Q3 2023 Dolphin Entertainment Inc Earnings Call
Good day, ladies and gentlemen, and welcome to the Dolphin Entertainment's third quarter 2023 earnings call.
All lines have been placed on a listen only mode and the floor will be opened for questions and comments. Following the presentation. If you should require assistance throughout the conference. Please press star zero to arrange a live operator.
This time it is my pleasure to turn the floor over to your host James Carbonara Investor Relations, Sir the floor is yours.
Thank you operator with me on the call are below Dauch, Chief Executive Officer, and near Tinder, Greaney, 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 statement 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 section 27, a of the Securities Act of 1933 and section 21.
<unk> 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.
Certainties 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 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.
Do not undertake any obligation to update or supplement any forward looking statement to reflect subsequent knowledge events or circumstances.
Now I'd like to turn the call over to Bill O'dowd, Chief Executive Officer of Dolphin Entertainment.
Please proceed.
Thanks, James and Hi, everyone and good afternoon, and thank you for joining US today as always we will start with a review of some financial and operating highlights followed by a full financial review and then open it up for Q&A.
So from a financial highlights perspective revenue for Q3 was $10 2 million or an increase of 3% year over year I'm very proud of the team of Dolphin, which achieved this increase in revenue. Despite enduring two prolonged industry wide strikes and the distraction of an internal merger for essentially the entire quarter on the ball.
Some line our Q3 operating loss of $2 1 million includes approximately $1 2 million and noncash charges.
The cash operating loss was approximately $900000. We believe if it were not for the impact of the two strikes and the onetime costs associated with the internal merger of our Influencer Influencer.
Influencer marketing subsidiaries be social and socialite to create digital apartment, we would've achieved a cash operating profit in Q3 and that would have been without the benefit of special projects, which we acquired at the start of Q4.
Going forward once the industry resumes normal operations post strikes and with the addition of the revenues and profits are special projects, we expect to have consistent cash operating profits.
Sex of the strikes will be felt into Q1, there's many movies and TV series have already been pushed out of 2023 and into the spring and summer of next year.
Make no mistake.
He is excited to get back to work and dolphin has not been sitting idle.
Quite the contrary as we've achieved the following highlights all since our last earnings call in the middle of August.
First as I just mentioned.
We created a market, leading Influencer marketing agency digital department by merging the social and social life.
Second we hosted the Grand opening of Midnight Theater now open seven days, a week and signed our multiyear partnership with Blue Chip marketer Mastercard.
And third we completed our seven year journey to build an entertainment marketing earned media Super group with the acquisition of the best in class talent booking and celebrity live event firm special projects.
We believe each of these is a catalyst for our company in its own right and I'll spend a few words on each.
And as an aside on a personal note I can unequivocally say that this run post labor day has been the busiest period of my entire career.
One big ticket item after another.
Okay. So first the merger be social and social like to create the digital department I'll be brief on this topic since we alluded to it coming in September.
During our Q2 earnings call.
The short term pain of management distractions in both cash and intangible costs are all behind US now and we've assembled a beautiful company that as a platform for us in the fastest growing area of marketing that we know.
The launch events, we hosted for talent and brand partners in New York and Los Angeles were nothing short of electric the New Yorker that was had been night theater I might add the incoming calls to work with the digital department are exactly what we hoped for and the excitement about its expansion prospects is palpable theres just tremendous theres just tremendous momentum.
Internally and externally around building, what we think will be the flagship Influencer marketing agency in the country out of the entertainment space.
Simply put the digital department will be a strong growth catalyst amongst our core businesses as we add new verticals of expertise right. Now we are market leaders in female focused fashion beauty wellness and lifestyle products with Instagram as our major platform of choice we.
We have several well known reality television personalities on a roster of more than 200 exclusive talent.
From this base, we plan to expand to include several new verticals, such as sports culinary teens and young adults, reaching broader audiences on both tick tock and Youtube to complement Instagram.
Just the sports vertical alone could in success, we believe grow to be as big as our entire.
Business today much more to come on this in the quarters ahead.
Next I'll turn to Midnight theater as a reminder, dolphin manages all aspects of publicity and marketing for midnight theater and its restaurant hidden leaf while also facilitating talent and commercial relationships within the entertainment and culinary industries.
<unk> also holds a meaningful ownership stake in the venture.
The headline here is our new multi year partnership with Mastercard. Obviously this is the bluest of Blue Chip partners for any performance venue guess.
