"Dolphin 2.0" Commences with Q1 Formation of NFTs Division and Q2 Launch of NFT Collections for First Two Verticals: Sports and Culinary
MIAMI, FL / ACCESSWIRE / May 17, 2021 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the first quarter ended March 31, 2021.
"We are pleased to announce record quarterly revenue, breaking $7 million," states Dolphin Entertainment CEO, Bill O'Dowd. "Furthermore, our Super Group of Entertainment Marketing and Publicity companies welcomed a new addition to the family in January - B/HI, a leading PR firm for entertainment consumer products, video gaming and eSports. Now a division of 42West, the company is thriving and we couldn't be happier about the cross-selling that is already well under way."
"The first quarter also witnessed our planned expansion into Dolphin 2.0, where we will own some of the assets we are promoting. We launched our NFT Division in March, and announced our partnership with Hall of Fame Resort & Entertainment Company. And, today, our first NFTs together have hit the market, featuring the iconic Tim Brown, one of the greatest wide receivers to ever play the game."
"We also announced the culinary world will represent our second vertical for NFTs. We believe our upcoming recipe card collection will be the first major entry in the culinary NFT space, and is launching with several of the most recognized chefs in the United States. Also, we dropped today a collection of NFTs from world-famous artist Romero Britto, in collaboration with our long-time client, the South Beach Wine and Food Festival."
"We will continue to add NFT programs across all aspects of pop culture, as well as additional partnerships within the verticals we have already launched. Furthermore, we continue to expect five additional Dolphin 2.0 initiatives will be announced this year."
- Total Q1 revenue increased to $7.2 million, compared to $6.6 million in Q1 2020;
- Operating loss for the quarter ended March 31, 2021 of $1.2 million, included non-cash items from depreciation and amortization of $482,712 as compared to operating loss of $870,859, which included non-cash items from depreciation and amortization of $521,003, for the same period in the prior year.
- Cash and cash equivalents of $7.1 million as of March 31, 2021, compared to $7.9 million as of December 31, 2020.
- Net loss for the quarter ended March 31, 2021 of $5.3 million, which included $4.4 million in non-cash items stemming from depreciation and amortization of $482,712 and a negative change in fair value of derivative liabilities, warrants, put rights and contingent consideration of $3.9 million, compared to net income of $2.1 million, which included non-cash items from depreciation and amortization of $521,003, offset by a non-cash positive change in fair value of derivative liabilities, warrants, put rights and contingent consideration items in the amount of $1.8 million, for the same period in the prior year.
- Dolphin Entertainment Acquired B/HI (Formerly Bender/Helper Impact)
- 42West was involved in various capacities with 13 films that earned a total of 32 Academy Award nominations and won six Oscars.
- Shore Fire clients performed, presented and won at the 2021 Grammys
- Dolphin Entertainment Launched its Non-Fungible Tokens (NFTs) Division
- Dolphin Entertainment's NFTs Division entered its 1st vertical, Sports, with 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
- Dolphin Entertainment's NFTs Division entered its 2nd vertical, Culinary, with NFT collectible recipe card system, launching with top chefs throughout the United States; Partnered for NFT collection with world renowned artist Romero Britto, in celebration of the 20th anniversary of South Beach Wine & Food Festival.
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.DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(unaudited)
|ASSETS||As of March 31,|
|As of December 31,|
|Cash and cash equivalents||$||7,111,717||$||7,923,280|
|Accounts receivable, net||4,708,359||5,027,101|
|Other current assets||323,020||231,890|
|Total current assets||12,857,192||13,896,367|
|Capitalized production costs, net||325,866||271,139|
|Right of use assets||7,586,271||7,106,279|
|Intangible assets, net of accumulated amortization of$ 6,142,939 and $5,747,941, respectively.||7,327,061||7,452,059|
|Property, equipment and leasehold improvements, net||736,996||800,071|
|Deposits and other assets||232,253||198,180|
|Convertible notes payable at fair value||-||580,000|
|Paycheck Protection Program loan||582,438||582,438|
|Loan from related party||1,107,873||1,107,873|
|Accrued interest - related party||1,875,161||1,783,121|
|Accrued compensation - related party||2,625,000||2,625,000|
|Other current liabilities||2,314,912||2,045,842|
|Total current liabilities||16,886,441||16,852,510|
|Convertible notes payable||150,000||1,445,000|
|Convertible notes payable at fair value||1,298,740||947,293|
|Paycheck Protection Program loan||2,517,431||2,517,431|
|Other noncurrent liabilities||200,000||550,000|
|Total noncurrent liabilities||11,790,828||12,830,644|
|Commitments and contingencies (Note 19)|
|Common stock, $0.015 par value, 40,000,000 shares authorized, 7,605,477 and 6,618,785, respectively, issued and outstanding at March 31, 2021 and December 31, 2020||114,080||99,281|
|Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at March 31, 2021 and December 31, 2020||1,000||1,000|
|Additional paid in capital||123,615,767||117,540,557|
|Total Stockholders' Equity||$||20,486,821||$||19,668,797|
|Total Liabilities and Stockholders' Equity||$||49,164,090||$||49,351,951|
|For the three months ended|
|Production and distribution||-||-|
|Selling, general and administrative||1,482,471||1,120,616|
|Depreciation and amortization||482,712||521,003|
|Legal and professional||344,607||284,440|
|Loss from operations||(1,194,940||)||(870,859||)|
|Other Income (expenses):|
|(Loss) gain on extinguishment of debt||(57,363||)||3,259,865|
|Loss on deconsolidation of Max Steel VIE||-||(1,484,591||)|
|Change in fair value of convertible notes and derivative liabilities||(871,449||)||147,459|
|Change in fair value of warrants||(2,562,877||)||72,515|
|Change in fair value of put rights||(71,106||)||1,470,740|
|Change in fair value of contingent consideration||(365,000||)||103,000|
|Interest expense and debt amortization||(165,194||)||(624,282||)|
|Total other (expense) income, net||(4,115,896||)||2,944,706|
|(Loss) income before income taxes||$||(5,310,836||)||$||2,073,847|
|Income tax benefit||38,851||-|
|Net (loss) income||$||(5,271,985||)||$||2,073,847|
|(Loss) earnings per share - Basic||$||(0.73||)||$||0.40|
|(Loss) earnings per share - Diluted||$||(0.73||)||$||0.05|
|Weighted average number of shares used in per share calculation|
SOURCE: Dolphin Entertainment
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