Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 000-54389 KARTOON STUDIOS, INC. (Exact name of registrant as specified in its charter) (State or ot ...

Revenue Performance - Total revenue for the three months ended June 30, 2023, was $11,038,000, a decrease of 50% compared to $22,124,000 for the same period in 2022[272]. - Production Services revenue decreased by 30% to $7,033,000 from $10,018,000 year-over-year, primarily due to the completion of various productions[272][273]. - Content Distribution revenue fell by 65% to $3,012,000 from $8,529,000, attributed to fewer content deliveries in 2023 compared to the previous year[272][275]. - Licensing & Royalties revenue plummeted by 96% to $103,000 from $2,495,000, indicating a significant decline in licensing activities[272]. - Media Advisory & Advertising Services revenue decreased by 18% to $890,000 from $1,082,000, reflecting a slight downturn in advertising services[272]. - Total revenue for the six months ended June 30, 2023, increased by 7% to $25.227 million, compared to $23.563 million for the same period in 2022[282]. - Production Services revenue rose by 69% to $16.919 million for the six months ended June 30, 2023, driven by six full months of revenue recognition from Wow[282]. Expense Management - Total expenses decreased by 36% to $19.601 million for the three months ended June 30, 2023, compared to $30.725 million in the same period of 2022[278]. - General and Administrative expenses decreased by 45% to $8.370 million for the three months ended June 30, 2023, primarily due to the absence of $4.5 million in acquisition fees from the prior year[281]. - Direct Operating Costs decreased by 35% to $9.541 million for the three months ended June 30, 2023, compared to $14.648 million in the same period of 2022[278]. - The company recorded an impairment charge of $11.287 million for goodwill during the six months ended June 30, 2023[293]. Cash and Liquidity - As of June 30, 2023, cash and cash equivalents were $4.8 million, a decrease of $2.6 million from December 31, 2022[296]. - Available-for-sale marketable securities decreased by $34.2 million to $49.5 million as of June 30, 2023, due to sales and maturities[297]. - The company borrowed an additional $8.6 million from its investment margin account during the six months ended June 30, 2023, and repaid $41.8 million primarily with cash from sales and maturities of marketable securities[298]. - As of June 30, 2023, the company had current assets of $91.6 million and current liabilities of $77.2 million, resulting in working capital of $14.4 million, a decrease of $14.2 million from $28.6 million as of December 31, 2022[301]. - The company incurred interest expense on loans of $1.3 million for the six months ended June 30, 2023, compared to $0.2 million for the same period in 2022[298]. - The company had cash, cash equivalents, and restricted cash of $4.8 million as of June 30, 2023, down from $7.8 million as of June 30, 2022[303]. - The company has material cash requirements totaling approximately $67.2 million over the next five years, with about $38.4 million potentially due within one year if margin loans are called[310]. Corporate Actions - The company transferred its listing to NYSE American on June 26, 2023, trading under the new symbol "TOON" after voluntarily delisting from Nasdaq[260]. - A reverse stock split of 1-for-10 was executed on February 10, 2023, reducing the number of authorized common shares from 400 million to 40 million[270]. - The company is seeking shareholder approval for proposals to increase authorized shares and allow the issuance of additional shares upon warrant exercises at the annual meeting on August 25, 2023[271]. Employee and Organizational Information - As of June 30, 2023, the company employed 512 full-time employees and 44 independent contractors, focusing on a culture of diversity, equity, and inclusion[263]. Financial Covenants - The company was in technical violation of two financial covenants as of June 30, 2023, but continued to make regular principal and interest payments on time[299]. Noncash Expenses - The company reported net noncash expenses of $30.9 million for the six months ended June 30, 2023, compared to $11.9 million for the same period in 2022, with a significant increase attributed to warrant incentive expenses and impairment expenses[305]. Capital Expenditures - As of June 30, 2023, the company had $2.9 million in commitments for capital expenditures related to equipment leases[311].

Revenue Performance - Total revenue for the three months ended March 31, 2023, was $14,189,000, an increase of 885% compared to $1,441,000 for the same period in 2022[242]. - Production Services revenue reached $9,886,000, representing a 100% increase, while Content Distribution revenue surged by 697% to $3,301,000[242][244]. - Licensing & Royalties revenue increased by 12% to $46,000, primarily due to a new licensing agreement for certain Stan Lee Assets[245]. Expense Overview - Total expenses for the three months ended March 31, 2023, were $36,185,000, a 219% increase from $11,361,000 in the same period in 2022[247]. - Direct Operating Costs rose significantly by $11,287,000, primarily due to the acquisitions of Ameba, Wow, and Frederator[250]. - General and Administrative expenses decreased by $1,632,000, mainly due to a reduction in stock-based compensation and professional fees[251]. Employee and Corporate Actions - The company employed 715 full-time employees and 46 independent contractors as of March 31, 2023[233]. - The board of directors approved a 1-for-10 reverse stock split, reducing the number of authorized common stock shares from 400,000,000 to 40,000,000[240]. Content and Programming - The company has access to over 1,600 episodes through its investment in Your Family Entertainment, covering over 60 territories worldwide[227]. - The upcoming animated show "Shaq's Garage," featuring Shaquille O'Neal, is scheduled to debut in the second quarter of 2023[225]. Financial Charges and Cash Flow - The company recorded impairment charges totaling $15.5 million, including $11.3 million in goodwill and $2.8 million in definite-lived intangible assets for the three months ended March 31, 2023[252]. - Interest expense increased significantly to $1.1 million from $55,000, reflecting a 1,873% change year-over-year[253]. - The company reported a net cash used in operating activities of $4.8 million, an improvement of $606,000 compared to the previous year[264]. Cash and Securities - As of March 31, 2023, cash and cash equivalents decreased to $4.8 million, down $2.7 million from December 31, 2022[257]. - The fair value of available-for-sale marketable securities decreased to $69.7 million, a decline of $14.1 million compared to December 31, 2022[258]. - Working capital as of March 31, 2023 was $23.5 million, down from $28.6 million as of December 31, 2022, primarily due to decreased cash and marketable securities[260]. Noncash Expenses and Investments - The company incurred net noncash expenses of $21.4 million for the three months ended March 31, 2023, a significant increase from $0.5 million in the same period last year[265]. - Cash provided by investing activities was $14.6 million, a turnaround from cash used in investing activities of $3.2 million in the prior year[268]. Future Obligations - The company has future minimum purchase obligations of approximately $89.1 million, with about $60.8 million potentially due within one year[270]. - As of March 31, 2023, the margin loan balance was $48.9 million, down from $60.8 million as of December 31, 2022[259].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K Table of Contents x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 000-54389 GENIUS BRANDS INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 000-54389 GENIUS BRANDS INTERNATIONAL, INC. (Exact name of registrant as specified in it ...

Genius Brands International, Inc. (GNUS) Q2 2022 Earnings Conference Call August 17, 2022 12:00 PM ET Company Participants David Waldman - Investor Relations Andy Heyward - Chairman & Chief Executive Officer Michael Hirsch - Chief Executive Officer, WOW! Bob Denton - Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen. Thank you for standing by. Welcome to the Genius Brands International Second Quarter 2022 Business Update Call. At this time, all participants are in a listen-o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 000-54389 GENIUS BRANDS INTERNATIONAL, INC. (Exact name of registrant as specified in its cha ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: GENIUS BRANDS INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Nev ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 000-54389 GENIUS BRANDS INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-37950 GENIUS BRANDS INTERNATIONAL, INC. (Exact name of registrant as specified in it ...