Annual report pursuant to Section 13 and 15(d)

Consolidated Balance Sheets

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Consolidated Balance Sheets - USD ($)
Dec. 31, 2017
Dec. 31, 2016
Current Assets:    
Cash and Cash Equivalents $ 6,929,399 $ 1,887,921
Restricted Cash 568,673 1,000,000
Accounts Receivable, net 2,893,902 122,910
Other Receivable 160,545 0
Inventory, net 17,589 6,562
Prepaid and Other Assets 264,818 359,395
Total Current Assets 10,834,926 3,376,788
Property and Equipment, net 94,666 90,461
Accounts Receivable 1,687,500 0
Other Receivable 96,327 0
Film and Television Costs, net 2,777,088 2,260,964
Intangible Assets, net 1,856,280 1,845,650
Goodwill 10,365,805 10,365,805
Total Assets 27,712,592 17,939,668
Current Liabilities:    
Accounts Payable 453,201 648,638
Accrued Expenses [1] 1,717,970 249,482
Deferred Revenue 453,927 410,662
Accrued Salaries and Wages 168,549 132,827
Disputed Trade Payable [2] 925,000 925,000
Service Advance [3] 0 1,489,583
Total Current Liabilities 3,718,647 3,856,192
Long Term Liabilities:    
Deferred Revenue 4,631,456 2,695,946
Production Loan Facility, net 4,322,643 1,332,004
Total Liabilities 12,672,746 7,884,142
Commitments & Contingencies (Note 13)
Stockholders' Equity    
Preferred Stock, $0.001 par value, 10,000,000 shares authorized, respectively; 3,530 and 4,895 shares issued and outstanding, respectively 4 5
Common Stock, $0.001 par value, 233,333,334 shares authorized, respectively; 7,610,794 and 4,010,649 shares issued and outstanding, respectively 7,611 4,011
Common Stock to Be Issued 24 24
Additional Paid in Capital 56,588,822 46,697,005
Accumulated Deficit (41,551,497) (36,642,761)
Accumulated Other Comprehensive Loss (5,118) (2,758)
Total Stockholders' Equity 15,039,846 10,055,526
Total Liabilities & Stockholders' Equity $ 27,712,592 $ 17,939,668
[1] Other Accrued Expenses include estimates of expenses incurred but not yet recorded. The increase in Other Accrued Expenses from the year ended December 31, 2016 to December 31, 2017 relates to estimates of final dubbing costs and participation expense related to our Llama Llama property.
[2] 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.
[3] 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.