5. Film and Television Costs, Net

9 Months Ended

Sep. 30, 2019

Film And Television Costs Net

Film and Television Costs, Net

Note 5: Film and Television Costs, Net

As of September 30, 2019, the Company had net Film and Television Costs of $9,450,233, compared to $8,166,131 at December 31, 2018. The increase relates primarily to the production and development of Rainbow Rangers season 2 and Llama Llama Season 2, offset by the amortization of film costs associated with the revenue recognized for Thomas Edison’s Secret Lab, Llama Llama Seasons 1 and 2, and Rainbow Rangers season 1.

During the three months ended September 30, 2019 and 2018, the Company recorded Film and Television Cost amortization expense of $1,285,237 and $268,425, respectively. During the nine months ended September 30, 2019 and 2018, the Company recorded Film and Television Cost amortization expense of $1,907,222 and $1,033,392, respectively.

The following table highlights the activity in Film and Television Costs of September 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		3,140,559
Capitalized Interest		50,765
Film Amortization Expense		(1,907,222	)
Film and Television Costs, Net as of September 30, 2019	$	9,450,233