Kartoon Studios To Issue 2,553,047 Shares To Continuation Capital To Settle $1,143,884 And $315,000 Debts

Kartoon Studios, Inc. (the "Company") entered into an Agreement (the "Agreement") with Continuation Capital, Inc. ("CCI") wherein the Company agreed to issue an aggregate of 2,553,047 shares of its common stock to CCI in exchange for the settlement of certain past due obligations and accounts payable of the Company (the "Subject Debts") in the aggregate amount of $1,143,884, (the "Initial Settlement Amount") and an additional amount of $315,000 (the "Additional Settlement Amount"). On April 13, 2026, the Circuit Court of the Twelfth Judicial Circuit in and for Sarasota County, Florida (the "Florida Circuit Court") entered an order approving the Agreement. The Agreement became binding upon the parties on April 20, 2026, when the NYSE American approved the issuance of the shares.