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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. |
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
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