UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 10-Q

 


 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: November 30, 2022.

 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT

For the transition period from                                   to                                

 

Commission file number: 000-52838

 

DBMM GROUP

DIGITAL BRAND MEDIA & MARKETING GROUP, INC.

WWW.DBMMGROUP.COM

(Exact name of small business issuer as specified in its charter)

 

845 Third Avenue, 6th Floor, New York, NY 10022

(Address of principal executive offices)

 

Florida

State of incorporation

 

59-3666743

IRS Employer Identification No.

 

(646) 722-2706

(Issuer's telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such Files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer ☐

Non-Accelerated Filer ☐ Smaller Reporting Company ☒

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value

DBMM

OTC Markets

 

Indicate the number of shares outstanding of each of the Issuer’s classes of common stock, as of the latest practicable date:

 

Date

Shares Outstanding

January 13, 2023

787,718,631

 

 

 

 

INDEX

 

 

Page No

PART I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION - UNAUDITED

 

 

 

Item 1. Condensed Consolidated Financial Statements

3

Condensed Consolidated Balance Sheets as of November 30, 2022 (unaudited) and August 31, 2022 (audited)

3

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three months ended November 30, 2022 and 2021 (unaudited)

4

Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the Three months ended November 30, 2022 and 2021 (unaudited)

5

Condensed Consolidated Statements of Cash Flows for the Three months ended November 30, 2022 and, 2021 (unaudited)

6

Notes to Unaudited Condensed Consolidated Financial Statements

7

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk

29

Item 4. Controls and Procedures

29

 

 

PART II. OTHER INFORMATION

 

 

 

Item 1. Legal Proceedings

30

Item 1A. Risk Factors

30

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

30

Item 3. Defaults Upon Senior Securities

30

Item 4. Submission of Matters to a Vote of Security Holders

31

Item 5. Other Information

31

Item 6. Exhibits

31

 

 

SIGNATURES

32

 

 

 

 

PART I. FINANCIAL INFORMATION

 

ITEM I. FINANCIAL STATEMENTS

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 
                 
   

(Unaudited)

   

(Audited)

 
   

November 30,

   

August 31,

 
   

2022

   

2022

 

ASSETS

               
                 

CURRENT ASSETS

               

Cash

  $ 15,642     $ 9,364  

Accounts receivable, net

    20,389       20,383  

Prepaid expenses and other current assets

    470       470  

Total current assets

    36,501       30,217  
                 

Property and equipment - net

    1,420       1,420  
                 

TOTAL ASSETS

  $ 37,921     $ 31,637  
                 

LIABILITIES AND STOCKHOLDERS' DEFICIT

               
                 

CURRENT LIABILITIES

               

Accounts payable and accrued expenses

  $ 829,131     $ 799,720  

Accrued interest

    967,519       890,708  

Accrued compensation

    1,362,136       1,377,136  

Derivative liability

    448,252       281,932  

Loans payable, net

    2,091,774       1,945,071  

Officers loans payable

    71,411       79,169  

Convertible debentures, net

    546,571       546,571  
      6,316,794       5,920,307  
                 

Loan payable, net of short-term portion

    43,833       34,360  
                 
                 

TOTAL LIABILITIES

    6,360,627       5,954,667  
                 

STOCKHOLDERS' DEFICIT

               

Preferred stock, Series 1, par value .001; authorized 2,000,000

shares; 1,995,185, and 1,995,185 shares issued and outstanding

    1,995       1,995  

Preferred stock, Series 2, par value .001; authorized 2,000,000

shares; 0 and 0 shares issued and outstanding

    -       -  

Common stock, par value .001; authorized 2,000,000,000

shares: 787,718,631, and 787,718,631, shares issued and outstanding

    787,718       787,718  

Additional paid in capital

    9,666,590       9,666,590  

Other comprehensive loss

    58,472       93,478  

Accumulated deficit

    (16,837,481

)

    (16,472,811

)

                 

TOTAL STOCKHOLDERS' DEFICIT

  $ (6,322,706

)

  $ (5,923,030

)

                 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

  $ 37,921     $ 31,637  

 

See Notes to Unaudited Condensed Consolidated Financial Statements.

 

3

 

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

 
                 
   

For the Three Months Ended

November 30,

 
   

2022

   

2021

 
   

(Unaudited)

   

(Unaudited)

 
                 

SALES

  $ 54,531     $ 57,582  
                 

COST OF SALES

    27,078       39,754  
                 

GROSS PROFIT

    27,453       17,828  
                 

COSTS AND EXPENSES

               

Sales, general and administrative

    148,704       165,925  

TOTAL OPERATING EXPENSES

    148,704       165,925  
                 

OPERATING LOSS

    (121,251

)

    (148,097

)

                 

OTHER (INCOME) EXPENSE

               

Interest expense

    77,099       83,472  

Other Income

    -       (98,262

)

Change in fair value of derivative liability

    166,320       12,207  

TOTAL OTHER EXPENSES, NET

    243,419       (2,583

)

                 

NET LOSS

  $ (364,670

)

  $ (145,514

)

                 

OTHER COMPREHENSIVE LOSS

               

Foreign exchange translation

    (35,006

)

    18,135  

COMPREHENSIVE LOSS

    (399,676

)

    (127,379

)

                 

NET LOSS PER SHARE

               

Basic and diluted

  $ (0.00

)

  $ (0.00

)

                 

WEIGHTED AVERAGE NUMBER OF SHARES

               

Basic and diluted

    787,718,631       757,718,631  

 

See Notes to Unaudited Condensed Consolidated Financial Statements.

 

4

 

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC., AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

 
                 
   

For the Three Months Ended

November 30,

 
   

2022

   

2021

 
   

(Unaudited)

   

(Unaudited)

 
                 

Series 1

               

Preferred Stock

               

Shares, beginning and end of period

    1,995,185       1,995,185  
                 

Preferred Stock

               

Balance, beginning and end of period

  $ 1,995     $ 1,995  
                 

Series 2

               

Preferred Stock

               

Shares, beginning and end of period

    -       -  
                 

Preferred Stock

               

Balance, beginning and end of period

  $ -     $ -  
                 

Common Stock

               

Shares, beginning and end of period

    787,718,631       757,718,631  
                 

Balance, beginning and end of period

  $ 787,718     $ 757,718  
                 

Additional paid-in capital

               

Balance, beginning and end of period

  $ 9,666,590     $ 9,528,590  
                 

Other Comprehensive Income (Loss)

               

Balance, beginning of period

  $ 93,478     $ (35.984

)

Other comprehensive income (loss)

    (35,006

)

    18,135  

Balance, end of period

  $ 58,472     $ (17,849

)

                 

Accumulated Deficit

               

Balance, beginning of period

  $ (16,472,811

)

  $ (15,846,383

)

Net loss

    (364,670

)

    (145,514

)

Balance, end of period

  $ (16,837,481

)

  $ (15,991,897

)

                 

Total Stockholders' Deficit

  $ (6,322,706

)

  $ (5,721,443

)

 

See Notes to Unaudited Condensed Consolidated Financial Statements.

