UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 


 

FORM 10-Q

 


 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: November 30, 2021.

 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT

For the transition period from                     to                     

 

Commission file number: 333-85072

 

DBMM GROUP

DIGITAL BRAND MEDIA & MARKETING GROUP, INC.

WWW.DBMMGROUP.COM

(Exact name of small business issuer as specified in its charter)

 

845 Third Avenue, 6th Floor, New York, NY 10022

(Address of principal executive offices)

 

Florida

State of incorporation

 

59-3666743

IRS Employer Identification No.

 

(646) 722-2706

(Issuer's telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☒    No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such Files).    Yes ☒    No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐                   Accelerated Filer ☐

Non-Accelerated Filer ☐            Smaller Reporting Company  ☒

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)   Yes ☐   No ☒

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value

DBMM

OTC Markets

 

Indicate the number of shares outstanding of each of the Issuer’s classes of common stock, as of the latest practicable date:

 

Date

Shares Outstanding

January 14, 2022

757,718,631

 

 

INDEX

 

 

Page No

PART I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION - UNAUDITED

 
   

Item 1. Condensed Consolidated Financial Statements

3

Condensed Consolidated Balance Sheets as of November 30, 2021 (unaudited) and August 31, 2021 (audited)

3

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three months ended November 30, 2021 and 2020 (unaudited)

4

Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the Three months ended November 30, 2021 and 2020 (unaudited)

5

Condensed Consolidated Statements of Cash Flows for the Three months ended November 30, 2021 and, 2020 (unaudited)

6

Notes to Unaudited Condensed Consolidated Financial Statements

7

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk

28

Item 4. Controls and Procedures

28

   

PART II. OTHER INFORMATION

 
   

Item 1. Legal Proceedings

29

Item 1A. Risk Factors

29

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

29

Item 3. Defaults Upon Senior Securities

29

Item 4. Submission of Matters to a Vote of Security Holders

29

Item 5. Other Information

29

Item 6. Exhibits

30

   

SIGNATURES

31

 

 

 

 

PART I.     FINANCIAL INFORMATION

 

ITEM I.   FINANCIAL STATEMENTS

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 
                 
   

(Unaudited)

   

(Audited)

 
   

November 30,

   

August 31,

 
   

2021

   

2021

 

ASSETS

               
                 

CURRENT ASSETS

               

Cash

  $ 15,621     $ 9,787  

Accounts receivable, net

    19,587       16,251  

Prepaid expenses and other current assets

    470       470  

Total current assets

    35,678       26,508  
                 

Property and equipment - net

    1,420       1,420  
                 

TOTAL ASSETS

  $ 37,098     $ 27,928  
                 

LIABILITIES AND STOCKHOLDERS' DEFICIT

               
                 

CURRENT LIABILITIES

               

Accounts payable and accrued expenses

  $ 635,027     $ 657,275  

Accrued interest

    702,803       643,331  

Accrued compensation

    1,432,886       1,439,886  

Derivative liability

    518,567       506,360  

Loans payable, net

    1,736,523       1,648,248  

Officers loans payable

    93,514       89,709  

Convertible debentures, net

    590,991       590,991  
      5,710,311       5,575,800  
                 

Loan payable, net of short-term portion

    48,230       46,192  
                 
                 

TOTAL LIABILITIES

    5,758,541       5,621,992  
                 

STOCKHOLDERS' DEFICIT

               

Preferred stock, Series 1, par value .001; authorized 2,000,000

shares; 1,995,185, and 1,995,185 shares issued and outstanding

    1,995       1,995  

Preferred stock, Series 2, par value .001; authorized 2,000,000

shares; 0 and 0 shares issued and outstanding

    -       -  

Common stock, par value .001; authorized 2,000,000,000

shares: 757,718,631, and 757,718,631, shares issued and outstanding

    757,718       757,718  

Additional paid in capital

    9,528,590       9,528,590  

Other comprehensive loss

    (17,849

)

    (35,984

)

Accumulated deficit

    (15,991,897

)

    (15,846,383

)

                 

TOTAL STOCKHOLDERS' DEFICIT

  $ (5,721,443

)

  $ (5,594,064

)

                 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

  $ 37,098     $ 27,928  

 

See Notes to Unaudited Condensed Consolidated Financial Statements

 

3

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

 
                 
   

For the Three Months Ended November 30,

 
   

2021

   

2020

 
   

(Unaudited)

   

(Unaudited)

 
                 

SALES

  $ 57,582     $ 36,965  
                 

COST OF SALES

    39,754       90,323  
                 

GROSS PROFIT

    17,828       (53,358 )
                 

COSTS AND EXPENSES

               

Sales, general and administrative

    165,925       117,219  

TOTAL OPERATING EXPENSES

    165,925       117,219  
                 

OPERATING LOSS

    (148,097 )     (170,577 )
                 

OTHER (INCOME) EXPENSE

               

Interest expense

    83,472       83,041  

Other Income

    (98,262 )     -  

Change in fair value of derivative liability

    12,207       (5,956 )

TOTAL OTHER EXPENSES, NET

    (2,583 )     77,085  
                 

NET LOSS

  $ (145,514 )   $ (247,662 )
                 

OTHER COMPREHENSIVE LOSS

               

Foreign exchange translation

    18,135       (2,127 )

COMPREHENSIVE LOSS

    (127,379 )     (249,789 )
                 

NET LOSS PER SHARE

               

Basic and diluted

  $ (0.00 )   $ (0.00 )
                 

WEIGHTED AVERAGE NUMBER OF SHARES

               

Basic and diluted

    757,718,631       757,718,631  

 

See Notes to Unaudited Condensed Consolidated Financial Statements

 

4

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC., AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

 
                 
   

For the Three Months Ended November 30,

 
   

2021

   

2020

 
   

(Unaudited)

   

(Unaudited)

 
                 

Series 1

               

Preferred Stock

               

Shares, beginning and end of period

    1,995,185       1,995,185  
                 

Preferred Stock

               

Balance, beginning and end of period

  $ 1,995     $ 1,995  
                 

Series 2

               

Preferred Stock

               

Shares, beginning and end of period

    -       -  
                 

Preferred Stock

               

Balance, beginning and end of period

  $ -     $ -  
                 

Common Stock

               

Shares, beginning and end of period

    757,718,631       757,718,631  
                 

Balance, beginning and end of period

  $ 757,718     $ 757,718  
                 

Additional paid-in capital

               

Balance, beginning and end of period

  $ 9,528,590     $ 9,270,444  
                 

Other Comprehensive Income (Loss)

               

Balance, beginning of period

  $ (35,984 )   $ (16,787 )

Other comprehensive income (loss)

    18,135       (2,127 )

Balance, end of period

  $ (17,849 )   $ (18,914 )
                 

Accumulated Deficit

               

Balance, beginning of period

  $ (15,846,383 )   $ (15,144,733 )

Net loss

    (145,514 )     (247,662 )

Balance, end of period

  $ (15,991,897 )   $ (15,392,395 )
                 

Total Stockholders' Deficit

  $ (5,721,443 )   $ (5,381,152 )

 

See Notes to Unaudited Condensed Consolidated Financial Statements

 

5

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 
                 
   

For the Three months Ended

 
   

November 30,

 
                 
   

2021

   

2020

 
   

(Unaudited)

   

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net loss

  $ (145,514

)

  $ (247,662

)

                 

Adjustments to reconcile net loss to net cash used in operating activities:

               

Depreciation

    -       200  

Change in fair value of derivative liability

    12,207       (5,956

)

                 

Changes in operating assets and liabilities:

               

Accounts receivable

    (3,999

)

    111  

Accounts payable and accrued expenses

    (15,333

)

    101,727  

Accrued interest

    59,472       48,541  

Accrued compensation

    (7,000

)

    (18,800

)

                 

