SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

3 Months Ended

Mar. 31, 2014

SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]

Summary information by segment

Summary financial information by reporting segment is as follows:

	Three Months Ended March 31, 2014
	Wholesale			Direct-to- Consumer			Total
Net sales
Loose jewels	$	3,533,784		$	146,940		$	3,680,724
Finished jewelry		1,619,831			766,998			2,386,829
Total	$	5,153,615		$	913,938		$	6,067,553
Product line cost of goods sold
Loose jewels	$	1,775,135		$	22,272		$	1,797,407
Finished jewelry		1,280,101			358,148			1,638,249
Total	$	3,055,236		$	380,420		$	3,435,656
Product line gross profit
Loose jewels	$	1,758,649		$	124,668		$	1,883,317
Finished jewelry		339,730			408,850			748,580
Total	$	2,098,379		$	533,518		$	2,631,897
Operating loss	$	(124,858	)	$	(1,045,645	)	$	(1,170,503	)
Depreciation and amortization	$	179,673		$	98,125		$	277,798
Capital expenditures	$	28,325		$	-		$	28,325

	Three Months Ended March 31, 2013
	Wholesale		Direct-to- Consumer			Total
Net sales
Loose jewels	$	4,293,076	$	55,220		$	4,348,296
Finished jewelry		1,729,149		427,629			2,156,778
Total	$	6,022,225	$	482,849		$	6,505,074
Product line cost of goods sold
Loose jewels	$	1,714,826	$	7,860		$	1,722,686
Finished jewelry		586,726		196,895			783,621
Total	$	2,301,552	$	204,755		$	2,506,307
Product line gross profit
Loose jewels	$	2,578,250	$	47,360		$	2,625,610
Finished jewelry		1,142,423		230,734			1,373,157
Total	$	3,720,673	$	278,094		$	3,998,767
Operating income (loss)	$	1,698,148	$	(1,176,621	)	$	521,527
Depreciation and amortization	$	90,979	$	101,408		$	192,387
Capital expenditures	$	80,671	$	7,326		$	87,997

	March 31, 2014
	Wholesale			Direct-to- Consumer			Total
Total assets		$	61,114,337		$	880,978		$	61,995,315

	December 31, 2013
	Wholesale			Direct-to- Consumer			Total
Total assets		$	61,702,449		$	621,403		$	62,323,852

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 March 31,
	2014			2013
Product line cost of goods sold	$	3,435,656		$	2,506,307
Non-capitalized manufacturing and production control expenses		155,023			400,251
Freight out		59,899			36,510
Inventory valuation allowances		24,000			(19,000	)
Other inventory adjustments		(11,536	)		(42,090	)
Cost of goods sold	$	3,663,042		$	2,881,978

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:

	March 31, 2014		December 31, 2013
Loose jewels
Raw materials	$	4,770,590	$	3,311,375
Work-in-process		7,817,165		9,526,769
Finished goods		21,440,265		20,002,881
Finished goods on consignment		53,409		32,948
Total	$	34,081,429	$	32,873,973
Finished jewelry
Raw materials	$	288,090	$	270,043
Work-in-process		665,525		764,355
Finished goods		8,391,377		8,117,035
Finished goods on consignment		233,262		299,514
Total	$	9,578,254	$	9,450,947

Data by geographic area

The following presents certain data by geographic area:

	Three Months Ended March 31,
	2014		2013
Net sales
United States	$	5,709,033	$	5,112,289
International		358,520		1,392,785
Total	$	6,067,553	$	6,505,074

	March 31, 2014		December 31, 2013
Property and equipment, net
United States	$	1,504,959	$	1,717,692
International		-		-
Total	$	1,504,959	$	1,717,692

	March 31, 2014		December 31, 2013
Intangible assets, net
United States	$	60,913		70,830
International		233,681		255,037
Total	$	294,594		325,867