 

5

 

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 
                 
   

For the Three months Ended

 
   

November 30,

 
                 
   

2022

   

2021

 
   

(Unaudited)

   

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net loss

  $ (364,670

)

  $ (145,514

)

                 

Adjustments to reconcile net loss to net cash used in operating activities:

               

Depreciation

    -       -  

Change in fair value of derivative liability

    166,320       12,207  
                 

Changes in operating assets and liabilities:

               

Accounts receivable

    679       (3,999

)

Accounts payable and accrued expenses

    20,909       (15,333

)

Accrued interest

    76,810       59,472  

Accrued compensation

    (15,000

)

    (7,000

)

                 

NET CASH USED IN OPERATING ACTIVITIES

    (114,952

)

    (100,167

)

                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Purchase of equipment

    -       -  
                 

NET CASH USED IN INVESTING ACTIVITIES

    -       -  
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               
                 

Proceeds from loans payable

    131,876       102,408  

Principal repayments loan payable

    (2,927

)

    -  

Officer loans payable

    (7,758

)

    3,805  
                 

NET CASH PROVIDED BY FINANCING ACTIVITIES

    121,191       106,213  
                 
                 

EFFECT OF VARIATION OF EXCHANGE RATE OF CASH

               

HELD IN FOREIGN CURRENCY

    39       (212

)

                 

NET INCREASE/(DECREASE) IN CASH

    6,278       5,834  
                 

CASH - BEGINNING OF PERIOD

    9,364       9,787  
                 

CASH - END OF PERIOD

    15,642       15,621  
                 

Supplemental disclosures of cash flow information:

               

Cash paid for interest

  $ -     $ -  

Cash paid for taxes

  $ -     $ -  

 

See Notes to Unaudited Condensed Consolidated Financial Statements.

 

6

 

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 ORGANIZATION, BASIS OF PRESENTATION AND GOING CONCERN

 

Nature of Business and History of the Company

 

Digital Brand Media & Marketing Group, Inc. (“The Company” or “DBMM”) is an OTC:PK listed company. The Company was organized under the laws of the State of Florida on September 29, 1998.

 

The Company strategically focuses on developing the business of its wholly owned and revenue generating online marketing services company, Digital Clarity. With deep DNA in its operating market, blending the services of an experienced professional workforce leveraging a technology offering positions the Company in a strong, forward looking structure. Digital Clarity operates in the growing area of digital marketing that helps companies make the most of the digital economy focusing on areas such as Search Engine Marketing (Google, Yahoo! & Bing), Social Media (Twitter, Facebook & LinkedIn) and Internet Strategy Planning including Design, Analytics and Mobile Marketing.

 

Following the acquisition of Digital Clarity in 2011 the Company has been honing its business model to be the differentiating service provider in digital marketing space to its clients and prospective business as DBMM grows into one of the leaders in the industry going forward.

 

Today, DBMM Group crafts, designs and executes digital marketing strategies across multiple ad platforms and social media networks for a broad array of clients to help each of them establish a uniform brand identity across the digital universe. The product offering is a unique value proposition of intelligent analytics provided by an experienced digital marketing and technology team. Therefore, DBMM Group is a blend of data, strategy and creative execution.

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2022 are not necessarily indicative of the results that may be expected for the year ending August 31, 2023. For further information refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended August 31, 2022.

 

Going Concern

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis. The financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern.

 

The Company has outstanding loans and convertible notes payable aggregating $2.7 million at November 30, 2022 and doesn’t have sufficient cash on hand to satisfy such obligations. The preceding raise substantial doubt about the ability of the Company to continue as a going concern. However, the Company generated proceeds of $121,191 from financing activities during the three months ending November 30, 2022. The Company also has a non-binding Commitment Letter from an investor of $250,000 which also includes a right of first refusal on additional capital raise up to $3 million which will contribute to satisfying such obligations and fund any potential cash flow deficiencies from operations for the foreseeable future.

 

Accordingly, the accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.

 

7

 

 

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Consolidation

 

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Stylar (DBA Digital Clarity). All significant inter-company transactions are eliminated.

 

Cash and Cash Equivalents

 

Cash and cash equivalents consist primarily of cash in banks. The Company considers cash equivalents to include all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company had no cash equivalents as of November 30, 2022.

 

Accounts Receivable and Allowance for Doubtful Accounts

 

Accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are presented net of allowance for doubtful accounts.

 

The Company has a policy of reserving for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. At November 30, 2022, the Company had no allowance for doubtful accounts.

 

Property and Equipment

 

Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets (primarily three to five years).

 

Revenue Recognition

 

Revenue is recognized upon transfer of control of promised or services to customers in an amount that reflects the consideration we expect to receive in exchange for those services. We 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.

 

Nature of Services

 

The Company generally provides its services to companies, primarily located in Europe but with international exposure. The Company generally provides its services ratably over the terms of the contract and bills such services at a monthly fixed rate. Some of the services are billed quarterly. The Company’s services are sold without guarantees.

 

Significant Judgments

 

Our contracts with customers sometimes often include promises to transfer multiple services to a customer. Determining whether services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

 

Judgment is required to determine Standalone Selling Price (SSP) for each distinct performance obligation. The Company uses a single amount to estimate SSP for items that are not sold separately, including set-up services, monthly search advertising services, and monthly optimization and management.

 

Contract Balances

 

Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing.

 

8

 

 

The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Included in these estimates are assumptions about the collection of its accounts receivable, converted amount of cash denominated in a foreign currency, and estimated amounts of cash, the derivative liability could settle, if not in common shares. Actual results could differ from those estimates.

 

Income Taxes

 

The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.

 

The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open.

 

Earnings (loss) per common share

 

The Company utilizes the guidance per FASB Codification “ASC 260 "Earnings Per Share". Basic earnings per share is calculated on the weighted effect of all common shares issued and outstanding and is calculated by dividing net income available to common stockholders by the weighted average shares outstanding during the period. Diluted earnings per share, which is calculated by dividing net income available to common stockholders by the weighted average number of common shares used in the basic earnings per share calculation, plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding, is not presented separately as it is anti- dilutive. Such securities have been excluded from the per share computations as of November 30, 2022 and November 30, 2021.

 

Derivative Liabilities

 

The Company assessed the classification of its derivative financial instruments as of November 30, 2022, which consist of convertible instruments and rights to shares of the Company’s common stock and determined that such derivatives meet the criteria for liability classification under ASC 815.

 

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

 

9

 

 

During the three-month period ended November 30, 2022 and November 30, 2021, the Company had notes payable outstanding in which the conversion rate was variable and undeterminable. Accordingly, the Company has recognized a derivative liability in connection with such instruments. The Company uses judgment in determining the fair value of derivative liabilities at the date of issuance at every balance sheet thereafter and in determining which valuation is most appropriate for the instrument (e.g., Binomial method), the expected volatility, the implied risk-free interest rate, as well as the expected dividend rate.

