Readers are cautioned that certain statements contained herein are forward-looking statements and should be read in conjunction with our disclosures under the heading "Forward-Looking Statements" above. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. This discussion also should be read in conjunction with the notes to our consolidated financial statements contained in Item 8. "Financial Statements and Supplementary Data" of this Report. OPERATIONS OVERVIEW/OUTLOOK
The company has developed a document called Creds Deck which provides a potential customer description of Digital Clarity’s value proposition http://www.dbmmgroup.com/wp-content/uploads/2020/11/Digital-Clarity-Creds-Deck_DB64F.pdf.
Coronavirus lockdown initially halted, and even now has slowed down, many business processes starting from manufacturing, supply chain to logistics, and marketing. Digital Clarity is no exception, and the negative impact for over a year and a half, is measurable.
Some companies have temporarily closed or stopped their digital marketing activities, due to this uncertainty. This mindset leads to a significant drop in online traffic, sales, engagement and conversation and pushes search rankings down. Opportunities are emerging, and Digital Clarity is actively seeking to go after new customers in a new environment.
Digital marketing is not a quick-fix solution to gain momentum. Therefore, it does not give companies visibility overnight. Many companies using digital marketing techniques such as search engine optimization (SEO) or social media marketing, are already aware that implementations take three to four months' time to achieve positive results. Our company mantra remains, "ROI is our DNA." This means that although there has been a slowdown in existing business and new business development, there is a need for reinforcement of the digital values proposition to bring or maintain a company's brand front and center. As a consultancy, we are delivering the message. Operationally, fiscal year 2021 has been important in continuing the direction of the Company and steering it toward a scaled growth plan which has been in neutral while the Company addressed certain external challenges beyond its control. This has also been impacted by the worldwide pandemic of Covid-19. Nevertheless, the Company continued to focus on the positive, proven operating model and used that model to maintain certain existing clients and through its digital infrastructure, is perfectly placed to expand geographic reach to new clients in 2022. Through a turbulent 2020 to date, DBMM continues to build on its strengths. Like the rest of the world, the effect of Covid-19 and the Pandemic that still persists are a paramount concern, the Company has strong relationships within the market and will continue to extend its business focus to a wide variety of industry verticals.
No one expects it to be a pandemic and
The core of the business is marketing consultancy.
Why digital experts keep in demand
The world is changing, and technology is taking the lead. Today, everything is going digital -- entertainment, health, real estate, banking and even currencies. This is, however, understandable. In
North Americaalone, 95% of the population are online (statista). With everything turning to digital, it means companies are also jumping online to market their businesses. And to survive the challenges of digital marketing, brands need to keep up with the latest trends. Successfully reaching one's target audience is no longer just putting out TV and print ads. These days, social media is the new arena of digital marketers, with Statista claiming 3.7 billion people are active social media users as of October 2021. To keep up with the ever-changing scene, digital marketing experts need to stay in step with the evolving tech trends. Social media marketing companies like ours work tirelessly to research consumers and what makes them engage with brands. We try to find the best online solutions that will cater to our clients' end-users' queries in the easiest and most cost-efficient way possible -- be it by developing new technology or adapting to trends. 15
Inappropriate digital growth positions digital clarity as a leader
The need for seasoned expertise and insight is in huge demand. Digital Clarity's strength, heritage and reach in the digital marketing puts the DBMM brand in an excellent position for investment and growth. Digital Clarity's strength in Search Engine Marketing, Analytics, Social Media,
Strategic CompanyTransformation means that the Company is ready to feed on that demand and leapfrog into a powerful revenue focused vehicle.
Shoppers are still using a mix of digital touch points during COVID-19 throughout their buying journey
? In the discovery and evaluation part of the journey, search engines and social
Media feeds and influencers are popular ways for shoppers to get product
inspiration outside a brand's properties.
? In the purchase part of the trip, there are new types of purchase points
He appears. Mobile wallets behind email as a place to make purchases. and 63%
begin making purchase through social media.
