Item 1. Business
Item 1. Business
In this report, “JAKKS,” the “Company,”
“we,” “us” and “our” refer to JAKKS Pacific, Inc. and its subsidiaries.
Company Overview
We are a leading multi-product line, multi-brand
toy company that designs, produces, markets, sells and distributes toys and related kid-targeted consumer products, inclusive of kids
indoor and outdoor furniture, costumes and various product lines in the sporting goods and home furnishings space. We focus our business
on acquiring or licensing well-recognized intellectual property (“IP”), trademarks and/or brand names, most with long product
histories (“evergreen brands”). We seek to acquire/license these evergreen brands because we believe they are less subject
to market fads or trends. We also develop proprietary products marketed under our own trademarks and brand names and have historically
acquired complementary businesses to further grow our portfolio. For accounting purposes, our products have been divided into two segments:
(i) Toys/Consumer Products and (ii) Costumes. Segment information with respect to revenues, assets and profits or losses attributable
to each segment is contained in Note 3 to the audited consolidated financial statements contained below in Item 8. Our products include:
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Action figures and accessories, including licensed characters based on the Nintendo®, Sonic the Hedgehog®, The Simpsons TM and Apex Legends® franchises and our own proprietary brands including Creepy Crawlers®;
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Toy vehicles, including Xtreme Power Dozer®, Xtreme Power Dump Truck®, XPV®, Road Champs®, Fly Wheels® and AirTitans® inflatable remote-control dinosaur;
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Dolls and accessories, including small dolls, large dolls, fashion dolls and baby dolls based on licenses, including Disney Wish®, Disney Encanto®, Disney Moana 2, Disney ILY 4EVER™, Disney Frozen®, Disney Princess® and Minnie Mouse®, and infant and pre-school toys based on TV shows like PBS’s Daniel Tiger’s Neighborhood® as well as in-house brands such as Perfectly Cute® and collectable plush Ami Amis®;
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Private label products developed exclusively for certain retail customers in various product categories;
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Foot-to-floor ride-on products, including those based on BBC’s Bluey, Fisher-Price®, Nickelodeon®, and Hasbro® licenses and inflatable play environments, tents and wagons;
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Role play, dress-up, pretend play and novelty products for boys and girls based on well-known brands and entertainment properties such as Disney Frozen® , Black & Decker® , Disney Princess®, and Disney Encanto®, as well as those based on our own proprietary brands;
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Indoor and outdoor kids’ furniture, activity trays and tables and room décor, seasonal and outdoor products, including those based on Disney® characters, Nickelodeon® and Hasbro® licenses;
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Halloween and everyday costumes for children and in some cases teens and adults based on licensed and proprietary non-licensed brands, including Super Mario Bros.®, Microsoft’s Halo®, Disney-Pixar Toy Story®, Harry Potter®, Minions®, Sesame Street®, Power Rangers®¸ Pokemon TM , Hasbro® brands, Universal’s Wicked TM and Disney Frozen®, Disney Princess® and related Halloween accessories;
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Outdoor activity toys including ReDo Skateboard Co.® and junior sports toys including Sky Ball® hyper-charged balls, SportsZone™ sport sets and Wave Hoop® toy hoops marketed under our Maui® brand; and
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Board games under the brand JAKKS Wild Games®, including Temple Raider®, K.O. Corral® and Galactic JAXX™.
We continually review the marketplace to identify
and evaluate popular and evergreen brands and product categories that we believe have the potential for growth. We endeavor to generate
growth within these lines by:
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creating innovative products under our established licenses and brand names;
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adding new items to the branded product lines that we expect will enjoy greater popularity;
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infusing innovation and technology when appropriate to make products more appealing to today’s kids; and
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expanding our international product offering either sold directly to retailers or via third-party distributors.
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Our Business Strategy
In addition to developing our own proprietary brands,
properties and marks, licensing popular IP enables us to use these high-profile marks at a lower cost than we would incur if we purchased
these marks or funded the development of comparable marks on our own. Beyond the investment profile, we have an appreciation of the challenges
and expertise required to break through the noise in a world filled with high-budget, content-centric consumer choices either based on
well-known pre-existing IP or the even higher hurdle to launch new IP in the current marketplace. By licensing IP and trademarks from
world-class brand owners and content creators, we have access to a far greater range of marks than would be available for purchase. Licensors
ultimately are responsible for the franchise management of their IP, and we by extension leverage their related investment in content
and promotion, which we hope in turn will create a robust market for our related toy, consumer products and costume product lines. Licensors
often also invest resources in engaging our largest customers directly to keep them aware of new initiatives and content to facilitate
our sell-in of product. It also helps to credibly assure licensors that we will prioritize their brands, properties and IP rather than
explicitly competing with them with a broad range of self-developed content-led offerings. We also license technology developed by unaffiliated
inventors and product developers to enhance the design, innovation and functionality of our products.
