Llama Llama Continues Post-Production with Q4 Delivery to Netflix Anticipated
Rainbow Rangers Begins Production and Expands Global Licensing Program

BEVERLY HILLS, Calif., Aug. 14, 2017 (GLOBE NEWSWIRE) Genius Brands International, Inc. (NASDAQ:GNUS) (“Genius”) announced today its financial results for the three and six months ended June 30, 2017:

Business Highlights:

• Deferred revenue continues to increase with a total balance of $5.0 million as of June 30, 2017, representing a 62% increase over the December 31, 2016 balance and over 400% increase over the December 31, 2015 balance.
• To date nearly $4.1 million has been invested in the development and production of animated content with four animated series currently in production and development to be delivered throughout 2017 and 2018.
• Working capital increased by nearly $2.9 million from December 31, 2016 to June 30, 2017 to nearly $2.5 million.

Management Commentary:

Andy Heyward, Chairman and CEO of Genius Brands International, Inc., commented, “Today, we released our financial results for the three and six-month periods ending on June 30, 2017. The second quarter of 2017 was another foundational period for the Company as we continued the development and monetization of our brands.

"Excitement around our Rainbow Rangers property continues to grow. Augmenting our previously announced partnerships with broadcaster Nick Jr. and Fisher Price which is owned by Mattel Inc, we partnered with three additional licensees during the quarter – The Bentex Group will be our master apparel partner; H.E.R Accessories will create a line of fashion accessories; and Jay Franco will create a line of bedding. All of these products will feature the Rainbow Rangers characters.  While we cannot disclose the specific deal terms, these arrangements provide us minimum guarantees (and advances) against future royalties. Standard industries royalty rates are on average ten percent, providing the company with a share of the wholesale price of products. The minimum guarantees and advances are reflected in the growing deferred revenue balances. Subsequent to the end of the quarter, activity continues with additional licensees in more categories across the merchandising spectrum.

"Our Llama Llama production continues at a steady pace. By the end of the quarter, we have received a substantial portion of the animation for the episodes and are in the process of post-production for delivery to Netflix in the fourth quarter of the year. With the content licensed to Netflix and the previously announced partnership with NCircle for the distribution of DVDs, our merchandising program continues to grow as we added licensees in the puzzles and bedding categories. This activity is again reflected in our increasing deferred revenue balances.

"Additionally, during the quarter, we delivered the final webisodes of Season One of SpacePOP to YouTube and expanded the distribution of the content with various international licenses to broadcasters in Europe and Asia. As the content was delivered and continues to be delivered to our customers, we have and will continue to recognize top line revenues. In the second half of 2017, we plan to broaden the retail reach of SpacePOP with products available at Target, Best Buy, Barnes and Noble, Hudson News and Spirit Halloween, as well as launching a new direct-to-retail program with Calendar Club's Go! retail stores nationwide; an expanded Claire's program at additional locations; and continued support by Toys"R"Us.

"Finally, our STEM-based property Thomas Edison’s Secret Lab continues to expand its reach both domestically and internationally through a number of partnerships for both the animated content and the associated merchandise. Thomas Edison’s Secret Lab has been licensed in Latin America to National Geographic Kids with the merchandising program being handled by independent licensing agent Tycoon Enterprises across Latin America. The animated content has also been licensed to various territories in Asia with delivery anticipated for the third quarter of 2017.

"The second quarter’s results represent continued activity around each of our brands – one of the two pillars of revenue generation and value creation for the Company. As we have highlighted in the past, the value of the Company lies in two places – the brands we create, manage and monetize and the Kid Genius Cartoon Channel. The Kid Genius Cartoon Channel not only provides another avenue of distribution for our content but also has value in its own right as a distribution platform.  As we look forward to the second half of the year, we anticipate seeing continue growth for Rainbow Rangers, Llama Llama, and the rest of our brands as well as increased in the reach of our Kid Genius Cartoon Channel.”

About Genius Brands International, Inc.

Headquartered in Beverly Hills, California, Genius Brands International, Inc. (NASDAQ:GNUS) is a leading global media company developing, producing, marketing and licensing branded children’s entertainment properties and consumer products for media distribution and retail channels. Led by award-winning creators and producers, Genius Brands distributes its content worldwide in all formats, as well as a broad range of consumer products based on its characters. In the children's media sector, its portfolio features "content with a purpose" for toddlers to tweens, which provides enrichment as well as entertainment, including new preschool property Rainbow Rangers; tween music-driven brand SpacePOP; preschool property debuting on Netflix Llama Llama; award-winning Baby Genius; adventure comedy Thomas Edison's Secret Lab®, available on public broadcast stations and Genius Brands' Kid Genius channel on Comcast's Xfinity on Demand and Roku; Warren Buffett's Secret Millionaires Club, created with and starring iconic investor Warren Buffett. The Company is also co-producing an all-new adult animated series, Stan Lee's Cosmic Crusaders, with Stan Lee's Pow! Entertainment and The Hollywood Reporter. Additionally, under Genius Brands' wholly owned subsidiary, A Squared Entertainment, the company represents the third-party property Celessence Technologies across a broad range of categories in territories around the world.