Reported Earnings • Mar 27
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: US$0.27 loss per share (improved from US$1.22 loss in FY 2024). Revenue: US$56.7m (up 9.7% from FY 2024). Net loss: US$3.09m (loss narrowed 76% from FY 2024). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 9.4% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. New Risk • Mar 26
New major risk - Revenue and earnings growth Earnings have declined by 27% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 27% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$18.8m market cap). Reported Earnings • Nov 14
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: US$0.031 loss per share (improved from US$0.80 loss in 3Q 2024). Revenue: US$14.8m (up 17% from 3Q 2024). Net loss: US$365.5k (loss narrowed 96% from 3Q 2024). Revenue exceeded analyst estimates by 5.7%. Earnings per share (EPS) also surpassed analyst estimates by 50%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 9.6% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. Announcement • Sep 17
Dolphin Entertainment, Inc., Annual General Meeting, Nov 10, 2025 Dolphin Entertainment, Inc., Annual General Meeting, Nov 10, 2025. Location: 200 south biscayne boulevard, 39th floor florida 33131., miami, United States Reported Earnings • Aug 14
First quarter 2025 earnings released: US$0.21 loss per share (vs US$0.035 loss in 1Q 2024) First quarter 2025 results: US$0.21 loss per share (further deteriorated from US$0.035 loss in 1Q 2024). Revenue: US$12.2m (down 20% from 1Q 2024). Net loss: US$2.33m (loss widened US$2.00m from 1Q 2024). Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 48% per year, which means it is performing significantly worse than earnings. New Risk • Aug 14
New major risk - Revenue and earnings growth Earnings have declined by 39% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 39% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$13.1m market cap). Reported Earnings • May 15
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: US$0.21 loss per share (further deteriorated from US$0.035 loss in 1Q 2024). Revenue: US$12.2m (down 20% from 1Q 2024). Net loss: US$2.33m (loss widened US$2.00m from 1Q 2024). Revenue exceeded analyst estimates by 22%. Earnings per share (EPS) missed analyst estimates by 40%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 9.8% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 48% per year, which means it is performing significantly worse than earnings. Announcement • May 08
Dolphin Entertainment, Inc. announced that it has received $1.065 million in funding Dolphin Entertainment, Inc. announced that it has entered into eight subscription agreements with investors for eight convertible promissory notes in the aggregate principal amount of $1,065,000 and received cash proceeds of $1,065,000 on May 6, 2025. The Notes bear interest at a rate of 10% per annum. Two of the Notes, with an aggregate principal amount of $500,000, mature one year from their respective issuance dates, two of the Notes with an aggregate principal amount of $200,000 mature two years from their respective issuance dates, three of the Notes with an aggregate principal amount of for $240,000 each mature four years from their respective issuance dates and the remaining $125,000 Note matures five years from its issuance date. The noteholders may convert the principal balance of the Notes and any accrued interest thereon at any time before the maturity date of the Note into common stock of the Company. The conversion price of a $50,000 Note is $1.07 per share, the conversion price of two Notes in the aggregate amount of $150,000 is $1.01 per share, the conversion price of two Notes in the aggregate amount of $240,000 is $1.00 per share and the conversion price of a $125,000 Note is $1.03 per share. The conversion prices for these Notes were either above or the closing price of the Common Stock on the Nasdaq Stock Market on the respective dates of those Notes. Two Notes in the aggregate amount of $500,000, issued on May 1, 2025 and May 6, 2025 have a conversion price of $1. The issuance and sale of the Notes, and any shares of common stock to be issued upon conversion thereof will be issued, by the Company in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act. New Risk • Apr 08
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.73m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (US$9.73m market cap). Minor Risk Shareholders have been diluted in the past year (20% increase in shares outstanding). Breakeven Date Change • Mar 28
Forecast breakeven date pushed back to 2026 The analyst covering Dolphin Entertainment previously expected the company to break even in 2025. New forecast suggests losses will reduce by 90% to 2025. The company is expected to make a profit of US$2.37m in 2026. Average annual earnings growth of 139% is required to achieve expected profit on schedule. Announcement • Mar 26
Dolphin Entertainment, Inc. to Report Q4, 2024 Results on Mar 26, 2025 Dolphin Entertainment, Inc. announced that they will report Q4, 2024 results at 4:30 PM, US Eastern Standard Time on Mar 26, 2025 Announcement • Jan 18
