Dolphin CEO Bill O'Dowd Starts $250,000 10b5-1 Stock Purchase Plan This Week, Building on $100,000 Purchase in 2H 2024; Bullish on Dolphin’s Undervalued Shares and Future Growth

Rhea-AI Summary

Dolphin Entertainment (NASDAQ:DLPN) announced that CEO Bill O'Dowd has initiated a 10b5-1 trading plan to purchase $250,000 of company stock, following his $100,000 investment in 2H 2024. The company reported significant financial improvements in 2024, with revenue growing 20% to $52 million and achieving a $1 million profit in adjusted operating income, marking a $3 million improvement from previous losses.

The company operates through three divisions:

• Dolphin Entertainment: Emmy-nominated content producer
• Dolphin Marketing: Named 2025 #1 Agency of the Year by Observer
• Dolphin Ventures: Business development and innovation arm

Additionally, Dolphin launched 'The Pod', a shareholder loyalty program in partnership with TiiCKER, offering perks like gift cards and special access to events for verified investors.

Positive

• Revenue grew 20% to $51.68 million in 2024
• $3 million improvement in adjusted operating income, turning $2M loss into $1M profit
• CEO demonstrates confidence through $250,000 stock purchase plan
• Marketing division recognized as 2025 #1 Agency of the Year

Negative

• Net loss of $12.6 million in 2024
• Goodwill impairment of $6.67 million
• Write-off of notes receivables of $1.27 million
• Total liabilities increased to $46.79 million

Insights

Financial Analyst

This CEO stock purchase announcement carries significant weight given the company's small $11.27M market cap. O'Dowd's planned $250,000 purchase combined with his previous $100,000 investment represents approximately 3.1% of Dolphin's entire market value - a substantial personal commitment that signals genuine confidence.

The financial data reveals a company in transition with mixed but improving fundamentals. Revenue growth of 20% reaching $51.68M demonstrates strong top-line momentum. The swing from a $2.42M adjusted operating loss to a $922K profit marks a significant $3.35M operational improvement.

However, investors should note the substantial gap between adjusted and GAAP results. The $10.48M GAAP operating loss, while better than 2023's $20.11M, includes concerning items like $6.67M in goodwill impairment and $1.27M in written-off notes receivable.

The balance sheet presents additional challenges with $46.79M in liabilities against $11.65M in stockholders' equity, a deterioration from $19.96M in 2023. Cash position improved to $8.20M, providing some operational breathing room.

O'Dowd's observation about valuation deserves attention - at $1.01 per share, Dolphin trades below one quarter's revenue (~$13M), an uncommon value metric even for challenged companies showing operational improvement.

Corporate Governance Expert

The CEO's implementation of a 10b5-1 trading plan represents a structured, compliance-focused approach to insider buying that merits investor attention. These SEC-sanctioned plans establish predetermined trading schedules that allow executives to purchase shares without running afoul of insider trading regulations, even during blackout periods or when possessing material non-public information.

What's particularly notable is that executives typically establish these plans for selling shares as part of diversification strategies. O'Dowd's use of this mechanism for purchasing shares sends an unusually strong signal of conviction about Dolphin's undervaluation. The plan's structure also indicates this isn't a one-time purchase but a systematic investment strategy.

The timing aligns with Dolphin's operational inflection point - the company has just achieved positive adjusted operating income after several challenging periods. O'Dowd's willingness to increase his personal financial commitment following his earlier $100,000 investment suggests he believes the market hasn't yet recognized these improvements.

This level of insider buying in a microcap company ($11.3M market cap) represents significant skin in the game. The commitment is especially meaningful considering Dolphin's shareholder equity declined by 41.6% year-over-year, indicating O'Dowd sees value where the market currently perceives risk.

Investors should view this as a credible positive signal while maintaining appropriate caution given the company's ongoing GAAP losses and balance sheet challenges.

MIAMI, FL / ACCESS Newswire / April 3, 2025 / Dolphin (NASDAQ:DLPN), a leading entertainment marketing and content production company, today announced that CEO Bill O'Dowd has initiated a 10b5-1 trading plan to purchase an initial $250,000 of the Company's common stock, building upon his $100,000 investment in Dolphin in the second half of 2024.

"The best is yet to come for Dolphin," said CEO Bill O'Dowd. "In 2024, our revenues grew 20% to nearly $52 million, and we swung from a $2 million loss to a $1 million profit in adjusted operating income - a $3 million improvement. Despite these achievements, our stock trades below any of our 2024 quarterly revenues, presenting a compelling opportunity."

Mr. O'Dowd added, "Initiating this 10b5-1 plan to purchase additional shares underscores my confidence in our company's future and the significant potential I see in our stock at current levels. I am purchasing this stock because I firmly believe Dolphin's equity is deeply undervalued by the market."

