Kartoon Studios (TOON) 10-Q 19 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 19, 2019
Document And Entity Information
Entity Registrant Name	Genius Brands International, Inc.
Entity Central Index Key	0001355848
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	NV
File Number	000-54389
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		10,987,471
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)		Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and Cash Equivalents		$ 2,229,735	$ 2,684,483
Restricted Cash		401,599	400,543
Accounts Receivable, net		1,227,121	2,160,296
Other Receivable		3,202	20,902
Inventory, net		12,666	15,816
Prepaid and Other Assets		478,599	297,542
Total Current Assets		4,352,922	5,579,582
Property and Equipment, net		71,120	75,634
Right Of Use Assets, net		1,941,136	0
Film and Television Costs, net		9,150,943	8,166,131
Lease Deposits		392,523	325,000
Intangible Assets, net		70,495	89,988
Goodwill		10,365,806	10,365,806
Total Assets		26,344,945	24,602,141
Current Liabilities:
Accounts Payable		143,278	285,563
Accrued Expenses	[1]	236,545	52,865
Participations Payable		1,079,931	1,078,557
Deferred Revenue		850,276	874,503
Secured Convertible Notes, net		4,500,000	1,831,847
Lease Liability		379,995	0
Due to Related Parties		401,778	346,759
Accrued Salaries and Wages	[2]	257,184	137,825
Total Current Liabilities		7,848,987	4,607,919
Long Term Liabilities:
Deferred Revenue		4,157,013	4,051,253
Lease Liability		1,610,223	0
Production Facility, net		2,613,110	2,178,198
Disputed Trade Payable		925,000	925,000
Total Liabilities		17,154,333	11,762,370
Stockholders' Equity:
Preferred Stock, $0.001 par value, 10,000,000 shares authorized, respectively; 2,120 and 2,120 shares issued and outstanding, respectively		2	2
Common Stock, $0.001 par value, 233,333,334 shares authorized, respectively; 10,475,740 and 9,457,859 shares issued and outstanding, respectively		10,476	9,458
Additional Paid in Capital		66,936,918	63,537,915
Accumulated Deficit		(57,751,666)	(50,702,486)
Accumulated Other Comprehensive Income (Loss)		(5,118)	(5,118)
Total Equity		9,190,612	12,839,771
Total Liabilities & Stockholders' Equity		$ 26,344,945	$ 24,602,141
[1]	Represents accrued interest, insurance liability and lease deposit on sub-lease.
[2]	Represents accrued salaries and wages and accrued vacation payable to employees for 2019 and accrued vacation payable to employees in 2018

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	233,333,334	233,333,334
Common Stock, shares issued	10,475,740	9,457,859
Common Stock, shares outstanding	10,475,740	9,457,859
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	2,120	2,120
Preferred stock shares outstanding	2,120	2,120

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total Revenues	$ 464,263	$ 76,411	$ 1,685,194	$ 169,624
Operating Expenses:
Marketing and Sales	226,738	180,375	308,209	241,355
Direct Operating Costs	347,773	756,696	1,087,828	729,947
General and Administrative	1,556,611	1,328,303	3,206,131	2,650,755
Total Operating Expenses	2,131,122	2,265,374	4,602,168	3,622,057
Loss from Operations	(1,666,859)	(2,188,963)	(2,916,974)	(3,452,433)
Other Income (Expense):
Other Income	7,027	0	15,788	279
Loss on Extinguished Debt	0	0	(3,352,155)	0
Other Income - Sub-Lease	82,222	0	197,453	0
Interest Expense	(137,542)	(820)	(666,744)	(1,093)
Net Other Income (Expense)	(48,293)	(820)	(3,805,658)	(814)
Loss before Income Tax Expense	(1,715,152)	(2,189,783)	(6,722,632)	(3,453,247)
Income Tax Expense	0	0	0	0
Net Loss	(1,715,152)	(2,189,783)	(6,722,632)	(3,453,247)
Beneficial Conversion Feature on Preferred Stock	0	0	(322,240)	0
Net Loss Applicable to Common Shareholders	$ (1,715,152)	$ (2,189,783)	$ (7,044,872)	$ (3,453,247)
Net Loss per Common Share (Basic and Diluted)	$ (0.16)	$ (0.26)	$ (0.69)	$ (0.42)
Weighted Average Shares Outstanding (Basic and Diluted)	10,447,475	8,445,528	10,180,916	8,298,666
Licensing and Royalties [Member]
Total Revenues	$ 149,659	$ 24,653	$ 499,845	$ 91,465
Television and Home Entertainment [Member]
Total Revenues	295,454	34,201	1,145,561	37,955
Advertising Sales [Member]
Total Revenues	17,522	16,926	37,682	38,935
Product Sales [Member]
Total Revenues	$ 1,628	$ 631	$ 2,106	$ 1,269

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Other Comprehensive Income [Abstract]
Net Loss	$ (1,715,152)	$ (2,189,783)	$ (6,722,632)	$ (3,453,247)
Beneficial Conversion Feature on Preferred Stock	0	0	(322,240)	0
Comprehensive Loss	$ (1,715,152)	$ (2,189,783)	$ (7,044,872)	$ (3,453,247)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (unaudited) - USD ($)	Common Stock	Preferred Stock	Additional Paid-In Capital	Accumulated Deficit	Other Comprehensive Loss	Total
Beginning balance, shares at Dec. 31, 2017	7,610,794	3,530
Beginning balance, value at Dec. 31, 2017	$ 7,611	$ 4	$ 56,588,845	$ (41,551,497)	$ (5,118)	$ 15,039,845
Retained Earnings Adjustment of ASC				173,112		173,112
Issuance of Common Stock in Registered Direct Offering, net, shares	592,000
Issuance of Common Stock in Registered Direct Offering, net, value	$ 592		1,595,750			1,596,342
Share Based Compensation			47,852			47,852
Net Loss				(1,263,464)		(1,263,464)
Ending balance, shares at Mar. 31, 2018	8,202,794	3,530
Ending balance, value at Mar. 31, 2018	$ 8,203	$ 4	58,232,447	(42,641,849)	(5,118)	15,593,687
Beginning balance, shares at Dec. 31, 2017	7,610,794	3,530
Beginning balance, value at Dec. 31, 2017	$ 7,611	$ 4	56,588,845	(41,551,497)	(5,118)	15,039,845
Net Loss						(3,453,247)
Ending balance, shares at Jun. 30, 2018	8,950,303	2,120
Ending balance, value at Jun. 30, 2018	$ 8,950	$ 2	59,032,572	(44,798,497)	(5,118)	14,237,909
Beginning balance, shares at Mar. 31, 2018	8,202,794	3,530
Beginning balance, value at Mar. 31, 2018	$ 8,203	$ 4	58,232,447	(42,641,849)	(5,118)	15,593,687
Retained Earnings Adjustment of ASC				33,135		33,135
Conversion of Preferred Shares, shares	470,001	(1,410)
Conversion of Preferred Shares, value	$ 469	$ (2)	(467)
Issuance of Common Stock for Services, shares	277,508
Issuance of Common Stock for Services, value	$ 278		779,722			780,000
Share Based Compensation			20,870			20,870
Net Loss				(2,189,783)		(2,189,783)
Ending balance, shares at Jun. 30, 2018	8,950,303	2,120
Ending balance, value at Jun. 30, 2018	$ 8,950	$ 2	59,032,572	(44,798,497)	(5,118)	14,237,909
Beginning balance, shares at Dec. 31, 2018	9,457,859	2,120
Beginning balance, value at Dec. 31, 2018	$ 9,458	$ 2	63,537,915	(50,702,486)	(5,118)	12,839,771
Cumulative effect of adoption of ASC				(4,306)		(4,306)
Issuance of Common Stock for Services, shares	28,965
Issuance of Common Stock for Services, value	$ 29		71,939			71,968
Value of Beneficial Conversion Feature			(213,700)			(213,700)
Share Based Compensation			35,749			35,749
Value of Beneficial Conversion Feature			322,240	(322,240)
Warrants Issued As Part Of Debt Extinguishment			1,287,962			1,287,962
Proceeds from Securities Purchase Agreement, Net, shares	945,894
Proceeds from Securities Purchase Agreement, Net, value	$ 946		1,756,606			1,757,552
Net Loss				(5,007,482)		(5,007,482)
Ending balance, shares at Mar. 31, 2019	10,432,718	2,120
Ending balance, value at Mar. 31, 2019	$ 10,433	$ 2	66,798,711	(56,036,514)	(5,118)	10,767,514
Beginning balance, shares at Dec. 31, 2018	9,457,859	2,120
Beginning balance, value at Dec. 31, 2018	$ 9,458	$ 2	63,537,915	(50,702,486)	(5,118)	12,839,771
Cumulative effect of adoption of ASC						4,306
Net Loss						(6,722,632)
Ending balance, shares at Jun. 30, 2019	10,475,740	2,120
Ending balance, value at Jun. 30, 2019	$ 10,476	$ 2	66,936,918	(57,751,666)	(5,118)	9,190,612
Beginning balance, shares at Mar. 31, 2019	10,432,718	2,120
Beginning balance, value at Mar. 31, 2019	$ 10,433	$ 2	66,798,711	(56,036,514)	(5,118)	10,767,514
Issuance of Common Stock for Services, shares	43,022
Issuance of Common Stock for Services, value	$ 43		80,800			80,843
Share Based Compensation			57,407			57,407
Net Loss				(1,715,152)		(1,715,152)
Ending balance, shares at Jun. 30, 2019	10,475,740	2,120
Ending balance, value at Jun. 30, 2019	$ 10,476	$ 2	$ 66,936,918	$ (57,751,666)	$ (5,118)	$ 9,190,612

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Net Loss	$ (6,722,632)	$ (3,453,247)
Adjustments to reconcile net loss to net cash Provided in Operating Activities:
Amortization of Film and Television Costs	621,986	765,139
Depreciation and Amortization Expense	126,877	51,975
Accretion of Discount on Preferred Convertible Notes	390,260	0
Bad Debt	0	2,400
Stock Issued for Services	129,511	0
Stock Compensation Expense	93,156	68,722
Loss on Extinguished Debt	3,352,155	0
Decrease (Increase) in Operating Assets
Accounts Receivable, net	933,175	1,604,042
Other Receivable	17,700	256,872
Inventory, net	3,150	1,245
Prepaid Expenses & Other Assets	(181,057)	14,914
Lease Deposits	(67,523)	(325,000)
Film and Television Costs, net	(1,583,497)	(1,648,181)
Increase (Decrease) in Operating Liabilities
Accounts Payable	(142,285)	(43,156)
Accrued Salaries and Wages	119,359	(28,197)
Deferred Revenue	81,533	135,774
Participations Payable	1,374	0
Due To Related Party	55,019	0
Accrued Expenses	221,599	(768,739)
Net Cash Used in Operating Activities	(2,550,140)	(3,365,437)
Cash Flows from Investing Activities:
Investment in Intangible Assets, net	0	(21,357)
Investment in Property and Equipment	(14,331)	(9,057)
Net Cash Used in Investing Activities	(14,331)	(30,414)
Cash Flows from Financing Activities:
Lease Liability	(81,685)	0
Proceeds from Sale of Common Stock, Net	1,757,552	1,596,342
Borrowing (Repayment) of Production Facility, Net	434,912	(2,173,130)
Net Cash Provided by (used in) Financing Activities	2,110,779	(576,788)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash	(453,692)	(3,972,639)
Beginning Cash, Cash Equivalents, and Restricted Cash	3,085,026	7,498,072
Ending Cash, Cash Equivalents, and Restricted Cash	2,631,334	3,525,433
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	193,252	0
Schedule of non-cash financing and investing activites:
Issuance of Common Stock for production services	23,301	780,000
Beneficial Conversion Feature	$ 322,240	$ 0

