Financial Performance - Total revenue for the year ended December 31, 2024, was $51.7 million, an increase of 20% compared to $43 million in 2023[4] - Adjusted operating income for 2024 was $0.9 million, a turnaround from an adjusted operating loss of $2.4 million in 2023, representing an increase of approximately $3.3 million[5] - Net loss for 2024 was $12.6 million, significantly reduced from a net loss of $24.4 million in 2023[7] - Loss per share for 2024 was $1.22 based on 10,306,904 weighted average shares outstanding, compared to $3.39 per share in 2023 based on 7,206,577 shares[8] - Revenues increased to $51.68 million in 2024, up 19.8% from $43.12 million in 2023[30] - Net loss narrowed to $12.60 million in 2024 compared to a net loss of $24.40 million in 2023, representing a 48.5% improvement[30] - Adjusted income from operations improved to $922,613 in 2024 from a loss of $2.42 million in 2023[35] - Basic loss per share improved to $(1.22) in 2024 from $(3.39) in 2023, indicating a significant reduction in loss per share[30] Operating Expenses - Operating expenses for 2024 were $62.2 million, down from $63.2 million in 2023, despite nonrecurring expenses including a $6.7 million impairment of goodwill[6] - Total expenses decreased slightly to $62.17 million in 2024 from $63.23 million in 2023, reflecting a reduction of 1.7%[30] Cash and Assets - Cash and cash equivalents rose to $8.20 million in 2024 from $6.43 million in 2023, an increase of 27.5%[28] - Total assets decreased to $58.44 million in 2024 from $66.25 million in 2023, a decline of 11.6%[28] - Total liabilities increased slightly to $46.79 million in 2024 from $46.30 million in 2023, an increase of 1.0%[28] - Employee receivable increased to $1.01 million in 2024 from $796,085 in 2023, a rise of 26.8%[28] - Goodwill decreased to $21.51 million in 2024 from $25.22 million in 2023, a reduction of 14.7%[28] Strategic Initiatives - The company launched "The Pod," a new shareholder loyalty program offering perks such as gift cards and access to events[22] - Dolphin was named '2025 Agency of the Year' by Observer's PR Power List, highlighting its industry recognition[3] - The company is focusing on sustainable growth and profitability through investments in growth initiatives and opportunistic hiring[2] - Dolphin achieved milestones with 137 new talent signings in 2024, indicating expansion in its talent management division[17] - The company plans to expand its digital identity protection services through a partnership with Loti AI[11]

Financial Data and Key Metrics Changes - The company achieved a 20% year-over-year revenue growth, reaching just under $52 million for fiscal year 2024, marking a significant milestone by crossing the $50 million threshold [7][39] - Adjusted operating income for 2024 was approximately $900,000, a turnaround from an adjusted operating loss of $2.4 million in 2023 [43] - The net loss for 2024 was $12.6 million, improved from a net loss of $24.4 million in 2023 [46] Business Line Data and Key Metrics Changes - The launch of Always Alpha, a women's sports management firm, began in Q4 2024, with early revenue generation reported in Q1 2025 [8][50] - The digital department expanded with a new affiliate marketing division, tapping into a $17 billion market, which is expected to enhance revenue streams significantly [19][24] Market Data and Key Metrics Changes - The company was recognized as the Agency of the Year on the 2025 Observer PR power list, highlighting its cultural reach and effectiveness in marketing [10][12] - The affiliate marketing sector is identified as a rapidly growing area within influencer marketing, which is the fastest-growing segment of marketing overall [54] Company Strategy and Development Direction - The company is focused on leveraging its unique collection of marketing companies to create long-term value, particularly through investments in women's sports and digital marketing [12][38] - Strategic investments in staffing and new business lines are aimed at building a comprehensive roster in women's sports and enhancing digital marketing capabilities [50][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing the positive adjusted operating income as a significant milestone [8][39] - The company believes it is well-positioned to capitalize on opportunities in 2025 and beyond, despite current stock trading below previous revenue levels [41][38] Other Important Information - The company has made significant progress in reducing operating expenses, with total operating expenses for 2024 at approximately $62.2 million, down from $63.2 million in 2023 [44] - Cash and cash equivalents increased to $9.1 million as of December 31, 2024, compared to $7.6 million in 2023 [46] Q&A Session Summary Question: Can you quantify the investments made for growth in Q4? - Management indicated that investments were primarily in staffing for the launch of Always Alpha, with early revenue already being generated in Q1 [50] Question: Will the new businesses contribute significantly to revenue in 2025? - Management believes that the affiliate marketing segment could represent 25% or more of revenue in the coming years, with potential for further growth [57] Question: How did the recent events in LA impact the company? - Management confirmed that while there were some operational impacts in Q1 due to evacuations, the business returned to normal by the time of the Oscars [66][68] Question: What are the plans for the Disrupt agency and its impact? - The Disrupt agency is expected to enhance the company's diversity and client roster, contributing positively to future growth [72] Question: What is the expected timeline for the Youngblood movie? - The film is anticipated to premiere at the Toronto Film Festival in September, with hopes for a theatrical or streaming release shortly thereafter [82]

