View Filing Data

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2013	Nov. 11, 2013
Document Information [Line Items]
Entity Registrant Name	XCel Brands, Inc.
Entity Central Index Key	0001083220
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	XELB
Entity Common Stock, Shares Outstanding		10,167,427
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 7,867,000	$ 3,929,000
Accounts receivable, net	4,688,000	3,428,000
Inventory	90,000	0
Prepaid expenses	400,000	329,000
Total current assets	13,045,000	7,686,000
Property and Equipment:
Leasehold improvements, furniture and equipment	1,784,000	1,516,000
Less: accumulated depreciation	669,000	403,000
Total property and equipment	1,115,000	1,113,000
Other Assets:
Trademarks and other intangibles, net	45,440,000	45,835,000
Goodwill	12,371,000	12,371,000
Deferred finance costs, net	209,000	450,000
Other assets	264,000	349,000
Total other assets	58,284,000	59,005,000
Total Assets	72,444,000	67,804,000
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses	1,110,000	1,421,000
Deferred revenue, net of long-term portion	119,000	221,000
Other current liabilities	88,000	144,000
Current portion of long-term debt	6,244,000	1,350,000
Total current liabilities	7,561,000	3,136,000
Long-Term Liabilities:
Long-term liabilities, less current portion	19,426,000	29,046,000
Deferred tax liability	8,656,000	10,177,000
Deferred revenue, net of short-term portion	550,000	480,000
Total long-term liabilities	28,632,000	39,703,000
Total Liabilities	36,193,000	42,839,000
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $.001 par value, 25,000,000 shares authorized, 10,167,427 and 7,339,979 issued and outstanding at September 30, 2013 and December 31, 2012, respectively.	10,000	7,000
Paid-in capital	31,313,000	21,966,000
Retained earnings	4,928,000	2,992,000
Total stockholders' equity	36,251,000	24,965,000
Total Liabilities and Stockholders' Equity	$ 72,444,000	$ 67,804,000

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2013	Dec. 31, 2012
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	10,167,427	7,339,979
Common stock, shares outstanding	10,167,427	7,339,979

Unaudited Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues
Net licensing revenue	$ 3,075,000	$ 2,765,000	$ 8,863,000	$ 7,815,000
Design and service fee income	714,000	960,000	1,288,000	1,614,000
Net retail sales	130,000	0	162,000	0
Total revenues	3,919,000	3,725,000	10,313,000	9,429,000
Cost of goods sold	61,000	0	74,000	0
Gross profit	3,858,000	3,725,000	10,239,000	9,429,000
Operating expenses
Salaries, benefits and employment taxes	1,646,000	1,281,000	4,713,000	3,813,000
Other design and marketing costs	39,000	167,000	325,000	447,000
Other selling, general and administrative expenses	748,000	444,000	1,902,000	1,598,000
Stock-based compensation	2,295,000	2,043,000	4,652,000	3,479,000
Depreciation and amortization	222,000	216,000	663,000	640,000
Total operating expenses	4,950,000	4,151,000	12,255,000	9,977,000
Other expenses (income)
Loss on extinguishment of debt	1,351,000	0	1,351,000	0
Gain on reduction of contingent obligations	(5,100,000)	0	(5,100,000)	0
Total other income	(3,749,000)	0	(3,749,000)	0
Operating income (loss)	2,657,000	(426,000)	1,733,000	(548,000)
Interest and finance expense
Interest expense - term loan	189,000	286,000	738,000	858,000
Other interest and finance charges	196,000	262,000	685,000	778,000
Total interest and finance expense	385,000	548,000	1,423,000	1,636,000
Income (loss) before income taxes	2,272,000	(974,000)	310,000	(2,184,000)
Income tax benefit	(847,000)	(502,000)	(1,626,000)	(520,000)
Net income (loss)	$ 3,119,000	$ (472,000)	$ 1,936,000	$ (1,664,000)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.31	$ (0.06)	$ 0.22	$ (0.25)
Diluted (in dollars per share)	$ 0.29	$ 0	$ 0.20	$ 0
Weighted average number of common shares outstanding:
Basic (in shares)	10,167,769	7,517,151	8,892,303	6,772,244
Diluted (in shares)	10,753,850	7,517,151	9,478,787	6,772,244

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities
Net income (loss)	$ 1,936,000	$ (1,664,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	663,000	640,000
Amortization of deferred finance costs	77,000	93,000
Stock-based compensation	4,652,000	3,479,000
Allowance for doubtful accounts	45,000	0
Amortization of seller note discount	438,000	401,000
Amortization of senior note discount	139,000	176,000
Deferred income tax benefit	(1,515,000)	(548,000)
Loss on extinguishment of debt	1,351,000	0
Gain on reduction of contingent obligations	(5,100,000)	0
Changes in operating assets and liabilities:
Accounts receivable	(1,305,000)	(1,151,000)
Inventory	(90,000)	0
Other assets	23,000	(156,000)
Accounts payable and accrued expenses	(325,000)	66,000
Deferred revenue	(3,000)	131,000
Other liabilities	(53,000)	50,000
Net cash provided by operating activities	933,000	1,517,000
Cash flows from investing activities
Purchase of property and equipment	(268,000)	(110,000)
Increase in long-term security deposit	(8,000)	(175,000)
Reduction of restricted cash for security deposit	0	175,000
Net cash used in investing activities	(276,000)	(110,000)
Cash flows from financing activities
Proceeds from issuance of common stock and warrants	5,000,000	0
Repayment of long-term debt	(13,500,000)	0
Prepayment fee on extinguishment of debt	(189,000)	0
Proceeds from term loan	13,000,000	0
Principal payment of the seller note	(500,000)	0
Payment of expenses related to equity and recapitalization	(310,000)	(3,000)
(Acquisition) reduction deferred finance costs	(217,000)	22,000
Repayment of lease obligation	(3,000)	(13,000)
Net cash provided by financing activities	3,281,000	6,000
Net increase in cash and cash equivalents	3,938,000	1,413,000
Cash and cash equivalents, beginning of period	3,929,000	2,718,000
Cash and cash equivalents, end of period	7,867,000	4,131,000
Supplemental disclosure of non-cash financing activities:
Restricted stock grants to employees and directors	5,403,000	4,635,000
Warrants issued to licensee	0	23,000
Forfeiture of employee stock grants	(3,000)	(2,000)
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	240,000	62,000
Cash paid during the period for interest	$ 928,000	$ 916,000

NATURE OF OPERATIONS, BACKGROUND AND BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.	NATURE OF OPERATIONS, BACKGROUND AND BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management of Xcel Brands, Inc., (“Xcel”, the "Company", “we”, “us”, or “our”), all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. The Condensed Consolidated Balance Sheet as of December 31, 2012 has been derived from audited consolidated financial statements. Operating results for the three months (the “Current Quarter”) and nine months (the “Current Nine Months”) ended September 30, 2013 are not necessarily indicative of the results that may be expected for a full fiscal year.

The Company engages in the design, licensing, marketing and retail sales of the Isaac Mizrahi Brand and certain rights of the Liz Claiborne New York Brand (“LCNY”) with a focus on a variety of product categories. The Company operates in two segments - (1) design and licensing and (2) retail. Our design and licensing business operates in a “working capital light” business model, licensing the Isaac Mizrahi Brand and LCNY through its wholly-owned subsidiary IM Brands, LLC (“IM Brands”) and generating royalty and design and service fee revenues through licensing and other agreements with wholesale manufacturers, sourcing and design companies, and retailers. The Company’s retail business operates through its wholly-owned subsidiary IMNY Retail Management, LLC and was launched in June of this year opening the Company’s first retail store located in Southampton, New York. The Company plans to open its second store by the spring of next year in Atlanta, Georgia.

For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 (“2012”).

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=28200181&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 272
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 720
-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 915
-SubTopic 235
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Trademarks, Goodwill and Other Intangible Assets

The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), ASC Topic 350 “Intangibles - Goodwill and Other”. Under this standard, goodwill and indefinite lived assets are not amortized. The Company’s definite lived intangible assets are amortized over their estimated useful lives.

Under this standard, the Company annually has the option to first assess qualitatively whether it is more likely than not that there is an impairment. The Company completed its annual quantitative assessment of trademarks, goodwill and other intangibles at December 31, 2012. In conjunction with the reduction in the contingent obligations discussed below, the Company updated its quantitative assessment of trademarks, goodwill and other intangibles at September 30, 2013 and determined that no impairment charges were required.

Contingent Obligations

Management analyzes and quantifies the expected earn-out payments over the applicable pay-out period. Management assesses no less frequently than each reporting period the status of contingent obligations and any expected changes in the fair market value of such contingent obligations. Any change in the expected obligation will result in expense or income recognized in the period in which it is determined fair market value of the carrying value has changed. Contingent obligations have been reduced by $5.1 million during the Current Quarter and Current Nine Months, recorded as a gain on the reduction of contingent obligations and included in operating income in the Company’s unaudited condensed consolidated statements of operations (see Note 5, Debt).

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the year. Actual results could be affected by those estimates.

Fair Value

ASC Subtopic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 outlines a valuation framework, creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements, and details the disclosures that are required for items measured at fair value. We have contingent obligations that are required to be measured at fair value on a recurring basis. Our contingent obligations were measured using inputs from Level 3 of the fair value hierarchy, which states:

Level 3 – unobservable inputs that reflect our assumptions that market participants would use in pricing assets or liabilities based on the best information available. The Company’s earn-out obligation (See Note 5) is based upon future net royalty revenues.

Income Taxes

Income tax expense consists of the tax payable for the period and the change during the period in deferred tax assets and liabilities. Deferred income taxes are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted rates in effect during the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

ASC Topic 740 “Income Taxes” clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. Tax positions shall initially be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that has a probability of fifty percent (50%) or greater of being realized upon ultimate settlement with the tax authority, assuming full knowledge of the position and all relevant facts.

The Company has no unrecognized tax benefits as of September 30, 2013 and December 31, 2012. The Company’s U.S. Federal and state and local income tax returns are closed prior to fiscal year 2009 and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

If applicable, the Company would recognize interest and penalties associated with tax matters as part of the income tax provision, and include accrued interest and penalties with accrued expenses in the condensed consolidated balance sheets.

