Dear shareholders,

In the first quarter of 2010, our revenue decreased from the comparable period in 2009 due to lower licensing revenue and reduced television advertising revenue. Although first quarter 2010 Yu-Gi-Oh! revenues were essentially flat, the Company received reduced licensing revenues from several properties formerly represented by the Company

Our first quarter results benefited from the cost cutting measures we put into place over the past year, with SG&A down 41%. Although our reported loss was $3.5 million, our cash loss from operations in our traditionally weak first quarter without giving effect to the $3.6 million tax refund we received, was $400,000

Although 4Kids is a smaller, more streamlined company, we continue to have the necessary skills, experience and liquidity to promote our current properties, invest in new properties and generally rebuild the business. We believe that we have a promising pipeline of new properties, some of which will debut at next month’s Licensing Show in Las Vegas. With the dramatic reductions to our cost structure, we can become profitable if any of our new properties gain traction.

We appreciate your commitment, support, and confidence.

-Alfred R. Kahn, Chairman & Chief Executive Officer, 4Kids Entertainment

Dear Francis,

You are not alone. The decline in our advertising revenue from The CW4Kids television block over the past fiscal year suggests children are bored by our programming. In my 23 years with this company, I have developed an intuitive understanding of what kids like. Kids don’t like to be bored, and nothing bores them more than reading.

In our society, reading has become a substitute for parenting, telling children what they can and can’t do. Kids shouldn’t have to read a sign that tells them where the nearest bathroom is: they have the right to go to the bathroom wherever they want. No amount of meaningless words can convince them otherwise.

“Japanimation” lacks this problem. The written language of the Japanimese appears as nothing but graffiti to American children. Our programming is the only part of a child’s life that doesn’t force them to read, so we will naturally with hold their attention longer than teachers, social workers and our competitors. This promotes long term dedicated viewership, and long term commercial contracts.

We are making significant changes to our programming to better satisfy this criteria. Look forward to the exciting new changes this Fall.

-Al

Dear Gary,

Despite your abrupt departure from our company, it was a pleasure working with you all these years. It was regrettable that your cheerleader squad was not able to follow you to TAJ Productions, but they were contracted to us for several more projects. Just between you and me, it seemed a bit personal as well. Rumor around the set was that your “morning wood” didn’t live up to your family’s “hard as Oak” standards.

I was pleased to hear you obtained a degree in Pokemonology, but I caution you it’s not all about handing out starter Pokemon and studying Gardevoir gynecology. It is a fiercely competitive field, a Pokemon League of its own. If you’re not careful, you might end up as a background character.

Best wishes,

-Al

Bacchus Posted:

Emo **** bum believes it when mommy says he’s super.

i hate to be the voice of reason, but dont emos usually dislike and distrust their parents?

I never liked One Piece anyway.

­

Here is a pictre of me my clbum is CAMWHORE Log in to see images!

Fie Posted:

Here is a pictre of me my clbum is CAMWHORE Log in to see images!

That mustache made my FemTwat™ moist. Log in to see images!

Fie Posted:

Here is a pictre of me my clbum is CAMWHORE Log in to see images!

mammary glands or gtfo

Professor Commie PhD Posted:

i am trollang Log in to see images!

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