Segments

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company has two operating segments: Website and Wholesale. The Website segment sells geek-themed retail products to technology enthusiasts and general consumers through the website. The Wholesale segment, which primarily sells exclusive GeekLabs products to retailers and brick-and-mortar stores, has higher gross margins because the products it sells generally have higher product margins.

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies included in the Company’s 2013 Form 10-K. The majority of costs are specifically identifiable to each segment. However, where costs are not specifically identifiable, they are allocated based on the ratio of segment product costs to total product costs. The Company's chief decision-making group is the Chief Executive Officer and the Chief Financial Officer. The Company's accounts receivables are primarily related to the Wholesale segment. Other than inventory, the Company's assets and liabilities are not allocated or reviewed by the chief decision-making group on a segment basis. Beginning in the first quarter of 2014, the Company began identifying inventory that was 100% dedicated to the Wholesale segment. This amount was approximately $3.1 million as of March 31, 2014. The remaining inventory balance of approximately $18.8 million was primarily related to Website.

(in thousands)	Website			Wholesale			Total Company
Three Months Ended March 31, 2014
Net revenue	$	17,879		$	4,812		$	22,691
Cost of revenue	15,622			3,244			18,866
Gross margin	$	2,257		$	1,568		$	3,825
Gross margin %	12.6		%	32.6		%	16.9		%
Three Months Ended March 31, 2013
Net revenue	$	17,981		$	1,576		$	19,557
Cost of revenue	14,839			1,098			15,937
Gross margin	$	3,142		$	478		$	3,620
Gross margin %	17.5		%	30.3		%	18.5		%

Revenue for international orders was $4.7 million and $4.4 million for the three months ended March 31, 2014 and March 31, 2013, respectively.