8-K: Creatd Inc. Outlines Future Strategy and Business Direction in Non-Deal Roadshow Presentation

Creatd, Inc. has released a non-deal investor presentation detailing its future strategy, focusing on its portfolio of technology and media assets and plans for subsidiary divestment.

Summary

• Creatd, Inc. has distributed a non-deal roadshow presentation outlining its future strategy and business direction.
• The company's portfolio includes Vocal, a platform for creators, the OG Collection, an archive of media assets, and Creatd Studios, an incubation division.
• Creatd intends to divest majority ownership in its subsidiaries through SPACs or structured product offerings.
• Vocal has experienced significant user growth, with 2 million creators and an 87% year-over-year user base growth.
• The company is focused on reducing subscriber acquisition costs and increasing lifetime value through data-driven strategies.
• The OG Collection includes over 150,000 images, 25,000 drawings, and 3,500 hours of footage, with an estimated archival value between $7.5 million and $10 million and an IP valuation between $15 million and $25 million.
• Creatd Studios supports early-stage ventures by leveraging the Vocal creator network.
• The company has 1.5 billion authorized shares and is aiming for a national exchange listing.
• Creatd is targeting break-even status at its subsidiaries and enhancing lifetime value for its products and services.
• The company is also planning strategic acquisitions to expand its portfolio.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with strong growth metrics and strategic plans, but also acknowledges current challenges and risks. The company's focus on data-driven strategies and subsidiary divestment is promising, but the need for capital raises and the current OTCQB listing temper the overall sentiment.

Positives

• Vocal has shown strong user growth and engagement.
• The company is successfully reducing subscriber acquisition costs.
• The OG Collection has significant archival and intellectual property value.
• Creatd has a large number of authorized shares for potential acquisitions.
• The company is focusing on data-driven strategies to improve revenue and user engagement.
• The company has a clear plan for subsidiary divestment and strategic growth.
• The company is targeting break-even status at its subsidiaries and enhancing lifetime value for its products and services.

Negatives

• The company is currently experiencing a temporary value dislocation due to market conditions and balance sheet adjustments.
• The company is currently trading on the OTCQB market.
• The company's historical revenues have been adjusted for GAAP purposes.
• The company's future success is dependent on its ability to finance forward strategic plans.

Risks

• The company's forward-looking statements are subject to risks and uncertainties.
• Actual results may differ materially from those indicated by forward-looking statements.
• The company's ability to achieve its goals is dependent on market conditions and other factors.
• The company's ability to finance forward strategic plans is not guaranteed.
• The company's ability to successfully divest its subsidiaries is not guaranteed.

Future Outlook

Creatd intends to divest majority ownership in its subsidiaries, uplist to a national exchange, and continue to grow through strategic acquisitions and data-driven strategies. The company is targeting break-even status at its subsidiaries and enhancing lifetime value for its products and services.

Management Comments

• Jeremy Frommer, CEO, is an entrepreneur and executive with experience across finance, entertainment, and digital media.
• Justin Maury, COO, is the visionary founder behind Vocal and manages all company divisions.

Industry Context

The company operates in the competitive technology and media space, focusing on creator platforms, digital archives, and early-stage venture incubation. The company's strategy of divesting majority ownership in subsidiaries is a common approach for portfolio holding companies.

Comparison to Industry Standards

• The company's valuation of Vocal between $38 million and $72 million is based on a comparative analysis of similar platforms.
• The OG Collection's valuation is based on historical sales of similar archival assets, such as the Bob Dylan Archive ($20 million in 2022), Johnson Publishing Archival Media Sale ($30 million in 2019), and Hugh Hefner Estate Sale ($10 million in 2018).
• The company's market cap of $5 million is significantly lower than comparable companies such as SuRo Capital ($91 million), Trinity Capital ($604 million), Hercules Capital ($2.5 billion), and Crescent Capital ($597 million).
• The company's focus on data-driven strategies and user engagement is consistent with industry best practices for digital platforms.

Stakeholder Impact

• Shareholders may benefit from the company's growth plans and potential uplisting.
• Creators on the Vocal platform may benefit from increased engagement and monetization opportunities.
• Brand partners may benefit from the company's data-driven marketing strategies.
• Employees may benefit from the company's growth and expansion.

Next Steps

• The company plans to apply for uplisting to the NYSE or Nasdaq.
• The company will continue to strengthen its balance sheet.
• The company will raise new capital to meet exchange uplisting requirements.
• The company will continue to pursue strategic acquisitions.
• The company will continue to develop and enhance its platforms and services.

Key Dates

Keywords

Creatd, Vocal, OG Collection, Creatd Studios, media, technology, platform, divestment, acquisition, creator, digital, archival, intellectual property, SPAC, valuation