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| **DELAWARE**                                                                                          |                                          | **52-1377061**                                                           |
|------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-------------------------------------------------------------------------------|
| (State                      or other jurisdiction ofincorporation                      or organization)    |                                          | (I.R.S.                      EmployerIdentification                      No.) |
|                                                                                                       |                                          |                                                                          |
| **3840                      BANK STREET****BALTIMORE,                      MARYLAND**                      |                                          | **21224-2522**                                                                |
| (Address                      of principal executive offices)                                              |                                          | (Zip                      Code)                                               |
|                                                                                                       | ** (410)                      342-8200** |                                                                          |
|   (Registrant's                      telephone number, including area                      code) |

**None**

**Common        Stock, $.0001 par value per share**

**S**

**S**

**S**

**Documents        Incorporated by Reference**

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**I.C.        ISAACS & COMPANY, INC.**

**FORM        10-K/A Amendment No. 2**

**Fiscal        Year Ended December 31, 2004**

**EXPLANATORY        NOTE**

| ·   | amended                  the disclosures contained in the Management’s Discussion and Analysis of                  Financial Condition and Results of Operations, or MD&A, section of the                  Original Filing to discuss and quantify the factors that contributed                  to                  the changes in sales, gross profit and gross profit margins in                  2004 when                  compared to 2003, and in 2003 when compared to 2002, and also to                  enhance                  the disclosures of year-to-year changes that occurred with respect                  to                  selling, distribution, general and administrative                  expenses; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | revised                  the schedule of contractual obligations contained in the MD&A                  to: |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ▪   | disclose                  the estimated interest payments due on the Company’s long term debt                  and |
|---------------------|--------------------------------------------------------------------------------------------------------------------------|

| ▪   | expand                  the disclosures regarding the Company’s fee and other payment obligations                  under its licenses; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reclassified                  as an operating expense on the Consolidated Statements of Operations                  contained in the Company’s audited consolidated financial statements for                  the years ended December 31, 2004 and 2003 (the “audited financial                  statements”), a $414,650 loss incurred in 2003 with regard to the sale of                  real property which had been classified as a non-operating expense,                  and                  added a corresponding disclosures in that regard in the Statement                  of                  Operations Data contained in Item 6. Selected Financial Data, and                  in Note                  2 to the audited financial                  statements; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | enhanced                  the Summary of Accounting Policies contained in the notes to the                  audited                  financial statements to include a discussion of the policies pertaining                  to                  the classification and calculation of cost of goods sold and operating                  expenses; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | disclosed                  in Note 3 to the audited financial statements the interest rate                  applicable                  to its $6.5 million note indebtedness to an affiliate of its                  licensor; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | revised                  the discussion of commitments and contingencies contained in Note                  8 to the                  audited financial statements to expand the disclosures regarding                  the                  Company’s fee and other payment obligations under its licenses;                  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | amended                  Part IV, Item 15(a)(3) of the Original Filing to include a comprehensive                  listing of exhibits. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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**TABLE        OF CONTENTS**

|                         |                                                                                                         | **Page** |
|------------------------------|--------------------------------------------------------------------------------------------------------------|----------|
| **PART                  II** |
| ITEM                  6.     | SELECTED                  FINANCIAL DATA                                                                     | 4        |
|                         |                                                                                                         |     |
| ITEM                7.       | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL                  CONDITION AND RESULTS OF OPERATIONS |  5  |
|                         |                                                                                                         |     |
| ITEM                  9A     | CONTROLS                  AND PROCEDURES                                                                     | 15       |
|                         |
| **PART                  IV** |
|                         |                                                                                                         |     |
| ITEM                  15.    | EXHIBITS,                  FINANCIAL STATEMENT SCHEDULES                                                     | 16       |
|                         |                                                                                                         |
| SIGNATURE                    | 21                                                                                                           |

----

**PART        II**

**ITEM        6. SELECTED FINANCIAL DATA**

|                                              |   | **As                  of December 31,** |    |
|---------------------------------------------------|--------|-----------------------------------------|---------|
|                                              |   | **2004**                                |    | **2003** |   | **2002** |   | **2001** |   | **2000** |   |
| **Balance                  Sheet Data:**          |   | **(in                  thousands)**     |    |
| Working                  capital             |   | $                                       | 8,595   |   | $ | 4,578 |   | $ | 6,154 |   | $ | 11,154 |   | $ | 16,777 |   |
| Total                  assets                |   |                                    | 27,833  |   |   | 20,090 |   |   | 22,448 |   |   | 22,333 |   |   | 36,430 |   |
| Total                  debt                  |   |                                    | 6,781   |   |   | 10,782 |   |   | 11,588 |   |   | 6,841 |   |   | 14,813 |   |
| Redeemable                  preferred stock       |   |                                    | — |   |   | — |   |   | — |   |   | 3,300 |   |   | 3,300 |   |
| Stockholders’                  equity  |   |                                    | 12,154  |   |   | 5,547 |   |   | 7,242 |   |   | 8,816 |   |   | 13,503 |   |

|                                                                          |   | **Year                  Ended December 31,**              |    |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
|                                                                          |   | **2004**                                                  |    | **2003** |   | **2002** |   | **2001** |   | **2000** |   |
| **Statement                  of Operations Data:**                            |   | **(in                  thousands except per share data)** |    |
| Net                  sales                                               |   | $                                                         | 80,649  |   | $ | 64,305 |   | $ | 63,521 |   | $ | 81,189 |   | $ | 95,496 |   |
| Cost                  of sales                                           |   |                                                      | 49,583  |   |   | 43,706 |   |   | 41,776 |   |   | 55,108 |   |   | 67,031 |   |
| Gross                  profit                                                 |   |                                                      | 31,066  |   |   | 20,599 |   |   | 21,745 |   |   | 26,081 |   |   | 28,465 |   |
| Selling                  expenses                                        |   |                                                      | 10,413  |   |   | 9,525 |   |   | 11,486 |   |   | 11,246 |   |   | 14,099 |   |
| License                  fees                                            |   |                                                      | 5,330   |   |   | 4,163 |   |   | 5,018 |   |   | 5,211 |   |   | 8,343 |   |
| Distribution                  and shipping expenses                           |   |                                                      | 1,968   |   |   | 2,062 |   |   | 2,393 |   |   | 2,976 |   |   | 3,192 |   |
| General                  and administrative expenses                          |   |                                                      | 7,532   |   |   | 5,244 |   |   | 7,115 |   |   | 7,374 |   |   | 7,614 |   |
| Loss                  on disposal of property                                 |   |                                                      | — |   |   | 415 |   |   | — |   |   | — |   |   | — |   |
| Termination                  of license agreement                             |   |                                                      | — |   |   | — |   |   | — |   |   | — |   |   | 8,068 |   |
| Impairment                  of intangibles                                    |   |                                                      | — |   |   | — |   |   | — |   |   | — |   |   | 743 |   |
| Operating                  income (loss)                                      |   |                                                      | 5,823   |   |   | (810 | ) |   | (4,267 | ) |   | (726 | ) |   | (13,594 | ) |
| Interest,                  net                                           |   |                                                      | (729    | ) |   | (1,009 | ) |   | (657 | ) |   | (1,307 | ) |   | (1,337 | ) |
| Other                  income (expense)                                       |   |                                                      | 26      |   |   | 124 |   |   | (39 | ) |   | (149 | ) |   | 139 |   |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from continuing operations before income taxes |   |                                                      | 5,120   |   |   | (1,695 | ) |   | (4,963 | ) |   | (2,182 | ) |   | (14,792 | ) |
| Income                  tax benefit, net                                      |   |                                                      | 1,045   |   |   | — |   |   | — |   |   | — |   |   | 48 |   |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from continuing operations                     |   |                                                      | 6,165   |   |   | (1,695 | ) |   | (4,963 | ) |   | (2,182 | ) |   | (14,744 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from operations of discontinued subsidiary              |   |                                                      | — |   |   | — |   |   | — |   |   | (1,310 | ) |   | (503 | ) |
| Loss                  from sale of discontinued subsidiary                    |   |                                                      | — |   |   | — |   |   | — |   |   | (1,182 | ) |   | — |   |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from discontinued operations                            |   |                                                      | — |   |   | — |   |   | — |   |   | (2,492 | ) |   | (503 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                            |   |                                                      | 6,165   |   |   | (1,695 | ) |   | (4,963 | ) |   | (4,674 | ) |   | (15,247 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  stock deemed dividend                              |   |                                                      | — |   |   | — |   |   | (596 | ) |   | — |   |   | — |   |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) attributable to common stockholders        |   | $                                                         | 6,165   |   | $ | (1,695 | ) | $ | (5,559 | ) | $ | (4,674 | ) | $ | (15,247 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  income (loss) per share from continuing operations     |   | $                                                         | 0.55    |   | $ | (0.15 | ) | $ | (0.61 | ) | $ | (0.28 | ) | $ | (1.93 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  loss per share from discontinued operations            |   |                                                      | — |   |   | — |   |   | — |   |   | (0.32 | ) |   | (0.07 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  stock deemed dividend                              |   |                                                      | — |   |   | — |   |   | (0.07 | ) |   | — |   |   | — |   |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  income (loss) per share                                |   | $                                                         | 0.55    |   | $ | (                  0.15 | ) | $ | (                  0.68 | ) | $ | (                  0.60 | ) | $ | (2.00 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  weighted average common shares outstanding             |   |                                                      | 11,264  |   |   | 11,135 |   |   | 8,160 |   |   | 7,854 |   |   | 7,639 |   |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                  income (loss) per share                              |   | $                                                         | 0.46    |   | $ | (                  0.15 | ) | $ | (                  0.68 | ) | $ | (                  0.60 | ) | $ | (2.00 | ) |
|                                                                          |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                  weighted average common shares outstanding           |   |                                                      | 13,355  |   |   | 11,135 |   |   | 8,160 |   |   | 7,854 |   |   | 7,639 |   |

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**ITEM        7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS**

