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

Quarterly report pursuant to Section 13 or 15(d)

9. Deferred Revenue and Advances

9. Deferred Revenue and Advances	9 Months Ended
Sep. 30, 2014
Deferred Revenue Disclosure [Abstract]
9. Deferred Revenue and Advances	As of September 30, 2014 and December 31, 2013, the Company had advances of $871,667 and $450,000, respectively. As a result of the Merger, the Company assumed from A Squared an April 2013 agreement for an advance of $450,000 for the music rights of certain A Squared properties. During the second quarter of 2014, the Company executed an agreement with the same counterparty for another music advance of $250,000 covering the properties held by the Company prior to the Merger. Pursuant to ASC 928-430-25-1, the Company began recognizing revenue under these agreements on May 1, 2014. During the third quarter of 2014, the Company executed another music advance agreement for $250,000. Pursuant to ASC 928-430-25-1, the Company began recognizing revenue under these agreements on August 1, 2014. As of September 30, 2014 and December 31, 2013, the Company had deferred revenue of $46,245 and $35,264, respectively. Deferred revenue represents amounts collected from licensees and customers for which revenue recognition criteria have not been met.

9. Deferred Revenue and Advances

9 Months Ended

Sep. 30, 2014

Deferred Revenue Disclosure [Abstract]

As of September 30, 2014 and December 31, 2013, the Company had advances of $871,667 and $450,000, respectively.

As a result of the Merger, the Company assumed from A Squared an April 2013 agreement for an advance of $450,000 for the music rights of certain A Squared properties. During the second quarter of 2014, the Company executed an agreement with the same counterparty for another music advance of $250,000 covering the properties held by the Company prior to the Merger. Pursuant to ASC 928-430-25-1, the Company began recognizing revenue under these agreements on May 1, 2014.

During the third quarter of 2014, the Company executed another music advance agreement for $250,000. Pursuant to ASC 928-430-25-1, the Company began recognizing revenue under these agreements on August 1, 2014.

As of September 30, 2014 and December 31, 2013, the Company had deferred revenue of $46,245 and $35,264, respectively. Deferred revenue represents amounts collected from licensees and customers for which revenue recognition criteria have not been met.