Business Segment Information

6 Months Ended

Jun. 30, 2011

Business Segment Information

Business Segment Information

3. Business Segment Information

The Company has two reportable segments as identified by information reviewed by the Company's chief operating decision makers (CODM), our CEO and SVP Finance. The divisions whose customers are reseller's of our goods have their results reflected in the manufacturing/distribution segment. The retail segment is made up of many locations for our inventory. Revenues are achieved by moving inventory through our sales channels to reach and expand our customer base. These channels include the Internet, stores and our catalogues. Hence, customers who are the end users of our goods have their results reflected in our retail segment.

The Manufacturing/Distribution segment represents the manufacturing and wholesaling of sports memorabilia products and acrylic display cases. Sales are handled primarily through in-house salespersons that sell to specialty retailers and other distributors in the United States. The Company's manufacturing and distributing facilities are located in the United States. The majority of the Company's products are manufactured in these facilities.

The Retail Operations segment is multi-channel and features numerous Internet sites, catalogues, stadium and some traditional brick and mortar stores:

All of the Company's revenue generated during the six and three months ended June 30, 2011 and June 30, 2010, was derived in the United States and all of the Company's assets are located in the United States.

Summarized financial information concerning the Company's reportable segments is shown in the following tables. Corporate related items, results of insignificant operations and income and expenses not allocated to reportable segments are included in the reconciliations to consolidated results table.

Segment information for the six and three month periods ended June 30, 2011 and June 30, 2010 was as follows:

Six Months Ended:	Manufacturing/ Distribution			Retail Operations			Total
June 30, 2011
Net sales	$	7,175		$	36,966		$	44,141
Intersegment net sales		(2,044	)		—			(2,044	)
Operating (loss)		(759	)		(1,708	)		(2,467	)
Total assets	$	19,019			41,253			60,271
June 30, 2010
Net sales	$	6,208		$	25,966		$	32,174
Intersegment net sales		(1,547	)		—			(1,547	)
Operating (loss)		(444	)		(689	)		(1,133	)
Total assets	$	18,459		$	30,828		$	49,287

Reconciliation to consolidated amounts is as follows:

	Six-Months Ended
	6/30/11			6/30/10
Revenues:
Total revenues for reportable segment	$	44,141		$	32,174
Other revenues		80			283
Eliminations of intersegment		(2,044	)		(1,547	)
Total consolidated revenues	$	42,177		$	30,910
Pre-tax (loss):
Total operating (loss) for reportable segments	$	(2,467	)	$	(1,133	)
Other (loss)*		(2,115	)		(1,510	)
Less: Interest expense		322			759
Total consolidated (loss) before taxes	$	(4,904	)	$	(3,402	)

Three Months Ended:	Manufacturing/ Distribution			Retail Operations			Total
June 30, 2011
Net sales	$	2,679		$	16,741		$	19,420
Intersegment net sales		(830	)		—			(830	)
Operating (loss)		(592	)		(1,166	)		(1,758	)
Total assets	$	19,019		$	41,253		$	60,271
June 30, 2010
Net sales	$	2,648		$	12,455		$	15,103
Intersegment net sales		(829	)		—			(829	)
Operating (loss)		(358	)		(332	)		(690	)
Total assets	$	18,459		$	30,828		$	49,287

Reconciliation to consolidated amounts is as follows:

	Three-Months Ended
	6/30/11			6/30/10
Revenues:
Total revenues for reportable segment	$	19,420		$	15,103
Other revenues		53			92
Eliminations of intersegment		(830	)		(829	)
Total consolidated revenues	$	18,643		$	14,366
Pre-tax (loss):
Total operating (loss) for reportable segments		(1,758	)		(690	)
Other (loss)*		(816	)		(859	)
Less: Interest expense		198			414
Total consolidated (loss) before taxes	$	(2,772	)	$	(1,963	)

* These are "unallocated" costs and expenses that have not been allocated to the reportable segments. Some examples of these unallocated overhead costs which are consistent with the Company's internal accounting policies are executive salaries and benefits; corporate office occupancy costs; professional fees, bank charges; certain insurance policy premiums, public relations/investor relations expenses.