Dolphin Entertainment, Inc. Leases Disclosure
NOTE 23 — LEASES
The Company and its subsidiaries are party to various office leases with terms expiring at different dates through February 2032. The amortizable life of the right-of-use assets is limited by the expected lease term. Although certain leases include options to extend the Company did not include these in the right-of-use assets or lease liabilities calculation because it is not reasonably certain that the options will be executed.
| December 31, | ||||||||
| Operating Leases | 2025 | 2024 | ||||||
| Assets | ||||||||
| Right-of-use assets | $ | 2,884,619 | $ | 4,606,341 | ||||
| Liabilities | ||||||||
| Current | ||||||||
| Lease liabilities | $ | 1,829,814 | $ | 1,839,323 | ||||
| Noncurrent | ||||||||
| Lease liabilities | $ | 1,421,061 | $ | 3,247,291 | ||||
| Total lease liabilities | $ | 3,250,875 | $ | 5,086,614 | ||||
| December 31, | ||||||||
| Finance Leases | 2025 | 2024 | ||||||
| Assets | ||||||||
| Right-of-use assets | $ | 128,322 | $ | 132,566 | ||||
| Liabilities | ||||||||
| Current | ||||||||
| Lease liabilities | $ | 82,668 | $ | 80,349 | ||||
| Noncurrent | ||||||||
| Lease liabilities | $ | 48,325 | $ | 58,742 | ||||
| Total lease liabilities | $ | 130,993 | $ | 139,091 | ||||
The table below shows the lease expenses recorded in the consolidated statements of operations incurred during the years ended December 31, 2025 and 2024.
| December 31, | |||||||
| Operating Lease Costs | Classification | 2025 | 2024 | ||||
| Operating lease costs | Selling, general and administrative expenses | $ | 2,075,571 | $ | 2,751,175 | ||
| Sublease income | Selling, general and administrative expenses | (12,665 | ) | (414,741 | ) | ||
| Net operating lease costs | $ | 2,062,906 | $ | 2,336,434 | |||
| December 31, | |||||||
| Finance Lease Costs | Classification | 2024 | 2023 | ||||
| Amortization of right-of-use assets | Selling, general and administrative expenses | $ | 96,732 | $ | 78,995 | ||
| Interest on lease liabilities | Selling, general and administrative expenses | 10,966 | 10,273 | ||||
| Total finance lease costs | $ | 107,698 | $ | 89,268 | |||
Lease Payments
For the years ended December 31, 2025 and 2024, the Company made cash payments related to its operating leases in the amount of $2,227,017 and $2,621,073, respectively.
Future minimum lease payments for leases in effect at December 31, 2025 were as follows:
| Year | Operating Leases | Finance Leases | ||||||||
| 2026 | $ | 2,054,617 | $ | 85,277 | ||||||
| 2027 | 918,827 | 40,121 | ||||||||
| 2028 | 155,710 | 13,832 | ||||||||
| 2029 | 159,255 | |||||||||
| 2030 | 160,925 | |||||||||
| Thereafter | 194,136 | |||||||||
| Total | $ | 3,643,470 | $ | 139,230 | ||||||
| Less: Imputed interest | (392,595 | ) | (8,237 | ) | ||||||
| Present value of lease liabilities | $ | 3,250,875 | $ | 130,993 | ||||||
As of December 31, 2025, the Company’s weighted average remaining lease terms on its operating and finance leases is 3.78 and 1.80 years, respectively, and the Company’s weighted average discount rate related to its operating and finance leases is 8.83% and 7.62%, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | May 26, 2022 | |
| 2020 | Apr 15, 2021 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.