Dolphin Entertainment Q4 Revenue Grows to $6.7 Million and "Dolphin 2.0" Commences with 2021 Launch of NFTs Division and First NFTs Partnership
Dolphin Entertainment (NASDAQ:DLPN) announced its financial results for Q4 2020, reporting revenue growth to approximately $6.7 million, up from $6.2 million in Q4 2019. For the full year, revenue totaled $24.1 million, a slight decline from $25.0 million in 2019. The company significantly improved its working capital deficit by over 80%, reducing it from $15.6 million to $3 million. With cash equivalents increasing from $2.2 million to $7.9 million, Dolphin also launched a new NFT division and signed a partnership with Hall of Fame Resort & Entertainment.
- Q4 revenue rose to $6.7 million from $6.2 million in 2019.
- Improved working capital deficit by over 80%, from $15.6 million to $3 million.
- Cash on hand more than tripled from $2.2 million in 2019 to $7.9 million.
- Launched a new NFT division targeting various entertainment sectors.
- Signed a partnership with Hall of Fame Resort & Entertainment for NFT initiatives.
- Full year revenue decreased from $25.0 million in 2019 to $24.1 million in 2020.
- Operating loss for 2020 was $2.5 million, though improved from $4.0 million in 2019.
MIAMI, FL / ACCESSWIRE / April 15, 2021 / 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, 2020.
"Dolphin 1.0, our core investment strategy to form and operate a best-in-class entertainment marketing ‘Super Group,' had a successful 2020 with the highly strategic acquisition of influencer marketing agency, Be Social," said Bill O'Dowd, CEO of Dolphin Entertainment. "Momentum continued into 2021, with the acquisition of BH/I, a leading entertainment content, gaming and Esports PR firm, expanding Dolphin into exciting new entertainment verticals, and greatly enhancing cross-sell opportunities."
Mr. O'Dowd continued, "Our financials reflect the strength of our Super Group. Even during the pandemic, with movie theaters, live music venues, restaurants and hotels closed nationwide, Q4 revenue grew to approximately
Mr. O'Dowd added, "We are a company that is growing stronger and, with the further acquisitions of Be Social and B/Hi, we believe we have tremendous scale across the major verticals of entertainment. So, we have launched Dolphin 2.0. By leveraging our unique & powerful entertainment marketing Super Group, Dolphin will now start owning some of what we are marketing. To that end, in March, we formed a new division dedicated to designing, producing, releasing and promoting Non-Fungible Tokens (NFTs) for our clients across the film, television, music, gaming, culinary, and sports industries. Next, we signed our first NFTs partnership with Hall of Fame Resort & Entertainment Company to begin offering NFTs to maximize the value of original media content, with a focus on collectibles and sports entertainment. We are enthusiastic about our opportunities within the NFT space generally, and our partnership with Hall of Fame specifically. And, it's important to note, NFTs represent only 1 of the various Dolphin 2.0 initiatives we expect to announce this year. We could not be more excited."
Highlights
- Total Q4 revenue increased to
$6.7 million , compared to$6.4 million in Q4 2019; full year 2020 revenue was$24.1 million , compared to$25.0 million in 2019.
- Operating loss for the year ended December 31, 2020 of
$2.5 million , included non-cash items from depreciation and amortization of$2.0 million and an impairment of investment asset of$220,000 , as compared to operating loss of$4.0 million , which included non-cash items from depreciation and amortization of$1.9 million , for the same period in the prior year.
- Net loss for the year ended December 31, 2020 of
$1.9 million , which included the non-cash items from depreciation and amortization of$2.0 million and an impairment of investment asset of$220,000 , compared to net loss of$2.3 million , which included non-cash items from depreciation and amortization of$1.9 million , for the same period in the prior year.
- Cash and cash equivalents of
$7.9 million as of December 31, 2020, compared to$2.2 million as of December 31, 2019.
- Working Capital of (
$3.0 million ) as of December 31, 2020, compared to ($15.6 million ) as of December 31, 2019.
- Dolphin Entertainment Launched Non-Fungible Tokens (NFTs) Creation and Marketing Division
- Dolphin Entertainment Signed its 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
- 42West was involved in various capacities with 13 films that earned a total of 32 Academy Award nominations.
- 42West enjoyed an incredible night at the 63rd Grammys
- Shore Fire clients performed, presented and won at the 2021 Grammys
- Dolphin Entertainment Acquired B/HI (Formerly Bender/Helper Impact)
- Dolphin Entertainment recognized in New York Observer's PR Power List 2020
- The Door & Be Social launch culinary influencer marketing Initiative for brands looking to create "Foodie" buzz on social media
- 42West ranked by Forbes among America's best PR agencies 2021
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: Thursday, April 15, 2021, at 4:30pm ET
Toll-Free: 877-407-0782
International: 201-689-8567
Webcast: https://www.webcaster4.com/Webcast/Page/2225/40860
Conference Call Replay Information
Toll-Free: 877-481-4010
Reference ID: 40860
Webcast replay: https://www.webcaster4.com/Webcast/Page/2225/40860
About Dolphin Entertainment, Inc.
