Quarterly report pursuant to Section 13 or 15(d)

7. Deferred Revenue

7. Deferred Revenue
6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Deferred Revenue

Note 7: Deferred Revenue


As of June 30, 2020 and December 31, 2019, the Company had total short term and long term deferred revenue of $5,171,243 and $5,108,953, 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, 2020 and December 31, 2019 is the $3,367,086 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.