ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2014

ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]

ACCRUED EXPENSES AND OTHER LIABILITIES

9.           ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following:

	March 31,  2014		December 31,  2013
Royalties payable	$	155,208	$	127,708
Accrued compensation		135,000		-
Accrued accounting fees		80,000		82,141
Commissions payable		21,975		21,975
Accrued interest payable		241,487		216,518
Other payables		170,008		134,645
Accrued expenses and other liabilities, net	$	803,678	$	582,987

Excluded above is approximately $235,000 and $244,000 of accrued expenses and other liabilities at March 31, 2014 and December 31, 2013, respectively, that fall under the Liability Purchase Agreement ("LPA") with ASC Recap, LLC ("ASC Recap"), and are expected to be repaid using the process as described in Note 10.  Because there can be no assurance that the Company will be successful in completing this process, the Company retains ultimate responsibility for these liabilities, until fully paid down.