Dolphin Entertainment Reports Q3 2022 Revenue Up 5% YoY to $9.9 Million; Nine-Month 2022 Revenue Up 16% to $29.4 Million

Rhea-AI Summary

Dolphin Entertainment (NASDAQ:DLPN) reported a 5% increase in Q3 2022 revenue, reaching $9.9 million compared to $9.4 million in Q3 2021, on track to exceed $40 million in annual revenue.

However, the company faced a net loss of $1.3 million for the quarter and a working capital surplus of $2.1 million, down from $3.3 million YoY. They acquired Socialyte and launched new marketing initiatives, including the successful NFT collection, Creature Chronicles, selling out in 90 minutes.

Positive

• 5% increase in Q3 2022 revenue to $9.9 million.
• On track to exceed $40 million in annual revenue.
• Acquisition of Socialyte enhances influencer marketing capabilities.
• Successful launch of Creature Chronicles NFT collection, sold out in 90 minutes.

Negative

• Net loss of $1.3 million in Q3 2022 compared to net income of $141,651 in Q3 2021.
• Working capital surplus decreased from $3.3 million in 2021 to $2.1 million in 2022.
• Operating loss remains at $1.1 million, indicating financial strain.

MIAMI, FL / ACCESSWIRE / November 14, 2022 / 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, 2022.

"We are pleased to announce another quarter of YoY revenue growth, and our Q3 and year-to-date performance continues to have Dolphin on track to cross $40.0 million in annual revenue this year," said Bill O'Dowd, CEO of Dolphin Entertainment. "And, in very exciting news, earlier today we added East Coast influencer marketing powerhouse, Socialyte, to our entertainment marketing ‘Super Group.' We believe the combination of Be Social and Socialyte under one roof positions Dolphin as the leading player in influencer marketing within the entertainment industry, complementing our market-leading PR firms, 42West, Shore Fire and The Door."

Mr. O'Dowd continued, "While adding Socialyte to the Dolphin family is certainly today's highlight, our 2.0 initiatives, wherein we take an ownership percentage in what we market, made terrific progress in Q3 and after quarter end. Highlights include: the soft opening Midnight Theatre, selling out our flagship NFT collection in 90-minutes, and partnering with renowned chef Nina Compton to create the cocktail club ShaSha Lounge in New Orleans."

Q3 2022 and Recent Highlights

• Total Q3 2022 revenue increased 5% to $9.9 million as compared to $9.4 million in Q3 2021;
• Operating loss for the quarter ended September 30, 2022, of $1.1 million, includes non-cash items from depreciation and amortization of $415,836, a gain in the change of fair value of contingent consideration of $5,000 and acquisition costs of $315,800 as compared to an operating loss of $1.1 million for the quarter ended September 30, 2021, which included non-cash items from depreciation and amortization of $475,207 and a loss in the change of fair value of contingent consideration of $1.1 million.
• Net loss for the quarter ended September 30, 2022 of $1.3 million includes non-cash items from (i) depreciation and amortization of $415,836, (ii) a gain in the change of fair value of contingent consideration of $5,000, (iii) a gain in the change of fair value of warrants and convertible notes of $55,642 and (iv) acquisition costs of $315,800; compared to net income for the quarter ended September 30, 2021 of $141,651 which includes non-cash items from (i) depreciation and amortization of $475,207, (ii) a loss in the change of fair value of contingent consideration of $1.1 million, iii) a loss in the change of fair value of warrants and convertible notes of $278,923 and (iv) a net gain of $1.7 million from the extinguishment of debt.
• Cash and cash equivalents of $4.5 million as of September 30, 2022 as compared to $7.7 million as of September 30, 2021.
• Working capital surplus as of September 30, 2022, of $2.1 million, compared to a working capital surplus of $3.3 million as of September 30, 2021.
• Acquired East Coast influencer marketing agency Socialyte.
• Dolphin Entertainment Announces Partnership with Award Winning Chef Nina Compton and Sweet Management to Open a New Cocktail Lounge with First Location in New Orleans.
• Dolphin Entertainment's Flagship NFT Collection, Creature Chronicles, Sells Out in 90 Minutes.
• Midnight Theatre Enjoys Soft Opening on September 21 and Partners with Mastercard as Presenting Sponsor.

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

Date: November 14, 2022
Time: 4:30 PM Eastern Time
Toll Free: 800-225-9448 International: 203-518-9708
Participant Access Code: DOLPHIN
Webcast: https://www.webcaster4.com/Webcast/Page/2225/47111

Conference Call Replay Information
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 47111
Webcast Replay: https://www.webcaster4.com/Webcast/Page/2225/47111

About Dolphin Entertainment

Dolphin Entertainment is a leading independent entertainment marketing and production company. Through our subsidiaries 42West, The Door, Shore Fire Media and B/HI (a division of 42West), 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. All three PR firms have been ranked among the most recent Observer's "Power 50" PR Firms in the United States. 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, and has recently entered into a multi-year agreement with IMAX to co-produce feature documentaries. In early 2022, Dolphin launched WCIP (pronounced We Come In Peace), its new marketing, consulting and communications agency focused solely on developing and marketing blockchain, metaverse and Web3 projects and initiatives, for both current and future clients, as well as wholly-owned project investments. 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

