{"id":1743004,"date":"2026-05-12T22:18:08","date_gmt":"2026-05-12T22:18:08","guid":{"rendered":"https:\/\/celebrity.land\/pt\/?p=1743004"},"modified":"2026-05-12T22:18:08","modified_gmt":"2026-05-12T22:18:08","slug":"10-q-dolphin-entertainment-inc-quarterly-earnings-report","status":"publish","type":"post","link":"https:\/\/celebrity.land\/pt\/10-q-dolphin-entertainment-inc-quarterly-earnings-report\/","title":{"rendered":"[10-Q] Dolphin Entertainment, Inc. Quarterly Earnings Report"},"content":{"rendered":"\n
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iso4217:USD<\/p>\n

\n xbrli:shares<\/p>\n

\n iso4217:USD<\/p>\n

\n xbrli:shares<\/p>\n

\n xbrli:pure<\/p>\n

\n <\/header>\n<\/div>\n

\u00a0<\/p>\n

UNITED STATES<\/b><\/p>\n

SECURITIES AND EXCHANGE COMMISSION<\/b><\/p>\n

WASHINGTON, DC 20549<\/b><\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n

FORM 10-Q<\/span><\/b><\/p>\n

\u00a0<\/p>\n

\u2612<\/span><\/span>
\nQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<\/b><\/p>\n

\u00a0<\/b><\/p>\n

For the quarterly period ended March 31, 2026<\/span><\/b><\/p>\n

\u00a0<\/p>\n

OR<\/p>\n

\u00a0<\/p>\n

\u2610<\/span><\/span>
\nTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<\/b><\/p>\n

\u00a0<\/b><\/p>\n

For the transition period from __________ to __________<\/b><\/p>\n

\u00a0<\/p>\n

Commission file number: 001-38331<\/span><\/b><\/p>\n

\u00a0<\/b><\/p>\n

<\/span><\/p>\n

\u00a0<\/p>\n

DOLPHIN ENTERTAINMENT, INC.<\/span><\/b><\/p>\n

(Exact name of registrant as specified in its charter)<\/i><\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n\n\n\n\n
Florida<\/span><\/b><\/td>\n86-0787790<\/span><\/b><\/span><\/td>\n<\/tr>\n
(State or other jurisdiction of<\/i><\/span><\/td>\n(I.R.S. Employer<\/i><\/span><\/td>\n<\/tr>\n
incorporation or organization)<\/i><\/span><\/td>\nIdentification No.)<\/i><\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

150 Alhambra Circle<\/span>, Suite 1200<\/span>, Coral Gables<\/span>, Florida<\/span>
\n33134<\/span><\/b><\/p>\n

(Address of principal executive offices, including
\nzip code)<\/i><\/p>\n

\u00a0<\/p>\n

(305<\/span>)\u00a0774-0407<\/span><\/b><\/p>\n

(Registrant\u2019s telephone number)<\/i><\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n

Securities registered pursuant to Section 12(b) of the Act:<\/p>\n

\u00a0<\/p>\n\n\n\n
Title of each class<\/b><\/span><\/td>\nTrading Symbol(s)<\/b><\/span><\/td>\nName of each exchange on which registered<\/b><\/span><\/td>\n<\/tr>\n
Common Stock, $0.015 par value per share<\/span><\/span><\/td>\nDLPN<\/span><\/span><\/td>\nThe Nasdaq<\/span> Capital Market<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Indicate by check mark whether the registrant: (1)\u00a0has
\nfiled all reports required to be filed by Section\u00a013 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12\u00a0months
\n(or for such shorter period that the registrant was required to file such reports), and (2)\u00a0has been subject to such filing requirements
\nfor the past 90\u00a0days.\u00a0Yes<\/span>\u00a0\u2612<\/span>\u00a0\u00a0No\u00a0\u2610<\/span><\/p>\n

\u00a0<\/p>\n

Indicate by check mark whether the registrant has
\nsubmitted electronically every Interactive Data File required to be submitted pursuant to Rule\u00a0405 of Regulation\u00a0S-T (Section\u00a0232.405
\nof this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).\u00a0Yes<\/span>\u00a0\u2612<\/span>\u00a0\u00a0No\u00a0\u2610<\/span><\/p>\n

\u00a0<\/p>\n

Indicate by check mark whether the registrant is a
\nlarge accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See
\nthe definitions of \u201clarge accelerated filer,\u201d \u201caccelerated filer,\u201d \u201csmaller reporting company,\u201d and
\n\u201cemerging growth company\u201d in Rule 12b-2 of the Exchange Act.<\/p>\n

\u00a0<\/p>\n\n\n\n\n
Large accelerated filer<\/span><\/td>\n\u2610<\/span>\u00a0<\/span><\/td>\nAccelerated filer<\/span><\/td>\n\u2610<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Non-accelerated filer<\/span><\/span><\/td>\n\u2612<\/span>\u00a0<\/span><\/td>\nSmaller reporting company<\/span><\/td>\n\u2612<\/span><\/span>\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\nEmerging growth company<\/span><\/td>\n\u2610<\/span><\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

If an emerging growth company, indicate by checkmark
\nif the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
\nprovided pursuant to Section 13(a) of the Exchange Act.\u00a0\u2610<\/span><\/p>\n

\u00a0<\/p>\n

Indicate by check mark whether the registrant is a
\nshell company (as defined in Rule 12b-2 of the Exchange Act).\u00a0Yes\u00a0\u2610<\/span>\u00a0\u00a0No<\/span>\u00a0\u2612<\/span><\/p>\n

\u00a0<\/p>\n

The number of shares of common stock outstanding
\nwas <\/span>13,017,271<\/span><\/span> as of May 11, 2026.\u00a0\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/b><\/p>\n

TABLE OF CONTENTS<\/b><\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\nPage<\/b><\/span><\/td>\n<\/tr>\n
PART I \u2014 FINANCIAL INFORMATION<\/b><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 1.<\/span><\/td>\nFINANCIAL STATEMENTS<\/span><\/span><\/span><\/td>\n1<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nCondensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 (unaudited)<\/span><\/span><\/span><\/td>\n1<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\nCondensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 (unaudited)<\/span><\/span><\/span><\/td>\n3<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\nCondensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited)<\/span><\/span><\/span><\/td>\n4<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\nConsolidated Statements of Changes in Stockholders\u2019 Equity for the three months ended March 31, 2026 and 2025 (unaudited)<\/span><\/span><\/span><\/td>\n6<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\nNotes to Unaudited Condensed Consolidated Financial Statements<\/span><\/span><\/td>\n7<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 2.<\/span><\/td>\nMANAGEMENT\u2019S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS<\/span><\/span><\/td>\n22<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 4.<\/span><\/td>\nCONTROLS AND PROCEDURES<\/span><\/span><\/td>\n32<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
PART II \u2014 OTHER INFORMATION<\/b><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 1.<\/span><\/td>\nLEGAL PROCEEDINGS<\/span><\/span><\/span><\/td>\n34<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 1A.<\/span><\/td>\nRISK FACTORS<\/span><\/span><\/span><\/td>\n34<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 2.<\/span><\/td>\nUNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS<\/span><\/span><\/span><\/td>\n34<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 3.<\/span><\/td>\nDEFAULTS UPON SENIOR SECURITIES<\/span><\/span><\/span><\/td>\n34<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 4<\/span><\/td>\nMINE SAFETY DISCLOSURES<\/span><\/span><\/span><\/td>\n34<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 5.<\/span><\/td>\nOTHER INFORMATION<\/span><\/span><\/span><\/td>\n34<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
ITEM 6.<\/span><\/td>\nEXHIBITS<\/span><\/span><\/span><\/td>\n35<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
SIGNATURES<\/span><\/span><\/span><\/td>\n36<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

i<\/p>\n

<\/p>\n

<\/p>\n

PART I \u2014 FINANCIAL INFORMATION<\/b><\/p>\n

\u00a0<\/p>\n

ITEM 1. FINANCIAL STATEMENTS<\/b><\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b><\/p>\n

\u00a0<\/p>\n

CONDENSED CONSOLIDATED BALANCE SHEETS<\/b><\/p>\n

\u00a0<\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
ASSETS<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents<\/td>\n\u00a0<\/td>\n$<\/td>\n6,283,857<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,756,585<\/td>\n\u00a0<\/td>\n<\/tr>\n
Restricted cash<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accounts receivable:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Trade, net of allowance of $449,279<\/span> and $1,327,808<\/span>, respectively<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,952,004<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7,848,970<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other receivables<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,384,663<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,243,931<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other current assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,201,594<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,179,498<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total current assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n19,747,122<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n23,953,988<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Capitalized production costs, net<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n542,305<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n520,338<\/td>\n\u00a0<\/td>\n<\/tr>\n
Employee receivable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,228,085<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,196,085<\/td>\n\u00a0<\/td>\n<\/tr>\n
Right-of-use assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,630,279<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,012,941<\/td>\n\u00a0<\/td>\n<\/tr>\n
Goodwill<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n21,507,944<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n21,507,944<\/td>\n\u00a0<\/td>\n<\/tr>\n
Intangible assets, net<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7,375,731<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7,898,607<\/td>\n\u00a0<\/td>\n<\/tr>\n
Property, equipment and leasehold improvements, net<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n38,410<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,961<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other long-term assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n198,296<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n189,296<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Assets<\/td>\n\u00a0<\/td>\n$<\/td>\n53,268,172<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n58,330,160<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/b><\/p>\n

(Continued)<\/b><\/p>\n

\u00a0\u00a0<\/b><\/p>\n

The accompanying notes are an integral part of these
\nunaudited condensed consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b><\/p>\n

\u00a0<\/p>\n

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)<\/b><\/p>\n

\u00a0<\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
LIABILITIES<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accounts payable<\/td>\n\u00a0<\/td>\n$<\/td>\n2,415,858<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,096,715<\/td>\n\u00a0<\/td>\n<\/tr>\n
Term loans, current portion<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,852,548<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,813,760<\/td>\n\u00a0<\/td>\n<\/tr>\n
Revolving line of credit<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Notes payable, current portion<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,500,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,500,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes payable, current portion<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,550,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,250,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accrued interest \u2013 related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,163,116<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,043,087<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accrued compensation \u2013 related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,625,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,625,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities, current portion<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,671,364<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,912,482<\/td>\n\u00a0<\/td>\n<\/tr>\n
Deferred revenue<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n953,969<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n794,177<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other current liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,010,068<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11,096,820<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total current liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n27,141,923<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n28,532,041<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Noncurrent<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Term loans, noncurrent portion<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,502,601<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,976,930<\/td>\n\u00a0<\/td>\n<\/tr>\n
Notes payable, noncurrent portion<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,580,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,580,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,900,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,460,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes payable\u2013 related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,839,556<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,904,357<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes payable at fair value<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n260,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n270,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loans from related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n983,112<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n983,112<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,271,028<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,469,386<\/td>\n\u00a0<\/td>\n<\/tr>\n
Deferred tax liability<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n481,561<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n463,909<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n45,959,781<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n48,639,735<\/td>\n\u00a0<\/td>\n<\/tr>\n
Commitments and contingencies (Note 12)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
STOCKHOLDERS\u2019 EQUITY<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Preferred Stock, Series C, $0.001<\/span><\/span> par value, 50,000<\/span><\/span> shares authorized, 50,000<\/span><\/span><\/span><\/span> shares issued and outstanding at March 31, 2026 and December 31, 2025<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Common stock, $0.015<\/span><\/span> par value, 200,000,000<\/span><\/span> shares authorized, 12,513,104<\/span><\/span> and 12,221,432<\/span><\/span> shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n187,697<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n183,321<\/td>\n\u00a0<\/td>\n<\/tr>\n
Additional paid-in capital<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n159,114,925<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n158,809,301<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accumulated deficit<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(151,995,231<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(149,303,197<\/td>\n)<\/td>\n<\/tr>\n
Total Stockholders\u2019 Equity<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7,308,391<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9,690,425<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Liabilities and Stockholders\u2019 Equity<\/td>\n\u00a0<\/td>\n$<\/td>\n53,268,172<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n58,330,160<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

The accompanying notes are an integral part of these
\nunaudited condensed consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b><\/p>\n

\u00a0<\/p>\n

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<\/b><\/p>\n

\u00a0<\/p>\n

(unaudited)<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Three
\n Months Ended <\/b><\/span><\/p>\n

March
\n 31,<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Revenues<\/td>\n\u00a0<\/td>\n$<\/td>\n12,803,937<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,169,711<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Expenses:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Direct costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n784,650<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n344,414<\/td>\n\u00a0<\/td>\n<\/tr>\n
Payroll and benefits<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,715,144<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,304,233<\/td>\n\u00a0<\/td>\n<\/tr>\n
Selling, general and administrative<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,047,161<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,772,444<\/td>\n\u00a0<\/td>\n<\/tr>\n
Depreciation and amortization<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n537,276<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n591,552<\/td>\n\u00a0<\/td>\n<\/tr>\n
Acquisition cost<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n416,171<\/td>\n\u00a0<\/td>\n<\/tr>\n
Legal and professional<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n856,138<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n514,424<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total expenses<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n14,940,369<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n13,943,238<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loss from operations<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,136,432<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,773,527<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other (expenses) income:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Change in fair value of convertible note<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n20,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest expense, net<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(547,950<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(554,013<\/td>\n)<\/td>\n<\/tr>\n
Total other (expenses) income, net<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(537,950<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(534,013<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Income tax expense<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(17,652<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(21,522<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,692,034<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,329,062<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loss per share:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Basic<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.22<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.21<\/td>\n)<\/td>\n<\/tr>\n
Diluted<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.22<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.21<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Weighted average number of shares outstanding:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Basic<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n12,327,974<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11,162,026<\/td>\n\u00a0<\/td>\n<\/tr>\n
Diluted<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n12,327,974<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11,162,026<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

The accompanying notes are an integral part of these
\ncondensed consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b><\/p>\n

\u00a0<\/p>\n

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<\/b><\/p>\n

\u00a0<\/p>\n

(unaudited)<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nThree
\n Months Ended March 31,<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
CASH FLOWS FROM OPERATING ACTIVITIES:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,692,034<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,329,062<\/td>\n)<\/td>\n<\/tr>\n
Adjustments to reconcile net loss to net cash used in operating activities:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Depreciation and amortization<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n537,276<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n591,552<\/td>\n\u00a0<\/td>\n<\/tr>\n
Allowance for credit losses<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n149,791<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n55,754<\/td>\n\u00a0<\/td>\n<\/tr>\n
Change in fair value of convertible notes<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(10,000<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(20,000<\/td>\n)<\/td>\n<\/tr>\n
Deferred income tax expense<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n17,652<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n21,522<\/td>\n\u00a0<\/td>\n<\/tr>\n
Amortization of debt premium<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(64,800<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Debt origination costs amortization<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n12,624<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7,012<\/td>\n\u00a0<\/td>\n<\/tr>\n
Changes in operating assets and liabilities:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accounts receivable, trade and other<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,606,443<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,095,232<\/td>\n)<\/td>\n<\/tr>\n
Other current assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(22,097<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(180,409<\/td>\n)<\/td>\n<\/tr>\n
Capitalized production costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(21,967<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(20,899<\/td>\n)<\/td>\n<\/tr>\n
Other long-term assets and employee receivable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(41,000<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(18,025<\/td>\n)<\/td>\n<\/tr>\n
Deferred revenue<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n159,792<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n477,150<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accounts payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(680,858<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(224,185<\/td>\n)<\/td>\n<\/tr>\n
Accrued interest \u2013 related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n120,029<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n144,607<\/td>\n)<\/td>\n<\/tr>\n
Other current liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,086,751<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,909,304<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other noncurrent liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(18,915<\/td>\n)<\/td>\n<\/tr>\n
Lease liability, operating leases<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(59,672<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(26,153<\/td>\n)<\/td>\n<\/tr>\n
Lease liability, finance leases<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n33,861<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n22,554<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net cash used in operating activities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,041,711<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,703,425<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
CASH FLOWS FROM INVESTING ACTIVITIES:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Purchase of fixed assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,850<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,088<\/td>\n)<\/td>\n<\/tr>\n
Net cash used in investing activities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,850<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,088<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
CASH FLOWS FROM FINANCING ACTIVITIES:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Proceeds from convertible note payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n775,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Proceeds from notes payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n250,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Repayment of term loan<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(448,165<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(417,712<\/td>\n)<\/td>\n<\/tr>\n
Principal payments on finance leases<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(31,002<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(21,357<\/td>\n)<\/td>\n<\/tr>\n
Net cash (used in) provided by financing activities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(429,167<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n585,931<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net decrease in cash and cash equivalents and restricted cash<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,472,728<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,118,582<\/td>\n)<\/td>\n<\/tr>\n
Cash and cash equivalents and restricted cash, beginning of period<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9,681,589<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9,128,843<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents and restricted cash, end of period<\/td>\n\u00a0<\/td>\n$<\/td>\n7,208,861<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,010,264<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

The accompanying notes are an integral part of these
\ncondensed consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b><\/p>\n

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)<\/b><\/p>\n

(unaudited)<\/b><\/p>\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Three
\n Months Ended<\/b><\/span><\/p>\n

March
\n 31,<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest paid<\/td>\n\u00a0<\/td>\n$<\/td>\n429,066<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n369,678<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities arising from obtaining right-of-use assets<\/td>\n\u00a0<\/td>\n$<\/td>\n15,697<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n26,019<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n\n\n
SUPPLEMENTAL DISCLOSURES OF NON-CASH FLOWS INFORMATION:<\/b><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes payable converted into shares of common stock<\/span><\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n310,000\u00a0\u00a0<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