IMAX Entertainment and Dolphin Entertainment Present New 3D Version of the Documentary The Blue Angels IMAX Entertainment and Dolphin Entertainment announced that it will present a thrilling new 3D version of the documentary "The Blue Angels" taking audiences soaring with the Navy's elite Flight Demonstration Squadron. The documentary will be opening in IMAX institutional theatres across the globe, including the Smithsonian Udvar-Hazy Center IMAX, Carnival Cruises IMAX Theaters, and more. Filmed For IMAX®? immersive footage puts viewers directly into the cockpit for a firsthand view of the Blue Angels' precision flying, while the aerial shots deliver a spectacular showcase of the breathtaking maneuvers that have made them the world's premier jet team. The filmmakers behind "The Blue Angels" were granted unprecedented access-on the ground and in the air-to invite audiences along, from the first days of rigorous training through to the final show and the passing of the torch to a new team. But even as the documentary brings the veil of the Blue Angels mystique, it only magnifies the Blue Angels magic. Reported Earnings • Nov 17
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: US$0.80 loss per share (further deteriorated from US$0.55 loss in 3Q 2023). Revenue: US$12.7m (up 25% from 3Q 2023). Net loss: US$8.69m (loss widened 125% from 3Q 2023). Revenue exceeded analyst estimates by 21%. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has fallen by 62% per year, which means it is performing significantly worse than earnings. New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings have declined by 42% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 42% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (23% increase in shares outstanding). Market cap is less than US$100m (US$13.0m market cap). Announcement • Nov 14
Dolphin Entertainment Regains Compliance with NASDAQ Minimum Bid Price Listing Requirement Dolphin Entertainment, Inc. announced the company received a letter from the Listing Qualifications Department of The NASDAQ Stock Market on November 13, 2024 indicating that it has regained compliance with the $1.00 minimum bid price requirement for continued listing on The NASDAQ Capital Market under Listing Rule 5550(a)(2). The Company regained compliance when the closing bid price for the Company's common stock was at or above $1.00 for twenty consecutive business days. Accordingly, NASDAQ considers this matter closed. Announcement • Nov 09
Dolphin Entertainment Receives Letter from the Listing Qualifications Staff of the Nasdaq Regarding Listing Rule 5640 On November 6, 2024, Dolphin Entertainment, Inc. (the Company") received a letter (the Letter") from the Listing Qualifications staff (the Staff") of the Nasdaq Stock Market LLC (Nasdaq") notifying the Company that the Staff has determined that the Company violated Nasdaq's voting rights rule set in Listing Rule 5640 (the Voting Rights Rule") due to the Company's filing of shareholder-approved amendments to the Company's articles of incorporation modifying the terms of the Company's Series C Convertible Preferred Stock (the Series C") to increase the number of votes per share of common stock the Series C is convertible into (i) from three votes per share to five votes per share, filed on September 29, 2022 (the 2022 Amendment") and (ii) from five votes per share to ten votes per share, filed on September 25, 2024 (the 2024 Amendment" and, together with the 2022 Amendment, the Amendments"). The 2022 Amendment and 2024 Amendment were previously disclosed on Current Reports on Form 8-K filed by the Company on September 29, 2022 and September 27, 2024, respectively. On October 31, 2024, the Company submitted a plan to regain compliance to the Staff in which the Company proposed to amend the Certificate of the Series C to decrease the voting rights of the Series C to the original voting power of three votes per share of common stock (the Proposed Amendment"). The Company notified Nasdaq that it plans to call a special meeting of shareholders for the purpose of voting on the Proposed Amendment and expects to file the Proposed Amendment with the office of the Secretary of the State of Florida on or before February 28, 2025 (the Compliance Date"). As such, based on the Company's submission, the Staff notified the Company in the Letter that it has determined to grant the Company an extension of time to regain compliance with the Voting Rights Rule by obtaining shareholder approval for the Proposed Amendment and filing the Proposed Amendment with the Secretary of the State of Florida on or before the Compliance Date. The Letter has no immediate impact on the listing of the Company's securities, which will continue to be listed and traded on Nasdaq, subject to the Company's compliance with the Letter by the Compliance Date. Announcement • Oct 16
Dolphin Entertainment, Inc. Provides Revenue Guidance for Fiscal Year 2024 Dolphin Entertainment, Inc. provides revenue guidance for Fiscal year 2024. For the period, the company anticipates achieving more than 20% revenue growth this year, propelling their annual revenue beyond the $50 million milestone, while simultaneously achieving positive adjusted operating income for the year. Announcement • Oct 15
