Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Aug. 31, 2015 | Sep. 30, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Maiden Lane Jewelry, Ltd. | |
Entity Central Index Key | 1,574,097 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | MDNL | |
Entity Common Stock, Shares Outstanding | 10,494,428 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 31, 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED BALANCE SHEET
CONDENSED BALANCE SHEET - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Current Assets: | ||
Cash and Cash Equivalents | $ 4,029 | $ 41,731 |
Accounts Receivable, Net | 4,549,763 | 3,991,158 |
Inventories | 3,054,861 | 2,589,231 |
Prepaid Expenses | 187,683 | 187,230 |
Deferred Taxes | 137,600 | 122,300 |
Total Current Assets | 7,933,936 | 6,931,650 |
Property and Equipment, Net | 68,310 | 47,277 |
Security Deposits | 2,000 | 2,000 |
Total Assets | 8,004,246 | 6,980,927 |
Current Liabilities: | ||
Accounts Payable | 2,929,852 | 2,009,072 |
Accrued Expenses | 70,451 | 30,220 |
Loans Payable - Factor | 2,708,852 | 2,242,399 |
Loans Payable - Related Parties, net of discount of $12,935 at August 31, 2015 and $4,825 at May 31, 2015 | 526,397 | 797,007 |
Convertible Note Payable - Related Party | 74,000 | 74,000 |
Income Taxes Payable | 39,105 | 48,687 |
Total Current Liabilities | 6,348,657 | 5,201,385 |
Long-Term Debt: | ||
Notes Payable, net of debt discount of $118,852 at August 31, 2015 and $141,804 at May 31, 2015 | 311,148 | 288,196 |
Notes Payable - Related Parties | 600,000 | 600,000 |
Total Liabilities | $ 7,259,805 | $ 6,089,581 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred Stock, $.0001 par value; 10,000,000 shares authorized, none issued and outstanding at August 31, 2015 and May 31, 2015 | $ 0 | $ 0 |
Common Stock, $.0001 par value; 50,000,000 shares authorized, 10,494,428 shares issued and outstanding at August 31, 2015 and May 31, 2015 | 1,049 | 1,049 |
Additional Paid-In Capital | 1,214,235 | 1,205,417 |
Accumulated Deficit | (470,843) | (315,120) |
Total Stockholders' Equity | 744,441 | 891,346 |
Total Liabilities and Stockholders' Equity | $ 8,004,246 | $ 6,980,927 |
CONDENSED BALANCE SHEET (Parent
CONDENSED BALANCE SHEET (Parenthetical) - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Preferred Stock, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 10,494,428 | 10,494,428 |
Common Stock, shares outstanding | 10,494,428 | 10,494,428 |
Notes Payable [Member] | ||
Debt Instrument, Unamortized Discount | $ 118,852 | $ 141,804 |
Loans Payable [Member] | ||
Debt Instrument, Unamortized Discount | $ 12,935 | $ 4,825 |
CONDENSED STATEMENT OF OPERATIO
CONDENSED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Sales - Net | $ 2,397,825 | $ 1,829,784 |
Costs and Expenses: | ||
Cost of Sales | 1,950,315 | 1,511,876 |
Officer’s Compensation | 116,799 | 91,370 |
Professional and Consulting Fees | 140,180 | 168,002 |
Selling, General and Administrative Expenses | 273,782 | 153,331 |
Total Costs and Expenses | 2,481,076 | 1,924,579 |
(Loss) from Operations | (83,251) | (94,795) |
Other Income (Expense): | ||
Interest Expense - Related Party | (746) | (738) |
Interest Expense - Related Party Loans Payable | (6,707) | 0 |
Interest Expense - Notes Payable | (11,825) | (1,153) |
Interest Expense - Accounts Receivable Financings | (45,542) | (28,281) |
Amortization of Debt Discount | (22,952) | (1,689) |
Total Other Income and (Expenses) | (87,772) | (31,861) |
(Loss) before Income Tax (Benefit) | (171,023) | (126,656) |
Income Tax (Benefit) | (15,300) | (42,000) |
Net (Loss) | $ (155,723) | $ (84,656) |
(Loss) Per Common Share - Basic and Diluted | $ (0.01) | $ (0.01) |
Basic and Diluted Weighted Average Shares | 10,494,428 | 10,469,477 |
CONDENSED STATEMENT OF STOCKHOL
CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Aug. 31, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Beginning balance at May. 31, 2015 | $ 891,346 | $ 1,049 | $ 1,205,417 | $ (315,120) |
Beginning balance, Shares at May. 31, 2015 | 10,494,428 | |||
Debt Discount on Notes Payable | 8,818 | $ 0 | 8,818 | 0 |
Net Loss for the three months ended August 31, 2015 | (155,723) | 0 | 0 | (155,723) |
Ending balance at Aug. 31, 2015 | $ 744,441 | $ 1,049 | $ 1,214,235 | $ (470,843) |
Ending balance, Shares at Aug. 31, 2015 | 10,476,854 |
CONDENSED STATEMENT OF CASH FLO
CONDENSED STATEMENT OF CASH FLOWS - USD ($) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net (Loss) | $ (155,723) | $ (84,656) |
Adjustments to Reconcile Net (Loss) to Net Cash (Used) in Operating Activities: | ||
Depreciation | 1,314 | 1,091 |
Amortization of Note Discount | 23,661 | 1,689 |
Deferred Taxes | (15,300) | (42,000) |
Reserve for Doubtful Accounts and Sales Returns and Allowances | 24,865 | 92,708 |
Changes in Assets and Liabilities: | ||
(Increase) in Accounts Receivable | (583,471) | (885,700) |
(Increase) in Other Receivables | 0 | (418,489) |
(Increase) Decrease in Inventories | (465,631) | 269,178 |
(Increase) Decrease in Prepaid Expenses | (452) | 26,876 |
Increase (Decrease) in Accounts Payable | 920,780 | (106,706) |
Increase (Decrease) in Accrued Expenses | 40,231 | (6,512) |
(Decrease) in Income Taxes Payable | (9,582) | 0 |
