UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02. Results of Operations and Financial Condition.
On November 10, 2021, Clubhouse Media Group, Inc. (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2021. The full text of the press release is furnished as Exhibit 99.1 hereto.
The information in Item 2.02, including the information contained in Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press release of the registrant issued November 10, 2021. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: November 10, 2021 | CLUBHOUSE MEDIA GROUP, INC. | |
| By: | /s/ Amir Ben-Yohanan | |
| Amir Ben-Yohanan | ||
| Chief Executive Officer | ||
Exhibit 99.1
Clubhouse Media Group Reports 90% Sequential Increase in Net Revenue for Third Quarter of 2021
Third Quarter Net Revenue Reaches $1.8 Million, Representing a 90% Increase from Second Quarter of 2021
LOS ANGELES, November 10, 2021 — Clubhouse Media Group, Inc. (OTCMKTS: CMGR) (“Clubhouse Media”), an influencer-based social media firm and digital talent management agency, today announced financial results for the third quarter of 2021.
“Clubhouse Media’s momentum is continuing to build,” said Dmitry Kaplun, Chief Financial Officer of Clubhouse Media. “In the third quarter, net revenue nearly doubled compared to the previous quarter, as we continue to add new brands to our customer base. We signed many deals with new influencers during the quarter, as well. We remain focused on driving further topline growth while continuing to invest in the business.”
“Development of our Magiclytics software and HoneyDrip platform is also progressing. Magiclytics is a predictive software which enables brands to predict their return on investment through influencer spend. We believe that this will be a very useful tool that will support the growth of revenue. We expect to launch Magiclytics in the first half of 2022. HoneyDrip, a digital space for creators to share exclusive photo and video content directly with subscribers launched in September. We’ve had good traction and a positive response since we began offering HoneyDrip’s subscription-based services. Subsequent to the quarter’s end, we closed a $15 million equity line. With the momentum that we’ve built and the necessary capital in place to execute our strategic plans, we’re confident in the outlook for Clubhouse Media,” concluded Mr. Kaplun.
Amir Ben-Yohanan, Chief Executive Officer of Clubhouse Media, added, “Overall, we are happy with the third quarter results and we expect to accomplish much more in the future. The addition of Dmitry Kaplun to the management team has reinforced our financial structure and processes. In addition, working with The Reiman Agency has helped us to achieve record sales as we build our digital agency business.”
Third Quarter 2021 Financial Results
Net revenue reached $1,768,677 for the three months ended September 30, 2021, compared to net revenue of $217,372 for the three months ended September 30, 2020. The 8-fold increase was due to the significant growth of brand and agency deals over the past year. Also contributing to the growth was the recent partnership with The Reiman Agency. Net revenue increased 90% from the $929,962 reported for the quarter ended June 30, 2021.
Operating expenses for the three months ended September 30, 2021 were $3,382,248, compared to $772,186 for the three months ended September 30, 2020. The increase in operating expenses resulted from the commencement of Clubhouse Media’s operations since 2020 and expenses related to the expansion of operations, payroll expenses, and professional fees incurred as a public company.
Non-cash operating expenses for the three months ended September 30, 2021 were $1,275,505, including stock-based compensation of $1,266,991, compared to $44,340 of non-cash operating expenses for the three months ended September 30, 2020.
Other expenses for the three months ended September 30, 2021 were $2,321,057 compared to $29,974 for the three months ended September 30, 2020. This included interest expense of $2,655,253, which was mostly comprised of non-cash interest and offset by the change in fair value derivative liability of $(361,904).
Net loss for the three months ended September 30, 2021 was $5,401,961, compared to $685,762 for the three months ended September 30, 2020.
Nine Months Ended September 30, 2021 Financial Results
Net revenue was $3,222,015 for the nine months ended September 30, 2021, compared to net revenue of $312,906 for the period from January 2, 2020 (inception) to September 30, 2020.
Operating expenses for the nine months ended September 30, 2021 were $12,780,575, compared to $1,746,298 for the period from January 2, 2020 (inception) to September 30, 2020.
Net loss for the nine months ended September 30, 2021 was $18,510,882, compared to $1,668,971 for the period from January 2, 2020 (inception) to September 30, 2020.
About Clubhouse Media
Clubhouse Media represents the future of influencer media and marketing, with a global network of professionally run content houses, each with its brand, influencer cohort, and production capabilities. Clubhouse Media offers management, production, and deal-making services to its handpicked influencers, a management division for individual influencer clients, and an investment arm for joint ventures and acquisitions for companies in the social media influencer space.
Follow Clubhouse Media on Twitter: https://twitter.com/ClubhouseCMGR
Forward-Looking Statements
This release contains “forward-looking statements”. Forward-looking statements also may be included in other publicly available documents issued by Clubhouse Media and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “would,” “could,” “will” and other words of similar meaning in connection with a discussion of future operating or financial performance.
Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause Clubhouse Media’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for Clubhouse Media’s products and services, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this press release.
Contacts:
Dmitry Kaplun
Chief Financial Officer
Clubhouse Media Group
dmitry@clubhousemediagroup.com
PCG Advisory, Inc.
Jeff Ramson
(646) 863-6341
jramson@pcgadvisory.com
Cover |
Nov. 10, 2021 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Nov. 10, 2021 |
| Entity File Number | 333-140645 |
| Entity Registrant Name | CLUBHOUSE MEDIA GROUP, INC. |
| Entity Central Index Key | 0001389518 |
| Entity Tax Identification Number | 99-0364697 |
| Entity Incorporation, State or Country Code | NV |
| Entity Address, Address Line One | 3651 Lindell Road |
| Entity Address, Address Line Two | D517 |
| Entity Address, City or Town | Las Vegas |
| Entity Address, State or Province | NV |
| Entity Address, Postal Zip Code | 89103 |
| City Area Code | (702) |
| Local Phone Number | 479-3016 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Entity Emerging Growth Company | false |