Acquisitions, Dispositions and Other Transactions (Tables)

3 Months Ended

Mar. 31, 2014

Uppercase Living

Acquisitions, Dispositions and Other Transactions

Summary of fair value of acquiree as of the acquisition date

Opening balance sheet for Uppercase Living acquisition on March 14, 2014

	UAI
Assets
Current assets:
Cash and cash equivalents	$	2,000
Accounts receivable	1,742
Inventory	96,497
Total current assets	100,239
Property, plant and equipment	23,230
Goodwill	469,065
Other assets	16,366
Total assets	$	608,900
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable—trade	$	267,337
Accrued commissions	79,003
Deferred revenue	28,399
Other current liabilities	96,706
Total current liabilities	471,445
Other long-term liabilities	137,455
Total liabilities	608,900
Stockholders’ equity	—
Total stockholders’ equity	—
Total liabilities and stockholders’ equity	$	608,900

TLC

Acquisitions, Dispositions and Other Transactions

Summary of fair value of acquiree as of the acquisition date

Opening balance sheets for The Longaberger Company acquisition on March 18, 2013

	TLC
Assets
Current assets:
Cash and cash equivalents	$	84,062
Accounts receivable	259,602
Inventory	19,892,740
Prepaid expenses and other	1,074,420
Total current assets	21,310,824
Property, plant and equipment	28,469,390
Other assets	3,946,570
Total assets	$	53,726,784
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable - trade	$	6,383,107
Accounts payable - related party	—
Line of credit payable	9,319,612
Deferred revenue	4,132,386
Current portion of long-term debt	354,390
Other current liabilities	3,962,045
Total current liabilities	24,151,540
Long-term debt	9,265,766
Total liabilities	33,417,306
Stockholders’ equity:
Stockholders’ equity attributable to CVSL stockholders’	10,500,000
Stockholders’ equity attributable to noncontrolling interest	9,809,478
Total stockholders’ equity	20,309,478
Total liabilities and stockholders’ equity	$	53,726,784

Schedule of TLC Results from Operations

The following table presents the operating results of TLC included in the Company’s consolidated statements of operations for the 13 day period beginning March 19, 2013 to March 31, 2013.

Gross sales	$	3,998,530
Program costs and discounts	(1,031,970		)
Net sales	2,966,560
Costs of sales	1,370,120
Gross profit	1,596,440
Commissions and incentives	604,404
Selling, general and administrative	906,007
Operating profit	86,029
Interest expense, net	37,488
Net income	48,541
Net earnings attributable to noncontrolling interest	23,445
Net earnings attributed to CVSL	$	25,096