Dolphin Entertainment Q3 2020 Revenue Increases 23% From Q2 2020, And 7% Year Over Year, to $6.4 Million

NEW YORK, NY and LOS ANGELES, CA / ACCESSWIRE / November 16, 2020 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading independent entertainment marketing and production company, reports its operating results for the three months ended September 30, 2020.

Bill O'Dowd, CEO of Dolphin Entertainment, commented, "Our Q3 highlight was undoubtedly the acquisition of Be Social. Adding best-in-class influencer marketing capabilities to our entertainment industry leading PR firms was the single-most strategic objective for Dolphin in 2020. With Be Social, we added our first choice of companies in this vertical, and continued to build on the momentum from the Shore Fire acquisition in December, 2019. And that momentum is showing in our financial results. Our revenue grew 23% from Q2, from just under $5.2 million to just under $6.4 million. This also represents a 7% year over year increase. We will continue to integrate Be Social, and cross-sell their services, throughout Q4 and expect to finish the year very strong, as we look forward to 2021."


  • Total revenue, fully derived from the Company's core entertainment and publicity segment, was $6,390,653 for the three months ended September 30, 2020, as compared to $5,948,056 in the same period in the prior year. The prior year included $7,616 of revenue from content production.
  • Operating loss for the three months ended September 30, 2020 of $493,185, which included non-cash items from depreciation and amortization of $514,097, as compared to operating loss of $1,412,171 including non-cash items for depreciation and amortization of $485,965 for the same period in the prior year.
  • Net Loss for the three months ended September 30, 2020 of $137,630, compared to net loss of $326,441 for the same period in the prior year.
  • Cash and cash equivalents of $9.9 million as of September 30, 2020, compared to $2.9 million as of December 31, 2019.
  • Announced a major expansion of entertainment marketing capabilities through the acquisition of influencer marketing leader, Be Social. Founded 8 years ago, 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.
  • Viewpoint Creative launched its Quarterly Earnings Report Videos service, just in time for Q3 reporting, and ahead of major Fall and Winter virtual investor events, including the Virtual CES Conference and the Virtual JP Morgan Healthcare Conference. Viewpoint Creative is now offering their award-winning, full-service, live-action and animated video capabilities to publicly traded companies looking to add a dynamic visual component to their quarterly earnings presentations.
  • 42 West was awarded by Forbes with five stars - the highest possible rating - in its inaugural ranking of America's Best PR Firms for 2021. To develop the list, Forbes worked with Statista to survey more than 12,700 experts and 20,500 customers who nominated more than 5,000 firms nationwide across all industries. Participants were then asked to indicate how likely they were to nominate a particular agency on a scale of zero (very unlikely) to 10 (very likely). Statista then narrowed the list to the top 200 for recognition. 42West is one of only 108 PR firms to receive five stars, placing in the top 1% of all PR firms in the United States.
  • The Door had 11 hotels in their hospitality portfolio recognized by the distinguished Condé Nast Traveler 2020 Readers' Choice Awards. This year, more than 715,000 Condé Nast Traveler readers submitted responses rating their travel experiences across the globe to determine the winners. This year's line-up of winners among The Door brand and hotel clients includes: The Family Coppola Hideaways, Makeready, Viceroy Hotels & Resorts and Virgin Hotels.
  • 42West was involved in various capacities with 33 programs and individuals that earned a total of 145 nominations and won 43 Emmy Awards overall. During the Emmy's broadcast, 42West clients took home more than half of the awards presented. Among the company's highlights was Pop TV's "Schitt's Creek," which 42West has been representing since 2018. The series, winner of nine Emmy Awards overall, made history as the first comedy series to win all seven major awards in the category in the same year.
  • 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.

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Date, Time: November 16, 2020, at 4:30 p.m. ET
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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 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.

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.