1. Organization and Nature of B

1. Organization and Nature of Business	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Organization and Nature of Business	Note 1: Organization and Business Organization and Nature of Business Genius Brands International, Inc. (“we,” “us,” “our,” or the “Company”) is a global content and brand management company that creates and licenses multimedia content. Led by experienced industry personnel, we distribute our content in all formats as well as a broad range of consumer products based on our characters. In the children's media sector, our portfolio features “content with a purpose” for toddlers to tweens, which provides enrichment as well as entertainment. New intellectual property titles include the preschool property Rainbow Rangers Llama Llama, Baby Genius, Thomas Edison's Secret Lab® Secret Millionaires Club, Stan Lee's Superhero Kindergarten In addition, we act as licensing agent for Penguin Young Readers, a division of Penguin Random House LLC who owns or controls the underlying rights to Llama Llama The Company commenced operations in 2006, assuming all the rights and obligations of its then Chief Executive Officer, under an Asset Purchase Agreement between the Company and Genius Products, Inc., in which the Company obtained all rights, copyrights, and trademarks to the brands “Baby Genius,” “Kid Genius,” “123 Favorite Music” and “Wee Worship,” and all then existing productions under those titles. In 2011, the Company reincorporated in Nevada and changed its name to Genius Brands International, Inc. In connection with the Reincorporation, the Company changed its trading symbol to “GNUS.” In 2013, the Company entered into an Agreement and Plan of Reorganization (the “Merger Agreement”) with A Squared Entertainment LLC, a Delaware limited liability company (“A Squared”), A Squared Holdings LLC, a California limited liability company and sole member of A Squared (the “Parent Member”) and A2E Acquisition LLC, its newly formed, wholly-owned Delaware subsidiary (“Acquisition Sub”). Upon closing of the transactions, A Squared, as the surviving entity, became a wholly-owned subsidiary of the Company. Liquidity Historically, the Company has incurred net losses. For the three months ended June 30, 2019 and June 30, 2018, the Company reported net losses of $1,715,152 and $2,189,783, respectively. For the six months ended June 30, 2019 and June 30, 2018, the Company reported net losses of $6,722,632 and $3,453,247, respectively. The Company reported net cash used in operating activities of $2,550,140 and $3,365,437 for the six months ended June 30, 2019, and June 30, 2018, respectively. As of June 30, 2019, the Company had an accumulated deficit of $57,751,666 and total stockholders’ equity of $9,190,612. At June 30, 2019, the Company had current assets of $4,352,922, including cash, cash equivalents, and restricted cash of $2,631,334 and current liabilities of $7,848,987. The Company had negative working capital of $3,496,065 as of June 30, 2019, compared to working capital of $971,663 as of December 31, 2018. On February 19, 2019, the Company entered into a securities purchase agreement with a certain accredited investor pursuant to which we sold 945,894 shares of common stock and warrants to purchase up to 945,894 shares of our common stock, or the registered warrants, to such investor (the “February 2019 Offering”). The Company received $1,757,552 of net proceeds from this offering. Each share of common stock was accompanied by a registered warrant to purchase one share of common stock at an exercise price of $2.12. Each share of common stock and accompanying registered warrant were sold at a combined purchase price of $2.12. The shares of common stock and registered warrants were purchased together and were issued separately and were immediately separable upon issuance. In a concurrent private placement, we also sold to the purchaser in the February 2019 Offering, unregistered warrants to purchase up to an additional 945,894 shares of our common stock. Amendment, Waiver and Consent In connection with the February 2019 Offering and concurrent private placement, the Company entered into an amendment, waiver and consent agreement, or the “February Amendment, Waiver and Consent Agreement,” with certain holders of its 10% Secured Convertible Notes due August 20, 2019, which were issued pursuant to a securities purchase agreement, dated August 17, 2018, by and among the Company and the purchasers identified on the signature pages thereto, or the notes purchase agreement. Pursuant to the February Amendment, Waiver and Consent Agreement, such holders agreed to amend the notes purchase agreement, waive any applicable rights and remedies under the notes purchase agreement, and consent to the February 2019 Offering and concurrent private placement. In consideration for such February Amendment, Waiver and Consent Agreement, the Company agreed to issue all holders of our 10% Secured Convertible Notes due August 20, 2019 warrants to purchase up to an aggregate amount of 1,800,000 shares of our common stock. Such warrants have an exercise price of $2.55 per share, will become exercisable commencing six months and one day from the date of issuance and will expire five (5) years from the date of issuance. Going Concern The Company’s current assets are not sufficient to repay its outstanding Secured Convertible Notes and fund its planned operations, and accordingly, there is substantial doubt about our ability to continue as a going concern. If the Company defaults in its payment obligations under the Secured Convertible Notes and the indebtedness under the Secured Convertible Notes were to be accelerated, there can be no assurance that the Company’s assets would be sufficient to repay such indebtedness in full at such time or it may not be able to obtain debt or equity financing on favorable terms or if at all to repay the Secured Convertible Notes. As a result, the Company could be forced into bankruptcy or liquidation. Series A Convertible Preferred Stock Price Adjustment In connection with the issuance of the warrants described above, the conversion price of the Company’s outstanding Series A Convertible Preferred Stock was reduced from $2.12 to $1.14. While the Company believes that its cash balances and working capital combined with its production facility and deal pipeline will be sufficient to fund operations for the next twelve months, there can be no assurance that cash flows from operations will continue to improve in the near future. If the Company is unable to attain profitable operations and attain positive operating cash flows, it may need to (i) seek additional funding, (ii) scale back its development or production plans, or (iii) reduce certain operations.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies Basis of Presentation The accompanying 2019 and 2018 condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Genius Brands International, Inc., its wholly-owned subsidiaries A Squared LLC, Llama Productions LLC and Rainbow Rangers Productions LLC, as well as its interest in Stan Lee Comics, LLC (“Stan Lee Comics”). All significant inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 Business Combinations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these condensed consolidated financial statements to conform to current period classifications. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid debt instruments with initial maturities of three months or less to be cash equivalents. As of June 30, 2019, and 2018, Restricted Cash totaled $401,599 and $0, respectively. Restricted cash increased $1,056 during the six months ended June 30, 2019 due to interest earned. As of December 31, 2018, Restricted Cash totaled $400,543. Restricted Cash represents funds held in a cash account to be used solely for the production of Llama Llama Allowance for Doubtful Accounts Accounts receivable are presented on the consolidated balance sheets net of estimated uncollectible amounts. The Company assesses its accounts receivable balances on a quarterly basis to determine collectability and records an allowance for estimated uncollectible accounts in an amount approximating anticipated losses based on historical experience and future expectations. Individual uncollectible accounts are written off against the allowance when collection of the individual accounts appears doubtful. The Company had an allowance for doubtful accounts of $0 for each of the periods ended June 30, 2019 and December 31, 2018. Inventories Inventories are stated at the lower of average cost or net realizable value and consist of finished goods such as DVDs, CDs and other products. A reserve for slow-moving and obsolete inventory is established for all inventory deemed potentially non-saleable. The current inventory is considered properly valued and saleable. The Company concluded that there was an appropriate reserve for slow moving and obsolete inventory of $26,097 at each of the periods ended June 30, 2019 and December 31, 2018. Property and Equipment Property and equipment are recorded at cost. Depreciation on property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from two to seven years. Maintenance, repairs, and renewals, which neither materially add to the value of the assets nor appreciably prolong their lives, are charged to expense as incurred. Gains and losses from any dispositions of property and equipment are reflected in the consolidated statement of operations. Right of Use Leased Assets In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases.” The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, which allows for an additional optional transition method where comparative periods presented in the financial statements in the period of adoption will not be restated and instead those periods will be presented under existing guidance in accordance with ASC 840, Leases. Management used this optional transition method. As of January 1, 2019, management recorded lease liability of $2,071,903, right-of-use asset of $2,153,747, accumulated amortization of $124,070, a reversal of previously recorded deferred rent of $37,920 and the increase in accumulated deficit of $4,306. Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the estimated fair value of net assets acquired in business combinations accounted for by the purchase method. In accordance with FASB ASC 350 Intangibles Goodwill and Other, goodwill and certain intangible assets are presumed to have indefinite useful lives and are thus not amortized, but subject to an impairment test annually or more frequently if indicators of impairment arise. The Company completes the annual goodwill and indefinite-lived intangible asset impairment tests at the end of each fiscal year. To test for goodwill impairment, we are required to estimate the fair market value of each of our reporting units, of which we have one. While we may use a variety of methods to estimate fair value for impairment testing, our primary method is discounted cash flows. We estimate future cash flows and allocations of certain assets using estimates for future growth rates and our judgment regarding the applicable discount rates. Changes to our judgments and estimates could result in a significantly different estimate of the fair market value of the reporting units, which could result in an impairment of goodwill or indefinite lived intangible assets in future periods. Other intangible assets have been acquired, either individually or with a group of other assets, and were initially recognized and measured based on fair value. Annual amortization of these intangible assets is computed based on the straight-line method over the remaining economic life of the asset. Debt and Attached Equity-Linked Instruments The Company measures issued debt on an amortized cost basis, net of debt premium/discount and debt issuance costs amortized using the effective interest rate method or the straight-line method when the latter does not lead to materially different results. The Company accounts for the proceeds from the issuance of convertible notes payable in accordance with FASB ASC 470-20 Debt with Conversion and Other Options. Pursuant to FASB ASC 470-20, the intrinsic value of the embedded conversion feature (beneficial conversion interest), which is in the money on the commitment date is included in the discount to debt and amortized to interest expense over the term of the note agreement. When the conversion option is not separated, the Company accounts for the entire convertible instrument including debt and the conversion feature as a liability. The Company analyzes freestanding equity-linked instruments including warrants attached to debt to conclude whether the instrument meets the definition of the derivative and whether it is considered indexed to the Company’s own stock. If the instrument is not considered indexed to Company’s stock, it is classified as an asset or liability recorded at fair value. If the instrument considered indexed to Company’s stock, the Company analyzes additional equity classification requirements per ASC 815-40 Contract’s in Entity’s Own Equity. When the requirements are met the instrument is recorded as part of the Company’s equity, initially measured based on its relative fair value with no subsequent re-measurement. When the equity classification requirements are not met, the instrument is recorded as an asset or liability and is measured at fair value with subsequent changes in fair value recorded in earnings. When required, the Company also considers the bifurcation guidance for embedded derivatives per FASB ASC 815-15 Embedded Derivatives. Film and Television Costs The Company capitalizes production costs for episodic series produced in accordance with FASB ASC 926-20 Entertainment-Films - Other Assets - Film Costs. Accordingly, production costs are capitalized at actual cost and then charged against revenue based on the initial market revenue evidenced by a firm commitment over the period of commitment. The Company expenses all capitalized costs that exceed the initial market firm commitment revenue in the period of delivery of the episodes. The Company capitalizes production costs for films produced in accordance with FASB ASC 926-20 Entertainment - Films - Other Assets - Film Costs. Accordingly, production costs are capitalized at actual cost and then charged against revenue quarterly as a cost of production based on the relative fair value of the film(s) delivered and recognized as revenue. The Company evaluates its capitalized production costs annually and limits recorded amounts by their ability to recover such costs through expected future sales. Additionally, for both episodic series and films, from time to time, the Company develops additional content, improved animation and bonus songs/features for its existing content. After the initial release of the film or episodic series, the costs of significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred. Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard ASC 606 (Topic 606), Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606. Accordingly, the Company recorded a cumulative effect adjustment to Accumulated Deficit in the amount of $206,247. The impact to the Company’s financial statements for the three and six months ended June 30, 2018 resulting from the adoption of Topic 606 as of January 1, 2018 was a reduction of revenue in the amount $68,184 and $136,367, respectively, and a corresponding reduction in costs in the amount of $14,317 and $28,634, respectively, from the amounts reported. The amounts prior to adoption were not recognized pursuant to Topic 606 and would have been reported pursuant to Topic 605. The Company has identified the following six material and distinct performance obligations: · License rights to exploit Functional Intellectual Property (Functional Intellectual Property or “functional IP” is defined as intellectual property that has significant standalone functionality, such as the ability to be played or aired. Functional intellectual property derives a substantial portion of its utility from its significant standalone functionality.) · License rights to exploit Symbolic Intellectual Property (Symbolic Intellectual Property or “symbolic IP” is intellectual property that is not functional as it does not have significant standalone use and substantially all of the utility of symbolic IP is derived from its association with the entity’s past or ongoing activities, including its ordinary business activities, such as the Company’s licensing and merchandising programs associated with its animated content.) · Options to renew or extend a contract at fixed terms. (While this performance obligation is not significant for the Company’s current contracts, it could become significant in the future.) · Options on future seasons of content at fixed terms. (While this performance obligation is not significant for the Company’s current contracts, it could become significant in the future.) · Fixed fee advertising revenue generated from the Genius Brands Network · Variable fee advertising revenue generated from the Genius Brands Network As a result of the change, beginning January 1, 2018, the Company began recognizing revenue related to licensed rights to exploit functional IP in two ways. For minimum guarantees, the Company recognizes fixed revenue upon delivery of content and the start of the license period. For functional IP contracts with a variable component, the Company estimates revenue such that it is probable there will not be a material reversal of revenue in future periods. Revenue under these types of contracts was previously recognized when royalty statements were received. The Company began recognizing revenue related to licensed rights to exploit symbolic IP substantially similarly to functional IP. Although it has a different recognition pattern from functional IP, the valuation method is substantially the same, depending on the nature of the license. The Company sells advertising on its Kid Genius channel in the form of either flat rate promotions or impressions served. For flat rate promotions with a fixed term, the Company recognizes revenue when all five revenue recognition criteria under FASB ASC 606 are met. For impressions served, the Company delivers a certain minimum number of impressions on the channel to the advertiser for which the advertiser pays a contractual CPM per impression. Impressions served are reported to the Company on a monthly basis, and revenue is reported in the month the impressions are served. The Company recognizes revenue related to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer. Direct Operating Costs Direct operating costs include costs of our product sales, non-capitalizable film costs, film and television cost amortization expense, and participation expense related to agreements with various animation studios, post-production studios, writers, directors, musicians or other creative talent with which we are obligated to share net profits of the properties on which they have rendered services. Share-Based Compensation As required by FASB ASC 718 - Stock Compensation, the Company recognizes an expense related to the fair value of our share-based compensation awards, including stock options, using the Black-Scholes calculation as of the date of grant. The Company has elected to use the graded attribution method for awards which are in-substance, multiple awards based on the vesting schedule. Earnings Per Share Basic earnings (loss) per common share (“EPS”) is calculated by dividing net income (loss) applicable to common shareholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing net income (loss) applicable to common shareholders by the weighted average number of shares of common stock outstanding, plus the assumed exercise of all dilutive securities using the treasury stock or “as converted” method, as appropriate. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive. Income Taxes Deferred income tax assets and liabilities are recognized based on differences between the financial statement and tax basis of assets and liabilities using presently enacted tax rates. At each balance sheet date, the Company evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets and records a valuation allowance that reduces the deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized. Concentration of Risk The Company’s cash is maintained at two financial institutions and from time to time the balances for this account exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insured amount. Balances on interest bearing deposits at banks in the United States are insured by the FDIC up to $250,000 per account. As of June 30, 2019, the Company had three accounts with a combined uninsured balance of $1,773,097. As of December 31, 2018, the Company had three accounts with a combined uninsured balance of $2,183,875. For the three and six months ended June 30, 2019, the Company had two customers whose total revenue each exceeded 10% of the total consolidated revenue. Those customers accounted for 52% and 57% of the total revenue for the three and six months ended June 30, 2019, respectively. The Company had three customers that represented 75% of accounts receivable as of June 30, 2019. The Company had one customer who accounted for 98% of accounts receivable balance as of December 31, 2018. Fair value of financial instruments The carrying amounts of cash, receivables, accounts payable, and accrued liabilities approximate fair value due to the short-term maturity of the instruments. The carrying amount of the Production Loan Facility approximates fair value since the debt carries a variable interest rate that is tied to either the current Prime or LIBOR rates plus an applicable spread. The Company adopted FASB ASC 820 as of January 1, 2008, for financial instruments measured at fair value on a recurring basis. FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: · Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; · Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and · Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards the Test for Goodwill Impairment,” which requires an entity to perform a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The standard is effective January 1, 2020, with early adoption as of January 1, 2017 permitted. In July 2017, the FASB issued ASU No. 2017-11 addressing, among other matters, accounting for certain financial instruments. One of the amendments in this guidance intended to reduce the complexity associated with the issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the Board determined that a down round feature (as defined) would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. ASU 2017-11 is effective for public business entities for fiscal year beginning after December 15, 2018. The Company adopted ASU 2017-11 on January 1, 2019. The adoption of ASU 2017-11 did not have a material impact on the Company’s consolidated financial statements or cash flows. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC 820. The update removes some disclosures, modifies others, and adds some new disclosure requirements. The amendments in this ASU are effective for all entities for fiscal years, and interim period within those fiscal years, beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which supersedes ASC 505-05 and expands the scope of ASC 718 to include all share-based payment arranges related to the acquisition of goods and services from both nonemployees and employee. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most of its requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. ASC 2018-07 is effective for all entities for fiscal year beginning after December 15, 2018, and interim periods within that fiscal year. The Company adopted ASU No. 2018-07 on January 1, 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements or cash flows. In March 2019, the FASB issued ASU No. 2019-02, Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters Intangibles-Goodwill and Other (Subtopic 920-350). The update aligns the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. The amendments also require that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. The amendments in this update require that an entity test a film or license agreement for program material within the scope of Subtopic 920-350 for impairment at a film group level when the film or license agreement is predominantly monetized with other films and/or license agreements. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Various other accounting pronouncements have been recently issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries and are not expected to have a material effect on our financial position, results of operations, or cash flows.

