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Significant Contracts
3 Months Ended
Mar. 31, 2013
Significant Contracts [Abstract]  
Significant Contracts [Text Block]

4.  Significant Contracts

 

QVC Agreement

 

In connection with the Company’s agreement with QVC, Inc. (“QVC”), QVC is required to pay fees based primarily on a percentage of its net sales of Isaac Mizrahi branded merchandise. QVC royalty revenue represents a significant portion of the Company’s total revenues. Royalties from QVC totaled $1,992,000 and $1,900,000 for the Current Quarter and the Prior Year Quarter, respectively, representing 61% and 65% of the Company’s total revenues, respectively. As of March 31, 2013 and December 31, 2012, the Company had a receivable from QVC for each period in the amount of $1,901,000, representing 57% and 55% of the Company’s receivables, respectively.

 

LCNY Agreement

 

In connection with the Company’s agreement with Fifth & Pacific Companies, Inc. (formerly Liz Claiborne, Inc.) (“FNP”) (the “LCNY Agreement”) FNP is required to pay the Company royalties based primarily on a percentage of royalties FNP receives from QVC under a separate license agreement between FNP and QVC. Revenues from the LCNY Agreement totaled $500,000 and $375,000 for the Current Quarter and the Prior Year Quarter, respectively, representing 15% and 13% of the Company’s total revenues, respectively. As of March 31, 2013 and December 31, 2012, the Company had a receivable from FNP in the amount of $1,090,000 and $699,000, representing 33% and 20% of the Company’s receivables, respectively.