| Accrued Liabilities |
As of March 31, 2014 and December 31, 2013, the Company has the
following accrued liabilities:
| |
|
3/31/2014 |
|
|
12/31/2013 |
|
| Accrued Salaries and Wages |
|
|
|
|
|
|
|
|
| Accrued Salaries and Wages |
|
$ |
72,815 |
|
|
$ |
59,958 |
|
| |
|
|
|
|
|
|
|
|
| Disputed Trade Payables |
|
|
|
|
|
|
|
|
| Disputed Trade Payables (a) |
|
|
925,000 |
|
|
|
925,000 |
|
| |
|
|
|
|
|
|
|
|
| Services Advance |
|
|
|
|
|
|
|
|
| Services Advance (b) |
|
|
750,000 |
|
|
|
– |
|
| |
|
|
|
|
|
|
|
|
| Accrued Expenses |
|
|
|
|
|
|
|
|
| Allowance for Sales Returns |
|
|
43,000 |
|
|
|
43,000 |
|
| Distribution Arrangements Payable |
|
|
17,674 |
|
|
|
13,905 |
|
| Deferred Revenue |
|
|
67,435 |
|
|
|
– |
|
| Royalties Payable |
|
|
4,953 |
|
|
|
9,638 |
|
| Music Advances (c) |
|
|
450,000 |
|
|
|
450,000 |
|
| Other Accrued
Expenses |
|
|
157,930 |
|
|
|
187,996 |
|
| Total Accrued Expenses |
|
|
740,992 |
|
|
|
704,539 |
|
| |
|
|
|
|
|
|
|
|
| Total Accrued
Liabilities |
|
$ |
2,488,807 |
|
|
$ |
1,689,497 |
|
| |
(a) |
As part of the Merger, the Company assumed certain liabilities from
a previous member of A Squared Entertainment, LLC which has claimed certain liabilities totaling $925,000. The Company disputes
the basis for this liability and has not heard from the claimant for two years. |
| |
(b) |
During the three months ended March 31, 2014, the Company entered
into an exclusive long-term 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 will receive a total of $1,500,000, $750,000 of which was received
during the first quarter of 2014 with the remaining $750,000 due by January 17, 2015. |
| |
(c) |
The Company assumed these accrued expenses in association with the
Merger. |
|