Creatd, Inc. (CRTD) Earnings Call Transcript & Summary

Welcome, everyone. Thank you for joining today's space for an important presentation. The format that I'm going to try to stick to and one in which we will do for all future communication spaces such as this with shareholders, investors, creators and generally interested people will be one in which I will open up with my general remarks on the company and our strategic vision, followed by my answering the top 3 or 4 questions that we have received in DMs over and over again this past week leading up to today's call. And then I will open up the mic to any question from anyone as much as I can take. And then if there are no more questions, we'll move back to some extra ones that were part of the DM questions that we've taken in previously. So let's get going. It's no secret that the shifting financial landscape is demanding forward thinkers and adaptive leadership. It is what I call a new era of risk taking, and it's one that will look very different than the last. It will be filled with transparency from Blockchain and equally important financing alternatives to an upside down capital markets that self-perpetuates failure in small and microcap companies. Creatd, Inc., the holding company whose flagship subsidiary is Vocal Inc. beyond just reporting second quarter 2023 numbers is signaling a new direction to its investor community. We're pivoting. We're strategizing and we're designing a new future for the company, one where our assets are not synthetically depressed and are recognized for the genuine value they hold. We're looking for long-term investors and not the residual fast money from an era of pumps and dumps that is coming to an end. Vocal Inc., Creatd subsidiary is a social publishing platform and has become a true powerhouse in its own right. So we're positioning it to independently raise capital from the Creatd holding company. And with an intrinsic value that we estimate for Vocal Inc. to be between $60 million and $100 million. Now to offer some perspective on that, competitors like Medium and Substack have comparable revenues and are literally being valued at $0.5 billion or more in the private market. But before we go into our strategic plan for Creatd and how we intend to increase shareholder value, let's talk about Creatd second quarter earnings directly. As we reflect on the first half of 2023, Vocal's accomplishments underscore our drive and determination in the creator economy. Our gross quarterly revenues of $800,000 signal an actual upward growth trajectory for the Vocal platform in particular. More comprehensively, the trailing 12-month GAAP adjusted revenues tallied at a near impressive $4 million. Now despite witnessing a decline in quarterly revenues at the holding company, the public entity Creatd, Inc., it's essential to understand that this is part of a strategy to leverage the most profitable segments of our business and close down the unprofitable ones. I'm very comfortable sacrificing the top line a bit for significant bottom line improvements and then privatize the assets and begin to grow new and more appropriate revenues. Our strategic decision, including reducing headcount at both the performing and nonperforming subsidiaries has resulted in a very significant 56% reduction in payroll. We project even more cost savings from payroll reduction in quarters ahead. And as we move within a few months of cash flow breakeven on a forward basis for Vocal Inc., the subsidiary and its flagship technology platform Vocal, we're very excited. By optimizing our operations, we've achieved a 60% reduction in our legal, accounting and consulting fees. Now on a pure comparative basis, the revenues of our core Vocal tech platform are seeing consistent patterns of accelerated growth. The revenues we left behind from businesses we shelved were simply too expensive to maintain. And like other tech companies in our space, we're focused only on core revenue growth as we face tough headwinds in the market. Our strategy is guided by a clear principle to pursue business, we know we can scale. We follow the data and the data says and has always said that the key to our success lies in the creator. As more of our creators become investors, it is important for us to hold these spaces to open a direct line of communication between creators, investors, creator investors and the company. Now before we go to Q&A, I want to address the key questions that so many of you have DM'd me. A question that not a day goes by that I don't encounter as we continue to fight the war of attrition in the public market with our stock and rightfully so, I get asked this question, is Jeremy what is your plan to stop dilution and increase shareholder value? I'm going to try to give a very straightforward answer, and then I will elaborate on it. The basic answer is we intend to bring a significant portion of our portfolio under a private umbrella that can raise capital separately as its own entity and you don't have to be a Creatd shareholder to buy a piece of Vocal Inc. This will open up the funding market for the technology platform to our 2 million creators and their audiences as well as the growing investor community around Reg CFs and Reg As. And that's the beauty of the REG CF. It creates that direct line I mentioned earlier. It's a transparent connection between the investor community and management without the disruption and obstacles of middlemen and toxic lenders. Now further to the original question, how can we control dilution? Well controlling the dilution and increasing the value remains a crucial matter to us. We're the largest investors in our own company, the people that are part of this company, and it is at the heart of our strategy and remains a top priority in our decision-making. A company's lifeblood has classically been its ability to tap legacy capital markets to drive growth. But that just does not work anymore. Those markets are broken. Look at BuzzFeed, trading at less than $0.50 about to face the same reversal dilemma so many stocks do or look at the great WeWork trading at $0.20 and recently named the Meme stock or even Vimeo, a tremendous piece of video distribution technology that was spun out of Barry Diller's IAC, it faces the same struggles we do. How can we create alternative financing services for these great tech companies that can power growth and innovation without destroying their common equity. And that is how we're doing it. We're employing a strategy that shifts away from financing that hinges on diluting the public equity of Creatd, the holding company. This isn't a decision made lightly. It's the combination of a great deal of analysis and so the spotlight now turns to Vocal Inc., Creatd flagship social publishing platform subsidiary. Our road map for Vocal Inc. is crystal clear: secure robust $5 million via Reg CF, participating preferred securities offering as well as taking capital directly from