, as required for distribution. The expectations for fiscal yr 2023 was to return to regular buying and selling first, which now has occurred, after which transfer forward to a scaled development plan in a number of geographies. The outcome will profit all stakeholders.
The Company resolved in 2015 to remove any consideration of utilizing convertible
debentures as a financing car. Accordingly, the Company has not issued
convertible debentures since 2015.
26
——————————————————————————–
Additionally, we've got demonstrated our adherence to such philosophy by renegotiating its obligations with lenders at fastened settlement quantities with no conversion phrases. Furthermore, such renegotiations result in the derecognition of by-product liabilities overhanging our stability sheet. The Company intends to proceed its debt negotiation and modification program.
This has been a profitable technique so far:
During fiscal yr 2021 and to date in 2022, and to a lesser extent in fiscal 2020, we efficiently reached agreements with sure lenders leading to a achieve on extinguishment for loans payable which amounted to the distinction between the carrying worth and the revised quantity of the obligations. The achieve on extinguishment of principal and accrued curiosity amounted to$169,837 and$57,802 throughout fiscal 2021 and 2020, respectively. We additionally efficiently reached an settlement with a holder of convertible debentures aggregating$249,800 to switch its phrases. Such debentures aren't any longer convertible, are actually non-interest bearing, and have been reclassified to loans payable. It additionally resulted in a lower in by-product liabilities and an enhance in extra paid-in capital of roughly$260,000 throughout fiscal 2021.
Lastly, in
debentures to fulfill obligations aggregating
million shares of the Company’s frequent inventory.
THREE-MONTH PERIOD ENDED
We had roughly
to roughly
During the three-month interval ended
working actions amounting to roughly
working actions was comprised of our web lack of roughly
adjusted primarily for the next:
Change in truthful worth of by-product legal responsibility of roughly
Additionally, the next variations in working belongings and liabilities
through the three-month interval ended
working exercise:
Increase of accounts payable, accrued bills, accrued curiosity, and accrued compensation, of roughly$83,000 , ensuing from a brief fall in liquidity and capital assets.
We generated money from financing actions of
of the proceeds from notes payable.
THREE-MONTH PERIOD ENDED
We had roughly
to roughly
During the three-month interval ended
working actions amounting to roughly
working actions was comprised of our web lack of roughly
adjusted primarily for the next:
Additionally, the next variations in working belongings and liabilities
through the three-month interval ended
working exercise:
Accounts payable, accrued bills, accrued curiosity, and accrued compensation, of roughly$37,000 , ensuing from a brief fall in liquidity and capital assets.
We generated money from financing actions of
of the proceeds from notes payable.
27
——————————————————————————–
RESULTS OF OPERATIONS
Consolidated Operating Results
For the Three Month Period Ended
Increase/ Increase/
November 30, November 30, (Decrease) Decrease
2022 2021 %
SALES $ 54,531 $ 57,582 $ 3,051 -5 %
COST OF SALES 27,078 39,754 (12,676 ) -32 %
GROSS PROFIT 27,453 17,828 9,625 54 %
COSTS AND EXPENSES
Sales, basic and
administrative 148,704 165,925 (17,221 ) -10 %
TOTAL OPERATING EXPENSES 148,704 117,219 (17,221 ) -10 %
OPERATING LOSS (121,251 ) (148,097 ) (26,846 ) -18 %
OTHER (INCOME) EXPENSE
Interest expense 77,099 83,472 (6,373 ) -8 %
Other revenue - (98,262 ) (98,262 ) NM
Change in truthful worth of
by-product legal responsibility 166,320 12,207 154,113 NM
TOTAL OTHER EXPENSES, NET 243,139 (2,583 ) (246,002 ) NM %
NET LOSS $ (364,670 ) $ (145,514 ) $ 219,156 151 %
NM: not significant
We presently generate income by means of our
Engine Marketing, Search Engine Optimization Services, Web Design, Social Media,
Digital analytics and Advisory Services.
For the three-month interval ended
income are the Web design and advisory providers,
Social Media. These main sources amounted to 48%, 38%, and 14% of our
revenues, respectively through the three-month interval ended
Revenue is acknowledged upon switch of management of promised or providers to prospects in an quantity that displays the consideration the Company count on to obtain in change for these providers. The Company enter into contracts that can embrace varied mixtures of providers, that are usually able to being distinct and accounted for as separate efficiency obligations. Revenue is acknowledged web of any taxes collected from prospects, that are subsequently remitted to governmental authorities. The lower in our revenues through the three-month interval endedNovember 30, 2022 , when in comparison with the prior yr, is because of a decrease change price within the first quarter of 2022 which reduces our revenues when transformed in US$.
During the three-month interval ended
decreased on account of discount in compensation streamlining our supply of
providers.
The gross sales, basic and administrative bills through the three-month interval endedNovember 30, 2022 is at comparable ranges to these incurred within the prior interval.
Interest expense through the three-month have been constant when in comparison with these
incurred within the prior interval.
28
——————————————————————————–
The lower in different revenue through the first quarter of 2022 is primarily due to analysis and improvement credit not claimed throughout that interval whereas they have been claimed within the first quarter of 2021.
The enhance in by-product liabilities through the three-month interval ended
inventory worth used within the assumptions to compute its truthful worth at
2022
© Edgar Online, supply
https://information.google.com/__i/rss/rd/articles/CBMiuwFodHRwczovL3d3dy5tYXJrZXRzY3JlZW5lci5jb20vcXVvdGUvc3RvY2svRElHSVRBTC1CUkFORC1NRURJQS1NQVItMTIwNzkyOTI4L25ld3MvRElHSVRBTC1CUkFORC1NRURJQS1NQVJLRVRJTkctR1JPVVAtSU5DLU1BTkFHRU1FTlQtUy1ESVNDVVNTSU9OLUFORC1BTkFMWVNJUy1PRi1GSU5BTkNJQUwtQ09OREktNDI3MzEzOTMv0gG_AWh0dHBzOi8vd3d3Lm1hcmtldHNjcmVlbmVyLmNvbS9hbXAvcXVvdGUvc3RvY2svRElHSVRBTC1CUkFORC1NRURJQS1NQVItMTIwNzkyOTI4L25ld3MvRElHSVRBTC1CUkFORC1NRURJQS1NQVJLRVRJTkctR1JPVVAtSU5DLU1BTkFHRU1FTlQtUy1ESVNDVVNTSU9OLUFORC1BTkFMWVNJUy1PRi1GSU5BTkNJQUwtQ09OREktNDI3MzEzOTMv?oc=5
