Kartoon Studios Inc 2025年度报告

Letter to Shareholders August 2026 DEAR FELLOW SHAREHOLDERS, For many years, I created the animated movie that opened the annual BerkshireHathaway shareholders meeting, and have had the privilege of producing ananimated series for children with Warren Buffett called Secret Millionaires Club.Warren often reminded young viewers that success is rarely built overnight.Itcomes from patience, discipline, sound judgment, and the willingness to plantseeds whose shade you may not enjoy for many years. That lesson has stayed with me throughout my career, and it is especially relevantto Kartoon Studios today. For much of my professional life, I have been fortunate to work alongside some ofthe most accomplished visionaries in entertainment. I learned storytelling from Joe Barbera at Hanna-Barbera, where I had theprivilege of sitting at the feet of a master, who created such greats as YOGI BEAR,SCOOBY DOO, and THE FLINTSTONES. Joe taught me how to tell a story, how todevelop characters, and how to understand the simple truth that greatentertainment begins with great storytelling. I worked closely with Ted Turner in creating and producing Captain Planet, afranchise born from his passion for environmental stewardship and his belief thatchildren's entertainment could help improve the world. Though we lost Ted thispast year, his vision and friendship remain among the treasures of my career. I was equally fortunate to spend many years alongside the legendary Stan Lee,whose imagination gave the world Spider-Man, Iron Man, the Avengers, BlackPanther, Fantastic Four, and countless other iconic creations. Today, through ourstewardship of the Stan Lee Universe, we are entrusted with preserving andextending one of the most significant creative legacies in entertainment history.Itis a responsibility we take seriously and a privilege we treasure. Over the course of my career, I have created, produced, written, or supervised morethan 6,000 animated episodes. The lessons I learned from these remarkableindividuals remain at the core of everything we do at Kartoon Studios today. Most importantly, they taught me something that is perhaps more relevant todaythan ever before:Most importantly, they tyyaught me something that is perhaps more rrrelevrrant todaythan ever beforff e:r Great intellectual property is rare.Great intellectual property is rare. A successful television series is valuable.A successful television series is valuable. A hit movie is valuable.A hit movie is valuable. But a franchise that can endure across generations, across product categories,across platforms, and across global markets is something entirely different.But a franchise that can endure across generations, across product categories,across platforms, and across global markets is something entirely different. Those assets are exceedingly rare.Those assets are exceedingly rare. That has been our mission at Kartoon Studios: to build enduring intellectualproperty capable of creating value for decades.That has been our mission at Kartoon Studios: to build enduring intellectualproperty capable of creating value for decades. FROM INVESTMENT TOOPPORTUNITY Over the last several years, we have been building. We invested in intellectual property.We invested in production capabilities.We invested in distribution.We invested in licensing, consumer products, technology, infrastructure, and talent. Those investments were not made to generate short-term excitement. They weremade to create long-term shareholder value. While that journey required patience, it has transformed Kartoon Studios into afundamentally stronger company. Today, we enter our next chapter from a position of considerable financial strength.We have built a balance sheet with more than $40 million in cash and no long-termdebt. In an industry where many companies are burdened by long-term debt and leverage,or restricted by capital limitations, we enjoy something increasingly uncommon:flexibility. Flexibility to invest.Flexibility to pursue strategic opportunities.Flexibility to think long term. Many companies possess capital but lack meaningful brands.Others possess great brands but lack the resources to fullyexploit them. We believe Kartoon Studios is becomingdistinguished by having both.ands.llys. A strong balance sheet.Valuable intellectual property.Growing distribution.Expanded licensing opportunities. And a pipeline of new franchises we believe cancreate meaningful value for years to come.years to come. BUILDING A TEAM FORTHE NEXT CHAPTER While intellectual property is the foundation of our business, history teaches usthat great brands alone do not create great companies. Great execution does. During the past year, we were extremely fortunate to welcome Jeffrey Schlesingerto our Board of Directors. Jeff joins us following an extraordinary twenty-five-year careerat Warner Bros., where he served as President of WorldwideTelevision. During his tenure, Jeff oversaw a business u