strategic partners. And this is not just a fundraising exercise. It's a strategic move where we aim to eventually spin off Vocal and maintain an ownership of slightly under 50% at the holding company level, such that Vocal Inc. can become its own independently traded equity and Creatd, Inc. can become what it was initially intended to be, which was a holding company utilizing the combined resources of multiple companies within its portfolio. The next question that we must address then is if we're correct and Reg CF in the IPO in the Vocal are correct, how will that elevate the value of Creatd Inc.'s publicly traded stock? When we look at Creatd stock or even the company, bear in mind, Vocal Inc. is just 1 subsidiary that we plan to monetize by privatizing enough such that we can eventually spin it out as a separate publicly traded company. We plan to do the same thing with the OG Collection, Creatd Ventures and Orbit. Each of these subsidiaries boost unique assets, technologies and business strategies and are ready to maximize their value. In today's market, I have said this on multiple occasions. It is one of the most important points, I think, for all microcap and small-cap stocks to think about. The individual pieces of a business in today's market are of greater value than the sum of the whole in one company. Here's how Creatd, Inc. stock maximizes that value in real terms. Imagine a conservative valuation for the technology platform, Vocal of $50 million and taking in $5 million from a financing of Vocal Inc. That's less than 1/10 of the value of one of our comps Substack, which I hope some of you have heard, which recently raised $7.8 million via a Reg CF to its creator community at a $585 million pre-money valuation. They do similar revenues to Vocal. This would be the same story if you looked at other comps such as Medium and Wattpad. All of them $500 million-plus valuations in the private market. Taking a closer look, if we modestly value Creatd Ventures, our portfolio of 4 consumer packaged foods and beverages at $8 million, selling half of that would yield $4 million. Factoring the OG Collection, solid $12 million to $15 million valuation or Orbit, $3 million to $4 million valuation and these numbers start to add up. Essentially Creatd, Inc. could, in theory, take in well over $10 million in cash from the sale of assets, clean its balance sheet and still be left with a portfolio of material investments and holdings in multiple publicly traded companies verifiably valued at up to $60 million, a more genuine reflection of what the market cap should be. Creatd Inc's. stock without the burdens of the operational businesses and the clearing of $5 million in debt from its balance sheet could have a portfolio with that implied value of $60 million, far exceeding the current market value of $4 million and a trading price of $0.03. Like I said before, the sum of the individual parts of a company are now worth more than they are to the whole. We have a clear plan. Our threefold approach to increase shareholder value and prevent dilution includes wisely reorganizing our assets, moving to privatization when it's beneficial and strengthening our financial position. We aim not just to follow a path but to lead by example and break the toxic lending structures that have destroyed the entrepreneurial spirit of the micro and small cap public markets. Another frequently asked question I hear is, Jeremy, when is the OG dividend going to occur. We've been talking about it a long time. It takes a long time to get these things done when you've got so many other things you're also trying to do. But things are moving forward, and we will be putting out a separate press release soon to clarify the details, but I can give on this space a general understanding of what's happening. Our leadership team is now discussing a possible time line -- a probable time line for September or October to set a definitive record date that gives a clear view of our share count for the upcoming special dividend of the OG Collection, Inc. Shareholders will need to have a stake and ownership in Creatd, the holding company at least 2 days before the record date to qualify. After the record date, usually within 60 days, Creatd Inc's. shareholders will receive their OG Collection Inc. shares. Details about the exact distribution per share will be announced soon after the record date. These dividends will become initially restricted shares in the OG Collection. We will then begin a separate Reg CF for that entity's privatization raise. And then we will distribute over 50% of the OG Collection Inc. to the shareholders of the record date. And like Vocal, once Creatd owns less than 50% of the OG Collection, we would immediately look to list the OG Collection on a public exchange. Finally, after Vocal Inc. and OG Inc.'s initial corporate actions, we will have the blueprint for replicating and scaling this process. And this would include earlier, as I said, extending the model to our consumer product, e-commerce division Creatd Ventures. As well, we will consult other companies on the path forward through CEOBLOC. And CEOBLOC brings me to the next question that I hear. I find most often this question comes from the Twitter community, the X community. Jeremy, what is going on with the naked shorting and what are you doing with CEOBLOC? In the near future, we aim to unify 2 of our subsidiaries, CEOBLOC and Orbit, a social investor platform acquired by Creatd in 2022. By integrating CEOBLOC's activist leadership with the Orbit apps direct connection to the investor community, we're crafting a platform, an app that stands at the front of retail investor advocacy and transparency. That is my goal. This would be more than just the technology platform. It would aim to be a transformative movement decide -- designed to redefine the investment community for financial education and communicating ideas, all while pursuing a strategy of generating revenue and creating value for shareholders. By its very nature, the success of the strategies I have discussed in today's space, could define the path forward for thousands of other companies with great business models, but balance sheets filled with toxicity and a market where the traditional financing model is broken. To further elaborate, Reg CF, Reg A corporate actions of spin-offs and special dividends of legitimate subsidiaries from public companies will have the combined effect of generating value for shareholders and ultimately defeating and putting to rest the naked short selling problem. And that's how we expect to fight against the naked short sellers. Now at this time, I'm going to open up the call to questions. I haven't taken a look to see if there have been in the chat room or anybody would like to take the mic. But whatever questions you have, please either raise your hand, ask for the mic and my co-host will offer you the mic or there's just questions that I can continue with.

