U.S. Markets open in 4 hrs 23 mins
  • S&P Futures

    4,170.00
    +12.25 (+0.29%)
     
  • Dow Futures

    34,325.00
    +69.00 (+0.20%)
     
  • Nasdaq Futures

    13,400.00
    +96.50 (+0.73%)
     
  • Russell 2000 Futures

    2,232.80
    +7.30 (+0.33%)
     
  • Crude Oil

    66.62
    +0.35 (+0.53%)
     
  • Gold

    1,869.70
    +2.10 (+0.11%)
     
  • Silver

    28.63
    +0.36 (+1.26%)
     
  • EUR/USD

    1.2220
    +0.0064 (+0.5255%)
     
  • 10-Yr Bond

    1.6400
    0.0000 (0.00%)
     
  • Vix

    19.32
    +0.51 (+2.71%)
     
  • GBP/USD

    1.4218
    +0.0081 (+0.5701%)
     
  • USD/JPY

    108.8800
    -0.3200 (-0.2930%)
     
  • BTC-USD

    44,909.03
    -285.69 (-0.63%)
     
  • CMC Crypto 200

    1,248.26
    +50.34 (+4.20%)
     
  • FTSE 100

    7,058.74
    +25.89 (+0.37%)
     
  • Nikkei 225

    28,406.84
    +582.01 (+2.09%)
     

Dolphin Entertainment Announces Second Quarter 2020 Results

  • Oops!
    Something went wrong.
    Please try again later.
·10 min read
  • Oops!
    Something went wrong.
    Please try again later.

NEW YORK, NY and LOS ANGELES, CA / ACCESSWIRE / August 17, 2020 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading independent entertainment marketing and production company, reports its operating results for the three months ended June 30, 2020.

Bill O'Dowd, CEO of Dolphin Entertainment, commented: "This is a great day at Dolphin Entertainment. Not only have our second quarter results bested both internal and analyst expectations, but we have acquired leading influencer marketing firm Be Social, the fifth member of our Entertainment Publicity and Marketing Super Group. It is no surprise that both content and brands are increasingly marketed online. And, correspondingly, PR campaigns are often won or lost through awareness and "buzz," or the lack thereof, in social media. Having the ability to design and execute best-in-class influencer marketing and social media campaigns to complement the PR strategies created by 42West, Shore Fire Media and The Door was by far our highest priority this year. By combining Be Social with our three industry-leading PR firms, we have added tremendous capabilities, and cross-selling opportunities, to an already powerful group."

"We now have five of the six companies in place, on schedule, from the three-year plan we laid out upon joining NASDAQ in December, 2017," continued O'Dowd. "And, we are thrilled that all five companies were our first choice in their respective verticals. It is on days like today, when we add a new member to the Dolphin family, that we most feel a surge in the momentum behind the unique platform we are building."

Highlights

  • Total revenue, fully derived from the Company's core entertainment and publicity segment, was $5,194,725 for the three months ended June 30, 2020 as compared to $6,273,983 in the same period in the prior year.

  • Operating loss for the three months ended June 30, 2020 of $179,038, which included non-cash items from depreciation and amortization of $496,461, as compared to operating loss of $1,202,079 including non-cash items for depreciation and amortization of $478,560 for the same period in the prior year.

  • Net Loss for the three months ended June 30, 2020 of $2,943,601, which included non-cash items from net losses from changes in fair value of liabilities in the amount of $1,705,869 and debt amortization in the amount of $856,863, compared to net loss of $796,650 which included non-cash items from net gains from changes in fair value of liabilities in the amount of $723,116 for the same period in the prior year.

  • 42West's extraordinary range of client work for 33 programs and individuals earned a total of 145 Emmy nominations. This includes the HBO limited series "Watchmen," which led all programs with 26 nominations including Outstanding Drama Series, as well as Pop TV's comedy "Schitts Creek," a 15-time nominee including nods for Outstanding Comedy Series and all four members of its principal cast (Eugene Levy, Catherine O'Hara, Daniel Levy and Annie Spencer).