Revenue Performance - Total revenue for the year ended December 31, 2024, was $51,684,984, an increase of approximately $8,561,909 or 19.9% compared to $43,123,075 in 2023[144] - Revenue from the entertainment publicity and marketing segment increased by approximately $5.2 million, or 12.1%, from $43,067,557 in 2023 to $48,263,843 in 2024[144] - The content production segment generated revenue of $3,421,141 in 2024, compared to only $55,518 in 2023, marking a significant increase[141] - The entertainment publicity and marketing segment accounted for 93.4% of total revenue in 2024, down from 99.9% in 2023[141] - Revenues from content production increased by approximately $3.4 million for the year ended December 31, 2024, primarily due to the release of The Blue Angels documentary film[147] - The company recorded revenue of $3,421,141 related to the Amazon Agreement for the distribution rights of The Blue Angels documentary during the year ended December 31, 2024[215] Expenses and Financial Performance - Total expenses for the year ended December 31, 2024, were $62.2 million, a decrease of approximately $1.1 million compared to $63.2 million in 2023[148] - Direct costs increased by $2.3 million for the year ended December 31, 2024, attributed to $1.8 million of capitalized production costs for The Blue Angels and increased subsidiary revenues[148] - Payroll and benefits expenses rose by approximately $3.1 million for the year ended December 31, 2024, mainly due to a full year of Special Projects payroll and new hires[149] - Impairment of goodwill was $6.7 million for the year ended December 31, 2024, down from $9.5 million in 2023[153] - Net loss for the year ended December 31, 2024, was approximately $12.6 million or $1.22 per share, compared to a net loss of $24.4 million or $3.39 per share in 2023[167] Cash Flow and Investments - Net cash used in operating activities was approximately $0.2 million for the year ended December 31, 2024, a significant improvement from $5.0 million in 2023[169] - Cash and cash equivalents at the end of the period increased to $9.1 million as of December 31, 2024, compared to $7.6 million at the end of 2023[169] - Net cash used in investing activities for the year ended December 31, 2024 was $2.5 million, a decrease from $4.5 million in 2023[171] Debt and Financing - Total debt increased to $22.4 million as of December 31, 2024, up from $19.3 million in 2023, reflecting a $3.1 million increase[172] - The current portion of debt rose to $5.4 million from $4.9 million, primarily due to a $0.6 million increase in the current portion of the Bank United Credit Facility[173] - Interest expense related to convertible notes payable was $510,250 for the year ended December 31, 2024, down from $543,472 in 2023[186] - The principal balance of convertible promissory notes was $5.1 million as of December 31, 2024, recorded as noncurrent liabilities[185] - The company entered into a BankUnited Loan Agreement on September 29, 2023, consisting of a $5,800,000 secured term loan, a $750,000 revolving line of credit, and a $400,000 commercial card[204] - A second BankUnited Loan Agreement for $2.0 million was established on December 6, 2024, to finance the acquisition of Elle Communications, LLC, maturing in December 2027[205] Acquisitions and Strategic Initiatives - The acquisition of Elle Communications on July 15, 2024, involved a total consideration of approximately $4.7 million, including $1.9 million in cash and 961,000 shares of common stock[130] - The company has established an acquisition strategy to identify and acquire complementary businesses to enhance profits and cash flow[127] - The company plans to enter into Venture investments during 2025, focusing on entertainment content, live events, and consumer products[128] Goodwill and Impairment - The company recorded a goodwill impairment of $6.5 million in Q3 2024 due to a decline in stock price and adjusted revenue projections[220] - The company recognized an impairment of $341,417 for trademarks and trade names during the year ended December 31, 2023, due to rebranding efforts[225] Accounting and Market Risk - The company evaluates convertible debt agreements to determine if they contain both liability and equity components, classifying them as compound financial instruments[230] - Fair values of convertible debt are estimated using pricing models such as the Monte Carlo Simulation, which involves significant judgment and is subject to error risk[231] - Recent accounting pronouncements are discussed in Note 2 of the consolidated financial statements included in the Annual Report on Form 10-K[232] - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[233]

