Published on June 27, 2024
Creatd, Inc. today announced the termination of its relationship with Turner Stone & Company, LLP (“Turner Stone”) as the Company’s auditors. After a thorough search, the Company has engaged new auditors who will complete the 10-K filing. This change is expected to delay the Company’s plans and communicated strategy by approximately 3-4 months.
CEO Jeremy Frommer’s Statement
“We understand the difficult general auditing environment and under SEC regulatory guidelines, had to be committed to Turner Stone for at least three quarters, equating to twelve months of work irrespective of our company and shareholders’ wants or needs. With no way out, finally at the end of the regulatory period, we had no choice but to seek new auditors. This decision was driven by significant issues, including the permanent industry ban of Turner Stone’s founding partner, the change of the senior partner assigned to our account, and Turner Stone’s general difficulties, as related to Part I.A deficiency score. In addition, the individual auditor we anticipated to work with at Turner Stone left the firm a few months after we signed on, due to his irreconcilable issues that were coming to light at the firm. Despite these challenges being publicly known, regulatory requirements required us to stay with them. I believe the impact of BF Borgers is rippling through the auditor space. The minute I could escape them and publicly disclose, I ran from them.
Consequently, Creatd will temporarily transition to the OTC alternative reporting status, until these audits are completed. The Company has filed eight years’ worth of audited financials, with multiple auditors, and never had an issue. Our records are strong and as a tech company, we understand data. The inability to work with Turner Stone to complete this audit is not reflective of any issues within Creatd.
We estimate the audit process for our 10-Ks and Qs will take approximately 90 days, with a targeted return to the OTCQB market in late Q3 2024.
Upon completing the Q1 and Q2 filings, we anticipate building a more robust balance sheet, and continuing our well-defined strategy and business model, even as we await the filings. We are thankful to the OTCQB for their support of Creatd through this difficult process.
This technical situation does not and will not impact the company’s crown jewels, Vocal Inc. (https://vocal.media/) and the OG Collection Inc. While Creatd still needs to have the OG Collection re-audited, we are actively pursuing several revenue opportunities and joint ventures that will be our primary focus until we are in a position to spin off the OG Collection to Creatd shareholders as a special dividend. This commitment represents a real corporate action to fight short selling and create value for shareholders. No matter how many obstacles beyond my control arise, I am relentless and will not stop marching toward stated goals.
We empathize with the frustration of our shareholders and are committed to navigating these challenges with the same transparency and dedication to our long-term objectives that we have always shown. If ever there was a time for shareholders to rally together and stay united, it is now. We must fight a corrupt system and fight to maintain our position as one of the premier technology companies in the creator economy. Please feel free to reach out to me directly with questions, but equally important, we appreciate all business introductions that enable my team and me to work toward shared success. I am thankful to the many of you who have already reached out with productive ideas and introductions. We are all in this together and finally, maybe most of all, please open a Vocal account and understand what you are investing in. Following today’s announcement, Creatd is expected to file its 10-K tomorrow with the OTC under alternative filing status, and will keep the investor community informed in real time.”
Forward Looking Statements
Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings.