Kartoon Studios, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

14. Warrants

14. Warrants

3 Months Ended

Mar. 31, 2015

Warrants and Rights Note Disclosure [Abstract]

The Company has warrants outstanding to purchase up to 300,000 shares of our common stock at March 31, 2015 and December 31, 2014.

In connection with the sale of the Company’s newly designated Series A Convertible Preferred Stock in May 2014, Chardan Capital Markets LLC (“Chardan”) acted as sole placement agent in consideration for which Chardan received a cash fee of $535,000 and a warrant to purchase up to 300,000 shares of the Company’s common stock. These warrants vested immediately, have an exercise price of $2.00 per share, and have a five year term.

The following schedule summarizes the changes in the Company’s outstanding warrants during the three months ended March 31, 2015:

	Warrants Outstanding		Exercise		Weighted Average Remaining	Aggregate		Weighted Average Exercise
	Number of		Price		Contractual	Intrinsic		Price
	Shares		per Share		Life	Value		per Share

Balance at December 31, 2014		300,000	$	2.00	4.37 years		–	$	2.00
Warrants Granted		–
Warrants Exercised		–
Warrants Expired		–
Balance at March 31, 2015		300,000	$	2.00	4.13 years	$	240,000	$	2.00

Exercisable December 31, 2014		300,000	$	2.00	4.37 years		–	$	2.00
Exercisable March 31, 2015		300,000	$	2.00	4.13 years	$	240,000	$	2.00

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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