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Kartoon Studios, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $8,708,000 from $10,072,000 in the same quarter the previous year. The decrease is attributed to lower production services and content distribution revenue.
Production services revenue decreased by 23% due to a lower volume of active service production projects. Content distribution revenue decreased by 8% due to reduced advertising spending.
Licensing and royalties revenue decreased by 76% compared to the previous year, primarily due to higher royalties earned in the prior year.
Media advisory and advertising services revenue increased by 43%, attributed to higher renewal activity and media purchases from clients.
Total expenses decreased to $11,255,000 from $22,676,000, primarily due to a reduction in direct operating costs and general and administrative expenses.
Direct operating costs decreased by 57% due to lower salary costs and a reduction in participation estimates related to owned IP.
General and administrative expenses decreased by 40%, attributed to cost-saving initiatives and lower litigation expenses.
The company reported a net loss of $2,057,000 for the quarter, compared to a net loss of $15,476,000 in the previous year.
Kartoon Studios had a working capital of $3,500,000 as of September 30, 2024. The company acknowledges its dependence on additional capital to meet future obligations.
The filing also details various financial agreements, including amendments to the revolving demand facility and equipment lease agreements.
Kartoon Studios continues to focus on expanding its content distribution and production services, while exploring artificial intelligence tools to reduce costs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kartoon Studios Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.