Dolphin Entertainment Announces 1-for-2 Reverse Stock Split Effective October 16, 2024 as Part of its Plan to Regain Compliance with the Minimum Bid Price Continued Listing Requirement of The NASDAQ Capital Market Dolphin Entertainment, Inc. announced that the company will effect a 1-for-2 reverse split of its issued and outstanding shares of common stock. The reverse stock split will become effective October 16, 2024 at 12:01 a.m. EDT. Shares of the company's common stock will trade on a split-adjusted basis on The NASDAQ Capital Market, as of the opening of trading on October 16, 2024. The new CUSIP number for the Company's common stock will be 25686H 308. The reverse stock split is being effected as part of the company's plan to regain compliance with the $1.00 minimum bid price continued listing requirement of The NASDAQ Capital Market and to have the additional authorized shares of common stock available to provide additional flexibility regarding the potential use of shares of common stock for business and financial purposes in the future. Announcement • Sep 25
Hilarie Bass Joins Board of Directors of Dolphin Entertainment, Inc Dolphin announced that its shareholders voted to approve Hilarie Bass to serve as an independent director of the Board at Dolphin's 2024 Annual Meeting, which took place on September 24, 2024. Hilarie Bass is an esteemed corporate advisor and nationally-renowned litigator. Until December 2018, Bass was President of Greenberg Traurig, where she represented numerous Fortune 500 companies for more than 30 years. Prior to being president of the law firm, she served as Chair of the 600-member Litigation Department for eight years. Bass has served as President of the American Bar Association, and her expertise as a trial lawyer was recognized by her invitation to be a member of the American College of Trial Lawyers. Bass has also served as Chair of the University of Miami Board of Trustees and as Chair of the Board of United Way of Miami-Dade. She currently is a member of the UHealth Board of Directors, the Board of the ABA Retirement Fund, and the American Bar Endowment. Bass serves as President of the Bass Institute for Diversity and Inclusion, an entity she created in 2019, along with the Bass Foundation. In her role at the Institute, she has spoken around the world on issues of gender parity, women's leadership, and the retention and elevation of women in the corporate context. The Board nominated Bass to serve as a director because of her business experience as the president of a leading global law firm as well as her extensive management and legal experience. Reported Earnings • Aug 16
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: US$0.084 loss per share (improved from US$0.60 loss in 2Q 2023). Revenue: US$11.4m (up 3.8% from 2Q 2023). Net loss: US$1.62m (loss narrowed 80% from 2Q 2023). Revenue exceeded analyst estimates by 9.0%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 8.2% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has fallen by 59% per year, which means it is performing significantly worse than earnings. New Risk • Aug 15
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: US$22m Forecast net loss in 1 year: US$1.2m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (56% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable next year (US$1.2m net loss next year). Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (US$18.8m market cap). Announcement • Aug 15
Dolphin Entertainment, Inc. Receives A Deficiency Notice from the Nasdaq Stock Market On August 12, 2024, Dolphin Entertainment Inc. (the Company") received a deficiency notice from The Nasdaq Stock Market (Nasdaq") informing the Company that its common stock, par value $0.015 per share (the Common Stock"), fails to comply with the $1 minimum bid price required for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) based upon the closing bid price of the Common Stock for the 30 consecutive business days prior to the date of the notice from Nasdaq. Nasdaq's notice has no immediate effect on the listing of the Common Stock on The Nasdaq Capital Market and, at this time, the Common Stock will continue to trade on The Nasdaq Capital Market under the symbol DLPN". Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until February 10, 2025, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Common Stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days prior to February 10, 2025. If the Company is unable to regain compliance by February 10, 2025, the Company may be eligible for an additional 180 calendar day compliance period to demonstrate compliance with the minimum bid price requirement. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the minimum bid price requirement, and will need to provide written notice to Nasdaq of its intention to cure the deficiency during the second compliance period. If the Company does not qualify for the second compliance period or fails to regain compliance during the second 180 calendar day period, Nasdaq will notify the Company of its determination to delist the Common Stock, at which point the Company would have an opportunity to appeal the delisting determination to a Hearings Panel. The Company intends to monitor the closing bid price of its Common Stock and is considering its options to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules, including holding its 2024 annual meeting of shareholders on September 24, 2024 (the Annual Meeting"). At the Annual Meeting, the Company will seek shareholder approval for the option to implement a reverse stock split of the Company's Common Stock at a ratio of 1-for-2 (the Reverse Stock Split"). Announcement • Aug 05
