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USD ($)

USD ($) / shares
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(2)&amp;#160;REVENUE RECOGNITION&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company recognizes revenue on wholesale sales when products are shipped and the customer
   takes title and assumes risk of loss, collection of the relevant receivable is reasonably assured,
   persuasive evidence of an arrangement exists and the sales price is fixed or determinable. This
   generally occurs at time of shipment. The Company recognizes revenue from retail sales at the point
   of sale. Allowances for estimated returns, discounts, doubtful accounts and chargebacks are
   provided for when related revenue is recorded. Related costs paid to third-party shipping companies
   are recorded as a cost of sales.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Royalty income is earned from licensing arrangements. Upon signing a new licensing agreement,
   we receive up-front fees, which are generally characterized as prepaid royalties. These fees are
   initially deferred and recognized as revenue as earned (i.e., as licensed sales are reported to the
   company or on a straight-line basis over the term of the agreement). The first calculated royalty
   payment is based on actual sales of the licensed product. Typically, at each quarter-end we receive
   correspondence from our licensees indicating actual sales for the period, which is used to
   calculate and accrue the related royalties based on the terms of the agreement.
   &lt;/div&gt;
   &lt;/div&gt;
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