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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 14, 2024

DOLPHIN ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)

Florida 001-38331 86-0787790
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)

 

150 Alhambra Circle, Suite 1200, Coral Gables, Florida 33134
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (305) 774 -0407

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered
Common Stock, $0.015 par value per share   DLPN   The Nasdaq Capital Market

  

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 
 

 
 

Item 2.02.  Results of Operations and Financial Condition. 

On August 14, 2024, Dolphin Entertainment, Inc., a Florida corporation (the “Company”), issued a press release announcing its financial results for the three and six months ended June 30, 2024. A copy of the Company’s earnings press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

The information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d)  Exhibits

 

Exhibit No.   Description
99.1   Press Release dated August 14, 2024
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

             
        DOLPHIN ENTERTAINMENT, INC.
       
Date: August 14, 2024       By:  

/s/ Mirta A. Negrini

            Mirta A. Negrini
            Chief Financial and Operating Officer

 

 

 

Exhibit 99.1

  

Dolphin Reports Record Q2 Revenue of $11.4 Million; H1 2024 Delivers $26.7 Million Revenue and $0.9 Million Adjusted Operating Income

MIAMI, FL / Dolphin (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the second quarter ended June 30, 2024.

Bill O'Dowd, CEO of Dolphin Entertainment commented:

“Dolphin achieved record Q2 revenues this year, setting a solid foundation to exceed $50 million in annual revenues and deliver full year positive Adjusted Operating Income—the key financial metric by which we measure ourselves, and the one that we believe truly reflects our value creation. We are lining up for a strong second half of the year, with the acquisition of Elle Communications to concentrate our work in the Impact PR space, and our anticipated launch of a sports company to complement our market-leading position in entertainment. Furthermore, we expect to close on our next Ventures opportunity, continuing our strategy of generating immediate service revenues while amassing equity stakes typically without capital deployment, positioning us for potentially significant returns as our portfolio grows and matures.

In summary, we believe that our record results provide solid progress towards our Revenue and Adjusted Operating Income goals which, along with new vertical expansion, and our Ventures strategy providing optionality, all together position us well for sustained growth, profitability and success.”

Q2 2024 and Recent Highlights

Total revenue for the quarter ended June 30 2024 was $11.4 million, an increase of 4% over the same period in 2023.
Operating loss of $1.1 million for the quarter ended June 30, 2024 as compared to an operating loss of $7.5 million for the quarter ended June 30, 2023. Operating loss of $0.9 million for the six months ended June 30, 2024 as compared to an operating loss of $10.0 million for the six months ended June 30, 2023.
Adjusted operating loss(1) of $0.1 million for the three months ended June 30, 2024 and $0.05 million for the three months ended June 30, 2023. Adjusted operating income of $0.9 million for the six months ended June 30, 2024 as compared to adjusted operating loss of $1.9 million for the six months ended June 30, 2023.
Operating expenses for the second quarter of 2024 were $12.6 million, including depreciation and amortization of $0.6 million and goodwill impairment of $0.2 million. Operating expense for the second quarter of 2023 were $18.5 million, including depreciation and amortization of $0.5 million and goodwill impairment of $6.5 million.
Net loss for the quarter was $1.6 million including depreciation and amortization of $0.5 million, goodwill impairment of $0.2 million and interest expense of $0.5 million. Net loss for the same period in prior year was $8.0 million including depreciation and amortization of $0.5 million, goodwill impairment of $6.5 million, interest expense of $0.5 million and equity losses in unconsolidated affiliates of $0.1 million.
Loss per share was $0.08 per share based on 19.4 million weighted average shares for basic loss per share and 19.6 million weighted average shares for diluted loss per share for the three months ended June 30, 2024. Loss per share was $0.60 per share based on 13.2 million weighted average shares outstanding for both basic loss per share and fully diluted loss per share for the three months ended June 30, 2023.
Cash and cash equivalents of $9.8 million as of June 30, 2024, as compared to $7.6 million as of December 31, 2023.

 

(1)The Company has provided adjusted operating income information that has not been prepared in accordance with GAAP. This measure is defined below in the section “Use of non-GAAP measures.”

