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Digital Brand Media & Marketing Group Inc (DBMM0.00%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $28,973 from $85,550 in the same quarter the previous year. The decline is attributed to a reduced volume of services provided to certain clients.
Cost of sales for the quarter was $22,236, representing 77% of sales, compared to 87% in the same quarter of the previous year. This decrease in cost ratio is due to reduced sales volume.
The company reported a gross profit of $6,737 for the quarter, compared to $11,211 in the previous year, with the decline attributed to reduced revenues.
Sales, general, and administrative expenses increased to $135,480 from $116,707, primarily due to small overhead expenses.
Net loss for the quarter was $355,014, down from $395,753 in the previous year. The loss includes an interest expense of $191,921 and a change in the fair value of derivative liability of $34,350.
Cash used in operating activities was $125,678, while cash provided by financing activities was $103,339, primarily from the issuance of notes payable.
Digital Brand Media & Marketing Group Inc had a working capital deficiency of approximately $7.9 million as of November 30, 2024. The company acknowledges its dependence on financing activities to meet future obligations.
The filing also discusses the company's strategic focus on AI and digital marketing consultancy services, aiming to leverage these areas for growth.
Digital Brand Media & Marketing Group Inc continues to develop its presence in the US market, particularly in the tech sector, with a focus on AI-driven marketing solutions.
The company does not anticipate any unregistered sale of equity securities or defaults upon senior securities during the reporting period.
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 quarterly 10-Q report dated January 14, 2025. To report an error, please email earnings@qz.com.