We sell our products through our in-house sales
staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug
and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores and wholesalers. Our three largest customers
are Target®, Walmart® and Amazon®, which accounted for 29.6%, 24.2% and 10.6%, respectively, of our net sales in 2024. No
other customer accounted for more than 10% of our net sales in 2024.
Our Growth Strategy
Key elements of our growth strategy include:
● Expand Core Product Lines. We manage our
existing and new brands through strategic product development initiatives, including introducing new products, modifying existing
products and extending existing product lines to maximize their longevity and expand their retail channel reach. Our marketing teams
and product designers strive to develop new products or product lines to offer added technological, aesthetic and functional
improvements to our extensive portfolio.
● Enter New Product Categories. We use our
extensive experience in the toy and other consumer product industries to evaluate products and licenses in new product categories
and to develop additional product lines. We began marketing licensed classic video games for simple plug-in use with television sets
and expanded into several related categories by infusing additional technologies such as motion gaming and through the licensing of
this category from our current licensors, such as Disney®. In recent years, we entered the skateboard space at a
retailer’s request and have since expanded into related protective gear and accessories.
● Acquire Additional Character and Product
Licenses. We have acquired the rights to use many familiar brand and character names and logos from third parties that we
use with our primary trademarks and brands. Currently, among others, we have license agreements with Nickelodeon®, Disney®,
Pixar®, Marvel®, NBC Universal®, Microsoft®, Sega®, Sony®, Netflix® and WarnerMedia®, as well as
with the licensors of many other popular characters. We also license IP from other toy companies for categories in which they do not
offer products found within our core product lines. We intend to continue to pursue new licenses from these media &
entertainment companies along with other licensors. We also intend to continue to secure additional inventions and product concepts
through our existing network of inventors and product developers.
● Expand International Sales. We believe that non-US markets: Europe, Australia, Canada, Latin America
and Asia, offer us significant growth opportunities. In 2024, our sales generated outside the United States were approximately $146.0
million, or 21.1% of total net sales. In 2020, we migrated from a distributor model to selling direct in Spain, Italy, France and Mexico.
Third-party distributors remain a core component of our international business, and we are constantly assessing how to expand our mutual
businesses. We currently utilize warehouses in the United Kingdom, the Netherlands, Italy, Belgium and Spain (the latter two opened in
2024) to support sales expansion in Europe. We also have warehouse capacity in Mexico.
● Pursue Strategic Acquisitions. We have
supplemented our internal growth with selected strategic acquisitions. Most of the product lines we market today were originally
acquired via acquisition over the past 20+ years.
● Capitalize On Our Operating Efficiencies.
We believe that our current infrastructure and operating model can accommodate growth without a proportionate increase in our
operating and administrative expenses, thereby increasing our operating margins.
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The execution of our growth strategy, however, is
subject to several risks and uncertainties and we cannot assure you that we will continue to experience growth in or maintain our present
level of net sales (see “Risk Factors,” in Item 1A). For example, our growth strategy will place additional demands upon our
management, operational capacity and financial resources and systems. The increased demand upon management may necessitate our recruitment
and retention of additional qualified management personnel. We cannot assure you that we will be able to recruit and retain qualified
personnel or expand and manage our operations effectively and profitably. To effectively manage future growth, we must continue to expand
our operational, financial and management information systems and to train, motivate and manage our workforce. While we believe that our
operational, financial and management information systems will be adequate to support our future growth, no assurance can be given they
will be adequate without significant investment in our infrastructure. Failure to expand our operational, financial and management information
systems or to train, motivate, manage and retain employees could have a material adverse effect on our business, financial condition and
results of operations.
Moreover, implementation of our growth strategy
is subject to risks beyond our control, including: competition; market acceptance of new products; changes in economic conditions; changes
in the media & entertainment landscape disrupting the traditional model of capturing consumer attention for new entertainment-led
offerings; our ability to obtain or renew licenses on commercially reasonable terms; and our ability to finance increased levels of accounts
receivable and inventory necessary to support our sales growth, if any.