The following table provides a reconciliation of cash, cash equivalents
\nand restricted cash reported within the statements of cash flows that sum to the total of the same such amounts shown in the statements
\nof cash flows:<\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Three
\n Months Ended<\/b><\/span><\/p>\n

March
\n 31,<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents<\/td>\n\u00a0<\/td>\n$<\/td>\n6,238,857<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,085,260<\/td>\n\u00a0<\/td>\n<\/tr>\n
Restricted cash<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows<\/td>\n\u00a0<\/td>\n$<\/td>\n7,208,861<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,010,264<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

The accompanying notes are an integral part of these
\ncondensed consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND
\nSUBSIDIARIES<\/b><\/p>\n

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS\u2019 EQUITY<\/b><\/p>\n

(unaudited)<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
For the three months ended March 31, 2026<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCommon
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Additional<\/b><\/span><\/p>\n

Paid-in<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAccumulated<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Total<\/b><\/span><\/p>\n

Stockholders\u2019<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCapital<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDeficit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nEquity<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Balance December 31, 2025<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n12,221,432<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n183,321<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n158,809,301<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(149,303,197<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n9,690,425<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss for the three months ended March 31, 2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,692,034<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,692,034<\/td>\n)<\/td>\n<\/tr>\n
Conversion of convertible notes payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n291,672<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,376<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n305,624<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n310,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Balance March 31, 2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n12,513,104<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n187,697<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n159,114,925<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(151,995,231<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n7,308,391<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
For the three months ended March 31, 2025<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCommon
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Additional<\/b><\/span><\/p>\n

Paid-in<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAccumulated<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Total<\/b><\/span><\/p>\n

Stockholders\u2019<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCapital<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDeficit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nEquity<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Balance December 31, 2024<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11,612,026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n166,688<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n157,692,132<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(146,214,429<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n11,645,391<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss for the three months ended March 31, 2025<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,329,062<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,329,062<\/td>\n)<\/td>\n<\/tr>\n
Issuance of shares related to restricted stock units<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,093<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n91<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(91<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Balance March 31, 2025<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11,618,119<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n166,779<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n157,692,041<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(148,543,491<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n9,316,329<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

The accompanying notes are an integral part of these
\ncondensed consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b><\/p>\n

\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

\u00a0<\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 1 \u2013 GENERAL<\/span><\/b><\/p>\n

\u00a0<\/p>\n

Dolphin Entertainment, Inc.,
\na Florida corporation (the \u201cCompany,\u201d \u201cDolphin,\u201d \u201cwe,\u201d \u201cus\u201d or \u201cour\u201d), is
\na leading independent entertainment marketing and production company. Through its subsidiaries 42West, LLC (\u201c42West\u201d), The
\nDoor Marketing Group, LLC (\u201cThe Door\u201d), Shore Fire Media, Ltd (\u201cShore Fire\u201d), The Digital Dept., LLC (\u201cThe
\nDigital Dept.\u201d), Special Projects LLC (\u201cSpecial Projects\u201d), and Elle Communications, LLC (\u201cElle\u201d), the Company
\nprovides expert strategic marketing and publicity services to many of the top brands, both individual and corporate, in the motion picture,
\ntelevision, music, gaming, culinary, hospitality and lifestyle industries.<\/p>\n

\u00a0<\/p>\n

42West (Film and Television,
\nGaming), Shore Fire (Music), The Door (Culinary, Hospitality, Lifestyle) and Elle (Impact, Philanthropy, Non-Profit) are each recognized
\nglobal public relations (\u201cPR\u201d) and marketing leaders for the industries they serve. The Digital Dept. provides influencer
\nmarketing capabilities through divisions dedicated to influencer talent management, brand campaign strategy and execution, and influencer
\nevent ideation and production. Special Projects is the entertainment industry\u2019s leading celebrity booking firm, specializing in
\nuniting brands and events with celebrities and influencers across the entertainment, media, fashion, consumer product and tech industries.
\nDolphin\u2019s legacy content production business, founded by our Emmy-nominated Chief Executive Officer, Bill O\u2019Dowd, has produced
\nmultiple feature films and award-winning digital series, primarily aimed at family and young adult markets.<\/p>\n

\u00a0<\/p>\n<\/p>\n

Basis of Presentation<\/span><\/i><\/b><\/p>\n

\u00a0<\/p>\n

The accompanying unaudited
\ncondensed consolidated financial statements include the accounts of Dolphin, and all of its wholly owned subsidiaries, comprising Dolphin
\nFilms, Inc. (\u201cDolphin Films\u201d), Dolphin SB Productions LLC, Dolphin Max Steel Holdings, LLC, Dolphin JB Believe Financing,
\nLLC, Dolphin JOAT Productions, LLC, 42West, The Door, Shore Fire, The Digital Dept., Special Projects and Elle. The accounts of Always
\nAlpha Sports Management, LLC (\u201cAlways Alpha\u201d) are also included as of and for the three months ended March 31, 2025. Always
\nAlpha was subsequently sold on November 14, 2025. All significant intercompany balances and transactions have been eliminated in consolidation.
\nThe Company applies the equity method of accounting for its investments in entities for which it does not have a controlling financial
\ninterest, but over which it has the ability to exert significant influence.<\/p>\n

\u00a0<\/p>\n

The unaudited condensed
\nconsolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
\n(\u201cU.S. GAAP\u201d) for interim financial information and the instructions to Form 10-Q under the Securities Exchange Act of 1934,
\nas amended (the \u201cExchange Act\u201d), and Article 8 of Regulation S-X. Accordingly, they do not include all of the information
\nand footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company\u2019s management, the accompanying
\nunaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary
\nfor a fair statement of its financial position as of March 31, 2026, and its results of operations and cash flows for the three months
\nended March 31, 2026 and 2025. All significant inter-company balances and transactions have been eliminated from the condensed consolidated
\nfinancial statements. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may
\nbe expected for the full year ending December 31, 2026. The condensed consolidated balance sheet as of December 31, 2025 has been derived
\nfrom the audited financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete
\nfinancial statements. The accompanying unaudited condensed consolidated financial statements should be read together with the audited
\nconsolidated financial statements and related notes included in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended
\nDecember 31, 2025.<\/p>\n

\u00a0<\/p>\n<\/p>\n

Use of Estimates<\/span><\/i><\/b><\/p>\n

\u00a0<\/p>\n

The preparation of financial
\nstatements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
\nand liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts
\nof revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial
\nstatements relate to the estimates in the fair value of acquisitions, estimates in assumptions used to calculate the fair value of certain
\nliabilities and impairment assessments for investment in capitalized production costs, goodwill and long-lived assets. Actual results
\ncould differ materially from such estimates.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n<\/p>\n

Recent Accounting Pronouncements<\/span><\/i><\/b><\/p>\n

\u00a0<\/p>\n

Accounting Pronouncements Adopted in 2026<\/span><\/i><\/b><\/p>\n

\u00a0<\/p>\n

In July 2025, the Financial
\nAccounting Standards Board (\u201cFASB\u201d) issued Accounting Standards Update (\u201cASU\u201d) 2025-05,\u00a0Financial Instruments\u2014Credit
\nLosses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets\u00a0(\u201cASU 2025-05\u201d). ASU 2025-05
\nprovides a practical expedient that permits an entity to assume that conditions at the balance sheet date remain unchanged over the life
\nof the asset when estimating expected credit losses for current accounts receivable and current contract assets. ASU 2025-05 is effective
\nfor fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted.
\nThe amendments in ASU 2025-05 should be applied prospectively. The Company adopted this ASU prospectively in the first quarter of 2026,
\nand its adoption did not have a material effect on the Company\u2019s condensed consolidated financial statements.<\/p>\n

\u00a0\u00a0<\/p>\n

Accounting Guidance Not Yet Adopted<\/span><\/i><\/b><\/p>\n

\u00a0<\/p>\n

In November 2024, the FASB
\nissued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40) (\u201cASU 2024-03\u201d). ASU 2024-03 requires the
\ndisaggregated disclosure of specific expense categories, including employee compensation, depreciation, and amortization, within relevant
\nincome statement captions. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal
\nyears beginning after December 15, 2027. Adoption of ASU 2024-03 can either be applied prospectively to consolidated financial statements
\nissued for reporting periods after the effective date of ASU 2024-03 or retrospectively to any or all prior periods presented in the consolidated
\nfinancial statements. Early adoption is also permitted. ASU 2024-03 will likely result in the required additional disclosures being included
\nin our consolidated financial statements once adopted. We are currently evaluating the provisions of ASU 2024-03.<\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 2 \u2013 REVENUE<\/span><\/b><\/p>\n

\u00a0<\/p>\n

Disaggregation of Revenue<\/span><\/i><\/p>\n

\u00a0<\/p>\n

The Company\u2019s
\nprincipal geographic markets are within the U.S. The following is a description of the principal activities, by reportable segment, from
\nwhich we generate revenue. For more detailed information about reportable segments, see Note 10.<\/p>\n

\u00a0<\/p>\n

Entertainment Publicity and Marketing<\/span><\/i><\/p>\n

\u00a0<\/p>\n

The Entertainment Publicity
\nand Marketing (\u201cEPM\u201d) segment generates revenue from diversified marketing services, including public relations, entertainment
\nand hospitality content marketing, strategic marketing consulting and content production of marketing materials. Within the EPM segment,
\nwe typically identify one performance obligation, the delivery of professional publicity services, in which we typically act as the principal.
\nThe Company renders services to clients for a fixed monthly fee. The services provided by the Company are considered a single performance
\nobligation that is simultaneously consumed by clients as they are being rendered by the Company. The Company recognizes revenue as the
\nmonthly services are performed. Direct costs reimbursed by clients are billed as pass-through revenue with no mark-up.<\/p>\n

\u00a0<\/p>\n

We also enter into management
\nagreements with a roster of social media influencers, athletes and sports broadcasters and we are paid a percentage of the revenue
\nearned by them. Due to the short-term nature of these contracts, in which we typically act as the agent, the performance obligation is
\ntypically completed and revenue is recognized net at a point in time, typically the date of publication.<\/p>\n

\u00a0<\/p>\n

Content Production<\/span><\/i><\/p>\n

\u00a0<\/p>\n

The Content Production (\u201cCPD\u201d)
\nsegment generates revenue from the production of original motion pictures and other digital content production. In the CPD segment, we
\ntypically identify performance obligations depending on the type of service, for which we generally act as the principal. Revenue from
\nmotion pictures is recognized upon transfer of control of the licensing rights of the motion picture to the customer. For minimum guarantee
\nlicensing arrangements, the amount related to each performance obligation is recognized when the content is delivered, and the window
\nfor exploitation rights in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit
\nfrom the content. For sales or usage-based royalty income, revenue is recognized starting at the exhibition date and is based on the Company\u2019s
\nparticipation in the box office receipts of the theatrical exhibitor and the performance of the motion picture.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0<\/p>\n

During the three months
\nended March 31, 2026, the Company
\nentered into an agreement with YB Aircraft Productions Inc. (\u201cYB\u201d) to acquire the licensing rights to distribute
\nYoungblood movie worldwide, with the exception of Canada, and agreed to pay YB a guaranteed, non-refundable advance of $700,000,
\npayable in two equal installments of $350,000 each, on August 31, 2026 and February 28, 2027. The $700,000 advance to YB was
\nrecorded in direct costs in our condensed consolidated statement of operations for the three months ended March 31, 2026. The
\nCompany also entered into a distribution agreement with Well Go USA, Inc. (\u201cWell Go\u201d) to distribute the film across all
\nmedia in the United States. The agreement provides for a $450,000 guaranteed, non-refundable advance against the revenues from the
\ndistribution of Youngblood upon delivery of the film to Well Go. The film was released in theaters on March 6, 2026 and the Company
\nrecorded revenues of $450,000 from the minimum guaranteed advance for the three months ended March 31, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During the three months
\nended March 31, 2025, the Company recognized $92,033 of revenue in its CPD segment related to sales of its motion picture Believe released
\nin 2013.<\/p>\n

\u00a0<\/p>\n

The revenues recorded by the EPM
\nand CPD segments is detailed below<\/span>:<\/span><\/p>\n<\/p>\n\n\n\n\n\n\n\n\n
Schedule of revenue by major customers by reporting segments<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFor
\n the Three Months Ended March 31,<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Entertainment publicity and marketing<\/td>\n\u00a0<\/td>\n$<\/td>\n12,348,245<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,077,678<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Content production<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n455,692<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n92,033<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Revenues<\/td>\n\u00a0<\/td>\n$<\/td>\n12,803,937<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,169,711<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

Contract Balances<\/span><\/i><\/p>\n

\u00a0<\/p>\n

The opening and closing balances
\nof our contract asset and liability balances from contracts with customers as of March 31, 2026 and December 31, 2025 were as follows:\u00a0<\/p>\n

\u00a0<\/p>\n<\/p>\n\n\n\n\n\n
\u00a0<\/td>\nSchedule of contract liability with customers<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nAccounts Receivable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nOther Receivables<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nContract Assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nContract Liabilities<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nBalance at December 31, 2025<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,848,970<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n5,243,931<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n113,176<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n794,177<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nBalance at March 31, 2026<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,952,004<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,384,663<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n223,131<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n953,969<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Contract assets are comprised
\nof services provided for which consideration has not been received and are transferred to accounts receivable when the right to payment
\nbecomes unconditional. Contract assets are presented within other current assets in the condensed consolidated balance sheets as of March
\n31, 2026 and December 31, 2025.<\/p>\n

\u00a0<\/p>\n

Contract liabilities are
\nrecorded when the Company receives advance payments from customers for public relations projects or as deposits for promotional or brand-supported
\nvideo projects. Once the work is performed or the projects are delivered to the customer, the contract liabilities are deemed earned and
\nrecorded as revenue. Advance payments received are generally for a short duration and are recognized once the performance obligation of
\nthe contract is met.<\/p>\n

\u00a0<\/p>\n

Revenues for the three months ended March 31, 2026 and 2025 include
\nthe following:<\/p>\n<\/p>\n\n\n\n\n\n\n
Schedule of contract liability with customers<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nThree Months Ended March 31,<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Amounts included in the beginning of year contract liability balance<\/td>\n\u00a0<\/td>\n$<\/td>\n693,919<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n333,713<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

The Company\u2019s
\nunsatisfied performance obligations are for contracts that have an original expected duration of one year or less and, as such, the Company
\nis not required to disclose the remaining performance obligation.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n<\/p>\n

NOTE 3 \u2014 GOODWILL AND INTANGIBLE ASSETS<\/span><\/b><\/p>\n

\u00a0<\/p>\n

Goodwill<\/i><\/b><\/p>\n

\u00a0<\/p>\n

As of March 31, 2026, the
\nCompany had a balance of $21,507,944<\/span> of goodwill on its condensed consolidated balance sheet resulting from its acquisitions of 42West,
\nThe Door, Special Projects, Shore Fire and Elle. All the Company\u2019s goodwill is related to the entertainment, publicity and marketing
\nsegment.<\/p>\n

\u00a0<\/p>\n

The Company evaluates goodwill
\nin the fourth quarter or more frequently if management believes indicators of impairment exist. Such indicators could include but are
\nnot limited to (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, (3) significant
\ndecline in market capitalization or (4) an adverse action or assessment by a regulator. There were no triggering events noted during the
\nthree months ended March 31, 2026 and 2025, that would require the Company to reassess goodwill for impairment outside its annual impairment
\ntest.<\/p>\n

\u00a0\u00a0<\/i><\/b><\/p>\n

Intangible Assets<\/i><\/b><\/p>\n

\u00a0<\/p>\n

Finite-lived intangible assets consisted of the following as of
\nMarch 31, 2026 and December 31, 2025:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n
Schedule of intangible assets<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nGross
\n Carrying
Amount<\/b><\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAccumulated<\/p>\n

Amortization<\/b><\/span><\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nNet
\n Carrying
Amount<\/b><\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nGross
\n Carrying
Amount<\/b><\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAccumulated<\/p>\n

Amortization<\/b><\/span><\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nNet
\n Carrying
Amount<\/b><\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Intangible assets subject to amortization:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Customer relationships<\/td>\n\u00a0<\/td>\n$<\/td>\n17,592,387<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n11,387,404<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,204,983<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n17,592,387<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n10,997,027<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,595,360<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Trademarks and trade names<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,128,583<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,957,835<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,170,748<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,128,583<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,825,336<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,303,247<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Non-compete agreements<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n690,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n690,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n690,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n690,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n23,410,970<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n16,035,239<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,375,731<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n23,410,970<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n15,512,363<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,898,607<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

Amortization expense
\nassociated with the Company\u2019s intangible assets was $522,876<\/span> and $574,242<\/span> for the three months ended March 31, 2026, and 2025,
\nrespectively.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nSchedule of amortization expense<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,568,629<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2027<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,406,262<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2028<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,064,106<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2029<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n906,886<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2030<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n727,096<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nThereafter<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,702,752<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nTotal<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,375,731<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/b><\/p>\n<\/p>\n

