Contingencies and Commitments

12 Months Ended

Dec. 31, 2015

Contingencies and Commitments [Text Block]

14. Contingencies and Commitments

(a) Severance Commitment

The Company has employment agreements with certain employees that provide severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. As of December 31, 2015, the Company's potential minimum cash obligation to these employees was approximately $1,417,000.

(b) Operating Lease Commitment

The Company is committed to paying leased property costs related to our offices in China as follows:

		Leased Property
Year ending December 31,		Costs
2016	$	539,000
Total	$	539,000

(c) Licensed Content Commitment

The Company is committed to paying content costs through 2017 as follows:

Years ending December 31,		Content Costs
2016	$	5,082,000
2017		200,000
Total	$	5,282,000

(d) Advertising and Marketing Expenses

The Company is committed to paying advertising and marketing expenses as follows:

		Advertising and
		Marketing
Year ending December 31,		Expenses
2016	$	450,000
Total	$	450,000

(e) Lawsuits and Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.