Customers still face issues across channels – the digital landscape across the epidemic
? Customers access multiple touch points during the buying process but there is a file
significant disconnect within companies. ? 75% of consumers expect consistent interactions across all departments.
? However, 58% said they feel as if they are communicating with each other
departments and not one company.
? And when it comes to service issues, 70% of customers expect all reps
to have the same information about them, but 64% say that they have to re-explain issues.
The areas where digital clarity excels are the areas to be considered today
? Marketing from Home – Quickly publish campaigns from home, and collaborate across them
teams and keep marketers engaged with apps
? Engage customers with empathy – listen to customers, use data in real time
better understand their current situation and needs
deliver the right message, to the right person, at the right time
? Optimizing Budget Spending – Digital clarity unifies and optimizes marketing performance
real-time decisions to minimize the negative impact Among, its range of services, Digital Clarity help companies 'get found' on search engines like
46.02 billion U.S. dollars, up from 37.99 billion U.S. dollarsin the preceding quarter.
How machine learning enhances your digital marketing strategy
Digital Clarity applies strategy to algorithmic based machine learning tools. The launch of
Machine learning and digital marketing
Because machine learning is being used to solve a huge set of diverse problems with the help of data, channels, content, and context, as marketers, Digital Clarity stands to benefit from this information and phenomenon as a whole. But, as the information we gather grows, digital marketing as we know it is set to change. Digital Clarity will be at the forefront of this change. PAY PER CLICK (PPC) CAMPAIGNS
To become more strategic and take PPC campaigns to the next level for their clients, digital clarity:
? Know the most valuable metrics for your business? Do you understand the obstacles that may stand in the way of achieving your goals? Learn the key performance drivers for making more strategic decisions
SEARCH - OVERALL Search makes up half (52%) of advertising spend, increasing on par at 15% to £3.3bn, next is non-video display at £1.33bn (+9%), then video display £967m (40%). Classifieds remains at £726m and other remained at £41m.
digital clarity symbol
Machine learning and AI have grown at a rapid pace and are an integral part of day to day search advertising management and planning. Though machine learning has been an integral part of the ad world, what has been more significant has been the addition of Artificial Intelligence or AI. According to a recent report in The
Harvard Business Reviewby Deloitte, AI in Digital Marketing is not just getting bigger, it's getting far more persuasive MITresearchers recently unveiled a chip that can perform inference using neural network computations three to seven times faster than previous chips, and with up to 95 percent less power consumption. Dozens of companies working on new generations of AI chips-for use both in and outside of data centers-are attracting significant investment. These companies raised more than $1.5 billionin funding last year, nearly twice the amount they raised the year before.
Digital clarity perfectly positioned for the future
According to Gartner’s Digital Business Acceleration Report: Where to Focus Now, companies intend to go more digital due to COVID-19.
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CONTENT MARKETING Although still extremely important, the internet has become inundated with too much content. There is consensus among companies that in order to succeed, brands need to be creating content that is valuable to readers. To do this, you need to understand consumer trends, data and engagement. Machine learning tools alongside Digital Clarity's strategic approach allows its clients to reduce the amount of time spent tracking data, as well as better decipher that data to create actionable tasks that will lead to success. DIGITAL MARKETING SERVICES There is no denying that 2020/21 has proved challenging for Digital Marketing Services. When the pandemic hit in
March 2020, many companies' long-term plans and strategies were thrown out the window, as everyone from the frontlines to the C-suite shifted into fire-fighting mode. Many worked around the clock by leveraging remote technology. Most businesses, except for those engaged in essentials, have been at a standstill and enterprises are cutting back on costs. The axe falls on marketing. The virus has brought most scheduled digital marketing plans to a grinding halt or slowed them down. The impact is felt in digital marketing, with predicted patterns now appearing skewed. During the main part of the lock-down., Google announced $800 millionin funding and grants for businesses advertisers. It has on offer $ 340 millionin credits for active advertisers. The clear opportunity is at the foundation of the Company, namely the need to expedite and continue to encourage development in the digital marketing services sector. The marketing services product is labour intensive and thus the Company must jumpstart the growth by significant capital to grow simultaneously in multiple geographies.
