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Prepaid Royalty
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9 Months Ended | ||||||
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Mar. 31, 2013
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| Prepaid Royalty [Abstract] | |||||||
| PREPAID ROYALTY | NOTE 3. PREPAID ROYALTY
During the nine months ended March 31, 2013, the Company entered into a licensing agreement with an individual acquiring the exclusive right to use the licensor’s image in connection with the development, production, distribution, advertisement, promotion and sale of products and obtain certain ancillary services of the licensor. The licensing agreement remains in effect through February 29, 2016.
During the term of the licensing agreement and as consideration for the grant of rights and license the licensor’s image, the Company has agreed to pay the licensor depending on the product sold, a royalty rate on all net sales of all products within the contract term. In addition the Company has agreed to pay a guaranteed minimum royalty payment of $600,000 depending on launch date of various products in accordance with the following schedule, but subject to adjustments:
As part of the licensing agreement, $100,000 was prepaid and is recorded under Prepaid Royalty as of March 31, 2013. |