Guests will have the opportunity to partake in new immersive experiences exclusive events special discounts all tailored exclusively for Mastercard cardholders. Moreover.
Moreover, the venue will now be known as Mastercard Midnight theater with the financial industry powerhouses name prominently featured we.
We are confident that this long term support from such a prominent player in the financial industry substantially elevates the intrinsic value of this cutting edge destination.
For anyone new to Dolphin midnight theatres located in Manhattan, West in New York between ninth and 10th Avenues.
The same streets, 31st and third between 31, and 33rd like Penn station or Madison Square Garden, just one avenue over and it's inside Brookfield for $5 billion complex largest in Brookfield history. We are the only entertainment venue. There we have a theater in a restaurant on the same floor all under one roof. If you will we want to sell.
Days of week four days after we merged the Influencer agencies in 11 days before we acquired special projects with a full programming schedule and events throughout the fall.
And we've already started booking 2024, which includes internationally renowned magician Joshua J, who is bringing look closer in new Magic show to midnight Theater in February there'll be performing 16 shows including two shows on Valentine's day.
I'm going to highlight this particular show because of the quality of the performer, who is looking to call Midnight Theater home. So Joshua returns to New York City for years. After is critically acclaimed show six impossible things sold out its entire 18 month off Broadway run as a magician Joshua J has performed as original work on the Tonight show with Jimmy Fallon the late show.
James Corden, and even successfully fooled Penn and teller.
On pool us.
I can hear James Carbonara, multitasking, and pulling up midnight theater Dot com to buy Valentines day tickets right now, let's just say I'm happy for mirror his lovely wife, who doesn't have to planet this year.
Okay. So now we're up to the acquisition of special projects. This company is very special to all of us at Dolphin since it represents the culmination of that seven year journey to build our entertainment marketing Super Group, what began with the speech at LD micro in December of 2016 and was followed by the acquisition of 42 West on March 32017.
The uplifting to NASDAQ in December 2017, one year after the speech at LD Micro is now finished after buying one company a year sense with two in 2018 I should add.
And it would be hard pressed to think of any company more strategic for our group and special projects.
So first some particulars.
Vessel projects was founded by Nicole back your Elion, Andrea Olivary Q former magazine editors, who met working at Comed announced they have built the entertainment industries go to talent booking and celebrity curated live at that company period. They have offices in both New York and Los Angeles, and simply handle a wide variety of signature events from the Wall Street Journal.
<unk> Innovator awards held at the met every year with this year's honorees two weeks ago, including Martin Scorsese, and Kylie Jenner among others.
Motion Picture Academy Museum Gala in Los Angeles coming up in a few weeks and said to honor Meryl Streep, Oprah Winfrey Sofia Coppola, Michael B, Jordan, along with a few surprises.
Too bad they couldnt get any big names right.
Their client list is a plus plus from retainer clients like Apple and Chanel. The project based clients like 80, 20 for Amazon The Apollo Theater, Bumble GQ, Louis Vuitton, Max merits meta Netflix Stella Mccartney Versace, <unk>, Saint Laurent and Youtube.
Anyone who has heard our story before today knows that Ideating and executing world class events is a big part golf in future.
First let's just take a look at our core business.
Just with the business that our PR firms are already doing we have so many opportunities for cross selling.
Every movie or streaming series at 42 US is promoting as a potential candidate for premier event handled by special projects every hotel or restaurant opening the doors promoting it as a potential candidate for a launch event handled by special projects every single or album dropped that short fires promoting as an opportunity to create a <unk>.
At least party handled by special projects.
Any consumer product being handled by any one of our PR firms.
Potential beneficiary or sponsor of an event handled by special projects.
Oh by the way. This is an immediately accretive acquisition for US special projects is a very well run profitable business with a great margin and we think we can grow them very well in the next 12 24 months with all the synergies I just mentioned and when we look at Dolphin ventures, we talk about receiving ownership stakes in exchange for our services and promoting three.
Categories of assets content consumer products and live events.
So sure.
Dry eyes, Nicole and special projects that finished our Super group.
I've talked about how some this may seem like it's a finish line.
For us it's often we see it as the starting line, we now have our full team assembled and by the way.
Acquisitions.
From only eight offers.
What does that tell you we got our first choice of companies in every vertical that entertainment marketing, we want to be in.
We've assembled our dream team now we're excited to show what we can do together.
