DLPN

Business Context and Reporting Period

Company: Dolphin Entertainment, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: April 23, 2020
Reporting Period: Event date April 23, 2020; Signed April 27, 2020.
Context: The Company and its subsidiaries entered into material definitive agreements to secure loans under the Paycheck Protection Program (PPP) established by the CARES Act.

Key Financial Metrics

Debt and Liquidity:

• Total PPP Loans Received: Approximately $2.1 million.
• Lender: BankUnited, N.A.
• Interest Rate: 1.0% per annum.
• Maturity Dates: Between April 19, 2022, and April 23, 2022.
• Security: Unsecured.

Loan Breakdown by Borrower:

Entity	Loan Amount
Dolphin Entertainment, Inc.	$54,900
Shore Fire Media, Ltd	$322,200
42 West LLC	$725,200
Viewpoint Computer Animation Incorporated	$321,000
The Door Marketing Group LLC	$672,700

Revenue, Profit, and Cash Flow: The filing text does not provide a clear value for revenue, profit, operating cash flow, or margins.

Material Changes

The primary material change is the creation of a direct financial obligation totaling approximately $2.1 million. This represents new debt incurred to access federal relief funds. The filing does not provide comparative financial data to quantify changes in revenue or profitability versus prior periods.

Guidance, Outlook, and Terms

Repayment Terms:

• Interest Payments: Accrued interest not forgiven must be paid commencing November 19, 2020, through November 23, 2020.
• Principal and Interest: Equal monthly payments begin on the First Payment Dates to fully amortize the loan by maturity.
• Prepayment: Allowed at any time prior to maturity with no penalties.

Forgiveness: All or a portion of the loans may be forgiven upon application for expenditures made during the 8-week period following the first disbursement, primarily for payroll costs, in accordance with PPP requirements.
Use of Proceeds: To be used in accordance with the terms of the CARES Act program.
Management Commentary: The filing contains no specific forward-looking guidance or management commentary beyond the description of the loan terms.

Investor Verification Checklist

• Verify the specific disbursement dates for each subsidiary to calculate the exact 8-week forgiveness period.
• Confirm the Company's eligibility for loan forgiveness based on actual payroll and eligible expense documentation.
• Monitor future filings for updates on the forgiveness application status and any partial or full forgiveness amounts.
• Review the full text of the Paycheck Protection Program Term Note (Exhibit 10.1) for specific covenants or conditions not summarized in the 8-K.