La Jolla requesting the mic.

Please. Hi La Jolla...

La Jolla International Fashion Film Festival.

Oh, the La Jolla International Fashion Film. I'm familiar with the La Jolla Fashion Film Festival. I'd love to hear. Are there any other questions?

Oh, good. Yes, you sound fabulous. I mean you sound like you really know what you're talking about, which gives me confidence. So....

So I appreciate that. I work real hard to try to be transparent to the investors. And as I've said on many occasions, I think the most important thing any CEO can do is try to educate their shareholders, tell them the truth, so that they're not influenced by a world of untruths. But thank you very much.

Yes. My quick question is, if you're a person that's not really into the technical aspects of equities and what you're talking about, would it be fair to say, it should -- it's a good idea just to hold on to the stock we have, do you know what I mean? I'm not going to just do anything, right? I just keep it.

Yes. Look, I have no idea why -- what I believe is there are retail sellers who are selling the stock at $0.035. And I know it's not this down here. It's not the naked shorting because you can tell if you're a trader and you know it. And it feels very desperate. Someone said to me at the end of the day, the other day that, that they sold enough shares to get them bus fare. Like it doesn't make sense when a company has been beaten to submission, but won't give up. It does not make sense to sell it there. That said, I can never -- I mean people need money to pay rent sometimes. That's the thing about retail investors, sometimes they're not structured as a portfolio and one position can become so severely damaging and I appreciate and I -- my heart goes out to them. But I think what an investor today should do is stick to their position, but the only place to add will be in the Reg CF, I mean you can buy the public stock, which I certainly recommend is very undervalued, but it will be super undervalued if we -- I mean, super like bionic undervalued, if we're successful with our Reg CF. And Reg CF, people can participate for $100, $500, $1,000, $5,000, $10,000. I have many friends, many family and many of our creators that are going to fund by taking an ownership stake in Vocal Inc. And now by doing that, that will allow me to clean up the balance sheet of the holding company, and it will allow me to be able to go pay back some of the debt, which will literally lead to an elevation in Creatd stock. It has to, meaning there's -- the only reason that Creatd stock goes down at this moment is because the market doesn't believe that you could gain -- and it's not just my stock, it's thousands of stocks, but the market rightfully so does not believe that the decade old way of financing this space can be done anymore. And it can't be. The horror stories I hear out there, it's terrible. I've never seen a more destructed market space than this market space in 32 years of business. So I appreciate the question. My answer would be hold on to your stock, wait for details on the Reg CF and I look forward to doing a space like this to exactly explain the Reg CF in more detail because by buying into the Reg CF that's what saves your position in the common stock. And it sounds more complex than it is. It just will take a lot of time for me to educate. John Shankman. John just let people on the call know, John is one of the smartest individuals I know when it comes to sort of the marketing and advertising world of the Internet. And I'm happy to have you have joined today, John.

