For a company that’s been around since 1999, you’d think Dubli (Omnito) would have had plenty of time to fine tune its business model into profitability.

Things were
looking pretty bleak
this time last year, with Dubli reporting $13.9 million dollars in losses.

The good news? Dubli managed to reduce their losses in 2016.

The bad news? The company still managed to blow through $10.3 million dollars.

Dubli’s annual 10-K filing reveals revenue dropped from $21.3 million in 2015 to $17.7 million in for 2016.

Gross income decreased to $6.9 million in fiscal year 2016 from $8.2 million in fiscal year 2015 as a result of the lower sales.

The net result is a $10.3 million loss for Dubli in 2016.

That figure is $3.6 million less than Dubli lost in 2015.

Dubli don’t attribute the decline in losses to an improvement product sales or viability of their business model, but instead claim it’s

a result of a decrease of $4.0 million in non-cash equity compensation and a $509,000 decrease in the fair value of a derivative liability partially offset by an increase of $1.5 million in rent and office expenses.

Four figures in particular stood out to me:

$14.2 million in revenue from “membership subscription fees and commission income”

$2.8 million in revenue from “business license fees”

$10.8 million in expenses for “cost of revenues” and

$17.4  in expenses for “selling, general and administrative expenses”

All up, Dubli’s cost of doing business was just $242,052 less than their revenue sources combined. And that’s not taking into consideration the $6.8 million additional cost of generating that revenue.

Despite ongoing sustained losses, Dubli executives were collectively compensated over $1.5 million dollars. Another $829,000 was spent on executive travel allowances.

I couldn’t find an Income Disclosure Statement on the Dubli website revealing what the average earnings for a Dubli affiliate was for 2016. Nor is this information provided in the 10-K form.

As mentioned above, $14.2 million out of Dubli’s $17.7 million revenue for 2016 was generated via membership subscription fees and commission income.

Elsewhere in the report, Dubli acknowledge

regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers.

Consumers for Dubli appears to include affiliates, with their being no specific distinction between Dubli affiliates and retail customers.

With that in mind, Dubli claim revenue is

generated primarily from

(a) business license fees paid by BAs and Partner Program business customers who established customer websites for their own customers;

(b) membership subscription fees from BAs and their customers’ VIP membership packages;

(c) commission income from participating online stores

We know (b) is the primary revenue generator, which begs the question how

🤖 Quick Answer

What were Dubli's financial results in 2016?
Dubli reported a $10.3 million loss in 2016, representing an improvement from the $13.9 million loss in 2015. Revenue declined to $17.7 million from $21.3 million year-over-year, while gross income decreased to $6.9 million from $8.2 million, reflecting reduced sales performance.

How did Dubli's executive compensation compare to company losses?
Despite the company's $10.3 million loss in 2016, Dubli executives received combined compensation exceeding $1.5 million, raising questions about executive pay relative to overall financial performance.

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