 

Fair Value of Financial Instruments

 

Effective January 1, 2008, the Company adopted FASB ASC 820-Fair Value Measurements and Disclosures, or ASC 820, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact on the Company’s financial position or operating results but did expand certain disclosures.

 

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below.

 

Level 1

Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

Level 2

Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3

Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

 

The Company did not have any Level 2 or Level 3 assets or liabilities as of November 30, 2022, with the exception of its derivative liability which are valued based on Level 3 inputs.

 

Cash is considered to be highly liquid and easily tradable as of November 30, 2022 and therefore classified as Level 1 within our fair value hierarchy.

 

In addition, FASB ASC 825-10-25 Fair Value Option, or ASC 825-10-25, was effective January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments.

 

Convertible Instruments

 

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

 

Professional standards generally provide three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”.

 

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

 

10

 

 

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

 

Stock Based Compensation

 

We account for the grant of stock options and restricted stock awards in accordance with ASC 718, “Compensation-Stock Compensation.” ASC 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity-based compensation.

 

Foreign Currency Translation

 

Assets and liabilities of subsidiaries operating in foreign countries are translated into U.S. dollars using either the exchange rate in effect at the balance sheet date or historical rate, as applicable. Results of operations are translated using the average exchange rates prevailing throughout the year. The effects of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are included in a separate component of stockholders’ equity (accumulated other comprehensive loss), while gains and losses resulting from foreign currency transactions are included in operations.

 

Concentration of Risks

 

The Company’s accounts and receivable as of November 30 and August 31, 2022 and revenues for the three-month period ended November 30, 2022 and 2021 are primarily from four customers.

 

Recently Issued Accounting Pronouncements

 

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed consolidated financial statements.

 

NOTE 3 PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

 

 

Estimated Life

 

November 30,

2022

   

August 31,

2022

 

Computer and office equipment

3 to 5 years

  $ 23,920     $ 23,920  

Less: Accumulated depreciation

    (22,500

)

    (22,500

)

      $ 1,420     $ 1,420  

 

NOTE 4 LOANS PAYABLE

 

   

November 30,

2022

   

August 31,

2022

 

Loans payable

  $ 2,135,607     $ 1,979,431  

 

   

November 30,

2022

   

August 31,

2022

 

Loans payable short-term

  $ 2,091,774     $ 1,945,071  

Loans payable long-term

    43,833       34,360  
    $ 2,135,607     $ 1,979,431  

 

The loans payables are generally due on demand and have not been called, are unsecured, and are bearing interest at a range of 0-12%., with the exception of one loan payable to a financial institution. Such loan, which amounted to $43,833 at November 30, 2022 bears interest rate at 2.5%, is unsecured, matures in November 2027 with principal and interest payable monthly. This loan is part of a Bounce Back Loan Scheme from the UK Government.

 

11

 

 

The company may have to provide alternative consideration (which may be in cash, fixed number of shares or other financial instruments) up to amounts accrued to satisfy its fixed obligations under certain unsecured loans payable. The consideration hasn’t been issued yet and is included in accrued expenses and interest expense and was valued based on the fair value of the consideration at issuance.

 

The aggregate schedule maturities of the Company’s loans payable outstanding as of November 30, 2022 are as follows:

 

2023

 

$

2,102,185

 

2024

 

 

11,126

 

2025

 

 

11,833

 

2026

 

 

10,434

 

2027

 

 

29

 

 

 

$

2,135,607

 

 

NOTE 5 CONVERTIBLE DEBENTURES

 

The Company’s convertible debentures consisted of the following:

 

   

November 30,

2022

   

August 31,

2022

 

Convertible notes payable

  $ 546,571     $ 546,571  

Unamortized debt discount

    -       -  

Total

  $ 546,571     $ 546,571  

 

The convertible debentures matured in 2015, and bear interest at ranges between 6% and 15%. The convertible debentures are convertible at ratios varying between 45% and 50% of the closing price at the date of conversion through, at its most favorable terms for the holders, the average of the three lowest closing bids for a period of 5-30 days prior to conversion.

 

NOTE 6 OFFICERS LOANS PAYABLE

 

   

November 30,

2022

   

August 31,

2022

 

Officers loans payable

  $ 71,411     $ 79,169  

 

The loans payables are due on demand, are unsecured, and are non-interest bearing.

 

NOTE 7 DERIVATIVE LIABILITIES

 

The Company accounts for the embedded conversion features included in its convertible instruments as derivative liabilities. The aggregate fair value of derivative liabilities at November 30, 2022, and August 31, 2022 amounted to $704,812 and $773,676 respectively. At each measurement date, the fair value of the embedded conversion features was based on the lattice binomial method using the following assumptions:

 

 

 

November 30,

2022

 

 

August 31,

2022

 

Effective Exercise price

 

 

0.0065 - 0.01

 

 

 

0.003 - 0.0048

 

Effective Market price

 

 

.013

 

 

 

0.006

 

Volatility

 

 

77

%

 

 

96

%

Risk-free interest

 

 

4.74

%

 

 

0.24

%

Terms

 

365 days

 

 

365 days

 

Expected dividend rate

 

 

0

%

 

 

0

%

 

12

 

 

Changes in the derivative liabilities during the three-month period ended November 30, 2022 is as follows:

 

Balance at August 31, 2022

  $ 281,932  

Changes in fair value of derivative liabilities

    166,320  

Balance, November 30, 2022

  $ 448,252  

 

NOTE 8 ACCRUED COMPENSATION

 

As of November 30, 2022, and August 31, 2022, the Company owes $1,362,136 and $1,377,136, respectively, in accrued compensation and expenses to certain directors and consultants. The amounts are non-interest bearing.

 

NOTE 9 COMMON STOCK AND PREFERRED STOCK

 

Preferred Stock- Series 1 and 2

 

The designation of the Preferred Stock- Series 1 is as follows: Authorized 2,000,000 shares, par value of $0.001. One share of the Company’s Preferred Stock- Series is convertible into 53.04 shares of the Company’s common stock, at the holder’s option and with the Company’s acquiescence, and has three votes per share.

 

The designation of the Preferred Stock- Series 2 is as follows: Authorized 2,000,000 shares, par value of $0.001. One share of the Company’s Preferred Stock- Series is convertible into one share of the Company’s common stock, at the holder’s option and with the Company’s acquiescence, and has no voting rights.

 

Common Stock

 

The Authorized Shares were increased to 2,000,000,000 in April 4, 2016.

 

NOTE 10 COMMITMENTS AND CONTINGENCIES

 

Leases

 

The Company leases its facilities under non-cancellable operating leases which are renewable monthly. The leases have monthly base rents. The latest monthly base rent for the Company’s facilities ranges between $269 and $415.

 

Rental expense amounted to $2,058 and $4,495 during the three-month period ended November 30, 2022 and 2021, respectively.

 

Consulting Agreement

 

The annual compensation of Linda Perry amounts to $150,000 for her role as a consultant and as Executive Director for US interface to provide oversight regarding external regulatory reporting requirements. In addition, Ms. Perry is the lead executive for capital funding requirements and business development. The agreement has a rolling three-year term through September 2025.