Yes, yes. Thanks for sending out the e-mail, and I've always appreciated kind of along with what the La Jolla Film Festival is just saying, you're able to articulate things well, and I think you understand the mechanics of the equity market well. My question, honestly, I'm in this for publishing and obviously, the new version of publishing is creators. And I think that's where you guys are focusing. But I just wanted to get your take on ad tech lately. Obviously, the Trade Desk stock is doing pretty well. And what's your larger view on ad tech as an equity? And obviously, more specifically, how you're thinking about that at Creatd today?

Absolutely. It's always ironic. My partner and cofounder, Justin and I, who John knows as well, are always trying to stay on top of what we see happening in the space, right? And we literally have had this dialogue over the last couple of days. It's really amazing that it gets brought up like this. In the beginning, as you know, I was very -- and still I'm the biggest believer that the best way to absorb branded anything or particularly branded content advertising is through a long-form type of process that we do with Vocal. But that said, that type of communication for a brand is only one piece of the puzzle. And that brand has to take today, and it's not just that brand. Every company has to take its marketing at an omnichannel level approach. I happen to think between what we do, social media and programmatic advertising that together, it's what creates the magic sauce. And so you can't really not do any of them if you want to be successful today. And that led us when we talk specifically to Creatd, I was saying that I have a viewpoint as a guy who used to trade cable stocks in the back end of the 90s that programmatic advertising kind of has found the bottom and may even be troughing a bit because it's able to be done itself technology is advanced, such that both the aesthetics of it as well as the targeting is, yes, it can still be kind of in your face, but it's in your face more to the right people because the data has been able to be as refined as it has. And so I kind of look at the cable companies as an interesting way of looking at programmatic advertising and the roll-up of the cable companies that have occurred throughout the '90s and 2000s and always created what were very good revenues. And even today, I heard radio stations are coming back. But look, we've always been focused on our organic growth. So we see value in the future of attracting new creators via the combo of social content, social content marketing and obviously, the type of more direct programmatic advertising that you and many of your peers pursue. Does that kind of help answer how we see it, John?

Yes, it's great. I mean, yes, I think that does definitely answer it.

You're quite welcome.

J.R.?

I love J.R. Ewing. He always has a good question and on Twitter he is always very straight to the point and honest with his perceptions of our company. JR, what can I answer today? I think you're muted still. J.R. You are muted.

It's still connecting.

Still connecting. I see a couple of other very important people on this call today.

David Shavel.

Very good. David, nice to hear from you. I'm beginning to see success in this concept, Robby that we really are -- the shareholders and the investors and the creators are truly joining the call to get to the proper answers. I can anticipate some of David's.

David has a mic.

Wonderful. David, you have the mic. He still looks like he's muted on it.

There we go. Can you hear me?

I sure can, David. Thank you for joining today.

Yes. I was a little bit late, so I didn't catch a good chunk at the beginning. But you know me, I'm kind of a broken record. So I'd like to go back to a couple of questions ago where the gentleman asked your advice on current stockholders or for current stockholders. I have a similar question for current warrant holders. Any kind of insight -- I mean, obviously, the OG spin-off is not going to do any good for warrant holders. So I'm just -- I'd like some overview from you.

Well, I don't know that, that's the truth, meaning the thing about the OG spin-off is the finality of it has not been written in stone. And so I'll give you one scenario where I could see something like that, right? I could theoretically say to a warrant holder, look, I'm going to lower your warrant strike down to where it's much more attractive for you. And if you then are to be a participating investor in our Vocal Inc. Reg CF, I can award that warrant holder something specific for participation in it. That's the thing about a Reg CF, you can have different -- you can treat different people, not different people, different tier structures based on value and based on what their positions are. But I think my plan has always been with the warrant holders to figure out a way in which I can both lower those strikes because in the end, when the stock goes up, those people become a funding source for the company, which is the one time that it makes sense because the company takes some cash...