Dolphin Entertainment, Inc., Annual General Meeting, Sep 24, 2024 Dolphin Entertainment, Inc., Annual General Meeting, Sep 24, 2024. Location: 200 south biscayne blvd., 39th floor, florida 33131., miami United States New Risk • Jul 21
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 61% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (61% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (US$18.5m market cap). Announcement • Jul 15
Dolphin Entertainment, Inc. (NasdaqCM:DLPN) acquired Elle Communications LLC. Dolphin Entertainment, Inc. (NasdaqCM:DLPN) acquired Elle Communications LLC on July 15, 2024. Danielle Finck and Silvie Snow-Thomas will lead Elle Communications, with its entire senior leadership team and staff welcomed into Dolphin Entertainment. As per the terms, Elle Communications will become a division of entertainment PR powerhouse 42West. John Burns of Clare Advisors facilitated the transaction between Dolphin Entertainment and Elle Communication. Malte Farnaes served as legal counsel for Elle Communications. K&L Gates LLP acted as legal advisor for Dolphin Entertainment, Inc.Dolphin Entertainment, Inc. (NasdaqCM:DLPN) completed the acquisition of Elle Communications LLC on July 15, 2024. Reported Earnings • May 17
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: US$0.018 loss per share (improved from US$0.23 loss in 1Q 2023). Revenue: US$15.2m (up 54% from 1Q 2023). Net loss: US$326.8k (loss narrowed 89% from 1Q 2023). Revenue exceeded analyst estimates by 62%. Earnings per share (EPS) also surpassed analyst estimates by 87%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has fallen by 48% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 08
Consensus EPS estimates fall by 133% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$51.4m to US$49.5m. Losses expected to increase from US$0.09 per share to US$0.21. Entertainment industry in the US expected to see average net income growth of 46% next year. Consensus price target of US$6.00 unchanged from last update. Share price fell 17% to US$1.15 over the past week. Reported Earnings • Apr 02
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: US$1.69 loss per share (further deteriorated from US$0.49 loss in FY 2022). Revenue: US$43.1m (up 6.5% from FY 2022). Net loss: US$24.4m (loss widened 410% from FY 2022). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 28%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has fallen by 53% per year, which means it is performing significantly worse than earnings. Announcement • Mar 30
Dolphin Entertainment, Inc. Reports Consolidated Impairment Charges for the Fourth Quarter Ended December 31, 2023 Dolphin Entertainment, Inc. reported consolidated Impairment charges for the fourth quarter ended December 31, 2023. For the period, the company reported Impairment of goodwill of $2,966,815 compared to $906,337 a year ago. Reported Earnings • Nov 17
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: US$0.27 loss per share (further deteriorated from US$0.14 loss in 3Q 2022). Revenue: US$10.2m (up 2.9% from 3Q 2022). Net loss: US$3.86m (loss widened 195% from 3Q 2022). Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates significantly. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Breakeven Date Change • Nov 16
Forecast breakeven date pushed back to 2025 The analyst covering Dolphin Entertainment previously expected the company to break even in 2024. New forecast suggests losses will reduce by 42% per year to 2024. The company is expected to make a profit of US$7.71m in 2025. Average annual earnings growth of 97% is required to achieve expected profit on schedule. Announcement • Nov 02
Dolphin Entertainment, Inc. has completed a Follow-on Equity Offering in the amount of $2.31 million. Dolphin Entertainment, Inc. has completed a Follow-on Equity Offering in the amount of $2.31 million.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 1,400,000
Price\Range: $1.65
Discount Per Security: $0.13 Announcement • Oct 11
Dolphin Entertainment, Inc., Annual General Meeting, Nov 20, 2023 Dolphin Entertainment, Inc., Annual General Meeting, Nov 20, 2023, at 09:00 US Eastern Standard Time. Location: 200 South Biscayne Boulevard, 39th Floor Miami Florida United States Agenda: To elect seven directors to hold office until the 2024 annual meeting of shareholders or until their respective successors are duly elected and qualified; to ratify the appointment of Grant Thornton LLP as the Company’s independent registered public accountants for the fiscal year ending December 31, 2023; and to transact such other business as may properly come before the Annual Meeting and any adjournment or postponement of the Annual Meeting. New Risk • Oct 08
