2.4.0.8102 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1false falsefalsefrom-2013-04-01-to-2013-06-30.2069.0.0.0.0.0.0.0http://www.sec.gov/CIK0001432967duration2013-04-01T00:00:002013-06-30T00:00:001true 1us-gaap_AccountingPoliciesAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Summary of Significant Accounting Policies [Abstract]2false 2us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div> <div> <table style="FONT-SIZE: 10pt; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="68"> Note 2. </td> <td style="MARGIN-TOP: 0px" valign="top" width="569"> Summary of Significant Accounting Policies </td> </tr> </table> Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenses during the reported periods. Our management believes the estimates utilized in preparing our consolidated financial statements are reasonable. Actual results could differ from these estimates. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. We believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements. Allowance for Doubtful Accounts: The allowance for doubtful accounts which is based on an evaluation of our outstanding accounts receivable including the age of amounts due, the financial condition of our specific customers, knowledge of our industry unit and historical bad debt experience. This evaluation methodology has proved to provide a reasonable estimate of bad debt expense in the past and we intend to continue to employ this approach in our analysis of collectability.  Allowance for Sales Returns: In the direct response industry, purchased items are generally returnable for a certain period after purchase. We attempt to estimate returns and provide an allowance for sales returns where applicable. Our estimates are based on historical experience and knowledge of the products sold. The allowance for estimated sales returns totaled $66,138 and $209,838 at June 30, 2013 and March 31, 2013, respectively, and is included in accrued expenses. Goodwill: Goodwill is not amortized but is subject to periodic testing for impairment in accordance with Accounting Standards Codification ("ASC") Topic 350 -- Intangibles - Goodwill and Other - Testing Indefinite-Lived Intangible Assets for Impairment. The test for impairment will be conducted annually or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company determined that no events occurred or circumstances changed through June 30, 2013 that would indicate that the fair value of goodwill may be below its carrying amount. However, if market conditions deteriorate, or if the Company is unable to execute on its strategies, it may be necessary to record impairment charges in the future.charges in the future. Intangible Assets: Intangible assets include acquired customer relationships, urls and trademarks. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets of five years in accordance with ASC Topic 350 -- Intangibles - Goodwill and Other - Testing Indefinite-Lived Intangible Assets for Impairment. Long-lived assets, including intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Income Taxes: We use the asset and liability method to determine our income tax expense or benefit. Deferred tax assets and liabilities are computed based on temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that are expected to be in effect when the differences are expected to be recovered or settled. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be realized. Restricted Cash Restricted cash, totaling $515,000 at June 30, 2013, represents $450,000 funds held by eDiets credit card processors and $65,000 held in escrow pending delivery of certain products. Revenue Recognition We recognize revenue from product sales in accordance with Financial Accounting Standards Board ("FASB") ASC 605 - Revenue Recognition. Following agreements or orders from customers, we ship products to our customers often through a third party facilitator. Revenue from product sales is only recognized when substantially all the risks and rewards of ownership have transferred to our customers, the selling price is fixed and collection is reasonably assured. Typically, these criteria are met when our customer's order is received and we receive acknowledgment of receipt by a third party shipper and collection is reasonably assured. We also have offered our customers on a limited basis, services consisting of planning, shooting and editing infomercials to aid in the direct response marketing of their product or service. In these instances, revenue is recognized when the contracted services have been provided and accepted by the customer. Deposits, if any, on these services are recorded as deferred revenue until earned. Production costs associated with a given project are deferred until the related revenues are earned and recognized. We also recognize deferred revenue for our dietary meal delivery and online subscription service programs as payment is made in advance of the actual meal delivery and membership subscription period. As of June 30, 2013 and March 31, 2013, we had recognized deferred revenue of $155,133 and $173,750, respectively. The Company has a return policy on its ASTV sales whereby the customer can return any product within 60-days of receipt for a full refund, excluding shipping and handling. However, historically the Company has accepted returns past 60-days of receipt. The Company provides an allowance for returns based upon specific product warranty agreements and past experience and industry knowledge. All significant returns for the periods presented have been offset against gross sales. The Company also provides a reserve for warranties, which is not significant and is included in accrued expense. eDiets' meal delivery revenue is recognized upon delivery and transfer of title to the product. This occurs upon shipment from the Company's fulfillment center and delivery to the end-customer. eDiets' digital revenue is generated by the Company offering membership subscriptions to the proprietary content contained in its websites. Subscriptions are paid in advance, mainly via credit/debit cards, and cash receipts are recognized as deferred revenue and are recorded as revenue on a straight-line basis over the period of the digital plan subscription. Receivables Accounts receivable consists of amounts due from the sale of our direct response, home shopping related products and dietary programs. Our allowance for doubtful accounts at June 30, 2013 and March 31, 2013, totaled $9,300 and $152,000, respectively. The allowances are estimated based on historical customer experience and industry knowledge. Inventories and Advances on Inventory Purchases Inventories are stated at the lower of cost or market. Cost is determined using a first-in, first-out, or FIFO, method. We review our inventory for excess or obsolete inventory and write-down obsolete or otherwise unmarketable inventory to its estimated net realizable value. Advances on inventory purchases represent payments made to our product suppliers in advance of delivery to the Company. It is common industry practice to require a substantial deposit against products ordered before commencement of manufacturing, particularly with off-shore suppliers. Additional advance payments may also be required upon achievement of certain agreed upon manufacturing or shipment benchmarks. Upon delivery and receipt by the Company of the items ordered, and the Company taking title to the goods, the balances are transferred to inventory. Property and Equipment, net We record property, equipment and leasehold improvements at historical cost. Expenditures for maintenance and repairs are recorded to expense; additions and improvements are capitalized. We provide for depreciation using the straight-line method at rates that approximate the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the remaining term of the lease. Property and equipment, net consists of the following: <table style="FONT-SIZE: 10pt; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE: 0px"> <td> </td> <td width="21"> </td> <td width="84"> </td> <td width="20"> </td> <td width="8"> </td> <td width="84"> </td> <td width="20"> </td> <td