 

Legal Proceedings

 

From time to time, the Company has become or may become involved in certain lawsuits and legal proceedings which arise in the ordinary course of business. The Company intends to vigorously defend its positions. However, litigation is subject to inherent uncertainties and an adverse result in those or other matters may arise from time to time that may harm its financial position, or our business and the outcome of these matters cannot be ultimately predicted.

 

13

 

 

NOTE 11 FOREIGN OPERATIONS

 

As of November 30, 2022, a majority of our revenues and assets are associated with subsidiaries located in the United Kingdom. Assets at November 30, 2022 and revenues for the three-month period ended November 30, 2022 were as follows unaudited

 

   

United States

   

Great Britain

   

Total

 

Revenues

  $ -     $ 54,531     $ 54,531  

Total revenues

  $ -     $ 54,531     $ 54,531  

Identifiable assets at November 30, 2022

  $ 14,057     $ 23,864     $ 37,921  

 

As of November 30, 2021, a majority of our revenues and assets are associated with subsidiaries located in the United Kingdom. Assets at November 30, 2021 and revenues for the three-month period ended November 30, 2021 were as follows unaudited

 

   

United States

   

Great Britain

   

Total

 

Revenues

  $ -     $ 57,582     $ 57,582  

Total revenues

  $ -     $ 57,582     $ 57,582  

Identifiable assets at November 30, 2021

  $ 5,212     $ 31,886     $ 37,098  

 

NOTE 12 – SUBSEQUENT EVENTS

 

The Company has analyzed its operations subsequent to November 30, 2022 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose.

 

 

14

 

 

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

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 developed a document called the Creds Deck which provides a description to prospective clients of Digital Clarity’s value proposition http://www.dbmmgroup.com/wp-content/uploads/2020/11/Digital-Clarity-Creds-Deck_DB64F.pdf.

 

The fiscal year 2022 has focused on a slow return to normalcy though businesses have faced enormous challenges over the past few years, and DBMM's operating business Digital Clarity, is no exception. However, for context, it is worth reminding investors and shareholders, that Digital Clarity was acquired by DBMM as a cash-flow positive business with a great reputation and industry network, winning industry awards.

 

As stated in the MD&As for many years, the operating business is cash flow positive, but the costs of maintaining a public company far exceed the profit in those early days. That was expected. That is the digital business model, though many digital companies do not have any operating revenues while they build the business.

 

Though the post-pandemic era still leaves scars, there is also an opportunity for lean organizations to take advantage of the new and challenging landscape that will no doubt still impact the overall economy.

 

Most analysts are clear that as we head toward the end of 2022, the challenges globally though different from the pandemic will still have an impact in 2023.

 

Businesses will have to deal with the after-effects of not only the global pandemic but new challenges. The backdrop as we enter 2023, it is clear that B2B leaders are bracing for economic upheaval. Concerns about inflation, higher interest rates, supply chain shortages, and the prospect of a looming recession are already forcing go-to-market leaders to rethink their growth strategies.

 

Though the general business sentiment is pessimistic, Digital Clarity has adapted its model to continually seek to focus on areas that will allow the business not only to survive during the turmoil but thrive as we come out of the challenging economic backdrop.

 

Digital Clarity has been pivoting during these challenging headwinds and working to build upon its experience in the B2B space and engaging with prospects in the SaaS and Tech market. The company is also looking to develop business in Web3 and Ai sectors as companies look to adapt to a changing business customer base.

 

WHY DIGITAL EXPERTS CONTINUE TO BE IN DEMAND

 

The world has changed. Digital is now within the fabric of everyday life. As consumer markets plateau and come under pressure, the move by Digital Clarity to meet the needs of the business-to-business sector, is both timely and has commercial growth potential.

 

dbmm20221130_10qimg001.jpg

 

15

 

 

The B2B buyer journey is complex. This is why experts like Digital Clarity need to be involved from the start.

 

Savvy communication experts like Digital Clarity produce ideas that shape perceptions and grow markets. There has never been a better time to navigate into the B2B Marketplace as demand for an experienced, safe pair of hands is required. This sector is growing rapidly and the demand for expertise and skill to help businesses in marketing their services and products is sought after. B2B digital ad spending is projected to reach $18.47 billion by 2024, it will account for nearly 50% of total B2B ad spending that year according to Insider Intelligence.

 

A hybrid approach to marketing in line with hybrid sales departments is expected to be the most dominant sales strategy by 2024 due to shifts in customer preferences and remote-first engagement according to McKinsey, The future of B2B sales Report 2022. Hybrid will drive up to 50 percent more revenue by enabling broader, deeper customer engagement and unlocking a more diverse talent pool than more traditional models.

 

Winning B2B organizations are shifting to a more hybrid sales force by implementing actions that support success.

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 client’s end-users queries in the easiest and most cost-efficient way possible -- be it by developing new technology or adapting to trends.

 

RELENTLESS 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 digital marketing puts the DBMM brand in an excellent position for investment and growth. As the consumer-facing market becomes even more commoditized, the company’s move to serving the business sector (B2B) will see it leveraging experience for growth.

 

dbmm20221130_10qimg002.jpg

 

 

Though the pandemic is certainly not over, the business world entered into a period of recovery in 2022. In the process, it’s become apparent that even if the ongoing shift toward digital and mobile advertising in B2B might slow down to a degree, it’s not going to stop.

 

16

 

 

THE SHIFT TO DIGITAL IS PERMANENT

 

Despite slower growth, digital will continue to command a greater overall share as more B2B marketers make the permanent shift from traditional advertising to online activities.

 

One of the most pronounced effects the pandemic had on B2B marketing was exponentially accelerating its transition into digital. As the business world begins recovering from the pandemic and returning to more traditional models, this transition has slowed down. The past year has affirmed, however, that it will not stop.

 

HOW MACHINE LEARNING IS ENHANCING DIGITAL MARKETING STRATEGY

 

Digital Clarity applies strategy to algorithmic based machine learning tools. The launch of Google’s new machine learning tool, RankBrain which contributes to search engine results, left many people wondering what impact machine learning would have in the realm of Search Engine Optimization (SEO).

 

With the tech industry going crazy for all things Artificial Intelligence (AI), Natural Language Processing (NLP), machine learning, and chatbots – companies like Digital Clarity help brands make sense of this ever-changing landscape.

 

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

 

With Google launching new “smart” features such as Google Smart Bidding, Smart Display Campaigns, and In-Market Audience to help businesses maximize conversions, it is clear that the future of PPC lies in machine learning.

 

To become more strategic and take PPC campaigns to the next level for its clients, Digital Clarity:

 

Get to grips with the metrics that are most valuable to your business

Understand obstacles that could get in the way of meeting your goals

Know the underlying performance drivers to make more strategic decisions

 

SEARCH - OVERALL

 

Search makes up half (52%) of advertising spend, increasing on par at 15% to $4.3bn, next is non-video display at $1.73bn (+9%), then video display $1.2bn (40%). Classifieds remains at $949m and other remained at $53.3m.

