Genius Brands International, Inc.

For the quarter ended June 30, 2022, total revenue was $22.1 million, up $19.7 million, or 843%, from $2.3 million in the same quarter last year. Net loss attributable to Genius Brands was $13.3 million, or $0.04 per share, versus a net loss of $7.4 million, or $0.02 per share a year ago. As of June 30, 2022, current assets were $150.3 million, including $105.2 million of cash, cash equivalents and marketable securities, with working capital of $63.6 million and stockholders' equity of $143.1 million. Management did not give formal revenue or EPS guidance, but said it expects revenue growth to continue and accelerate, sees profitability in the not distant future, and expects significant cash flow and cost synergies from WOW!

Andy Heyward framed the quarter as a step-change in scale, pointing to record revenue, a larger employee base, a much bigger catalog, and broader distribution for Kartoon Channel! He emphasized that the company is building a global kids entertainment platform with ad-supported and subscription offerings, plus monetization through licensing, merchandising, and royalties. His tone was upbeat and expansionary, repeatedly stressing that the company is building assets for recurring cash flow and long-term profitability.

Bob Denton said Q2 revenue reached $22.1 million, the highest quarterly revenue in company history, mainly from the additions of Ameba in January and WOW! at the start of the quarter. He noted expenses rose due to direct operating costs, higher G&A, one-time professional fees tied to the WOW! acquisition, incentive compensation, and WOW! G&A consolidation. He highlighted a strong balance sheet with $150.3 million in current assets, $105.2 million in cash/cash equivalents/marketable securities, $63.6 million of working capital, and $143.1 million of equity, and said cash management is the key focus as the company works toward becoming cash positive.

Management was asked when profitability would arrive; Andy Heyward declined to give formal guidance but said the company expects to turn profitable in the not distant future and generate significant cash flow, helped by WOW! synergies and catalog/distribution growth. On capital allocation, he said the company has not done a buyback because of market volatility and the need to preserve capital, though it will keep evaluating options. He also said interest-rate exposure is minimal, production borrowing is not a major issue, and China exposure is limited because production has shifted largely to Indonesia and the Philippines, while cash sales in China are received in U.S. dollars.