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Digital Brand Media & Marketing Group, Inc. has submitted its 10-K filing for the fiscal year ended August 31, 2024.
The company reported revenues of $237,868, a decrease from $309,644 in the previous year. The decline is attributed to a reduced volume of services provided to certain clients during the second half of the fiscal year.
Cost of sales for the year was $234,601, resulting in a gross profit of $3,267, down from $48,870 in the previous year. Operating expenses remained largely unchanged at $465,174.
The company reported an operating loss of $461,907, compared to a loss of $414,824 in the previous year. Interest expenses increased significantly to $606,984 from $313,235, due to considerations provided pursuant to financing activities.
Net loss for the year was $1,048,142, compared to $713,083 in the previous year. The increase in net loss is primarily due to higher interest expenses and changes in the fair value of derivative liabilities.
The company has a working capital deficiency of approximately $7.4 million as of August 31, 2024. Cash on hand was reported at $49,000.
Digital Brand Media & Marketing Group, Inc. continues to focus on expanding its marketing consulting offerings in the US and UK markets through its subsidiary, Digital Clarity (DBMM0.00%).
The company has not declared any cash dividends and intends to retain future earnings for business use.
The report highlights the company's ongoing efforts to manage its debt obligations and improve its financial position through renegotiations and settlements with lenders.
Digital Brand Media & Marketing Group, Inc. has identified a material weakness in its internal controls over financial reporting and is taking steps to address this issue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Digital Brand Media & Marketing Group Inc annual 10-K report dated November 29, 2024. To report an error, please email earnings@qz.com.