Okay. Obviously, I mean that would be wonderful. And clearly, you haven't come to any conclusions on that yet, but it's being considered, if I'm hearing you correctly to lower the price?

Yes, absolutely. I mean, look, across....

Jeremy, I can't hear anything.

You can't hear me. Can you hear me? Is -- Am I -- Can you guys hear me? So David, I think that's just specific to you that you can't hear me, but I'll reiterate the answer to the question. Thank you to you all for sort of letting me know you can hear me. It seems like David got maybe disconnected, but there is an ongoing plan to address any aspect of the cap structure, including the warrants that are out of the money. Because in the end, my objective is to have a shareholder base of long-term shareholders. And the warrant holders, if they're anything, they've demonstrated a tremendous patience because they've unfortunately been hurt by where the strike is. And so it is my -- it's not just that we're having discussions. It is my intention for the record to lower those warrant holder strikes and to create an opportunity that is, I know even now I can hear in my Head of Compliance and one of my most trusted finance people, she's thinking, is that possible? How can we do that? How can we create an offering that's specific to participation potentially in our Reg CF. But I would probably say that warrant holders like yourself and you're on my list, should know that I have you on my mind, I don't -- I'm always upfront with people. I am not going to abandon. I'm not going to abandon my stock at $0.03. I'm not going to abandon my shareholders. I am the biggest shareholder. I own a ton of warrants also, David. And so that's my intention with the warrants. J.R., are you back on and able to speak?

Yes, I apologize. I had a connection issue. So Jeremy, it's clear that you are -- have multiple plans in place and have been obviously working hard. And I also apologize if I missed this, I was having connection issues. What is the time line for the Reg CF? And what is the plan to -- what do you intend to use those funds for? Is it all to pay off debt or something.......

No. No. First of all, only one -- I mean the Reg CF can go up to $5 million and so my plan is to see, as I have mentioned, and I have a very good relationship with all my creditors, except the one really. But you always have one guy that's going to be difficult to deal with. But in the end, I have very good relationships with all of them, and they're very much akin to working out strategies where the majority of the capital raised goes into the Vocal platform and its development. And that over time, whether it's 30% or 35% of that money gets swept out to pay down the debt to clean up the balance sheet to elevate the stock. As far as timing, I mean -- I'm now going to have to immediately sit down with my Head of Compliance who I just mentioned so that I can immediately 8-K this, what I'm about to say. I'm expecting tomorrow morning to put out to -- I'm expecting to -- I'm going to have to be very careful as I see her watching me. I plan on launching the Reg CF tomorrow morning, and I plan on being the first person to go through the experience and buy stock by $5,000 of the preferred stock directly in our tech company tomorrow morning. Presuming that were the case J.R., then I would say, I'm going to put out a press release right after I see that it's successfully worked. And I will 8-K this conversation that articulated my intention of doing that tomorrow morning to test it. And then we're live with it. This is not something -- one of the things that happens J.R., I've learned is, I'll tell people something that we're planning, like even the OG, which we can take any questions about from anybody, but it's been such a crazy hard year to sit in management seat at these companies, I mean the thousands that have been just destroyed. And the truth is, is that it takes a while to put a plan in place. And when I first started getting more known as a retail CEO who communicates this way with their shareholders, I told you back in that day, someone said, like, it's a Twitter CEO, like that was a concept well now be ex-CEO, but that doesn't sound right either. But I would say we were going to do something, and it would just be like for me as an ex-institutional person, I'd be like, it takes 1 week for me to get my lawyer on the phone. So that's 1 week no matter what to get something done. And everybody would expect it to be done the next day. And so I have been as silent as I could be so that I would not overpromise and under deliver when it came to the Reg CF. So now I'm telling you, this is something that's tomorrow, a day away potentially from being real.

I was just looking for a rough time line. You didn't have to be that specific.

