Red Flags Detected
- Going Concern (new) — Management disclosed substantial doubt about ability to continue operations for at least twelve months due to cash constraints and negative working capital.
- Securities Litigation (improved) — Securities class action significantly narrowed from four alleged misstatements to one after court dismissals, reducing company exposure.
- Material Weakness (removed) — Material weakness in IT general controls disclosed in baseline has been remediated; current filing reports effective controls.
Kartoon Studios discloses going-concern doubt as Q1 revenue falls 24%, cash dwindles to $5M
Filed May 15, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~2 min read
Key Changes
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high
Management disclosed substantial doubt about ability to continue operations for the next twelve months. Company had just $5.0M cash and negative working capital of $0.7M at March 31, 2026, down from positive $2.3M three months earlier.
Risk Factors / MD&A: Liquidity verify on EDGAR → -
high
Q1 2026 revenue fell 24% to $7.2M from $9.5M prior year, driven by 38% decline in production services to $4.1M. Management attributes drop to timing of project deliveries shifting into later 2026 quarters.
MD&A: Revenue verify on EDGAR → -
high
Securities class action narrowed from four alleged misstatements to one after court dismissed two claims with prejudice and plaintiff declined to amend a third. Only March 2020 Nickelodeon statement remains at issue.
Legal Proceedings 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 10, 2026 8:52 PM