Creatd Inc.

Good afternoon, everybody. Thanks for joining. I'm going to get us started here in about a minute. So I figured if you don't come today's call without a question for me, I'm not 100% sure why you're here. You have to have thought of some question or some piece of knowledge you're trying to gain from joining an investor call like this. I try to think about these calls more as Q&A opportunities than they are opportunities for me to speak too much. I wrote down a few thoughts. Often we talk about inflection points. If I look back over the last 10 years, I'm sure I've written many a letter as a CEO and as a chairman about an inflection point. And the truth is, is that in the micro-cap and the small-cap world, the entire journey is defined by a series of inflection points because it's so much about survival in the beginning. It's not as much as people think, oh, I have a great product, I have a great team. It's about how you deal with a lot of rough times getting something off the ground and And all entrepreneurs know this, and all the best ones have gone through it. Shareholders in this space in the public markets, which let's not call them something that they're not. They are public markets, but they behave like private markets. First of all, any investor who invests in the small-cap entrepreneurial world and is looking – for short-term gain is in the wrong space. This is like the private equity market. It's a six- to ten-year holding period. And if it's a score, it's a big score. So this is really about – You know, in our world, it's really about surviving, particularly when there is very little... There's very little clear paths. It's a space filled with obstacles. Many of the shareholders on the call today are from an acquisition we did recently with Flight, previously named Fluber. And really, when you look at that acquisition, that was a win-win for both sides. That's the kind of, if you're a shareholder and you're in a company, for instance, that's entrepreneurial-minded like Fluber was, looking to IPO itself, and along comes an opportunity for a company to purchase it that's on its way to that IPO, that's an inflection point. Now, When you're a shareholder in this space, you're looking for something real, something transformative, a big score. And that six to 10 year waiting period has to be rewarded with the proverbial 10 bagger. But there really is a deeper truth that drives both companies and investors forward. And that is creating, or in our case, recreating or being part of the future. And in an age of radical transparency, I thought we'd get right to the point of the call, which is the future. What do you want from it? And what do we want from it? You want to be able to have tradable liquid shares in a company that I hope you're invested in overtime that will make the time invested worth the value earned at the end of it. And so, when I look at what I want, I want to be able to be rewarded for providing you with that opportunity. I would like to be able to run a company that competes in the public markets, makes money in the public markets and trades at a significant premium because of the quality of its team, its earnings, its product and its entire narrative. In our case, that narrative has changed recently. and that's because economic cycles change rapidly. Not just that they change rapidly in terms of the scope of the change, but they change rapidly in terms of the time between business cycles today. Utilizing a publicly traded entity to buy or build private entities to create that arbitrage of value It's something that people have chased for hundreds and hundreds of years of modern capitalism. I think that when we look at created and what it's gone through the past, I would say, six months since the acquisition of flight, it has been to set us up to deliver on that value. How we're going to deliver on that value? is by racing for a listing on a national exchange. And I hope that when we get to the national exchange, rather than find the reward of management to be sellers, my goal is hopefully to have turned many of you into buyers. And with that, I would say again, what you want, I understand. That's the role of the CEO. And we are in a small company where I do the unusual thing of talking directly and transparently to my shareholders. Many of you I've spoken to directly over the phone. Many people are uncomfortable with this kind of radical transparency that I practice. I don't know any other way of doing it. And so for me, I know what you want. I hope that you know what I want. And in it, you trust that you'll put your money into an investment that I will take seriously and work to create the return on that investment that you initially made in either my company or flight. With that said, I don't want to discuss things that I've already put in the press release. I'd like to talk about any questions that you may have regarding the earnings, regarding the revenues, regarding the uplisting, regarding getting liquidity in the stock. Any questions that you have, I'd love for you to just ask the question, whether it's through the chat or raising your hand, and one of us will see it and answer your question. So who's going to ask the first question? Okay, I see one question. What's the question? Aya, do you have the ability to? Yeah.

Here I see Michael has raised his hand.

Michael, how are you? Michael?