ABOUT DOLPHIN

Dolphin (NASDAQ:DLPN) was founded in 1996 by Bill O'Dowd and has evolved from its origins as an Emmy-nominated television, digital and feature film content producer to a company with three dynamic divisions: Dolphin Entertainment, Dolphin Marketing and Dolphin Ventures.

Dolphin Entertainment: This legacy division, where it all began, has a rich history of producing acclaimed television shows, digital content and feature films. With high-profile partners like IMAX and notable projects including The Blue Angels, Dolphin Entertainment continues to set the standard in quality storytelling and innovative content creation.

Dolphin Marketing: Established in 2017, the Marketing division, which was just named by Observer as the 2025 #1 Agency of the Year, is a powerhouse in public relations, influencer marketing, branding strategy, talent booking and special events. Comprising top-tier companies such as 42West, The Door, Shore Fire Media, Elle Communications, Special Projects, The Digital Dept., and Always Alpha, Dolphin Marketing serves a wide range of industries - from entertainment, music and sports to hospitality, fashion and consumer products.

Dolphin Ventures: This division leverages Dolphin's best-in-class cross-marketing acumen and business development relationships to create, launch and/or accelerate innovative ideas and promising products, events and content in our areas of expertise.

Dolphin has also launched "The Pod", a new shareholder loyalty program in partnership with TiiCKER, the world's first and largest shareholder engagement platform. "The Pod" features high-value tiered perks for Dolphin's verified investors, including gift cards and discount codes for brands like Häagen-Dazs, Francis Ford Coppola Wines, Carbone Fine Food, Saysh, and Foster Supply Hospitality. Investors may also receive special access to concerts, movie screenings, and celebrity meet-and-greet opportunities throughout the year.

Dolphin Entertainment shareholders can now visit TiiCKER.com/DLPN to connect their brokerage accounts and claim their perks and VIP experiences.

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 Information

James Carbonara
Partner, Hayden IR
james@haydenir.com
646-755-7412

###

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
As of December 31, 2024 and 2023

		2024				2023
ASSETS
Current
Cash and cash equivalents		$	8,203,842			$	6,432,731
Restricted cash			925,004				1,127,960
Accounts receivable:
Trade, net of allowance of $1,327,808 and $1,456,752, respectively			5,113,157				5,817,615
Other receivables			5,451,697				6,643,960
Other current assets			373,399				701,335
Total current assets			20,067,099				20,723,601
Capitalized production costs, net			594,763				2,295,275
Employee receivable			1,007,418				796,085
Right-of-use assets			4,738,997				5,599,736
Goodwill			21,507,944				25,220,085
Intangible assets, net			10,189,026				11,209,664
Property, equipment and leasehold improvements, net			114,011				194,223
Other long-term assets			218,021				216,305
Total Assets		$	58,437,279			$	66,254,974

LIABILITIES
Current
Accounts payable		$	2,344,272			$	6,892,349
Term loans, current portion			1,686,018				980,651
Revolving line of credit			400,000				400,000
Notes payable, current portion			3,750,000				3,500,000
Contingent consideration			486,000				-
Accrued interest - related party			1,857,986				1,718,009
Accrued compensation - related party			2,625,000				2,625,000
Lease liabilities, current portion			1,919,672				2,192,213
Deferred revenue			341,153				1,451,709
Other current liabilities			11,104,036				7,694,114
Total current liabilities			26,514,137				27,454,045
Noncurrent
Term loans, noncurrent portion			4,782,271				4,501,963
Notes payable, noncurrent portion			3,130,000				3,380,000
Convertible notes payable			5,100,000				5,100,000
Convertible notes payable at fair value			320,000				355,000
Loans from related party			3,225,985				1,107,873
Lease liabilities			3,306,033				4,068,642
Deferred tax liability			394,547				306,691
Warrant liability			-				5,000
Other noncurrent liabilities			18,915				18,915
Total Liabilities			46,791,888				46,298,129

STOCKHOLDERS' EQUITY
Preferred Stock, Series C, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding at December 31, 2024 and 2023			1,000				1,000
Common stock, $0.015 par value, 200,000,000 shares authorized, 11,162,026 and 9,109,766 shares issued and outstanding at December 31, 2024 and 2023, respectively			166,688				136,647
Additional paid in capital			157,692,132				153,430,402
Accumulated deficit			(146,214,429	)			(133,611,204	)
Total Stockholders' Equity			11,645,391				19,956,845
Total Liabilities and Stockholders' Equity		$	58,437,279			$	66,254,974

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the years ended December 31, 2024 and 2023