3. Property and Equipment, Net

3. Property and Equipment, Net	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Note 3: Property and Equipment, Net The Company has property and equipment as follows as of June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Furniture and Equipment $ 19,419 $ 12,385 Computer Equipment 143,245 138,883 Leasehold Improvements 2,935 – Software 15,737 15,737 Property and Equipment, Gross 181,336 167,005 Less Accumulated Depreciation (110,216 ) (91,371 ) Property and Equipment, Net $ 71,120 $ 75,634 During the three months ended June 30, 2019 and 2018, the Company recorded depreciation expense of $9,725 and $4,601, respectively. During the six months ended June 30, 2019 and 2018, the Company recorded depreciation expense of $18,845 and $23,697, respectively.

4. Right of Use Leased Asset

4. Right of Use Leased Asset	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
4. Right of Use Leased Asset	Note 4: Right Of Use Leased Asset In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, which allows for an additional optional transition method where comparative periods presented in the financial statements in the period of adoption will not be restated and instead those periods will be presented under existing guidance in accordance with ASC 840, Leases. Management used this optional transition method. As of January 1, 2019, management recorded lease liability of $2,071,903, right-of-use asset of $2,153,747, accumulated amortization of $124,070, a reversal of previously recorded deferred rent of $37,920 and the increase in accumulated deficit of $4,306. June 30, 2019 Right Of Use Leased Assets Right Of Use Asset Office Lease Asset $ 2,142,863 Printer Lease Asset 12,374 Right Of Use Asset, Gross 2,155,237 Less Accumulated Amortization Office Lease Accumulated Amortization 208,611 Printer Lease Accumulated Amortization 5,490 Accumulated Amortization 214,101 Right Of Use Asset, Net $ 1,941,136 During the three months ended June 30, 2019, the Company recorded amortization expense of $52,973. During the six months ended June 30, 2019, the Company recorded amortization expense of $88,539.

5. Film and Television Costs, N

5. Film and Television Costs, Net	6 Months Ended
	Jun. 30, 2019
Film And Television Costs Net
Film and Television Costs, Net	Note 5: Film and Television Costs, Net As of June 30, 2019, the Company had net Film and Television Costs of $9,150,943, compared to $8,166,131 at December 31, 2018. The increase relates primarily to the production and development of Rainbow Rangers season 1 Llama Llama season 2, Thomas Edison’s Secret Lab SpacePop, Llama Llama season 1, Rainbow Rangers season 1. During the three months ended June 30, 2019 and 2018, the Company recorded Film and Television Cost amortization expense of $192,803 and $733,956, respectively. During the six months ended June 30, 2019 and 2018, the Company recorded Film and Television Cost amortization expense of $621,986 and $765,139, respectively. The following table highlights the activity in Film and Television Costs of June 30, 2019, and December 31, 2018: Total Film and Television Costs, Net as of December 31, 2017 $ 2,777,088 Cumulative Effect of Adoption of ASC 606 (219,472 ) Additions to Film and Television Costs 6,644,728 Capitalized Interest 43,510 Film Amortization Expense (1,079,723 ) Film and Television Costs, Net as of December 31, 2018 8,166,131 Additions to Film and Television Costs 1,497,688 Capitalized Interest 109,110 Film Amortization Expense (621,986 ) Film and Television Costs, Net as of June 30, 2019 $ 9,150,943

6. Goodwill and Intangible Asse

6. Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Note 6: Goodwill and Intangible Assets, Net Goodwill In 2013, the Company recognized $10,365,806 in Goodwill, representing the excess of the fair value of the consideration for the Merger over net identifiable assets acquired. Pursuant to FASB ASC 350-20, Goodwill is not subject to amortization but is subject to annual review to determine if certain events warrant impairment to the Goodwill asset. Through June 30, 2019, the Company has not recognized any impairment to Goodwill. Intangible Assets, Net The Company had the following intangible assets as of June 30, 2019, and December 31, 2018: June 30, 2019 December 31, 2018 Trademarks (a) $ 129,831 $ 129,831 Product Masters (a) 64,676 64,676 Other Intangible Assets (a) 272,529 272,529 Intangible Assets, Gross 467,036 467,036 Less Accumulated Amortization (b) (396,541 ) (377,048 ) Intangible Assets, Net $ 70,495 $ 89,988 (a) Pursuant to FASB ASC 350-30-35, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. Through June 30, 2019, the Company has not recognized any impairment expense related to these assets. (b) During the three months ended June 30, 2019 and June 30, 2018, the Company recognized $9,720 and $15,279, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. During the six months ended June 30, 2019 and June 30, 2018, the Company recognized $19,492 and $28,278, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. Expected future intangible asset amortization as of June 30, 2019 is as follows: Fiscal Year: 2019 $ 18,912 2020 37,835 2021 9,698 2022 1,861 2023 1,465 2024 724 Total $ 70,495

7. Deferred Revenue

7. Deferred Revenue	6 Months Ended
	Jun. 30, 2019
Deferred Revenue Disclosure [Abstract]
Deferred Revenue	Note 7: Deferred Revenue As of June 30, 2019, and December 31, 2018, the Company had total short term and long term deferred revenue of $5,007,289 and $4,925,756 respectively. Deferred revenue includes both (i) variable fee contracts with licensees and customers in which the Company had collected advances and minimum guarantees against future royalties and (ii) fixed fee contracts. The Company recognizes revenue related to these contracts when all revenue recognition criteria have been met. Included in the deferred revenue balance as of June 30, 2019 and December 31, 2018 is $3,371,312 which is the remaining balance from the total $3,489,583 advance against future royalty that Sony paid to the Company for both the foreign and domestic distribution rights.

8. Accrued Liabilities - Curren

8. Accrued Liabilities - Current	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued Liabilities - Current	Note 8: Accrued Liabilities – Current As of June 30, 2019, and December 31, 2018, the Company has the following current accrued liabilities: June 30, 2019 December 31, 2018 Other Accrued Expenses (a) $ 236,545 $ 52,865 Accrued Salaries and Wages (b) 257,184 137,825 Total Accrued Liabilities – Current $ 493,729 $ 190,690 (a) Represents accrued interest, insurance liability and lease deposit on sub-lease. (b) Represents accrued salaries and wages and accrued vacation payable to employees for 2019 and accrued vacation payable to employees in 2018

9. Secured Convertible Notes

9. Secured Convertible Notes	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Secured Convertible Notes	Note 9: Secured Convertible Notes On August 17, 2018, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain investors (the “Investors”), pursuant to which the Company agreed to sell (i) an aggregate principal amount of $4.50 million in secured convertible notes, convertible into shares of our common stock, at a conversion price of $2.50 per share (the “Secured Convertible Notes”) and (ii) warrants to purchase 1,800,000 shares of our common stock at an exercise price of $3.00 per share (the “Warrants,” and, together with the Secured Convertible Notes, the “Securities”). The Company received approximately $4,500,000 in gross proceeds from the Offering. The Secured Convertible Notes are the Company’s senior secured obligations and are secured by certain tangible and intangible property of the Company as described in the Purchase Agreement. Unless earlier converted or redeemed, the Secured Convertible Notes are set to mature on August 20, 2019. The Secured Convertible Notes bear interest at a rate of 10% per annum and are convertible at any time until a Secured Convertible Note is no longer outstanding, in whole or in part, at the option of the holders into shares of common stock at a conversion price of $2.50 per share. As further described below, pursuant to the July Amendment, Waiver and Consent (as defined below), the conversion price of the Secured Convertible Notes was reduced to an amount equal to $1.515 per share. The Secured Convertible Notes have a beneficial ownership limitation such that none of the Investors have the right to convert any portion of their Secured Convertible Notes if the Investor (together with its affiliates or any other persons acting together as a group with the Investor) would beneficially own in excess of 9.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the issuance of the Company’s common stock issuable upon conversion of such Secured Convertible Notes. In addition, the Secured Convertible Notes provide for a conversion cap, as amended by the July Amendment Waiver and Consent, such that the Company may not issue any shares of its common stock upon conversion of Secured Convertible Notes which would exceed the aggregate number of shares of the Company’s common stock it could issue upon conversion of the Secured Convertible Notes without breaching its obligations, if any, under Nasdaq Stock Market LLC rules and regulations, except that such limitation shall not apply in the event that the Company obtains the approval of its stockholders as required by the applicable rules of the then applicable trading market for issuances of shares of Common Stock upon conversion of the Secured Convertible Notes in excess of such amount. Interest under the Secured Convertible Notes is payable in arrears beginning on September 1, 2018 and thereafter on each of December 1, 2018, March 1, 2019, June 1, 2019 and at maturity when all amounts outstanding under the Secured Convertible Notes became due and payable. Subject to certain equity conditions, we may force a conversion of the debt into equity. We may redeem the Secured Convertible Notes at any time prior to maturity. If we do not meet such equity conditions at maturity, we are obligated to repay in cash one-sixth of the then outstanding principal amount of the Secured Convertible Notes each month for the six months following the date of maturity, with the first such payment due on the date of maturity, followed by payments each month thereafter. The Secured Convertible Notes contain certain negative covenants, including prohibitions on the incurrence of indebtedness or liens. The Secured Convertible Notes also contain standard and customary events of default including, but not limited to, failure to make payments when due, failure to observe or perform covenants or agreements contained in the Secured Convertible Notes or the bankruptcy or insolvency of the Company or any of our subsidiaries. The Company was in compliance with these covenants as of June 30, 2019. On the date of issuance, the Secured Convertible Notes were convertible into common stock at $2.50 per share, or at a conversion price below the closing market price of $2.55. This “discount” is considered a beneficial conversion feature for accounting purposes. The allocation of carrying basis between the Warrants issued and the Secured Convertible Notes was determined based on relative fair value. The discount of the initial conversion price from market related to the beneficial conversion feature of the debt was $1,561,111, and such amount was recorded as a reduction of debt and increase in additional paid-in capital. The discount will be amortized as additional interest over the term of the loan. The Warrants entitle the holders to purchase 1,800,000 shares of common stock. The Warrants were not exercisable until after six months from the date of issuance and expire five and half years from the date of issuance. The Warrants have an exercise price of $3.00 per share. In the event of a “Fundamental Transaction” (as defined in the Warrants), the Investors have the right to receive the value of the Warrants as determined in accordance with the Black Scholes option pricing model. The Warrants are considered indexes to the Company’s own stock pursuant to ASC 815-40. The Warrants also met the additional equity classification requirements and accordingly are accounted for as part of the Company’s equity. In conjunction with the February 2019 Offering and concurrent private placement, the Company entered into an amendment, waiver and consent agreement, or the “Amendment, Waiver and Consent Agreement,” with certain holders of its 10% Secured Convertible Notes due August 20, 2019, which were issued pursuant to a securities purchase agreement, dated August 17, 2018, by and among the Company and the purchasers identified on the signature pages thereto, or the notes purchase agreement. Pursuant to the Amendment, Waiver and Consent Agreement, such holders agreed to amend the notes purchase agreement, waive any applicable rights and remedies under the notes purchase agreement, and consent to the February 2019 Offering and concurrent private placement. In consideration for such Amendment, Waiver and Consent Agreement, the Company agreed to issue such holders warrants to purchase up to an aggregate amount of 1,800,000 shares of common stock. Such warrants have an exercise price of $2.55 per share, will become exercisable commencing six months and one day from the date of issuance and will expire five (5) years from the date of issuance. On July 22, 2019, in connection with a proposed public offering of shares of common stock (the “August 2019 Offering”), the Company entered into an amendment, waiver and consent agreement (the “July Amendment, Waiver and Consent”) with certain holders constituting (i) a majority-in-interest of the holders of its Secured Convertible Notes and (ii) 51% in interest of the shares of common stock issued pursuant to a securities purchase agreement, dated as of January 8, 2018, by and among the Company and the purchasers identified on the signature pages thereto (the “January 2018 Purchase Agreement”). Pursuant to the July Amendment, Waiver and Consent, such holders agreed to amend the August 2018 Purchase Agreement, the January 2018 Purchase Agreement and the Secured Convertible Notes, waive any applicable rights and remedies under each of the August 2018 Purchase Agreement and the January 2018 Purchase Agreement, and consent to the August 2019 Offering in consideration for (i) a reduction in the conversion price of the Secured Convertible Notes from $2.50 per share to an amount equal to $1.515 and (ii) the issuance to the August 2018 Purchasers of new warrants to purchase the same number of shares of common stock that were issued to each August 2018 Purchaser pursuant to the August 2018 Purchase Agreement (for an aggregate of 1,800,000 shares of common stock to all August 2018 Purchasers) at an exercise price per share equal to $1.14 and will become exercisable commencing six (6) months and one day from the date of issuance and will expire five (5) years from the date of issuance. The issuance of the warrants resulted in a modification of debt in accordance with ASC 470 and is characterized as an extinguishment of debt in accordance with ASC-470-50-40. In accordance with ASC-470-50-40-2 the Company derecognized the existing debt as if it was extinguished and recorded the new debt, with the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt, $2,064,193 being recorded as a loss on the extinguishment of debt. In addition, the warrants were accounted for as equity instruments in accordance with ASC 815-40 and valued using the Black Scholes option pricing model. The fair value of $1,287,962 was recorded as part of the loss on extinguishment of debt.

