DBMM SHAREHOLDERS UPDATE: BACK TO BASICS–BUSINESS TO PUBLIC COMPANY – JUNE 18, 2017

DBMM SHAREHOLDERS UPDATE: BACK TO BASICS–BUSINESS TO PUBLIC COMPANY – JUNE 18, 2017

DBMM Management believes it to be important to continuously put some of the negative and spurious comments by individuals who have little or no understanding of either regulatory or legal process, in perspective. There has never been an issue about the viability of DBMM’s business model, or the opportunities for digital marketing in the 21st century. Moving ahead, the current negative hurdles are temporary, while the positive future prospects offered will be long-standing, with many aspects even permanent.

The digital landscape is a growing aspect of the global economy and DBMM has proven its ability to be in the forefront. DBMM has improved its revenues quarter to quarter, despite those who blithely trash the business. The Company believes it useful to remind new and old readers that the last filing on Sept 24, 2015 (https://www.sec.gov/Archives/edgar/data/1127475/000112747515000023/dbmm10q053115.htm) stated the data contained therein:

“The 3Q 2015 revenues were up 39% to $368,364 for 9 months. Net loss was decreased 34% from $1,025,766 to $673,852. Expenses have decreased by 36% for the same period.”

The delayed filings will support the same trend as you will see once the reports are filed with the SEC via EDGAR. DBMM expects the naysayers to (politely) disappear as the delayed audited 10-K and subsequent filings will document exactly what the Company has stated earlier.

Let’s begin with an overview of the industry, the macro-perspective, then segue to DBMM, as an investment facing challenges:

In the recent Gartner Chief Marketing officer (CMO) Spend Survey 2016-2017, marketing leaders spent more of their budgets on 3 categories, websites, digital commerce and digital advertising in 2017, than they did in 2016. Simplistically, that suggests the digital landscape positively evolves year-on-year, and will continue to increase as the sector develops, as other alternates in the past are diminishing. In the retail sector alone, the shift away from storefronts and bricks and mortar, to the digital footprint. Look at Walmart and other big box stores as examples. Conversely, Amazon is opening and acquiring retail stores as a start point, after they disrupted the previous industry model to become “the everything store.” While desecrating the decades-old retail sacred cow, Amazon improved the customer experience along the way.

DBMM’s agency, Digital Clarity has sought to optimize its reach by partnering with Google as a Premier Partner. Statistical measurements reinforce the trend: 65% of marketing leaders will increase spending in 2017. Let’s drill down further to Google AdWords. Spending on AdWords increased 21% 1Q17, up 19% from 4Q16. Revenues up 22% year-on-year, while advertising revenues were $22.4billion, representing a 17% growth. Paid clicks were up on Google sites and network properties, 43% and 7%, respectively.

Regarding DBMM’s place in the sector, it is strong. The industry environment continues to grow exponentially and the future of digital marketing as an essential strategy for any consumer-facing business is essential. DBMM has been honing its business model since the acquisition of its brand and is an industry leader for its size. DBMM’s increasing client base and increasing revenues, coupled with decreasing debt and expenses, positions the Company as intended, thus attracting mezzanine financing.

For context, Benjamin Graham-a British-born investor who inspired Warren Buffett repeated endlessly, his colleagues said: “In the short term, the stock market is a voting machine. In the long run it’s a weighing machine that measures a Company’s true value.”

In terms of state of play, DBMM’s issues have always been public company hurdles, e.g. the cost of maintaining a public company, the cost of capital during the Great Financial Recession, when the only funding available was toxic and the micro-cap environment in general. No matter how high the positive margins, it was nearly impossible to stay ahead of the cost of capital. Then superimpose the only litigation the Company has had, and the actions required to pushback. Coincidently, DBMM has worked diligently to put toxic lending in the rear view mirror, engage mezzanine financing at “normal” market rates, to be repaid out of increased revenues, not equity.

DBMM continues the SEC process as stated in Release No. 4851/June 5, 2017. The Company has filed its Pre-Hearing Conference materials in considerable detail. It developed the Company’s earlier “Answer” in support of DBMM’s response as to why, for the first time, its filings were delayed. The document was prepared by DBMM’s SEC Counsel, Marshal Shichtman, Esq, in collaboration with the Company.

In addition, D’Arelli Pruzansky, DBMM’s Auditor, has merged its public company audit practice into Assurance Dimensions /Certified Public Accountants & Associates, a larger firm with multiple locations, while maintaining its current address. DBMM is filing an 8-K as required to appoint the merged entity, Assurance Dimensions, as its Auditor-of-Record.

Those who tout the ‘revocation’ death chant’ have not shared that 90% of companies suspended for delinquent filings, never “Answer” the SEC in the first instance. They no longer wish to be public companies. Had DBMM intended that outcome, it would have filed a Form 15 in advance of the suspension. Harken back to the SEC Advocacy document https://www.sec.gov/investor/alerts/tradingsuspensions.pdf

Even those companies who have gone dark/been de-registered/revoked, can file the requisite reports of Forms 10 and/or15c-211 to re-register/resume trading with approval of the SEC and FINRA. The shareholders remain the shareholders. Those saying otherwise have neglected to provide the full picture. Again repeat, the fearmongers have an agenda, be aware.

Also another Repeat-DBMM is owned by the shareholders. DBMM intends to resume trading. DBMM asks its shareholders for patience, for the time required to complete the SEC process. In the interim, DBMM’s Management offers the patient view of an investment in DBMM, as follows: “In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit. Operative words being “future and profit.” Investing involves the purchase of assets with the hope of holding them for the long-term, while speculation involves attempting to capitalize on market inefficiencies for short-term profits.” www.Investopedia.com/terms/investment.asp

Updates will continue. Please try and ignore the false information being spewed by a few. The Company is gathering misinformation and alternative (false) facts as stated in earlier Updates and its advisors will address, in due course. Right now it is a nuisance as there are more pressing priorities. Wild comments without basis in facts is part of the problem and always has been in the micro-cap market, and that is a separate issue being addressed as a public policy issue by others as online regulations evolve.

SAFE HARBOR

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.