Quarterly report pursuant to sections 13 or 15(d)

Note 3: Accrued Liabilities

Note 3: Accrued Liabilities
6 Months Ended
Jun. 30, 2011
Other Liabilities Disclosure [Text Block]
Note 3:  Accrued Liabilities

Accrued Salaries and Wages as of June 30, 2011 total $199,099 and $62,551 as of December 31, 2010.  Debenture Interest accrued and unpaid for the original $2.5 million principal balance is $19,049 as of June 30, 2011 and December 31, 2010.  Interest on the debentures was terminated effective July 24, 2009 in accordance with the conversion agreement upon establishment of a secondary trading market for our common stock.  Other Accrued Liabilities totaling $599,116 as of June 30, 2011 and $221,739 as of December 31, 2010, include a reserve for product returns, music royalty payments, financed insurance costs, and commissions to outside representatives on net sales and royalty income, as well as unearned revenue as of June 30, 2011 for a prepayment from a customer.  The reserve for returned product represents an estimate of potential product returns in future periods and is evaluated for reasonableness each reporting period.