| Accrued Liabilities |
As of September
30, 2015 and December 31, 2014, the Company has the following accrued liabilities:
| |
|
9/30/2015 |
|
|
12/31/2014 |
|
| Accrued Salaries and
Wages |
|
|
|
|
|
|
| Accrued
Salaries and Wages |
|
$ |
85,620 |
|
|
$ |
50,288 |
|
| |
|
|
|
|
|
|
|
|
| Disputed
Trade Payables |
|
|
|
|
|
|
|
|
| Disputed Trade Payables
(a) |
|
|
925,000 |
|
|
|
925,000 |
|
| |
|
|
|
|
|
|
|
|
| Services
Advance |
|
|
|
|
|
|
|
|
| Services Advance
(b) |
|
|
1,489,583 |
|
|
|
739,583 |
|
| |
|
|
|
|
|
|
|
|
| Accrued
Expenses |
|
|
|
|
|
|
|
|
| Other Accrued Expenses |
|
|
409,512 |
|
|
|
283,582 |
|
| |
|
|
|
|
|
|
|
|
| Total
Accrued Liabilities |
|
$ |
2,909,715 |
|
|
$ |
1,998,453 |
|
| (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. |
| (b) |
During the first quarter of 2014, the
Company entered into an exclusive three year 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 received a total of $1,500,000, $750,000
during the first quarter of 2014 and $750,000 during the first quarter of 2015. At the end of the term, the Company is obligated
to repay a pro-rata portion of the advance if it has not ordered a minimum number of DVD/CD units during the term. |
|