Kartoon Studios (TOON) Changes Certifying Accountant

TL;DR

**TOON is switching auditors, keep an eye out for more details.**

AI Summary

Kartoon Studios, Inc. (TOON) announced on January 24, 2024, that it is changing its certifying accountant. This is a standard disclosure for public companies and doesn't immediately signal financial distress, but investors should monitor future filings for any related issues. This matters to shareholders because changes in auditors can sometimes indicate underlying financial reporting concerns, though in this case, no specific reason for the change was provided in the filing.

Why It Matters

A change in a company's auditor can sometimes be a red flag, potentially indicating disagreements over accounting practices or financial reporting issues, which could impact investor confidence.

Risk Assessment

Risk Level: low — The filing only states a change in accountant without providing a reason, which is a common occurrence and not inherently high-risk.

Analyst Insight

Investors should note the change in auditor and monitor future filings for any disclosures regarding disagreements with the former accountant or any restatements of financial results, which could indicate deeper issues.

Key Numbers

• $0.001 — par value per share (the par value of Kartoon Studios, Inc. Common Stock)

Key Players & Entities

• Kartoon Studios, Inc. (company) — the registrant filing the 8-K
• TOON (company) — the trading symbol for Kartoon Studios, Inc.
• January 24, 2024 (date) — the date of the earliest event reported in the 8-K
• Nevada (company) — state of incorporation for Kartoon Studios, Inc.
• 001-37950 (company) — Commission File Number for Kartoon Studios, Inc.
• 20-4118216 (company) — I.R.S. Employer Identification No. for Kartoon Studios, Inc.
• 190 N. Canon Drive, 4th Fl., Beverly Hills, CA 90210 (company) — address of principal executive offices for Kartoon Studios, Inc.
• 310-273-4222 (company) — telephone number for Kartoon Studios, Inc.
• Common Stock, par value $0.001 per share (dollar_amount) — description of the class of securities registered
• NYSE American LLC (company) — exchange on which Kartoon Studios, Inc. Common Stock is registered

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share TOON NYSE American LLC Indi

Filing Documents

• toon-20240124.htm (8-K) — 31KB
• kartoon_ex161.htm (EX-16.1) — 3KB
• 0001355848-24-000015.txt ( ) — 158KB
• toon-20240124.xsd (EX-101.SCH) — 2KB
• toon-20240124_lab.xml (EX-101.LAB) — 23KB
• toon-20240124_pre.xml (EX-101.PRE) — 12KB
• toon-20240124_htm.xml (XML) — 3KB

01 Changes in Registrant ' s Certifying Accountant

Item 4.01 Changes in Registrant ' s Certifying Accountant (a) Replacement of Independent Registered Public Accounting Firm The audit committee (the "Audit Committee") of the board of directors of Kartoon Studios, Inc. (the "Company") dismissed Mazars USA LLP ("Mazars") as the Company's independent registered public accounting firm on January 24, 2024, and approved replacing them with WithumSmith+Brown, PC ("Withum") on January 29, 2024, at a significant cost savings to what the Company had been paying previously to Mazars. As previously reported, Mazars was appointed as the Company's independent registered public accounting firm on October 25, 2023. Because Mazars was appointed on October 25, 2023, after the filing of the Company's most recent annual report on Form 10-K, Mazars has not issued any reports on the Company's financial statements for the past two fiscal years. Accordingly, Mazars did not issue any reports during such time that contained an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles. Furthermore, for the period from October 25, 2023 through January 24, 2024, there were no disagreements between the Company and Mazars on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to Mazars's satisfaction, would have caused Mazars to make reference to the subject matter of the disagreements in connection with its reports on the Company's financial statements for such periods. For the period from October 25, 2023 through January 24, 2024, there were no "reportable events" as that term is described in Item 304(a)(1)(v) of Regulation S-K. In accordance with Item 304(a)(3) of Regulation S-K, the Company provided Mazars with a copy of the disclosures in this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission (the "Commission") and requested Mazars furn

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibits. The exhibit listed in the following Exhibit Index is filed as part of this Current Report on Form 8-K. Exhibit No. Description 16.1 Letter from Mazars USA LLP, dated January 30 , 2024 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL 3

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KARTOON STUDIOS, INC. Date: January 30, 2024 By: /s/ Andy Heyward Name: Andy Heyward Title: Chief Executive Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR