Debt (Tables)

3 Months Ended

Mar. 31, 2015

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

	March 31,		December 31,
	2015		2014
IM Term Loan	$	12,500,000	$	12,750,000
JR Term Loan		9,000,000		9,000,000
H Term Loan		10,000,000		10,000,000
IM Seller Note		4,692,000		5,366,000
Ripka Seller Notes (*)		2,683,000		4,398,000
Contingent obligation - IM Seller (*)		5,766,000		5,766,000
Contingent obligation - JR Seller		3,784,000		3,784,000
Total		48,425,000		51,064,000
Current portion (*)		12,381,000		11,416,000
Total long-term debt	$	36,044,000	$	39,648,000

(*) $5.77 million of the current portion of long-term debt consists of contingent obligation related to IM Brands, described below, which is payable in common stock or cash, at the Company’s option. The current portion of long-term debt also includes the $2.24 million fair value of the Ripka Seller Notes, which was redeemed on April 21, 2015 for shares of our common stock (See Note 10, Subsequent Events).

IM Term Loan [Member]

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

Scheduled principal payments are as follows:

	Amount of
	Principal
Year Ending December 31,	Payment
2015 (April 1 through December 31)	$	1,125,000
2016		2,625,000
2017		3,125,000
2018		5,625,000
Total	$	12,500,000

Debt Instrument Principal Payments [Table Text Block]

The remaining scheduled principal payments (including amortization of imputed interest) are as follows:

	Payment
Payment Date	Amount
January 31, 2016 (i)	$	750,000
September 30, 2016 (ii)	$	4,377,432

	(i)	Payable in cash subject to BHI approving the cash payment. If BHI does not approve the cash payment, the amount shall be payable in shares of Common Stock subject to the provisions described above.
	(ii)	Payable in stock or cash at the Company’s sole discretion. Amounts paid in cash require BHI’s approval. Amounts payable in shares of Common Stock are subject to the provisions described above.

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:

			Earn-Out
Royalty Target Period	Royalty Target		Value

Royalty Target Period (October 1, 2014 to September 30, 2015)	$	24,000,000	$	7,500,000

IM Ready will receive a percentage of the IM 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.

	% of
	Earn-Out
	Value
Applicable Percentage	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	%

H Term Loan [Member]

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

Scheduled principal payments of the H Loan are as follows:

	Amount of
	Principal
Year Ending December 31,	Payment
2016	$	1,500,000
2017		2,500,000
2018		3,000,000
2019		3,000,000
Total	$	10,000,000

JR Term Loan [Member]

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

Scheduled principal payments, which begin April 1, 2015, are as follows:

	Amount of
	Principal
Year Ending December 31,	Payment
2015 (April 1 through December 31)	$	1,125,000
2016		2,250,000
2017		2,875,000
2018		2,250,000
2019		500,000
Total	$	9,000,000