Well, I'm excited that I can be that specific. And I'm also a guy who will say it off the cuff when I see the real opportunity because I am happy, I'm excited about it. I mean, look, if we raise from creators, friends and family, J.R., if we raise a couple of hundred thousand dollars of the first -- the way Reg CF works is there's multiple stages of it. So like the first stage tomorrow is we can take in up to $125,000. And then -- $124,000 I'm being hand signaled by my other financial guy person. They're very important that I speak correctly on these things. You can bring in $124,000. And then from there, you go to about $1.24 million. And that -- so a lot of the first people in get to be in tomorrow and then -- starting tomorrow. And a lot of my friends and family will, and I'll tell everybody when it's up and live. And like I said, you can buy $100, you could buy $1,000, you could buy whatever you want. And there's tiers and the people who invest more, get bonus shares in the technology company, and it's a brand new investment. And you don't have to be a Creatd shareholder to invest in it. But extensively after the $1.24 million is raised, then we would open it up to a total of $5 million. And so from there, I can tell you that if we just raised the $125,000, the original $124,000, that's a crazy milestone. No one's -- I mean, what we're talking about doing both with this and even the OG because the OG while I think Genius is doing a very smart thing and recognizing the same thing that I do, that the individual parts are significantly more valuable than the whole, when the whole is being judged not by the value intrinsic, but by the technical factors of the people who are selling stock. And so it's my perception that the minute we do this first Reg CF, it's like, I mean, I saw there's a new Willy Wonka coming out. It's like the golden ticket in Willy Wonka, meaning if you're able to raise money this way by breaking out a subsidiary like we have, that's got real -- I mean, the subsidiary essentially makes money. It's cash flow breakeven, Vocal Inc. It's Creatd Inc. that right now as a whole cannot make money and burns about $150,000 a month. That's just the Creatd. And now once we break it down, it's going to be a very different story. And so I'm hoping to see that first $124,000 done pretty quickly. And I'll keep everybody posted and then we'll open it up even further. But I'm looking forward to the real core believers responding to that first one. Thank you, J.R. for the question. I hope that answered it.

Tall Frenchie has a mic.

Tall Frenchie.

Yes. I'm going to start off with saying that I am walking my dog. So I believe this is the future of how executive leadership of organizations can communicate with shareholders, so I'm very much on board for this style of communication. With that being said, we spoke a lot about shareholders. My belief in organizations that are the most successful prioritize delighting their customers, then their employees and then the shareholders. My first question would be, do you agree with that, Jeremy? The second would be, how are you delighting? And I would love if you could just give maybe 2 or 3 examples for each, the customers, employees and I know we've already discussed shareholders.

Sure. First, a fabulous question. And the more I -- your first point about appreciating these kind of communications, the more that I hear such great questions, the more I want to do it, it's right. It's like energy feedback. The more you folks feed those type of very thoughtful questions to me, the more excited I get to be on these calls. So I love philosophical questions like this. I can easily tell you that -- and they'll tell you that I put my employees last of that 3 people, right? Because we service you. We service our customers. So we would never put ourselves in front of our customers, and we're a tight group of about 15 people. And as a group of 15, we look at the shareholders, as I've articulated it to you as really kind of the lifeline of the company. Meaning, look, our product so that we can talk specifically to that, is one where creators are really, as I said earlier, the most important part of the puzzle because they provide the greatest feedback loop, they remain my North Star metric. And so we look at creators and those are our customers. So our customers are our creators. That's why, as John Shankman brought up, he knows that the one thing that Vocal doesn't do is offer what we from the very beginning, decided would be disruptive advertising for the type of content that we publish. And so from there, I think it starts first with the customer I think, after the -- with the creator. But I think it's a very contextual discussion as to whether one is a priority over the other. The shareholder drives the customers' ability which is the creator's ability to maintain the platform. I can assure you that we, as employees are last on that list. I am not someone -- I mean, first of all, let's be clear if you read my press release, the hardest thing I've gone through is since the microcap space really lost its momentum and the whole market collapsed, where stocks are down like 95% in free fall. Since then, of what was probably about 50 people, we've let 35 go. And I should say, of the 15 that are left, 5 are part time. I mean there's really only 10 pros that run the company. We have an amazing development team that our internal data and development team work with in Australia, that team consists of another 5 to 10 people. But all of us are the type of people who put the creator and the shareholder ahead of ourselves. I mean, we've gone -- my partners and I have gone months at times without payroll when we struggled to keep this company afloat over all the cycles it's been through. And so we always put ourselves last. That's the answer to that question. What was the second part of the question? I was going to give you 3 examples, right, of.....