NET CASH USED IN OPERATING ACTIVITIES

    (100,167

)

    (121,839

)

                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Purchase of equipment

    -       -  
                 

NET CASH USED IN INVESTING ACTIVITIES

    -       -  
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               
                 

Proceeds from loans payable

    102,408       122,125  

Officer loans payable

    3,805       (1,018

)

                 

NET CASH PROVIDED BY FINANCING ACTIVITIES

    106,213       121,107  
                 
                 

EFFECT OF VARIATION OF EXCHANGE RATE OF CASH

               

HELD IN FOREIGN CURRENCY

    (212

)

    (1,009

)

                 

NET INCREASE/(DECREASE) IN CASH

    5,834       (1,741

)

                 

CASH - BEGINNING OF PERIOD

    9,787       34,461  
                 

CASH - END OF PERIOD

    15,621       32,720  
                 

Supplemental disclosures of cash flow information:

               

Cash paid for interest

  $ -     $ -  

Cash paid for taxes

  $ -     $ -  

 

See Notes to Unaudited Condensed Consolidated Financial Statements

 

6

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 ORGANIZATION, BASIS OF PRESENTATION AND GOING CONCERN

 

Nature of Business and History of the Company

 

Digital Brand Media & Marketing Group, Inc. (“The Company” or “DBMM”) is an OTC:PK listed company. The Company was organized under the laws of the State of Florida on September 29, 1998.

 

The Company strategically focuses on developing the business of its wholly owned and revenue generating online marketing services company, Digital Clarity. With deep DNA in its operating market, blending the services of an experienced professional workforce leveraging a technology offering positions the Company in a strong, forward looking structure. Digital Clarity operates in the growing area of digital marketing that helps companies make the most of the digital economy focusing on areas such as Search Engine Marketing (Google, Yahoo! & Bing), Social Media (Twitter, Facebook & LinkedIn) and Internet Strategy Planning including Design, Analytics and Mobile Marketing.

 

Following the acquisition of Digital Clarity in 2011 the Company has been honing its business model to be the differentiating service provider in digital marketing space to its clients and prospective business as DBMM grows into one of the leaders in the industry going forward.

 

Today, DBMM Group crafts, designs and executes digital marketing strategies across multiple ad platforms and social media networks for a broad array of clients to help each of them establish a uniform brand identity across the digital universe. The product offering is a unique value proposition of intelligent analytics provided by an experienced digital marketing and technology team. Therefore, DBMM Group is a blend of data, strategy and creative execution.

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2021 are not necessarily indicative of the results that may be expected for the year ending August 31, 2022. For further information refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended August 31, 2021.

 

Going Concern

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis. The financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern.

 

The Company has outstanding loans and convertible notes payable aggregating $2.4 million at November 30, 2021 and doesn’t have sufficient cash on hand to satisfy such obligations. The preceding raise substantial doubt about the ability of the Company to continue as a going concern. However, the Company generated proceeds of $106,213 from financing activities during the three months ending November 30, 2021. The Company also has a non-binding Commitment Letter from an investor of $250,000 which also includes a right of first refusal on additional capital raise up to $3 million which will contribute to satisfying such obligations and fund any potential cash flow deficiencies from operations for the foreseeable future.

 

Accordingly, the accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.

 

7

 

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Consolidation

 

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Stylar (DBA Digital Clarity). All significant inter-company transactions are eliminated.

 

Cash and Cash Equivalents

 

Cash and cash equivalents consist primarily of cash in banks. The Company considers cash equivalents to include all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company had no cash equivalents as of November 30, 2021.

 

Accounts Receivable and Allowance for Doubtful Accounts

 

Accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are presented net of allowance for doubtful accounts.

 

The Company has a policy of reserving for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. At November 30, 2021, the Company had no allowance for doubtful accounts.

 

Property and Equipment

 

Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets (primarily three to five years).

 

Revenue Recognition

 

Revenue is recognized upon transfer of control of promised or services to customers in an amount that reflects the consideration we expect to receive in exchange for those services. We enter into contracts that can include various combinations of services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

 

Nature of Services

 

The Company generally provides its services to companies, primarily located in Europe but with international exposure. The Company generally provides its services ratably over the terms of the contract and bills such services at a monthly fixed rate. Some of the services are billed quarterly. The Company’s services are sold without guarantees.

 

Significant Judgments

 

Our contracts with customers sometimes often include promises to transfer multiple services to a customer. Determining whether services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. 

 

Judgment is required to determine Standalone Selling Price (SSP) for each distinct performance obligation. The Company uses a single amount to estimate SSP for items that are not sold separately, including set-up services, monthly search advertising services, and monthly optimization and management.

 

Contract Balances  

 

Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing.

 

8

 

The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. 

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Included in these estimates are assumptions about the collection of its accounts receivable, converted amount of cash denominated in a foreign currency, and estimated amounts of cash, the derivative liability could settle, if not in common shares. Actual results could differ from those estimates.

 

Income Taxes

 

The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.

 

The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open.

 

Earnings (loss) per common share

 

The Company utilizes the guidance per FASB Codification “ASC 260 "Earnings Per Share". Basic earnings per share is calculated on the weighted effect of all common shares issued and outstanding and is calculated by dividing net income available to common stockholders by the weighted average shares outstanding during the period. Diluted earnings per share, which is calculated by dividing net income available to common stockholders by the weighted average number of common shares used in the basic earnings per share calculation, plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding, is not presented separately as it is anti- dilutive. Such securities have been excluded from the per share computations as of November 30, 2021 and November 30, 2020.

 

Derivative Liabilities

 

The Company assessed the classification of its derivative financial instruments as of November 30, 2021, which consist of convertible instruments and rights to shares of the Company’s common stock and determined that such derivatives meet the criteria for liability classification under ASC 815.

 

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

 

9

 

During the nine-month period ended November 30, 2021 and November 30, 2020, the Company had notes payable outstanding in which the conversion rate was variable and undeterminable. Accordingly, the Company has recognized a derivative liability in connection with such instruments. The Company uses judgment in determining the fair value of derivative liabilities at the date of issuance at every balance sheet thereafter and in determining which valuation is most appropriate for the instrument (e.g., Binomial method), the expected volatility, the implied risk-free interest rate, as well as the expected dividend rate.

 

Fair Value of Financial Instruments

 

Effective January 1, 2008, the Company adopted FASB ASC 820-Fair Value Measurements and Disclosures, or ASC 820, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact on the Company’s financial position or operating results but did expand certain disclosures.

 

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below.

 

Level 1

Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

Level 2

Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3

Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

 

The Company did not have any Level 2 or Level 3 assets or liabilities as of November 30, 2021, with the exception of its derivative liability which are valued based on Level 3 inputs.

 

Cash is considered to be highly liquid and easily tradable as of November 30, 2021 and therefore classified as Level 1 within our fair value hierarchy.

 

In addition, FASB ASC 825-10-25 Fair Value Option, or ASC 825-10-25, was effective January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments.

 

Convertible Instruments

 

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

 

Professional standards generally provide three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”.

 

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.”  Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

 

10

 

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

 

Stock Based Compensation

 

We account for the grant of stock options and restricted stock awards in accordance with ASC 718, “Compensation-Stock Compensation.” ASC 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity-based compensation.

 

Foreign Currency Translation

 

Assets and liabilities of subsidiaries operating in foreign countries are translated into U.S. dollars using either the exchange rate in effect at the balance sheet date or historical rate, as applicable. Results of operations are translated using the average exchange rates prevailing throughout the year. The effects of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are included in a separate component of stockholders’ equity (accumulated other comprehensive loss), while gains and losses resulting from foreign currency transactions are included in operations.

 

Concentration of Risks

 

The Company’s accounts and receivable as of November 30 and August 31, 2021 and revenues for the three-month period ended November 30, 2021 and 2020 are primarily from four customers.

