Quarterly report pursuant to sections 13 or 15(d)

8. Accrued Liabilities (Details)

8. Accrued Liabilities (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Accrued Salaries and Wages    
Accrued Salaries and Wages $ 72,815 $ 59,958
Disputed Trade Payables    
Disputed Trade Payables 925,000 [1] 925,000 [1]
Services Advance    
Services Advance 750,000 [2] 0
Accrued Expenses    
Allowance for Sales Returns 43,000 43,000
Distribution Arrangements Payable 17,674 13,905
Deferred Revenue 67,435 0
Royalties Payable 4,953 9,638
Music Advances 450,000 [3] 450,000 [3]
Other Accrued Expenses 157,930 187,996
Total Accrued Expenses 740,992 704,539
Total Accrued Liabilities $ 2,488,807 $ 1,689,497
[1] As part of the Merger, the Company assumed certain liabilities from a previous member of A Squared Entertainment, LLC which has claimed certain liabilities totaling $925,000. The Company disputes the basis for this liability and has not heard from the claimant for two years.
[2] During the three months ended March 31, 2014, the Company entered into an exclusive long-term agreement with Sony DADC, the optical disc manufacturing and fulfillment arm of Sony, to provide all CD, DVD and BD replication, packaging and distribution to Genius Brands International's direct customers. Under the terms of the long-term, exclusive supply chain services agreement, the Company will order a minimum level of disc replication, packaging and distribution services for its content across all physical media, including DVD, CD, and Blu-ray from Sony DADC. As consideration for these minimum order levels, the Company will receive a total of $1,500,000, $750,000 of which was received during the first quarter of 2014 with the remaining $750,000 due by January 17, 2015.
[3] The Company assumed these accrued expenses in association with the Merger.