Financial Data and Key Metrics Changes - Q3 2024 revenue increased by 24.5% year-over-year to $12.7 million, with year-to-date revenues up 26.6% to $39.4 million [7][35] - Adjusted operating income improved to $492,000 in Q3 2024 from an adjusted operating loss of $850,000 in Q3 2023, with year-to-date adjusted operating income at $1.4 million compared to a loss of $2.7 million in the same period last year [7][41] - The company expects to exceed $50 million in revenue for the full year 2024 and achieve positive adjusted operating income [7][35] Business Line Data and Key Metrics Changes - 42West maintained its dominant position in entertainment PR, achieving significant results at major industry events and expanding into anime and gaming [8][10] - Shore Fire Media had a landmark quarter in music, with clients receiving 26 nominations for the 2025 GRAMMYs [12][13] - The Digital Department secured 137 new talent signings and expanded its BRANDEdit Influencer Showroom to New York Fashion Week [14][15] Market Data and Key Metrics Changes - The women's sports market is identified as significantly undervalued with immense growth potential, leading to the launch of Always Alpha, a management firm dedicated to women's sports [20][21] - The partnership with Loti AI aims to enhance digital protection for clients, addressing the growing need for safeguarding digital presence [27][28] Company Strategy and Development Direction - The company is focusing on cross-selling opportunities across its various business lines and expanding its impact PR division [46][66] - Always Alpha is expected to be a major growth driver, leveraging existing expertise in celebrity management and brand development [22][24] - The partnership with Loti AI positions the company as a leader in ethical AI use in entertainment and marketing [31][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth and positive adjusted operating income, highlighting the strong performance across all business segments [35][36] - The company anticipates 2025 to be a pivotal year with multiple new ventures and continued growth in influencer marketing and women's sports [68][69] Other Important Information - The company plans to launch a shareholder rewards program in January 2025, offering exclusive access to client products and events [39] - The acquisition of Elle Communications is expected to enhance capabilities in the impact investing industry [10][11] Q&A Session Summary Question: What were the main factors contributing to the revenue growth this quarter? - Management attributed the 24.5% year-over-year revenue growth to multiple factors, including strong performance from special projects and organic growth from legacy PR firms [44][46] Question: Can you highlight new business in the Digital Department? - Management noted strong growth in the talent management division and successful expansions into new markets, with Q4 expected to be particularly strong [47][50] Question: How much revenue was recognized from the Blue Angels content licensing agreement? - The company received over $3.4 million from the Blue Angels project, with $2.6 million recognized as revenue in Q3 2024 [52] Question: What are the priorities for 2025? - Management indicated a focus on organic growth, expanding Always Alpha, and developing new ventures similar to Staple Gin [65][68]

Revenue Growth - For the nine months ended September 30, 2024, total revenue increased to $39,367,418, up from $31,100,867 for the same period in 2023, representing a growth of approximately 26.6%[150] - Revenue from the entertainment publicity and marketing segment for the three months ended September 30, 2024, was $12,682,437, an increase of approximately $2.5 million compared to $10,184,511 in the same period of 2023[150] - Revenue from content production for the nine months ended September 30, 2024, was $3,421,141, attributed to the release of "The Blue Angels" documentary film[151] - The entertainment publicity and marketing segment accounted for 91.3% of total revenue for the nine months ended September 30, 2024, while content production contributed 8.7%[141] - The increase in revenue for the nine months ended September 30, 2024, was primarily driven by growth in 42West and the inclusion of $3.2 million from Special Projects and Elle, which were not present in 2023[150] Acquisitions and Investments - The company completed the acquisition of Special Projects in 2023 and Elle Communications, LLC in July 2024, aiming to enhance its entertainment publicity and marketing services[125] - The company has established an acquisition strategy to identify and acquire complementary businesses in the entertainment sector to create synergistic opportunities[125] - The company plans to enter into additional investments in 2024 under its "Ventures" strategy, focusing on entertainment content, live events, and consumer products[126] Expenses and Profitability - The company’s expenses include direct costs related to film production, payroll and benefits, and legal and professional fees, impacting overall