IP‑Driven Growth

Kartoon Studios, Inc. (NYSE American:TOON) has made significant strides in transforming its business model, with a focus on owning, controlling, and monetizing intellectual property. The Company has built a strong balance sheet with over $40 million in cash and no long-term debt, providing flexibility to invest and pursue strategic opportunities. Kartoon Studios has assembled a world-class portfolio of intellectual property, including Hundred Acre Wood and the Stan Lee Universe, which have the potential to become significant global franchises. The Company has also strengthened its leadership team with proven executives, including Jeffrey Schlesinger and CFO Brian Parisi, who have successfully monetized some of the world's most valuable entertainment franchises. The strategic shift towards owning intellectual property has allowed Kartoon Studios to create value for its shareholders, rather than relying on third-party owned properties. With a unique combination of financial strength, valuable intellectual property, growing distribution, experienced leadership, and a clear strategic vision, Kartoon Studios is well-positioned for its next phase of growth. The Company's objective is to create enduring franchises that can compound value over many years and potentially across generations. With the launch of Hundred Acre Wood and growth initiatives surrounding the Stan Lee Universe, Kartoon Studios is poised to establish the foundation for its next phase of growth and improve profitability, expand ownership economics, and create long‑term shareholder value.