Annual report pursuant to Section 13 and 15(d)

7. Deferred Revenue

7. Deferred Revenue
12 Months Ended
Dec. 31, 2016
Deferred Revenue Disclosure [Abstract]  
Deferred Revenue

As of December 31, 2016, and 2015, the Company had total short term and long term deferred revenue of $3,106,608 and $958,539, 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 December 31, 2016 is the $2,000,000 advance against future royalty that Sony paid to the Company in the first quarter of 2016.