Wed, May 15, 12:29 PM (220 days ago)
Kartoon Studios, Inc. (formerly Genius Brands International, Inc.) reported a significant decline in revenue and a narrower net loss for the quarter ended March 31, 2024. Total revenue dropped by 57% year-over-year to $6.1 million, driven by a 72% decrease in Production Services revenue and a 29% decline in Content Distribution revenue. The decrease in revenue was attributed to fewer active service production projects and lower viewership and advertising rates on Frederator’s multi-channel network. Operating expenses fell by 66% to $12.4 million, primarily due to reductions in share-based compensation, production costs, and the absence of prior-year impairment charges. The net loss narrowed to $7.1 million from $23.9 million in the prior year. Cash decreased by $1.3 million to $2.8 million, with $3.8 million provided by operating activities and $7.9 million used in financing activities. The company has sufficient liquidity, including $9.4 million in marketable securities, to meet its obligations for the next 12 months. Future operations will focus on leveraging AI tools to reduce costs and maximizing the potential of its IP assets.