| Schedule of Intangible Assets |
| |
|
9/30/2016 |
|
|
12/31/2015 |
|
| Identifiable Artistic-Related Assets (a) |
|
$ |
1,740,000 |
|
|
$ |
1,740,000 |
|
| Trademarks (b) |
|
|
129,831 |
|
|
|
129,831 |
|
| Product Masters (b) |
|
|
64,676 |
|
|
|
64,676 |
|
| Other Intangible Assets (b) |
|
|
185,019 |
|
|
|
181,220 |
|
| Intangible Assets, Gross |
|
|
2,119,526 |
|
|
|
2,115,727 |
|
| Less Accumulated Amortization (c) |
|
|
(255,284 |
) |
|
|
(197,521 |
) |
| Intangible Assets, Net |
|
$ |
1,864,242 |
|
|
$ |
1,918,206 |
|
| |
(a) |
In association with the Merger, 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 during the fourth quarter of 2013. Based on certain legal, regulatory,
contractual, and economic factors, the Company has deemed these assets to be indefinite-lived. Hence, pursuant to ASC 350-30,
these assets are not subject to amortization and are tested annually for impairment. Through September 30, 2016, the Company
has not recognized any impairment expense related to these assets. |
| |
(b) |
Pursuant to 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. During the three and nine
months ended September 30, 2016 and 2015, the Company did not recognize any impairment of these assets. |
| |
(c) |
During the three months ended September 30, 2016 and 2015, the
Company recognized $19,448 and $19,999, respectively, in amortization expense related to the Trademarks, Product Masters,
and Other Intangible Assets. During the nine months ended September 30, 2016 and 2015, the Company recognized $57,763 and
$50,322, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. |
|