How do you delight each? Yes. So I'm totally fine with your response. So I appreciate that. And yes, it was just examples of the how. I agree with your -- treating your customers.

So I think to how really takes people understanding what the Vocal platform really is. I mean, it's an environment for creators to monetize their content. That was kind of like the original way we phrased it. And we weren't offering just monetization. You're offering an ability to grow your audience. And from there, Vocal came up with many amazing ways to do that for the creator and there are just thousands upon thousands of articles out there about Vocal and whether -- what kind of platform it is. But I'll briefly explain that for the creators, they get a read algorithm that pays them for their content. They can take tips and other payment forms that we keep different percentages of depending on what tier of creator they are, whether they're a premium plan creator, a premium partner -- a premium brand creator pays $10 a month. That number fluctuates, you can back into it from our quarterly numbers anywhere between 15,000 to 20,000 at numerous different payment structures with 2 million premium creators. And those premium creators convert regularly without any pay-to-play model organically, they convert to premium because they're interested in participating in whether it's the tips, whether it's monthly pledges and subscriptions, whether it's read algorithm payments or just as -- I think one of our biggest things we do is we have challenges that we create that are competitions. And we've done hundreds of them and not only do our creators love participating in them. They love watching the people in their community, win it. Our customers love Vocal because it's a community where they can connect with other creators, make money and grow their audience, which is really the most important thing. So that's the delighting of the creator. I can't seem to delight shareholders. That's reflected in where my stock is trading. I mean I try to do the best I can. I get attacked a lot and I don't care. It doesn't impact me. What impacts me is the fact that I see people who are attacking who just don't have the truth. And I see other horrible things in the space. I see pumpers and dumpers villainizing individuals in the micro-cap space regularly on Twitter, bullying them horrible shit. And I can't rip the person out of the Twitter thing and grab them by his gullet. But what I can do is be as tremendously transparent, honest and forthright with my shareholder community. As my team is, my partners write regularly on Vocal, my collaborators are very committed. And in the end, we're here for our shareholders. We wake up every morning and repeat, and we get paid barely anything these days because we can barely afford to make it through the next day often for ourselves. But we do it because we believe in you, our shareholders. We've gone through all this planning and this Reg CF structure because I'm going to find out whether the shareholders believe in us when we put out this Reg CF. If I'm right, and there's a lot of taking of it, then we've discovered a way out here and then shareholders will delight. So I try to delight shareholders, both by communicating and actually structuring real plans. Now my employees, how do I delight them. I try to tell them entertaining stories and good jokes about times that I've seen that are much worse than today. But in the hard truth of it out in the business world today, this is about as hard as I've seen it. And so I would tell you that my inclination is to always be honest and be someone of integrity with them and be someone who leads by example. And I think the 10 key employees that rally around this company know that I will never stop. I saw, again, just for a moment of brevity since we've been talking about so many intense things and so many of my employees are out here on the floor with me listening. I recently watched Sisu on, I think it's HBO or MAX. Well, I think Sisu is a movie about the Nazis in Finland and the Sisu movie definition is a concept described as stoic determination, Sisu, tenacity for purpose, grit, resilience, hardiness and they say that it's one that can kind of only roughly be translated into these things because the word Sisu is specific to that type of sustainability and so I try to be Sisu for my people and for my employees. And I think they know I'm Sisu that I am determined and I won't give up. And that's how I try to delight them. Any other questions that we can answer? My partner and my friend, Erica Wagner, who must have her own very interesting perspective on the Vocal platform that perhaps people can hear.

Well, that's what I wanted to say something about, Jeremy. This has been really fascinating to listen to, and I wanted to speak not just as your friend and your partner and someone who's on the Board of Directors, but also as a creator. I'm a creator on the Vocal platform. I love that question about how do you delight your customers. And I just wanted to say something about my experience as a customer and why I think this is a platform to invest in. I've been a writer for decades. I have a lot of platforms. I write books, I write for newspapers, but I also write on Vocal. And I know Jeremy and Justin too, you'll agree with me. When I say that the quality of engagement that I see on Vocal is really extraordinary. And our creators are not just able to monetize their content, but they are also able and willing to support each other. And I can say as a writer, as a creator, that's in itself an incredibly valuable commodity. And I think when you consider our platform alongside it's, let's call them competitors, Medium and Substack you were talking about them. I think that's really one of our unique qualities is the kind of integrated communitarian nature of the Vocal platform. I'd also like to talk about at this point, from content that's appeared on our platform, we've produced 2 seasons of a podcast. We've published a book. There were all kinds of opportunities for our creators that are not just that go beyond the platform, and I think that's really important to stress. But really, what I wanted to say is, I am delighted as a creator, as a customer of Vocal. And that's where I think our strength lies.

