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Genius Brands Announces 585% Year-Over-Year Increase in Revenue for the Third Quarter of 2021

November 15, 2021

Genius Brands Announces 585% Year-Over-Year

Increase in Revenue for the Third Quarter of 2021

Dear Shareholders,

Genius Brands released its Q3 results this morning, and I am excited to share key items of company performance with you.
 
  • The company had a 585% Year-Over-Year Increase in Revenue for the Third Quarter of 2021, going to $1,871,499 from $273,9921 during the same period last year.
  • Kartoon Channel!, our children’s streaming service, continues to show strong and continuing growth in Q3 of ’21 when compared with Q3 of ’20: Unique Users (+229%), Ad-Impressions (+294%), and actual Video Plays (+382%).  This is particularly noteworthy in an environment where other streaming services have shown signs of slowing growth. Kartoon Channel! has focused on our brand essence of positive values, parent friendly/advertiser friendly content, and we believe parents, children, and advertisers, are responding to this.
     
  • Moreover, Kartoon Channel! has also seen strong recent growth from Q2 ’21 to Q3 ’21 in Application Installs (+512%)
 
  • The list of companies advertising on Kartoon Channel! continues to grow, and in Q3 included McDonald's, Walmart, Amazon, Kohls, Lego, Chuck E. Cheese, YouTube, Jazwares, Jakks, Coca Cola, Fox, Sony, Facebook, Babies R Us, Epix, Petco, Nestlé, and Albertsons, among others.
  • Kartoon Channel!’s growing viewership continues to be the #1 user ranked kids streaming service in both the Apple and Android app stores, ahead of Disney+ Netflix, YouTube Kids, Cartoon Network, and Nickelodeon.
  • Viewership is consistently growing each month, including growth on Samsung and LG Smart TVs, Roku, and our newly launched distribution on the PLUTO platform. Under the leadership of former Disney/ABC Cable Networks Executive Director of Programming and Acquisitions, Lou Fazio, we have been acquiring and curating, proven children’s hits including Peppa Pig, My Little Pony, and PJ Masks, which have been top performers on the channel and fueling growth.
  • We also recently launched our Spanish language program service, “KC! EN ESPAÑOL” which has met strong reception and quickly broke into Kartoon Channel!’s top performers. 
  • The acquisition of WOW! Unlimited Media is progressing as planned; as previously announced by WOW!, its last-twelve-months (LTM) revenues (as of June 30, 2021) were over $56 million. When consolidated with Genius, this will grow the Company’s LTM pro-forma revenue by over 1100%.
     
  • WOW’s production pipeline is growing and has over $100 million dollars of contracted production from Netflix, Sony, Mattel, Hulu, DreamWorks, and SpinMaster. We anticipate growth to continue in 2022
  • WOW’s Frederator Network is one of the largest Animation focused MCNs on YouTube with over 2,500 channels and more than 1 billion views per month.  The Frederator Network brings a robust and powerful source of content to feed Kartoon Channel! as well as to feed the growing Consumer Products business.
  • The RAINBOW RANGERS series has proven to be a successful performer and has now been licensed to leading streaming platforms worldwide, including Netflix, HBO Max, Paramount+, and NICK Jr., in addition to our own Kartoon Channel!. Rainbow Rangers continues to successfully perform, and the theme of 7 diverse girls who are the protectors of the earth and the environment, has resonated heavily across its viewership.
  • New Rainbow Rangers master toy licensee, Never Wrong Toys, to release toys in Q3 2022, and will focus on the theme of girls protecting the environment.
     
  • Season 3 of Rainbow Rangers is currently in production.
     
  • STAN LEE’S SUPERHERO KINDERGARTEN starring Arnold Schwarzenegger continues strong performance with over 75 million views to date, and remains the #1 ranked series on Kartoon Channel!
  • SHAQ’S GARAGE starring the voice talent of Shaquille O’Neal and others, is in production and on track to air in Q2 2022. The comedy adventure series follows a group of anthropomorphic vehicles who get into madcap adventures.  A broad consumer product licensing program with a range of consumer product categories across many categories is being scheduled to launch in Q1 2023.
  • CHIZCOMM/BEACON MEDIA, our kids’ media and marketing subsidiary, and the leading advertiser and marketing agency for toys in North America, has signed four new clients, and is strongly positioned for post pandemic growth, as the industry migrates from linear television to multi-channel digital platforms.   While the global supply chain slowdown has impacted the toy industry, Chizcomm/Beacon Media has smartly managed their overhead and inventory, and their large and diverse client base supported the strength and health of the business, with significant growth forecast for the 2nd half of 2022.
  • The STAN LEE CENTENNIAL BRAND is positioned for December 2022 launch at retail with a broad program of consumer products and entertainment.  ‘STAN LEE UNIVERSE’ is a rich new world of properties based on STAN LEE imagined IP, led by Michael Uslan, Executive Producer of the Batman franchise, and close friend and collaborator of Stan Lee, and will be introduced in 2022.
     
  • Meanwhile, the Stan Lee Universe/Stan Lee’s Workforce brand also being developed by MICHAEL USLAN and legendary science fiction and fantasy painter, GREG HILDEBRAND, creator of the iconic Star Wars poster, Lord of the Rings poster, and the Marvel Masters card series. (Take a peek below.) 
BOSSMAN
In the world of Stan Lee’s Workforce, powerful global corporations employ the superheroes and super villains.  Bossman is the lethal leader of Firepower Assets, Inc! What Blofeld and Spectre are to James Bond’s Secret Service, Bossman and Firepower are to Stan Lee’s Workforce! Glowing green eyes connect Bossman to the mysterious super-villain who is secretly the power-behind-the- power. Some of the most threatening and powerful super-villains in comics and comic book movies today do not appear in retro spandex and capes.
 
  • As of the end of Q3 2021, the company had $130.2 million of cash, cash equivalents, and marketable securities.
 
 
Genius had a very strong quarter.  We are growing across our key units, and we anticipate that to increase significantly with the acquisition of WOW, and the related synergies. We are now diversified across production, distribution, streaming, and licensing. It is an exciting time in media. We see high valuations being placed on companies with content and streaming distribution.
 
As the media world continues to evolve, Genius Brands is continuing to focus on our mission to bring quality positive entertainment to kids around the world.  Our balance sheet remains extremely strong, and we are continuing to carefully and methodically pursue accretive strategic acquisitions as we seek to grow and become the dominant company in the children’s entertainment business.

Sincerely,
 
Andy Heyward
Chairman & CEO
Genius Brands International, Inc.
Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

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