Dolphin Entertainment, Inc. Segments Disclosure

NOTE 21 — SEGMENT INFORMATION

 

The Company operates in two reportable segments, Entertainment Publicity and Marketing Segment (“EPM”) and Content Production Segment (“CPD”).

 

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The Entertainment Publicity and Marketing segment is composed of 42West, The Door, Shore Fire, The Digital Dept., Special Projects and Elle. This segment primarily provides clients with diversified marketing services, including public relations, entertainment and hospitality content marketing, strategic marketing consulting and content production of marketing materials.

 

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The Content Production segment is composed of Dolphin Entertainment and Dolphin Films. This segment engages in the production and distribution of digital content and feature films. The activities of our Content Production segment also include all corporate overhead activities.

 

The Company’s chief operating decision maker (“CODM”) is its CEO. The profitability measure employed by our CODM for allocating resources to operating segments and assessing operating segment performance is adjusted operating income (loss) which is the loss from operations on the Company’s consolidated statements of operations adjusted for depreciation and amortization, impairment of goodwill, acquisition costs, change in fair value of contingent consideration, stock compensation, bad debt and write-off of notes receivable. All segments follow the same accounting policies as those described in Note 2.

 

The following tables present revenue and significant expenses by segment that are regularly provided to the CODM. Other segment items that the CODM does not consider in assessing segment performance are presented to reconcile to adjusted loss from operations.

Schedule of revenue and assets by segment
Year ended December 31, 2025
		EPM				CPD				Total
Segment revenue		$	56,413,682			$	285,707			$	56,699,389
Segment expenses:
Segment direct costs			2,052,910				216,964				2,269,874
Segment payroll and benefits			39,743,273				2,173,612				41,916,885
Segment selling, general and administrative (1)			6,123,177				1,248,125				7,371,302
Segment legal and professional			2,005,685				718,644				2,724,329
Adjusted income (loss) from operations		$	6,488,637			$	(4,071,638	)		$	2,416,999
Reconciliation to consolidated loss from operations:
Bad debt expense			—				—				441,875
Acquisition costs			—				—				416,171
Gain on deconsolidation of Always Alpha Sports Management LLC			—				—				(756,574	)
Depreciation and amortization			—				—				2,354,585
Loss from operations			—				—			$	(39,058	)

 

(1)

Excludes bad debt expense

 

Year ended December 31, 2024
		EPM				CPD				Total
Segment revenue		$	48,263,843			$	3,421,141			$	51,684,984
Segment expenses:
Segment direct costs			1,442,851				1,823,610				3,266,461
Segment payroll and benefits			35,995,180				2,127,860				38,123,040
Segment selling, general and administrative (2)			6,276,752				1,013,685				7,290,437
Segment legal and professional			1,690,394				756,689				2,447,083
Adjusted operating income (loss)		$	2,901,524			$	(2,300,703	)		$	557,963
Reconciliation to consolidated loss from operations
Bad debt expense			—				—				505,173
Acquisition costs			—				—				164,044
Impairment of goodwill			—				—				6,671,557
Write off of notes receivable			—				—				1,270,000
Change in fair value of contingent consideration			—				—				50,000
Depreciation and amortization			—				—				2,382,361
Loss from operations			—				—			$	(10,485,172	)

   

(2)

Excludes bad debt expense

 

 

 

The CODM does not review assets on a segment basis. In connection with the acquisitions of its wholly owned subsidiaries, as of December 31, 2025 the Company had assigned $7,898,607 of intangible assets, net of accumulated amortization of $15,512,363, and goodwill of $21,507,944, net of impairments, to the EPM segment. The amounts reflected for the year ended December 31, 2024 for EPM segment only include the activity of Elle for the period between the acquisition date (July 15, 2024) and December 31, 2024. Equity method investments were included within the EPM segment during the year ended December 31, 2024.

 

During the year ended December 31, 2025, there were no triggering events noted that would require the Company to reassess goodwill impairment outside of its regular annual impairment test.

 

During the year ended December 31, 2024, the Company impaired goodwill in the amount of $6,671,557, because the carrying value of some of its reporting units in the EPM segment was greater than its fair value. In addition, during the year ended December 31, 2024, the Company impaired the Midnight Theatre Notes in the amount of $1,270,000 (See Note 8 for further discussion).