10. Production Loan Facility

10. Production Loan Facility	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Production Loan Facility	Note 10: Production Loan Facility On August 8, 2016, Llama Productions closed a $5,275,000 multiple draw-down, secured, non-recourse, non-revolving credit facility (the “Facility”) with Bank Leumi USA to produce its animated series Llama Llama On September 28, 2018, Llama Productions LLC, a California limited liability company (“Llama”) and a wholly-owned subsidiary of the Company, entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Bank Leumi USA (the “Lender”), pursuant to which the Lender agreed to make a secured loan in an aggregate amount not to exceed $4,231,989 to Llama (the “Loan”). The proceeds of the Loan will be used to pay the majority of the expenses of producing, completing and delivering two 22-minute episodes and sixteen 11- minute episodes of the second season of the animated series Llama Llama to be initially exhibited on Netflix. To secure payment of the Loan, Llama has granted to the Lender a continuing security interest in and against, generally, all of its tangible and intangible assets, which includes all seasons of the Llama Llama animated series. Under the Loan and Security Agreement, Llama can request revolving loan advances under (a) the Prime Rate Loan facility and (b) the LIBOR Loan facility, each as further described in the Loan and Security Agreement attached as an exhibit hereto. Prime Rate Loan advances shall bear interest, on the outstanding balance thereof, at a fluctuating per annum rate equal to 1.0% plus the Prime Rate (as such term is defined in the Loan and Security Agreement), provided that in no event shall the interest rate applicable to Prime Rate Loans be less than 4.0% per annum. LIBOR Loan advances shall bear interest, on the outstanding balance thereof, for the period commencing on the funding date and ending on the date which is one (1), three (3) or six (6) months thereafter, at a per annum rate equal to 3.25% plus the LIBOR determined for the applicable Interest Period (as such terms are defined in the Loan and Security Agreement), provided that in no event shall the interest rate applicable to LIBOR Loans be less than 3.25% per annum. The Maturity Date of the Prime Rate Loan facility and LIBOR Loan facility is March 31, 2021. Interest rates on advances under the Loan and Security Agreement were between 5.75% and 6.14% for both the three and six month ended June 30, 2019. On August 16, 2019, the Loan was amended to reduce the total commitment by $400,000 to $3,831,989. In connection with the amendment, the $400,000 of cash held as collateral (recorded as Restricted Cash) was released to the Company. In addition, on September 28, 2018, Llama and Lender entered into Amendment No. 2 to Loan and Security Agreement, effective as of August 27, 2018, by and between Llama and the Lender (the “Amendment”). Pursuant to the Amendment, the original Loan and Security Agreement, dated as of August 5, 2016 and amended as of November 7, 2017 (the “Original Loan and Security Agreement”), was amended to (i) reduce the loan commitment thereunder to $1,768,010, which is a reduction of $3,075,406 from the original loan commitment under the Original Loan and Security Agreement and (ii) include the Llama Llama season two obligations under the Loan and Security Agreement as obligations under the Original Loan and Security Agreement. As of June 30, 2019, the Company had gross outstanding borrowing under the facility of $2,642,414 against which financing costs of $29,304 were applied resulting in net borrowings of $2,613,110. As of December 31, 2018, the Company had gross outstanding borrowings under the facility of $2,241,759 against which financing costs of $63,561 were applied resulting in net borrowings of $2,178,198.

11. Disputed Trade Payable

11. Disputed Trade Payable	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Net Tables
Disputed Trade Payable	Note 11: Disputed Trade Payable As part of the merger in 2013, the Company assumed certain liabilities from a previous member of A Squared which has claimed certain liabilities totaling $925,000. The Company disputes the basis for this liability. As of December 31, 2017, the Company believes that the statute of limitations applicable to the assertion of any legal claim relating to the collection of these liabilities has expired and therefore believes this liability is not owed.

12. Stockholders' Equity

12. Stockholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Stockholders' Equity	Note 12: Stockholders’ Equity Common Stock The holders of the Company’s common stock are entitled to one vote per share. In addition, the holders of the Company’s common stock will be entitled to receive ratably such dividends, if any, as may be declared by the Company’s Board of Directors (the “Board”) out of legally available funds; however, the current policy of the Board is to retain earnings, if any, for operations and growth. As of June 30, 2019, the total number of authorized shares of common stock was 233,333,334. On January 8, 2018, the Company entered into the January 2018 Private Placement. Pursuant to a Securities Purchase Agreement, the Company issued to the Investors approximately 592,000 shares of common stock at a per share price of $3.00 and warrants to purchase approximately 592,000 shares of common stock. The warrants were immediately exercisable, will be exercisable for a period of five years from the closing date and have an exercise price of $3.00 per share. The closing of the sale of these securities under the Securities Purchase Agreement occurred on January 10, 2018. On February 19, 2019, the Company entered into a securities purchase agreement with a certain accredited investor pursuant to which we sold 945,894 shares of common stock and warrants to purchase up to 945,894 shares of our common stock, or the registered warrants, to such investor (the “February 2019 Offering”). The Company received $1,757,552 in net proceeds from this offering. Each share of common stock was accompanied by a registered warrant to purchase one share of common stock at an exercise price of $2.12. Each share of common stock and accompanying registered warrant were sold at a combined purchase price of $2.12. The shares of common stock and registered warrants were purchased together and were issued separately and were immediately separable upon issuance. In a concurrent private placement, the Company also sold to the purchaser in the February 2019 Offering, warrants to purchase up to 945,894 shares of our common stock, or the private warrants. As of June 30, 2019, and December 31, 2018, there were 10,475,740 and 9,457,859 shares of common stock outstanding, respectively. Preferred Stock The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001 per share. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by our stockholders, to issue from time to time shares of preferred stock in one or more series. Each series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by our Board of Directors, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. As of both June 30, 2019 and December 31, 2018, there were 2,120 shares of Series A Convertible Preferred Stock outstanding. On May 12, 2014, the Board of Directors authorized the designation of a class of preferred stock as “Series A Convertible Preferred Stock.” On May 14, 2014, the Company filed the Certificate of Designation, Preferences and Rights of the 0% Series A Convertible Preferred Stock with the Secretary of State of the State of Nevada. Each share of the Series A Convertible Preferred Stock is convertible into shares of the Company’s common stock, par value $0.001 per share, based on a conversion calculation equal to the Base Amount divided by the conversion price. The Base Amount is defined as the sum of (i) the aggregate stated value of the Series A Convertible Preferred Stock to be converted and (ii) all unpaid dividends thereon. The stated value of each share of the Series A Convertible Preferred Stock is $1,000 and the initial conversion price was $6.00 per share, subject to adjustment in the event of stock splits, dividends and recapitalizations. Additionally, in the event the Company issues shares of its common stock or common stock equivalents at a per share price that is lower than the conversion price then in effect, the conversion price shall be adjusted to such lower price, subject to certain exceptions. The Company is prohibited from effecting a conversion of the Series A Convertible Preferred Stock to the extent that as a result of such conversion, the investor would beneficially own more than 9.99% in the aggregate of the issued and outstanding shares of the Company’s common stock, calculated immediately after giving effect to the issuance of shares of common stock upon conversion of the Series A Convertible Preferred Stock. The shares of Series A Convertible Preferred Stock possess no voting rights. On May 14, 2014, the Company entered into securities purchase agreements with certain accredited investors pursuant to which the Company sold an aggregate of 6,000 shares of its then newly designated Series A Convertible Preferred Stock at a price of $1,000 per share for gross proceeds to us of $6,000,000. Related to the sale, the Company incurred offering costs of $620,085 resulting in net proceeds of $5,379,915. The transaction closed on May 15, 2014. As the conversion price of the Series A Convertible Preferred Stock on a converted basis was below the market price of the common shares on the closing date, this resulted in a beneficial conversion feature recorded as an “imputed” dividend of $2,010,000. In addition, during the fourth quarter of 2015, in connection with the 2015 Private Placement in which the Company’s common stock was sold at $3.00 per share, the conversion price of the Series A Convertible Preferred Stock decreased to $3.00. This decrease resulted in an additional beneficial conversion feature of $3,383,850 recognized as of the time of the 2015 Private Placement. On August 17, 2018, in connection with the Securities Purchase Agreement in which the Secured Convertible Notes are convertible into shares of the Company’s common stock at $2.50 per share. As a result, the conversion price of the Series A Convertible Preferred Stock decreased to $2.50. This decrease resulted in a beneficial conversion feature of $353,333 which was recognized on August 17, 2018. On February 19, 2019, the Company entered into a Securities Purchase Agreement with a certain accredited investor pursuant to which the Company sold 945,894 shares of common stock and warrants to purchase up to 945,894 shares of the Company’s common stock at $2.12 per share. As a result, the conversion price of the Series A Convertible Preferred Stock decreased to $2.12. This decrease resulted in a beneficial conversion feature of $322,240 which was recognized February 19, 2019. In the future, issuance of common stock or the grant of any rights to purchase our common stock or other securities convertible into our common stock for a per share price less than the then existing conversion price of the Series A Convertible Preferred Stock would result in an adjustment to the then current conversion price of the Series A Convertible Preferred Stock. This reduction would give rise to a beneficial conversion feature recorded as an “imputed” dividend.

