Kartoon Studios, Inc. Annual report pursuant to section 13 and 15(d)

Annual report pursuant to section 13 and 15(d)

11. Warrants (Tables)

11. Warrants (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of assumption for valuation of warrants

Risk-free interest rate			.72%
Expected life in years			4.49
Dividend yield			0
Expected volatility			70.28%

Schedule Of Stockholders Equity Warrants

	Number of Warrants		Exercise Price per Share		Weighted Average Exercise Price per Share

Balance at December 31, 2010		471,108	$	0.40	$	0.40
Warrants Granted		–		–		–
Warrants Exercised		–		–		–
Warrants Expired		–		–		–
Balance at December 31, 2011		471,108		0.40		0.40
Warrants Granted		5,380,952		0.33		0.33
Warrants Exercised		–		–		–
Warrants Expired		–		–		–
Balance at December 31, 2012		5,852,060	$	0.33 - 0.40	$	0.34

Exercisable at December 31, 2012		5,852,060	$	0.33 - 0.40	$	0.34

Schedule Of Outstanding Warrants

Number of Warrants Outstanding at December 31, 2012		Number of Warrants Exercisable at December 31, 2012		Expiration Date		Exercise Price

	471,108		471,108		2013	$	0.40
	5,380,952		5,380,952		2017		0.33

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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