News Press Releases

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

DLPN | August 16, 2021

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."

"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

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, 2021			As of December 31, 2020
Current assets:
Cash and cash equivalents	$	9,252,228		$	7,923,280
Restricted cash		677,354			714,096
Accounts receivable, net of allowance for doubtful accounts of $563,782 and $653,272, respectively.		5,423,507			5,027,101
Other current assets		424,158			231,890
Total current assets		15,777,247			13,896,367
Capitalized production costs, net		346,968			271,139
Right-of-use assets		7,091,493			7,106,279
Goodwill		20,015,800			19,627,856
Intangible assets, net of accumulated amortization of $6,537,937 and $5,747,941, respectively.		6,932,063			7,452,059
Property, equipment and leasehold improvements, net		602,297			800,071
Deposits and other assets		228,313			198,180
Total Assets	$	50,994,181		$	49,351,951
LIABILITIES
Current liabilities:
Accounts payable	$	859,912		$	1,190,184
Term loan		700,227			900,292
Notes payable, current portion		302,455			846,749
Convertible notes payable at fair value, current portion		-			580,000
Paycheck Protection Program loans, current portion		848,987			582,438
Loan from related party		-			1,107,873
Accrued interest - related party		1,718,227			1,783,121
Accrued compensation		2,625,000			2,625,000
Put rights		-			1,544,029
Lease liability		1,847,117			1,791,773
Contract liability		3,175,917			1,855,209
Other current liabilities		2,442,421			2,045,842
Total current liabilities		14,520,263			16,852,510
Noncurrent liabilities:
Notes payable		924,141			426,645
Convertible notes payable		3,050,000			1,445,000
Convertible notes payable at fair value		1,029,766			947,293
Paycheck Protection Program loans		1,188,582			2,517,431
Contingent consideration		730,000			530,000
Loan from related party		1,107,873			-
Lease liability		5,920,896			5,964,275
Warrants liability		150,000			450,000
Other noncurrent liabilities		200,000			550,000
Total noncurrent liabilities		14,301,258			12,830,644
Total Liabilities		28,821,521			29,683,154

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		114,575			99,281
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at June 30, 2021 and December 31, 2020		1,000			1,000
Additional paid in capital		123,951,169			117,540,557
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 ended						For the six months ended
	June 30,						June 30,
	2021			2020			2021			2020

Revenues:
Entertainment publicity and marketing	$	8,643,244		$	5,194,725		$	15,820,361		$	11,828,525
Content production		-			-			-			-
Total revenues		8,643,244			5,194,725			15,820,361			11,828,525

Operating expenses:
Direct costs		833,511			656,849			1,583,931			1,285,361
Payroll and benefits		5,622,468			2,879,073			10,892,831			7,779,939
Selling, general and administrative		1,194,704			978,527			2,718,658			2,223,345
Depreciation and amortization		478,270			496,461			960,982			1,017,464
Legal and professional		457,998			362,853			802,606			572,314
Total expenses		8,586,951			5,373,763			16,959,008			12,878,423
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			-			955,610			3,259,866
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		7,664,000			4,719,241			7,456,360			4,363,742
Diluted		7,913,396			5,059,867			7,456,360			(5,214,355	)