13. Stock Options

13. Stock Options	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock Options	Note 13: Stock Options On September 18, 2015, the Company adopted the Genius Brands International, Inc. 2015 Incentive Plan (the “2015 Plan”). The 2015 Plan was approved by our stockholders in September 2015. The 2015 Plan as approved by the stockholders authorized the issuance up to an aggregate of 150,000 shares of common stock. On December 14, 2015, the Board of Directors voted to amend the 2015 Plan to increase the total number of shares that can be issued under the 2015 Plan by 1,293,334 from 150,000 shares to 1,443,334 shares. The increase in shares available for issuance under the 2015 Plan was approved by stockholders on February 3, 2016. On May 18, 2017, the Board of Directors voted to amend the 2015 Plan to increase the total number of shares that can be issued under the 2015 Plan by 223,333 shares from 1,443,334 shares to an aggregate of 1,667,667 shares. The increase in shares available for issuance under the 2015 Plan was approved by the stockholders on July 25, 2017. On September 6, 2018, the Board of Directors voted to amend the 2015 Plan to increase the total number of shares that can be issued under the 2015 Plan by 500,000 shares from 1,667,667 shares to an aggregate of 2,167,667 shares. The increase in shares available for issuance under the 2015 Plan was approved by the Company’s stockholders on October 2, 2018. The following table summarizes the changes in the Company’s stock option plan during the six months ended June 30, 2019: Options Outstanding Number of Shares Exercise Price per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Weighted Average Exercise Price per Share Balance at December 31, 2018 1,259,415 $ 2.09 - 12.00 2.50 years $ – $ 7.39 Options Granted 81,000 $ 1.99 3.0 years $ – $ 1.99 Options Exercised – – – – – Options Cancelled – – – – – Options Expired – – – – – Balance at June 30, 2019 1,340,415 $ 1.99 - 12.00 1.94 years $ – $ 7.14 Exercisable December 31, 2018 1,070,869 $ 2.70 - 9.00 2.96 years $ – $ 7.44 Exercisable June 30, 2019 1,145,965 $ 2.82 - 9.00 1.56 years $ – $ 8.01 During the three months ended March 31, 2019, the Company granted options to purchase 81,000 shares of common stock to certain officers and employees. These stock options vest on December 31, 2019. The fair value of these options was determined to be $117,797 using the Black-Scholes option pricing model based on the following assumptions: Exercise Price $ 1.99 Dividend Yield 0% Volatility 125% Risk-free interest rate 2.44% Expected life of options 3 years During the six months ended June 30, 2019, the Company recognized $93,156 in share-based compensation expense. The unvested share-based compensation as of June 30, 2019 was $257,695, which will be recognized through the second quarter of 2021 assuming the underlying grants are not cancelled or forfeited.

14. Warrants

14. Warrants	6 Months Ended
	Jun. 30, 2019
Warrants and Rights Note Disclosure [Abstract]
Warrants	Note 14: Warrants The Company has warrants outstanding to purchase up to 9,491,175 and 5,899,389 shares as of June 30, 2019 and December 31, 2018, respectively. In connection with the sale of the Company’s Series A Convertible Preferred Stock in May 2014, Chardan Capital Markets LLC (“Chardan”) acted as sole placement agent in consideration for which it received a cash fee of $535,000 and a warrant to purchase up to 100,002 shares of the Company’s common stock. These warrants are exercisable immediately, have an exercise price of $6.00 per share, and have a five-year term. In connection with the 2015 Private Placement, the Company issued to accredited investors the Original Warrants to purchase up to an aggregate of 1,443,362 shares of common stock for a purchase price of $3.00 per share. The Original Warrants are exercisable into shares of common stock for a period of five (5) years from issuance at an initial exercise price of $3.30 per share, subject to adjustment in the event of stock splits, dividends and recapitalizations. The Original Warrants are exercisable immediately. The Company is prohibited from effecting an exercise of the warrants to the extent that as a result of such exercise, the holder would beneficially own more than 4.99% (subject to increase up to 9.99% upon 61 days’ notice) in the aggregate of the issued and outstanding shares of common stock, calculated immediately after giving effect to the issuance of shares of common stock upon exercise of the warrant. In connection with the 2015 Private Placement, Chardan acted as sole placement agent in consideration for which it received a cash fee of $300,000 and a warrant to purchase up to 141,668 shares of the Company’s common stock. These warrants are exercisable immediately, have an exercise price of $3.60 per share, and have a five-year term. On February 9, 2017, the Company entered into the Private Transaction pursuant to the Warrant Exercise Agreement with certain holders of the Original Warrants. Pursuant to the Warrant Exercise Agreement, the holders of the Original Warrants and the Company agreed that such Original Warrant holders would exercise their Original Warrants in full, and the Company would issue to each such holder new warrants, with the new warrants being identical to the Original Warrants except that the termination date of such new warrants is February 10, 2022 (the “Reload Warrants”). In addition, depending on the number of Original Warrants exercised by all holders of the Original Warrants, the Company also agreed to issue to the holders another new warrant, identical to the Original Warrant except that the exercise price of such warrant is $5.30 and such warrant is not exercisable until August 10, 2017 (the “Market Price Warrants” and together with the Reload Warrants, the “New Warrants”). The Company received gross proceeds of $3,866,573 from the exercise of the Original Warrants and issued Reload Warrants to purchase an aggregate of 799,991 shares of the Company’s common stock and Market Price Warrants to purchase an aggregate of 371,699 shares of the Company’s common stock. In association with the Private Transaction, the Company recorded warrant exchange expense of $1,402,174 representing the difference in the fair market value of the Original Warrants and the New Warrants, as an adjustment to additional paid-in-capital. Chardan acted as financial advisor on the Private Transaction in consideration for which Chardan received $363,617 and Chardan and its designees were New Warrants for 115,000 shares of the Company’s common stock. On October 3, 2017, the Company sold, in a registered direct offering, 1,647,691 shares of common stock at an offering price of $3.90 per share and, in a concurrent private placement, warrants to purchase an aggregate of 1,647,691 shares of common stock for gross proceeds of approximately $6,425,995 before deducting the placement agent fee and related offering expenses. On January 10, 2018, the Company issued warrants for 592,000 shares of the Company’s common stock in connection with the January 2018 Private Placement. The warrants were issued to the parties who purchased the Company’s common stock, as well as to Chardan and its designees who acted as placement agents of the deal. The warrants expire in five years and were exercisable immediately at an exercise price of $3.00 per share. On August 17, 2018, the Company issued warrants for 1,800,000 shares of the Company’s common stock in conjunction with the August 17, 2018 Securities Purchase Agreement. The warrants were issued to the parties who purchased the Company’s Secured Convertible Notes. The Warrants are not exercisable until after six months from the date of issuance and expire five and half years from the date of issuance. The Warrants have an exercise price of $3.00 per share. In the event of a “Fundamental Transaction” (as defined in the Warrants), the Investors have the right to receive the value of the Warrants as determined in accordance with the Black Scholes option pricing model. The Warrants are considered indexed to the Company’s own stock pursuant to ASC 815-40. The Warrants also met additional equity classification requirements and accordingly are accounted for as part of Company’s equity. On February 19, 2019, the Company entered into a securities purchase agreement with a certain accredited investor pursuant to which we sold 945,894 shares of common stock and warrants to purchase up to 945,894 shares of our common stock, or the registered warrants, to such investor (the “February 2019 Offering”). The Company received $1,757,552 in net proceeds from this offering. Each share of common stock was accompanied by a registered warrant to purchase one share of common stock at an exercise price of $2.12. Each share of common stock and accompanying registered warrant were sold at a combined purchase price of $2.12. The shares of common stock and registered warrants were purchased together and were issued separately and were immediately separable upon issuance. In a concurrent private placement, the Company also sold to the purchaser in the February 2019 Offering, warrants to purchase up to 945,894 shares of our common stock, or the private warrants. In connection with the February 2019 Offering and concurrent private placement, we entered into an amendment, waiver and consent agreement, or the “Amendment, Waiver and Consent Agreement,” with certain holders of our 10% Secured Convertible Notes due August 20, 2019, which were issued pursuant to a securities purchase agreement, dated August 17, 2018, by and among the Company and the purchasers identified on the signature pages thereto, or the notes purchase agreement. Pursuant to the Amendment, Waiver and Consent Agreement, such holders agreed to amend the notes purchase agreement, waive any applicable rights and remedies under the notes purchase agreement, and consent to the February 2019 Offering and concurrent private placement. In consideration for such Amendment, Waiver and Consent Agreement, we agreed to issue such holders warrants to purchase up to an aggregate amount of 1,800,000 shares of our common stock. Such warrants have an exercise price of $2.55 per share, will become exercisable commencing six months and one day from the date of issuance and will expire five (5) years from the date of issuance. The allocation of carrying basis between the Warrants issued and the Secured Convertible Notes was determined based on relative valuation. The carrying basis attributable to the Warrants to acquire common stock was $1,287,962 and was calculated using the Black-Scholes option pricing model. The following table summarizes the changes in the Company’s outstanding warrants during the three months ended June 30, 2019: Warrants Outstanding Number of Shares Exercise Price per Share Weighted Average Remaining Contractual Life Weighted Average Exercise Price per Share Aggregate Intrinsic Value Balance at December 31, 2018 5,899,389 $ 3.30 – 6.00 3.74 years $ 3.35 $ – Warrants Granted 3,691,788 $ 2.12 – 3.00 4.89 years $ 3.00 $ – Warrants Exercised – – – – – Warrants Expired 100,002 $ 6.00 – $ 6.00 $ – Balance at June 30, 2019 9,491,175 $ 2.12 – 6.00 3.82 years $ 3.05 $ – Exercisable December 31, 2018 5,899,389 $ 3.30 – 6.00 3.74 years $ 3.53 $ – Exercisable June 30, 2019 6,745,281 $ 2.12 – 6.00 3.49 years $ 3.30 $ –

15. Income Taxes

15. Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 15: Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740 Income Taxes (“Topic 740”), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operation in the provision for income taxes. As of June 30, 2019, and December 31, 2018, the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and in the state of California and Massachusetts. The Company is currently subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities since inception of the Company.

16. Commitment and Contingencie

16. Commitment and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingencies	Note 16: Commitment and Contingencies In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases.” The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. For practically all leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, which allows for an additional optional transition method where comparative periods presented in the financial statements in the period of adoption will not be restated and instead those periods will be presented under existing guidance in accordance with ASC 840, Leases. Management will use this optional transition method. As of January 1, 2019, management recorded lease liability of $2,071,903, right-of-use asset of $2,153,747, accumulated amortization of $124,070, a reversal of previously recorded deferred rent of $37,920 and the increase in accumulated deficit of $4,306. As of June 30, 2019, weighted-average lease term for operating leases equals to 75 months. Weighted-average discount rate equals to 11%. On February 6, 2018, the Company entered into an operating lease for 6,969 square feet of general office space at 131 South Rodeo Drive, Suite 250, Beverly Hills, CA 90212 pursuant to a 91-month lease that commenced on May 25, 2018. We will pay rent of $364,130 annually, subject to annual escalations of 3.5%. On December 28, 2018, the Company entered into a lease for 5,765 square feet of general office space at 8383 Wilshire Blvd., Suite 412, Beverly Hills, CA 90211 pursuant to a 6-month lease that commenced January 28, 2019. We will pay rent of $24,501 monthly. Effective January 21, 2019, the Company entered into a sublease for the 6,969 square feet of general office space located at 131 South Rodeo Drive, Suite 250, Beverly Hills, CA 90212 pursuant to an 83-month sublease that commenced on February 4, 2019, 2019. The subtenant will pay us rent of $422,321 annually, subject to annual escalations of 3.5%. On January 30, 2019, we entered into an operating lease for 5,838 square feet of general office space at 190 Cannon Drive, Suite 400, Beverly Hills, CA 90210 pursuant to a 96-month lease that is scheduled to commence on September 1, 2019. We will pay rent of $392,316 annually, subject to annual escalations of 3.5%. In addition, the Company has contractual commitments for employment agreements of certain employees. Rental expenses incurred for operating leases during the three months ended June 30, 2019 and June 30, 2018 were $176,664 and $71,093, respectively. Rental expenses incurred for operating leases during the six months ended June 30, 2019 and June 30, 2018 were $321,457 and $111,405, respectively. During the three months ended June 30, 2019, we received sub-lease income of $82,222. During the six months ended June 30, 2019, we received sub-lease income of $197,453. The following is a schedule of future minimum contractual obligations as of June 30, 2019, under the Company’s operating leases and employment agreements: 2020 2021 2022 2023 2024 Thereafter Total Operating Leases 385,991 398,611 410,141 424,495 439,353 540,386 2,598,977 Employment Contracts 393,595 322,950 322,950 282,581 – – 1,322,076 Total 779,586 721,561 733,091 707,076 439,353 540,386 3,921,053

17. Related Party Transactions

17. Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Note 17: Related Party Transactions On April 21, 2016, the Company entered into a merchandising and licensing agreement with Andy Heyward Animation Art (“AHAA”), whose principal is Andy Heyward, the Company’s Chief Executive Officer. The Company entered into a customary merchandise license agreement with AHAA for the use of characters and logos related to Warren Buffett’s Secret Millionaires Club Stan Lee’s Mighty 7 On October 1, 2016, Llama Productions LLC entered into an animation production services agreement with Mr. Heyward for services as a producer for which he is to receive $186,000 through the course of production of the Company’s animated series Llama Llama. On August 31, 2018 Llama Productions LLC entered into an animation production services agreement with Mr. Heyward for services as a producer for which he is to receive $124,000 through the course of production of the Company’s animated series Llama Llama. Season 2. Pursuant to his employment agreement dated November 16, 2018, Mr. Heyward is entitled to an Executive Producer fee of $12,400 per half hour episode for each episode he provides services as an executive producer. The first identified series under this employment agreement is Rainbow Rangers. Pursuant to his employment agreement dated November 16, 2018, Mr. Heyward is entitled to an Executive Producer fee of $12,400 per half hour episode for each episode he provides services as an executive producer. The second identified series under this employment agreement is the twenty-six half hour episodes of Rainbow Rangers: Season 2. On July 25, 2016, the Company entered into a consulting agreement with Foothill Entertainment, Inc. (“Foothill”), an entity whose Chairman is Gregory Payne, our former corporate secretary. The Company has engaged Foothill Entertainment, Inc. for a term of six months to assist in the distribution and commercial exploitation of its audiovisual content as well as for the preparation and attendance on behalf of the Company at the MIPJR and MIPCOM markets in Cannes. The agreement continues on a month-to-month basis following the initial term. Foothill receives $12,500 per month for these services. Subsequent to the end of the period, the consulting agreement with Foothill was terminated effective January 31, 2018. As of December 31, 2017, Gregory B. Payne, individually and via his ownership position in Foothill, owed to the Company $5,558 for expenditures made during the fourth quarter of 2017 related to the Brand Licensing Europe (“BLE”) and MIPCOM tradeshows. In addition, during the fourth quarter of 2017, Foothill acted as an agent on the Company’s behalf in licensing certain of our animated programs to certain broadcast networks for which Foothill owed to the Company $7,517 in license fees to be paid by the broadcaster to Foothill. Subsequent to the end of the period, the Company received a payment of $7,517 from Foothill as satisfaction of the open licensing invoice. Additionally, on February 28, 2018, Mr. Payne and the Company entered into an agreement whereby, among other things, Mr. Payne was entitled to be reimbursed for 100% of his expenses incurred at the BLE and MIPCOM tradeshows resulting in the Company owing $827 to Mr. Payne. As of December 31, 2018, no amounts are due to or from Mr. Payne or Foothill. As of June 30, 2019, $36,986 of accrued interest on the Secured Convertible Notes is included in the Due To Related Parties line item on our consolidated balance sheet.