profitability[144][145] - Total expenses for the three months ended September 30, 2024, were $20.8 million, an increase from $12.3 million in the same period of 2023, while for the nine months, expenses rose to $48.5 million from $43.2 million[152] - Direct costs increased by $69.0 thousand for the three months and $2.2 million for the nine months ended September 30, 2024, attributed to increased subsidiary revenues and $1.8 million of capitalized production costs being amortized[152] - Payroll and benefits expenses rose by approximately $1.2 million for the three months and $2.2 million for the nine months ended September 30, 2024, primarily due to the inclusion of Special Projects and Elle payroll expenses[153] - Selling, general, and administrative expenses decreased by approximately $0.3 million for the three months and $0.4 million for the nine months ended September 30, 2024, mainly due to reduced office rent and improved collections[154] - Acquisition costs related to the acquisition of Elle were $0.1 million for the three months and $0.2 million for the nine months ended September 30, 2024[155] Net Loss and Cash Flow - Net loss for the three months ended September 30, 2024, was approximately $8.7 million or ($0.80) per share, compared to a net loss of $3.9 million or ($0.55) per share for the same period in 2023[169] - Net cash used in operating activities was $1.0 million for the nine months ended September 30, 2024, a change of $3.9 million from $4.9 million used in the same period of 2023[172] - Cash flows used in investing activities for the nine months ended September 30, 2024, were $2.5 million, primarily related to notes receivable and the acquisition of Elle[173] - Cash flows provided by financing activities for the nine months ended September 30, 2024, were $2.5 million, mainly from related party loans and an equity line of credit[174] Debt and Financing - Total debt increased to $20.7 million as of September 30, 2024, up from $19.3 million as of December 31, 2023, primarily due to an increase in related party nonconvertible promissory notes[176] - The company expects to meet its debt obligations of approximately $4.9 million over the next twelve months with its current cash position and operational cash generation[177] - The company has outstanding unsecured nonconvertible promissory notes totaling $3,880,000 as of September 30, 2024, with interest rates at 10% per annum[189] - The company entered into a loan agreement with BankUnited, which includes a $5.8 million secured term loan and a $750,000 secured revolving line of credit[200] - As of September 30, 2024, the principal balance under the BKU Term Loan was $4,755,384, down from $5,482,614 as of December 31, 2023[204] - Interest expense related to convertible notes payable was $382,750 for the nine months ended September 30, 2024, compared to $414,880 for the same period in 2023[183] Impairment and Legal Matters - Impairment of goodwill was $6.5 million for the three months and $6.7 million for the nine months ended September 30, 2024, due to declines in market capitalization and lack of positive market response[158] - The company has filed a lawsuit against the seller of Socialyte regarding the Socialyte Purchase Agreement, which may impact future cash flows[193] Forward-Looking Statements and Risks - The company emphasizes that forward-looking statements are based on assumptions and assessments of historical trends and current conditions[210] - Risks that could lead to actual results differing from forward-looking statements are detailed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023[212] - The company does not guarantee future performance and acknowledges that many risks are outside of its control[211]

Financial Performance - Q3 2024 revenue increased by 24.5% year-over-year to $12.7 million, up from $10.2 million in Q3 2023[1] - Adjusted operating income for Q3 2024 was $0.5 million, compared to an adjusted operating loss of $(0.8) million in Q3 2023[1] - Nine-month 2024 revenue rose 26.6% to $39.4 million, with adjusted operating income of $1.4 million versus a $(2.7) million loss in the same period last year[1] - Revenues for the three months ended September 30, 2024, were $12,682,437, a 24.6% increase from $10,184,511 for the same period in 2023[19] - Adjusted income (loss) from operations for the nine months ended September 30, 2024, was $1,389,027, compared to a loss of $(2,730,278) for the same period in 2023[23] Expenses and Losses - Operating expenses for Q3 2024 totaled $20.8 million, significantly higher than $12.3 million in Q3 2023, driven by goodwill impairment of $6.5 million[3] - Total expenses for the three months ended September 30, 2024, were $20,837,136, compared to $12,295,867 in the prior year, reflecting a 69.8% increase[19] - The net loss for the three months ended September 30, 2024, was $8,692,389, compared to a net loss of $3,863,328 for the same period in 2023, indicating a 125.5% increase in losses[19] - The company reported a basic loss per share of $0.80 for the three months ended September 30, 2024, compared to a loss of $0.55 per share in the same period of 2023[19] - The company incurred impairment of goodwill amounting to $6,671,557 for the nine months ended September 30, 2024[19] Equity and Liabilities - Total stockholders' equity decreased to $13,601,069 as of September 30, 2024, down from $19,956,845 at the end of 2023, representing a decline of 31.6%[18] - The accumulated deficit increased to $(144,254,818) as of September 30, 2024, compared to $(133,611,204) at the end of 2023, reflecting a worsening of 8.5%[18] - Total liabilities and stockholders' equity decreased to $57,300,517 as of September 30, 2024, down from $66,254,974 at the end of 2023, a decline of 13.9%[18] Market and Strategic Developments - The company has a market cap trading at approximately 0.25x the current year 2024 estimated revenue guidance of $50 million[1] - Dolphin acquired Elle Communications in July 2024, a profitable PR firm with access to the $1.164 trillion global impact investing industry[4] - The launch of Always Alpha, the first management firm dedicated to women's sports, aims to revolutionize talent management for female athletes[5] - Partnership with Loti AI provides clients with AI-powered protection against unauthorized digital content, marking Dolphin's strategic entry into AI technology[7] - Dolphin received a cash installment of $2.6 million from its content licensing agreement related to The Blue Angels, with box office numbers surpassing initial projections[8] Share Information - The weighted average number of shares outstanding for the three months ended September 30, 2024, was 10,930,286, compared to 7,060,638 for the same period in 2023, indicating a 54.5% increase[19]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $11.4 million, a 4% increase from Q2 2023, bringing first half revenue to $26.6 million [18][19] - Adjusted operating loss for Q2 was $100,000, while the first half of 2024 generated a positive adjusted operating income of approximately $900,000 [3][19] - Net loss for Q2 2024 was approximately $1.6 million, compared to a net loss of $7.8 million for the same period in 2023 [19][20] - Cash and cash equivalents increased to $9.8 million as of June 30, 2024, compared to $7.6 million as of December 31, 2023 [19] Business Line Data and Key Metrics Changes - The acquisition of Elle Communications enhances the company's capabilities in impact PR, which is a growing sector [4][6] - 42West led multiple award-winning campaigns at the 2024 Tribeca Festival, showcasing the effectiveness of the company's marketing efforts [7] - The Digital Department executed a successful influencer strategy for Crocs, demonstrating the strength of the influencer marketing segment [10] Market Data and Key Metrics Changes - The impact investing industry currently manages over $1.1 trillion in assets worldwide, indicating a significant market opportunity for the company [6] - The company anticipates a strong second half of the year, with expectations for revenue to exceed $50 million for fiscal year 2024, aiming for over 20% year-over-year growth [3][4] Company Strategy and Development Direction - The company is shifting focus from acquisition strategies to growing margins and cash flow, with plans to expand into sports as a new vertical [4][16] - The acquisition of Elle Communications is part of a strategy to enhance impact PR capabilities and leverage celebrity influence for social good [6][17] - The company aims to secure ownership stakes in content creation, consumer products, and live experiences without cash outlay [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted operating income for the full year 2024 and beyond, highlighting a shift towards financial flexibility [4][18] - The company is excited about the opportunities in the sports sector and plans to treat athletes as influencers, which aligns with current market trends [24][25] - Management emphasized the importance of organic growth and internal referrals, expecting margin expansion and cash flow growth [39][40] Other Important Information - The film "Blue Angels" achieved significant box office success and is expected to generate ongoing returns for the company [12][13] - The launch of Staple Gin, developed in partnership with Rachael Ray, has received positive initial feedback and multiple awards [13][38] Q&A Session Summary Question: How to think about seasonality in Q3 versus Q4? - Management indicated that Q4 is typically the best quarter due to increased influencer marketing campaigns for the holiday season [20][21] Question: Plans for entering the sports sector? - The company plans to build the sports business organically, treating athletes as influencers and leveraging existing marketing strategies [22][24] Question: Potential for recurring revenue from live events? - Management expressed interest in creating annual events that could generate recurring revenue, similar to successful ventures in the past [30][31] Question: Updates on consumer product ventures? - The company is planning to announce another consumer product venture by the end of the year, with a focus on liquor and skincare products [33][35] Question: Tracking performance of Staple Gin? - Management suggested looking at subscription services and industry publications to track the performance of Staple Gin [36][37]

