Variable Interest Entity (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Variable Interest Entity's Consolidated Balance Sheet

A summary of Ronco assets and liabilities included in the Company's condensed consolidated financial statements at June 30, 2014, is as follows:


Assets
Current assets:
Cash	$	15,889
Accounts receivable, net		1,497,513
Accounts receivable - related party		342,871
Inventories		1,657,820
Prepaid expenses and other assets		229,468
Total current assets		3,743,561

Property and equipment, net		261,355
Goodwill		15,907,825
Intangible assets, net		3,635,426
Total assets	$	23,548,167

Liabilities and Redeemable Preferred Stock
Current liabilities:
Accounts payable	$	2,159,648
Accrued expenses		2,882,220
Notes payable		11,620,143
Total current liabilities		16,662,011

Long-term notes payable - related party		3,585,591
Total liabilities	$	20,247,602

Redeemable preferred stock	$	2,700,000

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References+ Details