18. Subsequent Events

18. Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 18: Subsequent Events Pursuant to FASB ASC 855, Management has evaluated all events and transactions that occurred from June 30, 2019 through the date of issuance of these financial statements. During this period, we did not have any significant subsequent events, except as disclosed below: On July 14, 2019, the Company issued 5,250 shares of the Company’s common stock valued at $1.15 per share to a vendor for consulting services rendered. These securities were issued in reliance on the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended. On July 16, 2019, the Company issued 25,000 shares of the Company’s common stock valued at $1.13 per share for corporate advisory services. These securities were issued in reliance on the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended. Amendment, Waiver and Consent On July 22, 2019, in connection with a proposed public offering of shares of common stock (the “August 2019 Offering ”), the Company entered into an amendment, waiver and consent agreement (the “Amendment”) with certain holders constituting (i) a majority-in-interest of the holders of its 10% Secured Convertible Notes due August 20, 2019 (the “Secured Convertible Notes”), which were issued pursuant to a Securities Purchase Agreement, dated as of August 17, 2018 and as amended on February 14, 2019, by and among us and certain accredited investors (the “August 2018 Purchasers”) (the “August 2018 SPA”) and (ii) 51% in interest of the shares of common stock issued pursuant to a Securities Purchase Agreement, dated as of January 8, 2018, by and among us and certain accredited investors (the “January 2018 SPA”). The August 2018 SPA contains a covenant that restricts us from issuing, entering into any agreement to issue or announcing the issuance or proposed issuance of any shares of common stock or common stock equivalents for an effective per share purchase price of common stock of less than $2.50 per share, subject to adjustment. The January 2018 SPA contains a covenant that restricts us from selling or granting any option to purchase, or selling or granting any right to reprice, or otherwise disposing of or issuing (or announcing any offer, sale, grant or any option to purchase or other disposition) any shares of common stock or common stock equivalents for an effective per share purchase price of common stock of less than $3.00 per share, subject to adjustment. Pursuant to the Amendment, such holders have agreed to amend the August 2018 SPA, the January 2018 SPA and the Secured Convertible Notes, waive any applicable rights and remedies under each of the August 2018 SPA and the January 2018 SPA, and consent to this offering in consideration for (i) a reduction in the conversion price of the Secured Convertible Notes from $2.50 per share to an amount equal to $1.515 and (ii) the issuance to the August 2018 Purchasers of new warrants to purchase the same number of shares of common stock that were issued to each August 2018 Purchaser pursuant to the August 2018 SPA (for an aggregate of 1,800,000 shares of common stock to all August 2018 Purchasers) at an exercise price per share equal to $1.14 and will become exercisable commencing six (6) months and one day from the date of issuance and will expire five (5) years from the date of issuance. In conjunction with the Amendment, Waiver and Consent, on July 22, 2019, the Company entered into an escrow agreement with a bank whereby the Company deposited $750,000 into an escrow account in favor of one of the Secured Convertible Note holders which guarantees that the note holders will be repaid at least $750,000 of the holders $1 million currently outstanding under the Secured Convertible Notes on or before August 20, 2019, the maturity date. Adjustment to Series A Convertible Preferred Stock Conversion Price In connection with the issuance of the warrants described above, the conversion price of the Company’s outstanding shares of Series A Convertible Preferred Stock was reduced from $2.12 to $1.14. On August 14, 2019, in exchange for freelance animation services, the Company issued a total of 481,481 shares of common stock to a vendor valued at $0.81 per share. These securities were issued in reliance on the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended.

2. Summary of Significant Acc_2

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying 2019 and 2018 condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Genius Brands International, Inc., its wholly-owned subsidiaries A Squared LLC, Llama Productions LLC and Rainbow Rangers Productions LLC, as well as its interest in Stan Lee Comics, LLC (“Stan Lee Comics”). All significant inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 Business Combinations.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
Financial Statement Reclassification	Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these condensed consolidated financial statements to conform to current period classifications.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid debt instruments with initial maturities of three months or less to be cash equivalents. As of June 30, 2019, and 2018, Restricted Cash totaled $401,599 and $0, respectively. Restricted cash increased $1,056 during the six months ended June 30, 2019 due to interest earned. As of December 31, 2018, Restricted Cash totaled $400,543. Restricted Cash represents funds held in a cash account to be used solely for the production of Llama Llama
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts Accounts receivable are presented on the consolidated balance sheets net of estimated uncollectible amounts. The Company assesses its accounts receivable balances on a quarterly basis to determine collectability and records an allowance for estimated uncollectible accounts in an amount approximating anticipated losses based on historical experience and future expectations. Individual uncollectible accounts are written off against the allowance when collection of the individual accounts appears doubtful. The Company had an allowance for doubtful accounts of $0 for each of the periods ended June 30, 2019 and December 31, 2018.
Inventories	Inventories Inventories are stated at the lower of average cost or net realizable value and consist of finished goods such as DVDs, CDs and other products. A reserve for slow-moving and obsolete inventory is established for all inventory deemed potentially non-saleable. The current inventory is considered properly valued and saleable. The Company concluded that there was an appropriate reserve for slow moving and obsolete inventory of $26,097 at each of the periods ended June 30, 2019 and December 31, 2018.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Depreciation on property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from two to seven years. Maintenance, repairs, and renewals, which neither materially add to the value of the assets nor appreciably prolong their lives, are charged to expense as incurred. Gains and losses from any dispositions of property and equipment are reflected in the consolidated statement of operations.
Right of Use Leased Assets	Right of Use Leased Assets In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases.” The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, which allows for an additional optional transition method where comparative periods presented in the financial statements in the period of adoption will not be restated and instead those periods will be presented under existing guidance in accordance with ASC 840, Leases. Management used this optional transition method. As of January 1, 2019, management recorded lease liability of $2,071,903, right-of-use asset of $2,153,747, accumulated amortization of $124,070, a reversal of previously recorded deferred rent of $37,920 and the increase in accumulated deficit of $4,306.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the estimated fair value of net assets acquired in business combinations accounted for by the purchase method. In accordance with FASB ASC 350 Intangibles Goodwill and Other, goodwill and certain intangible assets are presumed to have indefinite useful lives and are thus not amortized, but subject to an impairment test annually or more frequently if indicators of impairment arise. The Company completes the annual goodwill and indefinite-lived intangible asset impairment tests at the end of each fiscal year. To test for goodwill impairment, we are required to estimate the fair market value of each of our reporting units, of which we have one. While we may use a variety of methods to estimate fair value for impairment testing, our primary method is discounted cash flows. We estimate future cash flows and allocations of certain assets using estimates for future growth rates and our judgment regarding the applicable discount rates. Changes to our judgments and estimates could result in a significantly different estimate of the fair market value of the reporting units, which could result in an impairment of goodwill or indefinite lived intangible assets in future periods. Other intangible assets have been acquired, either individually or with a group of other assets, and were initially recognized and measured based on fair value. Annual amortization of these intangible assets is computed based on the straight-line method over the remaining economic life of the asset.
Debt and Attached Equity-Linked Instruments	Debt and Attached Equity-Linked Instruments The Company measures issued debt on an amortized cost basis, net of debt premium/discount and debt issuance costs amortized using the effective interest rate method or the straight-line method when the latter does not lead to materially different results. The Company accounts for the proceeds from the issuance of convertible notes payable in accordance with FASB ASC 470-20 Debt with Conversion and Other Options. Pursuant to FASB ASC 470-20, the intrinsic value of the embedded conversion feature (beneficial conversion interest), which is in the money on the commitment date is included in the discount to debt and amortized to interest expense over the term of the note agreement. When the conversion option is not separated, the Company accounts for the entire convertible instrument including debt and the conversion feature as a liability. The Company analyzes freestanding equity-linked instruments including warrants attached to debt to conclude whether the instrument meets the definition of the derivative and whether it is considered indexed to the Company’s own stock. If the instrument is not considered indexed to Company’s stock, it is classified as an asset or liability recorded at fair value. If the instrument considered indexed to Company’s stock, the Company analyzes additional equity classification requirements per ASC 815-40 Contract’s in Entity’s Own Equity. When the requirements are met the instrument is recorded as part of the Company’s equity, initially measured based on its relative fair value with no subsequent re-measurement. When the equity classification requirements are not met, the instrument is recorded as an asset or liability and is measured at fair value with subsequent changes in fair value recorded in earnings. When required, the Company also considers the bifurcation guidance for embedded derivatives per FASB ASC 815-15 Embedded Derivatives.
Films and Television Costs	Film and Television Costs The Company capitalizes production costs for episodic series produced in accordance with FASB ASC 926-20 Entertainment-Films - Other Assets - Film Costs. Accordingly, production costs are capitalized at actual cost and then charged against revenue based on the initial market revenue evidenced by a firm commitment over the period of commitment. The Company expenses all capitalized costs that exceed the initial market firm commitment revenue in the period of delivery of the episodes. The Company capitalizes production costs for films produced in accordance with FASB ASC 926-20 Entertainment - Films - Other Assets - Film Costs. Accordingly, production costs are capitalized at actual cost and then charged against revenue quarterly as a cost of production based on the relative fair value of the film(s) delivered and recognized as revenue. The Company evaluates its capitalized production costs annually and limits recorded amounts by their ability to recover such costs through expected future sales. Additionally, for both episodic series and films, from time to time, the Company develops additional content, improved animation and bonus songs/features for its existing content. After the initial release of the film or episodic series, the costs of significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard ASC 606 (Topic 606), Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606. Accordingly, the Company recorded a cumulative effect adjustment to Accumulated Deficit in the amount of $206,247. The impact to the Company’s financial statements for the three and six months ended June 30, 2018 resulting from the adoption of Topic 606 as of January 1, 2018 was a reduction of revenue in the amount $68,184 and $136,367, respectively, and a corresponding reduction in costs in the amount of $14,317 and $28,634, respectively, from the amounts reported. The amounts prior to adoption were not recognized pursuant to Topic 606 and would have been reported pursuant to Topic 605. The Company has identified the following six material and distinct performance obligations: · License rights to exploit Functional Intellectual Property (Functional Intellectual Property or “functional IP” is defined as intellectual property that has significant standalone functionality, such as the ability to be played or aired. Functional intellectual property derives a substantial portion of its utility from its significant standalone functionality.) · License rights to exploit Symbolic Intellectual Property (Symbolic Intellectual Property or “symbolic IP” is intellectual property that is not functional as it does not have significant standalone use and substantially all of the utility of symbolic IP is derived from its association with the entity’s past or ongoing activities, including its ordinary business activities, such as the Company’s licensing and merchandising programs associated with its animated content.) · Options to renew or extend a contract at fixed terms. (While this performance obligation is not significant for the Company’s current contracts, it could become significant in the future.) · Options on future seasons of content at fixed terms. (While this performance obligation is not significant for the Company’s current contracts, it could become significant in the future.) · Fixed fee advertising revenue generated from the Genius Brands Network · Variable fee advertising revenue generated from the Genius Brands Network As a result of the change, beginning January 1, 2018, the Company began recognizing revenue related to licensed rights to exploit functional IP in two ways. For minimum guarantees, the Company recognizes fixed revenue upon delivery of content and the start of the license period. For functional IP contracts with a variable component, the Company estimates revenue such that it is probable there will not be a material reversal of revenue in future periods. Revenue under these types of contracts was previously recognized when royalty statements were received. The Company began recognizing revenue related to licensed rights to exploit symbolic IP substantially similarly to functional IP. Although it has a different recognition pattern from functional IP, the valuation method is substantially the same, depending on the nature of the license. The Company sells advertising on its Kid Genius channel in the form of either flat rate promotions or impressions served. For flat rate promotions with a fixed term, the Company recognizes revenue when all five revenue recognition criteria under FASB ASC 606 are met. For impressions served, the Company delivers a certain minimum number of impressions on the channel to the advertiser for which the advertiser pays a contractual CPM per impression. Impressions served are reported to the Company on a monthly basis, and revenue is reported in the month the impressions are served. The Company recognizes revenue related to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer.
Direct Operating Costs	Direct Operating Costs Direct operating costs include costs of our product sales, non-capitalizable film costs, film and television cost amortization expense, and participation expense related to agreements with various animation studios, post-production studios, writers, directors, musicians or other creative talent with which we are obligated to share net profits of the properties on which they have rendered services.
Share-Based Compensation	Share-Based Compensation As required by FASB ASC 718 - Stock Compensation, the Company recognizes an expense related to the fair value of our share-based compensation awards, including stock options, using the Black-Scholes calculation as of the date of grant. The Company has elected to use the graded attribution method for awards which are in-substance, multiple awards based on the vesting schedule.
Earnings Per Share	Earnings Per Share Basic earnings (loss) per common share (“EPS”) is calculated by dividing net income (loss) applicable to common shareholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing net income (loss) applicable to common shareholders by the weighted average number of shares of common stock outstanding, plus the assumed exercise of all dilutive securities using the treasury stock or “as converted” method, as appropriate. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive.
Income Taxes	Income Taxes Deferred income tax assets and liabilities are recognized based on differences between the financial statement and tax basis of assets and liabilities using presently enacted tax rates. At each balance sheet date, the Company evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets and records a valuation allowance that reduces the deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized.
Concentration of Risk	Concentration of Risk The Company’s cash is maintained at two financial institutions and from time to time the balances for this account exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insured amount. Balances on interest bearing deposits at banks in the United States are insured by the FDIC up to $250,000 per account. As of June 30, 2019, the Company had three accounts with a combined uninsured balance of $1,773,097. As of December 31, 2018, the Company had three accounts with a combined uninsured balance of $2,183,875. For the three and six months ended June 30, 2019, the Company had two customers whose total revenue each exceeded 10% of the total consolidated revenue. Those customers accounted for 52% and 57% of the total revenue for the three and six months ended June 30, 2019, respectively. The Company had three customers that represented 75% of accounts receivable as of June 30, 2019. The Company had one customer who accounted for 98% of accounts receivable balance as of December 31, 2018.
Fair value of financial instruments	Fair value of financial instruments The carrying amounts of cash, receivables, accounts payable, and accrued liabilities approximate fair value due to the short-term maturity of the instruments. The carrying amount of the Production Loan Facility approximates fair value since the debt carries a variable interest rate that is tied to either the current Prime or LIBOR rates plus an applicable spread. The Company adopted FASB ASC 820 as of January 1, 2008, for financial instruments measured at fair value on a recurring basis. FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: · Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; · Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and · Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards the Test for Goodwill Impairment,” which requires an entity to perform a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The standard is effective January 1, 2020, with early adoption as of January 1, 2017 permitted. In July 2017, the FASB issued ASU No. 2017-11 addressing, among other matters, accounting for certain financial instruments. One of the amendments in this guidance intended to reduce the complexity associated with the issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the Board determined that a down round feature (as defined) would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. ASU 2017-11 is effective for public business entities for fiscal year beginning after December 15, 2018. The Company adopted ASU 2017-11 on January 1, 2019. The adoption of ASU 2017-11 did not have a material impact on the Company’s consolidated financial statements or cash flows. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC 820. The update removes some disclosures, modifies others, and adds some new disclosure requirements. The amendments in this ASU are effective for all entities for fiscal years, and interim period within those fiscal years, beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which supersedes ASC 505-05 and expands the scope of ASC 718 to include all share-based payment arranges related to the acquisition of goods and services from both nonemployees and employee. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most of its requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. ASC 2018-07 is effective for all entities for fiscal year beginning after December 15, 2018, and interim periods within that fiscal year. The Company adopted ASU No. 2018-07 on January 1, 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements or cash flows. In March 2019, the FASB issued ASU No. 2019-02, Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters Intangibles-Goodwill and Other (Subtopic 920-350). The update aligns the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. The amendments also require that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. The amendments in this update require that an entity test a film or license agreement for program material within the scope of Subtopic 920-350 for impairment at a film group level when the film or license agreement is predominantly monetized with other films and/or license agreements. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Various other accounting pronouncements have been recently issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries and are not expected to have a material effect on our financial position, results of operations, or cash flows.

