| Accrued Liabilities |
As
of September 30, 2014 and December 31, 2013, the Company has the following accrued liabilities:
| |
|
9/30/2014 |
|
|
12/31/2013 |
|
| Accrued
Salaries and Wages |
|
|
|
|
|
|
|
|
| Accrued
Salaries and Wages |
|
$ |
119,758 |
|
|
$ |
59,958 |
|
| |
|
|
|
|
|
|
|
|
| Disputed
Trade Payables |
|
|
|
|
|
|
|
|
| Disputed Trade Payables
(a) |
|
|
925,000 |
|
|
|
925,000 |
|
| |
|
|
|
|
|
|
|
|
| Services
Advance |
|
|
|
|
|
|
|
|
| Services Advance
(b) |
|
|
739,883 |
|
|
|
– |
|
| |
|
|
|
|
|
|
|
|
| Accrued
Expenses |
|
|
|
|
|
|
|
|
| Other Accrued Expenses |
|
|
207,112 |
|
|
|
219,275 |
|
| |
|
|
|
|
|
|
|
|
| Total
Accrued Liabilities |
|
$ |
1,991,753 |
|
|
$ |
1,204,233 |
|
| |
(a) |
As part of the Merger, the Company assumed certain liabilities
from a previous member of A Squared which has claimed certain liabilities totaling $925,000. The Company disputes the basis
for this liability and has not heard from the claimant for two years. |
| |
(b) |
During the first quarter of 2014, the Company entered into an
exclusive three year agreement with Sony DADC, the optical disc manufacturing and fulfillment arm of Sony, to provide all
CD, DVD and BD replication, packaging and distribution to Genius Brands International’s direct customers. Under the
terms of the long-term, exclusive supply chain services agreement, the Company will order a minimum level of disc replication,
packaging and distribution services for its content across all physical media, including DVD, CD, and Blu-ray from Sony DADC.
As consideration for these minimum order levels, the Company will receive a total of $1,500,000, $750,000 of which was received
during the first quarter of 2014 with the remaining $750,000 due by January 17, 2015. At the end of the term, the
Company is obligated to repay a pro-rata portion of the advance if it has not ordered a minimum number of DVD/CD units during
the term. |
|