With these accomplishments we believe dolphin is in its strongest position in company history with highly diversified revenue sources across seven operating subsidiaries and expectations of cash operating profits in 2024.
As we look ahead to next year, our landscape of promising opportunities within Dolphin Entertainment Dolphin ventures awaits beginning with the release of and the revenues from the Blue Angels. The first project in our multiyear agreement with IMAX.
So we believe the aforementioned multiyear partnership with Mastercard, and Midnight theater validates our investment by indicating the value placed on our venue by the market.
With our IMAX partnership and our Midnight theater venue are just getting started and each of them are ahead of other dolphin ventures that we are equally excited about and are working hard to realize in 2024.
In short.
We believe we've weathered the unique storm of this past summer and early fall looking ahead. After successfully navigating these temporary headwinds and after our successful at the market raise no discount no warrants of two weeks ago, we find ourselves on stable footing and with the full amount of our targeted cash reserves we are.
Very confident and our sustainable path forward, we believe that this sends a strong message to our current microcap market, which we expect will reward positive free cash flow underlining our strategy for creating significant near term shareholder value with that said I'll turn it over to merit.
Thank you Bill and good afternoon, everyone I will now discuss results for the quarter ended September 32023.
Total revenue for the third quarter ended September 32023 increased by 3% to $10.2 million compared to the third quarter ended September 32022.
Overall operating expenses for the three months ended September 32023 were approximately $12 $3 million compared to approximately $11 million for the three months ended September 32022.
Operating expenses are composed of direct comp payroll and benefits selling general administrative expenses acquisition costs, depreciation and amortization impairment of intangible assets and legal and professional fees.
Direct costs for the quarter ended September 32023 were $185308 compared to $837429 for the quarter ended September 32022.
Payroll costs were approximately $8 4 million in the third quarter of 2023 compared to $7 million third quarter of 2022.
SG&A expenses were $2 1 million in Q3 of 2023 compared to $1 7 million in Q3 last year.
Legal and professional fees were $695188 in Q3 of 2023 compared to $774613 in Q3 of 2022.
Operating loss for Q3 of 2023 up $2 1 million.
The noncash items of over one 2 million net.
Net loss for Q3 of 2023 and $3 $9 million includes noncash items.
Approximately $2 $4 million.
The noncash items included in operating losses consists of nonrecurring 341417 dollar impairment of the trade names of Eastern Russia Searchlight.
To become the digital department.
$535740 of depreciation and amortization and $311578 of bad debt expense related to the write off of our investment in <unk>.
Net loss for Q3 of 2023 also includes a nonrecurring write off of our investment in craft cocktails and approximately $1 2 million.
Reported under the caption equity and losses of unconsolidated affiliates.
This compares to an operating loss and net loss for the quarter ended September 32022 of $1 1 million and $1 3 million.
We include noncash items from depreciation and amortization of $415836.
Loss per share was <unk> 27 per share based on $14 million 121275 weighted average shares outstanding from both basic loss per share and fully diluted loss per share for the three months ended September 32023.
Loss per share was <unk> 14 per share based on $9 million 664681 weighted average shares outstanding for basics and $9 million 793716.
Weighted average shares outstanding.
Fully diluted loss per share basis for the three months ended September <unk>.
In 2020.
Cash and cash equivalents of $6 4 million.
As of September 32023, as compared to $6 $1 million as of December 31, 2022.
Not include on October 31, 2023, underwritten public offering of 1.400 million shares of our common stock at a price of $1 65 per share.
That concludes my financial remarks, I will now ask the operator to open the phone line for Q&A Operator would you. Please poll for questions.
Thank you ladies and gentlemen, the floor is now open for questions. Thank you have a question. Please press star one on your telephone keypad at this time again Thats Star one if you have a question or comment please hold as we poll for questions.
And we'll take our first question from Allen Klee from Maxim Group. Please go ahead Alan.
Yes, hi, congratulations on.
The positive events.
I'd like to start with Blue Angels, and the IMAX partnership.
What's your best guess on when this goes into theaters and how how do you think about.
When you get paid for that and for Amazon and then when you might consider.
The second.
A movie that you do in partnership with them. Thank you.
Sure. Yeah. This is obviously a hot topic with with folks that have followed our story because it's a great success story for us the Blue Angels.
We expect to have that in theaters, probably Q2 Allen we expect.
To deliver the movie maybe even close to year end here, but probably Q1 early Q1, we recognized the revenue in Q1 then.
And we would expect to receive the cash.
