Kartoon Studios, Inc. Lytham Partners Fall 2026 Investor Conference

All right. Hello, everyone, and thank you all for joining us during the Lytham Partners Fall 2026 Investor Conference. My name is Robert Blum, managing partner here at Lytham Partners. Up next, Andy Heyward, Chief Executive Officer, and Brian Parisi, Chief Financial Officer at Kartoon Studios, will be taking us through a brief slide presentation. All right, let's get started. Andy, Brian, welcome. The floor is all yours.

Yeah. Thank you to Lytham Partners. Thank you for this and appreciate it. Yeah, I think we have some really exciting and good news to share with you. I'm Brian Parisi, the CFO of Kartoon Studios, and with me, as you said, is Andy Heyward, the CEO and creative energy of Kartoon Studios. We're in an ever-changing and rapidly changing media and entertainment landscape, and we are shifting our focus to align with that better for future success. We're going to take you through that today, and we have some really exciting elements that we're going to share with you today during the presentation. This one, our lawyers tell me this is necessary and required. This is our disclosure, and we will be talking about forward-looking, or we'll make comments on forward-looking statements, so please take a second to review this.

It's fairly standard, but it'll be important for this presentation. Look, let me get into why we think that we're better positioned for the changing media and entertainment landscape, and there's really a number of things that I think are going to take us there. I think what's most important is Kartoon Studios, we are a micro-cap company in the entertainment space, and we can move quickly and rapidly as the business changes, way more so than some of our larger counterparts and competitors in the business. I think there's really six items that really position us better than others to really capitalize on that shifting landscape.

One is we are making now a deliberate pivot from doing IP work for others and do it ourselves, and actually own the economics of really great intellectual property for its life, versus do it for others and then we move on, and they make all the money, and we are stuck with an okay margin. So we're looking to change that narrative for the company. As part of that, we have a number of tentpoles or anchor franchises that we'll talk about, and we're really excited about the way it's going to fit into today's taste for kids' animation today. The third item is we have our own distribution channels and streaming channels out there, but we're also partnering with the likes of Amazon, that has incredible reach, not only globally, but here in the U.S. We'll talk a little bit more on that.

Number 4 is our balance sheet is way stronger now than it was before. We just received. Now we have over $40 million of excess cash on our balance sheet today as of our Q2 filing, and we look to deploy that capital in a very constructive and thoughtful way, again, to grow our IP into the future. Our fifth item is we have really focused in on making us a lean organization that can scale quickly and easily without a lot of baggage, financial baggage, as we look to do that. Our costs are down 32% year-over-year, and if you look even from 2025 to 2024, it was a massive reduction as well. We have done a really good job being lean, and then as we scale, we will reap the benefits of that.

Lastly, and we will talk a little bit about that today, is we have a leadership team and an executive team, and really, Andy is built around Kartoon Studios. Not just our board of directors, but our executive team, the people that we have hired. It is really world-class across our experience in media and entertainment. Let me turn this over to Andy to give a little bit more of his background.

Thank you, Brian. I am going to share a little bit, of course, about myself. Before doing that, I do want to embellish a little bit what you said. We have $40 million of cash now. That is going to be going up to $55 million to $60 million of cash as we receive the final amount of our recent settlement that we had in a legal matter in our favor. We have an extraordinary balance sheet, and we also have no long-term debt at all. We are basically a lot of cash, no debt, and it was all non-dilutive cash that came into the company. We are excited about that. Let us talk about what we do, who am I, and our team here. Obviously, we make cartoons, but we do much more than make cartoons.

We create cartoons that we distribute worldwide to broadcasters and streamers, and we do the licensing of the consumer products from those characters. I will go back to the beginning. I began my career working in Hanna-Barbera. I was a young writer working for Joe Barbera, learning my craft. I worked on shows like Scooby-Doo, The Smurfs, The Flintstones, Yogi Bear, Huckleberry Hound, all of the old Hanna-Barbera cartoons. What is notable there is if you see the picture of Fred Flintstone on your screen, Fred Flintstone is a wonderful example. It was created in the 1960s. You can go today to any supermarket anywhere, and you can still buy Pebbles and Bamm-Bamm cereal. You can go to any drugstore and still get Flintstones Vitamins. The point is very simple. When an animated program is successful, the characters lend themselves to merchandising on every possible type of product.

The Flintstones is a great example, but there are endless examples of this, and that is what is the core of our business. We create the cartoons, we distribute them on platforms around the world, and then we license our characters onto products from which we are paid. Okay. Let me tell you a little bit about myself. I've made over 6,000 half hours of cartoons. I think I can say I've done more animated programs than anybody, anywhere. They go back to Inspector Gadget, Alvin and the Chipmunks, Dennis the Menace, Heathcliff, Captain Planet, Ghostbusters, G.I. Joe, Super Mario Bros., Sonic the Hedgehog, Teddy Ruxpin, Strawberry Shortcake, Care Bears, Sabrina the Teenage Witch, The Archies, Teddy Ruxpin, many others. This is what I do. It's all I've ever done my whole career is I make cartoons.