Quarterly report pursuant to Section 13 or 15(d)

5. Inventory

5. Inventory
9 Months Ended
Sep. 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 to manage all consumer products, licensing and merchandising sales and rights for the Company’s brands and programming.


As of September 30, 2014, the Company had recorded a total reserve of $274,241. 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.