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(the “Company,” “Kartoon Studios,” “we,” “us” or “our”) is a global content and brand management company focused on the creation, production, licensing, and distribution of multimedia animated content for children. Led by experienced industry personnel, the Company’s core business includes original intellectual property (“IP”) development, third-party IP production services, media agency, and content monetization through licensing and owned distribution platforms.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Kartoon Studios’ owned and produced titles include <i>Stan Lee’s Superhero Kindergarten </i>(starring Arnold Schwarzenegger), <i>Llama Llama</i> (starring Jennifer Garner), <i>Rainbow Rangers</i>, <i>KC! Pop Quiz</i>, and <i>Shaq’s Garage</i> (starring Shaquille O’Neal). The Company’s library also includes titles such as <i>Baby Genius</i>, <i>Thomas Edison’s Secret Lab</i>, <i>Warren Buffett’s Secret Millionaires Club</i>, <i>Team Zenko Go!</i>, <i>Reboot</i>, <i>Bee &amp; PuppyCat: Lazy in Space</i>, and <i>Castlevania</i>. The Company maintains a strategy of leveraging owned IP and third-party relationships to expand distribution and consumer product licensing. The Company is also developing <i>Hundred Acre Wood’s: Winnie and Friends,</i> a new franchise property inspired by A.A. Milne’s <i>Winnie the Pooh</i>, consisting of 78 full-length streaming episodes, over 200 short-form episodes, holiday specials, and a global consumer products program. The main launch is anticipated in Q1 2027, with plans to expand across experiential activations and live events.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Kartoon Studios also owns Wow Unlimited Media Inc. (“Wow”), through which the Company holds its interest in Mainframe Studios, one of North America’s <i>largest</i> animation production studios. Founded in 1993 and headquartered in Vancouver, British Columbia, Mainframe created <i>ReBoot</i>, the first fully CG-animated television series. Mainframe operates primarily as a producer-for-hire for major streaming platforms, broadcasters, and intellectual property holders. To date, Mainframe has produced over 1,200 television episodes, 70 movies, and 3 feature films, including titles such as <i>It’s Andrew!, Phoebe and Jay, Barbie Dreamhouse Adventures</i>, <i>Octonauts: Above &amp; Beyond</i>, <i>Cocomelon</i>, <i>SuperKitties</i>, and <i>Unicorn Academy</i>, in partnership with leading global media companies.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company distributes its content across streaming platforms, linear television, and its ad-supported and subscription-based video-on-demand (“VOD”) services and apps, including <i>Kartoon Channel!</i> and <i>Ameba TV</i>. Distribution partners include YouTube, YouTube Kids, Amazon Prime Video, Amazon Fire, Roku, Apple TV, iOS, Android TV, Android mobile, Pluto TV, Xumo, Tubi, Samsung TV Plus, Google TV, Cox, DISH, Sling TV, KartoonChannel.com, and smart TVs from Samsung and LG. The Company also licenses content to third-party networks and streaming services globally, including Netflix, Paramount+, HBO Max, and Nickelodeon.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company also owns The Beacon Media Group, LLC and The Beacon Communications Group, Ltd. (collectively, “Beacon”), a specialized media and marketing agency focused on children’s and family audiences. Beacon represents over 20 established and emerging brands across the toy, consumer products, and family entertainment sectors, including Bandai Namco, Moose Toys, Bazooka Brands, Goliath Games, Playmates Toys, and Cepia LLC. The agency has developed a strong reputation within the toy industry, supported by long-standing client relationships, deep category expertise, and a consistent track record of campaign execution. The Company believes that Beacon’s positioning within a niche, relationship-driven market provides barriers to entry and supports durable demand for its services.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company owns Ameba Inc. which operates Ameba TV, a subscription streaming service with a focus on educational and entertainment content for younger children. As a cornerstone of the Company’s subscription offerings, Ameba delivers a vast library of engaging and educational content, accessible across multiple platforms.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through its investment in Germany-based Your Family Entertainment AG (“YFE”), a publicly listed company on the Frankfurt Stock Exchange (ticker symbol “RTV”), the Company holds a strategic interest in one of Europe’s leading independent children’s content providers, with a catalog of approximately 150 titles and 3,500 half-hour episodes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company holds a controlling interest in Stan Lee Universe, LLC (“SLU”), which owns the IP rights to Stan Lee’s name, likeness, signature, and associated IP assets. Existing licensing arrangements include a non-exclusive license with Marvel for Stan Lee’s likeness to appear in Marvel films and a separate non-exclusive license with the Walt Disney Company for use of Stan Lee’s likeness in Walt Disney theme parks. Additional brand partnerships include an agreement with Madame Tussauds. The Company considers the SLU to be a core component of its IP portfolio and is currently developing plans for expanded commercialization across animation, publishing, licensing, and global consumer products in connection with its 2026 strategic initiatives.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Kartoon Studios’ common stock is listed on the NYSE American LLC (“NYSE American”) under the ticker symbol “TOON.”</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recent Transactions</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 3(a)(10) Accounts Payable Settlement</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 27, 2025, the Company entered into an agreement to engage in a transaction under Section 3(a)(10) of the Securities Act of 1933, as amended (the “Securities Act”) with Continuation Capital, Inc. (“CCI”), to settle $<span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentAmount1_pip0_dm_c20250826__20250827__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--ContinuationCapitalSettlementMember_zTtHfrR4ViVe" title="Debt converted, amount converted">1.8 million</span> of outstanding accounts payable, in exchange for issuing <span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20250826__20250827__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--ContinuationCapitalSettlementMember_zHLMBTShDbqc" title="Debt converted, shares issued">3,148,535</span> shares of common stock. Under the terms of the agreement, CCI makes payments to the Company’s vendors in cash and, in exchange, the Company issues shares of common stock to CCI. The settlement was valued at 1.75 shares of common stock per $1 of accounts payable, pursuant to the terms of the agreement. The transaction was approved by a court after a public hearing on the fairness of the terms and conditions. The transaction was carried out in stages and completed in the year ended December 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On November 18, 2025, the Company entered into a new agreement to settle an additional $<span id="xdx_909_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn6n6_c20251117__20251118__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--Nov2025DebtConversionMember_z6LWDKwMZd8a">1</span>.0 million of outstanding accounts payable under Section 3(a)(10) of the Securities Act with CCI, in exchange for issuing <span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20251117__20251118__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--Nov2025DebtConversionMember_zbYzA8zgBFh6" title="Debt converted, shares issued">1,695,072</span> shares of common stock. The terms were consistent with the original arrangement and were approved by a court after a public hearing. The settlement arrangement was carried out in stages and completed through the first quarter of 2026, settling a total of $1.0 million of accounts payable and issuing an aggregate of 1,695,072 shares of common stock to CCI. During the six months ended June 30, 2026, the Company settled an aggregate of $<span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn5n6_c20260101__20260630__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--Nov2025DebtConversionMember__us-gaap--TransactionTypeAxis__custom--Tranche1Member_ztumCieh8Eb5">0.6</span> million of accounts payable, issued <span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20260101__20260630__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--Nov2025DebtConversionMember__us-gaap--TransactionTypeAxis__custom--Tranche1Member_zSqForF1fge9" title="Debt converted, shares issued">977,360</span> shares of common stock to CCI, and recognized a loss of $<span id="xdx_907_eus-gaap--ExtinguishmentOfDebtGainLossNetOfTax_iN_pn5n6_di_c20260101__20260630__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--Nov2025DebtConversionMember__us-gaap--TransactionTypeAxis__custom--Tranche1Member_zymHegO6nrx7" title="Loss on extinguishment of debt">0.1</span> million on the settlement, representing the difference between the carrying value of liabilities extinguished and the fair value of shares issued, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 8, 2026, the Company entered into a new agreement to settle an additional $<span id="xdx_90E_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn5n6_c20260407__20260408__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--April2026DebtConversionMember_zMBcDDFQ3Vqd">1.1</span> million of accounts payable under Section 3(a)(10) of the Securities Act with CCI, in exchange for issuing <span id="xdx_908_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20260407__20260408__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--April2026DebtConversionMember_zkr8YvcQwvwb">2,001,797</span> shares of common stock, and to settle additional obligations up to $<span id="xdx_905_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn5n6_c20260407__20260408__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--AdditionalApril2026DebtConversionMember_zzEzfSDqy5h7">0.3</span> million in exchange for issuing <span id="xdx_90B_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20260407__20260408__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--AdditionalApril2026DebtConversionMember_zeTxY0LT22i5">551,250</span> shares of common stock. The terms were consistent with the original arrangement. The settlement arrangement was carried out in stages and completed as of June 30, 2026. During the three months ended June 30, 2026, the Company recognized a loss of $<span id="xdx_90B_eus-gaap--ExtinguishmentOfDebtGainLossNetOfTax_pn5n6_c20260401__20260630__us-gaap--DebtConversionByUniqueDescriptionAxis__custom--BothApril2026DebtConversionsMember_zXJmswnpNDCf">0.6</span> million on the settlement, representing the difference between the carrying value of liabilities extinguished and the fair value of shares issued, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">October 2025 Financing</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 22, 2025, pursuant to the terms of a securities purchase agreement (the “October 2025 Purchase Agreement”) entered into with an institutional investor (the “October 2025 Investor”), the Company closed a registered direct offering (the “Registered Direct Offering”) of <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pip0_c20251021__20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--October2025PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__custom--October2025SharesMember_zQDHWwHcJZU1" title="Stock issued new, shares">3,000,000</span> shares (the “October 2025 Shares”) of its common stock, and pre-funded warrants (the “October 2025 Pre-Funded Warrants”) to purchase up to <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pip0_c20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--October2025PurchaseAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--October2025PreFundedWarrantsMember_zKrR3aAOWPHa" title="Warrants purchase">6,903,049</span> shares of common stock to the October 2025 Investor. In a concurrent private placement (the “Concurrent Private Placement” and, together with the Registered Direct Offering, the “October Offerings”), pursuant to the October 2025 Purchase Agreement, the Company also sold to the October 2025 Investor unregistered warrants (the “October 2025 Common Warrants”) to purchase up to <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pip0_c20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--October2025PurchaseAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--October2025CommonWarrantsMember_zDFVAb5gzNJ4" title="Warrants purchase">9,903,049</span> shares of common stock, with an exercise price of $0.738 per share. Each October 2025 Share and privately placed October 2025 Common Warrant was sold at a combined public offering price of $0.738, and each October 2025 Pre-Funded Warrant and privately placed October 2025 Common Warrant was sold at a combined public offering price of $0.737, for aggregate gross proceeds at closing of approximately $<span id="xdx_90E_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn5n6_c20251021__20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--October2025PurchaseAgreementMember_zBgYcbFvoGG8" title="Proceeds from sale of equity">7.3</span> million, prior to deducting placement agent fees and other offering expenses. In connection with the October Offerings, the Company paid to the placement agent a cash fee equal to 7% of the aggregate gross proceeds from the sale of the securities sold in this offering, plus $<span id="xdx_909_eus-gaap--PaymentsOfStockIssuanceCosts_pp0p0_c20251021__20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--October2025PurchaseAgreementMember_zfUlFblVRXn5" title="Payment of stock issuance costs">75,000</span> as a reimbursement of certain out-of-pocket expenses. The placement agent also is entitled to receive 7% of the gross proceeds received from the exercise of any of the October 2025 Common Warrants, if any. In addition, the Company issued warrants (the “Placement Agent Warrants”) to purchase <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pip0_c20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--October2025PurchaseAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--PlacementAgentWarrantsMember_ztP0GGObDTuf" title="Warrants purchase">693,213</span> shares of common stock to the placement agent and its designees with an exercise price of $0.8118 per share. A registration statement on Form S-1 registering the resale of common stock to be issued upon exercise of the Placement Agent Warrants and the October 2025 Common Warrants was declared effective on December 9, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Section 16(b) Litigation Settlement</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Between May 29, 2026 and June 11, 2026, the Company entered into settlement agreements with six defendants (the “Settling Parties”) in the action styled <i>Todd Augenbaum v. Anson Investments Master Fund LP, et al., Case No. 1:22-cv-00249 (S.D.N.Y.)</i>, an action brought under Section 16(b) of the Securities Exchange Act of 1934 by a stockholder on behalf of and for the benefit of the Company, in which the Company is named only as a nominal defendant, seeking disgorgement of alleged short-swing profits realized by certain investors in the Company’s 2020 private placements. The Settling Parties agreed to pay the Company aggregate settlement amounts of $78.5 million minus fees and expenses of plaintiff’s counsel (in an amount not yet determined), subject to certain terms and conditions, and the parties agreed to mutual releases. Pursuant to the settlement agreements, 50% of each settlement amount, or $39.2 million in the aggregate, was paid directly to the Company during June 2026, and the remaining 50% was deposited into escrow to fund the court-awarded fees and expenses of plaintiff’s counsel, with any residual balance payable to the Company after the applicable approval orders become final. The Company recognized the $<span id="xdx_908_eus-gaap--NonoperatingGainsLosses_pn5n6_c20260401__20260630__srt--LitigationCaseAxis__custom--ToddVAnsonMember_z1cR1AjwKgX7" title="Nonoperating gain">39.2</span> million received as a non-recurring, non-operating gain, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations for the three months ended June 30, 2026. In accordance with Accounting Standards Codification (“ASC”) 450-30-25-1, any residual amounts distributable to the Company from escrow constitute a gain contingency and will be recognized if and when realized. In connection with the settlement with the Anson Investments Master Fund LP and its affiliates (collectively, the “Anson Parties”), on June 10, 2026, the Company entered into a standstill and voting agreement with the Anson Parties, under which the Company agreed to pay the Anson parties $<span id="xdx_906_eus-gaap--NonoperatingGainsLosses_iN_pn6n6_di_c20260609__20260610__srt--CounterpartyNameAxis__custom--AnsonMember_zmYABT1ZIBjh" title="Nonoperating loss">4</span>.0 million and the Anson Parties agreed to certain voting commitments and standstill restrictions through June 11, 2027. The Company recognized this amount as a non-operating loss, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations for the three months ended June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Adoption of Stockholder Rights Plan and Related Measures</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 1, 2026, the Board of Directors adopted a Preferred Stock Rights Agreement (a stockholder rights plan), filed a related Certificate of Designation designating <span id="xdx_909_eus-gaap--PreferredStockSharesAuthorized_iI_pip0_c20260701__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_z9aHDVEdGZJa">300,000</span> shares of a new Series D Participating Preferred Stock, and adopted amendments to the Company’s Bylaws. The stockholder rights plan is intended as a protective measure to guard against coercive or unfair takeover tactics and the accumulation of a controlling interest in the Company without negotiation with our Board. The Series D Participating Preferred Stock was designated solely to support the stockholder rights plan; no shares have been issued, and the rights issued under the plan become exercisable only upon the occurrence of certain triggering events. These actions did not affect the Company’s financial condition, results of operations or shares of common stock outstanding as of or for the period covered by this report. For additional information, see Note 22, <i>Subsequent Events,</i> to the Company’s condensed consolidated financial statements, and Part II, Item 1A, <i>Risk Factors</i> included in this report, as well as our Form 8-K filed with the SEC on July 2, 2026, as amended on July 6, 2026, and our Registration Statement on Form 8-A filed on July 2, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sale of Frederator Networks, Inc.</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 8, 2026, the Company sold all of the issued and outstanding common stock of Frederator Networks, Inc. (“Frederator Networks”), which operated the Frederator Network channel business, to Project Robot LLC, an unaffiliated third party, pursuant to a stock purchase agreement dated June 18, 2026. Kartoon Studios will retain key intellectual property of Frederator Studios, LLC, a wholly owned subsidiary of the Company, including <i>Bee and PuppyCat, Bravest Warriors, Castlevania,</i> and <i>Catbug</i>, for distribution and product licensing opportunities. The transaction was part of the Company’s strategic realignment to focus on monetization of premium intellectual property and franchise development. Upon closing, the Company ceased to have a controlling financial interest in Frederator Networks. The base purchase price under the purchase agreement was $<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodValuePurchaseOfAssets_pn5n6_c20260617__20260618__dei--LegalEntityAxis__custom--FrederatorNetworksIncMember_zPmNaW9cwwl1" title="Purchase price">0.5</span> million in cash, subject to customary post-closing adjustments for net working capital, indebtedness, and cash and cash equivalents, on a cash-free, debt-free basis. The Company expects to recognize a loss on disposal of approximately $<span id="xdx_907_eus-gaap--GainLossOnDispositionOfAssets_pn5n6_c20260617__20260618__dei--LegalEntityAxis__custom--FrederatorNetworksIncMember_zTMrGkEkW2il" title="Loss on disposal">0.3</span> million (before income taxes), representing the excess of Frederator Networks’ net carrying amount over the estimated net consideration to be received. This estimate is preliminary, unaudited, and subject to change pending finalization of the post-closing working capital adjustment pursuant to the purchase agreement, which is expected to be completed within 60 days of closing. Because the transaction closed after June 30, 2026, Frederator Networks’ assets, liabilities, and results of operations continue to be included in the Company’s condensed consolidated financial statements as of and for the three and six months ended June 30, 2026, on a continuing-operations basis. Frederator Networks did not meet the held-for-sale criteria of ASC 360-10-45-9 as of June 30, 2026. Management concluded that the disposition does not represent a strategic shift that has, or will have, a major effect on the Company’s operations or financial results, and accordingly, the transaction does not qualify for discontinued-operations presentation under ASC 205-20. In connection with the closing, Frederator Networks, Inc. and Project Robot LLC entered into a three-year Channel Distribution Agreement with Frederator Studios, LLC. Under this arrangement, Frederator Studios, LLC will continue to receive a declining share of net YouTube receipts (85% in year one, decreasing to 5% by year three) generated from certain retained channels through YouTube CMS infrastructure. Frederator Studios, LLC and Frederator Networks, Inc. will each retain a <span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pip0_dp_c20260718__srt--OwnershipAxis__custom--FrederatorStudiosLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z7m2FMW8ixwe" title="Ownership interest"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pip0_dp_c20260718__srt--OwnershipAxis__custom--FrederatorNetworksMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zQnT0JzSaKF8" title="Ownership interest">50</span></span>% ownership interest in the Frederator trademark. Management does not believe this continuing involvement affects the conclusions and estimates described above.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Liquidity and Capital Resources</p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the Company had cash of $<span id="xdx_905_eus-gaap--Cash_iI_pn3n3_dxL_c20260630_z379D33ZDZy2" title="Cash::XDX::7742"><span style="-sec-ix-hidden: xdx2ixbrl1070">7.7</span></span> million (which does not include cash held in escrow from the Section 16(b) litigation settlement described above), which increased by $<span id="xdx_906_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect_pn3n3_dxL_c20260101__20260630_zdux6IDN3LOe" title="Net increase in cash::XDX::4799"><span style="-sec-ix-hidden: xdx2ixbrl1072">4.8</span></span> million as compared to December 31, 2025. The increase was primarily due to net cash provided by operating activities of $<span id="xdx_908_eus-gaap--NetCashProvidedByUsedInOperatingActivities_pn3n3_dxL_c20260101__20260630_zE91cAonaZlc" title="Net cash used in operating activities::XDX::31432"><span style="-sec-ix-hidden: xdx2ixbrl1074">31.4</span></span> million, cash provided by financing activities of $<span id="xdx_906_eus-gaap--NetCashProvidedByUsedInFinancingActivities_pn3n3_dxL_c20260101__20260630_zoqOUzsmG6j5" title="Net cash provided by financing activities::XDX::1672"><span style="-sec-ix-hidden: xdx2ixbrl1076">1.7</span></span> million, and the effect of exchange rate of $<span id="xdx_90B_eus-gaap--EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents_pn3n3_dxL_c20260101__20260630_zzxCUyURQRBi" title="Effect of exchange rate changes on cash::XDX::521"><span style="-sec-ix-hidden: xdx2ixbrl1078">0.5</span></span> million, offset by cash used in investing activities of $<span id="xdx_904_eus-gaap--NetCashProvidedByUsedInInvestingActivities_iN_pn3n3_dixL_c20260101__20260630_zQpke0e0VlS5" title="Net cash used in investing activities::XDX::28826"><span style="-sec-ix-hidden: xdx2ixbrl1080">28.8</span></span> million. The cash provided by operating activities of $<span id="xdx_90D_eus-gaap--NetCashProvidedByUsedInOperatingActivities_pn3n3_dxL_c20260101__20260630_zUlA377z7wqa" title="Net cash used in operating activities::XDX::31432"><span style="-sec-ix-hidden: xdx2ixbrl1082">31.4</span></span> million was primarily due to net income of $<span id="xdx_901_eus-gaap--ProfitLoss_pn3n3_dxL_c20260101__20260630_z7Erz36RaRm9" title="Net income::XDX::20544"><span style="-sec-ix-hidden: xdx2ixbrl1084">20.5</span></span> million, and a favorable impact of net change in non-cash adjustments of $<span id="xdx_908_eus-gaap--OtherOperatingActivitiesCashFlowStatement_pn5n6_c20260101__20260630_z2MZl6FpzP8f" title="Non-cash adjustments">15.1</span> million, partially offset by a net use of cash related to operating assets and liabilities of $<span id="xdx_906_eus-gaap--IncreaseDecreaseInOperatingCapital_pn5n6_c20260101__20260630_zK1I6m0EnS7a" title="Net cash used in operating assets and liabilities">4.2</span> million. Net income was driven primarily by a non-recurring and non-operating cash receipt of $<span id="xdx_908_eus-gaap--NonoperatingGainsLosses_pn5n6_c20260401__20260630__srt--LitigationCaseAxis__custom--ToddVAnsonMember_zrTulMiyrRof" title="Nonoperating gain">39.2</span> million representing 50% of the court-approved settlement payments under the Section 16(b) litigation settlement agreements. The cash provided by financing activities of $<span id="xdx_900_eus-gaap--NetCashProvidedByUsedInFinancingActivities_pn3n3_dxL_c20260101__20260630_z2uPIr9fbKwi" title="Cash provided by financing activities::XDX::1672"><span style="-sec-ix-hidden: xdx2ixbrl1092">1.7</span></span> million was primarily due to the drawdowns, net of repayments and debt issuance costs, from production facilities of $<span id="xdx_90F_ecustom--RepaymentsOfLinesOfCreditNet_pn5n6_c20260101__20260630_zrB7GkHfcGF9" title="Repayment of production facility, net">1.2</span> million, proceeds from a warrant exercise of $<span id="xdx_903_eus-gaap--ProceedsFromWarrantExercises_pn3n3_dxL_c20260101__20260630_zFdK8iBDbKJc" title="Proceeds from warrant exercises::XDX::570"><span style="-sec-ix-hidden: xdx2ixbrl1096">0.6</span></span> million, partially offset by finance lease payments of $<span id="xdx_907_eus-gaap--FinanceLeasePrincipalPayments_pn3n3_dxL_c20260101__20260630_zqRKGrLVr7T5" title="Lease payments::XDX::94"><span style="-sec-ix-hidden: xdx2ixbrl1098">0.1</span></span> million. The cash used in investing activities of $<span id="xdx_90E_eus-gaap--NetCashProvidedByUsedInInvestingActivities_iN_pn3n3_dixL_c20260101__20260630_zboJor31I015" title="Net cash used in investing activities::XDX::28826"><span style="-sec-ix-hidden: xdx2ixbrl1100">28.8</span></span> million was primarily due to the investment of settlement proceeds in marketable securities of $<span id="xdx_909_eus-gaap--PaymentsToAcquireMarketableSecurities_pn3n3_dxL_c20260101__20260630_ziu0hHOBKxv7" title="::XDX::32754"><span style="-sec-ix-hidden: xdx2ixbrl1101">32.8</span></span> million, offset by the proceeds received from the redemption of marketable securities purchased in prior periods of $<span id="xdx_909_eus-gaap--ProceedsFromSaleAndMaturityOfMarketableSecurities_pn3n3_dxL_c20260101__20260630_zTg2IRHCVZRb" title="Proceeds received from redemption of marketable securities::XDX::4003"><span style="-sec-ix-hidden: xdx2ixbrl1103">4</span></span>.0 million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company received aggregate cash of $39.2 million representing 50% of the court-approved settlement payments under the Section 16(b) litigation settlement agreements. The Settling Parties agreed to pay the Company aggregate settlement amounts of $78.5 million, minus fees and expenses of plaintiff’s counsel (in an amount not yet determined), subject to certain terms and conditions, and the parties agreed to mutual releases. Pursuant to the settlement agreements, 50% of each settlement amount, or $39.2 million in the aggregate, was paid directly to the Company during June 2026, and the remaining 50% was deposited into escrow to fund the court-awarded fees and expenses of plaintiff’s counsel, with any residual balance payable to the Company after the applicable approval orders become final. These receipts are non-recurring and non-operating in nature and do not represent a source of operating cash flow. The Company used a significant portion of these receipts to purchase $32.3 million of available-for-sale securities, primarily U.S. Treasury securities. As a result, the settlement receipts are reflected principally in the Company’s marketable securities balance rather than in its ending cash balance. The Company holds these securities as a source of liquidity and expects to draw on them to fund working capital and operating requirements. The Company has not received, and has not recognized, the portion of the settlement deposited into escrow. Any residual amounts distributable to the Company will become available as a source of liquidity if and when realized. On June 10, 2026, the Company entered into a standstill and voting agreement with the Anson Parties, under which the Company agreed to pay the Anson Parties $4.0 million and the Anson Parties agreed to certain voting commitments and standstill restrictions through June 11, 2027.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the Company held available-for-sale marketable securities with a fair value of $<span id="xdx_909_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20260630_zVdYiShgcYFb" title="Marketable securities::XDX::32763"><span style="-sec-ix-hidden: xdx2ixbrl1105">32.8</span></span> million, compared to $<span id="xdx_90E_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20251231_zcRdKgqGkINj" title="Marketable securities::XDX::3978"><span style="-sec-ix-hidden: xdx2ixbrl1107">4</span></span>.0 million as of December 31, 2025, representing an increase of $<span id="xdx_901_eus-gaap--IncreaseDecreaseInMarketableSecuritiesRestricted_pn5n6_c20260101__20260630_zWXKpVFufxj2" title="Increase in marketable securities">28.8</span> million. The increase was primarily due to purchases of $<span id="xdx_900_eus-gaap--PaymentsToAcquireAvailableForSaleSecuritiesDebt_pn5n6_c20260101__20260630_zX77SZau3Mf9" title="Purchases of securities">32.3</span> million of securities funded by the proceeds received under the Section 16(b) litigation settlement, together with $<span id="xdx_90C_eus-gaap--PaymentsToAcquireAvailableForSaleSecuritiesDebt_pn5n6_c20260501__20260531_zTZwrMrMH4hj" title="Available-for-sale securities">0.5</span> million of securities purchased in May 2026, partially offset by $<span id="xdx_90D_eus-gaap--ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities_pn6n6_c20260101__20260630_zkBmSDxd7qx6" title="Securities redeemed maturity">4</span>.0 million of securities redeemed upon maturity during the six months ended June 30, 2026. The available-for-sale securities consist principally of U.S. Treasury securities and are available to the Company as a source of liquidity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”), which contemplates continuation of the Company as a going concern. The evaluation was performed in accordance with ASC 205, <i>Presentation of Financial Statements - Going Concern (Subtopic 205-40). </i>Historically, the Company has incurred net losses. For the six months ended June 30, 2026 and June 30, 2025, the Company reported net income of $<span id="xdx_909_eus-gaap--ProfitLoss_pn3n3_dxL_c20260101__20260630_znWwW64VITmc" title="Net loss::XDX::20544"><span style="-sec-ix-hidden: xdx2ixbrl1117">20.5</span></span> million and a net loss of $<span id="xdx_906_eus-gaap--ProfitLoss_iN_pn3n3_dixL_c20250101__20250630_zRCusNf9C1w9" title="Net loss::XDX::12858"><span style="-sec-ix-hidden: xdx2ixbrl1119">12.9</span></span> million, respectively. Net income for the current quarter was driven primarily by a non-recurring, non-operating cash receipt of $<span id="xdx_902_ecustom--NonOperatingCash_pn5n6_c20260101__20260630_zwVBaW2Lcy55" title="Non-operating cash receipt">39.2</span> million representing 50% of the court-approved settlement payments under the Section 16(b) litigation settlement agreements. The Company reported net cash provided by operating activities of $<span id="xdx_905_eus-gaap--NetCashProvidedByUsedInOperatingActivities_pn3n3_dxL_c20260101__20260630_zAkBmxLoSc9d" title="Net cash used in operating activities::XDX::31432"><span style="-sec-ix-hidden: xdx2ixbrl1123">31.4</span></span> million, and cash used in operating activities of $<span id="xdx_90E_eus-gaap--NetCashProvidedByUsedInOperatingActivities_pn3n3_dixL_c20250101__20250630_zxSCLfs8tA7c" title="Net cash used in operating activities::XDX::6290"><span style="-sec-ix-hidden: xdx2ixbrl1125">6.3</span></span> million for the six months ended June 30, 2026 and June 30, 2025, respectively. As of June 30, 2026, the Company had an accumulated deficit of $<span id="xdx_907_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pn3n3_dixL_c20260630_zONlepBRulO7" title="Accumulated deficit::XDX::743197"><span style="-sec-ix-hidden: xdx2ixbrl1127">743.2</span></span> million and total stockholders’ equity of $<span id="xdx_906_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iI_pn3n3_dxL_c20260630_zlo0bv669yIb" title="Total stockholders' equity::XDX::53625"><span style="-sec-ix-hidden: xdx2ixbrl1129">53.6</span></span> million. As of June 30, 2026, the Company had total current assets of $<span id="xdx_90D_eus-gaap--AssetsCurrent_iI_pn3n3_dxL_c20260630_zbmlZVnfbDA4" title="Total current assets::XDX::63047"><span style="-sec-ix-hidden: xdx2ixbrl1131">63</span></span>.0 million, including cash of $<span id="xdx_904_eus-gaap--Cash_iI_pn3n3_dxL_c20260630_zdcQ6tMSBPS2" title="Cash::XDX::7742"><span style="-sec-ix-hidden: xdx2ixbrl1133">7.7</span></span> million, and total current liabilities of $<span id="xdx_90E_eus-gaap--LiabilitiesCurrent_iI_pn3n3_dxL_c20260630_zRRFkCkNj4Qj" title="Total current liabilities::XDX::31599"><span style="-sec-ix-hidden: xdx2ixbrl1135">31.6</span></span> million. The Company had working capital of $<span id="xdx_903_ecustom--WorkingCapital_iI_pn5n6_c20260630_zzATi9Qf1zq8" title="Working capital">31.4</span> million as of June 30, 2026, compared to working capital of $<span id="xdx_90D_ecustom--WorkingCapital_iI_pn5n6_c20251231_zIwSEeyZGU0j" title="Working capital">2.3</span> million as of December 31, 2025. In October 2025, the Company closed an offering and received an aggregate gross proceeds of approximately $<span id="xdx_90B_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_pn5n6_c20251001__20251031_zQlXSTdtSGVi" title="Aggregate gross proceeds from offering">7.3</span> million. During the six months ended June 30, 2026, the Company continued to navigate macroeconomic challenges in the animation and advertising industries, including ongoing government tariffs and intensified competition. In prior periods, the Company demonstrated resilience in its financing activities, having successfully raised net proceeds through public offerings, and continued to explore opportunities to further strengthen its financial position. In parallel, management plans to preserve liquidity, as needed, by implementing cost-saving measures. For example, during the six months ended June 30, 2026, in order to improve liquidity, the Company settled approximately $<span id="xdx_90D_eus-gaap--AccountsPayableOtherCurrent_iI_pn5n6_c20260630_zE5mODos4Q32" title="Outstanding accounts payable">1.7</span> million of outstanding accounts payable in a transaction under Section 3(a)(10) of the Securities Act. In addition, during the six months ended June 30, 2026, the Company received $<span id="xdx_900_eus-gaap--ProceedsFromLegalSettlements_pn5n6_c20260101__20260630_ztLzhCHmsU4" title="Cash proceeds from the settlement">39.2</span> million in direct cash proceeds from the settlement of the Section 16(b) litigation, which the Company has substantially deployed into available-for-sale marketable securities as a source of liquidity. Management has evaluated the significance of these conditions in relation to the Company’s ability to meet its obligations and determined that the Company has sufficient cash, marketable securities and investments to fund operations for at least the next <span id="xdx_90B_ecustom--OprationsFundingDuration_dtM_c20260101__20260630_zYZZp8zQy7Ul" title="Oprations funding duration">12</span> months from the issuance date of this 10-Q.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> 1800000 3148535 1000000 1695072 600000 977360 -100000 1100000 2001797 300000 551250 600000 3000000 6903049 9903049 7300000 75000 693213 39200000 -4000000 300000 500000 300000 0.50 0.50 15100000 4200000 39200000 1200000 28800000 32300000 500000 4000000 39200000 31400000 2300000 7300000 1700000 39200000 P12M <p id="xdx_800_eus-gaap--SignificantAccountingPoliciesTextBlock_zLqQhTJdkwu4" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 2: <span id="xdx_82E_zLeNXsplOX7d">Basis of Presentation and Summary of Significant Accounting Policies</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-style: normal">The accompanying interim condensed consolidated financial statements of the Company have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and are consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2026. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the condensed consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-style: normal">The accompanying interim condensed consolidated financial statements are unaudited, but in the opinion of management, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the interim financial statements. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the Company’s 2025 Annual Report.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-style: normal">The following is provided to update the Company’s significant accounting policies previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 31, 2026.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_84D_eus-gaap--DerivativesPolicyTextBlock_zCfxpF63Vg51" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_861_ztPiqhiOvrcg">Foreign Currency Forward Contracts</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, gross amounts of foreign currency (“FX”) forward contracts in an asset and liability position subject to a master netting arrangement resulted in a net asset of $<span id="xdx_90B_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pn3n3_c20260630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember_z04Aui9JOOP1" title="Net asset">5,137</span> recorded within Prepaid Expenses and Other Assets on the condensed consolidated balance sheets. As of December 31, 2025, gross amounts of foreign currency (“FX”) forward contracts in an asset and liability position subject to a master netting arrangement resulted in a net liability of $<span id="xdx_905_eus-gaap--OtherLiabilitiesCurrent_iI_pn3n3_c20251231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember_z6F5dxXsVi5e" title="Net liability">43,438</span> recorded within Other Current Liabilities on the condensed consolidated balance sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="color: #222222">For the </span>three months ended June 30, 2026 and June 30, 2025, <span style="color: #222222">the Company recorded </span>a realized loss <span style="color: #222222">of </span>$<span id="xdx_90B_eus-gaap--RealizedInvestmentGainsLosses_pp0p0_c20260401__20260630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zN2YQg1uuOV5" title="Realized investment loss">24,942</span> and $<span id="xdx_901_eus-gaap--RealizedInvestmentGainsLosses_pp0p0_c20250401__20250630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zTyRojtsNaka">24,070</span>, respectively, <span style="color: #222222">on FX forward contracts within Production Services Revenue on the condensed consolidated statements of operations. For the </span>six months ended June 30, 2026 and June 30, 2025, <span style="color: #222222">the Company recorded </span>a realized loss <span style="color: #222222">of </span>$<span id="xdx_902_eus-gaap--RealizedInvestmentGainsLosses_pn4n6_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zO23ksQmDXyc">0.05</span> million and $<span id="xdx_90E_eus-gaap--RealizedInvestmentGainsLosses_pn5n6_c20250101__20250630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zIPfWehbcUWg">0.2</span> million, respectively, <span style="color: #222222">on FX forward contracts within Production Services Revenue on the condensed consolidated statements of operations. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_843_ecustom--TradeAccountsReceivableAndAllowanceForCreditLossPolicyTextBlock_zMzMZVgJEQAe" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_863_zL3m5DSmdUMa">Trade Accounts Receivable and Allowance for Credit Loss</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes the activity in the allowance for credit losses related to trade accounts receivable as of June 30, 2026 and December 31, 2025 (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--AccountsReceivableAllowanceForCreditLossTableTextBlock_pn3n3_zV3XgpwnW25b" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Allowance for credit losses)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8BC_ze89TTUyEyIa" style="display: none">Schedule of allowance for credit losses trade accounts receivable</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; font-weight: bold">Balance, net as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_c20250101__20251231_zlYTgUIPfL9l" style="width: 13%; font-weight: bold; text-align: right" title="Allowance credit losses, at beginning">239</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Charged to costs and expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--CostsAndExpenses_pn3n3_c20250101__20251231_zMXgEHh09ad" style="text-align: right" title="Charged to costs and expenses">179</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Recoveries</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--AllowanceForDoubtfulAccountsReceivableRecoveries_iN_pn3n3_di_c20250101__20251231_zXWr7AyPEhq6" style="text-align: right" title="Recoveries">(39</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Write-offs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_iN_pn3n3_di_c20250101__20251231_zxF6NSndWXC" style="border-bottom: Black 1pt solid; text-align: right" title="Write-offs">(376</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Balance, net as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_c20260101__20260630_zOBJvVpOxxx3" style="font-weight: bold; text-align: right" title="Allowance credit losses, at beginning">3</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Charged to costs and expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--CostsAndExpenses_pn3n3_c20260101__20260630_zasW09Han856" style="border-bottom: Black 1pt solid; text-align: right" title="Charged to costs and expenses">4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance, net as of June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_pn3n3_c20260101__20260630_zDFMUlZW2Wpi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Allowance credit losses, at ending">7</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A2_zlXjcNpNitLf" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84F_ecustom--TaxCreditsReceivablePolicyTextBlock_zErq0k3gUoVf" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_868_znvnr6CHtbOe">Tax Credits Receivable</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company classifies the tax credits receivable as current based on their normal operating cycle. Government assistance, in the form of refundable tax credits, is relied upon as a key component of production financing. These amounts are claimed from the CRA through the submission of income tax returns and can take up to 18 to 24 months from the date of the first tax credit dollar being earned to being received. As this financing is fundamental to the Company’s ability to produce animated productions and generate revenue in the normal course of business, the normal operating cycle for such assets is considered to be a 12 to 24-month period, or the time it takes for the CRA to assess and refund the tax credits earned.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the Company had $<span id="xdx_908_ecustom--TaxCreditsReceivable_iI_pn5n6_c20260630__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zg2naIsjO8F8" title="Tax credits receivable">17.5</span> million a<span style="background-color: white">nd </span>$<span id="xdx_90B_ecustom--TaxCreditsReceivable_iI_pn5n6_c20251231__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zcfPQDUUJQDd" title="Tax credits receivable">16.8</span> million, respectively, in tax credit receivables related to Mainframe’s film and television productions, net of corresponding allowance for credit loss of <span style="background-color: white">$<span id="xdx_90E_ecustom--TaxCreditsReceivableAllowanceForTaxCreditsReceivable_iI_pn5n6_c20260630__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zDvHXkP7FC4a" title="Net of corresponding allowance for credit loss">0.4</span> million and $<span id="xdx_900_ecustom--TaxCreditsReceivableAllowanceForTaxCreditsReceivable_iI_pn5n6_c20251231__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zvTmL5F225U9" title="Net of corresponding allowance for credit loss">0.4</span> million, respectively. The Company did </span>not <span style="background-color: white">have any non-current tax credits</span> receivable as of June 30, 2026 and December 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_84F_eus-gaap--ConcentrationRiskCreditRisk_zOqvwRHnH4N1" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_869_zRIrejp8SjKd">Concentration of Risk</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company maintains its cash in bank deposit accounts which, at times, may exceed the Federal Deposit Insurance Corporation’s (“FDIC”) or the Canadian Deposit Insurance Corporation’s (“CDIC”) insured amounts. Balances on interest bearing deposits at banks in the United States are insured by the FDIC up to $250,000 per account and deposits in banks in Canada are insured by the CDIC up to CAD 100,000. As of June 30, 2026 and December 31, 2025, the Company had eight and six bank deposit accounts with an aggregate uninsured balance of $<span id="xdx_90F_eus-gaap--CashUninsuredAmount_iI_pn5n6_c20260630_ztgzJsZvDsi" title="Aggregate uninsured balance">6.6</span> million and $<span id="xdx_909_eus-gaap--CashUninsuredAmount_iI_pn5n6_c20251231_zQiH6XJYmdRf" title="Aggregate uninsured balance">1.9</span> million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has a managed account with a financial institution. The managed account maintained its investments in marketable securities of approximately $<span id="xdx_901_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20260630_zXL7ie2qSUX3" title="Marketable securities::XDX::32763"><span style="-sec-ix-hidden: xdx2ixbrl1204">32.8</span></span> million as of June 30, 2026, and $<span id="xdx_902_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20251231_zTH29SpDJ7h4" title="Marketable securities::XDX::3978"><span style="-sec-ix-hidden: xdx2ixbrl1206">4</span></span>.0 million as of December 31, 2025. Assets in the managed account are protected by the Securities Investor Protection Corporation (“SIPC”) up to $500,000 (with a limit of $250,000 for cash). In addition, the financial institution provides additional “excess of SIPC” coverage which insures up to $1.0 billion. As of June 30, 2026 and December 31, 2025, the Company did not have account balances held at this financial institution that exceed the insured balances.