James Carbonara
Hayden IR


ASSETS As of September 30, 2020  As of December 31, 2019 
Cash and cash equivalents $9,213,083  $2,196,249 
Restricted cash  714,145   714,089 
Accounts receivable, net  4,384,572   3,581,155 
Other current assets  311,884   372,872 
Total current assets  14,623,684   6,864,365 
Capitalized production costs  247,575   203,036 
Right of use assets  7,490,074   7,435,903 
Intangible assets, net of accumulated amortization of $5,554,196 and $4,299,794, respectively.  7,857,137   8,361,539 
Goodwill  19,707,322   17,947,989 
Property, equipment and leasehold improvements, net  828,179   1,036,849 
Investments  220,000   220,000 
Deposits and other assets  301,249   502,045 
Total Assets $51,275,220  $42,571,726 
Accounts payable $982,557  $832,089 
Line of credit  -   1,700,390 
Term loan  1,000,325   - 
Debt  -   3,311,198 
Notes payable  695,080   288,237 
Convertible notes payable  -   1,681,110 
Convertible notes payable at fair value  621,000   - 
Paycheck Protection Program loan  235,443   - 
Loan from related party  1,310,373   1,810,373 
Accrued interest - related party  2,018,025   1,935,949 
Accrued compensation -related party  2,625,000   2,625,000 
Put Rights  1,897,780   2,879,403 
Lease liability  1,811,194   1,610,022 
Contract liability  441,150   309,880 
Other current liabilities  3,334,134   3,437,860 
Total current liabilities  16,972,061   22,421,511 
Notes payable  600,984   1,074,122 
Convertible notes payable  695,000   1,729,618 
Convertible notes payable at fair value  911,897   - 
Paycheck Protection Program loan  2,864,426   - 
Put Rights  -   124,144 
Contingent consideration  805,000   330,000 
Lease liability  6,390,280   6,386,209 
Warrants liability  440,000   189,590 
Derivative liability  -   170,000 
Other noncurrent liabilities  1,120,000   570,000 
Total noncurrent liabilities  13,827,587   10,573,683 
Total Liabilities  30,799,648   32,995,194 
Commitments and contingencies        
Common stock, $0.015 par value, 200,000,000 shares authorized, 32,801,710 and 17,892,900, respectively, issued and outstanding at September 30, 2020 and December 31, 2019.  492,026   268,402 
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at September 30, 2020 and December 31, 2019.  1,000   1,000 
Additional paid in capital  117,022,779   106,465,896 
Accumulated deficit  (97,040,233)  (97,158,766)
Total Stockholders' Equity $20,475,572  $9,576,532 
Total Liabilities and Stockholders' Equity $51,275,220  $42,571,726 


   For the three months ended     For the nine months ended 
   September 30,     September 30,  
   2020    2019    2020    2019 
Entertainment publicity and marketing  6,390,653    5,940,440    18,219,178    18,464,330 
Content production    -      7,616      -      86,606 
Total revenues    6,390,653      5,948,056      18,219,178      18,550,936 
Direct costs    1,437,953      1,540,711      2,653,178      4,006,806 
Selling, general and administrative    953,993      1,023,757      3,247,474      2,875,348 
Depreciation and amortization    514,097      485,965      1,531,561      1,446,168 
Legal and professional    372,943      353,699      945,257      1,158,497 
Payroll    3,604,852      3,956,095      11,384,791      12,503,528 
Total expenses    6,883,838      7,360,227      19,762,261      21,990,347 
Loss before other income (expenses)    (493,185)    (1,412,171)    (1,543,083)    (3,439,411)
Other Income (Expenses):                               
Gain on extinguishment of debt    51,333      709,097      3,311,198      687,811 
Changes in fair value of convertible notes and derivative liabilities    8,730      -      (540,231)    30,000 
Loss on deconsolidation of Max Steel VIE    -      -      (1,484,591)    - 
Acquisition costs    (61,196)    -      (61,196)    - 
Change in fair value of warrants    145,559      74,037      (265,445)    155,803 
Change in fair value of put rights    159,457      627,799      1,677,267      2,406,175 
Change in fair value of contingent consideration    140,000      20,000      (330,000)    110,000 
Interest expense and debt amortization    (270,815)    (345,203)    (1,953,790)    (950,861)
Total other income, net    173,068      1,085,730      353,212      2,438,928 
Loss before income taxes  (320,117)  (326,441)  (1,189,871)  (1,000,483)
Income tax benefit    182,487      -      182,487      - 
Net loss  (137,630)  (326,441)  (1,007,384)  (1,000,483)
Loss per share - Basic  -    (0.02)  (0.04)  (0.06)
Loss per share - Diluted  (0.01)  (0.05)  (0.09)  (0.17)
Weighted average number of shares used in per share calculation                               
Basic    33,382,027      16,071,891      26,117,204      15,995,774 
Diluted    34,560,054      19,847,936      29,878,052      20,225,129 

SOURCE: Dolphin Entertainment

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