MIAMI, FL / ACCESS Newswire / April 3, 2025 / Dolphin (NASDAQ:DLPN), a leading entertainment marketing and content production company, today announced that CEO Bill O'Dowd has initiated a 10b5-1 trading plan to purchase an initial $250,000 of the Company's common stock, building upon his $100,000 investment in Dolphin in the second half of 2024.
"The best is yet to come for Dolphin," said CEO Bill O'Dowd. "In 2024, our revenues grew 20% to nearly $52 million, and we swung from a $2 million loss to a $1 million profit in adjusted operating income - a $3 million improvement. Despite these achievements, our stock trades below any of our 2024 quarterly revenues, presenting a compelling opportunity."
Mr. O'Dowd added, "Initiating this 10b5-1 plan to purchase additional shares underscores my confidence in our company's future and the significant potential I see in our stock at current levels. I am purchasing this stock because I firmly believe Dolphin's equity is deeply undervalued by the market."
ABOUT DOLPHIN
Dolphin (NASDAQ:DLPN) was founded in 1996 by Bill O'Dowd and 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 partners 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, the Marketing division, which was just named by Observer as the 2025 #1 Agency of the Year, is 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 Media, Elle Communications, Special Projects, The Digital Dept., and Always Alpha, 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.
Dolphin has also launched "The Pod", a new shareholder loyalty program in partnership with TiiCKER, the world's first and largest shareholder engagement platform. "The Pod" features high-value tiered perks for Dolphin's verified investors, including gift cards and discount codes for brands like Häagen-Dazs, Francis Ford Coppola Wines, Carbone Fine Food, Saysh, and Foster Supply Hospitality. Investors may also receive special access to concerts, movie screenings, and celebrity meet-and-greet opportunities throughout the year.
Dolphin Entertainment shareholders can now visit TiiCKER.com/DLPN to connect their brokerage accounts and claim their perks and VIP experiences.
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 Information
James Carbonara
Partner, Hayden IR
james@haydenir.com
646-755-7412
###
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
As of December 31, 2024 and 2023
|
2024 |
|
|
2023 |
|
|||
ASSETS |
|
|
|
|
|
|
||
Current |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
8,203,842 |
|
|
$ |
6,432,731 |
|
Restricted cash |
|
|
925,004 |
|
|
|
1,127,960 |
|
Accounts receivable: |
|
|
|
|
|
|
|
|
Trade, net of allowance of $1,327,808 and $1,456,752, respectively |
|
|
5,113,157 |
|
|
|
5,817,615 |
|
Other receivables |
|
|
5,451,697 |
|
|
|
6,643,960 |
|
Other current assets |
|
|
373,399 |
|
|
|
701,335 |
|
Total current assets |
|
|
20,067,099 |
|
|
|
20,723,601 |
|
|
|
|
|
|
|
|
|
|
Capitalized production costs, net |
|
|
594,763 |
|
|
|
2,295,275 |
|
Employee receivable |
|
|
1,007,418 |
|
|
|
796,085 |
|
Right-of-use assets |
|
|
4,738,997 |
|
|
|
5,599,736 |
|
Goodwill |
|
|
21,507,944 |
|
|
|
25,220,085 |
|
Intangible assets, net |
|
|
10,189,026 |
|
|
|
11,209,664 |
|
Property, equipment and leasehold improvements, net |
|
|
114,011 |
|
|
|
194,223 |
|
Other long-term assets |
|
|
218,021 |
|
|
|
216,305 |
|
Total Assets |
|
$ |
58,437,279 |
|
|
$ |
66,254,974 |
|
LIABILITIES |
|
|
|
|
|
|
||
Current |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
2,344,272 |
|
|
$ |
6,892,349 |
|
Term loans, current portion |
|
|
1,686,018 |
|
|
|
980,651 |
|
Revolving line of credit |
|
|
400,000 |
|
|
|
400,000 |
|
Notes payable, current portion |
|
|
3,750,000 |
|
|
|
3,500,000 |
|
Contingent consideration |
|
|
486,000 |
|
|
|
- |
|
Accrued interest - related party |
|
|
1,857,986 |
|
|
|
1,718,009 |
|
Accrued compensation - related party |
|
|
2,625,000 |
|
|
|
2,625,000 |
|
Lease liabilities, current portion |
|
|
1,919,672 |
|
|
|
2,192,213 |
|
Deferred revenue |
|
|
341,153 |
|
|
|
1,451,709 |
|
Other current liabilities |
|
|
11,104,036 |
|
|
|
7,694,114 |
|
Total current liabilities |
|
|
26,514,137 |
|
|
|
27,454,045 |
|
|
|
|
|
|
|
|
|
|
Noncurrent |
|
|
|
|
|
|
|
|
Term loans, noncurrent portion |
|
|
4,782,271 |
|
|
|
4,501,963 |
|
Notes payable, noncurrent portion |
|
|
3,130,000 |
|
|
|
3,380,000 |
|
Convertible notes payable |
|
|
5,100,000 |
|
|
|
5,100,000 |
|
Convertible notes payable at fair value |
|
|
320,000 |
|
|
|
355,000 |
|
Loans from related party |
|
|
3,225,985 |
|
|
|
1,107,873 |
|
Lease liabilities |
|
|
3,306,033 |
|
|
|
4,068,642 |
|
Deferred tax liability |
|
|
394,547 |
|
|
|
306,691 |
|
Warrant liability |
|
|
- |
|
|
|
5,000 |
|
Other noncurrent liabilities |
|
|
18,915 |
|
|
|
18,915 |
|
Total Liabilities |
|
|
46,791,888 |
|
|
|
46,298,129 |
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Preferred Stock, Series C, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding at December 31, 2024 and 2023 |
|
|
1,000 |
|
|
|
1,000 |
|
Common stock, $0.015 par value, 200,000,000 shares authorized, 11,162,026 and 9,109,766 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
|
166,688 |
|
|
|
136,647 |
|
Additional paid in capital |
|
|
157,692,132 |
|
|
|
153,430,402 |
|
Accumulated deficit |
|
|
(146,214,429 |
) |
|
|
(133,611,204 |
) |
Total Stockholders' Equity |
|
|
11,645,391 |
|
|
|
19,956,845 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
58,437,279 |
|
|
$ |
66,254,974 |
|
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the years ended December 31, 2024 and 2023
|
2024 |
|
|
2023 |
|
|||
Revenues |
|
$ |
51,684,984 |
|
|
$ |
43,123,075 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Direct costs |
|
|
3,266,461 |
|
|
|
946,962 |
|
Payroll and benefits |
|
|
38,123,040 |
|
|
|
35,030,257 |
|
Selling, general and administrative |
|
|
7,795,610 |
|
|
|
8,434,549 |
|
Acquisition costs |
|
|
164,044 |
|
|
|
116,151 |
|
Impairment of goodwill |
|
|
6,671,557 |
|
|
|
9,484,215 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
341,417 |
|
Write-off of notes receivables |
|
|
1,270,000 |
|
|
|
4,108,080 |
|
Change in fair value of contingent consideration |
|
|
50,000 |
|
|
|
33,226 |
|
Depreciation and amortization |
|
|
2,382,361 |
|
|
|
2,253,619 |
|
Legal and professional |
|
|
2,447,083 |
|
|
|
2,485,096 |
|
Total expenses |
|
|
62,170,156 |
|
|
|
63,233,572 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(10,485,172 |
) |
|
|
(20,110,497 |
) |
|
|
|
|
|
|
|
|
|
Other (expenses) income: |
|
|
|
|
|
|
|
|
Change in fair value of convertible note |
|
|
35,000 |
|
|
|
(11,444 |
) |
Change in fair value of warrant |
|
|
5,000 |
|
|
|
10,000 |
|
Interest income |
|
|
11,462 |
|
|
|
2,877 |
|
Interest expense |
|
|
(2,081,661 |
) |
|
|
(2,085,107 |
) |
Total other expense (income), net |
|
|
(2,030,199 |
) |
|
|
(2,083,674 |
) |
|
|
|
|
|
|
|
|
|
Loss before income taxes and equity in losses of unconsolidated affiliates |
|
$ |
(12,515,371 |
) |
|
$ |
(22,194,171 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(87,854 |
) |
|
|
(53,504 |
) |
|
|
|
|
|
|
|
|
|
Net loss before equity in losses of unconsolidated affiliates |
|
|
(12,603,225 |
) |
|
|
(22,247,675 |
) |
|
|
|
|
|
|
|
|
|
Equity in losses of unconsolidated affiliates |
|
|
- |
|
|
|
(2,149,050 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12,603,225 |
) |
|
$ |
(24,396,725 |
) |
|
|
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.22 |
) |
|
$ |
(3.39 |
) |
Diluted |
|
$ |
(1.22 |
) |
|
$ |
(3.39 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in per share calculation |
|
|
|
|
|
|
|
|
Basic |
|
|
10,306,904 |
|
|
|
7,206,577 |
|
Diluted |
|
|
10,306,904 |
|
|
|
7,206,577 |
|
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
|
|
For the twelve months ended December 31, |
|
|||||
|
2024 |
|
|
2023 |
|
|||
Revenues (GAAP) |
|
$ |
51,684,984 |
|
|
$ |
43,123,075 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Direct costs |
|
|
3,266,461 |
|
|
|
946,962 |
|
Payroll and benefits |
|
|
38,123,040 |
|
|
|
35,030,257 |
|
Selling, general and administrative |
|
|
7,795,610 |
|
|
|
8,434,549 |
|
Acquisition costs |
|
|
164,044 |
|
|
|
116,151 |
|
Impairment of goodwill |
|
|
6,671,557 |
|
|
|
9,484,215 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
341,417 |
|
Write-off of notes receivable |
|
|
1,270,000 |
|
|
|
4,108,080 |
|
Change in fair value of contingent consideration |
|
|
50,000 |
|
|
|
33,226 |
|
Depreciation and amortization |
|
|
2,382,361 |
|
|
|
2,253,619 |
|
Legal and professional |
|
|
2,447,083 |
|
|
|
2,485,096 |
|
Total expenses (GAAP) |
|
|
62,170,156 |
|
|
|
63,233,572 |
|
|
|
|
|
|
|
|
|
|
Loss from operations (GAAP) |
|
$ |
(10,485,172 |
) |
|
$ |
(20,110,497 |
) |
Adjustments to GAAP measure: |
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
164,044 |
|
|
|
116,151 |
|
Impairment of goodwill |
|
|
6,671,557 |
|
|
|
9,484,215 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
341,417 |
|
Write-off of notes receivables |
|
|
1,270,000 |
|
|
|
4,108,080 |
|
Change in fair value of contingent consideration |
|
|
50,000 |
|
|
|
33,226 |
|
Depreciation and amortization |
|
|
2,382,361 |
|
|
|
2,253,619 |
|
Bad debt expense |
|
|
505,173 |
|
|
|
919,672 |
|
Impairment of capitalized production costs |
|
|
- |
|
|
|
74,412 |
|
Stock compensation |
|
|
364,650 |
|
|
|
354,961 |
|
Income from operations (non-GAAP) |
|
$ |
922,613 |
|
|
$ |
(2,424,744 |
) |
SOURCE: Dolphin Entertainment
View the original press release on ACCESS Newswire