 
 
·Ventures
oDolphin’s film, "Blue Angels" crossed a box office milestone and debuted at #1 on Prime Video over the Memorial Day holiday frame. The film's one week IMAX run grossed $2,082,327 at the box office, including a Top 10 debut with $1,404,820 on its opening weekend.
oLaunched the first product developed by Dolphin in partnership with one of the A-list celebrities on its talent rosters: Staple Gin, a recipe-driven spirit created by Rachael Ray and crafted in New York's Catskills region. Staple Gin, which won Double Gold and a 96 point rating at the 15th Annual New York International Spirits Competition, is now available nationally via e-commerce at www.staplegin.com and in New York State at bars, restaurants and retail destinations via Southern Glazer’s Wine & Spirits, with additional markets to follow. Southern Glazer’s Wine & Spirits is the world’s preeminent distributor of beverage alcohol.
oAnnounced the selection of Oak View Group (OVG), a global leader in venue development, management, premium hospitality services and 360-degree solutions, for the management of operations at Mastercard Midnight Theater.
oLater in the year, we expect to make the announcement of the first of Dolphin's owned or co-owned live events, to occur in late 2024 or in 2025.

 

·42West
oElle Communications, a leading PR agency specializing in social and environmental impact has been added as a new division following its acquisition by Dolphin Entertainment.
oLed multiple award-winning campaigns at the 2024 Tribeca Festival.
Client wins included Best Performance in a U.S. Narrative Feature and Best Screenplay in an International Narrative Feature.
Premiered HBO's new documentary feature "Wise Guy: David Chase and The Sopranos" directed by Alex Gibney.
oFandoms & Franchises spearheaded campaigns for three triple AAA video games-- Funko Fusion, Alien: Rogue Incursion and MultiVersus.
oSupported world premiere of “Megalopolis,” the new feature from longtime client Francis Ford Coppola, and GKIDS' "Ghost • Cat Anzu," at the 77th Cannes Film Festival.
oChampioned clients at the 2024 Television Upfronts. Clients receiving renewals including: “The Boys,” “Conan O'Brien Must Go,” “The Conners,” and “Lopez vs. Lopez.” Additionally, Discovery's “Shark Week” revealed that John Cena will host this year's iteration of the programming event.

 

Shore Fire Media
oDave Matthews Band was successfully nominated for induction into the Rock & Roll Hall of Fame
oKylie Minogue made Time Magazine’s esteemed TIME 100 list of the 100 most influential people in the world for 2024
oWarren Zeiders won Breakthrough Male Video of the Year at the 2024 CMT Awards for his chart-topping hit "Pretty Little Poison," and Brittney Spencer brought the house down performing with Parker Mccollum.
oAnnounced the promotion of five of its staff to key leadership positions - reflecting the company's growth and expanding roster of artists, brands, businesses, talent, creators, events and more since its acquisition by Dolphin Entertainment.

 

 

 
 

 

 

The Door
oPromoted the launch of Newman's Own “Pay What You Want” pizza truck, with all proceeds benefiting the Newman’s Own Foundation.
oFour Twenty Five, a Jean-Georges Restaurant, became one of the newest additions to Michelin Guide.
oSupported Carbone Fine Food’s Launch of 'The Sales Rep' Jacket, the first piece of an exclusive capsule collection, available for a limited time.
oDolphin Entertainment partnered with Rachael Ray, long-time client of The Door, as creative marketing partner for her new Staple Gin. Staple Gin launched in May 2024 with Do Good Spirits, leveraging The Door's expertise in marketing wines, spirits, and culinary brands.
oStaple Gin landed a spot on Vine Pair's “30 Best Gins in the World,” receiving a rating of 94 – the highest score received.

 

The Digital Dept.
oExecuted a comprehensive influencer strategy for Crocs' latest product line, the Getaway Sandals, garnering more than 5 million impressions, a reach of 3.9 million, 248,000 engagements, and over 13,000 link clicks.
oSelected to join Ulta Beauty’s 2024 Beauty Collective, to enhance brand visibility and drive business growth.
oTDD talents Mariyah and Peter Gerber launched their new clothing collection The Match Me Boutique on Amazon.

