Note 4 - Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2012

Prepaid Expenses And Other Current Assets Disclosure [Text Block]

NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

As of December 31, 2012 and 2011, prepaid expenses and other current assets consist of the following:

	2012		2011

Prepaid inventory	$	512,000	$	2,690,000
Prepaid expenses		87,000		247,000
Other current assets		813,000		706,000
Total prepaid expenses and other current assets	$	1,412,000	$	3,643,000

In 2011, the Company assessed the recoverability of the carrying value of merchandise credits and certain prepayments to suppliers for inventory, which resulted in a $1,013,000 write off. This write-off reflected merchandise credits from suppliers that the Company did not collect. The write-off was recorded as a component of Cost of sales in the Consolidated Statements of Operations for 2011.