Core Insights - NET Recovery has announced national treatments utilizing its FDA-cleared neurostimulation device, the NET Device, to address the addiction crisis, particularly focusing on opioid and stimulant use [1] Company Overview - NET Recovery is associated with Elle Communications, a subsidiary of Dolphin (NASDAQ:DLPN) [1] - The NET Device has shown potential in recent research to significantly reduce both opioid and stimulant use following treatment [1] Industry Context - The announcement comes amid record-high overdose deaths and a lack of FDA-approved medications specifically for stimulant addiction [1] - A peer-reviewed study published in Frontiers in Psychiatry supports the efficacy of the NET Device in reducing substance use [1]

Financial Data and Key Metrics Changes - Dolphin Entertainment reported a revenue increase of 16.7% year-over-year to $14.8 million in Q3 2025, with operating income turning positive at $300,000 despite $600,000 in non-cash amortization expenses [3][9] - Adjusted operating income reached over $1 million, representing 6.9% of revenue, up from 4.5% in Q2 2025 [4][9] - The net loss for Q3 2025 was $365,494, a significant improvement from a net loss of $8.7 million in Q3 2024 [9][10] Business Line Data and Key Metrics Changes - The performance was driven by organic growth across the same agencies as the previous year, indicating strong operational consistency [4][14] - 42West, a key subsidiary, showed strong performance with a positive outlook for Q4 due to a good lineup of films and successful festival participation [16] Market Data and Key Metrics Changes - The company noted that it has been relatively unaffected by external factors such as tariffs and the government shutdown, maintaining strong operational results [28] Company Strategy and Development Direction - The company is focused on leveraging cross-selling opportunities among its subsidiaries to enhance growth and client acquisition [14][15] - Dolphin Entertainment aims to balance investing in growth while achieving profitability, with expectations of continued strong performance into Q4 and beyond [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting the strength of its diversified revenue and client base [39] - The CEO emphasized the importance of operational performance and the positive reception of their recent film, Youngblood, at the Toronto International Film Festival [25][26] Other Important Information - The company has simplified its financial statements, reducing below-the-line expenses to primarily interest expense, which clarifies operational performance [5][6] - The CEO has initiated a stock buying program, indicating confidence in the company's undervalued stock price [31][34] Q&A Session Summary Question: What were the key drivers of organic growth? - Management highlighted that the organic growth of 16.7% was driven by consistent performance across the same agencies without one-time events [12][14] Question: How does the fourth quarter look for 42West? - Management expressed optimism for Q4, citing a strong start and good momentum from 42West's recent performance [16] Question: Can you comment on the impact of recent hires at The Door and Disrupt Agency? - Management noted that strategic hires at The Door are enhancing its client base and revenue, with significant year-over-year growth [17][18] Question: How is Shortfire Media performing? - Management indicated that Shortfire Media has a broad client base and is collaborating effectively with other subsidiaries, contributing to overall growth [20][21] Question: What is the outlook for Youngblood? - Management is optimistic about announcing a distribution partner for Youngblood soon, following its successful premiere at the Toronto International Film Festival [24][26] Question: How is the company balancing investment and growth? - Management discussed the classic balance of investing in growth while achieving profitability, with confidence in continued strong performance [28][30]

