A Business at a Glance
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ITEM 1. BUSINESS. Digerati Technologies, Inc., a Nevada corporation (including our subsidiaries, “we,” “us,” “Company” or “Digerati”), through its operating subsidiaries, (i) Verve Cloud, Inc. (formerly known as T3 communications, Inc.), a Nevada corporation (“Verve Cloud Nevada”), (ii) Verve Cloud, Inc. (formerly known as Shift8 Networks, Inc.), a Texas corporation (“Verve Cloud Texas”), (iii) T3 Communications, Inc., a Florida corporation (“T3 Communications”), (iv) Nexogy, Inc., a Florida corporation (“Nexogy”) and (v) NextLevel Internet, Inc., a California corporation (“Next Level” and, together with Verve Cloud Nevada, Verve Cloud Texas, T3 Communications and Nexogy, the “Operating Subsidiaries”)., which, as of June 1, 2023, operate as a single business unit under the Verve Cloud name and have locations in Texas, Florida and California, provides cloud services specializing in Unified Communications as a Service (“UCaaS”) and broadband connectivity solutions for the business market.
| Metric | TTM | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 |
|---|---|---|---|---|---|---|
| Revenue | 30M | 32M | 24M | 12M | 6.3M | 6.0M |
| Net Income | -13M | -8.3M | -8.0M | -17M | -3.4M | -4.5M |
| EPS | $-0.07 | $-0.05 | $-0.05 | $-0.13 | $-0.06 | $-0.27 |
| Free Cash Flow | -1.6M | -3.7M | -2.2M | -1.1M | -31K | -579K |
| ROIC | -11.9% | -13.2% | -31.6% | -14.5% | -38.4% | -7.2% |
| Gross Margin | 64.7% | 64.3% | 61.3% | 58.6% | 51.7% | 48.2% |
| Debt/Equity | 0.00 | -0.39 | -1.51 | -0.94 | -0.39 | -28.51 |
| Dividends/Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | - |
| Operating Income | -5.6M | -5.1M | -3.7M | -2.4M | -2.1M | -2.4M |
| Operating Margin | -18.5% | -16.0% | -15.2% | -19.3% | -33.6% | -39.1% |
| ROE | 0.0% | - | - | - | - | - |
| Shares Outstanding | 180M | 166M | 161M | 128M | 139M | 122M |
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | N/A | N/A | 2.0M | 6.0M | 6.3M | 12M | 24M | 32M | 30M |
| Gross Margin | N/A | N/A | 47.4% | 48.2% | 51.7% | 58.6% | 61.3% | 64.3% | 64.7% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.0M | 922K | 3.1M | 4.2M | 4.1M | 7.0M | 12M | 18M | 17M |
| EBIT | -1.1M | -2.2M | -2.9M | -2.4M | -2.1M | -2.4M | -3.7M | -5.1M | -5.6M |
| Op. Margin | N/A | N/A | -143.3% | -39.1% | -33.6% | -19.3% | -15.2% | -16.0% | -18.5% |
| Net Income | -1.1M | 439K | -3.2M | -4.5M | -3.4M | -17M | -8.0M | -8.3M | -13M |
| Net Margin | N/A | N/A | -158.1% | -75.3% | -54.1% | -134.5% | -33.3% | -26.2% | -44.3% |
| Non-Recurring | 2K | -248K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||
| ROIC | -62.0% | N/M | -49.7% | -7.2% | -38.4% | -14.5% | -31.6% | -13.2% | -11.9% |
| ROE | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| ROA | -80.2% | 41.1% | -69.4% | -107.3% | -78.1% | -101.1% | -19.3% | -20.7% | -36.1% |
| Cash Flow | |||||||||
| Op. Cash Flow | 1.4M | 1.0M | -985K | -527K | 54K | -708K | -2.0M | -3.2M | -1.4M |
| Free Cash Flow | 1.4M | 1.0M | -987K | -579K | -31K | -1.1M | -2.2M | -3.7M | -1.6M |
| Owner Earnings | 1.3M | 225K | -1.2M | -2.2M | -1.7M | -3.0M | -5.0M | -8.0M | -6.0M |
| CapEx | 4K | 2K | 2K | 52K | 85K | 410K | 272K | 436K | 194K |
| Maint. CapEx | 18K | 18K | 227K | 669K | 613K | 1.7M | 2.9M | 3.9M | 3.7M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 18K | 18K | 227K | 669K | 613K | 1.7M | 2.9M | 3.9M | 3.7M |
| CapEx/OCF | N/A | N/A | N/A | N/A | 157.4% | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 19K | 20K | 19K | 8K | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | 0.3% | 0.2% | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | 0.0% | 0.0% | N/A | N/A | N/A | 0.0% | 0.0% | 0.0% |