Net Cash (Used) in Operating Activities | (219,308) | (1,152,521) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (22,348) | (5,444) |
Net Cash (Used) In Investing Activities | (22,348) | (5,444) |
Cash Flows from Financing Activities: | ||
Proceeds of Note Issuance | 0 | 400,000 |
Proceeds of Loans Payable - Related Parties | 464,000 | 306,000 |
Payments of Loans Payable - Related Parties | (726,500) | (106,000) |
Proceeds from Loans Payable - Factor | 2,340,906 | 1,674,632 |
Repayments to Loans Payable - Factor | (1,874,451) | (1,042,135) |
Net Cash Provided by In Financing Activities | 203,955 | 1,232,497 |
Increase (Decrease) in Cash and Cash Equivalents | (37,701) | 74,532 |
Cash and Cash Equivalents - Beginning of Period | 41,731 | 15,269 |
Cash and Cash Equivalents - End of Period | 4,029 | 89,801 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest Paid | 58,856 | 26,255 |
Income Taxes Paid | 9,582 | 0 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Issuance of 10,604 shares of Common Stock as consideration for payment of obligation to issue common stock | 0 | 32,871 |
Notes Payable [Member] | ||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Debt Discount | 0 | 184,715 |
Loans Payable - Related Parties [Member] | ||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Debt Discount | $ 8,817 | $ 0 |
CONDENSED STATEMENT OF CASH FL7
CONDENSED STATEMENT OF CASH FLOWS (Parenthetical) - shares | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Stock Issued During Period, Shares, New Issues | 10,604 | 10,604 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Aug. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significant Accounting Policies Maiden Lane Jewelry, Ltd., formerly Romantique Ltd., (“the Company”) was incorporated on September 6, 2012 under the laws of the State of New York. The Company is a wholesaler and manufacturer of jewelry including pendants, bracelets and earrings. The Company began operations on October 1, 2012 by selling fashion rings, pendants, earrings and bracelets to independent retailers. In December 2012, the Company commenced a line of bridal (engagement) rings, featuring both settings and diamonds. In February 2014 the Company began the sale of bridal engagement rings featuring uniquely cut diamonds which in May 2014 was branded as an Aspiri TM In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the information set forth therein. These financial statements are condensed and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These condensed financial statements should be read in conjunction with the Company’s May 31, 2015 audited financial statements and notes included in Form 10-K filed on September 11, 2015. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company considers all highly-liquid investments purchased with a maturity of three months or less to be cash equivalents. As of August 31, 2015 and May 31, 2015, the Company did not have any cash equivalents. Raw materials are stated at the lower of cost or market, with cost determined by specific identification for unique items (such as diamond stones, each with a particular carat weight, color, clarity and cut) and using the first-in, first-out method for generic items or styles (certain semi-mounts and fashion jewelry). Finished goods the Company fabricates are stated at the lower of cost or market, with cost determined by specific identification for each component making up the item plus direct labor and other fees (primarily diamond certification). Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the related assets, which is generally five years. For revenue from product sales, the Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (SAB No. 104), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB No. 101). SAB No. 104 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowance, and other adjustments are provided for in the same period the related sales are recorded. Provision for sales returns and allowances that were netted against sales amounted to $ 25,000 93,000 The Company primarily sells its products to retail jewelers focused on mid-to-high end consumers. Customers typically receive payment terms of ratable monthly payments over 90 to 120 days with exceptions based on credit quality, seasonality or other terms and conditions. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company may maintain cash balances at financial institutions which exceed the current Federal Deposit Insurance Corporation (“FDIC”) limit of $ 250,000 The Company’s sales are comprised of primarily three major products: Aspiri cut jewelry (primarily engagement rings), Complete Rings (not Aspiri) and Fashion Jewelry. The Company may also on occasion sell loose stone jewelry. Three Months Ended August 31, 2015 2014 (unaudited) (unaudited) Aspiri TM 41 % 34 % Complete Rings (not Aspiri) 30 47 Fashion Jewelry & Other 29 19 In February 2014 the Company began the sale of Aspiri bridal engagement rings. The first full quarter of Aspiri sales occurred during the three months ended May 31, 2104; at this initial roll-out of the Aspiri product line, there was less of a focus on the sales of non-Aspiri products. At the end of February 2015, the Company decided to phase out our line of fashion jewelry in order to