Almost entirely by the end of Q1 or into Q2, if delivery occurs in January.
Uh huh.
As I mentioned the revenue is recognized upon delivery of the film are 90% of it is so.
I think.
And then as people new to the story might might find of interest.
We sold the film and whats called the second window, meaning after its in theaters with IMAX. It will go on Amazon Prime.
And.
We expected to generate more than 75% return on investment for US just from a J.
From sales we've already made so that.
That doesn't count any revenue share from the ticket sales and IMAX theaters or any theaters.
No.
It was a homerun first project and our slate with multiyear slate with IMAX.
In terms of the second project in that fleet.
Actively being discussed right now I think I may have mentioned on our last earnings call. We hoped to have an announcement to make for the end of this year, but it may trickle into the first quarter, just because it's hard to follow up the mega hit like that.
We're actively looking for one that we can be in production on next year.
Okay. Thank you.
So here's a question that somebody asked me to ask you is like Heska tab before I forget.
You make a bunch of announcements of.
Your various.
<unk>.
Hum.
So.
Their clients winning awards and the question is do you get paid more when one of your clients.
Windsor and award.
Yes, and Thats one of the reasons why we do it.
We frame. It is we are congratulating, our subsidiary or congratulating our clients as they deserve to be congratulated when you handle you know.
Twenty-five Grammy nominations, or 99 Emmy nominations, whatever but or however, many oscar nominations will have but.
The benefit of that also is that typically how awards campaigns work is that you get paid.
A retainer each month, while youre running the campaign and often times.
And in certain industries you get.
Bonuses upon receiving a nomination at all and you and by the way then it extends your your run rate because if you're if you're nominated you keep the monthly retainer searches. The award ceremony. So you might have gone from a three month campaign.
If you get a nomination to another three months after until the award ceremony for example, or whatever it might be.
You also get a especially in the case of the Oscars you typically get a nice reward bonus.
If you can't if your nominee wins in its category, so and those those bonuses are typically from can range from mid to high five figures each.
In rare cases, maybe you get a six figure bonus for wind.
Those are nice to haves in our industry for sure can add up quite a bit.
Yeah.
That's very informative thank you.
So you said.
That you expect to ticket begin just when the industry resumes normal operations post strike.
Do you expect to be.
Cash flow positive.
Is is a reasonable time to think about that being best guess today is second quarter 'twenty four.
I think so.
That seems conservative and nice for us I mean with the strike ending in November the actor strike, which is one that impacted us the most rate and you say how well of course.
The two ways that it impacts us the most would be certain.
Talent.
They're not allowed to promote.
Right.
Personal publicity it takes you know.
If you don't have something other than filmed entertainment to promote you would go on what's called hiatus pause youre publicity work, but then secondly, many movies just pushed out of the quarter now we've got arguably the biggest movie theaters right.
Traditional movie and killers of flower Moon, Martin Scorsese's, maybe with Dicaprio and to narrow in and that studio decide to push forward with the release, despite not having to capri owned to narrow or able to promote it.
But many movies the majority of movies shows to push into next year. So after the marvels and I think Disney might have one more yet wish coming out in a couple of weeks and Disney for example is pausing or has the gap I should say in the release slate of seven months I think until their next movie hit theaters next summer. So of course, we don't need the movie theaters.
We start promoting beforehand, but.
I would think that with the strikes over now.
It will impact us here, obviously in the fourth quarter and into the first quarter.
But we will be resumed well resumed normal operations at some point before the end of the first quarter. We would hope in Q2 will be a normal quarter for us.
I think the cash profit cash operating profit.
We were very proud of the fact that we built the team that would have done it anyway, but then with special projects that certainly helps I think hesitation youre hanging my voices.
What will Q1 looked like it's always our weakest quarter.
In Q4 is always our strongest quarter. So it's hard to gauge today because it is.
Rental that would only be answered if we knew how the strikes will linger into Q1.
Right now before the strike settled there were only three keys.
<unk> releases on a wide basis, the entire month of January everybody is pushing out a bit because I didn't know if they'd have actors to promote now some of those moves are going to come back in but.
It could be a ramp up period in Q1 that that I. Just don't know the answer to you would be cash positive in Q1, but we would expect to be by Q2 and going forward.
Okay.
Okay.
That's great. Thank you.
Yeah.
So for your social influencing businesses that your combined you've said in the past that's around a quarter of your revenue.
Then there is opportunities to grow that very significantly as you said.
You add new verticals, how do you think about the timing of of.
