Kartoon Studios, Inc.TOON
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Kartoon Studios, Inc. Lytham Partners 2026 Consumer & Technology Investor Summit

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Period 2026Duration34 minParticipants3

Transcript

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Robert BlumManaging Partner

All right, fantastic. Guys, thank you so much for your participation here in the summit and for the insights into Beyond Oil Ltd. Okay, up next, stick around because we're going to sit down with Andy Heyward, the Chairman and Chief Executive Officer, and Brian Parisi, the Chief Financial Officer at Kartoon Studios, to talk about the transformation taking place at the company. Please stick around. All right. Hello everyone, and welcome to the Kartoon Studios fireside chat. Kartoon Studios trades under the ticker symbol TOON on the NYSE American. Company is a global children's and family entertainment company, repositioning its business around the ownership and commercialization of highly valuable children's intellectual property.

Robert BlumManaging Partner

My name is Robert Blum, Managing Partner here at Lytham Partners, and up next here, I'll be moderating a Q&A discussion with the company's Chairman and Chief Executive Officer, Andy Heyward, and Brian Parisi, the company's Chief Financial Officer. All right, let's get started.

Andy HeywardChairman and CEO

Gentlemen, welcome. Thank you. Good to be here.

Robert BlumManaging Partner

Hi, Robert. Thank you. Fantastic.

Robert BlumManaging Partner

Andy and Brian, for those not familiar, please provide a brief background on yourselves.

Andy HeywardChairman and CEO

Would you like me to start?

Robert BlumManaging Partner

Yeah, Andy, why don't you begin?

Andy HeywardChairman and CEO

Okay. My name's Andy Heyward. I am a writer, creator, producer of children's content. I've been doing this my entire career. Over the years, I've either written, created, produced, and supervised programs ranging from "Scooby-Doo," "Alvin and the Chipmunks," "The Smurfs," "The Flintstones," "Inspector Gadget," "Sonic the Hedgehog," "Super Mario Bros.," "Strawberry Shortcake," "Care Bears," "Teddy Ruxpin," "The Legend of Zelda," "Captain Planet," "G.I. Joe," "Carmen Sandiego," "Madeline," and probably a dozen or so others. We produce the shows, we distribute the shows, sometimes on our own networks, and we do the consumer product licensing of the characters in the shows. That's how money is made. The characters create an appetite for the products, which are toys, video games, music, publishing, backpacks, sleepwear, school supplies, stationery, party goods, pretty much anything that you can think of. That's our business. My first company was called DIC Entertainment.

Andy HeywardChairman and CEO

I managed it for many years, eventually sold it to Disney, eventually started our company that we have here today, with a focus on bringing content with a purpose to children in the digital age. How children consume media today is quite different than they did 20 or 30 years ago, or even 10 years ago, when there were networks, there were children's cable networks. Today, kids consume media across streaming services, digital platforms of all kinds, all the new emerging media. But the essence of it is still telling good stories, having interesting characters, engaging children with things that we as a company can be prideful about, that's what we're doing.

Robert BlumManaging Partner

All right. Very good. Brian, yourself?

Brian ParisiCFO

Yeah. No, thank you, Robert, I always hate following that, but I'll certainly try here really quick. But yeah, thank you for this. For my background, I'm a CPA with over 30 years of experience in media entertainment, in both finance accounting, I really have had the great fortune opportunity to work for some of the largest entertainment brands in the world, going back to Warner Bros., Universal Studios, the Pro Football Hall of Fame, Live Nation. Kind of ran the gamut of different entertainment type of companies. Really my responsibility over that period of time, my remit is to create value for the company, value for the shareholders by really translating the creative energy of these companies into financial performance through financial discipline. Really the goal there is to create shareholder value for the investors or the shareholders.

Brian ParisiCFO

As Andy mentioned, we've really kind of galvanized the company around a strategy of really focusing on IP, a more durable financial entertainment model. Really, I think my breadth of experience really adds value to the focus, the goal is to get that done.

Robert BlumManaging Partner

All right, very good. Thank you both for that. Let's jump into Kartoon Studios in some more detail here. Andy, you sort of alluded to it briefly, but let's talk about the strategy and what has shifted over the past year or so.

Andy HeywardChairman and CEO

Okay. The first thing I have to do, because Brian is very modest and he neglected to say this, but he was named by the Los Angeles Business Journal last year as the Public Company CFO of the Year. I'm very proud of him and excited that he was able to receive that recognition. He's done an incredible job. We've been investing in our IP for the last few years, and we're coming to the place now where we are about to harvest that investment. The millions of dollars that we have placed into developing our infrastructure, developing the brands that we're bringing to the marketplace, has been done, and we're seeing now in this coming year, these properties are coming to the marketplace. You mentioned our changing of our strategy.

Andy HeywardChairman and CEO

We've done a lot of work for hire over the years, where we would produce shows that belong to somebody else. We know how to make hits. We build hits. We produced Cocomelon from our Canadian facility. We produced Barbie, the animated specials. We produced numbers of things for whether it's Disney or Mattel or Spin Master or YouTube or Netflix. That has been the core of our revenue. But we've made a re-evaluation of what our company is going to be, and we've migrated now to producing our own in-house owned products. That has required a lot of investment to get them to the place where they can now, as I say, be harvested, come to market, where we will have all the different products throwing off royalty income from them.

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