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 72% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$5.4m free cash flow). Shareholders have been substantially diluted in the past year (72% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable next year (US$3.7m net loss next year). Market cap is less than US$100m (US$34.2m market cap). Announcement • Oct 05
Dolphin Entertainment, Inc. (NasdaqCM:DLPN) acquired Special Projects. Dolphin Entertainment, Inc. (NasdaqCM:DLPN) acquired Special Projects on October 3, 2023. Special Projects will operate under its own name, with Oliveri and Vecchiarelli remaining as co-Chief Executive Officers, with its entire senior leadership team and staff welcomed into Dolphin Entertainment. K&L Gates LLP served as legal advisor to Dolphin Entertainment. DLA Piper LLP served as legal advisor to Special Projects.Dolphin Entertainment, Inc. (NasdaqCM:DLPN) completed the acquisition of Special Projects on October 3, 2023. New Risk • Aug 16
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: US$15m Forecast net loss in 1 year: US$3.7m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-US$5.4m free cash flow). Minor Risks Currently unprofitable and not forecast to become profitable next year (US$3.7m net loss next year). Share price has been volatile over the past 3 months (12% average weekly change). Shareholders have been diluted in the past year (35% increase in shares outstanding). Market cap is less than US$100m (US$25.4m market cap). Reported Earnings • Aug 15
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: US$0.60 loss per share (down from US$0.063 profit in 2Q 2022). Revenue: US$11.0m (up 7.1% from 2Q 2022). Net loss: US$7.96m (down US$8.56m from profit in 2Q 2022). Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 28% per year, which means it is performing significantly worse than earnings. Announcement • Aug 09
Dolphin Entertainment, Inc. to Report Q2, 2023 Results on Aug 14, 2023 Dolphin Entertainment, Inc. announced that they will report Q2, 2023 results on Aug 14, 2023 New Risk • Jul 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-US$6.3m free cash flow). Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Shareholders have been diluted in the past year (44% increase in shares outstanding). Market cap is less than US$100m (US$27.5m market cap). Breakeven Date Change • May 17
Forecast breakeven date pushed back to 2024 The analyst covering Dolphin Entertainment previously expected the company to break even in 2023. New forecast suggests losses will reduce by 85% to 2023. The company is expected to make a profit of US$4.83m in 2024. Average annual earnings growth of 160% is required to achieve expected profit on schedule. Reported Earnings • May 17
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: US$0.23 loss per share (further deteriorated from US$0.091 loss in 1Q 2022). Revenue: US$9.89m (up 7.8% from 1Q 2022). Net loss: US$2.97m (loss widened 275% from 1Q 2022). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 156%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Major Estimate Revision • Apr 02
Consensus EPS estimates increase from loss to US$0.02 profit The consensus outlook for fiscal year 2023 has been updated. 2023 forecast for profit of -US$0.01 instead of a loss of US$0.02 per share previously. Revenue forecast unchanged at US$49.0m. Entertainment industry in the US expected to see average net income growth of 18% next year. Consensus price target of US$7.00 unchanged from last update. Share price fell 5.2% to US$1.81 over the past week. Breakeven Date Change • Apr 02
Forecast breakeven date moved forward to 2023 The analyst covering Dolphin Entertainment previously expected the company to break even in 2024. New forecast suggests the company will make a profit of US$237.1k in 2023. Average annual earnings growth of 135% is required to achieve expected profit on schedule. Announcement • Nov 16
Dolphin Entertainment, Inc. (NasdaqCM:DLPN) acquired Socialyte, LLC from NSL Ventures, LLC for $13 million. Dolphin Entertainment, Inc. (NasdaqCM:DLPN) acquired Socialyte, LLC from NSL Ventures, LLC for $13 million on November 14, 2022. Consideration includes $5 million cash, 1.35 million shares, and a $3 million unsecured promissory note, which is to be repaid in two equal installments. Additional 0.68 million shares in satisfaction of the working capital adjustment will also be paid. $5 million of earnout up to $5 million, upon meeting certain financial targets will also be paid. The cash consideration was funded with a $3 million loan, carries a fixed rate of 7.37%, and has a five-year term, from Bank Prov. Team of 40 employees of Socialyte, will continue to operate under its own name out of Dolphin's New York and L.A. offices. Sarah Boyd will remain as Chief Executive Officer of Socialyte and Evan Luzzatto will continue as Chairman of Socialyte and as an advisor to Bill O'Dowd. Clayton Parkerof K&L Gates LLP served as legal advisor to Dolphin Entertainment. Allan J.P. Rooney of Rooney Nimmo served as legal advisor and FTI Capital Advisors served as financial advisor to Socialyte.