Revenue Recognition

Licensing revenue is generated from licenses and is based on reported sales of licensed products bearing our trademarks, at royalty rates specified in the license agreements. These agreements are also subject to contractual minimum levels.

Design and service fees are recorded and recognized in accordance with the terms and conditions of each service contract, including the Company meeting its obligations and providing the relevant services under each contract. Generally, we record on a straight-line basis, each base fee as stated in each service agreement for the covered period and, if applicable, we recognize additional payments received that relate to a future period as deferred revenue, until service is provided or revenue is otherwise earned.

We recognize revenue from our retail store upon sale of our products to retail consumers, net of estimated returns.

Accounts Receivable

Accounts receivable represent amounts that are due to the Company by its licensees and other operating account debtors in the normal course of business. As of September 30, 2013, the Company has $4,688,000 of accounts receivable, net of allowance for doubtful accounts of $70,000. As of December 31, 2012 the Company had $3,428,000 of accounts receivable, net of allowance for doubtful accounts of $25,000.

Inventory

Inventories are stated at the lower of cost or market using the first in first out (“FIFO”) method. All inventory consists of finished goods and is located at the retail store location. The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs, write-offs and shrinkage are charged to cost of goods sold. In the Current Quarter and Current Nine Months, the Company experienced shrinkage of $5,000 and $9,000, respectively.

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718 “Compensation - Stock Compensation”, by recognizing the fair value of stock-based compensation in the unaudited condensed consolidated statements of operations. Stock-based compensation can include stock options and restricted stock grants.

Stock Options - The fair value of the Company’s stock option awards are estimated using the Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award.

Restricted Stock - Compensation cost for restricted stock is measured using the fair value of the Company’s common stock at the date the common stock is granted. The compensation cost is recognized over the period between the grant date and the date any restrictions lapse. For stock-based awards that vest based on performance conditions (e.g. achievement of certain milestones), expense is recognized when it is probable that the condition will be met.

The calculation of compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of stock-based compensation is amortized over the service period of the awards.

Earnings (loss) per Share

Basic earnings (loss) per share excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon the exercise of stock options and warrants. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options, warrants and restricted stock outstanding were exercised into common stock, except when there is a net loss, in which case basic and diluted weighted average common shares shall be the same.

Recently Issued Accounting Standards

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements.

Trademarks, Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Trademarks, Goodwill and Other Intangibles

Trademarks and other intangibles, net consist of the following:

	September 30,		December 31,
	2013		2012
Trademarks	$	44,500,000	$	44,500,000
Licensing agreements		2,000,000		2,000,000
Accumulated amortization, licensing agreements		(1,060,000)		(665,000)
Net carrying amount	$	45,440,000	$	45,835,000

Amortization expense for intangible assets for both the Current Quarter and the quarter ended September 30, 2012 (the “Prior Year Quarter”) was $132,000. Amortization expense for intangible assets for the Current Nine Months and the nine months ended September 30, 2012 (the “Prior Year Nine Months”) was $395,000 and $396,000, respectively. The trademarks of the Isaac Mizrahi Brand and related goodwill have been determined to have an indefinite useful life and accordingly, consistent with ASC Topic 350, no amortization has been recorded in the Company's unaudited condensed consolidated statements of operations.

The Company has $12,371,000 of goodwill that represents the excess of the purchase price over the fair value of net assets acquired accounted for under the acquisition method of accounting relating to the acquisition of the Isaac Mizrahi Business. There was no change in goodwill during the Current Nine Months.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Significant Contracts

9 Months Ended

Sep. 30, 2013

Significant Contracts [Abstract]

Significant Contracts [Text Block]

Significant Contracts

QVC Agreement

In connection with the Company’s agreement with QVC, Inc. (“QVC”), QVC is required to pay fees based primarily on a percentage of its net sales of Isaac Mizrahi branded merchandise. QVC royalty revenue represents a significant portion of the Company’s total revenues. Royalties from QVC totaled $1,992,000 and $1,900,000 for the Current Quarter and the Prior Year Quarter, respectively, representing 51% of the Company’s total revenues each quarter. Royalties from QVC totaled $5,976,000 and $5,700,000 for the Current Nine Months and the Prior Year Nine Months, respectively, representing 58% and 60% of the Company’s total revenues, respectively. As of September 30, 2013 and December 31, 2012, the Company had a receivable from QVC in the amount of $1,901,000, representing 41% and 55% of the Company’s receivables, respectively.

LCNY Agreement

In connection with the Company’s agreement with Fifth & Pacific Companies, Inc. (formerly Liz Claiborne, Inc.) (“FNP”) (the “LCNY Agreement”) FNP is required to pay the Company royalties based primarily on a percentage of royalties FNP receives from QVC under a separate license agreement between FNP and QVC. Revenues from the LCNY Agreement totaled $395,000 and $458,000 for the Current Quarter and the Prior Year Quarter, respectively, representing 10% and 12% of the Company’s total revenues, respectively. Revenues from the LCNY Agreement totaled $1,395,000 and $1,208,000 for the Current Nine Months and the Prior Year Nine Months, respectively, representing 14% and 13% of the Company’s total revenues, respectively. As of September 30, 2013 and December 31, 2012, the Company had a receivable from FNP in the amount of $1,792,000 and $699,000, representing 38% and 20% of the Company’s receivables, respectively.

Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt

The Company’s net carrying amount of debt is comprised of the following:

	September 30,		December 31,
	2013		2012
Term Loan	$	13,000,000	$	12,579,000
Seller Note		6,244,000		6,306,000
Contingent obligation – Seller		6,366,000		11,466,000
Other long term liabilities		60,000		45,000
Total		25,670,000		30,396,000
Current portion		6,244,000		1,350,000
Total long term liabilities	$	19,426,000	$	29,046,000

Term Loan- Old Loan

On September 29, 2011 (the “Closing Date”), IM Brands, a wholly-owned subsidiary of the Company, entered into a five-year senior secured facility (the “Old Loan”) with MidMarket Capital Partners, LLC (“MidMarket”) and Noteholders in the aggregate principal amount of $13,500,000. The Loan was secured by all of the assets of IM Brands and the Company’s membership interests in IM Brands.

The principal amount of the Loan was payable quarterly as follows: 2.5% on January 5, 2013 through October 5, 2013; 3.75% on January 5, 2014 through October 5, 2014; 6.25% on January 5, 2015 through October 5, 2015; 12.5% on January 5, 2016 through the maturity date, which is the date that is 5 years after the Closing Date.

The interest rate on the Loan was a fixed rate of 8.5%, payable in cash.

Optional Prepayment . IM Brands could have prepaid the Old Loan in whole or in part in increments of $500,000, provided that IM Brands paid the following premiums in connection with the prepayment:

Period	Applicable Premium
Prior to September 29, 2013		2	%
Prior to September 29, 2014		1	%
On or After September 29, 2014		0	%

Term Loan- New Loan

On August 1, 2013, the Company extinguished the Old Loan with proceeds from a new $13.0 million 5-year term loan with Bank of Hapoalim B.M. (the “New Loan”). The New Loan is secured by all of the assets of IM Brands and the Company’s membership interest in IM Brands and bears interest at an annual fixed rate of 4.44% payable quarterly in arrears each calendar quarter. Scheduled principal payments are as follows:

	Amount of
	Principal
Date of Payment	Payment

October 1, 2014, January 1, 2015, April 1, 2015 and July 1, 2015	$	250,000

October 1, 2015, January 1, 2016, April 1, 2016 and July 1, 2016	$	625,000

October 1, 2016, January 1, 2017, April 1, 2017 and July 1, 2017	$	750,000

October 1, 2017, January 1, 2018 and April 1, 2018	$	875,000

July 1, 2018	$	3,875,000

In addition, the Company shall prepay the outstanding amount of the New Loan from excess cash flow (“Cash Flow Recapture”) for each fiscal year commencing with the year ending December 31, 2014 in arrears in an amount equal to twenty percent (20%) of such Cash Flow Recapture. Cash Flow Recapture shall mean for any fiscal period, cash provided by operating activities for such period less (a) capital expenditures not made through the incurrence of indebtedness less (b) all interest and principal (including indebtedness owed for the New Loan) paid or payable during such period less (c) all income tax payments made during such period.

On August 1, 2013 the extinguishment of the Old Loan resulted in an approximate loss on extinguishment of debt of $1,351,000, consisting of $381,000 of unamortized deferred costs, $781,000 from acceleration of the loan discount, and $189,000 for prepayment fees and expenses of the Old Loan. The Prepayment fee was equal to1.5% of the outstanding balance of the Old Loan immediately before the extinguishment.

Financial Covenants. The Company is required to maintain minimum fixed charge ratio, and liquidity covenants, a maximum leverage ratio covenant and other non-monetary covenants, including reporting requirements and trademark preservation in accordance with the terms and conditions of the New Loan. As of September 30, 2013, the Company and IM Brands were in full compliance with all of the covenants under the New Loan.

Seller Note

On September 29, 2011, as part of the consideration for the purchase of the Isaac Mizrahi Business, the Company issued to IM Ready-Made, LLC (the “Seller”) a promissory note (the “Seller Note”) in the principal amount of $7,377,000. The stated interest rate of the Seller Note is 0.25%. Management has determined that this rate was below the Company’s expected borrowing rate, which was estimated at 9.25%. Therefore, the Company discounted the Seller Note by $1,740,000 using a 9.0% imputed annual interest rate, resulting in an initial value of $5,637,000. Also on September 29, 2011, the Company prepaid $123,000 of interest on the Seller Note. The imputed interest amount is being amortized over the term of the Seller Note and recorded as other interest expense on the Company’s unaudited condensed consolidated statements of operations. The Company prepaid $500,000 of the Seller Note during the Current Quarter. The Seller Note balance at September 30, 2013 and December 31, 2012 was $6,244,000 and $6,306,000, net of debt discount of $633,000 and $1,071,000, respectively.

