other material
confidence high
sentiment negative
materiality 0.55
Dolphin restates Q3 2021 financials on classification error; operating loss revised from $38k profit to $1.07M loss
Dolphin Entertainment, Inc.
- Error: change in fair value of contingent consideration misclassified as non-operating expense instead of operating income/loss.
- 3 months ended Sep 30, 2021: income from operations restated from $38,289 to loss of $1,071,711.
- 9 months ended Sep 30, 2021: loss from operations restated from $1,100,358 to $2,410,358.
- No impact on net income/loss, EPS, balance sheet, accumulated deficit, or cash flows.
- Audit Committee and management determined non-reliance on May 4, 2022; discussed with independent accountant BDO USA LLP.