Positive Operating Income Even Including Non-Cash Depreciation & Amortization Expense

Net Income of $1.3M Equals $0.17 Basic Earnings Per Share

Completes Growth to Positive Working Capital With Surplus of $1.26M

NFTs, Dolphin's First of Dolphin 2.0 Initiatives, Have Launched

MIAMI, FL / ACCESSWIRE / August 16, 2021 / 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, 2021.

"Three major financial milestones were achieved this quarter," stated Bill O'Dowd, CEO of Dolphin Entertainment. "First, revenues of $8.6M, which topped by 20% the previous record of only one quarter prior. Secondly, positive operating income for the first time as a NASDAQ company when including the non-cash expense of depreciation and amortization. Operating income is the P&L metric we use to gauge ourselves, so this was very meaningful to us. And, third, a working capital surplus for the first time in Dolphin's history as a public company, achieved in 3 ½ years after uplisting to NASDAQ and despite pursuing an acquisition strategy to assemble a Super Group of six best-in-class marketing companies."

"All together, these 3 milestones show that we are a financially-sound, profitable and growing company," continued O'Dowd. "That is a great platform from which to accelerate our first year of Dolphin 2.0 initiatives, and make investments in opportunities we see to own content, live events, and consumer products that we already know we can market as well as anyone else."

Recent Highlights

• Total Q2 revenue increased to $8.6 million, compared to $5.2 million in Q2 2020;
• Operating income for the quarter ended June 30, 2021 of $56,293 including non-cash expense from depreciation and amortization of $478,270 as compared to an operating loss of $179,038, which included non-cash expense from depreciation and amortization of $496,461, for the same period in the prior year.
• Cash and cash equivalents of $9.3 million as of June 30, 2021, compared to $7.9 million as of December 31, 2020, not including restricted cash.
• Net Income for the quarter ended June 30, 2021 of $1.3 million, included the benefit of a net $1.0 million in non-cash items stemming from a $1.0 million gain on extinguishment of debt and a positive change in fair value of derivative liabilities, warrants, put rights and contingent consideration of $498,974, partially offset by depreciation and amortization of $478,270, compared to a net loss of $2.9 million, which included non-cash items from depreciation and amortization of $ 496,461, and a negative change in fair value of derivative liabilities, warrants, put rights and contingent consideration items in the amount of $1.7 million, for the same period in the prior year.
• Dolphin Entertainment and FTX announced a partnership to create NFT marketplace programs for major sports and entertainment brands
• Dolphin was added to the Russell Microcap® Index
• The Door welcomed Häagen-Dazs and Holle to its roster of clients
• 42West was involved in various capacities with 13 films that earned a total of 32 Academy Award nominations and won six Oscars.
• Shore Fire clients Carole King and Todd Rundgren were inducted into the Rock & Roll Hall of Fame.
• Dolphin Entertainment's NFTs Division entered its 1^st vertical, Sports, with First NFT Partnership with Hall of Fame Resort & Entertainment; Announced Heisman Trophy Winners and Pro Football Hall of Fame Inductees Tim Brown, Earl Campbell and Doak Walker To Kick-Off NFT Collection
• Dolphin Entertainment's NFTs Division entered its 2^nd vertical, Culinary, with NFT collectible recipe card system, launching with top chefs throughout the United States; Partnered for NFT collection with world renowned artist Romero Britto, in celebration of the 20^th anniversary of South Beach Wine & Food Festival.

Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: August 16, 2021, at 4:30 pm ET
Toll-Free: 844-407-9500
International: 862-298-0850 Webcast: https://www.webcaster4.com/Webcast/Page/2225/42377

Conference Call Replay Information
Toll-Free: 877-481-4010
Reference ID: 42377
Webcast replay: https://www.webcaster4.com/Webcast/Page/2225/42377

About Dolphin Entertainment, Inc.

Dolphin Entertainment (NASDAQ: DLPN) 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, gaming 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. Dolphin's Non-Fungible Tokens (NFTs) Division is dedicated to designing, producing, distributing and promoting NFTs for itself and its clients within the film, television, music, gaming, culinary and technology industries. The NFTs division is comprised of executives across all six of Dolphin's wholly-owned subsidiaries blending their creative expertise in creative services, digital design, production, marketing, sales and public relations. 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
james@haydenir.com

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)

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

SOURCE: Dolphin Entertainment, Inc.