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the Company had three customers, the accounts receivable for each of which exceeded 10% of the total accounts receivable. These customers accounted for an aggregate of <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_znTiFMP9is99" title="Concentration risk, percentage">69.6</span>% of the total accounts receivable as of June 30, 2026. As of December 31, 2025, the Company had three customers, the accounts receivable for each of which exceeded 10% of the total accounts receivable. These customers accounted for an aggregate of <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zivbtOtPTpEi" title="Concentration risk, percentage">54.5</span>% of the total accounts receivable as of December 31, 2025.</p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--SchedulesOfConcentrationOfRiskByRiskFactorTextBlock_zoMCmk0M65cb" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Concentration of risk)"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 46%"><span id="xdx_8B1_z2AaWdZrddD9" style="display: none">Schedule of concentration of risk</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; font-weight: bold; text-align: left">Customer A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersAMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zhb4WyTl4Vkd" title="Concentration risk, percentage">28.8</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: center"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer B</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersBMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zuFykE9hYDr6" title="Concentration risk, percentage">26.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zTcubRZqifsa" title="Concentration risk, percentage">14.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer D</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersDMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zPAbfIIf5e0g" title="Concentration risk, percentage">26.1</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer E</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersEMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zxEJC3DIEtX7" title="Concentration risk, percentage">17.3</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Customer F</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersFMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zgQCw3wQf9r1" title="Concentration risk, percentage">11.1</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td colspan="5" style="text-align: left">* Less than 10%</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zMP921WR0vwi" title="Concentration risk, percentage">74.2</span>% of the Company’s total revenue for the three months ended June 30, 2026. During the three months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--FourCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zmYXqHTJETWj" title="Concentration risk, percentage">86.6</span>% of the Company’s total revenue for the three months ended June 30, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zSpRiDzBrm78" title="Concentration risk, percentage">66.1</span>% of the Company’s total revenue for the six months ended June 30, 2026. During the six months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--FourCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zsFBocSIwq4f" title="Concentration risk, percentage">85.9</span>% of the Company’s total revenue for the six months ended June 30, 2025.</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 30%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 30%; font-weight: bold; text-align: left">Customer G</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zLl57tzhiGfj" title="Concentration risk, percentage">47.1</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zEHMAc0OrYud" title="Concentration risk, percentage">15.7</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNrJmky9REWe" title="Concentration risk, percentage">39.0</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zqxTAHmZoqj" title="Concentration risk, percentage">16.8</span>%</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zpIfy2800iSj" title="Concentration risk, percentage">15.3</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zUvCi6PwJsz1" title="Concentration risk, percentage">15.0</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zPiaOJFWMm94" title="Concentration risk, percentage">13.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zRO2lJZ0Gr19" title="Concentration risk, percentage">15.5</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer H</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_z2m1hPCGRPWj" title="Concentration risk, percentage">11.8</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zzOosYwbC5U8" title="Concentration risk, percentage">19.6</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zvIZ3q1IUuT1" title="Concentration risk, percentage">13.7</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNhAdZ1Sp9Ea" title="Concentration risk, percentage">19.5</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Customer I</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersIMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zM1kKxE9rMy2" title="Concentration risk, percentage">36.3</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersIMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_ze9qIVdKrnSi" title="Concentration risk, percentage">34.1</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">*</td><td colspan="12" style="text-align: left">Less than 10%</td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8AB_zspFJ81BaeUa" style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is significant financial risk associated with a dependence upon a small number of customers. The Company periodically assesses the financial strength of these customers and establishes allowances for any anticipated credit losses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_846_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zLeOmNqraFa4" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_866_zmas2drGlw18">Fair Value of Financial Instruments</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following table presents the fair values of the Company’s financial instruments measured on a recurring basis, categorized within the fair value hierarchy as of June 30, 2026 (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--MarketableSecuritiesTextBlock_pn3n3_zThFf2YQE61j" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Marketable securities)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8B4_z4f3Po5uy0Ui" style="display: none">Schedule of marketable securities measured at fair value on a recurring basis</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investments in Marketable Securities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zrQJHhi9kT1b" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zHKNuSckkGlj" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">–</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zNTmc9lWDuq8" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zVbTnLsQNJkb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zO6AATWk8Aif" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zD8U0OYuAPCj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investment in Equity Interest:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Investment in YFE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_z24sNxlYK1R1" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zRKacQzzn1Pi" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_988_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zAjGGoXsbcA3" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zF79ZtVFyCR8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zvJPTvDub0t7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630_zduMdIhNhLZj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; font-style: normal; text-align: left">Foreign Currency Forward Contracts:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Forward Contracts, net:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zlvOrgMigNK1" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_980_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zmhJuWPyEKR5" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zBlVpgqnO9uk" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zcrU29VOt144" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zTHGJ7LdjKe3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630_zZWWJBARXRm8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table presents the fair values of the Company’s financial instruments measured on a recurring basis, categorized within the fair value hierarchy as of December 31, 2025 (in thousands):</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investments in Marketable Securities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zTgTX2OVxYCe" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zXnQYSxtuCc9" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">–</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zyBwEXu9IScb" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zwU1cR0xlqz5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z7UXjmzpR1X7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zkirzH8fPGd7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investment in Equity Interest:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Investment in YFE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_985_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zQDRaW6CPVC1" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_981_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zcFBHlyTosO2" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_982_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zV8R4zmpxdUi" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zvYYVxlacP7c" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zT6KoxJQBFF5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231_zP5GwpF0OWD1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; font-style: normal; text-align: left">Foreign Currency Forward Contracts:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Forward Contracts, net:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zWRBYV9pE2Pc" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_z5aBr99Zm1E5" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_z65Y9E7OztHk" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zIKWugN0xrBa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zb6TTnYcW3g8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231_zYSQUZeEtgC3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_8AA_zLfQnquhsuSf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There were no transfers between Level 1, Level 2, or Level 3 during the three months ended June 30, 2026. <span id="xdx_908_eus-gaap--AllowanceForDoubtfulOtherReceivablesCurrent_iI_pn3n3_do_c20260630_z6dQfNIu6WTc" title="Allowance for credit losses"><span id="xdx_90B_eus-gaap--AllowanceForDoubtfulOtherReceivablesCurrent_iI_pn3n3_do_c20251231_z9Du2Mpz1lja" title="Allowance for credit losses">No</span></span> allowance for credit losses was recorded for marketable securities as of June 30, 2026 or December 31, 2025. For a description of the Company’s fair value methodologies and classification policies, refer to Note 2 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on March 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_846_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zki5HEVACr0f" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_867_zclJMJS9ucVb">Contingencies</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Between May 29, 2026 and June 11, 2026, the Company entered into settlement agreements with six defendants in the action styled <i>Todd Augenbaum v. Anson Investments Master Fund LP, et al., Case No. 1:22-cv-00249 (S.D.N.Y.)</i>, an action brought under Section 16(b) of the Securities Exchange Act of 1934 by a stockholder on behalf of and for the benefit of the Company, in which the Company is named only as a nominal defendant, seeking disgorgement of alleged short-swing profits realized by certain investors in the Company’s 2020 private placements. The Settling Parties agreed to pay the Company aggregate settlement amounts of $<span id="xdx_904_eus-gaap--PaymentsForLegalSettlements_pn5n6_c20260101__20260630__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_zRQpCWBww62" title="Payment for settlement">78.5</span> million, minus fees and expenses of plaintiff’s counsel (in an amount not yet determined), subject to certain terms and conditions, and the parties agreed to mutual releases. Pursuant to the settlement agreements, 50% of each settlement amount, or $<span id="xdx_908_ecustom--SettlementAmount_pn5n6_c20260101__20260630__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_zoDJIU93p5Vf" title="Settlement amount">39.2</span> million in the aggregate, was paid directly to the Company during June 2026, and the remaining 50% was deposited into escrow to fund the court-awarded fees and expenses of plaintiff’s counsel, with any residual balance payable to the Company after the applicable approval orders become final. The Company recognized the $<span id="xdx_908_eus-gaap--NonoperatingGainsLosses_pn5n6_c20260401__20260630__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_zdJVlkFqFdA2" title="Non-operating gain">39.2</span> million received as a non-recurring, non-operating gain, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations for the three months ended June 30, 2026. In accordance with ASC 450-30-25-1, any residual amounts distributable to the Company from escrow constitute a gain contingency and will be recognized if and when realized. In connection with the settlement with the Anson Investments Master Fund LP and its affiliates, on June 10, 2026, the Company entered into a standstill and voting agreement with the Anson Parties, under which the Company agreed to pay the Anson Parties $<span id="xdx_901_eus-gaap--RepaymentsOfRelatedPartyDebt_pn6n6_c20260609__20260610__srt--CounterpartyNameAxis__custom--AnsonMember__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_z4JFP5Ih8Dl9" title="Payment for parties">4</span>.0 million and the Anson Parties agreed to certain voting commitments and standstill restrictions through June 11, 2027. The Company recognized this amount as a non-operating loss, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations for the three months ended June 30, 2026. The related liability was included in current liabilities on the Company’s condensed consolidated balance sheet as of June 30, 2026 and was paid in July 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_845_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zdyAvUaoVWxf" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_869_zCygPvbeAM2b">New Accounting Standards Issued but Not Yet Adopted</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, <i>Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense.</i> This update mandates that public companies provide more detailed information about specific expenses in their financial statement notes. The effective date for this guidance is annual reporting periods beginning after December 15, 2026, with interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2025, the FASB issued ASU 2025-11, <i>Interim Reporting (Topic 270) Narrow-Scope Improvements</i>. The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. This update is effective for interim periods within annual reporting periods beginning after December 15, 2027. The Company does not expect it to have a material effect on its condensed consolidated financial statements and disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2025, the FASB issued ASU 2025-10, <i>Government Grants (Topic 832)</i>: <i>Accounting for Government Grants Received by Business Entities</i>, which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants. Under ASU 2025-10, government grants are recognized when it is probable that the entity will both comply with the conditions of the grant and the grant will be received. The ASU provides specific accounting models for grants related to assets and grants related to income, including options to recognize government grants as deferred income or as a reduction of the asset’s cost basis. The ASU also requires enhanced disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-10.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_84D_eus-gaap--DerivativesPolicyTextBlock_zCfxpF63Vg51" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_861_ztPiqhiOvrcg">Foreign Currency Forward Contracts</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, gross amounts of foreign currency (“FX”) forward contracts in an asset and liability position subject to a master netting arrangement resulted in a net asset of $<span id="xdx_90B_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pn3n3_c20260630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember_z04Aui9JOOP1" title="Net asset">5,137</span> recorded within Prepaid Expenses and Other Assets on the condensed consolidated balance sheets. As of December 31, 2025, gross amounts of foreign currency (“FX”) forward contracts in an asset and liability position subject to a master netting arrangement resulted in a net liability of $<span id="xdx_905_eus-gaap--OtherLiabilitiesCurrent_iI_pn3n3_c20251231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember_z6F5dxXsVi5e" title="Net liability">43,438</span> recorded within Other Current Liabilities on the condensed consolidated balance sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="color: #222222">For the </span>three months ended June 30, 2026 and June 30, 2025, <span style="color: #222222">the Company recorded </span>a realized loss <span style="color: #222222">of </span>$<span id="xdx_90B_eus-gaap--RealizedInvestmentGainsLosses_pp0p0_c20260401__20260630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zN2YQg1uuOV5" title="Realized investment loss">24,942</span> and $<span id="xdx_901_eus-gaap--RealizedInvestmentGainsLosses_pp0p0_c20250401__20250630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zTyRojtsNaka">24,070</span>, respectively, <span style="color: #222222">on FX forward contracts within Production Services Revenue on the condensed consolidated statements of operations. For the </span>six months ended June 30, 2026 and June 30, 2025, <span style="color: #222222">the Company recorded </span>a realized loss <span style="color: #222222">of </span>$<span id="xdx_902_eus-gaap--RealizedInvestmentGainsLosses_pn4n6_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zO23ksQmDXyc">0.05</span> million and $<span id="xdx_90E_eus-gaap--RealizedInvestmentGainsLosses_pn5n6_c20250101__20250630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--ForeignExchangeContractMember__srt--ProductOrServiceAxis__custom--ProductionServicesMember_zIPfWehbcUWg">0.2</span> million, respectively, <span style="color: #222222">on FX forward contracts within Production Services Revenue on the condensed consolidated statements of operations. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 5137000 43438000 24942 24070 50000.00 200000 <p id="xdx_843_ecustom--TradeAccountsReceivableAndAllowanceForCreditLossPolicyTextBlock_zMzMZVgJEQAe" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_863_zL3m5DSmdUMa">Trade Accounts Receivable and Allowance for Credit Loss</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes the activity in the allowance for credit losses related to trade accounts receivable as of June 30, 2026 and December 31, 2025 (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--AccountsReceivableAllowanceForCreditLossTableTextBlock_pn3n3_zV3XgpwnW25b" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Allowance for credit losses)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8BC_ze89TTUyEyIa" style="display: none">Schedule of allowance for credit losses trade accounts receivable</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; font-weight: bold">Balance, net as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_c20250101__20251231_zlYTgUIPfL9l" style="width: 13%; font-weight: bold; text-align: right" title="Allowance credit losses, at beginning">239</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Charged to costs and expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--CostsAndExpenses_pn3n3_c20250101__20251231_zMXgEHh09ad" style="text-align: right" title="Charged to costs and expenses">179</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Recoveries</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--AllowanceForDoubtfulAccountsReceivableRecoveries_iN_pn3n3_di_c20250101__20251231_zXWr7AyPEhq6" style="text-align: right" title="Recoveries">(39</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Write-offs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_iN_pn3n3_di_c20250101__20251231_zxF6NSndWXC" style="border-bottom: Black 1pt solid; text-align: right" title="Write-offs">(376</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Balance, net as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_c20260101__20260630_zOBJvVpOxxx3" style="font-weight: bold; text-align: right" title="Allowance credit losses, at beginning">3</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Charged to costs and expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--CostsAndExpenses_pn3n3_c20260101__20260630_zasW09Han856" style="border-bottom: Black 1pt solid; text-align: right" title="Charged to costs and expenses">4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance, net as of June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_pn3n3_c20260101__20260630_zDFMUlZW2Wpi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Allowance credit losses, at ending">7</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A2_zlXjcNpNitLf" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--AccountsReceivableAllowanceForCreditLossTableTextBlock_pn3n3_zV3XgpwnW25b" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Allowance for credit losses)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8BC_ze89TTUyEyIa" style="display: none">Schedule of allowance for credit losses trade accounts receivable</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; font-weight: bold">Balance, net as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_c20250101__20251231_zlYTgUIPfL9l" style="width: 13%; font-weight: bold; text-align: right" title="Allowance credit losses, at beginning">239</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Charged to costs and expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--CostsAndExpenses_pn3n3_c20250101__20251231_zMXgEHh09ad" style="text-align: right" title="Charged to costs and expenses">179</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Recoveries</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--AllowanceForDoubtfulAccountsReceivableRecoveries_iN_pn3n3_di_c20250101__20251231_zXWr7AyPEhq6" style="text-align: right" title="Recoveries">(39</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Write-offs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_iN_pn3n3_di_c20250101__20251231_zxF6NSndWXC" style="border-bottom: Black 1pt solid; text-align: right" title="Write-offs">(376</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Balance, net as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_c20260101__20260630_zOBJvVpOxxx3" style="font-weight: bold; text-align: right" title="Allowance credit losses, at beginning">3</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Charged to costs and expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--CostsAndExpenses_pn3n3_c20260101__20260630_zasW09Han856" style="border-bottom: Black 1pt solid; text-align: right" title="Charged to costs and expenses">4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance, net as of June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_pn3n3_c20260101__20260630_zDFMUlZW2Wpi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Allowance credit losses, at ending">7</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 239000 179000 39000 376000 3000 4000 7000 <p id="xdx_84F_ecustom--TaxCreditsReceivablePolicyTextBlock_zErq0k3gUoVf" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_868_znvnr6CHtbOe">Tax Credits Receivable</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company classifies the tax credits receivable as current based on their normal operating cycle. Government assistance, in the form of refundable tax credits, is relied upon as a key component of production financing. These amounts are claimed from the CRA through the submission of income tax returns and can take up to 18 to 24 months from the date of the first tax credit dollar being earned to being received. As this financing is fundamental to the Company’s ability to produce animated productions and generate revenue in the normal course of business, the normal operating cycle for such assets is considered to be a 12 to 24-month period, or the time it takes for the CRA to assess and refund the tax credits earned.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the Company had $<span id="xdx_908_ecustom--TaxCreditsReceivable_iI_pn5n6_c20260630__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zg2naIsjO8F8" title="Tax credits receivable">17.5</span> million a<span style="background-color: white">nd </span>$<span id="xdx_90B_ecustom--TaxCreditsReceivable_iI_pn5n6_c20251231__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zcfPQDUUJQDd" title="Tax credits receivable">16.8</span> million, respectively, in tax credit receivables related to Mainframe’s film and television productions, net of corresponding allowance for credit loss of <span style="background-color: white">$<span id="xdx_90E_ecustom--TaxCreditsReceivableAllowanceForTaxCreditsReceivable_iI_pn5n6_c20260630__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zDvHXkP7FC4a" title="Net of corresponding allowance for credit loss">0.4</span> million and $<span id="xdx_900_ecustom--TaxCreditsReceivableAllowanceForTaxCreditsReceivable_iI_pn5n6_c20251231__srt--ProductOrServiceAxis__custom--WowsFilmAndTelevisionProductionsMember_zvTmL5F225U9" title="Net of corresponding allowance for credit loss">0.4</span> million, respectively. The Company did </span>not <span style="background-color: white">have any non-current tax credits</span> receivable as of June 30, 2026 and December 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 17500000 16800000 400000 400000 <p id="xdx_84F_eus-gaap--ConcentrationRiskCreditRisk_zOqvwRHnH4N1" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_869_zRIrejp8SjKd">Concentration of Risk</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company maintains its cash in bank deposit accounts which, at times, may exceed the Federal Deposit Insurance Corporation’s (“FDIC”) or the Canadian Deposit Insurance Corporation’s (“CDIC”) insured amounts. Balances on interest bearing deposits at banks in the United States are insured by the FDIC up to $250,000 per account and deposits in banks in Canada are insured by the CDIC up to CAD 100,000. As of June 30, 2026 and December 31, 2025, the Company had eight and six bank deposit accounts with an aggregate uninsured balance of $<span id="xdx_90F_eus-gaap--CashUninsuredAmount_iI_pn5n6_c20260630_ztgzJsZvDsi" title="Aggregate uninsured balance">6.6</span> million and $<span id="xdx_909_eus-gaap--CashUninsuredAmount_iI_pn5n6_c20251231_zQiH6XJYmdRf" title="Aggregate uninsured balance">1.9</span> million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has a managed account with a financial institution. The managed account maintained its investments in marketable securities of approximately $<span id="xdx_901_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20260630_zXL7ie2qSUX3" title="Marketable securities::XDX::32763"><span style="-sec-ix-hidden: xdx2ixbrl1204">32.8</span></span> million as of June 30, 2026, and $<span id="xdx_902_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20251231_zTH29SpDJ7h4" title="Marketable securities::XDX::3978"><span style="-sec-ix-hidden: xdx2ixbrl1206">4</span></span>.0 million as of December 31, 2025. Assets in the managed account are protected by the Securities Investor Protection Corporation (“SIPC”) up to $500,000 (with a limit of $250,000 for cash). In addition, the financial institution provides additional “excess of SIPC” coverage which insures up to $1.0 billion. As of June 30, 2026 and December 31, 2025, the Company did not have account balances held at this financial institution that exceed the insured balances.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the Company had three customers, the accounts receivable for each of which exceeded 10% of the total accounts receivable. These customers accounted for an aggregate of <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_znTiFMP9is99" title="Concentration risk, percentage">69.6</span>% of the total accounts receivable as of June 30, 2026. As of December 31, 2025, the Company had three customers, the accounts receivable for each of which exceeded 10% of the total accounts receivable. These customers accounted for an aggregate of <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zivbtOtPTpEi" title="Concentration risk, percentage">54.5</span>% of the total accounts receivable as of December 31, 2025.</p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--SchedulesOfConcentrationOfRiskByRiskFactorTextBlock_zoMCmk0M65cb" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Concentration of risk)"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 46%"><span id="xdx_8B1_z2AaWdZrddD9" style="display: none">Schedule of concentration of risk</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; font-weight: bold; text-align: left">Customer A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersAMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zhb4WyTl4Vkd" title="Concentration risk, percentage">28.8</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: center"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer B</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersBMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zuFykE9hYDr6" title="Concentration risk, percentage">26.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zTcubRZqifsa" title="Concentration risk, percentage">14.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer D</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersDMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zPAbfIIf5e0g" title="Concentration risk, percentage">26.1</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer E</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersEMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zxEJC3DIEtX7" title="Concentration risk, percentage">17.3</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Customer F</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersFMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zgQCw3wQf9r1" title="Concentration risk, percentage">11.1</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td colspan="5" style="text-align: left">* Less than 10%</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zMP921WR0vwi" title="Concentration risk, percentage">74.2</span>% of the Company’s total revenue for the three months ended June 30, 2026. During the three months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--FourCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zmYXqHTJETWj" title="Concentration risk, percentage">86.6</span>% of the Company’s total revenue for the three months ended June 30, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zSpRiDzBrm78" title="Concentration risk, percentage">66.1</span>% of the Company’s total revenue for the six months ended June 30, 2026. During the six months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--FourCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zsFBocSIwq4f" title="Concentration risk, percentage">85.9</span>% of the Company’s total revenue for the six months ended June 30, 2025.</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 30%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 30%; font-weight: bold; text-align: left">Customer G</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zLl57tzhiGfj" title="Concentration risk, percentage">47.1</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zEHMAc0OrYud" title="Concentration risk, percentage">15.7</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNrJmky9REWe" title="Concentration risk, percentage">39.0</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zqxTAHmZoqj" title="Concentration risk, percentage">16.8</span>%</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zpIfy2800iSj" title="Concentration risk, percentage">15.3</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zUvCi6PwJsz1" title="Concentration risk, percentage">15.0</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zPiaOJFWMm94" title="Concentration risk, percentage">13.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zRO2lJZ0Gr19" title="Concentration risk, percentage">15.5</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer H</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_z2m1hPCGRPWj" title="Concentration risk, percentage">11.8</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zzOosYwbC5U8" title="Concentration risk, percentage">19.6</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zvIZ3q1IUuT1" title="Concentration risk, percentage">13.7</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNhAdZ1Sp9Ea" title="Concentration risk, percentage">19.5</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Customer I</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersIMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zM1kKxE9rMy2" title="Concentration risk, percentage">36.3</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersIMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_ze9qIVdKrnSi" title="Concentration risk, percentage">34.1</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">*</td><td colspan="12" style="text-align: left">Less than 10%</td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8AB_zspFJ81BaeUa" style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is significant financial risk associated with a dependence upon a small number of customers. The Company periodically assesses the financial strength of these customers and establishes allowances for any anticipated credit losses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 6600000 1900000 0.696 0.545 <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--SchedulesOfConcentrationOfRiskByRiskFactorTextBlock_zoMCmk0M65cb" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Concentration of risk)"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 46%"><span id="xdx_8B1_z2AaWdZrddD9" style="display: none">Schedule of concentration of risk</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; font-weight: bold; text-align: left">Customer A</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersAMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zhb4WyTl4Vkd" title="Concentration risk, percentage">28.8</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: center"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer B</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersBMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zuFykE9hYDr6" title="Concentration risk, percentage">26.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zTcubRZqifsa" title="Concentration risk, percentage">14.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer D</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersDMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zPAbfIIf5e0g" title="Concentration risk, percentage">26.1</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer E</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span style="font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersEMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zxEJC3DIEtX7" title="Concentration risk, percentage">17.3</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Customer F</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__srt--MajorCustomersAxis__custom--CustomersFMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zgQCw3wQf9r1" title="Concentration risk, percentage">11.1</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td colspan="5" style="text-align: left">* Less than 10%</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zMP921WR0vwi" title="Concentration risk, percentage">74.2</span>% of the Company’s total revenue for the three months ended June 30, 2026. During the three months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--FourCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zmYXqHTJETWj" title="Concentration risk, percentage">86.6</span>% of the Company’s total revenue for the three months ended June 30, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, three customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--ThreeCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zSpRiDzBrm78" title="Concentration risk, percentage">66.1</span>% of the Company’s total revenue for the six months ended June 30, 2026. During the six months ended June 30, 2025, four customers each accounted for more than 10% of the Company’s total consolidated revenue. These customers accounted for an aggregate of <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--FourCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zsFBocSIwq4f" title="Concentration risk, percentage">85.9</span>% of the Company’s total revenue for the six months ended June 30, 2025.</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 30%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 30%; font-weight: bold; text-align: left">Customer G</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zLl57tzhiGfj" title="Concentration risk, percentage">47.1</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zEHMAc0OrYud" title="Concentration risk, percentage">15.7</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNrJmky9REWe" title="Concentration risk, percentage">39.0</span>%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersGMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zqxTAHmZoqj" title="Concentration risk, percentage">16.8</span>%</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Customer C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zpIfy2800iSj" title="Concentration risk, percentage">15.3</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zUvCi6PwJsz1" title="Concentration risk, percentage">15.0</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zPiaOJFWMm94" title="Concentration risk, percentage">13.4</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersCMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zRO2lJZ0Gr19" title="Concentration risk, percentage">15.5</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Customer H</td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260401__20260630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_z2m1hPCGRPWj" title="Concentration risk, percentage">11.8</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zzOosYwbC5U8" title="Concentration risk, percentage">19.6</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zvIZ3q1IUuT1" title="Concentration risk, percentage">13.7</span>%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: center"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersHMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNhAdZ1Sp9Ea" title="Concentration risk, percentage">19.5</span>%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Customer I</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250401__20250630__srt--MajorCustomersAxis__custom--CustomersIMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zM1kKxE9rMy2" title="Concentration risk, percentage">36.3</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">*</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__srt--MajorCustomersAxis__custom--CustomersIMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_ze9qIVdKrnSi" title="Concentration risk, percentage">34.1</span>%</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">*</td><td colspan="12" style="text-align: left">Less than 10%</td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table> 0.288 0.264 0.144 0.261 0.173 0.111 0.742 0.866 0.661 0.859 0.471 0.157 0.390 0.168 0.153 0.150 0.134 0.155 0.118 0.196 0.137 0.195 0.363 0.341 <p id="xdx_846_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zLeOmNqraFa4" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_866_zmas2drGlw18">Fair Value of Financial Instruments</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following table presents the fair values of the Company’s financial instruments measured on a recurring basis, categorized within the fair value hierarchy as of June 30, 2026 (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--MarketableSecuritiesTextBlock_pn3n3_zThFf2YQE61j" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Marketable securities)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8B4_z4f3Po5uy0Ui" style="display: none">Schedule of marketable securities measured at fair value on a recurring basis</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investments in Marketable Securities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zrQJHhi9kT1b" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zHKNuSckkGlj" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">–</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zNTmc9lWDuq8" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zVbTnLsQNJkb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zO6AATWk8Aif" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zD8U0OYuAPCj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investment in Equity Interest:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Investment in YFE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_z24sNxlYK1R1" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zRKacQzzn1Pi" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_988_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zAjGGoXsbcA3" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zF79ZtVFyCR8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zvJPTvDub0t7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630_zduMdIhNhLZj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; font-style: normal; text-align: left">Foreign Currency Forward Contracts:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Forward Contracts, net:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zlvOrgMigNK1" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_980_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zmhJuWPyEKR5" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zBlVpgqnO9uk" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zcrU29VOt144" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zTHGJ7LdjKe3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630_zZWWJBARXRm8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table presents the fair values of the Company’s financial instruments measured on a recurring basis, categorized within the fair value hierarchy as of December 31, 2025 (in thousands):</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investments in Marketable Securities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zTgTX2OVxYCe" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zXnQYSxtuCc9" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">–</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zyBwEXu9IScb" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zwU1cR0xlqz5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z7UXjmzpR1X7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zkirzH8fPGd7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investment in Equity Interest:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Investment in YFE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_985_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zQDRaW6CPVC1" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_981_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zcFBHlyTosO2" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_982_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zV8R4zmpxdUi" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zvYYVxlacP7c" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zT6KoxJQBFF5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231_zP5GwpF0OWD1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; font-style: normal; text-align: left">Foreign Currency Forward Contracts:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Forward Contracts, net:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zWRBYV9pE2Pc" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_z5aBr99Zm1E5" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_z65Y9E7OztHk" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zIKWugN0xrBa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zb6TTnYcW3g8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231_zYSQUZeEtgC3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_8AA_zLfQnquhsuSf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There were no transfers between Level 1, Level 2, or Level 3 during the three months ended June 30, 2026. <span id="xdx_908_eus-gaap--AllowanceForDoubtfulOtherReceivablesCurrent_iI_pn3n3_do_c20260630_z6dQfNIu6WTc" title="Allowance for credit losses"><span id="xdx_90B_eus-gaap--AllowanceForDoubtfulOtherReceivablesCurrent_iI_pn3n3_do_c20251231_z9Du2Mpz1lja" title="Allowance for credit losses">No</span></span> allowance for credit losses was recorded for marketable securities as of June 30, 2026 or December 31, 2025. For a description of the Company’s fair value methodologies and classification policies, refer to Note 2 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on March 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--MarketableSecuritiesTextBlock_pn3n3_zThFf2YQE61j" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Basis of Presentation and Summary of Significant Accounting Policies (Details - Marketable securities)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8B4_z4f3Po5uy0Ui" style="display: none">Schedule of marketable securities measured at fair value on a recurring basis</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investments in Marketable Securities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zrQJHhi9kT1b" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zHKNuSckkGlj" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">–</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zNTmc9lWDuq8" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zVbTnLsQNJkb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zO6AATWk8Aif" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zD8U0OYuAPCj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investment in Equity Interest:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Investment in YFE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_z24sNxlYK1R1" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zRKacQzzn1Pi" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_988_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zAjGGoXsbcA3" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zF79ZtVFyCR8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zvJPTvDub0t7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20260630_zduMdIhNhLZj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">1,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; font-style: normal; text-align: left">Foreign Currency Forward Contracts:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Forward Contracts, net:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zlvOrgMigNK1" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_980_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zmhJuWPyEKR5" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zBlVpgqnO9uk" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zcrU29VOt144" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zTHGJ7LdjKe3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20260630_zZWWJBARXRm8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">5</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table presents the fair values of the Company’s financial instruments measured on a recurring basis, categorized within the fair value hierarchy as of December 31, 2025 (in thousands):</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investments in Marketable Securities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zTgTX2OVxYCe" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zXnQYSxtuCc9" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">–</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zyBwEXu9IScb" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Investments in marketable securities">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zwU1cR0xlqz5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z7UXjmzpR1X7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--USTreasuryMember_zkirzH8fPGd7" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investments in marketable securities">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Investment in Equity Interest:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Investment in YFE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_985_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zQDRaW6CPVC1" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_981_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zcFBHlyTosO2" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_982_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--InvestmentInYFEMember_zV8R4zmpxdUi" style="border-bottom: Black 1pt solid; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_ecustom--InvestmentInEquityInterest_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zvYYVxlacP7c" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zT6KoxJQBFF5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_ecustom--InvestmentInEquityInterest_iI_pn3n3_c20251231_zP5GwpF0OWD1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Investment in equity interest">5,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; font-style: normal; text-align: left">Foreign Currency Forward Contracts:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Forward Contracts, net:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_zWRBYV9pE2Pc" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_z5aBr99Zm1E5" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__custom--ForeignCurrencyForwardContractsMember_z65Y9E7OztHk" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_d0_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zIKWugN0xrBa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">–</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zb6TTnYcW3g8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_ecustom--ForeignCurrencyForwardContracts_iI_pn3n3_c20251231_zYSQUZeEtgC3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Foreign currency forward contracts">(43</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> 32763000 0 32763000 32763000 0 32763000 0 1863000 1863000 0 1863000 1863000 0 5000 5000 0 5000 5000 3978000 0 3978000 3978000 0 3978000 0 5481000 5481000 0 5481000 5481000 0 -43000 -43000 0 -43000 -43000 0 0 <p id="xdx_846_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zki5HEVACr0f" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_867_zclJMJS9ucVb">Contingencies</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Between May 29, 2026 and June 11, 2026, the Company entered into settlement agreements with six defendants in the action styled <i>Todd Augenbaum v. Anson Investments Master Fund LP, et al., Case No. 1:22-cv-00249 (S.D.N.Y.)