XML 31 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Segment Information
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Segment Information [Abstract]    
Segment Information

Note 12 – Segment Information 

 

We operate in three reportable segments: Creatd Labs, Creatd Ventures, and Creatd Partners. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our Chief Operating Decision Maker (CODM) to evaluate performance, which is generally the segment’s operating losses.

 

Operations of:   Products and services provided:
Creatd Labs   Creatd Labs is the segment focused on development initiatives. Creatd Labs houses the Company’s proprietary technology, including its flagship platform, Vocal, as well as oversees the Company’s content creation framework, and management of its digital communities. Creatd Labs derives revenues from Vocal creator subscriptions, platform processing fees and technology licensing fees.  
     
Creatd Ventures  

Creatd Ventures builds, develops, and scales e-commerce brands. This segment generates revenues through product sales of its two majority-owned direct-to-consumer brands, Camp and Dune Glow Remedy.  

 

Creatd Partners   Creatd Partners fosters relationships between brands and creators through its suite of agency services, including content marketing (Vocal for Brands), performance marketing (Seller’s Choice), and influencer marketing (WHE Agency). Creatd Partners derives revenues in the form of brand fees and talent management commissions.

 

The following tables present certain financial information related to our reportable segments and Corporate:

 

   As of March 31, 2023 
   Creatd Labs   Creatd Ventures   Creatd Studios   Creatd Partners   Corporate   Total 
                         
Accounts receivable, net  $
-
   $4,972   $
-
   $239,381   $
-
   $244,353 
Prepaid expenses and other current assets   25,575    
-
    
-
    
-
    248,506    274,080 
Deposits and other assets   915,279    
-
    
-
    
-
    137,675    1,052,954 
Intangible assets   
-
    217,176    14,108    
-
    
-
    231,283 
Goodwill   
-
    46,460    
-
    
-
    
-
    46,460 
Inventory   16,374    198,633    41,250    
-
    
-
    256,257 
All other assets   
-
    
-
    
-
    
-
    2,369,947    2,369,948 
Total Assets  $957,228   $467,241   $55,358   $239,381   $2,756,128   $4,475,336 
                               
Accounts payable and accrued liabilities  $2,019   $1,514,866   $22,750   $433,409   $9,136,296   $11,109,340 
Note payable, net of debt discount and issuance costs   474,496    139,770    
-
    
-
    988,355    1,602,621 
Deferred revenue   253,348    
-
    
-
    
-
    
-
    253,348 
All other Liabilities   
-
    
-
    
-
    
-
    6,862,324    6,862,324 
Total Liabilities  $729,863   $1,654,636   $22,750   $433,409   $16,986,975   $19,827,633 

 

   As of December 31, 2022 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Studios		   Creatd
Partners		   Corporate   Total 
                         
Accounts receivable, net  $
-
   $11,217   $
            -
   $228,206   $
-
   $239,423 
Prepaid expenses and other current assets   23,712    40,681    
-
    
-
    64,154    128,547 
Deposits and other assets   629,955    2,600    
-
    
-
    164,676    797,231 
Intangible assets   
-
    207,301    
-
    
-
    22,783    230,084 
Goodwill   30,125    46,460    
-
    
-
    
-
    76,585 
Inventory   
-
    374,845    
-
    
-
    
-
    374,845 
All other assets   
-
    
-
    
-
    
-
    2,973,034    2,973,034 
Total Assets  $683,792   $683,104   $
-
   $228,206   $3,224,647   $4,819,749 
                               
Accounts payable and accrued liabilities  $8,495   $1,635,298   $
-
   $509,931   $5,411,996   $7,565,720 
Note payable, net of debt discount and issuance costs   130,615    184,160    
-
    
-
    1,368,919    1,683,694 
Deferred revenue   275,017    
-
    
-
    24,392    
-
    299,409 
All other Liabilities   
-
    
-
    
-
    
-
    7,774,125    7,774,125 
Total Liabilities  $414,127   $1,819,458   $
-
   $534,323   $14,555,040   $17,322,948 

 

   For the three months ended March 31, 2023 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Studios		   Creatd
Partners		   Corporate   Total 
                         
Net revenue  $299,195   $410,894   $28,869   $247,187   $
-
   $986,145 
Cost of revenue   232,098    703,253    2,500    74,836    
-
    1,012,687 
Gross margin   67,097    (292,359)   26,369    172,351    
-
    (26,542)
                               
Compensation   787,259    134,050    41,538    2,638    3,149,038    4,114,523 
Research and development   131,626    
-
    