Revenue Performance - For the three months ended September 30, 2025, total revenue was $14,796,309, an increase of approximately $2.1 million compared to $12,682,437 for the same period in 2024[160]. - For the nine months ended September 30, 2025, total revenue reached $41,053,549, up from $39,367,418 in the same period in 2024, driven by a $5.0 million increase in entertainment publicity and marketing revenue[160]. - Entertainment publicity and marketing segment accounted for 100% of revenue for the three months ended September 30, 2025, and 99.8% for the nine months ended September 30, 2025[155]. - Revenue from the content production segment was $92,033 for the nine months ended September 30, 2025, compared to $3,421,141 in the same period in 2024, indicating a significant decline[154]. - Revenues from content production decreased by approximately $3.3 million during the nine months ended September 30, 2025, compared to the same period in the prior year[161]. - The company recorded $3,421,141 in revenue related to the documentary "The Blue Angels" during the nine months ended September 30, 2024[152]. - The company expects to derive additional revenues in 2025 from "The Blue Angels" documentary from sales in IMAX theatres and museums[152]. Expenses and Losses - Total expenses for the nine months ended September 30, 2025, were approximately $42.6 million, a decrease from $48.5 million for the same period in 2024[162]. - Payroll and benefits expenses increased by approximately $2.7 million for the nine months ended September 30, 2025, primarily due to the inclusion of Elle and Always Alpha payroll expenses[163]. - Net loss for the nine months ended September 30, 2025, was approximately $4.1 million or $(0.36) per share, compared to a net loss of approximately $10.6 million or ($1.07) per share for the same period in 2024[175]. Cash Flow and Debt - Cash used in operating activities was approximately $2.6 million for the nine months ended September 30, 2025, an increase of approximately $1.6 million from the prior year[178]. - Total debt amounted to $25.4 million as of September 30, 2025, an increase of $3.0 million from $22.4 million as of December 31, 2024[181]. - Cash flows provided by financing activities for the nine months ended September 30, 2025, were approximately $2.2 million, primarily from proceeds of convertible and nonconvertible notes payable[180]. - Cash and cash equivalents at the end of the period were $8.8 million as of September 30, 2025, compared to $6.6 million at the end of the same period in 2024[177]. - The company expects its current cash position and cash generated from operations to be sufficient to meet its debt requirements of approximately $6.0 million in the next twelve months[182]. Financing Activities - The company entered into a purchase agreement with Lincoln Park Capital Fund, allowing the sale of up to $15,000,000 of common stock over a 36-month term[183]. - The maximum commitment for a Regular Purchase is capped at $500,000, with share purchases varying based on the closing sale price of the common stock[184]. - The total number of shares that can be sold under the agreement is limited to 2,346,371 shares, approximately 19.99% of the outstanding shares prior to the agreement[188]. - As of September 30, 2025, the company had $7.3 million in convertible notes payable recorded in noncurrent liabilities[199]. - Interest expense related to convertible notes payable was $179,028 for the three months ended September 30, 2025, compared to $127,500 for the same period in 2024[196]. - The company issued three unsecured nonconvertible promissory notes during the nine months ended September 30, 2025, raising $800,000[204]. - As of September 30, 2025, the company had eight outstanding unsecured nonconvertible promissory notes totaling $4,680,000[204]. - The company recorded interest expense of $112,625 for the three months ended September 30, 2025, related to nonconvertible promissory notes[206]. - On October 30, 2025, the company issued a convertible promissory note for $100,000, maturing on October 30, 2028[198]. - The company filed a new registration statement on Form S-1 with the SEC covering the resale of common stock under the 2025 LP Registration Rights Agreement[193]. - The company entered into a promissory note for the acquisition of Socialyte amounting to $3,000,000, with payments of $1,500,000 due on June 30, 2023, and September 30, 2023[208]. - Interest expense related to the Socialyte Promissory Note was recorded at $30,000 for the three months ended September 30, 2025, and $90,000 for the nine months ended September 30, 2025[210]. - The company issued nonconvertible promissory notes to DE LLC totaling $2,242,873, with an interest rate of 10% per annum[211]. - An exchange agreement with DE LLC resulted in a loss from extinguishment of debt of $0.8 million for the nine months ended September 30, 2025[212]. - As of September 30, 2025, the aggregate principal balance related to the DE New Notes was $3,062,823[213]. - The BankUnited Loan Agreement includes a $5,800,000 secured term loan and a $750,000 secured revolving line of credit, with interest rates of 8.10% and 7.10% for the respective loans[218][221]. - During the nine months ended September 30, 2025, the company made payments of $1,063,862 related to the First BKU Term Loan, including $259,515 in interest[221]. - The company recorded interest expense of $20,217 for the nine months ended September 30, 2025 related to the BKU Line of Credit[222]. - As of September 30, 2025, the company had a balance of $1,778,083 classified as current liabilities related to the First and Second BKU Term Loans[223]. - The BankUnited Credit Facility requires a minimum debt service coverage ratio of 1.25:1.00 and a maximum funded debt/EBITDA ratio of 3.00:1.00[225]. Strategic Initiatives - The company has established an acquisition strategy to identify and acquire complementary businesses to enhance profits and cash flow, although no active negotiations are currently in place[141]. - The company is pursuing an investment strategy called "Ventures" or "Dolphin 2.0," focusing on developing or acquiring assets in entertainment content, live events, and consumer products[142]. - The company believes that the growth in its Strategic Communications division will be driven by increasing demand for services from traditional and non-traditional media clients[149]. - The company has completed development on several feature films and plans to fund these projects through various financing arrangements, although there is no assurance of obtaining necessary financing[151].

