Celebrities and Close Friends Among Those to Remember the Legendary Creator Through Social Media Fans From Across the World are Encouraged to Post Their Tributes to Stan Lee Social Media Accounts on X, Instagram and TikTok Celebration Anticipates Excitement of ‘Stan Lee Universe' and Coming of "The Excelsiors" BEVERLY HILLS, Calif., Dec. 26, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE:TOON), the controlling partner of Stan Lee Universe, proudly announces a global online celebration to honor the 102nd bir ...

BEVERLY HILLS, Calif., Dec. 16, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE:TOON) today announced that it has entered into a securities purchase agreement with a certain institutional investor to purchase (i) 7,894,736 shares of its common stock or pre-funded warrants in lieu thereof, (ii) Series A common warrants to purchase up to an aggregate of 7,894,736 shares of its common stock (the "Series A Warrants") and (iii) Series B common warrants to purchase up to an aggregate of 7,894,736 shares of its com ...

Core Insights - Kartoon Studios, in partnership with VeVe and Multiverse Clothing Company, launched a series of limited-edition fine art digital and apparel collectibles featuring Stan Lee [1][8][19] Company Overview - Kartoon Studios (NYSE:TOON) is a comprehensive creator, producer, distributor, marketer, and licensor of entertainment brands, with a diverse IP portfolio including original animated content [3][10] - VeVe, founded in 2018, is a leading mobile-first digital collectibles platform, having sold over 10 million digital collectibles and ranking among the top-grossing entertainment apps [4] - Multiverse Clothing Company Inc. focuses on innovative ways to monetize IP in both physical and digital realms, enhancing the fan experience [23] Product Launch Details - The first drop includes exclusive 'phygital' collections blending fine art with smart fashion, showcased at San Diego Comic-Con [7][19] - The apparel includes limited-edition items such as hoodies (MSRP: $99.00), suede bomber jackets (MSRP: $149.99), and leather jackets (MSRP: $250.00) [7][8] - Each apparel piece comes with an Easter Egg that unlocks access to exclusive digital collectibles, including artist-signed physical portraits [12][18] Strategic Partnerships - The collaboration aims to honor Stan Lee's legacy while providing fans with unique collectibles and clothing designed by renowned pop culture artists [8][19] - The partnership leverages blockchain and augmented reality technologies to enhance user engagement with digital collectibles [14][22] Market Position - Kartoon Studios has expanded its reach by acquiring WOW! Unlimited Media and becoming the largest shareholder in Your Family Entertainment AG, enhancing its distribution capabilities [10] - VeVe's platform utilizes Ethereum's layer 2 scaling protocol, Immutable X, allowing for over 9,000 trades per second with zero gas fees, significantly reducing environmental impact [14]

PROFITABILITY TREND IN Q2 2024 CONTINUES BUILDING ON GAINS FROM 2023 AND Q1 2024 Premier Entertainment Destination for Kids, Now Carried on 16 Platforms in US; Goal of Growing into a 'Netflix for Kids' Becoming a Reality As previously announced, after four years of investment in content, infrastructure, and marketing, Kartoon Channel! reached breakeven at the end of 2023 and became profitable in Q1 2024. Kartoon Channel!'s paid subscriber growth on Amazon Prime Video surged by 120% from June 2023 – June 202 ...

Core Points - Kartoon Studios announced a new production titled "Kartoon Studio's Winnie-The-Pooh" and secured $30 million in nondilutive production financing led by Catalyst Venture Partners [1] - The company has a diverse IP portfolio that includes original animated content featuring well-known brands and personalities [2] - In 2022, Kartoon Studios acquired WOW! Unlimited Media and became the largest shareholder in Your Family Entertainment AG, enhancing its position in the animation industry [3] - The company's digital distribution network, Toon Media Networks, includes Kartoon Channel!, Frederator Network, and Ameba, providing extensive reach across various platforms [4]

