KBC Merger (Tables)

12 Months Ended

Dec. 31, 2012

KBC Merger [Abstract]

Summary of Consideration Paid

The acquisition of KBC was accounted for using the acquisition method of accounting, which requires an acquirer to recognize the assets acquired and liabilities assumed at the acquisition date measured at their fair values. The excess of the consideration transferred and the acquisition date fair value of the previous equity interest held in Kona over the fair value of net assets acquired is recognized as goodwill. The following table summarizes the consideration paid (in thousands):

Fair value of common stock issued	$	11,702
Cash consideration paid		6,237
		17,939
Fair value of equity interest in Kona held at acquisition date		1,200
Total consideration	$	19,139

Fair Value of Identifiable Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the date of acquisition (in thousands):

Assets
Current assets	$	4,858
Property, equipment and leasehold improvements		4,174
Trade name and trademarks		4,600
Non-compete agreements		440
Total assets acquired		14,072
Liabilities
Current liabilities		4,091
Interest bearing liabilities and other long-term liabilities		1,476
Deferred income tax liabilities, net and other non-current liabilities		2,283
Total liabilities assumed		7,850
Net assets acquired	$	6,222
Goodwill recorded	$	12,917

Unaudited Pro Forma Results of Operations

Unaudited pro forma results of operations as if the KBC Merger had occurred on January 1, 2010 are as follows (in thousands, except per share amounts):

	Year Ended December 31, 2010
Net sales	$	128,260
Net income	$	2,181
Basic and diluted earnings per share	$	0.12