Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 20, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | XCel Brands, Inc. | ||
Entity Central Index Key | 0001083220 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 25,540,559 | ||
Trading Symbol | XELB | ||
Entity Common Stock, Shares Outstanding | 18,395,281 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 8,837 | $ 10,185 |
Accounts receivable, net | 11,010 | 8,528 |
Inventory | 1,988 | 0 |
Prepaid expenses and other current assets | 2,040 | 592 |
Total current assets | 23,875 | 19,305 |
Property and equipment, net | 3,202 | 2,376 |
Trademarks and other intangibles, net | 108,989 | 110,120 |
Restricted cash | 1,482 | 1,509 |
Other assets | 511 | 1,708 |
Total non-current assets | 114,184 | 115,713 |
Total Assets | 138,059 | 135,018 |
Current Liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 5,558 | 1,260 |
Accrued payroll | 2,011 | 2,270 |
Deferred revenue | 272 | 16 |
Current portion of long-term debt | 5,325 | 5,459 |
Current portion of long-term debt, contingent obligations | 2,950 | 100 |
Total current liabilities | 16,116 | 9,105 |
Long-Term Liabilities: | ||
Long-term debt, less current portion | 11,300 | 19,389 |
Deferred tax liabilities, net | 8,139 | 6,375 |
Other long-term liabilities | 2,622 | 2,455 |
Total long-term liabilities | 22,061 | 28,219 |
Total Liabilities | 38,177 | 37,324 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 50,000,000 and 35,000,000 shares authorized at December 31, 2018 and 2017, respectively, and 18,138,616 and 18,318,961 issued and outstanding at December 31, 2018 and 2017, respectively | 18 | 18 |
Paid-in capital | 100,097 | 98,997 |
Accumulated deficit | (233) | (1,321) |
Total Stockholders' Equity | 99,882 | 97,694 |
Total Liabilities and Stockholders' Equity | $ 138,059 | $ 135,018 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 35,000,000 |
Common stock, shares issued | 18,138,616 | 18,318,961 |
Common stock, shares outstanding | 18,138,616 | 18,318,961 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenue | $ 35,466 | $ 31,706 |
Net revenue | 32,764 | 31,706 |
Operating costs and expenses | ||
Salaries, benefits and employment taxes | 16,560 | 16,760 |
Other design and marketing costs | 2,696 | 2,352 |
Other selling, general and administrative expenses | 5,211 | 4,699 |
Facilities exit charge | 799 | 0 |
Stock-based compensation | 1,788 | 3,184 |
Depreciation and amortization | 1,780 | 1,562 |
Goodwill impairment | 0 | 12,371 |
Total operating costs and expenses | 28,834 | 40,928 |
Operating income (loss) | 3,930 | (9,222) |
Interest and finance expense | ||
Interest expense - term debt | 912 | 1,171 |
Other interest and finance charges | 99 | 176 |
Total interest and finance expense | 1,011 | 1,347 |
Income (loss) before income tax provision (benefit) | 2,919 | (10,569) |
Income tax provision (benefit) | 1,831 | (447) |
Net income (loss) | $ 1,088 | $ (10,122) |
Earnings (loss) per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0.06 | $ (0.55) |
Diluted (in dollars per share) | $ 0.06 | $ (0.55) |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 18,280,788 | 18,502,158 |
Diluted (in shares) | 18,281,638 | 18,502,158 |
Net licensing revenue [member] | ||
Total revenue | $ 31,190 | $ 31,706 |
Sales [Member] | ||
Total revenue | 4,276 | 0 |
Cost of goods sold (sales) | $ 2,702 | $ 0 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings / (Accumulated Deficit) |
Balances at Dec. 31, 2016 | $ 106,174 | $ 19 | $ 97,354 | $ 8,801 |
Balances (in shares) at Dec. 31, 2016 | 18,644,982 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Shares issued to employees in connection with restricted stock grants, net of forfeitures | 0 | $ 0 | 0 | 0 |
Shares issued to employees in connection with restricted stock grants, net of forfeitures (in shares) | 125,334 | |||
Compensation expense in connection with stock options and restricted stock | 2,839 | $ 0 | 2,839 | 0 |
Shares repurchased including vested restricted stock in exchange for withholding taxes | (1,197) | $ (1) | (1,196) | 0 |
Shares repurchased including vested restricted stock in exchange for withholding taxes (in shares) | (451,355) | |||
Net income (loss) for the year | (10,122) | $ 0 | 0 | (10,122) |
Balances at Dec. 31, 2017 | 97,694 | $ 18 | 98,997 | (1,321) |
Balance (in shares) at Dec. 31, 2017 | 18,318,961 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Shares issued to employees in connection with restricted stock grants, net of forfeitures | 0 | |||
Shares issued to employees in connection with restricted stock grants, net of forfeitures (in shares) | 190,806 | |||
Compensation expense in connection with stock options and restricted stock | 2,133 | 2,133 | ||
Shares repurchased including vested restricted stock in exchange for withholding taxes | (1,033) | (1,033) | ||
Shares repurchased including vested restricted stock in exchange for withholding taxes (in shares) | (371,151) | |||
Net income (loss) for the year | 1,088 | 1,088 | ||
Balances at Dec. 31, 2018 | $ 99,882 | $ 18 | $ 100,097 | $ (233) |
Balance (in shares) at Dec. 31, 2018 | 18,138,616 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ 1,088 | $ (10,122) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,780 | 1,562 |
Goodwill impairment | 0 | 12,371 |
Amortization of deferred finance costs | 169 | 193 |
Stock-based compensation | 1,788 | 3,184 |
Allowance for doubtful accounts | 172 | 13 |
Amortization of note discount | 41 | 38 |
Deferred income tax | 1,764 | (526) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,653) | (1,572) |
Inventory | (1,988) | 0 |
Prepaid expenses and other assets | (373) | 4 |
Accounts payable, accrued expenses and other current liabilities | 4,382 | (524) |
Deferred revenue | 256 | (218) |
Other liabilities | 167 | 274 |
Net cash provided by operating activities | 6,593 | 4,677 |
Cash flows from investing activities | ||
Cost to acquire intangible assets | 0 | (30) |
Purchase of property and equipment | (1,476) | (208) |
Net cash used in investing activities | (1,476) | (238) |
Cash flows from financing activities | ||
Shares repurchased including vested restricted stock in exchange for withholding taxes | (1,033) | (1,197) |
Payment of deferred finance costs | 0 | (7) |
Payment of long-term debt | (5,459) | (7,177) |
Net cash used in financing activities | (6,492) | (8,381) |
Net decrease in cash, cash equivalents and restricted cash | (1,375) | (3,942) |
Cash, cash equivalents, and restricted cash at beginning of year | 11,694 | 15,636 |
Cash, cash equivalents, and restricted cash at end of year | 10,319 | 11,694 |
Reconciliation to amounts on consolidated balance sheets: | ||
Cash and cash equivalents | 8,837 | 10,185 |
Restricted cash | 1,482 | 1,509 |
Total cash, cash equivalents, and restricted cash | 11,694 | 15,636 |
Supplemental disclosure of non-cash activities: | ||
Liability for equity-based bonuses | (345) | 345 |
Settlement of Ripka earnout through offset to note receivable | 100 | 0 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for income taxes | 302 | 167 |
Cash paid during the period for interest | $ 969 | $ 1,253 |
Nature of Operations, Backgroun
Nature of Operations, Background, and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Background, and Basis of Presentation | Nature of Operations, Background, and Basis of Presentation Xcel Brands, Inc. (“Xcel” and, together with its subsidiaries, the “Company”) is a media and consumer products company engaged in the design, production, marketing, and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. We have developed a Fast-to-Market supply chain capability driven by its proprietary integrated technology platform. Currently, our brand portfolio consists of the Isaac Mizrahi brand (the "Isaac Mizrahi Brand"), the Judith Ripka brand (the "Ripka Brand"), the H by Halston and H Halston brands (collectively, the "H Halston Brands"), the C Wonder brand (the "C Wonder Brand"), and the Highline Collective brand. In addition, the Halston brand, the Halston Heritage brand and Roy Frowick brand (collectively the "Halston Heritage Brands") were acquired on February 11, 2019. See Note 12 " Subsequent Events " for additional information. The Company licenses its brands to third parties, provides certain design, production, and marketing and distribution services, and generates licensing and design fee revenues through contractual arrangements with manufacturers and retailers. This includes licensing its own brands for promotion and distribution through a ubiquitous-channel retail sales strategy, which includes distribution through interactive television, the internet, and traditional brick-and-mortar retail channels. During January 2018, the Company launched its jewelry wholesale and e-commerce operations and in November 2018, launched its apparel wholesale operations. The Company separately presented in its Consolidated Statements of Operations, "Sales" and "Cost of goods sold (sales)" relating to its jewelry and apparel wholesale and jewelry e-commerce operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Xcel and its wholly owned subsidiaries as of and for the years ended December 31, 2018 (the "Current Year") and 2017 (the "Prior Year"). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and in accordance with the accounting rules under Regulation S-X, as promulgated by the Securities and Exchange Commission (“SEC”). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation, or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates. The Company deems the following items to require significant estimates from management: • Allowance for doubtful accounts; • Useful lives of trademarks; • Assumptions used in the valuation of intangible assets and goodwill including cash flow estimates for impairment analysis; • Black-Scholes option pricing model assumptions for stock option values; • Performance-based stock option expense recognition; • Inventory reserves; and • Valuation allowances and effective tax rate for tax purposes. Cash and Cash Equivalents The Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. Accounts Receivable Accounts receivable are reported net of the allowance for doubtful accounts. Allowance for doubtful accounts is based on the Company’s ongoing discussions with its licensees, wholesale and digital customers and its evaluation of each customer's payment history, account aging, and financial position. As of December 31, 2018 and 2017 , the Company had $11.0 million and $8.5 million of accounts receivable, net of allowances for doubtful accounts of approximately $0.2 million and $0.03 million , respectively. The accounts receivable balance includes approximately $0.00 million and $0.38 million of earned revenue that has been accrued but not billed as of December 31, 2018 and 2017 , respectively. Inventory Inventory is recorded at the lower of cost or net realizable value, with cost determined on a weighted average basis. The Company holds finished goods inventory for its e-commerce jewelry operations. Apparel and jewelry finished goods inventory is purchased to satisfy orders received from its wholesale operations. The Company periodically reviews the composition of its inventories in order to identify obsolete, slow-moving or otherwise non-saleable items. If non-saleable items are observed and there are no alternate uses for the inventories, the Company will record a write-down to net realizable value in the period that the decline in value is first recognized. Reserves for inventory shrinkage, representing the risk of physical loss of inventory, are estimated based on historical experience and are adjusted based upon physical inventory counts. Property and Equipment Furniture, equipment, and software are stated at cost less accumulated depreciation and amortization, and are depreciated using the straight-line method over their estimated useful lives, generally three ( 3 ) to seven ( 7 ) years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the terms of the leases. Betterments and improvements are capitalized, while repairs and maintenance are expensed as incurred. Trademarks, Goodwill and Other Intangible Assets The Company follows Financial Accounting Standards Board, or FASB, Accounting Standard Codification, or ASC Topic 350, “Intangibles - Goodwill and Other.” Under this standard, goodwill and indefinite lived intangible assets are not amortized, but are required to be assessed for impairment at least annually (we utilize December 31 as our testing date) and when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill The Company annually has the option to first assess qualitatively whether it is more likely than not that there is an impairment. Should the results of this assessment result in either an ambiguous or unfavorable conclusion, the Company will perform additional quantitative testing. The first quantitative testing step compares estimated fair value with carrying value. If the estimated fair value exceeds the carrying value, then goodwill is considered not impaired. If the carrying value exceeds the estimated fair value, then a second step is performed to determine the implied fair value of goodwill. If the carrying value of goodwill exceeds its implied fair value, then an impairment charge equal to the difference is recorded. This requires the Company’s management to make certain assumptions and estimates regarding certain industry trends and future revenues of the Company. The Company performed its annual quantitative analysis of goodwill at December 31, 2017. As a result of the December 31, 2017 impairment testing, the Company recorded a non-cash impairment charge in the fourth quarter of 2017 for the total amount of goodwill previously recorded on its balance sheet of approximately $12.4 million . The underlying cause of the impairment was the declining public trading price of the Company’s common stock and the ensuing decrease in the Company’s market capitalization, as of December 31, 2017, as compared to the calculated fair value of the Company (see below for further discussion of the determination of fair value). The Company’s trading price for its common stock had been declining in 2017 due to our thinly traded stock, failure of the market to distinguish us from our competitors with poor balance sheets, and general outlook on the consumer retail environment. Due to the prolonged decline in the Company’s stock price, it was determined during the fourth quarter that such a decline was no longer temporary. With reference to the goodwill quantitative testing at December 31, 2017, the Company determined fair value using a weighted approach, including both an income approach and a market approach. The income approach included a discounted cash flow model relying on significant assumptions consisting of revenue growth rates and operating margins based on internal forecasts, terminal value, and the weighted average cost of capital ("WACC") used to discount future cash flows (in our 2017 analysis, we used a discount rate of 13% ). Internal forecasts of revenue growth, operating margins, and working capital needs over the next five years were developed with consideration of macroeconomic factors, historical performance, and planned activities. In 2017, the Company made a terminal value assumption that cash flows would grow 4.0% each year subsequent to year five, based on management expectations for the long-term growth prospects of the Company. The residual value was determined under both an EBITDA exit multiple and a Gordon Growth model. To determine the WACC, the Company used a standard valuation method, the Capital Asset Pricing Model (“CAPM”), based on readily available and current market data of peer companies considered market participants. An additional risk premium of 2% was added to the WACC. As some of the other comparable companies have significant levels of debt, Xcel’s public data was selected for the capital structure and beta. For the market approach, the Company considered both the Guideline Companies method and the Comparable Transactions method. The inputs and assumptions utilized in the goodwill impairment analysis are classified as Level 3 inputs in the fair value hierarchy. Indefinite Lived Intangible Assets The Company tests its indefinite-lived intangible assets for recovery in accordance with ASC-820-10-55-3F, which states that the income approach (“Income Approach”) converts future amounts (for example cash flows) to a single current (that is, discounted) amount. When the Income Approach is used, fair value measurement reflects current market expectations about those future amounts. The Income Approach is based on the present value of future earnings expected to be generated by a business or asset. Income projections for a future period are discounted at a rate commensurate with the degree of risk associated with future proceeds. A residual or terminal value is also added to the present value of the income to quantify the value of the business beyond the projection period. As such, recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to its expected future discounted net cash flows. If the carrying amount of such assets is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the recoverable amount of the assets. There were no impairments charges in the Current Year or Prior Year. Finite Lived Intangible Assets The Company’s finite lived intangible assets, including Trademarks, are reviewed for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An impairment loss is recognized if the carrying amount of a finite lived intangible asset is not recoverable and its carrying amount exceeds its fair value. No impairment charges were recorded for the years ended December 31, 2018 and 2017 . With reference to our finite-lived intangible assets impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on undiscounted cash flows analysis or appraisals. The inputs utilized in the finite-lived intangible assets impairment analysis are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820. The Company’s finite lived intangible assets are amortized over their estimated useful lives of four ( 4 ) to fifteen ( 15 ) years. Restricted Cash Restricted cash at both December 31, 2018 and 2017 was (i) $1.5 million and consists of cash deposited with Bank Hapoalim B.M. (“BHI”) as (i) $1.0 million collateral for an irrevocable standby letter of credit associated with the lease of the Company’s current corporate office and operating facilities at 1333 Broadway, New York City, and (ii) $0.4 million of cash held as a security deposit for the sublease of the Company’s former corporate offices by the Company to a third-party subtenant. Investment in Unconsolidated Affiliate The Company holds a limited partner ownership interest in an unconsolidated affiliate, which was entered into in 2016. This investment is accounted for in accordance with ASU No. 2016-01, "Financial Instruments" Overall (Subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities," and is included within other assets on the Company’s consolidated balance sheets at December 31, 2018 and 2017 . As of December 31, 2018 and 2017 , the carrying value of this investment was $0.1 million . This investment does not have a readily determinable fair value and in accordance with ASC 820-10-35-59, the investment is valued at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer. Note Receivable The Company holds a promissory note receivable from a certain key employee in the principal amount of $0.9 million . This note receivable was entered into during 2016 is due and payable on April 1, 2019 , and is fully collateralized by various assets of the employee in which the Company has been granted a security interest. The note receivable has been recorded at amortized cost, and is included within other assets on the Company’s consolidated balance sheets at December 31, 2018 and 2017 . The note bears interest at 5.1% , which was prepaid through a non-refundable original issue discount; interest income is being recognized over the term of the note using the interest method. The net carrying value of the promissory note receivable at December 31, 2018 and 2017 was $0.9 million and $0.9 million , respectively. Deferred Finance Costs The Company incurred costs (primarily professional fees and lender underwriting fees) in connection with borrowings under the senior secured term loans. These costs have been deferred on the consolidated balance sheets as a reduction to the carrying value of the associated borrowings. Such costs are amortized as interest expense using the effective interest method. Contingent Obligations Management analyzes and quantifies the expected contingent obligations (expected earn-out payments) over the applicable pay-out period. Management assesses no less frequently than each reporting period the status of contingent obligations and any expected changes in the fair value of such contingent obligations. Any change in the expected obligation will result in expense or income recognized in the period in which it is determined that the fair value has changed. Additionally, when accounting for asset acquisitions, if any contingent obligations exist, such obligations are recognized and recorded as the positive difference between the fair value of the assets acquired and the consideration paid for the acquired assets. See Note 5 Debt and Other Long-term Liabilities for additional information related to contingent obligations. Revenue Recognition The Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” under the modified retrospective adoption method effective January 1, 2018, by applying the new guidance only to contracts that were not completed at the date of initial application. The Company’s evaluation of the impact of the adoption of the new revenue standard on its consolidated financial statements included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. The Company performed an extensive analysis of its existing contracts with customers and its revenue recognition policies and determined that the adoption did not result in material differences from the Company’s prior revenue recognition policies. In addition, the adoption of ASC 606 did not result in material differences in the amount of revenue recognized in the current year-to-date period when compared to the amount of revenue that would have been recognized in the current year-to-date period under the old guidance. Licensing The Company recognizes revenue continuously over time as it satisfies its continuous obligation of granting access to its licensed intellectual properties, which are deemed symbolic intellectual properties under the new revenue guidance. Payments are typically due after sales have occurred and have been reported by the licensees or, where applicable, in accordance with minimum guaranteed payments provisions. The timing of performance obligations is typically consistent with the timing of payments, though there may be differences if contracts provide for advances or significant escalations of contractually guaranteed minimum payments. There were no such differences that would have a material impact on our Consolidated Balance Sheet at December 31, 2018 . In accordance with ASC 606-10-55-65, the Company recognizes revenue at the later of when (1) the subsequent sale or usage occurs or (2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied (in whole or in part). More specifically, the Company separately identifies: (i) Contracts for which, based on experience, royalties are expected to exceed any applicable minimum guaranteed payments, and to which an output-based measure of progress based on the “right to invoice” practical expedient is applied because the royalties due for each period correlate directly with the value to the customer of the Company’s performance in each period (this approach is identified as “View A” by the FASB Revenue Recognition Transition Resource Group, “TRG”); and (ii) Contracts for which revenue is recognized based on minimum guaranteed payments using an appropriate measure of progress, in which minimum guaranteed payments are straight-lined over the term of the contract and recognized ratably based on the passage of time, and to which the royalty recognition constraint to the sales-based royalties in excess of minimum guaranteed is applied and such sales-based royalties are recognized to distinct period only when the minimum guaranteed is exceeded on a cumulative basis (this approach is identified as “View C” by the TRG). The Company does not typically perform by transferring goods or services to customers before the customer pays consideration or before payment is due, thus the implementation of ASC 606 did not result in material contract assets in accordance with ASC 606-10-45-3. The Company’s unconditional right to receive consideration based on the terms and conditions of licensing contracts is presented as accounts receivable on the accompanying consolidated balance. The Company typically does not receive consideration in advance of performance and, consequently, amounts of contract liabilities as defined by ASC 606-10-45-2 were not material as of December 31, 2018 . The Company does not disclose the amount attributable to unsatisfied or partially satisfied performance obligations for variable revenue contracts (identified under “View A” above) in accordance with the optional exemption allowed under ASC 606. The Company did not have any revenue recognized in the reporting period from performance obligations satisfied, or partially satisfied, in previous periods. Remaining minimum guaranteed payments for active contracts as of December 31, 2018 are expected to be recognized ratably in accordance with View C over the remaining term of each contract based on the passage of time and through December 2023. Design Fees The Company earns design fees for serving as a buying agent for apparel under private labels for large retailers. As a buying agent, the Company utilizes its expertise and relationships with manufacturers to facilitate the production of private label apparel to customer specifications. The Company’s design fee revenue also includes fees charged for its design and product development services provided to certain suppliers. The Company satisfies its performance obligation to its customers by performing the services in buyer agency agreements and thereby earning its design fee at the point in time when the customer’s freight forwarder takes control of the goods. The Company satisfies its performance obligation with the suppliers and earns its design fee from the factory at the point in time when the customer’s freight forwarder takes control of the goods. Wholesale Sales The Company generates revenue through the design, sourcing and sale of branded jewelry and apparel to both domestic and international customers who, in turn, sell the products to the consumer. The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which occurs upon the transfer of control of the merchandise in accordance with the contractual terms and conditions of the sale. Direct to Consumer Sales The Company's revenue associated with its e-commerce jewelry is recognized at a point in time when product is shipped to the customer. Advertising Costs All costs associated with production for the Company’s advertising, marketing and promotion are expensed during the periods when the activities take place. All other advertising costs, such as print and online media, are expensed when the advertisement occurs. The Company incurred $0.3 million in advertising and marketing costs for the year ended December 31, 2018 and $0.01 million for the year ended December 31, 2017 . Operating Leases Total rental payments under operating leases that include scheduled payment increases and rent holidays are amortized on a straight-line basis over the term of the lease. Landlord allowances are amortized by the straight-line method from the possession date through the end of the term of the lease as a reduction of rent expense. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation - Stock Compensation,” by recognizing the fair value of stock-based compensation as an operating expense over the service period of the award or term of the corresponding contract, as applicable. The fair value of stock options and warrants is estimated on the date of grant using the Black-Scholes option pricing model. The valuation determined by the Black-Scholes option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, expected stock price volatility over the terms of the awards, and actual and projected employee stock option exercise behaviors. The risk-free rate is based on the U.S. Treasury rate for the expected life at the time of grant, volatility is based on the average long-term implied volatilities of peer companies, and expected life is based on the estimated average of the life of options and warrants using the simplified method. The Company utilizes the simplified method to determine the expected life of the options and warrants due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. Restricted stock awards are valued using the fair value of the Company’s stock at the date of grant. The Company accounts for non-employee awards in accordance with ASC Topic 505-50, “Equity-Based Payments to Non-Employees”. The Company accounts for forfeitures as a reduction of compensation cost in the period when such forfeitures occur. For stock option awards for which vesting is contingent upon the achievement of certain performance targets, the timing and amount of compensation expense recognized is based upon the Company’s projections and estimates of the relevant performance metric(s) until the time the performance obligation is satisfied. Income Taxes Current income taxes are based on the respective period’s taxable income for federal and state income tax reporting purposes. Deferred tax liabilities and assets are determined based on the difference between the financial statement and income tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is required if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies the FASB guidance on accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also addresses derecognition, classification, interest, and penalties related to uncertain tax positions. The Company has no unrecognized tax benefits as of December 31, 2018 and 2017 . Interest and penalties related to uncertain tax positions, if any, are recorded in income tax expense. The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The income tax effects of changes in tax laws are recognized in the period when enacted. The Act provides for numerous significant tax law changes and modifications with varying effective dates, which include reducing the U.S. federal corporate income tax rate from a maximum of 35% to 21% , creating a territorial tax system (with a one-time mandatory repatriation tax on previously deferred foreign earnings), broadening the tax base, and allowing for immediate capital expensing of certain qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. In response to the enactment of the Tax Act in late 2017, the U.S. Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations where the accounting is incomplete for certain income tax effects of the Tax Act upon issuance of an entity’s financial statements for the reporting period in which the Act was enacted. Under SAB 118, a company may record provisional amounts during a measurement period for specific income tax effects of the Tax Act for which the accounting is incomplete but a reasonable estimate can be determined, and when unable to determine a reasonable estimate for any income tax effects, report provisional amounts in the first reporting period in which a reasonable estimate can be determined. The Company has recorded the impact of the tax effects of the Tax Act as of December 31, 2017 , and as of December 31, 2018 the Company finalized its accounting for the income tax effects of the Act and had no change to its original estimates. Fair Value ASC 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), defines fair value and establishes a framework for measuring fair value under U.S. GAAP. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of the Company’s assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). Fair Value of Financial Instruments For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to the short-term maturities of these instruments. The carrying value of the promissory note receivable approximates fair value because the fixed interest rate approximates current market rates and in the instances it does not, the impact is not material. The carrying value of the Xcel Term Loan (as defined in Note 5) approximates fair value because the fixed interest rate approximates current market rates and in the instances it does not, the impact is not material. When debt interest rates are below market rates, the Company considers the discounted value of the difference of actual interest rates and its internal borrowing against the scheduled debt payments. The fair value of the Company’s cost method investment does not have a readily determinable fair value and in accordance with ASC 820-10-35-59, the investment is valued at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer. Fair Value of Contingent Obligations The Company recognized a contingent obligation in connection with the acquisition of Judith Ripka Trademarks during the year ended December 31, 2014. ASC 805-50-30 requires that, when accounting for asset acquisitions, when the fair value of the assets acquired is greater than the consideration paid, any contingent obligations shall be recognized and recorded as the positive difference between the fair value of the assets acquired and the consideration paid for the acquired assets. The Company also recognized a contingent obligation in connection with the acquisition of the C Wonder Trademarks in 2015. ASC 805-50-30 requires that, when the fair value of the assets acquired are equal to the consideration paid, any contingent obligations shall be recognized based upon the Company's best estimate of the amount that will be paid to settle the liability. See Note 5. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, accounts receivable, and notes receivable. The Company limits its credit risk with respect to cash by maintaining cash, cash equivalents, and restricted cash balances with high quality financial institutions. At times, the Company’s cash, cash equivalents, and restricted cash may exceed federally insured limits. Concentrations of credit risk with respect to accounts receivable are minimal due to the collection history and due to the nature of the Company’s royalty revenues. Generally, the Company does not require collateral or other security to support accounts receivable. Concentration of credit risk with respect to the promissory note receivable held by the Company is mitigated as it is fully collateralized by various assets in which the Company has been granted a security interest. Earnings Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted (loss) earnings per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon the exercise of stock options and warrants using the treasury stock method. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options and warrants outstanding were exercised into common stock if the effect is not anti-dilutive. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for public companies for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance to determine the impact the adoption of this guidance will have on the Company’s results of operations, cash flows and financial condition. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). The core principle of ASU 2016-02 is that an entity should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on the lease classification as a finance or operating lease. In addition, in July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which addresses implementation issues related to the new lease standard. This guidance is effective for the Company as of January 1, 2019 and the Company will adopt this guidance using the modified retrospective approach and will recognize a cumulative-effect adjustment to the opening balance of Retained earnings in that period. This guidance includes a number of optional practical expedients that the Company may elect to apply, incl |
Trademarks, Goodwill and Other
Trademarks, Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Trademarks, Goodwill and Other Intangibles | Trademarks, Goodwill and Other Intangibles Trademarks and other intangibles, net consist of the following: December 31, 2018 ($ in thousands) Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks (indefinite-lived) n/a $ 96,707 $ — $ 96,707 Trademarks (finite-lived) 15 years 15,463 3,521 11,942 Non-compete agreement 7 years 561 321 240 Copyrights and other intellectual property 10 years 190 90 100 Total $ 112,921 $ 3,932 $ 108,989 December 31, 2017 ($ in thousands) Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks (indefinite-lived) n/a $ 96,707 $ — $ 96,707 Trademarks (finite-lived) 15 years 15,463 2,490 12,973 Non-compete agreement 7 years 561 240 321 Copyrights and other intellectual property 10 years 190 71 119 Total $ 112,921 $ 2,801 $ 110,120 The trademarks of the Isaac Mizrahi Brand, the Ripka Brand, and the H Halston Brands have been determined to have indefinite useful lives and accordingly, no amortization has been recorded in the Company’s consolidated statements of operations related to those intangible assets. Amortization expense for finite lived intangible assets for each of the years ended December 31, 2018 and 2017 was approximately $1.1 million . Estimated future amortization expense related to finite lived intangible assets over the remaining useful lives is as follows: ($ in thousands) Amortization Expense Year Ending December 31, 2019 $ 1,130 2020 1,130 2021 1,130 2022 1,050 2023 1,050 Thereafter 6,793 Total $ 12,283 During the year ended December 31, 2017 , the Company recorded a non-cash impairment charge of $12.4 million , which was the carrying amount of its goodwill immediately before the charge. The underlying cause of the impairment was the declining public trading price of the Company’s common stock and the ensuing decrease in the Company’s market capitalization as of December 31, 2017 , as compared to the calculated fair value of the Company. The Company’s trading price for its common stock had been declining in 2017 due to its thinly traded stock, failure of the market to distinguish us from our competitors with poor balance sheets, and general outlook on consumer retail environment. Due to the prolonged decline in the Company’s stock price, it was determined during the fourth quarter that such a decline was no longer temporary. During 2017 , management was continuously monitoring the Company’s stock price and its market capitalization and expectations were that the sector would eventually improve and the Company’s stock would trade again at a higher value, able to support the implied premium included in the fair value obtained through the above-mentioned weighted approach, and more representative of the Company’s expected long-term target stock price. The Company’s stock trading price gradually improved during 2017 , however, beginning early November, the stock trading price began to trend back down. Management believed this to be a temporary trend, and that our stock price would soon improve. This position was supported by management consideration of some of our competitors’ highly leveraged businesses and that investors would eventually realize that the Company’s fair value was penalized by the resulting sector performance on the stock market. Although the Company’s stock price did improve toward the end of this year, due to the volatility and with continuing low stock trading prices, management decided to increase the relative weight of the market approach in its fair value model, and consequently increase the emphasis on its market peers, which ultimately resulted in the recording of the goodwill impairment. |
Significant Contracts
Significant Contracts | 12 Months Ended |
Dec. 31, 2018 | |
Significant Contracts [Abstract] | |
Significant Contracts | Significant Contracts QVC Agreements Through its wholly owned subsidiaries, the Company has direct-to-retail license agreements with QVC, pursuant to which the Company designs, and QVC sources and sells, various products under the IsaacMizrahiLIVE brand, the Judith Ripka brand, the H by Halston brand, and the C Wonder brand. These agreements include, respectively, the IM QVC Agreement, the Ripka QVC Agreement, and the H QVC Agreement, (collectively, the “QVC Agreements”). QVC owns the rights to all designs produced under the QVC Agreements, and the QVC Agreements include the sale of products across various categories through QVC’s television media and related internet sites. Pursuant to the agreements, the Company has granted to QVC and its affiliates the exclusive, worldwide right to promote the Company’s branded products, and the right to use and publish the related trademarks, service marks, copyrights, designs, logos, and other intellectual property rights owned, used, licensed and/or developed by the Company, for varying terms as set forth below. The Agreements include automatic renewal periods as detailed below unless terminated by either party. Agreement Current Term Expiry Automatic Renewal Xcel Commenced Brand with QVC QVC Product Launch IM QVC Agreement September 30, 2020 one-year period September 2011 2010 Ripka QVC Agreement March 31, 2020 one-year period April 2014 1999 H QVC Agreement December 31, 2020 one-year period January 2015 September 2015 On April 28, 2017, the Company and QVC entered into an amendment to terminate the C Wonder QVC Agreement effective May 1, 2017 and commence a sell-off period. During the sell-off period, QVC remained obligated to pay royalties to the Company through January 31, 2018, and QVC retained exclusive rights with respect to C Wonder branded products for interactive television, excluding certain permitted international entities, through May 1, 2018. In connection with the foregoing and during the same periods, QVC and its subsidiaries have the exclusive, worldwide right to use the names, likenesses, images, voices, and performances of the Company’s spokespersons to promote the respective products. Under the IM QVC Agreement, IM Brands has also granted to QVC and its affiliates, during the same period, exclusive, worldwide rights to promote third-party vendor co-branded products that, in addition to bearing and being marketed in connection with the trademarks and logos of such third-party vendors, also bear or are marketed in connection with the IsaacMizrahiLIVE trademark and related logo. Under the QVC Agreements, QVC is obligated to make payments to the Company on a quarterly basis, based primarily upon a percentage of the net retail sales of the specified branded products. Net retail sales are defined as the aggregate amount of all revenue generated through the sale of the specified branded products by QVC and its subsidiaries under the QVC Agreements, excluding freight, shipping and handling charges, customer returns, and sales, use, or other taxes. Also, under the QVC Agreements, the Company will pay a royalty participation fee to QVC on revenue earned from the sale, license, consignment, or any other form of distribution of any products, bearing, marketed in connection with, or otherwise associated with the specified trademarks and brands. Net revenue from QVC totaled $25.63 million and $25.77 million for the Current Year and Prior Year, respectively, representing approximately 72% and 81% of the Company’s total revenues, respectively. As of December 31, 2018 and 2017 , the Company had receivables from QVC of $5.68 million and $5.47 million , representing approximately 52% and 64% of the Company’s accounts receivable, respectively. The December 31, 2018 and 2017 QVC receivables did not include any earned revenue accrued but not yet billed as of the respective balance sheet dates. |
Debt and Other Long-term Liabil
Debt and Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Other Long-term Liabilities | Debt and Other Long-term Liabilities Debt The Company’s net carrying amount of debt is comprised of the following: ($ in thousands) December 31, 2018 2017 Xcel Term Loan $ 15,500 $ 19,500 Unamortized deferred finance costs related to term loans (200 ) (346 ) IM Seller Note 742 2,201 Ripka Seller Notes 583 543 Contingent Obligation – JR Seller 100 200 Contingent Obligation – CW Seller 2,850 2,850 Total 19,575 24,948 Current portion (i), (ii) 8,275 5,559 Long-term debt $ 11,300 $ 19,389 (i) The current portion of long-term debt presented on the Consolidated Balance Sheet at December 31, 2018 includes (a) $4.0 million related to the Xcel Term Loan, (b) $0.74 million related to the IM Seller Note, (c) $2.95 million related to Contingent Obligations, and (d) $0.58 million related to the Ripka Seller Note. (ii) The current portion of long-term debt presented on the consolidated balance sheet at December 31, 2017 includes $4.0 million related to term loan debt, $1.46 million related to the IM Seller Note and $0.1 million related to a contingent obligation. Xcel Term Loan On February 26, 2016, the Company and its wholly owned subsidiaries, IM Brands, LLC, JR Licensing, LLC, H Licensing, LLC, C Wonder Licensing, LLC, Xcel Design Group, LLC, IMNY Retail Management, LLC, and IMNY E-Store, USA, LLC (each a “Guarantor” and collectively, the “Guarantors”), as Guarantors, entered into an amended and restated loan and security agreement (the “Loan Agreement”) with Bank Hapoalim B.M. (“BHI”) as agent, and the financial institutions party thereto as lenders. The Loan Agreement amended and restated the IM Term Loan, the JR Term Loan, and the H Term Loan. Pursuant to the Loan Agreement, Xcel assumed the obligations of each of IM Brands, LLC, JR Licensing, LLC, and H Licensing, LLC under the respective term loans with BHI in the aggregate principal amount of $27.9 million (the loan under the Loan Agreement is referred to as the “Xcel Term Loan”). The Xcel Term Loan matures on January 1, 2021. Principal on the Xcel Term Loan is payable in quarterly installments on each of January 1, April 1, July 1 and October 1. On February 24, 2017, Xcel and BHI amended the terms of the Loan Agreement (the “Amended Loan Agreement”). Under this amendment, principal payments for the year ending December 31, 2018 were increased by a total of $1.0 million , principal payments for the year ending December 31, 2021 were decreased by $1.0 million , and the minimum EBITDA (as defined in the Loan Agreement) requirement for the year ended December 31, 2017 was eliminated. There were no changes to the total principal balance, interest rate, maturity date, or other terms of the Loan Agreement. Management assessed and determined that this amendment represented a debt modification and, accordingly, no gain or loss was recorded. On June 15, 2017, Xcel and BHI entered into a second amendment to the Amended Loan Agreement. Under this amendment, principal payments for the year ending December 31, 2017 were increased by a total of $0.8 million , principal payments for the year ending December 31, 2021 were decreased by $0.8 million , the minimum EBITDA (as defined in the Second Amendment to the Amended Loan Agreement) requirement for the year ending December 31, 2017 was changed from $9.0 million to $7.0 million and the minimum EBITDA requirements for the years ending December 31, 2018 and 2019 were changed from $9.0 million to $8.0 million. There were no changes to the total principal balance, interest rate, maturity date, or other terms of the Amended Loan Agreement. Management assessed and determined that this amendment represented a debt modification and, accordingly, no gain or loss was recorded. The aggregate remaining annual principal payments under the Amended Loan Agreement are as follows: ($ in thousands) Amount of Principal Payment Year Ending December 31, 2019 $ 4,000 2020 4,000 2021 7,500 Total $ 15,500 Commencing with the fiscal year ended December 31, 2017, the Company was required to repay a portion of the Xcel Term Loan in an amount equal to 10% of the excess cash flow for the fiscal year; provided that no early termination fee shall be payable with respect to any such payment (the “Excess Cash Flow Principal Payment”). Excess cash flow means, for any period, cash flow from operations (before certain permitted distributions) less (i) capital expenditures not made through the incurrence of indebtedness, (ii) all cash interest and principal and taxes paid or payable during such period, and (iii) all dividends declared and paid during such period to equity holders of any credit party treated as a disregarded entity for tax purposes. As of December 31, 2018 and 2017, the estimated Excess Cash Flow Principal Payment provision of the Xcel Term Loan did not result in any additional repayment. The Company's obligations under the Amended Loan Agreement as of December 31, 2018 are guaranteed by the Guarantors and secured by all of the assets of Xcel and the Guarantors (as well as any subsidiary formed or acquired that becomes a credit party to the Amended Loan Agreement) and, subject to certain limitations contained in the Amended Loan Agreement, equity interests of the Guarantors (as well as any subsidiary formed or acquired that becomes a credit party to the Amended Loan Agreement). The Amended Loan Agreement contains customary covenants, including reporting requirements, trademark preservation, and the following financial covenants of the Company (on a consolidated basis with the Guarantors and any subsidiaries subsequently formed or acquired that become a credit party under the Amended Loan Agreement): • net worth (as defined in the Amended Loan Agreement) of at least $90.0 million at the end of each fiscal quarter ending on June 30 and December 31, of each fiscal year; • liquid assets of at least $5.0 million , until such time as the ratio of indebtedness to EBITDA (as defined in the Amended Loan Agreement) is less than 1.00 to 1.00 and, in which event, liquid assets must be at least $3.0 million ; • a fixed charge ratio of at least 1.20 to 1.00 for each fiscal quarter ended June 30 and December 31, for the twelve fiscal month period ending on such date; • capital expenditures shall not exceed (i) $2.7 million for the year ended December 31, 2017 and (ii) $1.7 million for the year ended December 31, 2018 (iii) $0.7 million for any fiscal year thereafter; and • EBITDA (as defined in the Amended Loan Agreement) of $8.0 million for the fiscal years ending December 31, 2018 and 2019, and $9.0 million for the following fiscal years. In connection with the above-mentioned refinancing transactions, the Company incurred fees to or on behalf of BHI of approximately $7,000 during the year ended December 31, 2017 . These fees, along with $0.2 million of deferred finance costs related to financing transactions that took place in prior years, have been deferred on the Consolidated Balance Sheets as a reduction to the carrying value of the Xcel Term Loan, and are being amortized to interest expense over the term of the Term Loan using the effective interest method. The current effective interest rate on the Amended Loan Agreement is equal to approximately 6.05% . Interest on the Xcel Term Loan accrues at a fixed rate of 5.1% per annum and is payable on each day on which the scheduled principal payments are required to be made. For the Current Year and Prior Year, the Company incurred interest expense of approximately $0.9 million and $1.1 million , respectively, related to term loan debt. On February 11, 2019, an amendment was made to the Amended Loan Agreement with BHI "Second Amended and Restated Loan and Security Agreement". Immediately prior to February 11, 2019, the aggregate principal amount of the term loan under the Amended Loan Agreement was $15.5 million . Pursuant to the Amended Loan Agreement, the Lenders have extended an additional term loan in the amount of $7.5 million , such that, as of February 11, 2019, the aggregate outstanding balance of all the term loans by the Lenders to Xcel under the Second Amended and Restated Loan and Security Agreement is $22.0 million , which amount has been divided into two term loans: (1) a term loan in the amount of $7.3 million (“Term Loan A”) and (2) a term loan in the amount of $14.8 million (“Term Loan B” and, together with Term Loan A, the “Term Loans”). See Note 12 "Subsequent Events" for additional information. IM Seller Note On September 29, 2011, as part of the consideration for the purchase of the Isaac Mizrahi Business, the Company issued to IM Ready-Made, LLC (“IM Ready”) a promissory note in the principal amount of $7.4 million (as amended, the “IM Seller Note”). The stated interest rate of the IM Seller Note was 0.25% per annum. Management determined that this rate was below the Company’s expected borrowing rate, which was then estimated at 9.25% per annum. Therefore, the Company discounted the IM Seller Note by $1.7 million using a 9.0% imputed annual interest rate, resulting in an initial value of $5.6 million . In addition, on September 29, 2011, the Company prepaid $0.1 million of interest on the IM Seller Note. The imputed interest amount was amortized over the term of the IM Seller Note and recorded as other interest and finance expense on the Company’s consolidated statements of operations. On December 24, 2013, the IM Seller Note was amended to (1) revise the maturity date to September 30, 2016, (2) revise the date to which the maturity date may be extended to September 30, 2018 , (3) provide the Company with a prepayment right with its common stock, subject to remitting in cash certain required cash payments and a minimum common stock price of $4.50 per share, and (4) require interim scheduled payments. The amendment included a partial repayment of $1.5 million of principal. On September 19, 2016, the IM Seller Note was further amended and restated to (1) revise the maturity date to March 31, 2019, (2) require six semi-annual principal and interest installment payments of $0.8 million , commencing on September 30, 2016 and ending on March 31, 2019, (3) revise the stated interest rate to 2.236% per annum, (4) allow for optional prepayments at any time at the Company’s discretion without premium or penalty, and (5) require that all payments of principal and interest be made in cash. Management assessed and determined