GNUS Genius Brands International Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 16, 2024

 

KARTOON STUDIOS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada (State or other jurisdiction of incorporation or organization)

001-37950 (Commission File Number)

20-4118216 (I.R.S. Employer Identification No.)

 

190 N. Canon Drive, 4th Fl., Beverly Hills, CA 90210

(Address of principal executive offices) (Zip Code)

 

(310) 273-4222

Registrant’s telephone number, including area code

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TOON	NYSE American LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

ITEM 7.01

REGULATION FD DISCLOSURE

 

On April 16, 2024, the Company issued a press release announcing Kartoon Studios’ AI product, “Gadget A.I.”, and is collaboration with Nvidia to create this product. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

 

The information contained in this Item 7.01 including Exhibit 99.1 hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, or otherwise subject to the liabilities of that section, and such information shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act.

 

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS.

 

(d)

Exhibits.

 

Exhibit No.	Description
99.1	Press Release of Kartoon Studios, Inc., dated April 16, 2024
104	The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

 

 

Forward Looking Statements

 

This Current Report on Form 8-K contains certain statements which constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the Securities and Exchange Commission. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

 

 

 

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	KARTOON STUDIOS, INC..
Date: April 16, 2024	By:	/s/ Andy Heyward
	Name:  Andy Heyward
	Title: Chief Executive Officer

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

 

KARTOON STUDIOS UNVEILS

‘GADGET A.I.’

 

INTEGRATED AI TOOLKIT DEVELOPED ON NVIDIA OMNIVERSE SET TO REVOLUTIONIZE ANIMATION PRODUCTION AND DISTRIBUTION FOR THE COMPANY

 

The AI Initiative Aims to Save 75% of Current Animation Production Costs While Creating Dramatic Speed-to-Market Efficiencies

 

 

Beverly Hills, CA; April 16, 2024: Kartoon Studios (NYSE American: TOON) today announced the development of a new proprietary generative AI toolkit and workflow, “GADGET A.I.,” designed to enable the development, production, and post-production of new animated content, as well as revitalize and upgrade the quality and distribution reach of thousands of existing catalog episodes and acquisitions.

 

 

 

Spearheading this initiative is Todd Steinman, appointed as Chief AI Officer, leveraging his expertise in technology and digital innovation alongside his current role as President of Toon Media Networks. He will be supported by an internal team that has been developing and refining elements of the toolkit and workflow over the past year.

 

Andy Heyward, Chairman & CEO of Kartoon Studios and Co-Creator of the iconic franchise “Inspector Gadget,” stated, “During the past year, we have dedicated a great deal of time and resources to understand the opportunities with AI as it pertains to our business and have been speaking extensively with leaders in the field. Our commitment to harnessing AI reflects a pivotal shift in our industry’s approach to content creation and distribution. By connecting various tools via OpenUSD into ‘Gadget A.I.’ with NVIDIA Omniverse, we aim to streamline production processes, accelerate quality, and significantly reduce both time to market and expenditures. Todd has done a brilliant job of using technology to turn Kartoon Channel! to profit in record time for a streaming service, and his fluency in digital technology makes him a natural fit to lead this initiative into the future.”

 

Richard Kerris, Vice President of Developer Relations, Head of Media and Entertainment at NVIDIA, stated: “AI has reshaped the media and entertainment landscape, driving demands for more cutting-edge technology to maintain productivity and efficiency. By leveraging NVIDIA RTX GPUs and the Omniverse development platform, Kartoon Studios will equip producers and media professionals with new tools and applications to elevate their workflows to the next level.”

 

By aggregating a variety of AI tools into one toolkit and workflow, ‘Gadget A.I.’ will endeavor to optimize a broad swath of production services in a fraction of the time and cost.

 

Heyward emphasizes the transformative potential of AI technologies without undermining job opportunities: “Our focus lies in redefining production paradigms and creating opportunities. With Gadget A.I., we anticipate cost savings and accelerated time to market, all while fostering job growth. We anticipate this new cutting-edge approach will enable our products to become more profitable, while offering a better experience for viewers.”

