Verb Technology Company Inc (VERB)

[dukeb]

In the 10-Q, the word(s) TikTok are mentioned 107 times.

A most entertaining part of the report:

A description of our principal revenue generating activities is as follows:

MARKET.live generates revenue through several sources as follows:

a. All sales run through our ecommerce facility on MARKET.live from which we deduct a platform fee that ranges from 10% to 20% of gross sales, with an average of approximately 15%, depending upon the pricing package the vendors select as well as the product category and profit margins associated with such categories. The revenue is derived from sales generated during livestream events, from sales realized through views of previously recorded live events available in each vendor’s store, as well as from sales of product and merchandise displayed in the vendors’ online stores, all of which are shoppable 24/7.

b. Produced events. MARKET.live offers fee-based services that range from full production of livestream events, to providing professional hosts and event consulting.

c. Drop Ship and Creator programs. MARKET.live is expected to generate recurring fee revenue from soon to be launched new drop ship programs for entrepreneurs and its Creator program.

d. The Company’s TikTok Shop store and affiliate program.

e. The MARKET.live site is designed to incorporate sponsorships and other advertising based on typical industry rates

f. The Company’s recently announced partnership with TikTok Shop. Pursuant to the terms of the partnership, MARKET.live has become a service provider for TikTok Shop and is officially designated as a TikTok Shop Partner (TSP). Under the terms of the partnership, TikTok Shop refers consumer brands, retailers, influencers and affiliates leads to MARKET.live for a menu of paid services that include, among other things, assistance in onboarding to TikTok Shop and establishing a TikTok Shop store, hosting training sessions and webinars for prospective TikTok Shop sellers, MARKET.live studio space rental in both the West Coast and East Coast MARKET.live studios, content creation and production services, and TikTok Shop maintenance, including enhancements to existing TikTok Shop seller stores. The partnership also contemplates TikTok Shop sponsored studio rentals, as well as a paid-for “day pass” for use of MARKET.live studio services by TikTok creators, influencers and affiliates. It is expected that MARKET.live will generate revenue through fees, including monthly recurring fees, paid directly to MARKET.live by the brands, retailers, influencers and affiliates referred to MARKET.live by TikTok. In addition, it is contemplated that MARKET.live will receive a percentage of monthly revenue generated through the TikTok Shop stores MARKET.live establishes for the brands, retailers, influencers and affiliates that TikTok Shop refers to MARKET.live.

The partnership also contemplates the use of MARKET.live studios as TikTok “Sample Centers” where TikTok creators will have access to product samples for use in their TikTok Shop videos produced at MARKET.live studios. In addition to the compensation referenced above, TikTok will compensate MARKET.live directly for the attainment of certain pre-established performance goals and objectives agreed-to between the parties.
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LOL. Items a, b, c and e are likely zero or close to it. The anticipated revenues from TikTok are a joke.

Verb's entire business model has been flipped on end. Not long ago Rory was crowing about how Market.live was going to be the leading platform for sellers to hawk their wares. Verb was going to get a piece of that action in the form of commissions.

Now, Market.live has been shuttered and Verb is using the TikTok platform to generate revenue, paying a commission to TikTok.

The notion that Verb (or Market) is a valued TikTok Shop partner seems to be a bunch of B.S. Here's a link to the TikTop Shop Partner list. Hundreds of companies are shown. Verb/Market isn't there. https://partners.tiktok.com/directory/pc/en?rid=x9jhh6rczur

The $ 37k in revenue for the quarter and $ 6k in gross profit is a somewhat respectable showing for someone's side hustle. For a NASDAQ listed company that has dozens of employees, has $ 2.1 million in quarterly G&A expenses and pays its CEO almost $ 1 million a year, it's a travesty.