 

Special Projects
oMade its mark on the CHANELTribeca Festival Arts Dinner, featuring Robert De Niro, Blake Lively, Jude Law, Trevor Noah and Katie Holmes.
oSupported Infatuation’s EatsCon L.A., presented by Chase Sapphire, with Sofia Vergara, Nicole Byer, and Chrissy Teigen.
oLed an incredible night at the Peabody Awards with an star-studded lineup that included Billy Crystal, JJ Abrams, Kumail Nanjiani, Lilly Singh, Mel Brooks, Regina King, and Rose Byrne.

 

 

 
 

 

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

Date: August 14, 2024
Time: 4:30pm ET.
Toll Free: 877-545-0320 International: 973-528-0002 Participant Access Code: 630741
Webcast: https://www.webcaster4.com/Webcast/Page/2225/51040

Replay
Toll Free: 877-481-4010 International: 919-882-2331 Replay Passcode: 51040
Webcast Replay: https://www.webcaster4.com/Webcast/Page/2225/51040

About Dolphin

Dolphin (Nasdaq: DLPN), founded in 1996 by Bill O'Dowd, 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 partnerships 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, this division has become 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, Special Projects, and The Digital Dept., 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. Key ventures include collaborations with Rachael Ray for Staple Gin and Mastercard Midnight Theatre. The company is actively exploring new projects in AI, beauty, and sports.

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. 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

(Unaudited)

 

         
   June 30, 2024   December 31, 2023 
ASSETS          
Current          
Cash and cash equivalents  $8,718,975   $6,432,731 
Restricted cash   1,127,960    1,127,960 
Accounts receivable:          
Trade, net of allowance of $1,499,842 and $1,456,752, respectively   7,707,126    5,817,615 
Other receivables   4,469,209    6,643,960 
Notes receivable   1,135,000     
Other current assets   606,964    701,335 
Total current assets   23,765,234    20,723,601 
           
Capitalized production costs, net   538,231    2,295,275 
Employee receivable   908,085    796,085 
Right-of-use asset   4,638,274    5,599,736 
Goodwill   25,211,206    25,220,085 
Intangible assets, net   10,147,970    11,209,664 
Property, equipment and leasehold improvements, net   148,630    194,223 
Other long-term assets   216,305    216,305 
Total Assets  $65,573,935   $66,254,974 

 

LIABILITIES        
Current        
Accounts payable  $3,196,441   $6,892,349 
Term loan, current portion   1,023,468    980,651 
Notes payable, current portion   3,900,000    3,500,000 
Revolving line of credit   400,000    400,000 
Accrued interest – related party   1,763,779    1,718,009 
Accrued compensation – related party   2,625,000    2,625,000 
Lease liability, current portion   1,959,835    2,192,213 
Deferred revenue   851,402    1,451,709 
Other current liabilities   10,290,241    7,694,114 
Total current liabilities   26,010,166    27,454,045 
           
Term loan, noncurrent portion   3,979,052    4,501,963 
Notes payable   2,980,000    3,380,000 
Convertible notes payable   5,100,000    5,100,000 
Convertible note payable at fair value   290,000    355,000 
Loan from related party   3,217,873    1,107,873 
Lease liability   3,220,449    4,068,642 
Deferred tax liability   329,510    306,691 
Warrant liability       5,000 
Other noncurrent liabilities   18,915    18,915 
Total Liabilities   45,145,965    46,298,129 
           
STOCKHOLDERS’ EQUITY          
Preferred Stock, Series C, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding at June 30, 2024 and December 31, 2024   1,000    1,000 
Common stock, $0.015 par value, 200,000,000 shares authorized, 20,196,416 and 18,219,531 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively   302,947    273,293 
Additional paid-in capital   155,686,452    153,293,756 
Accumulated deficit   (135,562,429)   (133,611,204 
Total Stockholders’ Equity   20,427,970    19,956,845 
Total Liabilities and Stockholders’ Equity  $65,573,935   $66,254,974 

 

 
 

 