I appreciate those comments so much, Erica. And particularly the fact that I -- as I try to answer these questions, it's so helpful when someone like you can remind me of what are those other value props that we offer to so many creators and knowing that your level of understanding of this have come to be a regular contributor on the platform has been really one of the validating aspects of the creation of Vocal. Are there any other questions, the mic one -- are you sure?

Andrew is connecting.

Andrew. Thank you for joining today.

So just a quick question. So you said earlier about the Reg CF, I would like to see how much your investors trust you. So let's say I'm one of the people, I have been down like 95%, and that now I want to be participating in the Reg CF for raising money. So what would the next plan if you would not see the expected numbers in raising the $124, 000, the $5 million to -- in the Reg CF?

Well, I think it's -- first of all, from a probability standpoint, the probabilities of the first raise are significantly high. And just to people understand how this works, you kind of begin to understand what kind of individual is looking for that type of product. That's why you go in sort of the segmentations because you're building sort of a data set for the type of individuals. And so from a probability standpoint, I'm pretty optimistic. And so whatever the plan B, Cs and Ds, some of which I can articulate to you, whatever those plans are, they, to me, have a lower probabilistic occurrence. But there would be things like selling the OG Collection in its entirety, meaning -- and while I have it audited and all of that, I could probably go to in particular, where it is this type of collection would get auctioned off would be in England or London, in particular, at one of the acclaimed auction houses that we've been speaking to. And I don't really want to sell it for $5 million or $6 million. It's got a valuation that I think is amazing. And right now is far from recognized in the stock. But if it's not going to be recognized in the stock, then I'm not sure that I have a choice, even though I have already said that my goal is to spin it out and give it to shareholders if I think that I can't raise money through any of these other situations, then the OG spin-out isn't going to be successful either because they're all part of the same plan. They're all part of coming off of these legacy toxic structures that plague the market and the algorithmic naked short selling that the market-making systems are trained to do. And so this -- are there other opportunities? Sure. Sure. I could do a pipe, that's a plan D. But that's going to be up to the shareholders, meaning if I'm going to communicate like this all the time with the shareholders and so if shareholders don't want to do what the CEO or the Board is recommending to literally save the value of their stock then I have to do what's in the interest of maintaining the survival of the company so that there still is a company for those who stick. Now when we're talking about a stock that's trading at a $3.5 million market cap, I don't get too worried about impact in that market. I'm actually finding when I look at some of those stocks that have had to do their plan D or E because they don't have as sophisticated a plan as we do. Some of those strategies are actually beginning to work. Now maybe that's a sign that we've just squeezed like it's -- when you say -- we all say it's so nonchalantly, I'm down 95%. It's because the first 100 times we said it, we were so hurt by it that we've all become numb to it. I'm down 95% in probably my own stock as well as 10 other names. And I speak to 10 other CEOs who I don't even have investments in, and they tell me about their stocks being down. I could rattle off right now, right on this call. I can rattle off 50 just off the top of my head. And that's what sometimes when people say, "What do you do all day. One of the things I have to do is stay on top of all this stuff so that I understand it." So the answer to your question is, I've got plans B, C and D, but right now at this moment in time, my head is far from that, far from it because that's not what the probability says. The probability says that our 2 million creators and our current shareholder base believes in the fundamental business and understands that today, if you want to be in a micro cap or small cap name, you best been a name that has a scalable business, particularly tech. That's my advice. I hope that was helpful. Are there any other -- here's a question from Front Collapse. Will you be doing the CF registration as OTC or up listed? Well, that's a good question, but it's far off, right? Like -- so like first, we got to do the Reg CF and then I got to see what's the most attractive method for giving everybody the ability to monetize that. So that's my answer to that. I don't really have a time frame. Are there any other questions?

We have creator, Thavien.