Furthermore, we cannot assure you that we can identify
attractive acquisition candidates or negotiate acceptable acquisition terms, and our failure to do so may adversely affect the results
of our operations and our ability to sustain growth.
Finally, our acquisition strategy involves a number
of risks, each of which could adversely affect our operating results, including difficulties in integrating acquired businesses or product
lines, assimilating new facilities and personnel and harmonizing diverse business strategies and methods of operation, diversion of management
attention from operation of our existing business, loss of key personnel from acquired companies, and failure of an acquired business
to achieve targeted financial results.
Industry Overview
According to Toy Association, Inc., the leading
toy industry trade group, the United States is the world’s largest toy market, followed by China, Japan and Western Europe. Total
retail sales of toys, excluding video games, in the United States, were approximately $28.3 billion in 2024. We believe the two largest
United States toy companies, Hasbro® and Mattel®, along with The LEGO Group (headquartered in Denmark), collectively hold a dominant
share of the U.S. toy market. In addition, hundreds of smaller companies compete in the design and development of new toys, the procurement
of character and product licenses, and the improvement, expansion and re-introduction of previously established products and product lines.
Over the decades, the toy industry has experienced
substantial consolidation among both toy companies and toy retailers. We believe that the ongoing consolidation of toy companies provides
us with increased growth opportunities due to retailers’ desire to not be entirely dependent upon a few dominant toy companies.
Retailer concentration also enables us to ship products, manage account relationships and track point of sale information more effectively
and efficiently.
Products
We focus our business on acquiring or licensing
well-recognized properties, trademarks and/or brand names, and we seek to acquire evergreen brands which are less subject to market fads
or trends. Generally, our license agreements for products and concepts call for royalties ranging from 1% to 25% of net sales, and some
may require minimum royalty guarantees and up-front or advanced royalty payments against those guarantees. Our principal products are
highlighted above in our Company Overview.
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Sales, Marketing and Distribution
We sell all our products through our own in-house
sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores,
drug and grocery store chains, club stores, dollar stores, toy specialty stores and wholesalers. Our three largest customers are Target®,
Walmart® and Amazon®, which accounted for 29.6%, 24.2% and 10.6%, respectively, of our net sales in 2024. No other customer accounted
for more than 10% of our net sales in 2024. In 2023, our three largest customers, Target®, Walmart® and Amazon®, accounted
for 30.3%, 20.8% and 10.5%, respectively, of our net sales. No other customer accounted for more than 10% of our net sales in 2023. We
generally sell products to our customers on open account with payment terms typically varying from 30 to 90 days or, in some cases, pursuant
to letters of credit. For sales outside of the United States, we may also purchase credit insurance to mitigate the risk, if any, of non-payment.
From time to time, we allow our customers credits against future purchases from us in order to facilitate their retail markdown and sales
of slow-moving inventory. We also sell our products through e-commerce sites, including Walmart.com, Target.com and Amazon.com.
We contract the manufacture of most of our products
to unaffiliated manufacturers located in The People’s Republic of China (“China”). We sell the finished products to
our customers, many of whom take title to the goods in China. These methods allow us to reduce certain operating costs and working capital
requirements. We also contract the manufacture of certain products from Hong Kong Meisheng Cultural Company Limited (“Meisheng”),
which involved payments to Meisheng of approximately $98.4 million and $75.7 million for the years ended December 31, 2024 and 2023, respectively.
As of December 31, 2024, Meisheng owns 4.8% of our outstanding common stock and until our 2024 annual meeting a designee of Meisheng was
a member of our board of directors. A portion of our sales originate in the United States, so we hold certain inventory in a US warehouse
and fulfillment facility. To date, a majority of all our sales has been to customers based in the United States. We intend to continue
trying to expand distribution of our products into foreign territories and, accordingly, we have:
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engaged representatives to oversee sales in certain foreign territories;
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engaged distributors in certain foreign territories;
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established direct relationships with retailers in certain foreign territories;
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opened sales offices in Canada, Europe and Mexico;
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opened distribution centers in the UK, the Netherlands, Italy, Belgium, Spain and Mexico.
Outside of the United States, we currently sell
our products primarily in Europe, Australia, Canada, Latin America and Asia. Sales of our products abroad accounted for approximately
$146.0 million, or 21.1% of our net sales in 2024 and approximately $153.7 million, or 21.6% of our net sales in 2023. We believe that
foreign markets present an attractive opportunity, and we plan to intensify our marketing efforts and further expand our distribution
channels abroad.