The Seller Note initially matures on September 29, 2014 (the “Seller Maturity Date”) subject to extension as described below (the date to which the maturity date of the Seller Note is extended is referred to as the “Subsequent Seller Maturity Date”). The Company has the right to pay the Seller Note at the Seller Maturity Date in cash or, subject to the following conditions, in shares of Common Stock. If the Company elects to repay the outstanding principal amount of the Seller Note on the Seller Maturity Date by issuing shares of Common Stock, the number of shares issuable will be obtained by dividing the principal amount of the Seller Note then outstanding by the greater of (i) the fair market value of the Common Stock on the Seller Maturity Date and (ii) $4.50 subject to certain adjustments; provided, however, that if the fair market value of the Common Stock is less than $4.50 as adjusted, the Seller will have the option to extend the maturity of the Seller Note to the Subsequent Seller Maturity Date. If the maturity date of the Seller Note is so extended, the Seller will have the option to convert the Seller Note into Common Shares based on the greater of (i) the fair market value of the Common Stock on the Subsequent Seller Maturity Date and (ii) $4.50, subject to certain adjustments. If the maturity date of the Seller Note is extended, we will also have the option to repay the outstanding principal amount of the Seller Note on the Subsequent Seller Maturity Date in cash or by issuing the number of shares of Common Stock obtained by dividing the principal amount of the Seller Note outstanding on the Subsequent Seller Maturity Date by the fair market value of the Common Stock on the Seller Maturity Date. In addition, at any time the Seller Note is outstanding, the Company has the right to convert the Seller Note, in whole or in part, into the number of shares of Common Stock obtained by dividing the principal amount to be converted by the fair market value of the Common Stock at the time of the conversion, so long as the fair market value of our Common Stock is at least $4.50. The full amount of the Seller Note is recorded in current liabilities as in the September 30, 2013 condensed consolidated balance sheet.

Contingent Obligations

Earn-out obligation

The Seller is eligible to earn additional consideration for the sale of the Isaac Mizrahi Business contingent upon the Isaac Mizrahi Brand achieving net royalty income targets set forth below during the twelve month periods ending September 30, 2014 and 2015. The Seller was eligible to earn additional consideration for the fiscal years ended September 30, 2012 and 2013, but did not meet the minimum net royalty income target. This consideration is payable with shares of Common Stock by the greater of (i) the fair market value of the Common Stock for the average stock price for the last twenty days in such period and (ii) $4.50 up to $7,500,000 (the “Earn-Out Value”). The Seller will receive a percentage of the Earn-Out Value based upon the percentage of the actual net royalty income of the Isaac Mizrahi Business to the royalty target as set forth below. The fair value of the percentage of the Earn-Out Value was based primarily on projected future net royalty income related to the Isaac Mizrahi Brand (the “Earn-Out Obligation”). Any future change in the Earn-Out Obligation will result in an expense or income in the period in which it is determined that the fair market value of the carrying value has changed. The royalty targets and percentage of the potential Earn-Out Value are as follows:

	ROYALTY		EARN-OUT
ROYALTY TARGET PERIODS	TARGET		VALUE
Third Royalty Target Period (October 1, 2013 to September 30, 2014)	$	22,000,000	$	7,500,000
Fourth Royalty Target Period (October 1, 2014 to September 30, 2015)	$	24,000,000	$	7,500,000

APPLICABLE	% OF EARN-OUT
PERCENTAGE	VALUE EARNED
Less than 76%		0	%
76% up to 80%		40	%
80% up to 90%		70	%
90% up to 95%		80	%
95% up to 100%		90	%
100% or greater		100	%

In accordance with ASC Topic 480 "Distinguishing Liabilities from Equity", the Earn-Out Obligation is treated as a liability in the accompanying Condensed consolidated balance sheets because of the variable number of shares payable under the agreement. The Earn-Out Obligation fair value at September 30, 2013 and December 31, 2012 was $3.6 million and $8.7 million, respectively and recorded as long term liabilities on the Company’s condensed consolidated balance sheets. The $5.1 million reduction was recorded as a gain on reduction of contingent obligations in the Company’s unaudited condensed consolidated statement of operations in the Current Quarter and the Current Nine Months. The reduction in the Earn-Out Obligation was based primarily on a revision of projected future net royalty income related to the Isaac Mizrahi Brand within the earn-out period. The earn-out obligation is reduced as a result of revised lower projected future net royalty income of the Isaac Mizrahi Business, therefore diminishing the probability of achieving the Third Royalty Target and the Fourth Royalty Target. This adjustment results from the Company having better visibility in its 2014 royalties given current Isaac Mizrahi Brand product sales information.

QVC Earn-out

The Company is required to pay the Seller $2.766 million, payable in cash or Common Stock, at the Company’s option, contingent upon the Company receiving aggregate net royalty income of at least $2.5 million from QVC for the Isaac Mizrahi Brand in the twelve-month period ending September 30, 2015 with such stock based upon the greater of (x) $4.50 per share, and (y) the average stock price for the last twenty days prior to the time of such issuance (the “QVC Earn-Out”). The current term of the QVC Agreement runs through September 30, 2015. Management has determined that it is probable that the $2.5 million in net royalty income from QVC will be met. In accordance with ASC Topic 480, the QVC Earn-Out obligation is treated as a liability in the accompanying unaudited condensed consolidated balance sheets because of the variable number of shares payable under the agreement. Management will assess no less frequently than each reporting period the status of this contingent obligation. Any change in the expected obligation will result in an expense or income in the period in which it is determined fair market value has changed.

The combined contingent obligation of $6.366 million and $11.466 million as of September 30, 2013 and December 31, 2012 is reported as long-term debt on the Company’s condensed consolidated balance sheets.

Stockholders' Equity

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Stockholders’ Equity

Private Offering of Equity Securities

On June 5, 2013 in a private offering to an existing shareholder and a director of the Company, each of which is an accredited investor, the Company issued and sold an aggregate of 1,428,573 shares of its common stock (the “Shares”) and Warrants to purchase an aggregate of 312,500 shares of the Company’s common stock for aggregate gross proceeds of $5,000,000 (the “Offering”). The Warrants are exercisable at a price of $5.00 per share, at any time on or prior to June 5, 2018.

In consideration of doing a private offering, we concluded that there is a discounted component to the Offering as compared to the market value of our common stock, primarily due to the limited liquidity in our shares. Based on the Company’s analysis, the Company concluded that such discount was 10% and therefore grossed up the offering price based on the discount, resulting in a fair value of $3.86 per common share.

The fair value for the Warrants was estimated $.12 for each warrant to purchase one share of common stock using a Black-Scholes option-pricing model with the following weighted-average assumptions:

Expected Volatility (i)	22	%
Expected Dividend Yield	0	%
Expected Life (Term) (ii)	2.5 years
Risk-Free Interest Rate	0.39	%

	(i)	Due to the Company’s limited trading activity, the Company used the average volatility of similar companies in its industry.
	(ii)	Due to the Company’s limited history, the expected life of options was calculated using the ‘simplified method’ in accordance with Staff Accounting Bulletin (“SAB”) Topic 14.02 in accordance with SAB 110.

The proceeds of the Offering were accounted for as the par value of the common stock ($.001 per share) issued and the balance ($3.499 per share) as additional paid in-capital, inclusive of the value of the Warrants.

2011 Equity Incentive Plan

The Company’s 2011 Equity Incentive Plan, as amended and restated (the “Plan”) is designed and utilized to enable the Company to offer its employees, officers, directors, consultants and others whose past, present and/or potential contributions to the Company have been, are or will be important to the success of the Company, an opportunity to acquire a proprietary interest in the Company. A total of 5,000,000 shares of common stock are eligible for issuance under the Plan. The Plan provides for the grant of any or all of the following types of awards: stock options, restricted stock, deferred stock, stock appreciation rights and other stock-based awards. The Plan is administered by the Board, or, at the Board's discretion, a committee of the Board.

On April 17, 2012, the Company issued to management an aggregate of 1,100,000 shares of restricted stock. The vesting date of 1,025,000 shares of restricted stock was November 15, 2012, provided, however, that each such grantee has the right to extend the vesting date by six-month increments in his or her sole discretion, prior to the date the restrictions would lapse. The vesting date of 37,500 shares of restricted stock was May 15, 2013, provided however, the executive has the right to extend the vesting date by six-month increments in his sole discretion, prior to the date the restrictions would lapse. The vesting date of 37,500 shares of restricted stock is May 15, 2014, provided however, the executive has the right to extend the vesting date by six-month increments in his sole discretion, prior to the date the restrictions would lapse. As of September 30, 2013, restrictions on 509,488 shares have lapsed and 551,747 and 38,765 restricted shares are scheduled to vest on November 15, 2013 and May 15, 2014, respectively. On November 15, 2012 the Company repurchased 209,623 shares upon vesting of restricted stock in satisfying the grantees’ tax withholding obligation.

Also, on April 17, 2012, the Company issued 50,000 shares of restricted stock to a non-executive employee. The vesting date of the 50,000 shares of restricted stock is November 15, 2013, provided however, the employee has the right to extend the vesting date by nine-month increments in her sole discretion, prior to the date the restrictions would lapse. As of September 30, 2013, restrictions on 24,916 shares have lapsed and 25,084 restricted shares are scheduled to vest on November 15, 2013. On November 15, 2012, the Company repurchased 8,540 shares upon vesting of restricted stock in satisfying the grantees’ tax withholding obligation.

On May 1, 2012, the Company granted options to purchase an aggregate of 105,500 shares of Common Stock to non-executive employees of the Company. The exercise price per share of the options is $3.00 per share, and 50% of the options will vest on each of the first and second anniversaries of the grant date. Of these awards, 26,750 options were forfeited in 2012, and reverted to, and are eligible for re-grant under the Plan.

On June 1, 2012, the Company issued to non-management directors 138,335 shares of restricted stock. The vesting date of 138,335 shares of restricted stock was December 1, 2012, provided, however, that each such grantee has the right to extend the vesting date by six-month increments in his sole discretion, prior to the date the restrictions would lapse. As of September 30, 2013, restrictions on 70,863 shares have lapsed and 67,472 restricted shares are scheduled to vest on December 1, 2013. On November 15, 2012, the Company repurchased 18,870 shares on vesting of restricted stock in satisfying the grantees’ tax withholding obligation.

On June 1, 2012, the Company issued to management 242,775 shares of restricted stock. The vesting date of 242,775 shares of restricted stock was December 1, 2012, provided, however, that each such grantee has the right to extend the vesting date by six-month increments in his sole discretion, prior to the date the restrictions would lapse. As of September 30, 2013, none of these shares have vested and these restricted shares are scheduled to vest on December 1, 2013.

