Note 6 - Investment in Affiliated Company

9 Months Ended

Sep. 30, 2011

Equity Method Investments Disclosure [Text Block]

Note 6.  Investment in Affiliated Company

 In July 2010, the Company obtained a 30% membership interest in NuGlow Cosmaceuticals, LLC (NuGlow), a direct-response company selling specialty skin care products, in exchange for a capital contribution of $350,000. In connection with NuGlow’s capital raise in September 2011, the Company contributed an additional $42,000 to maintain its 30% interest in NuGlow. The Company’s cumulative investment in NuGlow is accounted for as an equity investment and is adjusted at each reporting period to reflect the Company’s share of NuGlow’s net earnings, losses, contributions and any profit distributions. Additionally, at each reporting period, the Company assesses its investment in NuGlow to determine whether events or changes in circumstances indicate that the carrying amount may not be recoverable. The primary factors the Company considers in its determination are NuGlow’s financial condition and operating performance. If the decline in value is deemed to be other than temporary, the Company would recognize an impairment loss.

For the three and nine months ended September 30, 2011, the Company recorded a loss of $23,373 and $74,446, respectively, to “Equity in loss of affiliated company” which reflected its share of NuGlow’s net loss during those periods. The carrying value of the Company’s investment in NuGlow was $234,495 and $266,941 at September 30, 2011 and December 31, 2010, respectively.

NuGlow’s condensed balance sheets at September 30, 2011 and December 31, 2010 and statements of operations for the three and nine months ended September 30, 2011 and 2010 are as follows:

NuGlow’s Condensed Balance Sheets	September 30, 2011 (Unaudited)			December 31, 2010 (Unaudited)
Assets
Cash	$	31,964		$	75,147
Accounts receivable, net		25,533			2,574
Inventory		339,475			140,443
Prepaid expenses and other current assets		2,602			11,455
Total assets	$	399,574		$	229,619
Liabilities and members’ equity
Accounts payable and current liabilities	$	339,147		$	61,041
Members’ equity		514,661			374,661
Accumulated deficit		(454,234	)		(206,083	)
Total liabilities and members’ equity	$	399,574		$	229,619

	Three months ended September 30, (Unaudited)						Nine months ended September 30, (Unaudited)
NuGlow’s Condensed Statements of Operations	2011			2010			2011			2010
Revenue	$	264,139		$	11,133		$	756,023		$	42,400
Cost of goods sold		(118,660	)		(5,493	)		(317,024	)		(12,597	)
Operating expenses		(223,388	)		(19,016	)		(687,150	)		(30,592	)
Net loss	$	(77,909	)	$	(13,376	)	$	(248,151	)	$	(789	)