Dolphin Entertainment FY 2022 Revenue Increases 13% to a Record $40.5 Million
MIAMI, FL / ACCESSWIRE / March 30, 2023 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the fourth quarter and full year ended December 31, 2022.
Bill O'Dowd, CEO of Dolphin Entertainment, commented, "2022 was a great year, and we expect 2023 to be even better. In 2022, we reached our stated operational goal, exceeding $40 million in revenue. We also grew our entertainment marketing Super Group with the acquisition of influencer powerhouse Socialyte in Q4. And, finally, we enjoyed our first full year of Dolphin 2.0 ventures, highlighted by entering into production on "The Blue Angels," the first project under our partnership with IMAX for feature documentaries that was announced at the Cannes Film Festival, and by the soft opening of Midnight Theatre later in the year.
Mr. O'Dowd continued, "Moving ahead in 2023, we anticipate completing our marketing Super Group with the acquisition of a live events production company. We also expect to begin to recognize revenues from our current Dolphin 2.0 ventures, including The Blue Angels which is expected to be released in the second half of this year. With the hiring of Fortune 500 industry veteran Ellie Doty as our Chief Marketing Officer, announced earlier today, we now have the leadership in place for the selection and execution of an increased cadence of new Dolphin 2.0 ventures that compensate Dolphin in both cash fees and equity upside."
2022 and Recent Highlights
- Total Q4 2022 revenue increased 6% to a record $11.1 million; full year 2022 revenue increased 13% to a record $40.5 million.
- Operating loss for the year ended December 31, 2022, of $4.6 million includes non-cash items from depreciation and amortization of $1.8 million, impairment of goodwill of $0.9 million, gain on the change in fair value of contingent consideration of $47,285, and non-recurring costs of (i) $0.5 million related to acquisition costs and (ii) legal and professional fees of approximately $0.6 million related to the restatement of our financial statements of the 3rd quarter of 2021, change of audit firm, financing arrangement with Lincoln Park Capital LLC and filing of our Form S-1. This compares to an operating loss for the year ended December 31, 2021 of $5.5 million, which includes non-cash items from depreciation and amortization of $1.9 million and losses in the change of fair value of contingent consideration of $3.7 million.
- Net loss for the year ended December 31, 2022 of $4.7 million includes non-cash items from depreciation and amortization of $1.8 million, impairment of good will of $0.9 million, gain on the change in fair value of contingent consideration of $47,285, non-recurring costs of (i) $0.5 million related to acquisition costs; (ii) legal and professional fees of approximately $0.6 million related to the restatement of our financial statements of the 3rd quarter 2021, change of audit firm, financing arrangement with Lincoln Park Capital LLC and filing of our Form S-1 and (iii) gains in the changes of fair value of certain liabilities in the amount of $0.8 million. This compares to net loss for the year ended December 31, 2021 of $6.5 million which included non-cash items from depreciation and amortization of $1.9 million, losses of $3.7 million from changes in the fair value of contingent consideration and losses of $3.1 million from changes in the fair value of certain liabilities offset by a gain on the forgiveness of the Paycheck Protection Program loans of approximately $3.0 million.
- Unrestricted cash and cash equivalents of $6.1 million as of December 31, 2022 as compared to $7.7 million as of December 31, 2021.
- Announced industry veteran Ellie Doty has been hired as Chief Marketing Officer responsible for branding, messaging and communications for Dolphin to all audiences and stakeholders.
- Acquired East Coast influencer marketing agency Socialyte. Together, Be Social + Socialyte represent over 200 leading creator talent with hundreds of millions of followers on social media and creates an unrivalled bi-coastal combination within the influencer marketing industry.
- 42West's work on the "Top Gun: Maverick" campaign resulted in an Academy Award for Best Sound and six Oscar nominations; follows worldwide box office 2022 total of $1.49 billion, the biggest of client Tom Cruise's career to date.