Oh.
That's very near term.
We put just like we we acquired socially.
And we announced it on this call last year right the.
The Q3 earnings call date November 14th I think it was also last year and we.
With the eye towards the merger right that we're going to combine New York and L. A.
We didn't know the name of time, but the digital department.
We handle that merger with <unk>.
Towards having the scale and size of the company to build these other verticals that was a big factor in the merger.
And so we've been just like we've been working last few months towards the merger before.
It came about we have got.
We feel very strongly about the work we've put in the last few weeks and months to do have these other verticals and that we'd be announcing in the new year.
For the digital Department.
And we're particularly excited we're excited about them all but obviously sports represents such a huge area for us.
And.
And growth area for digital apartment for sure.
Yes.
Thank you.
For me Tonight Theater.
How should we think about the impact of the Mastercard partnership.
Well, it's certainly from a financial standpoint.
Buffers the investment right I mean, it's it's.
Multiyear deal.
With increases every year.
And it.
As we're very pleased with the outcome.
And then on a operation on an operational level, you've got a partner that both brings events to the space brings awareness their own events I mean brings awareness to the space and it has a marketing engine behind it so.
The theater is off to a strong start after the grand opening.
Q4 is always good to because a lot of the private events.
Business with the holiday season.
But it is nice as you go into it.
It's just very strong for our business and as I mentioned on the earnings call I mean.
These types of things may.
Somewhat get taken for granted because of some of the blue chip clients, we have with our entertainment marketing companies, but in a venue like this in an investment like this is as far from normal.
This is a 150 seat.
Granted state of the art.
D. A theater in a beautiful $4 $5 billion complex, but at the end of the day, everyone, who just think of your own hometown here from New York think of all the entertainment venues of that size you've been too.
Joe's pub too.
54 below to wherever you may be thinking that right now.
Now I ask you to take five seconds.
And just thank you.
Which of those venues have a sponsor.
If you can name on the same size with any sponsor and that could be like Jos.
Oil change right.
And then you and then you think about master card.
And a deal done with the global CMO of Mastercard I think it validates.
Our venue to validate its presence in New York City and I think.
You can imagine that there's excitement about what we'll be doing in the future with that but that space in that brand.
Okay.
Is there.
Kind of a goal for how many private events.
Two a month.
Yes, so we haven't we have a goal.
In terms of full venue buyouts.
In a perfect world Youre doing.
You could do one a week and not disrupt your programming enough right and when I say full venue that means that means.
Uh huh.
Client is taking over both the theater and the restaurant now in terms of just either the lounge buyout or private dining room buyout or even a restaurant buyout you could you could do those maybe you don't want to do it more frequently than a couple of times a week for a restaurant buyout, but.
I think that 1% to two times a week for the larger buyouts in terms of the lounge or the happy hours of a private dining room, we can do that every day.
And sometimes it feels like we do.
So.
And of course, you only do buyouts. If the money you are receiving is significantly above what you can just do a few operated it alright.
Theyre lucrative for us and in wheat.
We like to do as many as we can responsibly.
Okay.
That's great Okay.
And then on special projects.
Yes.
Sounds like.
This could be if you haven't provided.
The financial breakout of it in terms of what its revenues is I don't think I mean, you did discuss how much you paid for it.
But it sounds like with the synergies this.
This this could.
B the revenues could be maybe significantly more than what it has been historically is that kind of a way to think about it.
Yes, and the profit I mean, this is a very I don't want it.
Give around compensation here. This is a well run very profitable high margin business as it is Gerry.
And like you said, it's immediately accretive for us.
We'll announce those financials are at 74 days after the acquisition, we will file the 8-K. So it's not me dodging I can't get ahead of our filing right but.
But with that said it's already.
Well run like like I mentioned, but it was trying to make the point in my prepared remarks.
You can see how seamless.
This type of company and this particular company is within the group we've already built.
In a perfect world, we wanted to buy those those PR firms first.
Which we largely accomplished and then at Influencer marketing I think I called that the peanut butter and jelly of earned media.
On past calls those are the those are the twin pillars, if you will PR and influencer marketing to create awareness and reach and then the live event company. We always did want to bring in last.
<unk>.
Because the the PR firms and quite frankly, the influencer marketing can refer so much business to them.
And so be ashamed.
Our lives have been company first and Youre waiting to buy the PR for us right.
But then in terms of Dolphin ventures.
