Commitments And Contingencies

3 Months Ended

Mar. 31, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

7. Commitments and Contingencies

The Company has a contract with an athlete which will require the Company to make minimum payments to this athlete during the remainder of 2012. The payments are in exchange for autographs and licensing rights on inventory items to be received in the future.

The Company leases its corporate offices, manufacturing, warehouse and distribution facilities along with its company-owned stores under operating leases with varying terms and lengths. Rent expense under these leases for the three months ended March 31, 2012 and March 31, 2011 were $1,399 and $1,359, respectively.

The Company leases certain computer and warehouse equipment under capital leases. The leases collectively require monthly payments of $47 and expire through 2014. Interest rates on capital leases range from 5% to 12%.

As a result of the Retail Contract transfer from CMS to Dreams, Inc. effective September 1, 2010, Dreams was required to post a $600 irrevocable standby letter of credit for the benefit of The University of Texas to comply with certain terms and conditions of the agreement. In addition, the Company is required to make quarterly payments of $150 towards an annual minimum royalty figure of $600.