v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 10 — 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 condensed 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. The CODM uses this information when evaluating potential share repurchase opportunities, assessing acquisition targets and pursuing content creation and distribution partnerships.

 

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            
Three Months Ended June 30, 2026            
   EPM   CPD   Total 
Segment revenue  $14,443,150   $—   $14,443,150 
Segment expenses:               
Segment direct costs   972,533    55,793    1,028,326 
Segment payroll and benefits   10,557,221    805,540    11,362,761 
Segment selling, general and administrative (1)   1,519,761    256,580    1,776,341 
Segment legal and professional   568,849    181,959    750,808 
Adjusted income (loss) from operations  $824,786   $(1,299,872)  $(475,086)
                
Reconciliation to consolidated loss from operations:               
                
Bad debt expense   —    —    22,010 
Depreciation and amortization   —    —    533,966 
Loss from operations  $—   $—   $(1,031,062)

 

(1) Excludes bad debt expense
             
Six Months Ended June 30, 2026            
   EPM   CPD   Total 
Segment revenue  $26,791,396   $455,692   $27,247,088 
Segment expenses:               
Segment direct costs   1,057,184    755,793    1,812,977 
Segment payroll and benefits   20,690,814    1,387,091    22,077,905 
Segment selling, general and administrative (1)   3,107,144    566,565    3,673,709 
Segment legal and professional   1,167,973    438,973    1,606,946 
Adjusted income (loss) from operations  $768,281   $(2,692,730)  $(1,924,449)
                
Reconciliation to consolidated loss from operations:               
                
Bad debt expense   —    —    171,801 
Depreciation and amortization   —    —    1,071,242 
Loss from operations  $—   $—   $(3,167,492)

  

    (1) Excludes bad debt expense

  

 

Three months ended June 30, 2025

            
   EPM   CPD   Total 
Segment revenue  $14,087,529   $—   $14,087,529 
Significant expenses:               
Segment direct costs   738,325    3,846    742,171 
Segment payroll and benefits   9,900,740    401,552    10,302,292 
Segment selling, general and administrative (1)   1,454,933    345,699    1,800,632 
Segment legal and professional   514,408    71,824    586,232 
Adjusted income (loss) from operations  $1,479,123   $(822,921)  $656,202 
                
Reconciliation to consolidated loss from operations:               
                
Bad debt expense   —    —    93,407 
State and local tax payments   —    —    28,297 
Depreciation and amortization   —    —    591,552 
Loss from operations  $—   $—   $(57,054)

  

(1)    Excludes bad debt expense

 

 

Six months ended June 30, 2025

            
   EPM   CPD   Total 
Segment revenue  $26,165,207   $92,033   $26,257,240 
Significant expenses:               
Segment direct costs   1,082,739    3,846    1,086,585 
Segment payroll and benefits   19,799,621    807,364    20,606,985 
Segment selling, general and administrative (1)   2,790,047    726,814    3,516,861 
Segment legal and professional   952,770    147,886    1,100,656 
Adjusted income (loss) from operations  $1,540,030   $(1,593,877)  $(53,847)
                
Reconciliation to consolidated loss from operations:               
                
Bad debt expense   —    —    149,161 
Acquisition cost   —    —    416,171 
State and local tax payments             28,297 
Depreciation and amortization   —    —    1,183,104 
Loss from operations  $—   $—   $(1,830,580)

 

(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 June 30, 2026 the Company had assigned $6,852,855 of intangible assets, net of accumulated amortization of $16,558,115, and goodwill of $21,507,944, net of impairments, to the EPM segment.

 

During the three and six months ended June 30, 2026 and 2025, there were no triggering events noted that would require the Company to reassess goodwill impairment outside of its regular annual impairment test.