**Overview**

**Critical        Accounting Policies and Estimates**

----

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**Results        of Operations**

|                                                       |   | **Year                  Ended December 31,** |    |
|------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                       |   | **2004**                                     |    | **2003** |   | **2002** |   |
|                                                       |   |                                         |    |   |   |   |   |
| Net                  sales                            |   |                                         | 100.0   | % |   | 100.0 | % |   | 100.0 | % |
| Cost                  of sales                        |   |                                         | 61.5    | % |   | 68.0 | % |   | 65.8 | % |
| Gross                  profit                         |   |                                         | 38.5    | % |   | 32.0 | % |   | 34.2 | % |
| Selling                  expenses                     |   |                                         | 12.9    | % |   | 14.8 | % |   | 18.1 | % |
| License                  fees                         |   |                                         | 6.6     | % |   | 6.5 | % |   | 7.9 | % |
| Distribution                  and shipping expenses   |   |                                         | 2.5     | % |   | 3.3 | % |   | 3.8 | % |
| General                  and administrative expenses  |   |                                         | 9.3     | % |   | 8.1 | % |   | 11.2 | % |
| Loss                  on disposal of property              |   |                                         | — |   |   | 0.6 | % |   | — |   |
| Operating                  income (loss)                   |   |                                         | 7.2     | % |   | (1.3 | %) |   | (6.8 | %) |

**Year        Ended December 31, 2004 Compared to Year Ended December 31,        2003**

*Net        Sales and gross profit.*

----

| ·   | **Increases                  in the unit and dollar volumes of goods sold at regular                  prices**                  -                  An increase of 23.8% in unit sales of goods sold at regular prices                  (both                  T-Shirts and Jeans & Tops) to 2.6 million units in 2004 compared to                  2.1 million units in 2003. That increase in unit volumes of regular                  priced                  merchandise resulted in |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  43.2% or $22.4 million increase (from $51.9 million in 2003) in                  the dollar                  volume of sales of regular priced                  merchandise; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  51.5% or $12.2 million increase in gross profit (from $23.7 million                  in                  2003); and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  2.6% increase to 48.3% in gross profit margins (from 45.7% in                  2003). |
|---------------------|----------------------------------------------------------------------------------------------------------|

| ·   | **Reductions                  in the unit and dollar volumes of goods sold at promotional and                  off-price                  discounts**                  -                  A decrease of 33.3% in unit sales of goods sold at promotional                  and                  off-price discounts (both T-Shirts and Jeans & Tops) to 1.0 million                  units in 2004 compared to 1.5 million units in 2003. That reduction                  in                  unit volumes of merchandise sold at promotional and off-price discounts                  translated into |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  14.5% or $2.4 million decrease (from $16.6 million in 2003) in                  the dollar                  volumes of those sales; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | an                  37.5% or $0.3 million increase in gross profit (from $0.8 million                  in 2003;                  and |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  2.9% increase to 7.7% in gross profit margins (from 4.8% in                  2003). |
|---------------------|--------------------------------------------------------------------------------------------------------|

| ·   | **A                  price increase in the second half of 2004.**The                  Company** **increased                  the selling prices of all of its merchandise by approximately 5%                  (on                  average) during the second half of 2004. This resulted in an increase                  in                  sales (which is included in the increase of dollar volume increases                  discussed above) and in gross profit of approximately $2.2 million                  in                  2004. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross                  unit sales of T-Shirts at regular prices (average selling price                  of $12-$15                  per unit) remained relatively unchanged at 0.7 million units in                  2004 and                  2003 and represented $1.8 million of the total increase in goods                  sold at                  regular prices in 2004. The gross margin associated with these                  sales                  increased to 51.8% in 2004 compared to 46.8% in 2003 and represented                  a                  gross profit increase of $1.4 million in 2004 over 2003. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross                  unit sales of Jeans & Tops at regular prices (average selling price of                  $28-$33 per unit) increased by 35.7% to 1.9 million units in 2004                  compared                  to 1.4 million units in 2003, and represented $20.6 million of                  the total                  increase in goods sold at regular prices in 2004 over the sales                  of those                  products made at regular prices in 2003. The gross margin associated                  with                  these sales increased to 47.6% in 2004 compared to 45.4% in 2003                  and                  represented a gross profit increase of $10.8 million in 2004 over                  2003. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Selling,        Distribution, General and Administrative Expenses.*

----

*Operating        Income.*

*Interest        Expense.*

*Income        Taxes.*

**Year        Ended December 31, 2003 Compared to Year Ended December 31,        2002**

*Net        Sales and gross profit*

----

| ·   | **Reductions                  in the unit and dollar volumes of goods sold at regular                  prices**                  -                  A decrease of 19.2% in unit sales of goods sold at regular prices                  (both                  T-Shirts and Jeans & Tops) to 2.1 million units in 2003 compared to                  2.6 million units in 2002. That decrease in unit volumes of regular                  priced                  merchandise resulted in |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  13.8% or $8.3 million decrease (from $60.2 million in 2002) in                  the dollar                  volume of sales; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  17.4% or $5.0 million decrease (from $28.7 million in 2002) in                  gross                  profit; and |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  2.0% decrease in gross profit margins to 45.7% from 47.7% in 2002. |
|---------------------|---------------------------------------------------------------------------------------|

| ·   | **Increases                  in the unit and dollar volumes of goods sold at promotional and                  off-price                  discounts**                  -                  An increase of 87.5% in unit sales of goods sold at promotional                  and                  off-price discounts (both T-Shirts and Jeans & Tops) to 1.5 million                  units in 2003 compared to 0.8 million units in 2002. That reduction                  in                  unit volumes of merchandise sold at promotional and off-price discounts                  translated into |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | an                  82.4% or $7.5 million increase (from $24.1 million in 2002) in                  the dollar                  volumes of those sales; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  100% or $0.4 million increase in gross profit (from $0.4 million)                  2002;                  and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a                  1.1% increase in gross profit margins to 4.8% from 3.7% in 2002. |
|---------------------|-------------------------------------------------------------------------------------|

*Selling,        Distribution, General and Administrative Expenses.*

----

*Operating        Loss.*

*Interest        Expense.*

*Income        Taxes.*

**Liquidity        and Capital Resources**

*Operating        Cash Flow.*

----

*Credit        Facilities*

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|  **Schedule                  of contractual obligations:**                 |   |   | **Payments                    Due By Period**  |   |
|---------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                                                            |   |   | **Total**                                      |   |   | **Less                    than****1                    year** |   |   | **1-3                    years**  |   |   | **4-5                    years**  |   |   | **After****5                    years** |   |
|                                                                            |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revolving                    line of credit                                     |   | $      | 223,283                                             |   | $ | 223,283 |   | $ | — |   | $ | — |   | $ | — |   |
| Long                    term debt (1)                                           |   |   | 8,328,690                                           |   |   | 4,830,000 |   |   | 3,498,690 |   |   | — |   |   | — |   |
| Operating                    leases                                             |   |   | 4,799,673                                           |   |   | 504,526 |   |   | 945,016 |   |   | 884,930 |   |   | 2,465,201 |   |
| Employment                    agreements                                        |   |   | 2,826,500                                           |   |   | 1,380,000 |   |   | 1,446,500 |   |   | — |   |   | — |   |
| License                    agreement fee obligations                            |   |   | 15,830,526                                          |   |   | 6,830,526 |   |   | 9,000,000 |   |   | — |   |   | — |   |
| License                    agreement fashion show obligation                    |   |   | 975,000                                             |   |   | 375,000 |   |   | 600,000 |   |   | — |   |   | — |   |
| License                    agreement creative & advertising fee obligations |   |   | 570,000                                             |   |   | 190,000 |   |   | 380,000 |   |   | — |   |   | — |   |
| Promotional                    expense license requirement                      |   |   | 2,700,000                                           |   |   | 900,000 |   |   | 1,800,000 |   |   | — |   |   | — |   |
| Total                    contractual cash obligations                           |   | $      | 36,253,672                                          |   | $ | 15,233,335 |   | $ | 17,670,206 |   | $ | 884,930 |   | $ | 2,465,201 |   |
|                                                                            |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Long                    term debt includes principle of $6.6 million, accrued interest                    of $1.3                    million and interest to be paid in future periods of $0.4                    million. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  **Schedule                        of commercial commitments:**                                |   | **Amount                          of Commitment Expiration Per Period** |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
|                                                                                                |   | **Total**                                                               |   | **Less                          than****1                          year** |   | **1-3                          years** |   | **4-5****years** |   | **After****5                          years** |   |
|                                                                                                |   |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Line                          of credit *****(including                          letters of credit) |   | $                                                                       | 25,000,000 |   | $ | 25,000,000 |   | $ | — |   | $ | — |   | $ | — |   |
|                                                                                                |   |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          commercial commitments                                               |   | $                                                                       | 25,000,000 |   | $ | 25,000,000 |   | $ | — |   | $ | — |   | $ | — |   |

| (*) | At                        December 31, 2004, the Company had $0.2 million of borrowings                        under its                        revolving line of credit and outstanding letters of credit                        of                        approximately $3.1 million under the Credit                        Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Inflation**

**Recent        Accounting Pronouncements**

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**ITEM        9A**
**CONTROLS        AND PROCEDURES**

| ·   | information                  required to be disclosed in the Company’s Exchange Act reports |
|--------------------|---------------------------------------------------------------------------------------------------|

| §   | is                  recorded, processed, summarized and reported within the time periods                  specified in the SEC’s rules and                  forms, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | is                  accumulated and communicated to the Company’s management, including its                  Chief Executive Officer and Chief Financial Officer, as appropriate,                  to                  allow timely decisions regarding required disclosure, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                  Company’s transactions are properly                  authorized; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | the                  Company’s assets are safeguarded against unauthorized or improper use;                  and |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | the                  Company’s transactions are properly recorded and                  reported, |
|--------------------|--------------------------------------------------------------------------------------------------------|