Revenue Performance - For the six months ended June 30, 2024, total revenue was $26,684,981, an increase of approximately $5,768,625 compared to $20,916,356 for the same period in 2023[119]. - Revenue from the entertainment publicity and marketing segment for the three months ended June 30, 2024 was $11,449,089, up from $11,024,935 in the same period of 2023, reflecting an increase of approximately $424,154[119]. - Revenue from content production for the six months ended June 30, 2024 was $3,421,141, attributed to the release of "The Blue Angels" documentary film[120]. - The acquisition of Special Projects in 2023 contributed approximately $1.6 million in revenue for the six months ended June 30, 2024, which was not present in 2023[119]. - The entertainment publicity and marketing segment accounted for 86.9% of total revenue for the six months ended June 30, 2024, while content production accounted for 13.1%[116]. - The company recorded $3,421,141 in revenue related to the Amazon Agreement for "The Blue Angels" during the six months ended June 30, 2024[115]. Expenses and Losses - Total expenses for the three months ended June 30, 2024, were approximately $12.57 million, a decrease from $18.48 million for the same period in 2023, while total expenses for the six months ended June 30, 2024, were $27.64 million compared to $30.93 million in 2023[121]. - Payroll and benefits expenses increased by approximately $0.5 million and $1.0 million for the three and six months ended June 30, 2024, respectively, primarily due to the inclusion of Special Projects payroll expenses[122]. - Net loss for the three months ended June 30, 2024, was approximately $1.6 million or $(0.08) per share, compared to a net loss of approximately $8.0 million or $(0.60) per share for the same period in 2023[129]. Cash Flow and Debt - Cash provided by operating activities was $0.66 million for the six months ended June 30, 2024, a change of $3.77 million from cash used in operating activities of $3.1 million for the same period in 2023[132]. - Total debt amounted to $20.9 million as of June 30, 2024, an increase of $1.6 million from $19.3 million as of December 31, 2023[135]. - Cash and cash equivalents at the end of the period were $9.85 million as of June 30, 2024, compared to $8.13 million at the end of the same period in 2023[131]. - Cash flows provided by financing activities for the six months ended June 30, 2024, were $2.76 million, compared to $4.05 million for the same period in 2023[134]. Impairment and Tax - Impairment of goodwill was $0.2 million for both the three and six months ended June 30, 2024, compared to $6.5 million for the same periods in 2023[123]. - The company recorded an income tax expense of approximately $23.5 thousand and $47.1 thousand for the three and six months ended June 30, 2024, respectively[128]. Stock and Financing Activities - The company sold 950,000 shares of its common stock during the six months ended June 30, 2024, receiving proceeds of $1.19 million[137]. - As of June 30, 2024, the Company has ten convertible notes payable outstanding with a principal balance of $5,100,000 recorded in noncurrent liabilities[140]. - Interest expense related to convertible notes payable was $127,500 for Q2 2024, a decrease of 10% from $141,583 in Q2 2023[140]. - The Company recorded gains in fair value of $40,000 for Q2 2024, compared to $4,000 in Q2 2023, indicating a significant increase in fair value[142]. - The Company has outstanding unsecured nonconvertible promissory notes totaling $3,880,000, with interest expenses of $97,000 for Q2 2024, down from $153,468 in Q2 2023[144]. - The Socialyte Promissory Note, amounting to $3,000,000, has accrued interest of $30,000 for Q2 2024, with no payments made during the period[146]. - The Company entered into a loan agreement with BankUnited, including a $5,800,000 secured term loan and a $750,000 revolving line of credit[150]. - As of June 30, 2024, the principal outstanding under the BKU Term Loan was $5,002,520, a decrease from $5,482,614 as of December 31, 2023[154]. - The Company recorded interest expense of $68,760 for the Mock Notes in Q2 2024, compared to $27,621 in Q2 2023, reflecting an increase in interest costs[149]. - The BankUnited Loan Agreement requires the Company to maintain a minimum debt service coverage ratio of 1.25:1.00 and a maximum funded debt/EBITDA ratio of 3.00:1.00[152]. - The Company has filed a lawsuit against the seller of Socialyte related to the Socialyte Purchase Agreement, impacting the payment schedule of the promissory note[146]. Strategic Initiatives - The company has established an acquisition strategy to identify and acquire complementary businesses, with the acquisition of Elle Communications, LLC completed in July 2024[102]. - The company plans to enter into additional investments in 2024 under its "Ventures" strategy, focusing on entertainment content, live events, and consumer products[103]. - The company expects growth in its Talent departments due to increasing demand for strategic communication services in the entertainment industry[107]. - The company has a stable client base and continues to grow organically through referrals and new business solicitations[106].

