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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 10. Commitments and Contingencies Leases The Company has operating leases for its current office, former office, and a retail store location, as well as certain equipment with a term of 12 months or less. The Company is currently not a party to any finance leases. The Company's real estate leases have remaining lease terms between approximately 2 months to 7 years. As of December 31, 2021, the weighted average remaining lease term was 5.8 years and the weighted average discount rate was 6.25%. The Company leases office space under an operating lease agreement related to the Company’s main headquarters located in New York City. This lease commenced on March 1, 2016 and expires on October 30, 2027. In connection with this lease, the Company obtained an irrevocable standby letter of credit; the Company has deposited funds as collateral for the letter of credit and has recorded the amount as restricted cash in the consolidated balance sheets as of December 31, 2021 and December 31, 2020. The Company also leases office space under an operating lease agreement at another location in New York City, representing the Company’s former corporate offices and operations facility. This lease shall expire on February 28, 2022. This office space is subleased to a third-party subtenant through February 27, 2022. The aforementioned office leases require the Company to pay additional rents related to increases in certain taxes and other costs on the properties. The Company also leases approximately 1,300 square feet of retail space for a retail store location in Westchester, New York. This lease shall expire on January 31, 2029; however, the Company is currently in the process of negotiating the termination of this lease. The Company recorded an impairment charge of $0.7 million to fully impair the remaining balance of the right-of-use asset for this lease as of December 31, 2021. For the years ended December 31, 2021 and 2020, total lease expense included in selling, general and administrative expenses on the Company's consolidated statements of operations was approximately $1.7 million and $1.5 million, respectively. The Company’s total lease costs for the years ended December 31, 2021 and 2020 were comprised of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
($ in thousands) |  | 2021 |  | 2020
Operating lease cost | ​ | $ | 2,047 | ​ | $ | 1,986
Short-term lease cost | ​ |  | 68 | ​ |  | 81
Variable lease cost | ​ |  | 178 | ​ |  | 98
Sublease income | ​ |  | (622) | ​ |  | (618)
Total lease cost | ​ | $ | 1,671 | ​ | $ | 1,547
​ Cash paid for amounts included in the measurement of operating lease liabilities was $2.0 million and $1.9 million in the Current Year and Prior Year, respectively. Cash received from subleasing was $0.7 million and $0.7 million in the Current Year and Prior Year, respectively. As of December 31, 2021, the maturities of lease liabilities were as follows:
​ | ​ | ​ | ​
($ in thousands) |  | ​ | ​
2022 | ​ | $ | 1,700
2023 | ​ | ​ | 1,711
2024 | ​ |  | 1,711
2025 | ​ |  | 1,711
2026 | ​ |  | 1,710
Thereafter (through 2028) | ​ |  | 1,610
Total lease payments | ​ | ​ | 10,153
Less: Discount | ​ | ​ | 1,694
Present value of lease liabilities | ​ | ​ | 8,459
Current portion of lease liabilities | ​ | ​ | 1,207
Non-current portion of lease liabilities | ​ | $ | 7,252
​ Employment Agreements The Company has contracts with certain executives and key employees. The future minimum payments under these contracts are as follows: ​
​ | ​ | ​ | ​
​ | ​ | Employment
($ in thousands) | ​ | Contract
Year Ended December 31, |  | Payments
2022 | ​ | $ | 2,366
Thereafter | ​ |  | —
Total future minimum employment contract payments | ​ | $ | 2,366
​ In addition to the employment contract payments stated above, the Company’s employment contracts with certain executives and key employees contain performance-based bonus provisions. These provisions include bonuses based on the Company achieving revenues in excess of established targets and/or on operating results. Certain of the employment agreements contain severance and/or change in control provisions. Aggregate potential severance compensation amounted to approximately $4.6 million as of December 31, 2021. Contingent Obligation – Halston Heritage Earn-Out In connection with the February 11, 2019 purchase of the Halston Heritage trademarks from the H Company IP, LLC (“HIP”), the Company agreed to pay HIP additional consideration (the “Halston Heritage Earn-Out”) of up to an aggregate of $6.0 million, based on royalties earned from 2019 through December 31, 2022. This additional consideration shall be payable in shares of common stock of the Company. The Halston Heritage Earn-Out of $0.9 million is recorded as a long-term liability as of December 31, 2021 and 2020 in the accompanying consolidated balance sheets, based on the difference at the date of acquisition between the fair value of the acquired assets of the Halston Heritage Trademarks and the total consideration paid. In accordance with ASC Topic 480, the Halston Heritage Earn-Out obligation is treated as a liability in the accompanying consolidated balance sheets because of the variable number of shares payable under the agreement. ​ Contingent Obligation – Lori Goldstein Earn-Out In connection with the April 1, 2021 purchase of the Lori Goldstein trademarks (see Note 3 for additional information), the Company agreed to pay the seller additional cash consideration of up to $12.5 million, based on royalties earned during the six calendar year period commencing in 2021. The Lori Goldstein Earn-Out of $6.6 million is recorded as a long-term liability at December 31, 2021 in the accompanying consolidated balance sheet, based on the difference at the date of acquisition between the fair value of the acquired assets of the Lori Goldstein brand and the total consideration paid. Legal Proceedings From time to time, the Company becomes involved in legal claims and litigation in the ordinary course of business. In the opinion of management, based on consultations with legal counsel, the disposition of litigation currently pending against the Company is unlikely to have, individually or in the aggregate, a materially adverse effect on the Company’s business, financial position, results of operations, or cash flows. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. Coronavirus Pandemic In March 2020, the World Health Organization declared the outbreak of a novel coronavirus disease (“COVID-19”) as a pandemic, which continues to circulate throughout the U.S. and the world. COVID-19 has had an unprecedented impact on the U.S. and global economy as federal, state, and local governments continue to react to and attempt to manage this ongoing public health crisis. The impacts of the ongoing COVID-19 pandemic are broad reaching and are having an impact on the Company’s licensing and wholesale businesses. The COVID-19 pandemic is impacting the Company’s supply chain as most of the Company’s products are manufactured in China, Thailand, and other places around the world affected by this event. Temporary factory closures and the pace of workers returning to work have impacted contract manufacturers’ ability to source certain raw materials and to produce finished goods in a timely manner. The outbreak is also impacting distribution and logistics providers' ability to operate in the normal course of business. Further, the pandemic resulted in a sudden decrease in sales for many of the Company’s products, from which the Company has yet to fully recover. This has resulted in order cancellations and a decrease in accounts receivable collections, as the Company recorded additional allowances for doubtful accounts of approximately $1 million in the Prior Year and approximately $0.1 million in the Current Year related to retailers that have filed for bankruptcy. Due to the ongoing COVID-19 pandemic, there is significant uncertainty surrounding the impact on the Company’s future results of operations and cash flows. Continued impacts of the pandemic could materially adversely affect the Company’s near-term and long-term revenues, earnings, liquidity, and cash flows as the Company’s customers and/or licensees may request temporary relief, delay, or not make scheduled payments.

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