NOTE 4 \u2014 OTHER CURRENT LIABILITIES<\/span><\/b><\/p>\n

\u00a0\u00a0<\/p>\n

Other current liabilities consisted of the following:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of other liabilities<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Accrued funding under Max Steel marketing agreement<\/td>\n\u00a0<\/td>\n$<\/td>\n620,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n620,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accrued producer guarantee fee for Youngblood<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n700,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Accrued audit, legal and other professional fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n168,489<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n407,826<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accrued commissions<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n680,285<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n897,594<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accrued bonuses<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n989,647<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,490,042<\/td>\n\u00a0<\/td>\n<\/tr>\n
Talent liability<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,384,663<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,243,931<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accumulated customer deposits<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,082,264<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,144,898<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,384,720<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,292,529<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other current liabilities<\/td>\n\u00a0<\/td>\n$<\/td>\n10,010,068<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n11,096,820<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

During the three months ended March
\n31, 2025, the Company entered into an agreement with Andrea Oliveri and Nicole Vecchiarelli, (\u201cSpecial Projects Sellers\u201d), to pay
\n$416,171<\/span> of additional consideration related to the working capital adjustment. Since the agreement was made outside of the measurement
\nperiod of one year from the acquisition date of October 1, 2023, the payment due to the Special Projects Sellers was recorded as acquisition
\ncosts in the condensed consolidated statement of operations for the three months ended March 31, 2025. The additional consideration related
\nto the working capital adjustment was paid in installments during the year ended December 31, 2025 and there was no balance outstanding
\nrelated to this arrangement as of March 31, 2026 and December 31, 2025.<\/p>\n<\/p>\n

\u00a0\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n<\/p>\n

NOTE 5 \u2014 DEBT<\/span><\/b><\/p>\n

\u00a0<\/p>\n

Total debt of the Company was as follows as of March 31, 2026
\nand December 31, 2025:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of debt<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Debt Type<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 31,<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember 31,<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/b><\/span><\/td>\n\u00a0<\/b><\/span><\/td>\n\u00a0<\/b><\/span><\/td>\n2026<\/b><\/span><\/td>\n\u00a0<\/b><\/span><\/td>\n\u00a0<\/b><\/span><\/td>\n\u00a0<\/b><\/span><\/td>\n2025<\/b><\/span><\/td>\n\u00a0<\/b><\/span><\/td>\n<\/tr>\n
Convertible notes payable<\/td>\n\u00a0<\/td>\n$<\/td>\n7,450,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,710,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible note payable – fair value option<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n260,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n270,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Non-convertible promissory notes<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,080,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,080,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Non-convertible promissory notes \u2013 Socialyte<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,000,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,000,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes from related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,242,873<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,242,873<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loans from related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n983,112<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n983,112<\/td>\n\u00a0<\/td>\n<\/tr>\n
Revolving line of credit<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
First BKU Term loan<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,195,186<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,481,182<\/td>\n\u00a0<\/td>\n<\/tr>\n
Second BKU Term loan<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,218,857<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,381,026<\/td>\n\u00a0<\/td>\n<\/tr>\n
Debt issuance costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(58,894<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(71,518<\/td>\n)<\/td>\n<\/tr>\n
Total debt<\/td>\n\u00a0<\/td>\n$<\/td>\n23,771,134<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n24,476,675<\/td>\n\u00a0<\/td>\n<\/tr>\n
Less current portion of debt<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(7,302,548<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(6,963,761<\/td>\n)<\/td>\n<\/tr>\n
Noncurrent portion of debt<\/td>\n\u00a0<\/td>\n$<\/td>\n16,468,586<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n17,512,914<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

The table below details the maturity dates of the principal amounts
\nfor the Company\u2019s debt as of March 31, 2026:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of future annual contractual principal payment commitments of debt<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Debt
\n Type<\/span><\/td>\n		\u00a0<\/span><\/td>\nMaturity
\n Date<\/span><\/td>\n		\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2027<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2028<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2029<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2030<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nThereafter<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Convertible notes payable<\/td>\n\u00a0<\/td>\nBetween October 2026 and September 2030<\/span><\/td>\n\u00a0<\/td>\n$<\/td>\n1,250,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,850,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n400,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n675,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,775,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Nonconvertible promissory notes<\/td>\n\u00a0<\/td>\nRanging between June 2025 and August 2030<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n500,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n750,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,665,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n715,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n450,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Nonconvertible unsecured promissory note \u2013 Socialyte<\/td>\n\u00a0<\/td>\nSeptember 2023<\/span> (A)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,000,000<\/span><\/td>\n(A)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Revolving line of credit<\/td>\n\u00a0<\/td>\nJuly 11,2026 (mandatory 30-day annual clearing of the line of credit balance)<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
First BKU Term Loan<\/td>\n\u00a0<\/td>\nSeptember 2028<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n890,311<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,276,631<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,028,244<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Second BKU Term Loan<\/td>\n\u00a0<\/td>\nDecember 2027<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n503,332<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n715,525<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes form related party<\/td>\n\u00a0<\/td>\nDecember 2027 through December 2029<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,107,873<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,135,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Loans from related party<\/td>\n\u00a0<\/td>\nJanuary 2029 through December 2029<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n983,112<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,543,643<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,700,029<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n4,093,244<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,508,112<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,225,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

(A)<\/sup><\/span>\u00a0<\/span><\/sup>As
\ndiscussed below, The Socialyte Purchase Agreement (as defined below) allows the Company to offset a working capital deficit against the
\nSocialyte Promissory Note (as defined below). As such, the Company deferred the installment payments until the final post-closing working
\ncapital adjustment is agreed upon with the seller of Socialyte.<\/span><\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

Convertible Notes Payable<\/b><\/p>\n

\u00a0<\/p>\n

During the three months
\nended March 31, 2026 and 2025 the Company issued one and six convertible notes payable and received proceeds of $50,000<\/span> and $775,000<\/span>,
\nrespectively. As of March 31, 2026, the Company had twenty-nine convertible notes payable outstanding. The convertible notes payable bear
\ninterest at a rate of 10%<\/span> per annum, with initial maturity dates ranging between the second anniversary and the sixth anniversary of their
\nrespective issuances.<\/p>\n

\u00a0<\/p>\n

The balance of each convertible
\nnotes payable and any accrued interest may be converted at the noteholder\u2019s option at any time at the following conversion prices:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of convertible notes payable<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Aggregate Convertible Notes balance<\/td>\n\u00a0<\/td>\nConversion Price<\/td>\nFloor\/Conversion Price<\/td>\n\u00a0<\/td>\n<\/tr>\n
$<\/td>\n2,700,000<\/span><\/td>\n\u00a0<\/td>\n90-day average closing market price of our common stock<\/span><\/td>\n$<\/td>\n5.00<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n900,000<\/span><\/td>\n\u00a0<\/td>\n90-day average closing market price of our common stock<\/span><\/td>\n$<\/td>\n4.00<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n30-day average closing market price of our common stock<\/span><\/td>\n$<\/td>\n1.01<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n325,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.11<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.02<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n50,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.01<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n1,650,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.07<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n125,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.03<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n500,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.00<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.16<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n200,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.04<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n350,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.28<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.32<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.67<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n50,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.60<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\nFixed conversion price<\/span><\/td>\n$<\/td>\n1.25<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
$<\/td>\n7,450,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

As of March 31, 2026 the
\nprincipal balance of $1,550,000<\/span> and $5,900,000<\/span> related to the convertible notes payable was recorded in current and noncurrent liabilities,
\nrespectively, on its condensed consolidated balance sheet under the caption convertible notes payable. As of December 31, 2025 the principal
\nbalance of $1,250,000<\/span> and $6,460,000<\/span> related to the convertible notes payable was recorded in current and noncurrent liabilities, respectively,
\non its condensed consolidated balance sheet under the caption convertible notes payable.<\/p>\n

\u00a0<\/p>\n

On January 26, 2026, March
\n9, 2026 and March 18, 2026, three holders of three convertible notes payable with an aggregate principal balance of $310,000<\/span><\/span><\/span> converted
\nthe full principal amount of each of the convertible promissory notes payable into an aggregate of 291,672<\/span><\/span><\/span> shares of the Company\u2019s
\ncommon stock, pursuant to the provisions of their respective convertible notes payable. On January 8, 2026, the Company issued a convertible
\nnote payable in the amount of $50,000<\/span> and received proceeds of $50,000<\/span>. The note bears interest at a rate of 10%<\/span> per annum, may be converted
\nat a price of $1.60<\/span> per share and matures on the fourth anniversary of its issuance date. On May 1, 2026, the holder of two convertible
\npromissory notes converted the aggregate principal balance of $500,000<\/span> and accrued interest of $4,167<\/span> into 504,167<\/span> shares of the Company\u2019s
\ncommon stock pursuant to the convertible notes payable. On May 8, 2026, the Company entered into two subscription agreements (the \u201cSubscription Agreements\u201d)
\nwith two investors for two convertible promissory notes (each a \u201cNotes\u201d) in the aggregate principal amount of $500,000<\/span> and
\nreceived cash proceeds of $500,000<\/span>. The Notes bear interest at 10%<\/span> per annum and each Notes matures on May 8, 2031. The noteholders may
\nconvert all or part of the principal balance of the Notes and any accrued interest thereon at any time before the maturity date into shares
\nof the Company\u2019s common stock at a purchase price of $1.43<\/span> per share.<\/p>\n

\u00a0<\/p>\n

The Company recorded interest
\nexpense related to these convertible notes payable of $191,136<\/span> and $136,000<\/span> during the three months ended March 31, 2026 and 2025, respectively.
\nIn addition, the Company made cash interest payments amounting to $192,528<\/span> and $129,556<\/span>, respectively, during the three months ended March
\n31, 2026 and 2025, related to the convertible notes payable.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0<\/p>\n

Convertible Note Payable at Fair Value<\/b><\/p>\n

\u00a0<\/p>\n

The Company has one convertible
\nnote payable outstanding with a principal amount of $500,000<\/span> as of March 31, 2026, for which it elected the fair value option. As such,
\nthe estimated fair value of the note was recorded on its issue date. At each balance sheet date, the Company records the fair value of
\nthe convertible note payable with any changes in the fair value recorded in the condensed consolidated statements of operations.<\/p>\n

\u00a0<\/p>\n

The Company had a balance
\nof $260,000<\/span> and $270,000<\/span> in noncurrent liabilities as of March 31, 2026 and December 31, 2025, respectively, on its condensed consolidated
\nbalance sheets related to the convertible note payable measured at fair value. See Note 7 \u2013 Fair Value Measurements for further
\ndiscussion on the valuation of this convertible note payable.<\/p>\n

\u00a0<\/p>\n

The Company recorded a gain
\nin fair value of $10,000<\/span> and $20,000<\/span> for the three months ended March 31, 2026 and 2025, respectively, on its condensed consolidated statements
\nof operations related to this convertible note payable at fair value.<\/p>\n

\u00a0<\/p>\n

The convertible
\nnote payable at fair value bears interest at a rate of 8%<\/span> per annum. The Company recorded interest expense related to this convertible
\nnote payable at fair value of $9,863<\/span><\/span> for each of the three months ended March 31, 2026 and 2025. In addition, the Company made cash interest
\npayments amounting to $9,863<\/span><\/span> for both the three months ended March 31, 2026 and 2025, related to the convertible note payable at fair
\nvalue.<\/p>\n

\u00a0<\/p>\n

Nonconvertible Promissory Notes<\/b><\/p>\n

\u00a0<\/p>\n

During the three months
\nended March 31, 2025, the Company issued a nonconvertible promissory note and received proceeds $250,000<\/span>. The Company did not issue new
\nnonconvertible promissory notes during the three months ended March 31, 2026. As of March 31, 2026, the Company had eleven outstanding
\nunsecured nonconvertible promissory notes in the aggregate amount of $5,080,000<\/span>, which bear interest at a rate of 10% per annum and mature
\nbetween November 2026 and October 2030.<\/p>\n

\u00a0<\/p>\n

As of both March 31, 2026
\nand December 31, 2025, the Company had a balance of $500,000<\/span><\/span>, recorded as current liabilities and $4,580,000<\/span><\/span> in noncurrent liabilities
\non its condensed consolidated balance sheets related to these unsecured nonconvertible promissory notes.<\/p>\n

\u00a0<\/p>\n

The Company recorded interest
\nexpense related to these nonconvertible promissory notes of $127,000<\/span> and $99,083<\/span> for the three months ended March 31, 2026 and 2025, respectively.
\nThe Company made interest payments of $125,778<\/span> and $97,000<\/span> during the three months ended March 31, 2026 and 2025, respectively, related
\nto the nonconvertible promissory notes.<\/p>\n

\u00a0<\/p>\n

Nonconvertible Unsecured Promissory Note – Socialyte Promissory Note<\/b><\/p>\n

\u00a0<\/p>\n

In connection with the purchase
\nagreement for the acquisition of Socialyte (\u201cSocialyte Purchase Agreement\u201d), the Company entered into a promissory note with
\nthe sellers of Socialyte (\u201cthe Socialyte Promissory Note\u201d) amounting to $3,000,000. The Socialyte Promissory Note matured
\non September 30, 2023 and was payable in two payments: $1,500,000<\/span><\/span> on June 30, 2023 and $1,500,000<\/span> on September 30, 2023. The Socialyte
\nPromissory Note carries an interest of 4% per annum, which accrues monthly, and all accrued interest was to be due and payable on September
\n30, 2023.<\/p>\n

\u00a0<\/p>\n

The Socialyte Purchase Agreement
\nallows the Company to offset a working capital deficit against the Socialyte Promissory Note. As such, the Company deferred these installment
\npayments until the final post-closing working capital adjustment is agreed upon with the seller of Socialyte. The Company has filed a
\nlawsuit against the seller of Socialyte and certain of its principals related to the Socialyte Purchase Agreement. See Note 12.<\/p>\n

\u00a0<\/p>\n

The Company recorded interest
\nexpense related to this Socialyte Promissory Note of $30,000<\/span><\/span> for the three months ended March 31, 2026 and 2025. No interest payments
\nwere made during the three months ended March 31, 2026 and 2025, related to the Socialyte Promissory Note.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0\u00a0<\/p>\n

BankUnited Term Loans<\/b><\/p>\n

\u00a0<\/p>\n

On September 29, 2023, the
\nCompany entered into a loan agreement with BankUnited (\u201cBankUnited Loan Agreement\u201d) in which an existing term loan with BankProv
\nwas repaid (the \u201cRefinancing Transaction\u201d). The BankUnited Loan Agreement includes: (i) $5,800,000<\/span> secured term loan (\u201cFirst
\nBKU Term Loan\u201d), (ii) and $750,000<\/span> of a secured revolving line of credit (\u201cBKU Line of Credit\u201d) and (iii) $400,000<\/span> Commercial
\nCard (\u201cBKU Commercial Card\u201d). The First BKU Term Loan carries a 1.0%<\/span> origination fee and matures in September 2028, the BKU
\nLine of Credit carries an initial origination fee of 0.5% and a 0.25% fee on each annual anniversary and matures in September 2026; the
\nBKU Commercial Card does not have any initial or annual fee and matures in September 2026. The First BKU Term Loan has a declining prepayment
\npenalty equal to 5% in year one, 4% in year two, 3% in year three, 2% in year four and 1% in year five of the outstanding balance. The
\nBKU Line of Credit and BKU Commercial Card can be repaid without any prepayment penalty.<\/span><\/p>\n

\u00a0<\/p>\n

On December 6, 2024, the
\nCompany entered into a second Bank United Loan Agreement (\u201cSecond BKU Term Loan\u201d) for $2.0 million to finance the acquisition
\nof Elle. The Second BKU Term Loan carries a 1.0% origination fee and matures in December 2027. Similar to the First BKU Term Loan, the
\nSecond BKU Term Loan has a declining prepayment penalty equal to 3% in year one, 2% in year two and 1% in year three of the outstanding
\nbalance. (The First BKU Term Loan, Second BKU Term Loan, BKU Line of Credit and BKU Commercial Card are collectively referred to as the
\n\u201cBank United Credit Facility\u201d).<\/span><\/p>\n

\u00a0<\/p>\n

Interest accrues at 8.10%
\nfixed rate per annum on the First BKU Term Loan and 7.10% fixed rate per annum on the Second BKU Term Loan. Principal and interest are
\npayable on a monthly basis based on a 5-year amortization for the First BKU Term Loan and 3-year amortization for the Second BKU Term
\nLoan. Interest on the BKU Line of credit is payable on a monthly basis, with all principal due at maturity. The BKU Commercial Card payment
\nis due in full at the end of each bi-weekly billing cycle. During the three months ended March 31, 2026 and the year ended December 31,
\n2025, the Company did not use the BKU Commercial Card. During each of the three months ended March 31, 2026 and 2025, the Company made
\npayments in the amount of $354,621, inclusive of $68,625<\/span> and $90,722<\/span>, respectively, of interest related to the First BKU Term Loan. During
\neach of the three months ended March 31, 2026 and 2025, the Company made payments in amount of $185,995, inclusive of $23,827<\/span> and $32,187<\/span>,
\nrespectively, of interest related to the Second BKU Term Loan.<\/p>\n

\u00a0<\/p>\n

Interest on the BKU Line
\nof Credit is variable based on the Lender\u2019s Prime Rate. During the three months ended March 31, 2026 and 2025, the Company recorded
\ninterest expense and made payments of $6,778<\/span> and $7,550<\/span>, respectively, related to the BKU Line of Credit.<\/p>\n