</i>, an action brought under Section 16(b) of the Securities Exchange Act of 1934 by a stockholder on behalf of and for the benefit of the Company, in which the Company is named only as a nominal defendant, seeking disgorgement of alleged short-swing profits realized by certain investors in the Company’s 2020 private placements. The Settling Parties agreed to pay the Company aggregate settlement amounts of $<span id="xdx_904_eus-gaap--PaymentsForLegalSettlements_pn5n6_c20260101__20260630__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_zRQpCWBww62" title="Payment for settlement">78.5</span> million, minus fees and expenses of plaintiff’s counsel (in an amount not yet determined), subject to certain terms and conditions, and the parties agreed to mutual releases. Pursuant to the settlement agreements, 50% of each settlement amount, or $<span id="xdx_908_ecustom--SettlementAmount_pn5n6_c20260101__20260630__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_zoDJIU93p5Vf" title="Settlement amount">39.2</span> million in the aggregate, was paid directly to the Company during June 2026, and the remaining 50% was deposited into escrow to fund the court-awarded fees and expenses of plaintiff’s counsel, with any residual balance payable to the Company after the applicable approval orders become final. The Company recognized the $<span id="xdx_908_eus-gaap--NonoperatingGainsLosses_pn5n6_c20260401__20260630__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_zdJVlkFqFdA2" title="Non-operating gain">39.2</span> million received as a non-recurring, non-operating gain, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations for the three months ended June 30, 2026. In accordance with ASC 450-30-25-1, any residual amounts distributable to the Company from escrow constitute a gain contingency and will be recognized if and when realized. In connection with the settlement with the Anson Investments Master Fund LP and its affiliates, on June 10, 2026, the Company entered into a standstill and voting agreement with the Anson Parties, under which the Company agreed to pay the Anson Parties $<span id="xdx_901_eus-gaap--RepaymentsOfRelatedPartyDebt_pn6n6_c20260609__20260610__srt--CounterpartyNameAxis__custom--AnsonMember__us-gaap--TransactionTypeAxis__custom--SettlementAgreementsMember_z4JFP5Ih8Dl9" title="Payment for parties">4</span>.0 million and the Anson Parties agreed to certain voting commitments and standstill restrictions through June 11, 2027. The Company recognized this amount as a non-operating loss, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations for the three months ended June 30, 2026. The related liability was included in current liabilities on the Company’s condensed consolidated balance sheet as of June 30, 2026 and was paid in July 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 78500000 39200000 39200000 4000000 <p id="xdx_845_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zdyAvUaoVWxf" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_869_zCygPvbeAM2b">New Accounting Standards Issued but Not Yet Adopted</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, <i>Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense.</i> This update mandates that public companies provide more detailed information about specific expenses in their financial statement notes. The effective date for this guidance is annual reporting periods beginning after December 15, 2026, with interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2025, the FASB issued ASU 2025-11, <i>Interim Reporting (Topic 270) Narrow-Scope Improvements</i>. The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. This update is effective for interim periods within annual reporting periods beginning after December 15, 2027. The Company does not expect it to have a material effect on its condensed consolidated financial statements and disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2025, the FASB issued ASU 2025-10, <i>Government Grants (Topic 832)</i>: <i>Accounting for Government Grants Received by Business Entities</i>, which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants. Under ASU 2025-10, government grants are recognized when it is probable that the entity will both comply with the conditions of the grant and the grant will be received. The ASU provides specific accounting models for grants related to assets and grants related to income, including options to recognize government grants as deferred income or as a reduction of the asset’s cost basis. The ASU also requires enhanced disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-10.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_80D_eus-gaap--VariableInterestEntityDisclosureTextBlock_zSJYktfRp6pj" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 3: <span id="xdx_824_znbYCkbn7JP">Variable Interest Entity</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In July 2020, the Company entered into a binding term sheet with POW! Entertainment, LLC. (“POW”) pursuant to which the Company agreed to form an entity with POW to exploit certain rights in intellectual property created by Stan Lee, as well as the name and likeness of Stan Lee. The entity is called “Stan Lee Universe, LLC” (“SLU”). POW and the Company executed an operating agreement for the joint venture, effective as of June 1, 2021. The purpose of the acquisition was to enable the Company to assume the worldwide rights, in perpetuity, to the name, physical likeness, physical signature, live-action and animated motion picture, television, online, digital, publishing, comic book, merchandising and licensing rights to Stan Lee and over <span id="xdx_905_ecustom--NumberOfCreations_iI_uCreation_c20200731__srt--OwnershipAxis__custom--StanLeeUniverseMember_zNOVFxRzLLwd" title="Number of creations">100</span> original Stan Lee creations, from which the Company plans to develop and license multiple properties each year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and June 30, 2025, SLU generated a net loss of $<span id="xdx_908_eus-gaap--ProfitLoss_pn5n6_c20260101__20260630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_z6k6yOIuh7t" title="Net loss">0.2</span> million and $<span id="xdx_902_eus-gaap--ProfitLoss_pn5n6_c20250101__20250630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zPWU76ikyri6" title="Net loss">0.2</span> million, respectively. During the three months ended June 30, 2026 and June 30, 2025, SLU generated a net loss of $<span id="xdx_905_eus-gaap--ProfitLoss_pn5n6_c20260401__20260630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zA8a1xz3FvXd" title="Net loss">0.1</span> million and $<span id="xdx_905_eus-gaap--ProfitLoss_pn5n6_c20250401__20250630__srt--ConsolidatedEntitiesAxis__us-gaap--VariableInterestEntityPrimaryBeneficiaryMember_zwHmWI9N74Kd" title="Net loss">0.1</span> million, respectively. There were no contributions or distributions during the six months ended June 30, 2026 and June 30, 2025, and there were no changes in facts and circumstances that would result in a re-evaluation of the VIE assessment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 100 200000 200000 100000 100000 <p id="xdx_80B_eus-gaap--EquityMethodInvestmentsDisclosureTextBlock_zplaUxGKS1C6" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 4: <span id="xdx_82E_zs1mtKbyQgS2">Equity Investment</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company holds an equity investment in Your Family Entertainment AG (“YFE”), a publicly listed company on the Frankfurt Stock Exchange (ticker symbol “RTV”), headquartered in Germany. YFE is one of Europe’s leading independent children’s content providers, with a catalog of approximately 150 titles and 3,500 half-hour episodes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Company does not have a controlling financial interest in an entity but has the ability to exert significant influence over its operating and financial policies, the investment is accounted for under the equity method or, if elected, at fair value pursuant to the fair value option under U.S. GAAP. Significant influence is generally presumed to exist when the Company owns between <span id="xdx_90D_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember__srt--RangeAxis__srt--MinimumMember_z5tLDGIOWFtd" title="Ownership percentage">20</span>% and <span id="xdx_90E_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember__srt--RangeAxis__srt--MaximumMember_zTnNTbInhI2f" title="Ownership percentage">50</span>% of the common stock or in-substance common stock of the investee.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the time of the Company’s initial investment in 2021, the Company held a <span id="xdx_90B_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20211231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_zvScOTZ1GSLh" title="Equity method investments, ownership percentage">28.7</span>% ownership interest in YFE and determined that it had significant influence over the entity. Accordingly, the Company elected to account for the investment at fair value under the fair value option. Under this election, the investment is remeasured at fair value at each reporting period, with changes in fair value recorded through earnings.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subsequent to the Company’s initial investment, the Company’s ownership interest increased to <span id="xdx_900_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20220101__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_z91sdvf7rEml" title="Equity method investments, ownership percentage">44.8</span>% through participation in a public tender offer, bond conversions, and the exercise of subscription rights. The Company’s ownership interest was subsequently reduced to approximately <span id="xdx_90C_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20250930__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_zcAvNBOFZSHg" title="Equity method investments, ownership percentage">32.7</span>% through a partial disposition of shares in July 2025 and an exchange of shares in September 2025. Throughout this period, management determined that the Company did not obtain a controlling financial interest in YFE, and that significant influence was maintained at all times.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the Company owned 5,009,005 shares of YFE, representing ownership interests of <span id="xdx_905_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_zYxssZCT2ns2" title="Equity method investments, ownership percentage">32.2</span>% and <span id="xdx_908_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pip0_dp_c20251231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_zfcnnAjegTDl" title="Equity method investments, ownership percentage">32.5</span>%, respectively. The fair value of the investment is determined based on the quoted closing market price of YFE’s shares on the Frankfurt Stock Exchange as of each reporting date, remeasured from Euro to U.S. dollars at the period-end exchange rate.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the fair value of the investment was $<span id="xdx_905_eus-gaap--EquityMethodInvestments_iI_pn5n6_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_z7WFdpqRvJS1" title="Fair value of investment">1.9</span> million, recorded within noncurrent assets on the Company’s condensed consolidated balance sheet. The net decrease in fair value of $<span id="xdx_901_ecustom--EquityMethodInvestmentFairValueNetGainLoss_pn5n6_c20260101__20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--YFEAcquisitionMember_zO1YmyZIbzx4" title="Net decrease fair value">3.6</span> million for the six months ended June 30, 2026 reflects the combined impact of a decline in YFE’s quoted share price and the effect of foreign currency remeasurement from Euro to U.S. dollars. The total change in fair value is recorded within Other Income (Expense), net in the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Management concluded that the Company continues to exercise significant influence over YFE and therefore continues to account for the investment at fair value under the fair value option.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p> 0.20 0.50 0.287 0.448 0.327 0.322 0.325 1900000 3600000 <p id="xdx_801_eus-gaap--FinancialInstrumentsDisclosureTextBlock_zlUUIhqehKSj" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 5: <span id="xdx_822_zt1MwfosiRmb">Marketable Securities</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company classifies and accounts for its marketable debt securities as available-for-sale (“AFS”) and the securities are stated at fair value in accordance with ASC 326, <i>Financial Instruments - Credit Losses</i>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company redeemed marketable securities for proceeds of $<span id="xdx_901_eus-gaap--ProceedsFromSaleAndMaturityOfMarketableSecurities_pn3n3_dxL_c20260101__20260630_zsJN3L84Qr3a" title="Proceeds from marketable securities redeemed::XDX::4003"><span style="-sec-ix-hidden: xdx2ixbrl1405">4</span></span>.0 million, and purchased an additional $<span id="xdx_90D_eus-gaap--PaymentsToAcquireMarketableSecurities_pn3n3_dxL_c20260101__20260630_zooDhTaxpHza" title="Purchased marketable securities::XDX::32754"><span style="-sec-ix-hidden: xdx2ixbrl1407">32.8</span></span> million of U.S. Treasury securities, classified as available-for-sale. The increase from December 31, 2025 was primarily funded by proceeds received in the second quarter of 2026 from settlements reached with several defendants in the Section 16(b) Litigation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The investments in marketable securities as of June 30, 2026 had an adjusted cost basis of $<span id="xdx_907_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_dxL_c20260630_z3a6AuGgd8Id" title="Investments in marketable securities, amortized cost::XDX::32754"><span style="-sec-ix-hidden: xdx2ixbrl1409">32.8</span></span> million and a market value of $<span id="xdx_909_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20260630_zhgcEpj7EYN9" title="Marketable securities::XDX::32763"><span style="-sec-ix-hidden: xdx2ixbrl1411">32.8</span></span> million. The balances consisted of the following securities <span style="background-color: white">(in thousands)</span>:</p> <table cellpadding="0" cellspacing="0" id="xdx_899_eus-gaap--DebtSecuritiesAvailableForSaleTableTextBlock_pn3n3_z3lHuLkl8eSf" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Marketable Securities (Details - Investments in marketable securities)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8B0_zixPegBPmPma" style="display: none">Schedule of marketable securities</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Adjusted Cost</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Unrealized <br/> Gain (Loss)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zyGsIorvf8tb" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Adjusted Cost">32,754</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_z7SLPLd3h4kd" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Unrealized Gain (Loss)">9</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zXq4lY0U5pWc" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Fair Value">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20260630_zKRgkWLCyEZa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Adjusted Cost">32,754</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20260630_zO91e4LBBHSj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Unrealized Gain (Loss)">9</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630_zveymMIHxna9" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Fair Value">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The investments in marketable securities as of December 31, 2025 had an adjusted cost basis of $<span id="xdx_90A_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_dxL_c20251231_zBAbkfwuAXW6" title="::XDX::3953"><span style="-sec-ix-hidden: xdx2ixbrl1426">4</span></span>.0 million and a market value of $<span id="xdx_90F_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20251231_zdmfLwuYfnk3" title="::XDX::3978"><span style="-sec-ix-hidden: xdx2ixbrl1427">4</span></span>.0 million. The balances consisted of the following securities <span style="background-color: white">(in thousands)</span>:</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Adjusted Cost</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Unrealized<br/> Gain (Loss)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zgH9iSuECj9d" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Adjusted Cost">3,953</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zf0bXB3MGx41" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Unrealized Gain (Loss)">25</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zhRtph2nWHf7" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Fair Value">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20251231_zgGE9cdYQRWd" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Adjusted Cost">3,953</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20251231_zljCSBGbXoHg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Unrealized Gain (Loss)">25</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231_z7qRYXGPXWSb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Fair Value">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A4_zC7OuHB8c8T6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span id="xdx_90F_ecustom--DebtSecuritiesAvailableForSaleUnrealizedLossPositionPeriodDescription_c20260101__20260630_zlLqejUTmt3e" title="Debt securities available for description">The Company holds seven AFS securities, four of which were in an unrealized gain position and none had been in an unrealized loss position for a period longer than 12 months as of June 30, 2026.</span> The Company reports the net unrealized gains and losses in accumulated other comprehensive income (loss), a component of stockholders’ equity. As of June 30, 2026 and December 31, 2025, an allowance for credit loss was <span id="xdx_905_eus-gaap--DebtSecuritiesAvailableForSaleAllowanceForCreditLoss_iI_pn3n3_do_c20260630_zv3XqrpUueD3" title="Allowance for credit loss"><span id="xdx_907_eus-gaap--DebtSecuritiesAvailableForSaleAllowanceForCreditLoss_iI_pn3n3_do_c20251231_zFVX3aP8seX3" title="Allowance for credit loss">no</span></span>t recognized as the issuers of the securities had not established a cause for default, various rating agencies had reaffirmed each security’s investment grade status and the Company did not have the intent, nor is it required to sell its securities prior to recovery.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company did <span id="xdx_903_eus-gaap--DebtSecuritiesAvailableForSaleRealizedGainLoss_iN_pn3n3_dio_c20260101__20260630_zGV0ktu4SYD3" title="Realized gains or losses related to marketable securities">no</span>t record any realized gains or losses related to its marketable securities. During the six months ended June 30, 2025, the Company recorded realized losses related to its marketable securities of $<span id="xdx_904_eus-gaap--DebtSecuritiesAvailableForSaleRealizedGainLoss_iN_pn4n6_di_c20250101__20250630_zHareTj8b8nf" title="Realized gains or losses related to marketable securities">0.04</span> million primarily due to selling securities prior to maturity to provide additional liquidity for general operating needs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The contractual maturities of the Company’s marketable investments as of June 30, 2026 were as follows (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--InvestmentsClassifiedByContractualMaturityDateTableTextBlock_pn3n3_zTXRIwy98wW6" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Marketable Securities (Details - Contractual maturities)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B1_zQSLFa4CMhx9" style="display: none">Schedule of contractual maturities of marketable investments</span></td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49C_20260630_z7kj4mrBx1f3" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value</td></tr> <tr id="xdx_407_eus-gaap--AvailableForSaleSecuritiesDebtMaturitiesWithinOneYearFairValue_iI_pn3n3_zPRQ9XIFUxbg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: left">Due within 1 year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">6,443</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsFairValue_iI_pn3n3_zlWEb29rqTX3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Due after 1 year through 5 years</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,320</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_z9sdZjGXpmP8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8AC_zAuoKfXudae3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_899_eus-gaap--DebtSecuritiesAvailableForSaleTableTextBlock_pn3n3_z3lHuLkl8eSf" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Marketable Securities (Details - Investments in marketable securities)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8B0_zixPegBPmPma" style="display: none">Schedule of marketable securities</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Adjusted Cost</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Unrealized <br/> Gain (Loss)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zyGsIorvf8tb" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Adjusted Cost">32,754</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_z7SLPLd3h4kd" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Unrealized Gain (Loss)">9</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zXq4lY0U5pWc" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Fair Value">32,763</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20260630_zKRgkWLCyEZa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Adjusted Cost">32,754</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20260630_zO91e4LBBHSj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Unrealized Gain (Loss)">9</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20260630_zveymMIHxna9" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Fair Value">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The investments in marketable securities as of December 31, 2025 had an adjusted cost basis of $<span id="xdx_90A_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_dxL_c20251231_zBAbkfwuAXW6" title="::XDX::3953"><span style="-sec-ix-hidden: xdx2ixbrl1426">4</span></span>.0 million and a market value of $<span id="xdx_90F_eus-gaap--MarketableSecurities_iI_pn3n3_dxL_c20251231_zdmfLwuYfnk3" title="::XDX::3978"><span style="-sec-ix-hidden: xdx2ixbrl1427">4</span></span>.0 million. The balances consisted of the following securities <span style="background-color: white">(in thousands)</span>:</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Adjusted Cost</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Unrealized<br/> Gain (Loss)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 55%; text-align: left; padding-bottom: 1pt">U.S. Treasury</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zgH9iSuECj9d" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Adjusted Cost">3,953</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zf0bXB3MGx41" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Unrealized Gain (Loss)">25</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231__us-gaap--FinancialInstrumentAxis__us-gaap--USTreasurySecuritiesMember_zhRtph2nWHf7" style="border-bottom: Black 1pt solid; width: 11%; text-align: right" title="Fair Value">3,978</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_pn3n3_c20251231_zgGE9cdYQRWd" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Adjusted Cost">3,953</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_pn3n3_c20251231_zljCSBGbXoHg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Unrealized Gain (Loss)">25</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_c20251231_z7qRYXGPXWSb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Fair Value">3,978</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 32754000 9000 32763000 32754000 9000 32763000 3953000 25000 3978000 3953000 25000 3978000 The Company holds seven AFS securities, four of which were in an unrealized gain position and none had been in an unrealized loss position for a period longer than 12 months as of June 30, 2026. 0 0 -0 -40000.00 <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--InvestmentsClassifiedByContractualMaturityDateTableTextBlock_pn3n3_zTXRIwy98wW6" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Marketable Securities (Details - Contractual maturities)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B1_zQSLFa4CMhx9" style="display: none">Schedule of contractual maturities of marketable investments</span></td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49C_20260630_z7kj4mrBx1f3" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value</td></tr> <tr id="xdx_407_eus-gaap--AvailableForSaleSecuritiesDebtMaturitiesWithinOneYearFairValue_iI_pn3n3_zPRQ9XIFUxbg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: left">Due within 1 year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">6,443</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsFairValue_iI_pn3n3_zlWEb29rqTX3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Due after 1 year through 5 years</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,320</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_pn3n3_z9sdZjGXpmP8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 7.35pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,763</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 6443000 26320000 32763000 <p id="xdx_806_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zTXhWd6X5wJ" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 6: <span id="xdx_82C_zEq0vhu0KXw2">Property and Equipment, net</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has property and equipment as follows (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--PropertyPlantAndEquipmentTextBlock_pn3n3_zJU7JRFVZhPl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%"><span id="xdx_8B5_z2gyFvf1VZYe" style="display: none">Schedule of property and equipment, net</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260630_zbZ4llHQftlk" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49F_20251231_znjKJF3dNnd" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Furniture and Equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zhtnRuwlSPP2" style="width: 13%; text-align: right" title="Property and Equipment, gross">98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zQCFnik2qMIg" style="width: 13%; text-align: right" title="Property and Equipment, gross">98</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Computer Equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zKEvddt1XThc" style="text-align: right">852</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zrWJw9F7pne2" style="text-align: right">827</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Leasehold Improvements</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zjrqhG8Npjqa" style="text-align: right">2,230</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z0GkIw6Lgo98" style="text-align: right">2,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Software</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--SoftwareDevelopmentMember_zAOaBh3ozLNc" style="border-bottom: Black 1pt solid; text-align: right" title="Property and Equipment, gross">367</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--SoftwareDevelopmentMember_zlaULmUcg65b" style="border-bottom: Black 1pt solid; text-align: right" title="Property and Equipment, gross">316</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzmsH_znu9n5slL1Q9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Property and Equipment, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,547</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,471</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzmsH_z4B3Xi6KwDS1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Less Accumulated Depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,002</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,626</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--PropertyAndEquipmentForeignCurrencyTranslationAdjustment_iI_pn3n3_maPPAENzmsH_zVraOjCxmPej" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(218</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(210</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzmsH_zwhNQROiVPug" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Property and Equipment, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,327</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,635</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8AF_zCgpkJwLHkAe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026 and June 30, 2025, the Company recorded depreciation expense of $<span id="xdx_904_eus-gaap--DepreciationAndAmortization_pn5n6_c20260401__20260630_ztz7CvggPCbd" title="Depreciation">0.2</span> million and $<span id="xdx_907_eus-gaap--DepreciationAndAmortization_pn5n6_c20250401__20250630_zbdw8aQj5A5f" title="Depreciation">0.1</span> million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and June 30, 2025, the Company recorded depreciation expense of $<span id="xdx_901_eus-gaap--DepreciationAndAmortization_pn5n6_c20260101__20260630_zvCNocEI4qTk" title="Depreciation">0.3</span> million and $<span id="xdx_90E_eus-gaap--DepreciationAndAmortization_pn5n6_c20250101__20250630_zlvyXpLPhYei" title="Depreciation">0.3</span> million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and June 30, 2025, the Company did <span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentTransfersAndChanges_do_c20260101__20260630_zuMZMnHMADM4" title="Write-down of property and equipment"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentTransfersAndChanges_do_c20250101__20250630_zzQRKpJz8Hff" title="Impairment charges">no</span></span>t incur any impairment charges on its property and equipment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--PropertyPlantAndEquipmentTextBlock_pn3n3_zJU7JRFVZhPl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%"><span id="xdx_8B5_z2gyFvf1VZYe" style="display: none">Schedule of property and equipment, net</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260630_zbZ4llHQftlk" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49F_20251231_znjKJF3dNnd" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Furniture and Equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zhtnRuwlSPP2" style="width: 13%; text-align: right" title="Property and Equipment, gross">98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zQCFnik2qMIg" style="width: 13%; text-align: right" title="Property and Equipment, gross">98</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Computer Equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zKEvddt1XThc" style="text-align: right">852</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zrWJw9F7pne2" style="text-align: right">827</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Leasehold Improvements</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zjrqhG8Npjqa" style="text-align: right">2,230</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z0GkIw6Lgo98" style="text-align: right">2,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Software</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--SoftwareDevelopmentMember_zAOaBh3ozLNc" style="border-bottom: Black 1pt solid; text-align: right" title="Property and Equipment, gross">367</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--SoftwareDevelopmentMember_zlaULmUcg65b" style="border-bottom: Black 1pt solid; text-align: right" title="Property and Equipment, gross">316</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzmsH_znu9n5slL1Q9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Property and Equipment, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,547</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,471</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzmsH_z4B3Xi6KwDS1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Less Accumulated Depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,002</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,626</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--PropertyAndEquipmentForeignCurrencyTranslationAdjustment_iI_pn3n3_maPPAENzmsH_zVraOjCxmPej" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(218</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(210</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzmsH_zwhNQROiVPug" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Property and Equipment, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,327</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,635</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 98000 98000 852000 827000 2230000 2230000 367000 316000 3547000 3471000 2002000 1626000 -218000 -210000 1327000 1635000 200000 100000 300000 300000 0 0 <p id="xdx_801_ecustom--LesseeRightOfUseAssetsNetDisclosureTextBlock_zgX3hMIOmjjb" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 7: <span id="xdx_82D_zksFXCL068R2">Leased Right-of-Use Assets, net</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Leased right-of-use (“ROU”) assets consisted of the following (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_899_ecustom--LeaseOperatingAndFinanceRightOfUseTableTextBlock_zeglY0jgeRef" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Leased Right-of-Use Assets, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%"><span id="xdx_8B1_zvo6JoFoD6Y7" style="display: none">Schedule of leased right of use assets</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49B_20260101__20260630_zFMJu2zcbl75" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_497_20250101__20251231_zwSRRsJmIKli" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityAbstract_iB_z6xr6DvVqeQc" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Operating Leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left">Office Lease Assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeLeaseAssetsMember_zslLwbbOBbIk" style="width: 13%; text-align: right" title="Office lease assets">9,341</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeLeaseAssetsMember_zZtxGiuS0HO1" style="width: 13%; text-align: right" title="Office lease assets">9,331</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Accumulated Amortization</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20260630_zBqRNmERf04" style="text-align: right" title="Operating Lease Accumulated Amortization">(4,057</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20251231_zH23HMXzRVn4" style="text-align: right" title="Operating Lease Accumulated Amortization">(3,601</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Finance Leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equipment Lease Assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FinanceLeaseRightOfUseAssetBeforeAccumulatedAmortization_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentLeaseAssetsMember_zgUqcIN19bA9" style="text-align: right" title="Equipment lease assets">3,521</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseRightOfUseAssetBeforeAccumulatedAmortization_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentLeaseAssetsMember_zQGnKEXf7zn9" style="text-align: right" title="Equipment lease assets">4,570</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Accumulated Amortization</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--FinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20260630_ziaY3HH4HGVa" style="text-align: right" title="Finance Lease Accumulated Amortization">(3,017</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20251231_zmbFls0pCfF2" style="text-align: right" title="Finance Lease Accumulated Amortization">(3,975</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Right-of-Use Assets, Net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20260630_zF5BhjrPUG53" style="text-align: right" title="Right-of-use assets, gross">5,788</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20251231_zF54Ii8MztFe" style="text-align: right" title="Right-of-use assets, gross">6,325</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Foreign Currency Translation Adjustment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortizationForeignCurrencyTranslationAdjustment_iI_pn3n3_c20260630_zZfucP9Vslei" style="text-align: right" title="Foreign Currency Translation Adjustment">(1,067</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortizationForeignCurrencyTranslationAdjustment_iI_pn3n3_c20251231_zwF9kBEOkgqj" style="text-align: right" title="Foreign Currency Translation Adjustment">(899</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Leased Right-of-Use Assets, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_ecustom--OperatingAndFinanceLeaseRightOfUseAsset_iI_pn3n3_c20260630_zzZ0kbj0h8Qb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Leased Right-of-Use Assets, net">4,721</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_ecustom--OperatingAndFinanceLeaseRightOfUseAsset_iI_pn3n3_c20251231_zo1vy2yFM1n6" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Leased Right-of-Use Assets, net">5,426</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A4_zpJLVyLb82Vj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the weighted-average lease term for the Company’s operating leases was <span id="xdx_90B_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtM_c20260630_zdxTTyIDegtj" title="Operating leases, weighted-average lease term">60</span> months and the weighted-average discount rate was <span id="xdx_90E_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pip0_dp_c20260630_zSqj0Q5VZnk7" title="Operating leases, weighted-average discount rate">11.4</span>%. As of December 31, 2025, the weighted-average lease term for operating leases was <span id="xdx_903_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtM_c20251231_zVyL7dxUiiWh" title="Operating leases, weighted-average lease term">64</span> months and the weighted-average discount rate was <span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pip0_dp_c20251231_zp2furnVFzK6" title="Operating leases, weighted-average discount rate">11.3</span>%.