Note 19: Subsequent Events

On June 8, 2020, the Company received $55,011 for the exercise of 16,670 warrants at $3.30 per share. The shares were issued on July 21, 2020 accordingly the $55,011 is included in accrued expenses at June 30, 2020.

On July 15, 2020, the Company issued 32,609 shares of Common Stock valued at $2.30 per share to a provider for marketing services.

On July 21, 2020, the Company entered into a two-year production, marketing and sale of animation cells agreement with AHAA. The Company will contribute characters which are owned and/or controlled by the Company. AHAA will be responsible for providing the funding for the project and the artwork for the cells as well as all operational functions and costs. AHAA will pay the Company a 15% royalty on all cell sales of any Company owned or controlled property.

On July 22, 2020, the Company issued 124,449 shares of Common Stock valued at $2.30 per share to the same provider for marketing services.

On or about July 6, 2020, the Company and POW! entered into an agreement to form a joint venture to be called “Stan Lee Universe, LLC” (the “JV”). The JV will hold worldwide rights, on a perpetually renewing basis, to the name, physical likeness, and physical signature of Stan Lee. Further, the JV will have access to the POW! catalogue of intellectual property, created by Stan Lee, to exploit in live-action and animated motion pictures, television, online, digital, publishing, comic book, and merchandising and licensing. The agreement is subject to due diligence and documentation. As currently agreed, the Company will be the managing partner of the JV.

On August 6, 2020, the Board of Directors approved, subject to stockholder approval, a proposed amendment to the Company’s Articles of Incorporation, as amended, to increase the authorized number of shares of the Company’s common stock from 233,333,334 to 400,000,000 in order to enable the Company to efficiently take advantage of accretive opportunities, largely targeting acquisitions, which may arise and provide enriched shareholder value as the media industry undergoes a period of consolidation and the 2020 Incentive Plan, which (if approved by the Company’s stockholders) will replace the Company’s 2015 Amended Incentive Plan for all future equity-based incentive awards and enable the Company to attract, motivate, and retain qualified individuals upon whom its business and accretive growth strategy depends.

On July 21, 2020, 16,670 warrants were exercised at $3.30 per share.