that this amendment represented a debt modification and, accordingly, no gain or loss was recorded. As of December 31, 2018 , the aggregate remaining annual principal payments under the IM Seller Note are as follows: ($ in thousands) Amount of Principal Payment Year Ending December 31, 2019 $ 742 For the years ended December 31, 2018 and 2017 , the Company incurred interest expense of approximately $0.03 million and $0.07 million , respectively under the IM Seller Note, which consisted solely of amortization of the discount on the IM Seller Note. Ripka Seller Notes As of December 31, 2018 and 2017 , the remaining discounted balance, non-interest-bearing note relating to the Ripka Seller Notes was approximately $0.58 million and $0.54 million , respectively. An aggregate $0.60 million principal amount of the Ripka Seller Notes is due at maturity (March 31, 2019). For the years ended December 31, 2018 and 2017 , the Company incurred interest expense of approximately $0.04 million and $0.04 million , respectively, which consisted solely of amortization of the discount on the Ripka Seller Notes. Contingent Obligation – JR Seller (Ripka Earn-Out) In connection with the asset purchase of the Ripka Brand, the Company agreed to pay the sellers of the Ripka brand additional consideration of up to $5.0 million in aggregate (the “Ripka Earn-Out”), payable in cash or shares of the Company’s common stock based on the fair value of the Company’s common stock at the time of payment, and with a floor of $7.00 per share, based on the Ripka Brand achieving in excess of $1.0 million of net royalty income (excluding revenues generated by interactive television sales) during each of the 12 -month periods ending on October 1, 2016, 2017 and 2018, less the sum of all earn-out payments for any prior earn-out period. The Ripka Earn-Out was recorded at a value of $3.8 million based on the difference between the fair value of the acquired assets of the Ripka Brand at the acquisition date and the total consideration paid. In accordance with ASC Topic 480, “Distinguishing Liabilities from Equity,” the Ripka Earn-Out obligation was classified as a liability in the accompanying consolidated balance sheets because of the variable number of shares payable under the agreement. On December 21, 2016, the Company entered into an agreement with the sellers of the Ripka Brand which amended the terms of the Ripka Earn-Out, such that the maximum amount of earn-out consideration was reduced to $0.4 million , of which $0.2 million was payable in cash upon execution of the amendment, and $0.1 million is payable in cash on each of May 15, 2018 and 2019. The payment of the remaining future payments of $0.2 million under the earn-out is contingent upon the Ripka Brand achieving at least $6.0 million of net royalty income from QVC during each of the 12 -month periods ending on March 31, 2018 and 2019. On May 15, 2018 the Company settled the $0.1 million earnout due by reducing the principal amount owed by Judith Ripka to the Company under a promissory note (included in prepaid expenses and other current assets on the Consolidated Balance Sheets as of December 31, 2018). The remaining expected value (which approximates fair value) of the Ripka Earn-Out of $0.1 million is presented in the current portion of long-term debt on the accompanying Consolidated Balance Sheets as of December 31, 2018 . As of December 31, 2017 , the expected value of the Ripka Earn-out was $0.2 million , of which $0.1 million is presented in the accompanying Consolidated Balance Sheet in the current portion of long-term debt and $0.1 million is presented in long-term debt. Contingent Obligation – CW Seller (C Wonder Earn-Out) In connection with the asset purchase of the C Wonder Brand, the Company agreed to pay the seller additional consideration, which would be payable, if at all, in cash or shares of common stock of the Company, at the Company’s sole discretion, after June 30, 2019, with a value based on the royalties related directly to the assets the Company acquired pursuant to the purchase agreement. The value of the earn-out shall be calculated as the positive amount, if any, of (i) two times (A) the maximum net royalties as calculated for any single twelve month period commencing on July 1 and ending on June 30 between the closing date and June 30, 2019 (each, a “Royalty Target Year”) less (B) $4.0 million , plus (ii) two times the maximum royalty determined based on a percentage of retail and wholesale sales of C Wonder branded products by the Company as calculated for any single Royalty Target Year. The C Wonder Earn-Out of $2.9 million , which was calculated at the asset acquisition date, is presented in the current portion of long-term debt on the accompanying consolidated balance sheets, as of December 31, 2018, and in long-term debt as of December 31, 2017. In accordance with ASC Topic 480, “Distinguishing Liabilities from Equity,” the C Wonder Earn-Out obligation is classified as a liability in the accompanying consolidated balance sheets because of the variable number of shares payable under the agreement. As of December 31, 2018 and 2017 , total contingent obligations were $2.95 million and $3.05 million , respectively. Other Long-term Liabilities Other long-term liabilities are primarily comprised of deferred rent of approximately $2.62 million and $2.5 million as of December 31, 2018 and 2017 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company has authority to issue up to 51,000,000 shares, consisting of 50,000,000 shares of common stock and 1,000,000 shares of preferred stock. 2011 Equity Incentive Plan The Company’s 2011 Equity Incentive Plan, as amended and restated (the “Plan”), is designed and utilized to enable the Company to provide its employees, officers, directors, consultants and others whose past, present and/or potential contributions to the Company have been, are or will be important to the success of the Company, an opportunity to acquire a proprietary interest in the Company. A total of 13,000,000 shares of common stock are eligible for issuance under the Plan. The Plan provides for the grant of any or all of the following types of awards: stock options, restricted stock, deferred stock, stock appreciation rights and other stock-based awards. The Plan is administered by the Company’s Board of Directors, or, at the Board’s discretion, a committee of the Board. Stock Options Options granted under the Plan expire at various times – either five, seven, or ten years from the date of grant, depending on the particular grant. A summary of the Company’s stock option activity for the Current Year is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 3,468,833 $ 5.38 4.14 $ — Granted 250,000 3.34 Canceled — — Exercised — — Expired/Forfeited (460,958 ) 3.82 Outstanding at December 31, and expected to vest 3,257,875 $ 5.44 3.19 $ — Exercisable at December 31, 2018 1,776,796 $ 5.60 2.49 $ — On March 30, 2018, the Company granted options to purchase an aggregate of 50,000 shares of common stock to a certain key employee. The exercise price of the options is $5.50 per share, and all options vested immediately on the date of grant. On April 2, 2018, the Company granted options to purchase an aggregate of 150,000 shares of common stock to non-management directors. The exercise price of the options is $3.00 per share, and 50% of the options will vest on each of April 2, 2019 and April 2, 2020. On October 15, 2018, the Company granted options to purchase an aggregate of 15,000 shares of common stock to a certain key employee. The exercise price of the options is $2.04 per share, and one-third of the options will vest on each of October 15, 2019, October 15, 2020, and October 15, 2021. On November 21, 2018, the Company granted options to purchase an aggregate of 35,000 shares of common stock to a certain key employee. The exercise price of the options is $2.25 per share, and 50% of the options will vest on each of September 30, 2019 and September 30, 2020. On January 1, 2017, the Company granted options to purchase an aggregate of 150,000 shares of common stock to a certain key employee. The exercise price of the options is $5.50 per share, and one-third of the options vest on each of January 1, 2018, January 1, 2019, and January 1, 2020. On January 24, 2017, the Company granted options to purchase an aggregate of 500,000 shares of common stock to a certain executive. The exercise price of the options is $5.00 per share, and one-fifth of the options vest on each of January 1, 2018, January 1, 2019, January 1, 2020, January 1, 2021, and January 1, 2022. On March 31, 2017, the Company granted options to purchase an aggregate of 150,000 shares of common stock to non-management directors. The exercise price of the options is $2.70 per share, and 50% of the options vest on each of April 1, 2018 and March 31, 2019. On May 31, 2017, the Company granted options to purchase an aggregate of 15,000 shares of common stock to a certain key employee. The exercise price of the options is $2.60 per share, and one-third of the options vest on each of May 31, 2018, May 31, 2019, and May 31, 2020. On August 30, 2017, the Company granted options to purchase an aggregate of 20,000 shares of common stock to a certain key employee. The exercise price of the options is $3.55 per share, and one-half of the options vest on each of August 30, 2018, and August 30, 2019. On October 1, 2017, the Company granted options to purchase an aggregate of 50,000 shares of common stock to a certain key employee. The exercise price of the options is $3.50 per share, and one-third of the options vest on each of April 1, 2018, April 1, 2019, and April 1, 2020. On November 2, 2017, the Company granted options to purchase an aggregate of 300,000 shares of common stock to a certain key employee. The exercise price of the options is $3.50 per share, and the vesting of such options is dependent upon the achievement of certain royalty income targets. The fair value of the options granted was estimated at the date of grant using the Black-Scholes option pricing model with the following assumptions: Year Ended December 31, 2018 2017 Expected Volatility 20.91 – 29.65 33.69 – 35.20 Expected Dividend Yield —% —% Expected Life (Term, in years) 2.5 – 3.5 3.25 – 5.42 Risk-Free Interest Rate 2.33 – 2.96% 0.91 – 1.21% Compensation expense related to stock options for the Current Year and Prior Year was approximately $1.1 million and $1.2 million respectively. Total unrecognized compensation expense related to unvested stock options at December 31, 2018 amounts to approximately $0.7 million and is expected to be recognized over a weighted average period of 1.89 years . The following table summarizes the Company’s stock option activity for non-vested options for the current year: Number of Options Weighted Average Grant Date Fair Value Balance at January 1, 2018 2,613,497 $ 1.23 Granted 250,000 0.54 Vested (983,586 ) 1.27 Forfeited or Canceled (398,832 ) 0.72 Balance at December 31, 2018 1,481,079 $ 1.23 Warrants Warrants granted by the Company expire at various times – either five, seven, or ten years from the date of grant, depending on the particular grant. A summary of the Company’s warrant activity for the current year is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding and exercisable at January 1, 2018 1,891,743 $ 6.81 1.92 $ — Granted — — Canceled — — Exercised — — Expired/Forfeited (676,928 ) (2.31 ) Outstanding and exercisable at December 31, 2018 1,214,815 $ 9.32 1.66 $ — The Company did not grant any warrants to purchase shares of common stock during the Current Year or Prior Year. No compensation expense was recorded in the Current Year or Prior Year related to warrants. Restricted Stock A summary of the Company’s restricted stock activity for the Current Year is as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 2,143,088 $ 5.35 Granted 190,806 3.03 Canceled — — Vested (873,684 ) 5.74 Expired/Forfeited — — Outstanding at December 31, 2018 1,460,210 $ 4.82 On March 14, 2018, the Company issued an aggregate of 90,209 shares of stock to certain non-executive employees, which vested immediately. On April 2, 2018, the Company issued an aggregate of 48,000 shares of stock to certain non-management directors, which will vest evenly over two years, whereby 50% shall vest on April 2, 2019, and 50% shall vest on April 2, 2020. On April 3, 2018, the Company issued an aggregate of 25,599 shares of stock to certain non-executive employees, which vested immediately. On May 31, 2018, the Company issued an aggregate of 1,664 shares of stock to certain non-executive employees, which vested immediately. On June 5, 2018, the Company issued of 7,000 shares of stock to a consultant, which vested immediately. On October 15, 2018, the Company issued 10,000 shares of stock to a consultant, which vested immediately. On October 15, 2018, the Company issued 8,334 shares of stock to a consultant, which vested immediately. On January 31, 2017, the Company issued 50,000 shares of restricted stock to a consulting firm whose controlling shareholder was a director of the Company until October 2017. Of the 50,000 shares of restricted stock granted, 25,000 shares vested immediately and 25,000 vested on January 31, 2018. On June 18, 2017, the Company issued an additional 28,334 shares of restricted stock to the same consulting firm, of which 14,167 shares vested immediately on the same day and 14,167 shares shall vest on January 31, 2018. See Note 11, Related Party Transactions, for additional information. On March 31, 2017, the Company issued to non-management directors an aggregate of 48,000 shares of restricted stock. The shares of restricted stock will vest evenly over two years, whereby 50% shall vest on March 31, 2018 and 50% shall vest on March 31, 2019. Notwithstanding the foregoing, each grantee may extend the first anniversary of all or a portion of the restricted stock by six months and, thereafter one or more times may further extend such date with respect to all or a portion of the restricted stock until the next following date exactly six months thereafter, by providing written notice of such election to extend such date with respect to all or a portion of the restricted stock prior to such date. Compensation expense related to restricted stock grants for the current year and prior year was $0.7 million and $2.0 million respectively. Total unrecognized compensation expense related to unvested restricted stock grants at December 31, 2018 amounts to $0.3 million and is expected to be recognized over a weighted average period of 0.91 years . The following table provides information with respect to restricted stock purchased and retired by the Company during the Current Year and Prior Year. Date Total Number of Shares Purchased Actual Price Paid per Share Number of Shares Purchased as Part of Publicly Announced Plan Fair value of Re-Purchased Shares March 31, 2018 (i) 43,638 $ 3.25 — $ 142,000 April 30, 2018 (i) 181,486 3.09 — 560,000 May 31, 2018 (i) 107 2.80 — — November 30, 2018 (i) 145,920 2.27 — 331,000 Total 2018 371,151 $ 2.79 — $ 1,033,000 March 31, 2017 (i) 294,540 $ 2.70 — $ 795,000 May 31, 2017 (i) 4,775 2.30 — 11,000 September 30, 2017 (i) 2,200 3.70 — 8,000 December 31, 2017 (i) 149,840 2.55 — 383,000 Total 2017 451,355 $ 2.66 — $ 1,197,000 (i) The shares were exchanged from employees and directors in connection with the income tax withholding obligations on behalf of such employees and directors from the vesting of restricted stock. All of the shares of restricted stock in the preceding table were originally granted to employees and directors as restricted stock pursuant to the Plan. Shares Available Under the Company’s 2011 Equity Incentive Plan At December 31, 2018 , there were 5,813,949 shares of common stock available for issuance under the Plan. Shares Reserved for Issuance At December 31, 2018 , there were 10,286,639 shares of common stock reserved for issuance pursuant to unexercised warrants and stock options, or available for issuance under the Plan. Dividends The Company has not paid any dividends to date. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Shares used in calculating basic and diluted earnings (loss) per share are as follows: Year Ended December 31, 2018 2017 Basic 18,280,788 18,502,158 Effect of exercise of warrants 850 — Diluted 18,281,638 18,502,158 As a result of the net loss presented for the year ended December 31, 2017, the Company calculated diluted earnings per share using basic weighted-average shares outstanding for such period, as utilizing diluted shares would be anti-dilutive to loss per share. The computation of basic and diluted earnings (loss) per share excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: Year Ended December 31, 2018 2017 Stock options and warrants 4,421,625 5,360,576 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases 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 “Letter of Credit”) from BHI for a sum not exceeding $1.1 million . The Company has deposited this amount with BHI as collateral for the Letter of Credit and recorded the amount as restricted cash in the consolidated balance sheets as of December 31, 2018 and December 31, 2017 . The Company also leases office space under an operating lease agreement at another location in New York City, representing the Company’s former corporate offices and operations facility. This lease shall expire on February 28, 2022 . This office space is currently subleased to a third-party subtenant through December 12, 2018, with a renewal option for our subtenant to extend the sublease term through February 27, 2022 . Future minimum lease payments under the terms of the Company’s noncancelable operating lease agreements are as follows: ($ in thousands) Lease Payments Year Ended December 31, 2019 $ 2,393 2020 2,423 2021 2,577 2022 1,732 2023 1,552 Thereafter 5,950 Total future noncancelable minimum lease payments $ 16,627 The aforementioned leases require the Company to pay additional rents related to increases in certain taxes and other costs on the properties. Total rent expense was approximately $1.5 million for the years ended December 31, 2018 and 2017 , respectively. Total minimum lease payments to be received in the future under noncancelable sublease agreements as of December 31, 2018 are approximately $0.78 million . Total sublease payments received for the years ended December 31, 2018 and 2017 were approximately $0.78 million and $0.74 million , respectively. Sublease payments received are credited against the exit cost liability on the Company's consolidated balance sheet. See Note 9 "Facility Exit Costs" . Employment Agreements The Company has contracts with certain executives and key employees. The future minimum payments under these contracts are as follows: ($ in thousands) Employment Contract Payments Year Ended December 31, 2019 $ 6,482 2020 2,507 2021 1,918 Thereafter — Total future minimum employment contract payments $ 10,907 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 $8.4 million at December 31, 2018 . See Note 12. |
Facility Exit Costs
Facility Exit Costs | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Facility Exit Costs | Facility Exit Costs In June 2016, the Company relocated its corporate offices and operations from 475 Tenth Avenue in New York City to 1333 Broadway in New York City. In connection with the exit from its former office location, the Company recognized a liability at the exit and cease-use date for the remaining lease obligation associated with 475 Tenth Avenue, based on the remaining contractual lease payments less estimated sublease rentals, discounted to present value using a credit-adjusted risk-free rate. At December 31, 2018 , the remaining balance of the exit cost liability related to the former office space was approximately $1.3 million , of which $0.6 million was recorded in other current liabilities and $0.7 million was recorded in other long-term liabilities in the accompanying consolidated balance sheet. The balance of this liability will be paid out over a period of approximately 3.2 years, through February 2022 . A summary of the activity related to the exit cost liability is as follows: ($ in thousands) 2018 2017 Balance as of January 1, $ 624 $ 783 Cash payments, net (113 ) (154 ) Adjustment to liability (revision to estimated cash flows) 799 (25 ) Accretion 8 20 Balance as of December 31, $ 1,318 $ 624 The Company changed its sublessor in December 2018, and the Company adjusted its lease liability related to 475 Tenth Avenue, resulting in a charge of $799 thousand , which includes future cash payments from a new sublessor. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. In determining the need for a valuation allowance, management reviews both positive and negative evidence pursuant to the requirements of ASC Topic 740, including current and historical results of operations, future income projections and the overall prospects of the Company's business. The income tax provision (benefit) for federal and state and local income taxes in the consolidated statements of operations consists of the following: ($ in thousands) Years Ended December 31, 2018 2017 Current: Federal $ — $ — State and local 67 79 Total current 67 79 Deferred: Federal 1,404 (883 ) State and local 360 357 Total deferred 1,764 (526 ) Total (benefit) provision $ 1,831 $ (447 ) The reconciliation of income tax computed at the federal and state and local statutory rates to the Company’s income before taxes is as follows: Years Ended December 31, 2018 2017 U.S. statutory federal rate 21.00 % (34.00 )% State and local rate, net of federal tax 14.16 1.09 Stock compensation 18.25 9.37 Excess compensation deduction 8.38 4.49 Foreign tax credits (1.03 ) (0.30 ) Federal true-ups 0.41 (0.17 ) Life insurance 1.28 0.57 Tax rate change due to Tax Cuts and Jobs Act — (24.88 ) Goodwill impairment — 39.50 Other permanent differences 0.25 0.14 Income tax provision (benefit) 62.70 % (4.19 )% The significant components of net deferred tax liabilities of the Company consist of the following: ($ in thousands) December 31, 2018 2017 Deferred tax assets Stock-based compensation $ 3,099 $ 4,097 Federal, state and local net operating loss carryforwards 566 312 Accrued compensation and other accrued expenses 1,009 1,132 Allowance for doubtful accounts 58 — Basis difference arising from discounted note payable 355 387 Foreign tax credit 130 95 Charitable contribution carryover 55 47 Property and equipment 170 — Other — 10 Total deferred tax assets $ 5,442 $ 6,080 Deferred tax liabilities Property and equipment — 220 Basis difference arising from intangible assets of acquisition (13,581 ) (12,675 ) Total deferred tax liabilities (13,581 ) (12,455 ) Net deferred tax liabilities $ (8,139 ) $ (6,375 ) As of December 31, 2018 and December 31, 2017, the Company had approximately $1.6 million and $.8 million, respectively, of federal net operating loss carryforwards ("NOLs") available to offset future taxable income. The NOL as of December 31, 2017 of $.8 million has an expiration period from 2036 through 2037. The NOL generated during tax year ending December 31, 2018 of $.8 million has an indefinite life and does not expire. As of December 31, 2018 and 2017 , management does not believe the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its consolidated financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its consolidated financial statements are necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Edward Jones, III Edward Jones, III, a director of the Company from October 2011 to October 2017, performed consulting services for and received compensation during 2017 from a certain licensee of the Company. Under the terms of the Company’s agreement with this certain licensee, the licensee may supply the Company’s branded products to the Company’s other licensees. Under the terms of the Company’s separate pre-existing agreements with other licensees, the Company would earn royalties on the sales of such branded products sold to end customers. On January 31, 2017, the Company entered into a two -year consulting agreement (the “QTR Consulting Agreement”) with Jones Texas, Inc. (“JTI”), whose controlling shareholder is Edward Jones, III, to provide consulting services in connection with the Company’s Fast-to-Market production platform program and other projects. Pursuant to the QTR Consulting Agreement, the Company issued an aggregate of 50,000 shares of common stock to JTI, of which 25,000 shares vested immediately, and 25,000 shares vested on January 31, 2018. On June 18, 2017, based upon meeting certain performance targets relating to the Company’s short-lead production platform business as provided in the January 31, 2017 QTR Consulting Agreement, the Company issued an additional 28,334 shares of common stock to JTI, of which 14,167 shares vested immediately, resulting in the recognition of compensation expense of $79,000 during the year ended December 31, 2017, and the remaining 14,167 shares shall vest on January 31, 2018. The Company also paid JTI a cash consulting fee of $0.075 million on January 30, 2017 and an additional cash consulting fee of $0.075 million on April 28, 2017 relating to other projects. For the year ended December 31, 2018 , there was no compensation paid or owed to JTI. Benjamin Malka Concurrent with the acquisition of the H Halston Brand on December 22, 2014, the Company and The H Company IP, LLC (“HIP”) entered into a license agreement (the “HIP License Agreement”), which was subsequently amended September 1, 2015. Benjamin Malka, a director of the Company, is a 25% equity holder of HIP’s parent company, House of Halston LLC (“HOH”), and Chief Executive Officer of HOH. The HIP license agreement provides for royalty payments including guaranteed minimum royalties to be paid to the Company during the initial term that expires on December 31, 2019 . On September 1, 2015, the Company entered into a license agreement with Lord and Taylor, LLC (the “L&T License”) and simultaneously amended the HIP License Agreement eliminating HIP’s minimum guaranteed royalty obligations, provided the L&T License is in effect. In addition, the Company entered into a sublicense agreement with HIP (the “HIP Sublicense Agreement”), obligating the Company to pay HIP a fee on an annual basis the greater of (i) 50% of royalties received under the L&T License from H Halston products or (ii) guaranteed minimum royalties. Provided that Lord & Taylor, LLC is paying the Company at least $1.0 million per quarter under the L&T License, the remaining contractually required guaranteed minimum royalties are equal to $0.75 million , $0.75 million , $1.5 million , and $1.75 million for the twelve months ending January 31, 2018, 2019, 2020, and 2021, respectively. On December 12, 2016, the Company entered into a license agreement for the H Halston Brand with Dillard’s Inc and affiliates (the “Dillard’s License”, and together with the L&T License, the “DRT Licenses”). HOH has also entered into an arrangement with another licensee of the Company to supply Halston-branded apparel for the subsequent sale of such product to end customers. Under the Company’s separate pre-existing licensing agreements in place with the aforementioned other licensee and with HIP as