The accompanying consolidated
financial statements represent the consolidated financial position and results of operations of the Company and include the accounts
and results of operations of the Company, Dolphin Digital Media, Inc. and its wholly owned subsidiaries, Dolphin Digital Media
(Canada) Ltd., Annes World Limited, Curtain Rising Inc. and Hiding Digital Productions LLC for the years ended December
31, 2011 and 2010. Intercompany accounts and transactions have been eliminated in consolidation. Dolphin Digital Media (Canada)
Ltd., Annes World Limited and Curtain Rising Inc. have no current operations, revenue or expenses.
Dolphin Digital Media,
Inc. (the Company), initially known as Rising Fortune Incorporated, was incorporated in the State of Nevada on March 7,
1995. The Company was inactive between the years 1995 and 2003. On November 19, 2003, the Company amended its Articles of
Incorporation to change its name to Maximum Awards Inc. On July 3, 2007, the Company amended its Articles of Incorporation
again to change its name to Logica Holdings Inc. On July 29, 2008, the Company amended its Articles of Incorporation again
to change its name to Dolphin Digital Media, Inc.
In September 2010,
the Company announced the launch of Dolphin Digital Studios as a new division of the Company. Dolphin Digital Studios creates original
programming that premieres online, with an initial focus on content geared toward tweens and teens.
August 4, 2011 the Company formed Hiding Digital Productions, LLC a wholly-owned subsidiary of Dolphin Digital Media, Inc.
as a holding company.