\u00a0<\/p>\n

As of March 31, 2026, the
\nCompany had a balance of $1,852,548<\/span> classified as current liabilities and $2,502,601<\/span> classified as noncurrent liabilities, net of $58,894<\/span>
\nof debt issuance costs, in its condensed consolidated balance sheet related to the First BKU Term Loan and the Second BKU Term Loan. As
\nof December 31, 2025, we had a balance of $1,813,760<\/span> classified as current liabilities and $2,976,930<\/span> classified as noncurrent liabilities,
\nnet of $71,518<\/span> of debt issuance costs, in our condensed consolidated balance sheet related to the First BKU Term Loan and the Second BKU
\nTerm Loan. As of March 31, 2026 and December 31, 2025, the Company had a balance of $400,000<\/span><\/span> of principal outstanding under the BKU Line
\nof Credit.<\/p>\n

\u00a0<\/p>\n

Amortization of debt origination
\ncosts under the Bank United Credit Facility is included as a component of interest expense in the condensed consolidated statements of
\noperations and amounted to approximately $12,624<\/span> and $7,012<\/span>, respectively, for the three months ended March 31, 2026 and 2025.<\/p>\n

\u00a0<\/p>\n

The BankUnited Credit Facility
\ncontains financial covenants tested semi-annually, starting on June 30, 2024, on a trailing twelve-month basis that require the Company
\nto maintain a minimum debt service coverage ratio of 1.25:1.00 and a maximum funded debt\/EBITDA ratio of 3.00:1.00. In addition, the BankUnited
\nCredit Facility contains a liquidity covenant that requires the Company to hold a cash balance at BankUnited with a daily minimum deposit
\nbalance of $2,000,000<\/span>. As of March 31, 2026, the Company believes it is in compliance with the debt covenants.<\/p>\n

\u00a0<\/p>\n

FVP Loan<\/b><\/p>\n

\u00a0<\/p>\n

On May 7, 2026, two of the Company\u2019s
\nwholly-owned subsidiaries, Shore Fire Media, Ltd. and The Door Marketing Group, LLC (collectively, the \u201cBorrowers\u201d), executed
\na Loan Agreement with certain Lenders and FVP Servicing, LLC (\u201cFVP\u201d), as agent for the Lenders providing for (i) a term loan
\nin the amount of $2,000,000, (ii) a delayed draw term loan in the amount of $2,000,000 that, subject to certain conditions, will be become
\navailable on November 7, 2026 and (ii) a second delayed draw term loan in the amount of $1,000,000 that, subject to certain conditions,
\nwill become available on May 7, 2027 (the \u201cLoans\u201d).<\/span> The Loans will bear interest at 12%<\/span> per annum from the date they are made
\nand will have a maturity date of May 7, 2029<\/span>. The Company executed a Guaranty in favor of FVP in connection with the Loan Agreement. In
\naddition, the Borrowers entered into a Security Agreement pursuant to which they granted FVP and the Lenders a security interest in substantially
\nall of its assets as collateral for the loan obligations and the Company entered into a Pledge and Security Agreement granting FVP and
\nthe Lenders a security interest in the equity of the Borrowers. Proceeds from the Loans will be for general working capital purposes.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 6 \u2014 LOANS FROM RELATED PARTY<\/span><\/b><\/p>\n

\u00a0<\/p>\n

On June 1, 2021, the Company
\nissued Dolphin Entertainment LLC (\u201cDE LLC\u201d), an entity wholly owned by the Company\u2019s CEO, Bill O\u2019Dowd, a nonconvertible
\npromissory note with a principal balance of $1,107,873<\/span>
\nwhich was to mature on December 31, 2026<\/span>.
\nOn April 29, 2024 and June
\n10, 2024<\/span>, the Company issued two nonconvertible promissory notes to DE LLC in the amounts of $1,000,000<\/span>
\nand $135,000<\/span>,
\nrespectively, which were to mature on April
\n29, 2029<\/span> and June 10, 2029, respectively, (collectively, \u201cthe DE LLC Notes\u201d). The DE LLC Notes each bore interest
\nat a rate of 10%<\/span>
\nper annum.<\/p>\n

\u00a0<\/p>\n

On May 12, 2025, the Company entered into an exchange agreement (the \u201cExchange Agreement\u201d) with DE LLC, pursuant
\nto which, the Company and DE LLC agreed to exchange the three DE LLC Notes in the aggregate principal amount of $2,242,873<\/span>
\ncurrently held by DE LLC for three convertible promissory notes (the \u201cDE New Notes\u201d) in the same principal amounts. As consideration
\nfor the exchange, the Company and DE LLC agreed to extend the maturity dates on each of the notes by six months. One
\nnote, with a principal balance of $1,107,873 now matures on June 30, 2027, one note with a principal balance of $1,000,000 now matures
\non October 29, 2029 and one note with a principal balance of $135,000, now matures on December 10, 2029. The DE New Notes continue to
\nbear interest at a rate of 10% per annum.<\/span> DE LLC may convert the principal balance of the DE New Notes and any accrued interest
\nthereon at any time before the maturity date of the DE New Notes into the Company\u2019s common stock at a conversion price of $1.00
\nper share. The Company accounted for this exchange as an extinguishment of debt and recorded the difference between the carrying value
\nof DE LLC Notes and the fair value of the DE New Notes of approximately $0.8<\/span>
\nmillion as a loss from extinguishment of debt in our condensed consolidated statement of operations for the year ended December 31, 2025.<\/p>\n

\u00a0<\/p>\n

As of March 31, 2026
\nand December 31, 2025, the Company had an aggregate principal balance of $2,839,556<\/span> and $2,904,357<\/span>, respectively, related to the DE New
\nNotes under the caption convertible note payable \u2013 related party in the Company\u2019s condensed consolidated balance sheets. During
\nthe three months ended March, 31, 2026 and 2025, the Company did not repay any principal balance or make interest payments on the DE LLC
\nNotes or DE New Notes.<\/p>\n

The Company recorded
\ninterest expense of $55,304<\/span> for the three months ended March 31, 2026 related to the DE LLC Notes and the DE New Notes. As of March 31,
\n2026 and December 31, 2025 we had a balance in accrued interest \u2013 related parties of $543,358<\/span> and $488,054<\/span>, respectively, on the
\nCompany\u2019s condensed consolidated balance sheets related to the DE LLC Notes.<\/p>\n

Mock Notes<\/span><\/b><\/p>\n

During 2024, the Company
\nissued three nonconvertible promissory notes to Mr. Donald Scott Mock, the brother of Mr. O\u2019Dowd, in the amount of $900,000<\/span>, $75,000<\/span>
\nand $8,112<\/span>, respectively, and received proceeds of $983,112 (the \u201cMock Notes\u201d). The Mock Notes bear interest at a rate of
\n10%<\/span> per annum and mature on January 16, 2029, May 28, 2029 and December 30, 2029, respectively.<\/p>\n

As of both March 31,
\n2026 and December 31, 2025, we had a principal balance of $983,112<\/span><\/span> related to the Mock Notes under the caption loans from related party
\nin the Company\u2019s condensed consolidated balance sheets. For the three months ended March 31, 2026 and 2025, the Company did not
\nrepay any principal balance on the Mock Notes. During the three months ended March 31, 2026, the Company made interest payments of $24,578<\/span>
\nrelated to the Mock Notes. No<\/span> interest payments related to the Mock Notes were made during the three months ended March 31, 2025.<\/p>\n

The Company recorded
\ninterest expense of $24,578<\/span><\/span> for the three months ended March 31, 2026 and 2025 related to the Mock Notes. As of March 31, 2026 and December
\n31, 2025, we had a balance in accrued interest \u2013 related parties of $188,728<\/span><\/span><\/span> on our condensed consolidated balance sheets related
\nto the Mock Notes.<\/p>\n<\/p>\n

NOTE 7 \u2014 FAIR VALUE MEASUREMENTS<\/span><\/b><\/p>\n

\u00a0<\/p>\n

The Company\u2019s non-financial
\nassets measured at fair value on a nonrecurring basis include goodwill and intangible assets. The determination of our intangible fair
\nvalues includes several assumptions and inputs (Level 3) that are subject to various risks and uncertainties. Management believes it has
\nmade reasonable estimates and judgments concerning these risks and uncertainties. All other financial assets and liabilities are carried
\nat amortized cost.<\/p>\n

\u00a0<\/p>\n

The Company\u2019s cash
\nbalances are representative of their fair values, as these balances are comprised of deposits available on demand. The carrying amounts
\nof accounts receivable, notes receivable, prepaid and other current assets, accounts payable and other non-current liabilities approximate
\ntheir fair values because of the short turnover of these instruments.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

Financial Disclosures about Fair Value of Financial Instruments<\/b><\/p>\n

\u00a0<\/p>\n

The tables below set forth information related to the Company\u2019s
\ncondensed consolidated financial instruments:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of consolidated financial instruments<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n in<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair Value<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCarrying<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCarrying<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nHierarchy<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nValue<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nValue<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Assets:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,283,857<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,283,857<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,756,585<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,756,585<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Restricted cash<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n925,004<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Liabilities:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,450,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,502,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7,710,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,224,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible note payable at fair value<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n260,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n260,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n270,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n270,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Convertible notes \u2013 related party<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,839,556<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,215,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,904,357<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,458,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0\u00a0<\/p>\n

Convertible notes payable<\/b><\/p>\n

\u00a0<\/p>\n

As of March 31, 2026, the Company
\nhas twenty-nine outstanding convertible notes payable with an aggregate principal amount of $7,450,000<\/span> and three outstanding convertible
\nnotes payable with a related party amounting to $2,839,556. See Note 5 for further information on the terms of these convertible notes
\nand Note 6 for further information on terms of convertible notes with a related party.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of convertible notes payable<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCarrying
\n Amount<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair
\n Value<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCarrying
\n Amount<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair
\n Value<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in May 2026<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n500,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n547,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n500,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n602,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in October 2026<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n300,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n292,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n300,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n291,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in November 2026<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n300,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n291,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n300,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n291,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in December 2026<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n150,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n145,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n150,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n146,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in January 2027<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n300,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n289,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n300,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n290,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note due in April 2027<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n122,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in June 2027<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n150,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n142,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n150,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n143,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in August 2027<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,000,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,860,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,000,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,869,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in September 2027<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n370,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n400,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n372,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in January 2028<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n99,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n99,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in July 2028<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n103,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n112,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in October 2028<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n92,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in December 2028<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n91,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note due in March 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n59,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n65,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note due in April 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n175,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n202,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n175,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n221,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note due in May 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n115,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n126,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note due in June 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n110,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n139,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note due in July 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n350,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n359,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n350,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n394,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in January 2030<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n50,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in February 2030<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n425,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n501,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n425,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n553,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in August 2030<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,700,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,791,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,800,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,075,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible notes due in September 2030<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n104,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n114,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note with related party due in June 2027<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,268,996<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,889,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,302,795<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,007,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note with related party due in October 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,382,179<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,175,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,409,495<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,286,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10% convertible note with related party due in December 2029<\/td>\n\u00a0<\/td>\n3<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n188,381<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n151,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n192,067<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n165,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n10,289,556<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n10,717,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n10,614,357<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n11,682,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

The estimated fair value of the convertible notes was computed
\nusing a Monte Carlo Simulation, using the following assumptions:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n
Schedule of fair value of the convertible notes<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Fair Value Assumption
\n \u2013 Convertible Debt<\/span><\/td>\n		\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Stock Price<\/td>\n\u00a0<\/td>\n$<\/td>\n1.47<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1.56<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Minimum Conversion Price<\/td>\n\u00a0<\/td>\n$<\/td>\n1.00<\/span> \u2013 5.00<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1.00<\/span> \u2013 5.00<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Annual Asset Volatility Estimate<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n60.0<\/span><\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n65.0<\/span><\/td>\n%<\/td>\n<\/tr>\n
Risk Free Discount Rate (based on U.S. government treasury obligation with a term similar to that of the convertible note)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.70%<\/span> \u2013 3.89<\/span><\/span><\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.47%<\/span> \u20133.71<\/span><\/span><\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0\u00a0<\/b><\/p>\n

Fair Value Option (\u201cFVO\u201d) Election \u2013 Convertible note
\npayable <\/b><\/p>\n

\u00a0<\/p>\n

Convertible note payable, at fair value<\/span><\/i><\/p>\n

\u00a0<\/p>\n

As of March 31, 2026, the
\nCompany had one outstanding convertible note payable with a face value of $500,000<\/span> (the \u201cMarch 4th<\/sup> Note\u201d), which
\nis accounted for under the ASC 825-10-15-4 FVO election. Under the FVO election, the financial instrument is initially measured at its
\nissue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date.
\nThe estimated fair value adjustment is presented as a single line item within other (expenses) income in the accompanying condensed consolidated
\nstatements of operations under the caption \u201cChange in fair value of convertible note.\u201d<\/p>\n

\u00a0<\/p>\n

The March 4th<\/sup>
\nNote is measured at fair value and categorized within Level 3 of the fair value hierarchy. The following is a reconciliation of the fair
\nvalues from December 31, 2025 to March 31, 2026:<\/p>\n<\/p>\n\n\n\n\n\n\n
Schedule of estimated fair value<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 4th Note<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Fair value as of December 31, 2025<\/td>\n\u00a0<\/td>\n$<\/td>\n270,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Gain on change of fair value reported in the condensed consolidated statements of operations<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(10,000<\/span><\/td>\n)<\/td>\n<\/tr>\n
Fair value as of December 31, 2025<\/td>\n\u00a0<\/td>\n$<\/td>\n260,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

The estimated fair value
\nof the March 4th<\/sup> Note as of March 31, 2026 and December 31, 2025, was computed using a Black-Scholes simulation of the present
\nvalue of its cash flows using a synthetic credit rating analysis and a required rate of return, using the following assumptions:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n
Schedule of estimated fair value of assumptions<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch
\n 31, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDecember
\n 31, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Face value principal payable<\/td>\n\u00a0<\/td>\n$<\/td>\n500,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n500,000<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Original conversion price<\/td>\n\u00a0<\/td>\n$<\/td>\n7.82<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n7.82<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Value of common stock<\/td>\n\u00a0<\/td>\n$<\/td>\n1.47<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1.56<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Expected term (years)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.93<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4.18<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Volatility<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n65<\/span><\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n75<\/span><\/td>\n%<\/td>\n<\/tr>\n
Risk free rate<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.86<\/span><\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.66<\/span><\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n<\/p>\n

NOTE 8\u2014 LOSS PER SHARE<\/span><\/b><\/p>\n

\u00a0<\/p>\n

The following table sets forth the computation of basic and diluted
\nloss per share:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of computation of basic and diluted loss per share<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\nThree Months ended March 31,<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n<\/tr>\n
Numerator<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,692,034<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,329,062<\/span><\/td>\n)<\/td>\n<\/tr>\n
Net income attributable to participating securities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss attributable to Dolphin Entertainment Common Stockholders and numerator for basic loss per share and diluted loss per share<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,692,034<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,329,062<\/span><\/td>\n)<\/td>\n<\/tr>\n
Denominator<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Denominator for basic and diluted loss weighted-average shares<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n12,327,974<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11,162,026<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Basic loss per share<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.22<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.21<\/span><\/td>\n)<\/td>\n<\/tr>\n
Diluted loss per share<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.22<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.21<\/span><\/td>\n)<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Basic (loss) earnings per
\nshare is computed by dividing income or loss attributable to the shareholders of common stock (the numerator) by the weighted-average
\nnumber of shares of common stock outstanding (the denominator) for the period. Diluted (loss) earnings per share assume that any dilutive
\nequity instruments, such as convertible notes payable and warrants were exercised and outstanding common stock adjusted accordingly, if
\ntheir effect is dilutive.<\/p>\n

\u00a0<\/p>\n

The Company\u2019s convertible
\nnote payable at fair value, the warrant and the Series C preferred stock have clauses that entitle the holder to participate if dividends
\nare declared to the common stockholders as if the instruments had been converted into shares of common stock. As such, the Company uses
\nthe two-class method to compute earnings per share and attribute a portion of the Company\u2019s net income to these participating securities.
\nThese securities do not contractually participate in losses. For the three months ended March 31, 2026 and 2025, the Company had a net
\nloss and as such the two-class method is not presented.<\/p>\n

\u00a0<\/p>\n

For the three months ended
\nMarch 31, 2026, potentially dilutive instruments including 5,772,823<\/span> shares of common stock issuable upon conversion of convertible notes
\noutstanding were not included in the diluted loss per share as inclusion was considered to be antidilutive.<\/p>\n

\u00a0<\/p>\n

For the three months ended
\nMarch 31, 2025, potentially dilutive instruments including 5,234,064<\/span> shares of common stock upon conversion of convertible notes outstanding
\nand 10,000<\/span> shares of common stock issuable upon exercise of the Series I Warrant were not included in the diluted loss per share as inclusion
\nwas considered to be antidilutive.<\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 9 \u2014 RELATED PARTY TRANSACTIONS<\/span><\/b><\/p>\n

\u00a0<\/p>\n

As part of the employment
\nagreement with its CEO, the Company provided a $1,000,000<\/span> signing bonus in 2012, which has not been paid and is recorded in accrued compensation
\non the condensed consolidated balance sheets, along with unpaid base salary of $1,625,000<\/span> in aggregate attributable for the period from
\n2012 through 2018. Any unpaid and accrued compensation due to the CEO under his employment agreement will accrue interest on the principal
\namount at a rate of 10%<\/span> per annum from the date of his employment agreement until it is paid. Even though the employment agreement expired
\nand has not been renewed, the Company has an obligation under the agreement to continue to accrue interest on the unpaid balance.<\/p>\n

