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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 11 — SEGMENT INFORMATION

 

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

 

•   The Entertainment Publicity and Marketing segment is composed of 42West, The Door, Shore Fire, The Digital Dept, Special Projects, Always Alpha 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.

 

•   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 in the Form 10-K.

 

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) income from operations.

 

               

 

Three months ended March 31, 2025

            
   EPM   CPD   Total 
Segment revenue  $12,077,678   $92,033   $12,169,711 
Significant expenses:               
Segment direct costs   344,414    —      344,414 
Segment payroll and benefits   9,898,421    405,812    10,304,233 
Segment selling, general and administrative (1)   1,401,786    314,904    1,716,690 
Segment legal and professional   438,362    76,062    514,424 
Adjusted loss from operations  $(5,305)  $(704,745)  $(710,050)
                
Reconciliation to consolidated loss from operations:               
                
Bad debt expense   —      —      55,754 
Acquisition cost   —      —      416,171 
Depreciation and amortization   —      —      591,552 
Loss from operations   —      —     $(1,773,527)

  

(1)Excludes bad debt

 

 

Three months ended March 31, 2024

        
   EPM   CPD   Total 
Segment revenue  $11,814,751   $3,421,141   $15,235,892 
Significant expenses:               
Segment direct costs   553,167    1,766,060    2,319,227 
Segment payroll and benefits   8,994,861    579,390    9,574,251 
Segment selling, general and administrative (1)   1,500,698    272,269    1,772,967 
Segment legal and professional   405,264    242,517    647,781 
Adjusted income from operations  $360,761   $560,905   $921,666 
                
Reconciliation to consolidated income from operations               
                
Bad debt expense   —      —      204,021 
Depreciation and amortization   —      —      553,103 
Income from operations   —      —     $164,542 

  

(1)   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 March 31, 2025 the Company had assigned $9,614,784 of intangible assets, net of accumulated amortization of $13,796,186, and goodwill of $21,507,944, net of impairments, to the EPM segment.

 

During the three months ended March 31, 2025 and 2024, there were no triggering events noted that would require the Company to reassess goodwill impairment outside of its regular annual impairment test.