 

DIGITAL CLARITY EMBRACE GOOGLES MACHINE LEARNING MARKETING SUITE

 

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 Review by Deloitte, AI in Digital Marketing is not just getting bigger, it’s getting far more persuasive

 

MIT researchers 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 billion in funding last year, nearly twice the amount they raised the year before.

 

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 becoming more digital due to COVID-19.

 

dbmm20221130_10qimg003.jpg

 

 

SALES ARE GOING DIGITAL

 

Disruptive buyer dynamics are rewriting the rulebook for B2B sales, demanding digital-first engagement with customers. The rise in digital sales will be driven by marketing that creates demand and trust in brands.

 

This doesn’t portend the eventual “death of the sales rep,” but it does signal drastic changes needed in the seller role. Sales leaders must deliver significant value through digital and omnichannel sales models, aided by sales professionals who can steer self-learning customers toward more confident decisions. Digital delivers this.

 

THE GROWTH OF THE DIGITAL OMNICHANNEL

Gartner research shows a steady shift of customer preferences from in-person sales interactions to digital channels. B2B buyers spend only 17% of the total purchase journey with sales reps.

Because the average deal involves multiple suppliers, a sales rep gets roughly 5% of a customer’s total purchase time. And 44% of millennials prefer no sales rep interaction at all in a B2B setting.

 

Sales leaders must deliver significant value through digital and omnichannel sales models, aided by sales professionals who can steer self-learning customers toward more confident decisions.

 

dbmm20221130_10qimg004.jpg

 

18

 

 

OMNICHANNEL IS THE STANDARD, NOT THE EXCEPTION

 

Digital Clarity can help organizations adopt the B2B Omnichannel. Eight in ten B2B leaders say that omnichannel is as or more effective than traditional methods, a sentiment that has grown sharply in the last 2 years. Even as in-person engagement re-emerged as an option, buyers made clear they prefer a cross-channel mix, choosing in-person, remote, and digital self-serve interactions in equal measure.

 

Increasing demands from customers, the proliferation of sales channels, the increase in data availability, and the need to personalize content have driven the need for sales and marketing teams to work as one. In fact, 89 percent of respondents now say that marketing and sales need to work closely together, more so than ever before.

 

To help enable and drive increased sales, marketing teams have been busy. Fifty-two percent of respondents say their companies have conducted extensive primary research to improve customer experience. Another 51 percent have invested in new capabilities to enable personalized marketing, while 45 percent say their companies have recently re-evaluated the role of marketing in their organization overall.

 

McKinsey says that the equilibrium is no accident. As B2B buyers flexed to remote and digital ways of engaging, they found much to like. The use and preference for e-commerce—self-serve, for example—has continually grown year on year.

 

dbmm20221130_10qimg005.jpg

 

Omnichannel is more effective than traditional sales models alone. As more companies enable face-to-face, remote, and e-commerce interactions, satisfaction with the sales model has grown exponentially. More than 90 percent of B2B companies say their go-to-market model is just as or more effective than before the pandemic began.

 

DIGITAL CLARITY PERFECTLY POSITIONED FOR GROWTH

 

Organizations will have to fight hard to retain loyalty if customer needs are not met: for example, eight in ten B2B decision makers say they will actively look for a new supplier if performance guarantees.

 

Buyers are more willing than ever before to spend big through remote or online sales channels, with 35 percent willing to spend $500,000 or more in a single transaction. Seventy-seven percent of B2B customers are also willing to spend $50,000 or more.

 

B2B customers now regularly use ten or more channels to interact with suppliers.

 

Digital Clarity is a specialist in many of these channels and has been for a number of years. This expertise, experience, and trust will put Digital Clarity front of mind for organizations as they seek professional advice.

 

19

 

 

Some of the channels of focus are:

 

B2B DIGITAL MARKETING SERVICES

 

There is no denying the last year has proved challenging for Digital Marketing Services.

 

That said, the need for specialist marketing advisors is in demand. Google still dominates as part of the buying journey for both top and bottom of the buying funnel. SEO and Google’s algorithm has become more complex. Digital Clarity are perfectly positioned to help companies navigate the complexities.

 

dbmm20221130_10qimg006.jpg

 

 

20

 

 

CONTENT MARKETING

 

Content has become a critical tool in the marketing mix for almost every B2B brand. Nine out of ten B2B marketers are using content marketing strategies to pull in new customers. This year, the most successful marketers were already spending 40% or more of their budget on their content strategy.

 

At its simplest, B2B content marketing is when a brand uses stories, ideas, and insights to engage and influence a business audience.

dbmm20221130_10qimg007.jpg

 

There is a realization amongst B2B brands that rather than being faceless organizations, they need to tell their brand’s story and show a more human side to their business, endear and promote demand from other businesses and customers. The best content marketing campaigns back up these stories and ideas with robust insights: interesting data points, original research, and real-world examples that help their customers understand a new trend or challenge and equip them with the tools and best practices to respond and thrive.

 

These data points and research is utilized by Digital Clarity to support companies in shaping their content strategy. Typically, areas that Digital Clarity help clients are:

 

 

Blog posts – marketers who make blogging a priority are 13x more likely to see a positive ROI for their efforts.

 

 

White papers – favored by 22% of business leaders, these longer research-based reports provide more in-depth information. Learn more about writing a compelling B2B marketing white paper here.

 

 

Short-form articles – enjoyed by 37% of execs, these have to research-based if they are to stand out.

 

 

Case studies – these provide buyers with reassurance further down the buying funnel and can be made sector-specific. Nearly half of all business leaders appreciate them.

 

 

Infographics – these have become one of the most popular content marketing tools in recent years.

 

 

Podcasts – increasingly popular lead generation tools with marketers looking to deliver thought leadership content to buyers on the move.

 

 

Videos – companies using video, experience clickthrough rates that are 27% higher and web conversion rates 34% greater than those that don’t.

 

 

Email – nearly eight out of 10 marketers report see g an increase in email engagement over the past 12 months of 2022.

 

 

LinkedIn – generates more than 50% of all social traffic to B2B websites & blogs.

 

21

 

 

CONTENT IS INFORMATION, AND DISCOVERABLE INFORMATION DRIVES REVENUE

 

Information drives purchase ease and high-quality sales

All of this looping around and bouncing from one job to another means that buyers value suppliers that make it easier for them to navigate the purchase process.

 

In fact, Gartner research found that customers who perceived the information they received from suppliers to be helpful in advancing across their buying jobs were 2.8 times more likely to experience a high degree of purchase ease, and three times more likely to buy a bigger deal with less regret.

 

Digital Clarity has a process that helps shape their client’s content to become more discoverable information, and this increases revenues.

 

dbmm20221130_10qimg008.jpg

 

Buyer enablement, or the provisioning of information to customers in a way that enables them to complete information online, like gathering information or making a purchase, is an area that Digital Clarity are helping organizations.

 

KEY MILESTONES

 

As the market conditions in the consumer market cool slightly, the team at Digital Clarity has been busy pivoting their business model to address the need in the 2b2 business sector. This is a more strategic offering for prospective customers.

