Accounts Receivable Factoring Agreement

3 Months Ended

Mar. 31, 2012

Accounts Receivable Factoring Agreement

Accounts Receivable Factoring Agreement

(2)Accounts Receivable Factoring Agreement

The Company has a deferred purchase factoring agreement with CIT Commercial Services (CIT) whereby CIT collects the Sanuk accounts receivable. CIT is responsible for the servicing and administration of accounts receivables collected on behalf of the Company and, to the extent that an eligible account is in default, CIT is required to purchase the account from the Company. Open receivables collected by CIT totaled approximately $17,100 at March 31, 2012 and $4,700 at December 31, 2011 and are included in accounts receivable in the condensed consolidated balance sheets.