Dolphin Entertainment, Inc.

Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. James Carbonara of Hayden IR. Sir, you may begin.

Thank you, Operator. Good afternoon. Before we begin, I'd like to remind everyone that during the course of this conference call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could differ materially from actual events. Please refer to the cautionary text forward-looking statements contained in the earnings release published earlier today, as well as the most recent SEC filings and reports. During the call today, management will also discuss non-GAAP financial measures, including adjusted operating income or loss. The company believes that these will provide helpful information for investors. reconciliation to the most comparable gap measures are provided in the earnings release. Now, I would like to turn the call over to Bill O'Dowd, Chief Executive Officer of Dolphin. Bill, please go ahead.

Thanks, James, and welcome, everyone. As usual, I'll start by reviewing some of the key financial and operating highlights from our first quarter, and then Merita will provide a more detailed financial overview before we open it up for Q&A. So, starting with the financials, While total revenue came in at 12.2 million for the quarter compared to 15.2 million a year ago, it's important to remember that last year's Q1 included a significant contribution of 3.4 million from our Blue Angels documentary. If we set that aside, our core entertainment publicity and marketing revenue actually grew 2% year over year, which is a testament to the underlying strength of our platform, especially as we manage through the lingering impact of the LA wildfires and a correspondingly lighter award season. We believe that the fires impacted our 42 West and Special Project subsidiaries most significantly. Fortunately, the impact of the fires was limited to Q1 for us. And on a personal note, we are very fortunate that none of our team lost their homes to the fires as we continue to give our thoughts and prayers for many of our industry colleagues who are not so lucky. On the bottom line, our adjusted operating loss was approximately 600,000, very comparable to last year if you backed out the movie as well. Obviously, any lost revenues from the impact of the fires flows through to our bottom line, and we believe this is measured and contained. Result demonstrates that our cost discipline remains intact, even as we make strategic investments for future growth. Speaking of investments, I want to highlight two areas where we've made strategic investments in Q1. First, we're big believers in the future of women's sports. Our women's sports management firm, Always Alpha, co-founded by the incredible Allison Felix, has taken a leadership role in this multi-billion dollar and rapidly growing market. Our new partnership with Deep Blue Sports and Entertainment now positions us as the largest and most comprehensive management firm in the women's sports space. We marked this milestone in style by ringing the NASDAQ closing bell on International Women's Day alongside some of the most inspiring women in sports. That was an extremely fun moment for Dolphin and really brought the momentum we were feeling to life. We now represent more than a dozen female athletes and sportscasters, including several Olympians, in addition to Allison herself, of course. We will continue to invest in this business throughout 2025. We want to expand into women's soccer and basketball with dedicated management teams for each of these two most popular women's sports in the United States. In doing so, we would expect that our active roster of represented athletes and sportscasters will double by the end of the year. Second, Our digital department has officially launched a dedicated affiliate marketing division. As the influencer economy continues to grow and evolve, affiliate marketing is quickly becoming one of the most important revenue streams globally, now estimated at over $17 billion. By building out this vertical, we're one of the rare agencies able to offer every major influencer marketing revenue stream under one roof, making us a true one-stop shop for creators and brands alike. And just like with Always Alpha, we will continue to invest in this area. We have two dozen influencers on our affiliate roster today, and we expect to more than triple that number by the end of the year. In order to achieve this growth, we will be hiring affiliate managers at a steady pace throughout the rest of the year. As you might expect, we believe that these investments in Always Alpha and the affiliate marketing division of the digital department will pay increasing dividends for us in 2026 and beyond. both in revenues and profits. Turning to the incredible work our agencies have delivered this quarter, 42S had a fantastic showing at Toy Fair. They championed the clients at both the Sundance Film Festival and the South by Southwest Festival, as well as the Oscars, and drove major campaigns at the Super Bowl, including bringing Wayne Brady and Purdue's Winging It campaign to life and increasing media buzz for the Puppy Bowl and DC Studios. Puppy Bowl being James Carbonara's favorite aspect of Super Bowl Sunday. And he's just a longtime supporter of the Puppy Bowl. We're big supporters in general. Surefire Media saw its clients win big at the Grammys, celebrated longtime client Cindy Lauper's induction into the Rock and Roll Hall of Fame, Go Cindy, and orchestrated memorable Super Bowl moments from Trombone, Shorty, and Lauren Daigle's pregame performance, which was awesome, to Fred Minnick Live and campaigns for Dove, Uber Eats, and more. The Door continued to cement its authority in culinary and lifestyle branding, unveiling a major new chef roster, and running creative Super Bowl campaigns itself, like Not So Fast, Not So Furious with Vin Diesel and Friends. Those friends include Michelle Rodriguez and Ludacris. It was a fantastic commercial. Plus the cross-country Daz Drive activation, excuse me, for Haagen-Dazs. The team at The Door just continues to crush it. A lot of, as you can see, Super Bowl activations for our PR firms. Speaking of our PR firms, Elle, our newest addition to the Dolphin family, serviced over two dozen clients across both its lifestyle and impact divisions, and it's just doing great work. The digital department set a new record with our highest grossing brand edit influencer experience in LA this past month, and as mentioned earlier, kicked off the new affiliate marketing division, expanding our reach in the creator economy. And finally, special projects strategically brought together top celebrities and cultural influencers for Max, Warner Brothers, and Louis Vuitton events, among many others I might add, enhancing brand impact and resonance. On the content side, the Blue Angels collected another industry award for sound editing and returned to IMAX theaters with a stunning new 3D version in January. Our Youngblood feature adaptation has now completed principal photography and is tracking toward a fall festival debut. We're excited for Youngblood very much. All of this activity has not gone unnoticed. We were honored to be named Agency of the Year by Observers 2025 PR Power List, a major milestone that validates our strategy and the depth of talent across all our agencies. And on a personal note, I continue to put my money where my mouth is. I see tremendous upside in our shares, and I've started weekly purchases through a 10B51 plan, which began in the first week in April after we filed our 10K. I believe our current valuation does not reflect the strength of our team, our brands, or our long-term growth prospects. Looking ahead, we are building on a powerful foundation with clear leadership in high-growth categories. We believe that our investments in women's sports and affiliate marketing are broadening our addressable market, and will provide sustainable growth opportunities for us for years ahead. As we stay focused on execution and innovation, I'm confident that 2025 will be another year of progress for both our clients and our shareholders. With that, I'll hand it over to Mirta for a deeper dive into the financials. Then we'll open it up for your questions. Mirta?