Dolphin Entertainment, Inc.

Greetings and welcome to the Dolphin Entertainment second quarter 2020 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, James Carbonara. Thank you, Mr. Carbonara. You may begin. Thank you.

And once again, welcome to Dawson Entertainment's second quarter 2020 earnings call. With me on the call are Bill O'Dowd, Chief Executive Officer, and Mirta Negrini, Chief Financial Officer. I'd like to begin the call by reading the Safe Harbor Statement. This statement is made pursuant to the Safe Harbor for Forward-Looking Statements described in the Private Securities Litigation Reform Act of 1995. All statements made on this call, with the exception of historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that expectations and assumptions reflected in these forward-looking statements are reasonable, it makes no assurances that such expectations will prove to have been correct. Actual results may differ materially from those expressed or implied in the forward-looking statements due to various risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward-looking statements, please see risk factors detailed in the company's annual report on Form 10-K contained in subsequent filed quarterly reports on Form 10-Q, as well as in other reports that the company files from time to time with the Securities and Exchange Commission. Any forward-looking statements included in this earnings call are made only as of the date of this call. We do not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent knowledge, events, or circumstances. Now I will turn the call over to Bill O'Dowd, Chief Executive Officer of Dolphin Entertainment. Bill, please proceed. Thanks, James.

And thanks, everyone, for joining today. What a day, right? As many of you may have just read, a few minutes ago we announced our latest acquisition, the influencer marketing firm, BeSocial. So I'm going to start by talking about this exciting news before proceeding in the usual order of highlighting some top-level financial results and then providing some operational updates before turning it over to Mirta to dive deeper into our financial results. And of course, we'll take questions at the end. Okay, so let's start with BeSocial. We love this company. And bringing social media influencer marketing into our super group was the single biggest priority for Dolphin Entertainment this year. Let me just go off script for a minute, right? I'll scare James here for a hot second. Sometimes it's just easier to speak in plain English, right? Okay, here goes. We're in the business of creating and executing The very best in entertainment, PR, and marketing campaigns, right? The basic principles of PR campaigns have never changed since silent movies. You are building awareness and the ever-elusive buzz or hype among consumers for a piece of content. Now, within our companies, that piece of content or product may be the next James Bond movie, right? Or the next HBO hit series. But the basic principle of what you're trying to do hasn't changed for 100 years. What has changed is the where. Where are you marketing? Where are you executing your PR campaign? Well, newsflash, right? This is 2020. And where you are marketing is increasingly online. In today's world, PR campaigns are won or lost online. Buzz and hype are created through social media. And word of mouth is spread everywhere. on Instagram, not at the office water cooler. And that was even true when people actually went into their offices. It's that simple. Online is where the consumers are, period. And here's one more thing to think about. It's not just the consumers that are online. The content is online. When we design PR campaigns for a new album for one of Shorefire's clients, we're promoting towards the purchase of that album on iTunes or adding it to the consumer's playlist on Spotify. 42S is running campaigns for 145 Emmy nominations this year, a new record, I might add. And the vast majority of those nominations are for shows or for performers on shows that come from streaming services. That's online delivery. If the content is online, we need to meet the consumer in the environment that they are watching the product. It's the old saying, right? Fish where the fish are. Thus, you can see why BeSocial is a highly, highly strategic acquisition for us. We've already got three world-class PR firms. We believe we're the only company in America, let alone the only company on NASDAQ, that has more than one PR firm listed in the top 50 most powerful PR firms in the United States. Now we've just added our first choice of influencer marketing companies so that we can design and integrate the social media influencer campaigns for our clients Combine them with our world-class PR capabilities. We can sync the promotional calendars online and offline. That's the idea. Okay, so with all that said, back to the script. With BeSocial in our entertainment marketing supergroup, we'll be able to immediately cross-sell these services. We can plug and play across all three of our PR agencies. Think of the door. Influencer marketing is 101 these days with promotion of any consumer product. Also, when the hospitality industry comes back, influencer marketing is the very first thing you coordinate for the launch of any restaurant or hotel opening. You need influencers to come visit and talk about it online. That's back to today's word of mouth that I just mentioned. But it's not just the door. Music today is marketed with social influencers. Anyone ever hear of TikTok? May have seen it once or twice in the news recently? Well, guess what? You think the music industry pays for promotion with popular influencers on that platform? You get the idea. So we went looking for the company that we felt would best fit within our supergroup, and we chose BeSocial and for several reasons. First, Allie Grant, hands down. Allie founded BeSocial eight years ago, and she's the CEO today. She's instinctive with social media. She's a thought leader in the space. She's energetic. And most importantly for us, she's collaborative by nature. She epitomizes what we want next generation leadership to be within the Dolphin family. And I know she's ready for and can handle what's coming, which is that all three of our market leading PR firms are ready to work with her right away for the benefit of our entire roster of clients. We're very excited about this acquisition. and it's exactly the next vertical we wanted to add to our supergroup. We've now got PR across every major entertainment industry, a market-leading social media and influencer marketing group, and the video creation capabilities of Viewpoint that can serve as online or offline campaigns. You can just feel the momentum that comes from these types of collaborative synergies.