  • The Door launched "Safe Eats" solution for New York restaurants:. Safe Eats, a 501c3 non-profit organization, answers the call of restaurant owners and consumers during this pandemic by providing the industry's most detailed toolkit for safe dining along with New York's very first trustmark for indoor/outdoor dining, takeout and delivery. Safe Eats provides a continuously updated COVID-19 operator manual, preferred pricing for PPE, and a Safe Eats trustmark/window decal signifying their commitment to public safety.

  • The Door announced openings and re-openings of multiple hotel clients including the opening of both Virgin Hotels Nashville and Kenoza Hall located in the Catskills region of New York, as well as the re-opening of Virgin Hotels Chicago and the Viceroy Santa Monica, which is just completing a $21 million renovation.

  • Viewpoint Creative completed the strategic design and full-service production of a branding campaign for long-time client Direxion, to introduce a new line-up of strategic weight ETFs. Using consistent brand and animation styles, the Direxion campaign has launched with video pre-rolls, banner ads and in print. The featured products include Direxion's FLYT (Flight to safety), ESNG (ESG) and QMJ (S&P 500 High minus low quality) products. The FLYT ETF, launched into the teeth of the COVID-19 market drawdown, has rapidly achieved success, with over $30mm in acquired assets since its debut.

  • Dolphin Entertainment acquired the rights to Special Delivery, an original screenplay written by Brian Hurwitz, and has attached Vaughn Stein to direct. Emerson Davis, Dolphin's Vice-President of Development and Production, is handling development of the project and will oversee production.

  • Viewpoint Creative announced the selection of "Worcester 6: Heroes Remembered" into the Boston International Film Festival. Viewpoint Creative conceived, shot, and produced the 5-part short-form digital series on behalf of The Leary Firefighters Foundation to honor the six heroic firefighters that perished in the Worcester Cold Storage Warehouse Fire twenty years ago.

  • 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.

  • Today, August 17, 2020, announced a major expansion of entertainment marketing capabilities through the acquisition of influencer marketing leader, Be Social. Founded over 8 years ago by Ali Grant, Be Social is a Los Angeles-based digital communications group representing both brands and highly-engaged digital influencers. Be Social has worked with hundreds of leading beauty, fashion and lifestyle brands on influencer campaigns, including H&M, Nordstrom and Disney, oftentimes alongside the roster of digital talent they represent, which include many of the most recognized influencers across social media.

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: August 17, 2020, at 4:30 p.m. ET
Toll-Free: 877-407-0782
International: 201-689-8567
Live Webcast: https://www.webcaster4.com/Webcast/Page/2225/36620

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: 36620

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.

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

ASSETS

As of June 30, 2020

As of December 31,
2019

Current

Cash and cash equivalents

$

12,560,206

$

2,196,249

Restricted cash

714,089

714,089

Accounts receivable, net

2,521,885

3,581,155

Other current assets

187,504

372,872

Total current assets

15,983,684

6,864,365

Capitalized production costs

274,575

203,036

Right-of-use assets

6,567,094

7,435,903

Intangible assets, net of accumulated amortization of $5,130,784 and $4,299,794, respectively.