BEVERLY HILLS, Calif., June 24, 2024 (GLOBE NEWSWIRE) -- Following Kartoon Studios' (NYSE:TOON) landmark announcement last week regarding the 2025 Christmas Eve premiere of "Kartoon Studio's Winnie-The-Pooh," the company today announced a team of proven executives to drive the development, production, retail, and global distribution strategy for the property. The development, production, and growth of the property is funded by a non-dilutive production financing of $30 million, led by Catalyst Venture Partn ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): June 21, 2024 KARTOON STUDIOS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation Nevada 001-37950 20-4118216 (Commission File Number) (I.R.S. Employer Identification No.) 190 N. Canon Drive, 4th Fl., Beverly Hills, CA 90210 (Address of princ ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, highlighting decreased revenues but a significantly improved net loss due to lower impairment charges Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $41,011 | $57,109 | | **Total Assets** | **$93,330** | **$111,436** | | **Total Current Liabilities** | $34,885 | $45,640 | | **Total Liabilities** | $46,856 | $58,175 | | **Total Stockholders' Equity** | **$46,474** | **$53,261** | Condensed Consolidated Statement of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total Revenues** | **$6,078** | **$14,189** | | Total Operating Expenses | $12,372 | $36,185 | | Loss from Operations | $(6,294) | $(21,996) | | **Net Loss Attributable to Kartoon Studios, Inc.** | **$(7,045)** | **$(23,828)** | | Net Loss per Share (Basic & Diluted) | $(0.20) | $(0.74) | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $3,845 | $(5,165) | | Net Cash Provided by Investing Activities | $2,560 | $14,648 | | Net Cash Used in Financing Activities | $(7,891) | $(12,157) | | **Net Decrease in Cash** | **$(1,332)** | **$(2,667)** | | **Ending Cash** | **$2,763** | **$4,765** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's structure, IP holdings, liquidity assessment, and a post-quarter capital raise, alongside segment performance - The company is a **global content and brand management company** that creates, produces, licenses, and broadcasts multimedia animated content for children, owning **significant IP**, including a controlling interest in **Stan Lee Universe, LLC**[27](index=27&type=chunk)[31](index=31&type=chunk) - Despite a **net loss of $7.1 million** for the quarter and an accumulated deficit of **$725.6 million**, management has concluded that the company has **sufficient marketable securities and investments** to fund operations for the **next 12 months**[42](index=42&type=chunk) - Subsequent to the quarter end, on **April 23, 2024**, the company completed an initial closing of a **registered direct offering**, selling **3.9 million shares** of common stock and **100,000 pre-funded warrants** for aggregate gross proceeds of approximately **$4.0 million**[34](index=34&type=chunk)[127](index=127&type=chunk) Revenue and Net Loss by Operating Segment (in thousands) | Segment | Revenue Q1 2024 | Revenue Q1 2023 | Net Loss Q1 2024 | Net Loss Q1 2023 | | :--- | :--- | :--- | :--- | :--- | | Content Production & Distribution | $5,192 | $13,233 | $(6,739) | $(23,274) | | Media Advisory & Advertising Services | $886 | $956 | $(306) | $(554) | | **Total** | **$6,078** | **$14,189** | **$(7,045)** | **$(23,828)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section analyzes Q1 2024 financial results, noting a significant revenue decrease offset by reduced operating expenses due to non-recurring impairment charges, and discusses liquidity [Business Overview and Strategy](index=31&type=section&id=MD%26A%20-%20Business%20Overview%20and%20Strategy) This section outlines the company's strategic focus across its four business segments, emphasizing content distribution scaling, production efficiency, Stan Lee IP leverage, and media advisory expansion - Content Distribution: Focus on **scaling networks** like Kartoon Channel! and Frederator, and using **AI tools** to **reduce operating costs** such as dubbing and video upscaling[133](index=133&type=chunk) - Production Services: Mainframe Studios is adopting a more **flexible approach** by collaborating with **outsource partners** and utilizing **AI to streamline processes**[134](index=134&type=chunk) - Licensing & Royalties: The company sees **significant potential** in its **Stan Lee assets** to drive both digital and physical consumer products[135](index=135&type=chunk) [Results of Operations](index=32&type=section&id=MD%26A%20-%20Results%20of%20Operations) Q1 2024 total revenue decreased by 57% to $6.1 million, primarily due to a 72% decline in Production Services, while total operating expenses decreased by 66% due to non-recurring impairment charges Revenue by Segment (in thousands) | Revenue Source | Q1 2024 | Q1 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Production Services | $2,763 | $9,886 | $(7,123) | (72)% | | Content Distribution | $2,329 | $3,301 | $(972) | (29)% | | Licensing & Royalties | $100 | $46 | $54 | 117% | | Media Advisory & Advertising Services | $886 | $956 | $(70) | (7)% | | **Total Revenue** | **$6,078** | **$14,189** | **$(8,111)** | **(57)%** | Operating Expenses (in thousands) | Expense Category | Q1 2024 | Q1 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Marketing and Sales | $444 | $245 | $199 | 81% | | Direct Operating Costs | $4,325 | $11,285 | $(6,960) | (62)% | | General and Administrative | $7,603 | $9,225 | $(1,622) | (18)% | | Impairment of Property and Equipment | $– | $120 | $(120) | (100)% | | Impairment of Intangible Assets | $– | $4,023 | $(4,023) | (100)% | | Impairment of Goodwill | $– | $11,287 | $(11,287) | (100)% | | **Total Expenses** | **$12,372** | **$36,185** | **$(23,813)** | **(66)%** | [Liquidity and Capital Resources](index=34&type=section&id=MD%26A%20-%20Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held $2.8 million in cash and $9.4 million in marketable securities, with improved operating cash flow, and management believes these resources are sufficient for the next twelve months - As of March 31, 2024, the company had cash of **$2.8 million** and available-for-sale marketable securities with a fair value of **$9.4 million**[147](index=147&type=chunk)[148](index=148&type=chunk) - Working capital was **$6.1 million** as of March 31, 2024, compared to **$11.5 million** as of December 31, 2023, with the decrease primarily due to a **decrease in the cash and marketable security position**[152](index=152&type=chunk) Comparison of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $3,845 | $(5,165) | | Net Cash Provided by Investing Activities | $2,560 | $14,648 | | Net Cash Used in Financing Activities | $(7,891) | $(12,157) | [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk - As a "**smaller reporting company**," the company is **not required** to provide quantitative and qualitative disclosures about market risk[167](index=167&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls were effective, but internal controls over financial reporting were not due to identified material weaknesses, for which a remediation plan is underway - Management concluded that disclosure controls and procedures were **effective** for the quarter ended March 31, 2024[168](index=168&type=chunk) - Management concluded that internal controls over financial reporting were ***not* effective** as of March 31, 2024, due to identified **material weaknesses**[172](index=172&type=chunk) - Material weaknesses identified include: **inadequate design of user access controls and segregation of duties**; **lack of specialized experts for income tax**; and **inappropriate application of accounting standards for warrant modifications**[173](index=173&type=chunk)[176](index=176&type=chunk) - A **remediation plan is in process**, which includes enhancing review procedures, reorganizing the accounting team, implementing new financial systems, and improving documentation and oversight[174](index=174&type=chunk)[177](index=177&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in several legal proceedings, including a securities class action lawsuit with a recent appellate reversal, related stayed derivative lawsuits, and a separate short-swing profits action - In a **securities class action lawsuit**, an **Appellate Court affirmed in part and reversed in part** a prior dismissal, remanding the matter to the U.S. District Court for further proceedings on the plaintiffs' remaining claims[183](index=183&type=chunk) - Several **stockholder derivative lawsuits remain stayed** pending the outcome of the securities class action[184](index=184&type=chunk) - The company is a **nominal defendant** in an action seeking recovery of alleged **short-swing profits** from certain investors under Section 16(b) of the Exchange Act, and **discovery is now open** after the court denied a motion to dismiss[185](index=185&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - There have been **no material changes** to the Risk Factors set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2023[187](index=187&type=chunk) [Other Disclosures (Items 2-6)](index=40&type=section&id=Other%20Disclosures%20%28Items%202-6%29) This section confirms no unregistered equity sales, no defaults on senior securities, no mine safety disclosures, and no Rule 10b5-1 trading arrangement changes by directors or officers - Item 2: **No unregistered sales of equity securities** and use of proceeds[188](index=188&type=chunk) - Item 3: **No defaults upon senior securities**[189](index=189&type=chunk) - Item 5: During the quarter, **none of the Company's directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement**[191](index=191&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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 other juris ...

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 ...