The company’s outlook remains strong for 2022 and the foreseeable future, particularly as companies adjust and reorient their retail business to online digital marketing in a COVID/Post COVID world.
During fiscal year 2021, revenue decreased due to external conditions outside the company’s control which put enormous pressure on the operating business.
Despite these circumstances, the client base is expanding in base number and the size of client serviced. At any point in time, our clients represent a variety of industries. Many of these clients choose to operate under an NDA as our clients see DBMM as a competitive advantage. Under that disclaimer, we cannot share all clients' names, but here are a few key clients representing diverse verticals, as follows: 1. Leading project management software and solution provider to the construction industry Kahua Inc, announced it was ramping up growth using the power of digital marketing in partnership with digital consultancy, Digital Clarity. 2. Digital Clarity shortlisted for prestigious
UKSearch Awards in the hotly contested 'Best Use of Search' along with client Bentley SYNCHRO, a global construction project management software company that supports the professional needs of those responsible for creating and managing the world's infrastructure. 3. Synergy SKY, a Norwegian based company that develops and markets software platforms to manage all meetings and video conferences, announce online marketing partnership with Digital Clarity. 4. Digital Clarity release SEO Guides for business during Covid-19 Pandemic. The company has a long history with Google search both paid and organic, with these guides specifically focusing on three core areas: ? The Importance of a Strong Internal Linking Strategy ? How to Get to the Top of Olympia Londonand is the only event in Europededicated to luxury and high-value property aimed at High-net-Worth Individuals. 18
Other examples represent the diversity of the customer base. DBMM’s approach using client analytics and implementing a single model to increase ROI as a key objective, spanning a wide range of industries.
Digital Clarity services are in demand and the company is pursuing opportunities in Formula 1, aviation and high-end marketing for luxury brands.
Digital Clarity’s core industry segments include: FinTech, Unified Communications Firms, and Discretionary Advice to Professional Service Providers.
Develop search engine optimization
From an SEO point of view, keywords could become less important. Search engines receive more revenue for ads when they provide users with higher quality content. As a result, the algorithm they use needs to be more focused on providing each user with content that will serve a specific purpose, rather than be packed with the right keyword density. Therefore, the need to start thinking about the quality of your content as a ranking factor on search engines. This is where Digital Clarity comes in to help shape content 'in the right way' to direct potential buyers to the client's website.
Next generation search engine market group will grow by 25.5% during the period from 2021 to 2026
Over the last few years, the number of voice searches witnessed an exponential growth rate. Also, it is becoming less of a novelty and more like a new standard. Therefore, the next-generation search engines are more oriented toward voice-based search engines. Next-generation search engines are also increasing because of deep neural networks, machine learning, and other advancements in AI technologies. Virtual assistants, such as smart speakers, are used for various applications across several end-user industries, such as retail, BFSI, and healthcare. One major consumer-facing application is as a personal assistant. It helps consumers accomplish various tasks. For instance, Apple's Siri offers an intuitive interface for connected homes or cars. These assistants' capabilities can be personalized based on the end-user, thereby improving customer experience in various industries. Thus, although the personal segment holds a significant position, the commercial segment holds a massive opportunity to expand over the forecast period, owing to the growing industrial applications. For instance, virtual assistants can help customers find a doctor's office in the healthcare sector, fill and refill a prescription, and receive payment reminders. Moreover, the voice search mobility trend is growing at a high pace with the advancements in speech recognition technology or voice search technology.
Digital Marketing Growth & Consulting Services
The skill set historically owned by agencies offering disciplines such as UX, design, creativity, customer-centric data analytics and customer engagement is now being immersed with large consultancy businesses whose traditional bread and butter was Digital Transformation. Accenture, Deloitte, IBM,
KPMG, McKinsey and PricewaterhouseCoopersrank among the most aggressive players in acquiring and partnering with agencies such as Digital Clarity. They present not only an opportunity for Digital Clarity but also a prospective exit and investment opportunity. Digital Clarity have continued to develop their Digital Consultingand Strategy Planning offering. The forward looking program is to be a recognized leader in this field and fulfill companies seeking Digital Transformation for their originations.