 

Digital Clarity has started offering a wider array of services to it fast-growing S company in the US. Services include, LinkedIn strategy, content positioning and SEO.

 

Digital Clarity has attended a major convergence summit with its client in the Unified Communication and Digital Transformation arena. This allowed the team to meet with the likes of SaaS CX providers, 8x8, Five9, and Mitel, amongst others. This will be an area of focus for the company into 2023.

 

In October, Digital Clarity was part of a select group that part of a panel that discussed the impact of NFTs, Blockchain and the growth of Web 3 and the Metaverse. The event was arranged by leading law firm Memery Crystal, part of Rosenblatt.

 

Digital Clarity has been on a large business development push and attended various networking events in London. The events include Enterprise Cyber Security hosted at the London Stock Exchange as well as diverse events in DeFi and InsureTech.

 

Other examples are representative of the diversity of client base. DBMM's approach using a client's analytics and executing an individualized model to increase ROI as the prime objective, spans a wide range of industries.

 

22

 

 

Core industry verticals for Digital Clarity include: B2B, SaaS, Digital Transformation, FinTech, Unified Communication Companies and discretionary advice for professional service providers and consultants.

 

THE GROWTH OF DIGITAL MARKETING & CONSULTANCY 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 PricewaterhouseCoopers rank 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 Consulting and 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 CONSULTANCY 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.

 

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 WORLDWIDE

 

The Global Digital Transformation Market size is expected to reach $1.3 billion by 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.

 

THE IMPORTANCE OF STRATEGIC MARKETING CONSULTANCY

 

The fundamentals of marketing may not have changed, but everything else has: goals, roles, expectations, talent needs, and more. B2B marketing leaders need to navigate this new terrain and build the capabilities needed to win. Digital Clarity helps these organizations win.

 

Across industries, organizations are accelerating digital transformation processes for long-term growth and profitability. Yet: “53% of the organizations surveyed remain untested in the face of digital challenge and their digital transformation readiness therefore uncertain.” This report from Gartner highlights the need 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.

 

23

 

 

Adobe says that Business-to-business (B2B) commerce will continue to undergo a major transformation 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 has created a unique Diagnosis Workshop that helps brands identify needs as well as assess the opportunity available. The core focus is to help reduce wastage and increase results.

 

Areas of focus include:

 

 

Cost analysis

 

 

Audit current channels

 

 

Digital strategy planning

 

 

ROI projection planning

 

 

Digital consulting and training

 

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 billion on digital ads this year, or 51% of the $214.6 billion total 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 the path to successful customer acquisition lies in understanding a client’s business – not just running a campaign. We seek to help clients understand that success has to 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 emotive force that if done right, will bring real business change and growth.

 

 

3.

We are Digital Thinkers

Marketing has to be at the heart of the business. Delivering real innovation in digital marketing requires not just knowledge but authority and bravery. We think digital. We drive results.

 

 

4.

Our goal is to deliver Digital Performance

 

We help our clients to understand their goals and objectives, using digital marketing to drive new business opportunities and retain their current customers.

 

HIS Markit, a research firm, reported: “Each dollar that companies spent on advertising in the United States last year, led to $9 in sales.

 

THE GROWTH OF B2B SOCIAL MEDIA

 

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.

 

24

 

 

This priority has raised the profile of marketing as companies scramble to understand the digital-first consumer. The battleground for 2023 will be about speed and agility. Now that many companies have treasure troves of data, the difference is how fast they can personalize the experience and respond to consumer behaviors. Expect to see more investment and innovation in technology infrastructure alongside marketing.

 

 

76% of B2B organizations use social media analytics to measure content performance.

 

 

By 2025, 80% of B2B sales interactions will occur on digital channels.

 

 

U.S. B2B business will spend an estimated $1.99 billion in 2022, and $2.33 billion in 2023.

 

GROWTH IN LINKEDIN ADVERTISING SET TO SOAR BEYOND 2023

 

Almost all B2B content marketers (96%) use LinkedIn. They also rated it as the top-performing organic platform.

For paid social posts, the picture is similar but not identical.

 

Digital Clarity help business organization make the most of LinkedIn. We help customers understand and build campaigns around the 95-5 rule. The 95-5 rule advises you market mostly to buyers who are not likely to buy from you today.

 

dbmm20221130_10qimg009.jpg

 

THE NEW NORMAL IS DIGITAL

 

In just one-year, since the pandemic. digital adoption has happened at five to ten times the projected rate.

 

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 OUTREACH.

 

We expect that, in 2023, 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.

 

25

 

 

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 following the closure of the SEC review with a final order of the earlier dismissal, 2023 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.

 

On October 26, 2022, FINRA processed a Form 211 relating to the initiation of priced quotations of our shares of common stock, which means that the submitting broker-dealer has demonstrated to FINRA compliance with FINRA Rule 6432 and therefore has met the requirements under that rule to initiate a quotation for our shares of common stock within four days of October 26, 2022. FINRA’s processing of a Form 211 in no way constitutes FINRA’s approval of the security, the issuer, or the issuer’s business and relates solely to the submitting broker-dealer’s obligation to comply with FINRA Rule 6432 and SEA Rule 15c2-11 when quoting a security. (FINRA TO Glendale Securities)

 

After OTC Markets’ review of our activities following their process, our shares of common stock returned to normal market trading without restriction or caveat emptor. The caveat emptor was removed on December 20, 2022. Accordingly, plans to grow investor awareness and outreach are underway

 

Glendale Securities, Inc. is the designated Market Maker.

 

FINANCIAL OVERVIEW/OUTLOOK

 

DBMM has been honing its commercial model since the acquisition of Digital Clarity (“DC”) in 2011, and has been cash flow-positive as an operating company since then. Unfortunately, external events outside of DBMM’s control have precluded the growth expected to this point; however, its margins of 35-50% are accurate. Aspirationally, when the Company reaches appropriate scale and profitability TBD, the business will meet all stakeholder expectations.

 

The growth trajectory anticipated during 2022 remained deferred until the Company returns to normal business and normal trading. Normal trading has resumed and the clients will benefit immediately due to a wider range of resources, and 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 fastest growing industries in the world today. The trading in our shares of common stock returned to normal on December 20, 2022 with no restrictions. The US retail marketplace of our shares of common stock was open finally to all investors.

 

DBMM’s place in the industry reputationally is strong, particularly for its size. The industry environment continues to grow exponentially, and digital marketing and company transformation is an essential strategy for any commercial activity, and thus has become embedded in planning.

 

Since 2020, revenues have slowed down temporarily due to a number of factors: 1) client uncertainty caused by Brexit trade issues, 2) COVID-19 global slowdown with some clients pausing as lockdowns stopped and started, 3) clients needing to extend or double down lacked the resources. To address the changing environment, the business development model has evolved and, as such, Digital Clarity has earned a “seat at the table,” client by client. With precision, the revenues are turning around.

