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Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

Note 16 — Related Party Transactions

 

In November 2014, the Company entered into a joint venture with MC&C for the purpose of providing certain JAKKS licensed and non-licensed toys and consumer products to agreed-upon territories of the People’s Republic of China (see Note 10 – Joint Ventures).

 

In October 2016, the Company entered into a joint venture with Hong Kong Meisheng Cultural Company Limited, a Hong Kong-based subsidiary of Meisheng Culture & Creative Corp, for the purpose of creating and developing original, multiplatform content for children including new short-form series and original shows. On December 1, 2023, the Company dissolved the joint venture with Meisheng. Prior to the dissolution, JAKKS and Meisheng each owned fifty percent of the joint venture.

 

In March 2017, the Company entered into an equity purchase agreement with Meisheng which provided, among other things, that as long as Meisheng and its affiliates hold 10% or more of the issued and outstanding shares of common stock of the Company, Meisheng shall have the right from time to time to designate a nominee (who currently is Mr. Xiaoqiang Zhao) for election to the Company’s board of directors.

 

Meisheng also serves as a significant manufacturer of the Company. For the three and nine months ended September 30, 2024 the Company made inventory-related payments to Meisheng of approximately $32.0 million and $60.7 million, respectively. For the three and nine months ended September 30, 2023, the Company made inventory-related payments to Meisheng of approximately $35.2 million and $65.1 million, respectively. As of September 30, 2024 and December 31, 2023, amounts due to Meisheng for inventory received by the Company, but not paid totaled $35.0 million and $12.3 million, respectively. As of September 30, 2024, the Company had recorded sales revenues for the three and nine months ended and had accounts receivable outstanding of $0.1 million from Party X People GMBH, a subsidiary of Meisheng.