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026 and June 30, 2025, the Company recorded operating lease costs of $<span id="xdx_904_eus-gaap--OperatingLeaseExpense_pn5n6_c20260401__20260630_znGDdtKlrxCa" title="Operating lease costs">0.4</span> million and $<span id="xdx_906_eus-gaap--OperatingLeaseExpense_pn5n6_c20250401__20250630_zihGyTDdjb7h" title="Operating lease costs">0.4</span> million, respectively, included in General and Administrative Expenses on the Company’s condensed consolidated statements of operations. During the six months ended June 30, 2026 and June 30, 2025, the Company recorded operating lease costs of $<span id="xdx_90A_eus-gaap--OperatingLeaseExpense_pn5n6_c20260101__20260630_z6AIB05gMHnb" title="Operating lease costs">0.7</span> million and $<span id="xdx_903_eus-gaap--OperatingLeaseExpense_pn5n6_c20250101__20250630_zfLKHlquE4lc" title="Operating lease costs">0.7</span> million, respectively, included in General and Administrative Expenses on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026 and June 30, 2025, the Company recorded finance lease costs of $<span id="xdx_903_eus-gaap--LeaseCost_pp0p0_c20260401__20260630_zkn8UuLHvvvi" title="Finance lease costs">48,276</span> and $<span id="xdx_905_eus-gaap--LeaseCost_pn5n6_c20250401__20250630_zsLH3exHi5u9" title="Finance lease costs">0.1</span> million, respectively, primarily comprised of ROU amortization of $<span id="xdx_903_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pp0p0_c20260401__20260630_zbZ2kIYFFYh8" title="Finance lease, right-of-use asset, amortization">44,774</span> and $<span id="xdx_901_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn5n6_c20250401__20250630_zncFb7gZA38k" title="Finance lease, right-of-use asset, amortization">0.1</span> million, respectively. During the six months ended June 30, 2026 and June 30, 2025, the Company recorded finance lease costs of $<span id="xdx_904_eus-gaap--LeaseCost_pn5n6_c20260101__20260630_zF1eRfX8gZr2" title="Finance lease costs">0.1</span> million and $<span id="xdx_904_eus-gaap--LeaseCost_pn5n6_c20250101__20250630_zPP2JyhCElFf" title="Finance lease costs">0.2</span> million, respectively, primarily comprised of ROU amortization of $<span id="xdx_908_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn5n6_c20260101__20260630_z27zSKp9KmKk" title="Finance lease, right-of-use asset, amortization">0.1</span> million and $<span id="xdx_909_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn5n6_c20250101__20250630_zYiCEhoS6pN" title="Finance lease, right-of-use asset, amortization">0.2</span> million, respectively. ROU amortization is recorded within General and Administrative Expenses and accretion of interest expense is recorded within Other Income (Expense), net on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_899_ecustom--LeaseOperatingAndFinanceRightOfUseTableTextBlock_zeglY0jgeRef" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Leased Right-of-Use Assets, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%"><span id="xdx_8B1_zvo6JoFoD6Y7" style="display: none">Schedule of leased right of use assets</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49B_20260101__20260630_zFMJu2zcbl75" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_497_20250101__20251231_zwSRRsJmIKli" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityAbstract_iB_z6xr6DvVqeQc" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Operating Leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left">Office Lease Assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeLeaseAssetsMember_zslLwbbOBbIk" style="width: 13%; text-align: right" title="Office lease assets">9,341</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeLeaseAssetsMember_zZtxGiuS0HO1" style="width: 13%; text-align: right" title="Office lease assets">9,331</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Accumulated Amortization</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20260630_zBqRNmERf04" style="text-align: right" title="Operating Lease Accumulated Amortization">(4,057</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20251231_zH23HMXzRVn4" style="text-align: right" title="Operating Lease Accumulated Amortization">(3,601</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Finance Leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equipment Lease Assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FinanceLeaseRightOfUseAssetBeforeAccumulatedAmortization_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentLeaseAssetsMember_zgUqcIN19bA9" style="text-align: right" title="Equipment lease assets">3,521</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseRightOfUseAssetBeforeAccumulatedAmortization_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--EquipmentLeaseAssetsMember_zQGnKEXf7zn9" style="text-align: right" title="Equipment lease assets">4,570</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Accumulated Amortization</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--FinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20260630_ziaY3HH4HGVa" style="text-align: right" title="Finance Lease Accumulated Amortization">(3,017</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseRightOfUseAssetAccumulatedAmortization_iNI_pn3n3_di_c20251231_zmbFls0pCfF2" style="text-align: right" title="Finance Lease Accumulated Amortization">(3,975</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Right-of-Use Assets, Net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20260630_zF5BhjrPUG53" style="text-align: right" title="Right-of-use assets, gross">5,788</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--OperatingAndFinanceLeaseRightOfUseAssetBeforeAmortization_iI_pn3n3_c20251231_zF54Ii8MztFe" style="text-align: right" title="Right-of-use assets, gross">6,325</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Foreign Currency Translation Adjustment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortizationForeignCurrencyTranslationAdjustment_iI_pn3n3_c20260630_zZfucP9Vslei" style="text-align: right" title="Foreign Currency Translation Adjustment">(1,067</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--OperatingAndFinanceLeaseRightOfUseAssetAccumulatedAmortizationForeignCurrencyTranslationAdjustment_iI_pn3n3_c20251231_zwF9kBEOkgqj" style="text-align: right" title="Foreign Currency Translation Adjustment">(899</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Leased Right-of-Use Assets, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_ecustom--OperatingAndFinanceLeaseRightOfUseAsset_iI_pn3n3_c20260630_zzZ0kbj0h8Qb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Leased Right-of-Use Assets, net">4,721</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_ecustom--OperatingAndFinanceLeaseRightOfUseAsset_iI_pn3n3_c20251231_zo1vy2yFM1n6" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Leased Right-of-Use Assets, net">5,426</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 9341000 9331000 4057000 3601000 3521000 4570000 3017000 3975000 5788000 6325000 -1067000 -899000 4721000 5426000 P60M 0.114 P64M 0.113 400000 400000 700000 700000 48276 100000 44774 100000 100000 200000 100000 200000 <p id="xdx_803_eus-gaap--EntertainmentTextBlock_z96DmexY0tNh" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 8: <span id="xdx_828_zkTxgnqo1kW4">Film and Television Costs, net</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table highlights the activity in Film and Television Costs as of June 30, 2026 and December 31, 2025 (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_89E_ecustom--ScheduleOfFilmAndTelevisionCostsTableTextBlock_pn3n3_zxqGHUqLJk7f" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Film and Television Costs, net (Details - Activity in film and television costs)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8BB_zAurxGjW3Iaa" style="display: none"> Schedule of film and television costs activity</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; font-weight: bold">Film and Television Costs, net as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--FilmAndTelevisionCostsNet_iS_pn3n3_c20250101__20251231_z4NRWFG087z4" style="width: 13%; font-weight: bold; text-align: right" title="Film and television costs, net, Beginning balance">2,621</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Additions to Film and Television Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--FilmAndTelevisionCostsNetAdditions_pn3n3_c20250101__20251231_z2YEDSpy9tO1" style="text-align: right" title="Additions to Film and Television Costs">3,259</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Disposals</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--FilmAndTelevisionCostsNetDisposals_pn3n3_c20250101__20251231_zoPIFc0XFC8" style="text-align: right" title="Disposals">(88</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Film Amortization Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--FilmMonetizedInFilmGroupAmortizationExpense1_iN_pn3n3_di_c20250101__20251231_zYCr9Idew0J2" style="text-align: right" title="Film Amortization Expense">(932</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_ecustom--FilmAndTelevisionCostsNetForeignCurrencyTranslation_pn3n3_c20250101__20251231_zENHH9yiVT62" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">18</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Film and Television Costs, net as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_980_ecustom--FilmAndTelevisionCostsNet_iS_pn3n3_c20260101__20260630_z13IbEQlhgFe" style="font-weight: bold; text-align: right" title="Film and television costs, net, Beginning balance">4,878</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Additions to Film and Television Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--FilmAndTelevisionCostsNetAdditions_pn3n3_c20260101__20260630_z9wGPZELWqbh" style="text-align: right" title="Additions to Film and Television Costs">3,031</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Disposals</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--FilmAndTelevisionCostsNetDisposals_pn3n3_c20260101__20260630_zFondTw7dDrh" style="text-align: right" title="Disposals">(34</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Film Amortization Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--FilmMonetizedInFilmGroupAmortizationExpense1_iN_pn3n3_di_c20260101__20260630_zPzxQBGB0pO7" style="text-align: right" title="Film Amortization Expense">(549</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_ecustom--FilmAndTelevisionCostsNetForeignCurrencyTranslation_pn3n3_c20260101__20260630_zHAiP7lmCybl" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Film and Television Costs, net as of June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_ecustom--FilmAndTelevisionCostsNet_iE_pn3n3_c20260101__20260630_z0uPylXYi1Nf" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Film and television costs, net, Ending balance">7,283</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A3_z1uLcFawV1zk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026 and June 30, 2025, the Company recorded amortization expense of $<span id="xdx_90C_eus-gaap--FilmMonetizedInFilmGroupAmortizationExpense_pn5n6_c20260401__20260630_zZbmFmFHxiGd" title="Film amortization expense">0.2</span> million and $<span id="xdx_909_eus-gaap--FilmMonetizedInFilmGroupAmortizationExpense_pp0p0_c20250401__20250630_zo7AgnPILPrl" title="Film amortization expense">5,639</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and June 30, 2025, the Company recorded amortization expense of $<span id="xdx_900_eus-gaap--FilmMonetizedInFilmGroupAmortizationExpense_pn3n3_dxL_c20260101__20260630_zUk0Q15ayIW1" title="Film amortization expense::XDX::549"><span style="-sec-ix-hidden: xdx2ixbrl1605">0.5</span></span> million and $<span id="xdx_902_eus-gaap--FilmMonetizedInFilmGroupAmortizationExpense_pn3n3_dxL_c20250101__20250630_zH6QU6XBQO0h" title="Film amortization expense::XDX::107"><span style="-sec-ix-hidden: xdx2ixbrl1607">0.1</span></span> million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026, the Company did not record any write-downs. During the three months ended June 30, 2025, the Company recorded write-downs of $5,482 related to projects not advancing beyond the development stage. Based on the review performed by the executive team, it was determined that certain projects would no longer be pursued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and June 30, 2025, the Company recorded write-downs of $<span id="xdx_901_ecustom--FilmAndTelevisionCostsNetWriteDown_pp0p0_c20260101__20260630_zu6oA6SC2Fx1" title="Film and television impairment write-downs">34,492</span> and $<span id="xdx_90C_ecustom--FilmAndTelevisionCostsNetWriteDown_pp0p0_c20250101__20250630_z496k3k8PJOb" title="Film and television impairment write-downs">17,586</span>, respectively, related to projects not advancing beyond the development stage. Based on the review performed by the executive team, it was determined that certain projects would no longer be pursued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company did <span id="xdx_905_eus-gaap--AssetImpairmentCharges_pp0p0_do_c20260101__20260630_zvwDHFdn89z8" title="Impairment charges"><span id="xdx_90A_eus-gaap--AssetImpairmentCharges_pp0p0_do_c20250101__20250630_zywobHEOfFIh" title="Impairment charges">no</span></span>t record any impairment charges on film costs during the six months ended June 30, 2026 and June 30, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_89E_ecustom--ScheduleOfFilmAndTelevisionCostsTableTextBlock_pn3n3_zxqGHUqLJk7f" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Film and Television Costs, net (Details - Activity in film and television costs)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8BB_zAurxGjW3Iaa" style="display: none"> Schedule of film and television costs activity</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; font-weight: bold">Film and Television Costs, net as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_985_ecustom--FilmAndTelevisionCostsNet_iS_pn3n3_c20250101__20251231_z4NRWFG087z4" style="width: 13%; font-weight: bold; text-align: right" title="Film and television costs, net, Beginning balance">2,621</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Additions to Film and Television Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--FilmAndTelevisionCostsNetAdditions_pn3n3_c20250101__20251231_z2YEDSpy9tO1" style="text-align: right" title="Additions to Film and Television Costs">3,259</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Disposals</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--FilmAndTelevisionCostsNetDisposals_pn3n3_c20250101__20251231_zoPIFc0XFC8" style="text-align: right" title="Disposals">(88</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Film Amortization Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--FilmMonetizedInFilmGroupAmortizationExpense1_iN_pn3n3_di_c20250101__20251231_zYCr9Idew0J2" style="text-align: right" title="Film Amortization Expense">(932</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_ecustom--FilmAndTelevisionCostsNetForeignCurrencyTranslation_pn3n3_c20250101__20251231_zENHH9yiVT62" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">18</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Film and Television Costs, net as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_980_ecustom--FilmAndTelevisionCostsNet_iS_pn3n3_c20260101__20260630_z13IbEQlhgFe" style="font-weight: bold; text-align: right" title="Film and television costs, net, Beginning balance">4,878</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Additions to Film and Television Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--FilmAndTelevisionCostsNetAdditions_pn3n3_c20260101__20260630_z9wGPZELWqbh" style="text-align: right" title="Additions to Film and Television Costs">3,031</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Disposals</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--FilmAndTelevisionCostsNetDisposals_pn3n3_c20260101__20260630_zFondTw7dDrh" style="text-align: right" title="Disposals">(34</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Film Amortization Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--FilmMonetizedInFilmGroupAmortizationExpense1_iN_pn3n3_di_c20260101__20260630_zPzxQBGB0pO7" style="text-align: right" title="Film Amortization Expense">(549</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_ecustom--FilmAndTelevisionCostsNetForeignCurrencyTranslation_pn3n3_c20260101__20260630_zHAiP7lmCybl" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">(43</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Film and Television Costs, net as of June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_ecustom--FilmAndTelevisionCostsNet_iE_pn3n3_c20260101__20260630_z0uPylXYi1Nf" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Film and television costs, net, Ending balance">7,283</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 2621000 3259000 -88000 932000 18000 4878000 3031000 -34000 549000 -43000 7283000 200000 5639 34492 17586 0 0 <p id="xdx_80A_eus-gaap--GoodwillAndIntangibleAssetsDisclosureTextBlock_zWua5VJudiI5" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 9: <span id="xdx_829_zRonDasMH24i">Intangible Assets, net</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company had the following intangible assets <span style="background-color: white">(in thousands) with their weighted average remaining amortization period (in years)</span>:</p> <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock_pn3n3_zTuhkE8b07Z4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Intangible Assets, net (Details - Intangible assets)"> <tr style="vertical-align: bottom"> <td style="width: 49%"><span id="xdx_8B0_zTAz1KrD6qY4" style="display: none"> Schedule of intangible asset</span></td><td style="width: 2%"> </td> <td style="width: 13%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">Weighted Average Remaining Amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td> <td style="border-bottom: Black 1pt solid; text-align: center"><b>Period</b></td><td style="padding-bottom: 1pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><b>June 30, 2026</b></td><td style="padding-bottom: 1pt; text-align: left"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: left"><b>December 31, 2025</b></td><td style="padding-bottom: 1pt; text-align: left"><b> </b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; text-align: left">Customer Relationships</td><td style="width: 2%"> </td> <td style="width: 13%; text-align: center"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember_zsKoaMefViKc" title="Finite lived intangible assets">4.0</span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember_zsVt9Tocgsqd" style="width: 13%; text-align: right" title="Intangible assets, gross">17,325</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember_z8L5C6TWWOh1" style="width: 13%; text-align: right" title="Intangible Assets, gross">17,325</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Digital Networks</td><td> </td> <td style="text-align: center"><span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DigitalNetworksMember_zdiD3rvckYbk" title="Finite lived intangible assets">11.8</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DigitalNetworksMember_zXmRibjAVp5g" style="text-align: right" title="Intangible assets, gross">803</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DigitalNetworksMember_z2GLqQ7udpoh" style="text-align: right" title="Intangible Assets, gross">803</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Trade Names</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zqgX27MkkvI8" title="Finite lived intangible assets">64.9</span></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zbEmjjWo6qBl" style="border-bottom: Black 1pt solid; text-align: right" title="Intangible Assets, gross">9,198</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_z9E6y2h9o0q4" style="border-bottom: Black 1pt solid; text-align: right" title="Intangible Assets, gross">9,198</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Intangible Assets, gross</td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20260630_zPih1AGZYawa" style="text-align: right" title="Intangible Assets, gross">27,326</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231_z53Jt7OBYhkc" style="text-align: right" title="Intangible Assets, gross">27,326</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less Accumulated Amortization</td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_pn3n3_c20260630_zuixG3WjKnHd" style="text-align: right" title="Less Accumulated Amortization">(8,828</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_pn3n3_c20251231_zp1xJznXQge2" style="text-align: right" title="Less Accumulated Amortization">(7,833</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_ecustom--IntangibleAssetsForeignCurrencyTranslationAdjustment_iI_pn3n3_c20260630_zhfOjEPjCcwh" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">(2,320</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--IntangibleAssetsForeignCurrencyTranslationAdjustment_pn3n3_c20251231_zrSGRk7KdM57" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">(1,889</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Intangible Assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--IntangibleAssetsNetExcludingGoodwill_pn3n3_c20260630_zP4XyQjiNvG4" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Intangible Assets, net">16,178</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--IntangibleAssetsNetExcludingGoodwill_pn3n3_c20251231_z96zrG0UcUHb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Intangible Assets, net">17,604</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A6_zahVNeu0oxs5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026 and June 30, 2025, the Company recorded intangible asset amortization expense of $<span id="xdx_901_eus-gaap--AmortizationOfIntangibleAssets_pn5n6_c20260401__20260630_zlJTx0bJA2yi" title="Amortization expense">0.5</span> million and $<span id="xdx_909_eus-gaap--AmortizationOfIntangibleAssets_pn5n6_c20250401__20250630_z1Pm6ZiBwIAj" title="Amortization expense">0.5</span> million, respectively. During the six months ended June 30, 2026 and June 30, 2025, the Company recorded intangible asset amortization expense of $<span id="xdx_904_eus-gaap--AmortizationOfIntangibleAssets_pn6n6_c20260101__20260630_z9SDX7H74kH9" title="Amortization expense">1</span>.0 million and $<span id="xdx_90A_eus-gaap--AmortizationOfIntangibleAssets_pn6n6_c20250101__20250630_zw7nevqGLi83" title="Amortization expense">1</span>.0 million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Expected future amortization of intangible assets subject to amortization as of June 30, 2026 is as follows (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_pn3n3_zJkv6XgDbF7e" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Intangible Assets, net (Details - Intangible assets subject to amortization)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8B1_zpgUqGktdC6j" style="display: none"> Schedule of expected future intangible asset amortization</span></td><td> </td> <td colspan="3" id="xdx_498_20260630_zJdsy1ytWmN8" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Fiscal Year:</td><td> </td> <td colspan="3"> </td></tr> <tr id="xdx_404_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_pn3n3_maFLIANzp8d_zvEESZgqHpre" style="vertical-align: bottom; background-color: White"> <td style="width: 83%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">987</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_pn3n3_maFLIANzp8d_zOQNGFvwUG51" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,973</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_pn3n3_maFLIANzp8d_z9HpzhFPkQX6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,973</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_pn3n3_maFLIANzp8d_zu0iow7dm515" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,973</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_pn3n3_maFLIANzp8d_z5p0UZrpGc1b" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">871</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_pn3n3_maFLIANzp8d_zR4O2EWGqPeg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,835</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pn3n3_mtFLIANzp8d_zEHec9Gw4402" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10.85pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,612</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8AE_zPlrJS7bXUQ3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, $<span id="xdx_907_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_iI_pn5n6_c20260630__us-gaap--BusinessAcquisitionAxis__custom--WowMember__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zqwa9n9MLFqf" title="Intangible assets related to acquired trade">4.6</span> million and $<span id="xdx_903_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_iI_pn5n6_c20251231__us-gaap--BusinessAcquisitionAxis__custom--WowMember__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zPc5VWjdv1cl" title="Intangible assets related to acquired trade">4.7</span> million, respectively, of the Company’s intangible assets related to the acquired trade names from the Wow acquisition had indefinite lives and are not subject to amortization.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock_pn3n3_zTuhkE8b07Z4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Intangible Assets, net (Details - Intangible assets)"> <tr style="vertical-align: bottom"> <td style="width: 49%"><span id="xdx_8B0_zTAz1KrD6qY4" style="display: none"> Schedule of intangible asset</span></td><td style="width: 2%"> </td> <td style="width: 13%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">Weighted Average Remaining Amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td> <td style="border-bottom: Black 1pt solid; text-align: center"><b>Period</b></td><td style="padding-bottom: 1pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><b>June 30, 2026</b></td><td style="padding-bottom: 1pt; text-align: left"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: left"><b>December 31, 2025</b></td><td style="padding-bottom: 1pt; text-align: left"><b> </b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; text-align: left">Customer Relationships</td><td style="width: 2%"> </td> <td style="width: 13%; text-align: center"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember_zsKoaMefViKc" title="Finite lived intangible assets">4.0</span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember_zsVt9Tocgsqd" style="width: 13%; text-align: right" title="Intangible assets, gross">17,325</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember_z8L5C6TWWOh1" style="width: 13%; text-align: right" title="Intangible Assets, gross">17,325</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Digital Networks</td><td> </td> <td style="text-align: center"><span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DigitalNetworksMember_zdiD3rvckYbk" title="Finite lived intangible assets">11.8</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DigitalNetworksMember_zXmRibjAVp5g" style="text-align: right" title="Intangible assets, gross">803</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DigitalNetworksMember_z2GLqQ7udpoh" style="text-align: right" title="Intangible Assets, gross">803</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Trade Names</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zqgX27MkkvI8" title="Finite lived intangible assets">64.9</span></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zbEmjjWo6qBl" style="border-bottom: Black 1pt solid; text-align: right" title="Intangible Assets, gross">9,198</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_z9E6y2h9o0q4" style="border-bottom: Black 1pt solid; text-align: right" title="Intangible Assets, gross">9,198</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Intangible Assets, gross</td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20260630_zPih1AGZYawa" style="text-align: right" title="Intangible Assets, gross">27,326</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IntangibleAssetsGrossExcludingGoodwill_pn3n3_c20251231_z53Jt7OBYhkc" style="text-align: right" title="Intangible Assets, gross">27,326</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less Accumulated Amortization</td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_pn3n3_c20260630_zuixG3WjKnHd" style="text-align: right" title="Less Accumulated Amortization">(8,828</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_pn3n3_c20251231_zp1xJznXQge2" style="text-align: right" title="Less Accumulated Amortization">(7,833</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Foreign Currency Translation Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_ecustom--IntangibleAssetsForeignCurrencyTranslationAdjustment_iI_pn3n3_c20260630_zhfOjEPjCcwh" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">(2,320</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--IntangibleAssetsForeignCurrencyTranslationAdjustment_pn3n3_c20251231_zrSGRk7KdM57" style="border-bottom: Black 1pt solid; text-align: right" title="Foreign Currency Translation Adjustment">(1,889</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Intangible Assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--IntangibleAssetsNetExcludingGoodwill_pn3n3_c20260630_zP4XyQjiNvG4" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Intangible Assets, net">16,178</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--IntangibleAssetsNetExcludingGoodwill_pn3n3_c20251231_z96zrG0UcUHb" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Intangible Assets, net">17,604</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> P4Y 17325000 17325000 P11Y9M18D 803000 803000 P64Y10M24D 9198000 9198000 27326000 27326000 -8828000 -7833000 -2320000 -1889000 16178000 17604000 500000 500000 1000000 1000000 <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_pn3n3_zJkv6XgDbF7e" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Intangible Assets, net (Details - Intangible assets subject to amortization)"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span id="xdx_8B1_zpgUqGktdC6j" style="display: none"> Schedule of expected future intangible asset amortization</span></td><td> </td> <td colspan="3" id="xdx_498_20260630_zJdsy1ytWmN8" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Fiscal Year:</td><td> </td> <td colspan="3"> </td></tr> <tr id="xdx_404_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_pn3n3_maFLIANzp8d_zvEESZgqHpre" style="vertical-align: bottom; background-color: White"> <td style="width: 83%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">987</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_pn3n3_maFLIANzp8d_zOQNGFvwUG51" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,973</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_pn3n3_maFLIANzp8d_z9HpzhFPkQX6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,973</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_pn3n3_maFLIANzp8d_zu0iow7dm515" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,973</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_pn3n3_maFLIANzp8d_z5p0UZrpGc1b" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">871</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_pn3n3_maFLIANzp8d_zR4O2EWGqPeg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,835</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pn3n3_mtFLIANzp8d_zEHec9Gw4402" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10.85pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,612</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 987000 1973000 1973000 1973000 871000 3835000 11612000 4600000 4700000 <p id="xdx_804_eus-gaap--RevenueFromContractWithCustomerTextBlock_zBGtkvjuNBJi" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 10: <span id="xdx_820_zLqAQ3u7dM91">Deferred Revenue</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the Company had deferred revenue of $<span id="xdx_901_eus-gaap--ContractWithCustomerLiability_iI_pn5n6_c20260630_zrkliH39mHtb" title="Aggregate short term and long term deferred revenue">6.1</span> million and $<span id="xdx_90A_eus-gaap--ContractWithCustomerLiability_iI_pn5n6_c20251231_zfy9Q74OEA1h" title="Aggregate short term and long term deferred revenue">7.8</span> million, respectively. The decrease in deferred revenue is primarily related to production on various shows advancing to later stages of execution of the projects as of June 30, 2026, compared to the progress as of December 31, 2025. Deferred revenue balance mainly relates to cash received from customers for productions in progress. For fixed-fee production contracts, revenue is generally recognized upon completion and delivery of the production or upon achievement of specified contractual delivery milestones during the production process, depending on the terms of the underlying agreement. As production progresses and the Company satisfies its performance obligations, the related deferred revenue is recognized as revenue. Deferred revenue also includes both (i) variable fee contracts with licensees and customers in which the Company collected advances and minimum guarantees against future royalties and (ii) fixed fee contracts. The Company recognizes revenue related to these contracts when all revenue recognition criteria have been met.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> 6100000 7800000 <p id="xdx_809_eus-gaap--DebtDisclosureTextBlock_zFDEop2WCkWf" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 11: <span id="xdx_820_zfpaR8mqpeoe">Margin Loan</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the Company had <span id="xdx_902_eus-gaap--LineOfCredit_iI_pn3n3_do_c20260630_zLwD03Iftor1" title="Margin loan"><span id="xdx_906_eus-gaap--LineOfCredit_iI_pn3n3_do_c20251231_zp03w36sXjf2" title="Margin loan">no</span></span> outstanding margin loan balances. During the six months ended June 30, 2026, the Company borrowed an additional $<span id="xdx_900_eus-gaap--ProceedsFromLinesOfCredit_pn5n6_c20260101__20260630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zPN7KXuI2uod" title="Proceeds from lines of credit">3.7</span> million from its investment margin account and repaid $<span id="xdx_908_eus-gaap--RepaymentsOfLinesOfCredit_pn5n6_c20260101__20260630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_z7AgZ7CVm4jc" title="Repayments of lines of credit">3.7</span> million primarily with cash received from maturities of marketable securities. The borrowed amounts were primarily used for operational costs. The interest rates for the borrowings fluctuate based on the Fed Funds Upper Target plus <span id="xdx_903_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_dp_c20260101__20260630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zlApC55y15Aa" title="Debt instrument on variable rate">0.60</span>%. The weighted average interest rates on outstanding borrowing were <span id="xdx_902_eus-gaap--DebtWeightedAverageInterestRate_iI_pip0_dp_c20260630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zpgG1jfvnLVk" title="Weighted average interest rates">4.35</span>% during the six months ended June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and June 30, 2025, the Company incurred interest expense on the loan of $<span id="xdx_90B_eus-gaap--InterestExpenseDebt_pp0p0_c20260101__20260630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zH6yZ6daix3i" title="Interest expense">2,517</span> and $<span id="xdx_908_eus-gaap--InterestExpenseDebt_pp0p0_c20250101__20250630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zYbxKnkxKe4e" title="Interest expense">4,868</span>, respectively. During the three months ended June 30, 2026 and June 30, 2025, the Company incurred interest expense on the loan of $<span id="xdx_900_eus-gaap--InterestExpenseDebt_pp0p0_c20260401__20260630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zetpy3Veikg1" title="Interest expense">642</span> and $<span id="xdx_90C_eus-gaap--InterestExpenseDebt_pp0p0_c20250401__20250630__us-gaap--DebtInstrumentAxis__custom--MarginLoanMember_zZMo6AFvBMxl" title="Interest expense">3,062</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 0 0 3700000 3700000 0.0060 0.0435 2517 4868 642 3062 <p id="xdx_803_ecustom--BankIndebtednessAndProductionFacilitiesDisclosureTextBlock_zVDpPVSqXloj" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 12: <span id="xdx_821_zgIHwpUSnbb3">Bank Indebtedness and Production Facilities</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #222222; text-align: justify; text-indent: 0.5in">The Company has certain credit facilities that are comprised of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #222222; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Production Facilities, net</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The production facilities are used for financing specific productions. The Company’s production facilities bear interest at rates ranging from bank prime plus <span id="xdx_908_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_dp_c20260101__20260630__srt--RangeAxis__srt--MinimumMember__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zurPafctavFb" title="Debt instrument on variable rate">1.00</span>% - <span id="xdx_900_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_dp_c20260101__20260630__srt--RangeAxis__srt--MaximumMember__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_z10IOnhZdSW5" title="Debt instrument on variable rate">1.25</span>% per annum. <span style="color: #222222">The</span> production facilities are generally repayable on demand. Any borrowings under the production facilities are collateralized by a security interest in substantially all of the relevant production company’s tangible and intangible assets, including a combination of federal and provincial tax credits, other government incentives, production service agreements and license agreements as well as those of certain of our subsidiaries and related entities acting as guarantors of the production facilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the Company had an outstanding net balance of USD <span id="xdx_906_ecustom--ProductionFacilitiesNetCurrent_iI_pn5n6_c20260630__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zVuNFVUQKvfk" title="Production facilities net, current">12.9</span> million (CAD <span id="xdx_909_ecustom--ProductionFacilitiesNetCurrent_iI_pn5n6_uCAD_c20260630__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zOV2FBzY37E9" title="Production facilities net, current">18.4</span> million), including USD <span id="xdx_90B_ecustom--ProductionFacilitiesInterest_iI_pn5n6_c20260630__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zviVWARrDfTl" title="Production facilities interest">1.4</span> million (CAD <span id="xdx_900_ecustom--ProductionFacilitiesInterest_iI_pn5n6_uCAD_c20260630__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zHcn5Otngvr3" title="Production facilities interest">1.9</span> million) of interest, and USD <span id="xdx_903_ecustom--ProductionFacilitiesNetCurrent_iI_pn5n6_c20251231__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zdm3vZ9wONJf" title="Production facilities net, current">11.8</span> million (CAD <span id="xdx_90C_ecustom--ProductionFacilitiesNetCurrent_iI_pn5n6_uCAD_c20251231__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zm4z4iFDyJA1" title="Production facilities net, current">16.2</span> million), including USD <span id="xdx_90C_ecustom--ProductionFacilitiesInterest_iI_pn5n6_c20251231__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zxtgTxOPfOP3" title="Production facilities interest">1.1</span> million (CAD <span id="xdx_908_ecustom--ProductionFacilitiesInterest_iI_pn5n6_uCAD_c20251231__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zRV1nljkquy" title="Production facilities interest">1.5</span> million) of interest, respectively, recorded as Production Facilities, net within current liabilities on the Company’s condensed consolidated balance sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, Production Facilities, net includes unamortized debt issuance costs related to the issuance of production facilities of $<span id="xdx_90D_ecustom--ProductionFacilitiesUnamortizedDebtIssuanceCosts_pn5n6_c20260630__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zaNqEGU7ZSC8" title="Production facilities unamortized debt issuance costs">0.1</span> million and $<span id="xdx_907_ecustom--ProductionFacilitiesUnamortizedDebtIssuanceCosts_iI_pn5n6_c20251231__us-gaap--CreditFacilityAxis__custom--ProductionFacilitiesMember_zH26O0CHydOe" title="Production facilities unamortized debt issuance costs">0.1</span> million, respectively, which were included as a reduction to the carrying amount of production facilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Equipment Lease Facility</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the fourth quarter of 2022, the Company entered into an equipment lease agreement with a Canadian bank. This additional equipment lease facility allows the Company to finance equipment purchases of up to $<span id="xdx_90A_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn6n6_c20260630__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember_znPRPuGJvjCj" title="Line of credit facility, maximum borrowing capacity">1</span>.0 million (CAD <span id="xdx_902_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn5n6_uCAD_c20260630__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember_zmpUbbJyVsli" title="Line of credit facility, maximum borrowing capacity">1.4</span> million) in total. <span style="color: #222222">Each transaction under the equipment lease facility has specific financing terms in respect of the leased equipment such as term, finance amount, rate, and payment terms. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="color: #222222">As of </span>June 30, 2026<span style="color: #222222">, the Company has </span>one <span style="color: #222222">lease remaining under this facility with finance rates of</span> <span id="xdx_90F_eus-gaap--LineOfCreditFacilityInterestRateAtPeriodEnd_iI_pip0_dp_c20260630__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember__us-gaap--LeaseContractualTermAxis__custom--LeaseOneMember_zqdLotgumZC3" title="Line of credit facility, finance rates percentage">8.20</span>%, <span style="color: #222222">and a remaining lease term of </span><span id="xdx_90E_ecustom--LineOfCreditFacilityFinanceLeaseTerms_dtM_c20260101__20260630__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember__us-gaap--LeaseContractualTermAxis__custom--LeaseOneMember_zr6XeSFIDqLa" title="Line of credit facility, finance lease terms">2 </span>months<span style="color: #222222">.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the outstanding balances, net of repayments, of $<span id="xdx_904_eus-gaap--LineOfCredit_iI_pp0p0_c20260630__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember_zAIVRwKCXeCc" title="Line of credit">12,744</span> (CAD <span id="xdx_902_eus-gaap--LineOfCredit_iI_pp0p0_uCAD_c20260630__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember_zdgw0wQGSeg4" title="Line of credit">18,094</span>) and $<span id="xdx_90A_eus-gaap--LineOfCredit_iI_pn5n6_c20251231__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember_zq9wAX4i8Nc5" title="Line of credit">0.1</span> million (CAD <span id="xdx_90D_eus-gaap--LineOfCredit_iI_pn5n6_uCAD_c20251231__us-gaap--CreditFacilityAxis__custom--EquipmentLeaseFacilityMember_zUfHjjmZkGv8" title="Line of credit">0.1</span> million), respectively, were included within current Finance Lease Liabilities on the Company’s condensed consolidated balance sheets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> 0.0100 0.0125 12900000 18400000 1400000 1900000 11800000 16200000 1100000 1500000 100000 100000 1000000 1400000 0.0820 P2M 12744 18094 100000 100000 <p id="xdx_801_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zJv5YwLEYcA9" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 13: <span id="xdx_825_zvEGwBixjeTh">Stockholders’ Equity and Earnings per Share</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Common Stock</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, the total number of authorized shares of common stock was <span id="xdx_906_eus-gaap--CommonStockSharesAuthorized_iI_pip0_c20260630_zkpjed4ykJVe" title="Common stock shares authorized"><span id="xdx_904_eus-gaap--CommonStockSharesAuthorized_iI_pip0_c20251231_zdZL8WtN1sKh" title="Common stock shares authorized">190,000,000</span></span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, there were <span id="xdx_904_eus-gaap--CommonStockSharesOutstanding_iI_pip0_c20260630_ziwoGNxah9q8" title="Common stock shares outstanding">62,204,105</span> and <span id="xdx_904_eus-gaap--CommonStockSharesOutstanding_iI_pip0_c20251231_z89HM75BqPLj" title="Common stock shares outstanding">54,857,000</span> shares of common stock outstanding, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pip0_c20260101__20260630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zChnJNLATQU9" title="Stock issued shares, issued for services">2,712,865</span> shares of common stock for services, which included <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pip0_c20260101__20260630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zLMuFZmjKeg6" title="Shares issued vested restricted stock units">2,424,146</span> shares of common stock in connection with immediately vested restricted stock units (RSUs) granted to consultants. During the six months ended June 30, 2025, the Company issued <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pip0_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_z64396HNk3Ii" title="Stock issued shares, issued for services">92,282</span> shares of common stock for services, which included <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pip0_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zbbmtBlKV3Tk" title="Shares issued vested restricted stock units">92,282</span> shares of common stock in connection with immediately vested restricted stock units (RSUs) granted to consultants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pip0_c20260101__20260630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zdob76xtcOti" title="Issued shares of common stock">103,833</span> shares of common stock in connection with vested restricted stock units (RSUs), net of shares withheld for tax obligations, consisting of <span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zJAFspKfj1A6" title="Shares vested">97,999</span> shares related to RSUs that vested during the current period and <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zZqm9qe1rG35" title="Shares vested prior periods">5,834</span> shares related to RSUs that vested in prior periods.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2025, the Company issued <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pip0_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_z1xEwejjh9o1" title="Issued shares of common stock">143,206</span> shares of common stock in connection with vested restricted stock units (RSUs), net of shares withheld for tax obligations, consisting of <span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_pip0_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zvaCTjmcrj0j" title="Shares vested">136,808</span> shares related to RSUs that vested during the current period and <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pip0_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zs64htyIFN9" title="Shares vested prior periods">6,398</span> shares related to RSUs that vested in prior periods.