-
    
-
    
-
    131,626 
Marketing   532,065    3,456    
-
    
-
    
-
    535,521 
Stock based compensation   1,685,450    1,538,889    
-
    1,685,450    2,418,255    7,328,044 
General and administrative   173,831    77,133    41,223    78,761    1,165,610    1,536,558 
Depreciation and amortization   
-
    8,025    
-
    
-
    30,776    38,801 
Total operating expenses  $3,310,231   $1,761,553   $82,761   $1,766,849   $6,763,679   $13,685,073 
                               
Interest expense  $16,778   $
-
   $
-
   $2,266   $46,326   $65,370 
All other expenses   
-
    
-
    
-
    
-
    (2,309,280)   (2,309,280)
                               
Other expenses, net  $16,778   $
-
   $
-
   $2,266   $(2,262,954)  $(2,243,910)
Loss before income tax provision and equity in net loss from unconsolidated investments  $(3,226,356)  $(2,053,912)  $(56,392)  $(1,592,232)  $(9,026,633)  $(15,955,525)

 

   For the three months ended March 31, 2022 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Studios		   Creatd
Partners		   Corporate   Total 
                         
Net revenue  $508,268   $254,690    
     -
   $585,780   $
-
   $1,348,738 
Cost of revenue   706,196    409,969    
-
    456,005    
-
    1,572,170 
Gross margin   (197,928)   (155,279)   
-
    129,775    
-
    (223,432)
                               
Compensation   129,009    195,442    
-
    249,608    299,151    873,210 
Research and development   134,876    
-
    
-
    91,778    
-
    226,654 
Marketing   970,484    1,013,706    
-
    
-
    107,831    2,092,021 
Stock based compensation   251,907    226,298    
-
    248,548    354,039    1,080,792 
General and administrative   89,757    92,830    
-
    128,884    2,059,812    2,371,283 
Depreciation and amortization   
-
    71,271    
-
    31,599    39,022    141,892 
Impairment of goodwill   
-
    
-
    
-
    
-
    
-
    
-
 
Impairment of intangibles   
-
    
-
    
-
    
-
    
-
    
-
 
Total operating expenses  $1,576,033   $1,599,547    
-
   $750,417   $2,859,855   $6,785,852 
                               
Interest expense   (13,229)   
-
    
-
    
-
    (667)   (13,896)
All other expenses   
-
    
-
    
-
    
-
    142,132    142,132 
                               
Other expenses, net   (13,229)   
-
    
-
    
-
    141,465    128,236 
Loss before income tax provision and equity in net loss from unconsolidated investments  $(1,787,190)  $(1,754,826)  $
-
   $(620,642)  $(2,718,390)  $(6,881,048)

Note 13 – Segment Information 

 

We operate in three reportable segments: Creatd Labs, Creatd Ventures, and Creatd Partners. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our Chief Operating Decision Maker (CODM) to evaluate performance, which is generally the segment’s operating losses.

 

Operations of:   Products and services provided:
Creatd Labs  

Creatd Labs is the segment focused on development initiatives. Creatd Labs houses the Company’s proprietary technology, including its flagship platform, Vocal, as well as oversees the Company’s content creation framework, and management of its digital communities. Creatd Labs derives revenues from Vocal creator subscriptions, platform processing fees and technology licensing fees.  

 

Creatd Ventures  

Creatd Ventures builds, develops, and scales e-commerce brands. This segment generates revenues through product sales of its two majority-owned direct-to-consumer brands, Camp and Dune Glow Remedy.  

 

Creatd Partners   Creatd Partners fosters relationships between brands and creators through its suite of agency services, including content marketing (Vocal for Brands), performance marketing (Seller’s Choice), and influencer marketing (WHE Agency). Creatd Partners derives revenues in the form of brand fees and talent management commissions.

 

The following tables present certain financial information related to our reportable segments and Corporate:

 

   As of December 31, 2022 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Partners		   Corporate   Total 
                     
Accounts receivable, net  $
-
   $11,217   $228,206   $
-
   $239,423 
Prepaid expenses and other current assets   23,712    40,681    
-
    64,154    128,547 
Deposits and other assets   629,955    2,600    
-
    164,676    797,231 
Intangible assets   
-
    207,301    
-
    22,783    230,084 
Goodwill   
-
    46,460    
-
    
-
    46,460 
Inventory   30,125    374,845    
-
    
-
    404,970 
All other assets   
-
    
-
    
-
    2,973,034    2,973,034 
Total Assets  $683,792   $683,104   $228,206   $3,224,647   $4,819,749 
                          
Accounts payable and accrued liabilities  $8,495   $1,635,298   $509,931   $5,411,996   $7,565,720 
Note payable, net of debt discount and issuance costs   130,615    184,160    
-
    1,368,919    1,683,694 
Deferred revenue   275,017    
-
    24,392    
-
    299,409 
All other Liabilities   
-
    
