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

9 Months Ended

Sep. 30, 2015

Warrants and Rights Note Disclosure [Abstract]

The Company has warrants outstanding to purchase up to 300,000 shares of our common stock at September 30, 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 nine months ended September 30, 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 September 30, 2015		300,000	$	2.00	3.88 years	$	0	$	2.00

Exercisable December 31, 2014		300,000	$	2.00	4.37 years		–	$	2.00
Exercisable September 30, 2015		300,000	$	2.00	3.88 years	$	0	$	2.00