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

ASSETS 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 
Goodwill  18,072,825   17,947,989 
Property, equipment and leasehold improvements, net  957,290   1,036,849 
Investments  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  -   1,700,390 
Term loan  372,863   - 
Put rights  2,795,007   2,879,403 
Accrued compensation  2,625,000   2,625,000 
Debt  -   3,311,198 
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  548,100   - 
Notes payable  290,462   288,237 
Total current liabilities  17,277,722   22,421,511 
Put rights  -   124,144 
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  827,527   - 
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    -      78,990 
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 
Payroll    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    147,459      - 
Change in fair value of warrants    72,515      - 
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               
Basic    20,498,564      15,944,443 
Diluted    28,384,982      18,690,377 

SOURCE: Dolphin Entertainment, Inc.

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