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

Quarterly report pursuant to sections 13 or 15(d)

3. Accrued Liabilities

3. Accrued Liabilities	9 Months Ended
Sep. 30, 2012
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Salaries and Wages as of September 30, 2012 total $436,851 and $193,519 as of December 31, 2011. Other Accrued Liabilities, totaling $410,902 as of September 30, 2012 and $408,684 as of December 31, 2011, include a reserve for product returns, music royalty payments, financed insurance costs, commissions to outside representatives on net sales and royalty income, and amounts accrued but not yet due to studios for distributed products. The reserve for returned product represents an estimate of potential product returns in future periods and is evaluated for reasonableness each reporting period.

3. Accrued Liabilities

9 Months Ended

Sep. 30, 2012

Accrued Salaries and Wages as of September 30, 2012 total $436,851 and $193,519 as of December 31, 2011. Other Accrued Liabilities, totaling $410,902 as of September 30, 2012 and $408,684 as of December 31, 2011, include a reserve for product returns, music royalty payments, financed insurance costs, commissions to outside representatives on net sales and royalty income, and amounts accrued but not yet due to studios for distributed products. The reserve for returned product represents an estimate of potential product returns in future periods and is evaluated for reasonableness each reporting period.