Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisition

Acquisition

7. Acquisitions

Upon the closing of an acquisition, management estimates the fair values of assets and liabilities, acquired and consolidates the acquisition as quickly as possible. However, it routinely takes time to obtain all of the pertinent information to finalize the acquired company's balance sheet and supporting schedules and to adjust the acquired company's accounting policies, procedures, books and records to the Company's standards. As a result, it may take several quarters before the Company is able to finalize those initial fair value estimates. Accordingly, it is not uncommon for initial estimates to be subsequently revised.

On April 18, 2011, the Company through its 51% owned subsidiary, executed an Asset Purchase Agreement ("APA") to acquire the trademarks and web domain of the "Zubaz" brand name. The total purchase price stated in the APA was $400, of which $200 was paid upon execution and the remainder shall be paid on January 6, 2012. The Company is the guarantor for the remaining balance to be paid on behalf of the subsidiary. The unpaid balance of $200 is included in accrued expenses at June 30, 2011.

Management has determined the value of the trademarks to be $300 and the value of the domain name to be $100. The domain name was estimated to have a useful life of five years.