v3.22.4
Segment Information
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Segment Reporting [Abstract]    
Segment Information

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 September 30, 2022 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Partners		   Corporate   Total 
                     
Accounts receivable, net  $
-
   $4,973   $217,210   $
-
   $222,183 
Prepaid expenses and other current assets   43,336    
-
    
-
    96,390    139,726 
Deposits and other assets   576,551    
-
    
-
    192,585    769,136 
Intangible assets   162,489    1,568,347    648,469    157,294    2,536,599 
Goodwill   
-
    15,632    1,349,696    
-
    1,365,328 
Inventory   
-
    879,050    
-
    
-
    879,050 
All other assets   
-
    
-
    
-
    2,811,769    2,811,769 
Total Assets  $782,376   $2,468,002   $2,215,375   $3,258,038   $8,723,791 
                          
Accounts payable and accrued liabilities  $1,365   $1,518,544   $68,063   $5,126,634   $6,714,606 
Note payable, net of debt discount and issuance costs   129,634    170,365    
-
    1,487,100    1,787,099 
Deferred revenue   161,112    -    144,443    
-
    305,555 
All other Liabilities   
-
    
-
    
-
    8,529,992    8,529,992 
Total Liabilities  $292,111   $1,688,909   $212,506   $15,143,726   $17,337,252 

 

   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 three months ended September 30, 2022 
   Creatd
Labs		   Creatd Ventures   Creatd Partners   Corporate   Total 
                     
Net revenue  $291,414   $316,654   $414,783   $
-
   $1,022,851 
Cost of revenue   564,349    502,396    337,817    
-
    1,404,562 
Gross margin (loss)   (272,935)   (185,742)   76,966    
-
    (381,711)
                          
Research and development   139,997    
-
    94,968    
-
    234,965 
Marketing   370,584    234,760    41,176    
-
    646,520 
Stock based compensation   122,964    111,472    126,654    265,478    626,568 
General and administrative not including depreciation, amortization, or Impairment   90,212    476,386    384,365    3,136,092    4,087,055 
Depreciation and amortization   1,489    43,001    40,917    72,589    157,996 
Impairment of intangibles   
-
    85,406    
-
    164,180    249,586 
                          
Total operating expenses  $723,757   $822,618   $647,163   $3,401,570   $5,595,108 
                          
Interest expense   (17,048)   
-
    
-
    (656,647)   (673,694)
All other expenses   
-
    
-
    
-
    (2,875,832)   (2,875,832)
Other expenses, net   (17,048)   
-
    
-
    (3,532,479)   (3,549,526)
                          
Loss before income tax provision  $(1,001,024)  $(1,008,360)  $(570,197)  $(6,946,764)  $(9,526,345)

 

   For the three months ended September 30, 2021 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Partners		   Corporate   Total 
                     
Net revenue  $565,852   $3,919   $609,849   $-   $1,179,620 
Cost of revenue   849,079    174,438    394,696    -    1,418,213 
                          
Gross margin   (283,227)   (170,519)   215,153    -    (238,593)
                          
Research and development   250,474    60    72,412    -    322,946 
Marketing   1,540,540    -    181,240    90,620    1,812,400 
Stock based compensation   337,026    -    332,531    1,179,579    2,151,900 
General and administrative   386,844    302,764    293,296    1,672,176    2,385,135 
Total operating expenses     2,514,884      32,819      879,479      2,942,375      6,672,381 
                          
Loss before income tax provision and equity in net loss from unconsolidated investments  $(2,802,443)  $(506,162)  $(664,326)  $(5,747,190)  $(9,720,121)

 

   For the Nine months ended September 30, 2022 
   Creatd
Labs		   Creatd
Ventures		   Creatd
Partners		   Corporate   Total 
                     
Net revenue  $1,138,904   $1,237,542   $1,621,044   $-   $3,997,490 
Cost of revenue   1,917,039    1,706,586    1,147,526    -    4,771,151 
Gross margin (loss)   (778,135)   (469,044)   473,518    -    (773,661)
                          
Research and development   408,810    -    277,321    -    686,131 
Marketing   2,301,994    1,458,280    255,777    -    4,016,051 
Stock based compensation   755,284    684,697    777,948    1,630,649    3,848,578 
General and administrative not including depreciation, amortization, or Impairment   242,330    1,279,676    1,032,487    8,401,553    10,956,046 
Depreciation and amortization   4,166    120,282    114,453    203,042    441,943 
Impairment of intangibles   -    87,983    -    169,134    257,117 
                          
