Dolphin Entertainment Reports First Quarter 2020 Results

Company Reports $6.6 million of Revenue and $2.1 million of Net Income

NEW YORK, NY and LOS ANGELES, CA / ACCESSWIRE / July 13, 2020 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading independent entertainment marketing and production company, reports its operating results for the three months ended March 31, 2020.


  • Total Q1 revenue and the revenue from the company’s core entertainment and publicity segment, increased approximately 5% and 6.0%, respectively, year-over-year, to $6,633,800.
  • Operating loss for the three months ended March 31, 2020 of $870,859, which included non-cash items from depreciation and amortization of $521,003, as compared to operating loss of $825,161 including non-cash items for depreciation and amortization of $481,642 for the same period in the prior year.
  • Net Income for the three months ended March 31, 2020 of $2,073,847, compared to net income of $122,608 for the same period in the prior year.
  • Shore Fire Media’s clients won a collective 11 GRAMMY Awards, including seven in various Best Album categories.
  • 42West was involved in various capacities with 13 films that earned a total of 49 Academy Award nominations and won 9 Oscars.
  • The Door and Shore Fire Media participated in a number of star-studded celebrations around the biggest sporting event in the nation, Super Bowl LIV, including the Super Bowl Music Fest headlined by acts such as DJ Khaled, Guns N Roses and Adam Levine.
  • Rachel Aberly, Executive Vice President of 42West, won the inaugural “Publicist of the Year” award at the 2020 Publicists Awards.
  • Dolphin Entertainment acquired feature comedy script SISTERS BEFORE MISTERS, and attached Lea Thompson to direct.
  • Furthermore, on June 9, 2020, Dolphin closed on a securities purchase agreement, previously announced on June 5th, 2020, with several institutional investors for the issuance and sale of 7,900,000 shares of its common stock at a price of $1.05 per share, for aggregate gross proceeds of approximately $8.3 million, in a registered direct offering.
  • Conference Call Information
  • To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
    Date, Time: July 13, 2020, at 4:30 p.m. ET
    Toll-Free: 877-407-0782
    International: 201-689-8567
    Live Webcast:
  • Conference Call Replay Information
  • The replay will be available beginning approximately 1 hour after the completion of the live event.
    Toll-Free: 877-481-4010
    Reference ID: 35648

About Dolphin Entertainment, Inc.

Dolphin Entertainment is a leading independent entertainment marketing and production company. Through our subsidiaries 42West, The Door and Shore Fire Media, we provide expert strategic marketing and publicity services to many of the top brands, both individual and corporate, in the film, television, music and hospitality industries. In December 2019, all three PR firms were ranked among the Observer’s “Power 50” PR Firms in the United States, an unprecedented achievement. Dolphin’s acquisition of Viewpoint Creative adds full-service creative branding and production capabilities to our marketing group. Dolphin’s legacy content production business, founded by Emmy-nominated CEO Bill O’Dowd, has produced multiple feature films and award-winning digital series.


James Carbonara
Hayden IR

This press release contains ‘forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, Dolphin Entertainment Inc.’s offering of common stock as well as expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by the use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, Dolphin Entertainment’s actual results may differ materially from the results discussed in its forward-looking statements. Dolphin Entertainment’s forward-looking statements contained herein speak only as of the date of this press release. Factors or events Dolphin Entertainment cannot predict, including those described in the risk factors contained in its filings with the Securities and Exchange Commission, may cause its actual results to differ from those expressed in forward-looking statements. Although Dolphin Entertainment believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved, and Dolphin Entertainment undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

Condensed Consolidated Balance Sheets

  As of March 31, 2020     As of December 31, 2019  
Cash and cash equivalents
  $ 1,880,744     $ 2,196,249  
Restricted cash
    714,089       714,089  
Accounts receivable, net
    3,464,936       3,581,155  
Other current assets
    540,387       372,872  
Total current assets
    6,600,156       6,864,365  
Capitalized production costs
    239,277       203,036  
Right of use assets
    7,026,745       7,435,903  
Intangible assets, net of accumulated amortization of $4,730,706 and $4,299,794, respectively.
    7,930,627       8,361,539  
    18,072,825       17,947,989  
Property, equipment and leasehold improvements, net
    957,290       1,036,849  
    220,000       220,000  
Deposits and other assets
    144,632       502,045  
Total Assets
  $ 41,191,552     $ 42,571,726  
Accounts payable
  $ 809,620     $ 832,089  
Other current liabilities
    5,346,321       5,373,809  
Line of credit
Term loan
Put rights
    2,795,007       2,879,403  
Accrued compensation
    2,625,000       2,625,000  
Loan from related party
    1,107,873       1,107,873  
Lease liability
    1,604,264       1,610,022  
Contract liability
    525,712       309,880  
Convertible notes payable
    1,252,500       2,383,610  
Convertible note payable at fair value
Notes payable
    290,462       288,237  
Total current liabilities
    17,277,722       22,421,511  
Put rights
Convertible notes payable
    945,000       1,100,000  
Convertible notes payable at fair value
    1,214,786       629,618  
Warrants liability
    471,516       189,590  
Derivative liability
    15,456       170,000  
Notes payable
    1,049,270       1,074,122  
Term loan
Contingent consideration
    227,000       330,000  
Lease liability
    5,976,977       6,386,209  
Other noncurrent liabilities
    570,000       570,000  
Total noncurrent liabilities
    11,297,532       10,573,683  
Total Liabilities
    28,575,254       32,995,194  
Commitments and contingencies (Note 20)
Common stock, $0.015 par value, 200,000,000 shares authorized, 20,036,906 and 17,892,900, respectively, issued and outstanding at March 31, 2020 and December 31, 2019.
    300,562       268,402  
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at March 31, 2020 and December 31, 2019.
    1,000       1,000  
Additional paid in capital
    106,273,738       106,465,896  
Accumulated deficit
    (93,959,002 )     (97,158,766 )
Total Stockholders’ Equity
  $ 12,616,298     $ 9,576,532  
Total Liabilities and Stockholders’ Equity
  $ 41,191,552     $ 42,571,726  

The accompanying notes are an integral part of these consolidated financial statements.

Condensed Consolidated Statements of Operations

  For the three months ended
March 31,
  2020     2019  
Entertainment publicity and marketing
  6,633,800     6,238,099  
Content production
Total revenues
    6,633,800       6,317,089  
Direct costs
    688,977       1,187,419  
Selling, general and administrative
    1,120,616       795,867  
Depreciation and amortization
    521,003       481,642  
Legal and professional
    284,440       375,909  
    4,889,623       4,301,413  
Total expenses
    7,504,659       7,142,250  
Loss before other income (expenses)
    (870,859 )     (825,161 )
Other income (expenses):
Gain (loss) on extinguishment of debt
    3,259,865       (21,287 )
Loss on deconsolidation of Max Steel VIE
    (1,484,591 )      
Change in fair value of put rights
    1,470,740       1,527,026  
Change in fair value of contingent consideration
    103,000       (270,000 )
Change in fair value of convertible notes and derivative liabilities
Change in fair value of warrants
Interest expense and debt amortization
    (624,282 )     (287,970 )
Total other income, net
    2,944,706       947,769  
Income before income taxes
  2,073,847     122,608  
Income taxes
Net income
  2,073,847     122,608  
Income per share – Basic
  0.08     0.01  
Income (loss) per share – Diluted
  0.01     (0.08 )
Weighted average number of shares used in per share calculation
    20,498,564       15,944,443  
    28,384,982       18,690,377  

SOURCE: Dolphin Entertainment, Inc.

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