| Stock-Based Comp | 22K | 773K | N/A | 1.0M | 1.1M | 624K | 98K | 881K | 816K |
| Debt Repayment | 0 | 0 | 120K | 33K | 65K | 1.3M | 250K | 298K | 298K |
| Balance Sheet | |||||||||
| Net Debt | -1.1M | -673K | -101K | 65M | -499K | 12M | 33M | 8.8M | 5.8M |
| Cash & Equiv. | 1.2M | 673K | 388K | 406K | 685K | 1.5M | 1.5M | 924K | 1.9M |
| Long-Term Debt | N/A | N/A | 27K | 65M | 85K | 136K | 33M | 8.2M | 769K |
| Debt/Equity | -0.01 | 0.00 | -0.85 | -28.51 | -0.39 | -0.94 | -1.51 | -0.39 | 0.00 |
| Interest Coverage | -42.9 | -84.0 | -7.6 | -1.1 | -1.1 | -0.5 | -0.6 | -0.4 | -0.4 |
| Equity | -2.4M | -642K | -793K | -2.3M | -2.2M | -16M | -24M | -28M | -39M |
| Total Assets | 1.4M | 713K | 4.6M | 4.2M | 4.3M | 17M | 42M | 38M | 37M |
| Total Liabilities | 3.8M | 1.4M | 5.6M | 6.9M | 7.0M | 33M | 68M | 69M | 81M |
| Intangibles | 29K | 14K | 2.2M | 1.8M | 1.5M | 8.5M | 15M | 12M | 11M |
| Retained Earnings | -78M | -78M | -81M | -85M | -89M | -105M | -113M | -122M | -134M |
| Working Capital | -2.5M | -527K | -3.7M | -5.9M | -5.3M | -24M | -29M | -65M | -77M |
| Current Assets | 1.2M | 697K | 741K | 775K | 1.3M | 2.3M | 2.5M | 2.3M | 3.1M |
| Current Liabilities | 3.7M | 1.2M | 4.5M | 6.6M | 6.6M | 27M | 32M | 68M | 80M |
| Per Share Data | |||||||||
| EPS | -0.22 | 0.06 | -0.31 | -0.27 | -0.06 | -0.13 | -0.05 | -0.05 | -0.07 |
| Owner EPS | 0.26 | 0.03 | -0.05 | -0.02 | -0.01 | -0.02 | -0.03 | -0.05 | -0.03 |
| Book Value | -0.47 | -0.09 | -0.03 | -0.02 | -0.02 | -0.13 | -0.15 | -0.17 | -0.22 |
| Cash Flow/Share | 0.27 | 0.14 | -0.04 | -0.00 | 0.00 | -0.01 | -0.01 | -0.02 | -0.05 |
| Dividends/Share | N/A | N/A | N/A | N/A | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Shares Out. | 5.2M | 7.3M | 26.0M | 121.9M | 138.8M | 128.5M | 160.6M | 166.0M | 179.7M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -0.1 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | N/A | N/A | N/A | 5.1 | 0.5 | 1.0 | N/A | N/A | 0.1 |
| FCF Yield | N/A | N/A | N/A | -2.7% | -1.9% | -6.7% | N/A | N/A | -91.3% |
| Market Cap | 0 | 0 | 0 | 22M | 1.6M | 17M | 0 | 0 | 1.8M |
| Avg. Price | 0.00 | 0.00 | 0.00 | 0.25 | 0.05 | 0.10 | 0.00 | 0.00 | 0.01 |
| Year-End Price | 0.00 | 0.00 | 0.00 | 0.18 | 0.03 | 0.13 | 0.00 | 0.00 | 0.01 |
Digerati Technologies, Inc. passes 1 of 9 quality checks, indicating weak fundamentals.
The company's 5-year average gross margin is 56.8%. Total shareholder yield (dividends) is 0.5%.
Digerati Technologies, Inc. (DTGI) has a 5-year average return on invested capital (ROIC) of -21.0%. This is below average and may indicate limited pricing power.
Digerati Technologies, Inc. (DTGI) has a market capitalization of $2M. It is classified as a small-cap stock.
Yes, Digerati Technologies, Inc. (DTGI) pays a dividend with a trailing twelve-month yield of 0.49%.
Digerati Technologies, Inc. (DTGI) operates in the Services-Computer Processing & Data Preparation industry, within the Technology sector.
Digerati Technologies, Inc. (DTGI) reported annual revenue of $32 million in its most recent fiscal year, based on SEC EDGAR filings.
Digerati Technologies, Inc. (DTGI) has a net profit margin of -26.2%. The company is currently unprofitable.
Digerati Technologies, Inc. (DTGI) generated $-4 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Digerati Technologies, Inc. (DTGI) reported earnings per share (EPS) of $-0.05 in its most recent fiscal year.
Digerati Technologies, Inc. (DTGI) has a 5-year average gross margin of 56.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 8 years of financial data for Digerati Technologies, Inc. (DTGI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Digerati Technologies, Inc. (DTGI) has a book value per share of $-0.17, based on its most recent annual SEC filing.