\u00a0<\/p>\n

As of March 31, 2026 and
\nDecember 31, 2025, the Company had accrued $2,625,000<\/span><\/span> of compensation as accrued compensation and has balances of $1,431,031<\/span> and $1,366,305<\/span>,
\nrespectively, in accrued interest in current liabilities on its condensed consolidated balance sheets, related to the CEO\u2019s employment
\nagreement. Amounts owed under this arrangement are payable on demand.<\/p>\n

\u00a0<\/p>\n

The Company recorded interest
\nexpense related to the accrued compensation in the condensed consolidated statements of operations amounting to $64,726<\/span><\/span> for the three
\nmonths ended March 31, 2026 and 2025. During the three months ended March 31, 2026 and 2025, the Company did no<\/span><\/span>t make cash compensation
\nor interest payments in connection with the accrued compensation to the CEO.<\/p>\n

\u00a0<\/p>\n

On May 13, 2025, the Company
\nentered into a one-year consulting agreement with Hilarie Bass, a director, with an effective date of January 1, 2025, pursuant to which
\nMs. Bass will provide commercial litigation advice and litigation consulting services to the Company. As compensation for these services
\nthe Company will pay Ms. Bass $100,000 payable in four quarterly installments of $25,000 each. Payments in the amount of $25,000 each
\nwere made on May 15, 2025, July 10, 2025, November 1, 2025 and January 30, 2026 related to this consulting agreement with Ms. Bass. On
\nApril 29, 2026, the Company and Ms. Bass agreed to extend this agreement pursuant to its terms for a one-year period and it will renew
\nautomatically annually, unless one of the parties provides written notice on non-renewal prior to the end of the then-current period.<\/p>\n

\u00a0<\/p>\n

The Company entered into
\nseveral DE LLC Notes with an entity wholly owned by its CEO and into two Mock Notes with its CEO\u2019s brother. See Note 6 for further
\ndiscussion.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 10 \u2014 SEGMENT INFORMATION<\/span><\/b><\/p>\n

\u00a0<\/p>\n

The Company operates in two reportable
\nsegments, Entertainment Publicity and Marketing Segment (\u201cEPM\u201d) and Content Production Segment (\u201cCPD\u201d).<\/p>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u2022<\/span><\/td>\nThe 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. <\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u2022<\/span><\/td>\nThe 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.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

The Company\u2019s chief operating
\ndecision maker (\u201cCODM\u201d) is its CEO. The profitability measure employed by our CODM for allocating resources to operating segments
\nand assessing operating segment performance is adjusted operating income (loss) which is the loss from operations on the Company\u2019s
\ncondensed consolidated statements of operations adjusted for depreciation and amortization, impairment of goodwill, acquisition costs,
\nchange in fair value of contingent consideration, stock compensation, bad debt and write-off of notes receivable.<\/p>\n

\u00a0<\/p>\n

The following tables present
\nrevenue and significant expenses by segment that are regularly provided to the CODM. Other segment items that the CODM does not consider
\nin assessing segment performance are presented to reconcile to adjusted loss from operations.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of revenue and assets by segment<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Three Months Ended March 31, 2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nEPM<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCPD<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nTotal<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Segment revenue<\/td>\n\u00a0<\/td>\n$<\/td>\n12,348,245<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n455,692<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,803,937<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment expenses:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment direct costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n84,650<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n700,000<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n784,650<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment payroll and benefits<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,133,592<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n581,552<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,715,144<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment selling, general and administrative (1)<\/sup><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,587,384<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n309,986<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,897,370<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment legal and professional<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n599,124<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n257,014<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n856,138<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjusted income (loss) from operations<\/td>\n\u00a0<\/td>\n$<\/td>\n(56,505<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(1,392,860<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(1,449,365<\/span><\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Reconciliation to consolidated loss from operations:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Bad debt expense<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n149,791<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Depreciation and amortization<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n537,276<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Loss from operations<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,136,432<\/span><\/td>\n)<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

(1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Excludes bad debt expense<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Three Months Ended March 31, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nEPM<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCPD<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nTotal<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Segment revenue<\/td>\n\u00a0<\/td>\n$<\/td>\n12,077,678<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n92,033<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,169,711<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment expenses:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment direct costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n344,414<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n344,414<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment payroll and benefits<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9,898,421<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n405,812<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,304,233<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment selling, general and administrative (1)<\/sup><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,401,786<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n314,904<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,716,690<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Segment legal and professional<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n438,362<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n76,062<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n514,424<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjusted income (loss) from operations<\/td>\n\u00a0<\/td>\n$<\/td>\n(5,305<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(704,745<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(710,050<\/span><\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Reconciliation to consolidated loss from operations:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Bad debt expense<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n55,754<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Acquisition costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n416,171<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Depreciation and amortization<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n591,552<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Loss from operations<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(1,773,527<\/span><\/td>\n)<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n(1) <\/sup>Excludes bad debt expense<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0The CODM does not
\nreview assets on a segment basis. In connection with the acquisitions of its wholly owned subsidiaries, as of March 31, 2026 the Company
\nhad assigned $7,375,731<\/span> of intangible assets, net of accumulated amortization of $16,035,238<\/span>, and goodwill of $21,507,944<\/span>, net of impairments,
\nto the EPM segment.<\/p>\n

\u00a0<\/p>\n

During the three months
\nended March 31, 2026 and 2025, there were no triggering events noted that would require the Company to reassess goodwill impairment outside
\nof its regular annual impairment test.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 11 \u2014 LEASES<\/span><\/b><\/p>\n

\u00a0<\/p>\n

The Company and its subsidiaries
\nare party to various office leases with terms expiring at different dates through February 2032. The amortizable life of the right-of-use
\nasset is limited by the expected lease term. Although certain leases include options to extend, the Company did not include these in
\nthe right-of-use asset or lease liability calculations because it is not reasonably certain that the options will be executed.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0Schedule of right of use asset or lease liability calculations<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\nMarch 31<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nDecember 31,<\/td>\n\u00a0<\/td>\n<\/tr>\n
Operating Leases<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n<\/tr>\n
Assets<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Right-of-use assets<\/td>\n\u00a0<\/td>\n$<\/td>\n2,514,871<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,884,619<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Liabilities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities<\/td>\n\u00a0<\/td>\n$<\/td>\n1,602,093<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,829,814<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Noncurrent<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities<\/td>\n\u00a0<\/td>\n$<\/td>\n1,219,376<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,421,061<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total lease liabilities<\/td>\n\u00a0<\/td>\n$<\/td>\n2,821,469<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,250,875<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of finance lease<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 31<\/b><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0December 31<\/b>,<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Finance Leases<\/b><\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/b><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/b><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Assets<\/b><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Right-of-use assets<\/span><\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n115,408<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n128,322<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Liabilities<\/b><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities<\/span><\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n69,271<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n82,668<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Noncurrent<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease liabilities<\/span><\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n51,652<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n48,325<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total lease liabilities<\/span><\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n120,923<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/span><\/td>\n130,993<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

The tables below show the
\nlease income and expenses recorded in the condensed consolidated statements of operations incurred during the three months ended March
\n31, 2026 and 2025 for operating and financing leases, respectively.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Schedule of lease income and expenses<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\nThree Months Ended March 31,<\/td>\n\u00a0<\/td>\n<\/tr>\n
Lease costs<\/td>\nClassification<\/td>\n2026<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n<\/tr>\n
Operating lease costs<\/td>\nSelling, general and administrative expenses<\/td>\n$<\/td>\n530,384<\/span><\/td>\n\u00a0<\/td>\n$<\/td>\n549,399<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Sublease income<\/td>\nSelling, general and administrative expenses<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(12,665<\/span><\/td>\n)<\/td>\n<\/tr>\n
Net operating lease costs<\/td>\n\u00a0<\/td>\n$<\/td>\n530,384<\/span><\/td>\n\u00a0<\/td>\n$<\/td>\n536,734<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nThree Months Ended March 31,<\/b><\/span><\/td>\n<\/tr>\n
Lease costs<\/td>\nClassification<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n<\/tr>\n
Amortization of right-of-use assets<\/td>\nSelling, general and administrative expenses<\/td>\n$<\/td>\n28,393<\/span><\/td>\n\u00a0<\/td>\n$<\/td>\n21,419<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest on lease liability<\/td>\nSelling, general and administrative expenses<\/td>\n\u00a0<\/td>\n2,197<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,803<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
Total finance lease costs<\/td>\n\u00a0<\/td>\n$<\/td>\n30,589<\/span><\/td>\n\u00a0<\/td>\n$<\/td>\n24,222<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Lease Payments<\/b><\/p>\n

\u00a0<\/p>\n

For the three months
\nended March 31, 2026 and 2025, the Company made payments in cash related to its operating leases in the amounts of $641,863<\/span> and $552,571<\/span>,
\nrespectively.<\/p>\n

\u00a0<\/p>\n

Future minimum lease payments for leases for the remainder of
\n2026 and thereafter, were as follows:<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nSchedule of future minimum payments under operating lease agreements<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Year<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nOperating
\n Leases<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFinance
\n Leases<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,510,946<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n62,637<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2027<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n961,086<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n45,664<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2028<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n163,210<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n19,939<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2029<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n159,255<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n256<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n2030<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n160,925<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nThereafter<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n192,126<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nTotal\t<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,147,548<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n128,496<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nLess: Imputed interest<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(326,079<\/span><\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(7,573<\/span><\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\nPresent value of lease liabilities<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,821,469<\/span><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n120,923<\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

As of March 31,
\n2026, the Company\u2019s weighted average remaining lease term on its operating and finance leases is 3.74<\/span> years and 1.88<\/span> years, respectively,
\nand the Company\u2019s weighted average discount rate is 8.76%<\/span> and 7.45%<\/span> related to its operating and finance leases, respectively.<\/p>\n<\/p>\n

\u00a0<\/p>\n<\/p>\n

<\/p>\n

\n\n\n
\n

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES<\/b>\u00a0<\/p>\n

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/p>\n

(Unaudited)<\/b><\/p>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\u00a0<\/p>\n<\/p>\n

NOTE 12\u2014 COMMITMENTS AND CONTINGENCIES<\/span><\/b><\/p>\n

\u00a0<\/p>\n

Litigation<\/span><\/p>\n

\u00a0<\/p>\n

On June 21, 2024, the
\nCompany filed a complaint in Los Angeles County Superior Court against NSL Ventures (\u201cNSL\u201d) the Socialyte seller, and its
\nprincipals alleging that the defendants breached the Socialyte Purchase Agreement and committed acts of fraud and negligence in connection
\nwith that transaction, and that the Company is entitled to monetary damages caused by those acts. On September 16, 2024, Defendants answered
\nthe Complaint with a general denial and affirmative defenses. Also on September 16, 2024, defendant NSL also filed a Cross-complaint
\nagainst the Company and Social Midco, LLC, alleging a single cause of action for breach of contract. The Company and Social Midco answered
\nthe Cross-complaint on October 1, 2024. As the case has progressed, the court appointed an independent accountant
\nto adjudicate certain accounting issues relevant to the case. That independent accountant\u2019s work is ongoing. In April 2026, the
\nCourt rejected Defendants\u2019 attempt to dismiss the Company\u2019s claims. Trial in the matter is scheduled for April 2027. Due to
\nthe stage of the proceedings an estimate of any possible loss or range of loss cannot be made at this time.<\/p>\n

\u00a0<\/p>\n

The Company may be subject
\nto legal proceedings, claims, and liabilities that arise in the ordinary course of business. In the opinion of management and based upon
\nthe advice of its outside counsels, the liability, if any, from any pending litigation is not expected to have a material effect in the
\nCompany\u2019s financial position, results of operations and cash flows.<\/p>\n<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/b><\/p>\n

ITEM 2. MANAGEMENT\u2019S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
\nAND RESULTS OF OPERATIONS<\/b><\/p>\n

\u00a0<\/p>\n

You should read the following
\nmanagement\u2019s discussion and analysis together with our unaudited condensed consolidated financial statements and related notes included
\nunder Part I, Item 1 of this Quarterly Report on Form 10-Q, together with the audited consolidated financial statements, the accompanying
\nnotes, \u201cRisk Factors\u201d and \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of Operations\u201d
\nincluded in our Annual Report on Form 10-K. This discussion contains forward-looking statements based upon current plans, expectations
\nand beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking
\nstatements as a result of various factors, including those set forth in the \u201cRisk Factors\u201d section of our Annual Report on
\nForm 10-K and other factors set forth in other parts of this Quarterly Report on Form 10-Q and our filings with the SEC.<\/i><\/p>\n

\u00a0<\/p>\n

Overview<\/b><\/p>\n

\u00a0<\/p>\n

We are a leading independent
\nentertainment marketing and production company. We were first incorporated in the State of Nevada on March 7, 1995 and domesticated in
\nthe State of Florida on December 4, 2014. Our common stock trades on The Nasdaq Capital Market under the symbol \u201cDLPN.\u201d<\/p>\n

\u00a0<\/p>\n

Through our subsidiaries, 42West
\nLLC (\u201c42West\u201d), The Door Marketing Group LLC (\u201cThe Door\u201d), Shore Fire Media, Ltd (\u201cShore Fire\u201d), Elle
\nCommunications, LLC (\u201cElle\u201d), The Digital Dept, LLC (\u201cThe Digital Dept.\u201d) and Special Projects Media, LLC (\u201cSpecial
\nProjects\u201d) we provide expert strategic marketing and publicity services to many of the top brands, both individual and corporate,
\nin the motion picture, television, music, gaming, culinary, hospitality, lifestyle and charitable industries. 42West (Film and Television,
\nGaming), Shore Fire (Music), The Door (Culinary, Hospitality, Lifestyle) and Elle (Impact, Philanthropy, Non-Profit) are each recognized
\nglobal public relations and marketing leaders for the industries they serve. As a group, they were recognized as the #1 PR firm in the
\ncountry in the prestigious Observer rankings in 2025. The Digital Dept. provides influencer marketing capabilities through divisions dedicated
\nto influencer talent management, brand campaign strategy and execution, and influencer event ideation and production. Dolphin\u2019s
\nlegacy content production business, Dolphin Films, founded by our Emmy-nominated Chief Executive Officer, Bill O\u2019Dowd, has produced
\nmultiple feature films and award-winning digital series, primarily aimed at family and young adult markets.<\/p>\n

\u00a0\u00a0<\/p>\n

We have established an acquisition
\nstrategy based on identifying and acquiring companies that complement our existing entertainment publicity and marketing services and
\ncontent production businesses. We believe that complementary businesses can create synergistic opportunities and bolster profits and cash
\nflow. While we may acquire additional companies in the future, we are not in active negotiations with any such companies, and there is
\nno assurance that we will be successful in acquiring any additional companies, whether in 2026 or at all.<\/p>\n

\u00a0<\/p>\n

We have also established an investment
\nstrategy, \u201cVentures\u201d or \u201cDolphin 2.0,\u201d based upon identifying opportunities to develop internally owned assets,
\nor acquire ownership stakes in others\u2019 assets, in the categories of entertainment content, live events and consumer products. We
\nbelieve these categories represent the types of assets wherein our expertise and relationships in entertainment marketing most influences
\nthe likelihood of success. We are in various stages of internal development and outside conversations on a wide range of opportunities
\nwithin these Ventures. We intend to enter into Venture investments during 2026, but there is no assurance that we will be successful in
\ndoing so, whether in 2026 or at all.<\/p>\n

\u00a0<\/p>\n

HOW WE ASSESS THE PERFORMANCE OF OUR BUSINESS<\/b><\/p>\n

\u00a0<\/p>\n

In assessing the performance
\nof our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating
\nperformance of our business are revenues, direct costs, payroll and benefits, selling, general and administrative expenses, legal and
\nprofessional expenses, other income\/expense and net income. Other income\/expense consists mainly of interest expense, interest income
\nand non-cash changes in fair value of liabilities,<\/p>\n

\u00a0<\/p>\n

We operate in two reportable
\nsegments: our entertainment publicity and marketing segment and our content production segment. The entertainment publicity and marketing
\nsegment is composed of 42West, The Door, Shore Fire, The Digital Dept., Special Projects, and Elle, and provides clients with diversified
\nservices, including public relations, entertainment content marketing, strategic communications, influencer marketing, celebrity booking
\nand live event production. The content production segment is composed of Dolphin Films and Dolphin Digital Studios, which produce and
\ndistribute feature films and digital content.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

Entertainment Publicity and Marketing (\u201cEPM\u201d)<\/b><\/p>\n

\u00a0<\/p>\n

Our revenue is directly
\nimpacted by the retention and spending levels of existing clients and by our ability to win new clients. We believe that we have a stable
\nclient base, and we have continued to grow organically through referrals and by actively soliciting new business. We earn revenues primarily
\nfrom the following sources: (i) celebrity talent services; (ii) content marketing services under multiyear master service agreements in
\nexchange for fixed project-based fees; (iii) individual engagements for entertainment content marketing services for durations of generally
\nbetween three and six months; (iv) strategic communications services; (v) engagements for marketing of special events such as food and
\nwine festivals; (vi) engagement for marketing of brands; (vii) arranging strategic marketing agreements between brands and social media
\ninfluencers or celebrities and (viii) curating and booking celebrities for live events. For these revenue streams, we collect fees through
\neither fixed fee monthly retainer agreements, fees based on a percentage of contracts or project-based fees.<\/p>\n