described above, the Company earns royalties on the sales of such Halston-branded products. Through October 26, 2018, the Company operated under the following terms as an at-will license: • The HIP Trademark Usage and Royalty Participation Agreement, had an initial term that expired on December 31, 2020 unless sooner terminated or renewed, and we shall pay to HIP: (i) 50% of the excess H Halston Royalty paid to us under the DRT Licenses and any other third party licenses that we may enter into; (ii) 25% of the excess developed brand royalty paid to us for the Highline Collective Brand under the DRT Licenses, and 20% of the excess developed brand royalty paid to us for any subsequent developed brand under the DRT Licenses, and (iii) 10% of the excess private label brand royalty paid to us under the DRT Licenses and during the first term only of the DRT Licenses. Additionally, we have the right, but not the obligation, at any time after January 31, 2023, to terminate the obligations under points (ii) and (iii) above by paying to HIP an amount equal to four times the sum of the developed brand credits and private label credits for the contract year ending on January 31, 2023 (the "Buy Out Payment''). The Buy-Out Payment was payable by us and at our sole discretion either (a) in cash, or (b) in a number of common shares of Xcel calculated based on the amount of the Buy-Out Payment divided by the average closing price for common shares of Xcel on a national exchange for the preceding five trading days, subject to a minimum price for common shares of Xcel of $7.00 per common share. • A license and supply agreement with the Halston Operating Company, LLC (“HOC”), a subsidiary of HOH, with an initial term ending on January 31, 2022 , subject to renewal. Under the HOC at-will license and supply agreement, HOC shall provide licensed products for sale to pre-approved retailers, including HBC and Dillard’s, and was also responsible for overseeing the visual merchandising and in-store retail environments for such approved retailers, as well as for training and oversight of any retail staff responsible for selling the licensed products within HBC and Dillard’s, as reasonably agreed upon between HOC and HBC and Dillard’s. The HOC at-will license and supply agreement provides for, among other things, design fees of $1.2 million for the period from July 1, 2017 through December 31, 2018 , subsequent design fees of $2.4 million for the contractual yearly periods ending on January 31, 2019, and on December 31, 2020, 2021, and 2022, respectively, and sales-based royalties on the categories of products licensed under the agreement and the contractual year of payment. Effective October 26, 2018, the Company terminated the HIP License Agreement including all amendments and the HIP Sublicense Agreement. In addition the at-will license has been terminated and is no longer in effect. In addition, the Company and HOC entered into an arrangement whereby HOC pays the Company a license fee for branded products related to categories not included in the HOC license and supply agreement. For the years ended December 31, 2018 and 2017, the Company had recorded approximately $2.0 million and $1.4 million of revenue from HOC, respectively. As of December 31, 2018, the Company had a receivable balance of approximately $1.5 million due from HOC, which was collected subsequent to year end 2018. In addition, the Company recorded $0 and $9,000 of HIP fees (as a reduction to net revenue) for the Current Year and the Prior Year, respectively. The Company had a prepaid balance of $0.2 million to HIP that was to be applied against future fees due, which HIP agreed to refund and is included accounts receivable, net as of December 31, 2018 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of the Halston Heritage Brands On February 11, 2019 (the “Closing Date”), the Company acquired the Halston Heritage Brands from The H Company IP, LLC (the “Seller”), a wholly-owned subsidiary of House of Halston LLC (“Parent”). Pursuant to the Agreement, at closing, the Company delivered to the Seller or its designees (collectively the “Sellers” an aggregate of $8.4 million in cash. In addition, Xcel agreed to issue to the Sellers 777,778 shares of the Company’s common stock (the “XCel Shares”), subject to a voting agreement and a lock-up agreement relating to the Xcel Shares and a consent and waiver agreement each in from satisfactory to Xcel within three months from the date of the Agreement. In the event such agreements are not executed and delivered to Xcel, the Xcel shares shall be forfeited. In addition to the closing considerations, the Sellers will be eligible to earn up to an aggregate of $6.0 million (the “Earn-Out Value”) through December 31, 2022 based on Excess Net Royalties. “Excess Net Royalties” during any calendar year for 2019 through 2022 (each, a “Royalty Target Year”) is equal to (a) the positive amount, if any, of the Net Royalties as calculated for such Royalty Target Year, less the greater of (i) One Million Five Hundred Thousand Dollars ( $1.5 million ), or (ii) the maximum Net Royalties for any previous Royalty Target Year. “Applicable Percentage” means (a) 50% of the first $10.0 million of Excess Net Royalties during the Earn-Out Period, (b) 20% of aggregate Excess Net Royalties during the Earn-Out Period greater than $10.0 million and up to $15.0 million and (c) 0% of aggregate Excess Net Royalties during the Earn-Out Period in excess of $15.0 million . The Earn-Out Consideration shall be payable in cash or of common stock of XCel Shares (the “Earn-Out Shares”) at the Sellers’ option); provided, however, that if the number of Earn-Out Shares, when combined with the number of XCel Shares issued at the closing, will exceed 4.99% of the aggregate number of shares of XCel common stock outstanding as of the Closing Date (calculated in accordance with Nasdaq Rule 5635(a)) (the “XCel Share Limit”), then Xcel may, in its sole and unfettered discretion, elect to (x) pay cash for the Earn-Out Value attributable to the Earn-Out Shares that would exceed the XCel Share Limit; (y) solicit stockholder approval for the issuance of Earn-Out Shares in excess of the XCel Share Limit in accordance with Nasdaq Rule 5635(a)(2) and, if such stockholder approval is obtained, issue such Earn-Out Shares to the Seller; or (z) solicit stockholder approval for the issuance of Shares in excess of the XCel Share Limit in accordance with Nasdaq Rule 5635(a)(2) and, if such stockholder approval is obtained, pay the applicable Earn-Out Consideration with a combination of cash and Earn-Out Shares. Second Amended and Restated Loan and Security Agreement. On February 11, 2019, the Company entered into an amended loan agreement with BHI (the “Second Amended and Restated Loan and Security Agreement”). The Second Amended and Restated Loan and Security Agreement, amended and restated the Amended Loan Agreement dated as of February 24, 2017. Immediately prior to the Closing Date, the aggregate principal amount of the term loan extended under the Existing Loan Agreement was $15.5 million . Pursuant to the Loan Agreement, the Lenders have extended to Xcel an additional term loan in the amount of $7.5 million , such that, as of the Closing Date, the aggregate outstanding balance of all the term loans extended by BHI to Xcel under the Loan Agreement was $22.0 million , which amount has been divided under the Loan Agreement into two term loans: (1) a term loan in the amount of $7.3 million (“Term Loan A”) and (2) a term loan in the amount of $14.8 million (“Term Loan B” and, together with Term Loan A, the “Term Loans”). The proceeds of the additional term loan extended on the Closing Date were used to finance the Halston Heritage Brands acquisition described above. Upon entering into Second Amended and Restated Loan and Security Agreement, Xcel paid an upfront fee in the amount of $0.09 million to BHI. The Second Amended and Restated Loan and Security Agreement also contemplates that BHI, or their affiliates (collectively, the “Lenders”) will provide to Xcel a revolving loan facility and a letter of credit facility, the terms of each of which shall be agreed to by Xcel and the Lenders. Amounts advanced under the revolving loan facility (the “Revolving Loans”) will be used for (1) the purpose of consummating acquisitions by Xcel or its subsidiaries that are or become parties to the Second Amended and Restated Loan and Security Agreement and (2) working capital purposes. Xcel will have the right to convert Revolving Loans to incremental term loans (the “Incremental Term Loans”) in minimum amounts of $5.0 million . The Company has not drawn down any funds under either the revolving loan facility or letter of credit facility. The Term Loans mature on December 31, 2023 ; Incremental Term Loans shall mature on the date set forth in the applicable term note; and Revolving Loans and the letter of credit facility shall mature on such date as agreed upon by Xcel and the Lenders. Any letter of credit issued under Second Amended and Restated Loan and Security Agreement shall terminate no later than one year following the date of issuance thereof. Principal on the Term Loan A shall be payable in quarterly installments on each of March 31, June 30, September 30 and December 31 as follows : ($ in thousands) Period Amount June 30, 2019– September 30, 2020 $ 1,000 December 31, 2020 $ 1,250 Principal on the Term Loan B shall be payable in quarterly installments on each of March 31, June 30, September 30 and December 31 as follows: ($ in thousands) Period Amount March 31, 2020– September 30, 2020 $ 250 March 31, 2021 -December 31, 2022 $ 1,125 March 31, 2023 – December 31, 2023 $ 1,250 Xcel shall have the right to prepay the Term Loans, Incremental Term Loans, Revolving Loans and obligations with respect to letters of credit and accrued and unpaid interest therein and to terminate the Lenders’ obligations to make Revolving Loans and issue letters of credit; provided that any prepayment of less than all of the outstanding balances of Term Loans and Incremental Term Loans shall be applied to the remaining amounts due in inverse order of maturity. If any Term Loan or any Incremental Term Loan is prepaid on or prior to the third anniversary of the Closing Date (including as a result of an event of default), Xcel shall pay an early termination fee as follows: an amount equal to the principal amount outstanding under such Term Loan or Incremental Term Loan, as applicable, on the date of prepayment, multiplied by: (i) two percent ( 2.00% ) if any of Term Loan B or any Incremental Term Loan is prepaid on or before the second anniversary of the later of the Closing Date or the date such Incremental Term Loan was made, as applicable; (ii) one percent ( 1.00% ) if any of Term Loan A is prepaid on or before the second anniversary of the Closing Date; (iii) one percent ( 1.00% ) if any of Term Loan B or any Incremental Term Loan is prepaid after the second anniversary of the later of the Closing Date or such Incremental Term Loan was made, as applicable, but on or before the third anniversary of such date; (iv) one half of one percent ( 0.50% ) if any of Term Loan A is prepaid after the second anniversary of the Closing Date, but on or before the third anniversary of such date; or (v) zero percent ( 0.00% ), if any Term Loan or any Incremental Term Loan is prepaid after the third anniversary of the later of the Closing Date or the date such Incremental Term Loan was made, as applicable. Commencing with the fiscal year ending December 31, 2017, Xcel is required to repay a portion of the Term Loan in amount equal to 10% of the excess cash flow for the fiscal year; provided that no early termination fee shall be payable with respect to any such payment. Excess cash flow means, for any period, cash flow from operations (before certain permitted distributions) less (i) capital expenditures not made through the incurrence of indebtedness, (ii) all cash principal paid or payable during such period and (iii) all dividends declared and paid (or which could have been declared and paid) during such period to equity holders of any credit party treated as a disregarded entity for tax purposes. Xcel’s obligations under the Loan Agreement are guaranteed by and secured by all of the assets of Xcel and its wholly-owned subsidiaries, as well as any subsidiary formed or acquired that becomes a credit party to the Loan Agreement (the “Guarantors”) and, subject to certain limitations contained in Second Amended and Restated Loan and Security Agreement, equity interests of the Guarantors. Xcel also granted the Lenders a right of first offer to finance any acquisition for which the consideration therefore will be paid other than by cash of Xcel or by the issuance of equity interest of Xcel. Interest on the Term Loan A accrues at a fixed rate of 5.1% per annum and is payable on each day on which the scheduled principal payments on the Term Loan A are required to be made. Interest on the Term Loan B accrues at a fixed rate of 6.25% per annum and is payable on each day on which the scheduled principal payments on the Term Loan B are required to be made. Interest on the Revolving Loans will accrue at either the Base Rate or LIBOR, as elected by Xcel, plus a margin to be agreed to by Xcel and the Lenders and will be payable on the first day of each month. Base Rate is defined in the Second Amended and Restated Loan and Security Agreement as the greater of (a) BHI’s stated prime rate or (b) 2.00% per annum plus the overnight federal funds rate published by the Federal Reserve Bank of New York. Interest on the Incremental Term Loans will accrue at rates to be agreed to by Xcel and the Lenders and will be payable on each day on which the scheduled principal payments under the applicable note are required to be made. The Second Amended and Restated Loan and Security Agreement contains customary covenants, including reporting requirements, trademark preservation and the following financial covenants of Xcel (on a consolidated basis with Xcel’s and the Guarantors under the Second Amended and Restated Loan and Security Agreement): • net worth of at least $90.0 million at the end of each fiscal quarter; • liquid assets of at least $5.0 million at all times; • the fixed charge coverage ratio for the twelve-fiscal month period ending at the end of each fiscal quarter shall not be less than the ratio set forth below for such fiscal period: Fiscal Quarter End Fixed Charge Coverage Ratio December 31, 2019, March 31, 2020, June 30, 2020, September 30, 2020 1.05 to 1.00 December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and thereafter 1.10 to 1.00 • capital expenditures shall not exceed $1.7 million for fiscal year December 31, 2018 • capital expenditures shall not exceed $0.7 million for any fiscal year beginning after December 31, 2018 ; and • the leverage ratio for the twelve-fiscal month period ending at the end of each fiscal period set forth below shall not exceed the ratio below: Fiscal Period Maximum Leverage Ratio December 31, 2018 2.90 to 1.00 December 31, 2019, March 31, 2020, June 30, 2020, and September 30, 2020 2.40 to 1.00 December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021 1.70 to 1.00 December 31, 2021 and each Fiscal Quarter end thereafter 1.50 to 1.00 The Company was in full compliance with all covenants under the Amended and Second Amended and Restated Loan and Security Agreement, as of and for the fiscal year ended December 31, 2018 . Employment Agreements with Executives On February 28, 2019, the Company entered into a three -year employment agreement with Robert D’Loren for him to continue to serve as Chief Executive Officer of the Company, referred to as the D’Loren Employment Agreement. Following the initial three -year term, the agreement will be automatically renewed for one year terms unless either party gives written notice of intent to terminate at least 90 days prior to the termination of the then current term. Pursuant to the D’Loren Employment Agreement, Mr. D’Loren’s annual base salary is $0.9 million . The Company’s board of directors or the compensation committee may approve increases (but not decreases) from time to time. Following the initial three -year term, Mr. D’Loren’s base salary will be reviewed at least annually. Mr. D’Loren receives an allowance for an automobile appropriate for his level of position and the Company pays (in addition to monthly lease or other payments) all of the related expenses for gasoline, insurance, maintenance, repairs or any other costs with Mr. D’Loren’s automobile. Bonus Mr. D’Loren will be eligible to receive an annual cash bonus in an amount equal to (i) 2.5% of all income generated from the sales of the Company’s products and by the trademarks and other intellectual property owned, operated or managed by us (“IP Income”), in excess of $8.0 million earned and received by us in such fiscal year: provided that any IP income generated through net sales shall be multiplied by (x) 7% in the case of net sales from wholesale sales, and private label sales and (y) 3% in the case of net sales from e-commerce sales through the Company’s web sites and (ii) 5% of the Company’s adjusted EBITDA (as defined in the D’Loren Employment Agreement) for such fiscal year. Mr. D’Loren shall have the right to elect to receive the cash bonus through the issuance of shares of the Company’s common stock. Pursuant to the D’Loren Agreement, Mr. D’Loren was granted an option to purchase up to 2,578,947 shares of the Company’s common stock at an exercise price of $1.70 per share. The option is exercisable until February 28, 2029 and shall vest, subject to Mr. D’Loren remaining employed by the Company and based upon the Company’s common stock achieving the following target prices: Target Prices Number of Option Shares Vesting $3.00 736,842 $5.00 626,316 $7.00 515,789 $9.00 405,263 $11.00 294,737 Severance If Mr. D’Loren’s employment is terminated by the Company without cause, or if Mr. D’Loren resigns with good reason, or if the Company fails to renew the term, then Mr. D’Loren will be entitled to receive his unpaid base salary and cash bonuses through the termination date and a lump sum payment equal to the base salary in effect on the termination date for the longer of two years from the termination date or the remainder of the then-current term. Additionally, Mr. D’Loren would be entitled to two hundred times the average annual cash bonuses paid in the preceding 12 months . Mr. D’Loren would also be entitled to continue to participate in the Company’s group medical plan or receive reimbursement for premiums paid for other medical insurance in an amount not to exceed the cost to participate in the Company’s plan, subject to certain conditions, for a period of 36 months from the termination date. Change of Control In the event Mr. D’Loren’s employment is terminated within 12 months following a change of control by the Company without cause or by Mr. D’Loren with good reason, he would be entitled to a lump sum payment equal to two times (i) his base salary in effect on the termination date for the longer of two years from the termination date or the remainder of the then-current term and (ii) two times the average annual cash bonuses paid in the preceding 12 months , minus $100 . “Change of control,” as defined in Mr. D’Loren’s employment agreement, means a merger or consolidation to which we are a party, a sale, lease or other transfer, exclusive license or other disposition of all or substantially all of our assets, a sale or transfer by our stockholders of voting control, in a single transaction or a series of transactions or, if during any twelve consecutive month period, the individuals who at the beginning of such period, constitute the board of directors of the Company (the “Incumbent Directors”) cease (other than due to death) to constitute a majority of the members of the board at the end of such period; provided that directors elected by or on the recommendation of a majority of the directors who so qualify as Incumbent Directors shall be deemed to be Incumbent Directors. Upon a change of control, notwithstanding the vesting and exercisability schedule in any stock option or other grant agreement between Mr. D’Loren and the Company, all unvested stock options, shares of restricted stock and other equity awards granted by the Company to Mr. D’Loren pursuant to any such agreement shall immediately vest, and all such stock options shall become exercisable and remain exercisable for the lesser of 180 days after the date the change of control occurs or the remaining term of the applicable option. Non-Competition and Non-Solicitation During the term of his employment by the Company and for a one -year period after the termination of such employment (unless Mr. D’Loren’s employment was terminated without cause or was terminated by him for good reason, in which case only for his term of employment and a six-month period after the termination of such employment), Mr. D’Loren may not permit his name to be used by or participate in any business or enterprise (other than the mere passive ownership of not more than 5% of the outstanding stock of any class of a publicly held corporation whose stock is traded on a national securities exchange or in the over-the-counter market) that engages or proposes to engage in our business in the United States, its territories and possessions and any foreign country in which we do business as of the date of termination of his employment. Also, during his employment and for a one -year period after the termination of such employment, Mr. D’Loren may not, directly or indirectly, solicit, induce or attempt to induce any customer, supplier, licensee, or other business relation of the Company or any of its subsidiaries to cease doing business with the Company or any of its subsidiaries; or solicit, induce or attempt to induce any person who is, or was during the then-most recent 12 -month period, a corporate officer, general manager or other employee of the Company or any of its subsidiaries, to terminate such employee’s employment with the Company or any of its subsidiaries; or hire any such person unless such person’s employment was terminated by the Company or any of its subsidiaries; or in any way interfere with the relationship between any such customer, supplier, licensee, employee or business relation and the Company or any of its subsidiaries. James Haran On February 28, 2019, the Company entered into a two -year employment agreement with James Haran for him to continue to serve as the Company’s Chief Financial Officer, referred to as the Haran Employment Agreement. Following the initial two -year term, the agreement automatically renewed for a one -year term and will be automatically renewed for one year terms thereafter unless either party gives written notice of intent to terminate at least 30 days prior to the expiration of the then current term. Pursuant to the Haran Employment Agreement, Mr. Haran’s annual base salary is $0.4 million per annum. The board of directors or the compensation committee may approve increases (but not decreases) from time to time. Following the initial two year term, the base salary shall be reviewed at least annually. In addition, Mr. Haran receives a car allowance of $1,500 per month. Bonus Mr. Haran will be eligible to receive a performance cash bonus in an amount equal to (i) 0.23% of all IP Income in excess of $12.0 million earned and received by us in such fiscal year; provided that any IP income generated through net sales shall be multiplied by (x) 7% in the case of net sales from wholesale sales, and private label sales and (y) 3% in the case of net sales from e-commerce sales through the Company’s web sites plus (ii) 0.375% of the Company’s adjusted EBITDA (as defined in the Haran Employment Agreement) for such fiscal year. Notwithstanding the foregoing, for (i) 2019 , $0.04 million of Mr. Haran’s bonus is guaranteed, of which $0.01 million was paid to Mr. Haran upon execution of the Haran Employment Agreement and $0.03 million is payable on or before June 30, 2019, and (ii) for 2020 , $0.03 million of Mr. Haran’s bonus is guaranteed and payable on or before June 30, 2020, in each case, as long as Mr. Haran remains employed by the Company. Pursuant to the Haran Employment Agreement, Mr. Haran was granted an option to purchase up to 552,632 shares of the Company’s common stock at an exercise price of $1.70 per share. The option is exercisable until February 28, 2029 and shall vest, subject to Mr. Haran remaining employed with the Company and based upon the Company’s common stock achieving target prices as follows: Target Prices Number of Option Shares Vesting $3.00 157,895 $5.00 134,211 $7.00 110,526 $9.00 86,842 $11.00 63,158 Severance If Mr. Haran’s employment is terminated by the Company without cause, or if Mr. Haran resigns with good reason, or if the Company fails to renew the term, then Mr. Haran will be entitled to receive his unpaid base salary and cash bonuses through the termination date and a lump sum payment equal to his base salary in effect on the termination date for 12 months . Mr. Haran would also be entitled to continue to participate in our group medical plan, subject to certain conditions, for a period of 12 months from the termination date. Change of Control In the event Mr. Haran’s employment is terminated within 12 months following a change of control by the Company without cause or by Mr. Haran with good reason, Mr. Haran would be entitled to a lump sum payment equal to his base salary in effect on the termination date for 12 months following such termination. “Change of control,” as defined in Mr. Haran’s employment agreement, means a merger or consolidation to which we are a party, a sale, lease or other transfer, exclusive license or other disposition of all or substantially all of our assets, or a sale or transfer by our stockholders of voting control, in a single transaction or a series of transactions. Upon a change of control, notwithstanding the vesting and exercisability schedule in any stock option or other grant agreement between Mr. Haran and us, all unvested stock options, shares of restricted stock and other equity awards granted by us to Mr. Haran pursuant to any such agreement shall immediately vest, and all such stock options shall become exercisable and remain exercisable for the lesser of 180 days after the date the change of control occurs or the remaining term of the applicable option. Non-Competition and Non-Solicitation During the term of his employment by the Company and for a one -year period after the termination of such employment, Mr. Haran may not permit his name to be used by or participate in any business or enterprise (other than the mere passive ownership of not more than 5% of the outstanding stock of any class of a publicly held corporation whose stock is traded on a national securities exchange or in the over-the-counter market) that engages or proposes to engage in our business in the United States, its territories and possessions and any foreign country in which we do business as of the date of termination of such employment. Also, during his employment and for a one -year period after the termination of his employment, Mr. Haran may