3. Property and Equipment, Net

3. Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	The Company has property and equipment as follows as of June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Furniture and Equipment $ 19,419 $ 12,385 Computer Equipment 143,245 138,883 Leasehold Improvements 2,935 – Software 15,737 15,737 Property and Equipment, Gross 181,336 167,005 Less Accumulated Depreciation (110,216 ) (91,371 ) Property and Equipment, Net $ 71,120 $ 75,634

4. Right of Use Leased Asset (T

4. Right of Use Leased Asset (Tables)	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Schedule of right of use asset	June 30, 2019 Right Of Use Leased Assets Right Of Use Asset Office Lease Asset $ 2,142,863 Printer Lease Asset 12,374 Right Of Use Asset, Gross 2,155,237 Less Accumulated Amortization Office Lease Accumulated Amortization 208,611 Printer Lease Accumulated Amortization 5,490 Accumulated Amortization 214,101 Right Of Use Asset, Net $ 1,941,136

5. Film and Television Costs,_2

5. Film and Television Costs, net (Tables)	6 Months Ended
	Jun. 30, 2019
Film And Television Costs Net
Film and Television activity table	Total Film and Television Costs, Net as of December 31, 2017 $ 2,777,088 Cumulative Effect of Adoption of ASC 606 (219,472 ) Additions to Film and Television Costs 6,644,728 Capitalized Interest 43,510 Film Amortization Expense (1,079,723 ) Film and Television Costs, Net as of December 31, 2018 8,166,131 Additions to Film and Television Costs 1,497,688 Capitalized Interest 109,110 Film Amortization Expense (621,986 ) Film and Television Costs, Net as of June 30, 2019 $ 9,150,943

6. Goodwill and Intangible As_2

6. Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Net Tables Abstract
Schedule of Intangible Assets	The Company had the following intangible assets as of June 30, 2019, and December 31, 2018: June 30, 2019 December 31, 2018 Trademarks (a) $ 129,831 $ 129,831 Product Masters (a) 64,676 64,676 Other Intangible Assets (a) 272,529 272,529 Intangible Assets, Gross 467,036 467,036 Less Accumulated Amortization (b) (396,541 ) (377,048 ) Intangible Assets, Net $ 70,495 $ 89,988 (a) Pursuant to FASB ASC 350-30-35, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. Through June 30, 2019, the Company has not recognized any impairment expense related to these assets. (b) During the three months ended June 30, 2019 and June 30, 2018, the Company recognized $9,720 and $15,279, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. During the six months ended June 30, 2019 and June 30, 2018, the Company recognized $19,493 and $28,278, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.
Expected Future Ingtangible Asset Amortization	Expected future intangible asset amortization as of June 30, 2019 is as follows: Fiscal Year: 2019 $ 18,912 2020 37,835 2021 9,698 2022 1,861 2023 1,465 2024 724 Total $ 70,495

8. Accrued Liabilities - Curr_2

8. Accrued Liabilities - Current (Tables)	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Other accrued liabilities	June 30, 2019 December 31, 2018 Other Accrued Expenses (a) $ 236,545 $ 52,865 Accrued Salaries and Wages (b) 257,184 137,825 Total Accrued Liabilities – Current $ 493,729 $ 190,690 (a) Represents accrued interest, insurance liability and lease deposit on sub-lease. (b) Represents accrued salaries and wages and accrued vacation payable to employees for 2019 and accrued vacation payable to employees in 2018

13. Stock Options (Tables)

13. Stock Options (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	The following table summarizes the changes in the Company’s stock option plan during the six months ended June 30, 2019: Options Outstanding Number of Shares Exercise Price per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Weighted Average Exercise Price per Share Balance at December 31, 2018 1,259,415 $ 2.09 - 12.00 2.50 years $ – $ 7.39 Options Granted 81,000 $ 1.99 3.0 years $ – $ 1.99 Options Exercised – – – – – Options Cancelled – – – – – Options Expired – – – – – Balance at June 30, 2019 1,340,415 $ 1.99 - 12.00 1.94 years $ – $ 7.14 Exercisable December 31, 2018 1,070,869 $ 2.70 - 9.00 2.96 years $ – $ 7.44 Exercisable June 30, 2019 1,145,965 $ 2.82 - 9.00 1.56 years $ – $ 8.01
Assumptions used	The fair value of these options was determined to be $117,797 using the Black-Scholes option pricing model based on the following assumptions: Exercise Price $ 1.99 Dividend Yield 0% Volatility 125% Risk-free interest rate 2.44% Expected life of options 3 years

14. Warrants (Tables)

14. Warrants (Tables)	6 Months Ended
	Jun. 30, 2019
Warrants and Rights Note Disclosure [Abstract]
Schedule of warrant activity	The following table summarizes the changes in the Company’s outstanding warrants during the three months ended June 30, 2019: Warrants Outstanding Number of Shares Exercise Price per Share Weighted Average Remaining Contractual Life Weighted Average Exercise Price per Share Aggregate Intrinsic Value Balance at December 31, 2018 5,899,389 $ 3.30 – 6.00 3.74 years $ 3.35 $ – Warrants Granted 3,691,788 $ 2.12 – 3.00 4.89 years $ 3.00 $ – Warrants Exercised – – – – – Warrants Expired 100,002 $ 6.00 – $ 6.00 $ – Balance at June 30, 2019 9,491,175 $ 2.12 – 6.00 3.82 years $ 3.05 $ – Exercisable December 31, 2018 5,899,389 $ 3.30 – 6.00 3.74 years $ 3.53 $ – Exercisable June 30, 2019 6,745,281 $ 2.12 – 6.00 3.49 years $ 3.30 $ –

16. Commitment and Contingenc_2

16. Commitment and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Future maturities of operating leases	The following is a schedule of future minimum contractual obligations as of June 30, 2019, under the Company’s operating leases and employment agreements: 2020 2021 2022 2023 2024 Thereafter Total Operating Leases 385,991 398,611 410,141 424,495 439,353 540,386 2,598,977 Employment Contracts 393,595 322,950 322,950 282,581 – – 1,322,076 Total 779,586 721,561 733,091 707,076 439,353 540,386 3,921,053

1. Organization and Business (D

1. Organization and Business (Details Narrative) - USD ($)	2 Months Ended	3 Months Ended				6 Months Ended
	Feb. 19, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Net loss		$ (1,715,152)	$ (5,007,482)	$ (2,189,783)	$ (1,263,464)	$ (6,722,632)	$ (3,453,247)
Net cash used in operating activities						(2,550,140)	(3,365,437)
Accumulated deficit		(57,751,666)				(57,751,666)		$ (50,702,486)
Stockholders equity		9,190,612	$ 10,767,514	14,237,909	$ 15,593,687	9,190,612	14,237,909	12,839,771	$ 15,039,845
Current assets		4,352,922				4,352,922		5,579,582
Cash, Cash Equivalents, and Restricted Cash		2,631,334		$ 3,525,433		2,631,334	$ 3,525,433	3,085,026	$ 7,498,072
Current liabilities		7,848,987				7,848,987		4,607,919
Working capital		$ (3,496,065)				$ (3,496,065)		$ 971,663
Securities Purchase Agreement [Member] | Private Placement [Member] | Accredited Investors [Member]
Stock issued new, shares	945,894
Proceeds from issuance of equity	$ 1,757,552
Warrants issued, shares	945,894
Warrans issued for offering costs	93,000
Securities Purchase Agreement [Member] | Private Placement [Member] | The Purchaser [Member]
Warrants issued, shares	945,894

2. Significant Accounting Polic

2. Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Jan. 02, 2018
Restricted Cash	$ 401,599		$ 401,599	$ 400,543	$ 0
Allowance for doubtful accounts	0		0	0
Reserve for obsolete inventory	26,097		26,097	26,097
Lease liability	2,071,903		2,071,903			$ 2,071,903
Right of use asset	1,941,136		1,941,136	0		2,153,747
Accumulated amortization of right to use asset	214,101		214,101			124,070
Deferred rent						$ (37,920)
Cumulative effect of adoption of ASC		$ 4,306	(4,306)
Uninsured cash balances	$ 1,773,097		$ 1,773,097	$ 2,183,875
Sales Revenue, Net [Member] | Two Customer [Member]
Concentration risk percentage	52.00%		57.00%
Accounts Receivable [Member] | One Customer
Concentration risk percentage				98.00%
Accounts Receivable [Member] | Three Customer [Member]
Concentration risk percentage			75.00%

3. Property and Equipment, Ne_2

3. Property and Equipment, Net (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Property and equipment, gross	$ 181,336	$ 167,005
Less Accumulated Depreciation	(110,216)	(91,371)
Property and Equipment, Net	71,120	75,634
Furniture and Equipment [Member]
Property and equipment, gross	19,419	12,385
Computer Equipment [Member]
Property and equipment, gross	143,245	138,883
Leasehold Improvements [Member]
Property and equipment, gross	2,935	0
Software [Member]
Property and equipment, gross	$ 15,737	$ 15,737

