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Segment Reporting | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting | Note 21: Segment Reporting ASC Topic 280 Segment Reporting establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance. The Company’s CODM uses revenue and net income (loss) to evaluate the profitability and performance of each operating segment. The CODM does not evaluate the operating segments using asset information and it is therefore not disclosed. Segment operating expenses include operating expenses directly attributable to the segment as well as certain shared corporate administration services and other costs which are allocated to the reportable segments, such as legal expenses, human resources expenses, accounting expenses, insurance expenses, and corporate facilities expenses. Segment operating expenses exclude certain non-recurring items and other costs, such as interest expense, interest income, share-based compensation expense and taxes. Our CODM evaluates the performance of each reportable segment based on segment operating income (loss) because it provides insight to operational leverage and other operational metrics for each segment. The Company has identified two operating segments based on the nature of the products and services offered: Content Production and Distribution segment includes the operations of Kartoon Studios, Inc, Mainframe Studios, and Frederator Studios. These entities are aggregated due to their similar economic characteristics, nature of products and services, production processes, customer types, and distribution methods. This segment is focused on the creation, production, and distribution of animated and live-action content, as well as licensing and royalty revenue from intellectual property. Media Advisory and Advertising Services segment includes The Beacon Media Group and The Beacon Communications Group. These entities provide media advisory and advertising services and marketing services. The CEO (CODM) primarily reviews revenue and net operating results, as allocated based on the nature of the business activity. The following table presents the revenue and net income (loss) within the Company’s two operating segments (in thousands):
Schedule of segment information by revenues and net earnings |  |  |  |  |  |  |  |
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Total Revenues: |  |  |  |  |  |  |  |
Content Production and Distribution |  | $ | 27,755 |  |  | $ | 39,146 |
Media Advisory and Advertising Services |  |  | 4,836 |  |  |  | 4,939 |
Total Revenues |  | $ | 32,591 |  |  | $ | 44,085 |
Net Loss: |  |  |  |  |  |  |  |
Content Production and Distribution |  | $ | (21,160 | ) |  | $ | (76,004 | )
Media Advisory and Advertising Services |  |  | 421 |  |  |  | (1,099 | )
Total Net Loss Attributable to Kartoon Studios, Inc |  | $ | (20,739 | ) |  | $ | (77,103 | )
Geographic Information The following table provides information about disaggregated revenue by geographic area (in thousands):
Schedule of segments by geographic area |  |  |  |  |  |  |  |
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Total Revenues: |  |  |  |  |  |  |  |
United States |  | $ | 17,805 |  |  | $ | 26,833 |
Canada |  |  | 5,769 |  |  |  | 7,957 |
United Kingdom |  |  | 8,637 |  |  |  | 8,650 |
Other |  |  | 380 |  |  |  | 645 |
Total Revenues |  | $ | 32,591 |  |  | $ | 44,085 |
Additional considerations include the use of segment-level budgets and forecasts created by Mainframe Studios, Frederator and Kartoon Studios at the entity level. The additional financial information prepared by the segment managers is discussed at length in meetings with the CODM. The Company determines that the revenue information reviewed by the CODM, combined with the financial information discussed with the segment managers is sufficiently detailed to allow the CODM to assess each component’s performance and make resource allocation decisions. Kartoon Studios, Frederator and Mainframe Studios are separate entities although according to ASC 280-10-50-11 all criteria are met in order to present result in aggregation. When evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several metrics included in net income or loss, which also include the following: Segment allocations
|  | December 31, 2024 |
|  | Content Production and Distribution |  |  | Media Advisory and Advertising |  |  | Total |
Revenue |  | $ | 27,755 |  |  | $ | 4,836 |  |  | $ | 32,591 |
Less Operating Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling, Marketing and Direct Operating Costs |  |  | 24,103 |  |  |  | 274 |  |  |  | 24,377 |
General and Administrative Expenses |  |  | 16,351 |  |  |  | 4,868 |  |  |  | 21,219 |
Other Expenses |  |  | – |  |  |  | 3 |  |  |  | 3 |
Segment results: |  | $ | (12,699 | ) |  | $ | (309 | ) |  | $ | (13,008 | )
Reconciliation of net (loss) income: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation Expense |  | $ | 3,120 |  |  | $ | 199 |  |  | $ | 3,319 |
Interest Expense |  |  | 778 |  |  |  | 1 |  |  |  | 779 |
Stock Based Compensation |  |  | 669 |  |  |  | – |  |  |  | 669 |
Tax provision |  |  | 19 |  |  |  | (62 | ) |  |  | (43 | )
Other |  |  | 4,077 |  |  |  | (868 | ) |  |  | 3,209 |
Net Loss Attributable to Non-Controlling Interests |  |  | (202 | ) |  |  | – |  |  |  | (202 | )
Net Income (Loss) |  | $ | (21,160 | ) |  | $ | 421 |  |  | $ | (20,739 | )
|  | December 31, 2023 |
|  | Content Production and Distribution |  |  | Media Advisory and Advertising |  |  | Total |
Revenue |  | $ | 39,141 |  |  | $ | 4,944 |  |  | $ | 44,085 |
Less Operating Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling, Marketing and Direct Operating Costs |  |  | 42,845 |  |  |  | 206 |  |  |  | 43,051 |
General and Administrative Expenses |  |  | 22,738 |  |  |  | 5,420 |  |  |  | 28,158 |
Other Expenses |  |  | – |  |  |  | – |  |  |  | – |
Segment results: |  | $ | (26,442 | ) |  | $ | (682 | ) |  | $ | (27,124 | )
Reconciliation of net (loss) income: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation Expense |  | $ | 4,281 |  |  | $ | 214 |  |  | $ | 4,495 |
Interest Expense |  |  | 3,117 |  |  |  | 9 |  |  |  | 3,126 |
Stock Based Compensation |  |  | 2,671 |  |  |  | – |  |  |  | 2,671 |
Tax provision |  |  | (973 | ) |  |  | – |  |  |  | (973 | )
Other |  |  | 40,573 |  |  |  | 186 |  |  |  | 40,759 |
Net Loss Attributable to Non-Controlling Interests |  |  | (99 | ) |  |  | – |  |  |  | (99 | )
Net Income (Loss) |  | $ | (76,012 | ) |  | $ | (1,091 | ) |  | $ | (77,103 | )
All other segment items included in net income or loss are reported on the consolidated statements of operations and described within their respective disclosures.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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