Financial Performance - Total revenue for Q2 2024 was $11.4 million, a 4% increase compared to Q2 2023[2] - Adjusted operating income for H1 2024 was $0.9 million, compared to an adjusted operating loss of $1.9 million for H1 2023[3] - Operating loss for Q2 2024 was $1.1 million, significantly improved from an operating loss of $7.5 million in Q2 2023[2] - Revenues for the three months ended June 30, 2024, were $11,449,089, a 3.9% increase from $11,024,935 for the same period in 2023[19] - Net loss for the three months ended June 30, 2024, was $(1,624,458), compared to a net loss of $(7,959,244) for the same period in 2023, representing a 79.6% improvement[19] - Adjusted (loss) income from operations (non-GAAP) for the three months ended June 30, 2024, was $(136,956), compared to $(52,758) for the same period in 2023[22] - The company reported a loss per share of $(0.08) for the three months ended June 30, 2024, compared to $(0.60) for the same period in 2023[19] Cash and Liabilities - Cash and cash equivalents increased to $9.8 million as of June 30, 2024, up from $7.6 million as of December 31, 2023[4] - Total current liabilities decreased to $26,010,166 as of June 30, 2024, from $27,454,045 as of December 31, 2023, a reduction of 5.3%[17] - Total liabilities decreased to $45,145,965 as of June 30, 2024, from $46,298,129 as of December 31, 2023, a decline of 2.5%[17] - Total stockholders' equity increased to $20,427,970 as of June 30, 2024, from $19,956,845 as of December 31, 2023, a growth of 2.4%[18] Operating Expenses - Operating expenses for Q2 2024 were $12.6 million, down from $18.5 million in Q2 2023[3] - Total expenses for the three months ended June 30, 2024, were $12,568,554, a decrease from $18,475,674 for the same period in 2023, reflecting a 32.0% reduction[22] - Payroll and benefits expenses increased to $9,195,018 for the three months ended June 30, 2024, from $8,677,493 for the same period in 2023, an increase of 6.0%[19] Business Developments - The film "Blue Angels" grossed $2,082,327 at the box office during its one-week IMAX run, debuting at 1 on Prime Video[5] - The newly launched Staple Gin received a Double Gold and a 96-point rating at the 15th Annual New York International Spirits Competition[5] - The acquisition of Elle Communications aims to enhance Dolphin's capabilities in the Impact PR space[6] - Dolphin anticipates launching a sports company to complement its entertainment market position[1] - The company expects to close on its next Ventures opportunity, continuing its strategy of generating immediate service revenues[1] Share Information - The company had a weighted average number of shares outstanding of 19,446,310 for the three months ended June 30, 2024, compared to 13,212,311 for the same period in 2023, an increase of 47.0%[19]

Revenue and Growth - For the three months ended March 31, 2024, total revenue increased to $15.24 million, up from $9.89 million in the same period of 2023, representing a growth of approximately 54%[134]. - Revenue from the entertainment publicity and marketing segment was $11.81 million, an increase of approximately $1.9 million compared to the prior year, while content production revenue was $3.42 million, attributed to "The Blue Angels" documentary[134][136]. - The entertainment publicity and marketing segment accounted for 78% of total revenue for the three months ended March 31, 2024, while content production contributed 22%[131]. Expenses and Costs - Direct costs rose to $2.32 million for the three months ended March 31, 2024, compared to $0.22 million in the same period of 2023, primarily due to $1.8 million of capitalized production costs for "The Blue Angels"[137]. - Payroll and benefits expenses increased to $9.57 million, up from $9.05 million in the prior year, mainly due to the inclusion of Special Projects payroll expenses[138]. - Selling, general and administrative expenses were $1.98 million, a slight increase from $1.87 million, primarily due to the inclusion of Special Projects expenses[139]. Acquisitions and Strategic Initiatives - The company completed the acquisition of Special Projects in 2023 and plans to pursue at least one