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

TL;DR

<b>Kartoon Studios, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Kartoon Studios, Inc. (TOON) filed a Annual Report (10-K) with the SEC on April 9, 2024. Kartoon Studios, Inc. (formerly Genius Brands International, Inc.) filed its 2023 10-K report on April 9, 2024. The company's fiscal year ends on December 31st. Kartoon Studios operates in the Services-Motion Picture & Video Tape Production industry. The company's principal business address is 190 N. Canon Street, 4th Floor, Beverly Hills, CA 90210. The filing covers the fiscal year ended December 31, 2023.

Why It Matters

For investors and stakeholders tracking Kartoon Studios, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kartoon Studios' financial health, operational activities, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. Understanding the details within this filing is important for stakeholders to evaluate the company's revenue streams, profitability, assets, liabilities, and any potential risks or opportunities identified by management.

Risk Assessment

Risk Level: medium — Kartoon Studios, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to the inherent risks of the entertainment and media industry, including competition, changing consumer preferences, and the success of content production and distribution, as detailed in the 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Kartoon Studios' operational performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-04-09 — Filing Date (Date of submission)
• 7812 — SIC Code (Services-Motion Picture & Video Tape Production)
• 001-37950 — SEC File Number (Company's SEC filing number)

Key Players & Entities

• Kartoon Studios, Inc. (company) — Filer name
• Genius Brands International, Inc. (company) — Former company name
• PACIFIC ENTERTAINMENT CORP (company) — Former company name
• BEVERLY HILLS (company) — City in business address
• CA (company) — State in business address
• NV (company) — State of incorporation

FAQ

Industry Context

Kartoon Studios operates within the entertainment sector, specifically focusing on motion picture and video tape production, content distribution, licensing, and advertising services.

Regulatory Implications

As a publicly traded company, Kartoon Studios is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the consolidated financial statements for the fiscal year ended December 31, 2023.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations section for insights into performance drivers.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-04-09: Filing Date — Date Kartoon Studios, Inc. submitted its 2023 Form 10-K.

Year-Over-Year Comparison

This is the initial 10-K filing for Kartoon Studios, Inc. under its current name, covering the fiscal year 2023. Previous filings were under the name Genius Brands International, Inc.

Key Financial Figures

• $0.001 — ere registered Common Stock, par value $0.001 per share TOON The NYSE American Secu
• $1.91 — an affiliate) computed by reference to $1.91 per share as of the last business day o
• $23.70 — xercise price of the 2021 Warrants from $23.70 per share (as adjusted pursuant to a 1-
• $2.50 — stock effected on February 10, 2023) to $2.50 per share pursuant to the terms of the
• $0.01 — the right to receive an amount equal to $0.01 in cash for each ten whole shares of Se

Filing Documents

• toon-20231231.htm (10-K) — 2197KB
• ex1022amendmentno3tothea.htm (EX-10.22) — 1KB
• ex211toonlistofsubsidiaries.htm (EX-21.1) — 5KB
• ex231consentofwithumsmithb.htm (EX-23.1) — 2KB
• ex232consentofbakertillyus.htm (EX-23.2) — 2KB
• ex311toon20231231.htm (EX-31.1) — 10KB
• ex312toon20231231.htm (EX-31.2) — 10KB
• ex321toon20231231.htm (EX-32.1) — 4KB
• ex322toon20231231.htm (EX-32.2) — 4KB
• ex971kartoonstudiosinccl.htm (EX-97.1) — 17KB
• ex1022amendmentno3tothea001.jpg (GRAPHIC) — 108KB
• ex971kartoonstudiosinccl001.jpg (GRAPHIC) — 253KB
• ex971kartoonstudiosinccl002.jpg (GRAPHIC) — 281KB
• ex971kartoonstudiosinccl003.jpg (GRAPHIC) — 230KB
• ex971kartoonstudiosinccl004.jpg (GRAPHIC) — 238KB
• ex971kartoonstudiosinccl005.jpg (GRAPHIC) — 123KB
• ex971kartoonstudiosinccl006.jpg (GRAPHIC) — 105KB
• 0001355848-24-000052.txt (&nbsp;) — 14739KB
• toon-20231231.xsd (EX-101.SCH) — 94KB
• toon-20231231_cal.xml (EX-101.CAL) — 151KB
• toon-20231231_def.xml (EX-101.DEF) — 574KB
• toon-20231231_lab.xml (EX-101.LAB) — 1069KB
• toon-20231231_pre.xml (EX-101.PRE) — 840KB
• toon-20231231_htm.xml (XML) — 1732KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 21 Item 3.

