ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

NOTE 3 - ACCRUED EXPENSES

Accrued liabilities consisted of the following at:

	June 30, 2017		December 31, 2016
Accrued vacation	$	71,686	$	66,194
Accrued royalties		411,452		410,533
Technology payable		18,000		18,000
Other		7,275		746
	$	508,413	$	495,473

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 $127,192 and $127,201 at June 30, 2017 and December 31, 2016, respectively.

As of June 30, 2017 and December 31, 2016, 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.