On April 1, 2013, the Company issued to management 1,270,000 shares of restricted stock. The vesting date of 1,075,000 shares of restricted stock is March 31, 2014, provided, however, that each such grantee has the right to extend the vesting date by six-month increments in his sole discretion, prior to the date the restrictions would lapse. The remaining 195,000 shares of restricted stock will vest evenly over 2 years, whereby 50% shall vest on March 31, 2014 and 50% shall vest on March 31, 2015. Notwithstanding the foregoing, each grantee may extend the first anniversary of all or a portion of the Restricted Shares by six months and, thereafter one or more times may further extend such date with respect to all or a portion of the Restricted Shares until the next following September 30th or March 31st, as the case may be, by providing written notice of such election to extend such date with respect to all or a portion of the Restricted Shares prior to such date.

On April 1, 2013, the Company issued to non-management directors 100,000 shares of restricted stock. The shares of restricted stock will vest evenly over two years, whereby 50% shall vest on March 31, 2014 and 50% shall vest on March 31, 2015. Notwithstanding the foregoing, each grantee may extend the first anniversary of all or a portion of the Restricted Shares by six months and, thereafter one or more times may further extend such date with respect to all or a portion of the Restricted Shares until the next following September 30th or March 31st, as the case may be, by providing written notice of such election to extend such date with respect to all or a portion of the Restricted Shares prior to such date.

On May 1, 2013, the Company issued to non-executive employees 29,750 shares of restricted stock. The shares of restricted stock will vest evenly over 2 years, whereby 50% shall vest on April 30, 2014 and 50% shall vest on April 30, 2015.

Stock Options and Warrants

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.

The fair value for all options and warrants was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions:

Expected Volatility (i)	22-42	%
Expected Dividend Yield	0	%
Expected Life (Term) (ii)	2.5 – 5.75 years
Risk-Free Interest Rate	0.39% - 0.98	%

The options that the Company granted under its plans expire at various times, either five, seven or ten years from the date of grant, depending on the particular grant.

	(i)	Due to the Company’s limited trading activity, the Company used the average volatility of similar companies in its industry.
	(ii)	Due to the Company’s limited history, the expected life of options was calculated using the ‘simplified method’ in accordance with Staff Accounting Bulletin (“SAB”) Topic 14.02 in accordance with SAB 110.

Stock Options

A summary of the Company’s stock options for the Current Nine Months is as follows:

			Weighted-Average
	Options		Exercise Price
Outstanding at January 1, 2013		345,000	$	4.54
Granted		-		-
Canceled		-		-
Exercised		-		-
Expired/Forfeited		(1,375)		3.55
Outstanding at September 30, 2013		343,625	$	4.55
Exercisable at September 30, 2013		213,483	$	4.64

Compensation expense related to stock option grants for the Current Quarter and the Prior Year Quarter was $19,000 and $23,000, respectively. Compensation expense related to stock option grants for the Current Nine Months and the Prior Year Nine Months was $58,000 and $51,000, respectively. Compensation expense related to stock options is reported as stock-based compensation under operating expenses in the unaudited condensed consolidated statements of operations. An additional amount of $22,000 is expected to be expensed over a period of 7 months from October 1, 2013 through April 30, 2014.

The preceding table does not include options to purchase 576 shares of Common Stock for $728 per share issued under the Company’s former equity plan. The Company does not expect to issue any equity awards under this plan.

Warrants

A summary of the Company’s warrants for the Current Nine Months is as follows:

			Weighted-Average
	Warrants		Exercise Price
Outstanding at January 1, 2013		1,132,043	$	2.47
Granted (See private offering of equity securities above)		312,500		5.00
Canceled		-		-
Exercised		-		-
Expired/Forfeited		-		-
Outstanding at September 30, 2013 and expected to vest.		1,444,543	$	3.01
Exercisable at September 30, 2013		1,444,543	$	3.01

Compensation expense related to warrants for the Current Quarter and the Prior Year Quarter was $11,000 each period. Compensation expense related to warrants for the Current Nine Months and the Prior Year Nine Months was $33,000 each period. Compensation expense related to warrants, except those warrants issued to a licensee (see below) is reported as stock-based compensation under operating expenses in the unaudited condensed consolidated statements of operations.

The Company values other warrants issued to non-employees at the commitment date at the fair market value of the instruments issued, a measure which is more readily available than the fair market value of services rendered, using the Black-Scholes model. The fair market value of the instruments issued is expensed over the vesting period.

The Company issued to a licensee warrants to purchase 75,000 shares of common stock with an exercise price of $5.50 per share and a term of 5-years. Compensation expense related to warrants in connection with the licensing agreement is amortized over the 5-year initial term of the license agreement and is recorded as a discount to licensing revenues. The stock-based licensing revenue-discount for the Current Quarter and the Prior Year Quarter was $1,000 and $1,000, respectively. The stock-based licensing revenue-discount for the Current Nine Months and the Prior Year Nine Months was $3,000 and $3,000, respectively. An additional amount of $14,000 is expected to be amortized over a period of 36 months from October 1, 2013 through September 30, 2016.

Restricted Stock

Compensation cost for restricted stock is measured using the fair value of the Company’s common stock at the date the common stock is granted. The compensation cost, net of projected forfeitures, is recognized over the period between the grant date and the date any restrictions lapse, with compensation cost for grants with a graded vesting schedule recognized using the treasury method. The restrictions do not affect voting and dividend rights.

A summary of the Company’s restricted stock for the Current Nine Months is as follows:

			Weighted-Average
	Restricted		Grant Date Fair
	Shares		Value
Outstanding at January 1, 2013		964,607	$	3.00
Granted		1,399,750		3.86
Canceled		-		-
Vested		(16,868)		3.00
Expired/Forfeited		-		-
Outstanding at September 30, 2013		2,347,489	$	3.51

Compensation expense related to restricted stock grants for the Current Quarter and Prior Year Quarter was $2,266,000 and $2,043,000, respectively. Compensation expense related to restricted stock grants for the Current Nine Months and Prior Year Nine Months was $4,562,000 and $3,479,000, respectively. Compensation expense related to restricted stock grants is reported as stock-based compensation under operating expenses in the unaudited condensed consolidated statements of operations. An additional amount of $186,000 is expected to be expensed over the remainder of 2013 and an additional $823,000 expensed over a period of 15 months from January 1, 2014 through March 31, 2015.

Shares Available Under the Company’s 2011 Equity Incentive Plan

At September 30, 2013, there were 1,931,215 common shares available for issuance under the Company’s 2011 Equity Incentive Plan.

Shares Reserved for Issuance

At September 30, 2013, there were 3,719,959 common shares reserved for issuance pursuant to warrants, stock options and availability for issuance under the Company’s 2011 Equity Incentive Plan.

Dividends

The Company has not paid any dividends to date.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

7.	Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period, including stock options and warrants, using the treasury stock method, and convertible debt, using the if-converted method. Diluted EPS excludes all potentially dilutive shares of common stock if their effect is anti-dilutive.

Shares used in calculating basic and diluted loss per share are as follows:

	Three Months ended				Nine Months ended
	September 30,				September 30,
	2013		2012		2013		2012
Basic		10,167,769		7,517,151		8,892,303		6,772,244
Effect of exercise of stock options		4,241		n/a		4,644		n/a
Effect of exercise of warrants		581,840		n/a		581,840		n/a
Diluted		10,753,850		7,517,151		9,478,787		6,772,244

The computation of basic and diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive:

	Three Months ended				Nine Months ended
	September 30,				September 30,
	2013		2012		2013		2012
Stock options and warrants		1,126,925		580,825		949,498		658,208

Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The Company’s effective income tax rate for the Current Quarter and the Prior Year Quarter was approximately (37.3)% and (51.5)%, respectively. The Company’s effective income tax rate for the Current Nine Months and the Prior Year Nine Months was approximately (524.0)% and (23.8)%, respectively.

The provision (benefit) for income taxes using the statutory federal tax rate as compared to the Company’s effective tax rate is summarized as follows:

	Three Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2013
Federal statutory rate		34.0	%	$	34.0	%
State income taxes, net of federal benefit		7.2	%		7.2	%
Gain on reduction of earn-out		(92.5)	%		(677.2)	%
Change in state rate		15.2	%		111.3	%
Fin 18 Adjustment		(1.5)	%		(4.9)	%
Other		0.3	%		5.6	%
Income tax benefit		(37.3)	%	$	(524.0)	%

During the third quarter the Company recorded a $5.1 million gain on the reduction of contingent obligations related to the acquisition of IM Ready. This gain is not subject to tax and was treated as a discrete item occurring in the third quarter of 2013 (See Note 5, Debt). Additionally, there was an increase in the state income tax rate which was booked to deferred income tax expense and treated as a discrete item occurring in the third quarter of 2013.

Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

9.	Segment Information

Since the Company opened its first retail store in June 2013, it operates in two segments - (1) design and licensing and (2) retail, which are based on its business activities and organization. The operating segments are segments of the Company for which separate discrete financial information is available and for which operating results are evaluated regularly by the chief operating decision makers, made up of the Company’s executive management team, in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are net sales or revenue (in the case of licensing and design fees) and operating income for each segment. The design and licensing segment includes royalties earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to sell the Company’s products and related design and other service fees. The retail segment represents sales of Isaac Mizrahi New York branded products through its retail store. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon specific usage or other allocation methods.

The following table presents the key performance information of the Company’s reportable segments (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Revenue:
Net licensing revenue	$	3,075,000	$	2,765,000	$	8,863,000	$	7,815,000
Design and service fee income		714,000		960,000		1,288,000		1,614,000
Design and licensing revenues		3,789,000		3,725,000		10,151,000		9,429,000
Retail sales		130,000		-		162,000		-
Total revenues	$	3,919,000	$	3,725,000	$	10,313,000	$	9,429,000

Operating income (loss):
Design and licensing	$	2,797,000	$	(426,000)	$	1,966,000	$	(548,000)
Retail		(140,000)		-		(233,000)		-
Total operating income (loss)	$	2,657,000	$	(426,000)	$	1,733,000	$	(548,000)

	Three Months Ended September 30,				Nine Months Ended September 30,
Capital Expenditures	2013		2012		2013		2012
Property and equipment :
Design and licensing	$	30,000	$	19,000	$	127,000	$	110,000
Retail		23,000		-		141,000		-
Total capital expenditures	$	53,000	$	19,000	$	268,000	$	110,000

	September 30,		December 31,
Long Lived Assets	2013		2012
Trademarks and other intangibles, net :
Design and licensing	$	45,440,000	$	45,835,000
Retail		-		-
Total Trademarks and other intangibles, net	$	45,440,000	$	45,835,000

Property and equipment :
Design and licensing	$	984,000	$	1,113,000
Retail		131,000		-
Total property and equipment	$	1,115,000	$	1,113,000

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Related Party Transactions

9 Months Ended

Sep. 30, 2013

10.

