SEC Comment Letter 0000000000-24-009046 to Kartoon Studios, Inc. (TOON)
Kartoon Studios, Inc.
Date: Aug. 8, 2024 · CIK: 0001355848 · Accession: 0000000000-24-009046
AI Filing Summary & Sentiment
File numbers found in text: 001-37950
Letter
August 8, 2024 Brian Parisi Chief Financial Officer Kartoon Studios, Inc. 190 N. Canon Drive, 4th Floor Beverly Hills, CA 90210 Re:Kartoon Studios, Inc. Form 10-K for the Year Ended December 31, 2023 Response dated July 23, 2024 File No. 001-37950 Dear Brian Parisi: We have reviewed your July 23, 2024 response to our comment letter and have the following comment(s). Please respond to this letter within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe a comment applies to your facts and circumstances, please tell us why in your response. After reviewing your response to this letter, we may have additional comments. Unless we note otherwise, any references to prior comments are to comments in our July 1, 2024 letter. Form 10-K for the Year Ended December 31, 2023 Item 9A. Controls and Procedures, page 38 1.We note your response to prior comment 1. SEC Release No. 33-8238 Section II, D states “[w]e agree that some components of internal control over financial reporting will be included in disclosure controls and procedures for all companies. In particular, disclosure controls and procedures will include those components of internal control over financial reporting that provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles". The nature of your material weakness led to an inappropriate application of generally accepted accounting principles and thus a restatement. Per the release noted above, the deficient controls relate to an aspect of internal control over financial reporting that is also a part of disclosure controls and procedures. Please revise to conclude that your disclosure controls and procedures were not effective, or further explain.
August 8, 2024 Page 2 Please contact Nasreen Mohammed at 202-551-3773 or Joel Parker at 202-551-3651 if you have questions regarding comments on the financial statements and related matters. Sincerely, Division of Corporation Finance Office of Trade & Services
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August 8, 2024
Brian Parisi
Chief Financial Officer
Kartoon Studios, Inc.
190 N. Canon Drive, 4th Floor
Beverly Hills, CA 90210
Re:Kartoon Studios, Inc.
Form 10-K for the Year Ended December 31, 2023
Response dated July 23, 2024
File No. 001-37950
Dear Brian Parisi:
We have reviewed your July 23, 2024 response to our comment letter and have the
following comment(s).
Please respond to this letter within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe a
comment applies to your facts and circumstances, please tell us why in your response.
After reviewing your response to this letter, we may have additional comments. Unless we
note otherwise, any references to prior comments are to comments in our July 1, 2024 letter.
Form 10-K for the Year Ended December 31, 2023
Item 9A. Controls and Procedures, page 38
1.We note your response to prior comment 1. SEC Release No. 33-8238 Section II, D states
“[w]e agree that some components of internal control over financial reporting will be
included in disclosure controls and procedures for all companies. In particular, disclosure
controls and procedures will include those components of internal control over financial
reporting that provide reasonable assurances that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles". The nature of your material weakness led to an inappropriate
application of generally accepted accounting principles and thus a restatement. Per the
release noted above, the deficient controls relate to an aspect of internal control over
financial reporting that is also a part of disclosure controls and procedures. Please revise
to conclude that your disclosure controls and procedures were not effective, or further
explain.
August 8, 2024
Page 2
Please contact Nasreen Mohammed at 202-551-3773 or Joel Parker at 202-551-3651 if
you have questions regarding comments on the financial statements and related matters.
Sincerely,
Division of Corporation Finance
Office of Trade & Services