Dolphin Entertainment (DLPN) investor relations material

Organic growth and positioning

• The strategy combines leading entertainment PR firms with influencer marketing, celebrity booking and event marketing to cross-sell services and build scale in earned media.

• The Digital Dept was formed by merging two influencer marketing businesses; management sees influencer marketing as a major growth driver and described it as increasingly central to brand campaigns.

• Key PR agencies include 42West for film and TV, Shore Fire Media for music, The Door for culinary and hospitality, and Elle Communications for nonprofit impact.

• The influencer roster includes 400 managed creators; campaigns can be paid as a share of client spend, while talent representation earns a typical 20% commission.

• Management cited college athlete NIL campaigns and growing high-school-level activity as opportunities, alongside broader demographic and geographic targeting for brands.

Cash flow and capital

• Management said no additional capital raise is needed; the most recent equity drawdown was in May 2024.

• The largest New York and Los Angeles leases expire in 12 months, with consolidation expected to save over $1M annually.

• The acquisition loan has less than $3.5M remaining and matures September 29, 2028; repayment is expected to save $2.2M in annual cash, alongside lease savings.

• If operations do not grow, management expects free cash flow to improve by over $3M in two years from debt and lease savings.

• Acquisition-related intangible amortization is expected to run off mostly over the next three to four years; management said quarterly non-cash charges previously exceeded $600,000 and approached $700,000.

Insider alignment

• The CEO said he bought over 500,000 shares, representing a little over 4% of shares outstanding, at prices from $1 to $1.70, and plans to continue buying for the next couple of years.

• A corporate share repurchase is under consideration in connection with future cash flow, but management said no decision is certain.