not, directly or indirectly, solicit, induce or attempt to induce any customer, supplier, licensee, or other business relation of the Company or any of its subsidiaries to cease doing business with the Company or any of its subsidiaries; or solicit, induce or attempt to induce any person who is, or was during the then-most recent 12 -month period, a corporate officer, general manager or other employee of the Company or any of its subsidiaries, to terminate such employee’s employment with the Company or any of its subsidiaries; or hire any such person unless such person’s employment was terminated by the Company or any of its subsidiaries; or in any way interfere with the relationship between any such customer, supplier, licensee, employee or business relation and the Company or any of its subsidiaries. Giuseppe Falco On February 27, 2019, the Company entered into a two -year employment agreement with Giuseppe Falco for him to serve as President and Chief Merchant of the Company’s Interactive Technology business and the Company’s Creative Director, referred to as the Falco Employment Agreement. Following the initial two -year term, the agreement will be automatically renewed for an additional one -year term, unless either party gives written notice of intent to terminate at least 30 days prior to the expiration of the then current term. Under the Falco Employment Agreement, Mr. Falco’s base salary is $0.6 million per annum. Bonus Cash Bonus and Stock Bonus . Mr. Falco will be eligible to receive a performance cash bonus in an amount up to $0.4 million per annum and a performance stock bonus with a value of up to $0.1 million per annum based upon the Company receiving Gross DRT Sales as follows: ($ in thousands) 2019 Gross DRT Sales Level Cash Bonus $ Value of Stock Bonus $242,500- $250,000 $90 $24 $250,000 - $257,500 $180 $45 $257,500 - $265,000 $270 $68 $265,000 or more $360 $90 The Gross DRT Sale Level targets for 2020 shall be established by the Compensation Committee of the Company’s Board of Directors. “ Gross DRT Sales ” means gross sales generated by the Company’s trademarks through any program transmitted by television, on QVC, HSN (including their e-commerce businesses known as Buy Any Time), or similar interactive television networks globally. Severance If Mr. Falco’s employment is terminated by us without cause, or if Mr. Falco resigns with good reason, or if we fail to renew the term, then Mr. Falco will be entitled to receive his unpaid base salary and cash bonuses through the termination date and a lump sum payment of an amount equal to his base salary in effect for a period of six months , payable on the six month anniversary of the date of separation of services and the option shall remain exercisable as to those shares as to which the option previously vested and shall become exercisable as to any unvested shares immediately following such transaction. Mr. Falco would also be entitled to continue to participate in our group medical plan, subject to certain conditions, for a period of six months from the termination date. Change of Control In the event Mr. Falco’s employment is terminated within 12 months following a change of control by the Company without cause or by Mr. Falco with good reason, Mr. Falco would be entitled to a lump sum payment equal to his base salary in effect on the termination date for six months following such termination. “Change of control,” as defined in Mr. Falco’s employment agreement, means a merger or consolidation to which we are a party, a sale, lease or other transfer, exclusive license or other disposition of all or substantially all of our assets, or a sale or transfer by our stockholders of voting control, in a single transaction or a series of transactions. Upon a change of control, notwithstanding the vesting and exercisability schedule in any stock option or other grant agreement between Mr. Falco and us, all unvested stock options, shares of restricted stock and other equity awards granted by us to Mr. Falco pursuant to any such agreement shall immediately vest, and all such stock options shall become exercisable and remain exercisable for the lesser of 180 days after the date the change of control occurs or the remaining term of the applicable option. Non-Competition and Non-Solicitation During the term of his employment by the Company and for a one -year period after the termination of such employment, Mr. Falco may not permit his name to be used by or participate in any business or enterprise (other than the mere passive ownership of not more than 5% of the outstanding stock of any class of a publicly held corporation whose stock is traded on a national securities exchange or in the over-the-counter market) that engages or proposes to engage in the Company’s business in the United States, its territories and possessions and any foreign country in which we do business as of the date of termination of his employment. Also, during his employment and for a one -year period after the termination of such employment, Mr. Falco may not, directly or indirectly, solicit, induce or attempt to induce any customer, supplier, licensee, or other business relation of the Company or any of its subsidiaries to cease doing business with the Company or any of its subsidiaries; or solicit, induce or attempt to induce any person who is, or was during the then-most recent 12 -month period, a corporate officer, general manager or other employee of the Company or any of its subsidiaries, to terminate such employee’s employment with the Company or any of its subsidiaries; or hire any such person unless such person’s employment was terminated by the Company or any of its subsidiaries; or in any way interfere with the relationship between any such customer, supplier, licensee, employee or business relation and the Company or any of its subsidiaries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Xcel and its wholly owned subsidiaries as of and for the years ended December 31, 2018 (the "Current Year") and 2017 (the "Prior Year"). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and in accordance with the accounting rules under Regulation S-X, as promulgated by the Securities and Exchange Commission (“SEC”). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation, or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates. The Company deems the following items to require significant estimates from management: • Allowance for doubtful accounts; • Useful lives of trademarks; • Assumptions used in the valuation of intangible assets and goodwill including cash flow estimates for impairment analysis; • Black-Scholes option pricing model assumptions for stock option values; • Performance-based stock option expense recognition; • Inventory reserves; and • Valuation allowances and effective tax rate for tax purposes. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. |
Accounts Receivables | Accounts Receivable Accounts receivable are reported net of the allowance for doubtful accounts. Allowance for doubtful accounts is based on the Company’s ongoing discussions with its licensees, wholesale and digital customers and its evaluation of each customer's payment history, account aging, and financial position. As of December 31, 2018 and 2017 , the Company had $11.0 million and $8.5 million of accounts receivable, net of allowances for doubtful accounts of approximately $0.2 million and $0.03 million , respectively. The accounts receivable balance includes approximately $0.00 million and $0.38 million of earned revenue that has been accrued but not billed as of December 31, 2018 and 2017 , respectively. |
Inventory | Inventory Inventory is recorded at the lower of cost or net realizable value, with cost determined on a weighted average basis. The Company holds finished goods inventory for its e-commerce jewelry operations. Apparel and jewelry finished goods inventory is purchased to satisfy orders received from its wholesale operations. The Company periodically reviews the composition of its inventories in order to identify obsolete, slow-moving or otherwise non-saleable items. If non-saleable items are observed and there are no alternate uses for the inventories, the Company will record a write-down to net realizable value in the period that the decline in value is first recognized. Reserves for inventory shrinkage, representing the risk of physical loss of inventory, are estimated based on historical experience and are adjusted based upon physical inventory counts. |
Property and Equipment | Property and Equipment Furniture, equipment, and software are stated at cost less accumulated depreciation and amortization, and are depreciated using the straight-line method over their estimated useful lives, generally three ( 3 ) to seven ( 7 ) years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the terms of the leases. Betterments and improvements are capitalized, while repairs and maintenance are expensed as incurred. |
Trademarks, Goodwill and Other Intangible Assets | Trademarks, Goodwill and Other Intangible Assets The Company follows Financial Accounting Standards Board, or FASB, Accounting Standard Codification, or ASC Topic 350, “Intangibles - Goodwill and Other.” Under this standard, goodwill and indefinite lived intangible assets are not amortized, but are required to be assessed for impairment at least annually (we utilize December 31 as our testing date) and when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill The Company annually has the option to first assess qualitatively whether it is more likely than not that there is an impairment. Should the results of this assessment result in either an ambiguous or unfavorable conclusion, the Company will perform additional quantitative testing. The first quantitative testing step compares estimated fair value with carrying value. If the estimated fair value exceeds the carrying value, then goodwill is considered not impaired. If the carrying value exceeds the estimated fair value, then a second step is performed to determine the implied fair value of goodwill. If the carrying value of goodwill exceeds its implied fair value, then an impairment charge equal to the difference is recorded. This requires the Company’s management to make certain assumptions and estimates regarding certain industry trends and future revenues of the Company. The Company performed its annual quantitative analysis of goodwill at December 31, 2017. As a result of the December 31, 2017 impairment testing, the Company recorded a non-cash impairment charge in the fourth quarter of 2017 for the total amount of goodwill previously recorded on its balance sheet of approximately $12.4 million . The underlying cause of the impairment was the declining public trading price of the Company’s common stock and the ensuing decrease in the Company’s market capitalization, as of December 31, 2017, as compared to the calculated fair value of the Company (see below for further discussion of the determination of fair value). The Company’s trading price for its common stock had been declining in 2017 due to our thinly traded stock, failure of the market to distinguish us from our competitors with poor balance sheets, and general outlook on the consumer retail environment. Due to the prolonged decline in the Company’s stock price, it was determined during the fourth quarter that such a decline was no longer temporary. With reference to the goodwill quantitative testing at December 31, 2017, the Company determined fair value using a weighted approach, including both an income approach and a market approach. The income approach included a discounted cash flow model relying on significant assumptions consisting of revenue growth rates and operating margins based on internal forecasts, terminal value, and the weighted average cost of capital ("WACC") used to discount future cash flows (in our 2017 analysis, we used a discount rate of 13% ). Internal forecasts of revenue growth, operating margins, and working capital needs over the next five years were developed with consideration of macroeconomic factors, historical performance, and planned activities. In 2017, the Company made a terminal value assumption that cash flows would grow 4.0% each year subsequent to year five, based on management expectations for the long-term growth prospects of the Company. The residual value was determined under both an EBITDA exit multiple and a Gordon Growth model. To determine the WACC, the Company used a standard valuation method, the Capital Asset Pricing Model (“CAPM”), based on readily available and current market data of peer companies considered market participants. An additional risk premium of 2% was added to the WACC. As some of the other comparable companies have significant levels of debt, Xcel’s public data was selected for the capital structure and beta. For the market approach, the Company considered both the Guideline Companies method and the Comparable Transactions method. The inputs and assumptions utilized in the goodwill impairment analysis are classified as Level 3 inputs in the fair value hierarchy. Indefinite Lived Intangible Assets The Company tests its indefinite-lived intangible assets for recovery in accordance with ASC-820-10-55-3F, which states that the income approach (“Income Approach”) converts future amounts (for example cash flows) to a single current (that is, discounted) amount. When the Income Approach is used, fair value measurement reflects current market expectations about those future amounts. The Income Approach is based on the present value of future earnings expected to be generated by a business or asset. Income projections for a future period are discounted at a rate commensurate with the degree of risk associated with future proceeds. A residual or terminal value is also added to the present value of the income to quantify the value of the business beyond the projection period. As such, recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to its expected future discounted net cash flows. If the carrying amount of such assets is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the recoverable amount of the assets. There were no impairments charges in the Current Year or Prior Year. Finite Lived Intangible Assets The Company’s finite lived intangible assets, including Trademarks, are reviewed for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An impairment loss is recognized if the carrying amount of a finite lived intangible asset is not recoverable and its carrying amount exceeds its fair value. No impairment charges were recorded for the years ended December 31, 2018 and 2017 . With reference to our finite-lived intangible assets impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on undiscounted cash flows analysis or appraisals. The inputs utilized in the finite-lived intangible assets impairment analysis are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820. The Company’s finite lived intangible assets are amortized over their estimated useful lives of four ( 4 ) to fifteen ( 15 ) years. |
Restricted Cash | Restricted Cash Restricted cash at both December 31, 2018 and 2017 was (i) $1.5 million and consists of cash deposited with Bank Hapoalim B.M. (“BHI”) as (i) $1.0 million collateral for an irrevocable standby letter of credit associated with the lease of the Company’s current corporate office and operating facilities at 1333 Broadway, New York City, and (ii) $0.4 million of cash held as a security deposit for the sublease of the Company’s former corporate offices by the Company to a third-party subtenant. |
Investment in Unconsolidated Affiliate | Investment in Unconsolidated Affiliate The Company holds a limited partner ownership interest in an unconsolidated affiliate, which was entered into in 2016. This investment is accounted for in accordance with ASU No. 2016-01, "Financial Instruments" Overall (Subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities," and is included within other assets on the Company’s consolidated balance sheets at December 31, 2018 and 2017 . As of December 31, 2018 and 2017 , the carrying value of this investment was $0.1 million . This investment does not have a readily determinable fair value and in accordance with ASC 820-10-35-59, the investment is valued at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer. |
Note Receivable | Note Receivable The Company holds a promissory note receivable from a certain key employee in the principal amount of $0.9 million . This note receivable was entered into during 2016 is due and payable on April 1, 2019 , and is fully collateralized by various assets of the employee in which the Company has been granted a security interest. The note receivable has been recorded at amortized cost, and is included within other assets on the Company’s consolidated balance sheets at December 31, 2018 and 2017 . The note bears interest at 5.1% , which was prepaid through a non-refundable original issue discount; interest income is being recognized over the term of the note using the interest method. The net carrying value of the promissory note receivable at December 31, 2018 and 2017 was $0.9 million and $0.9 million , respectively. |
Deferred Finance Costs | Deferred Finance Costs The Company incurred costs (primarily professional fees and lender underwriting fees) in connection with borrowings under the senior secured term loans. These costs have been deferred on the consolidated balance sheets as a reduction to the carrying value of the associated borrowings. Such costs are amortized as interest expense using the effective interest method. |
Contingent Obligations | Contingent Obligations Management analyzes and quantifies the expected contingent obligations (expected earn-out payments) over the applicable pay-out period. Management assesses no less frequently than each reporting period the status of contingent obligations and any expected changes in the fair value of such contingent obligations. Any change in the expected obligation will result in expense or income recognized in the period in which it is determined that the fair value has changed. Additionally, when accounting for asset acquisitions, if any contingent obligations exist, such obligations are recognized and recorded as the positive difference between the fair value of the assets acquired and the consideration paid for the acquired assets. See Note 5 Debt and Other Long-term Liabilities for additional information related to contingent obligations. |
Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” under the modified retrospective adoption method effective January 1, 2018, by applying the new guidance only to contracts that were not completed at the date of initial application. The Company’s evaluation of the impact of the adoption of the new revenue standard on its consolidated financial statements included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. The Company performed an extensive analysis of its existing contracts with customers and its revenue recognition policies and determined that the adoption did not result in material differences from the Company’s prior revenue recognition policies. In addition, the adoption of ASC 606 did not result in material differences in the amount of revenue recognized in the current year-to-date period when compared to the amount of revenue that would have been recognized in the current year-to-date period under the old guidance. Licensing The Company recognizes revenue continuously over time as it satisfies its continuous obligation of granting access to its licensed intellectual properties, which are deemed symbolic intellectual properties under the new revenue guidance. Payments are typically due after sales have occurred and have been reported by the licensees or, where applicable, in accordance with minimum guaranteed payments provisions. The timing of performance obligations is typically consistent with the timing of payments, though there may be differences if contracts provide for advances or significant escalations of contractually guaranteed minimum payments. There were no such differences that would have a material impact on our Consolidated Balance Sheet at December 31, 2018 . In accordance with ASC 606-10-55-65, the Company recognizes revenue at the later of when (1) the subsequent sale or usage occurs or (2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied (in whole or in part). More specifically, the Company separately identifies: (i) Contracts for which, based on experience, royalties are expected to exceed any applicable minimum guaranteed payments, and to which an output-based measure of progress based on the “right to invoice” practical expedient is applied because the royalties due for each period correlate directly with the value to the customer of the Company’s performance in each period (this approach is identified as “View A” by the FASB Revenue Recognition Transition Resource Group, “TRG”); and (ii) Contracts for which revenue is recognized based on minimum guaranteed payments using an appropriate measure of progress, in which minimum guaranteed payments are straight-lined over the term of the contract and recognized ratably based on the passage of time, and to which the royalty recognition constraint to the sales-based royalties in excess of minimum guaranteed is applied and such sales-based royalties are recognized to distinct period only when the minimum guaranteed is exceeded on a cumulative basis (this approach is identified as “View C” by the TRG). The Company does not typically perform by transferring goods or services to customers before the customer pays consideration or before payment is due, thus the implementation of ASC 606 did not result in material contract assets in accordance with ASC 606-10-45-3. The Company’s unconditional right to receive consideration based on the terms and conditions of licensing contracts is presented as accounts receivable on the accompanying consolidated balance. The Company typically does not receive consideration in advance of performance and, consequently, amounts of contract liabilities as defined by ASC 606-10-45-2 were not material as of December 31, 2018 . The Company does not disclose the amount attributable to unsatisfied or partially satisfied performance obligations for variable revenue contracts (identified under “View A” above) in accordance with the optional exemption allowed under ASC 606. The Company did not have any revenue recognized in the reporting period from performance obligations satisfied, or partially satisfied, in previous periods. Remaining minimum guaranteed payments for active contracts as of December 31, 2018 are expected to be recognized ratably in accordance with View C over the remaining term of each contract based on the passage of time and through December 2023. Design Fees The Company earns design fees for serving as a buying agent for apparel under private labels for large retailers. As a buying agent, the Company utilizes its expertise and relationships with manufacturers to facilitate the production of private label apparel to customer specifications. The Company’s design fee revenue also includes fees charged for its design and product development services provided to certain suppliers. The Company satisfies its performance obligation to its customers by performing the services in buyer agency agreements and thereby earning its design fee at the point in time when the customer’s freight forwarder takes control of the goods. The Company satisfies its performance obligation with the suppliers and earns its design fee from the factory at the point in time when the customer’s freight forwarder takes control of the goods. Wholesale Sales The Company generates revenue through the design, sourcing and sale of branded jewelry and apparel to both domestic and international customers who, in turn, sell the products to the consumer. The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which occurs upon the transfer of control of the merchandise in accordance with the contractual terms and conditions of the sale. Direct to Consumer Sales The Company's revenue associated with its e-commerce jewelry is recognized at a point in time when product is shipped to the customer. |
Advertising Costs | Advertising Costs All costs associated with production for the Company’s advertising, marketing and promotion are expensed during the periods when the activities take place. All other advertising costs, such as print and online media, are expensed when the advertisement occurs. The Company incurred $0.3 million in advertising and marketing costs for the year ended December 31, 2018 and $0.01 million for the year ended December 31, 2017 . |
Operating Leases | Operating Leases Total rental payments under operating leases that include scheduled payment increases and rent holidays are amortized on a straight-line basis over the term of the lease. Landlord allowances are amortized by the straight-line method from the possession date through the end of the term of the lease as a reduction of rent expense. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation - Stock Compensation,” by recognizing the fair value of stock-based compensation as an operating expense over the service period of the award or term of the corresponding contract, as applicable. The fair value of stock options and warrants is estimated on the date of grant using the Black-Scholes option pricing model. The valuation determined by the Black-Scholes option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, expected stock price volatility over the terms of the awards, and actual and projected employee stock option exercise behaviors. The risk-free rate is based on the U.S. Treasury rate for the expected life at the time of grant, volatility is based on the average long-term implied volatilities of peer companies, and expected life is based on the estimated average of the life of options and warrants using the simplified method. The Company utilizes the simplified method to determine the expected life of the options and warrants due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. Restricted stock awards are valued using the fair value of the Company’s stock at the date of grant. The Company accounts for non-employee awards in accordance with ASC Topic 505-50, “Equity-Based Payments to Non-Employees”. The Company accounts for forfeitures as a reduction of compensation cost in the period when such forfeitures occur. For stock option awards for which vesting is contingent upon the achievement of certain performance targets, the timing and amount of compensation expense recognized is based upon the Company’s projections and estimates of the relevant performance metric(s) until the time the performance obligation is satisfied. |