Total operating expenses  $3,712,584   $3,630,918   $2,457,986   $10,404,378   $20,205,866 
                          
Interest expense   (34,095)   
-
    -    (673,855)   (707,950)
All other expenses        -    -    (3,424,854)   (3,424,854)
Other expenses, net   (34,095)   
-
    -    (4,098,709)   (4,132,804)
                          
Loss before income tax provision  $(4,524,814)  $(4,099,962)  $(1,984,468)  $(14,503,087)  $(25,112,331)

 

   For the nine months ended September 30, 2021 
   Creatd
Labs		   Creatd Ventures   Creatd Partners   Corporate   Total 
                     
Net revenue  $1,388,411   $9,616   $1,496,363   $-   $2,894,390 
Cost of revenue   2,482,848    497,194    1,180,701    -    4,160,743 
Gross margin   (1,094,437)   (487,578)   315,662    -    (1,266,353)
                          
Research and development   549,426    131    158,839    -    708,396 
Marketing   6,842,142    -    804,958    402,479    8,049,579 
Stock based compensation   886,832    796,676    875,004    3,103,877    5,662,389 
General and administrative   900,323    76,381    682,602    3,891,743    5,551,049 
Total operating expenses  $9,178,723   $873,188   $2,521,403   $7,398,099   $19,971,413 
                          
Loss before income tax provision and equity in net loss from unconsolidated investments  $(10,286,156)  $(1,360,766)  $(2,205,741)  $(11,073,171)  $(24,925,834)

Note 15 – 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, 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 

 

   As of December 31, 2020 
   Creatd Labs   Creatd Partners   Corporate   Total 
                 
Accounts receivable, net  $3,800   $86,555   $
-
   $90,355 
Prepaid expenses and other current assets   19,631    
-
    4,225    23,856 
Intangible assets   
-
    960,611    
-
    960,611 
Goodwill   
-
    1,035,795    
-
    1,035,795 
All other assets   
-
    
-
    8,673,863    8,673,863 
Total Assets  $23,431   $2,082,961   $8,678,088   $10,784,480 
                     
Accounts payable and accrued liabilities  $6,221   $83,964   $2,548,503   $2,638,688 
Note payable, net of debt discount and issuance costs   55,928    
-
    1,165,611    1,221,539 
Deferred revenue   
-
    88,637    
-
    88,637 
All other Liabilities   
-
    
-
    1,390,420    1,390,420 
Total Liabilities  $62,149   $172,601   $5,104,534   $5,339,284 

 

   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)

 

   For the year ended December 31, 2020 
    Creatd Labs   Creatd Partners   Corporate   Total 
                 
Net revenue  $375,043   $837,827   $
-
   $1,212,870 
Cost of revenue   652,259    842,783    
-
    1,495,042 
Gross margin   (277,216)   (4,956)   
-
    (282,172)
                     
Research and development   227,656    29,775    
-
    257,431 
Marketing   2,426,668    285,490    142,745    2,854,904 
Stock based compensation   1,226,495    1,338,678    4,295,990    6,861,163 
General and administrative not including depreciation,  amortization, or Impairment   2,301,088    939,792    2,592,581    5,858,454 
Depreciation and amortization   
-
    132,768    24,993    157,761 
Impairment of intangibles   
-
    
-
    11,450    11,450 
Total operating expenses  $6,181,907   $2,726,504   $7,067,759   $16,001,163 
                     
Interest expense   (15,828)   
-
    (356,278)   (372,106)
All other expenses   
-
    
-
    (7,557,342)   (7,557,342)
Other expenses, net   (15,828)   
-
    (7,913,620)   (7,929,448)
                     
Loss before income tax provision and equity in net loss from unconsolidated investments  $(6,474,951)  $(2,731,460)  $(14,981,379)  $(24,212,783)

 

During the year ended December 31, 2021, Creatd Partners acquired assets from the Purchase of WHE. See note 14 for a list of assets acquired.

 

During the year ended December 31, 2021, Creatd Ventures acquired assets from the Purchase of Dune and Plant Camp. See note 14 for a list of assets acquired.