What changed in this filing

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Item 1B. Unresolved Staff Comments

2026-03-31 compared with 2025-03-31 · 25 added, 33 removed, 14 unchanged (81% of the section changed)

1 unchanged sentence

Cybersecurity

Management and Strategy

Risk Management and Strategy

Our cybersecurity measure

8 unchanged sentences

risk training to all employees at least annually.

responsibility for information security matters is shared by the Board, Chief Financial Officer (“CFO”), management team and our internal information technology (“IT”) resources.

CFO and management team oversee our cybersecurity risk management, including appropriate risk mitigation strategies, systems,

processes, and controls, and receives quarterly updates from IT and the third-party IT service provider on cybersecurity and

information security matters.

communicates with the Board periodically regarding the state of our cybersecurity risk management, current and evolving threats and

recommendations for changes.

We have also implemented a cyber incident response plan that provides a protocol to report certain incidents to the CFO with the

goal of timely assessment of such incidents, determining applicable disclosure requirements and communicating with the Board for timely

Oversight responsibility for

information security matters is shared by our Board, our Chief Financial Officer (“CFO”), our management team and our internal

IT resources.

Our CFO and management team oversee our cybersecurity risk management program, including risk mitigation strategies, systems,

processes, and controls, and receive quarterly updates from IT on cybersecurity and information security matters.

The CFO communicates

with the Board periodically regarding the state of our cybersecurity risk management, current and evolving threats and recommendations

We have also implemented a cyber incident response plan that provides a protocol to report certain incidents to the CFO with

the goal of timely assessment of such incidents, determining applicable disclosure requirements and communicating with the Board for timely

and accurate reporting of any material cybersecurity incident.

On December 13, 2024, we experienced

a cybersecurity incident involving unauthorized access to one of our management systems.

The findings indicated that the unauthorized

access incurred due to leaked credentials of an employee from our partner studio.

We assessed the incident as having immaterial impact

and this unauthorized access did not result in significant data leaks.

The jeopardized content was limited to a few in-house created assets,

specifically storyboard animatics from the pre-production stage.

The amount and type of information involved a few storyboard files related

to the production.

The nature of the leak was user-driven, which made an instant identification challenging and the leak was detected

a few days after it occurred.

We immediately dispatched our Security Incident Response Team and identified the steps to be taken to mitigate

future risks:

including the urgent need to review Two Factor Authentication protocols and enhance our security controls.

broader network is protected by industry-standard cybersecurity tools, we concluded that some of our software as a Service (SaaS) platforms

require additional security improvements.

We have decided to invest approximately an additional $0.2 million in cybersecurity enhancements

to strengthen the security of our SaaS platforms (such as review and purchase of additional licenses) and to implement additional protective

measures across our systems.

One of our top priorities is safeguarding our assets while maintaining and protecting client trust through

robust security measures and risk management practices.

We face risks from cybersecurity

threats that could have a material adverse effect on our business, results of operations, financial condition, cash flows or reputation.

We acknowledge that the risk of a cyber incident is prevalent in the current threat landscape and that a future cyber incident may occur

in the normal course business.

However, prior cybersecurity incidents have not had a material adverse effect on our business, financial

condition, results of operations, or cash flows.

We proactively seek to detect and investigate unauthorized attempts and attacks against

our IT assets, data, and services, and to prevent their occurrence and recurrence where practicable through changes or updates to internal

processes and tools and changes or updates to service delivery;

however, potential vulnerabilities to known or unknown threats will remain.

Further, there is increasing regulation regarding responses to cybersecurity incidents, including reporting to regulators, investors,

and additional stakeholders, which could subject us to additional liability and reputational harm.

As of the date of this Annual

Report, we are not aware of any material risks from cybersecurity threats, that have materially affected or are reasonably likely to materially

affect us, including our business strategy, results of operations, or financial condition.

Report on Form 10-K, we are not aware of any material risks from cybersecurity threats, that have materially affected or are reasonably

likely to materially affect us, including our business, results of operations, financial condition, cash flows or reputation.

“Risk Factors” for more information on cybersecurity risks.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1B. Unresolved Staff Comments