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On November 18, 2025, the Company entered into an agreement to engage in a transaction under Section 3(a)(10) of the Securities Act with CCI, to settle an aggregate of $<span id="xdx_90A_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn6n6_c20251117__20251118_zs4vAndy6pie" title="Exchange of amount">1</span>.0 million of outstanding accounts payable in exchange for issuing <span id="xdx_903_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20251117__20251118_zePbLU8q6ywe" title="Exchange of shares">1,695,072</span> shares of common stock. Under the terms of the agreement, CCI makes payments to the Company’s vendors in cash and, in exchange, the Company issues shares of common stock to CCI. The settlement was valued at <span id="xdx_907_eus-gaap--SharePrice_iI_c20251118_zZiYtCtGo49k" title="Share price">1.75</span> shares of common stock per $<span id="xdx_90A_eus-gaap--AccountsPayableCurrentAndNoncurrent_iI_c20251118_zlyheLnzJYHb" title="Accounts payable">1</span> of accounts payable, pursuant to the terms of the agreement. The transaction was approved by a court after a public hearing on the fairness of the terms and conditions. During the six months ended June 30, 2026, the Company settled $<span id="xdx_902_eus-gaap--DebtConversionOriginalDebtAmount1_pn5n6_c20260101__20260630_z7tzmOckOld2" title="Settled amount">0.6</span> million of accounts payable and issued an aggregate of <span id="xdx_903_eus-gaap--ConversionOfStockSharesIssued1_pip0_c20260101__20260630_zazjaPahxq88" title="Exchange of common stock shares">977,360</span> shares of common stock to CCI. During the six months ended June 30, 2026, the Company recognized a loss of $<span id="xdx_902_eus-gaap--GainsLossesOnExtinguishmentOfDebt_iN_pn3n3_dixL_c20260101__20260630_z218o0UuMqye" title="Extinguished fair value::XDX::754"><span style="-sec-ix-hidden: xdx2ixbrl1807">0.1</span></span> million on the settlement, representing the difference between the carrying value of liabilities extinguished and the fair value of shares issued, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations. The transaction was carried out in stages and completed as of June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 8, 2026, the Company entered into a new agreement to settle an additional $<span id="xdx_904_eus-gaap--AccountsPayableCurrentAndNoncurrent_iI_pn5n6_c20260408__us-gaap--TransactionTypeAxis__custom--NewAgreementMember_zOY0tNOyxRac" title="Settled outstanding accounts payable">1.1</span> million of outstanding accounts payable under Section 3(a)(10) of the Securities Act with CCI, in exchange for issuing <span id="xdx_900_eus-gaap--ConversionOfStockSharesIssued1_pip0_c20260407__20260408__us-gaap--TransactionTypeAxis__custom--NewAgreementMember_ztDrcZxb5lR4" title="Exchange of shares">2,001,797</span> shares of common stock, and to settle additional obligations up to $<span id="xdx_906_eus-gaap--ExtinguishmentOfDebtAmount_pn5n6_c20260407__20260408__us-gaap--TransactionTypeAxis__custom--NewAgreementMember_zkUzDo3cjTyj" title="Additional obligations">0.3</span> million in exchange for issuing <span id="xdx_90C_ecustom--StockIssuedDuringPeriodSharesSettlementOfLiabilities_pip0_c20260407__20260408__us-gaap--TransactionTypeAxis__custom--NewAgreementMember_zUjrQix3SGQg" title="Settlement of shares">551,250</span> shares of common stock. The terms were consistent with the original arrangement. The settlement arrangement was carried out in stages and completed as of June 30, 2026. During the three months ended June 30, 2026, the Company recognized a loss of $<span id="xdx_90E_eus-gaap--GainsLossesOnExtinguishmentOfDebt_iN_pn5n6_di_c20260401__20260630__us-gaap--TransactionTypeAxis__custom--NewAgreementMember_zuL1YUT2HcVf" title="Extinguished fair value">0.6</span> million on the settlement, representing the difference between the carrying value of liabilities extinguished and the fair value of shares issued, included in Other Income (Expense), net, on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 16, 2026, the Company issued <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pip0_c20260616__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zaAorT7uKynh" title="Number of issued shares">1,000,000</span> shares of common stock upon the cash exercise of outstanding warrants at an exercise price of $<span id="xdx_902_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pip0_c20260616_zAvevQ6AzBX8" title="Exercised price">0.57</span> per share, resulting in gross proceeds of approximately $<span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstanding_iI_pn5n6_c20260616_zQvchFhmjjI4" title="Total proceeds">0.6</span> million. The shares were issued in accordance with the terms of the underlying warrant agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Preferred Stock</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has <span id="xdx_903_eus-gaap--PreferredStockSharesAuthorized_iI_pip0_c20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember_z8h9dmHPzqYk" title="Preferred stock authorized">10,000,000</span> shares of preferred stock authorized with a par value of $0.001 per share including <span id="xdx_90E_ecustom--UndesignatedPreferredStockShares_iI_c20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember_zXilVCwPieWj" title="Undesignated preferred stock">9,944,000</span> shares of undesignated preferred stock, <span id="xdx_908_eus-gaap--PreferredStockSharesAuthorized_iI_pip0_c20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zAi7psLpXLq7" title="Preferred stock authorized">6,000</span> shares designated as 0% Series A Convertible Preferred Stock and <span id="xdx_904_eus-gaap--PreferredStockSharesAuthorized_iI_pip0_c20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesCPreferredStockMember_zAjq2ZL02rk6" title="Preferred stock authorized">50,000</span> shares designated as Series C Preferred Stock. The board of directors is authorized, subject to any limitations prescribed by law, without further vote or action by our stockholders, to issue from time-to-time shares of preferred stock in one or more series. Each series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026 and December 31, 2025, there were <span id="xdx_903_eus-gaap--PreferredStockSharesOutstanding_iI_c20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zyd3QMo1BUq3" title="Preferred stock shares outstanding"><span id="xdx_90A_eus-gaap--PreferredStockSharesOutstanding_iI_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zC17sDsEg3o4" title="Preferred stock shares outstanding">0</span></span> shares of Series A Convertible Preferred Stock outstanding. As of June 30, 2026 and December 31, 2025, there were <span id="xdx_903_eus-gaap--PreferredStockSharesOutstanding_iI_c20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zkRxUxb5owgf" title="Preferred stock shares outstanding"><span id="xdx_907_eus-gaap--PreferredStockSharesOutstanding_iI_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zM4EnBsLZwJh" title="Preferred stock shares outstanding">0</span></span> shares of Series B Preferred Stock outstanding. As of June 30, 2026 and December 31, 2025, there were <span id="xdx_902_eus-gaap--PreferredStockSharesOutstanding_iI_c20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesCPreferredStockMember_zlJu6Zpetx1i" title="Preferred stock shares outstanding"><span id="xdx_90D_eus-gaap--PreferredStockSharesOutstanding_iI_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesCPreferredStockMember_z4O618ggIIva" title="Preferred stock shares outstanding">0</span></span> shares of Series C Preferred Stock outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Treasury Stock</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon vesting of restricted stock unit awards, employees may elect to have the Company withhold shares of common stock to cover their tax obligations, which are included as treasury stock outstanding and recorded within Treasury Stock on the condensed consolidated balance sheets. During the six months ended June 30, 2026, no employees elected this option and accordingly <span id="xdx_90B_eus-gaap--SharesPaidForTaxWithholdingForShareBasedCompensation_pip0_do_c20260101__20260630__us-gaap--StatementClassOfStockAxis__us-gaap--TreasuryStockCommonMember_zD543iBdd7d7" title="Shares of common stock withheld to cover taxes">no</span> shares were withheld. During the six months ended June 30, 2025, the Company withheld <span id="xdx_90B_eus-gaap--SharesPaidForTaxWithholdingForShareBasedCompensation_pip0_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--TreasuryStockCommonMember_zWw3RYD3Rwv6" title="Shares of common stock withheld to cover taxes">269</span> shares of common stock with a cost of $<span id="xdx_909_ecustom--SharesPaidForTaxWithholdingForShareBasedCompensationValue_pp0p0_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--TreasuryStockCommonMember_zrb1EYc3KIkj" title="Cost of common stock withheld to cover taxes, value">187</span> to cover taxes owed by certain employees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Earnings (Loss) per Share</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Basic earnings (loss) per share of common stock (“EPS”) is calculated by dividing net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding, and the assumed exercise of all dilutive securities using the treasury stock method.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20260630_zyVOaroFtV55" title="Warrants issued outstanding">6,903,049</span> October 2025 Pre-Funded Warrants issued in the October Offerings and outstanding as of June 30, 2026 were included in the calculation of basic and diluted net loss per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The table below sets forth the Company’s calculated earnings (loss) per share, with net income (loss) presented in thousands:</p> <table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_pn3n3_zrZ9Q0j7AXVj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stockholders' Equity and Earnings per Share (Details - Earnings (loss) per share)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BC_zZIukA2OhThb" style="display: none">Schedule of earnings (loss) per share</span></td><td> </td> <td colspan="3" id="xdx_491_20260401__20260630_zOH5bbyiGeFh" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_498_20250401__20250630_zYgs6TURk0y9" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_49D_20260101__20260630_zmIIp8PTTvm" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_49E_20250101__20250630_zrol5y57R0fc" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_pn3n3_zr6SNBIfMIS8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; width: 40%; text-align: left">Net Income (Loss) Attributable to Kartoon Studios, Inc.</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">26,985</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(6,163</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">20,620</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(12,689</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pip0_zE3OuzCOHGti" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left; padding-bottom: 1pt">Weighted-average shares of common stock outstanding</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,155,559</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,805,923</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">64,457,474</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,252,544</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--EarningsPerShareBasic_pip0_zm8U07PAvhlg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10pt">Basic earnings (loss) per share</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.41</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.13</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.32</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.27</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_pn3n3_z12QAiGCry4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; text-align: left">Net Income (Loss) Attributable to Kartoon Studios, Inc.</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,985</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(6,163</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,620</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(12,689</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pip0_zJfn0VPYeVDf" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Weighted-average shares of common stock outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">66,155,559</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,805,923</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64,457,474</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,252,544</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--IncrementalCommonSharesAttributableToCallOptionsAndWarrants_pip0_d0_zGJymSbn85I4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Effect of dilutive warrants and stock-based awards</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,814,429</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,726,713</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pip0_z6hkM7Cu4eIe" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left; padding-bottom: 1pt">Weighted-average shares of common stock outstanding - diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">70,969,988</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,805,923</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">68,184,187</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,252,544</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareDiluted_pip0_zpT8m7Nsozt6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10pt">Diluted earnings (loss) per share</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.13</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.30</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.27</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_8A9_zrjMPD9Xr35c" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following common stock equivalents were excluded from the calculation of diluted net earnings (loss) per share applicable to common stockholders, because including them would have had an anti-dilutive effect:</p> <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zQezn6TodB1e" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stockholders' Equity and Earnings per Share (Details - Anti-dilutive effect)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BC_z8os42DfHEB4" style="display: none">Schedule of an anti-dilutive effect</span></td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left">Stock Options</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zbRqXnhxlopb" style="width: 11%; text-align: right" title="Antidilutive shares">839,998</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zhncvX9r44E9" style="width: 11%; text-align: right" title="Antidilutive shares">882,313</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zkr53gfkZSkc" style="width: 11%; text-align: right" title="Antidilutive shares">839,998</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zMhrPojYRcCa" style="width: 11%; text-align: right" title="Antidilutive shares">882,313</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted Stock Units</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zthKFRKnm9Ye" style="text-align: right" title="Antidilutive shares">843,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zf0S6NK3xKoc" style="text-align: right" title="Antidilutive shares">870,417</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zN1J6tVhP693" style="text-align: right" title="Antidilutive shares">843,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zM9c2lXo0zuk" style="text-align: right" title="Antidilutive shares">870,417</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zuFbcrnzI3B" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">10,824,679</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zmvIR0eAolkb" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">24,155,943</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zgISuJO00ai5" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">12,482,574</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zhfndTngRkN6" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">24,155,943</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630_zzqTtZjOP1cl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">12,508,427</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630_zeEzFaQsL3B6" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">25,908,673</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630_z1uaActRvjag" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">14,166,322</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630_zIZVlzoyVB8i" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">25,908,673</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A5_zs2cYhIYe2c8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: center"> </p> 190000000 190000000 62204105 54857000 2712865 2424146 92282 92282 103833 97999 5834 143206 136808 6398 1000000 1695072 1.75 1 600000 977360 1100000 2001797 300000 551250 -600000 1000000 0.57 600000 10000000 9944000 6000 50000 0 0 0 0 0 0 0 269 187 6903049 <table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_pn3n3_zrZ9Q0j7AXVj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stockholders' Equity and Earnings per Share (Details - Earnings (loss) per share)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BC_zZIukA2OhThb" style="display: none">Schedule of earnings (loss) per share</span></td><td> </td> <td colspan="3" id="xdx_491_20260401__20260630_zOH5bbyiGeFh" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_498_20250401__20250630_zYgs6TURk0y9" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_49D_20260101__20260630_zmIIp8PTTvm" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_49E_20250101__20250630_zrol5y57R0fc" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_pn3n3_zr6SNBIfMIS8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; width: 40%; text-align: left">Net Income (Loss) Attributable to Kartoon Studios, Inc.</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">26,985</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(6,163</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">20,620</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(12,689</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pip0_zE3OuzCOHGti" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left; padding-bottom: 1pt">Weighted-average shares of common stock outstanding</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,155,559</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,805,923</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">64,457,474</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,252,544</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--EarningsPerShareBasic_pip0_zm8U07PAvhlg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10pt">Basic earnings (loss) per share</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.41</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.13</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.32</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.27</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_pn3n3_z12QAiGCry4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; text-align: left">Net Income (Loss) Attributable to Kartoon Studios, Inc.</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,985</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(6,163</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,620</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(12,689</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pip0_zJfn0VPYeVDf" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Weighted-average shares of common stock outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">66,155,559</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,805,923</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64,457,474</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,252,544</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--IncrementalCommonSharesAttributableToCallOptionsAndWarrants_pip0_d0_zGJymSbn85I4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Effect of dilutive warrants and stock-based awards</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,814,429</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,726,713</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pip0_z6hkM7Cu4eIe" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left; padding-bottom: 1pt">Weighted-average shares of common stock outstanding - diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">70,969,988</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,805,923</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">68,184,187</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,252,544</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareDiluted_pip0_zpT8m7Nsozt6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10pt">Diluted earnings (loss) per share</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.38</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.13</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.30</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.27</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> 26985000 -6163000 20620000 -12689000 66155559 47805923 64457474 47252544 0.41 -0.13 0.32 -0.27 26985000 -6163000 20620000 -12689000 66155559 47805923 64457474 47252544 4814429 0 3726713 0 70969988 47805923 68184187 47252544 0.38 -0.13 0.30 -0.27 <table cellpadding="0" cellspacing="0" id="xdx_89F_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zQezn6TodB1e" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stockholders' Equity and Earnings per Share (Details - Anti-dilutive effect)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BC_z8os42DfHEB4" style="display: none">Schedule of an anti-dilutive effect</span></td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left">Stock Options</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zbRqXnhxlopb" style="width: 11%; text-align: right" title="Antidilutive shares">839,998</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zhncvX9r44E9" style="width: 11%; text-align: right" title="Antidilutive shares">882,313</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zkr53gfkZSkc" style="width: 11%; text-align: right" title="Antidilutive shares">839,998</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zMhrPojYRcCa" style="width: 11%; text-align: right" title="Antidilutive shares">882,313</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted Stock Units</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zthKFRKnm9Ye" style="text-align: right" title="Antidilutive shares">843,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zf0S6NK3xKoc" style="text-align: right" title="Antidilutive shares">870,417</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zN1J6tVhP693" style="text-align: right" title="Antidilutive shares">843,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zM9c2lXo0zuk" style="text-align: right" title="Antidilutive shares">870,417</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zuFbcrnzI3B" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">10,824,679</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zmvIR0eAolkb" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">24,155,943</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zgISuJO00ai5" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">12,482,574</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zhfndTngRkN6" style="border-bottom: Black 1pt solid; text-align: right" title="Antidilutive shares">24,155,943</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260401__20260630_zzqTtZjOP1cl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">12,508,427</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250401__20250630_zeEzFaQsL3B6" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">25,908,673</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630_z1uaActRvjag" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">14,166,322</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630_zIZVlzoyVB8i" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Antidilutive shares">25,908,673</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 839998000 882313000 839998000 882313000 843750000 870417000 843750000 870417000 10824679000 24155943000 12482574000 24155943000 12508427000 25908673000 14166322000 25908673000 <p id="xdx_80D_eus-gaap--ShareholdersEquityAndShareBasedPaymentsTextBlock_zScH3x0V3vVg" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 14: <span id="xdx_82A_z8NoYJQDybE2">Stock Option</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 27, 2020, the Company’s stockholders approved the adoption of the Kartoon Studios, Inc. 2020 Equity Incentive Plan (as amended, the “2020 Plan”). The 2020 Plan replaced the previously adopted 2015 Incentive Plan (the “2015 Plan”). The maximum number of shares available for issuance was initially equal to the sum of (i) 3,000,000 shares of common stock and (ii) the number of shares of common stock remaining available for issuance under the 2015 Plan, which was then equal to 216,767 shares. On May 23, 2023, the Company’s stockholders approved the adoption of an Amended and Restated 2020 Equity Incentive Plan, which provided for the maximum number of shares of common stock available for issuance under the 2020 Plan to be increased by 5,000,000 shares. Subsequently, on May 14, 2025, the Company’s stockholders approved a further amendment and restatement of the 2020 Plan, providing for an additional increase of 5,000,000 shares of common stock authorized for issuance under the plan. As of June 30, 2026, the number of shares remaining available for issuance was <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pip0_c20260630__us-gaap--PlanNameAxis__custom--Plan2020Member_zJtXk6fcrSR2" title="Shares available for grant">5,096,394</span>, out of a maximum of <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pip0_c20260630__us-gaap--PlanNameAxis__custom--Plan2020Member_zU5zfyhMMCv5" title="Shares authorized for issuance">13,216,767</span> shares authorized under the 2020 Plan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company did <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_do_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zLr5XU35i3Aa" title="Options granted">no</span>t grant any stock options.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes the Company’s option activity during the six months ended June 30, 2026:</p> <table cellpadding="0" cellspacing="0" id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationActivityTableTextBlock_pn3n3_zsRUDUV4Yqa3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stock Options (Details - Option activity)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8BF_zllKErIznD4g" style="display: none">Schedule of option activity</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Stock Options</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Remaining Contractual Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Exercise Price per Share</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 55%; font-weight: bold">Outstanding at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zH4VQeQGfQ9e" style="width: 11%; font-weight: bold; text-align: right" title="Number of options outstanding, beginning balance">969,130</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 11%; font-weight: bold; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zZcKSJeo4Xhc" title="Weighted average remaining contractual life">3.96</span></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zt5nA74cyxnc" style="width: 11%; font-weight: bold; text-align: right" title="Weighted average exercise price per share, beginning balance">11.58</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zSzLASAF26Ui" style="text-align: right" title="Number of options, granted">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_ztyMxfRJoBCi" style="text-align: right" title="Weighted average exercise price per share, granted">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 6pt">Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zJMvsbdogojc" style="text-align: right" title="Number of options, exercised">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zrPjBhUWQXB9" style="text-align: right" title="Weighted average exercise price per share, exercised">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Forfeited/Cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zII1WnW7zqfj" style="text-align: right" title="Number of options, forfeited/cancelled">(45,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zMpCyUnmhI05" style="text-align: right" title="Weighted average exercise price per share, forfeited/cancelled">12.26</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 6pt">Expired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zA9urhTsHdd4" style="border-bottom: Black 1pt solid; text-align: right" title="Number of options, expired">(84,132</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zHwPCppuCNN4" style="padding-bottom: 1pt; text-align: right" title="Weighted average exercise price per share, expired">15.70</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Outstanding at June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zJ7v7U8qRjb5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Number of options outstanding, ending balance">839,998</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zR3BOlPev0Q2" title="Weighted average remaining contractual life">3.90</span></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zivFK4AQMSK6" style="padding-bottom: 2.5pt; font-weight: bold; text-align: right" title="Weighted average exercise price per share, ending balance">11.12</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vested and exercisable at June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zhbP6OEBt9Bc" style="text-align: right" title="Number of options, vested and exercisable">839,998</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zizbXgH3yWBa" title="Weighted- average remaining contractual life, vested and exercisable">3.90</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zfeyUI4dMGB9" style="text-align: right" title="Weighted average exercise price per share, vested and exercisable">11.12</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A6_ztPUB8KnE9l5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company did <span id="xdx_90D_eus-gaap--AllocatedShareBasedCompensationExpense_do_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zEWpN0OXh2L4" title="Share-based compensation expense">no</span>t recognize any share-based compensation expense related to stock options. During the six months ended June 30, 2025, the Company recognized $<span id="xdx_90F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zqMGJsTG1Ny4" title="Share-based compensation expense">24,699</span> in share-based compensation expense related to stock options included in General and Administrative Expenses on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, the Company had <span id="xdx_90F_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_do_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zlSLWWWJFePi" title="Unrecognized share-based compensation expense">no</span> unrecognized share-based compensation expense related to outstanding stock options. The outstanding options as of June 30, 2026 had an aggregated intrinsic value of <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pn3n3_dxL_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zCOJCSSQKZ5k" title="Aggregated intrinsic value::XDX::0"><span style="-sec-ix-hidden: xdx2ixbrl1987">zero</span></span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> 5096394 13216767 0 <table cellpadding="0" cellspacing="0" id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationActivityTableTextBlock_pn3n3_zsRUDUV4Yqa3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stock Options (Details - Option activity)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%"><span id="xdx_8BF_zllKErIznD4g" style="display: none">Schedule of option activity</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Stock Options</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Remaining Contractual Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Exercise Price per Share</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 55%; font-weight: bold">Outstanding at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zH4VQeQGfQ9e" style="width: 11%; font-weight: bold; text-align: right" title="Number of options outstanding, beginning balance">969,130</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 11%; font-weight: bold; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zZcKSJeo4Xhc" title="Weighted average remaining contractual life">3.96</span></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zt5nA74cyxnc" style="width: 11%; font-weight: bold; text-align: right" title="Weighted average exercise price per share, beginning balance">11.58</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zSzLASAF26Ui" style="text-align: right" title="Number of options, granted">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_ztyMxfRJoBCi" style="text-align: right" title="Weighted average exercise price per share, granted">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 6pt">Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zJMvsbdogojc" style="text-align: right" title="Number of options, exercised">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zrPjBhUWQXB9" style="text-align: right" title="Weighted average exercise price per share, exercised">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 6pt">Forfeited/Cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zII1WnW7zqfj" style="text-align: right" title="Number of options, forfeited/cancelled">(45,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zMpCyUnmhI05" style="text-align: right" title="Weighted average exercise price per share, forfeited/cancelled">12.26</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 6pt">Expired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zA9urhTsHdd4" style="border-bottom: Black 1pt solid; text-align: right" title="Number of options, expired">(84,132</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zHwPCppuCNN4" style="padding-bottom: 1pt; text-align: right" title="Weighted average exercise price per share, expired">15.70</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Outstanding at June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zJ7v7U8qRjb5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Number of options outstanding, ending balance">839,998</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zR3BOlPev0Q2" title="Weighted average remaining contractual life">3.90</span></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zivFK4AQMSK6" style="padding-bottom: 2.5pt; font-weight: bold; text-align: right" title="Weighted average exercise price per share, ending balance">11.12</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vested and exercisable at June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zhbP6OEBt9Bc" style="text-align: right" title="Number of options, vested and exercisable">839,998</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zizbXgH3yWBa" title="Weighted- average remaining contractual life, vested and exercisable">3.90</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zfeyUI4dMGB9" style="text-align: right" title="Weighted average exercise price per share, vested and exercisable">11.12</td><td style="text-align: left"> </td></tr> </table> 969130 P3Y11M15D 11.58 0 0 0 0 45000 12.26 84132 15.70 839998 P3Y10M24D 11.12 839998 P3Y10M24D 11.12 0 24699 0 <p id="xdx_808_ecustom--RestrictedStockUnitsDisclosureTextBlock_zgDFUqzr8Etf" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 15: <span id="xdx_824_zaJH6CkEYUZk">Restricted Stock Units</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Restricted stock units (“RSUs”) are granted under the Company’s 2020 Plan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company granted <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--BoardsMembersAndConsultantsMember_zE5SCqeEmyt" title="RSU's granted">2,522,145</span> fully vested RSUs to the Company’s board members and consultants, with a fair market value of $<span id="xdx_903_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn5n6_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--BoardsMembersAndConsultantsMember_zSfajJA1hzz4" title="RSU's fair market value">1.8</span> million. During the six months ended June 30, 2025, the Company granted <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--BoardsMembersAndConsultantsMember_zPY3OOBGghyf" title="RSU's granted">180,936</span> fully vested RSUs to the Company’s board members and consultants, with a fair market value of $<span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn5n6_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--BoardsMembersAndConsultantsMember_z0FWLHgydj06" title="RSU's fair market value">0.1</span> million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company granted <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--ExecutiveEmployeeMember_z4GrNhIhmwUf" title="RSU's granted">500,000</span> RSUs to an executive employee with an aggregate grant-date fair value of approximately $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn5n6_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--ExecutiveEmployeeMember_zza3dprHDS2b" title="RSU's fair market value">0.3</span> million. These RSUs vest ratably over three years from the grant date, subject to continued employment. In addition, the Company granted an additional <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zGN1ubITci42" title="Granted">365,000</span> RSUs, with an aggregate grant-date fair value of approximately $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn5n6_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJgaWiGhQfck" title="RSU's fair market value">0.3</span> million, to certain employees, and <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--ExecutiveEmployeeMember_zbpGL47yAeTa" title="Number of shares issued service">5,000</span> RSUs to a consultant with a grant-date fair value of approximately $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--ExecutiveEmployeeMember_zh9OBtDzd4li" title="Number of value issued service">3,600</span>. The RSUs vest over a three year service period and are subject to continued employment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company issued an aggregate of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pip0_c20260101__20260630_zrq5lVBKb8sa" title="Number of shares issued">2,527,979</span> shares of common stock as a result of RSUs vested during the current and prior periods, consisting of <span id="xdx_90F_eus-gaap--SharesIssued_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zV89VGS88ei7" title="Number of shares issued">2,522,145</span> shares issued upon RSUs that vested during the current period and <span id="xdx_903_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zkcSkjCIyrkl" title="RSUs vested">5,834</span> shares issued upon RSUs that vested in prior periods.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes the Company’s RSU activity:</p> <table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_pn3n3_zvC4Y64uzimb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Restricted Stock Units (Details - RSU activity)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B4_zdGUr82qZSph" style="display: none">Schedule of RSU activity</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td><td> </td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Restricted Stock<br/> Units</td><td colspan="2" style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Weighted-</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Average Grant<br/> Date Fair Value <br/> per Share</b></p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; font-weight: bold">Unvested at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQPFGY2W6vQ1" style="width: 13%; font-weight: bold; text-align: right" title="RSUs Outstanding shares, beginning balance">1,605,417</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td colspan="2" style="font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zNgWymJ8oAU6" style="width: 13%; font-weight: bold; text-align: right" title="Weighted- average grant date fair value per share, beginning balance">7.62</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxqCJi2ghvg1" style="text-align: right" title="RSUs Granted">3,392,145</td><td style="text-align: left"> </td><td colspan="2"> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4BsqDlpm1Pf" style="text-align: right" title="Weighted- average grant date fair value per share, granted">0.70</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zFTpeqmyuMTd" style="text-align: right" title="RSUs Vested">(2,522,145</td><td style="text-align: left">)</td><td colspan="2"> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zRrjoINdIo8h" style="text-align: right" title="Weighted- average grant date fair value per share, vested">0.72</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">Forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pip0_di0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUb3JOuc5GId" style="border-bottom: Black 1pt solid; text-align: right" title="RSUs Forfeited">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td colspan="2" style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zLI4BBiymLb8" style="padding-bottom: 1pt; text-align: right" title="Weighted- average grant date fair value per share, forfeited">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Unvested at June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_znJ88xxprUSg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="RSUs Outstanding shares, ending balance">2,475,417</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td colspan="2" style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zv4swuzud3vl" style="padding-bottom: 2.5pt; font-weight: bold; text-align: right" title="Weighted- average grant date fair value per share, ending balance">5.18</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A7_zPh4ojGFBBe1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended June 30, 2026 and June 30, 2025, the Company recognized $<span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_pn5n6_c20260401__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8KyfvThP0k7" title="Share-based compensation expense">0.2</span> million and $<span id="xdx_907_eus-gaap--AllocatedShareBasedCompensationExpense_c20250401__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zXosBPGC1zff" title="Share-based compensation expense">41,847</span>, respectively, in share-based compensation expense related to RSU awards included in General and Administrative Expenses on the Company’s condensed consolidated statements of operations. During the six months ended June 30, 2026 and June 30, 2025, the Company recognized $<span id="xdx_90A_eus-gaap--AllocatedShareBasedCompensationExpense_pn5n6_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zfTMGXuVoMdh" title="Share-based compensation expense">0.4</span> million and $<span id="xdx_90A_eus-gaap--AllocatedShareBasedCompensationExpense_pn5n6_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgbQqkc6rz96" title="Share-based compensation expense">0.1</span> million, respectively, in share-based compensation expense related to RSU awards included in General and Administrative Expenses on the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The unvested share-based compensation as of June 30, 2026 was $<span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_pn5n6_c20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8ChwAia9SOe" title="Unvested share-based compensation">0.7</span> million which will be recognized through the first quarter of 2029 assuming the underlying grants are not cancelled or forfeited. The total fair value of shares vested during the six months ended June 30, 2026 was $<span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueVested_pn5n6_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zGFftzz17Vk2" title="Fair value shares vested">1.8</span> million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 2522145 1800000 180936 100000 500000 300000 365000 300000 5000 3600 2527979 2522145 5834 <table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_pn3n3_zvC4Y64uzimb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Restricted Stock Units (Details - RSU activity)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B4_zdGUr82qZSph" style="display: none">Schedule of RSU activity</span></td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td><td> </td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Restricted Stock<br/> Units</td><td colspan="2" style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Weighted-</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Average Grant<br/> Date Fair Value <br/> per Share</b></p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; font-weight: bold">Unvested at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQPFGY2W6vQ1" style="width: 13%; font-weight: bold; text-align: right" title="RSUs Outstanding shares, beginning balance">1,605,417</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td colspan="2" style="font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zNgWymJ8oAU6" style="width: 13%; font-weight: bold; text-align: right" title="Weighted- average grant date fair value per share, beginning balance">7.62</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxqCJi2ghvg1" style="text-align: right" title="RSUs Granted">3,392,145</td><td style="text-align: left"> </td><td colspan="2"> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4BsqDlpm1Pf" style="text-align: right" title="Weighted- average grant date fair value per share, granted">0.70</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zFTpeqmyuMTd" style="text-align: right" title="RSUs Vested">(2,522,145</td><td style="text-align: left">)</td><td colspan="2"> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zRrjoINdIo8h" style="text-align: right" title="Weighted- average grant date fair value per share, vested">0.72</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">Forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pip0_di0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUb3JOuc5GId" style="border-bottom: Black 1pt solid; text-align: right" title="RSUs Forfeited">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td colspan="2" style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zLI4BBiymLb8" style="padding-bottom: 1pt; text-align: right" title="Weighted- average grant date fair value per share, forfeited">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Unvested at June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_znJ88xxprUSg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="RSUs Outstanding shares, ending balance">2,475,417</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td colspan="2" style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zv4swuzud3vl" style="padding-bottom: 2.5pt; font-weight: bold; text-align: right" title="Weighted- average grant date fair value per share, ending balance">5.18</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 1605417 7.62 3392145 0.70 2522145 0.72 -0 0 2475417 5.18 200000 41847 400000 100000 700000 1800000 <p id="xdx_80E_ecustom--WarrantDisclosureTextBlock_zPpTkZse6E29" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 16: <span id="xdx_820_zWI6mWLUbAkh">Warrants</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes the activity in the Company’s outstanding warrants during the six months ended June 30, 2026:</p> <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_pn3n3_z7aCiH49viL1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Warrants (Details - Warrant activity)"> <tr style="vertical-align: bottom"> <td style="width: 49%"><span id="xdx_8BF_zCJJfq4nZxBd" style="display: none">Schedule of warrant activity</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Warrants</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Remaining Contractual Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Exercise Price per Share</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Outstanding at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zRyooDlfJ4k3" style="width: 13%; font-weight: bold; text-align: right" title="Warrants outstanding at beginning balance">41,622,504</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 13%; font-weight: bold; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zGZrG2PJ7wdk" title="Weighted-average remaining contractual life">2.86</span></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zDXk6nWF8cma" style="width: 13%; font-weight: bold; text-align: right" title="Weighted-average exercise price per share at beginning balance">1.52</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zWLXgxtSs9La" style="text-align: right" title="Warrants outstanding, granted">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--WeightedAverageExercisePricePerShareGranted_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z6skItVd7Bt5" style="text-align: right" title="Weighted-average exercise price per share, granted">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zQya6KHQJZNh" style="text-align: right" title="Warrants outstanding, exercised">(1,000,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--WeightedAverageExercisePricePerShareExercised_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zOED2LhnSKW6" style="text-align: right" title="Weighted-average exercise price per share, exercised">0.57</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExpirations_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zw5BQHmhqgDj" style="text-align: right" title="Warrants outstanding, expired">(1,662,500</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--WeightedAverageExercisePricePerShareExpired_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zyDuvdKHntfb" style="text-align: right" title="Weighted-average exercise price per share, expired">23.70</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Forfeitures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_iN_pip0_di0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zUvR1uo6kZFg" style="border-bottom: Black 1pt solid; text-align: right" title="Warrants outstanding, forfeitures">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Outstanding at June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_981_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zaUFFgMKlxj5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Warrants outstanding at ending balance">38,960,004</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z8l3zkZ6OgV2" title="Weighted-average remaining contractual life">2.57</span></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zjo6JcEZ2l42" style="padding-bottom: 2.5pt; font-weight: bold; text-align: right" title="Weighted-average exercise price per share at ending balance">0.60</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable at June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zKMhMsyOHGHi" style="text-align: right" title="Warrants outstanding, exercisable">38,960,004</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--ShareBasedCompensationWeightedAverageRemainingContractualLifeExercisable1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zHlBsxLSBLw6" title="Weighted-average remaining contractual life, exercisable">2.57</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisesPrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z4FQbRaSL1cf" style="text-align: right" title="Weighted-average exercise price per share, exercisable">0.60</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A5_zh1vBlH2A8Gd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All outstanding warrants are classified as equity instruments in the Company’s condensed consolidated balance sheet, as the warrants meet the criteria for equity classification under ASC 815-40.