7,530,549

8,361,539

Goodwill

18,072,825

17,947,989

Property, equipment and leasehold improvements, net

858,098

1,036,849

Investments

220,000

220,000

Deposits and other assets

239,746

502,045

Total Assets

$

49,746,571

$

42,571,726

LIABILITIES

Current

Accounts payable

$

966,096

$

832,089

Other current liabilities

2,667,019

3,387,130

Line of credit

-

1,700,390

Term loan

1,100,357

-

Put Rights

2,663,237

2,879,403

Accrued compensation

2,625,000

2,625,000

Accrued interest

2,071,073

1,986,679

Debt

-

3,311,198

Paycheck Protection Program loan

1,041,997

-

Loan from related party

1,107,873

1,107,873

Lease liability

1,515,458

1,610,022

Contract liability

370,466

309,880

Convertible notes payable

802,500

2,383,610

Convertible notes payable at fair value

740,000

-

Notes payable

692,743

288,237

Total current liabilities

18,363,819

22,421,511

Noncurrent

Put Rights

-

124,144

Convertible notes payable

195,000

1,100,000

Convertible notes payable at fair value

1,654,522

629,618

Warrants Liability

585,559

189,590

Derivative liability

-

170,000

Notes payable

625,429

1,074,122

Paycheck Protection Program loan

1,753,703

-

Contingent consideration

800,000

330,000

Lease liability

5,659,094

6,386,209

Other noncurrent liabilities

570,000

570,000

Total noncurrent liabilities

11,843,307

10,573,683

Total Liabilities

30,207,126

32,995,194

STOCKHOLDERS' EQUITY

Common stock, $0.015 par value, 200,000,000 shares authorized, 31,608,903 and 17,892,900, respectively, issued and outstanding at June 30, 2020 and December 31, 2019.

474,142

268,402

Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at June 30, 2020 and December 31, 2019.

1,000

1,000

Additional paid in capital

115,966,906

106,465,896

Accumulated deficit

(96,902,603

)

(97,158,766

)

Total Stockholders' Equity

$

19,539,445

$

9,576,532

Total Liabilities and Stockholders' Equity

$

49,746,571

$

42,571,726

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
For the three and six months ended June 30, 2020 and 2019

For the three months ended

For the six months ended

June 30,

June 30,

2020

2019

2020

2019

Revenues:

Entertainment publicity and marketing

$

5,194,725

$

6,273,983

$

11,828,525

$

12,523,890

Content production

-

-

-

78,990

Total revenues

5,194,725

6,273,983

11,828,525

12,602,880

Expenses:

Direct costs

656,849

1,279,657

1,285,361

2,467,076

Selling, general and administrative

978,527

1,071,460

2,223,345

1,859,623

Depreciation and amortization

496,461

478,560

1,017,464

960,203

Legal and professional

362,853

449,061

572,314

832,732

Payroll

2,879,073

4,197,324

7,779,939

8,510,486

Total expenses

5,373,763

7,476,062

12,878,423

14,630,120

Loss before other income (expenses)

(179,038

)

(1,202,079

)

(1,049,898

)

(2,027,240

)

Other income (expenses):

Gain (loss) on extinguishment of debt

-

-

3,259,866

(21,287

)

Change in fair value of convertible notes and derivative liabilities

(696,420

)

30,000

(548,961

)

30,000

Loss on deconsolidation of Max Steel VIE

-

-

(1,484,591

)

-

Change in fair value of warrants

(483,519

)

81,766

(411,004

)

81,766

Change in fair value of put rights

47,070

251,350

1,517,810

1,778,376

Change in fair value of contigent consideration

(573,000

)

360,000

(470,000

)

90,000

Interest expense and debt amortization

(1,058,694

)

(317,687

)

(1,682,976

)

(605,657

)

Total other income (expense)

(2,764,563

)

405,429

180,144

1,353,198

Net loss

$

(2,943,601

)

$

(796,650

)

$

(869,754

)

$

(674,042

)

Loss per share - Basic

$

(0.12

)

$

(0.05

)

$

(0.04

)

$

(0.04

)

Loss per share - Diluted

$

(0.12

)

$

(0.05

)

$

(0.09

)

$

(0.12

)

Weighted average number of shares used in per share calculation

Basic

23,596,206

15,969,926

21,818,711

15,957,085

Diluted

25,299,336

19,172,087

26,071,775

19,671,124

CONTACT:

James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com

SOURCE: Dolphin Entertainment, Inc.



View source version on accesswire.com:
https://www.accesswire.com/602024/Dolphin-Entertainment-Announces-Second-Quarter-2020-Results