Dolphin Entertainment, Inc. (DLPN) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

EXHIBIT 99.1

Dolphin Entertainment Reports Third Quarter Financial Results

NEW YORK and LOS ANGELES, Nov. 19, 2018 /PRNewswire/ -- Dolphin Entertainment, Inc. (NASDAQ: DLPN), a leading independent entertainment marketing and premium content production company, announces its financial results for the quarter ended September 30, 2018.

Quarterly and Recent Highlights   

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Revenue for the three months ended September 30, 2018 was $5.7 million, compared to $6.8 million for the three months ended September 30, 2017.  The decrease in revenue in Q3 2018 is primarily attributable to the life cycle of a feature film that was released in October 2016 and the majority of the revenues from that film being recognized during 2016 and 2017.

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Entertainment publicity revenue of $5.7 million, compared to $5.4 million in the same period in the prior year.

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Operating loss of $(0.5) million for the three months ended September 30, 2018 as compared to operating revenue of $1.4 million in the same period in the prior year. The decrease is directly related to a decrease in production and distribution revenues of $1.4 million and an increase in (i) depreciation and amortization expense of $0.3 million related to the intangible assets of The Door; (ii) bad debt reserve of $0.2 million related to receivables from Open Road which filed for bankruptcy and (iii) increase in professional fees related to audit fees for the consolidated companies and tax advisors.

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Net income of $0.2 million for the three months ended September 30, 2018 compared to net income of $6.2 million for the same period in the prior year. Net income for the three months ended September 30, 2017 includes a gain in the change in fair value of derivative liabilities of $1.4 and gain on extinguishment of debt $3.9 million as compared to only $0.4 million of gain in change in fair value of derivative liabilities in the net income for the three months ended September 30, 2018.

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Stockholders' equity of $14.4 million as of September 30, 2018 compared to a stockholders' equity of $2.7 million on September 30, 2017.

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Acquired top lifestyle and hospitality PR agency, The Door, for aggregate consideration of up to $11 million, which includes performance-based contingent consideration of up to $7 million.

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Closed a $6.8 million public offering, including the underwriter’s overallotment. 2,265,000 shares of common stock were issued at a purchase price to the public of $3.00 per share, with no warrants attached.  

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Closed a $750,000 registered direct offering of our stock and sold 250,000 shares of common stock at $3.00 per share.