The need for professional advice and the opportunity for massive growth
Four consultancies lead Ad Age's ranking of the 10 largest agency companies in the world. With combined revenue of
$13.2 billion, the marketing services units of Accenture, PwC, IBM and Deloitte sit just below WPP, Omnicom, Publicis Groupe, Interpublic and Dentsu. Last year, only two consultancies-Accenture Interactive and IBM iX-made the top 10. IBM iX was the first to break into the top 10. 19
Given the experience of the team, Digital Clarity's advisory and consultancy is in demand. With the recent growth in these business areas, and the rise of consultancies, it is confirmation that Digital Clarity is headed in the right direction for growth.
The growth of digital transformation around the world
The Global Digital Transformation Market size is expected to reach
$1,302.9 billionby 2027, rising at a market growth of 20.8% CAGR during the forecast period. Digital transformation is considered as the utilization of digital technology. Digitally transformed enterprises can be flexible to the changing technological landscape and can address abrupt shifts in the industry, particularly the one presently created by the COVID-19 pandemic; studies show that the efficiency and rate of adaptation of digitally transformed companies to a post-pandemic era are relatively larger than conventional businesses. Source Digital Clarity can help various businesses that have been considerably affected by the global outbreak of the COVID-19 pandemic. One of the significant challenges for the global economy in 2020 was to facilitate business continuity in the midst of social distancing guidelines, lockdowns norms, work-from-home culture, and other operational challenges. The lack of availability of digital strategies, infrastructure, or tools worsens the challenges for various companies that were needed to abruptly shift operations online or allow workers to work from their homes. The situation, on the other hand, resulted in a considerable surge in awareness regarding the urgent requirement for digital transformation across a majority of the industries and created some lucrative opportunities for the global market. Companies are getting more aware of the advantages of digital transformation, particularly in the work-from-home culture that needs a business to allow the employees to easily learn, collaborate and perform organizational functions across remote locations.
Digital Tawasul for Growth in Consulting
Such is the dominance of US consulting, that its status as the world's largest consulting market barely bears mentioning anymore. The global consulting market grew by about 8% to
$160 billionin 2020, but accounting for 44% of that, the US saw another year of meteoric growth last year according to Source Global Research. While it is still undeniably America first when it comes to consulting, however, the battle to be the second largest consulting market is much more tightly contested. Despite slowed growth in the UK, the management consulting market in the UKhas remained the globe's second largest. Nearest rival Germanyaccounts for 0.3% less of the global consulting market than Britain.
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The importance of strategic consulting in 2021 and beyond
Across various industries, organizations are accelerating digital transformation processes for long-term growth and profitability. However: “53% of organizations surveyed remain untested in the face of digital challenges and therefore their preparedness for digital transformation is uncertain.” This report from Gartner highlights the need to embrace change.
Businesses had no choice but to respond quickly to challenging conditions. 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 things done. This has been compounded by working from home, which has cut out distractions and created more time for 'deep thinking'.. Regardless of headcount, a return to more stable trading conditions shouldn't mean running back to the standard practices and silos that previously slowed marketers down. Adobe says that, Business-to-business (B2B) commerce will continue to undergo a major transformation in 2021 as companies adopt the latest technologies to find new customers, improve their supply-chain efficiencies, and provide a more personalized user experience to their clientele.
Digital clarity created a unique profile
Areas of focus include: ? Cost analysis ? Audit current channels ? Digital strategy planning ? ROI projection planning ? Digital consulting and training
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GLOBAL AD SPEND CONTINUES ? Global advertising spend is expected to grow by 10.4.% or
? Spending will rise after pre-pandemic levels, a year earlier than before
predicted ? All regions forecast to return to growth in 2021 with
Canada, the US and Australiaexpected to be fastest growing markets in 2021
? Digital technology continues to drive recovery, returning to double-digit growth. He. She
will represent 50.0% share of global spend this year
Advertising investment is expected to grow 10.4% globally in 2021, according to a recent dentsu Ad Spend report.
