Digital Brands Group Files 10-K/A Amendment

TL;DR

DBGI filed a 10-K/A for FY23, check for updated financials.

AI Summary

Digital Brands Group, Inc. filed a 10-K/A amendment on June 3, 2024, for the fiscal year ending December 31, 2023. The filing provides updated financial information and disclosures for the company, which operates in the retail apparel and accessory stores sector.

Why It Matters

This amendment provides updated financial reporting for Digital Brands Group, Inc., which is crucial for investors and stakeholders to assess the company's performance and financial health.

Risk Assessment

Risk Level: medium — As a 10-K/A filing, it indicates a prior filing may have had issues or requires updates, suggesting potential complexities or changes in the company's financial reporting.

Key Numbers

• 20231231 — Fiscal Year End (The filing pertains to the financial performance up to this date.)
• 20240603 — Filing Date (This is the date the amended filing was submitted to the SEC.)

Key Players & Entities

• Digital Brands Group, Inc. (company) — Filer
• 0001493152-24-022425 (filing_id) — Accession Number
• 20231231 (date) — Conformed Period of Report
• 20240603 (date) — Filed as of Date
• 4700 S. BOYLE AVE (address) — Business Address
• VERNON (city) — Business Address City
• CA (state) — Business Address State
• 90058 (zip_code) — Business Address Zip
• Denim LA, Inc. (company) — Former Company Name

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share DBGI The Nasdaq Stock Mar
• $229,000 — ed to make an aggregate cash payment of $229,000 to D. Jones Tailored Collection, Ltd. (
• $14.0 million — ing impacts: (i) revenue decreased from $14.0 million to $10.3 million, (ii) gross profit dec
• $10.3 m — revenue decreased from $14.0 million to $10.3 million, (ii) gross profit decreased from
• $5.9 million — llion, (ii) gross profit decreased from $5.9 million to $3.5 million, (iii) operating expens
• $3.5 m — s profit decreased from $5.9 million to $3.5 million, (iii) operating expenses decreas
• $38.0 million — (iii) operating expenses decreased from $38.0 million to $24.8 million, (iv) loss from contin
• $24.8 m — xpenses decreased from $38.0 million to $24.8 million, (iv) loss from continuing operat
• $2.1 m — rations decreased from $38.0 million to $2.1 million, and (v) loss from discontinued o
• $0.0 million — discontinued operations increased from $0.0 million to $10.9 million. Net loss of $38.0 mil
• $10.9 million — erations increased from $0.0 million to $10.9 million. Net loss of $38.0 million was unaffect
• $124,000 — s since November 2023 for approximately $124,000 in total. The licensee has asked to add
• $1.5 million — e. We expect the store to generate over $1.5 million in annual revenue and over $500,000 in
• $500,000 — $1.5 million in annual revenue and over $500,000 in free cash flow. We have been invol
• $9.1 m — the offering does not exceed the sum of $9.1 million, less the value of any shares of

Filing Documents

• form10-ka.htm (10-K/A) — 1886KB
• ex4-29.htm (EX-4.29) — 144KB
• ex23-1.htm (EX-23.1) — 4KB
• ex23-2.htm (EX-23.2) — 5KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 18KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 8KB
• ex23-2_001.jpg (GRAPHIC) — 12KB
• ex23-2_002.jpg (GRAPHIC) — 4KB
• 0001493152-24-022425.txt ( ) — 11124KB
• dbgi-20231231.xsd (EX-101.SCH) — 92KB
• dbgi-20231231_cal.xml (EX-101.CAL) — 88KB
• dbgi-20231231_def.xml (EX-101.DEF) — 466KB
• dbgi-20231231_lab.xml (EX-101.LAB) — 686KB
• dbgi-20231231_pre.xml (EX-101.PRE) — 564KB
• form10-ka_htm.xml (XML) — 1842KB

Business

Business Overview Recent Developments We entered into a license deal for Bailey 44 in January 2023 that is paid quarterly based on the results. We have received two license payouts since November 2023 for approximately $124,000 in total. The licensee has asked to add additional categories to their current offering, which we agreed to. We entered into a retail store sublease for approximately 3.5 years at the Simon Premium Outlet in Allen, TX, a suburb of Dallas. We plan to open the store in April 2024. We expect the store to generate meaningful cash flow as we already have excess product that we can sell, which means we will not have to use cash to create inventory for sale. We expect the store to generate over $1.5 million in annual revenue and over $500,000 in free cash flow. We have been involved in a dispute with the former owners of Haper & Jones, LLC ("H&J") regarding our obligation to "true up" their ownership interest in our company further to that membership interest purchase agreement dated May 10, 2021 whereby we acquired all of the outstanding membership interests of H&J (as amended, the "H&J Purchase Agreement"). Further to the H&J Purchase Agreement, we agreed that if, at May 18, 2022, the one year anniversary of the closing date of our initial public offering, the product of the number of shares of our common stock issued at the closing of such acquisition multiplied by the average closing price per share of our shares of common stock as quoted on the NasdaqCM for the thirty (30) day trading period immediately preceding such date plus the gross proceeds, if any, of shares of our stock issued to such sellers and sold by them during the one year period from the closing date of the offering does not exceed the sum of $9.1 million, less the value of any shares of common stock cancelled further to any indemnification claims or post-closing adjustments under the H&J Purchase Agreement, then we shall issue to the subject sellers an additional aggrega

View Full Filing

View this 10-K/A filing on SEC EDGAR