Dolphin Entertainment(US:DLPN)2025-11-12 22:20Revenue 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].