MIAMI, FL / ACCESSWIRE / August 15, 2022 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the second quarter ended June 30, 2022.

'We recorded our fifth straight quarter of double-digit YoY revenue growth, up 19% to $10.3 million, and we're on pace to cross $40.0 million in annual revenue this year' said Bill O'Dowd, CEO of Dolphin Entertainment. 'In terms of key profit metrics, operating income was $488,958 during the second quarter and we continue to expect to generate a larger annual EBITDA profit in 2022 than we did last year, despite our increased investment in 2.0 opportunities.'

Mr. O'Dowd continued, 'Speaking of Dolphin 2.0 investments, in May we announced our first such opportunity in our legacy content vertical with a multi-year agreement with IMAX to co-produce feature documentaries. 'Blue Angels,' our first project with IMAX, is already in production, and has a planned H2 2023 theatrical release. In June, we announced a full slate of NFT projects we expect to be released this year. And we continue to be excited by our investment in Crafthouse Cocktails, which is continuing to pick up available locations across the country, and now also internationally with its first distribution deals in London.'

Mr. O'Dowd added, 'We are also nearing the highly-anticipated opening of Midnight Theatre, a beautiful, state-of-the-art variety theater in the heart of Manhattan, that is one of our 2.0 investments. Last month, Hidden Leaf, a pan-Asian restaurant within Midnight Theatre from acclaimed restaurateur Josh Cohen opened. And Midnight Theatre, prior to its official opening in September, recently held the first of many private events, with the premier of Kevin Durant's basketball documentary, 'NYC Point Gods.'

'We couldn't be more excited for the balance of the year and onward, as our core business grows, our equity investments take flight, and we continue to evaluate M&A and additional 2.0 investments,' concluded Mr. O'Dowd.

Q2 2022 and Recent Highlights

• Total Q2 2022 revenue increased 19% to $10.3 million as compared to $8.6 million in Q2 2021;
• Operating income for the quarter ended June 30, 2022, of $488,958, includes non-cash items from depreciation and amortization of $415,547, a gain in the change of fair value of contingent consideration of $670,878 and an impairment of the right-of-use asset in the amount of $98,857 related to the sublease of one of Dolphin's offices as compared to operating income of $221,293 for the quarter ended June 30, 2021, which included non-cash items from depreciation and amortization of $478,270 and a gain in the change of fair value of contingent consideration of $165,000.
• Net Income for the quarter ended June 30, 2022 of $612,008 includes non-cash items from (i) depreciation and amortization of $415,547, (ii) a gain in the change of fair value of contingent consideration of $670,878, (iii) an impairment of the right-of-use asset in the amount of $98,857, and (iv) a gain in the change of fair value of warrants and convertible notes of $279,022, compared to net income for the quarter ended June 30, 2021 of $1,349,942 which includes non-cash items from (i) depreciation and amortization of $478,270, (ii) a gain in the change of fair value of contingent consideration of $165,000, iii) a gain in the change of fair value of warrants and convertible notes of $333,974 (iv) and a net gain of $1.0 million from the extinguishment of debt.
• Cash and cash equivalents of $7.2 million as of June 30, 2022 as compared to $9.3 million as of June 30, 2021.
• Working capital surplus as of June 30, 2022 of $3.5 million, compared to a working capital surplus of $1.3 million as of June 30, 2021.
• 42West clients received 97 Emmy Nominations, which included our work on the Prime Video series 'The Marvelous Mrs. Maisel' which led to 12 nominations and the acclaimed documentary 'Lucy and Desi' which earned a total of six nominations. Other nominated projects in which we worked in various capacities include ABC's 'The Conners,' Apple TV+'s 'Central Park,' F/X's 'Impeachment: An American Crime Story,' Fox's 'Call Me Kat,' 'The Masked Singer,' '9-1-1: Lone Star' and 'The Simpsons,' HBO/HBO Max's '100 Foot Wave,' 'Barry,' A Black Lady Sketch Show,' 'The Flight Attendant', 'Peacemaker' and 'Winning Time: The Rise of the Lakers Dynasty,' NBC's 'American Song Contest,' Netflix's 'Arcane,' Paramount +'s 'Star Trek: Picard,' 'Goliath' and 'A Very British Scandal,' Showtime's 'Ray Donovan: The Movie' and 'Yellowjackets' TBS' 'Conan' and TNT's 'Snowpiercer.'
• 42West client Tom Cruise debuted 'Top Gun: Maverick' over Memorial Day weekend, marking his biggest opening weekend ever, and the largest domestic Memorial Day opening in history, grossing $160.5 million. The film has performed remarkably well this summer, and has now passed $1.2 billion at the worldwide box office.
• Pan-Asian restaurant Hidden Leaf (at The Midnight Theatre in Manhattan West) opened on July 6. Dolphin Entertainment manages all aspects of publicity and marketing for Midnight Theatre and Hidden Leaf, as well as facilitates talent and commercial relationships within the entertainment and culinary industries.
• Dolphin Entertainment investment, Midnight Theatre, christened the venue with its first of many private events prior to its official opening this fall. The event was a film screening of Brooklyn Nets superstar and 35V and Boardroom co-founder Kevin Durant's documentary NYC Point Gods. NYC Point Gods profiles the highly influential 80s and 90s NYC hoops legends that emerged out of New York City, highlighting some of the most famous point guards in New York City history, including Rafer Alston, Kenny Anderson, Mark Jackson, Stephon Marbury, God Shammgod, Kenny Smith, Rod Strickland and Dwayne 'Pearl' Washington.
• 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.
• Web3 marketing, consulting and communications agency, We Come In Peace (WCIP), has developed a full slate of metaverse related clients and NFT projects to be released this year, including ones with supermodel Bella Hadid and celebrity chefs and restaurateurs Tom Colicchio and Spike Mendelsohn.

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Date: August 15, 2022
Time: 4:30 PM Eastern Time
Toll Free: 877-545-0320 International: 973-528-0002
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About Dolphin Entertainment
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 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, and has recently entered into a multi-year agreement with IMAX to co-produce feature documentaries. In early 2022, Dolphin launched WCIP (pronounced We Come In Peace), its new marketing, consulting and communications agency focused solely on developing and marketing blockchain, metaverse and Web3 projects and initiatives, for both current and future clients, as well as wholly-owned project investments. 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 Balance Sheets

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations

SOURCE: Dolphin Entertainment