Digital Brand Media and Marketing Group Inc (DBMM)

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SHAREHOLDER UPDATE – JULY 15, 2024 DBMM

Digital Brand Media & Marketing Group, Inc. (“The Company” and “DBMM”), and its flagship brand, Digital Clarity (“DC”) filed its third quarter 10-Q for the 2024 fiscal year with the Securities & Exchange Commission via EDGAR on July 15, 2024.

As has been the case for some time, the Company is providing a Shareholder’s Update coincidently with some context and awareness of the Company’s journey since the Final Order of Dismissal issued by the SEC on June 2, 2023, in the matter of delayed filings. That date acknowledged the mitigating circumstances, all unnecessary as were through no fault of DBMM, but caused expenditures of resources in time and money which could have been focused on growth following the acquisition of Digital Clarity.

Since then, the Company has changed its business model considerably because the environment in digital marketing has become highly commoditized from the early and pre-Covid landscape. The Company is building its infrastructure in the US, putting money into the business. The sophistication required to earn and retain a seat at the decision-maker’s table is ongoing as a management consultancy. The consultancy must provide a competitive advantage, and have the ability to provide full service and draw in strategic alliances, partnerships, and areas of expertise like A-I and organization effectiveness expertise to position clients to achieve optimum ROI. This dynamic environment also requires continuous outreach and initiatives to remain a leader , while expanding the offering and positioning the Company for sustainable growth.

The geographic reorientation to the US becomes the first order of business. Test markets are being established and developed leveraging experts and denizens of the local environments to recognize the advantages, some commonalities, and many differences, of each city. The macro analysis is laborious, in conjunction with DC’s micro-analysis of each client’s metrics, its analytics, in terms of the blueprint used for each client, in each geography. Once established, the plan is evergreen and further evolves in practice and results. DC is spending the time and effort to get this analysis right.

An Update was issued on Friday, July 12, 2024, which described at some length entry into the Seattle market potentially, beginning with a relationship forward. It was an actual example for the public to share. We encourage all stakeholders to read and understand that the Company is meticulously following a plan, and the Company shared for emphasis in last Friday’s Update .

As stated in the 3Q2024 MD&A page 31:

“We are gaining clients in the US and are expecting the revenues from the US market to increase.
The outlook is tempered by short-term, temporary economic uncertainties in the UK and US which prompts existing and potential clients to reevaluate their marketing strategies.
These reevaluations also come with temporary marketing budget reductions which temporarily reduced our revenues in the third quarter of 2024.
We believe that revenues from existing clients will increase once concerns over the UK and US economies dissipate and business confidence is restored.
Our evolution to a full-service, dynamic digital marketing management consultancy with many moving parts, including third-party, strategic alliances and representation spanning US geographies compared to the early days of a commoditized pay-per-click and search engine optimization service business will have transitional features.
Among other things, the costs of a full consultancy provide much higher revenues for longer contractual periods but entail a longer cash conversion cycle.”
DBMM’s Management has continued to advise shareholders to do their own due diligence. DBMM is a long-term investment, not a short-term play. The same negative individuals who put forth opinions that are simply false and should be ignored. They have continued to bash and undermine the company and turn well-meaning new investors and shareholders against the company, for their own personal gain to manipulate the stock. For a small and ambitious company like DBMM, the impact has been damaging and the matter will be dealt with in due course. Defamation has not been tolerated in US Courts and documented in the news. Securities laws are outlined in the SEC Financial Disclosure guidelines.

OUTLOOK

Captured by Reggie James, the Chief Operating Officer and Director of DBMM and Founder and Managing Director of DC, as third-quarter 2024 observations:

“The nature of our business development in the tech software sector involves long lead times. As described earlier, a management consultancy must check each box along the way in order to assure sustainability. This is especially the case currently with the time taken to convert new clients into actual “Revenue Recognition” as defined by the SEC and PCAOB which affects revenue-reported results”.

James went on, “Reporting requirements are meticulously followed. Putting the geographic infrastructure in place is labor intensive and the execution follows with the expected time lag before actual financial reporting can be included. These challenges in the last quarter, are in the normal course of business. Especially in the course of change, care must be taken step by step.

Despite the bureaucracy, of course, we remain optimistic. It is the journey of a business in reorganization and growth. There are also unexpected positive events with a brighter outlook on the horizon. Previous clients are discussing returning to management consultancy engagements with DC before the end of 2024.

We are actively engaging with new potential clients and exploring new market opportunities. Additionally, with the anticipated stabilization of economic conditions post-elections and geographic expansion into multiple U.S. locations, the revenues will be included in DBMM’ s Financial Statements. Our strategic focus on innovation, client satisfaction, and market expansion positions us well for future growth. The steps to get there are laborious as US-regulated companies are, but as a fully reporting company, the brand is gaining traction, and we are very much on our way.

The Company will be running a series of sharing progress on our strategic alliances and the opportunities created by the representation model. Our first podcast will focus on Irvine, California and the plan being executed

The Company’s Best Practice model will continue to share events under Financial Disclosure guidelines as they occur. Plans are not shared until results actually occur as always subject to change.

Management will also continue to adapt and evolve in this dynamic market landscape.

The 10-K is the next required SEC Report, which will document the blueprint execution of the business plan of DBMM as a management consultancy advising B2B focusing on the US.

Long shareholders are our support system as our flagship brand gains recognition and is sought after. The Management is appreciative and together we are stronger.

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.

https://www.dbmmgroup.com/shareholder-update-july-15-2024/