 

Recently Issued Accounting Pronouncements

 

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed consolidated financial statements.

 

NOTE 3 PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

 

 

Estimated Life

 

November 30,

2021

   

August 31,

2021

 

Computer and office equipment

3 to 5 years

  $ 23,920     $ 23,920  

Less: Accumulated depreciation

    (22,500

)

    (22,500

)

      $ 1,420     $ 1,420  

 

Depreciation expense amounted to $200, during the three-month periods ended November 30, 2020.

 

NOTE 4 LOANS PAYABLE

 

   

November 30,

2021

   

August 31,

2021

 

Loans payable

  $ 1,784,753     $ 1,694,440  

 

   

November 30,

2021

   

August 31,

2021

 

Loans payable short-term

  $ 1,736,523     $ 1,648,248  

Loans payable long-term

    48,230       46,192  
    $ 1,784,753     $ 1,694,440  

 

The loans payables are generally due on demand and have not been called, are unsecured, and are bearing interest at a range of 0-12%., with the exception of one loan payable to a financial institution. Such loan, which amounted to $59,912 at November 30, 2021 bears interest rate at 2.5%, is unsecured, matures in November 2027 with principal and interest payable monthly starting in November 2021. This loan is part of a Bounce Back Loan Scheme from the UK Government.

 

11

 

The company may have to provide alternative consideration (which may be in cash, fixed number of shares or other financial instruments) up to amounts accrued to satisfy its fixed obligations under certain unsecured loans payable. The consideration hasn’t been issued yet and is included in accrued expenses and interest expense and was valued based on the fair value of the consideration at issuance.

 

The aggregate schedule maturities of the Company’s loans payable outstanding as of November 30, 2021 are as follows:

 

2022

 

$

1,736,523

 

2023

   

11,498

 

2024

   

12,229

 

2025

   

13,006

 

2026

   

11,468

 

Thereafter

   

29

 
   

$

1,784,753

 

 

NOTE 5 CONVERTIBLE DEBENTURES

 

The Company’s convertible debentures consisted of the following:

 

   

November 30,

2021

   

August 31,

2021

 

Convertible notes payable

  $ 590,991     $ 590,991  

Unamortized debt discount

    -       -  

Total

  $ 590,991     $ 590,991  

 

The convertible debentures matured in 2015, and bear interest at ranges between 6% and 15%. The convertible debentures are convertible at ratios varying between 45% and 50% of the closing price at the date of conversion through, at its most favorable terms for the holders, the average of the three lowest closing bids for a period of 5-30 days prior to conversion.

 

NOTE 6 OFFICERS LOANS PAYABLE

 

   

November 30,

2021

   

August 31,

2021

 

Officers loans payable

  $ 93,514     $ 89,709  

 

The loans payables are due on demand, are unsecured, and are non-interest bearing. 

 

NOTE 7 DERIVATIVE LIABILITIES

 

The Company accounts for the embedded conversion features included in its convertible instruments as derivative liabilities. The aggregate fair value of derivative liabilities at November 30, 2021, and August 31, 2021 amounted to $704,812 and $773,676 respectively. At each measurement date, the fair value of the embedded conversion features was based on the lattice binomial method using the following assumptions:

 

   

November 30,

2021

   

August 31,

2021

 

Effective Exercise price

    0.003 - 0.0048       0.0010 - 0.0076  

Effective Market price

    .006       0.0076  

Volatility

    96 %     90 %

Risk-free interest

    0.24 %     0.17 %

Terms

 

365 days

   

365 days

 

Expected dividend rate

    0 %     0 %

 

12

 

Changes in the derivative liabilities during the three-month period ended November 30, 2021 is as follows:

 

Balance at August 31, 2021

  $ 506,360  

Changes in fair value of derivative liabilities

    12,207  

Balance, November 30, 2021

  $ 518,567  

 

NOTE 8 ACCRUED COMPENSATION

 

As of November 30, 2021, and August 31, 2021, the Company owes $1,432.886 and $1,439,886, respectively, in accrued compensation and expenses to certain directors and consultants. The amounts are non-interest bearing.

 

NOTE 9 COMMON STOCK AND PREFERRED STOCK

 

Preferred Stock- Series 1 and 2

 

The designation of the Preferred Stock- Series 1 is as follows: Authorized 2,000,000 shares, par value of $0.001. One share of the Company’s Preferred Stock- Series is convertible into 53.04 shares of the Company’s common stock, at the holder’s option and with the Company’s acquiescence, and has three votes per share.

 

The designation of the Preferred Stock- Series 2 is as follows: Authorized 2,000,000 shares, par value of $0.001. One share of the Company’s Preferred Stock- Series is convertible into one share of the Company’s common stock, at the holder’s option and with the Company’s acquiescence, and has no voting rights.

 

Common Stock

 

The Authorized Shares were increased to 2,000,000,000 in April 4, 2016.

 

NOTE 10- OTHER INCOME

 

The Company receives governmental assistance from the United Kingdom government in the form of research and development tax credits. Such research and development tax credits amounted to $98,262 during the three-month period November 30, 2021 and are recognized as other income in the accompanying statement of condensed consolidated operations and comprehensive loss.

 

NOTE 11 – COMMITMENTS AND CONTINGENCIES

 

Leases

 

The Company leases its facilities under non-cancellable operating leases which are renewable monthly. The leases have monthly base rents. The latest monthly base rent for the Company’s facilities ranges between $269 and $1,025.

 

Rental expense amounted to $2,016 and $4,495 during the three-month period ended November 30, 2021 and 2020, respectively.

 

Consulting Agreement

 

The annual compensation of Linda Perry amounts to $150,000 for her role as a consultant and as Executive Director for US interface to provide oversight regarding external regulatory reporting requirements. In addition, Ms. Perry is the lead executive for capital funding requirements and business development. The agreement has a rolling three-year term through September 2022.

 

Legal Proceedings

 

From time to time, the Company has become or may become involved in certain lawsuits and legal proceedings which arise in the ordinary course of business. The Company intends to vigorously defend its positions. However, litigation is subject to inherent uncertainties and an adverse result in those or other matters may arise from time to time that may harm its financial position, or our business and the outcome of these matters cannot be ultimately predicted.

 

13

 

NOTE 12 – FOREIGN OPERATIONS

 

As of November 30, 2021, a majority of our revenues and assets are associated with subsidiaries located in the United Kingdom. Assets at November 30, 2021 and revenues for the three-month period ended November 30, 2021 were as follows unaudited

 

   

United States

   

Great Britain

   

Total

 

Revenues

  $ -     $ 57,582     $ 57,582  

Total revenues

  $ -     $ 57,582     $ 57,582  

Identifiable assets at November 30, 2021

  $ 5,212     $ 31,886     $ 37,098  

 

As of November 30, 2020, a majority of our revenues and assets are associated with subsidiaries located in the United Kingdom. Assets at November 30, 2020 and revenues for the three-month period ended November 30, 2020 were as follows unaudited

 

   

United States

   

Great Britain

   

Total

 

Revenues

  $ -     $ 36,965     $ 36,965  

Total revenues

  $ -     $ 36,965     $ 36,965  

Identifiable assets at November 30, 2020

  $ 14,200     $ 35,875     $ 50,075  

 

NOTE 13 – SUBSEQUENT EVENTS

 

The Company has analyzed its operations subsequent to November 30, 2021 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose.

 

14

 

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Readers are cautioned that certain statements contained herein are forward-looking statements and should be read in conjunction with our disclosures under the heading "Forward-Looking Statements" above. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. This discussion also should be read in conjunction with the notes to our consolidated financial statements contained in Item 8. "Financial Statements and Supplementary Data" of this Report.

 

OPERATIONS OVERVIEW/OUTLOOK

 

The Company developed a document called the Creds Deck which provides a description to prospective clients of Digital Clarity’s value proposition http://www.dbmmgroup.com/wp-content/uploads/2020/11/Digital-Clarity-Creds-Deck_DB64F.pdf.

