7. Deferred Revenue
|6 Months Ended|
Jun. 30, 2019
|Deferred Revenue Disclosure [Abstract]|
Note 7: Deferred Revenue
As of June 30, 2019, and December 31, 2018, the Company had total short term and long term deferred revenue of $5,007,289 and $4,925,756 respectively. Deferred revenue includes both (i) variable fee contracts with licensees and customers in which the Company had collected advances and minimum guarantees against future royalties and (ii) fixed fee contracts. The Company recognizes revenue related to these contracts when all revenue recognition criteria have been met. Included in the deferred revenue balance as of June 30, 2019 and December 31, 2018 is $3,371,312 which is the remaining balance from the total $3,489,583 advance against future royalty that Sony paid to the Company for both the foreign and domestic distribution rights.
The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef