Accounts Receivable Factoring Agreement

6 Months Ended

Jun. 30, 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 brand’s 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 held by CIT totaled approximately $16,204 and $4,700 at June 30, 2012 and December 31, 2011, respectively, and are included in accounts receivable in the condensed consolidated balance sheets.