Dolphin Entertainment Q2 Revenue Increases 66% Year over Year and 20% Sequentially to a Record $8.6 Million
*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 1^st 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 2^nd 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 20^th 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 )
*SOURCE: *Dolphin Entertainment, Inc.
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