New York-based 4Kids Entertainment has released its first quarter results for the period ended March 31, 2010, marking continuing drops in its licensing and television ad revenues.

Net revenues for the three months ended March 31, 2010 totaled US$4.2 million, compared to US$9.3 million for the same period in 2009. The company’s net loss was US$3.5 million compared to a net loss of US$2 million for the same period in 2009.

4Kids’ cash loss from operations in its traditionally weak first quarter, without giving effect to the US$3.6 million tax refund it received, was US$400,000.

4Kids’ market capitalization had also slipped below the minimum US$15 million that New York Stock Exchange-listed companies are required to maintain in order to remain listed, and, as a result, the company’s shares could be delisted at any time.

The company announced that it had received a non-binding indication of interest from a third party to acquire 4Kids for a price over the recent closing prices for the company’s common stock, subject to the completion of due diligence and negotiation of agreements during a requested exclusivity period. 4Kids intends to enter into discussions with the potential buyer, but there is no assurance that any transaction will occur.

Still, 4Kids says it has a promising pipeline of new properties on the horizon, some of which will debut at next month’s Licensing Show in Las Vegas.