Related Party Transactions

Todd Slater

On September 29, 2011, the Company adopted a one-year agreement which was amended on October 4, 2011, with Todd Slater, who was appointed as a director of the Company commencing on October 17, 2011, for services related to the Company’s licensing strategy and introduction of potential licensees. During the term of the agreement or during the year following the expiration of the term of the agreement, if the Company enters into a license or distribution agreement with a licensee introduced by Mr. Slater, Mr. Slater was entitled to receive a commission equal to fifteen percent (15%) of all net royalties received by the Company during the first term of such agreement, payable within thirty days of receipt of the net royalties.

On July 10, 2012, the Company and Mr. Slater entered into an amendment (the “Amendment”) to the agreement. Pursuant to the Amendment, the Company paid to Mr. Slater $163,000 as payment in full for (i) the cancellation of all amounts which are or may otherwise become due or payable to Mr. Slater under the terms of the agreement for licensees already introduced to the Company by Mr. Slater and which Mr. Slater was entitled to fifteen percent (15%) of the revenues from such licensees under the agreement, and (ii) the assignment to the Company of all such amounts payable directly to Mr. Slater pursuant to such license agreements. The Company has capitalized this payment and amortizes the expense in accordance with the revenue earned from the respective licensing agreements on which this payment was based upon.

The Company incurred direct licensing costs with Mr. Slater from amortization of the one-time payment stated above and fees paid for the Current Quarter and the Prior Year Quarter of $12,000 and $10,000, respectively and for the Current Nine Months and for the Prior Year Nine Months of $35,000 and $18,000, respectively.

On June 5, 2013, the Company paid Threadstone Advisors, LLC (“Threadstone”) a fee of $280,000 for the placement of $4,000,000 of proceeds from the Offering (See Note 6, Stockholders’ Equity). This placement fee was recorded as a reduction in paid-in capital and reflected in the stockholders’ equity section of the condensed consolidated balance sheet. Mr. Slater is an officer and a 5% owner of Threadstone.

Licensing Agent Agreement

On August 2, 2011, the Company entered into a licensing agent agreement with Adam Dweck (“AD”) who is an Executive Vice President of Earthbound, LLC (“Earthbound”) and the son of Jack Dweck, who is a principal of Earthbound and is on the Company’s board of directors, pursuant to which he is entitled to a five percent (5%) commission on any royalties we receive under any new license agreements that he procures for us during the initial term of such license agreements. AD earned $4,000 and $3,000 in fees for the Current Quarter and Prior Year Quarter, respectively, and earned $14,000 and $8,000 in fees for the Current Nine Months and the Prior Year Nine Months, respectively.

We are also are obligated to grant to AD warrants to purchase 12,500 shares of common stock at an exercise price of $5.00 per share, subject to AD generating $0.5 million of accumulated royalties and additional warrants to purchase 12,500 shares of common stock at an exercise price of $5.00 per share, subject to AD generating $1.0 million of accumulated royalties. Additionally, AD shall be entitled to receive warrants to purchase 25,000 shares of common stock priced at the fair market value at the time of issuance, subject to AD generating $2.0 million of accumulated royalties. These warrants all expire on August 2, 2016. As of September 30, 2013, AD has reached the first milestone of $500,000 sourced royalties and it is likely AD will reach the second milestone of $1,000,000 of AD sourced royalties by August 2, 2016. The Company has subsequently issued warrants to AD to purchase 25,000 shares of common stock of which 12,500 vest immediately and 12,500 vest upon achieving the second milestone. The fair value of these warrants was estimated at $2,500 on the grant date using the Black-Scholes option pricing method, of which half has been recorded as a royalty commission expense in the Current Quarter and is recorded as a reduction of net licensing revenues on the unaudited condensed consolidated statements of operations. The balance of the warrants will be expensed evenly over the next 15 months, the period when the second milestone is estimated to occur.

Jones Texas, Inc.

Edward Jones, III, a principal shareholder and chief executive officer of Jones Texas, Inc. (“JT”) is on the Company’s board of directors. The Company and JT entered into a consulting agreement on March 28, 2012, whereby JT shall pursue and introduce licensing opportunities for the Company. JT procured a license for the Company during 2012, which the Company agreed to remit 15% of the license revenues for the initial term of the license. JT earned $0 and $1,000 in fees for the Current Quarter and Prior Year Quarter, respectively and earned $0 and $2,000 in fees for the Current Nine Months and Prior Year Nine Months, respectively.

Earthbound, LLC

As part of the consideration for the acquisition of the Isaac Mizrahi Business, the Company assumed a $1.5 million non-interest obligation owed to Earthbound, payable over five years commencing on September 29, 2011. Jeff Cohen is a principal owner of Earthbound and was a director of the Company through December 2012. The Company made payments of $37,500 and $75,000 in the Prior Year Quarter and Prior Year Nine Months, respectively, of which $26,000 and $80,000 was recorded as interest expense in the Prior Year Quarter and Prior Year Nine Months, respectively. The Company extinguished this debt on November 21, 2012.

IM Ready-Made, LLC

The Company and the Seller had balances owed between the companies relating to the transition of the Isaac Mizrahi Business and certain payments assigned to the Seller by QVC under the QVC Agreement. As of September 30, 2013, the Company owed the Seller $114,000 and as of September 30, 2012 the Seller owed the Company $68,000. The Company did not earn any revenue or incur any expenses with IM Ready-Made, LLC since the Closing Date.

Mark DiSanto

On June 5, 2013, Mark X. DiSanto Investment Trust (the “DiSanto Trust”) purchased 285,715 shares of its Common Stock and Warrants to purchase an aggregate of 62,500 of the Company’s Common Stock for aggregate gross proceeds of $1,000,003 through the Offering (See Note 6, Stockholders’ Equity). Mark DiSanto, a director of the Company, is the trustee and has sole voting and dispositive power for the DiSanto Trust.

Executive Officer

In April 2013, the Company purchased $2,300 in used equipment from our Chief Executive Officer to be utilized at our New York City location. The purchase price was at the estimated fair market value of the equipment.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

11.

Subsequent Events

None

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Trademarks, Goodwill and Other Intangible Assets

Contingent Obligation, Policy [Policy Text Block]

Contingent Obligations

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Fair Value Measurement, Policy [Policy Text Block]

Fair Value

Income Tax, Policy [Policy Text Block]

Income Taxes

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

We recognize revenue from our retail store upon sale of our products to retail consumers, net of estimated returns.

Receivables, Policy [Policy Text Block]

Accounts Receivable

Inventory, Policy [Policy Text Block]

Inventory

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

Earnings Per Share, Policy [Policy Text Block]

Earnings (loss) per Share

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

Trademarks, Goodwill and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

Trademarks and other intangibles, net consist of the following:

	September 30,		December 31,
	2013		2012
Trademarks	$	44,500,000	$	44,500,000
Licensing agreements		2,000,000		2,000,000
Accumulated amortization, licensing agreements		(1,060,000)		(665,000)
Net carrying amount	$	45,440,000	$	45,835,000

Debt (Tables)

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The Company’s net carrying amount of debt is comprised of the following:

	September 30,		December 31,
	2013		2012
Term Loan	$	13,000,000	$	12,579,000
Seller Note		6,244,000		6,306,000
Contingent obligation – Seller		6,366,000		11,466,000
Other long term liabilities		60,000		45,000
Total		25,670,000		30,396,000
Current portion		6,244,000		1,350,000
Total long term liabilities	$	19,426,000	$	29,046,000

Schedule Optional Prepayment Applicable Premium Percentage [Table Text Block]

Optional Prepayment . IM Brands could have prepaid the Old Loan in whole or in part in increments of $500,000, provided that IM Brands paid the following premiums in connection with the prepayment:

Period	Applicable Premium
Prior to September 29, 2013		2	%
Prior to September 29, 2014		1	%
On or After September 29, 2014		0	%

Schedule of Maturities of Long-term Debt [Table Text Block]

Scheduled principal payments are as follows:

	Amount of
	Principal
Date of Payment	Payment

October 1, 2014, January 1, 2015, April 1, 2015 and July 1, 2015	$	250,000

October 1, 2015, January 1, 2016, April 1, 2016 and July 1, 2016	$	625,000

October 1, 2016, January 1, 2017, April 1, 2017 and July 1, 2017	$	750,000

October 1, 2017, January 1, 2018 and April 1, 2018	$	875,000

July 1, 2018	$	3,875,000

Schedule Of Royalty Targets and Percentage Of Potential Earn Out Value [Table Text Block]

The royalty targets and percentage of the potential Earn-Out Value are as follows:

	ROYALTY		EARN-OUT
ROYALTY TARGET PERIODS	TARGET		VALUE
Third Royalty Target Period (October 1, 2013 to September 30, 2014)	$	22,000,000	$	7,500,000
Fourth Royalty Target Period (October 1, 2014 to September 30, 2015)	$	24,000,000	$	7,500,000

APPLICABLE	% OF EARN-OUT
PERCENTAGE	VALUE EARNED
Less than 76%		0	%
76% up to 80%		40	%
80% up to 90%		70	%
90% up to 95%		80	%
95% up to 100%		90	%
100% or greater		100	%

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block]

The fair value for the Warrants was estimated $.12 for each warrant to purchase one share of common stock using a Black-Scholes option-pricing model with the following weighted-average assumptions:

Expected Volatility (i)	22	%
Expected Dividend Yield	0	%
Expected Life (Term) (ii)	2.5 years
Risk-Free Interest Rate	0.39	%

	(i)	Due to the Company’s limited trading activity, the Company used the average volatility of similar companies in its industry.
	(ii)	Due to the Company’s limited history, the expected life of options was calculated using the ‘simplified method’ in accordance with Staff Accounting Bulletin (“SAB”) Topic 14.02 in accordance with SAB 110.

