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Press release content from Accesswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Accesswire
Press release content from Accesswire. The AP news staff was not involved in its creation.

Dolphin Entertainment Q2 Revenue Increases 66% Year over Year and 20% Sequentially to a Record $8.6 Million

August 16, 2021 GMT
Positive Operating Income Even Including Non-Cash Depreciation & Amortization ExpenseNet Income of $1.3M Equals $0.17 Basic Earnings Per ShareCompletes Growth to Positive Working Capital With Surplus of $1.26MNFTs, Dolphin's First of Dolphin ...
Positive Operating Income Even Including Non-Cash Depreciation & Amortization ExpenseNet Income of $1.3M Equals $0.17 Basic Earnings Per ShareCompletes Growth to Positive Working Capital With Surplus of $1.26MNFTs, Dolphin's First of Dolphin ...
Positive Operating Income Even Including Non-Cash Depreciation & Amortization ExpenseNet Income of $1.3M Equals $0.17 Basic Earnings Per ShareCompletes Growth to Positive Working Capital With Surplus of $1.26MNFTs, Dolphin's First of Dolphin ...

Positive Operating Income Even Including Non-Cash Depreciation & Amortization Expense

Net Income of $1.3M Equals $0.17 Basic Earnings Per Share

Completes Growth to Positive Working Capital With Surplus of $1.26M

NFTs, Dolphin’s First of Dolphin 2.0 Initiatives, Have Launched

MIAMI, FL / ACCESSWIRE / August 16, 2021 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the second quarter ended June 30, 2021.

“Three major financial milestones were achieved this quarter,” stated Bill O’Dowd, CEO of Dolphin Entertainment. “First, revenues of $8.6M, which topped by 20% the previous record of only one quarter prior. Secondly, positive operating income for the first time as a NASDAQ company when including the non-cash expense of depreciation and amortization. Operating income is the P&L metric we use to gauge ourselves, so this was very meaningful to us. And, third, a working capital surplus for the first time in Dolphin’s history as a public company, achieved in 3 ½ years after uplisting to NASDAQ and despite pursuing an acquisition strategy to assemble a Super Group of six best-in-class marketing companies.”

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“All together, these 3 milestones show that we are a financially-sound, profitable and growing company,” continued O’Dowd. “That is a great platform from which to accelerate our first year of Dolphin 2.0 initiatives, and make investments in opportunities we see to own content, live events, and consumer products that we already know we can market as well as anyone else.”

Recent Highlights

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  • Total Q2 revenue increased to $8.6 million, compared to $5.2 million in Q2 2020;
  • Operating income for the quarter ended June 30, 2021 of $56,293 including non-cash expense from depreciation and amortization of $478,270 as compared to an operating loss of $179,038, which included non-cash expense from depreciation and amortization of $496,461, for the same period in the prior year.
  • Cash and cash equivalents of $9.3 million as of June 30, 2021, compared to $7.9 million as of December 31, 2020, not including restricted cash.
  • Net Income for the quarter ended June 30, 2021 of $1.3 million, included the benefit of a net $1.0 million in non-cash items stemming from a $1.0 million gain on extinguishment of debt and a positive change in fair value of derivative liabilities, warrants, put rights and contingent consideration of $498,974, partially offset by depreciation and amortization of $478,270, compared to a net loss of $2.9 million, which included non-cash items from depreciation and amortization of $ 496,461, and a negative change in fair value of derivative liabilities, warrants, put rights and contingent consideration items in the amount of $1.7 million, for the same period in the prior year.
  • Dolphin Entertainment and FTX announced a partnership to create NFT marketplace programs for major sports and entertainment brands
  • Dolphin was added to the Russell Microcap® Index
  • The Door welcomed Häagen-Dazs and Holle to its roster of clients
  • 42West was involved in various capacities with 13 films that earned a total of 32 Academy Award nominations and won six Oscars.
  • Shore Fire clients Carole King and Todd Rundgren were inducted into the Rock & Roll Hall of Fame.
  • Dolphin Entertainment’s NFTs Division entered its 1st vertical, Sports, with First NFT Partnership with Hall of Fame Resort & Entertainment; Announced Heisman Trophy Winners and Pro Football Hall of Fame Inductees Tim Brown, Earl Campbell and Doak Walker To Kick-Off NFT Collection
  • Dolphin Entertainment’s NFTs Division entered its 2nd vertical, Culinary, with NFT collectible recipe card system, launching with top chefs throughout the United States; Partnered for NFT collection with world renowned artist Romero Britto, in celebration of the 20th anniversary of South Beach Wine & Food Festival.

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Date, Time: August 16, 2021, at 4:30 pm ET

Toll-Free: 844-407-9500

International: 862-298-0850 Webcast: https://www.webcaster4.com/Webcast/Page/2225/42377

Conference Call Replay Information

Toll-Free: 877-481-4010

Reference ID: 42377

Webcast replay: https://www.webcaster4.com/Webcast/Page/2225/42377

About Dolphin Entertainment, Inc.