We establish reserves for allowances provided to
our customers, including discounts, pricing concessions, promotional allowances and allowances for anticipated breakage or defective product,
at the time of shipment. The reserves are determined as a percentage of sales based upon either historical experience or upon estimates
or programs agreed upon with our customers.
We obtain, directly, or through our sales representatives,
orders for our products from our customers and arrange for the manufacture of these products as discussed below. Cancellations generally
are made in writing, and we take appropriate steps to notify our manufacturers of these cancellations. We may incur costs or other losses
because of cancellations.
We maintain a full-time sales and marketing staff,
many of whom make on-site visits to customers for the purpose of showing products and soliciting orders for products. We also retain a
number of independent sales representatives to sell and promote our products, both domestically and internationally. Together with retailers,
we occasionally test the consumer acceptance of new products in selected markets before committing resources to large-scale production.
We publicize and advertise our products online and
on mobile devices, in trade and consumer magazines and other publications, market our products at international, national and regional
toy and other specialty trade shows, conventions and exhibitions and carry on cooperative advertising programs with toy and mass market
retailers and other customers which include the use of print, online, mobile and television ads and via in-store displays. We also produce
and broadcast television commercials for several of our product lines, if we expect that the resulting increase in our net sales will
justify the relatively high cost of television/media advertising.
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Product Development
Each of our product lines has an in-house lead responsible for product
development. The in-house lead identifies and evaluates inventor products and concepts and other opportunities to enhance or expand existing
product lines or to enter new product categories. In addition, we create proprietary products to fully exploit our concept and character
licenses. Although we have the capability to create and develop products from inception to production, we also use third-parties to provide
a portion of the sculpting, sample making, illustration and package design required for our products to accommodate our increasing product
innovations and introductions as well as accelerate our speed-to-market. Typically, the development process takes from nine to eighteen
months from concept to production and shipment to our customers, but given our Company’s size and structure, we have demonstrated
the ability to shrink that down to three to nine months successfully when the opportunity requires.
We employ a staff of product designers. We occasionally
acquire other product concepts from unaffiliated third-parties. If we accept and develop a third-party’s concept for new toys, we
generally pay a royalty on the sale of the toys developed from this concept, and may, on an individual basis, guarantee a minimum royalty.
Royalties payable to inventors and developers generally range from 1% to 5% of the wholesale sales price for each unit of a product sold
by us. We believe that utilizing experienced third-party inventors gives us access to a wide range of development talent. We currently
work with numerous toy inventors and designers for the development of new products and the enhancement of existing products.
Safety testing of our products is done at the manufacturers’
facilities by quality control personnel employed by us or by independent third-party contractors engaged by us. Safety testing is designed
to meet or exceed regulations imposed by federal and state, as well as applicable international governmental authorities, our retail partners,
licensors and the Toy Association. We also closely monitor quality assurance procedures for our products for safety purposes. In addition,
independent laboratories engaged by some of our larger customers and licensors test certain of our products.
Manufacturing and Supplies
Our products are currently produced by overseas
third-party manufacturers, which we choose on the basis of quality, flexibility, reliability and price. Consistent with industry practice,
the use of third-party manufacturers enables us to avoid incurring fixed manufacturing costs, while maximizing flexibility, capacity and
the latest production technology. Substantially all of the manufacturing services performed overseas for us are paid for on open account
with the manufacturers. To date, we have not experienced any material delays in the delivery of our products from our manufacturers; however,
delivery schedules are subject to various factors beyond our control, and any delays in the future could adversely affect our sales. The
COVID-19 pandemic created some short-term delays as manufacturing capacity both dropped during the peak of the outbreak and then
again was stretched when consumer demand for different categories of products spiked because of the unprecedented level of households
operating under confined-to-home/social distancing guidelines. The lingering impact of the pandemic has created volatility in costs associated
with the sourcing and importation of products, in particular due to changes in factor inputs (labor, oil) and market demand for services
(transport). In addition, our third-party manufacturers have seen increases in foreign exchange rate exposure during this time. Currently,
we have ongoing relationships with over 50 different manufacturers. We believe that alternative sources of supply are available to us
although we cannot be assured that we can obtain adequate supplies of manufactured products on short notice in a cost neutral manner.
We may also incur costs or other losses as a result of not placing orders consistent with our forecasts for products to be manufactured
by our suppliers or manufacturers for a variety of reasons including customer order cancellations or a decline in demand.