		2024				2023
Revenues		$	51,684,984			$	43,123,075
Expenses:
Direct costs			3,266,461				946,962
Payroll and benefits			38,123,040				35,030,257
Selling, general and administrative			7,795,610				8,434,549
Acquisition costs			164,044				116,151
Impairment of goodwill			6,671,557				9,484,215
Impairment of intangible assets			-				341,417
Write-off of notes receivables			1,270,000				4,108,080
Change in fair value of contingent consideration			50,000				33,226
Depreciation and amortization			2,382,361				2,253,619
Legal and professional			2,447,083				2,485,096
Total expenses			62,170,156				63,233,572
Loss from operations			(10,485,172	)			(20,110,497	)
Other (expenses) income:
Change in fair value of convertible note			35,000				(11,444	)
Change in fair value of warrant			5,000				10,000
Interest income			11,462				2,877
Interest expense			(2,081,661	)			(2,085,107	)
Total other expense (income), net			(2,030,199	)			(2,083,674	)
Loss before income taxes and equity in losses of unconsolidated affiliates		$	(12,515,371	)		$	(22,194,171	)
Income tax expense			(87,854	)			(53,504	)
Net loss before equity in losses of unconsolidated affiliates			(12,603,225	)			(22,247,675	)
Equity in losses of unconsolidated affiliates			-				(2,149,050	)
Net loss		$	(12,603,225	)		$	(24,396,725	)
Loss per share:
Basic		$	(1.22	)		$	(3.39	)
Diluted		$	(1.22	)		$	(3.39	)
Weighted average number of shares used in per share calculation
Basic			10,306,904				7,206,577
Diluted			10,306,904				7,206,577

Use of Non-GAAP Financial Measures

In order to provide greater transparency regarding our operating performance, the financial results in this press release refer to a non-GAAP financial measure that involves adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management deems are not directly attributable to the Company's core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance.

Adjusted operating income or loss is defined by Dolphin as (loss) income from operations before: (i) depreciation and amortization, (ii) write-off of assets, (iii) impairment of goodwill or intangible assets, (iv) acquisition costs, (v) employee stock compensation, (vi) change in fair value of contingent consideration, (vii) bad debt expense and (viii) and impairment of capitalized production costs.

Management believes that the presentation of operating results using this non-GAAP financial measure provides useful supplemental information for investors by providing them with the non-GAAP financial measure used by management for financial and operational decision making, planning and forecasting and in managing the business. This non-GAAP financial measure does not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered a measure of liquidity and is unlikely to be comparable to non-GAAP financial measures provided by other companies.

Reconciliation of GAAP loss from operations to non-GAAP income from operations

		For the twelve months ended December 31,
		2024				2023
Revenues (GAAP)		$	51,684,984			$	43,123,075
Expenses:
Direct costs			3,266,461				946,962
Payroll and benefits			38,123,040				35,030,257
Selling, general and administrative			7,795,610				8,434,549
Acquisition costs			164,044				116,151
Impairment of goodwill			6,671,557				9,484,215
Impairment of intangible assets			-				341,417
Write-off of notes receivable			1,270,000				4,108,080
Change in fair value of contingent consideration			50,000				33,226
Depreciation and amortization			2,382,361				2,253,619
Legal and professional			2,447,083				2,485,096
Total expenses (GAAP)			62,170,156				63,233,572
Loss from operations (GAAP)		$	(10,485,172	)		$	(20,110,497	)
Adjustments to GAAP measure:
Acquisition costs			164,044				116,151
Impairment of goodwill			6,671,557				9,484,215
Impairment of intangible assets			-				341,417
Write-off of notes receivables			1,270,000				4,108,080
Change in fair value of contingent consideration			50,000				33,226
Depreciation and amortization			2,382,361				2,253,619
Bad debt expense			505,173				919,672
Impairment of capitalized production costs			-				74,412
Stock compensation			364,650				354,961
Income from operations (non-GAAP)		$	922,613			$	(2,424,744	)

SOURCE: Dolphin Entertainment

View the original press release on ACCESS Newswire

FAQ

How much revenue did Dolphin Entertainment (DLPN) generate in 2024?

Dolphin Entertainment generated $51.68 million in revenue for 2024, representing a 20% growth from 2023.

What is the size of CEO Bill O'Dowd's new stock purchase plan for DLPN?

CEO Bill O'Dowd initiated a 10b5-1 plan to purchase $250,000 of DLPN stock, following his $100,000 investment in second half of 2024.

How did Dolphin Entertainment's (DLPN) operating income change in 2024?

DLPN improved from a $2 million loss to a $1 million profit in adjusted operating income, representing a $3 million improvement.

What benefits does DLPN's new shareholder loyalty program 'The Pod' offer?

The Pod offers verified investors tiered perks including gift cards, discount codes for premium brands, and special access to concerts, movie screenings, and celebrity meet-and-greets.