In the ever-evolving landscape of the Animation, Visual Effects, Gaming, and Comics (AVGC) industry, we stand at a pivotal moment. While challenges loom large on the horizon, presenting hurdles to our progress and growth, we must not falter in our resolve. As someone who has led this company for over two decades, I can attest to our resilience and strength as a team, evident in our past successes.

Undeniably, we face headwinds from multiple fronts, including economic downturns in major global economies, shifts in traditional TV consumption patterns, and disruptions in the EdTech sector. The recent SAG-AFTRA and WGA strikes have only compounded these challenges, leading to cost pressures and a slowdown in content production. However, despite these obstacles, we must not lose sight of the opportunities ahead.

Our industry is in flux, with audiences increasingly turning to new platforms and mediums for entertainment. The days of linear TV dominance are waning, replaced by a landscape where digital platforms, social media, gaming, and immersive experiences reign supreme. As a company with a rich history spanning a quarter of a century, we are well-positioned to navigate these shifting tides.

But let us not be complacent. We must recognize that no company is immune to the winds of change. The recent layoffs in the media and entertainment sector are a stark reminder of our challenges. However, in times of adversity, our greatest asset is our ability to adapt and innovate.

During our recent Townhall discussions, I emphasized the importance of embracing change without fear or hesitation. It is only by confronting challenges head-on that we can emerge stronger and more resilient. As Toonzians, we must rally together with renewed determination and perseverance, understanding that our collective ability to weather these storms will define not only our success as a company but also our legacy in the industry.

Let us harness the power of innovation and creativity to forge a bold, inclusive, and resilient path forward. By embracing change and rising to meet the challenges before us, we can usher in a new era of growth and prosperity for our company and industry.

Together, let us chart a course towards a brighter future—one filled with endless possibilities and untapped potential. The journey ahead may be fraught with challenges, but with courage, determination, and unwavering resolve, there is no limit to what we can achieve. I am confident that we will not only overcome these challenges but also emerge stronger and more innovative than ever before.