- Shore Fire artists earned fourteen awards at 2023 GRAMMYs, including Song of the Year and Best New Artist, after a record forty-three nominations.
- IMAX Corporation and Dolphin Entertainment greenlit their first project, Blue Angels, since entering into a multi-year agreement to jointly finance the development and production of a slate of feature-length documentaries for the global market. Blue Angels, co-produced with JJ Abrams, Bad Robot Productions and Zipper Bros Films is currently in production, and is scheduled for a H2 2023 release.
- Dolphin Entertainment's flagship NFT collection, Creature Chronicles, sells out in 90 Minutes
- Midnight Theatre held soft opening and partnered with Mastercard as presenting sponsor.
- Pan-Asian restaurant Hidden Leaf (at The Midnight Theatre in Manhattan West) opened.
- Dolphin Entertainment managed all aspects of publicity and marketing for Midnight Theatre and Hidden Leaf, and facilitated talent and commercial relationships within the entertainment and culinary industries - Dolphin holds a meaningful ownership stake in the venture.
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date: Thursday, March 30
Time: 4:30pm ET
Toll Free: 888-506-0062; International: 973-528-0011
Participant Access Code: 582219
Webcast: https://www.webcaster4.com/Webcast/Page/2225/47858
Replay:
Toll Free: 877-481-4010; International: 919-882-2331
Replay Passcode: 47858
Webcast Replay https://www.webcaster4.com/Webcast/Page/2225/47858
About Dolphin Entertainment, Inc.
Dolphin Entertainment is a leading independent entertainment marketing and production company. Through our subsidiaries 42West, The Door, Shore Fire Media and B/HI (a division of 42West), 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. All three PR firms have been ranked among the most recent Observer's "Power 50" PR Firms in the United States. Viewpoint Creative, Be Social and Socialyte 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, and has recently entered into a multi-year agreement with IMAX to co-produce feature documentaries. 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.
CONTACT:
James Carbonara/Hayden IR
(646)-755-7412
[email protected]
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
| Twelve months ended December 31, | ||||||||
| 2022 | 2021 | |||||||
Revenues | $ | 40,505,558 | $ | 35,727,199 | ||||
Expenses: | ||||||||
Direct costs | 3,566,336 | 3,879,409 | ||||||
Payroll and benefits | 28,947,730 | 23,819,327 | ||||||
Selling, general and administrative | 6,572,020 | 5,836,235 | ||||||
Acquisition costs | 480,939 | 22,907 | ||||||
Impairment of goodwill | 906,337 | - | ||||||
Change in fair value of contingent consideration | (47,285 | ) | 3,754,221 | |||||
Depreciation and amortization | 1,751,211 | 1,905,354 | ||||||
Legal and professional | 2,903,412 | 2,013,436 | ||||||
Total expenses | 45,080,700 | 41,230,889 | ||||||
Loss from operations | (4,575,142 | ) | (5,503,690 | ) | ||||
Other income (expenses): | ||||||||
Gain on extinguishment of debt | - | 2,988,779 | ||||||
Change in fair value of convertible notes | 654,579 | (570,844 | ) | |||||
Change in fair value of warrants | 120,000 | (2,482,877 | ) | |||||
Change in fair value of put rights | - | (71,106 | ) | |||||
Interest expense | (555,802 | ) | (785,209 | ) | ||||
Total other income (expenses), net | 218,777 | (921,257 | ) | |||||
Loss before income taxes and equity in losses of unconsolidated affiliates | (4,356,365 | ) | (6,424,947 | ) | ||||
