Pencil work + Photoshop edits. They're pirates or bandits or... or something like it. I'm not quite sure myself. Sailing on a 5-by-5 foot raft! Sonic is the only one who seems to not be having a good time! When I finalized Knuckles' design (his hat is the exact one seen in that really old Sonic anime movie), the word "'MURICA" came to mind. Lol!
There may be another update tomorrow or the day after. Enjoy!