Income Taxes | Income Taxes Current income taxes are based on the respective period’s taxable income for federal and state income tax reporting purposes. Deferred tax liabilities and assets are determined based on the difference between the financial statement and income tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is required if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies the FASB guidance on accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also addresses derecognition, classification, interest, and penalties related to uncertain tax positions. The Company has no unrecognized tax benefits as of December 31, 2018 and 2017 . Interest and penalties related to uncertain tax positions, if any, are recorded in income tax expense. The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The income tax effects of changes in tax laws are recognized in the period when enacted. The Act provides for numerous significant tax law changes and modifications with varying effective dates, which include reducing the U.S. federal corporate income tax rate from a maximum of 35% to 21% , creating a territorial tax system (with a one-time mandatory repatriation tax on previously deferred foreign earnings), broadening the tax base, and allowing for immediate capital expensing of certain qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. In response to the enactment of the Tax Act in late 2017, the U.S. Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations where the accounting is incomplete for certain income tax effects of the Tax Act upon issuance of an entity’s financial statements for the reporting period in which the Act was enacted. Under SAB 118, a company may record provisional amounts during a measurement period for specific income tax effects of the Tax Act for which the accounting is incomplete but a reasonable estimate can be determined, and when unable to determine a reasonable estimate for any income tax effects, report provisional amounts in the first reporting period in which a reasonable estimate can be determined. The Company has recorded the impact of the tax effects of the Tax Act as of December 31, 2017 , and as of December 31, 2018 the Company finalized its accounting for the income tax effects of the Act and had no change to its original estimates. |
Fair Value | Fair Value ASC 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), defines fair value and establishes a framework for measuring fair value under U.S. GAAP. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of the Company’s assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). Fair Value of Financial Instruments For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to the short-term maturities of these instruments. The carrying value of the promissory note receivable approximates fair value because the fixed interest rate approximates current market rates and in the instances it does not, the impact is not material. The carrying value of the Xcel Term Loan (as defined in Note 5) approximates fair value because the fixed interest rate approximates current market rates and in the instances it does not, the impact is not material. When debt interest rates are below market rates, the Company considers the discounted value of the difference of actual interest rates and its internal borrowing against the scheduled debt payments. The fair value of the Company’s cost method investment does not have a readily determinable fair value and in accordance with ASC 820-10-35-59, the investment is valued at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer. Fair Value of Contingent Obligations The Company recognized a contingent obligation in connection with the acquisition of Judith Ripka Trademarks during the year ended December 31, 2014. ASC 805-50-30 requires that, when accounting for asset acquisitions, when the fair value of the assets acquired is greater than the consideration paid, any contingent obligations shall be recognized and recorded as the positive difference between the fair value of the assets acquired and the consideration paid for the acquired assets. The Company also recognized a contingent obligation in connection with the acquisition of the C Wonder Trademarks in 2015. ASC 805-50-30 requires that, when the fair value of the assets acquired are equal to the consideration paid, any contingent obligations shall be recognized based upon the Company's best estimate of the amount that will be paid to settle the liability. See Note 5. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, accounts receivable, and notes receivable. The Company limits its credit risk with respect to cash by maintaining cash, cash equivalents, and restricted cash balances with high quality financial institutions. At times, the Company’s cash, cash equivalents, and restricted cash may exceed federally insured limits. Concentrations of credit risk with respect to accounts receivable are minimal due to the collection history and due to the nature of the Company’s royalty revenues. Generally, the Company does not require collateral or other security to support accounts receivable. Concentration of credit risk with respect to the promissory note receivable held by the Company is mitigated as it is fully collateralized by various assets in which the Company has been granted a security interest. |
Earnings Per Share | Earnings Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted (loss) earnings per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon the exercise of stock options and warrants using the treasury stock method. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options and warrants outstanding were exercised into common stock if the effect is not anti-dilutive. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for public companies for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance to determine the impact the adoption of this guidance will have on the Company’s results of operations, cash flows and financial condition. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). The core principle of ASU 2016-02 is that an entity should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on the lease classification as a finance or operating lease. In addition, in July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which addresses implementation issues related to the new lease standard. This guidance is effective for the Company as of January 1, 2019 and the Company will adopt this guidance using the modified retrospective approach and will recognize a cumulative-effect adjustment to the opening balance of Retained earnings in that period. This guidance includes a number of optional practical expedients that the Company may elect to apply, including an expedient that permits lease agreements that are twelve months or less to be excluded from the balance sheet. The Company is finalizing the impact that this new guidance will have on its consolidated financial statements, including its disclosures. The primary impact upon adoption will be the recognition, on a discounted basis, of the Company’s minimum commitments under noncancelable operating leases as right of use assets and obligations on the consolidated balance sheets, in a range between $12.0 million to $14.0 million. Recently Adopted Accounting Pronouncements The Company adopted ASC 606 under the modified retrospective adoption method effective January 1, 2018, by applying the new guidance only to contracts that were not completed at the date of initial application. The Company’s evaluation of the impact of the adoption of the new revenue standard on its consolidated financial statements included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. The Company performed an extensive analysis of its existing contracts with customers and its revenue recognition policies and determined that the adoption did not result in material differences from the Company’s prior revenue recognition policies. In addition, the adoption of ASC 606 did not result in material differences in the amount of revenue recognized in the current quarter and year-to-date period when compared to the amount of revenue that would have been recognized in the current quarter and year-to-date period under the old guidance. The Company recognizes revenue continuously over time as it satisfies its continuous obligation of granting access to its licensed intellectual properties, which are deemed symbolic intellectual properties under the new revenue guidance. Payments are typically due after sales have occurred and have been reported by the licensees or, where applicable, in accordance with minimum guaranteed payments provisions. The timing of performance obligations is typically consistent with the timing of payments, though there may be differences if contracts provide for advances or significant escalations of contractually guaranteed minimum payments. There were no such differences that would have a material impact on our Consolidated Balance Sheet at December 31, 2018 and December 31, 2017. In accordance with ASC 606-10-55-65, the Company recognizes revenue at the later of when (1) the subsequent sale or usage occurs or (2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied (in whole or in part). More specifically, the Company separately identifies: (i) Contracts for which, based on experience, royalties are expected to exceed any applicable minimum guaranteed payments, and to which an output-based measure of progress based on the “right to invoice” practical expedient is applied because the royalties due for each period correlate directly with the value to the customer of the Company’s performance in each period (this approach is identified as “View A” by the FASB Revenue Recognition Transition Resource Group, “TRG”); and (ii) Contracts for which revenue is recognized based on minimum guaranteed payments using an appropriate measure of progress, in which minimum guaranteed payments are straight-lined over the term of the contract and recognized ratably based on the passage of time, and to which the royalty recognition constraint to the sales-based royalties in excess of minimum guaranteed is applied and such sales-based royalties are recognized to distinct period only when the minimum guaranteed is exceeded on a cumulative basis (this approach is identified as “View C” by the TRG). The Company does not typically transfer goods or services to customers before the customer pays consideration or before payment is due, thus the implementation of ASC 606 did not result in material contract assets in accordance with ASC 606-10-45-3. The Company’s unconditional right to receive consideration based on the terms and conditions of licensing contracts is presented as accounts receivable on the accompanying Consolidated Balance Sheet. The Company typically does not receive consideration in advance of performance and, consequently, amounts of contract liabilities as defined by ASC 606-10-45-2 were not material as of December 31, 2018 and December 31, 2017. The Company does not disclose the amount attributable to unsatisfied or partially satisfied performance obligations for variable revenue contracts (identified under “View A” above) in accordance with the optional exemption allowed under ASC 606. The Company did not have any revenue recognized in the reporting period from performance obligations satisfied, or partially satisfied, in previous periods. Remaining minimum guaranteed payments for active contracts as of December 31, 2018 are expected to be recognized ratably in accordance with View C over the remaining term of each contract based on the passage of time and through December 2023. In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which largely aligns the accounting for share-based payment awards issued to employees and nonemployees. Under previous GAAP, the accounting for nonemployee share-based payments differed from that applied to employee awards, particularly with regard to the measurement date and the impact of performance conditions. Under the new guidance, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. Changes to the accounting for nonemployee awards include: • Equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; • For performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and • The current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” (“ASC 606”). This new accounting guidance is effective for public companies for fiscal years beginning after December 15, 2018 (i.e., calendar years beginning on January 1, 2019), including interim periods within those fiscal years. The guidance should be applied to all new awards granted after the date of adoption. In addition, all liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established by the adoption date should be remeasured at fair value as of the adoption date with a cumulative effect adjustment to opening retained earnings in the fiscal year of adoption. Early adoption is permitted. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, which revises the guidance in ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities, and provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. The guidance is effective for reporting periods (interim and annual) beginning after December 15, 2017, for public companies. The adoption of this guidance did not have a significant impact on our consolidated financial statements. In January 2017, the FASB issued guidance clarifying the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities is not a business, provides a framework to assist entities in evaluating whether both an input and substantive process are present, and narrows the definition of the term output. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The guidance must be adopted on a prospective basis. We will consider the guidance for future transactions. |
Trademarks, Goodwill and Othe_2
Trademarks, Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Trademark and Other Intangible Assets | Trademarks and other intangibles, net consist of the following: December 31, 2018 ($ in thousands) Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks (indefinite-lived) n/a $ 96,707 $ — $ 96,707 Trademarks (finite-lived) 15 years 15,463 3,521 11,942 Non-compete agreement 7 years 561 321 240 Copyrights and other intellectual property 10 years 190 90 100 Total $ 112,921 $ 3,932 $ 108,989 December 31, 2017 ($ in thousands) Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks (indefinite-lived) n/a $ 96,707 $ — $ 96,707 Trademarks (finite-lived) 15 years 15,463 2,490 12,973 Non-compete agreement 7 years 561 240 321 Copyrights and other intellectual property 10 years 190 71 119 Total $ 112,921 $ 2,801 $ 110,120 |
Schedule of Future Amortization Expense | Estimated future amortization expense related to finite lived intangible assets over the remaining useful lives is as follows: ($ in thousands) Amortization Expense Year Ending December 31, 2019 $ 1,130 2020 1,130 2021 1,130 2022 1,050 2023 1,050 Thereafter 6,793 Total $ 12,283 |
Significant Contracts (Tables)
Significant Contracts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Contracts [Abstract] | |
Schedule Of License Agreements | The Agreements include automatic renewal periods as detailed below unless terminated by either party. Agreement Current Term Expiry Automatic Renewal Xcel Commenced Brand with QVC QVC Product Launch IM QVC Agreement September 30, 2020 one-year period September 2011 2010 Ripka QVC Agreement March 31, 2020 one-year period April 2014 1999 H QVC Agreement December 31, 2020 one-year period January 2015 September 2015 |
Debt and Other Long-term Liab_2
Debt and Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt at Carrying Amount | The Company’s net carrying amount of debt is comprised of the following: ($ in thousands) December 31, 2018 2017 Xcel Term Loan $ 15,500 $ 19,500 Unamortized deferred finance costs related to term loans (200 ) (346 ) IM Seller Note 742 2,201 Ripka Seller Notes 583 543 Contingent Obligation – JR Seller 100 200 Contingent Obligation – CW Seller 2,850 2,850 Total 19,575 24,948 Current portion (i), (ii) 8,275 5,559 Long-term debt $ 11,300 $ 19,389 (i) The current portion of long-term debt presented on the Consolidated Balance Sheet at December 31, 2018 includes (a) $4.0 million related to the Xcel Term Loan, (b) $0.74 million related to the IM Seller Note, (c) $2.95 million related to Contingent Obligations, and (d) $0.58 million related to the Ripka Seller Note. (ii) The current portion of long-term debt presented on the consolidated balance sheet at December 31, 2017 includes $4.0 million related to term loan debt, $1.46 million related to the IM Seller Note and $0.1 million related to a contingent obligation. the leverage ratio for the twelve-fiscal month period ending at the end of each fiscal period set forth below shall not exceed the ratio below: Fiscal Period Maximum Leverage Ratio December 31, 2018 2.90 to 1.00 December 31, 2019, March 31, 2020, June 30, 2020, and September 30, 2020 2.40 to 1.00 December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021 1.70 to 1.00 December 31, 2021 and each Fiscal Quarter end thereafter 1.50 to 1.00 |
Schedule of Aggregate Remaining Principal Payments Under the Amended Loan Agreement | The aggregate remaining annual principal payments under the Amended Loan Agreement are as follows: ($ in thousands) Amount of Principal Payment Year Ending December 31, 2019 $ 4,000 2020 4,000 2021 7,500 Total $ 15,500 Principal on the Term Loan A shall be payable in quarterly installments on each of March 31, June 30, September 30 and December 31 as follows : ($ in thousands) Period Amount June 30, 2019– September 30, 2020 $ 1,000 December 31, 2020 $ 1,250 Principal on the Term Loan B shall be payable in quarterly installments on each of March 31, June 30, September 30 and December 31 as follows: ($ in thousands) Period Amount March 31, 2020– September 30, 2020 $ 250 March 31, 2021 -December 31, 2022 $ 1,125 March 31, 2023 – December 31, 2023 $ 1,250 |
Schedule of Aggregate Remaining Principal Payments Under the IM Seller Note | As of December 31, 2018 , the aggregate remaining annual principal payments under the IM Seller Note are as follows: ($ in thousands) Amount of Principal Payment Year Ending December 31, 2019 $ 742 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Company's Stock Option Activity | A summary of the Company’s stock option activity for the Current Year is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 3,468,833 $ 5.38 4.14 $ — Granted 250,000 3.34 Canceled — — Exercised — — Expired/Forfeited (460,958 ) 3.82 Outstanding at December 31, and expected to vest 3,257,875 $ 5.44 3.19 $ — Exercisable at December 31, 2018 1,776,796 $ 5.60 2.49 $ — |
Schedule of Black-Scholes Assumptions for Fair Value of Options Granted | The fair value of the options granted was estimated at the date of grant using the Black-Scholes option pricing model with the following assumptions: Year Ended December 31, 2018 2017 Expected Volatility 20.91 – 29.65 33.69 – 35.20 Expected Dividend Yield —% —% Expected Life (Term, in years) 2.5 – 3.5 3.25 – 5.42 Risk-Free Interest Rate 2.33 – 2.96% 0.91 – 1.21% |
Schedule of Non-vested Stock Options Activity | The following table summarizes the Company’s stock option activity for non-vested options for the current year: Number of Options Weighted Average Grant Date Fair Value Balance at January 1, 2018 2,613,497 $ 1.23 Granted 250,000 0.54 Vested (983,586 ) 1.27 Forfeited or Canceled (398,832 ) 0.72 Balance at December 31, 2018 1,481,079 $ 1.23 |
Schedule of Restricted Stock Activity | A summary of the Company’s restricted stock activity for the Current Year is as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 2,143,088 $ 5.35 Granted 190,806 3.03 Canceled — — Vested (873,684 ) 5.74 Expired/Forfeited — — Outstanding at December 31, 2018 1,460,210 $ 4.82 |
Schedule of Restricted Stock Purchased and Retired by the Company | The following table provides information with respect to restricted stock purchased and retired by the Company during the Current Year and Prior Year. Date Total Number of Shares Purchased Actual Price Paid per Share Number of Shares Purchased as Part of Publicly Announced Plan Fair value of Re-Purchased Shares March 31, 2018 (i) 43,638 $ 3.25 — $ 142,000 April 30, 2018 (i) 181,486 3.09 — 560,000 May 31, 2018 (i) 107 2.80 — — November 30, 2018 (i) 145,920 2.27 — 331,000 Total 2018 371,151 $ 2.79 — $ 1,033,000 March 31, 2017 (i) 294,540 $ 2.70 — $ 795,000 May 31, 2017 (i) 4,775 2.30 — 11,000 September 30, 2017 (i) 2,200 3.70 — 8,000 December 31, 2017 (i) 149,840 2.55 — 383,000 Total 2017 451,355 $ 2.66 — $ 1,197,000 (i) The shares were exchanged from employees and directors in connection with the income tax withholding obligations on behalf of such employees and directors from the vesting of restricted stock. |
Warrant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Company's Stock Option Activity | A summary of the Company’s warrant activity for the current year is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding and exercisable at January 1, 2018 1,891,743 $ 6.81 1.92 $ — Granted — — Canceled — — Exercised — — Expired/Forfeited (676,928 ) (2.31 ) Outstanding and exercisable at December 31, 2018 1,214,815 $ 9.32 1.66 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Shares Calculation | Shares used in calculating basic and diluted earnings (loss) per share are as follows: Year Ended December 31, 2018 2017 Basic 18,280,788 18,502,158 Effect of exercise of warrants 850 — Diluted 18,281,638 18,502,158 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of basic and diluted earnings (loss) per share excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: Year Ended December 31, 2018 2017 Stock options and warrants 4,421,625 5,360,576 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under the terms of the Company’s noncancelable operating lease agreements are as follows: ($ in thousands) Lease Payments Year Ended December 31, 2019 $ 2,393 2020 2,423 2021 2,577 2022 1,732 2023 1,552 Thereafter 5,950 Total future noncancelable minimum lease payments $ 16,627 |
Schedule of Contracts with Certain Executives and Key Employees | The Company has contracts with certain executives and key employees. The future minimum payments under these contracts are as follows: ($ in thousands) Employment Contract Payments Year Ended December 31, 2019 $ 6,482 2020 2,507 2021 1,918 Thereafter — Total future minimum employment contract payments $ 10,907 |
Facility Exit Costs (Tables)
Facility Exit Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Activity Related to Exit Cost Liability | A summary of the activity related to the exit cost liability is as follows: ($ in thousands) 2018 2017 Balance as of January 1, $ 624 $ 783 Cash payments, net (113 ) (154 ) Adjustment to liability (revision to estimated cash flows) 799 (25 ) Accretion 8 20 Balance as of December 31, $ 1,318 $ 624 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Benefit) Provision for Federal, State, and Local Income Taxes | The income tax provision (benefit) for federal and state and local income taxes in the consolidated statements of operations consists of the following: ($ in thousands) Years Ended December 31, 2018 2017 Current: Federal $ — $ — State and local 67 79 Total current 67 79 Deferred: Federal 1,404 (883 ) State and local 360 357 Total deferred 1,764 (526 ) Total (benefit) provision $ 1,831 $ (447 ) |
Reconciliation of Income Tax at The Federal, State and Local Statutory Rates to The Company’s Income Before Taxes | The reconciliation of income tax computed at the federal and state and local statutory rates to the Company’s income before taxes is as follows: Years Ended December 31, 2018 2017 U.S. statutory federal rate 21.00 % (34.00 )% State and local rate, net of federal tax 14.16 1.09 Stock compensation 18.25 9.37 Excess compensation deduction 8.38 4.49 Foreign tax credits (1.03 ) (0.30 ) Federal true-ups 0.41 (0.17 ) Life insurance 1.28 0.57 Tax rate change due to Tax Cuts and Jobs Act — (24.88 ) Goodwill impairment — 39.50 Other permanent differences 0.25 0.14 Income tax provision (benefit) 62.70 % (4.19 )% |
Net Deferred Tax Liabilities | The significant components of net deferred tax liabilities of the Company consist of the following: ($ in thousands) December 31, 2018 2017 Deferred tax assets Stock-based compensation $ 3,099 $ 4,097 Federal, state and local net operating loss carryforwards 566 312 Accrued compensation and other accrued expenses 1,009 1,132 Allowance for doubtful accounts 58 — Basis difference arising from discounted note payable 355 387 Foreign tax credit 130 95 Charitable contribution carryover 55 47 Property and equipment 170 — Other — 10 Total deferred tax assets $ 5,442 $ 6,080 Deferred tax liabilities Property and equipment — 220 Basis difference arising from intangible assets of acquisition (13,581 ) (12,675 ) Total deferred tax liabilities (13,581 ) (12,455 ) Net deferred tax liabilities $ (8,139 ) $ (6,375 ) |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Event [Line Items] | |
Schedule of Quarterly Installment Payments | The aggregate remaining annual principal payments under the Amended Loan Agreement are as follows: ($ in thousands) Amount of Principal Payment Year Ending December 31, 2019 $ 4,000 2020 4,000 2021 7,500 Total $ 15,500 Principal on the Term Loan A shall be payable in quarterly installments on each of March 31, June 30, September 30 and December 31 as follows : ($ in thousands) Period Amount June 30, 2019– September 30, 2020 $ 1,000 December 31, 2020 $ 1,250 Principal on the Term Loan B shall be payable in quarterly installments on each of March 31, June 30, September 30 and December 31 as follows: ($ in thousands) Period Amount March 31, 2020– September 30, 2020 $ 250 March 31, 2021 -December 31, 2022 $ 1,125 March 31, 2023 – December 31, 2023 $ 1,250 |
Schedule of Fixed Charge Coverage Ratios | the fixed charge coverage ratio for the twelve-fiscal month period ending at the end of each fiscal quarter shall not be less than the ratio set forth below for such fiscal period: Fiscal Quarter End Fixed Charge Coverage Ratio December 31, 2019, March 31, 2020, June 30, 2020, September 30, 2020 1.05 to 1.00 December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and thereafter 1.10 to 1.00 |
Schedule of Maximum Leverage Ratios | The Company’s net carrying amount of debt is comprised of the following: ($ in thousands) December 31, 2018 2017 Xcel Term Loan $ 15,500 $ 19,500 Unamortized deferred finance costs related to term loans (200 ) (346 ) IM Seller Note 742 2,201 Ripka Seller Notes 583 543 Contingent Obligation – JR Seller 100 200 Contingent Obligation – CW Seller 2,850 2,850 Total 19,575 24,948 Current portion (i), (ii) 8,275 5,559 Long-term debt $ 11,300 $ 19,389 (i) The current portion of long-term debt presented on the Consolidated Balance Sheet at December 31, 2018 includes (a) $4.0 million related to the Xcel Term Loan, (b) $0.74 million related to the IM Seller Note, (c) $2.95 million related to Contingent Obligations, and (d) $0.58 million related to the Ripka Seller Note. (ii) The current portion of long-term debt presented on the consolidated balance sheet at December 31, 2017 includes $4.0 million related to term loan debt, $1.46 million related to the IM Seller Note and $0.1 million related to a contingent obligation. the leverage ratio for the twelve-fiscal month period ending at the end of each fiscal period set forth below shall not exceed the ratio below: Fiscal Period Maximum Leverage Ratio December 31, 2018 2.90 to 1.00 December 31, 2019, March 31, 2020, June 30, 2020, and September 30, 2020 2.40 to 1.00 December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021 1.70 to 1.00 December 31, 2021 and each Fiscal Quarter end thereafter 1.50 to 1.00 |