Dolphin Entertainment, Inc. (NasdaqCM:DLPN) completed the acquisition of Socialyte, LLC from NSL Ventures, LLC on November 14, 2022. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: US$0.14 loss per share (down from US$0.019 profit in 3Q 2021). Revenue: US$9.90m (up 5.3% from 3Q 2021). Net loss: US$1.31m (down US$1.46m from profit in 3Q 2021). Revenue missed analyst estimates by 7.4%. Earnings per share (EPS) also missed analyst estimates by 155%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. Independent Director Claudia Grillo was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Seeking Alpha • Oct 04
Dolphin Is In Show Me Mode Summary
Dolphin has regained compliance with SEC and NASDAQ.
The financials are trending in the right direction but leave room for excitement.
Dolphin 2.0 is making slow progress.
I maintain my long term bullish stance but without much enthusiasm.
After my recent article on Dolphin Entertainment (DLPN) shares went on to appreciate by almost 50% only to sell off again to new 52 week lows around $2.50. While I am maintaining a long term bullish stance on the company, I do find many other opportunities more compelling in this market. In this piece, I would like to provide readers with the recent decidedly mixed developments.
As a reminder, Dolphin is a leading independent entertainment marketing and premium content development company. It consists of the supergroup of companies including 42West, Shore Fire, Viewpoint, Be Social and The Door for marketing pop culture. Additionally, there is Dolphin 2.0 where the company is using pop culture to market assets that it owns stakes in.
Dolphin Super Group (Company slide deck)
In my previous piece, I made the case on a sum of the parts basis that DLPN was likely undervalued:
There is major upside in every single part of the business, be it Dolphin 1.0 or the individual bets within 2.0. My conservative estimates see little downside at this price with up to 100% upside based on 2022 projections and the ownership stakes DLPN has accumulated.
Financials on the right track but uninspiring
First and foremost, DLPN has regained compliance with the SEC and NASDAQ listing requirements by publishing its 10-K and other financials. As it turns out, the company soon after dismissed and replaced its auditor BDO USA with Grant Thornton. People familiar with the auditing process told me that Grant Thornton was a much better fit for Dolphin. I am quite confident the late filings over the company's history will be behind Dolphin now after the move to Grant Thornton.
Moreover, the company is making good progress towards profitability. I had assumed 25% revenue growth for 2022, which is roughly correct so far in H1. EBITDA was also first time positive in Q2 at around $0.5M. However, the CEO stated "we're on pace to cross $40.0 million in annual revenue this year", which would only represent about 15% growth and with expenses growing similarly, I cannot maintain my EBITDA projections of $3-4M for this year. A big part of that is the delay in live events and the company wants to present its strategy for 2023 by year-end.
DLPN income stmt (TIKR)
At the LD Micro Invitational XII the company provided some more information regarding those numbers. Notably, adjusted EBITDA of around $2M for 2022 and revenue exceeding $50M in 2023. I view these as quite likely although I feel like the adjustments do some heavy lifting for 2022. Nevertheless, keeping costs on a similar trajectory adjusted EBITDA for next year could comfortably exceed $5M, which compares to the current EV of around $30M. While this alone is not inspiring, Dolphin 2.0 comes on top.
The company issued about 1.5m shares or about 18% of outstanding shares at prices between $3.47 and $5.15 with an average of about $4.20. Hopefully these funds will be put to good use because the dilution at these prices not only hurts but has certainly aggravated shareholders. In total, Dolphin is allowed to sell $25M worth of stock or about 3M shares. The company has extra modified the terms of the convertibles to keep Bill above 50% of voting control in the event they sell too many shares at too cheap a price.
Dolphin 2.0 updates
In my prior piece I listed the initiatives and ownership stakes as follows:
Fan Jolt, a platform creating memorable interactions between fans and a curated list of premier talent to support their favorite causes: 5% to 10%
Crafthouse Cocktails, a pioneering brand of ready-to-drink, all-natural classic cocktails: 5% to 10%
NFT marketplace: 10%
Flower girls, a female-led NFT collection: 30%
Midnight Theater: 13% (on $1M investment) with option to increase to 25%
I am delighted to see Midnight Theater, a state-of-the-art contemporary variety theater and restaurant in the heart of Manhattan, having its official opening week and being a success so far. It is one of the most "tangible" 2.0 initiative, especially compared to NFTs where Dolphin is developing its pipeline as well. They now have 8 collections that are wholly owned or in partnership with others. While the space has cooled substantially, there could be a wide range of outcomes for Dolphin here. Certainly $2M seems likely as a low estimate in terms of equity value to DLPN?
