Salaries and Wages represent accrued vacation payable to employees.
As part of the Merger
in 2013, 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. As of June 30, 2018, the Company believes that the statute
of limitations applicable to the assertion of any legal claim relating to the collection of these liabilities has expired
and therefore believes this liability is uncollectible.
Other Accrued Expenses
include estimates of expenses incurred but not yet recorded.