Dolphin Entertainment(US:DLPN)2021-04-09 00:02Financial Data and Key Metrics Changes - The company identified an error in revenue reporting, which resulted in an overstatement of both direct cost expense and revenue by $862,710 for the three and nine months ended September 30, 2020, but this did not affect the loss from operations, net loss, or loss per share [11][13][14] Business Line Data and Key Metrics Changes - The company is focusing on its NFT division, which has garnered significant interest and is expected to be a major growth area moving forward [8][24] Market Data and Key Metrics Changes - The NFT market has seen explosive growth, with total sales volume increasing from $60 million in 2019 to $250 million in 2020, and projected to reach $4 billion to $5 billion in 2021 [25][47] Company Strategy and Development Direction - The company is pursuing a strategy called Dolphin 2.0, which involves owning assets that it markets, particularly in the NFT space, and leveraging its expertise in entertainment marketing to capitalize on the collectibles market [22][41][57] - The company has formed partnerships, including one with the NFL Hall of Fame, to create unique NFTs that will appeal to collectors [34][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the NFT market, viewing it as a significant opportunity for growth and a potential high-margin business due to the digital nature of NFTs [67][75] - The company plans to roll out its first NFTs in the current quarter and expects to expand its offerings rapidly [65][66] Other Important Information - The company is actively exploring multiple partnerships and marketplaces for its NFT offerings, aiming to create a cohesive marketing strategy [78] - Management emphasized the importance of credit card acceptance in expanding the NFT market to a broader audience [49][52] Q&A Session Summary Question: Regarding the restatement, is it just a timing issue? - Yes, the expenses and revenues offset each other, and the correction will be included in the 10-K filing [60] Question: Can you share the timeline for NFT rollouts? - The company expects to have its first NFTs in the marketplace within the current quarter, with plans for continuous releases [63][65] Question: Will the NFT business be higher margin than overall Dolphin? - Yes, the NFT business is expected to be a high-margin business due to the quality of IP and partnerships [67] Question: How will the company work with multiple marketplaces? - The company is evaluating whether to consolidate its offerings into one marketplace or spread them across multiple ones, depending on business needs [76][78] Question: What other areas besides NFTs is the company considering? - The company has multiple initiatives in consumer products and live events, and is planning to announce these in the coming months [82]