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Note 3: Accrued Liabilities
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6 Months Ended |
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Jun. 30, 2011
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| 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.
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