Dolphin Entertainment Q4 Revenue Increases 57% to a Record $10.5 Million - Fourth Consecutive Quarter of Record Revenue as Full Year 2021 Revenue Grows 49% to a Record $35.8 Million

Achieves Working Capital Surplus

Enters 2022 with new upside optionality from three Dolphin 2.0 Investments: NFT Marketplace, Midnight Theater, and Crafthouse Cocktails

MIAMI, FL / ACCESSWIRE / April 13, 2022 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the fourth quarter and full year ended December 31, 2021.

"This has been a transformative year for Dolphin, both with respect to our balance sheet and operating income, as well as in our evolution to making investments in assets for which we believe our marketing expertise will greatly influence the likelihood of success," said Bill O'Dowd, CEO of Dolphin Entertainment. "First, with respect to our financial statements, 2021 revenue grew 49% to a record $35.8million. Furthermore, we turned operating income positive, absent depreciation and amortization and a change in the fair value of contingent consideration. Finally, and this feels great to say, we reached a working capital surplus, with more cash on hand than all remaining debt, which has allowed us to remove our going concern, a tremendous milestone for any micro-cap public company."

Mr. O'Dowd continued, "Practically speaking, our surplus cash allowed us to start making investments in Dolphin 2.0. This is most exciting for us, and we closed out the year blessed to have made the following three investments: 1) we developed our NFT marketplace, with collections ready to go on sale this summer; 2) we acquired an ownership stake in the very exciting Midnight Theater project at Manhattan West, whichwe expect to begin operations in June of this year; and, 3) entered into a strategic partnership with Crafthouse Cocktails, an exciting ready-to-drink beverage line that we believe has tremendous growth potential."

Mr. O'Dowd concluded, "In summary, 2021 will be remembered as the year Dolphin reached positive operating income, generated a working capital surplus, built more cash on hand than all remaining debt (including long-term debt), removed its going concern, and made its first Dolphin 2.0 investments. We're excited for 2022, wherein we expect to build on this strong operational base, generate revenues from the first of our Dolphin 2.0 investments, and enter into new partnerships and investments that bring strong optionality and maximize shareholder value."

2021 and Recent Highlights

• Total Q4 2021 revenue increased 57% to a record $10.5 million, compared to $6.7 million in Q4 2020; full year 2021 revenue increased 49% to $35.7 million.
• Operating loss for the year ended December 31, 2021of $5.5 million, includes non-cash items from depreciation and amortization of $1.9 million and changes to fair value of contingent consideration of $3.7 million, compared to an operating loss of $2.6 million for the year ended December 31, 2020, which included non-cash items from depreciation and amortization of $2.0 million and an impairment of investment asset of $220,000.
• Net loss for the year ended December 31, 2021 was $6.5 million which included non-cash items from (i) depreciation and amortization of $1.9 million, (ii) $3.7 million from changes in the fair value of contingent consideration and (iii) $3.1 million from changes in the fair value of certain liabilities offset by a gain on the forgiveness of the Paycheck Protection Program loans of approximately $3.0 million as compared to a net loss of $1.9 million that included non-cash items from (i) depreciation and amortization of $2.0 million; (ii) an impairment of investment asset of $220,000; (iii) a gain of $0.9 million for the change in the fair value of certain liabilities; (iv) a loss on the deconsolidation of the Max Steel variable interest entity and (v) a gain on the extinguishment of debt for the same period in prior year.
• Cash and cash equivalents of $7.7 million as compared to $7.9 million as of December 31, 2020.
• Working Capital surplus as of December 31, 2021, compared to a working capital deficit of $3.0 million as of December 31, 2020.
• Ground-breaking and award-winning visual designer Anthony Francisco joined Dolphin in the newly created post of Creative Director.
• Announced Creature Chronicles: Exiled Aliens, the content studio's first generative NFT (non-fungible token) collection and the initial project from newly-hired visual artist Anthony Francisco.
• Dolphin Entertainment took an ownership position in the Midnight Theatre, a state-of-the-art contemporary variety theater and restaurant experience in the heart of Manhattan.
• Entered into a strategic partnership with Crafthouse Cocktails, a pioneering brand of ready-to-drink, all-natural classic cocktails created by world renowned mixologist, Charles Joly and esteemed restaurateur, Matt Lindner. Dolphin will manage all aspects of publicity and marketing for the brand through its network of agencies and will facilitate talent and commercial relationships within the entertainment and culinary industries.
• Shore Fire Media clients and projects it represented during the 2021 GRAMMY year collectively earned twenty-seven nominations, reflecting the breadth of the company's roster across R&B, Electronic, Global, Roots, Folk, Jazz, Blues, Gospel, Contemporary Christian, Comedy and other genres.
• Partnered with fine art female-led NFT collection the Flower Girls. Dolphin Will enlist its best-in-class subsidiaries and dedicated Web3 Agency, WCIP, to advance The Flower Girls' brand growth and ongoing charitable initiatives
• Announced ownership stake in FanJolt, connecting sports & entertainment celebrities to fans in support of favorite causes. New online, experiential platform features Rafael Nadal, Aaron Judge, Jewel, Ashanti, Kevin O'Leary, Josh Richards, Jen Selter, Daymond John, and Patrick Mahomes' 15 and the Mahomies Foundation and Tua Tagovailoa's Tua Foundation
• Shore Fire Media helmed the red carpet at Bud Light Super Bowl Music Fest, as the festival's music agency since 2019. Launched three nights of All-Star Talent including Green Day & Miley Cyrus; Blake Shelton & Gwen Stefani with Mickey Guyton; Halsey & Machine Gun Kelly; and Special Guests
• Partnered with Winter Sports Champions to launch NFT collection as games started in Beijing, bringing together the worlds of comic books and top athletes
• We anticipate completing the audit in the next few days

Conference Call Information

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

Date: Wednesday, April 13, 2022
Time: 4:30 PM ET
Toll Free: 877-545-0320; International: 973-528-0002
Participant Access Code: 561614
Webcast: https://www.webcaster4.com/Webcast/Page/2225/44941

Conference Call Replay Information
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 44941
Webcast Replay: https://www.webcaster4.com/Webcast/Page/2225/44941

About Dolphin Entertainment
Dolphin Entertainment is a leading independent entertainment marketing and production company. Through our subsidiaries 42West, The Door, Shore Fire Media and B/HI (a division of 42West), 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. All three PR firms were ranked among the most recent Observer's "Power 50" PR Firms in the United States, an unprecedented achievement. 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. In early 2022, Dolphin launched WCIP (pronounced We Come In Peace), its new marketing, consulting and communications agency focused solely on developing and marketing blockchain, metaverse and Web3 projects and initiatives, for both current and future clients, as well as wholly-owned project investments. WCIP is comprised of executives across all six of Dolphin's wholly-owned subsidiaries and provides expanded service offerings to the more than two dozen active Web3 projects and partners on Dolphin companies' rosters. 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 Statements of Operations
For the years ended December 31, 2021 and 2020

SOURCE: Dolphin Entertainment, Inc.