\u00a0<\/p>\n

We earn entertainment publicity and marketing revenues primarily
\nthrough the following:<\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Talent<\/span> \u2013 We earn fees from creating and implementing strategic communication campaigns for performers and entertainers,
\nincluding Oscar, Tony and Emmy winning film, theater and television stars, directors, producers, celebrity chefs and Grammy winning
\nrecording artists. Our services in this area include ongoing strategic counsel, media relations, studio and\/or network liaison work,
\nand event and tour support. We believe that the proliferation of content, both traditional and on social media, will lead to an
\nincreasing number of individuals seeking such services, which will drive growth and revenue in our Talent departments for several
\nyears to come.<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span> Entertainment
\nMarketing and Brand Strategy<\/span> \u2013 We earn fees from providing marketing direction, public relations counsel and media
\nstrategy for entertainment content (including theatrical films, television programs, DVD and VOD releases, and online series) from
\nvirtually all the major studios and streaming services, as well as content producers ranging from individual filmmakers and creative
\nartists to production companies, film financiers, DVD distributors, and other entities. In addition, we provide entertainment
\nmarketing services in connection with film festivals, food and wine festivals, awards campaigns, event publicity and red-carpet
\nmanagement. As part of our services, we offer marketing and publicity services tailored to reach diverse audiences. We also provide
\nmarketing direction targeted to the ideal consumer through a creative public relations and creative brand strategy for hotel and
\nrestaurant groups.<\/span><\/p>\n

\u00a0<\/p>\n

<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Strategic
\nCommunications<\/span> \u2013 We earn fees by advising companies looking to create, raise or reposition their public profiles,
\nprimarily in the entertainment industry. We also help studios and filmmakers deal with controversial movies, as well as high-profile
\nindividuals address sensitive situations. We believe that growth in the Strategic Communications division will be driven by
\nincreasing demand for these varied services by traditional and non-traditional media clients who are expanding their activities in
\nthe content production, branding, and consumer products PR sectors.<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\n<\/span>Digital Media Influencer Marketing Campaigns<\/span> \u2013 We arrange strategic marketing agreements
\nbetween brands and social media influencers, for both organic and paid campaigns. We also offer services for social media activations
\nat events. Our services extend beyond our own captive influencer network, and we manage custom campaigns targeting specific demographics
\nand locations, from ideation to delivery of results reports. We expect that our relationship with social media influencers will provide
\nus the ability to offer these services to our existing clients in the entertainment and consumer products industries and will be accretive
\nto our revenue.<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\n<\/span>Celebrity Booking and Live Event Programming<\/span> \u2013 We arrange for brands and events to
\nbook celebrity and influencer talent. Our services include the creation of the strategy to elevate the brand or event through celebrity
\nand\/or influencer inclusion, to the booking of celebrities and influencers for commercial endorsements or appearances, to the curation
\nof event lists and securing attendance, to the coordination and production of live events. We believe the expansion of brands seeking
\ncelebrity and\/or influencer endorsements, as well as celebrity and\/or influencers to attend brand-sponsored live events, will drive growth
\nand revenue for the next several years.<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/b><\/p>\n

Content Production (\u201cCPD\u201d)<\/b><\/p>\n

\u00a0<\/p>\n

Project Development and Related Services<\/i><\/b><\/p>\n

\u00a0<\/p>\n

We have a team that dedicates
\na portion of its time to identifying scripts, story treatments and novels for acquisition, development and production. The scripts can
\nbe for either digital, television or motion picture productions. We have acquired the rights to certain scripts that we intend to produce
\nand release in the future, subject to obtaining financing. We have not yet determined if these projects would be produced for digital,
\ntelevision or theatrical distribution.<\/p>\n

\u00a0<\/p>\n

We have completed development
\nof several feature films, which means that we have completed the script and can begin pre-production once financing is obtained. We are
\nplanning to fund these projects through third-party financing arrangements, domestic distribution advances, pre-sales, and location-based
\ntax credits, and if necessary, sales of our common stock, securities convertible into our common stock, debt securities or a combination
\nof such financing alternatives; however, there is no assurance that we will be able to obtain the financing necessary to produce any of
\nthese feature films.<\/p>\n

\u00a0<\/p>\n

During the three months ended March 31, 2026,
\nwe entered into an agreement with YB Aircraft Productions Inc. (\u201cYB\u201d) to acquire the licensing rights to distribute Youngblood
\nmovie worldwide, with the exception of Canada, and agreed to pay YB a guaranteed, non-refundable advance of $700,000, payable in two equal
\ninstallments of $350,000 each, on August 31, 2026 and February 28, 2027. The $700,000 advance to YB was recorded in direct costs in our
\ncondensed consolidated statement of operations for the three months ended March 31, 2026. We also entered into a distribution agreement
\nwith Well Go USA, Inc. (\u201cWell Go\u201d) to distribute the film across all media in the United States. The agreement provides for
\na $450,000 guaranteed, non-refundable advance against the revenues from distribution of Youngblood upon delivery of the film to Well Go.
\nThe film was released in theaters on March 6, 2026 and the Company recorded revenues of $450,000 from the minimum guaranteed advance for
\nthe three months ended March 31, 2026.<\/p>\n

\u00a0\u00a0<\/p>\n

Revenues<\/b><\/p>\n

\u00a0<\/p>\n

For the three months ended
\nMarch 31, 2026 and 2025, we derived a majority of our revenues from our entertainment publicity and marketing segment. During the three
\nmonths ended March 31, 2026, we generated income in our content production segment related to Youngblood.<\/p>\n

\u00a0<\/p>\n

The table below sets forth the percentage of total revenue derived
\nfrom our segments for the three months ended March 31, 2026 and 2025:<\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\nThree Months Ended March 31,<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n<\/tr>\n
Revenues:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Entertainment publicity and marketing\t<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n96.4<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n99.2<\/td>\n%<\/td>\n<\/tr>\n
Content production\t<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.6<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.8<\/td>\n%<\/td>\n<\/tr>\n
Total revenue\t<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100<\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Expenses<\/b><\/p>\n

Our expenses consist primarily of:<\/p>\n

\u00a0<\/p>\n\n\n
(1)<\/span><\/td>\n\nDirect costs \u2013 include certain costs of services, as
\nwell as certain production costs, related to our entertainment publicity and marketing business. Direct costs also includes the minimum
\nguarantee of $700,000 that we agreed to pay YB for the distribution rights of Youngblood as discussed above.<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
(2)<\/span><\/td>\n\nPayroll and benefits expenses \u2013 includes wages, stock-based
\ncompensation, payroll taxes and employee benefits.<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
(3)<\/span><\/td>\n\nSelling, general and administrative expenses \u2013 includes
\nall overhead costs except for payroll, depreciation and amortization and legal and professional fees that are reported as a separate
\nexpense item.<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
(4)<\/span><\/td>\n\nAcquisition costs \u2013 includes agreed upon payment to the
\nsellers of Special Projects for the three months ended March 31, 2025.<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
(5)<\/span><\/td>\n\nDepreciation and amortization \u2013 includes the depreciation
\nof our property and equipment and amortization of intangible assets and leasehold improvements.<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
(6)<\/span><\/td>\n\nLegal and professional fees \u2013 includes fees paid to our
\nattorneys, fees for investor relations consultants, audit and accounting fees and fees for general business consultants.<\/span><\/td>\n<\/tr>\n<\/table>\n

Other Income and Expenses<\/b><\/p>\n

\u00a0<\/p>\n

For the three months ended
\nMarch 31, 2026 and 2025, other income and expenses consisted primarily of: (1) changes in fair value of convertible notes and (2) interest
\nexpense, net.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

RESULTS OF OPERATIONS<\/b><\/p>\n

\u00a0<\/p>\n

Three months ended March 31, 2026 as compared to three months ended
\nMarch 31, 2025<\/span><\/i><\/p>\n

\u00a0<\/p>\n

Revenues<\/b><\/p>\n

\u00a0<\/p>\n

For the three months ended March 31, 2026 and 2025 revenues were
\nas follows:<\/p>\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFor
\n the Three Months Ended March 31,<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Revenues:<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Entertainment publicity and marketing<\/td>\n\u00a0<\/td>\n$<\/td>\n12,348,245<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,077,678<\/td>\n\u00a0<\/td>\n<\/tr>\n
Content production<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n455,692<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n92,033<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Revenues<\/td>\n\u00a0<\/td>\n$<\/td>\n12,803,937<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,169,711<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Revenues from entertainment
\npublicity and marketing increased by approximately $0.3 million for the three months ended March 31, 2026, respectively, as compared to
\nthe same period in the prior year. The increase for the three months ended March 31, 2026, in revenue is attributed to organic growth
\nacross substantially all of our subsidiaries.<\/p>\n

\u00a0<\/p>\n

Revenues from content production
\nincreased by approximately $0.4 million during the three months ended March 31, 2026, compared to the same period in the prior year. The
\nincrease was related to revenue from the distribution of Youngblood which was released in theaters on March 6, 2026. During the three
\nmonths ended March 31, 2025, we recognized $0.1 million from the Believe film released in 2013.<\/p>\n

\u00a0<\/p>\n

Expenses<\/b><\/p>\n

\u00a0<\/p>\n

For the three months ended March 31, 2026 and 2025, our expenses
\nwere as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFor
\n Three Months Ended March 31,<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Expenses:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Direct costs<\/td>\n\u00a0<\/td>\n$<\/td>\n784,650<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n344,414<\/td>\n\u00a0<\/td>\n<\/tr>\n
Payroll and benefits<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,715,144<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10,304,233<\/td>\n\u00a0<\/td>\n<\/tr>\n
Selling, general and administrative<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,047,161<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,772,444<\/td>\n\u00a0<\/td>\n<\/tr>\n
Acquisition costs<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n416,171<\/td>\n\u00a0<\/td>\n<\/tr>\n
Depreciation and amortization<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n537,276<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n591,552<\/td>\n\u00a0<\/td>\n<\/tr>\n
Legal and professional<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n856,138<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n514,424<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total expenses\t<\/td>\n\u00a0<\/td>\n$<\/td>\n14,940,369<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n13,943,238<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Direct costs increased \u00a0by
\napproximately $0.4 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase
\nin direct costs for the three months ended March 31, 2026 is primarily attributable to a minimum guaranteed payment of $0.7 million to
\nYB for the practically worldwide (excluding Canada) distribution rights of Youngblood, which was released in theatres on March 6, 2026,
\noffset by a decrease in production costs of events in our EPM segment of approximately $0.3 million.<\/p>\n

\u00a0<\/p>\n

Payroll and benefits
\nexpenses increased by approximately $0.4 million for the three months ended March 31, 2026 as compared to the three months ended March
\n31, 2025, primarily due to $0.8 million increase in workforce and employee cost of living pay increases. This increase was offset by the
\nexclusion of $0.4 million of Always Alpha payroll and benefits. Always Alpha was sold in November 2025.<\/p>\n

\u00a0<\/p>\n

Selling, general and administrative
\nexpenses increased by approximately $0.3 million, for the three months ended March 31, 2026 as compared to the three months ended March
\n31, 2025. The increase is mainly due to $0.1 increase in bad debt expense and $0.1 million increase in dues and subscriptions and computer
\nexpense.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

Acquisition costs for the
\nthree months ended March 31, 2025 were $0.4 million, related to an agreed upon payment with the sellers of Special Projects related to
\nthe working capital adjustment. There was no acquisition costs recorded for the three months ended March 31, 2026.<\/p>\n

\u00a0<\/p>\n

Depreciation and
\namortization remained consistent for the three months ended March 31, 2026 as compared to the three ended March 31, 2025.<\/p>\n

\u00a0<\/p>\n

Legal and professional fees
\nincreased by $0.3 million for the three months ended March 31, 2026, as compared to same period of the prior year. The increase is primarily
\ndue to the litigation with the sellers of Socialyte. Refer to Note 12 to the condensed consolidated financial statements elsewhere on
\nthis Quarterly Report on Form 10-Q for additional information.<\/p>\n

\u00a0<\/p>\n

Other Expenses<\/b><\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nThree
\n Months Ended March 31<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Other (expense) and income:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Change in fair value of convertible note<\/td>\n\u00a0<\/td>\n$<\/td>\n10,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n20,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest expense, net\t<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(547,950<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(554,013<\/td>\n)<\/td>\n<\/tr>\n
Total\t<\/td>\n\u00a0<\/td>\n$<\/td>\n(537,950<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(534,013<\/td>\n)<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Change in fair value
\nof convertible notes <\/i>\u2013 We elected the fair value option for one convertible note payable issued in 2020. The fair value of this
\nconvertible note payable is remeasured at every balance sheet date and any changes are recorded on our condensed consolidated statements
\nof operations. For the three months ended March 31, 2026 and 2025, we recorded a gain in the change in fair value of the convertible note
\npayable issued in 2020 in the amount of $10.0 thousand and $20.0 thousand, respectively. None of the decrease in the value of the convertible
\nnote was attributable to instrument specific credit risk and as such, all the gain or loss in the change in fair value was recorded within
\nnet loss.<\/p>\n

\u00a0<\/p>\n

Interest expense, net
\n<\/i>\u2013 Interest expense, net remained consistent for the three months ended March 31, 2026 and 2025.<\/p>\n

\u00a0<\/p>\n

Income Taxes<\/b><\/p>\n

\u00a0<\/p>\n

We recorded an income tax
\nexpense of approximately $17.7 thousand for the three months ended March 31, 2026, respectively, and approximately $21.5 thousand for
\nthe three months ended March 31, 2025, respectively, which reflects the accrual of a valuation allowance in connection with the limitations
\nof our indefinite lived tax assets to offset our indefinite lived tax liabilities. To the extent the tax assets are unable to offset the
\ntax liabilities, we have recorded a deferred expense for the tax liability (a \u201cnaked credit\u201d).<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/b><\/p>\n

Net Loss<\/b><\/p>\n

\u00a0<\/p>\n

Net loss was approximately
\n$2.7 million or $(0.22) per share based on 12,327,974 weighted average shares outstanding for both basic loss per share and fully diluted
\nloss per share, for the three months ended March 31, 2026. Net loss was approximately $2.3 million or $(0.21) per share based on 11,162,026
\nweighted average shares outstanding for both basic loss per share and fully diluted loss per share, for the three months ended March 31,
\n2025. The change in net loss for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, is related
\nto the factors discussed above.<\/p>\n

\u00a0<\/p>\n

LIQUIDITY AND CAPITAL RESOURCES<\/b><\/p>\n

\u00a0<\/b><\/p>\n

Cash Flows<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nThree
\n Months Ended March 31,<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Statement of Cash Flows Data:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net cash used in operating activities<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,041,711<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(1,703,425<\/td>\n)<\/td>\n<\/tr>\n
Net cash used in investing activities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,850<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,088<\/td>\n)<\/td>\n<\/tr>\n
Net cash (used in) provided by financing activities<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(429,167<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n585,931<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net decrease in cash and cash equivalents and restricted cash<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,472,728<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,118,582<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents and restricted cash, beginning of period<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9,681,589<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9,128,846<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents and restricted cash, end of period<\/td>\n\u00a0<\/td>\n$<\/td>\n7,208,861<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,010,264<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

Operating Activities<\/i><\/b><\/p>\n

\u00a0<\/p>\n

Cash used in operating activities
\nwas $2.0 million for the three months ended March 31, 2026, a change of $0.3 million from cash used in operating activities of $1.7 million
\nfor three months ended March 31, 2025. The increase in cash used in operating activities was primarily a result of a $0.4 million increase
\nin net loss for the period, and the net change in working capital.<\/p>\n

\u00a0<\/p>\n

Investing Activities<\/i><\/b><\/p>\n

\u00a0<\/p>\n

Cash flows used
\nin investing activities for the three months ended March 31, 2026 and 2025 were inconsequential.<\/p>\n

\u00a0<\/p>\n

Financing Activities<\/i><\/b><\/p>\n

\u00a0<\/p>\n

Cash flows used in financing activities for the three months ended
\nMarch 31, 2026 were $0.4 million, which mainly related to:<\/p>\n

\u00a0<\/p>\n

Inflows:<\/p>\n

\u00a0<\/p>\n\n\n
\u00b7<\/span><\/td>\n\n$50.0 thousand of proceeds from convertible notes payable.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Outflows:<\/p>\n

\u00a0<\/p>\n\n\n
\u00b7<\/span><\/td>\n\n$0.4 million of repayment of existing term loan and;<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
\u00b7<\/span><\/td>\n\n$31.0 thousand of repayment of finance leases.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

Cash flows provided by financing activities for the three months ended
\nMarch 31, 2025 were $0.6 million which mainly related to:<\/p>\n

\u00a0<\/p>\n

Inflows:<\/p>\n

\u00a0<\/p>\n\n\n
\u00b7<\/span><\/td>\n\n$0.8 million of proceeds from convertible notes payable and;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00b7<\/span><\/td>\n\n$0.3 million of proceeds from nonconvertible notes payable.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Outflows:<\/p>\n

\u00a0<\/p>\n\n\n
\u00b7<\/span><\/td>\n\n$0.4 million of repayment of existing term loan and;<\/span><\/td>\n<\/tr>\n<\/table>\n\n\n
\u00b7<\/span><\/td>\n\n$21.0 thousand of repayment of finance leases.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