 

Coronavirus lockdown initially halted, and even now has slowed down, many business processes starting from manufacturing, supply chain to logistics, and marketing. Digital Clarity is no exception, and the negative impact for over a year and a half, is measurable.

 

Some businesses have permanently closed or paused their digital marketing activities temporarily, because of this uncertainty. That mindset results in drastically decreased online traffic, sales, engagement, conversation, and pushed down search ranking. There are opportunities emerging, and Digital Clarity is actively pursuing new clients in a new environment.

 

Digital marketing is not a quick-fix solution to gain momentum. Therefore, it does not give companies visibility overnight. Many companies using digital marketing techniques such as search engine optimization (SEO) or social media marketing, are already aware that implementations take three to four months’ time to achieve positive results. Our company mantra remains, “ROI is our DNA.”

 

This means that although there has been a slowdown in existing business and new business development, there is a need for reinforcement of the digital values proposition to bring or maintain a company’s brand front and center. As a consultancy, we are delivering the message.

 

Operationally, fiscal year 2021 has been important in continuing the direction of the Company and steering it toward a scaled growth plan which has been in neutral while the Company addressed certain external challenges beyond its control. This has also been impacted by the worldwide pandemic of Covid-19. Nevertheless, the Company continued to focus on the positive, proven operating model and used that model to maintain certain existing clients and through its digital infrastructure, is perfectly placed to expand geographic reach to new clients in 2022.

 

Through a turbulent 2020 to date, DBMM continues to build on its strengths. Like the rest of the world, the effect of Covid-19 and the Pandemic that still persists are a paramount concern, the Company has strong relationships within the market and will continue to extend its business focus to a wide variety of industry verticals.

 

No one expected that the pandemic and the SEC matter, would remain open for as long as it has.

 

The heart of the business is its marketing consultancy. DBMM Group’s main business Digital Clarity works in the area of Digital Marketing and company transformation. Understanding each client and developing the model to individualize the outlook has been essential, is differentiating and is its competitive advantage. This kind of close relationship with its clients resulted in Digital Clarity being considered a close professional and trusted advisor.

 

WHY DIGITAL EXPERTS CONTINUE TO BE IN DEMAND

 

The world is changing, and technology is taking the lead. Today, everything is going digital -- entertainment, health, real estate, banking and even currencies. This is, however, understandable. In North America alone, 95% of the population are online (statista).

 

With everything turning to digital, it means companies are also jumping online to market their businesses. And to survive the challenges of digital marketing, brands need to keep up with the latest trends. Successfully reaching one’s target audience is no longer just putting out TV and print ads. These days, social media is the new arena of digital marketers, with Statista claiming 3.7 billion people are active social media users as of October 2021.

 

To keep up with the ever-changing scene, digital marketing experts need to stay in step with the evolving tech trends. Social media marketing companies like ours work tirelessly to research consumers and what makes them engage with brands. We try to find the best online solutions that will cater to our clients’ end-users’ queries in the easiest and most cost-efficient way possible -- be it by developing new technology or adapting to trends.

 

15

 

RELENTLESS DIGITAL GROWTH POSITIONS DIGITAL CLARITY AS A LEADER

 

The need for seasoned expertise and insight is in huge demand. Digital Clarity’s strength, heritage and reach in the digital marketing puts the DBMM brand in an excellent position for investment and growth. Digital Clarity’s strength in Search Engine Marketing, Analytics, Social Media, Strategic Company Transformation means that the Company is ready to feed on that demand and leapfrog into a powerful revenue focused vehicle.

 

SHOPPERS STILL USE A MIX OF DIGITAL TOUCHPOINTS DURING COVID-19 ALONG THE BUYING JOURNEY

 

 

In the discovery and evaluation part of the journey, search engines, social media feeds, and influencers are popular ways for shoppers to get product inspiration outside a brand’s properties.

 

 

In the buying part of the journey, there are new types of purchase points emerge. Mobile wallets are behind e-mail as a place to make purchases. And 63% begin making purchase through social media.

 

CUSTOMERS STILL FACE SILOS ACROSS CHANNELS THE DIGITAL LANDCAPE THROUGH THE PANDEMIC

 

 

Customers are accessing multiple touchpoints during a purchase but there is a significant disconnect within companies.

 

 

75% of consumers expect consistent interactions across all departments.

 

 

However, 58% say that they feel like they’re communicating with separate departments and not one company.

 

 

And when it comes to service issues, 70% of customers expect all of the reps to have the same information about them, but 64% say that they have to re-explain issues.

 

AREAS THAT DIGITAL CLARITY EXCEL ARE AREAS THAT NEED TO BE CONSIDERED TODAY

 

 

Market from Home - Deploy campaigns quickly from home, collaborate across teams and keep marketers engaged with apps

 

 

Engage Customers with Empathy - Listening to customers, use real-time data to better understand their current situation and needs

 

 

Personalize Digital Communications - Accelerate digital channel adoptions, deliver the right message, to the right person, at the right time

 

 

Optimize Budget Spends – Digital Clarity unify marketing performance and make real-time decisions to minimize the negative impact

 

Among, its range of services, Digital Clarity help companies ‘get found’ on search engines like Google. The Market Share chart from Statista, we can see that Google has the lion’s share of the search market worldwide. As a Google Premier Partner, Digital Clarity are well placed to advise, consult and grow companies, in 2021 and beyond.

 

From Google’s parent Alphabet’s latest results, In the third quarter of 2020, Google's revenue amounted to 46.02 billion U.S. dollars, up from 37.99 billion U.S. dollars in the preceding quarter. Google's main revenue source is advertising through Google sites and its network.

 

HOW MACHINE LEARNING IS ENHANCING DIGITAL MARKETING STRATEGY

 

Digital Clarity applies strategy to algorithmic based machine learning tools. The launch of Google’s new machine learning tool, RankBrain which contributes to search engine results, left many people wondering what impact machine learning would have in the realm of Search Engine Optimization (SEO).

 

With the tech industry going crazy for all things Artificial Intelligence (AI), Natural Language Processing (NLP), machine learning, and chatbots – companies like Digital Clarity help brands make sense of this ever-changing landscape.

 

16

 

MACHINE LEARNING AND DIGITAL MARKETING

 

Because machine learning is being used to solve a huge set of diverse problems with the help of data, channels, content, and context, as marketers, Digital Clarity stands to benefit from this information and phenomenon as a whole. But, as the information we gather grows, digital marketing as we know it is set to change. Digital Clarity will be at the forefront of this change.

 

PAY PER CLICK (PPC) CAMPAIGNS

 

With Google launching new “smart” features such as Google Smart Bidding, Smart Display Campaigns, and In-Market Audience to help businesses maximize conversions, it is clear that the future of PPC lies in machine learning.

 

To become more strategic and take PPC campaigns to the next level for its clients, Digital Clarity:

 

Get to grips with the metrics that are most valuable to your business

Understand obstacles that could get in the way of meeting your goals

Know the underlying performance drivers to make more strategic decisions

 

SEARCH - OVERALL

 

Search makes up half (52%) of advertising spend, increasing on par at 15% to £3.3bn, next is non-video display at £1.33bn (+9%), then video display £967m (40%). Classifieds remains at £726m and other remained at £41m.

 

DIGITAL CLARITY EMBRACE GOOGLES MACHINE LEARNING MARKETING SUITE

 

Machine learning and AI have grown at a rapid pace and are an integral part of day to day search advertising management and planning. Though machine learning has been an integral part of the ad world, what has been more significant has been the addition of Artificial Intelligence or AI. According to a recent report in The Harvard Business Review by Deloitte, AI in Digital Marketing is not just getting bigger, it’s getting far more persuasive

 

MIT researchers recently unveiled a chip that can perform inference using neural network computations three to seven times faster than previous chips, and with up to 95 percent less power consumption. Dozens of companies working on new generations of AI chips—for use both in and outside of data centers—are attracting significant investment. These companies raised more than $1.5 billion in funding last year, nearly twice the amount they raised the year before.