COMPETITIVE LANDSCAPE Digital advertising is the fastest-growing segment of the global market for advertising spending. The increasing use of smartphones and the availability of cheap internet services are the two major factors propelling the growth prospects for this market. More than 30% of the companies are planning to spend around 75% of their advertising expenditures on digital marketing within the next five years. "U. S. Marketers are expected to spend
$110.1 billionon digital ads this year, or 51% of the $214.6 billiontotal U.S.advertising spending forecast, excluding political ads. Newspapers, radio, magazines, and local television now account for just 21% of the U.S.ad market." From The Wall Street Journal
Digital clarity has a competitive advantage
Digital Clarity operate in a highly commoditized market but have over the years build a stellar reputation that makes it different from its competitors. Some of these areas include: 1. Our DNA is Strategically Driven
We believe that the path to successful customer acquisition lies in understanding the customer’s business – not just running a campaign. We strive to help clients understand that success must be objective and measurable.
2. We are Business Led
Digital marketing is not a cost but an asset. Not a line in a spreadsheet but an emotional force that if done right will bring real business change and growth.
3. We are Digital Thinkers
Marketing should be at the heart of the business. Delivering true digital marketing innovation requires not only knowledge, but also authority and courage. We think it’s digital. We drive results.
4. Our goal is to deliver Digital Performance
We help our clients understand their goals and objectives, using digital marketing to drive new business opportunities and retain their existing clients.
The growth of social media among businesses
2020 will go down as the year that marketing was pulled into the boardroom. 80% of senior executives said the role of marketing in setting strategy has expanded since the pandemic. Traditional consumers have moved online, making the digital environment even more important right now. This priority has raised the profile of marketing as companies scramble to understand the digital-first consumer. The battleground for 2021 will be about speed and agility. Now that many companies have treasure troves of data, the difference is how fast they can personalise the experience and respond to consumer behaviour. Expect to see more investment and innovation in technology infrastructure alongside marketing.
? 40% of B2B content marketers have increased their investment in social media and
Online communities in response to COVID-19.
? 76% of B2B organizations use social media analytics to measure content
performance. ? By 2025, 80% of B2B sales interactions will occur on digital channels.
$1.99 billionin 2022, and $2.33 billionin 2023. 22
Almost all B2B content marketers (96%) use LinkedIn. They also rated it as the best performing organic platform.
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GROWTH IN LINKEDIN ADVERTISEMENTS: GROWTH TO 2023
For paid social posts, the image is similar but not identical.
LinkedIn again comes out on top (80%).
But Facebook outperforms Twitter and Instagram over YouTube.
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Global B2B E-Commerce Sales in 2021
In the United States alone, it will hit business-to-business e-commerce sales
The predominance of B2B ecommerce means that B2B businesses must improve and simplify their shopping journey, channeling the B2C ordering experience. The B2B shopping experience is a lot more complicated than that of a B2C buyer. Because of the nature of the transaction, B2B buyers usually need to go through various steps, including sales representative interaction, negotiations, and approvals before they can make a successful purchase. In short, B2B eCommerce businesses must adapt to a more seamless transaction building advanced functionality quote management, price negotiation, easy ordering, order and inventory management for the B2B market. 23
$636 billion2 United States: $504 billion3 Japan: $104 billion4 United Kingdom: $86 billion5 Germany: $70 billion6 France: $43 billion7 South Korea: $37 billion8 Canada: $30 billion9 Russia $20 billion10 Brazil $19 billion
US B2B digital advertising market set for post-epidemic growth
According to eMarketer
Last year, US B2B pivoted from in-person channels to digital ads to reach audiences. In 2021, the growth in digital ad spending will be even greater than was originally estimated by eMarketer, indicating the shift to digital isn't slowing down.
Digital advertising will also remain a more pervasive part of the B2B media mix in the coming years.
US B2BS spends on LINKEDIN screen
LinkedIn makes up the largest share of US B2B display in 2021 with 32.2% of the
$5.09 billionthat will be spent on B2B display this year. We estimate US B2B LinkedIn display ad revenues will be $1.64 billionin the US, growing 27.1% from 2020 when $1.29 billionwas spent on LinkedIn B2B display.
