Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

16.	Commitments and Contingencies

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 September 30, 2012, the Company's potential minimum cash obligation to these employees was approximately $915,000.

The Company is committed to paying leased property costs related to our China offices through 2015 as follows:

	Leased
	Property
Years ending December 31,	Costs
2012 (three months)	$	82,092
2013		362,008
2014		73,342
2015		18,968
Total	$	536,410

The Company is committed to paying product related costs through 2015 as follows:

	Product
	Related
Years ending December 31,	Costs
2012 (three months)	$ 86,750
2013	1,401,032
2014	1,870,063
2015	1,949,126
2016	924,126
Total	$ 6,231,097

According to the purchase agreement with "Shandong Fu Ren", Zhong Hai Video was obligated to pay RMB 1,000,000 (USD 157,270) to acquire 51% ownership of Shanghai Tianduo, of which RMB 700,000 (USD 110,646) remains.

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.