ASSETS		As of September 30, 2022			As of December 31, 2021
Current
Cash and cash equivalents		$	4,452,562		$	7,688,743
Restricted cash			1,140,483			541,883
Accounts receivable
Trade, net of allowance of $627,553 and $471,535, respectively			4,757,499			4,513,179
Other receivable			2,061,845			3,583,357
Notes receivable			4,323,153			1,510,137
Other current assets			890,645			450,060
Total current assets			17,626,187			18,287,359
Capitalized production costs, net			1,598,412			137,235
Employee receivable			572,085			366,085
Right-of-use asset			7,894,850			6,129,411
Goodwill			20,021,357			20,021,357
Intangible assets, net			5,116,568			6,142,067
Property, equipment and leasehold improvements, net			315,004			473,662
Other long term assets			2,581,005			1,234,275
Total Assets		$	55,725,468		$	52,791,451
LIABILITIES
Current
Accounts payable		$	1,572,855		$	942,085
Notes payable, current portion			516,036			307,685
Contingent consideration			500,000			600,000
Accrued interest - related party			1,650,635			1,621,437
Accrued compensation - related party			2,625,000			2,625,000
Lease liability, current portion			2,033,780			1,600,107
Deferred revenue			911,970			406,373
Other current liabilities			5,692,600			6,850,584
Total current liabilities			15,502,876			14,953,271
Noncurrent
Notes payable			380,859			868,959
Convertible notes payable			2,400,000			2,900,000
Convertible note payable at fair value			420,613			998,135
Loan from related party			1,107,873			1,107,873
Contingent consideration			205,000			3,684,221
Lease liability			6,581,512			5,132,895
Deferred tax liability			97,879			76,207
Warrant liability			30,000			135,000
Other noncurrent liabilities			18,915			-
Total Liabilities			26,745,527			29,856,561
STOCKHOLDERS' EQUITY
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at September 30, 2022 and December 31, 2021.			1,000			1,000
Common stock, $0.015 par value, 200,000,000 shares authorized, 9,999,052 and 8,020,381 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively.			149,986			120,306
Additional paid in capital			134,755,491			127,247,928
Accumulated deficit			(105,926,536	)		(104,434,344	)
Total Stockholders' Equity		$	28,979,941		$	22,934,890
Total Liabilities and Stockholders' Equity		$	55,725,468		$	52,791,451

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

		Three months ended September 30,								Nine months ended September 30,
		2022				2021				2022				2021
Revenues		$	9,899,013			$	9,399,432			$	29,366,748			$	25,219,793
Expenses:
Direct costs			837,429				991,708				2,941,044				2,578,295
Payroll and benefits			7,030,814				5,875,755				20,947,531				16,770,091
Selling, general and administrative			1,663,288				1,519,812				4,644,264				4,234,309
Acquisition costs			315,800				-				315,800				22,907
Depreciation and amortization			415,836				475,207				1,248,621				1,436,189
Change in fair value of contingent consideration			(5,000	)			1,110,000				(1,439,778	)			1,310,000
Legal and professional			774,613				498,661				2,317,800				1,301,267
Total expenses			11,032,780				10,471,143				30,975,282				27,653,058
Loss from operations			(1,133,767	)			(1,071,711	)			(1,608,534	)			(2,433,265	)
Other (expenses) income:
Gain on extinguishment of debt			-				1,733,400				-				2,689,010
Loss on disposal of fixed assets			-				-				-				(48,461	)
Change in fair value of convertible note			45,642				(223,923	)			577,522				(826,398	)
Change in fair value of warrants			10,000				(55,000	)			105,000				(2,552,877	)
Change in fair value of put rights			-				-				-				(71,106	)
Interest expense			(126,147	)			(241,115	)			(400,884	)			(576,146	)
Total other (expenses) income, net			(70,505	)			1,213,362				281,638				(1,385,978	)
(Loss) income before income taxes and equity in losses of unconsolidated affiliates			(1,204,272	)			141,651				(1,326,896	)			(3,819,243	)
Income tax (expense) benefit			(7,224	)			-				(21,672	)			38,851
Net (loss) income before equity in losses of unconsolidated affilates			(1,211,496	)			141,651				(1,348,568	)			(3,780,392	)
Equity in losses of unconsolidated affiliates			(100,223	)			-				(143,623	)			-
Net (loss) income		$	(1,311,719	)		$	141,651			$	(1,492,191	)		$	(3,780,392	)
(Loss) earnings per share - Basic		$	(0.14	)		$	0.02			$	(0.16	)		$	(0.50	)
(Loss) earnings per share - Diluted		$	(0.14	)		$	0.02			$	(0.23	)		$	(0.50	)
Weighted average number of shares used in per share calculation
Basic			9,664,681				7,740,085				9,307,830				7,551,974
Diluted			9,793,715				7,740,085				9,437,807				7,551,974

SOURCE: Dolphin Entertainment Inc.

View source version on accesswire.com:
https://www.accesswire.com/725606/Dolphin-Entertainment-Reports-Q3-2022-Revenue-Up-5-YoY-to-99-Million-Nine-Month-2022-Revenue-Up-16-to-294-Million

FAQ

What were Dolphin Entertainment's Q3 2022 financial results?

Dolphin Entertainment reported a 5% increase in revenue to $9.9 million, but posted a net loss of $1.3 million.

How is Dolphin Entertainment performing year-to-date in 2022?

Dolphin Entertainment is on track to exceed $40 million in annual revenue for 2022.

What significant acquisition did Dolphin Entertainment make recently?

Dolphin Entertainment acquired Socialyte, an East Coast influencer marketing agency.

What was the outcome of Dolphin's NFT collection launch?

Dolphin's Creature Chronicles NFT collection sold out in 90 minutes.

What does the working capital surplus of Dolphin Entertainment indicate?

As of September 30, 2022, Dolphin's working capital surplus was $2.1 million, down from $3.3 million in 2021, indicating a reduction in liquidity.