Loony Labs is a top-secret toon science group. They created the Silly Meter, the Green toon effect, and Street M.A.P.S. They also made the designs on the walls of Toon Headquarters, and the automatic banana peeler in the closed room in Toon HQ.
There are only four known scientists of Loony Labs, being Professor Prepostera, Doctor Surlee, Doctor Dimm and Professor Flake. It's possible that the Loony Labs building is in an inaccessible area near the tunnel leading to Sellbot Headquarters.