Kartoon Studios, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of allowance for credit losses trade accounts receivable


Balance, net as of December 31, 2024	$	239
Charged to costs and expenses		179
Recoveries		(39	)
Write-offs		(376	)
Balance, net as of December 31, 2025		3
Charged to costs and expenses		4
Balance, net as of June 30, 2026	$	7

Schedule of concentration of risk

Schedule of concentration of risk
	As of
	June 30, 2026		December 31, 2025
Customer A		28.8%		*
Customer B		26.4%		*
Customer C		14.4%		*
Customer D		*		26.1%
Customer E		*		17.3%
Customer F		*		11.1%
		* Less than 10%

During the three months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of 74.2% of the Company’s total revenue for the three months ended June 30, 2026. During the three months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of 86.6% of the Company’s total revenue for the three months ended June 30, 2025.

During the six months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of 66.1% of the Company’s total revenue for the six months ended June 30, 2026. During the six months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of 85.9% of the Company’s total revenue for the six months ended June 30, 2025.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Customer G		47.1%		15.7%		39.0%		16.8%
Customer C		15.3%		15.0%		13.4%		15.5%
Customer H		11.8%		19.6%		13.7%		19.5%
Customer I		*		36.3%		*		34.1%
	*	Less than 10%

Schedule of marketable securities measured at fair value on a recurring basis


	Level 1		Level 2		Total Fair Value
Investments in Marketable Securities:
U.S. Treasury	$	32,763	$	–	$	32,763
Total	$	32,763	$	–	$	32,763

Investment in Equity Interest:
Investment in YFE	$	–	$	1,863	$	1,863
Total	$	–	$	1,863	$	1,863

Foreign Currency Forward Contracts:
Foreign Currency Forward Contracts, net:	$	–	$	5	$	5
Total	$	–	$	5	$	5

The following table presents the fair values of the Company’s financial instruments measured on a recurring basis, categorized within the fair value hierarchy as of December 31, 2025 (in thousands):


	Level 1		Level 2			Total Fair Value
Investments in Marketable Securities:
U.S. Treasury	$	3,978	$	–		$	3,978
Total	$	3,978	$	–		$	3,978

Investment in Equity Interest:
Investment in YFE	$	–	$	5,481		$	5,481
Total	$	–	$	5,481		$	5,481

Foreign Currency Forward Contracts:
Foreign Currency Forward Contracts, net:	$	–	$	(43	)	$	(43	)
Total	$	–	$	(43	)	$	(43	)