Significant Contracts

6 Months Ended

Jun. 30, 2016

3.	Significant Contracts

QVC Agreements

Under the Company’s agreements with QVC, QVC is required to pay the Company fees based primarily on a percentage of its net sales of Isaac Mizrahi, Ripka, H Halston, and C Wonder branded merchandise. QVC royalty revenue represents a significant portion of the Company’s total revenues. Revenues from QVC totaled $7.83 million and $5.74 million for the Current Quarter and Prior Year Quarter, respectively, representing approximately 86% and 91% of the Company’s total revenues, respectively. Revenues from QVC totaled $15.14 million and $11.47 million for the Current Six Months and the Prior Year Six Months, respectively, representing approximately 87% and 89% of the Company’s total revenues, respectively. As of June 30, 2016 and December 31, 2015, the Company had receivables from QVC of $7.33 million and $6.40 million, respectively, representing approximately 73% and 84% of the Company’s total receivables, respectively.