Achievement of third quarter net sales $1.8 millionrepresenting a 90% increase compared to the second quarter of 2021
LOS ANGELES, November 10, 2021 /PRNewswire/ — Clubhouse Media Group, Inc. (OTCMKTS: CMGR) (“Clubhouse Media”), an influencer-based social media company and digital talent management agency, today announced financial results for the third quarter of 2021.
“Clubhouse Media’s momentum continues to build,” said Dmitry Kaplun, CFO of Clubhouse Media. “In the third quarter, net sales nearly doubled from the prior quarter as we continue to add new brands to our customer base. We also signed numerous deals with new influencers during the quarter. We remain focused on continued revenue growth. while continuing to invest in the business.”
“The development of our Magiclytics software and the HoneyDrip platform is also progressing. Magiclytics is a predictive software that allows brands to predict their ROI through influencer spend. We believe this will be a very useful tool that will support the growth of We plan to launch Magiclytics in the first half of 2022. HoneyDrip, a digital space for creators to share exclusive photo and video content directly with subscribers launched in September We’ve had good traction and a positive response since we started to offer HoneyDrip’s subscription service after the end of the quarter, we closed a $15 million equity line. With the momentum we have built and the necessary capital in place to execute our strategic plans, we are confident in Clubhouse Media’s prospects,” Mr. Kaplun concluded.
Amir Ben YohananCEO of Clubhouse Media, added, “Overall, we are pleased with the third quarter results and expect to accomplish much more in the future. The addition of Dmitry Kaplun to the management team has strengthened our financial structure and our processes. Additionally, working with Reiman Agency has helped us achieve record sales as we grow our digital agency business.”
Third quarter 2021 financial results
Net income achieved $1,768,677 for the three months ended September 30, 2021compared to the net turnover of $217,372 for the three months ended September 30, 2020. The 8-fold increase is due to the significant growth in agreements with brands and agencies over the past year. The recent partnership with The Reiman Agency also contributed to the growth. Net sales increased by 90% compared to the $929,962 reported for the quarter ended June 30th2021.
Operating expenses for the three months ended September 30, 2021 were $3,382,248compared to $772,186 for the three months ended September 30, 2020. The increase in operating expenses results from the start of operations of Clubhouse Media since 2020 and expenses related to the expansion of operations, salary expenses and professional fees incurred as a public company.
Non-cash operating expenses for the three months ended September 30, 2021 were $1,275,505including stock-based compensation for $1,266,991compared to $44,340 non-cash operating expenses for the three months ended September 302020.
Other expenses for the three months ended September 30, 2021 were $2,321,057 compared to $29,974 for the three months ended September 30, 2020. This included interest charges of $2,655,253which was mainly composed of non-cash interest and offset by the change in the liability derived from the fair value of ($361,904).
Net loss for the three months ended September 30, 2021 has been $5,401,961compared to $685,762 for the three months ended September 30, 2020.
Nine month period ended September 30, 2021 Financial results
The net income was $3,222,015 for the nine months ended September 30, 2021compared to the net turnover of $312,906 for the period of January 2, 2020 (creation) to September 30, 2020.
Operating expenses for the nine months ended September 30, 2021 were $12,780,575compared to $1,746,298 for the period of January 2, 2020 (creation) to September 30, 2020.
Net loss for the nine months ended September 30, 2021 has been $18,510,882compared to $1,668,971 for the period of January 2, 2020 (creation) to September 30, 2020.
About Club House Media
Clubhouse Media represents the future of influencer media and marketing, with a global network of professionally managed content houses, each with its own brand, cohort of influencers and production capabilities. Clubhouse Media offers management, production and trading services to its hand-picked influencers, a management division for individual influencer clients, and an investment arm for joint ventures and acquisitions for businesses in the media space. social media influencers.
Follow Clubhouse Media on Twitter: https://twitter.com/ClubhouseCMGR.
This press release contains “forward-looking statements”. Forward-looking statements may also be included in other publicly available materials released by Clubhouse Media and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans regarding our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate”, “intend”, “plan”, “aim”, “seek”, “believe”, “project”, “estimate”, “seek”. expect”, “strategy”, “future”, “probable”, “could”, “should”, “should”, “could”, “should” and other words of similar meaning in the context of a discussion of future operational or financial performance.
Examples of forward-looking statements include, but are not limited to, statements relating to future sales, earnings, cash flow, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause actual results and financial condition of Clubhouse Media to differ materially from those expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, among others, such as, but not limited to, economic conditions, changes in laws or regulations, demand for Clubhouse Media’s products and services, the effects of competition and other factors which could cause actual results to differ. substantially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this press release should be considered in light of these factors. We assume no obligation to update any forward-looking statements contained in this press release.
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SOURCEClubhouse Media Group, Inc.