Annual report pursuant to Section 13 and 15(d)

6. Goodwill and Intangible Assets, Net (Details - Intangibles)

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6. Goodwill and Intangible Assets, Net (Details - Intangibles) - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Intangible assets $ 2,119,527 $ 2,115,727
Less Accumulated Amortization [1] (273,877) (197,521)
Net Intangible Assets 1,845,650 1,918,206
Amortization expense 76,356 69,453
Identifiable artistic-related assets    
Intangible assets [2] 1,740,000 1,740,000
Trademarks [Member]    
Intangible assets [3] 129,831 129,831
Product Masters    
Intangible assets 64,676 64,676
Other Intangible Assets    
Intangible assets $ 185,020 $ 181,220
[1] During the years ended December 31, 2016 and 2015, the Company recognized $76,356 and $69,453, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.
[2] In connection with the Merger in 2013, the Company acquired $1,740,000 of Identifiable Artistic-Related Assets. These assets, related to certain properties owned by A Squared and assumed by the Company, were valued using an independent firm. Based on certain legal, regulatory, contractual, and economic factors, the Company has deemed these assets to be indefinite-lived. Hence, pursuant to FASB ASC 350-30, these assets are not subject to amortization and are tested annually for impairment. Through December 31, 2016, the Company has not recognized any impairment expense related to these assets.
[3] 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 December 31, 2016, the Company has not recognized any impairment expense related to these assets.