|9 Months Ended|
Nov. 01, 2020
|Debt Disclosure [Abstract]|
NOTE 11 – BARTER ARRANGEMENTS
During fiscal 2020, the Company exchanged $1,097,488 of inventory plus the cost of freight for certain media credits. To account for the exchange, the Company recorded the transfer of the inventory asset as a reduction of inventory and an increase to a prepaid media asset of $1,055,185 which is included in “Prepaid and other current assets” on the accompanying condensed consolidated balance sheet. During the thirty-nine weeks ended November 1, 2020, the Company used $374,423 in media credits. There was an additional barter arrangement entered into during the thirteen weeks ended November 1 2020. During the thirteen weeks ended November 1, 2020, the Company exchanged $432,630 of inventory plus the cost of freight for certain media credits, related to the recent barter arrangement. These costs are included in “Prepaid and other current assets” on the accompanying condensed consolidated balance sheet. The Company had $432,630 and $374,423 of unused media credits remaining as of November 1, 2020 and February 2, 2020, respectively.
The Company accounts for barter transactions under ASC Topic No. 845 “Nonmonetary Transactions.” Barter transactions with commercial substance are recorded at the estimated fair value of the products exchanged, unless the products received have a more readily determinable estimated fair value. Revenue associated with barter transactions is recorded at the time of the exchange of the related assets.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef