dpdm.jpgDolphin Digital Media, Inc. (DPDM.OB) creates and manages social networking Web sites for children utilizing biometric identity authentication technology. Currently, the stock of the company is at $0.68. Although half a month later, the company filed the annual report. Let’s take a look at it.

Current assets of the company have grown up almost three times, from $52,000 to $146,000. On the one hand this is a very positive perspective. However, there is one thing that makes me worry: 64% of the assets constitute inventory. If it isn’t sold, then the money isn’t such big. Unfortunately, the company is unable to pay all the debts that total $1,516,000.

It is also worth mentioning that gross profit has exceeded almost six times in a year, as well as operating loss has decreased from $8,269,000 to $3,057,000. All in all, this is still a loss and not earnings.

Finally, one more thing should be mentioned. DPDM agreed to pay RedChip Companies, Inc., a fee of $6,000 in cash each month for 6 months and 56,000 shares of Rule 144 common stock for the first 3 months of IR services; and an additional 30,000 shares of Rule 144 common stock for the final 3 months of IR services. If you counted the shares at the current price, you would see that this is a rather large sum of money.