Schedule of Gross DRT Sale Level targets for 2019 | Mr. Falco will be eligible to receive a performance cash bonus in an amount up to $0.4 million per annum and a performance stock bonus with a value of up to $0.1 million per annum based upon the Company receiving Gross DRT Sales as follows: ($ in thousands) 2019 Gross DRT Sales Level Cash Bonus $ Value of Stock Bonus $242,500- $250,000 $90 $24 $250,000 - $257,500 $180 $45 $257,500 - $265,000 $270 $68 $265,000 or more $360 $90 |
Chief Executive Officer [Member] | |
Subsequent Event [Line Items] | |
Schedule of Common Stock Target Prices | The option is exercisable until February 28, 2029 and shall vest, subject to Mr. D’Loren remaining employed by the Company and based upon the Company’s common stock achieving the following target prices: Target Prices Number of Option Shares Vesting $3.00 736,842 $5.00 626,316 $7.00 515,789 $9.00 405,263 $11.00 294,737 |
Chief Financial Officer [Member] | |
Subsequent Event [Line Items] | |
Schedule of Common Stock Target Prices | The option is exercisable until February 28, 2029 and shall vest, subject to Mr. Haran remaining employed with the Company and based upon the Company’s common stock achieving target prices as follows: Target Prices Number of Option Shares Vesting $3.00 157,895 $5.00 134,211 $7.00 110,526 $9.00 86,842 $11.00 63,158 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable, net | $ 8,528,000 | $ 11,010,000 | $ 8,528,000 | |
Allowance for doubtful accounts | 30,000 | 200,000 | 30,000 | |
Earned revenue accrued but not billed | 380,000 | 0 | 380,000 | |
Goodwill impairment charges | 12,400,000 | 0 | 12,371,000 | |
Impairment charges on indefinite-lived intangible assets | 0 | 0 | ||
Impairment charges on definite-lived intangible assets | 0 | 0 | ||
Restricted cash | 1,500,000 | 1,482,000 | 1,500,000 | |
Cost method investments | 100,000 | $ 100,000 | $ 100,000 | |
Effective yield on receivable with imputed interest (interest rate) | 5.10% | 5.10% | ||
Promissory note receivable | $ 900,000 | $ 900,000 | $ 900,000 | |
Advertising cost during the period | 300,000 | $ 10,000 | ||
Promissory Note Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Gross financing receivable | $ 900,000 | |||
Maturity date of promissory note receivable | Apr. 1, 2019 | |||
Discount Rate [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Measurement input (as a percent) | 0.13 | 0.13 | ||
Revenue Growth Rate [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Measurement input (as a percent) | 0.04 | 0.04 | ||
Risk Free Interest Rate [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Measurement input (as a percent) | 0.02 | 0.02 | ||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of property and equipment (in years) | 3 years | |||
Estimated useful lives of property and equipment (in years) | 3 | |||
Estimated useful life of finite-lived intangible asset (in years) | 4 years | |||
Minimum [Member] | Scenario, Forecast [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Minimum commitments under noncancelable operating leases as right of use assets | $ 12,000,000 | |||
Minimum commitments under noncancelable operating leases as obligation | 12,000,000 | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of property and equipment (in years) | 7 years | |||
Estimated useful lives of property and equipment (in years) | 7 | |||
Estimated useful life of finite-lived intangible asset (in years) | 15 years | |||
Maximum [Member] | Scenario, Forecast [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Minimum commitments under noncancelable operating leases as right of use assets | 14,000,000 | |||
Minimum commitments under noncancelable operating leases as obligation | $ 14,000,000 | |||
Irrevocable Standby Letter of Credit [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Security Deposit [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 400,000 | $ 373,000 | $ 400,000 |
Trademarks, Goodwill and Othe_3
Trademarks, Goodwill and Other Intangibles - Schedule of Trademarks and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Total | $ 112,921 | $ 112,921 |
Accumulated Amortization | 3,932 | 2,801 |
Net Carrying Amount | 12,283 | |
Net Carrying Amount, Total | $ 108,989 | $ 110,120 |
Trademarks [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (Years) | 15 years | |
Gross Carrying Amount (finite-lived) | $ 15,463 | |
Accumulated Amortization | 2,490 | |
Net Carrying Amount | $ 12,973 | |
Non-compete agreement [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (Years) | 7 years | 7 years |
Gross Carrying Amount (finite-lived) | $ 561 | $ 561 |
Accumulated Amortization | 321 | 240 |
Net Carrying Amount | $ 240 | $ 321 |
Copyrights and other intellectual property [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (Years) | 10 years | 10 years |
Gross Carrying Amount (finite-lived) | $ 190 | $ 190 |
Accumulated Amortization | 90 | 71 |
Net Carrying Amount | $ 100 | 119 |
Trademarks [Member] | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (Years) | 15 years | |
Gross Carrying Amount (indefinite-lived) | $ 96,707 | $ 96,707 |
Gross Carrying Amount (finite-lived) | 15,463 | |
Accumulated Amortization | 3,521 | |
Net Carrying Amount | $ 11,942 |
Trademarks, Goodwill and Othe_4
Trademarks, Goodwill and Other Intangibles - Schedule of Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | |
2019 | $ 1,130 |
2020 | 1,130 |
2021 | 1,130 |
2022 | 1,050 |
2023 | 1,050 |
Thereafter | 6,793 |
Net Carrying Amount | $ 12,283 |
Trademarks, Goodwill and Othe_5
Trademarks, Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,100 | $ 1,100 | |
Goodwill impairment charges | $ 12,400 | $ 0 | $ 12,371 |
Significant Contracts - Schedu
Significant Contracts - Schedule of License Agreements (Details) | 12 Months Ended |
Dec. 31, 2018 | |
IM QVC Agreement [Member] | |
Current Term Expiry | Sep. 30, 2020 |
Automatic Renewal | 1 year |
Xcel Commenced Brand with QVC | September 2011 |
QVC Product Launch | 2010 |
Ripka QVC Agreement [Member] | |
Current Term Expiry | Mar. 31, 2020 |
Automatic Renewal | 1 year |
Xcel Commenced Brand with QVC | April 2014 |
QVC Product Launch | 1999 |
H QVC Agreement [Member] | |
Current Term Expiry | Dec. 31, 2020 |
Automatic Renewal | 1 year |
Xcel Commenced Brand with QVC | January 2015 |
QVC Product Launch | September 2015 |
Significant Contracts - Additi
Significant Contracts - Additional Information (Details) - Royalty Agreement With QVC [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Contract Revenue | ||
Percentage of total net revenue | 72.00% | 81.00% |
Gross accounts receivable | $ 5,680 | $ 5,470 |
Percentage of total gross accounts receivables | 52.00% | 64.00% |
Royalty [Member] | ||
Significant Contract Revenue | ||
Revenue | $ 25,630 | $ 25,770 |
Debt and Other Long-term Liab_3
Debt and Other Long-term Liabilities - Debt at Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized deferred finance costs related to term loans | $ (200) | $ (346) |
Total | 19,575 | 24,948 |
Current portion | 8,275 | 5,559 |
Long-term debt | 11,300 | 19,389 |
Contingent Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Current portion | 2,950 | 100 |
Xcel Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan | 15,500 | 19,500 |
Unamortized deferred finance costs related to term loans | (200) | |
Current portion | 4,000 | 4,000 |
IM Seller Note [Member] | ||
Debt Instrument [Line Items] | ||
Seller Note | 742 | 2,201 |
Current portion | 740 | 1,460 |
JR Seller [Member] | ||
Debt Instrument [Line Items] | ||
Contingent obligation | 100 | 200 |
Ripka Seller Notes [Member] | ||
Debt Instrument [Line Items] | ||
Seller Note | 583 | 543 |
Current portion | 580 | |
CW Seller [Member] | ||
Debt Instrument [Line Items] | ||
Contingent obligation | $ 2,850 | $ 2,850 |
Debt and Other Long-term Liab_4
Debt and Other Long-term Liabilities - Remaining Principal Payments on Term Loan (Details) - Xcel Term Loan [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2019 | $ 4,000 | |
2020 | 4,000 | |
2021 | 7,500 | |
Total | $ 15,500 | $ 19,500 |
Debt and Other Long-term Liab_5
Debt and Other Long-term Liabilities - Remaining Principal Payments on Seller Note (Details) $ in Thousands | Dec. 31, 2018USD ($) |
I M Ready Made L L C [Member] | |
Debt Instrument [Line Items] | |
2019 | $ 742 |
Debt and Other Long-term Liab_6
Debt and Other Long-term Liabilities - Additional Information (Details) | May 15, 2018USD ($) | Sep. 19, 2016 | Sep. 16, 2016 | Apr. 03, 2014USD ($) | Dec. 31, 2021USD ($) | Dec. 21, 2016USD ($) | Dec. 24, 2013USD ($)$ / shares | Sep. 29, 2011USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / shares | Oct. 01, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2017USD ($) | Jun. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Jun. 30, 2016USD ($) | May 15, 2019USD ($) | Feb. 11, 2019USD ($) | Feb. 26, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||||
Fees to or on behalf of BHI | $ 0 | $ 7,000 | ||||||||||||||||||||
Deferred finance costs related to financing transactions | 200,000 | 346,000 | ||||||||||||||||||||
Aggregate outstanding balance of all the term loans | 19,575,000 | 24,948,000 | ||||||||||||||||||||
Incurred interest expense under note payable | 912,000 | 1,171,000 | ||||||||||||||||||||
Fair value of contingent obligations | 2,950,000 | 3,050,000 | ||||||||||||||||||||
Deferred rent | $ 2,620,000 | 2,500,000 | ||||||||||||||||||||
IM Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate principal amount | $ 7,400,000 | |||||||||||||||||||||
Stated interest rate on note payable | 2.236% | 0.25% | ||||||||||||||||||||
Expected borrowing rate | 2.236% | 9.25% | ||||||||||||||||||||
Discount for imputed interest | $ 1,700,000 | |||||||||||||||||||||
Imputed annual interest rate | 9.00% | |||||||||||||||||||||
Initial value of note payable | $ 5,600,000 | |||||||||||||||||||||
Initial prepaid interest | $ 100,000 | |||||||||||||||||||||
Maturity date of note payable | Sep. 30, 2018 | |||||||||||||||||||||
Minimum common stock price | $ / shares | $ 4.50 | |||||||||||||||||||||
Aggregate principal amount | $ 1,500,000 | |||||||||||||||||||||
Incurred interest expense under note payable | $ 30,000 | 70,000 | ||||||||||||||||||||
IM Term Loan [Member] | Second Amendment [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in principal payments | (800,000) | |||||||||||||||||||||
Ripka Seller Notes [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Incurred interest expense under note payable | 40,000 | 40,000 | ||||||||||||||||||||
Remaining discounted balance on non-interest bearing note | 580,000 | 540,000 | ||||||||||||||||||||
Principal amount due at maturity | 600,000 | |||||||||||||||||||||
Xcel Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate principal amount | $ 27,900,000 | |||||||||||||||||||||
Minimum net worth required for compliance | 90,000,000 | $ 90,000,000 | $ 90,000,000 | $ 90,000,000 | ||||||||||||||||||
Minimum liquid assets | 5,000,000 | |||||||||||||||||||||
Minimum liquid assets required in case of ratio of indebtedness to EBITDA is less than one to one | $ 3,000,000 | |||||||||||||||||||||
Minimum fixed charge ratio | 1.20 | 1.20 | ||||||||||||||||||||
Maximum capital expenditures allowed | $ 1,700,000 | $ 2,700,000 | ||||||||||||||||||||
Fees to or on behalf of BHI | 7,000 | |||||||||||||||||||||
Deferred finance costs related to financing transactions | 200,000 | |||||||||||||||||||||
Fixed interest rate per annum | 5.10% | |||||||||||||||||||||
Interest expense related to term loan debt | $ 900,000 | 1,100,000 | ||||||||||||||||||||
Xcel Term Loan [Member] | Second Amendment [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in principal payments | (800,000) | |||||||||||||||||||||
Current effective interest rate on Amended Loan Agreement | 6.05% | |||||||||||||||||||||
Xcel Term Loan [Member] | First Amendment [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in principal payments | $ (1,000,000) | |||||||||||||||||||||
Xcel Term Loan [Member] | Fiscal Years Following 2018 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum capital expenditures allowed | 700,000 | |||||||||||||||||||||
Xcel Term Loan [Member] | Fiscal Year 2018 and 2019 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Minimum Earning Before Interest Taxes Depreciation And Amortization After Amendment | $ 8,000,000 | |||||||||||||||||||||
Minimum Earning Before Interest Taxes Depreciation And Amortization Before Amendment | not less than $9,000,000 | |||||||||||||||||||||
Xcel Term Loan [Member] | Fiscal Years Following 2019 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Minimum Earning Before Interest Taxes Depreciation And Amortization After Amendment | $ 9,000,000 | |||||||||||||||||||||
Xcel Term Loan [Member] | Scenario, Forecast [Member] | Second Amendment [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in principal payments | $ 800,000 | |||||||||||||||||||||
Xcel Term Loan [Member] | Scenario, Forecast [Member] | First Amendment [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in principal payments | $ 1,000,000 | |||||||||||||||||||||
Contingent Obligations [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Royalty earn out value | $ 5,000,000 | |||||||||||||||||||||
Floor price per share for conversion of debt | $ / shares | $ 7 | |||||||||||||||||||||
Fair value of Ripka earn out | $ 3,800,000 | 200,000 | ||||||||||||||||||||
Maximum amount of earn-out consideration decreased to | $ 400,000 | |||||||||||||||||||||
Earn-out consideration payable in cash | $ 100,000 | $ 200,000 | 200,000 | |||||||||||||||||||
Minimum net royalty income contingency | $ 6,000,000 | |||||||||||||||||||||
Fair value of Ripka Earnout include in current portion of long-term debt | $ 100,000 | 100,000 | ||||||||||||||||||||
Fair value of Ripka earnout presented in long-term debt | $ 100,000 | |||||||||||||||||||||
Contingent Obligations [Member] | Long-term Debt [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Reduction in principal amount owed to settle earnout due | $ 100,000 | |||||||||||||||||||||
C Wonder Earn-Out [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Fixed threshold to be used in computation of earnout | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | |||||||||||||||||||
Fair value of contingent obligations | $ 2,900,000 | |||||||||||||||||||||
Ripka Earn-Out [Member] | Scenario, Forecast [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Earn-out consideration payable in cash | $ 100,000 | |||||||||||||||||||||
Remaining future payments of earn-out | $ 100,000 | |||||||||||||||||||||
Minimum net royalty income contingency | $ 6,000,000 | |||||||||||||||||||||
Royalty [Member] | Contingent Obligations [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Revenue | $ 1,000,000 | |||||||||||||||||||||
Royalty [Member] | Ripka Earn-Out [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Revenue | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||||||
Subsequent Event [Member] | Amended Term Loan [Member] | Xcel Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate principal amount | $ 15,500,000 | |||||||||||||||||||||
Subsequent Event [Member] | Additional Term Loan [Member] | Xcel Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate principal amount | 7,500,000 | |||||||||||||||||||||
Subsequent Event [Member] | Combined Term Loans [Member] | Xcel Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate outstanding balance of all the term loans | 22,000,000 | |||||||||||||||||||||
Subsequent Event [Member] | Term Loan A [Member] | Xcel Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate outstanding balance of all the term loans | 7,300,000 | |||||||||||||||||||||
Subsequent Event [Member] | Term Loan B [Member] | Xcel Term Loan [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate outstanding balance of all the term loans | $ 14,800,000 |
- Company's Stock Option Activi
- Company's Stock Option Activity Summary (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options | ||
Outstanding at January 1, 2018 | 3,468,833 | |
Granted | 250,000 | |
Canceled | 0 | |
Exercised | 0 | |
Expired/Forfeited | (460,958) | |
Outstanding at December 31, and expected to vest | 3,257,875 | 3,468,833 |
Exercisable at December 31, 2018 | 1,776,796 | |
Weighted Average Exercise Price | ||
Outstanding at January 1, 2018 | $ 5.38 | |
Granted | 3.34 | |
Canceled | 0 | |
Exercised | 0 | |
Expired/Forfeited | 3.82 | |
Outstanding at December 31, and expected to vest | 5.44 | $ 5.38 |
Exercisable at December 31, 2018 | $ 5.60 | |
Weighted Average Remaining Contractual Life (in Years) | 3 years 2 months 10 days | 4 years 1 month 21 days |
Exercisable Weighted Average Remaining Contractual Life (in Years) | 2 years 5 months 28 days | |
Aggregate Intrinsic Value Outstanding | $ 0 | $ 0 |
Aggregate Intrinsic Value Exercisable | $ 0 |
Stockholders' Equity - Black-S
Stockholders' Equity - Black-Scholes Assumptions for Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Volatility Rate, Minimum | 20.91% | 33.69% |
Expected Volatility Rate, Maximum | 29.65% | 35.20% |
Risk-Free Interest Rate, Minimum | 2.33% | 0.91% |
Risk-Free Interest Rate, Maximum | 2.96% | 1.21% |
Expected Dividend Yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Life (Term,in years) | 2 years 6 months | 3 years 3 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Life (Term,in years) | 3 years 6 months | 5 years 5 months 1 day |
Stockholders' Equity - Non-Ves
Stockholders' Equity - Non-Vested Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Options | |
Granted | 250,000 |
Employee Stock Option [Member] | |
Number of Options | |
Beginning Balance | 2,613,497 |
Granted | 250,000 |
Vested | (983,586) |
Forfeited or Canceled | (398,832) |
Ending Balance | 1,481,079 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 1.23 |
Granted | $ / shares | 0.54 |
Vested | $ / shares | 1.27 |
Forfeited or Canceled | $ / shares | 0.72 |
Ending Balance | $ / shares | $ 1.23 |
Stockholders' Equity - Stock W
Stockholders' Equity - Stock Warrant Activity During Period (Details) - Warrant [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Warrants | ||
Outstanding and exercisable at January 1, 2018 | 1,891,743 | |
Granted | 0 | |
Canceled | 0 | |
Exercised | 0 | |
Expired/Forfeited | (676,928) | |
Outstanding and exercisable at December 31, 2018 | 1,214,815 | 1,891,743 |
Weighted Average Exercise Price | ||
Outstanding and exercisable at January 1, 2018 | $ 6.81 | |
Granted | 0 | |
Canceled | 0 | |
Exercised | 0 | |
Expired/Forfeited | (2.31) | |
Outstanding and exercisable at December 31, 2018 | $ 9.32 | $ 6.81 |
Weighted Average Remaining Contractual Life (in Years), Outstanding and exercisable | 1 year 7 months 29 days | 1 year 11 months 1 day |
Aggregate Intrinsic Value, Outstanding and exercisable | $ 0 | $ 0 |
Stockholders' Equity - Restric
Stockholders' Equity - Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Restricted Shares | |
Outstanding at January 1, 2018 | shares | 2,143,088 |
Granted | shares | 190,806 |
Canceled | shares | 0 |
Vested | shares | (873,684) |
Expired/Forfeited | shares | 0 |
Outstanding at December 31, 2018 | shares | 1,460,210 |
Weighted Average Grant Date Fair Value | |
Outstanding at January 1, 2018 | $ / shares | $ 5.35 |
Granted | $ / shares | 3.03 |
Canceled | $ / shares | 0 |
Vested | $ / shares | (5.74) |
Expired/Forfeited | $ / shares | 0 |
Outstanding at December 31, 2018 | $ / shares | $ 4.82 |
Stockholders' Equity - Restr_2
Stockholders' Equity - Restricted Stock Purchased and Retired (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total Number of Shares Purchased | 145,920 | 107 | 181,486 | 43,638 | 149,840 | 2,200 | 4,775 | 294,540 | 371,151 | 451,355 |
Actual Price Paid Per Share (in dollars per share) | $ 2.27 | $ 2.80 | $ 3.09 | $ 3.25 | $ 2.55 | $ 3.70 | $ 2.30 | $ 2.70 | $ 2.79 | $ 2.66 |
Number of Shares Purchased as Part of Publically Announced Plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Fair value of Re-Purchased Shares | $ 331 | $ 0 | $ 560 | $ 142 | $ 383 | $ 8 | $ 11 | $ 795 | $ 1,033 | $ 1,197 |
Stockholders' Equity - Additi
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 21, 2018 | Oct. 15, 2018 | Jun. 05, 2018 | May 31, 2018 | Apr. 03, 2018 | Apr. 02, 2018 | Apr. 01, 2018 | Mar. 30, 2018 | Mar. 14, 2018 | Nov. 02, 2017 | Oct. 01, 2017 | Aug. 30, 2017 | Jun. 18, 2017 | May 31, 2017 | Mar. 31, 2017 | Jan. 31, 2017 | Jan. 24, 2017 | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Authorized number of shares | 51,000,000 | |||||||||||||||||||
Number of common stock shares authorized | 50,000,000 | 35,000,000 | ||||||||||||||||||
Authorized number of shares of preferred stock | 1,000,000 | 1,000,000 | ||||||||||||||||||
Stock options granted (in shares) | 250,000 | |||||||||||||||||||
Exercise price of options grants (in dollars per share) | $ 3.34 | |||||||||||||||||||
Equity Option [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Compensation expense related to stock options | $ 1.1 | $ 1.2 | ||||||||||||||||||
Key Employees [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Stock options granted (in shares) | 35,000 | 15,000 | 50,000 | 300,000 | 50,000 | 150,000 | ||||||||||||||
Exercise price of options grants (in dollars per share) | $ 2.25 | $ 2.04 | $ 5.50 | $ 3.50 | $ 3.50 | $ 5.50 | ||||||||||||||
Executive Officer [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Stock options granted (in shares) | 15,000 | 500,000 | ||||||||||||||||||
Exercise price of options grants (in dollars per share) | $ 2.60 | $ 5 | ||||||||||||||||||
Employees [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Stock options granted (in shares) | 20,000 | |||||||||||||||||||
Exercise price of options grants (in dollars per share) | $ 3.55 | |||||||||||||||||||
Non Management Directors [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Stock options granted (in shares) | 150,000 | 150,000 | ||||||||||||||||||
Exercise price of options grants (in dollars per share) | $ 3 | $ 2.70 | ||||||||||||||||||
Restricted Stock [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Compensation cost expected to be recognized | $ 0.3 | |||||||||||||||||||
Weighted average period | 10 months 27 days | |||||||||||||||||||
Shares of restricted stock grants vested | 873,684 | |||||||||||||||||||
Compensation expense related to restricted stock | $ 0.7 | $ 2 | ||||||||||||||||||
Restricted Stock [Member] | Non Management Directors [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Aggregate shares of restricted stock granted | 48,000 | 48,000 | ||||||||||||||||||
Restricted Stock [Member] | Non Management Directors [Member] | Half of the shares will vest on April 2, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Restricted Stock [Member] | Non Management Directors [Member] | Half of the shares will vest on April 2, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Restricted Stock [Member] | Non Management Directors [Member] | Half of the shares will vest on March 31, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Restricted Stock [Member] | Non Management Directors [Member] | Half of the shares will vest on March 31, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Restricted Stock [Member] | Director [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Aggregate shares of restricted stock granted | 28,334 | 50,000 | ||||||||||||||||||
Restricted Stock [Member] | Director [Member] | Shares vested immediately on January 31, 2017 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Shares of restricted stock grants vested | 25,000 | |||||||||||||||||||
Restricted Stock [Member] | Director [Member] | Shares shall vest on January 31, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Shares of restricted stock grants vested | 25,000 | |||||||||||||||||||
Restricted Stock [Member] | Director [Member] | Shares vested immediately on June 18, 2017 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Shares of restricted stock grants vested | 14,167 | |||||||||||||||||||
Restricted Stock [Member] | Director [Member] | Shares shall vest on January 31, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Shares of restricted stock grants vested | 14,167 | |||||||||||||||||||
Restricted Stock [Member] | Non-Executive Management [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Aggregate shares of restricted stock granted | 1,664 | 25,599 | 90,209 | |||||||||||||||||
Restricted Stock [Member] | Non-Executive Management [Member] | Vested immediately on March 14, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Restricted Stock [Member] | Non-Executive Management [Member] | Vested immediately on April 3, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Restricted Stock [Member] | Non-Executive Management [Member] | Vested immediately on May 31, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Restricted Stock [Member] | Consultant 1 [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Aggregate shares of restricted stock granted | 10,000 | 7,000 | ||||||||||||||||||
Restricted Stock [Member] | Consultant 1 [Member] | Vested immediately on October 15, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Restricted Stock [Member] | Consultant 2 [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Aggregate shares of restricted stock granted | 8,334 | |||||||||||||||||||
Restricted Stock [Member] | Consultant 2 [Member] | Vested immediately on October 15, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Restricted Stock [Member] | Consultant 3 [Member] | Vested immediately on June 5, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Employee Stock Option [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Compensation cost expected to be recognized | $ 0.7 | |||||||||||||||||||
Weighted average period | 1 year 10 months 20 days | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on January 1, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on January 1, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on January 1, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on May 31, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on May 31, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on May 31, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | Half of the options will vest on August 30, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | Half of the options will vest on August 30, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on April 1, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on April 1, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on April 1, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | All options vested immediately on March 30, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 100.00% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on October 15, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on October 15, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | One-third of the options will vest on October 15, 2021 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 33.33% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | Half of the options will vest on September 30, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Key Employees [Member] | Half of the options will vest on September 30, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Executive Officer [Member] | One-fifth of the options will vest on January 1, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 20.00% | |||||||||||||||||||
