Quarterly report pursuant to Section 13 or 15(d)

11. Short Term Debt - Related Parties

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11. Short Term Debt - Related Parties
 3 Months Ended
Mar. 31, 2015
Debt Disclosure [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 March 31, 2015, these advances totaled $411,164, compared to $411,008 as of December 31, 2014.

 

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 three months ended March 31, 2015 and 2014, the Company recognized imputed interest expense of $6,090 and $7,163 as a contribution to additional paid-in capital, respectively.