Boca Raton, FL, January, 13, 2021 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Grom Social Enterprises, Inc. (OTCQB: GRMM) (Grom the “Company”, “we”, “us”, or “our”), the developer of Grom Social, a leading social media platform for kids and original children’s entertainment content provider, today announced that its wholly-owned subsidiary, Top Draw Animation, and its ability to transition from a studio-based model to a home-based model in a 48 hour period, allowed the company to continue production on then ongoing projects resulting in a minimum impact on revenue during the initial COVID months. Total revenue for 2021 from Grom’s animation subsidiary stands at $6.5 million, and places it close to the $7.0 million pre-COVID booked business going into 2020 and well ahead of the same period in 2019. Unused capacity remains for the second half of the year, which the Company expects to fulfill with the renewal of existing projects/series, as well as new projects that have already undergone successful testing valued in excess of $2.5 million. Due to confidentiality, the partners and project names cannot be disclosed.
“This significantly allows Grom to get back to pre-COVID production levels and overall revenue projections for 2021, following delays of up to 9 months by major studio clients” said Darren Marks, Chairman and Chief Executive Officer of Grom Social Enterprises, “and is testament to the quality and reliability of all our platforms and to the success of our universal strategies in the kids space.”
Marks continued, “The overall strength of our subsidiaries continues to provide a meaningful revenue base with attractive gross margins as we begin to market our exciting COPPA-compliant kids app, Grom Social, that offers solutions to many of today’s on-line issues plaguing Facebook, Snapchat and TikTok, among others. Given these challenges, we believe there is a significant opportunity to accelerate our user growth and efficiently monetize the platform in the near-term, while ultimately, driving long-term, sustainable value for our shareholders.”
About Top Draw Animation, Inc.
TDA is an award-winning producer of top-quality 2D animation for television markets around the world and for leading companies such as Disney Television Animation, DreamWorks Television and Nickelodeon. The company employs over 500 artists in its 30,000 square foot, state-of-the-art studio in Manila, the Philippines and has accumulated an impressive portfolio of TV animation totaling more than 2,000 half hours. For more information please visit our website at www.topdrawanimation.com
About Grom Social Enterprises, Inc.
Grom Social Enterprises, Inc. (OTCQB: GRMM) is a leading social media platform and original content provider of entertainment for children under 13 years of age; providing safe and secure digital environments for kids that can be monitored by their parents or guardians. The Company has several operating subsidiaries, including Grom Social, which delivers its content through mobile and desktop environments (web portal and apps) that entertain children, let them interact with friends, access relevant news, and play proprietary games, while teaching them about being a good digital citizen. The Company owns and operates Top Draw Animation, Inc., which produces award-winning animation content for some of the largest international media companies in the world. Grom Social Enterprises also includes Grom Educational Services, which has provided web filtering services for K-12 schools, government and private business. For more information, please visit gromsocial.com.
Safe Harbor Statement
This press release may contain forward-looking statements about Grom Social Enterprises activities that are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods, and other risks set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors. Among other matters, the Company may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to general stock market conditions. We have incurred and will continue to incur significant expenses in the expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long-term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time. All forward-looking statements speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements or other information contained herein. Stockholders and potential investors should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in or suggested by the forward-looking statements in this report are reasonable, we cannot assure stockholders and potential investors that these plans, intentions or expectations will be achieved. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.
Investor Relations Contact:
TraDigital IR Kevin McGrath