Quarterly report pursuant to Section 13 or 15(d)

3. Inventory

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3. Inventory
6 Months Ended
Jun. 30, 2016
Inventory Disclosure [Abstract]  
Inventory

During the second quarter of 2014, the Company began a strategic initiative to restructure its product sales business by phasing out the direct sale of physical products including DVDs and CDs and shifting to a licensing model. In addition to nominal changes to the reserve made during the normal course of business, during the second quarter of 2014, the Company determined that a portion of its inventory may not be saleable and recorded an additional reserve of $174,963 which was recorded as a loss on inventory. As of June 30, 2016 and December 31, 2015, the Company had recorded a total reserve of $26,116 and $28,813, respectively.