The fair value for all options and warrants was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions:

Expected Volatility (i)	22-42	%
Expected Dividend Yield	0	%
Expected Life (Term) (ii)	2.5 – 5.75 years
Risk-Free Interest Rate	0.39% - 0.98	%

The options that the Company granted under its plans expire at various times, either five, seven or ten years from the date of grant, depending on the particular grant.

	(i)	Due to the Company’s limited trading activity, the Company used the average volatility of similar companies in its industry.
	(ii)	Due to the Company’s limited history, the expected life of options was calculated using the ‘simplified method’ in accordance with Staff Accounting Bulletin (“SAB”) Topic 14.02 in accordance with SAB 110.

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the Company’s stock options for the Current Nine Months is as follows:

			Weighted-Average
	Options		Exercise Price
Outstanding at January 1, 2013		345,000	$	4.54
Granted		-		-
Canceled		-		-
Exercised		-		-
Expired/Forfeited		(1,375)		3.55
Outstanding at September 30, 2013		343,625	$	4.55
Exercisable at September 30, 2013		213,483	$	4.64

Schedule of Share-based Compensation, Stock Warrant Activity [Table Text Block]

A summary of the Company’s warrants for the Current Nine Months is as follows:

			Weighted-Average
	Warrants		Exercise Price
Outstanding at January 1, 2013		1,132,043	$	2.47
Granted (See private offering of equity securities above)		312,500		5.00
Canceled		-		-
Exercised		-		-
Expired/Forfeited		-		-
Outstanding at September 30, 2013 and expected to vest.		1,444,543	$	3.01
Exercisable at September 30, 2013		1,444,543	$	3.01

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

A summary of the Company’s restricted stock for the Current Nine Months is as follows:

			Weighted-Average
	Restricted		Grant Date Fair
	Shares		Value
Outstanding at January 1, 2013		964,607	$	3.00
Granted		1,399,750		3.86
Canceled		-		-
Vested		(16,868)		3.00
Expired/Forfeited		-		-
Outstanding at September 30, 2013		2,347,489	$	3.51

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Shares used in calculating basic and diluted loss per share are as follows:

	Three Months ended				Nine Months ended
	September 30,				September 30,
	2013		2012		2013		2012
Basic		10,167,769		7,517,151		8,892,303		6,772,244
Effect of exercise of stock options		4,241		n/a		4,644		n/a
Effect of exercise of warrants		581,840		n/a		581,840		n/a
Diluted		10,753,850		7,517,151		9,478,787		6,772,244

Schedule of Weighted Average Number of Shares [Table Text Block]

The computation of basic and diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive:

	Three Months ended				Nine Months ended
	September 30,				September 30,
	2013		2012		2013		2012
Stock options and warrants		1,126,925		580,825		949,498		658,208

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The provision (benefit) for income taxes using the statutory federal tax rate as compared to the Company’s effective tax rate is summarized as follows:

	Three Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2013
Federal statutory rate		34.0	%	$	34.0	%
State income taxes, net of federal benefit		7.2	%		7.2	%
Gain on reduction of earn-out		(92.5)	%		(677.2)	%
Change in state rate		15.2	%		111.3	%
Fin 18 Adjustment		(1.5)	%		(4.9)	%
Other		0.3	%		5.6	%
Income tax benefit		(37.3)	%	$	(524.0)	%

Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table presents the key performance information of the Company’s reportable segments (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Revenue:
Net licensing revenue	$	3,075,000	$	2,765,000	$	8,863,000	$	7,815,000
Design and service fee income		714,000		960,000		1,288,000		1,614,000
Design and licensing revenues		3,789,000		3,725,000		10,151,000		9,429,000
Retail sales		130,000		-		162,000		-
Total revenues	$	3,919,000	$	3,725,000	$	10,313,000	$	9,429,000

Operating income (loss):
Design and licensing	$	2,797,000	$	(426,000)	$	1,966,000	$	(548,000)
Retail		(140,000)		-		(233,000)		-
Total operating income (loss)	$	2,657,000	$	(426,000)	$	1,733,000	$	(548,000)

	Three Months Ended September 30,				Nine Months Ended September 30,
Capital Expenditures	2013		2012		2013		2012
Property and equipment :
Design and licensing	$	30,000	$	19,000	$	127,000	$	110,000
Retail		23,000		-		141,000		-
Total capital expenditures	$	53,000	$	19,000	$	268,000	$	110,000

	September 30,		December 31,
Long Lived Assets	2013		2012
Trademarks and other intangibles, net :
Design and licensing	$	45,440,000	$	45,835,000
Retail		-		-
Total Trademarks and other intangibles, net	$	45,440,000	$	45,835,000

Property and equipment :
Design and licensing	$	984,000	$	1,113,000
Retail		131,000		-
Total property and equipment	$	1,115,000	$	1,113,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Probability of Tax Benefit, Percentage			50.00%
Accounts receivable, net	$ 4,688,000		$ 4,688,000		$ 3,428,000
Allowance for Doubtful Accounts Receivable	70,000		70,000		$ 25,000
Inventory Write-down	5,000		9,000
Gain Loss On Reduction of Contingent Obligations	$ 5,100,000	$ 0	$ 5,100,000	$ 0

Trademarks, Goodwill and Other Intangibles (Details) - USD ($)	Sep. 30, 2013	Dec. 31, 2012
Trademarks	$ 44,500,000	$ 44,500,000
Licensing agreements	2,000,000	2,000,000
Accumulated amortization, licensing agreements	(1,060,000)	(665,000)
Net carrying amount	$ 45,440,000	$ 45,835,000

Trademarks, Goodwill and Other Intangibles (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Amortization of Intangible Assets	$ 132,000	$ 132,000	$ 395,000	$ 396,000
Business Acquisition Purchase Price Allocation Goodwill	$ 12,371,000		$ 12,371,000

Significant Contracts (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Significant Contracts (Details Textual) - USD ($)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Royalty Agreement With QVC [Member]
Royalty Revenue	$ 1,992,000	$ 1,900,000	$ 5,976,000	$ 5,700,000
Revenue from Royalty, Percentage	51.00%	51.00%	58.00%	60.00%
Accounts Receivable, Gross	$ 1,901,000		$ 1,901,000		$ 1,901,000
Accounts Receivables, Percentage	41.00%		41.00%		55.00%
Royalty Agreement With LCNY [Member]
Royalty Revenue	$ 395,000	$ 458,000	$ 1,395,000	$ 1,208,000
Revenue from Royalty, Percentage	10.00%	12.00%	14.00%	13.00%
Accounts Receivable, Gross	$ 1,792,000		$ 1,792,000		$ 699,000
Accounts Receivables, Percentage	38.00%		38.00%		20.00%

Debt (Details) - USD ($)	Sep. 30, 2013	Dec. 31, 2012
Term Loan	$ 13,000,000	$ 12,579,000
Seller Note	6,244,000	6,306,000
Contingent obligation - Seller	6,366,000	11,466,000
Other long term liabilities	60,000	45,000
Total	25,670,000	30,396,000
Current portion	6,244,000	1,350,000
Total long term liabilities	$ 19,426,000	$ 29,046,000

Debt (Details 1)	9 Months Ended
Debt (Details 1)	Sep. 30, 2013
Prior to September 29, 2013 [Member]
Applicable Premium	2.00%
Prior To September 29, 2014 [Member]
Applicable Premium	1.00%
On Or After September 29, 2014 [Member]
Applicable Premium	0.00%

Debt (Details 2)	9 Months Ended
Debt (Details 2)	Sep. 30, 2013 USD ($)
October 1, 2014, January 1, 2015, April 1, 2015 and July 1, 2015 [Member]
Amount Of Principal Payment	$ 250,000
October 1, 2015, January 1, 2016, April 1, 2016 and July 1, 2016 [Member]
Amount Of Principal Payment	625,000
October 1, 2016, January 1, 2017, April 1, 2017 and July, 2017 [Member]
Amount Of Principal Payment	750,000
October 1, 2017, January 1, 2018 and April 1, 2018 [Member]
Amount Of Principal Payment	875,000
July 1, 2018 [Member]
Amount Of Principal Payment	$ 3,875,000

Debt (Details 3)	9 Months Ended
Debt (Details 3)	Sep. 30, 2013 USD ($)
Third Royalty Target Period [Member]
ROYALTY TARGET	$ 22,000,000
EARN-OUT VALUE	$ 7,500,000
ROYALTY TARGET PERIODS	October 1, 2013 to September 30, 2014
Fourth Royalty Target Period [Member]
ROYALTY TARGET	$ 24,000,000
EARN-OUT VALUE	$ 7,500,000
ROYALTY TARGET PERIODS	October 1, 2014 to September 30, 2015
Applicable Less than 76% [Member]
% OF EARN-OUT VALUE EARNED	0.00%
Applicable 76% up to 80% [Member]
% OF EARN-OUT VALUE EARNED	40.00%
Applicable 80% up to 90% [Member]
% OF EARN-OUT VALUE EARNED	70.00%
Applicable 90% up to 95% [Member]
% OF EARN-OUT VALUE EARNED	80.00%
Applicable 95% up to 100% [Member]
% OF EARN-OUT VALUE EARNED	90.00%
Applicable 100% or Greater [Member]
% OF EARN-OUT VALUE EARNED	100.00%

