Composition of Certain Financial Statement Captions

6 Months Ended

Feb. 28, 2017

Note 2 - Composition of Certain Financial Statement Captions

Property and Equipment

Property and equipment consisted of the following:

	February 28, 2017			August 31, 2016

Software	$	1,673,497		$	1,804,257
Servers, computers, and other related equipment		153,824			153,824
Leasehold improvements		1,675			1,675
		1,828,996			1,959,756
Less accumulated depreciation and amortization		(1,668,927	)		(1,597,512	)
Property and equipment, net	$	160,069		$	362,244

Depreciation expense totaled $133,164 and $155,272 for the six months ended February 28, 2017 and February 29, 2016, respectively. During the six months ended February 28, 2017, the Company discontinued the development of their Amped Fantasy products. In connection with this, the Company recorded an impairment loss on disposal of assets of $69,011.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	February 28, 2017		August 31, 2016

Accounts payable	$	897,841	$	814,707
Accrued interest		423,771		87,661
Accrued broadcaster commissions		90,881		301,883
Credit card		74,758		50,989
Accounts payable and accrued expenses	$	1,487,251	$	1,255,239

Total Sports Media, Inc. 10-Q