The Company’s merchandise assortment consists of lifestyle-inspired men’s and women’s premium apparel, accessories and gifts from a variety of vendors that tend to have limited distribution in malls. The Company’s men’s and women’s product categories include:

• Men’s Apparel: Premium denim, tee shirts, woven shirts, knits, outerwear, sweaters, shorts and pants;

• Women’s Apparel: Premium denim, tee shirts, woven/knit tops, dresses, outerwear, sweaters, shorts, pants and skirts.

• Accessories and Gifts: Handbags, jewelry, hats, belts, watches, sunglasses, magazines, collectibles and seasonal gift items.

During fiscal year 2007, the Company carried over 300 brands, some of which included:

• Men’s: Acrylic, Affliction, Aqua VI, BC Ethic, Cardboard Robot, Christian Audigier, English Laundry, Ed Hardy, Exact Science, Howe, MEK, Monarchy, Obey, Rock & Republic, Stussy, Triple Five Soul, True Religion and 7 Diamonds;

• Women’s: Aqua VI, Christian Audigier, Crash & Burn, Ed Hardy, Eight Sixty, Frankie B, Gentle Fawn, Industry, Matty M, MEK, Miss Me, Monarchy, Rock & Republic, Tokidoki, Triple Five Soul, Obey, Sinful and True Religion.

• Accessories and Gifts: Betseyville, Betsey Johnson, Bula, Ed Hardy, Goorin, Kid Robot, Le Sportsac, Loop/Disney, Noir, Obey, Tarina Tarantino, Tokidoki and Triple Five Soul.

Gross profit was $22.0 million for fiscal year 2007 as compared to $8.7 million for fiscal year 2006, an increase of $13.2 million or 151.9%.

Operating income increased by $4.1 million to $0.5 million in fiscal year 2007 from an operating loss of $3.6 million in fiscal year 2006.

Interest expense remained relatively constant at $0.3 million in fiscal year 2007 versus $0.4 million in fiscal year 2006.

Interest income remained relatively constant at $0.2 million in fiscal year 2007 versus $0.1 million in fiscal year 2006.

Net income increased by $3.4 million to $0.2 million in fiscal year 2007 from a net loss of $3.2 million in fiscal year 2006.