Digital Brands Group Inc
For the period ended Dec 31, 2023. Filed Apr 15, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Apr 15, 2024
DBGI$0.16-19.5%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. CONSOLIDATED STATEMENTS OF CASH FLOWS
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | |
|---|---|---|---|---|---|---|
| · · Year Ended | ||||||
| · · December 31, | ||||||
| | 2023 | 2022 | ||||
| Cash flows from operating activities: | | | | | | |
| Net loss | | $(10,247,133) | | $(38,043,362) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | ||
| Depreciation and amortization | | 3,249,194 | | 2,226,376 | ||
| Amortization of loan discount and fees | | 3,937,007 | | 6,506,384 | ||
| Loss on extinguishment of debt | | 716,517 | | — | ||
| Loss on disposition of business | | | 1,523,940 | | | — |
| Stock-based compensation | | | 408,810 | | | 602,038 |
| Shares issued for services | | 1,656,428 | | — | ||
| Change in credit reserve | | | 202,761 | | | (118,840) |
| Change in fair value of contingent consideration | | | (10,698,475) | | | 564,303 |
| Deferred tax expense | | | 368,034 | | | 367,696 |
| Fees incurred in connection with debt financings | | | — | | | 568,149 |
| Change in fair value of warrant liability | | | — | | | (18,223) |
| Change in fair value of derivative liability | | | — | | | (1,354,434) |
| Impairment of goodwill and intangible assets | | — | | 15,539,331 | ||
| Forgiveness of Payroll Protection Program | | | — | | | (1,760,755) |
| Changes in operating assets and liabilities: | | | | | | |
| Accounts receivable, net | | 497,771 | | (475,036) | ||
| Due from factor, net | | 144,755 | | 655,708 | ||
| Inventory | | 375,682 | | 471,831 | ||
| Prepaid expenses and other current assets | | | 551,259 | | | (402,515) |
| Accounts payable | | 1,900 | | 919,131 | ||
| Accrued expenses and other liabilities | | 1,047,430 | | 1,992,649 | ||
| Deferred revenue | | (183,782) | | (74,268) | ||
| Due to related parties | | | | 278,590 | ||
| Accrued interest | | 434,958 | | 984,358 | ||
| Net cash used in operating activities | | (6,012,942) | | (10,570,889) | ||
| Cash flows from investing activities: | | | | | | |
| Cash acquired (consideration) pursuant to business combination | | | — | | | (7,247,303) |
| Purchase of property, equipment and software | | | (29,675) | | | (5,533) |
| Deposits | | 118,494 | | | (60,548) | |
| Net cash provided by (used in) investing activities | | 88,819 | | (7,313,384) | ||
| Cash flows from financing activities: | | | | | ||
| Repayments of elated party advances | | (155,205) | | — | ||
| Advances (repayments) from factor | | 154,073 | | (3,096) | ||
| Repayments of related party notes | | | — | | | (170,000) |
| Repayment of contingent consideration | | — | | (645,304) | ||
| Proceeds from venture debt | | — | | 237,500 | ||
| Issuance of loans and note payable | | 5,479,611 | | 3,280,360 | ||
| Repayments of convertible and promissory notes | | | (10,129,811) | | | (7,437,349) |
| Issuance of convertible notes payable | | | — | | | 6,951,250 |
| Proceeds from public offering | | | — | | | 19,347,446 |
| Offering costs | | | — | | | (2,921,646) |
| Issuance of common stock, net of offering costs | | 8,145,381 | | — | ||
| Proceeds from exercise of warrants | | | 1,167,566 | | | — |
| Net cash provided by financing activities | | 4,661,614 | | 18,639,161 | ||
| Net change in cash and cash equivalents | | (1,262,509) | | 754,888 | ||
| Cash and cash equivalents at beginning of year | | 1,283,282 | | 528,394 | ||
| Cash and cash equivalents at end of year | | $20,773 | | $1,283,282 | ||
| Less: cash of discontinued operations | | | — | | | 7,666 |
| Cash of continuing operations at end of year | | $20,773 | | $1,275,616 | ||
| | | | | | | |
| Supplemental disclosure of cash flow information: | | | | | ||
| Cash paid for income taxes | | $— | | $— | ||
| Cash paid for interest | | $711,815 | | $734,869 | ||
| | | | | | | |
| Supplemental disclosure of non-cash investing and financing activities: | | | | | ||
| Conversion of notes into preferred stock | | $5,759,177 | | $— | ||
| Conversion of notes into common stock | | $— | | $11,983,389 | ||
| Right of use asset | | $467,738 | | $102,349 | ||
| Warrants issued in connection with note | | $— | | $1,368,741 | ||
| Derivative liability in connection with convertible note | | $— | | $559,957 | ||
| Conversion of related party notes and payables into preferred and common stock | | $— | | $6,300,000 | ||
| Conversion of venture debt into preferred stock | | $— | | $— | ||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.