Debt and Financing Arrangements<\/b><\/p>\n

\u00a0<\/p>\n

Total debt amounted to
\n$23.8 million as of March 31, 2026, compared to $24.5 million as of December 31, 2025, a decrease of $0.7 million, primarily related
\nto the conversion of three convertible notes and the repayment of the term loan.<\/p>\n

\u00a0<\/p>\n

Our debt obligations in
\nthe next twelve months from March 31, 2026 increased to $7.3 million from $7.0 million in December 31, 2025, mainly related to an increase
\nin the current portion of the Bank United Credit Facility (defined below in \u201cBankUnited Loan Agreements \u2013 Refinancing Transaction\u201d)
\nin the amount of $40.0 thousand and a net increase in the current portion of convertible and nonconvertible notes payable in the amount
\nof $0.3 million. We expect our current cash position, cash expected to be generated from our operations and other availability of funds,
\nas detailed below, to be sufficient to meet our debt requirements.<\/p>\n

\u00a0<\/p>\n

2025 Lincoln Park Transaction<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

On August 12, 2025, we entered
\ninto a purchase agreement (the \u201c2025 LP Purchase Agreement\u201d) with Lincoln Park Capital Fund, LLC (\u201cLincoln Park\u201d
\nor \u201cInvestor\u201d), which provides that, upon the terms and subject to the conditions and limitations set forth therein, we may
\nsell to Lincoln Park up to $15,000,000 of shares (the \u201cPurchase Shares\u201d) of our common stock, par value $0.015 per share,
\nover the thirty-six (36) month term of the 2025 LP Purchase Agreement. Concurrently with entering into the 2025 LP Purchase Agreement
\nwe also entered into a registration rights agreement with Lincoln Park, pursuant to which we agreed to provide Lincoln Park with certain
\nregistration rights related to the shares issued under the 2025 LP Purchase Agreement (the \u201c2025 LP Registration Rights Agreement\u201d).
\nOn October 3, 2025, we filed a new Registration Statement on Form S-1 (the \u201cRegistration Statement\u201d with the Securities Exchange
\nCommission (the \u201cSEC\u201d) covering the resale of our common stock in accordance with the terms of the 2025 LP Registration Rights
\nAgreement. The registration statement became effective on December 1, 2025.<\/p>\n

\u00a0<\/p>\n

For the three months ended March
\n31, 2026, we did not sell any shares of common stock to Lincoln Park under the 2025 LP Purchase Agreement.<\/p>\n

\u00a0<\/i><\/b><\/p>\n

Convertible Notes Payable<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

During the three months
\nended March 31, 2026 and 2025 we issued one and six convertible notes payable and received proceeds of $50,000 and $775,000, respectively.
\nAs of March 31, 2026, we had twenty-nine convertible notes payable outstanding. The convertible notes payable bear interest at a rate
\nof 10% per annum, with initial maturity dates ranging between the second anniversary and the sixth anniversary of their respective issuances.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

The balance of each convertible
\nnotes payable and any accrued interest may be converted at the noteholder\u2019s option at any time at the following conversion prices:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Aggregate
\n Convertible Notes balance<\/span><\/td>\n		\u00a0<\/span><\/td>\nConversion Price<\/span><\/td>\nFloor\/Conversion
\n Price<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
$<\/td>\n2,700,000<\/td>\n\u00a0<\/td>\n90-day average closing market price of our common stock<\/td>\n$<\/td>\n5.00<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n900,000<\/td>\n\u00a0<\/td>\n90-day average closing market price of our common stock<\/td>\n$<\/td>\n4.00<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\n30-day average closing market price of our common stock<\/td>\n$<\/td>\n1.01<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n325,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.11<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.02<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.01<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n1,650,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.07<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n125,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.03<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n500,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.00<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.16<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n200,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.04<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n350,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.28<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.32<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.67<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n50,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.60<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\nFixed conversion price<\/td>\n$<\/td>\n1.25<\/td>\n\u00a0<\/td>\n<\/tr>\n
$<\/td>\n7,450,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

As of March 31, 2026 the
\nprincipal balance of $1,550,000 and $5,900,000 related to the convertible notes payable was recorded in current and noncurrent liabilities,
\nrespectively, on its condensed consolidated balance sheet under the caption convertible notes payable. As of December 31, 2025 the principal
\nbalance of $1,250,000 and $6,460,000 related to the convertible notes payable was recorded in current and noncurrent liabilities, respectively,
\non its condensed consolidated balance sheet under the caption convertible notes payable.<\/p>\n

\u00a0<\/p>\n

On January 26, 2026, March
\n9, 2026 and March 18, 2026, three holders of three convertible notes payable with an aggregate principal balance of $310,000 converted
\nthe full principal amount of each of the convertible promissory notes payable into an aggregate of 291,672 shares of our common stock,
\npursuant to the provisions of their respective convertible notes payable. On January 8, 2026, we issued a convertible note payable in
\nthe amount of $50,000 and received proceeds of $50,000. The note bears interest at a rate of 10% per annum, may be converted at a price
\nof $1.60 per share and matures on the fourth anniversary of its issuance date. On May 1, 2026, the holder of two convertible promissory
\nnotes converted the aggregate principal balance of $500,000 and accrued interest of $4,167 into 504,167 shares of our common stock pursuant
\nto the convertible notes payable.\u00a0<\/p>\n

\u00a0<\/p>\n

We recorded interest expense
\nrelated to these convertible notes payable of $191,136 and $136,000 during the three months ended March 31, 2026 and 2025, respectively.
\nIn addition, we made cash interest payments amounting to $192,528 and $129,556, respectively, during the three months ended March 31,
\n2026 and 2025, related to the convertible notes payable.<\/p>\n

\u00a0<\/p>\n

Convertible Note Payable at Fair Value<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

We had one convertible promissory
\nnote outstanding with aggregate principal amount of $500,000 as of March 31, 2026 for which it elected the fair value option. As such,
\nthe estimated fair value of the note was recorded on its issue date. At each balance sheet date, we record the fair value of the convertible
\npromissory note with any changes in the fair value recorded in the condensed consolidated statements of operations.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

We had a balance of $260,000
\nand $270,000 in noncurrent liabilities as of March 31, 2026, and December 31, 2025, respectively, on our condensed consolidated balance
\nsheets related to the convertible promissory note payable measured at fair value.<\/p>\n

\u00a0<\/p>\n

We recorded a gain in fair
\nvalue of $10,000 and $20,000 for the three months ended March 31, 2026 and 2025, respectively, on our condensed consolidated statements
\nof operations related to this convertible promissory note at fair value.<\/p>\n

\u00a0<\/p>\n

We recorded interest expense
\nrelated to this convertible note payable at fair value of $9,863 for both the three months ended March 31, 2026 and 2025. In addition,
\nwe made cash interest payments amounting to $9,863 for both the three months ended March 31, 2026 and 2025, related to the convertible
\nnote payable at fair value.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/i><\/b><\/p>\n

Nonconvertible Promissory Notes<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

During the three months
\nended March 31, 2025, we issued a nonconvertible promissory note and received proceeds $250,000. We did not issue new nonconvertible promissory
\nnotes during the three months ended March 31, 2026. As of March 31, 2026, we had eleven outstanding unsecured nonconvertible promissory
\nnotes in the aggregate amount of $5,080,000, which bear interest at a rate of 10% per annum and mature between November 2026 and October
\n2030.<\/p>\n

\u00a0<\/p>\n

As of both March 31, 2026
\nand December 31, 2025, we had a balance of $500,000, recorded as current liabilities and $4,580,000 in noncurrent liabilities on our condensed
\nconsolidated balance sheets related to these unsecured nonconvertible promissory notes.<\/p>\n

\u00a0<\/p>\n

We recorded interest expense
\nrelated to these nonconvertible promissory notes of $127,000 and $99,083 for the three months ended March 31, 2026 and 2025, respectively.
\nWe made interest payments of $125,778 and $97,000 for the three months ended March 31, 2026 and 2025, respectively, related to the nonconvertible
\npromissory notes.<\/p>\n

\u00a0\u00a0<\/p>\n

Nonconvertible Unsecured Promissory Note – Socialyte Promissory Note<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

In connection with the purchase
\nagreement for the acquisition of Socialyte (\u201cSocialyte Purchase Agreement\u201d), we entered into a promissory note with the sellers
\nof Socialyte (\u201cthe Socialyte Promissory Note\u201d) amounting to $3,000,000. The Socialyte Promissory Note matured on September
\n30, 2023 and was payable in two payments: $1,500,000 on June 30, 2023 and $1,500,000 on September 30, 2023. The Socialyte Promissory Note
\ncarries an interest of 4% per annum, which accrues monthly, and all accrued interest was to be due and payable on September 30, 2023.<\/p>\n

\u00a0<\/p>\n

The Socialyte Purchase Agreement
\nallows us to offset a working capital deficit against the Socialyte Promissory Note. As such, we deferred these installment payments until
\nthe final post-closing working capital adjustment is agreed upon with the seller of Socialyte. We filed a lawsuit against the seller of
\nSocialyte and certain of its principals related to the Socialyte Purchase Agreement. See Note 12 to the unaudited condensed consolidated
\nfinancial statements included elsewhere in this Quarterly Report on Form 10-Q.<\/p>\n

\u00a0<\/p>\n

We recorded interest expense
\nrelated to this Socialyte Promissory Note of $30,000 for the three months ended March 31, 2026 and 2025, respectively. No interest payments
\nwere made during the three months ended March 31, 2026 and 2025, related to the Socialyte Promissory Note.<\/p>\n

\u00a0<\/p>\n

Nonconvertible Promissory Note from Related Parties<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

On June 21, 2021, we issued
\nDolphin Entertainment LLC (\u201cDE LLC\u201d), an entity wholly owned by our CEO, Bill O\u2019Dowd, a nonconvertible promissory note
\nwith a principal balance of $1,107,873 which was to mature on December 31, 2026. On April 29, 2024 and June 10, 2024, we issued two nonconvertible
\npromissory notes to DE LLC in the amounts of $1,000,000 and $135,000, respectively, which were to mature on April 29, 2029 and June 10,
\n2029, respectively, (collectively, \u201cthe DE LLC Notes\u201d). The DE LLC Notes each bore interest at a rate of 10% per annum.<\/p>\n

\u00a0<\/p>\n

On May 12, 2025, we entered
\ninto an exchange agreement (the \u201cExchange Agreement\u201d) with DE LLC, pursuant to which, we and DE LLC agreed to exchange the
\nthree DE LLC Notes in the aggregate principal amount of $2,242,873 currently held by DE LLC for three convertible promissory notes (the
\n\u201cDE New Notes\u201d) in the same principal amounts. As consideration for the exchange, we and DE LLC agreed to extend the maturity
\ndates on each of the notes by six months. One note, with a principal balance of $1,107,873 now matures on June 30, 2027, one note with
\na principal balance of $1,000,000 now matures on October 29, 2029 and one note with a principal balance of $135,000, now matures on December
\n10, 2029. The DE New Notes continue to bear interest at a rate of 10% per annum. DE LLC may convert the principal balance of the DE New
\nNotes and any accrued interest thereon at any time before the maturity date of the DE New Notes into our common stock at a conversion
\nprice of $1.00 per share. We accounted for this exchange as an extinguishment of debt and recorded the difference between the carrying
\nvalue of DE LLC Notes and the fair value of the DE New Notes of $0.8 million as a loss from extinguishment of debt in our condensed consolidated
\nstatement of operations for the year ended December 31, 2025.<\/p>\n

\u00a0<\/p>\n

As of March 31, 2026 and
\nDecember 31, 2025, we had an aggregate principal balance of $2,839,556 and $2,904,357, respectively, related to the DE New Notes under
\nthe caption convertible note payable \u2013 related party in our condensed consolidated balance sheets. During the three months ended
\nMarch, 31, 2026 and 2025, we did not repay any principal balance or make interest payments on the DE LLC Notes or DE New Notes.<\/p>\n

\u00a0<\/p>\n

We recorded interest expense
\nof $55,304 for both the three months ended March 31, 2026 and 2025 related to the DE LLC Notes and the DE New Notes. As of March 31, 2026
\nand December 31, 2025, we had a balance in accrued interest \u2013 related parties of $543,358 and $488,054, respectively, on our condensed
\nconsolidated balance sheets related to the DE LLC Notes.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

Mock Notes<\/span><\/i><\/b><\/p>\n

\u00a0<\/span><\/i><\/b><\/p>\n

During 2024, we issued three
\nnonconvertible promissory notes to Mr. Donald Scott Mock, the brother of Mr. O\u2019Dowd, in the amount of $900,000, $75,000 and $8,112,
\nrespectively, and received proceeds of $983,112. The Mock Notes bear interest at a rate of 10% per annum and mature on January 16, 2029,
\nMay 28, 2029 and December 30, 2029, respectively.<\/p>\n

\u00a0<\/p>\n

As of both March 31, 2026
\nand December 31, 2025, we had a principal balance of $983,112 related to the Mock Notes under the caption loans from related party in
\nour condensed consolidated balance sheets. For the three months ended March 31, 2026 and 2025, we did not repay any principal balance
\non the Mock Notes. During the three months ended March 31, 2026, we made interest payments in the amount of $24,578 related to the Mock
\nNotes. No interest payments were made during the three months ended March 31, 2025 related to the Mock Notes.<\/p>\n

\u00a0<\/p>\n

We recorded interest expense
\nof $24,578 for both the years ended December 31, 2025 and 2024 related to the Mock Notes. As of March 31, 2026 and December 31, 2025,
\nwe had a balance in accrued interest \u2013 related parties of $188,728 on our condensed consolidated balance sheets related to the Mock
\nNotes.<\/p>\n

\u00a0<\/p>\n

BankUnited Loan Agreement<\/i><\/b><\/p>\n

\u00a0<\/i><\/b><\/p>\n

On September 29, 2023, we
\nentered into a loan agreement with BankUnited (\u201cBankUnited Loan Agreement\u201d) in which an existing term loan with BankProv was
\nrepaid (the \u201cRefinancing Transaction\u201d). The BankUnited Loan Agreement includes: (i) $5,800,000 secured term loan (\u201cFirst
\nBKU Term Loan\u201d), (ii) and $750,000 of a secured revolving line of credit (\u201cBKU Line of Credit\u201d) and (iii) $400,000 Commercial
\nCard (\u201cBKU Commercial Card\u201d). The First BKU Term Loan carries a 1.0% origination fee and matures in September 2028, the BKU
\nLine of Credit carries an initial origination fee of 0.5% and a 0.25% fee on each annual anniversary and matures in September 2026; the
\nBKU Commercial Card does not have any initial or annual fee and matures in September 2026. The First BKU Term Loan has a declining prepayment
\npenalty equal to 5% in year one, 4% in year two, 3% in year three, 2% in year four and 1% in year five of the outstanding balance. The
\nBKU Line of Credit and BKU Commercial Card can be repaid without any prepayment penalty.<\/p>\n

\u00a0<\/p>\n

On December 6, 2024, we
\nentered into a second Bank United Loan Agreement (\u201cSecond BKU Term Loan\u201d) for $2.0 million to finance the acquisition of Elle
\nCommunications, LLC. The Second BKU Term Loan carries a 1.0% origination fee and matures in December 2027. Similar to the First BKU Term
\nLoan, the Second BKU Term Loan has a declining prepayment penalty equal to 3% in year one, 2% in year two and 1% in year three of the
\noutstanding balance. (The First BKU Term Loan, Second BKU Term Loan, BKU Line of Credit and BKU Commercial Card are collectively referred
\nto as the \u201cBank United Credit Facility\u201d).<\/p>\n

\u00a0<\/p>\n

Interest accrues at 8.10%
\nfixed rate per annum on the First BKU Term Loan and 7.10% fixed rate per annum on the Second BKU Term Loan. Principal and interest are
\npayable on a monthly basis based on a 5-year amortization for the First BKU Term Loan and 3-year amortization for the Second BKU Term
\nLoan. Interest on the BKU Line of credit is payable on a monthly basis, with all principal due at maturity. The BKU Commercial Card payment
\nis due in full at the end of each bi-weekly billing cycle. During the three months ended March 31, 2026 and 2025, we did not used the
\nBKU Commercial Card. During the three months ended March 31, 2026 and 2025, we made payments in the amount of $354,621, inclusive of $68,625
\nand $90,722 of interest related to the First BKU Term Loan, respectively. During the three months ended March 31, 2026 and 2025, we made
\npayments in amount of $185,995, inclusive of $23,827 and $32,187, respectively, of interest related to the Second BKU Term Loan.<\/p>\n

\u00a0<\/p>\n

Interest on the BKU Line
\nof Credit is variable based on the Lender\u2019s Prime Rate. During the three months ended March 31, 2026 and 2025, the Company recorded
\ninterest expense and made payments of $6,778 and $7,550, respectively, related to the BKU Line of Credit.<\/p>\n

\u00a0<\/p>\n

As of March 31, 2026, we
\nhad a balance of $1,852,548 classified as current liabilities and $2,502,601 classified as noncurrent liabilities, net of $58,894 of debt
\nissuance costs, in our condensed consolidated balance sheet related to the First BKU Term Loan and the Second BKU Term Loan. As of December
\n31, 2025, we had a balance of $1,813,760 classified as current liabilities and $2,976,930 classified as noncurrent liabilities, net of
\n$71,518 of debt issuance costs, in our condensed consolidated balance sheet related to the First BKU Term Loan and the Second BKU Term
\nLoan. As of March 31, 2026 and December 31, 2025, we had a balance of $400,000 of principal outstanding under the BKU Line of Credit.<\/p>\n