The live events company special projects is highly strategic we bought three PR firms are about two influencer marketing agencies, and we have one slide in banking company and we don't need another because they're on both coasts, they're already the market leader there already the most established brand in talent booking and celebrity live events, which is our wheelhouse of course.
And with them we instantly.
Eight.
Anything involving celebrities or influencers and with a curated editorial sensibility and we have immediate credibility within the media partner.
They're already.
<unk> and executing for Wall Street Journal for Comed and asked for W Magazine for Bustle Digital group right.
They come from that World. So now all of a sudden you've got PR firms Influencer marketing.
Publishing to promote an event that we could either <unk> or taken.
<unk> taken ownership stake in <unk>.
For all of that superpower, and you can bring the celebrities there.
So it's all great to give award ceremonies, but if.
If you cant get somebody to show up to receive the award is not much of a very sponsor Boulevard.
So they.
They do it at the very highest level.
And obviously with these are major major brand name type of events with major celebrities attending so and they put all of that together.
So last year's Academy Museum Gala that out George Clooney, and Julia Roberts up there and that had a hailey bieber and Selena Gomez and sharing a table in the photo that broke the internet that's all of them.
They bring the celebrities that do the seating chart state.
Organize the panels, they put everybody up there so.
It's there they are very well regarded in the industry and.
We are blessed to have them and they complete Super group.
Thank you.
In your business, where you are.
Okay.
<unk> content or consumer products.
Part of the longer term strategy as well.
For some of that and you're basically getting the equity for free.
And then over time you.
You can get payouts on that too.
I think it's reasonable to think that maybe some of them might.
Might pay out in 'twenty four.
Yes.
Well, yes, youre referencing when we get we take or receive ownership stakes.
In products or companies in exchange for impartial exchange for our services, we love that model, where we get cash we get some cash every month as a retainer, but we also get equity five seven out of 10% of a product or service.
In exchange for the firepower of the Super Group works, especially well when the marketing is as valuable as the quality of the product itself. So think industries like liquor beauty cosmetics.
Wellness products.
Getting people aware of the product and maybe even endorsed.
From an entertainment figure either celebrities or Influencers is.
Gold in these days of.
Promotion.
So.
Yes, we love that model and we put up no capital as you set out.
Well, we have some exits in 2024.
That.
May happen in the year, the second half of the year, depending on where a couple of land, but I think what we see now that we have the group finished is using a year or so to build a slate of those we've already got a couple as you mentioned in and then start rolling exits out as we add new into the slate every year, we'll hopefully.
The rollout of successful exit.
And.
And there are some very successful exits we can all think of using either celebrity front of product or influencer fronted product in the marketplace.
Yes.
Okay fantastic.
My questions. Thank you so much.
Thank you al.
Once again star one if you have a question or comment.
Okay.
Okay.
Thanks.
And there appear to be no further questions at this time I'll turn the floor back to Bill <unk> for closing remarks.
Okay great.
<unk>.
Thank you very much and I was getting.
Flip to note C was there one question from Tim region or is that old.
Okay, but then he must have removed himself.
Okay, maybe I answered. This other question is too long. Thank you very much so.
And of course Garen.
Well. Thank you everybody for listening today I know this is the entry into the longest stretch of the earnings call seasons, where we go from November 14th all the way to March 31.
Without having scheduled earnings call or the end of March.
Whatever our filing date is.
We will try and.
Continue with <unk>.
Almost weekly press releases to let you know how each of the subsidiaries are operating.
Would hope to have some of the bigger announcements like our Mastercard sponsorship or.
Equally exciting the merger of our companies.
So between now and then of course I have a couple of those and we'll try and call those out to pay particular attention to.
Especially if it involves any debentures or <unk>.
Receiving ownership stakes in some of those.
A couple on the cusp.
And.
Hi, thank everyone who's been a part of the journey, especially for those funds.
That were in the room in December of 2016.
At LD micro with the idea of a group was presented before we bought the first 140 to us.
Three months later, so thank you for those who have been with us since the beginning and thank you for those who have just heard about us and joined in the last month or so.
It's been a fun ride and as I said, we we think we're now firmly at the starting line with full group intact. So we're excited to see what's going to happen next. Thank you guys for the time today and we'll look forward to speaking again in March.
Thank you ladies and gentlemen, this does conclude today's dolphin Entertainment earnings call. We thank you for your participation you may disconnect at this time and have a great day.
Okay.
Okay.
Uh huh.
Hum.
[music].