$DBGI

Digital Brands Group, Inc.

CIK:0001668010|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenues	$ 1,208,170	$ 2,251,379	$ 2,524,154	$ 4,123,080
Cost of net revenues	883,905	1,539,827	2,154,508	2,539,073
Gross profit	324,265	711,552	369,646	1,584,007
Operating expenses:
General and administrative	2,408,904	1,527,249	4,981,188	3,501,052
Sales and marketing	5,276,497	1,031,594	10,028,752	1,860,382
Distribution	112,070	137,926	252,044	204,350
Total operating expenses	7,797,471	2,696,769	15,261,984	5,565,784
Loss from operations	(7,473,206)	(1,985,217)	(14,892,338)	(3,981,777)
Other income (expense):
Change in fair value of share based payment liability	(1,770,393)		(5,641,847)
Interest expense	(120,546)	(127,270)	(244,372)	(262,193)
Other non-operating income (expenses)	380,723	(5,375)	403,102	36,198
Total other income (expense), net	(1,510,216)	(132,645)	(5,483,117)	(225,995)
Income tax benefit (provision)
Net loss	$ (8,983,422)	$ (2,117,862)	$ (20,375,455)	$ (4,207,772)
Weighted average common shares outstanding - basic	661,049	65,485	556,815	84,679
Weighted average common shares outstanding - diluted	661,049	65,485	556,815	84,679
Net loss per common share - basic	$ (13.59)	$ (32.34)	$ (36.59)	$ (49.69)
Net loss per common share - diluted	$ (13.59)	$ (32.34)	$ (36.59)	$ (49.69)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (20,375,455)	$ (4,207,772)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	293,400	836,450
Amortization of loan discount and fees	11,990	24,803
Change in fair value of share based payment liability	5,641,847
Non-cash lease expense	138,989
Changes in operating assets and liabilities:
Accounts receivable, net	(72,809)	(121,870)
Due from factor	28,777	49,059
Inventory	(2,294,373)	(251,354)
Prepaid expenses and other current assets	5,601,677	(2,064,098)
Accounts payable	1,150,061	(830,070)
Accrued expenses and other liabilities	(635,451)	480,577
Accrued interest payable	232,382
Lease liabilities	(23,992)
Net cash used in operating activities	(10,302,957)	(6,084,275)
Cash flows from investing activities:
Purchase of property, equipment and software	(83,144)
Deposits	(140,500)
Net cash used in investing activities	(223,644)
Cash flows from financing activities:
Repayments from related party advances		(9,500)
Issuance of loans and note payable	200,000	100,000
Payments on RallyTown secured payment obligation	(70,000)
Repayments of loan payable	(143,360)	(270,511)
Proceeds from exercise of warrants	2,564,227
Proceeds from issuance of pre-funded warrants	5,843	6,642,433
Issuance of common stock for cash	1,677,053
Net cash provided by financing activities	4,233,763	6,462,422
Net change in cash, cash equivalents, and restricted cash	(6,292,838)	378,147
Cash, cash equivalents, and restricted cash at beginning of period	7,679,005	164,431
Cash, cash equivalents, and restricted cash at end of period	1,386,167	542,578
Cash at beginning of period	1,934,831	164,431
Restricted cash at beginning of period	5,744,174
Cash and restricted cash at beginning of period	7,679,005	164,431
Cash at end of period	1,386,167	542,578
Restricted cash at end of period
Cash and restricted cash at end of period	1,386,167	542,578
Supplemental disclosure of cash flow information:
Cash paid for income taxes
Cash paid for interest		47,000
Supplemental disclosure of non-cash investing and financing activities:
Issuance of pre-funded warrants for prepaid marketing services	2,946,827	3,000,000
Shares issued for prepaid marketing services	3,407,371
Issuance of shares as a reduction to stock payable	3,871,556
Prepaid marketing services recognized as stock payable	3,100,000
Common stock to be issued pursuant to pre-funded warrant exercises	3,220,737
Extinguishment of share based payment liability	814,266
Purchase of vehicle with debt	83,456
Non-cash purchase of intangible assets		3,000,000
Recognition of right-of-use asset and lease liability	4,120,769
Reclassification of share based payment liability to note payable	$ 11,249,786

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,386,167	$ 1,934,831
Restricted cash		5,744,174
Accounts receivable, net	226,792	153,983
Due from factor, net	244,660	273,437
Inventory	5,431,033	3,136,660
Prepaid expenses and other current assets	10,709,600	9,372,958
Total current assets	17,998,252	20,616,043
Property, equipment and software, net	218,361	15,736
Right of use asset	4,020,173
Goodwill	5,788,445	5,788,445
Intangible assets, net	4,212,159	4,494,871
Deposits	222,831	82,331
Prepaid marketing expenses	14,214,480	13,491,954
Total assets	46,674,701	44,489,380
Current liabilities:
Accounts payable	7,420,955	6,270,892
Accrued expenses and other liabilities	4,965,597	5,561,491
Due to related parties	370,921	370,921
Right of use liability, current portion	160,184
Accrued interest payable	3,019,888	2,787,506
Loan payable, current	2,577,093	2,624,749
Stock payable	2,463,835	4,951,128
Promissory note payable	3,500,000	3,500,000
Note payable, current	6,371,000
Total current liabilities	30,849,473	26,066,687
Share based payment liability	6,022,252	9,405,699
Right of use liability, net of current portion	4,135,169
Note payable, net of current portion	4,878,786
Deferred tax liability	248,990	248,990
Total liabilities	46,134,670	35,721,376
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, $0.0001 par, 1,000,000,000 shares authorized, 547,534 and 219,708 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	55	22
Common stock to be issued
Additional paid-in capital	176,269,023	164,121,574
Accumulated deficit	(175,729,051)	(155,353,596)
Total stockholders’ equity	540,031	8,768,004
Total liabilities and stockholders’ equity	46,674,701	44,489,380
Undesignated Preferred Stock [Member]
Stockholders’ equity:
Preferred stock value
Series A Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock value	1	1
Series C Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock value	1	1
Series D Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock value	$ 2	$ 2