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Dolphin Entertainment Reports First Quarter 2020 Results

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July 13, 2020 9:01 AM EDT

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.

Highlights

  • 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: https://www.webcaster4.com/Webcast/Page/2225/35648
  • 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.

Contact:

James Carbonara
Hayden IR
(646)-755-7412
[email protected]

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.

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)

ASSETS
 As of March 31, 2020 As of December 31, 2019
Current
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
LIABILITIES
Current
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
Noncurrent
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)
STOCKHOLDERS' EQUITY
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.

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)

 For the three months ended
March 31,
2020 2019
Revenues:
Entertainment publicity and marketing
 $ 6,633,800 $ 6,238,099
Content production
 - 78,990
Total revenues
 6,633,800 6,317,089
Expenses:
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.



View source version on accesswire.com:
https://www.accesswire.com/597245/Dolphin-Entertainment-Reports-First-Quarter-2020-Results


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