American B2BS spends on research to increase
In 2021, US B2B companies will spend
But the growth rate of search is not strong: it will increase by 19.5% from 2020.
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The new normal will be digital
In just one year, digital adoption has occurred at five to ten times the rate expected.
Lockdown periods, economic uncertainty and loss of predictability have forced customers and businesses online in previously unseen numbers. This migration has upset the power balance, with customers now more in control of the relationship and less loyal to brands and products. On top of that, 60% of companies have seen new buying behaviors such as changes to average basket size and product interests. Pandemic disruption is also causing many businesses to demand a similar level of convenience to consumers. When we return to normal, there's no question that the new normal will be digital.
Growth in investor awareness and communication.
Digital Brand Media & Marketing Group, Inc.will initiate a significant effort to raise positive awareness of DBMM's growth potential on a global basis. The Company had to continue to defer its 2020/21 plans until certain SEC Matters regarding the delinquent filings brought current in July 2018, remain open. The global pandemic made it impossible to initiate any Investor Awareness Program. Hopefully in 2022 the strategic outreach will be directed at investors around the world who understand the digital marketplace and its expanding influence on consumer decisions. DBMM will target new investors through a global digital and traditional integrated investor outreach campaign which will be run by Digital Clarity, with third parties, as required, for distribution. In all areas, the Company will act in the interests of all stakeholders. In the full industry context of dramatic expansion of digital footprints, there has been no direct correlation between DBMM's revenues and its share price. Economic and industry analysts have opined that the industry multiple continues to grow to, in some cases, 25-30 times revenues. DBMM will expand its client and geographic scale, thus increasing revenues. There were matters outside of DBMM's control which caused growth to be in neutral, and in 2020/21 the pandemic threw all planning into disarray. With capital infusion, 2022 will follow the model of a growing client base and geographic reach until it achieves a TBD level of profitability. We anticipate the benchmark will replicate successful industry models in digital technology, marketing and company transformation. FINANCIAL OVERVIEW/OUTLOOK DBMM has been honing its commercial model since the acquisition of Digital Clarity ("DC") in 2011 which has been cash-flow positive as an operating company since its acquisition. External events outside of DBMM's control has precluded the growth expected to this point, however, its margins will continue to be strong on an annual basis, and once the business reaches appropriate scale with assumed profitability and cross-over point, DBMM trajectory suggests a resultant very successful business for all of its stakeholders. The growth trajectory anticipated is expected during 2022, following capital infusion and return to normal trading. Once that occurs, the clients benefit immediately due to a wider range of resources; the shareholders will benefit as the market cap grows. The media market multiple far exceeds the "old" manufacturing multiples, as digital technology and marketing has become one of the fastest growing industries in the world today. DBMM's place in the sector is strong. The industry environment continues to grow exponentially and the future of digital marketing as an essential strategy for any consumer-facing business has been proven over-and-over as certain retail businesses are forced to close their doors for lack of or an ineffective digital presence. DBMM's brand, Digital Clarity, increases its valuation with client case studies and industry awards resulting in its being considered a leader in the sector for its size. DBMM's increasing client base, coupled with decreasing certain kind of debt and expenses, positions the Company to attract mezzanine financing, something sought after by many and achieved by few. Coincidently, 2020/21 results have slowed down temporarily due to Brexit unease in the UKand clients concern about trade issues with or without the European Union. So in the midst of the uncertainty caused by the Brexit slowdown, the COVID -19 global outbreak has caused further slowdown as clients paused and business development much different during an initial lockdown , then lifted only to be reinstated on November 5, 2020. That only made the uncertainty further exacerbated, while clients need to extend or double down on their digital footprint as the industry has become essential during the pandemic. Nevertheless, Digital Clarity is revising its model to adjust to changing circumstances, when client revenues are paused or delayed. 25
The Company received a commitment for future working capital in order to grow the Company in key markets, with the intent to move to DBMM profitability following a return to normal trading. At that point, DBMM would not require future financing until it was ready to acquire 1-2 additional companies to complement and further develop the digital marketing business. Growth capital will increase as the client base re-balanced and expands in size and scope. Going forward, there will be an emphasis on investor awareness as soon as the
SECdismissal has been affirmed by the full commission. DBMM has been current in its filings since July 2018and is encouraged by the outlook after normal trading has recommenced. DBMM intends to make significant strides in aggressively widening its brand exposure using a variety of digital and social channels. There are investors around the globe who understand the digital marketplace and its increasing influence on consumer decisions. DBMM will be targeting these new investors in the public market through a global digital and traditional, integrated campaign which will be run by Digital Clarity, with third parties, as required for distribution.
