On July 11, 2012, the Company entered into a license agreement with an individual pursuant to which the Company (i) acquired the exclusive right to use the licensor’s image in connection with the development, production, distribution, advertisement, promotion and sale of products and (ii) the licensor agreed to provide certain ancillary services in connection with the marketing and promotion of the licensed products. The license agreement remains in effect through February 29, 2016.

During the term of the license agreement and as consideration for the grant of the license the Company has agreed to pay the licensor a royalty rate depending on the product sold on all net sales of all products during the contract term. In addition the Company has agreed to pay a guaranteed minimum royalty payment of $600,000 over the life of the agreement, depending on the launch date of various products in accordance with the following schedule and subject to annual minimum amounts:

As part of the license agreement, $100,000 was prepaid and is presented net of amortization of $100,000 under prepaid royalty as of March 31, 2014.

On April 25, 2013, the Company entered into a license agreement with an entity pursuant to which the Company (i) acquired the exclusive right to use the licensor’s image in connection with the development, production, distribution, advertisement, promotion and sale of products and (ii) the licensor agreed to provide certain ancillary services in connection with the marketing and promotion of the licensed products. The license agreement remains in effect through April 16, 2016.

During the term of the license agreement and as consideration for the grant of the license the Company has agreed to pay the licensor a royalty rate depending on the product sold on all net sales of all products during the contract term. In addition the Company has agreed to pay a guaranteed minimum royalty payment of $100,000 over the life of the agreement, depending on the launch date of various products in accordance with the following schedule and subject to annual minimum amounts:

As part of the license agreement, $10,000 was prepaid and is presented net of amortization of $5,590 under prepaid royalty as of March 31, 2014.

On May 9, 2012, the Company entered into a license agreement with three individuals pursuant to which the Company (i) acquired the exclusive right to use the licensors’ images in connection with the development, production, distribution, advertisement, promotion and sale of products and (ii) the licensors agreed to provide certain ancillary services in connection with the marketing and promotion of the licensed products. The license agreement remains in effect through November 30, 2016. The Company has the option to extend the term of the license agreement for an additional period of eighteen months.

During the term of the license agreement and as consideration for the grant of the license the Company has agreed to pay the licensors a single digit royalty depending on the product sold on all wholesale sales of all products during the contract term. In addition the Company has agreed to pay a guaranteed minimum royalty payment of $4,686,125 or $4,985,000 over the life of the agreement, depending on the launch date of various products in accordance with the following schedule and subject to annual minimum amounts:

In addition to the royalty payments and guaranteed minimum royalty payments, the Company granted the licensors warrants to purchase 100,000 common shares of the Company’s common stock on a cashless exercise basis.

As part of the license agreement, $1,000,000 was prepaid during period ended June 30, 2012 and is presented net of amortization of $1,000,000 under prepaid royalty as of March 31, 2014.

The table below provides information concerning obligations of our contractual commitment, as of March 31, 2014, over the life of the agreements, depending on the launch date of various products in accordance with the contract periods per the license agreements and subject to annual minimum amounts:

	Total		Less than 1 year		1 – 3 years		3 - 5 years		More than 5 years
License agreement obligations	$	4,879,560	$	1,301,250	$	3,578,310	$	0	$	0
Operating lease obligation	$	0	$	0	$	0	$	0	$	0
Total	$	4,879,560	$	1,301,250	$	3,578,310	$	0	$	0

In addition to the above license agreement obligations, the Company has accrued $439,344 for royalty fees owed as of March 31, 2014, per the contract period terms under the licensing agreements. The Company recognized royalty expense of $413,915 and $25,429 for the three and nine month period ended March 31, 2014.