Quarterly report pursuant to Section 13 or 15(d)

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

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5. Goodwill and Intangible Assets, Net (Details - Intangibles) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Intangible assets $ 2,119,526 $ 2,119,527
Less Accumulated Amortization [1] (304,889) (273,877)
Net Intangible Assets 1,814,638 1,845,650
Product Masters [Member]    
Intangible assets [2] 64,676 64,676
Identifiable artistic-related assets [Member]    
Intangible assets [3] 1,740,000 1,740,000
Trademarks [Member]    
Intangible assets [2] 129,831 129,831
Other Intangible Assets [Member]    
Intangible assets [2] $ 185,020 $ 185,020
[1] During the three months ended June 30, 2017 and 2016, the Company recognized $13,315 and $19,184, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. During the six months ended June 30, 2017 and 2016, the Company recognized $31,012 and $38,315, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.
[2] 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 June 30, 2017, the Company has not recognized any impairment expense related to these assets.
[3] 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 June 30, 2017, the Company has not recognized any impairment expense related to these assets.