focus on its Aspiri cut diamond engagement rings, pendants and jewelry. The Company expanded its Aspiri cut diamond line in November 2014 to include pendants and earrings. Three Months Ended August 31, 2015 2014 (unaudited) (unaudited) Aspiri Engagement Rings 38 % 34 % Aspiri Engagement Pendants 2 0 Aspiri Engagement Earrings 1 0 Advertising and show costs are charged to operations when incurred. Advertising costs during the three months ended August 31, 2015 and August 31, 2014 were $ 81,000 49,000 The Company accounts for deferred income taxes using the asset and liability method, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax bases of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the periods presented. Diluted loss per common share is computed by dividing net loss by the weighted average number of dilutive common share equivalents and convertible securities then outstanding. Diluted loss per common share is based on the treasury stock method and includes the effect from potential issuance of common stock such as shares issuable pursuant to the exercise of warrants and conversion of debentures. Potentially dilutive securities as of August 31, 2015 consisted of 37,000 122,550 430,000 3.50 37,000 114,000 400,000 3.50 The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates. Management uses its best judgment in valuing these estimates, and may, as warranted, solicit external professional advice and other assumptions believed to be reasonable. The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, or which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities. The Company's financial instruments include cash and cash equivalents, accounts receivable, accounts payable and loans and notes payable. These items are determined to be a Level 1 fair value measurement. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and loans payable approximates fair value because of the short maturity of these instruments. The recorded value of long-term debt approximates its fair value as the terms and rates approximate market rates. Management does not believe there would have been a material effect on the accompanying financial statements had any recently issued, but not yet effective, accounting standards been adopted in the current period. |
Inventories
Inventories | 3 Months Ended |
Aug. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2 - Inventories Inventories consist of the following: August 31, 2015 May 31, 2015 (unaudited) Raw Materials $ 1,118,937 $ 775,312 Finished Goods 1,935,924 1,813,919 Total Inventory $ 3,054,861 $ 2,589,231 Inventories are pledged as security for the Company’s Accounts Receivable Financing Agreement (see Note 9). |
Property and Equipment
Property and Equipment | 3 Months Ended |
Aug. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 3 - Property and Equipment August 31, 2015 May 31, 2015 (unaudited) Office Equipment $ 16,349 $ 16,349 Computers $ 4,808 $ 4,808 Capitalized Software 57,528 35,181 78,685 56,338 Less: Accumulated Depreciation 10,375 9,061 $ 68,310 $ 47,277 The Company is capitalizing new software related to inventory management and production. The cost of this software includes a base package cost plus current customization. Once the software is fully implemented, the Company will depreciate the total cost of the software over five years. Depreciation expense was approximately $ 1,300 1,100 |
Convertible Note Payable - Rela
Convertible Note Payable - Related Party | 3 Months Ended |
Aug. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable - Related Party | NOTE 4 - Convertible Note Payable Related Party Convertible note payable to the Company’s president is summarized as follows: August 31, 2014 May 31, 2015 (unaudited) Note Payable, bearing interest at 4% per annum, and due December 31, 2015. The note is Convertible into shares of the Company’s Common stock at a conversion rate of $2 per share, subject to adjustment upon the occurrence of certain events including stock dividends, stock split or combinations and reclassifications. $ 74,000 $ 74,000 |
Loans Payable - Related Parties
Loans Payable - Related Parties | 3 Months Ended |
Aug. 31, 2015 | |
Debt Disclosure [Abstract] | |
Loans Payable - Related Parties | NOTE 5 - Loans Payable Related Parties August 31, 2015 May 31, 2015 (unaudited) Loans payable to related parties include primarily loans payable to the Company’s President and CFO. The loans are payable on demand and non-interest bearing. Interest has been imputed at 3.25% per annum and the Company has recorded a debt discount of $25,539 against Additional Paid-In Capital. This discount is being amortized over two years. $ 539,332 $ 801,832 Less: Unamortized discount (12,935) (4,825) Loans Payable Related Parties, Net $ 526,397 $ 797,007 A portion of this loan payable to the Company’s President and CFO in the amount of $ 210,000 |
Notes Payable - Related Parties
Notes Payable - Related Parties | 3 Months Ended |
Aug. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable - Related Parties | NOTE 6 - Notes Payable Related Parties August 31, 2015 May 31, 2015 (unaudited) Notes payable to the Company’s President and CFO bears interest at 4% per annum and is due December 31, 2016. Interest is payable quarterly and note is subordinated to the Factor. $ 600,000 $ 600,000 |
