Funko, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Funko, Inc. has filed its 2023 10-K report detailing its financial performance and business operations.</b>

AI Summary

Funko, Inc. (FNKO) filed a Annual Report (10-K) with the SEC on March 7, 2024. Funko, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 2802 Wetmore Ave, Everett, WA 98201. Funko, Inc. is incorporated in Delaware. The Standard Industrial Classification code for Funko, Inc. is 3944 (Games, Toys & Children's Vehicles).

Why It Matters

For investors and stakeholders tracking Funko, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Funko's financial health, operational strategies, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial data and disclosures within the 10-K allow stakeholders to understand the company's revenue streams, profitability, debt levels, and management's outlook, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — Funko, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to various market and operational risks detailed in the 10-K, which could impact its ability to achieve its financial goals.

Analyst Insight

Investors should carefully review the risk factors and financial statements in the 10-K to assess Funko's ability to navigate market challenges and achieve its strategic objectives.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240307 — Filing Date (Filed as of date)
• 3944 — SIC Code (Standard Industrial Classification)
• 001-38274 — SEC File Number (SEC file number)

Key Players & Entities

• Funko, Inc. (company) — Filer name
• 2802 WETMORE AVE (location) — Business address
• Everett (location) — Business address city
• WA (location) — Business address state
• 98201 (location) — Business address zip
• DE (location) — State of incorporation
• 3944 (industry_code) — Standard Industrial Classification
• 20231231 (date) — Conformed period of report

FAQ

Industry Context

Funko, Inc. operates within the Games, Toys & Children's Vehicles industry, focusing on the production and distribution of pop culture and entertainment-related collectibles.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit annual reports detailing their financial performance and business operations.

What Investors Should Do

1. Review Funko's 2023 financial statements for revenue, profitability, and cash flow trends.
2. Analyze the risk factors section to understand potential challenges and their impact on the company.
3. Examine any disclosures regarding executive compensation or significant corporate governance changes.

Year-Over-Year Comparison

This is the initial filing of the 2023 Form 10-K, providing the latest annual financial and operational data for Funko, Inc.

Key Financial Figures

• $0.0001 — hich registered Class A Common Stock, $0.0001 Par value FNKO The Nasdaq Stock Market
• $15 — accessible price point, generally under $15 for our figures, which allows our fans

Filing Documents

• fnko-20231231.htm (10-K) — 2107KB
• exhibit42.htm (EX-4.2) — 37KB
• ex-2112023.htm (EX-21.1) — 3KB
• ex-23110k2023.htm (EX-23.1) — 4KB
• ex-31110k2023.htm (EX-31.1) — 9KB
• ex-31210k2023.htm (EX-31.2) — 9KB
• ex-32110k2023.htm (EX-32.1) — 4KB
• ex-32210k2023.htm (EX-32.2) — 4KB
• exhibit971.htm (EX-97.1) — 34KB
• fnko-20231231_g1.jpg (GRAPHIC) — 12KB
• fnko-20231231_g2.jpg (GRAPHIC) — 65KB
• 0001704711-24-000013.txt (&nbsp;) — 10815KB
• fnko-20231231.xsd (EX-101.SCH) — 75KB
• fnko-20231231_cal.xml (EX-101.CAL) — 116KB
• fnko-20231231_def.xml (EX-101.DEF) — 406KB
• fnko-20231231_lab.xml (EX-101.LAB) — 857KB
• fnko-20231231_pre.xml (EX-101.PRE) — 675KB
• fnko-20231231_htm.xml (XML) — 1358KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 57

C

Item 1 C . Cybersecurity 57 Item 2.

Properties

Properties 59 Item 3.

Legal Proceedings

Legal Proceedings 59 Item 4. Mine Safety Disclosures 59 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 60 Item 6. [Reserved] 62 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 63 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 82 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 83 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 121 Item 9A.

Controls and Procedures

Controls and Procedures 121 Item 9B. Other Information 125

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 125 Part III Item 10. Directors, Executive Officers and Corporate Governance 126 Item 11.

Executive Compensation

Executive Compensation 126 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 126 Item 13. Certain Relationships and Related Transactions, and Director Independence 127 Item 14. Principal Accountant Fees and Services 127 Part IV Item 15. Exhibits and Financial Statement Schedules 128 Item 16. Form 10-K Summary 131 Table of Contents BASIS OF PRESENTATION As used in this Annual Report on Form 10-K (this "Form 10-K"), unless the context otherwise requires, references to: "we," "us," "our," the "Company," "Funko" and similar references refer: Funko, Inc., and, unless otherwise stated, all of its direct and indirect subsidiaries, including FAH, LLC. "ACON" refers to ACON Funko Investors, L.L.C., a Delaware limited liability company, and certain funds affiliated with ACON Funko Investors, L.L.C. (including each of the Former Equity Owners). " ACON Sale " refers to the sale by ACON and certain of its affiliates to TCG of an aggregate of 12,520,559 shares of our Class A common stock pursuant to a Stock Purchase Agreement, dated as of May 3, 2022, by and among ACON, certain affiliates of ACON and TCG . "Continuing Equity Owners" refers collectively to ACON Funko Investors, L.L.C., Fundamental, the Former Profits Interests Holders, certain former warrant holders and certain current and former executive officers, employees and directors and each of their permitted transferees, in each case, that own common units in FAH, LLC after our initial public offering ("IPO") and who may redeem at each of their options, their common units for, at our election, cash or newly-issued shares of Funko, Inc.'s Class A common stock. "FAH, LLC" refers to Funko Acquisition Holdings, L.L.C., a Delaware limited liability company. "FAH LLC Agreement" refers to FAH, LLC's second amended and restated limited liability company agreement, as amended from time to time. "Former Equity Owners" refers to those Original Equity Owners affiliated with ACON who tr

BUSINESS

ITEM 1. BUSINESS Overview Funko is a leading pop culture lifestyle brand . Our business is built on the belief that everyone is a fan of something, and Funko aims to have something for every fan. We create whimsical, fun and unique products that enable fans to express their affinity for their favorite "something"—whether it is a movie, TV show, video game, musician or sports team. We infuse our distinct designs and aesthetic sensibility into our extensive portfolio of licensed content over a wide variety of product categories, including figures, bags, wallets, apparel, accessories, plush, homewares, and digital non-fungible tokens ("NFTs"), which we make available at highly accessible price points under our Funko, Loungefly and Mondo brands. We believe we sit at the nexus of pop culture—content providers value us for our ability to connect fans to their properties with our creative products and broad distribution; retailers value us for our broad portfolio of licensed pop culture products that we can curate to resonate with their consumers; and consumers value us for our distinct, stylized products and the content they represent. We believe our innovative product design and market positioning have disrupted the licensed product markets and helped to define today's pop culture products category. The Pop Culture Industry Pop culture encompasses virtually everything that someone can be a fan of—movies, TV shows, anime, video games, music, sports, books and more. Pop culture fandom has evolved from niche communities around specific properties to having a broad presence in modern life. Today, there is more quality content than ever before and technology innovation has made that content accessible anytime, anywhere. Social media has further allowed for fans to share their love and form communities more easily than before. Everyday interactions at home, work or with friends, whether in person or through social media, are increasingly influenced by pop culture. The For

View Full Filing

View this 10-K filing on SEC EDGAR