 

Several years ago, the Company received a commitment for future working capital to grow the Company in key markets. Growth capital will be directed to support a client base rebalancing and leveraging of a very dynamic, transformational, digital landscape. DC’s mantra remains the same: “ROI is our DNA.”

Going forward, there will be an emphasis on investor awareness as soon as normal business and normal trading has recommenced. DBMM intends to make significant strides in aggressively broadening its brand exposure. There are investors around the globe who understand the digital marketplace and its increasing influence on commercial decisions. DBMM will be targeting new shareholders in the public market through a global digital and traditional, integrated campaign run by DC, with third parties, as required for distribution.

 

The expectations for fiscal year 2023 was to return to normal trading first, which now has occurred, and then move ahead to a scaled growth plan in multiple geographies. The result will benefit all stakeholders.

 

The Company resolved in 2015 to eliminate any consideration of using convertible debentures as a financing vehicle. Accordingly, the Company has not issued convertible debentures since 2015.

 

26

 

 

Additionally, we have demonstrated our adherence to such philosophy by renegotiating its obligations with lenders at fixed settlement amounts with no conversion terms. Furthermore, such renegotiations lead to the derecognition of derivative liabilities overhanging our balance sheet. The Company intends to continue its debt negotiation and modification program.

 

This has been a successful strategy thus far:

 

During fiscal year 2021 and so far in 2022, and to a lesser extent in fiscal 2020, we successfully reached agreements with certain lenders resulting in a 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 $169,837 and $57,802 during fiscal 2021 and 2020, respectively.

 

We also successfully reached an agreement with a holder of convertible debentures aggregating $249,800 to 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 $260,000 during fiscal 2021.

 

Lastly, in March 2022, we reached an agreement with a holder of convertible debentures to satisfy obligations aggregating $85,000 in consideration of 30 million shares of the Company’s common stock.

 

THREE-MONTH PERIOD ENDED NOVEMBER 30, 2022

 

We had approximately $16,000 in cash and our working capital deficiency amounted to approximately $6.3 million at November 30, 2022.

 

During the three-month period ended November 30, 2022, we used cash in our operating activities amounting to approximately $115,000. Our cash used in operating activities was comprised of our net loss of approximately $365,000 adjusted primarily for the following:

 

Change in fair value of derivative liability of approximately $166,000;

 

Additionally, the following variations in operating assets and liabilities during the three-month period ended November 30, 2021 impacted our cash used in operating activity:

 

Increase of accounts payable, accrued expenses, accrued interest, and accrued compensation, of approximately $83,000, resulting from a short fall in liquidity and capital resources.

 

We generated cash from financing activities of $121,191 which primarily consists of the proceeds from notes payable.

 

THREE-MONTH PERIOD ENDED NOVEMBER 30, 2021

 

We had approximately $15,000 in cash and our working capital deficiency amounted to approximately $5.7 million at November 30, 2021.

 

During the three-month period ended November 30, 2021, we used cash in our operating activities amounting to approximately $100,000. Our cash used in operating activities was comprised of our net loss of approximately $146,000 adjusted primarily for the following:

 

Additionally, the following variations in operating assets and liabilities during the three-month period ended November 30, 2021 impacted our cash used in operating activity:

 

Accounts payable, accrued expenses, accrued interest, and accrued compensation, of approximately $37,000, resulting from a short fall in liquidity and capital resources.

 

We generated cash from financing activities of $106,213 which primarily consists 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, general 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 income

    -       (98,262

)

    (98,262

)

    NM  

Change in fair value of derivative liability

    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 meaningful

                               

 

We currently generate revenue through our Pay-Per-Click Advertising, Search Engine Marketing, Search Engine Optimization Services, Web Design, Social Media, Digital analytics and Advisory Services.

 

For the three-month period ended November 30, 2022 our primary sources of revenue are the Web design and advisory services, Per-Click Advertising, and Social Media. These primary sources amounted to 48%, 38%, and 14% of our revenues, respectively during the three-month period ended November 30, 2022.

 

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 decrease in our revenues during the three-month period ended November 30, 2022, when compared to the prior year, is due to a lower exchange rate in the first quarter of 2022 which reduces our revenues when converted in US$.

 

During the three-month period ended November 30, 2022, our cost of sales decreased due to reduction in compensation streamlining our delivery of services.

 

The sales, general and administrative expenses during the three-month period ended November 30, 2022 is at comparable levels to those incurred in the prior period.

 

Interest expense during the three-month were consistent when compared to those incurred in the prior period.

 

28

 

 

The decrease in other income during the first quarter of 2022 is primarily due to research and development credits not claimed during that period while they were claimed in the first quarter of 2021.

 

The increase in derivative liabilities during the three-month period ended November 30, 2022 is primarily attributable to an increase in the Company’s stock price used in the assumptions to compute its fair value at November 30, 2022 when compared to November 30, 2021.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

 

As a “smaller reporting company”, as defined by Rule 10(f)(1) of Regulation S-K, the Company is not required to provide this information.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

As of the end of the period covered by this report, management, including our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Act.

 

Based upon the evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of November 30, 2022. Our management concluded that the consolidated financial statements included in this report fairly present, in all material respects, our financial position, results of operations and cash flows for the period presented in accordance with GAAP.

 

Changes in Internal Controls Over Financial Reporting:

 

There were no changes in our internal control over financial reporting during the quarter ended November 30, 2022 identified in connection with the evaluation thereof by our management, including our Principal Executive Officer and Principal Financial Officer, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

29

 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

The U.S. Securities & Exchange Commission instituted an Administrative Proceeding, File No. 3-17990, on May 16, 2017 to revoke the Company's registration statement because of delinquent filings. A hearing was held on August 9, 2017 and the Initial Decision to revoke the registration was dated November 16, 2017. The order was subsequently remanded by order of the U.S. Supreme Court in December 2017. The Company responded to the Remand with evidence of mitigating circumstances under a Protective Order and filed all its delinquent filings: a Super 10-K for 2015-2016-2017 on May 31, 2018 and 10-Q's for 2018 1Q, 2Q on June 22, 2018 and 3Q on July 15, 2018, its due date.

 

The Hearing for January 15, 2019 was re-scheduled because of government shutdown. Digital Brand entered a Motion to Dismiss the Proceedings on March 19, 2019 based on being current as of July 2018, and all filings to date have been filed on time for the 2019 fiscal year. The facts were presented at the hearing. The Division did not support the dismissal in a response to which Digital Brand filed two Amendments to the Consolidated 10-K for 2015- 2016-2017 and the 10-K for 2018 on April 23 and 24, 2019 respectively, and Amendments No. 2 on October 1, 2019 to supersede language in Part II, Item 9A. On November 12, 2019, Carol Fox Foelak, Administrative Law Judge, Securities & Exchange Commission ordered an Initial Decision/Dismissal of the Proceeding. The Dismissal would have become effective under Rule 360 of the Commission's Rules of Practice, 17 C.F.R., Section 201.360, following the Commission’s Order of Finality. Unfortunately, on December 3, 2019 The Division of Enforcement Submitted a Petition for Review of Judge Carol Fox Foelak’s Initial Decision dismissing the Administrative Proceedings rendered on November 12, 2019. The Company filed a Motion for summary affirmance of the Initial Decision on December 20, 2019. The Motion for Summary Affirmance was not opposed by Enforcement, nevertheless the Petition for Review (“PFR”) was filed earlier.

