MIAMI, FL / ACCESSWIRE / July 18, 2022 / Dolphin Entertainment, Inc. (NASDAQ: DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the first quarter ended March 31, 2022.

"2022's financial and operating performance is off to a strong start," said Bill O'Dowd, CEO of Dolphin Entertainment. "First, our Q1 revenue increased 28% year over year to $9.2 million, which represents pure organic growth derived from the cross-selling of services within our Super Group of entertainment marketing companies. Secondly, on the balance sheet, we have dramatically reduced our debt from its high of over $16 million at the apex of our acquisition strategy to build the Super Group, to a record low of below $6 million, the vast majority of which is long-term debt, and all of which is far less than our cash of $9.6 million. Third, all puts have been paid and all but one Earn-Out contingent consideration has been settled from all six of our acquisitions, and we now have shareholders' equity of just under $25 million. This complete transformation of our balance sheet has allowed us to remove our financial statement disclosure on going concern , and we believe serves as a differentiating factor for us in the marketplace."

Mr. O'Dowd continued, "We're excited to continue the strong momentum into the second half of this year and advance our existing Dolphin 2.0 investments, including Midnight Theatre (the Hidden Leaf restaurant opened on July 6, with the theater itself scheduled to open in September), Dolphin's NFT collections (with multiple drops planned for this summer), and Crafthouse Cocktails. We're also excited by our recently announced multi-year agreement with IMAX to co-produce feature documentaries. "Blue Angels," our first project, is already in production, with a planned H2 2023 release. And, of course, we'll continue to explore both acquisitions and additional 2.0 investments, based on the strength of our balance sheet and opportunities in the market."

Q1 2022 and Recent Highlights

• Total Q1 2022 revenue increased 28% to $9.2 million, compared to $7.2 million in Q1 2021;
• Operating loss for the quarter ended March 31, 2022 of $(963,709), includes non-cash items from depreciation and amortization of $407,238 and a gain from the change in the fair value of contingent consideration of $763,900, along with one-time and non-recurring professional fee expenses of approximately $400,000, primarily related to our 2021 audit and various 2.0 initiatives, compared to an operating loss of $(1,559,940) million for the quarter ended March 31, 2021, which included non-cash items from depreciation and amortization of $482,712 and a loss from the change in the fair value of contingent consideration of $365,000.
• Net loss for the quarter ended March 31, 2022 was $(792,481) which included non-cash items from (i) depreciation and amortization of $407,238, (ii) $763,900 gain from the change in the fair value of contingent consideration, (iii) $347,858 gain from the changes in the fair value of a convertible note payable and warrants, and (iv) one-time and non-recurring professional fee expenses of approximately $400,000, primarily related to our 2021 audit and various 2.0 initiatives, as compared to a net loss of $(5,271,985) million for the quarter ended March 31, 2021, which included non-cash items from (i) depreciation and amortization of $482,712, (ii) $365,000 loss from the change in the fair value of contingent consideration and (iii) $3,505,432 loss from the changes in the fair value of derivative liabilities, convertible notes payable, warrants and put rights.
• Cash and cash equivalents of $9.6 million as of March 31, 2022 as compared to $7.7 million as of March 31, 2021.
• Working capital surplus as of March 31, 2022 of $2.8 million, compared to a working capital deficit of $4.0 million as of March 31, 2021.
• 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.
• Web3 marketing, consulting and communications agency, We Come In Peace (WCIP), has developed a full slate of metaverse related clients and NFT projects, including ones with supermodel Bella Hadid and music industry mogul Troy Carter. In the first quarter of 2022, Dolphin Entertainment and WCIP partnered with celebrity chefs and restaurateurs Tom Colicchio and Spike Mendelsohn on Chfty, a collection of NFTs that provide owners with access to a culinary community led by the founders with virtual and in-person cooking events. WCIP has multiple NFT collections scheduled for release this summer.
• 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.
• 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.
• 42West and The Door were named to the Observer's annual list of 50 Most Powerful Firms. 42West was ranked #2 in the nation, the highest-ranking of any entertainment firm and The Door was ranked at #22. Kelly Patterson, Senior Account Supervisor of The Door, was also recognized by the publication on the PR Rising Stars 2022 list for her integral role on the Integrated Marketing and Lifestyle teams.
• Shore Fire Media helmed the red carpet at Bud Light Super Bowl Music Fest, as the festival's music agency since 2019. Launched three nights of All-Star Talent including Green Day & Miley Cyrus; Blake Shelton & Gwen Stefani with Mickey Guyton; and Halsey & Machine Gun Kelly; along with Special Guests.

Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Date: Monday, July 18, 2022

Time: 4:30 PM Eastern Time
Toll Free: 888-506-0062 International: 973-528-0011

Participant Access Code: 239834
Webcast: https://www.webcaster4.com/Webcast/Page/2225/46137

Conference Call Replay Information
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 46137
Webcast Replay: https://www.webcaster4.com/Webcast/Page/2225/46137

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
james@haydenir.com

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets

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

SOURCE: Dolphin Entertainment, Inc.