Acorn International Inc was incorporated on December 20, 2005. It is a media and branding company in China. It has strong media resources and has built a proven track record of developing, promoting and selling a diverse portfolio of proprietary-branded products, as well as products from established third parties. The Company has two operating and reportable segments, which are direct sales, net and distribution sales, net. Its media resources consist mainly of airtime purchased from both national and local TV channels in China. In 2013, its TV direct sales programs, which were typically five to ten minutes in length, were broadcast on two CCTV channels and 16 national satellite TV channels, and eight local TV channels in China. It has established its other direct sales platform consisting of outbound calls, Internet sales and catalog sales. It also maintains a nationwide distribution network across all provinces in China, which allows the Company to reach over 6,900 retail outlets across China. The Company typically grants its distributors the exclusive right to distribute selected products in their respective territories. The Company work closely with its distributors to expand their retail outlet reach, extend its product lifecycles and maximize its sales by promoting its brands through its TV direct sales platform, advertising in local print media and other joint promotional efforts. It has developed several proprietary-branded product lines, including Yierjian and Vibrashape fitness products, Ozing electronic learning products, Rose kitchen and household products, and Babaka posture-correction products. Its TV airtime presence allows it to test-market, promote and sell products in China's geographically dispersed and fragmented consumer market. The Company currently operate call centers in Shanghai, Beijing and Wuxi which process telephone orders generated by its TV and other direct sales platforms and gather real-time data to help analyze the effectiveness of its advertising spending and to adjust its product offerings. Its call centers operate 24 hours per day. Its call centers also places outbound calls to selected customers to market its products. The Company currently offers over 3,200 products which are sold mainly through its TV direct sales platform, other direct sales platform comprising of outbound calls, Internet sales, and catalogs sales as well as its nationwide distribution network. Its recently featured product categories include electronic learning products, fitness products, collectibles products, kitchen and household products and mobile phone products, all of which are mainly sold through its TV direct sales platform, nationwide distribution network, or both. The Company currently maintains approximately 380 trademark registrations and are in the process of applying for registrations or transfer for approximately 130 trademarks in China. It owns 22 invention, utilities and packaging design patents in China pertaining to its posture-correction products, kitchen and household products, fitness products, and oxygen generating device. The Company competes with PLP fashion, and Global Buyer, CCTV Home Shopping, Hunan TV Happigo, Dang Dang and Yihaodian. The PRC government extensively regulates the industries in which the Company operates its business.