Kartoon Studios, Inc.

VERTICALLY INTEGRATED PLATFORM

Kartoon Studios has built a fully integrated platform spanning:

This structure enables the Company toown and monetize its intellectual property across the entire value chain.

Andy Heyward, Chairman & CEO, commented:“Over the past several years, we have been investing in building a vertically integrated company capable of developing, producing, distributing, and monetizing our own intellectual property globally.

We are now seeing the results of those investments. Our distribution platforms are delivering record subscribers and strong engagement, and our operating losses are narrowing as we complete this infrastructure buildout.

“Importantly, our business model is fundamentally different from many traditional media and consumer sectors. As an IP-driven company, our value is created through storytelling, not physical inputs. Our production pipeline is digital and globally distributed, not dependent on energy input costs or transportation economics,**in contrast to many traditional industries, nor dependent on physical attendance or travel-driven revenue streams.**In a rising-cost world, we believe Kartoon Studios stands apart, built on characters, stories, and franchises that scale.”

As we enter 2026, withHundred Acre Woods and theStan Lee Universe launching, while having a robust development slate for new products, we are transitioning into a period of accelerating monetization, operating leverage, and scalable growth. With our platform built and our franchises ready to launch, 2026 marks the moment Kartoon Studios begins converting years of investment into scalable growth and long-term shareholder value.”

Brian Parisi, CFO, further noted:“Our improving operating performance reflects a disciplined strategy of investing in infrastructure and IP, now positioning the Company to benefit from those investments.

With over 60% of 2026 production revenue already under contract, a rebounding media buying division, and continued growth across our distribution platforms, we see a clear path toward improved margins as our franchise initiatives scale. With our cost structure stabilizing, strong production visibility, and new high-margin revenue streams ahead with our IP focus, we believe the Company is well positioned for improving margins and long-term financial performance.”