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Note 5 - Acquisition
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3 Months Ended |
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Mar. 31, 2013
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| Business Combination Disclosure [Text Block] |
NOTE
5 – ACQUISITION
On
January 10, 2012, the Company, through a newly-formed
wholly-owned subsidiary, EVT, entered into an asset purchase
agreement with Moda for Friends LLC (the
“Seller”) and purchased certain intangible assets
that include a contractual-related agreement, purchased
customer list, developed technologies and trademarks (the
“Acquired Intangible Assets”) owned by the Seller
for a total purchase price of $600,000 plus transaction costs
of $11,000. The Company paid the purchase price through the
issuance of 285,714 shares of its Common Stock, with each
share being valued at $2.10 (the closing price of the Common
Stock on the day prior to the consummation of the
transaction). The Company completed the asset acquisition
because it would facilitate the launch and operation of its
own flash sales business.
At
December 31, 2012, the Acquired Intangible Assets were deemed
to be impaired and the fair value was determined to be zero
(Level 3 in the fair value hierarchy) due to the
Company’s potential inability to meet its obligations
under the terms and conditions of the contract given the
Company’s current limited financial resources.
For
the year ended December 31, 2012, the Company recorded
$383,000 of impairment loss in total amortization expense in
the Consolidated Statement of Operations related to the
Acquired Intangible Assets.
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