Dolphin Entertainment (NASDAQ: DLPN) is a leading independent entertainment marketing and premium content development 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, gaming and hospitality industries. Viewpoint Creative and Be Social complement their efforts with full-service creative branding and production capabilities as well as social media and influencer marketing services. Dolphin’s legacy content production business, founded by Emmy-nominated CEO Bill O’Dowd, has produced multiple feature films and award-winning digital series. Dolphin’s Non-Fungible Tokens (NFTs) Division is dedicated to designing, producing, distributing and promoting NFTs for itself and its clients within the film, television, music, gaming, culinary and technology industries. The NFTs division is comprised of executives across all six of Dolphin’s wholly-owned subsidiaries blending their creative expertise in creative services, digital design, production, marketing, sales and public relations. To learn more, visit: https://www.dolphinentertainment.com

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.

CONTACT:

James Carbonara

Hayden IR

(646)-755-7412

james@haydenir.com

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

ASSETS

As of June 30, 2021As of December 31, 2020

Current assets:

Cash and cash equivalents

$9,252,228$7,923,280

Restricted cash

677,354714,096

Accounts receivable, net of allowance for doubtful accounts of $563,782 and $653,272, respectively.

5,423,5075,027,101

Other current assets

424,158231,890

Total current assets

15,777,24713,896,367

Capitalized production costs, net

346,968271,139

Right-of-use assets

7,091,4937,106,279

Goodwill

20,015,80019,627,856

Intangible assets, net of accumulated amortization of $6,537,937 and $5,747,941, respectively.

6,932,0637,452,059

Property, equipment and leasehold improvements, net

602,297800,071

Deposits and other assets

228,313198,180

Total Assets

$50,994,181$49,351,951

LIABILITIES

Current liabilities:

Accounts payable

$859,912$1,190,184

Term loan

700,227900,292

Notes payable, current portion

302,455846,749

Convertible notes payable at fair value, current portion

-580,000

Paycheck Protection Program loans, current portion

848,987582,438

Loan from related party

-1,107,873

Accrued interest - related party

1,718,2271,783,121

Accrued compensation

2,625,0002,625,000

Put rights

-1,544,029

Lease liability

1,847,1171,791,773

Contract liability

3,175,9171,855,209

Other current liabilities

2,442,4212,045,842

Total current liabilities

14,520,26316,852,510

Noncurrent liabilities:

Notes payable

924,141426,645

Convertible notes payable

3,050,0001,445,000

Convertible notes payable at fair value

1,029,766947,293

Paycheck Protection Program loans

1,188,5822,517,431

Contingent consideration

730,000530,000

Loan from related party

1,107,873-

Lease liability

5,920,8965,964,275

Warrants liability

150,000450,000

Other noncurrent liabilities

200,000550,000

Total noncurrent liabilities

14,301,25812,830,644

Total Liabilities

28,821,52129,683,154

Commitments and contingencies (Note 16)

STOCKHOLDERS' EQUITY

Common stock, $0.015 par value, 40,000,000 shares authorized,7,638,469 and 6,618,785, respectively, issued and outstanding at June 30, 2021 and December 31, 2020

114,57599,281

Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at June 30, 2021 and December 31, 2020

1,0001,000

Additional paid in capital

123,951,169117,540,557

Accumulated deficit

(101,894,084)(97,972,041)

Total Stockholders' Equity

$22,172,660$19,668,797

Total Liabilities and Stockholders' Equity

$50,994,181$49,351,951

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

For the three months endedFor the six months ended
June 30,June 30,
2021202020212020

Revenues:

Entertainment publicity and marketing

$8,643,244$5,194,725$15,820,361$11,828,525

Content production

----

Total revenues

8,643,2445,194,72515,820,36111,828,525

Operating expenses:

Direct costs

833,511656,8491,583,9311,285,361

Payroll and benefits

5,622,4682,879,07310,892,8317,779,939

Selling, general and administrative

1,194,704978,5272,718,6582,223,345

Depreciation and amortization

478,270496,461960,9821,017,464

Legal and professional

457,998362,853802,606572,314

Total expenses

8,586,9515,373,76316,959,00812,878,423

Income (loss) before other expenses

56,293(179,038)(1,138,647)(1,049,898)

Other income (expenses):

Gain on extinguishment of debt, net

1,012,973-955,6103,259,866

Loss on disposal of fixed assets

(48,461)-(48,461)-

Loss on deconsolidation of Max Steel VIE

---(1,484,591)

Change in fair value of convertible notes and derivative liabilities

268,974(696,420)(602,475)(548,961)

Change in fair value of warrants

65,000(483,519)(2,497,877)(411,004)

Change in fair value of put rights

-47,070(71,106)1,517,810

Change in fair value of contingent consideration

165,000(573,000)(200,000)(470,000)

Acquisition costs

-(22,907)-

Interest expense and debt amortization

(169,837)(1,058,694)(335,031)(1,682,976)

Total other income (expense), net

1,293,649(2,764,563)(2,822,247)180,144

Income (loss) before income taxes

$1,349,942$(2,943,601)$(3,960,894)$(869,754)

Income tax benefit

-38,851-

Net income (loss)

$1,349,942$(2,943,601)$(3,922,043)$(869,754)

Earnings (loss) per share:

Basic

$0.17$(0.62)$(0.53)$(0.20)

Diluted

$0.13$(0.62)$(0.53)$(0.46)

Weighted average number of shares outstanding

Basic

7,664,0004,719,2417,456,3604,363,742

Diluted

7,913,3965,059,8677,456,360(5,214,355)

SOURCE: Dolphin Entertainment, Inc.

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https://www.accesswire.com/659996/Dolphin-Entertainment-Q2-Revenue-Increases-66-Year-over-Year-and-20-Sequentially-to-a-Record-86-Million