\u00a0<\/p>\n

Amortization of debt origination
\ncosts under the Bank United Credit Facility is included as a component of interest expense in the condensed consolidated statements of
\noperations and amounted to approximately $12,624 and $7,012, respectively, for both the three months ended March 31, 2026 and 2025.<\/p>\n

\u00a0<\/p>\n

The BankUnited Credit Facility
\ncontains financial covenants tested semi-annually, on June 30th<\/sup> and December 31st<\/sup> , on a trailing twelve-month basis
\nthat require us to maintain a minimum debt service coverage ratio of 1.25:1.00 and a maximum funded debt\/EBITDA ratio of 3.00:1.00. In
\naddition, the BankUnited Credit Facility contains a liquidity covenant that requires us to hold a cash balance at BankUnited with a daily
\nminimum deposit balance of $2,000,000. As of March 31, 2026, we believe we are in compliance with the debt covenants.<\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

Critical Accounting Estimates<\/b><\/p>\n

\u00a0<\/p>\n

The preparation of financial
\nstatements in accordance with accounting principles generally accepted in the United States (\u201cU.S. GAAP\u201d) requires management
\nto make estimates and assumptions about future events that affect amounts reported in our consolidated financial statements and related
\nnotes, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Management evaluates
\nits accounting policies, estimates and judgments on an on-going basis. Management bases its estimates and judgments on historical experience
\nand various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under
\ndifferent assumptions and conditions. Our significant accounting policies are discussed in Note 2 to our Consolidated Financial Statements
\nin our Annual Report on Form 10-K for the year ended December 31, 2025.<\/p>\n

\u00a0<\/p>\n

An accounting policy is
\nconsidered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain
\nat the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate
\nthat are reasonably likely to occur, could materially impact the consolidated financial statements.<\/p>\n

\u00a0<\/p>\n

We consider the
\nfair value estimates, including those related to acquisitions, valuations of goodwill, intangible assets and convertible debt to be
\nthe most critical in the preparation of our consolidated financial statements as they are important to the portrayal of our
\nfinancial condition and require significant or complex judgment and estimates on the part of management.<\/p>\n

\u00a0<\/p>\n

Recent Accounting Pronouncements<\/b><\/p>\n

\u00a0<\/p>\n

For a discussion of recent
\naccounting pronouncements, see Note 1 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly
\nReport on Form 10-Q.<\/p>\n

\u00a0<\/p>\n

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS<\/b><\/p>\n

\u00a0<\/p>\n

This Quarterly Report on
\nForm 10-Q contains \u201cforward-looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995.
\nForward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, as well as
\nstatements, other than historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate
\nwill or may occur in the future. These statements are often characterized by terminology such as \u201cmay,\u201d \u201cwill,\u201d
\n\u201cshould,\u201d \u201cexpects,\u201d \u201cplans,\u201d \u201canticipates,\u201d \u201ccould,\u201d \u201dintends,\u201d
\n\u201ctarget,\u201d \u201cprojects,\u201d \u201ccontemplates,\u201d \u201cbelieves,\u201d \u201cestimates,\u201d \u201cpredicts,\u201d
\n\u201cpotential,\u201d \u201cgoal\u201d or \u201ccontinue\u201d or the negative of these terms or other similar expressions.<\/p>\n

\u00a0<\/p>\n

Forward-looking statements
\nare based on assumptions and assessments made in light of our experience and perception of historical trends, current conditions, expected
\nand future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance
\nand are subject to risks and uncertainties, many of which are outside of our control. You should not place undue reliance on these forward-looking
\nstatements, which reflect our views only as of the date of this Quarterly Report on Form 10-Q, and we undertake no obligation to update
\nthese forward-looking statements in the future, except as required by applicable law.<\/p>\n

\u00a0<\/p>\n

Risks that could cause actual
\nresults to differ materially from those indicated by the forward-looking statements include those described as \u201cRisk Factors\u201d
\nin our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.<\/p>\n

\u00a0<\/p>\n

ITEM 4. CONTROLS AND PROCEDURES<\/b><\/p>\n

\u00a0<\/p>\n

Management\u2019s Report on the Effectiveness of Disclosure Controls
\nand Procedures<\/b><\/p>\n

\u00a0<\/p>\n

Disclosure controls and
\nprocedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed
\nor submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC\u2019s
\nrules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information
\nrequired to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief
\nExecutive Officer, to allow timely decisions regarding required disclosure.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/p>\n

We carried out an evaluation
\nof the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
\nand 15d-15(e)) as of March 31, 2026. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that
\nour disclosure controls and procedures were not effective due to material weaknesses disclosed in our Annual Report on Form 10-K for the
\nyear ended December 31, 2025, filed with the SEC on March 27, 2026, which have not been remediated as of the date of the filing of this
\nreport.<\/p>\n

\u00a0<\/p>\n

Remediation of Material Weaknesses in Internal Control over Financial
\nReporting<\/b><\/p>\n

\u00a0<\/p>\n

We have begun the process
\nof designing and implementing effective internal controls measures to improve our internal control over financial reporting and remediate
\nthe material weaknesses. Our internal control remediation efforts include the following:<\/p>\n

\u00a0\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nDeveloping formal policies and procedures over the Company\u2019s fraud risk assessment and risk management function;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nDeveloping policies and procedures to enhance the precision of management review of financial statement information and control impact of changes in the external environment;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nWe have entered into an agreement with a third-party consultant that assists us in analyzing complex transactions and the appropriate accounting treatment;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nWe have implemented a new enterprise resource planning systems that will allow us to setup proper review and approval of transactions;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nWe are enhancing our policies, procedures and documentation of period end closing procedures;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nImplementing policies and procedures to enhance independent review and documentation of journal entries, including segregation of duties; and<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n
\u00a0<\/td>\n\u00b7<\/span><\/td>\nReevaluating our monitoring activities for relevant controls.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0\u00a0<\/p>\n

Management is beginning the
\nprocess of implementing and monitoring the effectiveness of these and other processes, procedures and controls and will make any further
\nchanges deemed appropriate. Management believes our planned remedial efforts will effectively remediate the identified material weaknesses.
\nAs we continue to evaluate and work to improve our internal control over financial reporting, management may determine it is necessary
\nto take additional measures to address control deficiencies or determine it necessary to modify the remediation plan described above.<\/p>\n

\u00a0<\/p>\n

Changes in Internal Control over Financial Reporting<\/b><\/p>\n

\u00a0<\/p>\n

During the most recently
\ncompleted fiscal quarter, there have been no changes in our internal control over financial reporting that has materially affected, or
\nis reasonably likely to materially affect, our internal control over financial reporting for the fiscal quarter covered by this report.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

PART II <\/b>\u2014 OTHER INFORMATION<\/b><\/p>\n

\u00a0<\/p>\n

ITEM 1. LEGAL PROCEEDINGS<\/b><\/p>\n

\u00a0<\/p>\n

On June 21, 2024, the Company
\nfiled a complaint in Los Angeles County Superior Court against NSL Ventures (\u201cNSL\u201d), the Socialyte seller, and its principals
\nalleging that the defendants breached the Socialyte Purchase Agreement and committed acts of fraud and negligence in connection with that
\ntransaction, and that the Company is entitled to monetary damages caused by those acts. On September 16, 2024, the defendants answered
\nthe Complaint with a general denial and affirmative defenses. Also on September 16, 2024, defendant NSL also filed a Cross-complaint
\nagainst the Company and Social Midco, LLC, alleging a single cause of action for breach of contract. The Company and Social Midco answered
\nthe Cross-complaint on October 1, 2024. As the case has progressed, the court appointed an independent accountant
\nto adjudicate certain accounting issues relevant to the case. That independent accountant\u2019s work is ongoing. In April 2026, the
\nCourt rejected Defendants\u2019 attempt to dismiss the Company\u2019s claims. Trial in the matter is scheduled for April 2027. Due to
\nthe stage of the proceedings an estimate of any possible loss or range of loss cannot be made at this time. The Company may be subject
\nto legal proceedings, claims, and liabilities that arise in the ordinary course of business. In the opinion of management and based upon
\nthe advice of its outside counsels, the liability, if any, from any pending litigation is not expected to have a material effect in the
\nCompany\u2019s financial position, results of operations and cash flows.<\/p>\n

\u00a0<\/p>\n

ITEM 1A. RISK FACTORS<\/b><\/p>\n

\u00a0<\/p>\n

Not required for a \u201csmaller reporting company.\u201d<\/p>\n

\u00a0<\/p>\n

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS<\/b><\/p>\n

\u00a0<\/p>\n

None.<\/b><\/p>\n

\u00a0<\/p>\n

ITEM 3. DEFAULTS UPON SENIOR SECURITIES<\/b><\/p>\n

\u00a0<\/p>\n

None.<\/p>\n

\u00a0<\/p>\n

ITEM 4. MINE SAFETY DISCLOSURES<\/b><\/p>\n

\u00a0<\/p>\n

None.<\/p>\n

\u00a0<\/p>\n

ITEM 5. OTHER INFORMATION<\/b><\/p>\n

\u00a0<\/p>\n

No officers or directors, as defined in Rule
\n16a-1(f), adopted<\/span><\/span> and\/or terminated<\/span><\/span> a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as defined in Regulation
\nS-K Item 408, during the quarter ended March 31, 2026.<\/p>\n

\u00a0<\/p>\n

The following information is included in this
\nItem 5 in lieu of filing a Form 8-K:<\/p>\n

\u00a0<\/p>\n

Item 1.01 Entry into a Material Definitive Agreement<\/b><\/p>\n

\u00a0<\/p>\n

On May 7, 2026, two of the Company\u2019s
\nwholly-owned subsidiaries, Shore Fire Media, Ltd. and The Door Marketing Group, LLC (collectively, the \u201cBorrowers\u201d), executed
\na Loan Agreement with certain Lenders and FVP Servicing, LLC (\u201cFVP\u201d), as agent for the Lenders providing for (i) a term loan
\nin the amount of $2,000,000, (ii) a delayed draw term loan in the amount of $2,000,000 that, subject to certain conditions, will be become
\navailable on November 7, 2026 and (ii) a second delayed draw term loan in the amount of $1,000,000 that, subject to certain conditions,
\nwill become available on May 7, 2027 (the \u201cLoans\u201d). The Loans will bear interest at 12% per annum from the date they are made
\nand will have a maturity date of May 7, 2029. The Company executed a Guaranty in favor of FVP in connection with the Loan Agreement. In
\naddition, the Borrowers entered into a Security Agreement pursuant to which they granted FVP and the Lenders a security interest in substantially
\nall of its assets as collateral for the loan obligations and the Company entered into a Pledge and Security Agreement granting FVP and
\nthe Lenders a security interest in the equity of the Borrowers. Proceeds from the Loans will be for general working capital purposes.<\/p>\n

\u00a0<\/p>\n

The foregoing descriptions of the Loan Agreement,
\nSecurity Agreement and Pledge and Security Agreement are not complete and are qualified in their entirety by reference to the Loan Agreement,
\nSecurity Agreement and Pledge and Security Agreement filed herewith as Exhibits 10.1, 10.2 and 10.3, respectively, to this Quarterly Report
\non Form 10-Q, and each such exhibit is incorporated herein by reference.<\/p>\n

\u00a0<\/p>\n

Item 2.03. Creation of a Direct Financial Obligation or an Obligation
\nUnder an Off-Balance Sheet Arrangement of a Registrant.<\/b><\/p>\n

\u00a0<\/b><\/p>\n

The information set forth in Item 1.01 is incorporated herein by
\nreference.<\/p>\n

\u00a0<\/p>\n

Item 3.02 Unregistered Sales of Equity Securities.<\/b><\/p>\n

\u00a0<\/b><\/p>\n

On May 8, 2026, the Company
\nentered into two subscription agreements (the \u201cSubscription Agreements<\/span>\u201d) with investors for two convertible promissory
\nnotes (each a \u201cNotes<\/span>\u201d) in the aggregate principal amount of $500,000 and received cash proceeds of $500,000. The Notes
\nbear interest at a rate of 10% per annum and each have a maturity date of May 8, 2031. The noteholders may convert the principal balance
\nof the Notes and any accrued interest thereon at any time before the maturity date of the Notes into common stock of the Company (\u201cCommon
\nStock<\/span>\u201d) a purchase price of $1.43 per share. The conversion prices for these Notes were either above or the closing price of
\nthe Common Stock on the Nasdaq Stock Market on the respective dates of those Notes.<\/p>\n

\u00a0<\/p>\n

The foregoing description
\nof the terms of the Subscription Agreements, the Notes, and the transactions contemplated thereby does not purport to be complete and
\nis qualified in its entirety by reference to the form of Subscription Agreement and the form of Note, which are included as Exhibits 4.1<\/span>
\nand 10.1<\/span> to the Company\u2019s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 13, 2023 and are
\nincorporated herein by reference.<\/p>\n

\u00a0<\/p>\n

The issuance and sale of the
\nNotes, and any shares of common stock to be issued upon conversion thereof will be issued, by the Company in reliance upon the exemption
\nfrom registration provided by Section 4(a)(2) of the Securities Act.\u00a0<\/b><\/p>\n

\u00a0<\/p>\n

\u00a0\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/b><\/p>\n

ITEM 6. EXHIBITS<\/b><\/p>\n

\u00a0\u00a0<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Exhibit No.<\/b><\/span><\/td>\n\u00a0<\/td>\nDescription<\/b><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
3.1*<\/span><\/td>\n\u00a0<\/td>\nAmended and Restated Articles of Incorporation of Dolphin Entertainment, Inc.<\/span><\/span>, as amended (Incorporated herein by reference to
\n Exhibit 3.1 to the Company\u2019s Quarterly Report on Form 10-Q, filed on May 13, 2025)<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
3.2<\/span><\/td>\n\u00a0<\/td>\nBylaws of Dolphin Digital Media, Inc. dated as of December 3, 2014<\/span><\/span> (incorporated by reference to Exhibit 3.2 to Current Report on Form 8-K, filed on December 9, 2014)<\/span><\/td>\n<\/tr>\n
10.1*<\/span><\/td>\n\u00a0<\/td>\nLoan Agreement dated May 7, 2026 between Shore Fire Media, Ltd., The Door Marketing Group, LLC and FPV Servicing LLC<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10.2*<\/span><\/td>\n\u00a0<\/td>\nSecurity Agreement dated May 7, 2026 between Shore Fire Media, Ltd., The Door Marketing Group, LLC and FPV Servicing LLC<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
10.3*<\/span><\/td>\n\u00a0<\/td>\nPledge and Security Agreement dated May 7, 2026 between Dolphin Entertainment, Inc. and FPV Servicing LLC<\/span><\/span><\/td>\n\u00a0<\/td>\n<\/tr>\n
31.1*<\/span><\/td>\n\u00a0<\/td>\nCertification
\n of Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes Oxley Act of 200<\/span>2<\/span><\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
31.2*<\/span><\/td>\n\u00a0<\/td>\nCertification
\n of Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002<\/span><\/span><\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
32.1#<\/span><\/td>\n\u00a0<\/td>\nCertification
\n of Chief Executive Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002<\/span><\/span><\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
32.2#<\/span><\/td>\n\u00a0<\/td>\nCertification
\n of Chief Financial Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002<\/span><\/span><\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
101.INS*<\/span><\/td>\n\u00a0<\/td>\nInline XBRL Instance Document\u2013the
\n instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
101.SCH*<\/span><\/td>\n\u00a0<\/td>\nInline XBRL Taxonomy Extension
\n Schema With Embedded Linkbase Documents<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
101.DEF*<\/span><\/td>\n\u00a0<\/td>\nInline
\n XBRL Taxonomy Extension Definition Linkbase<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
101.LAB*<\/span><\/td>\n\u00a0<\/td>\nInline
\n XBRL Taxonomy Extension Label Linkbase<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
101.SCH*<\/span><\/td>\n\u00a0<\/td>\nInline XBRL Taxonomy Extension
\n Presentation Linkbase<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n
104*<\/span><\/td>\n\u00a0<\/td>\nCover Page Interactive
\n Data File (formatted as Inline XBRL and contained in Exhibit 101)<\/span><\/td>\n		\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n\n
\u00a0<\/td>\n*<\/span><\/td>\nFiled herewith.<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n#<\/span><\/td>\nFurnished herewith.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n

\u00a0<\/b><\/p>\n

SIGNATURES<\/b><\/p>\n

\u00a0<\/p>\n

In accordance with the requirements of the Exchange
\nAct, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized May 12, 2026.<\/p>\n

\u00a0<\/p>\n

Dolphin Entertainment, Inc.<\/b><\/p>\n

\u00a0<\/p>\n

By:\/s\/William O\u2019Dowd IV<\/span><\/p>\n

\u00a0<\/p>\n

Name: William O\u2019Dowd IV<\/p>\n

\u00a0<\/p>\n

Chief Executive Officer<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

By:\t\/s\/ Mirta A. Nerini<\/span><\/p>\n

\u00a0<\/p>\n

Name: Mirta A Negrini<\/p>\n

\u00a0<\/p>\n

Chief Financial Officer<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

<\/p>\n

<\/p>\n


\n<\/p>\n<\/div>\n

\u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n

\u2018 Some details of this article were extracted from the following source www.stocktitan.net \u2019 <\/em><\/p>\n

\u2018 O artigo anterior foi obtido e traduzido do site internacional da celebrity.land \u2019 Source Link <\/em><\/p>\n\n","protected":false},"excerpt":{"rendered":"

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