Red Flags Detected
- Going Concern (new) — Management now discloses substantial doubt about ability to continue as a going concern for at least one year due to accumulated deficit, low cash, and minimal working capital.
- Material Weakness (improved) — Previously identified material weakness in IT general controls has been remediated; internal controls now deemed effective as of December 31, 2025.
- Asset Impairment (new) — Company recorded $0.8M intangible asset impairment on Frederator and Wow tradenames due to reduced expected future cash flows.
- Securities Litigation (improved) — Securities litigation significantly narrowed with court dismissing all claims against one defendant and most claims against remaining defendants, leaving only one narrow claim about Rainbow Rangers airing frequency.
Kartoon Studios flags going-concern doubt despite 21% revenue growth; cash at $2.9M
Filed March 31, 2026 · Period ending December 31, 2025 · Compared to 10-K Mar 31, 2025 · ~2 min read
Key Changes
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high
Management disclosed substantial doubt about ability to continue as a going concern for at least one year, citing $763.8M accumulated deficit, $2.9M cash, and $33.5M current liabilities against $35.8M current assets.
Risk Factors: Going Concern verify on EDGAR → -
high
Customer concentration increased to 81.9% of revenue from four customers (up from 75.7% prior year), heightening revenue volatility and credit risk if any relationship is lost.
Business: Customer Concentration verify on EDGAR → -
high
Operating cash outflow tripled to $11.4M from $3.5M, driven by $9.3M lower tax credit receipts and $3.8M higher receivables, despite 21% revenue growth to $44.2M.
MD&A: Cash Flow verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Generated by AI · Jun 11, 2026 1:55 AM