These 3 are fee only Dolphin 1.0 business.
Venice Music Collective
Home | Domonos NFTs
Dinner Roll Campaign
These 3 are Dolphin 1.0 fee + an undisclosed % of revenue sharing in any upside.
Cybella – Bella Hadid + ReBase NFT Collection
The Symbols
CHFTY Pizzas
Dolphin is a partner in this brand, with presumably a 50/50 split.
The Flower Girls ― A Fine Art NFT Collection by Varvara Alay (flowergirlsnft.com)
Dolphins owns 100% of the soon to be re-released Creature Chronicles. Announcement • Sep 02
Dolphin Entertainment, Inc., Annual General Meeting, Sep 27, 2022 Dolphin Entertainment, Inc., Annual General Meeting, Sep 27, 2022, at 09:00 US Eastern Standard Time. Location: 200 South Biscayne Boulevard, 5th Floor Florida United States Agenda: To elect seven directors to hold office until the 2023 annual meeting of shareholders or until their respective successors are duly elected and qualified; to ratify the appointment of Grant Thornton LLP as the Company’s independent registered public accountants for the fiscal year ending December 31, 2022; to approve, for purposes of complying with applicable Nasdaq Listing Rules, the potential issuance and sale of 20% or more of the Company’s common stock pursuant to the Company’s purchase agreement with Lincoln Park Capital Fund LLC pursuant to which Lincoln Park has agreed to purchase from time to time, up to $25,000,000 of shares of common stock; and to transact other business. Breakeven Date Change • Aug 18
Forecast breakeven date pushed back to 2023 The 2 analysts covering Dolphin Entertainment previously expected the company to break even in 2022. New consensus forecast suggests losses will reduce by 84% to 2022. The company is expected to make a profit of US$2.39m in 2023. Average annual earnings growth of 166% is required to achieve expected profit on schedule. Breakeven Date Change • Jul 20
Forecast breakeven date pushed back to 2023 The 2 analysts covering Dolphin Entertainment previously expected the company to break even in 2022. New consensus forecast suggests losses will reduce by 65% to 2022. The company is expected to make a profit of US$5.72m in 2023. Average annual earnings growth of 138% is required to achieve expected profit on schedule. Reported Earnings • Jul 19
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: US$0.091 loss per share (up from US$0.72 loss in 1Q 2021). Revenue: US$9.18m (up 28% from 1Q 2021). Net loss: US$792.5k (loss narrowed 85% from 1Q 2021). Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 27%, compared to a 32% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Price Target Changed • Jul 01
Price target decreased to US$12.00 Down from US$30.00, the current price target is an average from 2 analysts. New target price is 256% above last closing price of US$3.37. Stock is down 61% over the past year. The company is forecast to post earnings per share of US$0.40 next year compared to a net loss per share of US$0.85 last year. Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. Independent Director Claudia Grillo was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • May 26
Dolphin Entertainment Receives Non-Compliance Letter from Nasdaq On May 18, 2022, Dolphin Entertainment, Inc. (the Company") received a notice (the Notice") from the Nasdaq Listing Qualifications staff of The Nasdaq Stock Market LLC (Nasdaq") indicating that, as a result of not having timely filed its Quarterly Report on Form 10-Q for the period ended March 31, 2022 (the Form 10-Q"), the Company remains in non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission. As previously disclosed on Form 8-K filed with the Securities and Exchange Commission on April 25, 2022, on April 19, 2022, the Company previously received a notice from Nasdaq indicating that as a result of not having timely filed its Annual Report on Form 10-K for the period ended December 31, 2021 (the Form 10-K"), the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1). The Notice has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Capital Market. The Notice provides that the Company must submit a plan to regain compliance with Nasdaq Listing Rule 5250(c)(1). If the plan is accepted by Nasdaq, then Nasdaq can grant the Company up to 180 calendar days from the due date of the Form 10-K, or October 17, 2022, to regain compliance. If Nasdaq does not accept the Company's plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel. Announcement • Apr 26
Dolphin Entertainment Receives Notice from Nasdaq Regarding Delayed Filing of Annual Report on Form 10-K Dolphin Entertainment filed a Notification of Late Filing on Form 12b-25 indicating that the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the "Annual Report") would be delayed. In addition, the Company filed a Form 8-K indicating that the Company would be unable to file its Annual Report within the 15-day extension. As expected, Dolphin received a notice from The Nasdaq Stock Market LLC stating that because the Company has not yet filed its Form 10-K, the Company is no longer in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the "SEC"). This notification has no immediate effect on the listing of the Company's shares on Nasdaq. However, if the Company fails to timely regain compliance with the Nasdaq Listing Rule, the Company's common stock will be subject to delisting from Nasdaq. Under Nasdaq rules, the Company has 60 calendar days to either file the Form 10-K or to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule. If the Company does not file the 10-K but submits a plan to regain compliance, and Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for filing the Form 10-K to regain compliance. If Nasdaq does not accept the Company's plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel. The Company expects to file the Form 10-K within the 60-day period described above, which would eliminate the need for the Company to submit a formal plan to regain compliance. Announcement • Apr 03