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 16, 2026, the Company issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20260615__20260616_zpfmzp4t9DC5" title="Shares issued">1,000,000</span> shares of common stock upon the cash exercise of outstanding warrants at an exercise price of $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20260616_z4TfikM4A5vc" title="Warrants exercise price">0.57</span> per share, resulting in gross proceeds of approximately $<span id="xdx_90D_eus-gaap--ProceedsFromWarrantExercises_pn5n6_c20260615__20260616_zWFDNUZb4Q6k" title="Proceeds from warrant exercises">0.6</span> million. The shares were issued in accordance with the terms of the underlying warrant agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company did <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_do_c20260101__20260630_zkXrxiD2ibkh" title="Forfeit warrants">no</span>t grant or forfeit any warrants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_pn3n3_z7aCiH49viL1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Warrants (Details - Warrant activity)"> <tr style="vertical-align: bottom"> <td style="width: 49%"><span id="xdx_8BF_zCJJfq4nZxBd" style="display: none">Schedule of warrant activity</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Warrants</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Remaining Contractual Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Exercise Price per Share</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Outstanding at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zRyooDlfJ4k3" style="width: 13%; font-weight: bold; text-align: right" title="Warrants outstanding at beginning balance">41,622,504</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 13%; font-weight: bold; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zGZrG2PJ7wdk" title="Weighted-average remaining contractual life">2.86</span></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zDXk6nWF8cma" style="width: 13%; font-weight: bold; text-align: right" title="Weighted-average exercise price per share at beginning balance">1.52</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zWLXgxtSs9La" style="text-align: right" title="Warrants outstanding, granted">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--WeightedAverageExercisePricePerShareGranted_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z6skItVd7Bt5" style="text-align: right" title="Weighted-average exercise price per share, granted">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zQya6KHQJZNh" style="text-align: right" title="Warrants outstanding, exercised">(1,000,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--WeightedAverageExercisePricePerShareExercised_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zOED2LhnSKW6" style="text-align: right" title="Weighted-average exercise price per share, exercised">0.57</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExpirations_iN_pip0_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zw5BQHmhqgDj" style="text-align: right" title="Warrants outstanding, expired">(1,662,500</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--WeightedAverageExercisePricePerShareExpired_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zyDuvdKHntfb" style="text-align: right" title="Weighted-average exercise price per share, expired">23.70</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Forfeitures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures_iN_pip0_di0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zUvR1uo6kZFg" style="border-bottom: Black 1pt solid; text-align: right" title="Warrants outstanding, forfeitures">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Outstanding at June 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_981_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zaUFFgMKlxj5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Warrants outstanding at ending balance">38,960,004</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z8l3zkZ6OgV2" title="Weighted-average remaining contractual life">2.57</span></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zjo6JcEZ2l42" style="padding-bottom: 2.5pt; font-weight: bold; text-align: right" title="Weighted-average exercise price per share at ending balance">0.60</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable at June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zKMhMsyOHGHi" style="text-align: right" title="Warrants outstanding, exercisable">38,960,004</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--ShareBasedCompensationWeightedAverageRemainingContractualLifeExercisable1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zHlBsxLSBLw6" title="Weighted-average remaining contractual life, exercisable">2.57</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisesPrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_z4FQbRaSL1cf" style="text-align: right" title="Weighted-average exercise price per share, exercisable">0.60</td><td style="text-align: left"> </td></tr> </table> 41622504 P2Y10M9D 1.52 0 0 1000000 0.57 1662500 23.70 -0 38960004 P2Y6M25D 0.60 38960004 P2Y6M25D 0.60 1000000 0.57 600000 0 <p id="xdx_80F_eus-gaap--AdditionalFinancialInformationDisclosureTextBlock_zn7s6AyGcYMc" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 17: <span id="xdx_82F_zwyhq0XRig0h">Supplemental Financial Statement Information</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Components of Other Income (Expense), net, are summarized as follows (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--ScheduleOfOtherOperatingCostAndExpenseByComponentTextBlock_pn3n3_zTPlywp1v5L1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Supplemental Financial Statement Information (Details - Other income expense)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 40%"><span id="xdx_8B5_zHaEinzb3cG" style="display: none">Schedule of other income expense, net</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49E_20260401__20260630_zCtvFgm6yXda" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49D_20250401__20250630_z2tnzSStJcO6" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49E_20260101__20260630_zDj51ED20Ek" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49E_20250101__20250630_zbFGerfAxd1b" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr id="xdx_40E_eus-gaap--InterestExpense_iN_pn3n3_di_zFEB2VLne8fj" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; font-weight: bold; text-align: left; padding-bottom: 1pt">Interest Expense (a)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(175</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(165</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(408</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(293</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OtherNonoperatingIncomeExpenseAbstract_iB_zP9s5kWpDKi5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Other Income (Expense), net (b-l)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LossOnRevaluationOfWarrantsMember_zqkZxIp3c59b" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Revaluation of Warrants (b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(678</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(232</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--LossOnRevaluationOfEquityInvestmentInYFEMember_zeEucFmtdif5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Revaluation of Equity Investment in YFE (c)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(514</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,778</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,471</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,418</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--RealizedLossOnMarketableSecuritiesInvestmentsMember_zp4cxV5e2J7c" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Realized Loss on Marketable Securities Investments (d)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(28</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--LossGainOnForeignExchangeMember_zFeY189IfwX" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">(Loss) Gain on Foreign Exchange (e)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(412</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,713</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(784</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,380</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LossOnDebtSettlementMember_zvDo3vm7ot8j" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Debt Settlement (f)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(630</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(754</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(944</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--OtherInterestIncomeMember_zKmYm1OemFdi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Interest Income (g)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">66</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--FinanceLeaseInterestExpenseMember_znLJHRvoS0Xc" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Finance Lease Interest Expense (h)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(8</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--GainOnLeaseModificationMember_z66wRVKFlqi9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Gain on Lease Modification (i)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LegalSettlementIncomeMember_zF5y93KHcMqc" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Legal Settlement Income (j)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LossOnStandstillAgreementsMember_zikQORxQzGA" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Standstill Agreement (k)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--OtherMember_zEu6xXO5EXyi" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt; text-align: left">Other (l)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,618</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(122</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,565</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(89</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_z8otuak5qsw6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Other Income (Expense), net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">31,107</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,887</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">27,738</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(6,271</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_8A1_zyn1F92dVNke" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Three Months and Six Months Ended June 30, 2026</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 0.25in"> </td> <td style="vertical-align: top; width: 0.25in; text-align: left"><span style="font-size: 10pt">(a)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Interest Expense during the three months and six months ended June 30, 2026, primarily consisted of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_90B_eus-gaap--InterestExpenseDebt_pn5n6_c20260401__20260630__us-gaap--DebtInstrumentAxis__custom--FactoringLiabilityMember_zu7m5sWYl413" title="Interest expense">0.2</span> million and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_903_eus-gaap--InterestExpenseDebt_pn5n6_c20260101__20260630__us-gaap--DebtInstrumentAxis__custom--ProductionFacilitiesMember_zxQDinJoAwb" title="Interest expense">0.4</span> million in interest, respectively, incurred on production facilities and the factoring liability.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(b)</span></td> <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">For the three months and six months ended June 30, 2026, the Company did <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_905_eus-gaap--InterestExpenseDebt_do_c20260401__20260630__us-gaap--NatureOfExpenseAxis__custom--LossOnRevaluationOfWarrantsMember_zse2e7rTq2h9" title="Interest expense"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_90B_eus-gaap--InterestExpenseDebt_do_c20260101__20260630__us-gaap--NatureOfExpenseAxis__custom--LossOnRevaluationOfWarrantsMember_zWGZXE9cpyo1" title="Interest expense">no</span></span>t record any gain related to warrant revaluation.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(c)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">As the investment in YFE is accounted for under the fair value option, the Company recognized a loss on revaluation of its equity investment in YFE of approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_90D_eus-gaap--GainLossOnInvestments_pn5n6_c20260401__20260630_zQ59fLcdn2c" title="Loss on revaluation of equity investment">0.5</span> million and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_90B_eus-gaap--GainLossOnInvestments_pn5n6_c20260101__20260630_zHSHgKwZQoRl" title="Loss on revaluation of equity investment">3.5</span> million for the three months and six months ended June 30, 2026, respectively. The loss reflected decreases in YFE’s stock price during the current reporting periods compared to the respective prior reporting periods. The impact of foreign currency translation is excluded and presented separately.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(d)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">For the three months and six months ended June 30, 2026, the Company did <span id="xdx_90B_eus-gaap--DebtSecuritiesAvailableForSaleRealizedGainLoss_do_c20260401__20260630_z3xB0T9p7aL1" title="Loss marketable securities"><span id="xdx_906_eus-gaap--DebtSecuritiesAvailableForSaleRealizedGainLoss_do_c20260101__20260630_z2erRAPoE3C" title="Loss marketable securities">no</span></span>t record any loss related to marketable securities.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(e)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">The loss on foreign exchange during the three months ended June 30, 2026, primarily related to the remeasurement of foreign currency transactions of the Company’s non-U.S. subsidiary, resulting in a loss of $<span id="xdx_905_eus-gaap--ForeignCurrencyTransactionGainLossBeforeTax_pn5n6_c20260401__20260630__us-gaap--EquityMethodInvestmentNonconsolidatedInvesteeAxis__custom--YFEAcquisitionMember_z1F4iWEx72n4" title="Loss on foreign exchange">0.4</span> million. The loss on foreign exchange during the six months ended June 30, 2026, primarily related to the revaluation of the YFE investment, resulting in a loss of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_907_eus-gaap--ForeignCurrencyTransactionGainLossBeforeTax_pn5n6_c20260101__20260630__us-gaap--EquityMethodInvestmentNonconsolidatedInvesteeAxis__custom--YFEAcquisitionMember_ztjFhD7OHa04" title="Loss on foreign exchange">0.2</span> million due to the Euro depreciating against the U.S. dollar as compared to prior period and a loss of $<span id="xdx_901_eus-gaap--ForeignCurrencyTransactionGainLossBeforeTax_pn5n6_c20260101__20260630_zgXY6MsvHkdi" title="Loss on foreign exchange">0.6</span> million due to the remeasurement of foreign currency transactions of the Company’s non-U.S. subsidiary.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(f)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">The loss on debt settlement recorded during the three months and six months ended June 30, 2026, includes a loss of $<span id="xdx_906_eus-gaap--GainLossRelatedToLitigationSettlement_pn5n6_c20260401__20260630_zGJgMKIGUmb9" title="Loss on settlement">0.6</span> million and $<span id="xdx_903_eus-gaap--GainLossRelatedToLitigationSettlement_pn5n6_c20260101__20260630_zS44IwkXX5ja" title="Loss on settlement">0.8</span> million, respectively, arising from the Section 3(a)(10) transaction completed during the periods.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(g)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Interest Income during the three months and six months ended June 30, 2026, primarily consisted of income from investments in marketable securities.</span></td></tr> </table> <p style="margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 0.25in"> </td> <td style="vertical-align: top; text-align: left; width: 0.25in"><span style="font-size: 10pt">(h)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">The finance lease interest expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(i)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">For the three months and six months ended June 30, 2026, the Company did <span id="xdx_907_ecustom--LeaseModification_do_c20260401__20260630_zcTVqshPYGra" title="Lease modification"><span id="xdx_900_ecustom--LeaseModification_do_c20260101__20260630_zEW1CA8X4kYb" title="Lease modification">no</span></span>t record any gain related to lease modification.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(j)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Between May 29, 2026 and June 11, 2026, the Company received aggregate cash of $<span id="xdx_906_eus-gaap--Cash_iI_pn5n6_c20260611_z47yjgo95UW5" title="Cash">39.2</span> million representing 50% of the court-approved settlement payments under the Section 16(b) litigation settlement agreements. For additional information, see Note 1, <i>Organization and Business - Recent Transactions</i>, to our condensed consolidated financial statements.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(k)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">In connection with the legal settlement with the Anson Investments Master Fund LP and its affiliates, on June 10, 2026, Kartoon Studios Inc. entered into a standstill and voting agreement with the Anson Parties, under which the Company agreed to pay the Anson Parties $<span id="xdx_90B_eus-gaap--LitigationSettlementExpense_pn6n6_c20260609__20260610_zdmYsjwCRzi" title="Legal settlement">4</span>.0 million and the Anson Parties agreed to certain voting commitments and standstill restrictions through June 11, 2027. The amount was recognized as a non-operating loss for the three months and six months ended June 30, 2026. For additional information, see Note 1, <i>Organization and Business - Recent Transactions</i>, to our condensed consolidated financial statements.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(l)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Other loss of $<span id="xdx_904_eus-gaap--LegalFees_pn5n6_c20260401__20260630_z1Ig8f8ZyIfh" title="Legal fees"><span id="xdx_90E_eus-gaap--LegalFees_pn5n6_c20260101__20260630_zYg24yl6D4Pb" title="Legal fees">2.6</span></span> million primarily consists of non-operating losses related to legal fees directly attributable to the legal settlement, recorded during the three months and six months ended June 30, 2026.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Three Months and Six Months Ended June 30, 2025</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 0.25in"> </td> <td style="vertical-align: top; width: 0.25in; text-align: left"><span style="font-size: 10pt">(a)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Interest Expense during the three months and six months ended June 30, 2025 consisted of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_906_eus-gaap--InterestExpenseDebt_pn5n6_c20250401__20250630__us-gaap--DebtInstrumentAxis__custom--ProductionFacilitiesMember_zDBemdCyTsK8" title="Interest expense">0.2</span> million and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_906_eus-gaap--InterestExpenseDebt_pn5n6_c20250101__20250630__us-gaap--DebtInstrumentAxis__custom--ProductionFacilitiesMember_z3cFwHWnwKld" title="Interest expense">0.3</span> million, respectively, primarily due to interest incurred on production facilities.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(b)</span></td> <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">The loss on revaluation of warrants during the three months ended June 30, 2025 was related to the remeasurement occurred immediately before reclassification of the outstanding 7,894,736 Series A warrants and 7,894,736 Series B warrants from liability to equity. The loss on revaluation of warrants during the six months ended June 30, 2025 consisted of $0.7 million loss recorded at remeasurement offset by a $0.4 million fair value gain in the period ended March 31, 2025 of the outstanding 7,894,736 Series A warrants and 7,894,736 Series B warrants. These warrants were classified as a liability in the period ended March 31, 2025 and change in their fair value resulted in a recorded gain due to a decrease of expiration period.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(c)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">As accounted for using the fair value option, the loss on revaluation of equity investment in YFE of $<span id="xdx_90D_eus-gaap--GainLossOnInvestments_pn5n6_c20250401__20250630_zunqN7uX9byb" title="Loss on revaluation of equity investment">3.8</span> million and $<span id="xdx_902_eus-gaap--GainLossOnInvestments_pn5n6_c20250101__20250630_zwi6BzWSd7Y9" title="Loss on revaluation of equity investment">7.4</span> million, respectively, recorded in the three months and six months ended June 30, 2025, was a result of the decreases in YFE’s stock price as of the reporting period when compared to the prior reporting period. This excluded the impact of foreign currency recorded separately.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(d)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">The realized loss on marketable securities investments of $<span id="xdx_901_eus-gaap--DebtSecuritiesRealizedGainLoss_c20250401__20250630_zbTlpd2VqCeb" title="Realized loss marketable securities investments">32,145</span> recorded during the three months ended June 30, 2025, was related to the Loss of $<span id="xdx_900_eus-gaap--DebtAndEquitySecuritiesRealizedGainLoss_c20250401__20250630_zS1tcgP8Tng9" title="Equity securities realized loss">37,197</span> on sale of certain securities prior to the maturity date, offset by the gain of $<span id="xdx_90A_eus-gaap--DebtAndEquitySecuritiesGainLoss_c20250401__20250630_zrBSQqmxNbjg" title="Equity offset by the Gain">5,053</span> attributable to the sale of U.S. Treasury Securities. The realized loss on marketable securities investments of $<span id="xdx_90C_eus-gaap--DebtSecuritiesRealizedGainLoss_c20250101__20250630_zWKqI14ZBWPf" title="Realized loss marketable securities investments">27,691</span> recorded during the six months ended June 30, 2025 was related to the loss of $<span id="xdx_903_eus-gaap--DebtAndEquitySecuritiesRealizedGainLoss_c20250101__20250630_zwh0qoQyd2e6" title="Equity securities realized loss">37,197</span> on sale of certain securities prior to the maturity date, offset by the gain of $<span id="xdx_904_eus-gaap--DebtAndEquitySecuritiesGainLoss_c20250101__20250630_zI0mOaD2MJe1" title="Equity offset by the Gain">9,507</span> attributable to the sale of U.S. Treasury securities.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(e)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">The gain on foreign exchange during the three months and six months ended June 30, 2025 primarily related to the revaluation of the YFE investment and remeasurement of foreign currency transactions of the Company’s non-U.S. subsidiary, resulting in a gain of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_90F_eus-gaap--ForeignCurrencyTransactionGainLossBeforeTax_pn5n6_c20250401__20250630__us-gaap--EquityMethodInvestmentNonconsolidatedInvesteeAxis__custom--YFEAcquisitionMember_z5xeAmy0JdY3">1.7</span> million and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_909_eus-gaap--ForeignCurrencyTransactionGainLossBeforeTax_pn5n6_c20250101__20250630__us-gaap--EquityMethodInvestmentNonconsolidatedInvesteeAxis__custom--YFEAcquisitionMember_zMQnJN6xCt8c">2.4</span> million, respectively, due to the depreciation of the U.S. dollar against the Euro relative to prior periods.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(f)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">In April 2025, a settlement agreement with YFE related to the shareholder loan agreement was finalized. As the settlement was considered probable and the loss reasonably estimable as of March 31, 2025, the Company recorded a loss of approximately $<span id="xdx_90B_eus-gaap--GainLossRelatedToLitigationSettlement_pn5n6_c20250101__20250331_zgL9fJNcQUjf" title="Loss on settlement">0.9</span> million during the first quarter of 2025.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(g)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Interest Income during the three and six months ended June 30, 2025, primarily consisted of income from investments in marketable securities, net of premium amortization expense, as well as other transactions, including interest income related to Employee Retention Tax Credit (“ERTC”) receivable and interest income related to the shareholder loan. Each of these sources was individually immaterial.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(h)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">The finance lease interest expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(i)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">On April 1, 2025, a subsidiary, Beacon Communications, executed a rent reassignment agreement relinquishing one floor of its office space in Toronto to a new tenant who assumed the lease obligation for that floor. This transaction resulted in a gain of $<span id="xdx_90F_ecustom--LeaseModification_c20250101__20250630_zwJuitu4q0w4" title="Lease modification">4,253</span> on lease modification recorded during the period ended June 30, 2025.</span></td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top; text-align: left"><span style="font-size: 10pt">(j)</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">During the three months ended June 30, 2025, a net loss of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_901_eus-gaap--NetIncomeLoss_pn5n6_c20250401__20250630__us-gaap--TransactionTypeAxis__custom--OtherIncomeReversalMember_zg2ZJ9HrUGKb" title="Net Income (Loss)">0.1</span> million was recognized in connection with the reversal of previously accrued other income related to Employee Retention Tax Credit (ERTC) claims. Other income had initially been recorded based on anticipated recoveries from submitted claims. Subsequent legislative developments reduced the expected recoverable amounts, resulting in a partial reversal of the accrued other income. The amount also included $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_90B_eus-gaap--OtherIncome_pn3n3_c20250101__20250630__us-gaap--TransactionTypeAxis__custom--OtherIncomeReversalMember_zCyjPLrBtYy" title="Other income">11,991</span> of other income, primarily consisting of late fees from select clients on payment plans. For the six months ended June 30, 2025, other income primarily related to such late fees totaled $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN1cHBsZW1lbnRhbCBGaW5hbmNpYWwgU3RhdGVtZW50IEluZm9ybWF0aW9uIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_905_ecustom--LateFees_pn3n3_c20250101__20250630__us-gaap--TransactionTypeAxis__custom--OtherIncomeReversalMember_zkDFsVCUxh5g" title="Late fees">50,197</span>.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--ScheduleOfOtherOperatingCostAndExpenseByComponentTextBlock_pn3n3_zTPlywp1v5L1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Supplemental Financial Statement Information (Details - Other income expense)"> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 40%"><span id="xdx_8B5_zHaEinzb3cG" style="display: none">Schedule of other income expense, net</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49E_20260401__20260630_zCtvFgm6yXda" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49D_20250401__20250630_z2tnzSStJcO6" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49E_20260101__20260630_zDj51ED20Ek" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_49E_20250101__20250630_zbFGerfAxd1b" style="text-align: center; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr id="xdx_40E_eus-gaap--InterestExpense_iN_pn3n3_di_zFEB2VLne8fj" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; font-weight: bold; text-align: left; padding-bottom: 1pt">Interest Expense (a)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(175</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(165</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(408</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 11%; font-weight: bold; text-align: right">(293</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OtherNonoperatingIncomeExpenseAbstract_iB_zP9s5kWpDKi5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Other Income (Expense), net (b-l)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LossOnRevaluationOfWarrantsMember_zqkZxIp3c59b" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Revaluation of Warrants (b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(678</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(232</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--LossOnRevaluationOfEquityInvestmentInYFEMember_zeEucFmtdif5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Revaluation of Equity Investment in YFE (c)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(514</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,778</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,471</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,418</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--RealizedLossOnMarketableSecuritiesInvestmentsMember_zp4cxV5e2J7c" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Realized Loss on Marketable Securities Investments (d)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(28</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--LossGainOnForeignExchangeMember_zFeY189IfwX" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">(Loss) Gain on Foreign Exchange (e)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(412</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,713</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(784</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,380</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LossOnDebtSettlementMember_zvDo3vm7ot8j" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Debt Settlement (f)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(630</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(754</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(944</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--OtherInterestIncomeMember_zKmYm1OemFdi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Interest Income (g)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">66</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--FinanceLeaseInterestExpenseMember_znLJHRvoS0Xc" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Finance Lease Interest Expense (h)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(8</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--GainOnLeaseModificationMember_z66wRVKFlqi9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Gain on Lease Modification (i)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LegalSettlementIncomeMember_zF5y93KHcMqc" style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Legal Settlement Income (j)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--OtherNonoperatingIncomeExpense_d0_hus-gaap--NatureOfExpenseAxis__custom--LossOnStandstillAgreementsMember_zikQORxQzGA" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Loss on Standstill Agreement (k)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherNonoperatingIncomeExpense_hus-gaap--NatureOfExpenseAxis__custom--OtherMember_zEu6xXO5EXyi" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt; text-align: left">Other (l)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,618</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(122</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,565</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(89</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_z8otuak5qsw6" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Other Income (Expense), net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">31,107</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,887</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">27,738</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(6,271</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> 175000 165000 408000 293000 0 -678000 0 -232000 -514000 -3778000 -3471000 -7418000 0 -32000 0 -28000 -412000 1713000 -784000 2380000 -630000 0 -754000 -944000 47000 12000 82000 66000 -4000 -6000 -8000 -10000 0 4000 0 4000 39238000 0 39238000 0 -4000000 0 -4000000 0 -2618000 -122000 -2565000 -89000 31107000 -2887000 27738000 -6271000 200000 400000 0 0 500000 3500000 0 0 400000 200000 600000 600000 800000 0 0 39200000 4000000 2600000 2600000 200000 300000 3800000 7400000 32145000 37197000 5053000 27691000 37197000 9507000 1700000 2400000 900000 4253000 100000 11991000 50197000 <p id="xdx_803_eus-gaap--IncomeTaxDisclosureTextBlock_zr48V8V4KTAd" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 18: <span id="xdx_822_zkNmDfr3Uwoi">Income Taxes</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company accounts for income taxes in accordance with ASC 740, <i>Income Taxes</i>, which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">ASC 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the six months ended June 30, 2026, the effective tax rate was 2.7%. The effective tax rate differed from the U.S. federal statutory rate primarily due to the tax impact from the net gain from the litigation settlement, state income taxes, a foreign tax rate differential, and a change in valuation allowance. For the six months ended June 30, 2025, the effective tax rate was 0.0%. The effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes, a foreign tax rate differential, and a change in valuation allowance. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026, the Company recorded an income tax expense of $<span id="xdx_90A_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_dxL_c20260101__20260630_zP7dk2NLrjxg" title="Income tax expense::XDX::573"><span style="-sec-ix-hidden: xdx2ixbrl2258">0.6</span></span> million. As of June 30, 2026 and December 31, 2025, net deferred tax liability was $<span id="xdx_908_eus-gaap--DeferredIncomeTaxLiabilitiesNet_iI_pn3n3_dxL_c20260630_ze6HrBqEIPI2" title="Net deferred tax liability::XDX::1181"><span style="-sec-ix-hidden: xdx2ixbrl2260">1.2</span></span> million and $<span id="xdx_90E_eus-gaap--DeferredIncomeTaxLiabilitiesNet_iI_pn3n3_dxL_c20251231_z8B8D4WKkzBf" title="Net deferred tax liability::XDX::1225"><span style="-sec-ix-hidden: xdx2ixbrl2262">1.2</span></span> million, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Kartoon Studios, Inc. and its wholly-owned U.S. subsidiaries are subject to U.S. income taxes and file consolidated and separate tax returns in the U.S. The Beacon Communications Group, Ltd., Ameba Inc. and Wow Unlimited Media Inc. are subject to Canadian income taxes on a stand-alone basis and file separate tax returns in Canada.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company files income tax returns in the U.S. federal jurisdiction and in the states of California, Florida, Massachusetts, New Jersey and New York, as well as Canada. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses were generated and carried forward to make adjustments up to the amount of the net operating losses. The Company is currently subject to U.S. federal, state and local and foreign tax examinations by tax authorities. The Company is no longer subject to audits by U.S. federal, state, local or foreign authorities for years prior to 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_807_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zZ8PtGeJcCll" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 19: <span id="xdx_82A_zUzjh6u7aHLl">Commitments and Contingencies</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a schedule of future minimum cash contractual obligations as of June 30, 2026 (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_pn3n3_zLqWov0Bt9he" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and Contingencies (Details - Minimum lease commitments)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BF_zNIsw1WyXT25" style="display: none">Schedule of future minimum lease payments</span></td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zYVoCJ54z7Gj" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_z1v0ehLaEKfh" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zgCo22NukdZ3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zaHzDKUlfLGe" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zdHGuA0p0G79" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zpeLf6Qu7c0c" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zuXl9BxV6qzf" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2027</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2028</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2029</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2030</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Thereafter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseLiabilitiesPaymentsDueAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 23%; text-align: left">Operating Leases</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630_zCxNWJ2RBzhl" style="width: 8%; text-align: right" title="2026">770</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630_zgU7Hpcb55Jb" style="width: 8%; text-align: right" title="2027">1,372</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630_z3PTvEBQt8Zh" style="width: 8%; text-align: right" title="2028">1,020</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20260630_zaxtSKTF4CLg" style="width: 8%; text-align: right" title="2029">1,057</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20260630_zHX2UQGwOl02" style="width: 8%; text-align: right" title="2030">1,083</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_c20260630_zNIXwWbkKT3b" style="width: 8%; text-align: right" title="Thereafter">1,083</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_pn3n3_c20260630_zGpqnuQZZgP3" style="width: 8%; text-align: right" title="Total">6,385</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FinanceLeaseLiabilitiesPaymentsDueAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finance Leases</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630_zq6rg3bBIOZa" style="text-align: right" title="2026">69</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630_z5HcSnomxAs9" style="text-align: right" title="2027">112</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630_zYshMwejx4zj" style="text-align: right" title="2028">28</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_d0_c20260630_zS2hM5emYpPk" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_d0_c20260630_zgLouoXzLqK8" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--FinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_d0_c20260630_zmbop5jkUojj" style="text-align: right" title="Thereafter">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseLiabilityPaymentsDue_pn3n3_c20260630_zx1xorJp32v" style="text-align: right" title="Total">209</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Employment Contracts</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zCoZReXJHVe2" style="text-align: right" title="2026">1,585</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractualObligationDueInNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zzgd4OAQ8vbf" style="text-align: right" title="2027">2,553</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligationDueInSecondYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_ztcrPhIgwr04" style="text-align: right" title="2028">1,416</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zcZduIuhzwB9" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zElFoTlQfkvk" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zjhf8EUwlTKk" style="text-align: right" title="Thereafter">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligation_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zl8JW8i0kpAc" style="text-align: right" title="Total">5,554</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consulting Contracts</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zV0Jay9IkI6i" style="text-align: right" title="2026">1,468</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ContractualObligationDueInNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zMllP055wCH3" style="text-align: right" title="2027">361</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractualObligationDueInSecondYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zTukQYxz92Sb" style="text-align: right" title="2028">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zaeZa7wvrN1d" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zoBANBRHvl5h" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zD8dtrwoIcPh" style="text-align: right" title="Thereafter">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractualObligation_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zvVwm7s2KYh9" style="text-align: right" title="Total">1,829</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Production Facilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zpsxHj565O74" style="border-bottom: Black 1pt solid; text-align: right" title="2026">12,928</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--ContractualObligationDueInNextTwelveMonths_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zOgEjixuHaaa" style="border-bottom: Black 1pt solid; text-align: right" title="2027">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ContractualObligationDueInSecondYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zieFI2pKCmNe" style="border-bottom: Black 1pt solid; text-align: right" title="2028">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zAlNGBhRn607" style="border-bottom: Black 1pt solid; text-align: right" title="2029">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zIfhZyNMb1Zb" style="border-bottom: Black 1pt solid; text-align: right" title="2030">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_z3x9N72A6SYe" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ContractualObligation_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_ztrPPEWOLHxg" style="border-bottom: Black 1pt solid; text-align: right" title="Total">12,928</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ContractualObligationFiscalYearMaturityAbstract_iB_z1E140gx1sie" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><b style="display: none">Contractual obligation</b></td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_c20260630_zKjJh72uzCoa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2026">16,820</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--ContractualObligationDueInNextTwelveMonths_i01I_pn3n3_c20260630_zAufG7Kg2w01" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2027">4,398</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractualObligationDueInSecondYear_i01I_pn3n3_c20260630_z6GJZlXF4ho5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2028">2,464</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_c20260630_zZlkH5IWIkm5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2029">1,057</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_c20260630_zeHpl9G11SPl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2030">1,083</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_c20260630_zuzWDiVwy1Sl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Thereafter">1,083</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractualObligation_i01I_pn3n3_c20260630_zuv00IVWyGbi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total">26,905</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8A9_zM29ecviaua1" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Leases</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The present value discount of the minimum operating lease payments above was $<span id="xdx_904_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pn5n6_c20260630_zVkgsdoGSlSe" title="Operating lease payments">1.5</span> million which when deducted from the cash commitments for the leases included in the table above, equates to the lease liabilities of $<span id="xdx_90E_eus-gaap--OperatingLeaseLiability_iI_pn5n6_c20260630_zCqc6Vm0zjA2" title="Operating lease liabilities">4.9</span> million recorded as of June 30, 2026 on the Company’s condensed consolidated balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Employment contracts</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has entered into employment agreements with certain key executives, which remain in effect for fixed terms. Under these agreements, the executives receive a base salary, subject to potential reviews at the discretion of the Board of Directors. Some of these agreements also include provisions for severance benefits in certain circumstances. As a result, the Company’s commitments under these agreements represent future salary or severance payments obligations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consulting Contracts and Other Commitments</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company also enters into consulting contracts, primarily for production-related work, that commit the Company to future payments for services to be rendered under the terms of each respective agreement. These commitments are not recorded as liabilities on the Company’s condensed consolidated balance sheets until the related services are performed. The Company also enters into various agreements associated with its individual properties. Some of these agreements call for the potential future payment of royalties or “profit” participations for either (i) the use of third party intellectual property, in which the Company is obligated to share net profits with the underlying rights holders on a certain basis as defined in the respective agreements, or (ii) services rendered by animation studios, post-production studios, writers, directors, musicians or other creative talent for which the Company is obligated to share with these service providers a portion of the net profits of the properties on which they have rendered services, as defined in each respective agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_pn3n3_zLqWov0Bt9he" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and Contingencies (Details - Minimum lease commitments)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BF_zNIsw1WyXT25" style="display: none">Schedule of future minimum lease payments</span></td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zYVoCJ54z7Gj" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_z1v0ehLaEKfh" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zgCo22NukdZ3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zaHzDKUlfLGe" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zdHGuA0p0G79" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zpeLf6Qu7c0c" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" id="xdx_49A_20260630_zuXl9BxV6qzf" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2027</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2028</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2029</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2030</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Thereafter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseLiabilitiesPaymentsDueAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 23%; text-align: left">Operating Leases</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630_zCxNWJ2RBzhl" style="width: 8%; text-align: right" title="2026">770</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630_zgU7Hpcb55Jb" style="width: 8%; text-align: right" title="2027">1,372</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630_z3PTvEBQt8Zh" style="width: 8%; text-align: right" title="2028">1,020</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20260630_zaxtSKTF4CLg" style="width: 8%; text-align: right" title="2029">1,057</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20260630_zHX2UQGwOl02" style="width: 8%; text-align: right" title="2030">1,083</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_c20260630_zNIXwWbkKT3b" style="width: 8%; text-align: right" title="Thereafter">1,083</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_pn3n3_c20260630_zGpqnuQZZgP3" style="width: 8%; text-align: right" title="Total">6,385</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FinanceLeaseLiabilitiesPaymentsDueAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finance Leases</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630_zq6rg3bBIOZa" style="text-align: right" title="2026">69</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630_z5HcSnomxAs9" style="text-align: right" title="2027">112</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630_zYshMwejx4zj" style="text-align: right" title="2028">28</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_d0_c20260630_zS2hM5emYpPk" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_d0_c20260630_zgLouoXzLqK8" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--FinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_d0_c20260630_zmbop5jkUojj" style="text-align: right" title="Thereafter">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseLiabilityPaymentsDue_pn3n3_c20260630_zx1xorJp32v" style="text-align: right" title="Total">209</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Employment Contracts</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zCoZReXJHVe2" style="text-align: right" title="2026">1,585</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractualObligationDueInNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zzgd4OAQ8vbf" style="text-align: right" title="2027">2,553</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligationDueInSecondYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_ztcrPhIgwr04" style="text-align: right" title="2028">1,416</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zcZduIuhzwB9" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zElFoTlQfkvk" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zjhf8EUwlTKk" style="text-align: right" title="Thereafter">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligation_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__us-gaap--EmploymentContractsMember_zl8JW8i0kpAc" style="text-align: right" title="Total">5,554</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consulting Contracts</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zV0Jay9IkI6i" style="text-align: right" title="2026">1,468</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ContractualObligationDueInNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zMllP055wCH3" style="text-align: right" title="2027">361</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractualObligationDueInSecondYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zTukQYxz92Sb" style="text-align: right" title="2028">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zaeZa7wvrN1d" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zoBANBRHvl5h" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zD8dtrwoIcPh" style="text-align: right" title="Thereafter">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractualObligation_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ConsultingContractsMember_zvVwm7s2KYh9" style="text-align: right" title="Total">1,829</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Production Facilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zpsxHj565O74" style="border-bottom: Black 1pt solid; text-align: right" title="2026">12,928</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--ContractualObligationDueInNextTwelveMonths_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zOgEjixuHaaa" style="border-bottom: Black 1pt solid; text-align: right" title="2027">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ContractualObligationDueInSecondYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zieFI2pKCmNe" style="border-bottom: Black 1pt solid; text-align: right" title="2028">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zAlNGBhRn607" style="border-bottom: Black 1pt solid; text-align: right" title="2029">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_zIfhZyNMb1Zb" style="border-bottom: Black 1pt solid; text-align: right" title="2030">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_d0_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_z3x9N72A6SYe" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ContractualObligation_iI_pn3n3_c20260630__us-gaap--OtherCommitmentsAxis__custom--ProductionFacilitiesMember_ztrPPEWOLHxg" style="border-bottom: Black 1pt solid; text-align: right" title="Total">12,928</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ContractualObligationFiscalYearMaturityAbstract_iB_z1E140gx1sie" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><b style="display: none">Contractual obligation</b></td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear_iI_c20260630_zKjJh72uzCoa" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2026">16,820</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--ContractualObligationDueInNextTwelveMonths_i01I_pn3n3_c20260630_zAufG7Kg2w01" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2027">4,398</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractualObligationDueInSecondYear_i01I_pn3n3_c20260630_z6GJZlXF4ho5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2028">2,464</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--ContractualObligationDueInThirdYear_iI_pn3n3_c20260630_zZlkH5IWIkm5" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2029">1,057</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--ContractualObligationDueInFourthYear_iI_pn3n3_c20260630_zeHpl9G11SPl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="2030">1,083</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_ecustom--ContractualObligationDueAfterFourYear_iI_pn3n3_c20260630_zuzWDiVwy1Sl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Thereafter">1,083</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractualObligation_i01I_pn3n3_c20260630_zuv00IVWyGbi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total">26,905</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 770000 1372000 1020000 1057000 1083000 1083000 6385000 69000 112000 28000 0 0 0 209000 1585000 2553000 1416000 0 0 0 5554000 1468000 361000 0 0 0 0 1829000 12928000 0 0 0 0 0 12928000 16820000 4398000 2464000 1057000 1083000 1083000 26905000 1500000 4900000 <p id="xdx_80E_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_z1VLZSgQrQ4c" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 20: <span id="xdx_828_z69dz2CR6PBe">Related Party Transactions</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During 2022, the Company entered into a sublease agreement with a related party to lease one office in the general office space at 190 N. Canon Drive, Suite 400, Beverly Hills, CA 90210. The monthly income was $595 during the six months ended June 30, 2026 and June 30, 2025, and recorded within Other Income (Expense), net in the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the quarter ended September 30, 2024, the Company entered into <span style="background-color: white">a consulting</span> agreement with a related party for office space interior design services. The agreement was subject to an initial fee of $<span id="xdx_90C_ecustom--InitialFee_pp0p0_c20240831__20240901__srt--StatementGeographicalAxis__custom--BeverlyHillsCAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--SubleaseAgreementMember_zZoKO9ewpfce" title="Initial fee">6,545</span> and a monthly fee of $<span id="xdx_902_ecustom--MonthlyFee_pp0p0_c20240831__20240901__srt--StatementGeographicalAxis__custom--BeverlyHillsCAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--SubleaseAgreementMember_z4rryWPHjaK7" title="Monthly fee">595</span> that commenced on September 1, 2024. The monthly expense was $<span id="xdx_90E_ecustom--OperatingLeaseMonthlySubleasePayment_c20260101__20260630__srt--StatementGeographicalAxis__custom--BeverlyHillsCAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--SubleaseAgreementMember_pp0p0" title="Monthly sublease payments"><span id="xdx_90D_ecustom--OperatingLeaseMonthlySubleasePayment_pp0p0_c20250101__20250630__srt--StatementGeographicalAxis__custom--BeverlyHillsCAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--SubleaseAgreementMember_zWdSXMHR2nSb" title="Monthly sublease payments">595</span></span> during the six months ended June 30, 2026 and June 30, 2025, and was recorded within General and Administrative Expenses in the Company’s condensed consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On February 6, 2025, certain members of the Company’s executive management team, including the Chief Operating Officer, established The Stan Lee Foundation (the “Foundation”), a nonprofit organization that was granted tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. The Foundation operates independently and is not owned, governed, or controlled by the Company. The Company has no ongoing funding commitment to the Foundation and retains no financial interest in its operations or assets. From the Foundation’s inception on February 6, 2025 through June 30, 2026, the Company provided administrative support to the Foundation totaling approximately $<span id="xdx_90B_eus-gaap--AdministrativeFeesExpense_pp0p0_c20250206__20260630__srt--StatementGeographicalAxis__custom--BeverlyHillsCAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--SubleaseAgreementMember_zK8y5nlPQOlg" title="Administrative expenses">805</span>. The Company does not expect to provide material financial support to the Foundation in future periods. The Company may engage with the Foundation in connection with community and reputational initiatives. The Foundation is not consolidated in the Company’s condensed consolidated financial statements. The administrative support provided is not considered material to the Company’s condensed consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 25, 2025, the Company entered into a new employment agreement with Mr. Heyward, the Company’s CEO, which replaced and superseded all prior employment agreements. The agreement revised certain compensation terms, including a new performance-based bonus structure contingent on market capitalization and net income thresholds as of December 31, 2025. The agreement further provided that Mr. Heyward would receive an award of <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20250824__20250825__us-gaap--RelatedPartyTransactionAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--PlanNameAxis__custom--Plan2020Member_zEOVXLcvCld4" title="RSUs awards">2,000,000</span> RSUs under the 2020 Plan and would not be eligible to receive any other equity-based awards during the employment term. Subsequent to entering into the Heyward Employment Agreement, the Company and Mr. Heyward determined to revisit the terms of such equity grant. The Company and Mr. Heyward have not yet made a determination regarding the revised terms of such equity grant. Therefore, the RSUs issuable pursuant to his employment agreement were not issued to Mr. Heyward as of June 30, 2026. No bonuses were earned or accrued under this agreement as of June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the agreement, Mr. Heyward was entitled to an executive producer fee of $<span id="xdx_90E_eus-gaap--ProfessionalAndContractServicesExpense_pp0p0_c20250824__20250825__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--EmploymentAgreementsMember_zNnDuDnihuJe" title="Producer fee for each episode">12,500</span> per episode for each episode he provides services as an executive producer, up to maximum <span id="xdx_905_ecustom--NumberOfEpisodes_uEpisode_c20250824__20250825__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--EmploymentAgreementsMember_zo3KvRJZtTbj" title="Number of episodes">52</span> episodes per calendar year. During the six months ended June 30, 2026 and June 30, 2025, Mr. Heyward did <span id="xdx_906_eus-gaap--ProfessionalFees_pp0p0_do_c20260101__20260630__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--EmploymentAgreementsMember_zdYsxw4gg1ch" title="Producer fee"><span id="xdx_90B_eus-gaap--ProfessionalFees_pp0p0_do_c20250101__20250630__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__us-gaap--RelatedPartyTransactionAxis__custom--EmploymentAgreementsMember_zl8uSYv8ebEe" title="Producer fee">no</span></span>t earn or was not paid any producer fees. Subsequent to the quarter end, Mr. Heyward’s employment agreement was amended. For additional information, see Note 22, <i>Subsequent Events</i>, to our condensed consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> 6545 595 595 595 805 2000000 12500 52 0 0 <p id="xdx_80E_eus-gaap--SegmentReportingDisclosureTextBlock_zcCgTZH2XuTg" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 21: <span id="xdx_826_zEz7Ocp9Eiii">Segment Reporting</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">ASC Topic 280, <i>Segment Reporting,</i> 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 (“CODM”), or group, in deciding how to allocate resources and assess performance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Chief Executive Officer, as the CODM, organizes our company, manages resource allocations and measures performance among <span id="xdx_900_eus-gaap--NumberOfOperatingSegments_dxL_uInteger_c20260101__20260630_zHMUD8ZPekAb" title="Number of operating segments::XDX::2"><span id="xdx_90E_eus-gaap--NumberOfReportableSegments_dxL_uInteger_c20260101__20260630_zkq8LUdXyMz2" title="Number of reportable segments::XDX::2"><span style="-sec-ix-hidden: xdx2ixbrl2412"><span style="-sec-ix-hidden: xdx2ixbrl2414">two</span></span></span></span> operating and reportable segments, which were identified based on the nature of the products and services offered:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Symbol">·</span></td><td style="text-align: justify">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.</td></tr> <tr style="vertical-align: top"> <td> </td><td> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in"><span style="font-family: Symbol">·</span></td><td style="text-align: justify">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.</td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s CODM decides on resource allocation predominantly based on the annual budget and forecasting process. The CODM considers budget-to-actual variances on a periodic basis when making decision about allocating resources to the segments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The CODM uses revenue and net income (loss) to evaluate the profitability and performance of each operating segment, because it provides insight to operational leverage and other operational metrics for each segment. The CODM reviews revenue and net operating results, as allocated based on the nature of the business activity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The CODM does not evaluate the operating segments using asset information and it is therefore not disclosed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table presents the revenue and net earnings within the Company’s two operating segments (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_894_ecustom--ScheduleOfSegmentReportingInformationBySegment1TextBlock_pn3n3_zvgkKxi6vTwd" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Segment Reporting (Details- Revenue and net earnings)"> <tr style="vertical-align: bottom"> <td style="width: 40%"><span id="xdx_8B9_zIVUQOhU0yr" style="display: none">Schedule of segment information by revenues and net income (loss)</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Total Revenues:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 40%; text-align: left">Content Production and Distribution</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_z0fKbo5tBlfg" style="width: 11%; text-align: right" title="Total revenues">5,373</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zU5QjfHsMG87" style="width: 11%; text-align: right" title="Total revenues">9,437</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zWnJUyWJsOv8" style="width: 11%; text-align: right" title="Total revenues">11,812</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zvTf7Vxl3Vx4" style="width: 11%; text-align: right" title="Total revenues">18,074</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Media Advisory and Advertising Services</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zjJpMIW37NT7" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">448</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_znHiGIeGPgG1" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">842</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zM3AGJDHSqva" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">1,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zw7erHoZb3O7" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">1,709</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630_znm0TnJxKjhd" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">5,821</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630_zFeix0NCxhM3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">10,279</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630_zE1ebP1ttgLi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">13,059</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630_zMmrHueEKTOj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">19,783</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Net Income (Loss):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Content Production and Distribution</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zGCMPbqxbiE" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">27,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zSwPWqe2rcPb" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(5,505</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zhRPiFJROPh8" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">21,562</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--NetIncomeLoss_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zSq7jBNV8Kyc" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(11,531</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left; padding-bottom: 1pt">Media Advisory and Advertising Services</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_z1QgtsDu5XJ" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(586</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zCSKUbyyGso7" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(658</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--NetIncomeLoss_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zN3Qwi6z5Ir2" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(942</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--NetIncomeLoss_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zGEgijCT1UMd" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(1,158</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Net Income (Loss) Attributable to Kartoon Studios, Inc.</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630_zJAxNDESIhTc" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">26,985</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630_zFA283161fWi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(6,163</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--NetIncomeLoss_pn3n3_c20260101__20260630_zO9s0fAWRTBg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">20,620</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--NetIncomeLoss_pn3n3_c20250101__20250630_zSYi3cmNrDO" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(12,689</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_8A0_zQ3eSnfzJ8Bc" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Geographic Information</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table provides information about disaggregated revenue by geographic area (in thousands):</p> <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_pn3n3_zTotpcGvQZ9d" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Segment Reporting (Details- Disaggregated revenue)"> <tr style="vertical-align: bottom"> <td style="width: 40%"><span id="xdx_8B6_zl9d6IluPfp2" style="display: none">Schedule of segments by geographic area</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Total Revenues:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 40%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__country--US_zg3ZeoQqe38b" style="width: 11%; text-align: right" title="Total revenues">2,649</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__country--US_zFWaLmTYbYQh" style="width: 11%; text-align: right" title="Total revenues">4,889</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__country--US_z5Pp0U8y90Hh" style="width: 11%; text-align: right" title="Total revenues">6,627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__country--US_zQhF61yWjLVg" style="width: 11%; text-align: right" title="Total revenues">9,615</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Canada</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__country--CA_zxxf4HTaZXWc" style="text-align: right" title="Total revenues">387</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__country--CA_zvCPjLd0w5Zi" style="text-align: right" title="Total revenues">3,734</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__country--CA_z2iJLrmLf2Tk" style="text-align: right" title="Total revenues">1,278</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__country--CA_zIDOfCSZH5o3" style="text-align: right" title="Total revenues">6,761</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">United Kingdom</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__country--GB_zNjiIq4GF2vh" style="text-align: right" title="Total revenues">2,745</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__country--GB_zmJneQxgiRFf" style="text-align: right" title="Total revenues">1,618</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__country--GB_zVkFVWjzmHT9" style="text-align: right" title="Total revenues">5,096</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__country--GB_zKf2ck8ZKswi" style="text-align: right" title="Total revenues">3,330</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_zH5wVaYkNA9c" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">40</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_z4M8y6Ek5Vtj" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">38</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_zfE5YwE1FUQ5" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">58</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_zf38p5o0YOf6" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">77</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630_zU759Tin5eca" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">5,821</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630_zK8vAUBzsCW8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">10,279</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630_zMWcm5pjkQri" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">13,059</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630_z8chi9QRYcca" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">19,783</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_8AA_zjtUQuAMB042" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additional considerations include the use of segment-level budgets and forecasts created by Mainframe Studios, Frederator Studios 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 Studios 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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:</p> <table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zzoQbgHdv8k3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Segment Reporting (Details - Segment allocation)"> <tr style="vertical-align: bottom"> <td style="width: 49%"><span id="xdx_8B4_z4tHtKzr79jl" style="display: none">Schedule of segment allocations</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260401__20260630_zg3QCTy4M6k" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260401__20260630_zXjlrgFpj6S7" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260401__20260630_zKB2h9oyRiEj" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30, 2026</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content<br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory <br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--Revenues_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zXGAp2Ru0Zr9" style="width: 13%; text-align: right" title="Revenue">5,373</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--Revenues_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zrB0pRDysRBf" style="width: 13%; text-align: right" title="Revenue">448</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--Revenues_pn3n3_c20260401__20260630_zw3fypq1sG3b" style="width: 13%; text-align: right" title="Revenue">5,821</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingExpensesAbstract_iB_zxQYxaioUj8i" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zKsh2ZM6iZ67" style="text-align: right" title="Selling, marketing and direct operating costs">(4,731</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zOUU2ikX7uxl" style="text-align: right" title="Selling, marketing and direct operating costs">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20260401__20260630_z1j1xFnbnYFi" style="text-align: right" title="Selling, marketing and direct operating costs">(4,774</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">General and Administrative Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zqsTbzPwrsnf" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(2,570</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zk2pywHkMMG4" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(975</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260401__20260630_z7FLEsjsC2f6" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(3,545</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zbvuO8KAB7cb" style="font-weight: bold; text-align: right" title="Segment results">(1,928</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zzIWDLAiQQG3" style="font-weight: bold; text-align: right" title="Segment results">(570</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260401__20260630_zU9Bh6iF7Xy8" style="font-weight: bold; text-align: right" title="Segment results">(2,498</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAbstract_iB_z5LvV5KW1gdd" style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--Depreciation_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_z899yoyNHYPe" style="text-align: right" title="Depreciation expense">(676</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--Depreciation_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zeRdbnCMXzxb" style="text-align: right" title="Depreciation expense">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--Depreciation_iN_pn3n3_di_c20260401__20260630_zerXqMPVnrH9" style="text-align: right" title="Depreciation expense">(719</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--InterestExpense_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zMcdpmQHHxM1" style="text-align: right" title="Interest expense">(175</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--InterestExpense_iN_pn3n3_di0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zf7YOynvhGYc" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--InterestExpense_iN_pn3n3_di_c20260401__20260630_zfNb5V588jb4" style="text-align: right" title="Interest expense">(175</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensation_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zmWtYOqhLFQ4" style="text-align: right" title="Stock based compensation">(193</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z1JIBgsDRlV4" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensation_pn3n3_c20260401__20260630_zRKRDnEwzOSl" style="text-align: right" title="Stock based compensation">(193</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal Settlement Income</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--LitigationSettlementInterest_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zOXk3sASMfD5" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LitigationSettlementInterest_pn3n3_d0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zCPpzkd8nHmf" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--LitigationSettlementInterest_pn3n3_c20260401__20260630_zXCLMyR8Zqvh" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Standstill Agreement Accrued Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zxZ0jMHvGNT7" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--StandstillAgreementAccruedExpense_pn3n3_d0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z1ZjPe1NIdzj" style="text-align: right" title="Standstill Agreement Accrued Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260401__20260630_zJaDvEZuIRt7" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income Tax Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zafPJ5qfjCLh" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zevDtQVVSpn8" style="text-align: right" title="Income Tax Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260401__20260630_zWsmeGLA4Cyk" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zR8k5Anug6Di" style="text-align: right" title="Other">(4,158</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zZ2i3yIJoea2" style="text-align: right" title="Other">27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260401__20260630_zSiQWb9vX7xa" style="text-align: right" title="Other">(4,131</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zacXAbWxMnz1" style="text-align: right" title="Net loss attributable to non-controlling interests">36</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zh8zmkFVjUZ3" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260401__20260630_zBXOHjpxsIoj" style="text-align: right" title="Net loss attributable to non-controlling interests">36</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_z1AngUKwv3da" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">27,571</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zoHSNuHV700k" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(586</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630_zx2DpID67Fr" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">26,985</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 49%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content <br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory<br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--Revenues_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zzAeoK58FGHj" style="width: 13%; text-align: right" title="Revenue">9,437</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--Revenues_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zpmdPOvEb9J4" style="width: 13%; text-align: right" title="Revenue">842</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Revenues_pn3n3_c20250401__20250630_z7qpzmgm8rcc" style="width: 13%; text-align: right" title="Revenue">10,279</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingExpensesAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zspcIaWH5f92" style="text-align: right" title="Selling, marketing and direct operating costs">(7,212</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_ze6RXS9yEvR4" style="text-align: right" title="Selling, marketing and direct operating costs">(70</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20250401__20250630_zaqE1ySobHV1" style="text-align: right" title="Selling, marketing and direct operating costs">(7,282</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">General and Administrative Expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zxy2vbh2Ojol" style="text-align: right" title="General and administrative expenses">(4,176</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_ze9gKn7XcXKj" style="text-align: right" title="General and administrative expenses">(1,252</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250401__20250630_zj7S1Z16csl7" style="text-align: right" title="General and administrative expenses">(5,428</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other Segment Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--OtherExpenses_iN_pn3n3_di0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_ztv7UXuVaWq4" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--OtherExpenses_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zIRMEHxXconl" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--OtherExpenses_iN_pn3n3_di0_c20250401__20250630_zvj3PgnWcQm2" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zf9OSvC6TAG5" style="font-weight: bold; text-align: right" title="Segment results">(1,951</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zufvDqmmCqLf" style="font-weight: bold; text-align: right" title="Segment results">(488</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250401__20250630_z7PWmbiACxB4" style="font-weight: bold; text-align: right" title="Segment results">(2,439</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--NetIncomeLossAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--Depreciation_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zjQc4v9MllWh" style="text-align: right" title="Depreciation expense">(685</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--Depreciation_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zWXecC2T7Xng" style="text-align: right" title="Depreciation expense">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--Depreciation_iN_pn3n3_di_c20250401__20250630_zAdOVi6YYQlg" style="text-align: right" title="Depreciation expense">(728</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--InterestExpense_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zNkw2XkkyeK3" style="text-align: right" title="Interest expense">(165</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--InterestExpense_iN_pn3n3_di0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zTcevUVUSmOj" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--InterestExpense_iN_pn3n3_di_c20250401__20250630_zSnZuh9gTXd5" style="text-align: right" title="Interest expense">(165</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensation_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zBOmhJ0iXhcf" style="text-align: right" title="Stock based compensation">(48</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zHdkblWiAOmf" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20250401__20250630_zUkMXEvzIBeg" style="text-align: right" title="Stock based compensation">(48</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zLN5LYZCQDah" style="text-align: right" title="Other">(2,760</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z5lZgwZa6p73" style="text-align: right" title="Other">(127</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20250401__20250630_zLNf22EvGUdk" style="text-align: right" title="Other">(2,887</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zPw3ZObkUGBl" style="text-align: right" title="Net loss attributable to non-controlling interests">104</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_ztOUr4jk5cCj" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250401__20250630_zEohgM6GUTk8" style="text-align: right" title="Net loss attributable to non-controlling interests">104</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zz6EQjn1g4d4" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(5,505</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zhe8E95jaYha" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(658</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630_zsb5wdW3PNi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(6,163</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2026</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content <br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory<br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--Revenues_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">11,812</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--Revenues_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">1,247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--Revenues_c20260101__20260630_pn3n3" style="width: 13%; text-align: right" title="Revenue">13,059</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingExpensesAbstract_iB_zCqiz2a2A58" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(9,568</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(115</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20260101__20260630_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(9,683</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">General and Administrative Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zJ59W5aM51N2" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(5,734</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z6JPQot1DT81" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(2,033</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260101__20260630_zhTlVXqdJH34" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(7,767</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zhzVU7nfIPQ1" style="font-weight: bold; text-align: right" title="Segment results">(3,490</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zXEDmwwdR6H5" style="font-weight: bold; text-align: right" title="Segment results">(901</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260101__20260630_zlGQYWW07Rx1" style="font-weight: bold; text-align: right" title="Segment results">(4,391</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLossAbstract_iB_zfNsY8iKGzGe" style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--Depreciation_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zaKUXHnJ0pLe" style="text-align: right" title="Depreciation expense">(1,351</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--Depreciation_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z79xMLIEtzYh" style="text-align: right" title="Depreciation expense">(87</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--Depreciation_iN_pn3n3_di_c20260101__20260630_zbe4yUvf54h3" style="text-align: right" title="Depreciation expense">(1,438</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--InterestExpense_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zRUr6BMXArPi" style="text-align: right" title="Interest expense">(408</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--InterestExpense_iN_pn3n3_di0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zhIMfEPpKJh5" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--InterestExpense_iN_pn3n3_di_c20260101__20260630_zzo5a8Xecwq8" style="text-align: right" title="Interest expense">(408</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensation_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Stock based compensation">(384</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zh5PbvmXFs53" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensation_c20260101__20260630_pn3n3" style="text-align: right" title="Stock based compensation">(384</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal Settlement Income</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--LitigationSettlementInterest_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zpJ9xU8doyl7" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--LitigationSettlementInterest_pn3n3_d0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z3deTVnur3sh" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LitigationSettlementInterest_pn3n3_c20260101__20260630_zcHs8sXLtSKc" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Standstill Agreement Accrued Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zontMgcvEN7j" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--StandstillAgreementAccruedExpense_pn3n3_d0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zAhdLosj4n19" style="text-align: right" title="Standstill Agreement Accrued Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260101__20260630_zFAU36PXDBD9" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income Tax Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zrppqGW2v2Yf" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zcsHgNqIbnV5" style="text-align: right" title="Income Tax Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260101__20260630_zU3mtbzD0qug" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zZjz7l5g0qk2" style="text-align: right" title="Other">(7,546</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--OtherNonoperatingIncomeExpense1_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Other">46</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260101__20260630_z0WScU288FR8" style="text-align: right" title="Other">(7,500</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zPeXBFdKOql3" style="text-align: right" title="Net loss attributable to non-controlling interests">76</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zEIRdnQXqGKi" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260101__20260630_zynFV3KrAXRe" style="text-align: right" title="Net loss attributable to non-controlling interests">76</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--NetIncomeLoss_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">21,562</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--NetIncomeLoss_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(942</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--NetIncomeLoss_c20260101__20260630_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">20,620</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content <br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory <br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--Revenues_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">18,074</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Revenues_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">1,709</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--Revenues_c20250101__20250630_pn3n3" style="width: 13%; text-align: right" title="Revenue">19,783</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingExpensesAbstract_iB_zszPcgMv966b" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(14,002</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(148</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20250101__20250630_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(14,150</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">General and Administrative Expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zMr2bqZV7oQ2" style="text-align: right" title="General and administrative expenses">(7,850</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zB5Zyi6A9C8j" style="text-align: right" title="General and administrative expenses">(2,520</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250101__20250630_z0Wald8lqlMb" style="text-align: right" title="General and administrative expenses">(10,370</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other Segment Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--OtherExpenses_iN_pn3n3_di0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zOK0mD8C4bR3" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherExpenses_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z5jbRFb6ExG2" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--OtherExpenses_iN_pn3n3_di_c20250101__20250630_z0yLI48X8TDg" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zVQgFi9EPPjg" style="font-weight: bold; text-align: right" title="Segment results">(3,778</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zVCD4aFlXYPa" style="font-weight: bold; text-align: right" title="Segment results">(967</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250101__20250630_zEwj0onbVqs2" style="font-weight: bold; text-align: right" title="Segment results">(4,745</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLossAbstract_iB_zjnI3f0e4Pb8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--Depreciation_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zTW39Xn77OH8" style="text-align: right" title="Depreciation expense">(1,324</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--Depreciation_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zGklfgknLwLg" style="text-align: right" title="Depreciation expense">(90</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--Depreciation_iN_pn3n3_di_c20250101__20250630_zNeqOvjXldM5" style="text-align: right" title="Depreciation expense">(1,414</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--InterestExpense_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zQ5hiPlldzQ" style="text-align: right" title="Interest expense">(293</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--InterestExpense_iN_pn3n3_di0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zx0HWlSmHHy9" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--InterestExpense_iN_pn3n3_di_c20250101__20250630_zd5HBZM0csS7" style="text-align: right" title="Interest expense">(293</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensation_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Stock based compensation">(135</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zOFoE01CfMlj" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensation_c20250101__20250630_pn3n3" style="text-align: right" title="Stock based compensation">(135</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--OtherNonoperatingIncomeExpense1_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Other">(6,170</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--OtherNonoperatingIncomeExpense1_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Other">(101</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--OtherNonoperatingIncomeExpense1_c20250101__20250630_pn3n3" style="text-align: right" title="Other">(6,271</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zAxAgSvH6yKb" style="text-align: right" title="Net loss attributable to non-controlling interests">169</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zTRqjDbixUK8" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250101__20250630_zhzaVQdNY5xh" style="text-align: right" title="Net loss attributable to non-controlling interests">169</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(11,531</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--NetIncomeLoss_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(1,158</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--NetIncomeLoss_c20250101__20250630_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(12,689</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_8AA_zMtqB4sukWO4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In evaluating segment expenses, the CODM primarily focuses on cash operating costs and budget-to-actual variances, as these measures are most relevant to assessing operating performance and making resource allocation decisions. All other segment items included in net income or loss are reported on the consolidated statements of operations and described within their respective disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sale of Frederator Networks, Inc.