Quarterly report pursuant to Section 13 or 15(d)

5. Inventory

5. Inventory
6 Months Ended
Jun. 30, 2014
Inventory Disclosure [Abstract]  
5. 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. On July 14, 2014, the Company employed Stone Newman in the newly created position of President – Worldwide Consumer Products wherein he will manage all consumer products, licensing and merchandising sales and rights for the Company’s brands and programming (See Note 18 – Subsequent Events).


As of June 30, 2014, the Company determined that a portion of its inventory may not be saleable and recorded an additional reserve of $174,963 bringing the total reserve to $274,241. This additional reserve has been recorded as a loss on inventory.