additional acquisition in 2024[121]. - The company is in various stages of discussions for potential acquisitions that complement its existing services in entertainment publicity and marketing[121]. - The company has established an investment strategy, "Ventures" or "Dolphin 2.0," focusing on developing internally owned assets and acquiring stakes in entertainment content, live events, and consumer products[122]. Financial Performance - Net loss for the three months ended March 31, 2024, was approximately $0.3 million or $0.02 per share, compared to a net loss of approximately $3.0 million or $0.23 per share for the same period in 2023[150]. - Cash used in operating activities was $983,229 for the three months ended March 31, 2024, a decrease from $1,424,822 in the same period in 2023[152]. - Interest income decreased by approximately $0.1 million for the three months ended March 31, 2024, primarily due to the write-off of notes receivable in Q4 2023[145]. - Interest expense increased by $0.1 million for the three months ended March 31, 2024, attributed to higher convertible and nonconvertible notes and term loans outstanding[146]. Debt and Financing - Total debt increased to $20.0 million as of March 31, 2024, from $19.3 million as of December 31, 2023, primarily due to an increase in related party nonconvertible promissory notes[156]. - The Company issued a nonconvertible promissory note of $900,000 to its CEO's brother, with an interest rate of 10% per annum, maturing on January 16, 2029, and recorded $18,500 in interest expense for the three months ended March 31, 2024[175]. - The BankUnited Loan Agreement includes a $5,800,000 secured term loan, a $750,000 secured revolving line of credit, and a $400,000 commercial card, refinancing the previous credit facility with BankProv[176][177]. - The BKU Term Loan has an 8.10% fixed interest rate, with principal and interest payable monthly based on a 5-year amortization schedule[179]. - As of March 31, 2024, the outstanding principal under the BKU Term Loan was $5,244,498, down from $5,482,614 as of December 31, 2023[181]. - The Company must maintain a minimum debt service coverage ratio of 1.25:1.00 and a maximum funded debt/EBITDA ratio of 3.00:1.00 under the BankUnited Credit Facility, and was in compliance with these covenants as of March 31, 2024[180]. - The Company recorded approximately $4,206 in amortization of debt origination costs as part of interest expense for the three months ended March 31, 2024[182]. - The BKU Line of Credit had a principal balance of $400,000 as of March 31, 2024, with no usage of the BKU Commercial Card during the same period[181][183]. Other Financial Information - The change in fair value of contingent consideration resulted in a loss of $15.5 thousand for the three months ended March 31, 2023, with the contingent consideration settled on April 25, 2023[141]. - The company recorded a gain in fair value of $25,000 for the convertible note at fair value for the three months ended March 31, 2024, compared to a loss of $10,444 for the same period in 2023[169]. - The company sold 350,000 shares of common stock during the three months ended March 31, 2024, generating proceeds of $495,200[160]. - The Company recorded interest expense of $127,750 related to convertible notes payable for the three months ended March 31, 2024, compared to $144,556 for the same period in 2023[165]. - The Socialyte Promissory Note, amounting to $3,000,000, matured on September 30, 2023, with interest expense recorded at $30,000 for the three months ended March 31, 2024[174]. Compliance and Reporting - The Company is subject to financial covenants that are tested semi-annually on a trailing twelve-month basis[180]. - The Company’s financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that could materially impact the consolidated financial statements[184][185]. - Forward-looking statements in the Quarterly Report are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially[190][192]. Upcoming Releases - The Blue Angels documentary is set to be released in theaters on May 17, 2024, and will be available for streaming on Amazon Prime Video on May 23, 2024[130].