Contingencies and Commitments

3 Months Ended

Sep. 30, 2011

Contingencies and Commitments

Note 10 — Contingencies and Commitments

Publisher Agreements

The Company has entered into agreements with publishers wherein the publishers have granted the Company an exclusive right to sell reprints of certain of each of the publishers’ publications. In exchange for the grant of rights the Company has agreed to pay to the publishers, in aggregate, the following amounts:

Fiscal Year Ending June 30	Payment Amount
2012	$	3,345,000
2013		4,650,000
2014		5,000,000
2015		5,400,000
2016		2,800,000
Total	$	21,150,000

During the three months ended September 30, 2011, the Company paid the publishers $45,000, in aggregate, for these rights.  In addition, the Company will have to pay additional amounts to the publishers if certain sales targets are achieved under the contracts.

The Company is amortizing the cost of each of these contracts each reporting period on a straight line basis over the terms of the agreements including the period being reported on.  During the three months ended September 30, 2011, the Company amortized $1,303,594 of these costs and $246,094 is recorded as a prepaid expense as of September 30, 2011.