Debt (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
Debt (Details Textual) - USD ($)	Sep. 29, 2011	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Long-term Debt, Contingent Payment of Principal or Interest				The principal amount of the Loan was payable quarterly as follows: 2.5% on January 5, 2013 through October 5, 2013; 3.75% on January 5, 2014 through October 5, 2014; 6.25% on January 5, 2015 through October 5, 2015; 12.5% on January 5, 2016 through the maturity date, which is the date that is 5 years after the Closing Date.
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate		8.50%		8.50%
Long Term Debt Other		$ 500,000		$ 500,000
Proceeds from Issuance of Long-term Debt, Total				$ 13,000,000	$ 0
Debt Instrument, Description				Company shall prepay the outstanding amount of the New Loan from excess cash flow (“Cash Flow Recapture”) for each fiscal year commencing year ending December 31, 2014 in arrears in an amount equal to twenty percent (20%) of such Cash Flow Recapture.
Gains (Losses) on Extinguishment of Debt		(1,351,000)	$ 0	$ (1,351,000)	0
Debt Instrument, Unamortized Deferred Costs And Discount		381,000		381,000
prepayment fee of debt				$ 781,000
Debt Instrument, Maturity Date, Description				(i) the fair market value of the Common Stock on the Subsequent Seller Maturity Date and (ii) $4.50, subject to certain adjustments. If the maturity date of the Seller Note is extended, we will also have the option to repay the outstanding principal amount of the Seller Note on the Subsequent Seller Maturity Date in cash or by issuing the number of shares of Common Stock obtained by dividing the principal amount of the Seller Note outstanding on the Subsequent Seller Maturity Date by the fair market value of the Common Stock on the Seller Maturity Date. In addition, at any time the Seller Note is outstanding, the Company has the right to convert the Seller Note, in whole or in part, into the number of shares of Common Stock obtained by dividing the principal amount to be converted by the fair market value of the Common Stock at the time of the conversion, so long as the fair market value of our Common Stock is at least $4.50.
Unamortization of Debt Discount (Premium)				$ 633,000		$ 1,071,000
Other Notes Payable, Current		6,244,000		6,244,000
Other Notes Payable, Noncurrent		6,244,000		6,244,000		6,306,000
Business Acquisition, Contingent Consideration, at Fair Value		6,366,000		6,366,000		11,466,000
Interest Expense, Debt		189,000	$ 286,000	738,000	858,000
Gain on Reduction of Contingent Obligations		$ 5,100,000		$ 5,100,000
Prepayment Fee Percentage		1.50%		1.50%
Proceeds from (Repayments of) Other Long-term Debt		$ (500,000)		$ (500,000)	$ 0
Seller Note [Member]
Debt Instrument, Face Amount	$ 7,377,000
Stated Interest Rate on Note Payable	0.25%
Subordinated Borrowing, Interest Rate	9.25%
Debt Instrument, Unamortized Discount	$ 1,740,000
Imputed Annual Interest Rate		9.00%		9.00%
Initial Outstanding Value of Long-term Debt or Borrowing	5,637,000
Initial Prepaid Interest	123,000
Seller Note [Member] \| Midmarket Capital Partners Llc [Member]
Long-term Debt, Principal Payments	$ 13,500,000
Earn-Out Obligation [Member]
Exercise Price of Common Stock				$ 4.50
Royalty Earn Out Value				$ 7,500,000
Business Acquisition, Contingent Consideration, at Fair Value		$ 3,600,000		3,600,000		$ 8,700,000
QVC Inc [Member]
Earn Out Payments		2,766,000		2,766,000
Business Acquisitions, Net Royalty Income		$ 2,500,000		$ 2,500,000
Business Acquisition, Description of Acquired Entity				stock based upon the greater of (x) $4.50 per share, and (y) the average stock price for the last twenty days prior to the time of such issuance (the “QVC Earn-Out”). The current term of the QVC Agreement runs through September 30, 2015.
Hapoalim B.M [Member]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate		4.44%		4.44%
Proceeds from Issuance of Long-term Debt, Total				$ 13,000,000

Stockholders' Equity (Details)

9 Months Ended

Sep. 30, 2013

Expected Volatility

22.00%

^[1]

Expected Dividend Yield

0.00%

Expected Life (Term)

2 years 6 months

^[2]

Risk-Free Interest Rate

0.39%

Equity Option [Member]

Expected Volatility Rate, Minimum

22.00%

^[1]

Expected Volatility Rate, Maximum

42.00%

^[1]

Expected Dividend Yield

0.00%

Risk-Free Interest Rate, Minimum

0.39%

Risk-Free Interest Rate, Maximum

0.98%

Minimum [Member] | Equity Option [Member]

Expected Life (Term)

2 years 6 months

^[2]

Maximum [Member] | Equity Option [Member]

Expected Life (Term)

5 years 9 months

^[2]

[1]	Due to the Company’s limited trading activity, the Company used the average volatility of similar companies in its industry.
[2]	Due to the Company’s limited history, the expected life of options was calculated using the ‘simplified method’ in accordance with Staff Accounting Bulletin (“SAB”) Topic 14.02 in accordance with SAB 110.

Stockholders' Equity (Details 1)	9 Months Ended
Stockholders' Equity (Details 1)	Sep. 30, 2013 $ / shares shares
Options, Outstanding at January 1, 2013 \| shares	345,000
Options, Granted \| shares	0
Options, Canceled \| shares	0
Options, Exercised \| shares	0
Options, Expired/Forfeited \| shares	(1,375)
Options, Outstanding at September 30, 2013 \| shares	343,625
Options, Exercisable at September 30, 2013 \| shares	213,483
Weighted-Average Exercise Price, Outstanding at January 1, 2013 \| $ / shares	$ 4.54
Weighted-Average Exercise Price, Granted \| $ / shares	0
Weighted-Average Exercise Price Canceled \| $ / shares	0
Weighted-Average Exercise Price, Exercised \| $ / shares	0
Weighted-Average Exercise Price, Expired/Forfeited \| $ / shares	3.55
Weighted-Average Exercise Price, Outstanding at September 30, 2013 \| $ / shares	4.55
Weighted-Average Exercise Price, Exercisable at September 30, 2013 \| $ / shares	$ 4.64

Stockholders' Equity (Details 2) - Warrant [Member]	9 Months Ended
Stockholders' Equity (Details 2) - Warrant [Member]	Sep. 30, 2013 $ / shares shares
Warrants, Outstanding at January 1, 2013 \| shares	1,132,043
Warrants, Granted (See private offering of equity securities above) \| shares	312,500
Warrants, Canceled \| shares	0
Warrants, Exercised \| shares	0
Warrants, Expired/Forfeited \| shares	0
Warrants, Outstanding at September 30, 2013 and expected to vest \| shares	1,444,543
Warrants, Exercisable at September 30, 2013 \| shares	1,444,543
Weighted-Average Exercise Price, Outstanding at January 1, 2013 \| $ / shares	$ 2.47
Weighted-Average Exercise Price, Granted (See private offering of equity securities above) \| $ / shares	5.00
Weighted-Average Exercise Price, Canceled \| $ / shares	0
Weighted-Average Exercise Price, Exercised \| $ / shares	0
Weighted-Average Exercise Price, Expired/Forfeited \| $ / shares	0
Weighted-Average Exercise Price, Outstanding at September 30, 2013 and expected to vest \| $ / shares	3.01
Weighted-Average Exercise Price, Exercisable at September 30, 2013 \| $ / shares	$ 3.01

Stockholders' Equity (Details 3) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2013 $ / shares shares
Restricted Shares, Outstanding at January 1, 2013 \| shares	964,607
Restricted Shares, Granted \| shares	1,399,750
Restricted Shares, Canceled \| shares	0
Restricted Shares, Vested \| shares	(16,868)
Restricted Shares, Expired/Forfeited \| shares	0
Restricted Shares, Outstanding at September 30, 2013 \| shares	2,347,489
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2013 \| $ / shares	$ 3.00
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	3.86
Weighted-Average Grant Date Fair Value, Canceled \| $ / shares	0
Weighted-Average Grant Date Fair Value, Vested \| $ / shares	3.00
Weighted-Average Grant Date Fair Value, Expired/Forfeited \| $ / shares	0
Weighted-Average Grant Date Fair Value, Outstanding at September 30, 2013 \| $ / shares	$ 3.51

Stockholders' Equity (Details Textual) - USD ($)		1 Months Ended						3 Months Ended		9 Months Ended
Stockholders' Equity (Details Textual) - USD ($)	Jun. 05, 2013	May 01, 2013	Apr. 30, 2013	Nov. 15, 2012	Jun. 01, 2012	May 31, 2012	Apr. 17, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Common Stock, Shares, Issued								10,167,427		10,167,427		7,339,979
Proceeds from Issuance of Common Stock	$ 5,000,000
Common Stock, Capital Shares Reserved for Future Issuance								3,719,959		3,719,959
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date										10.00%
Shares Issued, Price Per Share								$ 3.86		$ 3.86
Sale of Stock, Price Per Share								$ 3.499		$ 3.499
Exercise Price of Warrants	$ 5.00
Management [Member]
Common Stock, Shares, Issued	1,428,573
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			2 years
Warrant [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Forfeited In Period										0
Allocated Share-based Compensation Expense								$ 11,000	$ 11,000	$ 33,000	$ 33,000
Warrant [Member] \| Maximum [Member] \| Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value										$ 0.12
Licensee Warrants [Member]
Warrants Issued for the Purchase of Common Stock										75,000
Exercise Price of Common Stock										$ 5.50
Term Of Warrants										5 years
Discount On Licensing Revenue								1,000	1,000	$ 3,000	3,000
Additional Amount Expected To Be Amortized										14,000
Employee Stock Option [Member]
Allocated Share-based Compensation Expense								19,000	23,000	58,000	51,000
Expected Share Based Compensation Expenses For Next 7 Months								22,000		$ 22,000
Stock Options Issued Shares Former Equity Plan										576
Stock Options Issued Value Per Share Former Equity Plan										$ 728
Restricted Stock [Member]
Allocated Share-based Compensation Expense								2,266,000	$ 2,043,000	$ 4,562,000	$ 3,479,000
Expected Share Based Compensation Expenses For Next 15 Months								823,000		823,000
Additional Amount Expected To Be Expensed								$ 186,000		186,000
Equity Incentive Plan 2011 [Member]
Proceeds from Issuance of Common Stock										$ 5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant								1,931,215		1,931,215
Equity Incentive Plan 2011 [Member] \| Management [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			1,270,000		242,775		1,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number			195,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period										509,488
Stock Repurchased During Period, Shares				209,623
Equity Incentive Plan 2011 [Member] \| Management [Member] \| November 15 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number							1,025,000
Equity Incentive Plan 2011 [Member] \| Management [Member] \| May 15 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number								551,747		551,747
Options, Shares expected to vest after December 31, 2012							37,500
Equity Incentive Plan 2011 [Member] \| Management [Member] \| May 15 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number								38,765		38,765
Options, Shares expected to vest after December 31, 2012							37,500
Equity Incentive Plan 2011 [Member] \| Management [Member] \| December 1 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number					242,775
Equity Incentive Plan 2011 [Member] \| Management [Member] \| September 30 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number			1,075,000
Equity Incentive Plan 2011 [Member] \| Management [Member] \| March 31 2014 [Member]
Percentage Of Share Based Payment Award Vested In Year One			50.00%
Equity Incentive Plan 2011 [Member] \| Management [Member] \| March 31 2015 [Member]
Percentage Of Share Based Payment Award Vested In Year Two			50.00%
Equity Incentive Plan 2011 [Member] \| Non Executive Employees [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		29,750					50,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period										24,916
Stock Repurchased During Period, Shares				8,540
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures						105,500
Restricted Stock Award Exercise Price Per Share						$ 3.00
Percentage Of Share Based Payment Award Vested In Year One						50.00%
Percentage Of Share Based Payment Award Vested In Year Two						50.00%
Equity Incentive Plan 2011 [Member] \| Non Executive Employees [Member] \| November 15 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number							50,000	25,084		25,084
Equity Incentive Plan 2011 [Member] \| Non Executive Employees [Member] \| April 30 2014 [Member]
Percentage Of Share Based Payment Award Vested In Year One		50.00%
Equity Incentive Plan 2011 [Member] \| Non Executive Employees [Member] \| April 30 2015 [Member]
Percentage Of Share Based Payment Award Vested In Year Two		50.00%
Equity Incentive Plan 2011 [Member] \| Non Management Directors [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			100,000		138,335
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period										70,863
Stock Repurchased During Period, Shares				18,870
Equity Incentive Plan 2011 [Member] \| Non Management Directors [Member] \| December 1 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number					138,335			67,472		67,472
Equity Incentive Plan 2011 [Member] \| Non Management Directors [Member] \| March 31 2014 [Member]
Percentage Of Share Based Payment Award Vested In Year One			50.00%
Equity Incentive Plan 2011 [Member] \| Non Management Directors [Member] \| March 31 2015 [Member]
Percentage Of Share Based Payment Award Vested In Year Two			50.00%
Equity Incentive Plan 2011 [Member] \| Restricted Stock [Member] \| Non Executive Employees [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Forfeited In Period						26,750

Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
Earnings Per Share (Details) - shares	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic	10,167,769	7,517,151	8,892,303	6,772,244
Diluted	10,753,850	7,517,151	9,478,787	6,772,244
Warrant [Member]
Effect of exercise of warrants/options	581,840		581,840
Equity Option [Member]
Effect of exercise of warrants/options	4,241		4,644

Earnings Per Share (Details 1) - shares	3 Months Ended		9 Months Ended
Earnings Per Share (Details 1) - shares	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Stock Option [Member]
Stock options and warrants	1,126,925	580,825	949,498	658,208

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Federal statutory rate	34.00%		34.00%
State income taxes, net of federal benefit	7.20%		7.20%
Gain on reduction of earn-out	(92.50%)		(677.20%)
Change in state rate	15.20%		111.30%
Fin 18 Adjustment	(1.50%)		(4.90%)
Other	0.30%		5.60%
Income tax benefit	(37.30%)	(51.50%)	(524.00%)	(23.80%)

Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Effective Income Tax Rate, Continuing Operations	(37.30%)	(51.50%)	(524.00%)	(23.80%)
Gain On Reduction Of Contingent Obligations	$ 5.1

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
Segment Information (Details) - USD ($)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Revenues
Net licensing revenue	$ 3,075,000	$ 2,765,000	$ 8,863,000	$ 7,815,000
Design and service fee income	714,000	960,000	1,288,000	1,614,000
Design and licensing revenues	3,789,000	3,725,000	10,151,000	9,429,000
Retail sales	130,000	0	162,000	0
Total revenues	3,919,000	3,725,000	10,313,000	9,429,000
Operating income (loss):
Total operating income (loss)	2,657,000	(426,000)	1,733,000	(548,000)
Property and equipment:
Total capital expenditures	53,000	19,000	268,000	110,000
Long Lived Assets
Total Trademarks and other intangibles, net	45,440,000		45,440,000		$ 45,835,000
Total property and equipment	1,115,000		1,115,000		1,113,000
Design And Licensing [Member]
Operating income (loss):
Total operating income (loss)	2,797,000	(426,000)	1,966,000	(548,000)
Property and equipment:
Total capital expenditures	30,000	19,000	127,000	110,000
Long Lived Assets
Total Trademarks and other intangibles, net	45,440,000		45,440,000		45,835,000
Total property and equipment	984,000		984,000		1,113,000
Retail [Member]
Operating income (loss):
Total operating income (loss)	(140,000)	0	(233,000)	0
Property and equipment:
Total capital expenditures	23,000	$ 0	141,000	$ 0
Long Lived Assets
Total Trademarks and other intangibles, net	0		0		0
Total property and equipment	$ 131,000		$ 131,000		$ 0

Related Party Transactions (Details Textual) - USD ($)		1 Months Ended			3 Months Ended		9 Months Ended
Related Party Transactions (Details Textual) - USD ($)	Jun. 05, 2013	Jun. 05, 2013	Jul. 10, 2012	Aug. 02, 2011	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 29, 2011
Repayments of Related Party Debt						$ 37,500		$ 75,000
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized						26,000		80,000
Related Party Transaction, Amounts of Transaction							$ 114,000	68,000
Proceeds from Issuance of Common Stock	$ 5,000,000
Todd Slater [Member]
Commission Rate to Related Party			15.00%
Fees Earned Separate from Buy Out Payment					$ 12,000	10,000	35,000	18,000
Related Party Transaction, Amounts of Transaction			$ 163,000
Adam Dweck [Member]
Commission Rate to Related Party				5.00%
Fees Earned Separate from Buy Out Payment					$ 4,000	3,000	$ 14,000	8,000
Warrants Exercise Price One					$ 5.00		$ 5.00
Related Party Transaction Amounts Of Transaction One					$ 500,000		$ 500,000
Warrants Issued To Purchase Common Stock Two					12,500		12,500
Warrants Exercise Price Two					$ 5.00		$ 5.00
Related Party Transaction Amounts Of Transaction Two					$ 1,000,000		$ 1,000,000
Warrants Issued To Purchase Common Stock Three					25,000		25,000
Related Party Transaction Amounts Of Transaction Three					$ 2,000,000		$ 2,000,000
Class Of Warrant Or Rights Expired							Aug. 02, 2016
Warrant Vested During First Milestone					12,500		12,500
Warrant Vested During Second Milestone					12,500		12,500
Warrant Issued To Purchase Common Stock					$ 2,500		$ 2,500
Jones Texas, Inc [Member]
Commission Rate to Related Party							15.00%
Fees Earned Separate from Buy Out Payment					$ 0	$ 1,000	$ 0	$ 2,000
Related Party Transaction, Purchases from Related Party							$ 2,300
Earthbound, Llc [Member]
Due from Related Parties									$ 1,500,000
Threadstone Advisors, LLC [Member]
Fees Earned Separate from Buy Out Payment		$ 280,000
Proceeds from Issuance Initial Public Offering		$ 4,000,000
Equity Method Investment, Ownership Percentage	5.00%	5.00%
DiSanto Trust [Member]
Stock Issued During Period, Shares, Common Stock							285,715
Stock Issued During Period, Shares, Purchase Of Warrants							62,500
Proceeds from Issuance of Common Stock							$ 1,000,003

Stockholders' Equity (Details 1)	9 Months Ended
Stockholders' Equity (Details 1)	Sep. 30, 2013 $ / shares shares
Options, Outstanding at January 1, 2013 \| shares	345,000
Options, Granted \| shares	0
Options, Canceled \| shares	0
Options, Exercised \| shares	0
Options, Expired/Forfeited \| shares	(1,375)
Options, Outstanding at September 30, 2013 \| shares	343,625
Options, Exercisable at September 30, 2013 \| shares	213,483
Weighted-Average Exercise Price, Outstanding at January 1, 2013 \| $ / shares	$ 4.54
Weighted-Average Exercise Price, Granted \| $ / shares	0
Weighted-Average Exercise Price Canceled \| $ / shares	0
Weighted-Average Exercise Price, Exercised \| $ / shares	0
Weighted-Average Exercise Price, Expired/Forfeited \| $ / shares	3.55
Weighted-Average Exercise Price, Outstanding at September 30, 2013 \| $ / shares	4.55
Weighted-Average Exercise Price, Exercisable at September 30, 2013 \| $ / shares	$ 4.64

Stockholders' Equity (Details 2) - Warrant [Member]	9 Months Ended
Stockholders' Equity (Details 2) - Warrant [Member]	Sep. 30, 2013 $ / shares shares
Warrants, Outstanding at January 1, 2013 \| shares	1,132,043
Warrants, Granted (See private offering of equity securities above) \| shares	312,500
Warrants, Canceled \| shares	0
Warrants, Exercised \| shares	0
Warrants, Expired/Forfeited \| shares	0
Warrants, Outstanding at September 30, 2013 and expected to vest \| shares	1,444,543
Warrants, Exercisable at September 30, 2013 \| shares	1,444,543
Weighted-Average Exercise Price, Outstanding at January 1, 2013 \| $ / shares	$ 2.47
Weighted-Average Exercise Price, Granted (See private offering of equity securities above) \| $ / shares	5.00
Weighted-Average Exercise Price, Canceled \| $ / shares	0
Weighted-Average Exercise Price, Exercised \| $ / shares	0
Weighted-Average Exercise Price, Expired/Forfeited \| $ / shares	0
Weighted-Average Exercise Price, Outstanding at September 30, 2013 and expected to vest \| $ / shares	3.01
Weighted-Average Exercise Price, Exercisable at September 30, 2013 \| $ / shares	$ 3.01

Stockholders' Equity (Details 3) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2013 $ / shares shares
Restricted Shares, Outstanding at January 1, 2013 \| shares	964,607
Restricted Shares, Granted \| shares	1,399,750
Restricted Shares, Canceled \| shares	0
Restricted Shares, Vested \| shares	(16,868)
Restricted Shares, Expired/Forfeited \| shares	0
Restricted Shares, Outstanding at September 30, 2013 \| shares	2,347,489
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2013 \| $ / shares	$ 3.00
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	3.86
Weighted-Average Grant Date Fair Value, Canceled \| $ / shares	0
Weighted-Average Grant Date Fair Value, Vested \| $ / shares	3.00
Weighted-Average Grant Date Fair Value, Expired/Forfeited \| $ / shares	0
Weighted-Average Grant Date Fair Value, Outstanding at September 30, 2013 \| $ / shares	$ 3.51