SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

6 Months Ended

Jun. 30, 2013

SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]

Summary information by segment

Summary financial information by reporting segment is as follows:

	Three Months Ended June 30,
	2013								2012
	Wholesale		Direct-to- Consumer			Total			Wholesale		Direct-to- Consumer			Total
Net sales
Loose jewels	$	3,984,058	$	91,238		$	4,075,296		$	4,031,721	$	54,100		$	4,085,821
Finished jewelry		1,905,430		531,774			2,437,204			715,394		257,012			972,406
Total	$	5,889,488	$	623,012		$	6,512,500		$	4,747,115	$	311,112		$	5,058,227
Product line cost of goods sold
Loose jewels	$	1,334,472	$	11,795		$	1,346,267		$	1,109,333	$	7,340		$	1,116,673
Finished jewelry		1,330,109		290,816			1,620,925			6,896		106,034			112,930
Total	$	2,664,581	$	302,611		$	2,967,192		$	1,116,229	$	113,374		$	1,229,603
Product line gross profit
Loose jewels	$	2,649,586	$	79,443		$	2,729,029		$	2,922,388	$	46,760		$	2,969,148
Finished jewelry		575,321		240,958			816,279			708,498		150,978			859,476
Total	$	3,224,907	$	320,401		$	3,545,308		$	3,630,886	$	197,738		$	3,828,624
Operating income (loss)	$	624,419	$	(1,482,730	)	$	(858,311	)	$	1,219,750	$	(681,852	)	$	537,898
Depreciation and amortization	$	101,876	$	90,486		$	192,362		$	98,985	$	50,022		$	149,007
Capital expenditures	$	108,645	$	5,968		$	114,613		$	128,849	$	5,236		$	134,085

	Six Months Ended June 30,
	2013								2012
	Wholesale		Direct-to- Consumer			Total			Wholesale		Direct-to- Consumer			Total
Net sales
Loose jewels	$	8,278,212	$	144,998		$	8,423,210		$	6,445,640	$	93,598		$	6,539,238
Finished jewelry		3,634,153		960,211			4,594,364			2,306,955		390,419			2,697,374
Total	$	11,912,365	$	1,105,209		$	13,017,574		$	8,752,595	$	484,017		$	9,236,612
Product line cost of goods sold
Loose jewels	$	3,050,412	$	18,542		$	3,068,954		$	1,916,272	$	12,014		$	1,928,286
Finished jewelry		1,931,079		473,467			2,404,546			720,328		153,775			874,103
Total	$	4,981,491	$	492,009		$	5,473,500		$	2,636,600	$	165,789		$	2,802,389
Product line gross profit
Loose jewels	$	5,227,800	$	126,456		$	5,354,256		$	4,529,368	$	81,584		$	4,610,952
Finished jewelry		1,703,074		486,744			2,189,818			1,586,627		236,644			1,823,271
Total	$	6,930,874	$	613,200		$	7,544,074		$	6,115,995	$	318,228		$	6,434,223
Operating income (loss)	$	2,264,325	$	(2,601,109	)	$	(336,784	)	$	1,161,620	$	(1,340,524	)	$	(178,904	)
Depreciation and amortization	$	192,855	$	191,894		$	384,749		$	177,725	$	87,882		$	265,607
Capital expenditures	$	189,316	$	13,294		$	202,610		$	369,118	$	116,760		$	485,878

	June 30, 2013									December 31, 2012
	Wholesale			Direct-to- Consumer			Total			Wholesale			Direct-to- Consumer			Total
Total assets		$	55,133,852		$	5,817,876		$	60,951,728		$	58,823,642		$	1,053,049		$	59,876,691

Schedule of reconciliation of product line cost of goods sold to cost of goods sold as reported in consolidated financial statements

A reconciliation of the Company’s product line cost of goods sold to cost of goods sold as reported in the consolidated financial statements is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2012			2013		2012
Product line cost of goods sold	$	2,967,192	$	1,229,603		$	5,473,500	$	2,802,389
Non-capitalized manufacturing and production control expenses		208,389		332,259			608,640		738,388
Freight out		51,453		24,114			87,962		41,497
Inventory valuation allowances		94,000		72,000			75,000		26,000
Other inventory adjustments		68,281		(15,217	)		26,191		62,171
Cost of goods sold	$	3,389,315	$	1,642,759		$	6,271,293	$	3,670,445

Schedule of inventories by product line maintained in its wholesale distribution segment

The Company’s net inventories by product line maintained in the parent entity’s wholesale distribution segment are as follows:

	June 30, 2013		December 31, 2012
Loose jewels
Raw materials	$	2,845,538	$	3,189,320
Work-in-process		8,736,576		3,650,322
Finished goods		17,255,067		19,074,526
Finished goods on consignment		108,405		75,131
Total	$	28,945,586	$	25,989,299
Finished jewelry
Raw materials	$	299,425	$	259,366
Work-in-process		629,928		250,628
Finished goods		5,815,319		5,451,178
Finished goods on consignment		604,308		748,022
Total	$	7,348,980	$	6,709,194

Data by geographic area

The Company recognizes sales by geographic area based on the country in which the customer is based. A portion of the Company’s international wholesale distribution segment sales represents products sold internationally that may be re-imported to United States (“U.S.”) retailers. Sales to international end consumers made by the Company’s direct-to-consumer distribution segment are included in U.S. sales because products are shipped and invoiced to a U.S.-based intermediary party that assumes all international shipping and credit risks. The following presents certain data by geographic area:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net sales
United States	$	5,373,178	$	4,028,212	$	10,485,467	$	7,419,159
International		1,139,322		1,030,015		2,532,107		1,817,453
Total	$	6,512,500	$	5,058,227	$	13,017,574	$	9,236,612

	June 30, 2013		December 31, 2012
Property and equipment, net
United States	$	1,528,557	$	1,746,792
International		-		-
Total	$	1,528,557	$	1,746,792

	June 30, 2013		December 31, 2012
Intangible assets, net
United States	$	209,972	$	152,038
International		169,482		194,694
Total	$	379,454	$	346,732