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

Quarterly report pursuant to Section 13 or 15(d)

12. Stock Options (Tables)

12. Stock Options (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

	Options Outstanding Number of Shares		Exercise Price per Share	Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value		Weighted Average Exercise Price per Share
Balance at December 31, 2017	1,294,045	$	2.09 - 12.00	2.99 years	$	–	$	8.14
Options Granted	170,176		$2.09	4.55 years				2.09
Options Exercised	–
Options Cancelled	57,294	$	9.00 – 12.00	3.56 years	$	–	$	10.08
Options Expired	31,670		2.80 - 6.00					4.30
Balance at September 30, 2018	1,375,257	$	2.09 - 12.00	2.50 years	$	–	$	7.39

Exercisable December 31, 2017	1,070,869	$	2.82 - 9.00	2.96 years	$	–	$	7.44
Exercisable September 30, 2018	1,039,199	$	2.82 - 9.00	2.20 years	$	–	$	7.53

Assumptions used

During the year ended December 31, 2015, the Company granted options to purchase 1,407,775 shares of Common Stock to officers, directors, employees, and consultants. These stock options generally vest between one and three years, while a portion vested upon grant. The fair value of these options was determined to be $2,402,460 using the Black-Scholes option pricing model based on the following assumptions:

Exercise Price	$2.82 - $12.00
Dividend Yield	0%
Volatility	100% - 137%
Risk-free interest rate	0.89% - 1.25%
Expected life of options	2.5 - 3.5 years

During the three months ended September 30, 2018, the Company granted options to purchase 170,176 shares of common stock to officers. These stock options generally vest between one and three years. The fair value of these options was determined to be $285,760 using the Black-Scholes option pricing model based on the following assumptions:

Exercise Price	$2.09
Dividend Yield	0%
Volatility	61% - 62%
Risk-free interest rate	2.52% - 2.57%
Expected life of options	3.5 years