Fiscal Year 2022 forecasts remain to return to normal trading after the separation is confirmed by the full commission. The company then intends to move forward with its expanded growth plan in multiple geographies to benefit all stakeholders, given the impact of the global pandemic.
During fiscal 2021, and to a lesser extent, in fiscal 2020, we successfully reached agreements with certain lenders resulting in gain on extinguishment for loans payable which amounted to the difference between the carrying value and the revised amount of the obligations. The gain on extinguishment of principal and accrued interest amounted to
$169,837and $57,802and during fiscal 2021 and 2020, respectively. We also successfully reached an agreement with a holder of convertible debentures aggregating $249,800to modify its terms. Such debentures are no longer convertible, are now non-interest bearing, and have been reclassified to loans payable. It also resulted in a decrease in derivative liabilities and an increase in additional paid-in capital of approximately $260,000during fiscal 2021.
We have not issued convertible bonds since 2015.
The three-month period has expired
We had almost
During the three-month period ending
Primarily modified for the following:
Accounts payable, accrued expenses, accrued interest, and accrued compensation, of approximately
$37,000, resulting from a short fall in liquidity and capital resources.
In addition, the following differences in operating assets and liabilities during the three-month period ended
We generated cash from financing activities
The three-month period has expired
We had almost
During the three-month period ending
Accounts payable, accrued expenses, accrued interest, and accrued compensation, of approximately
$131,000, resulting from a short fall in liquidity and capital resources.
During the three-month period ending
RESULTS OF OPERATIONS Consolidated Operating Results For the For the Three Month Period Ended Increase/ Increase/ November 30, November 30, (Decrease) Decrease 2021 2020 % SALES
$ 57,582 $ 36,965 $ 20,61756 % COST OF SALES 39,754 90,323 (50,569 ) -56 % GROSS PROFIT 17,828 (53,358 ) 71,186 NM COSTS AND EXPENSES Sales, general and administrative 165,925 117,219 48,706 42 % TOTAL OPERATING EXPENSES 165,925 117,219 48,706 42 % OPERATING LOSS (148,097 ) (170,577 ) (22,480 ) -13 % OTHER (INCOME) EXPENSE Interest expense 83,472 83,041 431 1 % Other income (98,262 ) - (98,262 ) NM Change in fair value of derivative liability 12,207 (5,956 ) 18,163 NM TOTAL OTHER EXPENSES, NET (2,583 ) 77,085 (79,668 ) -103 % NET LOSS $ (145,514 ) $ (247,662 ) $ (102,148 )-41 % NM: not meaningful
We are currently generating revenue through
For the three month period ending
Revenue is recognized upon transfer of control of promised or services to customers in an amount that reflects the consideration the Company expect to receive in exchange for those services. The Company enter into contracts that can include various combinations of services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The increase in our revenues during the three month period ended
November 30, 2021, when compared to the prior year, is due to increase activity following the ease of restrictions in the UKassociated with COVID-19 and its impact on Digital Clarity's clients.
During the three-month period ending
The sales, general and administrative expenses during the three-month period ended
November 30, 2021increased primarily from an allocation of overhead of expenses to non-revenue generated activities during that period compared to those incurred in the prior period.
Interest expense during the three months was consistent when compared to that incurred in the previous period.
Increase in derivative liabilities during the three month period ended
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