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

                 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2024   2023   2024   2023 
                 
Revenues  $11,449,089   $11,024,935   $26,684,981   $20,916,356 
                     
Expenses:                    
Direct costs   216,247    217,245    2,535,474    436,141 
Payroll and benefits   9,195,018    8,677,493    18,769,269    17,732,223 
Selling, general and administrative   1,864,852    2,005,286    3,841,843    3,877,223 
Depreciation and amortization   555,694    543,939    1,108,797    1,077,035 
Impairment of goodwill   190,565    6,517,400    190,565    6,517,400 
Change in fair value of contingent consideration       17,741        33,226 
Legal and professional   546,178    496,570    1,193,959    1,259,847 
Total expenses   12,568,554    18,475,674    27,639,907    30,933,095 
                     
Loss from operations   (1,119,465)   (7,450,739)   (954,926)   (10,016,739)
                     
Other (expenses) income:                    
Change in fair value of convertible note   40,000    4,000    65,000    (6,444)
Change in fair value of warrants       5,000    5,000    5,000 
Interest income   731    103,104    6,600    205,121 
Interest expense   (522,184)   (452,637)   (1,025,821)   (808,507)
Total other (expenses) income, net   (481,453)   (340,533)   (949,221)   (604,830)
                     
Loss before income taxes and equity in losses of unconsolidated affiliates   (1,600,918)   (7,791,272)   (1,904,147)   (10,621,569)
                     
Income tax expense   (23,540)   (33,086)   (47,079)   (60,184)
                     
Net loss before equity in losses of unconsolidated affiliates   (1,624,458)   (7,824,358)   (1,951,226)   (10,681,753)
                     
Equity in losses of unconsolidated affiliates       (134,886)       (246,811)
                     
Net loss  $(1,624,458)  $(7,959,244)  $(1,951,226)  $(10,928,564)
                     
Loss per share:                    
Basic  $(0.08)  $(0.60)  $(0.10)  $(0.85)
Diluted  $(0.08)  $(0.60)  $(0.10)  $(0.85)
                     
Weighted average number of shares outstanding:                    
Basic   19,446,310    13,212,311    18,962,067    12,926,273 
Diluted   19,574,187    13,212,311    19,089,944    12,926,273 

 

 

 
 

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

 

                 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2024   2023   2024   2023 
                 
Revenues (GAAP)  $11,449,089   $11,024,935   $26,684,981   $20,916,356 
                     
Expenses:                    
Direct costs   216,247    217,245    2,535,474    436,141 
Payroll and benefits   9,195,018    8,677,493    18,769,269    17,732,223 
Selling, general and administrative   1,864,852    2,005,286    3,841,843    3,877,223 
Depreciation and amortization   555,694    543,939    1,108,797    1,077,035 
Impairment of goodwill   190,565    6,517,400    190,565    6,517,400 
Change in fair value of contingent consideration       17,741        33,226 
Legal and professional   546,178    496,570    1,193,959    1,259,847 
Total expenses (GAAP)   12,568,554    18,475,674    27,639,907    30,933,095 
                     
Loss from operations (GAAP)   (1,119,465)   (7,450,739)   (954,926)   (10,016,739)
 Adjustments to GAAP measure:                    
                     
Depreciation and amortization   555,694    543,939    1,108,797    1,077,035 
Bad debt expense   82,959    179,253    286,980    255,032 
Impairment of goodwill   190,565    6,517,400    190,565    6,517,400 
Change in fair value of contingent consideration       17,741        33,226 
Stock compensation   153,291    139,648    259,052    214,289 
Adjusted (Loss) income from operations (non-GAAP)   (136,956)   (52,758)   890,468    (1,919,757)

 

 

 

  

 

 

v3.24.2.u1
Cover
Aug. 14, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 14, 2024
Entity File Number 001-38331
Entity Registrant Name DOLPHIN ENTERTAINMENT, INC.
Entity Central Index Key 0001282224
Entity Tax Identification Number 86-0787790
Entity Incorporation, State or Country Code FL
Entity Address, Address Line One 150 Alhambra Circle
Entity Address, Address Line Two Suite 1200
Entity Address, City or Town Coral Gables
Entity Address, State or Province FL
Entity Address, Postal Zip Code 33134
City Area Code 305
Local Phone Number 774 -0407
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol DLPN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false

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