----

**PART        IV**

**ITEM        15. **
**EXHIBITS,        FINANCIAL STATEMENT SCHEDULES**

| (a)1. | Financial                  Statements. The following financial statements, related notes and                  the                  Report of Independent Certified Public Accountants, are included                  in                  response to Item 8 hereof: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Index        to Consolidated Financial Statements**

|                                                                                                                                                | **Page** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                |     |
| Report                  of Independent Registered Public Accounting Firm                                                                       | F-1      |
| Consolidated                  Balance Sheets at December 31, 2004 and 2003                                                                     | F-2      |
| Consolidated                  Statements of Operations for the years ended December 31, 2004,                  2003 and                  2002       | F-3      |
| Consolidated                  Statements of Stockholders’ Equity for the years ended December 31, 2004,                  2003 and 2002        | F-4      |
| Consolidated                  Statements of Cash Flows for the years ended December 31, 2004,                  2003 and                  2002  | F-5      |
| Summary                  of Accounting Policies                                                                                                     | F-6      |
| Notes                  to Consolidated Financial Statements                                                                                    | F-11     |

| (a)2. | Financial                  Statements Schedules. The following is a list of all financial                  statements                  schedules filed herewith: |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Schedules                  other than those listed above have been omitted because they are                  not                  required or are not applicable, or the required information has                  been                  included in the Consolidated Financial Statements or the Notes                  thereto. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)3. | Exhibits                  (numbered in accordance with Item 601 of Regulation S-K). The following                  is                  a list of Exhibits filed herewith: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit                    No.  |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.01                       |   | Amended                    and Restated Certificate of Incorporation (a copy of which was                    filed with                    the Commission on October 3, 1997 as Exhibit 3.01 to the Company’s                    Registration Statement on Form S-1 (the “S-1 Registration Statement”), and                    is hereby incorporated herein by this reference).                                                                                                                                                                                       |
| 3.02                       |   | Amended                    and Restated By-laws (a copy of which was filed as Exhibit 3.02                    to the S-1                    Registration Statement, and is hereby incorporated herein by                    this                    reference).                                                                                                                                                                                                                                                                                                                          |
| 3.03                       |   | Certificate                    of Designation of the Series A Convertible Preferred Stock of                    the Company                    (a copy of which was filed with the Commission on November 15,                    1999 as                    Exhibit 3.03 to the Company’s Quarterly Report on Form 10-Q for the                    quarter ended September 30, 1999, and is hereby incorporated                    herein by                    this reference).                                                                                                   |
| 3.04                       |   | Certificate                    of Amendment to the Certificate of Designation of the Series                    A Convertible                    Preferred Stock of the Company (a copy of which was filed with                    the                    Commission on April 2, 2001 as Exhibit 3.04 to the Company’s Annual Report                    on Form 10-K for the year ended December 31, 2000, and is hereby                    incorporated herein by this reference.                                                                                                  |
| 3.05                       |   | Second                    Certificate of Amendment to the Certificate of Designation of                    the Series A                    Convertible Preferred Stock of the Company (a copy of which was                    filed with                    the Commission on November 14, 2002 as Exhibit 3.05 to the Company’s                    Quarterly Report on Form 10-Q for the quarter ended September                    30, 2002                    (the “September 2002 10-Q”), and is hereby incorporated herein by this                    reference). |
| 3.06                       |   | Certificate                    of Amendment of Amended and Restated Certificate of Incorporation                    (a copy                    of which was filed with the Commission on August 14, 2003 as                    Exhibit 3.06                    to the Company’s Quarterly Report on Form 10-Q for the quarter ended June                    30, 2003 (the “June 2003 10-Q”), and is hereby incorporated herein by this                    reference)                                                                                                   |
| 4.01                       |   | Specimen                    Common Stock Certificate (a copy of which was filed with the                    Commission on                    October 3, 1997 as Exhibit 4.01 to the Company’s Registration Statement on                    Form S-1 (the “S-1 Registration Statement”), and is hereby incorporated                    herein by this reference).                                                                                                                                                                                                       |
| 4.02                       |   | Warrant                    No. 1 issued by the Company to Textile Investment International                    S.A.                    (“Textile”) for the purchase of 300,000 shares of Common Stock (a copy                    of                    which was filed with the Commission on November 14, 2002 as Exhibit                    4.02                    to the September 2002 10-Q, and is hereby incorporated herein                    by this                    reference).                                                                                 |
| 4.03                       |   | Warrant                    No. 2 issued by the Issuer to Textile for the purchase of 200,000                    shares                    of Common Stock (a copy of which was filed as Exhibit 4.03 to                    the                    September 2002 10-Q, and is hereby incorporated herein by this                    reference).                                                                                                                                                                                                                                          |
| 4.04                       |   | Amended                    and Restated Omnibus Stock Plan as in effect on June 30, 2003                    (a copy of                    which was filed as Exhibit 4.04 to the June 2003 10-Q, and is                    hereby                    incorporated herein by this reference).                                                                                                                                                                                                                                                                                             |
| 4.05                       |   | 2005                    Non-Employee Directors Stock Option Plan (a copy of which was                    filed with                    the Commission on August 10, 2005 as Exhibit 4.05 to Amendment                    No. 1 to                    the Company’s Registration Statement on Form S-2 (the “S-2 Amendment”),                    and is hereby incorporated herein by this reference).                                                                                                                                                                  |
| 10.01                      |   | Form                    of Indemnification Agreement (a copy of which was filed as Exhibit                    10.09                    to the S-1 Registration Statement, and is hereby incorporated                    herein by                    this reference).                                                                                                                                                                                                                                                                                                                    |
| 10.02                      |   | Girbaud                    Trademark License and Technical Assistance Agreement dated November                    1,                    1997 (a copy of which was filed with the Commission on November                    26, 1997                    as Exhibit 10.26 to Amendment No. 2 to the S-1 Registration Statement                    (“S-1 Amendment 2”), and is hereby incorporated herein by this                    reference).                                                                                                                                |

----

| Exhibit                    No. |   | Description |
|--------------------------------|--------|-------------|

| 10.03  |   | Defined                      Benefit Pension Plan (a copy of which was filed with as Exhibit                      10.27(a)                      to S-1 Amendment No. 2, and is hereby incorporated herein by                      this                      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.04  |   | First                      Amendment to Defined Benefit Pension Plan (a copy of which                      was filed as                      Exhibit 10.27(b) to S-1 Amendment 2, and is hereby incorporated                      herein by                      this reference).                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.05  |   | Girbaud                      Trademark License and Technical Assistance Agreement dated                      January 15,                      1998 (a copy of which was filed with the Commission on March                      27, 1998 as                      Exhibit 10.26(a) to the Company’s Annual Report on Form 10-K for the year                      ended December 31, 1997 (the “1997 10-K”), and is hereby incorporated                      herein by this reference).                                                                                                                                                                                                              |
| 10.06  |   | Girbaud                      Trademark License and Technical Assistance Agreement for Women's                      Collection dated March 4, 1998 (a copy of which was filed as                      Exhibit                      10.26(b) to the 1997 10-K, and is hereby incorporated herein                      by this                      reference).                                                                                                                                                                                                                                                                                                                                                         |
| 10.07  |   | Amendment                      No. 1 dated June 18, 1998 to Girbaud Trademark and Technical                      Assistance                      Agreement for Women's Collection (a copy of which was filed                      with the                      Commission on August 12, 1998 as Exhibit 10.32 to the Company’s Quarterly                      Report on Form 10-Q for the quarter ended June 30, 1998, and                      is hereby                      incorporated herein by this reference).                                                                                                                                                                                        |
| 10.08  |   | Amendment                      No. 1 dated November 12, 1998 to Trademark License and Technical                      Assistance Agreement for Men's Collections by and between I.C.                      Isaacs                      & Co., L.P. and Latitude Licensing Corp. (a copy of which was                      filed                      with the Commission on March 30, 1999 as Exhibit 10.40 to the                      Company’s                      Annual Report on Form 10-K for the year ended December 31,                      1998 (the “1998                      10-K”), and is hereby incorporated herein by this                      reference).                   |
| 10.09  |   | Amendment                      No. 2 dated November 12, 1998 to Trademark License and Technical                      Assistance Agreement for Women's Collections by and between                      I.C. Isaacs                      & Co., L.P. and Latitude Licensing Corp. (a copy of which was                      filed as                      Exhibit 10.41 to the 1998 10-K, and is hereby incorporated                      herein by this                      reference).                                                                                                                                                                                                                          |
| 10.10  |   | Executive                      Employment Agreement by and between I.C. Isaacs & Company, Inc. and                      Daniel Gladstone dated January 21, 1999 (a copy of which was                      filed as                      Exhibit 10.42 to 1998 10-K, and is hereby incorporated herein                      by this                      reference).                                                                                                                                                                                                                                                                                                                                              |
| 10.11  |   | Amendment                      No. 1 dated March 4, 1998 to Trademark License and Technical                      Assistance                      Agreement for Men's Collections by and between the Company                      and Latitude                      Licensing Corp. (a copy of which was filed as Exhibit 10.56                      to the 1998                      10-K, and is hereby incorporated herein by this                      reference).                                                                                                                                                                                                                                                |
| 10.12  |   | Amendment                      No. 3 dated December 23, 1998 to Trademark License and Technical                      Assistance Agreement for Women's Collections by and between                      the Company                      and Latitude Licensing Corp. (a copy of which was filed as                      Exhibit 10.57                      to the 1998 10-K, and is hereby incorporated herein by this                      reference).                                                                                                                                                                                                                                                               |
| 10.13  |   | Amendment                      No. 4 to the Trademark License and Technical Assistance Agreement                      Covering                      Women's Products dated August 2, 1999 (a copy of which was                      filed with the                      Commission on August 13, 1999 as Exhibit 10.60 to the Company’s Quarterly                      Report on Form 10-Q for the quarter ended June 30, 1999, and                      is hereby                      incorporated herein by this reference).                                                                                                                                                                                |
| 10.14  |   | Amendment                      No. 2 dated June 21, 2000, to Trademark License and Technical                      Assistance                      Agreement Covering Men's Products dated January 15, 1998, by                      and between                      Latitude Licensing Corp. and I.C. Isaacs & Company L.P. 3.03 (a copy                      of which was filed with the Commission on August 14, 2000 as                      Exhibit 10.75                      to the Company’s Quarterly Report on Form 10-Q for the quarter ended June                      30, 2000 (the “June 2000 10-Q”), and is hereby incorporated herein by this                      reference). |

----

| Exhibit                      No. |   | Description |
|----------------------------------|--------|-------------|

| 10.15  |   | Amendment                        No. 5 dated June 21, 2000, to Trademark License and Technical                        Assistance                        Agreement Covering Women's Products dated January 15, 1998,                        by and between                        Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                        which was filed as Exhibit 10.76 to the June 2000 10-Q, and                        is hereby                        incorporated herein by this reference).                                                                                                                                                                                    |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.16  |   | Amendment                        No.3 to Trademark License and Technical Assistance Agreement                        Covering                        Men’s Products Dated May 31, 2001 (a copy of which was filed                        with the                        Commission on April 1, 2002 as Exhibit 10.92 to the Company’s Annual                        Report on Form 10-K for the year ended December 31, 2001,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                |
| 10.17  |   | Amended                        and Restated Executive Employment Agreement dated April 17,                        2002, by and                        between the Company and Eugene C. Wielepski (a copy of which                        was filed                        with the Commission on April 22, 2002 as Exhibit 10.94 to                        Amendment No. 1                        to the Company’s Annual Report on Form 10-K for the year ended December                        31, 2001 (the “2001 10-K Amendment”), and is hereby incorporated herein by                        this reference).                                                                                        |
| 10.18  |   | Amended                        and Restated Executive Employment Agreement dated April 17,                        2002, by and                        between the Company and Daniel J. Gladstone (a copy of which                        was filed as                        Exhibit 10.95 to Amendment No. 1 to the 2001 10-K Amendment,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                                                                                                                |
| 10.19  |   | Amendment                        No. 4 dated October 2, 2002 to the Trademark License and                        Technical                        Assistance Agreement dated January 15, 2002 by and between                        Latitude                        Licensing Corp. and I.C. Isaacs & Company, L.P. (a copy of which was                        filed with the Commission on November 14, 2002 as Exhibit                        10.102 to the                        Company’s Quarterly Report on Form 10-Q for the quarter ended September                        30, 2002 (the “September 2002 10-Q”), and is hereby incorporated herein by                        this reference). |
| 10.20  |   | Amendment                        No. 6 dated October 2, 2002 to the Trademark License and                        Technical                        Assistance Agreement for Women’s Collections dated October 2, 2002 by and                        between Latitude Licensing Corp. and I.C. Isaacs & Company, L.P. (a                        copy of which was filed as Exhibit 10.103 to the September                        2002 10-Q, and                        is hereby incorporated herein by this reference).                                                                                                                                                                                             |
| 10.21  |   | Amendment                        no. 7, dated March 31, 2003 to the Trademark License and                        Technical                        Assistance Agreement for Women’s Collections between Latitude Licensing                        Corp. and I.C. Isaacs & Company L.P. (a copy of which was filed with                        the Commission on April 4, 2003 as Exhibit 10.110 to the                        Company’s Annual                        Report on Form 10-K for the year ended December 31, 2002                        (the “2002                        10-K”), and is hereby incorporated herein by this                        reference).                       |
| 10.22  |   | Amendment                        no. 5 dated March 31, 2003 to the Trademark License and Technical                        Assistance Agreement dated the 1st day of November 1997 by                        and between                        Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                        which was filed as Exhibit 10.111 to the 2002 10-K, and is                        hereby                        incorporated herein by this reference).                                                                                                                                                                                                                          |
| 10.23  |   | Amendment                        dated as of May 15th, 2003 to the Amended and Restated Employment                        Agreement between I.C. Isaacs & Company, L.P. and Daniel J. Gladstone                        (a copy of which was filed with the Commission on May 15,                        2003 as Exhibit                        10.114 to the Company's Quarterly Report on Form 10-Q for                        the quarter                        ended March 31, 2003 (the “March 2003 10-Q”), and is hereby incorporated                        herein by this reference).                                                                                                                 |

----

| Exhibit                        No. |   | Description |
|------------------------------------|--------|-------------|

| 10.24  |   | Amendment                        dated as of March 31st, 2003 to the Amended and Restated                        Employment                        Agreement between I.C. Isaacs & Company, L.P. and Eugene C. Wielespki                        (a copy of which was filed as Exhibit 10.115 to the March                        2003 10-Q, and                        is hereby incorporated herein by this reference).                                                                                                                                                                                                                                                                                                                    |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.25  |   | Amendment                        No. 8, dated October 29, 2003 to the Trademark License and                        Technical                        Assistance Agreement for Women's Collections between Latitude                        Licensing                        Corp. and I.C. Isaacs & Company L.P. (a copy of which was filed with                        the Commission on November 14, 2003 as Exhibit 10.118 to                        the Company's                        Quarterly Report on Form 10-Q for the quarter ended September                        30, 2003                        (the “September 2003 10-Q”), and is hereby incorporated herein by this                        reference).       |
| 10.26  |   | Amendment                        No. 6, dated October 29, 2003 to the Trademark License and                        Technical                        Assistance Agreement dated the 1st day of November 1997 by                        and between                        Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                        which was filed as Exhibit 10.119 to the September 2003 10-Q,                        and is                        hereby incorporated herein by this reference).                                                                                                                                                                                                        |
| 10.27  |   | Amendment                        dated October 13, 2004 to the Executive Employment Agreement                        dated                        December 9, 2003 by and Between I.C. Isaacs & Company, L.P. and Peter                        J. Rizzo (a copy of which was filed with the Commission as                        Exhibit 10.120                        to the Company's Report on Form 8-K filed on October 22,                        2004 (the                        “October 22, 2004 Form 8-K”), and is hereby incorporated herein by this                        reference).                                                                                                                              |
| 10.28  |   | Executive                        Employment agreement made as of the 1st day of March 2004,                        by and between                        I.C. Isaacs & Company LP and Jesse de la Rama (a copy of which was                        filed as Exhibit 10.121 to the October 22, 2004 Form 8-K,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                                                                                                                                                            |
| 10.29  |   | Loan                        and Security Agreement Dated as of December 30, 2004 by and                        between I.C.                        Isaacs & Company, L.P. and Wachovia Bank, National Association (a                        copy                        of which was filed with the Commission as Exhibit 10.122                        to the Company's                        Report on Form 8-K filed on January 6, 2005, and is hereby                        incorporated                        herein by this reference).                                                                                                                                                                                            |
| 10.30  |   | Amendment                        No. 7, dated December 16, 2004, to the Trademark License                        and Technical                        Assistance Agreement dated the 1st day of November 1997 by                        and between                        Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                        which was filed with the Commission on March 31, 2005 as                        Exhibit 10.123 to                        the Company’s Annual Report on Form 10-K for the year ended December                        31,                        2004 (the “2004 10-K”), and is hereby incorporated herein by this                        reference). |
| 10.31  |   | Amendment                        No. 9, dated December 16, 2004, to the Trademark License                        and Technical                        Assistance Agreement for Women's Collections dated March                        4, 1998 by and                        between Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a                        copy of which was filed as Exhibit 10.124 to the 2004 10-K,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                                       |
| 10.32  |   | Assignment                        of warrant to purchase 300,000 shares of the Company’s common stock dated                        September 28th, 2004 by Textile Investment International                        S.A. to Rockbrook                        Investments SA., and consented to on April 13, 2005 by the                        Company (a copy                        of which was filed as Exhibit 99.01 to the S-2 Amendment,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                        |
| 10.33  |   | Assignment                        of warrant to purchase 200,000 shares of the Company’s common stock dated                        September 28th, 2004 by Textile Investment International                        S.A. to Rockbrook                        Investments SA. , and consented to on April 13, 2005 by the                        Company (a                        copy of which was filed as Exhibit 99.02 to the S-2 Amendment,                        and is                        hereby incorporated herein by this reference).                                                                                                                                                                                       |
| 21.01       |   | List                        of Subsidiaries (a copy of which was filed as Exhibit 21.01                        to the S-2                        Amendment, and is hereby incorporated herein by this                        reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.01       |   | Certification                        Pursuant to Section                        302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.02       |   | Certification                        Pursuant to Section 302 of the Sarbanes-Oxley Act of                        2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.01       |   | Certification                        Pursuant to Section                        1350 of chapter 63 of Title 18 of the United States                        Code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

**SIGNATURE**

|                                        |                                                                                                                                |                                     |
|---------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                                        | **I.C.                ISAACS & COMPANY , INC.**                                                                                 |
|                                   |                                                                                                                           |                                |
| Date: November                14, 2005 | By:                                                                                                                       | /s/ Eugene                Wielepski |
|                                        | Eugene                  WielepskiVice                  President - Finance and Chief                  (Principle) Financial Officer |

----

**Report        of Independent Registered Public Accounting Firm**

**,**

|                                   |         |  BDO                Seidman, LLP |
|----------------------------------------|--------------|---------------------------------------|
|                                   |         |
|                              |    |                             |
| Bethesda,                Maryland      |         |                                  |
|  February                23, 2005 |              |

----

**I.C.        Isaacs & Company, Inc.**

**Consolidated        Balance Sheets**

|                                                                                                                                                                                                                                            |   | **December                        31,** |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|
|                                                                                                                                                                                                                                            |   | **2004**                                |        | **2003** |   |
|                                                                                                                                                                                                                                            |   |                                    |        |   |   |
| **Assets**                                                                                                                                                                                                                                      |   |                                    |        |   |   |
| Current                                                                                                                                                                                                                                         |   |                                    |        |   |   |
| Cash,                        including temporary investments of $70,000 and $168,000                                                                                                                                                            |   | $                                       | 1,045,905   |   | $ | 782,519 |   |
| Accounts                        receivable, less allowance for doubtful accounts                        of $316,000 and $275,000 (Note 3)                                                                                             |   |                                    | 10,015,723  |   |   | 9,871,110 |   |
| Inventories                        (Notes 1 and 3)                                                                                                                                                                                    |   |                                    | 8,317,437   |   |   | 3,854,731 |   |
| Deferred                        tax asset (Note 5)                                                                                                                                                                                              |   |                                    | 1,193,000   |   |   | — |   |
| Prepaid                        expenses and other                                                                                                                                                                                          |   |                                    | 509,503     |   |   | 68,676 |   |
| Total                        current assets                                                                                                                                                                                                |   |                                    | 21,081,568  |   |   | 14,577,036 |   |
| Property,                        plant and equipment, at cost, less accumulated depreciation                        and                        amortization (Note 2)                                                                  |   |                                    | 2,088,233   |   |   | 777,089 |   |
| Other                        assets (Note 9)                                                                                                                                                                                               |   |                                    | 4,663,109   |   |   | 4,735,635 |   |
|                                                                                                                                                                                                                                            |   | $                                       | 27,832,910  |   | $ | 20,089,760 |   |
|                                                                                                                                                                                                                                            |   |                                    |        |   |   |   |   |
| **Liabilities                        and Stockholders’ Equity**                                                                                                                                                                           |   |                                    |        |   |   |   |   |
| Current                                                                                                                                                                                                                                         |   |                                    |        |   |   |   |   |
| Overdrafts                                                                                                                                                                                                                                 |   | $                                       | —     |   | $ | 197,441 |   |
| Current                        maturities of revolving line of credit (Note 3)                                                                                                                                                                  |   |                                    | 223,283     |   |   | 4,224,285 |   |
| Current                        maturities of long-term debt (Note 3)                                                                                                                                                                       |   |                                    | 3,366,180   |   |   | 2,013,977 |   |
| Accounts                        payable                                                                                                                                                                                                    |   |                                    | 3,097,963   |   |   | 1,039,901 |   |
| Accrued                        expenses and other current liabilities (Note 4)                                                                                                                                                                  |   |                                    | 5,799,574   |   |   | 2,523,253 |   |
| Total                        current liabilities                                                                                                                                                                                                |   |                                    | 12,487,000  |   |   | 9,998,857 |   |
|                                                                                                                                                                                                                                            |   |                                    |        |   |   |   |   |
| Long-term                        debt (Note 3)                                                                                                                                                                                                  |   |                                    | 3,191,728   |   |   | 4,543,931 |   |
|                                                                                                                                                                                                                                            |   |                                    |        |   |   |   |   |
| Commitments                        and contingencies (Notes 3, 8 and 9)                                                                                                                                                                         |   |                                    |        |   |   |   |   |
|                                                                                                                                                                                                                                            |   |                                    |        |   |   |   |   |
| **Stockholders’                        Equity**                        (Notes 6 and 7)                                                                                                                                                    |   |                                    |        |   |   |   |   |
| Preferred                        stock; $.0001 par value; 5,000,000 shares authorized, none                        outstanding                                                                                                             |   |                                    | —     |   |   | — |   |
| Common                        stock; $.0001 par value; 50,000,000 shares authorized; 12,790,799                        and                        12,311,366 shares issued; 11,614,090 and 11,134,657 shares                        outstanding |   |                                    | 1,279       |   |   | 1,231 |   |
| Additional                        paid-in capital                                                                                                                                                                                          |   |                                    | 44,100,636  |   |   | 43,658,853 |   |
| Accumulated                        deficit                                                                                                                                                                                                 |   |                                    | (29,624,862 | ) |   | (35,790,241 | ) |
| Treasury                        stock, at cost (1,176,709 shares)                                                                                                                                                                          |   |                                    | (2,322,871  | ) |   | (2,322,871 | ) |
| Total                        stockholders’ equity                                                                                                                                                                                    |   |                                    | 12,154,182  |   |   | 5,546,972 |   |
|                                                                                                                                                                                                                                            |   | $                                       | 27,832,910  |   | $ | 20,089,760 |   |

----

**I.C.        Isaacs & Company, Inc.**

**Consolidated        Statements of Operations**

|                                                                                                                    |   |   | **Years                      Ended December 31,**  |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|
|                                                                                                                    |   |   | **2004**                                           |   |   | **2003**  |   |   | **2002**  |   |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Net                      sales                                                                                          |        | $      | 80,649,394                                              |        | $ | 64,304,688 |  | $ | 63,521,197 |   |
| Cost                      of sales                                                                                 |   |   | 49,583,094                                              |   |   | 43,706,398 |   |   | 41,776,131 |   |
| Gross                      profit                                                                                  |   |   | 31,066,300                                              |   |   | 20,598,290 |   |   | 21,745,066 |   |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Operating                      Expenses                                                                                 |   |   |                                                    |   |   |   |   |   |   |   |
| Selling                                                                                                            |   |   | 10,412,502                                              |   |   | 9,524,799 |   |   | 11,486,303 |   |
| License                      fees (Note 9)                                                                         |   |   | 5,330,523                                               |   |   | 4,163,035 |   |   | 5,017,637 |   |
| Distribution                      and shipping                                                                     |   |   | 1,968,214                                               |   |   | 2,062,032 |   |   | 2,392,809 |   |
| General                      and administrative                                                                    |   |   | 7,531,809                                               |   |   | 5,243,916 |   |   | 7,115,285 |   |
| Loss                      on sale of property                                                                           |   |   | —                                                 |   |   | 414,650 |   |   | — |   |
| Total                      operating expenses                                                                      |   |   | 25,243,048                                              |   |   | 21,408,432 |   |   | 26,012,034 |   |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Operating                      income (loss )                                                                      |   |   | 5,823,252                                               |   |   | (810,142 | ) |   | (4,266,968 | ) |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Other                      income (expense)                                                                             |   |   |                                                    |   |   |   |   |   |   |   |
| Interest,                      net of interest income of $6,543, $1,687 and $955                                        |   |   | (729,068                                                | )      |   | (1,008,744 | ) |   | (657,189 | ) |
| Other,                      net                                                                                    |   |   | 26,195                                                  |   |   | 124,120 |   |   | (38,442 | ) |
| Total                      other expense                                                                           |   |   | (702,873                                                | )      |   | (884,624 | ) |   | (695,631 | ) |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Income                      (loss) from continuing operations                                                           |   |   | 5,120,379                                               |   |   | (1,694,766 | ) |   | (4,962,599 | ) |
| Income                      tax benefit                                                                                 |   |   | 1,045,000                                               |   |   | — |   |   | — |   |
| Net                      income (loss)                                                                                  |   |   | 6,165,379                                               |   |   | (1,694,766 | ) |   | (4,                      962,599 | ) |
| Preferred                      stock deemed dividend                                                                    |   |   | —                                                 |   |   | — |   |   | (596,252 | ) |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Net                      income (loss) attributable to common stockholders                                         |   | $      | 6,165,379                                               |   | $ | (1,694,766 | ) | $ | (5,558,851 | ) |
| Basic                      net income (loss) per share                                                                  |   | $      | 0.55                                                    |   | $ | (0.15 | ) | $ | (0.61 | ) |
| Basic                      net (loss) per share from preferred stock deemed dividend                                    |   |   | —                                                 |   |   | — |   |   | (0.07 | ) |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Basic                      net income (loss) per share attributable to common                      stockholders    |   | $      | 0.55                                                    |   | $ | (0.15 | ) | $ | (0.68 | ) |
| Basic                      weighted average shares outstanding                                                          |   |   | 11,264,483                                              |   |   | 11,134,657 |   |   | 8,160,136 |   |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Diluted                      net income (loss) per share                                                                |   | $      | 0.46                                                    |   | $ | (0.15 | ) | $ | (0.61 | ) |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Diluted                      net (loss) per share from preferred stock deemed dividend                                  |   |   | —                                                 |   |   | — |   |   | (0.07 | ) |
|                                                                                                                    |   |   |                                                    |   |   |   |   |   |   |   |
| Diluted                      net income (loss) per share attributable to common                      stockholders  |   | $      | 0.46                                                    |   | $ | (0.15 | ) | $ | (0.68 | ) |
| Diluted                      weighted average shares outstanding                                                        |   |   | 13,355,300                                              |   |   | 11,134,657 |   |   | 8,160,136 |   |

----

**I.C.        Isaacs & Company, Inc.**

**Consolidated        Statements of Stockholders’ Equity**

|                                                                  |   |   | **Common                    Stock** |   |   | **Additional****Paid-in** |   |   | **Accumulated**               |   |   | **Treasury** |   |   |       |   |
|-----------------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|---------------------------|--------|--------|-------------------------------|--------|--------|--------------|--------|--------|------------|--------|
|                                                                       |   |   | **Shares**                     |   |   | **Amount**           |   |   | **Capital**              |   |   | **Deficit**  |   |   | **Stock**  |   |   | **Total** |  |
|                                                                  |   |   |                                |   |   |                      |   |   |                          |   |   |         |   |   |       |   |   |   |   |
| Balance,                    at December 31, 2001                      |   |   | 9,011,366                           |   | $      | 901                       |   | $      | 39,674,931                    |   | $      | (28,536,624  | )      | $      | (2,322,871 | )      | $ | 8,816,337 |   |
| Net                    loss                                      |   |   | —                             |   |   | —                   |   |   | —                       |   |   | (4,962,599   | )      |   | —    |   |   | (4,962,599 | ) |
| Conversion                    of Series A Preferred Stock        |   |   | 3,300,000                           |   |   | 330                       |   |   | 3,299,670                     |   |   | —      |   |   | —    |   |   | 3,300,000 |   |
| Officers’                    compensation contribution          |   |   | —                             |   |   | —                   |   |   | 88,000                        |   |   | —      |   |   | —    |   |   | 88,000 |   |
| Deemed                    dividend in connection with preferred stock |   |   | —                             |   |   | —                   |   |   | 596,252                       |   |   | (596,252     | )      |   | —    |   |   | — |   |
|                                                                  |   |   |                                |   |   |                      |   |   |                          |   |   |         |   |   |       |   |   |   |   |
| Balance,                    at December 31, 2002                      |   |   | 12,311,366                          |   | $      | 1,231                     |   | $      | 43,658,853                    |   | $      | (34,095,475  | )      | $      | (2,322,871 | )      | $ | 7,241,738 |   |
| Net                    loss                                      |   |   | —                             |   |   | —                   |   |   | —                       |   |   | (1,694,766   | )      |   | —    |   |   | (1,694,766 | ) |
|                                                                  |   |   |                                |   |   |                      |   |   |                          |   |   |         |   |   |       |   |   |   |   |
| Balance,                    at December 31, 2003                      |   |   | 12,311,366                          |   | $      | 1,231                     |   | $      | 43,658,853                    |   | $      | (35,790,241  | )      | $      | (2,322,871 | )      | $ | 5,546,972 |   |
| Net                    Income                                         |   |   | —                             |   |   | —                   |   |   | —                       |   |   | 6,165,379    |   |   | —    |   |   | 6,165,379 |   |
| Issuance                    of common stock                           |   |   | 479,433                             |   |   | 48                        |   |   | 441,783                       |   |   | —      |   |   | —    |   |   | 441,831 |   |
|                                                                  |   |   |                                |   |   |                      |   |   |                          |   |   |         |   |   |       |   |   |   |   |
| Balance,                    at December 31, 2004                      |   |   | 12,790,799                          |   | $      | 1,279                     |   | $      | 44,100                    636 |   | $      | (29,624,862  | )      | $      | (2,322,871 | )      | $ | 12,154,182 |   |

----

**I.C.        Isaacs & Company, Inc.**

**Consolidated        Statements of Cash Flows**

|                                                                                                                                                 |   | **Years                  Ended December 31,** |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                                                                                                 |   | **2004**                                      |       | **2003** |   | **2002** |   |
|                                                                                                                                                 |   |                                          |       |   |   |   |   |
| Operating                  Activities                                                                                                                |   |                                          |       |   |   |   |   |
| Net                  income (loss)                                                                                                              |   | $                                             | 6,165,379  |   | $ | (1,694,766 | ) | $ | (4,962,599 | ) |
| Adjustments                  to reconcile net income (loss) to net cash provided by (used in)                  operating                  activities |   |                                          |       |   |   |   |   |   |   |   |
| Provision                  for doubtful accounts                                                                                                |   |                                          | 370,387    |   |   | 202,111 |   |   | 315,314 |   |
| Write                  off of accounts receivable                                                                                               |   |                                          | (329,387   | ) |   | (172,111 | ) |   | (470,314 | ) |
| Provision                  for sales returns and discounts                                                                                      |   |                                          | 4,088,959  |   |   | 2,477,904 |   |   | 3,672,100 |   |
| Sales                  returns and discounts                                                                                                    |   |                                          | (3,578,959 | ) |   | (2,540,904 | ) |   | (3,744,100 | ) |
| Valuation                  allowance-deferred tax asset                                                                                              |   |                                          | (1,193,000 | ) |   | — |   |   | — |   |
| Depreciation                  and amortization                                                                                                  |   |                                          | 641,095    |   |   | 756,831 |   |   | 1,219,018 |   |
| Loss                  on sale of assets                                                                                                         |   |                                          | —    |   |   | 414,650 |   |   | 37,655 |   |
| Officers’                  compensation contribution                                                                                           |   |                                          | —    |   |   | — |   |   | 88,000 |   |
| (Increase)                  decrease in assets                                                                                                       |   |                                          |       |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                            |   |                                          | (695,613   | ) |   | (1,519,417 | ) |   | 1,245,640 |   |
| Inventories                                                                                                                                     |   |                                          | (4,462,706 | ) |   | 2,588,843 |   |   | (1,372,772 | ) |
| Prepaid                  expenses and other                                                                                                     |   |                                          | (440,827   | ) |   | 138,257 |   |   | 341,129 |   |
| Refundable                  income taxes                                                                                                        |   |                                          | —    |   |   | — |   |   | 31,192 |   |
| Other                  assets                                                                                                                   |   |                                          | 308,155    |   |   | 106,569 |   |   | (1,390,114 | ) |
| Increase                  (decrease) in liabilities                                                                                                  |   |                                          |       |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                               |   |                                          | 2,058,062  |   |   | 132,381 |   |   | (182,933 | ) |
| Accrued                  expenses and other current liabilities                                                                                      |   |                                          | 3,276,321  |   |   | 438,804 |   |   | 148,299 |   |
| Cash                  provided by (used in) operating activities                                                                                |   |                                          | 6,207,866  |   |   | 1,329,152 |   |   | (5,024,485 | ) |
|                                                                                                                                                 |   |                                          |       |   |   |   |   |   |   |   |
| Investing                  Activities                                                                                                                |   |                                          |       |   |   |   |   |   |   |   |
| Proceeds                  from sale of assets                                                                                                   |   |                                          | —    |   |   | 268,221 |   |   | 3,050 |   |
| Capital                  expenditures                                                                                                           |   |                                          | (1,858,489 | ) |   | (181,042 | ) |   | (103,880 | ) |
| Cash                  (used in) provided by investing activities                                                                                |   |                                          | (1,858,489 | ) |   | 87,179 |   |   | (100,830 | ) |
|                                                                                                                                                 |   |                                          |       |   |   |   |   |   |   |   |
| Financing                  Activities                                                                                                                |   |                                          |       |   |   |   |   |   |   |   |
| Overdrafts                                                                                                                                      |   |                                          | (197,441   | ) |   | (428,641 | ) |   | 277,226 |   |
| Principal                  (payments on) proceeds from revolving line of credit                                                                 |   |                                          | (4,001,002 | ) |   | (806,168 | ) |   | 5,030,453 |   |
| Cash                  on deposit to secure letter of credit                                                                                     |   |                                          | (250,000   | ) |   | — |   |   | — |   |
| Issuance                  of common stock                                                                                                            |   |                                          | 441,831    |   |   | — |   |   | — |   |
| Deferred                  financing costs                                                                                                       |   |                                          | (79,379    | ) |   | — |   |   | (125,000 | ) |
| Principal                  payments on long-term debt                                                                                                |   |                                          | —    |   |   | — |   |   | (283,179 | ) |
| Cash                  (used in) provided by financing activities                                                                                |   |                                          | (4,085,991 | ) |   | (1,234,809 | ) |   | 4,899,500 |   |
| Increase                  (decrease) in cash and cash equivalents                                                                               |   |                                          | 263,386    |   |   | 181,522 |   |   | (225,815 | ) |
| Cash                  and Cash Equivalents, at beginning of year                                                                                |   |                                          | 782,519    |   |   | 600,997 |   |   | 826,812 |   |
| Cash                  and Cash Equivalents, at end of year                                                                                      |   | $                                             | 1,045,905  |   | $ | 782,519 |   | $ | 600,997 |   |

----

**I.C.        Isaacs & Company, Inc.**

**Summary        of Accounting Policies**

**Basis        of Presentation**

**Business        Description**

**Risks        and Uncertainties**

**Use        of Estimates**

----

**Concentration        of Credit Risk**

**Revenue        Recognition**

**Cost        of Goods Sold and Operating Expenses**

----

**Inventories**

**Property,        Plant and Equipment**

**Asset        Impairment**

**Stock        Options **

----

|                                                                                                                                                                 |   |   | **Year                    ended December 31,**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|                                                                                                                                                                 |   |   | **2004**                                        |   |   | **2003**  |   |   | **2002**  |   |
|                                                                                                                                                                 |   |   |                                                 |   |   |   |   |   |   |   |
|  Net                  income (loss) attributable to common stockholders, as reported                                                                            |   | $      | 6,165,379                                            |   | $ | (1,694,766  | )  | $ | (5,558,851  | )  |
| Total                    stock-based employee compensation expense determined under the                    fair value                    based method for all awards |   |   | (286,187                                             | )      |   | (231,448 | ) |   | (20,332 | ) |
| Pro                    forma net income (loss) attributable to common                    stockholders                                                                |   | $      | 5,879,192                                            |   | $ | (1,926,214 | ) | $ | (5,579,183 | ) |
|                                                                                                                                                                 |   |   |                                                 |   |   |   |   |   |   |   |
| Basic                    net income (loss) per common share, as reported                                                                                        |   | $      | 0.55                                                 |   | $ | (0.15 | ) | $ | (0.68 | ) |
|                                                                                                                                                                 |   |   |                                                 |   |   |   |   |   |   |   |
| Basic                    net income (loss) per common share, pro forma                                                                                          |   | $      | 0.52                                                 |   | $ | (0.17 | ) | $ | (0.68 | ) |
|                                                                                                                                                                 |   |   |                                                 |   |   |   |   |   |   |   |
| Diluted                    net income (loss) per common share, as reported                                                                                      |   | $      | 0.46                                                 |   | $ | (0.15 | ) | $ | (0.68 | ) |
|                                                                                                                                                                 |   |   |                                                 |   |   |   |   |   |   |   |
| Diluted                    net income (loss) per common share, pro forma                                                                                        |   | $      | 0.44                                                 |   | $ | (0.17 | ) | $ | (0.68 | ) |

**Advertising        Costs**

**Cash        Equivalents**

**Income        Taxes**

**Fair        Value of Financial Instruments**

**Net        Income or Loss Per Share**

----

**Comprehensive        Income**

**Recent        Accounting Pronouncements**
** **

----

**I.C.        Isaacs & Company, Inc. **

**Notes        to Consolidated Financial Statements**

**1.        Inventories**

| Inventories                    consist of the following: |   |  **December                    31,** |      |
|----------------------------------------------------------|--------|-------------------------------------------|-----------|
|                                                     |   | **2004**                                  |      | **2003** |   |
|                                                     |   |                                      |      |   |   |
| Work-in-process                                     |   | $                                         | 227,444   |   | $ | 289,407 |   |
| Finished                    goods                   |   |                                      | 8,089,993 |   |   | 3,565,324 |   |
|                                                     |   | $                                         | 8,317,437 |   | $ | 3,854,731 |   |

**2.        Property, Plant and Equipment**

| Property,                  plant and equipment consists of the following: |   | **December                  31,** |       | **Estimated****Useful****Lives** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------|------------|----------------------------------|--------|
|                                                                      |   | **2004**                          |       | **2003**                         |   |
|                                                                      |   |                              |       |                             |   |   |   |
| Land                                                                 |   | $                                 | 149,160    |                             | $      | 149,160 |   |   |   |   |
| Buildings                  and improvements                          |   |                              | 1,262,892  |                             |   | 1,262,892 |   |   | 18                  years |   |
| Machinery,                  equipment and fixtures                   |   |                              | 7,120,289  |                             |   | 6,970,708 |   |   | 5-7                  years |   |
| Leasehold                  improvements and other                    |   |                              | 2,948,108  |                             |   | 1,239,200 |   |   | various |   |
|                                                                      |   |                              | 11,480,449 |                             |   | 9,621,960 |   |   |   |   |
| Less                  accumulated depreciation and amortization      |   |                              | 9,392,216  |                             |   | 8,844,871 |   |   |   |   |
|                                                                      |   | $                                 | 2,088,233  |                             | $      | 777,089 |   |   |   |   |