 

DIGITAL CLARITY PERFECTLY POSITIONED FOR THE FUTURE

 

According to Gartner's Digital Business Acceleration report: Where to Focus Now, Enterprises have the intention of becoming more digital due to COVID-19.

 

DBMM20211130_10QIMG001.JPG

 

17

 

CONTENT MARKETING

 

Although still extremely important, the internet has become inundated with too much content. There is consensus among companies that in order to succeed, brands need to be creating content that is valuable to readers. To do this, you need to understand consumer trends, data and engagement. Machine learning tools alongside Digital Clarity’s strategic approach allows its clients to reduce the amount of time spent tracking data, as well as better decipher that data to create actionable tasks that will lead to success.

 

DIGITAL MARKETING SERVICES

 

There is no denying that 2020/21 has proved challenging for Digital Marketing Services. When the pandemic hit in March 2020, many companies’ long-term plans and strategies were thrown out the window, as everyone from the frontlines to the C-suite shifted into fire-fighting mode. Many worked around the clock by leveraging remote technology.

 

Most businesses, except for those engaged in essentials, have been at a standstill and enterprises are cutting back on costs. The axe falls on marketing. The virus has brought most scheduled digital marketing plans to a grinding halt or slowed them down. The impact is felt in digital marketing, with predicted patterns now appearing skewed.

 

During the main part of the lock-down., Google announced $800 million in funding and grants for businesses advertisers. It has on offer $ 340 million in credits for active advertisers. The clear opportunity is at the foundation of the Company, namely the need to expedite and continue to encourage development in the digital marketing services sector. The marketing services product is labour intensive and thus the Company must jumpstart the growth by significant capital to grow simultaneously in multiple geographies.

 

The Company’s outlook remains robust for 2022 and the foreseeable future, particularly as businesses adjust and redirect their retail business to online digital marketing in the COVID / Post COVID world.

 

KEY MILESTONES

 

During the fiscal 2021, revenues decreased due to external circumstances out of the company’s control which placed enormous pressure on the operating business.

 

Despite these circumstances, the client base is expanding in base number and the size of client serviced. At any point in time, our clients represent a variety of industries. Many of these clients choose to operate under an NDA as our clients see DBMM as a competitive advantage. Under that disclaimer, we cannot share all clients’ names, but here are a few key clients representing diverse verticals, as follows:

 

 

1.

Leading project management software and solution provider to the construction industry Kahua Inc, announced it was ramping up growth using the power of digital marketing in partnership with digital consultancy, Digital Clarity.

     
 

2.

Digital Clarity shortlisted for prestigious UK Search Awards in the hotly contested ‘Best Use of Search’ along with client Bentley SYNCHRO, a global construction project management software company that supports the professional needs of those responsible for creating and managing the world’s infrastructure.

 

 

3.

Synergy SKY, a Norwegian based company that develops and markets software platforms to manage all meetings and video conferences, announce online marketing partnership with Digital Clarity.

 

 

4.

Digital Clarity release SEO Guides for business during Covid-19 Pandemic. The company has a long history with Google search both paid and organic, with these guides specifically focusing on three core areas:

 

 

The Importance of a Strong Internal Linking Strategy

 

 

How to Get to the Top of Google

 

 

How Much Does SEO Cost?

 

 

5.

The Luxury Property Show partners with Digital Clarity. The Luxury Property Show at Olympia London and is the only event in Europe dedicated to luxury and high-value property aimed at High-net-Worth Individuals.

 

18

 

Other examples are representative of the diversity of client base. DBMM's approach using a client's analytics and executing an individualized model to increase ROI as the prime objective, spans a wide range of industries.

 

Digital Clarity’s services are in demand and the company is pursuing opportunities in Formula 1, Aviation and high-end marketing for Luxury Brands.

 

Core industry verticals for Digital Clarity include: FinTech, Unified Communication Companies and discretionary advice for professional service providers.

 

SEARCH ENGINE OPTIMIZATION EVOLUTION

 

From an SEO point of view, keywords could become less important. Search engines receive more revenue for ads when they provide users with higher quality content. As a result, the algorithm they use needs to be more focused on providing each user with content that will serve a specific purpose, rather than be packed with the right keyword density. Therefore, the need to start thinking about the quality of your content as a ranking factor on search engines. This is where Digital Clarity comes in to help shape content ‘in the right way’ to direct potential buyers to the client’s website.

 

THE NEXT-GENERATION SEARCH ENGINE MARKET SET TO GROW 25.5% DURING 2021-2026

 

Over the last few years, the number of voice searches witnessed an exponential growth rate. Also, it is becoming less of a novelty and more like a new standard. Therefore, the next-generation search engines are more oriented toward voice-based search engines.

 

Next-generation search engines are also increasing because of deep neural networks, machine learning, and other advancements in AI technologies. Virtual assistants, such as smart speakers, are used for various applications across several end-user industries, such as retail, BFSI, and healthcare. One major consumer-facing application is as a personal assistant. It helps consumers accomplish various tasks. For instance, Apple's Siri offers an intuitive interface for connected homes or cars.

 

These assistants' capabilities can be personalized based on the end-user, thereby improving customer experience in various industries. Thus, although the personal segment holds a significant position, the commercial segment holds a massive opportunity to expand over the forecast period, owing to the growing industrial applications. For instance, virtual assistants can help customers find a doctor's office in the healthcare sector, fill and refill a prescription, and receive payment reminders.

 

Moreover, the voice search mobility trend is growing at a high pace with the advancements in speech recognition technology or voice search technology. Google has a 95% accuracy rate when spoken correctly in English. Moreover, Google voice search on smartphones is available in over 60 languages.

Personalized responses are one of the famous use cases of voice search, which Google has attained to a large extent, as Google can know and guess the next question the users will be most likely to ask. On the other hand, Alexa cannot understand the context to the same extent as Google. Alexa relies on custom-built skills and protocols, whereas the Google Assistant can understand specific user requests and further personalize the response.

 

THE GROWTH OF DIGITAL MARKETING & CONSULTANCY SERVICES

 

The skill set historically owned by agencies offering disciplines such as UX, design, creativity, customer-centric data analytics and customer engagement is now being immersed with large consultancy businesses whose traditional bread and butter was Digital Transformation.

 

Accenture, Deloitte, IBM, KPMG, McKinsey and PricewaterhouseCoopers rank among the most aggressive players in acquiring and partnering with agencies such as Digital Clarity. They present not only an opportunity for Digital Clarity but also a prospective exit and investment opportunity.

 

Digital Clarity have continued to develop their Digital Consulting and Strategy Planning offering. The forward looking program is to be a recognized leader in this field and fulfill companies seeking Digital Transformation for their originations.

 

THE NEED FOR PROFESSIONAL CONSULTANCY AND OPPORTUNITY FOR MASSIVE GROWTH

 

Four consultancies lead Ad Age's ranking of the 10 largest agency companies in the world. With combined revenue of $13.2 billion, the marketing services units of Accenture, PwC, IBM and Deloitte sit just below WPP, Omnicom, Publicis Groupe, Interpublic and Dentsu. Last year, only two consultancies—Accenture Interactive and IBM iX—made the top 10. IBM iX was the first to break into the top 10.

 

19

 

Given the experience of the team, Digital Clarity’s advisory and consultancy is in demand. With the recent growth in these business areas, and the rise of consultancies, it is confirmation that Digital Clarity is headed in the right direction for growth.

 

THE GROWTH OF DIGITAL TRANSFORMATION WORLDWIDE

 

The Global Digital Transformation Market size is expected to reach $1,302.9 billion by 2027, rising at a market growth of 20.8% CAGR during the forecast period. Digital transformation is considered as the utilization of digital technology. Digitally transformed enterprises can be flexible to the changing technological landscape and can address abrupt shifts in the industry, particularly the one presently created by the COVID-19 pandemic; studies show that the efficiency and rate of adaptation of digitally transformed companies to a post-pandemic era are relatively larger than conventional businesses. Source

 

Digital Clarity can help various businesses that have been considerably affected by the global outbreak of the COVID-19 pandemic. One of the significant challenges for the global economy in 2020 was to facilitate business continuity in the midst of social distancing guidelines, lockdowns norms, work-from-home culture, and other operational challenges. The lack of availability of digital strategies, infrastructure, or tools worsens the challenges for various companies that were needed to abruptly shift operations online or allow workers to work from their homes.

 

The situation, on the other hand, resulted in a considerable surge in awareness regarding the urgent requirement for digital transformation across a majority of the industries and created some lucrative opportunities for the global market. Companies are getting more aware of the advantages of digital transformation, particularly in the work-from-home culture that needs a business to allow the employees to easily learn, collaborate and perform organizational functions across remote locations.

 

DIGITAL CONTINUES TO DRIVE GROWTH IN CONSULTING

 

Such is the dominance of US consulting, that its status as the world’s largest consulting market barely bears mentioning anymore. The global consulting market grew by about 8% to $160 billion in 2020, but accounting for 44% of that, the US saw another year of meteoric growth last year according to Source Global Research. While it is still undeniably America first when it comes to consulting, however, the battle to be the second largest consulting market is much more tightly contested.

 

Despite slowed growth in the UK, the management consulting market in the UK has remained the globe’s second largest. Nearest rival Germany accounts for 0.3% less of the global consulting market than Britain.

 

DBMM20211130_10QIMG002.JPG

 

20

 

THE IMPORTANCE OF STRATEGIC CONSULTANCY IN 2021 AND BEYOND

 

Across industries, organizations are accelerating digital transformation processes for long-term growth and profitability. Yet: “53% of the organizations surveyed remain untested in the face of digital challenge and their digital transformation readiness therefore uncertain.” This report from Gartner highlights the need embrace change.

 

Businesses had no choice but to respond quickly to challenging conditions. Although not formally classed as ‘agile’, the twists and turns of the pandemic have required executives to innovate on the fly and collaborate to get things done. This has been compounded by working from home, which has cut out distractions and created more time for ‘deep thinking’.. Regardless of headcount, a return to more stable trading conditions shouldn’t mean running back to the standard practices and silos that previously slowed marketers down.

 

Adobe says that, Business-to-business (B2B) commerce will continue to undergo a major transformation in 2021 as companies adopt the latest technologies to find new customers, improve their supply-chain efficiencies, and provide a more personalized user experience to their clientele.

 

Digital Clarity has created a unique Diagnosis Workshop that helps brands identify needs as well as assess the opportunity available. The core focus is to help reduce wastage and increase results.

 

Areas of focus include:

 

 

Cost analysis

 

 

Audit current channels

 

 

Digital strategy planning

 

 

ROI projection planning

 

 

Digital consulting and training

 

DBMM20211130_10QIMG003.JPG

 

21

 

GLOBAL AD SPEND CONTINUES

 

 

Global advertising spend is expected to grow by 10.4.% or US$60bn to US$634bn 

 

Spend will rise past pre-pandemic levels, a year sooner than previously predicted

 

All regions forecast to return to growth in 2021 with Canada, the US and Australia expected to be fastest growing markets in 2021

 

Digital continues to drive recovery, returning to double digit growth. It will represent 50.0% share of global spend this year

 

Advertising investment is forecast to grow by 10.4% globally in 2021, according to the latest dentsu Ad Spend Report.

 

COMPETITIVE LANDSCAPE

 

Digital advertising is the fastest-growing segment of the global market for advertising spending. The increasing use of smartphones and the availability of cheap internet services are the two major factors propelling the growth prospects for this market. More than 30% of the companies are planning to spend around 75% of their advertising expenditures on digital marketing within the next five years.

 

“U. S. Marketers are expected to spend $110.1 billion on digital ads this year, or 51% of the $214.6 billion total U.S. advertising spending forecast, excluding political ads. Newspapers, radio, magazines, and local television now account for just 21% of the U.S. ad market.” From The Wall Street Journal

 

DIGITAL CLARITY HAS A COMPETITIVE ADVANTAGE

 

Digital Clarity operate in a highly commoditized market but have over the years build a stellar reputation that makes it different from its competitors. Some of these areas include:

 

 

1.

Our DNA is Strategically Driven

We believe the path to successful customer acquisition lies in understanding a client’s business – not just running a campaign. We seek to help clients understand that success has to be objective and measurable.

 

 

2.

We are Business Led

Digital marketing is not a cost but an asset. Not a line in a spreadsheet but an emotive force that if done right, will bring real business change and growth.

 

 

3.

We are Digital Thinkers

Marketing has to be at the heart of the business. Delivering real innovation in digital marketing requires not just knowledge but authority and bravery. We think digital. We drive results.

 

 

4.

Our goal is to deliver Digital Performance

 

We help our clients to understand their goals and objectives, using digital marketing to drive new business opportunities and retain their current customers.

 

In April 2020, HIS Markit, research firm, reported: “Each dollar that companies spent on advertising in the United States last year, led to $9 in sales.

 

THE GROWTH OF B2B SOCIAL MEDIA 

 

2020 will go down as the year that marketing was pulled into the boardroom. 80% of senior executives said the role of marketing in setting strategy has expanded since the pandemic. Traditional consumers have moved online, making the digital environment even more important right now.

 

This priority has raised the profile of marketing as companies scramble to understand the digital-first consumer. The battleground for 2021 will be about speed and agility. Now that many companies have treasure troves of data, the difference is how fast they can personalise the experience and respond to consumer behaviour. Expect to see more investment and innovation in technology infrastructure alongside marketing.

 

 

40% of B2B content marketers increased their investment in social media and online communities in response to COVID-19.

 

76% of B2B organizations use social media analytics to measure content performance.

 

By 2025, 80% of B2B sales interactions will occur on digital channels.

 

U.S. B2B business will spend an estimated $1.64 billion on LinkedIn ads in 2021, $1.99 billion in 2022, and $2.33 billion in 2023.

 

22

 

Almost all B2B content marketers (96%) use LinkedIn. They also rated it as the top-performing organic platform.

 

DBMM20211130_10QIMG004.JPG

 

GROWTH IN LINKEDIN ADVERTISING SET TO SOAR TILL 2023

 

For paid social posts, the picture is similar but not identical.

 

LinkedIn again comes out on top (80%).

 

But Facebook outranks Twitter and Instagram outranks YouTube.

 

DBMM20211130_10QIMG005.JPG

 

GLOBAL B2B ECOMMERCE SALES IN 2021

 

In the US alone, B2B eCommerce sales will hit $1.184 trillion by the end of 2021.

 

The predominance of B2B ecommerce means that B2B businesses must improve and simplify their shopping journey, channeling the B2C ordering experience. The B2B shopping experience is a lot more complicated than that of a B2C buyer.

 

Because of the nature of the transaction, B2B buyers usually need to go through various steps, including sales representative interaction, negotiations, and approvals before they can make a successful purchase. In short, B2B eCommerce businesses must adapt to a more seamless transaction building advanced functionality quote management, price negotiation, easy ordering, order and inventory management for the B2B market.

 

23

 

According to Forbes Magazine in 2021 the largest ecommerce markets are:

 

1

China:

$636 billion

2

United States:

$504 billion

3

Japan:

$104 billion

4

United Kingdom:

$86 billion

5

Germany:

$70 billion

6

France:

$43 billion

7

South Korea:

$37 billion

8

Canada:

$30 billion

9

Russia

$20 billion

10

Brazil

$19 billion

 

US B2B DIGITAL AD MARKET SET FOR POST PANDEMIC GROWTH

 

According to eMarketer's July 2021 forecast, 2023 will be a pivotal year for the US B2B digital ad market as spending approaches $15 billion. By then, the seismic transformation spurred by the pandemic will be permanent.

 

Last year, US B2B pivoted from in-person channels to digital ads to reach audiences. In 2021, the growth in digital ad spending will be even greater than was originally estimated by eMarketer, indicating the shift to digital isn’t slowing down.

 

Digital ads will also remain a more prevalent part of the B2B media mix in the coming years.

 

US B2BS SPEND ON LINKEDIN DISPLAY

 

LinkedIn makes up the largest share of US B2B display in 2021 with 32.2% of the $5.09 billion that will be spent on B2B display this year. We estimate US B2B LinkedIn display ad revenues will be $1.64 billion in the US, growing 27.1% from 2020 when $1.29 billion was spent on LinkedIn B2B display.

 

US B2BS SPEND ON SEARCH TO INCREASE

 

In 2021, US B2Bs will spend $5.36 billion on search ads, more than what will be allocated to display.

 

But search’s growth rate isn’t as strong: It will increase by 19.5% from 2020.

 

DBMM20211130_10QIMG006.JPG

 

24

 

THE NEW NORMAL WILL BE DIGITAL

 

In just one-year, digital adoption has happened at five to ten times the projected rate.

 

Lockdown periods, economic uncertainty and loss of predictability have forced customers and businesses online in previously unseen numbers. This migration has upset the power balance, with customers now more in control of the relationship and less loyal to brands and products. On top of that, 60% of companies have seen new buying behaviors such as changes to average basket size and product interests.

 

Pandemic disruption is also causing many businesses to demand a similar level of convenience to consumers. When we return to normal, there’s no question that the new normal will be digital.

 

GROWTH IN INVESTOR AWARENESS AND OUTREACH.

 

During 2022, Digital Brand Media & Marketing Group, Inc. will initiate a significant effort to raise positive awareness of DBMM's growth potential on a global basis. The Company had to continue to defer its 2020/21 plans until certain SEC Matters regarding the delinquent filings brought current in July 2018, remain open. The global pandemic made it impossible to initiate any Investor Awareness Program.

 

Hopefully in 2022 the strategic outreach will be directed at investors around the world who understand the digital marketplace and its expanding influence on consumer decisions. DBMM will target new investors through a global digital and traditional integrated investor outreach campaign which will be run by Digital Clarity, with third parties, as required, for distribution. In all areas, the Company will act in the interests of all stakeholders.

 

In the full industry context of dramatic expansion of digital footprints, there has been no direct correlation between DBMM's revenues and its share price. Economic and industry analysts have opined that the industry multiple continues to grow to, in some cases, 25-30 times revenues. DBMM will expand its client and geographic scale, thus increasing revenues. There were matters outside of DBMM's control which caused growth to be in neutral, and in 2020/21 the pandemic threw all planning into disarray. With capital infusion, 2022 will follow the model of a growing client base and geographic reach until it achieves a TBD level of profitability. We anticipate the benchmark will replicate successful industry models in digital technology, marketing and company transformation.

 

FINANCIAL OVERVIEW/OUTLOOK

 

DBMM has been honing its commercial model since the acquisition of Digital Clarity (“DC”) in 2011 which has been cash-flow positive as an operating company since its acquisition. External events outside of DBMM's control has precluded the growth expected to this point, however, its margins will continue to be strong on an annual basis, and once the business reaches appropriate scale with assumed profitability and cross-over point, DBMM trajectory suggests a resultant very successful business for all of its stakeholders.

 

The growth trajectory anticipated is expected during 2022, following capital infusion and return to normal trading. Once that occurs, the clients benefit immediately due to a wider range of resources; the shareholders will benefit as the market cap grows. The media market multiple far exceeds the “old” manufacturing multiples, as digital technology and marketing has become one of the fastest growing industries in the world today.

 

DBMM's place in the sector is strong. The industry environment continues to grow exponentially and the future of digital marketing as an essential strategy for any consumer-facing business has been proven over-and-over as certain retail businesses are forced to close their doors for lack of or an ineffective digital presence. DBMM's brand, Digital Clarity, increases its valuation with client case studies and industry awards resulting in its being considered a leader in the sector for its size. DBMM's increasing client base, coupled with decreasing certain kind of debt and expenses, positions the Company to attract mezzanine financing, something sought after by many and achieved by few.

 

Coincidently, 2020/21 results have slowed down temporarily due to Brexit unease in the UK and clients concern about trade issues with or without the European Union. So in the midst of the uncertainty caused by the Brexit slowdown, the COVID -19 global outbreak has caused further slowdown as clients paused and business development much different during an initial lockdown , then lifted only to be reinstated on November 5, 2020. That only made the uncertainty further exacerbated, while clients need to extend or double down on their digital footprint as the industry has become essential during the pandemic. Nevertheless, Digital Clarity is revising its model to adjust to changing circumstances, when client revenues are paused or delayed.

 

25

 

The Company received a commitment for future working capital in order to grow the Company in key markets, with the intent to move to DBMM profitability following a return to normal trading. At that point, DBMM would not require future financing until it was ready to acquire 1-2 additional companies to complement and further develop the digital marketing business. Growth capital will increase as the client base re-balanced and expands in size and scope.

 

Going forward, there will be an emphasis on investor awareness as soon as the SEC dismissal has been affirmed by the full commission. DBMM has been current in its filings since July 2018 and is encouraged by the outlook after normal trading has recommenced. DBMM intends to make significant strides in aggressively widening its brand exposure using a variety of digital and social channels. There are investors around the globe who understand the digital marketplace and its increasing influence on consumer decisions. DBMM will be targeting these new investors in the public market through a global digital and traditional, integrated campaign which will be run by Digital Clarity, with third parties, as required for distribution.

 

The expectations for fiscal year 2022 remain to return to normal trading following affirmance of the dismissal by the full commission. The Company intends to move ahead thereafter to the scaled, growth plan in multiple geographies to benefit all stakeholders, being mindful of the impact of the global pandemic.

 

During fiscal 2021, and to a lesser extent, in fiscal 2020, we successfully reached agreements with certain lenders resulting in gain on extinguishment for loans payable which amounted to the difference between the carrying value and the revised amount of the obligations. The gain on extinguishment of principal and accrued interest amounted to $169,837 and $57,802 and during fiscal 2021 and 2020, respectively.

 

We also successfully reached an agreement with a holder of convertible debentures aggregating $249,800 to modify its terms. Such debentures are no longer convertible, are now non-interest bearing, and have been reclassified to loans payable. It also resulted in a decrease in derivative liabilities and an increase in additional paid-in capital of approximately $260,000 during fiscal 2021.

 

We have not issued convertible debentures since 2015.

 

THREE-MONTH PERIOD ENDED NOVEMBER 30, 2021

 

We had approximately $26,000 in cash and our working capital deficiency amounted to approximately $5.7 million at November 30, 2021.

 

During the three-month period ended November 30, 2021, we used cash in our operating activities amounting to approximately $100,000. Our cash used in operating activities was comprised of our net loss of approximately $146,000 adjusted primarily for the following:

 

Accounts payable, accrued expenses, accrued interest, and accrued compensation, of approximately $37,000, resulting from a short fall in liquidity and capital resources.

 

Additionally, the following variations in operating assets and liabilities during the three-month period ended November 30, 2021 impacted our cash used in operating activity:

 

We generated cash from financing activities of $106,213 which primarily consists of the proceeds from notes payable.

 

THREE-MONTH PERIOD ENDED NOVEMBER 30, 2020

 

We had approximately $33,000 in cash and our working capital deficiency amounted to approximately $5.3 million at November 30, 2020.

 

During the three-month period ended November 30, 2020, we used cash in our operating activities amounting to approximately $122,000. Our cash used in operating activities was comprised of our net loss from continuing operations of $248,000 adjusted for the following:

 

Accounts payable, accrued expenses, accrued interest, and accrued compensation, of approximately $131,000, resulting from a short fall in liquidity and capital resources.

 

During the three-month period ended November 30, 2020, we generated cash from financing activities of $121,107, which consist of the proceeds from the issuance of loan payables.

 

26

 

RESULTS OF OPERATIONS

 

   

Consolidated Operating Results

 
                                 
   

For the For the Three Month Period Ended

 
                   

Increase/

   

Increase/

 
   

November 30,

   

November 30,

   

(Decrease)

   

Decrease

 
   

2021

   

2020

           

%

 
                                 

SALES

  $ 57,582     $ 36,965     $ 20,617       56 %
                                 

COST OF SALES

    39,754       90,323       (50,569 )     -56 %
                                 

GROSS PROFIT

    17,828       (53,358 )     71,186       NM  
                                 

COSTS AND EXPENSES

                               

Sales, general and administrative

    165,925       117,219       48,706       42 %
                                 

TOTAL OPERATING EXPENSES

    165,925       117,219       48,706       42 %
                                 

OPERATING LOSS

    (148,097 )     (170,577 )     (22,480 )     -13 %
                                 

OTHER (INCOME) EXPENSE

                               

Interest expense

    83,472       83,041       431       1 %

Other income

    (98,262 )     -       (98,262 )     NM  

Change in fair value of derivative liability

    12,207       (5,956 )     18,163       NM  

TOTAL OTHER EXPENSES, NET

    (2,583 )     77,085       (79,668 )     -103 %
                                 

NET LOSS

  $ (145,514 )   $ (247,662 )   $ (102,148 )     -41 %
                                 

NM: not meaningful

                               

 

We currently generate revenue through our Pay-Per-Click Advertising, Search Engine Marketing, Search Engine Optimization Services, Web Design, Social Media, Digital analytics and Advisory Services.

 

For the three-month period ended November 30, 2021 our primary sources of revenue are the Web design and advisory services, Per-Click Advertising, and Social Media. These primary sources amounted to 64%, 34%, and 2% of our revenues, respectively during the three-month period ended November 30, 2021.

 

Revenue is recognized upon transfer of control of promised or services to customers in an amount that reflects the consideration the Company expect to receive in exchange for those services. The Company enter into contracts that can include various combinations of services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

 

The increase in our revenues during the three month period ended November 30, 2021, when compared to the prior year, is due to increase activity following the ease of restrictions in the UK associated with COVID-19 and its impact on Digital Clarity’s clients.

 

During the three-month period ended November 30, 2021, our cost of sales decreased due to reduction in compensation streamlining our delivery of services.

 

The sales, general and administrative expenses during the three-month period ended November 30, 2021 increased primarily from an allocation of overhead of expenses to non-revenue generated activities during that period compared to those incurred in the prior period.

 

Interest expense during the three-month were consistent when compared to those incurred in the prior period.

 

27

 

The increase on derivative liabilities during the three-month period ended November 30, 2021 is primarily attributable to an increase in the Company’s estimated volatility used in the assumptions to compute its fair value at November 30, 2021 when compared to November 30, 2020.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

 

As a “smaller reporting company”, as defined by Rule 10(f)(1) of Regulation S-K, the Company is not required to provide this information.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

As of the end of the period covered by this report, management, including our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Act.

 

Based upon the evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of November 30, 2021. Our management concluded that the consolidated financial statements included in this report fairly present, in all material respects, our financial position, results of operations and cash flows for the period presented in accordance with GAAP.

 

Changes in Internal Controls Over Financial Reporting:

 

There were no changes in our internal control over financial reporting during the quarter ended November 30, 2021 identified in connection with the evaluation thereof by our management, including our Principal Executive Officer and Principal Financial Officer, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

28

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

The U.S. Securities & Exchange Commission instituted an Administrative Proceeding, File No. 3-17990, on May 16, 2017 to revoke the Company's registration statement because of delinquent filings. A hearing was held on August 9, 2017 and the Initial Decision to revoke the registration was dated November 16, 2017. The order was subsequently remanded by order of the U.S. Supreme Court in December 2017. The Company responded to the Remand with evidence of mitigating circumstances under a Protective Order and filed all its delinquent filings: a Super 10-K for 2015-2016-2017 on May 31, 2018 and 10-Q's for 2018 1Q, 2Q on June 22, 2018 and 3Q on July 15, 2018, its due date.

 

The Hearing for January 15, 2019 was re-scheduled because of government shutdown. Digital Brand entered a Motion to Dismiss the Proceedings on March 19, 2019 based on being current as of July 2018, and all filings to date have been filed on time for the 2019 fiscal year. The facts were presented at the hearing. The Division did not support the dismissal in a response to which Digital Brand filed two Amendments to the Consolidated 10-K for 2015- 2016-2017 and the 10-K for 2018 on April 23 and 24, 2019 respectively, and Amendments No. 2 on October 1, 2019 to supersede language in Part II, Item 9A. On November 12, 2019, Carol Fox Foelak, Administrative Law Judge, Securities & Exchange Commission ordered an Initial Decision/Dismissal of the Proceeding. The Dismissal becomes effective under Rule 360 of the Commission's Rules of Practice, 17 C.F.R., Section 201.360, following the Commission’s Order of Finality. On December 3, 2019 The Division of Enforcement Submitted a Petition for Review of Judge Carol Fox Foelak’s Initial Decision dismissing the Administrative Proceedings rendered on November 12, 2019. The Company filed a Motion for summary affirmance of the Initial Decision on December 20, 2019. The Motion for Summary Affirmance was not opposed by Enforcement.

 

On January 25, 2021, the Commission denied the Company’s Motion for Summary Affirmance of Judge Carol Fox-Foelak’s Dismissal of November 12, 2019 and granted the Division’s Petition for Review and set a briefing schedule beginning February 24, 2021. The Commission concluded that “briefing in the ordinary course would...assist the Commission. This appeal raises issues as to which we have an interest in articulating our views and important matters of public interest, including the proper application of the standard that governs determination of sanctions in a Section 12(j) proceeding.” Both parties have briefed and concluded April, 2021. The Company is disappointed that so much time has been lost and intends to vociferously support the original Dismissal after two years.

 

The Commission notified the Company on December 9, 2021 that an extension of 90 days to issue a decision has been ordered. The Company will review options to support bringing this matter to conclusion as soon as possible.

 

From time to time, the Company has become or may become involved in certain lawsuits and legal proceedings which arise in the ordinary course of business. The Company intends to vigorously defend its positions. However, litigation is subject to inherent uncertainties and an adverse result in those or other matters may arise from time to time that may harm its financial position, or our business and the outcome of these matters cannot be ultimately predicted.

 

Item 1A. Risk Factors

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this item.

 

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

 

None

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Submission of Matters to a Vote of Security Holders

 

None.

 

Item 5. Other Information

 

None.

 

29

 

Item 6. Exhibits

 

31.1

 

Principal Executive Officer Rule 13a-14(a) Certification

Principal Financial Officer

Executive Director

32.1

 

Principal Executive Officer Sarbanes-Oxley Act Section 906 Certification

Principal Financial Officer 

Executive Director

     

101.INS

 

Inline XBRL Instance Document

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

 

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

 

 

30

 

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

DIGITAL BRAND MEDIA & MARKETING GROUP, INC.

 

Date: January 14, 2022

 

 

By: /s/  Linda Perry                             

Linda Perry

Principal Executive Officer

Principal Financial Officer

Executive Director

 

31
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