Core Insights - Dolphin (NASDAQ:DLPN) will host a conference call to discuss its financial results for Q3 2025 on November 12, 2025, at 4:30 PM ET [1] Company Information - The conference call will provide insights into Dolphin's performance for the third quarter ended September 30, 2025 [1] - Participants are encouraged to join the call approximately 5 to 10 minutes before it begins [1]

Core Insights - Dolphin has been recognized as one of the Best Places to Work in New York City for 2025 by Crain's New York Business, highlighting its commitment to creating a positive workplace environment [1] Company Recognition - The annual ranking by Crain's New York Business honors companies that excel in fostering collegiality, collaboration, and care among employees [1]

Group 1 - The 2025 A Day Of Unreasonable Conversation Summit was co-chaired by notable figures including Kerry Washington, Pilar Savone, Greg Berlanti, and Joseph Gordon-Levitt [1] - The summit took place on October 6, 2025, at the Getty Center in Los Angeles, emphasizing its prestigious location [1] - Elle Communications, a subsidiary of Dolphin (NASDAQ:DLPN), managed all press efforts for the summit, highlighting its role in public relations [1] Group 2 - The event was invitation-only, indicating a selective gathering of influential cultural architects and leading changemakers [1] - The summit focused on discussions among TV and digital storytellers, problem solvers, and disruptive thinkers, showcasing its aim to foster innovative conversations [1]

Core Insights - Dolphin's Founder and CEO, Bill O'Dowd, was named to the PRNEWS 2025 People of the Year list, recognizing his innovative and influential leadership in the industry [1] - Dolphin was also recognized on the PRNEWS Agency Elite 120, a prestigious ranking of top communications, PR, and marketing firms [1]

Core Insights - Dolphin (NASDAQ: DLPN) and Anschutz Entertainment Group (AEG) announced a collaboration to feature the Los Angeles Kings in the film adaptation of "Youngblood," a classic sports drama from 1986 [1] - The film's world premiere took place at the 2025 Toronto International Film Festival [1] - New scenes for the film will be shot at the LA Kings' Crypto.com Arena, highlighting the venue's significance in the hockey world [1] Company and Industry Summary - Dolphin is recognized as a leading entertainment marketing and premium content production company, indicating its strong position in the entertainment sector [1] - AEG is identified as a global live entertainment and sports conglomerate, showcasing its extensive influence in the sports and entertainment industries [1] - The collaboration between Dolphin and AEG signifies a strategic partnership that leverages both companies' strengths in entertainment and sports [1]

Core Insights - Dolphin's subsidiary, The Digital Dept., hosted The BRANDEdit Fashion Week Experience, showcasing influential creators in fashion, beauty, wellness, and lifestyle [1] Group 1 - The event took place on September 11-12 during New York Fashion Week, attracting over 150 influential creators [1]

Group 1 - 42West, a subsidiary of Dolphin (NASDAQ:DLPN), celebrates its clients' achievements at the 77th Primetime Emmy Awards with a total of five wins [1] - Katherine LaNasa won Outstanding Supporting Actress in a Drama Series for her role in HBO Max's The Pitt, which also secured the top prize in the Drama category [1]