2. Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of contract assets and liabilities

The following table depicts the composition of our contract assets and liabilities as of September 30, 2019, and December 31, 2018:

	September 30, 2019		December 31, 2018
Animation contract assets	$	1,042,548	$	1,040,309
NetSpective contract assets		14,868		74,743
Other contract assets		8,701		8,441
Total contract assets	$	1,066,117	$	1,123,493
Animation contract liabilities	$	406,585	$	380,749
NetSpective contract liabilities		700,699		727,979
Other contract liabilities		11,500		11,500
Total contract liabilities	$	1,118,784	$	1,120,228

Schedule of financial assets and liabilities on a recurring basis

The following table summarizes the change in the Company’s financial assets and liabilities measured at fair value as of September 30, 2019, and December 31, 2018.

	Level 1		Level 2		Level 3
Earnout liability	$	–	$	–	$	429,000

Fair value, December 31, 2017	$	429,000
Change in fair value		–
Fair value, December 31, 2018	$	429,000
Change in fair value		–
Fair value, September 30, 2019	$	429,000

Property and equipment useful lives

The estimated useful lives of property and equipment are as follows:

Computers, software, and office equipment	1 – 5 years
Machinery and equipment	3 – 5 years
Vehicles	5 years
Furniture and fixtures	5 – 10 years
Leasehold improvements	Lesser of the lease term or estimated useful life