----

**3.        Long-term Debt **

|  Long-term                  debt consists of the following:       |   |  **December                    31,** |      |
|------------------------------------------------------------------------|--------|-------------------------------------------|-----------|
|                                                                   |   | **2004**                                  |      | **2003** |   |
|                                                                   |   |                                      |      |   |   |
| Revolving                    line of credit (a)(b)                |   | $                                         | 223,283   |   | $ | 4,224,285 |   |
| Notes                    payable (c)                                   |   |                                      | 6,557,908 |   |   | 6,557,908 |   |
| Total                                                             |   |                                      | 6,781,191 |   |   | 10,782,193 |   |
|                                                                   |   |                                      |      |   |   |   |   |
| Less                    current maturities of revolving line of credit |   |                                      | 223,283   |   |   | 4,224,285 |   |
| Less                    current maturities of long-term debt           |   |                                      | 3,366,180 |   |   | 2,013,977 |   |
|                                                                   |   | $                                         | 3,191,728 |   | $ | 4,543,931 |   |
|                                                                   |   |                                      |      |   |   |   |   |

| (a)     | On                  December 30, 2004, the Company entered into a three year credit                  facility                  (the “Credit Facility”) with Wachovia Bank, National Association                  (“Wachovia”). The Credit Facility provides that the Company may borrow,                  using as collateral, up to 85% of eligible accounts receivable                  and a                  portion of eligible inventory, both as defined by the Credit Facility.                  Borrowings under the Credit Facility may not exceed $25.0 million                  including outstanding letters of credit which are limited to $8.0                  million                  at any one time. There were approximately $3.1 million of outstanding                  letters of credit at December 31, 2004. The Credit Facility accords                  to the                  Company the right, at its election, to borrow these amounts as                  either                  Prime Rate Loans or LIBOR Loans. Prime Rate Loans bear interest                  at the                  prime rate plus the applicable margin in effect from time to time.                  LIBOR                  Loans are limited to three in total, must be a minimum of $1,000,000                  each                  and in integral multiples of $500,000 in excess of that amount,                  and bear                  interest at the LIBOR rate plus the applicable margin in effect                  from time                  to time. The applicable margins, as defined by the Credit Facility,                  fluctuate from 0.00% to 0.75% for the Prime Loans and 2.00% to                  2.75% for                  LIBOR Loans. The applicable margins are inversely affected by fluctuations                  in the amount of “excess availability” - the unused portion of the amount                  available under the facility - which are in staggered increments                  from less                  then $2.5 million to $7.5 million. The Prime Rate and the LIBOR                  Rate were                  5.00% and 3.10% respectively at December 31, 2004. All the amounts                  borrowed under the credit facility at December 31, 2004 were Prime                  Rate                  Loans and the effective rate was 7.0% at that time. Starting in                  2005, the                  Credit Facility also requires the Company to comply with certain                  covenants                  expressed as fixed charge coverage ratios and tangible liability                  to net                  worth ratios. As collateral security for its obligations under                  the Credit                  Facility, the Isaacs and the LP granted a first priority security                  interest                  in all of their respective assets to Wachovia. The                  Company paid $79,379 as a facility fee to Wachovia in connection                  with the                  consummation of the Credit Facility. That fee is deferred and will                  be                  amortized over the life of the Credit Facility. |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)     | Prior                  to December 30, 2004, the Company had an asset-based revolving                  line of                  credit (the "Credit Agreement") with Congress Financial Corporation                  ("Congress"). This Credit Agreement, as amended, provided that                  the Company                  could have borrowed up to 80.0% of net eligible accounts receivable                  and a                  portion of inventory. Borrowings under the Credit Agreement could                  not                  exceed $20.0 million, including outstanding letters of credit which                  were                  limited to either $4.0 million or $6.0 million at various times                  during the                  year. These borrowings bore interest at the lender’s prime rate of                  interest plus 2.25% (effectively 6.50% at December 30, 2004). In                  connection with amending the Credit Agreement in December 2002,                  March 2003                  and November 2003, the Company paid and deferred certain financing                  fees                  and either expensed as paid or amortized them over the remaining                  life of                  the amended Credit Agreement. The Company expensed or amortized                  $125,000                  and $250,000 of these fees in 2004 and 2003.   |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Substantially                    all 2004 and 2003 information relates to Congress Credit Agreement |   | **Year                      Ended December 31,**  |      |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|-----------|
|                                                                                                      |   | **2004**                                          |      | **2003**  |   |
|                                                                                                      |   |                                                   |      |   |   |
| Borrowings                      under revolving line of credit                                       |   | $                                                      | 223,283   |   | $ | 4,224,285 |   |
| Weighted                      average interest rate                                                  |   |                                                   | 6.50      | % |   | 6.30 | % |
| Maximum                      month-end balance during year                                           |   | $                                                      | 6,433,366 |   | $ | 7,836,492 |   |
| Average                      month-end balance during year                                           |   | $                                                      | 4,056,270 |   | $ | 5,956,376 |   |

| (c)     | On                  May 6, 2002, Textile                  Investment International S.A. (“Textile”), an affiliate of Latitude                  Licensing Corp. (“Latitude”), the                  licensor of the Company, acquired                  a note that the Company had issued to a former licensor. On May                  21, 2002,                  Textile exchanged that note for an amended and restated note bearing                  interest at the rate of 8% per annum, (the “Replacement Note”), which                  subordinated Textile’s rights under the note to the rights of Congress                  under the Credit Agreement, deferred the original note’s principal                  payments and extended the maturity date of the note until 2007.                  In                  connection with the execution of the Credit Facility, the Replacement                  Note                  was further amended and restated to subordinate Textile’s rights to the                  rights of Wachovia under the Credit Facility (the “Amended and Restated                  Replacement Note”). Pursuant to the subordination provisions of the                  Replacement Note, the Company was obligated to defer the payments                  that                  otherwise would have been due thereunder in December 2002, and                  during each                  calendar quarter of 2003 and 2004. Also, pursuant to the provisions                  of the                  Replacement Note, the non-payment and deferral of those payments                  did not                  constitute a default thereunder. The Replacement Note has been                  classified                  as current or long-term based upon the respective original due                  dates of                  the quarterly payments specified in the Replacement Note. Accordingly,                  each deferred quarterly payment has been classified as current                  even though                  the payment thereof may not be due until a future                  year. |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2005   |   | $      | 3,366,180 |   |
|--------|--------|--------|-----------|--------|
| 2006   |   |   | 1,465,263 |   |
| 2007   |   |   | 1,726,465 |   |
|   |   | $      | 6,557,908 |   |

**4.        Accrued Expenses**

| Accrued                      expenses consist of the following:               |   |   | **December                      31,**  |   |
|-------------------------------------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                          |   |   | **2004**                               |   |   | **2003**  |   |
|                                                                          |   |   |                                        |   |   |   |   |
| Royalties                      & other licensor obligations, Note 8  |   | $      | 2,489,274                                   |   | $ | 1,153,094 |   |
| Accrued                      interest                                         |   |   | 1,136,023                                   |   |   | 702,628 |   |
| Management                      & selling bonuses                         |   |   | 1,087,442                                   |   |   | 236,587 |   |
| Severance                      accrual                                        |   |   | 290,570                                     |   |   | — |   |
| Accrued                      professional fees                           |   |   | 162,650                                     |   |   | 50,000 |   |
| Income                      taxes payable                                     |   |   | 148,000                                     |   |   | — |   |
| Accrued                      compensation                                     |   |   | 120,871                                     |   |   | 68,397 |   |
| Customer                      credit balances                            |   |   | 82,832                                      |   |   | 61,633 |   |
| Payroll                      tax withholdings                                 |   |   | 71,934                                      |   |   | 69,619 |   |
| Sales                      commissions payable                                |   |   | 51,629                                      |   |   | 60,294 |   |
| Property                      taxes                                      |   |   | 19,895                                      |   |   | 19,895 |   |
| Other                                                                         |   |   | 138,454                                     |   |   | 101,106 |   |
|                                                                          |   | $      | 5,799,574                                   |   | $ | 2,523,253 |   |

**5.          Income Taxes**

----

|  Significant                  items comprising the Company’s deferred tax assets are as                  follows: |   | **December                    31,**  |        |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|
|                                                                                                                         |   | **2004**                             |        | **2003**  |   |
|                                                                                                                         |   |                                      |        |   |   |
| Net                    operating loss carry forwards                                                                    |   | $                                         | 15,908,000  |   | $ | 20,490,000 |   |
| Depreciation                    and amortization                                                                        |   |                                      | 764,000     |   |   | 773,000 |   |
| Accrued                    royalty payments                                                                                  |   |                                      | 915,000     |   |   | — |   |
| Accrued                    interest payable                                                                                  |   |                                      | 446,000     |   |   | — |   |
| Capital                    loss carryforward                                                                                 |   |                                      | 163,000     |   |   | 178,000 |   |
| Allowance                    for doubtful accounts                                                                      |   |                                      | 124,000     |   |   | 118,000 |   |
| Inventory                    valuation                                                                                  |   |                                      | 51,000      |   |   | 37,000 |   |
| Accrued                    severance                                                                                         |   |                                      | 114,000     |   |   | — |   |
| Contribution                    carryovers                                                                                   |   |                                      | 44,000      |   |   | 46,000 |   |
| Other                                                                                                                   |   |                                      | 21,000      |   |   | 22,000 |   |
|                                                                                                                         |   |                                      | 18,550,000  |   |   | 21,664,000 |   |
|                                                                                                                         |   |                                      |        |   |   |   |   |
| Valuation                    allowance                                                                                  |   |                                      | (17,357,000 | ) |   | (21,664,000 | ) |
| Net                    deferred tax asset                                                                               |   | $                                         | 1,193,000   |   | $ | — |   |

