ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

NOTE 3 - ACCRUED EXPENSES

Accrued liabilities consisted of the following at:

	June 30, 2015		December 31, 2014
Accrued vacation	$	69,298	$	68,344
Accrued royalties		408,034		406,790
Technology payable		18,000		18,000
Other		5,711		2,181
	$	501,043	$	495,315

Accrued royalties consist of amounts owed to other parties with whom the Company has revenue-sharing agreements or from whom it licenses certain trademarks or copyrights. 

Unearned royalties consist of royalties received from licensees, which have not yet been earned. Unearned royalties were $198,679 and $202,499 at June 30, 2015 and December 31, 2014, respectively. 

As of June 30, 2015 and December 31, 2014, the Company had technology payable of $18,000 resulting from a technology transfer agreement with an unrelated party entered into in June 2011, payable in 24 installments of $1,500 without interest.