| Accrued Liabilities |
As of June 30, 2014 and
December 31, 2013, the Company has the following accrued liabilities:
| |
|
6/30/2014 |
|
|
12/31/2013 |
|
| Accrued Salaries and Wages |
|
|
|
|
|
|
|
|
| Accrued Salaries and Wages |
|
$ |
62,788 |
|
|
$ |
59,958 |
|
| |
|
|
|
|
|
|
|
|
| Disputed Trade Payables |
|
|
|
|
|
|
|
|
| Disputed Trade Payables (a) |
|
|
925,000 |
|
|
|
925,000 |
|
| |
|
|
|
|
|
|
|
|
| Services Advance |
|
|
|
|
|
|
|
|
| Services Advance (b) |
|
|
741,758 |
|
|
|
– |
|
| |
|
|
|
|
|
|
|
|
| Accrued Expenses |
|
|
|
|
|
|
|
|
| Allowance for Sales Returns |
|
|
28,672 |
|
|
|
43,000 |
|
| Distribution Arrangements Payable |
|
|
17,674 |
|
|
|
13,905 |
|
| Deferred Revenue |
|
|
58,759 |
|
|
|
– |
|
| Royalties Payable |
|
|
4,953 |
|
|
|
9,638 |
|
| Music Advances (c) |
|
|
672,000 |
|
|
|
450,000 |
|
| Other Accrued Expenses |
|
|
110,497 |
|
|
|
187,996 |
|
| Total Accrued Expenses |
|
|
892,555 |
|
|
|
704,539 |
|
| |
|
|
|
|
|
|
|
|
| Total Accrued Liabilities |
|
$ |
2,622,101 |
|
|
$ |
1,689,497 |
|
| |
(a) |
As part of the Merger, 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 and has not heard from the claimant for two years. |
| |
(b) |
During the first quarter of 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. |
| |
(c) |
In the Merger, the Company assumed from A Squared an April 2013 agreement for an advance of $450,000 for the music rights of certain A Squared properties. During the second quarter of 2014, the Company executed an agreement with the same counterparty for another music advance of $250,000 covering the properties held by the Company prior to the Merger. Pursuant to ASC 928-430-25-1, the Company began recognizing revenue under these agreements on May 1, 2014. |
|