Can you hear me? Now I can hear you. This is Steve Cohen. Mike, are you there? Yeah, I'll go first if you can hear Mike. Okay, so I'm Steve Cohen and I missed the very first part But is your goal to raise more money from the investors in order to get to the different offering? Is that your ultimate goal? Because I watch the stock and I watch the price and I've seen it come down. And I don't know if it's being delisted or not. But what's your goal for getting it on a different exchange?

uh thanks for the question uh that's again uh as i said it's it's what you guys want to hear is is the the plan for that there's no plan for me to raise uh any capital in the near term we have done all the raising we've needed to do and we will now uh apply to a national exchange You know, I don't like to say which exchange until we actually do it. But, I mean, as a side note here, the very nature of the NASDAQ makes it more susceptible to the thing that I didn't understand when we first started trading on the NASDAQ. Remember, Steve, I've gone through this process before. The stock was up on the NASDAQ originally. Now, I've been CEO throughout that period, and what I learned was if you think that you're going to get an underwriting done to get your stock up to a national exchange and avoid the toxicity that comes along with it, it's almost an impossible feat. So what we decided to do Because to have raised enough cash over the last year such that we've increased our net equity, we've increased our shareholder base, we've increased our market cap, and now we've increased our cash, we can apply to the exchange of our choice and not have to do a traditional underwriting. We're far from being delisted, man. We were delisted. We were kicked off the NASDAQ, kicked down to the OTC, kicked down to the pink sheets. all because of a series of unfortunate events in a very difficult time in this environment, this small-cap entrepreneurial space. But far from being delisted, we're getting ready to apply to a national exchange and doing it in a way that others don't try to get it done. And I think that's one of the most important things that I'm trying to articulate, that What we're going to attempt to do is list to a national exchange without the traditional underwriting, without raising additional cash from here, because we have already raised the cash. Any other questions around that or anything else I'd love to answer? Steve, did that answer that question for you? Can you still hear me?

I sure can. How do you go from pink sheets to the NASDAQ? In other words, so we raised revenue. What are we going to do? I'm not familiar. Is it a new listing? Is it a public offering? It's what?

Wealth. I mean, it's an application. At both the New York and the NASDAQ, there's a listing group that is there to work with entrepreneurial, that's their job, getting entrepreneurial companies listed on the exchanges. Now, you have to hit certain criteria. Right. One of the toughest criteria that microcap and small cap stocks face is hitting the net equity and maintaining the net equity threshold. And Sure enough, that's why we lost our standing on the NASDAQ many years ago. And so we already today, because of a lot of hard work by a lot of good people, we've been able to rebuild our balance sheet such that we've got nearly $10 million in positive net equity. And so when we uplist to the exchange, we've already got the cash needed. And to do that, you need to have approximately, approximately, whatever your burn is, you have to have approximately 15 months of that value in your coffers, cash-wise. Then you have to have over 400 shareholders, of which we have. That's good. Then you have to have a minimum amount of shares in your float of a million shares. And then finally you have to have a market cap of approximately 15 million of the float The float cannot include my shares or my partner's shares. That one is a little tougher to hit. Every penny up is a penny closer to that number. But, again, there are multiple – it's like getting listed on a national exchange. It's like a Rubik's Cube. There's auditors, there's, as I just articulated, there are qualifications, there are conversations that are subjective about your business model with the listing groups at the top of the exchange. Then you're assigned an agent to look upon your company and turn you inside out and analyze you. When we all look at reality of this space and the people who are invested in our company when it's one of your first investments in sort of this small cap arena, I empathize. I particularly empathize with the horrible two or three years we've had. Believe me, it's done much more damage to me than you. But the truth is that in the end, the only way to a national exchange is through months and months of work and focus by an expert team. There's no kind of shortcuts. But if you make it, and if you do it the way we're trying to do it, then you're the one in a thousand shot, and it really is a one in a thousand shot, right? On the OTCQB alone, there's approximately 1,200 companies. Now, that's where we are today on the OTCQB. On the New York Stock Exchange, I don't know, maybe 3,000. I just don't know these days how many are on it. Of the CEOs on the OTCQB, of the 1,200 companies, I wouldn't be surprised if less than 10% are qualified to run a national exchange company. It's kind of like race car driving, right, Steve? It's like you can't get into a car that you can't drive. Right. So, like, how we get up to the exchange, man, I know, like, I, again, particularly for the investors who were in Fluber and had been looking for that IPO moment – The problem is that the world changed so significantly in this space when the capital markets dried up that if people didn't do the kind of deals we did in that moment to generate the type of net equity you need to qualify for an uplisting to a national exchange, then your company is dead. And so after the OTCQB, there's about 10,000 stocks on the pink sheets, of which there's probably only 10% of them, less than that, I would say, probably like 1% of them, 2% of them, who are qualified to get their company off the pink sheets up to the OTCQB. And then once you're on the New York, the ability to take your company, the first step everybody talks about is a $100 million company. And that's for another question. Let me answer some other questions, please.

Andrew's raising his hand.

I'd like to speak to Andrew. Hey, Jim. How are you doing? Andrew, how long have you been invested in following my story? About five years. Holy fucking hell.

Yeah. Actually, I invested when it used to be about $3.00.

and i never sold when it had it had like 10 bucks or 980 and i've been stuck since then bag holding i wish i i you know what i i really wish all of you had been able to sell that price like the amount like i feel for you particularly when i see names in our noble list you know when you run a microcap stock people think It's just their impression of you is totally different than what it really is, although I'm sure there are a lot of guys out there who are just bad guys trying to manipulate the system. But when you're not, which I am not, and you go through this journey and you see shareholders like you on for five years, you know, it's like I was looking at the NOBO list earlier, and we have like 11,000 shareholders, and a lot of them have, you know, only 200, 300, 500 shares left. And so many of them are familiar to me, and I really – that's why I get on the call. That's why I try to do it differently than everybody else. Like I – why the hell else? It's you guys that help us try to build a dream, right? So I appreciate that, Andrew.

We appreciate everything you've been doing. Now, as you've seen, a lot of my comments, I've always been and will always be worried about our supply. especially after the last one that hit us, you know, it kind of secured us up really bad. How likely it is for us to have another one? And if we do have another one, what would it be? I know the last one was 500 to 1, I believe, if I'm not mistaken.

What would it be? That was the survival reverse, so to speak. It was either... that or wind up in the gray markets, which would have been the end to everything. You know, I often think about that. You know, I have a few stocks that I invest in in the space, like if I think it's interesting. And obviously, I'm always, for some fucking reason, averaging down as opposed to averaging up. But particularly when it comes to reverse split for survival stocks, the only thing an investor really can do is either sell or double down. And I think that that was a really tough moment for all of us and for all of the shareholders. As far as the future, Andrew, look, right now you have to trade to qualify for the New York. You have to trade – for 20 trading days in a row, 30 calendar days, above $3. Now, there are a lot of theories, obviously, about reverse splits. On the last reverse split, when we got wiped, we had to do small financing. Today, we have to do no financing. So, of reverse splits where you don't have to do a financing, you're going to be better off than the ones where you do do a financing or a toxic structured product. The New York, for some reason, and the NASDAQ for its reasons, and the other national exchanges, have chosen to use static numbers as opposed to derivative variable numbers for their listing standards. What do I mean by that? The $3 number is a random number. It has no quantitative meaning, no different than if it was $2.50, $4, $2. And so it's a randomly chosen number. No different than needing 400 shareholders. And remember, if you split 10 to 1 and you have 1,000 shareholders that prior to it had the qualified amount of round lot shares, if you split too large, too heavy, you're going to reduce your round lot shareholders and then you're going to have to attract new shareholders to split. So you have to be able to balance the needs of all these things when deciding on a split. So what does all that mean in answer to your question? First, it means there isn't really a simple answer that you're looking for. If for some reason the stock is still here as we get closer to the moment of listing on the New York, like the application where the gun goes off and the 20-day count begins, I will reverse the stock. if we are here. Not because I want to reverse it, but I have no choice. Now, look, we could sit and debate theories about whether or not between now and then the stock gets closer to $3. If it does, I'm less likely to split. Obviously, I'd love to see a self-fulfilling prophecy take place in the stock. It's not like it is a impossibility. It is just a lower probability. Now, if someone bought the stock trading at 50 cents, today traded whatever, 20,000 shares, I didn't quite catch it before the call. But you're talking about, what, $10,000. So if one does the math, you could make an argument that it shouldn't be that difficult to create buying power that would take this stock to that $3 level. And again, I'm a believer that if it gets to $2, it gets to $3. You know, that's just the nature of these type of trending stocks. But if it stays at $0.50 and we want to go to the New York, then sure, we have no choice but to reverse and But remember, that's not reversing so that we can stay on the NASDAQ or survive another day somewhere. It's reversing leaving a lot of cash on our balance sheet and a New York stock without any debt. Like when we list on the New York, we won't have any debt. No more. No payables. a beautiful pure play with a fleet that we're building, technology that's driving revenues at ridiculous growth rates these days, higher than I ever expected. So, like, you know, the reversal come if it has to come is the answer, Andrew. And I say everybody who fears it, what can i say there's there's only one way up to the new york you have to be over three dollars and to stay on the otcqb makes no sense what say you andrew okay i mean that doesn't answer my question um i appreciate it man thank you you're welcome next we have lee who's had his hand raised sorry about taking so long lee

Yeah, just curious about what the proposed valuation looks like or that the board is interested in for it going public. Obviously, there's been $7 million U.S. raised from my last call with Mark. Yeah, yeah. That's Matt. So taking into account capital, obviously prerequisite for Uplist.