Unsecured Notes Payable
Unsecured Notes Payable | 3 Months Ended |
Aug. 31, 2015 | |
Payables and Accruals [Abstract] | |
Unsecured Notes Payable | NOTE 7 - Unsecured Notes Payable On August 18, 2014, August 25, 2014 and September 15, 2014 the Company issued $ 250,000 150,000 30,000 11 285 1,000 3.50 Pursuant to ASC 470-20, the Company recorded the value of the warrants using the Black-Scholes method, which was determined to be approximately $ 369,000 199,000 23,000 1,700 August 31, 2015 May 31, 2015 (unaudited) Notes Payable, Par $ 430,000 $ 430,000 Initial Debt Discount (198,557) (198,557) Accumulated Amortization 79,705 56,753 Notes Payable, Net $ 311,148 $ 288,196 Dividend yield 0.00 % Volatility 310.78 % Risk-free interest rate 2.40 % Expected life (months) 120 Grant date price per share $ 3.01 Warrants issued 122,550 Aggregate grant date fair value $ 369,000 |
Financing Agreement
Financing Agreement | 3 Months Ended |
Aug. 31, 2015 | |
Payables and Accruals [Abstract] | |
Financing Agreement | NOTE 8 - Financing Agreement On September 30, 2013 the Company entered into an Account Receivable Financing Agreement with Rosenthal & Rosenthal, Inc. (“Rosenthal” or the “Factor”) pursuant to which Rosenthal shall provide the Company with a line of credit up to $ 1,000,000 2,000,000 3.5 7.5 Accounts Payable Classique Creations, LLC $ 500,000 Demand Loans Payable Yitzchok Gurary $ 210,000 In connection with the Accounts Receivable Finance Agreement, the Company has borrowed approximately $ 2.7 2.3 1.9 On March 9, 2015, this Accounts Receivable Financing Agreement was amended to increase the line of credit up to a maximum of $ 2,500,000 70 2,800,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Aug. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 - Commitments and Contingencies None. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Aug. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On October 1, 2012 the Company entered into a one-year consulting agreement with Isaac Gurary, under which he was to provide certain business and corporate marketing services to the Company for an annual consulting fee of 3 77,000 63,000 During the three months ended August 31, 2015 and 2014, the Company purchased approximately 64 43 Included in accounts payable at August 31, 2015 and May 31, 2015 are amounts owed to Classique totaling approximately $ 2.6 1.8 500,000 The Company rents office space from a Company affiliated with the Company’s president on a month to month basis. The agreement calls for rent at $ 2,060 7,000 6,000 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Aug. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11 - Stockholders’ Equity On August 4, 2014 the Company issued 10,604 3.10 32,871 In connection with the issuance of $ 430,000 122,550 3.50 3.50 9.0 The Company’s Board of Directors may issue shares of preferred stock in series and at the time of issuance, determine the rights, preferences and limitation of each series. The holders of preferred stock may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding-up of the Company before any payment is made to the holders of the common stock. Furthermore, the board of directors could issue preferred stock with voting and other rights that could adversely affect the voting power of the holders of the common stock. |
Major Suppliers and Customers
Major Suppliers and Customers | 3 Months Ended |
Aug. 31, 2015 | |
Major Suppliers And Customers [Abstract] | |
Major Suppliers and Customers | NOTE 12 - Major Suppliers and Customers During the three months ended August 31, 2015 and August 31, 2014, the Company purchased approximately $ 1.7 64 538,000 43 In addition, the Company purchased merchandise from one vendor which amounted to approximately 36 Our three largest customers frequently vary from period to period. For the three months ended August 31, 2015, our three largest customers accounted for approximately 27 34 |
Income Taxes
Income Taxes | 3 Months Ended |
Aug. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 - Income Taxes Our effective tax rates were approximately 0 0 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Aug. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 - Subsequent Events On September 18, 2015, the Company entered into a Separation and Release Agreement with Samantha Manburg, the Company’s Chief Operating Officer. Pursuant to the Separation and Release Agreement, Ms. Manburg is resigning as the Chief Operating Officer for the Company, effective November 13, 2015. In accordance with the terms of such agreement, Ms. Manburg will receive a severance allowance of approximately $36,000. The Company appointed Yitzchok Gurary, 31, to serve as the Company’s Chief Operating Officer, which appointment shall take effect as of the effective date of Ms. Manburg’s resignation. The Company has evaluated subsequent events through the date the financial statements were issued and up to the time of filing of the financial statements with the Securities and Exchange Commission. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Aug. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Maiden Lane Jewelry, Ltd., formerly Romantique Ltd., (“the Company”) was incorporated on September 6, 2012 under the laws of the State of New York. The Company is a wholesaler and manufacturer of jewelry including pendants, bracelets and earrings. The Company began operations on October 1, 2012 by selling fashion rings, pendants, earrings and bracelets to independent retailers. In December 2012, the Company commenced a line of bridal (engagement) rings, featuring both settings and diamonds. In February 2014 the Company began the sale of bridal engagement rings featuring uniquely cut diamonds which in May 2014 was branded as an Aspiri TM In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the information set forth therein. These financial statements are condensed and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These condensed financial statements should be read in conjunction with the Company’s May 31, 2015 audited financial statements and notes included in Form 10-K filed on September 11, 2015. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with a maturity of three months or less to be cash equivalents. As of August 31, 2015 and May 31, 2015, the Company did not have any cash equivalents. |
Inventories | Inventories Raw materials are stated at the lower of cost or market, with cost determined by specific identification for unique items (such as diamond stones, each with a particular carat weight, color, clarity and cut) and using the first-in, first-out method for generic items or styles (certain semi-mounts and fashion jewelry). Finished goods the Company fabricates are stated at the lower of cost or market, with cost determined by specific identification for each component making up the item plus direct labor and other fees (primarily diamond certification). |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the related assets, which is generally five years. |
Revenue Recognition | Revenue Recognition For revenue from product sales, the Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (SAB No. 104), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB No. 101). SAB No. 104 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowance, and other adjustments are provided for in the same period the related sales are recorded. Provision for sales returns and allowances that were netted against sales amounted to $ 25,000 93,000 |
Concentration of Credit Risks | Concentration of Credit Risks The Company primarily sells its products to retail jewelers focused on mid-to-high end consumers. Customers typically receive payment terms of ratable monthly payments over 90 to 120 days with exceptions based on credit quality, seasonality or other terms and conditions. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company may maintain cash balances at financial institutions which exceed the current Federal Deposit Insurance Corporation (“FDIC”) limit of $ 250,000 |
Sales | Sales The Company’s sales are comprised of primarily three major products: Aspiri cut jewelry (primarily engagement rings), Complete Rings (not Aspiri) and Fashion Jewelry. The Company may also on occasion sell loose stone jewelry. Three Months Ended August 31, 2015 2014 (unaudited) (unaudited) Aspiri TM 41 % 34 % Complete Rings (not Aspiri) 30 47 Fashion Jewelry & Other 29 19 In February 2014 the Company began the sale of Aspiri bridal engagement rings. The first full quarter of Aspiri sales occurred during the three months ended May 31, 2104; at this initial roll-out of the Aspiri product line, there was less of a focus on the sales of non-Aspiri products. At the end of February 2015, the Company decided to phase out our line of fashion jewelry in order to focus on its Aspiri cut diamond engagement rings, pendants and jewelry. The Company expanded its Aspiri cut diamond line in November 2014 to include pendants and earrings. Three Months Ended August 31, 2015 2014 (unaudited) (unaudited) Aspiri Engagement Rings 38 % 34 % Aspiri Engagement Pendants 2 0 Aspiri Engagement Earrings 1 0 |
Advertising Costs | Advertising Costs Advertising and show costs are charged to operations when incurred. Advertising costs during the three months ended August 31, 2015 and August 31, 2014 were $ 81,000 49,000 |
Deferred Income Taxes | Deferred Income Taxes The Company accounts for deferred income taxes using the asset and liability method, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax bases of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the periods presented. Diluted loss per common share is computed by dividing net loss by the weighted average number of dilutive common share equivalents and convertible securities then outstanding. Diluted loss per common share is based on the treasury stock method and includes the effect from potential issuance of common stock such as shares issuable pursuant to the exercise of warrants and conversion of debentures. Potentially dilutive securities as of August 31, 2015 consisted of 37,000 122,550 430,000 3.50 37,000 114,000 400,000 3.50 |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates. Management uses its best judgment in valuing these estimates, and may, as warranted, solicit external professional advice and other assumptions believed to be reasonable. |
