4Kids Entertainment has reported its financial results for the fourth quarter and year ending December 31st 2010.
Net revenues for the three months ending December 31st 2010 totaled $4.8 million, compared to $16.2 million for the same period in 2009. The company's net loss for the three months was $7.4 million, compared to $21.3 million in 2009.
Meanwhile, for the full year, 4Kids reported net revenues of $14.5 million, compared to $34.2 million for the same period in 2009. The net loss stood at $27.2 million.
As of December 31st 2010, 4Kids had $4.2 million in cash and $7.1 million in investment securities at their fair market value.
In addition, the company says it will "vigorously oppose" the attempted termination of its Yu-Gi-Oh agreement and audit claims made by Asatsu-DK and TV Tokyo Corporation.
The licensors want to terminate the agreement dated July 1st 2008 due to alleged breaches of the agreement by 4Kids - although the letter did not comply with the ten business day notice and cure provision in the Yu-Gi-Oh agreement.
On March 24th, the licensors filed a lawsuit against 4Kids also claiming that it had breached the agreement for failing to pay the licensors approximately $4.7 million with regard to certain audit claims asserted by them.
"The company believes that the claims made by ADK in its lawsuit are baseless and its attempt to terminate the agreement invalid," said Michael Goldstein, interim chairman of the board of 4Kids Entertainment. "4Kids will vigorously oppose the attempted termination of the Yu-Gi-Oh agreement and the audit claims.
"If the matter is not settled, 4Kids will, regretfully, be seeking to recover the full measure of damages from licensors for wrongfully terminating the Yu-Gi-Oh agreement and causing significant injury to the business of 4Kids."