Yeah, yeah.

And proposed valuation, just curious on structure.

Yeah. Look, on a comp basis, taking a look at our growth rate and our, you know, just looking at a discounted cash flow for our company, I can easily make an argument that its peers trade in the $150 to $200 million market cap. Like these kind of growing airlines that have what we have, which I think is a little bit of a secret sauce. I don't think you can... triple revenues the way we have and lower operating costs without having a little bit of a sauce. But I think, you know, when we look at the company, we look to validate ourselves at about $150 to $200 million. Now, you know, where it trades in the micro-cap space, Lee, I don't, I never have, nor will I ever be convinced that a price of a stock on the OTCQB is indicative of anything but a bunch of moods people are in on a particular day and how algorithms behave in an era of rapid trading in this space by a few market makers. And so, like, getting the hell off of the OTCQB is when we'll know the truth of what the value is. But that's my perception of value from the deep analysis that I've done, and I could get pretty geeked out over it with you if you wanted to.

Well, sorry, so the $7 million that was obviously raised recently, at what valuation was that money raised at?

Around 50, it was 50 cents, could be higher, depends sort of what price we up this stat, but at 50 cents.

Okay, so you're proposing that you think you'll have a go-to market structure of approximately 75 million shares outstanding, is that correct?

Depends obviously on the reverse, but you're not that far off.

Okay, and the comps that you're referring to that sit in that 150 to 200 million mark,

um which ones are those by um i mean you could reference you could look at uh a number of private ones but i think taking a look at where fly you know fly exclusive uh um where some of the um uh drone companies that are involved in the ev toll space uh that we work with so like you'd have to you have to look at sort of those type of businesses you'd look where where parts of the blade business have sold uh there are a couple of interesting um uh i can't remember off the top my head the transportation ones that specialize in organ transplants that i think are very interesting I mean, there's, you know, there's multiple ways to look at it on a comp basis. That's the interesting thing about the company, like the tech alone, you know, how much is an Avanode worth and how much – you familiar with Avanode, Lee?

No, I'm not.

Avanode is like what I would consider the back-end system of the charter business where that most companies use. Avanodes, you know, tech, my goodness, I don't really know how much they're worth off the top of my head, but it wouldn't surprise me if it's a half a billion to a billion. I mean, at least, I mean, the company develops. And then there's like 10 other interesting tech platforms around the space. Remember, man, I'm not here to run an airline. That's one part of it. I'm here to build tech around the space.

Thanks.

Okay.

Quite welcome, Lee. Thank you for joining the call tonight. Anybody, any other questions?

Yeah. We have an anonymous attendee asked, how much convertible debt is currently on the books?

Well, there's – the money that we've raised will convert on the up list, which – and that – as I've said, was priced at 50 cents, which is all publicly disclosed. So my guess is, you know, that my guess, again, is that you'd have at the time of uplisting, it's not my guess, my structure or the plan is that you'd have zero debt. That's when the previous individual was discussing his extrapolation of $75 million. There would be no convertible debt at that point. That assumes the $7 million and the $0.50 conversion. Does that help, Anonymous? All right.

I don't see any other questions.

Wonderful. Well, I'm glad we had a chance to do this call. Anytime anybody does have a question, best way to do it is to join. I'm telling you, just join the Slack channel that I often send out emails to join because that's where you really understand what's happening. I've chosen to take a very transparent path with everybody. and that is really the way to hear the journey firsthand. I'm not really into using the other social media platforms at this point, and I think that anybody who really is invested in the company can take the time to just join that Slack and check in every so often. If you're not familiar with Slack, send our IR group a request, and we'll get you hooked up so that you can follow the story.

I've also added the link to join our Slack in the chat.

Thank you so much, Aya. And thank you, everybody, for joining. Have a good night.