Quarterly report pursuant to Section 13 or 15(d)

Stock Options

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Stock Options
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock Options Stock Options
On September 1, 2020, the Company adopted the Kartoon Studios, Inc. 2020 Incentive Plan (the “2020 Plan”) as voted by the Board of Directors. The Board of Directors approved the maximum number of shares available for issuance up to an aggregate of 3,000,000 shares of common stock, which does not include shares that the Company may issue related to acquisitions. The 2020 Plan replaced the previously adopted 2015 Incentive Plan (the “2015 Plan”) that had a total number of authorized shares of 216,767, however the remaining 57,800 outstanding shares granted under the 2015 Plan, as of March 31, 2024, remain to be governed under such plan. All expired or terminated shares granted under the 2015 Plan, that have not been vested or exercised, reverts to and again becomes available for issuance under the 2020 Plan.
During the three months ended March 31, 2024 and 2023, the Company did not grant any stock options.
The following table summarizes the Company’s option activity:
Stock Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share
Outstanding at December 31, 2023 1,183,908 5.56 $ 14.96 
Granted – – $ – 
Exercised – – $ – 
Forfeited/Cancelled (117,969) – $ 11.81 
Expired (5,800) – $ 19.90 
Outstanding at March 31, 2024 1,060,139 5.47 $ 15.28 
Unvested at March 31, 2024 90,348 4.93 $ 7.04 
Vested and exercisable at March 31, 2024 969,791 5.52 $ 16.05 
During the three months ended March 31, 2024 and 2023, the Company recognized $0.1 million and $0.4 million, respectively, in share-based compensation expense related to stock options included in General & Administrative Expense on the Company’s condensed consolidated statements of operations. The unrecognized share-based compensation expense at March 31, 2024 was $0.1 million which will be recognized through the second quarter of 2025 assuming the underlying grants are not cancelled or forfeited. The outstanding shares as of March 31, 2024 had an aggregated intrinsic value of zeroRestricted Stock Units
Restricted stock units (“RSUs”) are granted under the Company’s 2020 Plan. During the three months ended March 31, 2024 and 2023, the Company granted 95,229 and 11,070 fully vested RSUs to the Company’s board members and consultants, with a fair market value of $131,379 and $30,000, respectively.
An aggregate of 103,446 shares of common stock were issued during the three months ended March 31, 2024 as a result of RSUs vested during the current and prior periods.
The following table summarizes the Company’s RSU activity:
Restricted Stock Units Weighted-
Average Grant Date Fair Value per Share
Unvested at December 31, 2023 982,625 $ 13.42 
Granted 95,229 $ 1.38 
Vested (97,021) $ 1.61 
Forfeited – $ – 
Unvested at March 31, 2024 980,833 $ 13.42 
During the three months ended March 31, 2024 and 2023, the Company recognized $0.2 million and $0.5 million, respectively, in share-based compensation expense related to RSU awards included in General & Administrative Expense
on the Company’s condensed consolidated statements of operations. The unvested share-based compensation as of March 31, 2024 was $0.3 million which will be recognized through the fourth quarter of 2026 assuming the underlying grants are not cancelled or forfeited. The total fair value of shares vested during the three months ended March 31, 2024 was $0.2 million.