ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Note 4 - ACCRUED EXPENSES

Accrued expenses consisted of the following at December 31:

	2016		2015
Accrued vacation	$	66,194	$	64,461
Accrued royalties		410,533		408,134
Technology payable		18,000		18,000
Other		746		1,417
	$	495,473	$	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 $127,201 and $195,033 at December 31, 2016 and 2015, respectively.

As of December 31, 2016 and 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.