DBMM Shareholder Update — April 14, 2025
Digital Brand Media & Marketing Group, Inc. (“DBMM” or “The Company”) is pleased to provide its latest Shareholder Update, issued concurrently with the filing of its Q2 10-Q for the 2025 fiscal year with the Securities & Exchange Commission via EDGAR on April 14, 2025.
Following normal practice, the Company Management is issuing a Shareholder’s Update to provide context and clarity with the filing of the required SEC quarterly report. The update shares the status of the Company‘s long-term pivot into growth transformation and Digital Clarity’s drive as a market leader in AI-driven strategy and consulting.
In our January 2025 update, we shared the bold pivot underway at Digital Clarity, envisioning a complete shift from a highly commoditized early digital marketing business in the initial forefront, through a series of mitigating external circumstances which DBMM addressed successfully, to a business as an AI-first consultancy with a hybrid model combining intelligent automation and strategic marketing expertise. That vision was expected to be drilled down in the first two quarters of 2025 taking shape— and most importantly ensuring sustainability for all DBMM stakeholders. Our proprietary AI platform is in the midst of beta testing , a pivotal step that ultimately unlocks new AI-led services for clients who must integrate automation and intelligent strategy into their growth to maintain their competitive advantage. To accelerate this a new Project Manager is on board to lead the AI platform’s development and delivery. There are also additional professional and support staff to ensure the second half of fiscal year 2025, is DBMM’s “best year ever.”
Likewise, the points in the 10-K Executive Summary which stated the plan for the 2025 fiscal year issued on November 29, 2024 and elaborated on in the details via the MD&A in the subsequent Q’s. While the business continues to be reconfigured as described below, other positive aspects as highlighted in the summary continue.
The Derecognition of Liabilities on pg. 13, continues to remove aged Convertible Debentures with all the ancillary knock-on charges from the balance sheet to the benefit of the Company. That activity is summarized under “Company Initiatives To Remove Certain Aged Debt since 2018 with the caveat that funding will no longer utilize or execute convertible debentures as of 2016. The 2Q2025 reconciling item of fixed shares are to be issued in tranches for Section 13 reporting purposes.
To that end, in the 2Q2025, $ 739,415 in principal, interest, and derivative liabilities was removed for a fixed equity cost of $280,000. That eliminates the total debt, with a gain in extinguishment of debt for DBMM of $459,415.
Link: Executive Summary 10-K, November 29, 2024
Reggie James the Chief Operating Officer and Director of DBMM and Founder and Managing Director of DC said, “We are fully committed to individually supporting our clients in reshaping how brands leverage data, AI, and strategic insight to outperform in a digital-first marketplace. For DBMM, the expectation was a temporary, flat scenario in short-term revenue, as we evolve from the commoditized business to the higher revenues new business. That pattern is normal for high-impact transformation cycles, as we retool our system, team, and service offerings for long-term scalability, success and sustainability.” In other words, the last two (2) quarters, 3Q and 4Q will generate the “best year ever in 2025.”
James added, “According to Gartner, the AI consulting and strategy market is projected to grow at a compound annual growth rate (CAGR) of 32% through 2027, with global spending expected to exceed $300 billion plus. DBMM is strategically positioned to capitalize on this explosive growth through our proprietary AI platform and high-touch consulting model. “He stressed, “all stakeholders should look forward to exciting times ahead!”
Specifically James went on, “We have recently onboarded a remote, dedicated Sales Development Representative (SDR) focused on accelerating pipeline growth and nurturing high-value prospects, and in addition, are finalizing the hire of a Social Media and Support Executive to amplify our global digital presence and client engagement.
All of this activity, both financial and operational, is to support recent business development efforts which we will share in due course. Many will prove transformative in scope and metrics indicative of the new segment. The transformation we set in motion is gaining traction. The work is complex, time and labor-intensive, but the momentum is clear. Despite ongoing macroeconomic volatility and geopolitical instability, we’re seeing meaningful traction, our expertise is agnostic and welcomed with widened opportunities. Potential becomes results with a larger, growing team and a stronger pipeline, we’re building toward what will be our best year ever in fiscal 2025.”
Linda Perry and Reggie James
DBMM Management
SAFE HARBOR PROVISIONS
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in DBMM’s reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.