Legal Proceedings

Legal Proceedings 21 Item 4. Mine Safety Disclosures 22 PART II. Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. [Reserved] 24 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 25 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 37 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 37 Item 9A.

Controls and Procedures

Controls and Procedures 38 Item 9B. Other Information 40 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 40 PART III. Item 10. Directors, Executive Officers and Corporate Governance 40 Item 11. Executive Officer and Director Compensation 47 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 47 Item 13. Certain Relationships and Related Transactions, and Director Independence 49 Item 14. Principal Accounting Fees and Services 51 PART IV. Item 15. Exhibits, Financial Statement Schedules 53 Item 16. Form 10-K Summary 55

Signatures

Signatures 56 1 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (including the section regarding Management's Discussion and Analysis and Results of Operation) contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations thereof are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this Annual Report on Form 10-K. Additionally, statements concerning future matters are forward-looking statements. These statements include, among other things, statements regarding: Our ability to generate revenue or achieve profitability Our ability to obtain additional financing on acceptable terms, if at all Fluctuations in the results of our operations from period to period General economic and financial conditions; the adverse effects of public health epidemics on our business, results of operations and financial condition Our ability to anticipate changes in popular culture, media and movies, fashion and technology Competitive pressure from other distributors of content and within the retail market Our reliance on and relationships with third-party production and animation studios Our ability to market and advertise our products Our reliance on third parties to promote our products Our ability to keep pace with technological advances Performance of our information technology and storage systems A disruption or breach of our internal computer systems Our ability to retain key personnel Our ability to successfully identify appropriate acquisition targets, successfully acquire identified targets and successfully integrate the business of acquired companies The impact of federal, state or local regulations on us or

Business

Item 1. Business Overview Kartoon Studios, Inc. (formerly known as Genius Brands International, Inc.) (the "Company" or "we," "us" or "our") is a global content and brand management company that creates, produces, licenses, and broadcasts timeless and educational, multimedia animated content for children. Led by experienced industry personnel, we distribute our content primarily on streaming platforms and television, and licenses properties for a broad range of consumer products based on our characters. We are a "work for hire" producer for many of the streaming outlets and animated content intellectual property ("IP") holders. In the children's media sector, our portfolio features "content with a purpose" for toddlers to tweens, providing enrichment as well as entertainment. With the exception of selected WOW Unlimited Media Inc. ("Wow") titles, our programs, along with licensed programs, are being broadcast in the United States on our wholly-owned advertisement supported video on demand ("AVOD") service, our free ad supported TV ("FAST") channels and subscription video on demand ("SVOD") outlets, Kartoon Channel! and Ameba TV, as well as linear streaming platforms . These streaming platforms include Comcast, Cox, DISH, Sling TV, Amazon Prime Video, Amazon Fire, Roku, Apple TV, Apple iOS, Android TV, Android mobile, Pluto TV, Xumo, Tubi, YouTube, YouTube Kids and via KartoonChannel.com, as well as Samsung and LG smart TVs. Our in-house owned and produced animated shows include Stan Lee's Superhero Kindergarten starring Arnold Schwarzenegger, Llama Llama starring Jennifer Garner, Rainbow Rangers, KC Pop Quiz and Shaq's Garage starring Shaquille O'Neal. Our library titles include the award-winning Baby Genius , adventure comedy Thomas Edison's Secret Lab, and Warren Buffett's Secret Millionaires Club , created with and starring iconic investor Warren Buffett, Team Zenko Go!, Reboot , Bee & PuppyCat: Lazy in Space and Castlevania . We also license our programs to o

View Full Filing

View this 10-K filing on SEC EDGAR