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Dolphin Entertainment Q3 Revenue Increases 70% Year over Year to a Record $9.4 Million – Third Straight Quarter of Record Revenue

Friday, 19 November 2021 09:00 AM

Dolphin Entertainment, Inc.

  • Positive Operating Income for the Second Consecutive Quarter, Even Including Non-Cash Items of Depreciation & Amortization Expenses
  • Net Income of $141,651 Equals $0.02 Basic Earnings Per Share
  • Positive Working Capital for the Second Consecutive Quarter with Surplus of $4.5 Million
  • Record Cash Position of $12.7 Million
  • Dolphin's 2.0 Momentum Continues with NFT Infrastructure Development with FTX, NFT Creative Development Led by Anthony Francisco and Ownership Position in Midnight Theatre

MIAMI, FL / ACCESSWIRE / November 19, 2021 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the third quarter ended September 30, 2021.

"The financial momentum we experienced in the first half of the year continued through the third quarter," stated Bill O'Dowd, CEO of Dolphin Entertainment. "First, revenues of $9.4 million, up 70% year over year, represented our third consecutive record revenue quarter, driven by a terrific year over year 41% organic growth from existing subsidiaries. Secondly, positive operating income was achieved for the second consecutive quarter, even including the non-cash expenses of depreciation and amortization. And, third, our balance sheet has never been stronger, as we reported a record cash position of $12.7 million, which is an increase of 60% compared to December 31, 2020. As you would then expect, we reported a working capital surplus for the second consecutive quarter, growing to $4.5 million."

O'Dowd added, "We've been managing quite nicely to positive operating income, while we've been building out the Dolphin 2.0 business opportunities, including the infrastructure needed to launch our NFT business in earnest shortly. Furthermore, our cash on hand exceeds all debt, including long-term debt, by over $2.8 million, solidifying Dolphin as a financially-sound, profitable and growing company. That is a tremendous platform from which to execute on our first year of Dolphin 2.0 initiatives."

Recent Highlights

  • Total Q3 2021 revenue increased by 70% to $9,399,432, compared to $5,527,943 million in Q3 2020
  • Operating income for the quarter ended September 30, 2021 of $38,289 including non-cash expense from depreciation and amortization of $475,207 as compared to an operating loss of $(493,185), which included non-cash expense from depreciation and amortization of $514,097, for the same period in the prior year
  • Cash and cash equivalents of $12,652,902 million as of September 30, 2021, compared to $7,923,280 million as of December 31, 2020, not including restricted cash.
  • Net Income for the quarter ended September 30, 2021 of $141,651, compared to a net loss of $(137,630) for the quarter ended September 30, 2020
  • Dolphin Entertainment and FTX announced a partnership to create NFT marketplace programs for major sports and entertainment verticals.
  • Ground-breaking and award-winning visual designer Anthony Francisco joined Dolphin in the newly created post of Creative Director. Francisco, a former Marvel Designer, joined to develop and execute numerous NFT series involving original and existing IP. The new role is a significant leap forward for Dolphin's growing NFT studio, which is planning multiple drops in the coming months.
  • 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. Dolphin will manage all aspects of publicity and marketing for the venue, as well as facilitate talent and commercial relationships within the entertainment and culinary industries. An anchor of Brookfield Properties' recently opened Manhattan West development, the Midnight Theatre is in the final stages of construction, and expects to open in Q1, 2022.
  • Be Social, Dolphin's influencer marketing group, launched its Showroom concept, hosting a two-day Summer Showroom in West Hollywood. Participating brands include Bondi Sands, EyeBuyDirect, MATE The Label, and Peach and Lily, among many others, with key creators in the beauty, fashion, and lifestyle spaces in attendance.
  • BHI was engaged by Fandom, the world's largest fan platform and #1 source for in-depth information on pop culture, entertainment & gaming, to execute comprehensive publicity efforts through 2021 for increased brand awareness and overall business growth.
  • 42West's extraordinary range of work for programs and individuals helped their clients receive a total of 19 Emmy nominations. The company's work on the Amazon series "The Boys" led to nominations for Outstanding Drama Series, Outstanding Special Visual Effects In A Season Or A Movie, Outstanding Sound Mixing For A Comedy Or Drama Series (One Hour), and Outstanding Original Music And Lyrics. Also, as a result of 42West efforts, the acclaimed music documentary ‘Billie Eilish: The World's a Little Blurry' earned a total of four nominations, including Outstanding Picture Editing For A Nonfiction Program and Outstanding Music Direction.
  • The Door and Viewpoint Creative, joined forces with the Leary Firefighters' Foundation to create and distribute content commemorating 9/11 and the 20 years since the attacks. More than a tribute to the heroes who fell that day, the content recognizes "Legacy Firefighters," who continue to struggle with the fallout, and how the FDNY has improved systems and processes based on the events of 9/11.

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

Date: Monday, November 22, 2021 - 4:30 PM Eastern Time
Participant Numbers:
Toll Free: 877-545-0320
International: 973-528-0002
Participant Access Code: 313240

Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 43568
Webcast replay:

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:

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.

James Carbonara
Hayden IR
[email protected]

Condensed Consolidated Balance Sheets

As of September 30, 2021 As of December 31, 2020
Current assets:

Cash and cash equivalents
$12,652,902 $7,923,280
Restricted cash
541,883 714,096
Accounts receivable, net of allowance for doubtful accounts of $391,575 and $653,272, respectively.
6,227,162 5,027,101
Other current assets
529,133 231,890
Total current assets
19,951,080 13,896,367
Capitalized production costs, net
251,087 271,139
Right-of-use assets
6,614,616 7,106,279
20,015,800 19,627,856
Intangible assets, net of accumulated amortization of $6,932,935 and $5,747,941, respectively.
6,537,065 7,452,059
Property, equipment and leasehold improvements, net
532,485 800,071
Deposits and other assets
231,542 198,180
Total Assets
$54,133,675 $49,351,951
Current liabilities:
Accounts payable
$810,167 $1,190,184
Term loan
600,195 900,292
Notes payable, current portion
305,037 846,749
Convertible notes payable at fair value, current portion
- 580,000
Paycheck Protection Program loans, current portion
304,169 582,438
Contingent consideration
600,000 -
Loan from related party
- 1,107,873
Accrued interest - related party
1,812,315 1,783,121
Accrued compensation
2,625,000 2,625,000
Put rights
- 1,544,029
Lease liability
1,724,404 1,791,773
Contract liability
4,266,539 1,855,209
Other current liabilities
2,368,488 2,045,842
Total current liabilities
15,416,314 16,852,510
Noncurrent liabilities:
Notes payable
896,894 426,645
Convertible notes payable
4,750,000 1,445,000
Convertible notes payable at fair value
1,253,689 947,293
Paycheck Protection Program loans
- 2,517,431
Contingent consideration
1,240,000 530,000
Loan from related party
1,107,873 -
Lease liability
5,531,736 5,964,275
Warrants liability
205,000 450,000
Other noncurrent liabilities
200,000 550,000
Total noncurrent liabilities
15,185,192 12,830,644
Total Liabilities
30,601,506 29,683,154

Commitments and contingencies (Note 16)
Common stock, $0.015 par value, 200,000,000 shares authorized, 7,768,684, issued and outstanding at September 30, 2021 and 40,000,000 shares authorized, 6,618,785, issued and outstanding at December 31, 2020
116,528 99,281
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at September 30, 2021 and December 31, 2020
1,000 1,000
Additional paid in capital
125,167,074 117,540,557
Accumulated deficit
(101,752,433) (97,972,041)
Total Stockholders' Equity
$23,532,169 $19,668,797
Total Liabilities and Stockholders' Equity
$54,133,675 $49,351,951

Condensed Consolidated Statements of Operations

For the three months ended For the nine months ended

September 30, September 30,

2021 2020 2021 2020


Entertainment publicity and marketing
$9,399,432 $5,527,943 $25,219,793 $17,356,468
Content production
- - - -
Total revenues
9,399,432 5,527,943 25,219,793 17,356,468

Operating expenses:
Direct costs
991,708 575,243 2,578,295 1,790,468
Payroll and benefits
5,875,755 3,604,852 16,770,091 11,384,791
Selling, general and administrative
1,519,812 953,993 4,234,309 3,247,474
Depreciation and amortization
475,207 514,097 1,436,189 1,531,561
Legal and professional
498,661 372,943 1,301,267 945,257
Total expenses
9,361,143 6,021,128 26,320,151 18,899,551
Income (loss) before other expenses
38,289 (493,185) (1,100,358) (1,543,083)

Other income (expenses):
Gain on extinguishment of debt, net
1,733,400 51,333 2,689,010 3,311,198
Loss on disposal of fixed assets
- - (48,461) -
Loss on deconsolidation of Max Steel VIE
- - - (1,484,591)
Change in fair value of convertible notes and derivative liabilities
(223,923) 8,730 (826,398) (540,231)
Change in fair value of warrants
(55,000) 145,559 (2,552,877) (265,445)
Change in fair value of put rights
- 159,457 (71,106) 1,677,267
Change in fair value of contingent consideration
(1,110,000) 140,000 (1,310,000) (330,000)
Acquisition costs
- (61,196) (22,907) (61,196)
Interest expense and debt amortization
(241,115) (270,815) (576,146) (1,953,790)
Total other income (expense), net
103,362 173,068 (2,718,885) 353,212
Income (loss) before income taxes
$141,651 $(320,117) $(3,819,243) $(1,189,871)
Income tax benefit
- 182,487 38,851 182,487
Net income (loss)
$141,651 $(137,630) $(3,780,392) $(1,007,384)

Earnings (loss) per share:
$0.02 $(0.02) $(0.50) $(0.19)
$0.02 $(0.04) $(0.50) $(0.45)

Weighted average number of shares outstanding
7,740,085 6,676,405 7,551,974 5,223,441
7,740,085 6,912,011 7,551,974 5,975,610

SOURCE: Dolphin Entertainment, Inc.

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