Quarterly report pursuant to Section 13 or 15(d)

10. Short Term Debt - Related Parties

10. Short Term Debt - Related Parties
6 Months Ended
Jun. 30, 2014
Related Party Transactions [Abstract]  
Short Term Debt - Related Parties

As part of the Merger, the Company acquired certain liabilities from A Squared. From time to time, A Squared required short-term advances to fund its operations and provide working capital from its founder, the Company’s current Chief Executive Officer, Andrew Heyward. As of June 30, 2014, these advances totaled $412,893, compared to $516,659 as of December 31, 2013. On March 3, 2014, the Company repaid a portion of the advances to its Chief Executive Officer, Andrew Heyward, in the amount of $100,000.


These advances are interest free and have no stated maturity. The Company has applied an imputed interest rate of 6% in accordance with ASC 835-30-45. During the three and six months ended June 30, 2014, the Company recognized imputed interest expense of $6,207 and $13,370, respectively.