ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Note 3 - ACCRUED EXPENSES

Accrued liabilities consisted of the following at:

	September 30, 2016		December 31, 2015
Accrued vacation	$	65,827	$	64,461
Accrued royalties		408,771		408,134
Technology payable		18,000		18,000
Other		1,141		1,417
	$	493,739	$	492,012

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 $191,347 and $195,033 at September 30, 2016 and December 31, 2015, respectively.

As of September 30, 2016 and December 31, 2015, 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.