.

On January 25, 2021, the Commission denied the Company’s Motion for Summary Affirmance of Judge Carol Fox-Foelak’s Dismissal of November 12, 2019 and granted the Division’s Petition for Review and set a briefing schedule beginning February 24, 2021. The Commission concluded that “briefing in the ordinary course would...assist the Commission. This appeal raises issues as to which we have an interest in articulating our views and important matters of public interest, including the proper application of the standard that governs determination of sanctions in a Section 12(j) proceeding.” Both parties have briefed and concluded April, 2021. The Company is disappointed that so much time has been lost and continues to vociferously support the original Dismissal three years ago.

 

The Commission notified the Company on December 9, 2021 that an extension of 90 days to issue a decision has been ordered. A fifth extension was ordered for an additional 90 days to conclude by March 6, 2023.

 

Shareholders have been significantly damaged by the protracted SEC matter. The delays were further exacerbated by the unnecessary PFR requested by the Division of Enforcement while the Company continues to meet its reporting compliance in good faith as committed to the court and contained in its cured SEC filings and thereafter. The Company continues to review options to bring this matter to conclusion as soon as possible.

 

From time to time, the Company has become or may become involved in certain lawsuits and legal proceedings which arise in the ordinary course of business. The Company intends to vigorously defend its positions. However, litigation is subject to inherent uncertainties and an adverse result in those or other matters may arise from time to time that may harm its financial position, or our business and the outcome of these matters cannot be ultimately predicted.

 

Item 1A. Risk Factors

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this item.

 

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

 

None

 

Item 3. Defaults Upon Senior Securities

 

None.

 

30

 

 

Item 4. Submission of Matters to a Vote of Security Holders

 

None.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

31.1

 

Principal Executive Officer Rule 13a-14(a) Certification

Principal Financial Officer

Executive Director

32.1

 

Principal Executive Officer Sarbanes-Oxley Act Section 906 Certification

Principal Financial Officer

Executive Director

 

 

 

101.INS

 

Inline XBRL Instance Document

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

 

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

31

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC.

 

Date: January 13, 2023

 

By: /s/ Linda Perry                          

Linda Perry

Principal Executive Officer

Principal Financial Officer

Executive Director

 

 

 

32
NONE false --08-31 Q1 2023 0001127475 0001127475 2022-09-01 2022-11-30 0001127475 2023-01-13 0001127475 2022-11-30 0001127475 2022-08-31 0001127475 dbmm:PreferredStockSeries1Member 2022-11-30 0001127475 dbmm:PreferredStockSeries1Member 2022-08-31 0001127475 dbmm:PreferredStockSeries2Member 2022-11-30 0001127475 dbmm:PreferredStockSeries2Member 2022-08-31 0001127475 2021-09-01 2021-11-30 0001127475 dbmm:PreferredStockSeries1Member us-gaap:PreferredStockMember 2022-08-31 0001127475 dbmm:PreferredStockSeries1Member us-gaap:PreferredStockMember 2021-08-31 0001127475 dbmm:PreferredStockSeries1Member us-gaap:PreferredStockMember 2022-11-30 0001127475 dbmm:PreferredStockSeries1Member us-gaap:PreferredStockMember 2021-11-30 0001127475 dbmm:PreferredStockSeries2Member us-gaap:PreferredStockMember 2022-08-31 0001127475 dbmm:PreferredStockSeries2Member us-gaap:PreferredStockMember 2021-08-31 0001127475 dbmm:PreferredStockSeries2Member us-gaap:PreferredStockMember 2022-11-30 0001127475 dbmm:PreferredStockSeries2Member us-gaap:PreferredStockMember 2021-11-30 0001127475 us-gaap:CommonStockMember 2022-08-31 0001127475 us-gaap:CommonStockMember 2021-08-31 0001127475 us-gaap:CommonStockMember 2022-11-30 0001127475 us-gaap:CommonStockMember 2021-11-30 0001127475 us-gaap:AdditionalPaidInCapitalMember 2022-11-30 0001127475 us-gaap:AdditionalPaidInCapitalMember 2021-11-30 0001127475 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-08-31 0001127475 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-08-31 0001127475 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-09-01 2022-11-30 0001127475 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-09-01 2021-11-30 0001127475 2021-11-30 0001127475 us-gaap:RetainedEarningsMember 2022-08-31 0001127475 us-gaap:RetainedEarningsMember 2021-08-31 0001127475 us-gaap:RetainedEarningsMember 2022-09-01 2022-11-30 0001127475 us-gaap:RetainedEarningsMember 2021-09-01 2021-11-30 0001127475 us-gaap:RetainedEarningsMember 2022-11-30 0001127475 us-gaap:RetainedEarningsMember 2021-11-30 0001127475 2021-08-31 0001127475 srt:MinimumMember 2022-09-01 2022-11-30 0001127475 srt:MaximumMember 2022-09-01 2022-11-30 0001127475 srt:MinimumMember 2022-11-30 0001127475 srt:MaximumMember 2022-11-30 0001127475 srt:MinimumMember 2022-08-31 0001127475 srt:MaximumMember 2022-08-31 0001127475 2021-09-01 2022-08-31 0001127475 us-gaap:MeasurementInputPriceVolatilityMember 2022-11-30 0001127475 us-gaap:MeasurementInputPriceVolatilityMember 2022-08-31 0001127475 us-gaap:MeasurementInputRiskFreeInterestRateMember 2022-11-30 0001127475 us-gaap:MeasurementInputRiskFreeInterestRateMember 2022-08-31 0001127475 us-gaap:MeasurementInputExpectedTermMember 2022-11-30 0001127475 us-gaap:MeasurementInputExpectedTermMember 2022-08-31 0001127475 us-gaap:MeasurementInputExpectedDividendRateMember 2022-11-30 0001127475 us-gaap:MeasurementInputExpectedDividendRateMember 2022-08-31 0001127475 dbmm:PreferredStockSeries1Member 2022-09-01 2022-11-30 0001127475 dbmm:PreferredStockSeries2Member 2022-09-01 2022-11-30 0001127475 2016-04-04 0001127475 country:US 2022-09-01 2022-11-30 0001127475 country:GB 2022-09-01 2022-11-30 0001127475 country:US 2022-11-30 0001127475 country:GB 2022-11-30 0001127475 country:US 2021-09-01 2021-11-30 0001127475 country:GB 2021-09-01 2021-11-30 0001127475 country:US 2021-11-30 0001127475 country:GB 2021-11-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure
Digital Brand Media and ... (PK) (USOTC:DBMM)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Digital Brand Media and ... (PK) Charts.
Digital Brand Media and ... (PK) (USOTC:DBMM)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Digital Brand Media and ... (PK) Charts.