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

Annual report pursuant to section 13 and 15(d)

Note 10: Warrants

Note 10: Warrants

12 Months Ended

Dec. 31, 2011

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Note 10: Warrants

In connection with the sale of shares of its common stock in 2010 the Company issued warrants to purchase a total of 471,108 shares of its common stock at $0.40 per share exercisable for a three-year period.

The following schedule summarizes the changes in the Company’s warrants during 2010 and 2011:

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

Balance at December 31, 2009		-	$	-	$	-
Warrants Granted		471,108		0.40		0.40
Warrants Exercised		-		-		-
Warrants Expired		-		-		-
Balance at December 31, 2010		471,108		0.40		0.40
Warrants Granted		-		0.40		0.40
Warrants Exercised		-		-		-
Warrants Expired		-		-		-
Balance at December 31, 2011		471,108	$	0.40	$	0.40

Exercisable December 31, 2011		471,108	$	0.40	$	0.40

The following schedule summarizes the outstanding warrants at December 31, 2011:

Number of Warrants Outstanding at December 31, 2011	Number of Warrants Exercisable at December 31, 2011	Expiration Date	Exercise Price

471,108	471,108	2013	$	0.40

- 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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