DBMM Reports 66% Revenue Decline and Increased Operating Loss for Six-Month Period Ending February 28, 2025

Digital Brand Media & Marketing Group, Inc. (DBMM) reported its financial results for the six-month period ending February 28, 2025, revealing a significant decline in revenue and an operating loss. The company generated revenues of $56,577, a decrease of 66% compared to $166,334 in the same period the previous year. The cost of revenues also fell to $47,090 from $139,378, leading to a gross profit of $9,487, down from $26,956. The operating loss for the period was $320,372, compared to a loss of $191,356 in the prior year, indicating a worsening financial position.

The company’s financial performance reflects a strategic shift and operational challenges. Sales, general, and administrative expenses increased to $329,859 from $218,312, primarily due to heightened client acquisition efforts. Interest expenses rose by 50% to $317,982, attributed to financing activities. However, DBMM recorded a gain on the derecognition of liabilities amounting to $459,415, which was realized through a settlement with a convertible note holder, further complicating the financial narrative.

In terms of operational developments, DBMM has been focusing on expanding its presence in the U.S. market, particularly in the B2B tech sector. The company has been pivoting towards a management consultancy model, emphasizing artificial intelligence (AI) in its service offerings. This strategic shift aims to enhance its competitive advantage and adapt to the evolving digital landscape. The company has also been actively engaging in partnerships and strategic alliances to bolster its market position.

As of February 28, 2025, DBMM reported total assets of $52,754, down from $61,417 as of August 31, 2024. The company’s liabilities totaled $7,474,106, with a stockholders’ deficit of $7,421,352. The number of shares outstanding for common stock was reported at 925,218,631. The company continues to face challenges related to cash flow, with a working capital deficiency of approximately $7.4 million, raising concerns about its ability to sustain operations without additional capital.

Looking ahead, DBMM has expressed optimism about its future, projecting that fiscal year 2025 will be its best year yet, with anticipated revenues exceeding $1 million. The company is focused on leveraging its AI capabilities to drive growth and improve operational efficiency. Despite the current financial difficulties, management believes that the strategic pivot towards a consultancy model and the emphasis on AI will position DBMM favorably in the competitive landscape of digital marketing and consulting services.