Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

(a) On May 4, 2022, the Audit Committee of the Board of Directors (the "Audit Committee") and management of Dolphin Entertainment, Inc. (the "Company") determined that the Company's previously issued unaudited condensed consolidated financial statements included in the quarterly report on Form 10-Q for the interim period ended September 30, 2021 (the "Prior Period Financial Statements"), should no longer be relied upon due to an error in the classification of the change in fair value of contingent consideration. The Company had incorrectly classified the change in fair value of contingent consideration as part of non-operating expenses instead of income/loss from operations for the three and nine months ended September 30, 2021. Due to this error, income from operations of $38,289 for the three months ended September 30, 2021 is restated to a loss from operation of $1,071,711 and the loss from operations of $1,100,358 for the nine months ended September 30, 2021 is restated to a loss from operations of $2,410,358. Total other income, net for the three months ended September 30, 2021 of $103,362 is restated to total other income of $1,203,362 and total other loss, net for the nine months ended September 30, 2021 of $2,718,885 is restated to total other loss, net of $1,408,885. This change will require restating the Prior Period Financial Statements, which will be presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

The prior period error had no impact to net cash used in operations for the nine months ended September 30, 2021. Furthermore, the error had no impact on net income or loss or net earnings or loss per share for the three and nine months ended September 30, 2021. In addition, the error had no impact on any of the balance sheet accounts, including accumulated deficit, as of September 30, 2021.

The members of the Audit Committee and members of management discussed with the Company's independent accountant, BDO USA, LLP, the matters disclosed above.

Item 9.01 Financial Statements and Exhibits.





(d) Exhibits


Exhibit
  No.      Description

104        Cover Page Interactive Data File (embedded within the Inline XBRL document)

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