Fair Value Measurements | Fair Value Measurements The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, or which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities. The Company's financial instruments include cash and cash equivalents, accounts receivable, accounts payable and loans and notes payable. These items are determined to be a Level 1 fair value measurement. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and loans payable approximates fair value because of the short maturity of these instruments. The recorded value of long-term debt approximates its fair value as the terms and rates approximate market rates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe there would have been a material effect on the accompanying financial statements had any recently issued, but not yet effective, accounting standards been adopted in the current period. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | A breakdown of gross sales for the three months ended August 31, 2015 and 2014, respectively: Three Months Ended August 31, 2015 2014 (unaudited) (unaudited) Aspiri TM 41 % 34 % Complete Rings (not Aspiri) 30 47 Fashion Jewelry & Other 29 19 A breakdown of Aspiri jewelry to gross sales for the three months ended August 31, 2015 and 2014, respectively: Three Months Ended August 31, 2015 2014 (unaudited) (unaudited) Aspiri Engagement Rings 38 % 34 % Aspiri Engagement Pendants 2 0 Aspiri Engagement Earrings 1 0 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: August 31, 2015 May 31, 2015 (unaudited) Raw Materials $ 1,118,937 $ 775,312 Finished Goods 1,935,924 1,813,919 Total Inventory $ 3,054,861 $ 2,589,231 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consists of the following: August 31, 2015 May 31, 2015 (unaudited) Office Equipment $ 16,349 $ 16,349 Computers $ 4,808 $ 4,808 Capitalized Software 57,528 35,181 78,685 56,338 Less: Accumulated Depreciation 10,375 9,061 $ 68,310 $ 47,277 |
Convertible Note Payable - Re26
Convertible Note Payable - Related Party (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible note payable | Convertible note payable to the Company’s president is summarized as follows: August 31, 2014 May 31, 2015 (unaudited) Note Payable, bearing interest at 4% per annum, and due December 31, 2015. The note is Convertible into shares of the Company’s Common stock at a conversion rate of $2 per share, subject to adjustment upon the occurrence of certain events including stock dividends, stock split or combinations and reclassifications. $ 74,000 $ 74,000 |
Loans Payable - Related Parti27
Loans Payable - Related Parties (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Loans Payable [Abstract] | |
Schedule of Loans Payable Related Party | Loans payable to related parties is summarized as follows: August 31, 2015 May 31, 2015 (unaudited) Loans payable to related parties include primarily loans payable to the Company’s President and CFO. The loans are payable on demand and non-interest bearing. Interest has been imputed at 3.25% per annum and the Company has recorded a debt discount of $25,539 against Additional Paid-In Capital. This discount is being amortized over two years. $ 539,332 $ 801,832 Less: Unamortized discount (12,935) (4,825) Loans Payable Related Parties, Net $ 526,397 $ 797,007 |
Notes Payable - Related Parti28
Notes Payable - Related Parties (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable to Related Parties | Notes payable to related parties is summarized as follows: August 31, 2015 May 31, 2015 (unaudited) Notes payable to the Company’s President and CFO bears interest at 4% per annum and is due December 31, 2016. Interest is payable quarterly and note is subordinated to the Factor. $ 600,000 $ 600,000 |
Unsecured Notes Payable (Tables
Unsecured Notes Payable (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Notes Payable | For the three months ended August 31, 2015 and 2014, the Company recognized approximately $ 23,000 1,700 August 31, 2015 May 31, 2015 (unaudited) Notes Payable, Par $ 430,000 $ 430,000 Initial Debt Discount (198,557) (198,557) Accumulated Amortization 79,705 56,753 Notes Payable, Net $ 311,148 $ 288,196 |
Schedule of Fair Value of the Warrants on the Issuance Date | The fair value of the warrants on the issuance date was calculated using the Black-Scholes method with the following weighted average assumptions: Dividend yield 0.00 % Volatility 310.78 % Risk-free interest rate 2.40 % Expected life (months) 120 Grant date price per share $ 3.01 Warrants issued 122,550 Aggregate grant date fair value $ 369,000 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 3 Months Ended |
Aug. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The Accounts Receivable Financing Agreement calls for the subordination of certain of the Company’s debt as follows: Accounts Payable Classique Creations, LLC $ 500,000 Demand Loans Payable Yitzchok Gurary $ 210,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Aspiri Cut Jewelry [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 41.00% | 34.00% |
Complete Rings [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 30.00% | 47.00% |
Fashion Jewelry and Other [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 29.00% | 19.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Aspiri Engagement Rings [Member] | ||
