- [Narrator] So there's no easy way
to make a video like this.
Let's just start from the beginning.
In March of last year, I moved to Miami Beach
and bought a house down here with my fiance.
Shortly after, I had to take a trip to New York City,
where I ended up getting a stock tip from an Uber driver.
You know what they say,
don't take stock advice from the shoeshine boy,
but I listened anyway.
After missing out on the AMC and GME runs,
I had a bad case of the FOMOs,
I needed to get in on the action.
So I started loading up.
In the first month alone,
I bought just shy of 9,000 shares of this stock.
I was hooked.
I started selling everything,
including my Mercedes-Benz and my Rolex watch.
By the time summer hit, I had tens of thousands of shares
of this penny stock, but I needed more.
It was a hunger I could not satisfy.
I had a portfolio of blue chip stocks,
you know, high quality investments, 200 grand worth.
Well, I sold all of them in July of 2021
as soon as the Dow crossed 35,000,
I was up massively on these,
since many of them were pandemic purchases.
Well, I released a video that month,
my $100,000 penny stock investment.
If only it had ended there.
You would think that over 50,000 shares was enough.
It was at that time,
I found out about crypto loans.
With my remaining crypto holdings,
I decided to get a loan against them
to go even heavier into my penny stock investment.
I continued to average down,
buying the dip of the dip of the dippy dip dip.
By the time I realized what I had done,
it was too late.
Here I was $150,000 into this stock.
Now, I'm on the verge of the losing it all.
I can't sell my Bitcoin
because of the crypto loans and I'm out of assets.
So I'm doing what any self-respecting influencer would do
and I'm starting a GoFundMe.
Also, I have a Jeep truck for sale, if anyone is interested,
please call me.
Please someone call.
All right, guys.
So it's time for an update here
on my penny stock investment.
I was actually due to make this video
last week when earnings for Genius Brands actually came out
but it just so happened
that it was during the Bitcoin conference
down here in Miami.
So I was actually going to make the video on Friday
but then these guys invited me out on a yacht
that they rented.
Well, not even kidding here, guys.
I ended up getting completely stuck in traffic
with my fiance and missing the boat.
So while we spent three hours driving three miles in Miami,
they were out there on this yacht having a blast.
I'm a little late on this video,
so I wanted to put something funny together
to make up for it here in the intro.
To clear things up here, yes,
I do have a $150,000 penny stock investment.
And yes, I am down on it quite a bit, as you will see soon.
But I am doing fine financially
and I did not, in fact,
buy shares of this stock with any crypto loans.
There is zero margin or borrowed money involved.
Now, since a lot of you guys watching these videos
either own the stock or are curious about the journey here,
here is what we learned
during earnings for quarter four of 2021.
We're gonna be looking at three key things here,
which is revenue, the cash cow side of the business,
and then just a few business developments
that I see that could be huge catalysts in the future.
So number one, starting off looking at revenue.
Well, 2021 revenue came in at 7.9 million,
which was up 217% from the 2020 figures.
However, they also announced
shortly after their earnings here,
the closure of the acquisition of Wow Unlimited Media,
which has a lot more revenue to speak of.
The 2021 revenue for this Canadian company
came in at U.S. 64.2 million.
So effectively, this now singular entity
combined took in 72.1 million in 2021
compared to Genius Brands 2020 revenue
of just $2.48 million.
Now, by no means, guys, am I a corporate accounting expert,
so I have no idea
when that trailing revenue figure is going to update.
All I am strictly looking at here
is the combined revenue here of these two companies
that were separate in 2021
that are now effectively combined.
Moving on, let's talk about the cash cow side
of the business, which is one of the main reasons
that I invested early on.
So when I first started investing here,
Genius Brands was sitting on a pile of cash with no debt.
Since then, they have strategically deployed that cash
across numerous acquisitions or investments
to gain control of other companies.
Well, as of the end of 2021,
they had $116 million of cash and equivalents
in the bank with a total debt of just 29.4 million.
Let's now move on to the third and final component
of this earnings report that I was really excited about,
and that is business developments.
So the most major one, in my opinion,
is something we learned about
a little over a month and a half ago,
and that is the launch
of a 3.99 per month premium ad-free plan.
So Kartoon Channel! with a K
is a free ad-supported stream platform
pretty much available everywhere now,
but the ads do become annoying for routine viewers.
This 3.99 per month plan is going to remove ads
but also include access to premium content,
many of which are the shows they gained possession
or control of through these strategic acquisitions.
So by far the most popular show produced by Genius Brands
is called "Rainbow Rangers."
If that sounds familiar, you've probably seen it
on either Netflix, HBO Max, Paramount+,
or one of their other streaming partners
that are licensing this content from them.
Well, in the annual letter to shareholders,
Andy mentions that season three of this hit show
will be exclusive to Kartoon Channel! Kidaverse,
their 3.99 per month premium plan.
However, if you read the entire 10-K,
which is something that I did,
you would notice a subtle detail
in the section called content for production.
"Rainbow Rangers" season three will be launched
on April 15th, 2022,
the same day as the launch of their subscription plan.
Genius Brands was paid licensing rights
from streaming platforms
for season one and season two of the show.
This got everyone hooked.
Now, you need to move over to Kartoon Channel!
and pay 3.99 a month if you want to continue on
to season three.
Lastly, one final detail in this section, and it's
about their next big show coming up "Shaq's Garage."
There's going to be a joint marketing campaign
with shareholder Shaquille O'Neal
around the launch of the show.
Now, while the same thing did happen
with shareholder Arnold Schwarzenegger
around the launch of his show
"Stan Lee's Superhero Kindergarten,"
I would expect this to be a much bigger catalyst,
and that is simply based on the fact
that Shaq is far more relevant these days than Arnold,
especially among younger people.
So anyway, here we are.
Things are on the up and up.
However, based on the weird spot the market is at right now,
the share price is down quite a bit.
And I'll go ahead and toss my updated cost basis
on the screen here
just to be fully transparent with you guys.
And I do plan on holding onto all of these shares
until we reach at least $5 per share,
and I will keep you updated on that using the app Front,
which is basically a social investing app
that I became an investor in.
If you're curious about all of my stock trades
when they happen, check out the link for Front down below
and follow me at Scrib.
Also, be sure to connect your brokerage account
for all of that free portfolio analysis goodness
over on Front.
There's a ton of reasons why I am personally
so heavily invested in this company,
but for now, I just wanted to provide you
with an overall update surrounding earnings.
If you want to learn more
about why I am so bullish on the stock,
there is a link to my full 5,000-word due diligence report
at the top of the description over on my website,
so I would highly encourage you to check that out.
As always, make sure you do your own due diligence
and research before investing.
In the case of Genius Brands here,
this is a speculative smaller cap growth stock
and you should expect a lot of volatility
in this particular space.
Anyways, guys, thanks for tuning in
and I hope to see you next time.