 

Todd Steinman stated, “Gadget A.I. integrates cutting-edge technologies, including video synthesis, neural radiance fields, and video style transfers, in conjunction with NVIDIA Omniverse and deep learning AI to elevate animation quality while optimizing production efficiencies. Gadget A.I. also revolutionizes the dubbing process, traditionally a laborious and costly endeavor. By leveraging AI-driven solutions, Kartoon Studios anticipates accelerated global market entry for its content, marking a significant leap forward in animation distribution.”

 

Gadget A.I. leverages NVIDIA Omniverse core technologies for OpenUSD and NVIDIA RTX ray tracing to facilitate seamless collaboration, real-time simulation, and rendering, and will encompass a spectrum of other production services, including character design, scriptwriting, music, animation, resolution enhancement, and dubbing, all unified to enhance workflow efficiencies.

 

Gadget A.I. signifies a breakthrough, leveraging state-of-the-art NVIDIA RTX GPUs, deep learning, and generative AI, unlocking cost savings and creative possibilities.

 

Steinman continued: “As part of our ethical AI use and supporting our desire to protect our own intellectual property, we plan to use Bria.ai, which employs licensed, certified datasets to ensure our AI-driven animation production respects copyrights and upholds the integrity of original content.”

 

Heyward added: “Forty years ago, we created ‘Inspector Gadget,’ a simple 2D cartoon, which decades later was recognized in Vanity Fair for predicting many of the technologies that have become part of our daily modern life, from Google search to smart watches, iPads, iPods, Google Maps, and more. It seemed only fitting that we name our AI platform, which we believe will revolutionize the way animation is produced going forward, ‘Gadget A.I.’”

 

Gadget A.I. heralds a new era of innovation and efficiency in animation production, poised to redefine industry standards and reinforce Kartoon Studios’ position as a trailblazer in animated entertainment.

 

 

 

 

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a global end-to-end creator, producer, distributor, marketer, and licensor of entertainment brands. The Company’s IP portfolio includes original animated content, including the Stan Lee brand, Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger, on Kartoon Channel! and Ameba; Shaq’s Garage, starring Shaquille O’Neal, on Kartoon Channel!; Rainbow Rangers on Kartoon Channel! and Ameba; the Netflix Original, Llama Llama, starring Jennifer Garner, and more.

 

In 2022, Kartoon Studios acquired Canada’s WOW! Unlimited Media and made a strategic investment becoming the largest shareholder in Germany’s Your Family Entertainment AG (FRA:RTV), one of Europe’s leading distributors and broadcasters of high-quality programs for children and families.

 

Toon Media Networks, the Company’s wholly owned digital distribution network, consists of Kartoon Channel!, Frederator Network, and Ameba. Kartoon Channel! is a globally distributed entertainment platform with near full penetration of the U.S. market. Kartoon Channel! and Ameba are available across multiple platforms, including iOS, Android Mobile, Web, Amazon Prime Video, Apple TV, Amazon Fire, Roku, Pluto TV, Comcast, Cox, Dish, Sling TV, Android TV, Tubi, Xumo, and Samsung and LG Smart TVs. Frederator Network owns and operates one of the largest global animation networks on YouTube, with channels featuring over 2000 exclusive creators and influencers, garnering billions of views annually.

For additional information, please visit www.kartoonstudios.com

 

# # #

 

Forward-Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

 

MEDIA CONTACT:

pr@kartoonstudios.com

 

INVESTOR RELATIONS CONTACT:

ir@kartoonstudios.com

 

 

 

v3.24.1.u1

Cover	Apr. 16, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 16, 2024
Entity File Number	001-37950
Entity Registrant Name	KARTOON STUDIOS, INC.
Entity Central Index Key	0001355848
Entity Tax Identification Number	20-4118216
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	190 N. Canon Drive, 4th Fl.
Entity Address, City or Town	Beverly Hills
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90210
City Area Code	(310)
Local Phone Number	273-4222
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	TOON
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

---