Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Events

In preparing the interim consolidated financial statements, the Company has evaluated, for the potential recognition or disclosure, events or transactions subsequent to the end of the most recent quarterly period through the date of issuance of the financial statements.

On April 16, 2012, the Company announced that it had entered into a definitive merger agreement with Fanatics, Inc. ("Fanatics") whereby Fanatics will acquire the outstanding common stock of Dreams in a cash transaction. Concurrently, Dreams will be merged with Sweet Tooth Acquisition Corp., ("Merger Sub") a wholly-owned subsidiary of Fanatics resulting in Dreams being the surviving entity as a wholly-owned subsidiary of Fanatics. The merger was unanimously approved by the Board of Directors and the transaction is expected to close upon receiving shareholder approval at its upcoming Special Shareholders Meeting scheduled for June 6, 2012.

The merger will become effective upon closing of the transaction at which time each share of Dreams common stock issued and outstanding immediately prior to the closing will be cancelled and converted into the right to receive $3.45 in cash, without interest ("Merger Consideration"). Upon closing, all such shares of Dreams common stock will no longer be outstanding and automatically be cancelled and each holder of Dreams' Common Stock will cease to have any rights, except the right to receive the Merger Consideration. In addition, each option and warrant granted under any stock option plan, including the Company's 2006 Equity Incentive Plan or any other Company plan, agreement or arrangement, will be fully accelerated. Each former option and warrant holder will be entitled to receive cash equal to the total number of shares of Company common stock exercisable under the option and the excess, if any, of the offer price over the exercise price per share.