Employee Stock Option [Member] | Executive Officer [Member] | One-fifth of the options will vest on January 1, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 20.00% | |||||||||||||||||||
Employee Stock Option [Member] | Executive Officer [Member] | One-fifth of the options will vest on January 1, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 20.00% | |||||||||||||||||||
Employee Stock Option [Member] | Executive Officer [Member] | One-fifth of the options will vest on January 1, 2021 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 20.00% | |||||||||||||||||||
Employee Stock Option [Member] | Executive Officer [Member] | One-fifth of the options will vest on January 1, 2022 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 20.00% | |||||||||||||||||||
Employee Stock Option [Member] | Non Management Directors [Member] | Half of the options will vest on April 1, 2018 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Non Management Directors [Member] | Half of the options will vest on March 31, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Non Management Directors [Member] | Half of the options will vest on April 2, 2019 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
Employee Stock Option [Member] | Non Management Directors [Member] | Half of the options will vest on April 2, 2020 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Percentage of options vested | 50.00% | |||||||||||||||||||
2011 Equity Incentive Plan [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Shares of common stock eligible for issuance | 13,000,000 | |||||||||||||||||||
Shares of common stock available for issuance | 5,813,949 | |||||||||||||||||||
Shares of common stock reserved for issuance | 10,286,639 |
Earnings Per Share - Basic an
Earnings Per Share - Basic and Diluted Shares Calculation (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Basic And Diluted [Line Items] | ||
Basic | 18,280,788 | 18,502,158 |
Diluted | 18,281,638 | 18,502,158 |
Warrant [Member] | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Effect of Exercise of Stock Options and Warrants | 850 | 0 |
Earnings Per Share - Antidilut
Earnings Per Share - Antidilutive Securities Excluded (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Stock options and warrants | 4,421,625 | 5,360,576 |
Commitments and Contingencies
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 2,393 |
2020 | 2,423 |
2021 | 2,577 |
2022 | 1,732 |
2023 | 1,552 |
Thereafter | 5,950 |
Total future noncancelable minimum lease payments | $ 16,627 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Payments under Employment Contracts (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 6,482 |
2020 | 2,507 |
2021 | 1,918 |
Thereafter | 0 |
Total future minimum employment contract payments | $ 10,907 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies [Line Items] | |||
Letters of credit | $ 1,100 | $ 1,100 | |
Term of operating leases sublease | Feb. 27, 2022 | ||
Rent expense from operating leases, | $ 1,500 | $ 1,500 | |
Revenue from sublease | $ 780 | $ 740 | |
Aggregate potential severance costs | $ 8,400 | ||
Main Headquarters Lease [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lease expiration date | Oct. 30, 2027 | ||
Office Space Lease [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lease expiration date | Feb. 28, 2022 | ||
Sublease Agreements [Member] | |||
Commitments and Contingencies [Line Items] | |||
Revenue from sublease | $ 780 |
Facility Exit Costs - Activity
Facility Exit Costs - Activity Related to Exit Cost Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Exit Cost Liability Rollforward | ||
Adjustment to liability (revision to estimated cash flows) | $ 799 | $ 0 |
Facility Exit Costs [Member] | ||
Exit Cost Liability Rollforward | ||
Balance as of January 1, | 624 | 783 |
Cash payments, net | (113) | (154) |
Adjustment to liability (revision to estimated cash flows) | 799 | (25) |
Accretion | 8 | 20 |
Balance as of December 31, | $ 1,300 | $ 624 |
Facility Exit Costs - Addition
Facility Exit Costs - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Payable Period for Facility Exit Cost Liabilities | 3 years 2 months 12 days | ||
Facilities exit charge | $ 799 | $ 0 | |
Facility Exit Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1,300 | 624 | $ 783 |
Current portion of reserve for relocation charges | 600 | ||
Noncurrent portion of reserve for relocation charges | $ 700 | ||
Facility exit costs payable period | approximately 3.2 years, through February 2022 | ||
Facilities exit charge | $ 799 | $ (25) |
Income Taxes - Income Tax (Ben
Income Taxes - Income Tax (Benefit) Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal | $ 0 | $ 0 |
State and local | 67 | 79 |
Total current | 67 | 79 |
Deferred: | ||
Federal | 1,404 | (883) |
State and local | 360 | 357 |
Total deferred | 1,764 | (526) |
Total (benefit) provision | $ 1,831 | $ (447) |
Income Taxes - Reconciliation
Income Taxes - Reconciliation of Income Tax Rates (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory federal rate | (21.00%) | (34.00%) |
State and local rate, net of federal tax | 14.16% | (1.09%) |
Stock compensation | (18.25%) | 9.37% |
Excess compensation deduction | (8.38%) | 4.49% |
Foreign tax credits | (1.03%) | 0.30% |
Federal true-ups | (0.41%) | (0.17%) |
Life insurance | (1.28%) | 0.57% |
Tax rate change due to Tax Cuts and Jobs Act | (0.00%) | (24.88%) |
Goodwill impairment | (0.00%) | 39.50% |
Other permanent differences | (0.25%) | 0.14% |
Income tax provision (benefit) | (62.70%) | (4.19%) |
Income Taxes - Net Deferred Ta
Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Stock-based compensation | $ 3,099 | $ 4,097 |
Federal, state and local net operating loss carryforwards | 566 | 312 |
Accrued compensation and other accrued expenses | 1,009 | 1,132 |
Allowance for doubtful accounts | 58 | 0 |
Basis difference arising from discounted note payable | 355 | 387 |
Foreign tax credit | 130 | 95 |
Charitable contribution carryover | 55 | 47 |
Property and equipment | 170 | 0 |
Other | 0 | 10 |
Total deferred tax assets | 5,442 | 6,080 |
Deferred tax liabilities | ||
Property and equipment | 0 | 220 |
Basis difference arising from intangible assets of acquisition | (13,581) | (12,675) |
Total deferred tax liabilities | (13,581) | (12,455) |
Net deferred tax liabilities | $ (8,139) | $ (6,375) |
Income Taxes - Additional Inf
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward available to offset future taxable income | $ 1.6 | $ 0.8 |
Tax Year 2018 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss generated during the period | $ 0.8 |
Related Party Transactions - A
Related Party Transactions - Additional Information (Details) - USD ($) | Jan. 31, 2018 | Jun. 18, 2017 | Apr. 28, 2017 | Jan. 31, 2017 | Jan. 30, 2017 | Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 22, 2014 |
Related Party Transaction [Line Items] | ||||||||||
Minimum share price allowed for share-based compensation | $ 0 | |||||||||
Edward Jones, III [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Term of license agreement (in years) | 2 years | |||||||||
Aggregate shares of common stock issued | 28,334 | 50,000 | ||||||||
Share-based compensation vested immediately (in shares) | 14,167 | 25,000 | ||||||||
Compensation expense related to stock options | $ 79,000 | |||||||||
Consulting fees for period | $ 75,000 | $ 75,000 | ||||||||
Additional compensation owed | $ 0 | $ 0 | ||||||||
Edward Jones, III [Member] | To be Vested in Jan-31-2018 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Share-based compensation vested after one year (in shares) | 25,000 | 14,167 | ||||||||
Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Directors ownership percentage of related party | 25.00% | |||||||||
Expiration date of royalty agreement | December 31, 2020 | |||||||||
Minimum share price allowed for share-based compensation | $ 7 | |||||||||
Contractual design fees due in second year | $ 2,400,000 | |||||||||
Contractual design fees due in third year | 2,400,000 | |||||||||
Contractual design fees due in fourth year | $ 2,400,000 | |||||||||
Benjamin Malka [Member] | Licensing Agreements [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
License expiration date | Dec. 31, 2019 | |||||||||
Percentage of royalties | 50.00% | |||||||||
Minimum royalties required to be paid per quarter | $ 1,000,000 | |||||||||
Remaining contractually required guaranteed minimum royalties first twelve months | 750,000 | 750,000 | ||||||||
Remaining contractually required guaranteed minimum royalties in two years | 750,000 | 750,000 | ||||||||
Remaining contractually required guaranteed minimum royalties in three years | 1,500,000 | 1,500,000 | ||||||||
Remaining contractually required guaranteed minimum royalties in four years | $ 1,750,000 | $ 1,750,000 | ||||||||
H Halston [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of royalties | 50.00% | |||||||||
Multiplying factor (in percent) | 400.00% | 400.00% | ||||||||
Preceding trading days | 5 days | |||||||||
Highline Collective [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of royalties | 25.00% | |||||||||
Subsequent Developed Brand [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of royalties | 20.00% | |||||||||
Private Label Brand [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of royalties | 10.00% | |||||||||
Halston Operating Company [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Initial term of license and supply agreement | January 31, 2022 | |||||||||
Design fees | $ 1,200,000 | |||||||||
Contractual design fees due in first year | $ 2,400,000 | |||||||||
Receivable from related party | 1,500,000 | 1,500,000 | ||||||||
Halston Operating Company [Member] | License [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue recorded for license fees | 2,000,000 | $ 1,400,000 | ||||||||
The H Company IP, LLC [Member] | Benjamin Malka [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Receivable from related party | 200,000 | $ 200,000 | ||||||||
Royalty expense recorded as reduction to net revenue | $ 0 | $ 9,000 |
Subsequent Events - Acquisitio
Subsequent Events - Acquisition of the Halston Heritage Brands (Details) - Subsequent Event [Member] | Feb. 11, 2019USD ($)shares |
Subsequent Event [Line Items] | |
Minimum deduction from net royalties | $ 1,500,000 |
Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Cash payments delivered to seller at closing | 8,400,000 |
Maximum aggregate earn out value eligible to seller | $ 6,000,000 |
Common Stock [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Shares issued to seller at closing | shares | 777,778 |
Percentage of aggregate shares outstanding | 4.99% |
50% of the first $10,000,000 of Excess Net Royalties [Member] | |
Subsequent Event [Line Items] | |
Applicable percentage | 50.00% |
20% of aggregate Excess Net Royalties greater than $10,000,000 and up to $15,000,000 [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Applicable percentage | 20.00% |
0% of aggregate Excess Net Royalties in excess of $15,000,000 [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Applicable percentage | 0.00% |
Minimum [Member] | 20% of aggregate Excess Net Royalties greater than $10,000,000 and up to $15,000,000 [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Excess net royalties target sales | $ 10,000,000 |
Minimum [Member] | 0% of aggregate Excess Net Royalties in excess of $15,000,000 [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Excess net royalties target sales | 15,000,000 |
Maximum [Member] | 50% of the first $10,000,000 of Excess Net Royalties [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Excess net royalties target sales | 10,000,000 |
Maximum [Member] | 20% of aggregate Excess Net Royalties greater than $10,000,000 and up to $15,000,000 [Member] | Halston Heritage Brands [Member] | |
Subsequent Event [Line Items] | |
Excess net royalties target sales | $ 15,000,000 |
Subsequent Events - Second Ame
Subsequent Events - Second Amended and Restated Loan and Security Agreement (Details) - USD ($) | Feb. 11, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 10, 2019 |
Term Loan [Member] | ||||
Subsequent Event [Line Items] | ||||
Excess cash flow fee | 10.00% | |||
Term Loan [Member] | Second Amended And Restated Loan And Security Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Capital expenditures | $ 1,700,000 | |||
Subsequent Event [Member] | Second Amended And Restated Loan And Security Agreement [Member] | Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Capacity to convert to incremental term loans, minimum amount | $ 5,000,000 | |||
Subsequent Event [Member] | Second Amended And Restated Loan And Security Agreement [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Subsequent Event [Member] | Term Loan [Member] | Debt Termination Period, After Third Anniversary [Member] | ||||
Subsequent Event [Line Items] | ||||
Termination fee | 0.00% | |||
Subsequent Event [Member] | Term Loan [Member] | Existing Loan Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount | $ 15,500,000 | |||
Subsequent Event [Member] | Term Loan [Member] | Additional Term Loan [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount | $ 7,500,000 | |||
Subsequent Event [Member] | Term Loan [Member] | Second Amended And Restated Loan And Security Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount | 22,000,000 | |||
Payment of upfront fee | 90,000 | |||
Net worth | 90,000,000 | |||
Liquid assets | 5,000,000 | |||
Capital expenditures | 700,000 | |||
Subsequent Event [Member] | Term Loan [Member] | Term Loan A [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount | $ 7,300,000 | |||
Fixed rate | 5.10% | |||
Subsequent Event [Member] | Term Loan [Member] | Term Loan A [Member] | Debt Termination Period, On Or Before Second Anniversary [Member] | ||||
Subsequent Event [Line Items] | ||||
Termination fee | 1.00% | |||
Subsequent Event [Member] | Term Loan [Member] | Term Loan A [Member] | Debt Termination Period, After Second Anniversary But Before Third Anniversary [Member] | ||||
Subsequent Event [Line Items] | ||||
Termination fee | 0.50% | |||
Subsequent Event [Member] | Term Loan [Member] | Term Loan B [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount | $ 14,800,000 | |||
Fixed rate | 6.25% | |||
Subsequent Event [Member] | Term Loan [Member] | Term Loan B [Member] | Debt Termination Period, On Or Before Second Anniversary [Member] | ||||
Subsequent Event [Line Items] | ||||
Termination fee | 2.00% | |||
Subsequent Event [Member] | Term Loan [Member] | Term Loan B [Member] | Debt Termination Period, After Second Anniversary But Before Third Anniversary [Member] | ||||
Subsequent Event [Line Items] | ||||
Termination fee | 1.00% |
Subsequent Events - Schedule o
Subsequent Events - Schedule of Quarterly Installment Payments (Details) - Subsequent Event [Member] - Term Loan [Member] $ in Thousands | Feb. 11, 2019USD ($) |
Term Loan A [Member] | |
Period | |
June 30, 2019 | $ 1,000 |
September 30, 2019 | 1,000 |
December 31, 2019 | 1,000 |
March 31, 2020 | 1,000 |
June 30, 2020 | 1,000 |
September 30, 2020 | 1,000 |
December 31, 2020 | 1,250 |
Term Loan B [Member] | |
Period | |
March 31, 2020 | 250 |
June 30, 2020 | 250 |
September 30, 2020 | 250 |
March 31, 2021 | 1,125 |
June 30, 2021 | 1,125 |
September 30, 2021 | 1,125 |
December 31, 2021 | 1,125 |
March 31, 2022 | 1,125 |
June 30, 2022 | 1,125 |
September 30, 2022 | 1,125 |
December 31, 2022 | 1,125 |
March 31, 2023 | 1,250 |
June 30, 2023 | 1,250 |
September 30, 2023 | 1,250 |
December 31, 2023 | $ 1,250 |
Subsequent Events - Schedule_2
Subsequent Events - Schedule of Fixed Charge Coverage Ratios and Leverage Ratios (Details) - Subsequent Event [Member] - Term Loan [Member] - Second Amended And Restated Loan And Security Agreement [Member] | Feb. 11, 2019 |
December 31, 2018 [Member] | |
Subsequent Event [Line Items] | |
Maximum Leverage Ratio | 2.90 |
December 31, 2019 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1.05 |
Maximum Leverage Ratio | 2.40 |
March 31, 2020 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1.05 |
Maximum Leverage Ratio | 2.40 |
June 30, 2020 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1.05 |
Maximum Leverage Ratio | 2.40 |
September 30, 2020 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1.05 |
Maximum Leverage Ratio | 2.40 |
December 31, 2020 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1,100 |
Maximum Leverage Ratio | 1.70 |
March 31, 2021 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1,100 |
Maximum Leverage Ratio | 1.70 |
June 30, 2021 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1,100 |
Maximum Leverage Ratio | 1.70 |
September 30, 2021 [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1,100 |
Maximum Leverage Ratio | 1.70 |
December 31, 2021 and Thereafter [Member] | |
Subsequent Event [Line Items] | |
Fixed Charge Coverage Ratio | 1,100 |
Maximum Leverage Ratio | 1.50 |
Subsequent Events - Employment
Subsequent Events - Employment Agreements with Executives (Details) - USD ($) | Feb. 28, 2019 | Jun. 30, 2020 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Stock options granted (in shares) | 250,000 | ||
Exercise price of options grants (in dollars per share) | $ 3.34 | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | |||
Subsequent Event [Line Items] | |||
Initial employment contractual term | 3 years | ||
Employment renewal term | 1 year | ||
Employment termination period | 90 days | ||
Annual base salary | $ 900,000 | ||
Stock options granted (in shares) | 2,578,947 | ||
Exercise price of options grants (in dollars per share) | $ 1.70 | ||
Payment period for lump sum severance | 2 years | ||
Labor And Related Expense, Lump Sump Multiple, Severance | 200.00% | ||
Base period for termination bonus | 12 months | ||
Termination period in the event of a change in control | 12 months | ||
Multiple used used in lump sum calculation | 200.00% | ||
Amount deducted in sump sum calculation | $ 100 | ||
Non-compete period after termination | 1 year | ||
Employment period for officers, general managers, and other employees | 12 months | ||
Percentage of outstanding stock allowed | 5.00% | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Employee Stock Option [Member] | |||
Subsequent Event [Line Items] | |||
Expiration period for stock option after change in control. | 180 days | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Postemployment Health Coverage [Member] | |||
Subsequent Event [Line Items] | |||
Allowed period to participate in Company's group medical plan | 36 months | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Adjusted EBITDA [Member] | |||
Subsequent Event [Line Items] | |||
Annual bonus percentage | 5.00% | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Income Generated From Net Sales From E-Commerce Sales [Member] | |||
Subsequent Event [Line Items] | |||
Percentage threshold for annual bonus calculation | 3.00% | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Income Generated From Net Sales From Wholesale And Private Label Sales [Member] | |||
Subsequent Event [Line Items] | |||
Percentage threshold for annual bonus calculation | 7.00% | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Income Generated From Sales [Member] | |||
Subsequent Event [Line Items] | |||
Annual bonus percentage | 2.50% | ||
Income threshold use for annual bonus calculation | $ 8,000,000 | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | |||
Subsequent Event [Line Items] | |||
Initial employment contractual term | 2 years | ||
Employment renewal term | 1 year | ||
Employment termination period | 30 days | ||
Annual base salary | $ 400,000 | ||
Stock options granted (in shares) | 552,632 | ||
Exercise price of options grants (in dollars per share) | $ 1.70 | ||
Payment period for lump sum severance | 12 months | ||
Base period for termination bonus | 12 months | ||
Termination period in the event of a change in control | 12 months | ||
Non-compete period after termination | 1 year | ||
Employment period for officers, general managers, and other employees | 12 months | ||
Percentage of outstanding stock allowed | 5.00% | ||
Monthly automobile allowance | $ 1,500 | ||
Guaranteed portion of annual bonus | 40,000 | ||
Guaranteed portion of annual bonus paid | 10,000 | ||
Guaranteed portion of annual bonus payable | $ 30,000 | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | Employee Stock Option [Member] | |||
Subsequent Event [Line Items] | |||
Expiration period for stock option after change in control. | 180 days | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | Postemployment Health Coverage [Member] | |||
Subsequent Event [Line Items] | |||
Allowed period to participate in Company's group medical plan | 12 months | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | Adjusted EBITDA [Member] | |||
Subsequent Event [Line Items] | |||
Annual bonus percentage | 0.375% | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | Income Generated From Net Sales From E-Commerce Sales [Member] | |||
Subsequent Event [Line Items] | |||
Percentage threshold for annual bonus calculation | 3.00% | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | Income Generated From Net Sales From Wholesale And Private Label Sales [Member] | |||
Subsequent Event [Line Items] | |||
Percentage threshold for annual bonus calculation | 7.00% | ||
Subsequent Event [Member] | Chief Financial Officer [Member] | Income Generated From Sales [Member] | |||
Subsequent Event [Line Items] | |||
Annual bonus percentage | 0.23% | ||
Income threshold use for annual bonus calculation | $ 12,000,000 | ||
Subsequent Event [Member] | President [Member] | |||
Subsequent Event [Line Items] | |||
Initial employment contractual term | 2 years | ||
Employment renewal term | 1 year | ||
Employment termination period | 30 days | ||
Annual base salary | $ 600,000 | ||
Payment period for lump sum severance | 6 months | ||
Base period for termination bonus | 6 months | ||
Termination period in the event of a change in control | 12 months | ||
Non-compete period after termination | 1 year | ||
Employment period for officers, general managers, and other employees | 12 months | ||
Percentage of outstanding stock allowed | 5.00% | ||
Subsequent Event [Member] | President [Member] | Employee Stock Option [Member] | |||
Subsequent Event [Line Items] | |||
Expiration period for stock option after change in control. | 180 days | ||
Subsequent Event [Member] | President [Member] | Postemployment Health Coverage [Member] | |||
Subsequent Event [Line Items] | |||
Allowed period to participate in Company's group medical plan | 6 months | ||
Maximum [Member] | Subsequent Event [Member] | President [Member] | |||
Subsequent Event [Line Items] | |||
Maximum amount eligible for performance cash bonus | $ 400,000 | ||
Maximum amount eligible for performance stock bonus value | $ 100,000 | ||
Scenario, Forecast [Member] | Subsequent Event [Member] | Chief Financial Officer [Member] | |||
Subsequent Event [Line Items] | |||
Guaranteed portion of annual bonus payable | $ 30,000 |
Subsequent Events - Schedule_3
Subsequent Events - Schedule of Common Stock Target Prices, CEO (Details) - Subsequent Event [Member] - Chief Executive Officer [Member] | Feb. 28, 2019$ / sharesshares |
$3.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, lower range (in dollars per share) | $ 3 |
Target Prices, upper range (in dollars per share) | $ 3 |
Number of Option Shares Vesting | shares | 736,842 |
$5.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, lower range (in dollars per share) | $ 5 |
Target Prices, upper range (in dollars per share) | $ 5 |
Number of Option Shares Vesting | shares | 626,316 |
$7.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, lower range (in dollars per share) | $ 7 |
Target Prices, upper range (in dollars per share) | $ 7 |
Number of Option Shares Vesting | shares | 515,789 |
$9.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, lower range (in dollars per share) | $ 9 |
Target Prices, upper range (in dollars per share) | $ 9 |
Number of Option Shares Vesting | shares | 405,263 |
$11.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, lower range (in dollars per share) | $ 11 |
Target Prices, upper range (in dollars per share) | $ 11 |
Number of Option Shares Vesting | shares | 294,737 |
Subsequent Events - Schedule_4
Subsequent Events - Schedule of Common Stock Target Prices, CFO (Details) - Chief Financial Officer [Member] - Subsequent Event [Member] | Feb. 28, 2019$ / sharesshares |
$3.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, upper range (in dollars per share) | $ 3 |
Target Prices, lower range (in dollars per share) | $ 3 |
Number of Option Shares Vesting | shares | 157,895 |
$5.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, upper range (in dollars per share) | $ 5 |
Target Prices, lower range (in dollars per share) | $ 5 |
Number of Option Shares Vesting | shares | 134,211 |
$7.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, upper range (in dollars per share) | $ 7 |
Target Prices, lower range (in dollars per share) | $ 7 |
Number of Option Shares Vesting | shares | 110,526 |
$9.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, upper range (in dollars per share) | $ 9 |
Target Prices, lower range (in dollars per share) | $ 9 |
Number of Option Shares Vesting | shares | 86,842 |
$11.00 [Member] | |
Subsequent Event [Line Items] | |
Target Prices, upper range (in dollars per share) | $ 11 |
Target Prices, lower range (in dollars per share) | $ 11 |
Number of Option Shares Vesting | shares | 63,158 |
Subsequent Events - Schedule_5
Subsequent Events - Schedule of Bonus Payout Levels (Details) - President [Member] - Subsequent Event [Member] $ in Thousands | Feb. 28, 2019USD ($) |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Cash Bonus | $ 400 |
$ value of Stock Bonus | 100 |
$242,500,000 - $250,000,000 [Member] | |
Subsequent Event [Line Items] | |
Cash Bonus | 90 |
$ value of Stock Bonus | 24 |
$250,000,001 - $257,500,000 [Member] | |
Subsequent Event [Line Items] | |
Cash Bonus | 180 |
$ value of Stock Bonus | 45 |
$257,500,001 - $265,000,000 [Member] | |
Subsequent Event [Line Items] | |
Cash Bonus | 270 |
$ value of Stock Bonus | 68 |
$265,000,001 or more [Member] | |
Subsequent Event [Line Items] | |
Cash Bonus | 360 |
$ value of Stock Bonus | 90 |
License [Member] | $242,500,000 - $250,000,000 [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | 242,500 |
License [Member] | $242,500,000 - $250,000,000 [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | 250,000 |
License [Member] | $250,000,001 - $257,500,000 [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | 250,000 |
License [Member] | $250,000,001 - $257,500,000 [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | 257,500 |
License [Member] | $257,500,001 - $265,000,000 [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | 257,500 |
License [Member] | $257,500,001 - $265,000,000 [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | 265,000 |
License [Member] | $265,000,001 or more [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
2019 Gross DRT Sales Level | $ 265,000 |