Dolphin Entertainment 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, epicurean, and technology industries. The NFTs division is comprised of executives across all six of Dolphin's wholly-owned subsidiaries blending their collective 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
As of December 31, 2020 and 2019
(unaudited)
ASSETS | 2020 | 2019 | ||||||
Current | ||||||||
Cash and cash equivalents | $ | 7,923,280 | $ | 2,196,249 | ||||
Restricted cash | 714,096 | 714,089 | ||||||
Accounts receivable, net | 5,027,101 | 3,581,155 | ||||||
Other current assets | 231,890 | 372,872 | ||||||
Total current assets | 13,896,367 | 6,864,365 | ||||||
Capitalized production costs | 271,139 | 203,036 | ||||||
Right of use assets | 7,106,279 | 7,435,903 | ||||||
Intangible assets, net of accumulated amortization of | 7,452,059 | 8,361,539 | ||||||
Goodwill | 19,627,856 | 17,947,989 | ||||||
Property, equipment and leasehold improvements, net | 800,071 | 1,036,849 | ||||||
Investments | - | 220,000 | ||||||
Deposits and other assets | 198,180 | 502,045 | ||||||
Total Assets | $ | 49,351,951 | $ | 42,571,726 | ||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable | $ | 1,190,184 | $ | 832,089 | ||||
Line of credit | - | 1,700,390 | ||||||
Term loan | 900,292 | - | ||||||
Debt | - | 3,311,198 | ||||||
Notes payable | 846,749 | 288,237 | ||||||
Convertible notes payable | - | 1,681,110 | ||||||
Convertible notes payable at fair value | 580,000 | - | ||||||
Paycheck Protection Porgram loans | 582,438 | - | ||||||
Loan from related party | 1,107,873 | 1,810,373 | ||||||
Accrued interest - related party | 2,018,025 | 1,935,949 | ||||||
Put rights | 1,544,029 | 2,879,403 | ||||||
Accrued compensation - related party | 2,625,000 | 2,625,000 | ||||||
Lease liability | 1,791,773 | 1,610,022 | ||||||
Contract liability | 1,855,209 | 309,880 | ||||||
Other current liabilities | 1,810,938 | 3,437,860 | ||||||
Total current liabilities | 16,852,510 | 22,421,511 | ||||||
Noncurrent | ||||||||
Notes payable | 426,645 | 1,074,122 | ||||||
Convertible notes payable | 1,445,000 | 1,729,618 | ||||||
Convertible notes payable at fair value | 947,293 | - | ||||||
Paycheck Protection Program loans | 2,517,431 | - | ||||||
Put rights | - | 124,144 | ||||||
Contingent consideration | 530,000 | 330,000 | ||||||
Lease liability | 5,964,275 | 6,386,209 | ||||||
Warrant liability | 450,000 | 189,590 | ||||||
Derivative liability | - | 170,000 | ||||||
Other noncurrent liabilities | 550,000 | 570,000 | ||||||
Total noncurrent liabilities | 12,830,644 | 10,573,683 | ||||||
Total Liabilities | 29,683,154 | 32,995,194 | ||||||
Commitments and contingencies (Note 23) | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, | 99,281 | 53,679 | ||||||
Preferred Stock, Series C, | 1,000 | 1,000 | ||||||
Additional paid in capital | 117,540,557 | 106,680,619 | ||||||
Accumulated deficit | (97,972,041 | ) | (97,158,766 | ) | ||||
Total Stockholders' Equity | $ | 19,668,797 | $ | 9,576,532 | ||||
Total Liabilities and Stockholders' Equity | $ | 49,351,951 | $ | 42,571,726 | ||||
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the years ended December 31, 2020 and 2019
(unaudited)
| 2020 | 2019 | |||||||
Revenues: | ||||||||
Entertainment publicity and marketing | $ | 23,946,680 | $ | 24,915,261 | ||||
Content production | 107,800 | 86,606 | ||||||
Total revenues | 24,054,480 | 25,001,867 | ||||||
Expenses: | ||||||||
Direct costs | 2,576,709 | 5,043,903 | ||||||
Selling, general and administrative | 4,822,130 | 3,799,765 | ||||||
Depreciation and amortization | 2,030,226 | 1,946,960 | ||||||
Legal and professional | 1,191,231 | 1,560,483 | ||||||
Payroll | 15,990,702 | 16,735,911 | ||||||
Total expenses | 26,610,998 | 29,087,022 | ||||||
Loss from operations | (2,556,518 | ) | (4,085,155 | ) | ||||
Other Income (expenses): | ||||||||
Gain on extinguishment of debt | 3,311,198 | 711,718 | ||||||
Loss on deconsolidation of Max Steel VIE | (1,484,591 | ) | - | |||||
Acquisition costs | (93,042 | ) | (106,015 | ) | ||||
Change in fair value of put rights | 1,745,418 | 2,880,520 | ||||||
Change in fair value of contingent consideration | (55,000 | ) | 193,557 | |||||
Change in fair value of convertible notes and derivative liabilities | (534,627 | ) | 10,000 | |||||
Change in fair value of warrants | (275,445 | ) | 194,482 | |||||
Interest expense and debt amortization | (2,133,660 | ) | (2,545,206 | ) | ||||
Total other income, net | 480,251 | 1,339,056 | ||||||
Loss before income taxes | $ | (2,076,267 | ) | $ | (2,746,099 | ) | ||
Income tax benefit | 137,075 | 418,199 | ||||||
Net loss | $ | (1,939,192 | ) | $ | (2,327,900 | ) | ||
Loss per share - Basic | $ | (0.35 | ) | $ | (0.70 | ) | ||
Loss per share - Diluted | $ | (0.58 | ) | $ | (1.20 | ) | ||
Weighted average number of shares used in per share calculation | ||||||||
Basic | 5,619,969 | 3,304,585 | ||||||
Diluted | 6,382,937 | 4,285,101 | ||||||
SOURCE: Dolphin Entertainment, Inc.
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