INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2015

Intangible Assets Net Excluding Goodwill [Abstract]

Intangible Assets

6.       INTANGIBLE ASSETS

On December 17, 2015, the Company acquired the SBD brand for a cash payment of $15,000. The acquisition was financed with existing cash.

The Company will begin developing South Beach Diet meal programs, products, and services as a distinct brand with the intent to launch in both the direct-to-consumer and retail channels in 2017. The acquisition will provide consumers with additional quality choices and enable the Company to capture an even more significant share of the commercial weight loss market as it further leverages its expertise in product development, marketing, ecommerce, supply chain logistics and retail.

The preliminary allocation of the purchase price is to the SBD trade name and is expected to be amortized on a straight-line basis over a period of 15 years. The approximate fair value of the trade name is based on preliminary estimates and assumptions. The fair value measurement method used to measure the assets acquired utilizes a number of significant unobservable inputs or Level 3 assumptions. These assumptions include, among others, projections of the acquired businesses future operating results, the implied fair value of assets using an income approach by preparing a discounted cash flow analysis and other subjective assumptions. These preliminary estimates and assumptions could change during the purchase price measurement period as the Company finalizes the valuation of the asset acquired.

No amortization expense was recorded for 2015. Estimated amortization expense for identifiable intangible assets for the next five years is expected to be as follows:

2016	$   1,000
2017	1,000
2018	1,000
2019	1,000
2020	1,000

The acquisition was accounted for under the acquisition method of accounting. During 2015, SBD did not contribute to the operations of the Company as the product offering will be developed over the next year. The Company incurred $2,498 in transaction costs associated with the acquisition of SBD, which have been charged to expense in 2015.

Additionally, the Company had $84 of domain names acquired in previous years with indefinite lives that are not being amortized.