Although we do not conduct the day-to-day manufacturing
of our products, we are extensively involved in the design of product prototypes and production tools, dies and molds for our products
and we seek to ensure quality control by actively reviewing the production process and testing the products produced by our manufacturers.
We employ quality control inspectors who rotate among our manufacturers’ factories to monitor the production of substantially all
our products. Some of our customers might also conduct their own product quality testing.
The principal raw materials used in the production
and sale of our toy products are plastics, zinc alloy, plush, printed fabrics, paper products and electronic components, all of which
are currently available at reasonable prices from a variety of sources. Although we do not directly manufacture our products, we own the
majority of the tools, dies and molds used in the manufacturing process, and these are transferable among manufacturers if we choose to
employ alternative manufacturers. Tools, dies and molds represent a substantial portion of our property and equipment with a net book
value of $13.5 million and $13.7 million as of December 31, 2024, and 2023, respectively. Substantially all of these assets are located
in China.
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Patents, Trademarks, Copyrights and Licenses
We routinely pursue protection of our products through
some form or combination of intellectual property right(s). We file patent applications where appropriate to protect our innovations arising
from new development and design, and as a result, possess a portfolio of issued patents in the U.S. and abroad. Most of our products are
produced and sold under trademarks owned by or licensed to us. In recent years, our rate of filing new trademark applications has increased.
We also register certain aspects of some of our products with the U.S. Copyright Office. In the same vein, we enforce our rights against
infringers because we recognize our intellectual property rights are significant assets that contribute to our success. Accordingly, while
we believe we are sufficiently protected and the duration of our rights are aligned with the lifecycle of our products, the loss of some
of these rights could have an adverse effect on our financial growth expectations and business operations.
Competition
Competition in the toy industry is intense. Globally,
certain of our competitors have greater financial resources, larger sales and marketing and product development departments, stronger
name recognition, wholly-owned brands and properties with high consumer awareness and appeal, longer operating histories and benefit from
greater economies of scale. These factors, among others, may enable our competitors to market their products at lower prices or on terms
more advantageous to customers than those we could offer for our competitive products. Competition often extends to the procurement of
entertainment and product licenses, as well as the marketing and distribution of products and the obtaining of adequate shelf space. Competition
may result in price reductions, reduced gross margins and loss of market share, any of which could have a material adverse effect on our
business, financial condition and results of operations. In many of our product lines we compete directly against one or both of two of
the toy industry’s most dominant companies, Mattel® and Hasbro®. In addition, we compete in our Halloween costume lines
with Rubies II®. We also compete with numerous smaller domestic and foreign toy manufacturers, importers and marketers in each of our product
categories.
Seasonality and Backlog
In 2024, 68.0% of our net sales were made in the
second and third quarters. Generally, the first quarter is the period of lowest shipments and sales in our business and in the toy industry
and therefore it is also the least profitable quarter due to various fixed costs. Seasonality factors cause our operating results to fluctuate
significantly from quarter to quarter. However, our outdoor/seasonal products are primarily sold in the spring and summer seasons, and
our year-round costume business does ship most of its volume focused on consumer sales taking place just before Halloween at the end of
October. Our results of operations may also fluctuate because of factors such as the timing of new products (and related expenses) introduced
by us or our competitors, the theatrical/entertainment-led releases of licensed brands, the advertising activities of our competitors,
delivery schedules set by our customers and the emergence of new market entrants. We believe, however, that the low retail price of most
of our products may be less subject to seasonal fluctuations than higher-priced toy products.
We ship products in accordance with delivery schedules
specified by our customers, who generally request delivery of products within three to six months of the date of their orders for orders
shipped FOB China or Hong Kong and within three days for orders shipped domestically (i.e., from one of our warehouses). Because customer
orders may be canceled at any time, often without penalty, our backlog may not accurately indicate sales for any future period.
In 2022 and 2021, a number of factors partially
attributable to the COVID-19 pandemic created significant bottlenecks and supply-demand imbalances in exporting product out of Asia into
the United States and Europe. These factors increased the cost of ocean freight and the cost of trucking while incurring higher expenses
and penalties from product being stuck at the port awaiting inbound trucking pickup. The unpredictability of delivery times further resulted
in higher warehouse handling costs as container arrival timelines proved less predictable sometimes requiring overtime labor and expansion
of the short-term labor pool to cope with above-average arriving volumes. Specifically, in 2022, companies and retailers responded to
the ocean freight crisis by shifting more of their importation of product to the first half of the year. These efforts created more volatility
in accurately forecasting market demand. In areas where consumer demand subsequently cooled, a backlog of inventory accumulated both at
retailers and in manufacturer distribution centers. These excesses in turn generated incremental costs as inventory levels exceeded normal
capacity levels, and temporary price reductions were utilized to accelerate consumer demand. Finally, the longer delivery time resulted
in a slower cash conversion cycle for us as the net impact was a longer holding period for finished goods inventory between manufacture
and sale to customer.
