v3.26.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 21 — 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 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.

 

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.

            

 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).