width="8"> </td> <td width="84"> </td> <td width="5"> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom"> Property and equipment </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="21">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84"> Estimated Useful Lives </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="92" colspan="2"> June 30, 2013 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="92" colspan="2"> March 31, 2013 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="5">   </td> </tr> <tr> <td style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom"> Computers and software </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="21">   </td> <td style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> 3 Years </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="20">   </td> <td style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="8"> $ </td> <td style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> 124,606 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="20">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="8"> $ </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> 120,041 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="5">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom"> Office equipment and furniture </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="21">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84"> 5-7 Years </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="8">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84"> 94,248 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="8">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84"> 94,248 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="5">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom"> Leasehold improvements </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="21">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> 1-3 Years </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="20">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="8">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> 62,610 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="20">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="8">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> 62,610 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="5">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="21">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="8">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84"> 281,464 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="8">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84"> 276,899 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="5">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom"> Less: accumulated depreciation and amortization </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="21">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="20">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="8">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> (165,592 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="20"> ) </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="8">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="84"> (132,098 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="5"> ) </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="21">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="84">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="8"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="84"> 115,872 </td> <td style="BORDER-BOTTOM: #ffffff 3px double; MARGIN-TOP: 0px" valign="bottom" width="20">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="8"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="84"> 144,801 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="5">   </td> </tr> </table> Depreciation expense and amortization of leasehold improvements was approximately $33,000 and $11,000 for the three month periods ended June 30, 2013 and 2012, respectively. Intangible Assets Intangible assets consisted of the following at June 30, 2013 and March 31, 2013: <table style="FONT-SIZE: 10pt; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE: 0px"> <td> </td> <td width="13"> </td> <td width="11"> </td> <td width="86"> </td> <td width="7"> </td> <td width="19"> </td> <td width="13"> </td> <td width="86"> </td> <td width="13"> </td> <td width="151"> </td> <td> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="97" colspan="2"> June 30, 2013 </td> <td style="MARGIN-TOP: 0px" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="19">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="99" colspan="2"> March 31 2013 </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="top" width="152" colspan="2"> Estimated Useful Life </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="11">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="86">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="19">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="86">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="152" colspan="2">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top"> Customer relationships </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="11"> $ </td> <td style="MARGIN-TOP: 0px" valign="top" width="86"> 6,000,000 </td> <td style="MARGIN-TOP: 0px" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="19">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="13"> $ </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="86"> 6,000,000 </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="152" colspan="2"> 5 years </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top"> URL's </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="11">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="86"> 1,000,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="19">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="86"> 1,000,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="152" colspan="2"> 5 years </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top"> Trademarks </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="11">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="86"> 859,439 </td> <td style="MARGIN-TOP: 0px" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="19">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="86"> 859,439 </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="152" colspan="2"> 5 years </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top"> AsSeenOnTV.com </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="11">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="86"> 2,839,216 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="19">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="86"> 2,839,216 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="152" colspan="2"> Indefinite not amortized </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="11">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="86"> 10,698,655 </td> <td style="MARGIN-TOP: 0px" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="19">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="86"> 10,698,655 </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="152" colspan="2">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top"> Accumulated amortization </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="11">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="86"> (524,000 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="7"> ) </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="19">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="86"> (131,000 </td> <td style="BORDER-BOTTOM: #ffffff 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="13"> ) </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="152" colspan="2">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top" width="11"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top" width="86"> 10,174,655 </td> <td style="BORDER-BOTTOM: #ffffff 3px double; MARGIN-TOP: 