-
    
-
    7,774,125    7,774,125 
Total Liabilities  $414,217   $1,819,458   $534,323   $14,555,040   $17,322,948 

 

   As of December 31, 2021 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Partners		   Corporate   Total 
                     
Accounts receivable, net  $
-
   $2,884   $334,556   $
-
   $337,440 
Prepaid expenses and other current assets   48,495    
-
    
-
    188,170    236,665 
Deposits and other assets   626,529    
-
    
-
    92,422    718,951 
Intangible assets   
-
    1,637,924    783,676    11,241    2,432,841 
Goodwill   
-
    25,139    1,349,696    
-
    1,374,835 
Inventory   
-
    106,403    
-
    
-
    106,403 
All other assets   
-
    
-
    
-
    3,966,124    3,966,124 
Total Assets  $675,024   $1,772,350   $2,467,928   $4,257,957   $9,173,259 
                          
Accounts payable and accrued liabilities  $9,693   $766,253   $6,232   $2,948,362   $3,730,540 
Note payable, net of debt discount and issuance costs   313,979    
-
    
-
    1,028,685    1,342,664 
Deferred revenue   161,112    13,477    59,570    
-
    234,159 
All other Liabilities   
-
    
-
    
-
    177,644    177,644 
Total Liabilities  $484,784   $779,730   $65,802   $4,154,691   $5,485,007 

 

   For the year December 30, 2022 
   Creatd
Labs		   Creatd Ventures   Creatd Partners   Corporate   Total 
                     
Net revenue  $1,616,278   $1,456,593   $1,723,603   $
-
   $4,796,474 
Cost of revenue   2,000,970    2,807,285    1,300,951    
-
    6,109,206 
Gross margin (loss)   (384,692)   (1,350,692)   422,652    
-
    (1,312,732)
                          
Compensation   1,794,003    826,185    931,158    1,127,044    4,678,390 
Research and development   606,211    
-
    345,203    
-
    951,414 
Marketing   2,722,579    1,675,083    302,509    
-
    4,700,171 
Stock based compensation   864,507    781,928    887,627    1,649,782    4,183,844 
General and administrative not including depreciation, amortization, or Impairment   246,540    592,210    509,757    7,675,921    9,024,428 
Depreciation and amortization   
-
    143,360    132,683    316,096    592,139 
Impairment of intangibles   213,141    365,732    
-
    3,009,121    3,587,994 
                          
Total operating expenses  $4,439,837   $3,558,313   $2,177,779   $12,650,920   $27,718,380 
                          
Interest expense   (33,938)   298    
-
    (787,411)   (821,051)
All other expenses   
-
    
-
    
-
    (5,824,152)   (5,824,152)
Other expenses, net   (33,938)   298    
-
    (6,611,563)   (6,645,203)
                          
Loss before income tax provision  $(4,858,467)  $(4,908,707)  $(1,755,127)  $(19,262,483)  $(35,676,315)

 

   For the year ended December 31, 2021 
   Creatd Labs   Creatd Ventures   Creatd Partners   Corporate   Total 
                     
Net revenue  $1,926,374   $90,194   $2,283,149   $
-
   $4,299,717 
Cost of revenue   3,186,240    148,989    1,964,808    
-
    5,300,037 
Gross margin   (1,259,866)   (58,940)   318,341    
-
    (1,000,320)
                          
Research and development   758,293    131    225,104    
-
    983,528 
Marketing   8,182,935    
-
    962,698    481,349    9,626,982 
Stock based compensation   1,727,021    1,560,546    1,884,986    4,488,615    9,661,168 
Impairment of  goodwill   
-
    
-
    1,035,795    
-
    1,035,795 
General and administrative not including depreciation,  amortization, or Impairment   3,918,130    1,665,783    1,600,212    2,791,236    9,975,360 
Depreciation and amortization   
-
    100,633    252,730    44,076    397,440 
Impairment of intangibles   
-
    
-
    688,127    
-
    688,127 
                          
Total operating expenses  $14,586,379   $3,327,093   $6,649,652   $11,803,003   $32,368,400 
                          
Interest expense   (12,706)   
-
    
-
    (359,400)   (372,106)
All other expenses   
-
    
-
    
-
    (3,638,327)   (3,638,327)
Other expenses, net   (12,706)             (3,997,727)   (4,010,433)
                          
Loss before income tax provision and equity in net loss from unconsolidated investments  $(15,858,951)  $(3,385,888)  $(6,331,311)  $(11,803,003)  $(37,379,153)