Annual report pursuant to Section 13 and 15(d)

1. Organization and Business (Details Narrative)

v3.8.0.1
1. Organization and Business (Details Narrative) - USD ($)
 12 Months Ended
Jan. 08, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Net loss   $ (4,908,736) $ (6,213,135)  
Net Cash Used in Operating Activities   (7,186,870) (3,716,277)  
Accumulated deficit   (41,551,497) (36,642,761)  
Stockholders equity   15,039,846 10,055,526 $ 14,121,584
Current assets   10,834,926 3,376,788  
Working capital   7,116,279 (479,404)  
Cash, cash equivalents and restricted cash   7,498,072    
Current liabilities   3,718,647 3,856,192  
Trade payables [1]   925,000 925,000  
Service advance [2]   0 $ 1,489,583  
Gross proceeds from exercise of warrants   $ 3,866,573    
Direct Offering [Member]        
Issuance of Common Stock in Registered Direct Offering, net (in shares)   1,647,691    
Gross proceeds from sale of equity   $ 6,425,995    
Warrants issued   1,647,691    
January 2018 Private Placement [Member]        
Issuance of Common Stock in Registered Direct Offering, net (in shares)   1,647,691    
January 2018 Private Placement [Member] | Subsequent Event [Member] | Securities Purchase Agreement [Member] | Accredited Investors [Member]        
Gross proceeds from sale of equity $ 1,800,000      
Warrants issued 592,000      
Private Transaction [Member]        
Gross proceeds from exercise of warrants   $ 3,866,573    
Issuance of Common Stock in Registered Direct Offering, net (in shares)   1,171,689    
SPHE [Member]        
Issuance of Common Shares for Debt Extinguishment (in shares)   301,231    
Issuance of Common Shares for Debt Extinguishment, debt extinguished   $ 1,489,583    
[1] As part of the Merger in 2013, 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. As of December 31, 2017, the Company believes that the statute of limitations applicable to the assertion of any legal claim relating to the collection of these liabilities has expired and therefore believes this liability is uncollectible.
[2] During the first quarter of 2014, the Company entered into an exclusive three-year agreement with DADC to provide all CD, DVD and Blu-ray replication, packaging and distribution to the Company's direct customers. Under the terms of the long-term, exclusive supply chain services agreement, the Company will order a minimum level of disk replication, packaging and distribution services for its content across all physical media, including DVD, CD, and Blu-ray from 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.