(Note: Digital Brands Group, Inc. priced its small-cap unit offering on May 13, 2021, at $4.15 – below its proposed offering price of $5 – on 2.4 million units, up from 2 million units in its prospectus. Each unit consists of one share of common stock and one warrant to buy one share of common stock. The stock will trade under the symbol “DBGI” on the NASDAQ, while the warrants will trade on NASDAQ under the symbol “DBGIW” – with both the stock and the warrants expected to start trading on NASDAQ on May 14, 2021.)

We offer a wide variety of apparel under the DSTLD, ACE Studios and Bailey 44 brands. We will also offer products under the Harper & Jones brand upon the consummation of this offering. Bailey is primarily a wholesale brand, which we have begun to transition to a digital, direct-to-consumer brand. DSTLD is primarily a digital direct-to-consumer brand, to which we recently added select wholesale retailers to create more brand awareness. Harper & Jones is also primarily a direct-to-consumer brand using its own showrooms. The company was incorporated in January 2013 under the name Denim .L.A., Inc. The company’s name was changed in December 2020 to Digital Brands Group, Inc. 

We have created a business model derived from our founding as a digitally native-first vertical brand. Digital native first brands are brands founded as e-commerce driven businesses, where online sales constitute a meaningful percentage of net sales, although they often subsequently also expand into wholesale or direct retail channels., Unlike typical e-commerce brands, as a digitally native vertical brand we control our own distribution, sourcing products directly from our third-party manufacturers and selling directly to the end consumer.

John Hilburn Davis IV, known as Hil, has served as our president and CEO since March 2019. He previously founded two companies, BeautyKind and J.Hilburn. From 1998 to 2006 Mr. Davis worked as an equity research analyst covering consumer luxury publicly traded companies at Thomas Weisel Partners, SunTrust Robinson Humphrey and Citadel Investment Group. 

As of March 31, 2021, we owed our senior secured lender about $6.0 million that is due on the scheduled maturity date of Dec.31, 2022.

As of April 5, 2021, we had an aggregate principal amount of debt outstanding of about $15.5 million. We believe this is an amount of indebtedness which may be considered significant for a company of our size and current revenue base.

Note: Revenue and net loss figures are actual figures (not pro forma) for the year ended Dec. 31, 2020.