Income tax expense | (176,981 | ) | (37,356 | ) | ||||
Net loss before equity in losses of unconsolidated affilates | (4,533,346 | ) | (6,462,303 | ) | ||||
Equty in losses of unconsolidated affiliates | (246,789 | ) | - | |||||
Net loss | $ | (4,780,135 | ) | $ | (6,462,303 | ) | ||
(Loss) earnings per share - Basic | $ | (0.49 | ) | $ | (0.85 | ) | ||
(Loss) earnings per share - Basic | $ | (0.56 | ) | $ | (0.85 | ) | ||
Weighted average number of shares used in per share calculation | ||||||||
Basic | 9,799,021 | 7,614,774 | ||||||
Diluted | 9,926,926 | 7,614,774 | ||||||
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
ASSETS | As of December 31, 2022 | As of December 31, 2021 | ||||||
Current | ||||||||
Cash and cash equivalents | $ | 6,069,889 | $ | 7,688,743 | ||||
Restricted cash | 1,127,960 | 541,883 | ||||||
Accounts receivable | ||||||||
Trade, net of allowance of $736,820 and $627,553, respectively | 7,921,380 | 4,513,179 | ||||||
Other receivable | 3,794,085 | 3,583,357 | ||||||
Notes receivable | 4,426,700 | 1,510,137 | ||||||
Other current assets | 523,812 | 450,060 | ||||||
Total current assets | 23,863,826 | 18,287,359 | ||||||
Capitalized production costs, net | 1,598,412 | 137,235 | ||||||
Employee receivable | 604,085 | 366,085 | ||||||
Right-of-use asset | 7,341,045 | 6,129,411 | ||||||
Goodwill | 29,314,083 | 20,021,357 | ||||||
Intangible assets, net | 9,884,336 | 6,142,067 | ||||||
Property, equipment and leasehold improvements, net | 293,206 | 473,662 | ||||||
Other long term assets | 2,477,839 | 1,234,275 | ||||||
Total Assets | $ | 75,376,832 | $ | 52,791,451 | ||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable | $ | 4,798,221 | $ | 942,085 | ||||
Term loan, current portion | 408,905 | - | ||||||
Notes payable, current portion | 3,868,960 | 307,685 | ||||||
Contingent consideration | 500,000 | 600,000 | ||||||
Accrued interest - related party | 1,744,723 | 1,621,437 | ||||||
Accrued compensation - related party | 2,625,000 | 2,625,000 | ||||||
Lease liability, current portion | 2,073,547 | 1,600,107 | ||||||
Deferred revenue | 1,641,459 | 406,373 | ||||||
Other current liabilities | 7,626,836 | 6,850,584 | ||||||
Total current liabilities | 25,287,651 | 14,953,271 | ||||||
Noncurrent | ||||||||
Term loan, noncurrent portion | 2,458,687 | - | ||||||
Notes payable, noncurrent portion | 500,000 | 868,959 | ||||||
Convertible notes payable | 5,050,000 | 2,900,000 | ||||||
Convertible notes payable at fair value | 343,556 | 998,135 | ||||||
Loan from related party | 1,107,873 | 1,107,873 | ||||||
Contingent consideration | 238,821 | 3,684,221 | ||||||
Lease liability | 6,012,049 | 5,132,895 | ||||||
Deferred tax liability | 253,188 | 76,207 | ||||||
Warrant liability | 15,000 | 135,000 | ||||||
Other noncurrent liabilities | 18,915 | - | ||||||
Total Liabilities | 41,285,740 | 29,856,561 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at December 31, 2022 and 2021. | 1,000 | 1,000 | ||||||
Common stock, $0.015 par value, 200,000,000 shares authorized, 12,340,664 and 8,020,381 shares issued and outstanding at December 31, 2022 and 2021 , respectively. | 185,110 | 120,306 | ||||||
Additional paid in capital | 143,119,461 | 127,247,928 | ||||||
Accumulated deficit | (109,214,479 | ) | (104,434,344 | ) | ||||
Total Stockholders' Equity | $ | 34,091,092 | $ | 22,934,890 | ||||
Total Liabilities and Stockholders' Equity | $ | 75,376,832 | $ | 52,791,451 | ||||
SOURCE: Dolphin Entertainment
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