Dolphin Entertainment(US:DLPN)2024-08-14 21:15Revenue 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].