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Government and Industry Regulation
Our products are subject to the provisions of the Consumer Product
Safety Act (“CPSA”) as amended by the Consumer Product Safety Improvement Act (“CPSIA”), the Federal Hazardous
Substances Act (“FHSA”), the Flammable Fabrics Act (“FFA”) and regulations promulgated thereunder. Additionally,
our products may be subject to various other regulations in the United States, European Union, and other jurisdictions. The CPSIA, FHSA,
and FFA are administered by the United States Consumer Products Safety Commission (“CPSC”) which requires independent third-party
testing by accredited laboratories of products we sell in the United States. Failure to comply with such requirements can result in the
CPSC banning such products. The CPSC also may require the recall to repair and/or repurchase by the manufacturer of articles that
it deems noncompliant. Similar laws exist in some states and cities and in various international markets. We maintain a quality control
program designed to reasonably ensure compliance with all applicable laws.
Human Capital
Our success comes from recruiting, retaining and
motivating talented individuals around the world. JAKKS Pacific, Inc. continuously strives to create a safe, healthy, productive and harmonious
work environment.
As of December 31, 2024, we had approximately 680
employees (including temporary and seasonal employees) working in over 10 countries worldwide to create innovative products and experiences
that inspire, entertain, and develop children through play, with approximately 320 employees (47% of the total workforce) located outside
the U.S.
Employee Engagement
One of our main focuses is employee retention. We empower our management
to identify top performers and mentor them. We encourage all employees to take advantage of in-house and external training programs and
continuing education. Our Human Resources department has an open-door policy that encourages employees to seek career advancement advice.
We hold various events and workshops throughout the year and employees are encouraged to voice any concerns and/or to bring forth their
ideas and suggestions.
Culture and Environment
We are dedicated to developing and maintaining a
workplace culture that celebrates and values the unique contributions of every individual.
Our organization’s ethos is significantly
shaped by the collective blend of distinct perspectives, life journeys, expertise, creativity, innovative thinking, self-expression, exceptional
skills, and talents that our team members bring to their roles.
We wholeheartedly welcome and encourage the rich
tapestry of differences among our employees. This includes, but is not limited to, variations in age, skin tone, physical and cognitive
abilities, ethnic background, family composition, gender identity or expression, linguistic heritage, national origin, political views,
racial identity, religious beliefs, sexual orientation, socio-economic background, military service history, and other personal characteristics.
Our initiatives to promote a varied and representative
workforce encompass a wide range of practices and policies. These include, but are not limited to, our approaches to recruitment and hiring,
compensation packages and benefits, professional growth opportunities and training programs, as well as our processes for internal promotions
and transfers.
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Training and Development
We take pride in offering the opportunity for employees
to continuously learn and to grow their careers. Annually, employees are offered various types of training and the opportunity to continue
their education. This includes both online and instructor-led training covering a variety of topics ranging from career-related, to federally-
and locally-mandated, to JAKKS Pacific, Inc. Company policy, to financial services and health/wellness-related. Nearly all employees take
advantage of some if not all of these optional learning opportunities.
Health and Safety
We are committed to providing a safe, healthy and
productive working environment for all of our employees globally.
Environmental Issues
We may be subject to legal and financial obligations
under environmental, health and safety laws in the United States and in other jurisdictions where we operate. We are not currently aware
of any material environmental liabilities associated with any of our operations.
Available Information
We make available free of charge on or through our
Internet website, www.jakks.com, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments
to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable
after we electronically file such material with, or furnish it to, the SEC. In addition, we have previously filed registration statements
and other documents with the SEC. Any document we file may be inspected without charge at the SEC’s website at www.sec.gov. (These
website addresses are not intended to function as hyperlinks, and the information contained in our website and in the SEC’s website
is not intended to be a part of this filing.)
Our Corporate Information
We were formed as a Delaware corporation in 1995.
Our principal executive offices are located at 2951 28th Street, Santa Monica, California 90405. Our telephone number is (424) 268-9444
and our Internet Website address is www.jakks.com. The contents of our website are not incorporated in or deemed to be a part of this
Annual Report on Form 10-K.
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