Creatd, Inc. Announces Revenue Guidance and Updates Upcoming Milestones

NEW YORK, April 10, 2024

Financial highlights include:

• The Company significantly reduced its cost of revenue to $1 million from $6 million in the previous year, achieving an 83% decrease.
• Creatd successfully decreased its operating expenses 63% to $8.6 million, down from $23.5 million in 2022, after adjusting for stock-based compensation.
• The Company experienced a historic improvement in gross margins, turning positive to $900K in 2023 from a negative $1.3 million in 2022.
• The net cash used in operating activities was significantly reduced to $3.4 million in 2023, marking a 131% decrease from $16.6 million in 2022.

Chairman and CEO Jeremy Frommer shared insights, stating, "First and foremost, I want to apologize for the delayed financial filings. Unfortunately, our ambitious timeline outweighs available resources and it is important to meticulously prepare prior to any attempt at an uplisting to a national exchange. We anticipate the release of our 10-K report in mid-May 2024, promptly followed by Q1 financial filings. The necessary delay is a direct result of our in-depth audit process, aimed at fortifying Creatd's balance sheet. This step underscores our dedication to transparency and maintaining a robust financial foundation. Despite the challenges presented by the current economic climate, I am extremely encouraged by our performance and the resilience we have demonstrated."

Frommer added, "Looking ahead, our focus will pivot to strategic acquisitions, enhancing net equity, bolstering our cash reserves, and achieving what I have said before uplisting to a national exchange. These initiatives are critical for our continued success in the upcoming year. I extend my deepest gratitude to our investors for their steadfast support. We eagerly anticipate discussing our progress and outlook in a forthcoming conference call later this month."

Forward Looking Statements

This statement includes forward-looking statements, which are based on current expectations, beliefs, and assumptions about future events and are subject to uncertainties and risks that could cause actual results to differ materially. These statements often contain terms like "expected," "anticipated," and "estimated." Factors influencing future outcomes are unpredictable and may emerge over time. We do not commit to updating any forward-looking statement post its publication date. Our SEC filings provide further details and risk disclosures.

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