Quarterly report pursuant to Section 13 or 15(d)

10. Accrued Liabilities (Details)

10. Accrued Liabilities (Details) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Accrued Salaries and Wages    
Accrued Salaries and Wages $ 119,758 $ 59,958
Disputed Trade Payables    
Disputed Trade Payables 925,000 [1] 925,000 [1]
Services Advance    
Services Advance 739,883 [2] 0 [2]
Accrued Expenses    
Total Accrued Expenses 207,112 219,275
Total Accrued Liabilities $ 1,991,753 $ 1,204,233
[1] As part of the Merger, the Company assumed certain liabilities from a previous member of A Squared Entertainment, LLC 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.
[2] 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.