Dolphin Entertainment, Inc. announced delayed annual 10-K filing On 04/01/2022, Dolphin Entertainment, Inc. announced that they will be unable to file their next 10-K by the deadline required by the SEC. Reported Earnings • Nov 20
Third quarter 2021 earnings released: EPS US$0.018 (vs US$0.021 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$9.40m (up 47% from 3Q 2020). Net income: US$141.7k (up US$279.3k from 3Q 2020). Profit margin: 1.5% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Board Change • Nov 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. Independent Director Claudia Grillo was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Oct 03
Director Charles Dougiello has left the company On the 23rd of September, Charles Dougiello's tenure as Director ended after 2.3 years in the role. As of June 2021, Charles still personally held 68.23k shares (US$637k worth at the time). Charles is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 6.29 years. Board Change • Oct 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. Independent Director Claudia Grillo was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Sep 29
Director Charles Dougiello has left the company On the 23rd of September, Charles Dougiello's tenure as Director ended after 2.3 years in the role. As of June 2021, Charles still personally held 68.23k shares (US$637k worth at the time). Charles is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 6.21 years. Reported Earnings • Aug 21
Second quarter 2021 earnings released: EPS US$0.18 (vs US$0.62 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$8.64m (up 66% from 2Q 2020). Net income: US$1.36m (up US$4.30m from 2Q 2020). Profit margin: 16% (up from net loss in 2Q 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Price Target Changed • Aug 18
Price target increased to US$30.00 Up from US$28.00, the current price target is an average from 2 analysts. New target price is 196% above last closing price of US$10.13. Stock is up 127% over the past year. Major Estimate Revision • Aug 18
Consensus revenue estimates increase to US$35.4m The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from US$31.8m to US$35.4m. Forecast losses expected to reduce from -US$0.85 to -US$0.40 per share. Entertainment industry in the US expected to see average net income growth of 20% next year. Consensus price target up from US$28.00 to US$30.00. Share price was steady at US$10.13 over the past week. Breakeven Date Change • Aug 18
Forecast to breakeven in 2022 The 2 analysts covering Dolphin Entertainment expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of US$3.58m in 2022. Average annual earnings growth of 135% is required to achieve expected profit on schedule. Announcement • May 19
Dolphin Entertainment, Inc. announced delayed 10-Q filing On 05/18/2021, Dolphin Entertainment, Inc. announced that they will be unable to file their next 10-Q by the deadline required by the SEC. Announcement • Apr 03
Dolphin Entertainment, Inc. announced delayed annual 10-K filing On 04/01/2021, Dolphin Entertainment, Inc. announced that they will be unable to file their next 10-K by the deadline required by the SEC. Is New 90 Day High Low • Feb 10
New 90-day high: US$5.03 The company is up 57% from its price of US$3.20 on 11 November 2020. The American market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 38% over the same period. Price Target Changed • Jan 31
Price target raised to US$10.00 Up from US$8.92, the current price target is an average from 3 analysts. The new target price is 158% above the current share price of US$3.88. As of last close, the stock is up 14% over the past year. Is New 90 Day High Low • Jan 13
New 90-day high: US$4.61 The company is up 32% from its price of US$3.51 on 14 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 22% over the same period. Announcement • Dec 15
Dolphin Entertainment Regains Compliance with NASDAQ Listing Requirements Dolphin Entertainment, Inc. announced on December 14, 2020 that the Company received a letter from the Listing Qualifications Department of The NASDAQ Stock Market on December 11, 2020 indicating that it has regained compliance with the $1.00 minimum bid price requirement for continued listing on The NASDAQ Capital Market under Listing Rule 5550(a)(2). The Company regained compliance with the NASDAQ's requirements when the closing bid price for the Company's common stock was at or above $1.00 for ten consecutive business days. Accordingly, NASDAQ considers this matter closed.