</p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Frederator Networks operated within the Company’s Content Production and Distribution segment, and its operating results are included in income from continuing operations within that segment for all periods through June 30, 2026. As described in Note 1, <i>Organization and Business - Recent Transactions</i>, control of Frederator Networks transferred to the buyer on July 8, 2026. Accordingly, its results will be excluded from the segment beginning in the third quarter of 2026. The disposal did not represent a strategic shift that would have a major effect on the Company’s operations or financial results and therefore did not meet the criteria for discontinued operations under ASC 205-20, <i>Presentation of Financial Statements Discontinued Operations</i>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Beginning in the third quarter of 2026, the exclusion of Frederator Networks is expected to affect the Content Production and Distribution segment as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.55in"></td><td style="width: 0.25in"><span style="font-family: Symbol">·</span></td><td>Revenues are expected to decrease by $<span id="xdx_901_eus-gaap--Revenues_pn5n6_c20260702__20260930__srt--StatementScenarioAxis__srt--ScenarioForecastMember_zLoclAglXq5d" title="Revenues are expected to decrease">1.9</span> million due to the exclusion of Frederator’s post-sale activity.</td></tr> <tr style="vertical-align: top"> <td> </td><td> </td><td> </td></tr> <tr style="vertical-align: top"> <td></td><td><span style="font-family: Symbol">·</span></td><td>Operating loss is expected to decrease by $<span id="xdx_903_eus-gaap--OperatingIncomeLoss_pn5n6_c20260702__20260930__srt--StatementScenarioAxis__srt--ScenarioForecastMember_zH7MCTDrXTig" title="Operating loss">0.1</span> million, reflecting the removal of Frederator’s operations.</td></tr> <tr style="vertical-align: top"> <td> </td><td> </td><td> </td></tr> <tr style="vertical-align: top"> <td></td><td><span style="font-family: Symbol">·</span></td><td>A one-time loss on deconsolidation of $<span id="xdx_908_eus-gaap--DeconsolidationGainOrLossAmount_pn5n6_c20260702__20260930__srt--StatementScenarioAxis__srt--ScenarioForecastMember_z2sBmXzU65D8" title="Loss on deconsolidation">0.3</span> million, is expected to be recognized in the third quarter of 2026, which is not allocated to segment operating income in accordance with the Company’s segment reporting policies.</td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company does not expect the sale and deconsolidation of Frederator Networks to have a material impact on the long-term financial performance of the Content Production and Distribution segment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_894_ecustom--ScheduleOfSegmentReportingInformationBySegment1TextBlock_pn3n3_zvgkKxi6vTwd" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Segment Reporting (Details- Revenue and net earnings)"> <tr style="vertical-align: bottom"> <td style="width: 40%"><span id="xdx_8B9_zIVUQOhU0yr" style="display: none">Schedule of segment information by revenues and net income (loss)</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Total Revenues:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 40%; text-align: left">Content Production and Distribution</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_z0fKbo5tBlfg" style="width: 11%; text-align: right" title="Total revenues">5,373</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zU5QjfHsMG87" style="width: 11%; text-align: right" title="Total revenues">9,437</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zWnJUyWJsOv8" style="width: 11%; text-align: right" title="Total revenues">11,812</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zvTf7Vxl3Vx4" style="width: 11%; text-align: right" title="Total revenues">18,074</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Media Advisory and Advertising Services</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zjJpMIW37NT7" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">448</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_znHiGIeGPgG1" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">842</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zM3AGJDHSqva" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">1,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zw7erHoZb3O7" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">1,709</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630_znm0TnJxKjhd" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">5,821</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630_zFeix0NCxhM3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">10,279</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630_zE1ebP1ttgLi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">13,059</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630_zMmrHueEKTOj" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">19,783</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Net Income (Loss):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left">Content Production and Distribution</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zGCMPbqxbiE" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">27,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zSwPWqe2rcPb" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(5,505</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--NetIncomeLoss_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zhRPiFJROPh8" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">21,562</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--NetIncomeLoss_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionDistributionMember_zSq7jBNV8Kyc" style="text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(11,531</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; text-align: left; padding-bottom: 1pt">Media Advisory and Advertising Services</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_z1QgtsDu5XJ" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(586</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zCSKUbyyGso7" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(658</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--NetIncomeLoss_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zN3Qwi6z5Ir2" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(942</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--NetIncomeLoss_pn3n3_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingServicesMember_zGEgijCT1UMd" style="border-bottom: Black 1pt solid; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(1,158</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-indent: -10pt; padding-left: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Net Income (Loss) Attributable to Kartoon Studios, Inc.</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630_zJAxNDESIhTc" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">26,985</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630_zFA283161fWi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(6,163</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--NetIncomeLoss_pn3n3_c20260101__20260630_zO9s0fAWRTBg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">20,620</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--NetIncomeLoss_pn3n3_c20250101__20250630_zSYi3cmNrDO" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total Net Income (Loss) Attributable to Kartoon Studios, Inc.">(12,689</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 5373000 9437000 11812000 18074000 448000 842000 1247000 1709000 5821000 10279000 13059000 19783000 27571000 -5505000 21562000 -11531000 -586000 -658000 -942000 -1158000 26985000 -6163000 20620000 -12689000 <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_pn3n3_zTotpcGvQZ9d" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Segment Reporting (Details- Disaggregated revenue)"> <tr style="vertical-align: bottom"> <td style="width: 40%"><span id="xdx_8B6_zl9d6IluPfp2" style="display: none">Schedule of segments by geographic area</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Total Revenues:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 40%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__country--US_zg3ZeoQqe38b" style="width: 11%; text-align: right" title="Total revenues">2,649</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__country--US_zFWaLmTYbYQh" style="width: 11%; text-align: right" title="Total revenues">4,889</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__country--US_z5Pp0U8y90Hh" style="width: 11%; text-align: right" title="Total revenues">6,627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__country--US_zQhF61yWjLVg" style="width: 11%; text-align: right" title="Total revenues">9,615</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Canada</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__country--CA_zxxf4HTaZXWc" style="text-align: right" title="Total revenues">387</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__country--CA_zvCPjLd0w5Zi" style="text-align: right" title="Total revenues">3,734</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__country--CA_z2iJLrmLf2Tk" style="text-align: right" title="Total revenues">1,278</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__country--CA_zIDOfCSZH5o3" style="text-align: right" title="Total revenues">6,761</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">United Kingdom</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__country--GB_zNjiIq4GF2vh" style="text-align: right" title="Total revenues">2,745</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__country--GB_zmJneQxgiRFf" style="text-align: right" title="Total revenues">1,618</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__country--GB_zVkFVWjzmHT9" style="text-align: right" title="Total revenues">5,096</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__country--GB_zKf2ck8ZKswi" style="text-align: right" title="Total revenues">3,330</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_zH5wVaYkNA9c" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">40</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_z4M8y6Ek5Vtj" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">38</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_zfE5YwE1FUQ5" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">58</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630__srt--StatementGeographicalAxis__custom--OtherCountriesMember_zf38p5o0YOf6" style="border-bottom: Black 1pt solid; text-align: right" title="Total revenues">77</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260401__20260630_zU759Tin5eca" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">5,821</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250401__20250630_zK8vAUBzsCW8" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">10,279</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20260101__20260630_zMWcm5pjkQri" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">13,059</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250630_z8chi9QRYcca" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total revenues">19,783</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 2649000 4889000 6627000 9615000 387000 3734000 1278000 6761000 2745000 1618000 5096000 3330000 40000 38000 58000 77000 5821000 10279000 13059000 19783000 <table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zzoQbgHdv8k3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Segment Reporting (Details - Segment allocation)"> <tr style="vertical-align: bottom"> <td style="width: 49%"><span id="xdx_8B4_z4tHtKzr79jl" style="display: none">Schedule of segment allocations</span></td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260401__20260630_zg3QCTy4M6k" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260401__20260630_zXjlrgFpj6S7" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_494_20260401__20260630_zKB2h9oyRiEj" style="text-align: center; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30, 2026</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content<br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory <br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--Revenues_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zXGAp2Ru0Zr9" style="width: 13%; text-align: right" title="Revenue">5,373</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--Revenues_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zrB0pRDysRBf" style="width: 13%; text-align: right" title="Revenue">448</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--Revenues_pn3n3_c20260401__20260630_zw3fypq1sG3b" style="width: 13%; text-align: right" title="Revenue">5,821</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingExpensesAbstract_iB_zxQYxaioUj8i" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zKsh2ZM6iZ67" style="text-align: right" title="Selling, marketing and direct operating costs">(4,731</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zOUU2ikX7uxl" style="text-align: right" title="Selling, marketing and direct operating costs">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20260401__20260630_z1j1xFnbnYFi" style="text-align: right" title="Selling, marketing and direct operating costs">(4,774</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">General and Administrative Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zqsTbzPwrsnf" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(2,570</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zk2pywHkMMG4" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(975</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260401__20260630_z7FLEsjsC2f6" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(3,545</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zbvuO8KAB7cb" style="font-weight: bold; text-align: right" title="Segment results">(1,928</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zzIWDLAiQQG3" style="font-weight: bold; text-align: right" title="Segment results">(570</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260401__20260630_zU9Bh6iF7Xy8" style="font-weight: bold; text-align: right" title="Segment results">(2,498</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAbstract_iB_z5LvV5KW1gdd" style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--Depreciation_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_z899yoyNHYPe" style="text-align: right" title="Depreciation expense">(676</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--Depreciation_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zeRdbnCMXzxb" style="text-align: right" title="Depreciation expense">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--Depreciation_iN_pn3n3_di_c20260401__20260630_zerXqMPVnrH9" style="text-align: right" title="Depreciation expense">(719</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--InterestExpense_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zMcdpmQHHxM1" style="text-align: right" title="Interest expense">(175</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--InterestExpense_iN_pn3n3_di0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zf7YOynvhGYc" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--InterestExpense_iN_pn3n3_di_c20260401__20260630_zfNb5V588jb4" style="text-align: right" title="Interest expense">(175</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensation_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zmWtYOqhLFQ4" style="text-align: right" title="Stock based compensation">(193</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z1JIBgsDRlV4" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensation_pn3n3_c20260401__20260630_zRKRDnEwzOSl" style="text-align: right" title="Stock based compensation">(193</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal Settlement Income</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--LitigationSettlementInterest_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zOXk3sASMfD5" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LitigationSettlementInterest_pn3n3_d0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zCPpzkd8nHmf" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--LitigationSettlementInterest_pn3n3_c20260401__20260630_zXCLMyR8Zqvh" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Standstill Agreement Accrued Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zxZ0jMHvGNT7" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--StandstillAgreementAccruedExpense_pn3n3_d0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z1ZjPe1NIdzj" style="text-align: right" title="Standstill Agreement Accrued Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260401__20260630_zJaDvEZuIRt7" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income Tax Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zafPJ5qfjCLh" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zevDtQVVSpn8" style="text-align: right" title="Income Tax Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260401__20260630_zWsmeGLA4Cyk" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zR8k5Anug6Di" style="text-align: right" title="Other">(4,158</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zZ2i3yIJoea2" style="text-align: right" title="Other">27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260401__20260630_zSiQWb9vX7xa" style="text-align: right" title="Other">(4,131</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zacXAbWxMnz1" style="text-align: right" title="Net loss attributable to non-controlling interests">36</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zh8zmkFVjUZ3" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260401__20260630_zBXOHjpxsIoj" style="text-align: right" title="Net loss attributable to non-controlling interests">36</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_z1AngUKwv3da" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">27,571</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zoHSNuHV700k" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(586</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--NetIncomeLoss_pn3n3_c20260401__20260630_zx2DpID67Fr" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">26,985</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 49%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 13%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content <br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory<br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--Revenues_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zzAeoK58FGHj" style="width: 13%; text-align: right" title="Revenue">9,437</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--Revenues_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zpmdPOvEb9J4" style="width: 13%; text-align: right" title="Revenue">842</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Revenues_pn3n3_c20250401__20250630_z7qpzmgm8rcc" style="width: 13%; text-align: right" title="Revenue">10,279</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingExpensesAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zspcIaWH5f92" style="text-align: right" title="Selling, marketing and direct operating costs">(7,212</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_ze6RXS9yEvR4" style="text-align: right" title="Selling, marketing and direct operating costs">(70</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_pn3n3_c20250401__20250630_zaqE1ySobHV1" style="text-align: right" title="Selling, marketing and direct operating costs">(7,282</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">General and Administrative Expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zxy2vbh2Ojol" style="text-align: right" title="General and administrative expenses">(4,176</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_ze9gKn7XcXKj" style="text-align: right" title="General and administrative expenses">(1,252</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250401__20250630_zj7S1Z16csl7" style="text-align: right" title="General and administrative expenses">(5,428</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other Segment Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--OtherExpenses_iN_pn3n3_di0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_ztv7UXuVaWq4" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--OtherExpenses_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zIRMEHxXconl" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--OtherExpenses_iN_pn3n3_di0_c20250401__20250630_zvj3PgnWcQm2" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zf9OSvC6TAG5" style="font-weight: bold; text-align: right" title="Segment results">(1,951</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zufvDqmmCqLf" style="font-weight: bold; text-align: right" title="Segment results">(488</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250401__20250630_z7PWmbiACxB4" style="font-weight: bold; text-align: right" title="Segment results">(2,439</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--NetIncomeLossAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--Depreciation_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zjQc4v9MllWh" style="text-align: right" title="Depreciation expense">(685</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--Depreciation_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zWXecC2T7Xng" style="text-align: right" title="Depreciation expense">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--Depreciation_iN_pn3n3_di_c20250401__20250630_zAdOVi6YYQlg" style="text-align: right" title="Depreciation expense">(728</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--InterestExpense_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zNkw2XkkyeK3" style="text-align: right" title="Interest expense">(165</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--InterestExpense_iN_pn3n3_di0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zTcevUVUSmOj" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--InterestExpense_iN_pn3n3_di_c20250401__20250630_zSnZuh9gTXd5" style="text-align: right" title="Interest expense">(165</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensation_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zBOmhJ0iXhcf" style="text-align: right" title="Stock based compensation">(48</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zHdkblWiAOmf" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20250401__20250630_zUkMXEvzIBeg" style="text-align: right" title="Stock based compensation">(48</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zLN5LYZCQDah" style="text-align: right" title="Other">(2,760</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z5lZgwZa6p73" style="text-align: right" title="Other">(127</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20250401__20250630_zLNf22EvGUdk" style="text-align: right" title="Other">(2,887</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zPw3ZObkUGBl" style="text-align: right" title="Net loss attributable to non-controlling interests">104</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_ztOUr4jk5cCj" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250401__20250630_zEohgM6GUTk8" style="text-align: right" title="Net loss attributable to non-controlling interests">104</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zz6EQjn1g4d4" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(5,505</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zhe8E95jaYha" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(658</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--NetIncomeLoss_pn3n3_c20250401__20250630_zsb5wdW3PNi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(6,163</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2026</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content <br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory<br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--Revenues_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">11,812</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--Revenues_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">1,247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--Revenues_c20260101__20260630_pn3n3" style="width: 13%; text-align: right" title="Revenue">13,059</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingExpensesAbstract_iB_zCqiz2a2A58" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(9,568</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(115</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20260101__20260630_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(9,683</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">General and Administrative Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zJ59W5aM51N2" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(5,734</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z6JPQot1DT81" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(2,033</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20260101__20260630_zhTlVXqdJH34" style="border-bottom: Black 1pt solid; text-align: right" title="General and administrative expenses">(7,767</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zhzVU7nfIPQ1" style="font-weight: bold; text-align: right" title="Segment results">(3,490</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zXEDmwwdR6H5" style="font-weight: bold; text-align: right" title="Segment results">(901</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20260101__20260630_zlGQYWW07Rx1" style="font-weight: bold; text-align: right" title="Segment results">(4,391</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLossAbstract_iB_zfNsY8iKGzGe" style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--Depreciation_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zaKUXHnJ0pLe" style="text-align: right" title="Depreciation expense">(1,351</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--Depreciation_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z79xMLIEtzYh" style="text-align: right" title="Depreciation expense">(87</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--Depreciation_iN_pn3n3_di_c20260101__20260630_zbe4yUvf54h3" style="text-align: right" title="Depreciation expense">(1,438</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--InterestExpense_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zRUr6BMXArPi" style="text-align: right" title="Interest expense">(408</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--InterestExpense_iN_pn3n3_di0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zhIMfEPpKJh5" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--InterestExpense_iN_pn3n3_di_c20260101__20260630_zzo5a8Xecwq8" style="text-align: right" title="Interest expense">(408</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensation_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Stock based compensation">(384</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zh5PbvmXFs53" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensation_c20260101__20260630_pn3n3" style="text-align: right" title="Stock based compensation">(384</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal Settlement Income</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--LitigationSettlementInterest_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zpJ9xU8doyl7" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--LitigationSettlementInterest_pn3n3_d0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z3deTVnur3sh" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LitigationSettlementInterest_pn3n3_c20260101__20260630_zcHs8sXLtSKc" style="text-align: right" title="Stock based compensation">39,238</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Standstill Agreement Accrued Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zontMgcvEN7j" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--StandstillAgreementAccruedExpense_pn3n3_d0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zAhdLosj4n19" style="text-align: right" title="Standstill Agreement Accrued Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--StandstillAgreementAccruedExpense_pn3n3_c20260101__20260630_zFAU36PXDBD9" style="text-align: right" title="Standstill Agreement Accrued Expense">(4,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income Tax Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zrppqGW2v2Yf" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zcsHgNqIbnV5" style="text-align: right" title="Income Tax Expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20260101__20260630_zU3mtbzD0qug" style="text-align: right" title="Income Tax Expense">(573</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zZjz7l5g0qk2" style="text-align: right" title="Other">(7,546</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--OtherNonoperatingIncomeExpense1_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Other">46</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--OtherNonoperatingIncomeExpense1_pn3n3_c20260101__20260630_z0WScU288FR8" style="text-align: right" title="Other">(7,500</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zPeXBFdKOql3" style="text-align: right" title="Net loss attributable to non-controlling interests">76</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zEIRdnQXqGKi" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20260101__20260630_zynFV3KrAXRe" style="text-align: right" title="Net loss attributable to non-controlling interests">76</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--NetIncomeLoss_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">21,562</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--NetIncomeLoss_c20260101__20260630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(942</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_986_eus-gaap--NetIncomeLoss_c20260101__20260630_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">20,620</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Content <br/> Production and<br/> Distribution</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Media Advisory <br/> and Advertising</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; font-weight: bold">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--Revenues_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">18,074</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Revenues_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="width: 13%; text-align: right" title="Revenue">1,709</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--Revenues_c20250101__20250630_pn3n3" style="width: 13%; text-align: right" title="Revenue">19,783</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingExpensesAbstract_iB_zszPcgMv966b" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left">Less Operating Expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Selling, Marketing and Direct Operating Costs</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(14,002</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(148</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--OtherSellingGeneralAndAdministrativeExpense_c20250101__20250630_pn3n3" style="text-align: right" title="Selling, marketing and direct operating costs">(14,150</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">General and Administrative Expenses</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zMr2bqZV7oQ2" style="text-align: right" title="General and administrative expenses">(7,850</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zB5Zyi6A9C8j" style="text-align: right" title="General and administrative expenses">(2,520</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherGeneralAndAdministrativeExpense_iN_pn3n3_di_c20250101__20250630_z0Wald8lqlMb" style="text-align: right" title="General and administrative expenses">(10,370</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other Segment Expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--OtherExpenses_iN_pn3n3_di0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zOK0mD8C4bR3" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherExpenses_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_z5jbRFb6ExG2" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--OtherExpenses_iN_pn3n3_di_c20250101__20250630_z0yLI48X8TDg" style="border-bottom: Black 1pt solid; text-align: right" title="Other Segment Expenses">(8</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Segment results:</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zVQgFi9EPPjg" style="font-weight: bold; text-align: right" title="Segment results">(3,778</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zVCD4aFlXYPa" style="font-weight: bold; text-align: right" title="Segment results">(967</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--SegmentReportingOtherItemAmount_iN_pn3n3_di_c20250101__20250630_zEwj0onbVqs2" style="font-weight: bold; text-align: right" title="Segment results">(4,745</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLossAbstract_iB_zjnI3f0e4Pb8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-style: italic; text-align: left">Reconciliation of net (loss) income:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depreciation Expense</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--Depreciation_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zTW39Xn77OH8" style="text-align: right" title="Depreciation expense">(1,324</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--Depreciation_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zGklfgknLwLg" style="text-align: right" title="Depreciation expense">(90</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--Depreciation_iN_pn3n3_di_c20250101__20250630_zNeqOvjXldM5" style="text-align: right" title="Depreciation expense">(1,414</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Interest Expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--InterestExpense_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zQ5hiPlldzQ" style="text-align: right" title="Interest expense">(293</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--InterestExpense_iN_pn3n3_di0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zx0HWlSmHHy9" style="text-align: right" title="Interest expense">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--InterestExpense_iN_pn3n3_di_c20250101__20250630_zd5HBZM0csS7" style="text-align: right" title="Interest expense">(293</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-Based Compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensation_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Stock based compensation">(135</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensation_pn3n3_d0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zOFoE01CfMlj" style="text-align: right" title="Stock based compensation">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensation_c20250101__20250630_pn3n3" style="text-align: right" title="Stock based compensation">(135</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--OtherNonoperatingIncomeExpense1_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="text-align: right" title="Other">(6,170</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--OtherNonoperatingIncomeExpense1_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="text-align: right" title="Other">(101</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--OtherNonoperatingIncomeExpense1_c20250101__20250630_pn3n3" style="text-align: right" title="Other">(6,271</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net Loss Attributable to Non-Controlling Interests</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_zAxAgSvH6yKb" style="text-align: right" title="Net loss attributable to non-controlling interests">169</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di0_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_zTRqjDbixUK8" style="text-align: right" title="Net loss attributable to non-controlling interests">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_iN_pn3n3_di_c20250101__20250630_zhzaVQdNY5xh" style="text-align: right" title="Net loss attributable to non-controlling interests">169</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net Income (Loss)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--ContentProductionAndDistributionMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(11,531</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--NetIncomeLoss_c20250101__20250630__us-gaap--StatementBusinessSegmentsAxis__custom--MediaAdvisoryAndAdvertisingMember_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(1,158</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--NetIncomeLoss_c20250101__20250630_pn3n3" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net income (loss)">(12,689</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> 5373000 448000 5821000 -4731000 -43000 -4774000 2570000 975000 3545000 1928000 570000 2498000 676000 43000 719000 175000 -0 175000 -193000 0 -193000 39238000 0 39238000 -4000000 0 -4000000 573000 -0 573000 -4158000 27000 -4131000 -36000 -0 -36000 27571000 -586000 26985000 9437000 842000 10279000 -7212000 -70000 -7282000 4176000 1252000 5428000 -0 8000 8000 1951000 488000 2439000 685000 43000 728000 165000 -0 165000 -48000 0 -48000 -2760000 -127000 -2887000 -104000 -0 -104000 -5505000 -658000 -6163000 11812000 1247000 13059000 -9568000 -115000 -9683000 5734000 2033000 7767000 3490000 901000 4391000 1351000 87000 1438000 408000 -0 408000 -384000 0 -384000 39238000 0 39238000 -4000000 0 -4000000 573000 -0 573000 -7546000 46000 -7500000 -76000 -0 -76000 21562000 -942000 20620000 18074000 1709000 19783000 -14002000 -148000 -14150000 7850000 2520000 10370000 -0 8000 8000 3778000 967000 4745000 1324000 90000 1414000 293000 -0 293000 -135000 0 -135000 -6170000 -101000 -6271000 -169000 -0 -169000 -11531000 -1158000 -12689000 1900000 100000 300000 <p id="xdx_806_eus-gaap--SubsequentEventsTextBlock_zLoNZveng7X2" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 22: <span id="xdx_827_z8uG4Aa7aRP3">Subsequent Events</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Marketable Securities</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subsequent to June 30, 2026, the Company purchased marketable securities for $1.5 million, and sold marketable securities for proceeds of $2.0 million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Stockholder Rights Plan and Related Measures</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 1, 2026, the Company’s Board of Directors adopted a stockholder rights plan and related measures, as described below.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Preferred Stock Rights Agreement:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 1, 2026, the Company entered into a Preferred Stock Rights Agreement (the “Rights Agreement”) with VStock Transfer, LLC, as rights agent. In connection with the Rights Agreement, the Board of Directors declared a dividend of distribution of one right (a “Right”) for each outstanding share of our common stock, payable to stockholders of record as of the close of business on July 13, 2026. In general terms, the Rights Agreement imposes significant dilution upon any person or group (other than the Company and certain other exempt persons, that is or becomes the beneficial owner of ten percent (10%) or more of the Company’s common stock without the prior approval of the Board of Directors. Each Right entitles its registered holder, upon the occurrence of certain triggering events, to purchase from the Company one one-thousandth of a share of Series D Participating Preferred Stock at a purchase price of $3.75 per one one-thousandth of a share, subject to adjustment. The Rights become exercisable only if a person or group acquires beneficial ownership of 10% or more of our outstanding common stock without the approval of the Board of Directors, subject to certain exceptions. The Rights are redeemable by the Board of Directors at a price of $0.001 per Right at any time prior to the earlier of the time the Rights become exercisable and their final expiration, and will expire at the close of business on June 29, 2027, unless earlier redeemed or exchanged.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Certificate of Designation of Series D Participating Preferred Stock:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-size: 10pt">In connection with the Rights Agreement, the Company filed with the Secretary of State of the State of Nevada a Certificate of Designation designating 300,000 shares of our authorized preferred stock as Series D Participating Preferred Stock, par value $0.001 per share. Each one one-thousandth of a share of Series D Participating Preferred Stock (“</span>Series <b></b><span style="font-size: 10pt">D Preferred Stock”), if issued, upon the exercise of the Rights (i) will not be redeemable; (ii) will entitle holders to quarterly dividend payments, when and if declared, of $0.001 per one one-thousandth of a share of Series D Preferred Stock, or an amount equal to the dividend paid on one share of common stock, whichever is greater; (iii) will entitle holders upon liquidation either to receive $1.00 per one one-thousandth of a share of Series D Preferred Stock or an amount equal to the payment made on one share of common stock, whichever is greater; (iv) will have the same voting power as one share of common stock and will vote together with the common stock; and (v) will entitle holders to a payment per one one-thousandth of a share of Series D Preferred Stock equal to the payment made on one share of common stock if the common stock is exchanged via merger, consolidation, or a similar transaction. No shares of Series D Preferred Stock were issued or outstanding as of the date of this Report, and the designation was established solely to support the Rights Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><i>Amendments to Bylaws:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board also adopted amendments to our Bylaws that, among other things, divide the Board of Directors into two classes with staggered terms, eliminate the ability of stockholders to act by written consent, provide that special meetings of stockholders may be called only by the Board of Directors, establish advance notice procedures for stockholder nominations of directors and other stockholder proposals, require the affirmative vote of the holders of at least two-thirds of the voting power of our outstanding stock to remove a director, and designate an exclusive forum for certain legal proceedings.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The foregoing actions had no effect on the Company’s financial position, results of operations, or shares of common stock outstanding as of or for the period covered by this report. For additional information, see our Form 8-K filed on July 2, 2026, as amended by our Form 8-K/A filed on July 6, 2026, and our Form 8-A12B filed on July 2, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Disposal of a Subsidiary</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 8, 2026, the Company sold all of the issued and outstanding common stock of Frederator Networks, Inc. (“Frederator Networks”), which operated the Frederator Network channel business, to Project Robot LLC, an unaffiliated third party, pursuant to a stock purchase agreement dated June 18, 2026. Kartoon Studios will retain key intellectual property of Frederator Studios, LLC, a wholly owned subsidiary of the Company, including <i>Bee and PuppyCat, Bravest Warriors, Castlevania,</i> and <i>Catbug</i>, for distribution and product licensing opportunities. The transaction was part of the Company’s strategic realignment to focus on monetization of premium intellectual property and franchise development. Upon closing, the Company ceased to have a controlling financial interest in Frederator Networks. The base purchase price under the purchase agreement was $0.5 million in cash, subject to customary post-closing adjustments for net working capital, indebtedness, and cash and cash equivalents, on a cash-free, debt-free basis. The Company expects to recognize a loss on disposal of approximately $0.3 million (before income taxes), representing the excess of Frederator Networks’ net carrying amount over the estimated net consideration to be received. This estimate is preliminary, unaudited, and subject to change pending finalization of the post-closing working capital true-up pursuant to the purchase agreement, which is expected to be completed within 60 days of closing. Because the transaction closed after June 30, 2026, Frederator Networks’ assets, liabilities, and results of operations continue to be included in the Company’s condensed consolidated financial statements as of and for the three and six months ended June 30, 2026 on a continuing-operations basis. Frederator Networks did not meet the held-for-sale criteria of ASC 360-10-45-9 as of June 30, 2026. Management concluded that the disposition does not represent a strategic shift that has, or will have, a major effect on the Company’s operations or financial results, and accordingly, the transaction does not qualify for discontinued-operations presentation under ASC 205-20. In connection with the closing, Frederator Networks, Inc and Project Robot LLC entered into a three-year Channel Distribution Agreement with Frederator Studios, LLC. Under this arrangement, Frederator Studios, LLC, will continue to receive a declining share of net YouTube receipts (85% in year one, decreasing to 5% by year three) generated from certain retained channels through YouTube CMS infrastructure. Frederator Studios, LLC and Frederator Networks, Inc., will each retain a 50% ownership interest in the <i>Frederator</i> trademark. Management does not believe this continuing involvement affects the conclusions and estimates described above.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"> </p> false false false false