3. Property and Equipment, Ne_3

3. Property and Equipment, Net (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 9,725	$ 4,601	$ 18,845	$ 23,697

4. Right of Use Leased Asset (D

4. Right of Use Leased Asset (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Jan. 02, 2018
Notes to Financial Statements
Office lease asset	$ 2,142,863
Printer lease asset	12,374
Right of use asset, gross	2,155,237
Office lease accumulated amortization	208,611
Printer lease accumulated amortization	5,490
Total accumulated amortization	214,101		$ 124,070
Right of use asset, net	$ 1,941,136	$ 0	$ 2,153,747

4. Right of Use Leased Asset _2

4. Right of Use Leased Asset (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Jan. 02, 2018
Notes to Financial Statements
Lease liability	$ 2,071,903	$ 2,071,903		$ 2,071,903
Right of use asset	1,941,136	1,941,136	$ 0	2,153,747
Accumulated amortization of right to use asset	214,101	214,101		124,070
Deferred rent				$ (37,920)
Amortization expense	$ 52,973	$ 88,539

5. Film and Television Costs an

5. Film and Television Costs and Capitalized Product Development in Process (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Film And Television Costs Net
Film and Television costs, beginning balance	$ 8,166,131	$ 2,777,088
Cumulative Effect of Topic (606) Adjustment		(219,472)
Additions to Film and Television Costs	1,497,688	6,644,728
Capitalized interest	109,110	43,510
Film amortization expense	(621,986)	(1,079,723)
Film and Television costs, ending balance	$ 9,150,943	$ 8,166,131

5. Film and Television Costs,_3

5. Film and Television Costs, net (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Film And Television Costs Net
Film amortization expense	$ 733,956	$ 192,803	$ 621,986	$ 765,139

6. Goodwill and Intangible As_3

6. Goodwill and Intangible Assets, Net (Details - Intangibles) - USD ($)		Jun. 30, 2019	Dec. 31, 2018
Intangible assets		$ 467,036	$ 467,036
Less Accumulated Amortization	[1]	(396,541)	(377,048)
Net Intangible Assets		70,495	89,988
Trademarks [Member]
Intangible assets	[2]	129,831	129,831
Product Masters [Member]
Intangible assets	[2]	64,676	64,676
Other Intangible Assets [Member]
Intangible assets	[2]	$ 272,529	$ 272,529
[1]	During the three months ended June 30, 2019 and June 30, 2018, the Company recognized $9,720 and $15,279, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. During the six months ended June 30, 2019 and June 30, 2018, the Company recognized $19,493 and $28,278, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.
[2]	Pursuant to FASB ASC 350-30-35, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. Through June 30, 2019, the Company has not recognized any impairment expense related to these assets.

6. Goodwill and Intangible As_4

6. Goodwill and Intangible Assets (Details - future amortization)	Jun. 30, 2019USD ($)
Future intangible asset amortization
2019	$ 18,912
2020	37,835
2021	9,698
2022	1,861
2023	1,465
2024	724
Total	$ 70,495

6. Goodwill and Intangible As_5

6. Goodwill and Intangible Assets, Net (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Trademarks, Product Masters and Other Intangible Assets [Member]
Amortization expense	$ 9,720	$ 15,279	$ 19,492	$ 28,278

7. Deferred Revenue (Details Na

7. Deferred Revenue (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Deferred revenue	$ 5,007,289	$ 4,925,756
Future Royalty [Member]
Deferred revenue	3,371,312	3,371,312
Distribution Rights [Member]
Deferred revenue	$ 3,489,583	$ 3,489,583

8. Accrued Liabilities - Curr_3

8. Accrued Liabilities - Current (Details) - USD ($)		Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Other Accrued Expenses	[1]	$ 236,545	$ 52,865
Accrued Salaries and Wages	[2]	257,184	137,825
Total accrued liabilities - Current		$ 493,729	$ 190,690
[1]	Represents accrued interest, insurance liability and lease deposit on sub-lease.
[2]	Represents accrued salaries and wages and accrued vacation payable to employees for 2019 and accrued vacation payable to employees in 2018

9. Secured Convertible Notes (D

9. Secured Convertible Notes (Details Narrative) - USD ($)	2 Months Ended	3 Months Ended		6 Months Ended		8 Months Ended
	Feb. 19, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Aug. 17, 2018
Loss on extinguishment of debt		$ 0	$ 0	$ (3,352,155)	$ 0
Purchase Agreement [Member] | Amendment to February 2019 Offering [Member] | Warrants [Member]
Warrants issued, shares	1,800,000
Warrant exercise price	$ 2.55
Loss on extinguishment of debt	$ (2,064,193)
Fair value of warrants	$ 1,287,962
Purchase Agreement [Member] | Secured Convertible Notes [Member]
Proceeds from convertible debt						$ 4,500,000
Debt maturity date						Aug. 20, 2019
Debt interest rate						10.00%
Conversion price per share						$ 2.50
Beneficial conversion feature						$ 1,561,111
Purchase Agreement [Member] | Warrant [Member]
Warrants issued, shares						1,800,000
Warrant exercise price						$ 3

10. Production Loan Facility (D

10. Production Loan Facility (Details Narrative) - Llama Productions [Member] - USD ($)	6 Months Ended	7 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2019	Aug. 08, 2016	Sep. 28, 2018	Dec. 31, 2018
Credit line initiation date		Aug. 8, 2016
Credit line maximum		$ 5,275,000
Credit line term		40 months
Credit line interest rate		Prime plus 1% or one, three, or six month LIBOR plus 3.25%
Gross borrowings during the period	$ 2,642,414			$ 2,241,759
Payment of financing costs	29,304			63,561
Proceeds from line of credit	$ 2,613,110			$ 2,178,198
Amendment 2 [Member]
Credit line maximum			$ 1,768,010
Loan and Security Agreement [Member]
Credit line maximum			$ 4,231,989
Credit line interest rate			1.0% plus the Prime Rate
Maturity date			Mar. 31, 2021
Interest rate range on advances	5.75% and 6.14%

12. Stockholders' Equity (Detai

12. Stockholders' Equity (Details Narrative) - USD ($)	Jan. 08, 2018	Feb. 19, 2019	Aug. 17, 2018
February 2019 Offering [Member]
Proceeds from issuance of equity		$ 1,757,552
Securities Purchase Agreement [Member] | Price Decrease [Member]
Beneficial conversion feature			$ 353,333
Common Stock | February 2019 Offering [Member]
Stock issued new, shares		945,894
Warrant [Member] | February 2019 Offering [Member]
Warrants issued		945,894
Warrant [Member] | February 2019 Offering [Member] | The Purchaser [Member]
Warrants issued		945,894
Warrant [Member] | February 2019 Offering [Member] | The Purchaser [Member] | Price Decrease [Member]
Beneficial conversion feature		$ 322,240
Private Placement [Member] | Common Stock
Stock issued new, shares	592,000
Private Placement [Member] | Warrants [Member]
Warrants issued	1,800,000

13. Stock Options (Details-Opti

13. Stock Options (Details-Option activity) - Stock Options [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Stock Options
Number of Options outstanding beginning balance	1,259,415
Number of Options Granted	81,000
Number of Options Exercised	0
Number of Options Cancelled	0
Number of Options Expired	0
Number of Options outstanding ending balance	1,340,415	1,259,415
Number of Options exercisable	1,145,965	1,070,869
Exercise Price Per Share
Exercise price per share, range	$2.09 - 12.00
Exercise price per share, options granted	$1.99
Exercise prices at period end	$1.99 - 12.00
Exercise price per share, exercisable	$2.82 - 9.00	$2.70 - 9.00
Weighted Average Remaining Contractual Life	1 year 11 months 8 days	2 years 6 months
Weighted average remaining contractual life, options granted	3 years
Weighted average remaining contractual life, exercisable	1 year 6 months 21 days	2 years 11 months 15 days
Aggregate Intrinsic Value
Aggregate intrinsic value, options outstanding	$ 0
Aggregate intrinsic value, exercisable	$ 0
Weighted Average Exercise Price per Share beginning balance	$ 7.39	$ 8.14
Weighted Average Exercise Price Options Granted	1.99
Weighted Average Exercise Price per Share ending balance	7.14	7.39
Weighted Average Exercise Price per Share Exercisable	$ 8.01	$ 7.44

13. Stock Options (Details - As

13. Stock Options (Details - Assumptions) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2019$ / shares
Exercise price	$ 1.99
Dividend yield	0.00%
Volatility	125.00%
Risk-free interest rate	2.44%
Expected life	3 years

13. Stock Options (Details Narr

13. Stock Options (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-based compensation expense	$ 93,156	$ 68,722
2015 Plan [Member]
Shares authorized under plan	2,167,667
Stock Options [Member]
Options granted	81,000
Fair value of options granted	$ 117,797
Unvested share-based compensation	$ 257,695

14. Warrants (Details)

14. Warrants (Details) - Warrant [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Warrant
Number of Warrants outstanding beginning balance	5,899,389
Warrants Granted	3,691,788
Warrants Exercised	0
Warrants Expired	100,002
Number of Warrants outstanding ending balance	9,491,175	5,899,389
Number of Warrants exercisable	6,745,281	5,899,389
Exercise Price Per Share
Warrant exercise price per share, beginning balance	$3.30 - 6.00
Warrant exericse price per share, granted	$2.12 - 3.00
Warrant exercise price per share, exercised	$6.00
Warrant exercise price per share, ending balance	$2.12 - 6.00
Warrant exercise price per share, exercisable	$2.12 - 6.00	$3.30 - 6.00
Weighted Average Remaining Contractual Life
Weighted average remaining contractual life, warrants outstanding	3 years 9 months 25 days	3 years 8 months 26 days
Weighted average remaining contractual life, warrants granted	4 years 10 months 21 days
Weighted average remaining contractual life, exercisable	3 years 5 months 27 days	3 years 8 months 26 days
Weighted Average Exercise Price per Share
Warrant weighted average exercise price per share, beginning balance	$ 3.35
Warrant weighted average exercise price per share, granted	3
Warrant weighted average exercise price per share, expired	6
Warrant weighted average exercise price per share, ending balance	3.05	$ 3.35
Warrant weighted average exercise price per share, exercisable	$ 3.30	$ 3.53
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding	$ 0	$ 0
Aggregate instrinsic value, exercisable	$ 0	$ 0

14. Warrants (Details Narrative

14. Warrants (Details Narrative) - USD ($)	Jan. 08, 2018	Feb. 19, 2019	Aug. 17, 2018
February 2019 Offering [Member]
Proceeds from issuance of equity		$ 1,757,552
Securities Purchase Agreement [Member] | Price Decrease [Member]
Beneficial conversion feature			$ 353,333
Common Stock | February 2019 Offering [Member]
Stock issued new, shares		945,894
Warrant [Member] | February 2019 Offering [Member]
Warrants issued		945,894
Warrant value		$ 1,287,962
Warrant [Member] | February 2019 Offering [Member] | The Purchaser [Member]
Warrants issued		945,894
Warrant [Member] | February 2019 Offering [Member] | The Purchaser [Member] | Price Decrease [Member]
Beneficial conversion feature		$ 322,240
Private Placement [Member] | Common Stock
Stock issued new, shares	592,000
Private Placement [Member] | Warrants [Member]
Warrants issued	1,800,000

15. Income Taxes (Details Narra

15. Income Taxes (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Uncertain tax positions	$ 0	$ 0
Deferred tax assets, net	$ 0	$ 0

16. Commitment and Contingenc_3

16. Commitment and Contingencies (Details - Minimum lease commitments)	Jun. 30, 2019USD ($)
Employment Contracts [Member]
Other commitment remainder of 2018	$ 393,595
Other commitment 2019	322,950
Other commitment 2020	322,950
Other commitment 2021	282,581
Other commitment 2022	0
Other commitment thereafter	0
Total commitment	1,322,076
Operating leases and Employment Agreements [Member]
Other commitment remainder of 2018	779,586
Other commitment 2019	721,561
Other commitment 2020	733,091
Other commitment 2021	707,076
Other commitment 2022	439,353
Other commitment thereafter	540,386
Total commitment	3,921,053
Operating Leases [Member]
Operating lease remainder of 2020	385,991
Operating lease 2021	398,611
Operating lease 2022	410,141
Operating lease 2023	424,495
Operating lease 2024	439,353
Operating lease thereafter	540,386
Operating lease remaining	$ 2,598,977

16. Commitment and Contingenice

16. Commitment and Contingenices (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Rental expenses	$ 176,664	$ 71,093	$ 321,457	$ 111,405
Sublease income	$ 82,222		$ 197,453
Weighted average lease term operating lease	75 months		75 months
Weighted average discount rate operating lease	11.00%		11.00%

17. Related Party (Details Narr

17. Related Party (Details Narrative)	6 Months Ended
	Jun. 30, 2019USD ($)
Accrued interest	$ 36,986
Heyward [Member] | Animation Production Services [Member]
Consulting fees	53,330
Due to related parties	42,392
Heyward [Member] | Executive Producer [Member]
Due to related parties	$ 322,400