Concentration Risk, Percentage | 38.00% | 34.00% |
Aspiri Engagement Pendants [Member] | ||
Concentration Risk, Percentage | 2.00% | 0.00% |
Aspiri Engagement Earrings [Member] | ||
Concentration Risk, Percentage | 1.00% | 0.00% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Accounting Policies [Line Items] | ||
Sales Returns and Allowances, Goods | $ 25,000 | $ 93,000 |
Federal Deposit Insurance Corporation Premium Expense | 250,000 | |
Advertising Expense | $ 81,000 | $ 49,000 |
Debt Conversion, Converted Instrument, Shares Issued | 37,000 | 37,000 |
Debt Conversion, Original Debt, Amount | $ 430,000 | $ 400,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.50 | $ 3.50 |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | 1 |
Property, Plant and Equipment, Useful Life | 5 years | |
Class of Warrant or Right, Outstanding | 122,550 | 114,000 |
Description Of Customers Payment Terms | Customers typically receive payment terms of ratable monthly payments over 90 to 120 days with exceptions based on credit quality, seasonality or other terms and conditions. |
Inventories (Details)
Inventories (Details) - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Inventory [Line Items] | ||
Raw Materials | $ 1,118,937 | $ 775,312 |
Finished Goods | 1,935,924 | 1,813,919 |
Total Inventory | $ 3,054,861 | $ 2,589,231 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 78,685 | $ 56,338 |
Less: Accumulated Depreciation | 10,375 | 9,061 |
Property Plant And Equipment, Net | 68,310 | 47,277 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,349 | 16,349 |
Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,808 | 4,808 |
Capitalized Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 57,528 | $ 35,181 |
Property and Equipment (Detai36
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 1,300 | $ 1,100 |
Convertible Note Payable - Re37
Convertible Note Payable - Related Party (Details) - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Short-term Debt [Line Items] | ||
Note Payable, bearing interest at 4% per annum, and due December 31, 2015. The note is Convertible into shares of the Company’s Common stock at a conversion rate of $2 per share, subject to adjustment upon the occurrence of certain events including stock dividends, stock split or combinations and reclassifications. | $ 74,000 | $ 74,000 |
Convertible Note Payable - Re38
Convertible Note Payable - Related Party (Details Textual) | 3 Months Ended |
Aug. 31, 2015$ / shares | |
Short-term Debt [Line Items] | |
Debt Instrument, Maturity Date | Dec. 31, 2016 |
Convertible Notes Payable [Member] | |
Short-term Debt [Line Items] | |
Debt Instrument, Interest Rate, Effective Percentage | 4.00% |
Debt Instrument, Maturity Date | Dec. 31, 2015 |
Debt Instrument, Convertible, Conversion Price | $ 2 |
Loans Payable - Related Parti39
Loans Payable - Related Parties (Details) - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Related Party Transaction [Line Items] | ||
Loans Payable - Related Parties | $ 526,397 | $ 797,007 |
Loans Payable [Member] | ||
Related Party Transaction [Line Items] | ||
Less: Unamortized discount | (12,935) | (4,825) |
Loans Payable - Related Parties | 526,397 | 797,007 |
President [Member] | Loans Payable [Member] | ||
Related Party Transaction [Line Items] | ||
Loans Payable - Related Parties | $ 539,332 | $ 801,832 |
Loans Payable - Related Parti40
Loans Payable - Related Parties (Details Textual) | 3 Months Ended |
Aug. 31, 2015USD ($) | |
Related Party Transaction [Line Items] | |
Notes Payable, Related Parties | $ 210,000 |
President And Chief Financial Officer [Member] | |
Related Party Transaction [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% |
Adjustments to Additional Paid in Capital, Debt Discount on Loans Payable | $ 25,539 |
Debt Instrument, Convertible, Remaining Discount Amortization Period | 2 years |
Notes Payable - Related Parti41
Notes Payable - Related Parties (Details) - USD ($) | Aug. 31, 2015 | May. 31, 2015 |
Notes payable to the Company’s President and CFO bears interest at 4% per annum and is due December 31, 2016. Interest is payable quarterly and note is subordinated to the Factor. | $ 600,000 | $ 600,000 |
Notes Payable - Related Parti42
Notes Payable - Related Parties (Details Textual) | 3 Months Ended |
Aug. 31, 2015 | |
Debt Instrument, Maturity Date | Dec. 31, 2016 |
President And CFO [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |
Unsecured Notes Payable (Detail
Unsecured Notes Payable (Details) - USD ($) | Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 |
Unsecured Notes Payable [Line Items] | |||
Notes Payable, Net | $ 311,148 | $ 288,196 | |
Notes Payable [Member] | |||
Unsecured Notes Payable [Line Items] | |||
Notes Payable, Par | 430,000 | 430,000 | $ 430,000 |
Initial Debt Discount | (198,557) | (198,557) | |
Accumulated Amortization | 79,705 | 56,753 | |
Notes Payable, Net | $ 311,148 | $ 288,196 |
Unsecured Notes Payable (Deta44
Unsecured Notes Payable (Details 1) - Warrant [Member] - USD ($) | 1 Months Ended | 3 Months Ended |
Feb. 28, 2015 | Aug. 31, 2015 | |
Unsecured Notes Payable [Line Items] | ||
Dividend yield | 0.00% | |
Volatility | 310.78% | |
Risk-free interest rate | 2.40% | |
