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].

Acquisition and Partnerships - Genius Brands International, Inc. completed the acquisition of Wow Unlimited Media Inc. for $38.3 million in cash and 1,105,708 shares of common stock[26]. - Genius Brands has access to over 1,600 episodes from Germany's Your Family Entertainment, covering over 60 territories worldwide[19]. - The company produced 52 episodes of the preschool music series Ukulele U for the Canadian Broadcasting Corporation[29]. - The animated series Team Zenko Go! was delivered to Netflix, consisting of 44 episodes[30]. - As of December 31, 2022, the company has partnered with over 50 consumer products licensees and licensed content to over 40 broadcasters in more than 90 countries[51]. Financial Performance - For the year ended December 31, 2022, the company generated net revenues of $62.3 million and incurred a net loss of $44.5 million, compared to net revenues of $7.9 million and a net loss of $126.3 million in the previous year[78]. - Total revenue for the year ended December 31, 2022, was $62.3 million, a 691% increase from $7.9 million in 2021[162]. - Content Distribution revenue increased by 2,146% to $24.7 million, primarily due to acquisitions of Ameba, Wow, and Frederator, contributing an additional $23.9 million[164]. - Licensing & Royalties revenue rose by 77% to $2.8 million, driven by a new licensing agreement for Stan Lee Assets[165]. - Total expenses for 2022 were $106 million, up 48% from $71.6 million in 2021, with Direct Operating Costs increasing by $41.9 million due to acquisitions[167][170]. Stock and Shareholder Information - As of April 12, 2023, approximately 30,018,578 shares of common stock are free trading out of 32,059,657 shares issued and outstanding[138]. - The company underwent a reverse stock split of 1-for-10 on February 10, 2023, to regain compliance with Nasdaq's Minimum Bid Price Requirement[129]. - The company does not expect to pay dividends in the foreseeable future, with any return on investment limited to the appreciation of its common stock[135]. - The company is authorized to issue up to 10,000,000 shares of "blank check" preferred stock, which could adversely impact the rights of common stockholders[134]. - As of April 12, 2023, there were approximately 348 stockholders of record for the common stock[151]. Operational Challenges and Risks - The company has incurred net losses since inception, indicating potential financial instability[71]. - The company faces competition from major players in children's content, including Disney and Nickelodeon, which may affect its market position[50]. - The production of animated content is reliant on third-party studios, and any failures or delays could negatively affect profitability and market delivery[95]. - The company cannot assure that its original programming content will appeal to distributors and viewers, which could jeopardize future revenue streams[96]. - The company is exposed to significant risks due to international operations, including legal, regulatory, economic, and political risks[111]. Financial Obligations and Capital Structure - As of December 31, 2022, the company had production loan facility obligations of approximately $18.3 million and advances of $1.7 million under its senior secured revolving credit facility[118]. - The company also had an outstanding margin loan of $60.8 million secured by marketable investment securities as of December 31, 2022[118]. - The company has future minimum purchase obligations of approximately $103.4 million over the next five years, with about $74.3 million potentially due within one year[189]. - The company incurred indebtedness that could adversely affect its operations and financial condition, limiting its ability to refinance or obtain additional financing[119]. Tax and Regulatory Considerations - The company is subject to various regulations, including the Children's Online Privacy Protection Act (COPPA), which impacts its online distribution practices[52]. - The company is subject to ordinary course audits from the Canada Revenue Agency, which may impact the collectability of tax credit receivables[122]. - Changes in foreign, state, and local tax incentives may increase the cost of original programming, adversely affecting the company's financial condition[121]. - The company relies on refundable tax credits as a key component of production financing, with a normal operating cycle of 12 to 24 months for the collection of these credits[202]. Employee and Corporate Culture - The company employs 743 full-time employees and 57 independent contractors, focusing on a culture of diversity, equity, and inclusion[62]. - The company aims to create positive social impacts through its content, reflecting its commitment to social responsibility and corporate governance[60]. Market and Economic Conditions - Economic conditions, including a decrease in economic activity or increased price levels, could adversely affect demand for the company's products, reducing revenue and earnings[88]. - Revenues and results of operations may fluctuate significantly due to the appeal of content, timing of product releases, and commercial success, which are difficult to predict[82].

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 ...

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 June 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 its cha ...