0px" valign="top" width="7">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="19">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top" width="13"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="top" width="86"> 10,567,655 </td> <td style="BORDER-BOTTOM: #ffffff 3px double; MARGIN-TOP: 0px" valign="top" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="top" width="152" colspan="2">   </td> </tr> </table> The straight-line method is being used to amortize the Company's definite lived intangible assets over their respective lives. Related amortization expense recognized was $393,000 and $-0- for the three month periods ended June 30, 2013 and 2012, respectively. Amortization expense for the next five succeeding fiscal years is estimated as follows: <table style="FONT-SIZE: 10pt; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 0px"> <td width="150"> </td> <td width="108"> </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="150"> 2014 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="108"> $ 1,179,000 </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="150"> 2015 </td> <td style="MARGIN-TOP: 0px" valign="top" width="108"> $ 1,572,000 </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="150"> 2016 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="108"> $ 1,572,000 </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="top" width="150"> 2017 </td> <td style="MARGIN-TOP: 0px" valign="top" width="108"> $ 1,572,000 </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="150"> 2018 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="top" width="108"> $ 1,440,439 </td> </tr> </table> Earnings (Loss) Per Share  Basic earnings per share is based on the weighted effect of all common shares issued and outstanding and is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares, if any, that would be issued assuming conversion of all potentially dilutive securities outstanding. For the three months ended June 30, 2013 and June 30, 2012, no potentially issuable shares were reflected in a diluted calculation as the inclusion of potentially issuable shares would be anti-dilutive due to the losses.   The following securities were not included in the computation of diluted net earnings per share as their effect would be anti-dilutive: <table style="FONT-SIZE: 10pt; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE: 0px"> <td> </td> <td width="1"> </td> <td width="18"> </td> <td width="3"> </td> <td width="76"> </td> <td width="19"> </td> <td width="76"> </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="1">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="18">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="3">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="171" colspan="3"> June 30, </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="1">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="18">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="3">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="76"> 2013 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="19">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="76"> 2012 </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom"> Stock options </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="1">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="18">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="3">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="76"> 8,291,776 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="19">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="76"> 1,055,000 </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom"> Warrants </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="1">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="18">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="3">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="76"> 67,953,369 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="19">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="76"> 40,859,253 </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="1">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="18">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="3">   </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="76"> 76,245,145 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="19">   </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccffcc" valign="bottom" width="76"> 41,914,253 </td> </tr> </table> Goodwill Goodwill is not amortized but is subject to periodic testing for impairment. The test for impairment will be conducted annually or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below the carrying amount. The Company recognizes that if market conditions deteriorate or if we are unable to successfully implement revised program strategies, impairment charges may be indicated in the future. Impairment of Long-Lived Assets We review our long-lived assets, such as property, plant and equipment, and acquired intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable from future undiscounted cash flows. Impairment losses are recorded for the excess, if any, of the carrying value over the fair value of the long-lived assets. No indicators of impairment existed at June 30, 2013. Concentration of Credit Risk Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. Cash and cash equivalents are held with financial institutions in the United States and from time to time we may have balances that exceed the amount of insurance provided by the Federal Deposit Insurance Corporation on such deposits. Concentration of credit risk with respect to our trade accounts receivable to our customers is limited to $706,731 at June 30, 2013. Credit is extended to our customers, based on an evaluation of a customer's financial condition and collateral is not required. Advertising and Promotional Costs Advertising and promotional costs are expensed when incurred and totaled approximately $17,343 and $22,972 for the three month periods ended June 30, 2013 and 2012, respectively. Fair Value Measurements FASB ASC 820 - Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 requires disclosures about the fair value of all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about the fair value of financial instruments are based on pertinent information available to us on June 30, 2013 and March 31, 2013, respectively. Accordingly, the estimates presented in these financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments. FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 includes financial instruments that are valued using models or other valuation methodologies. These models consider various assumptions, including volatility factors, current market prices and contractual prices for the underlying financial instruments. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable. The carrying amounts reported in the consolidated balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair value based on the short-term maturity of these instruments. The fair value of notes payable are based on borrowing rates that are available to the Company for loans with similar terms, collateral and maturity. The estimated fair value of notes payable approximates the carrying value. Determination of fair value of related party payables is not practicable due to their related party nature. Accounting Standards Updates There have been no recent accounting pronouncements or changes in accounting pronouncements during the three months ended June 30, 2013, as compared to the recent accounting pronouncements described in the Company's Audited 2013 Financial Statements, that are of material significance, or have potential material significance to the Company. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All inter-company account balances and transactions have been eliminated in consolidation. </div> </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18861-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18743-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18854-107790 false0Summary of Significant Accounting PoliciesfalseSummary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.asseenontv.com/role/SummaryOfSignificantAccountingPolicies12