Expected life (months) | 120 months | |
Grant date price per share | $ 3.01 | |
Warrants issued | 122,550 | 122,550 |
Aggregate grant date fair value | $ 369,000 |
Unsecured Notes Payable (Deta45
Unsecured Notes Payable (Details Textual) | Aug. 25, 2014USD ($) | Sep. 15, 2014USD ($) | Aug. 18, 2014USD ($) | Aug. 31, 2015USD ($)$ / shares | Aug. 31, 2014USD ($)$ / shares | May. 31, 2015$ / shares | Feb. 28, 2015$ / shares |
Unsecured Notes Payable [Line Items] | |||||||
Warrants Exercisable Period | ten years | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.50 | $ 3.50 | |||||
Warrant [Member] | |||||||
Unsecured Notes Payable [Line Items] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.50 | $ 3.50 | $ 3.50 | ||||
Warrants and Rights Outstanding | $ 369,000 | ||||||
Debt Instrument, Unamortized Discount | 199,000 | ||||||
Amortization of Financing Costs | $ 23,000 | $ 1,700 | |||||
Unsecured Debt [Member] | |||||||
Unsecured Notes Payable [Line Items] | |||||||
Convertible Subordinated Debt | $ 150,000 | $ 30,000 | $ 250,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | 11.00% | 11.00% | ||||
Debt Instrument, Convertible, Number of Equity Instruments | 285 | 285 | 285 | ||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | $ 1,000 |
Financing Agreement (Details)
Financing Agreement (Details) - Accounts Receivable Financing Agreement [Member] | Aug. 31, 2015USD ($) |
Subordinated Borrowing [Line Items] | |
Accounts Payable - Classique Creations, LLC | $ 500,000 |
Demand Loans Payable - Yitzchok Gurary | $ 210,000 |
Financing Agreement (Details Te
Financing Agreement (Details Textual) - USD ($) | 3 Months Ended | |||||
Aug. 31, 2015 | Aug. 31, 2014 | Jun. 09, 2015 | Mar. 09, 2015 | Oct. 06, 2014 | Sep. 30, 2013 | |
Subordinated Borrowing [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | |||||
Debt Instrument, Maturity Date | Dec. 31, 2016 | |||||
Proceeds from Loans Payable - Factor | $ 2,340,906 | $ 1,674,632 | ||||
Repayments of Debt | $ 1,900,000 | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||
Debt Instrument, Interest Rate During Period | 7.50% | 7.50% | ||||
Line of Credit Facility, Increase (Decrease) for Period, Description | Company to the lesser of the Maximum Credit Facility (as defined in the Accounts Receivable Financing Agreement) or $600,000, minus such reserves Rosenthal & Rosenthal, Inc. may deem necessary | |||||
Percentage of Net Amount of Eligible Receivables | 70.00% | |||||
Accounts Receivable Financing Agreement [Member] | ||||||
Subordinated Borrowing [Line Items] | ||||||
Line Of Credit | $ 2,700,000 | $ 1,000,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,800,000 | $ 2,500,000 | ||||
Debt Instrument, Maturity Date | Sep. 30, 2015 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | May. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense | $ 2,060 | ||
Rent expense | 7,000 | $ 6,000 | |
Due to Related Parties, Current | 526,397 | $ 797,007 | |
Professional Fees | 140,180 | $ 168,002 | |
Classique Creations LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts Payable, Related Parties, Current | 2,600,000 | 1,800,000 | |
Due to Related Parties, Current | $ 500,000 | ||
Percentage Of Merchandise Purchased From Related Party | 64.00% | 43.00% | |
Issac Gurary [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting Agreement Period | 1 year | ||
Percentage of Sales Revenue | 3.00% | ||
Accrued Professional Fees, Current | $ 63,000 | ||
Professional Fees | $ 77,000 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Aug. 04, 2014 | Feb. 28, 2015 | Aug. 31, 2015 | May. 31, 2014 | May. 31, 2015 | Aug. 31, 2014 |
Class of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, Issued for Services | 32,871 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.50 | $ 3.50 | ||||
Notes Payable [Member] | ||||||
Class of Stock [Line Items] | ||||||
Long-term Debt, Gross | $ 430,000 | $ 430,000 | $ 430,000 | |||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, Issued for Services | 10,604 | |||||
Shares Issued, Price Per Share | $ 3.10 | |||||
Warrant [Member] | ||||||
Class of Stock [Line Items] | ||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 122,550 | 122,550 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.50 | $ 3.50 | $ 3.50 | |||
Weighted Average Remaining Contractual Term | 9 years |
Major Suppliers and Customers (
Major Suppliers and Customers (Details Textual) - USD ($) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Classique Creations LLC [Member] | ||
Major Suppliers And Customers [Line Items] | ||
Percentage Of Merchandise Purchased From Related Party | 64.00% | 43.00% |
Payments to Suppliers | $ 1,700,000 | $ 538,000 |
Sales Revenue, Net [Member] | Three Largest Customers [Member] | ||
Major Suppliers And Customers [Line Items] | ||
Concentration Risk, Percentage | 27.00% | 34.00% |
Vendor [Member] | ||
Major Suppliers And Customers [Line Items] | ||
Percentage Of Merchandise Purchased From Related Party | 36.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 0.00% |
Subsequent Events (Details Text
Subsequent Events (Details Textual) | 3 Months Ended |
Aug. 31, 2015USD ($) | |
Employee Severance [Member] | |
Subsequent Event [Line Items] | |
Payments for Postemployment Benefits | $ 36,000 |