|  A                  reconciliation between the statutory and effective tax rates is                  as                  follows: |   | **Year                    Ended December 31,**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                                                                   |   | **2004**                                        |   | **2003**  |   | **2002**  |   |
|                                                                                                                                   |   |                                                 |   |   |   |   |   |
| Federal                    statutory rate                                                                                         |   |                                                 | 34.0   | % |   | (35.0 | )% |   | (35.0 | )% |
| State                    and local taxes, net of federal benefit                                                                  |   |                                                 | 4.0    |   |   | (4.0 | ) |   | (4.0 | ) |
| Nondeductible                    entertainment expense                                                                            |   |                                                 | 2.0    |   |   | 1.0 |   |   | 1.0 |   |
| Alternative                    minimum taxes                                                                                           |   |                                                 | 2.0    |   |   | — |   |   | — |   |
| Losses                    for which a benefit (is)/is not currently available                                                          |   |                                                 | (62.4  | ) |   | 38.0 |   |   | 38.0 |   |
|                                                                                                                                   |   |                                                 | (20.4  | )% |   | — | % |   | — | % |

|  The                    2004 net tax benefit is derived from the following components: |   |   | **Year                      Ended December 31, 2004**  |   |
|---------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|                                                                                        |   |   | **Federal**                                            |   |   | **State**  |   |   | **Total**  |   |
|                                                                                        |   |   |                                                        |   |   |   |   |   |   |   |
| Current                      tax expense                                                    |   | $      | (148,000                                                    | )      | $ | — |   | $ | (148,000 | ) |
| Deferred                      tax benefit                                                   |   |   | 950,000                                                     |   |   | 243,000 |   |   | 1,193,000 |   |
| Net                      income tax benefit                                                 |   | $      | 802,000                                                     |   | $ | 243,000 |   | $ | 1,045,000 |   |

----

**6.        Stockholders’ Equity**

**7.        Stock Options**

|  **Options                    outstanding at December                    31, 2004** |   | **Options                    exercisable at December 31, 2004**   |      |
|------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|-----------|
| **Range                    of****Exercise****Prices**                                    |   | **Number****Outstanding**                                                   |      | **Weighted****Average****Remaining****Life                    (years)** |   | **Weighted****Average****Exercise****Price** |   | **Number****Exercisable** |   |  **Weighted****Average****Exercise****Price** |   |
|                                                                                     |   |                                                                        |      |   |   |   |   |   |   |    |   |
| $0.30                    to $0.60                                                        |   |                                                                        | 364,667   |   |   | 5.80 |   | $ | 0.568 |   |   | 198,000 |   | $ | 0.551 |   |
| $0.87                    to $2.125                                                       |   |                                                                        | 1,226,150 |   |   | 4.35 |   | $ | 1.260 |   |   | 867,817 |   | $ | 1.390 |   |
| $0.30                    to $2.125                                                       |   |                                                                        | 1,590,817 |   |   | 4.59 |   | $ | 1.101 |   |   | 1,065,817 |   | $ | 1.234 |   |

|  **Options                    outstanding at December 31, 2003** |   | **Options                    exercisable at December 31, 2003**  |      |
|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
| **Range                    of****Exercise****Prices**                 |   | **Number****Outstanding**                                             |      | **Weighted****Average****Remaining****Life                    (years)** |   | **Weighted****Average****Exercise****Price** |   | **Number****Exercisable** |   |  **Weighted****Average****Exercise****Price** |   |
|                                                                  |   |                                                                  |      |   |   |   |   |   |   |    |   |
| $0.30                    to $0.60                                     |   |                                                                  | 645,000   |   |   | 6.26 |   | $ | 0.193 |   |   | — |   | $ | — |   |
| $0.90                    to $2.125                                    |   |                                                                  | 1,425,250 |   |   | 5.86 |   | $ | 0.978 |   |   | 1,425,250 |   | $ | 1.311 |   |
| $0.30                    to $2.125                                    |   |                                                                  | 2,070,250 |   |   | 5.98 |   | $ | 0.679 |   |   | 1,425,250 |   | $ | 1.311 |   |

----

|  **Options                    outstanding at December 31, 2002** |   | **Options                    exercisable at December 31, 2002**  |      |
|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
| **Range                    of****Exercise****Prices**                 |   | **Number****Outstanding**                                             |      | **Weighted****Average****Remaining****Life                    (years)** |   | **Weighted****Average****Exercise****Price** |   | **Number****Exercisable** |   |  **Weighted****Average****Exercise****Price** |   |
|                                                                  |   |                                                                  |      |   |   |   |   |   |   |    |   |
| $0.30                    to $0.58                                     |   |                                                                  | 220,000   |   |   | 9.95 |   | $ | 0.567 |   |   | — |   | $ | — |   |
| $0.90                    to $2.125                                    |   |                                                                  | 1,086,250 |   |   | 6.42 |   | $ | 1.487 |   |   | 867,817 |   | $ | 1.519 |   |
| $0.30                    to $2.125                                    |   |                                                                  | 1,306,250 |   |   | 6.98 |   | $ | 1.332 |   |   | 1,065,817 |   | $ | 1.519 |   |

| The                  following table relates to options activity in 2002, 2003 and 2004                  under                  the Plan: |   | **Number                  of****Options** |      | **Weighted                  Average Exercise Price****per                  Option** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-----------|-------------------------------------------------------------------------------------|--------|
|                                                                                                                                      |   |                                      |      |                                                                                |   |
| Options                  outstanding at December 31, 2001                                                                                 |   |                                      | 1,086,250 |                                                                                |   | 1.470 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Granted                                                                                                                              |   |                                      | 220,000   |                                                                                |   | 0.580 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Options                  outstanding at December 31, 2002                                                                                 |   |                                      | 1,306,250 |                                                                                |   | 1.226 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Granted                                                                                                                              |   |                                      | 925,000   |                                                                                |   | 0.770 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Cancelled                                                                                                                                 |   |                                      | (161,000  | )                                                                                   |   | 1.380 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Options                  outstanding at December 31, 2003                                                                            |   |                                      | 2,070,250 |                                                                                |   | 1.076 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Cancelled                                                                                                                                 |   |                                      | (25,000   | )                                                                                   |   | 0.600 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Granted                                                                                                                              |   |                                      | 25,000    |                                                                                |   | 0.870 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Exercised                                                                                                                            |   |                                      | (479,433  | )                                                                                   |   | 0.922 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Options                  outstanding at December 31, 2004                                                                                 |   |                                      | 1,590,817 |                                                                                |   | 1.101 |   |
|                                                                                                                                      |   |                                      |      |                                                                                |   |   |   |
| Options                  exercisable at December 31, 2004                                                                                 |   |                                      | 1,065,817 |                                                                                |   | 1.234 |   |

**8.        Commitments and Contingencies **

*Operating        Leases*

|       |   | **Showrooms                  &****Office                  Space** |      | **Computer                  &****Office****Equipment** |   | **Total** |   |
|------------|--------|-----------------------------------------------------------------------|-----------|------------------------------------------------------------|--------|-----------|--------|
|       |   |                                                                  |      |                                                       |   |      |   |
| 2005       |   | $                                                                     | 389,309   |                                                       | $      | 115,217   |   | $ | 504,526 |   |
| 2006       |   |                                                                  | 399,043   |                                                       |   | 93,647    |   |   | 492,690 |   |
| 2007       |   |                                                                  | 409,018   |                                                       |   | 43,308    |   |   | 452,326 |   |
| 2008       |   |                                                                  | 419,244   |                                                       |   | 32,879    |   |   | 452,123 |   |
| 2009       |   |                                                                  | 432,808   |                                                       |   | —   |   |   | 432,808 |   |
| Thereafter |   |                                                                  | 2,465,201 |                                                       |   | —   |   |   | 2,465,201 |   |
|       |   | $                                                                     | 4,514,623 |                                                       | $      | 285,051   |   | $ | 4,799,674 |   |

----

|  Total                  rent expense is as follows: |   |  **Year                    Ended December 31,** |    |
|----------------------------------------------------------|--------|------------------------------------------------------|---------|
|                                                     |   | **2004**                                             |    | **2003** |   | **2002** |   |
|                                                     |   |                                                 |    |   |   |   |   |
| Minimum                    rentals                  |   | $                                                    | 386,345 |   | $ | 475,966 |   | $ | 631,925 |   |
| Other                    lease costs                |   |                                                 | 40,631  |   |   | 154,437 |   |   | 175,218 |   |
|                                                     |   |                                                 | 426,976 |   | $ | 630,403 |   | $ | 807,143 |   |

***Licenses***

*Girbaud        Men’s Licensing Agreement*

*Girbaud        Women’s Licensing Agreement*

----

*Employment        Agreements*

| **Summary                        schedule of                        commitments: **  |   | **Payments                        Due By Period** |       |
|------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                                                           |   | **Total**                                         |       | **Current** |   |  **1-3                        years** |   | **4-5                        years** |   | **After                        5 years** |   |
|                                                                                           |   |                                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                        leases                                                        |   | $                                                 | 4,799,673  |   | $ | 504,526 |   | $ | 945,016 |   | $ | 884,930 |   | $ | 2,465,201 |   |
| Employment                        agreements                                                   |   |                                              | 2,826,500  |   |   | 1,380,000 |   |   | 1,446,500 |   |   | — |   |   | — |   |
| Licensing                        agreement fee obligations                                     |   |                                              | 15,830,526 |   |   | 6,830,526 |   |   | 9,000,000 |   |   | — |   |   | — |   |
| Licensing                        agreement fashion show obligations                            |   |                                              | 975,000    |   |   | 375,000 |   |   | 600,000 |   |   | — |   |   | — |   |
| Licensing                        agreement creative & advertising fee obligations          |   |                                              | 570,000    |   |   | 190,000 |   |   | 380,000 |   |   |   |   |   |   |   |
| Promotional                        expense license requirement                                 |   |                                              | 2,700,000  |   |   | 900,000 |   |   | 1,800,000 |   |   | — |   |   | — |   |
| Total                        contractual obligations                                           |   | $                                                 | 27,701,699 |   | $ | 10,180,052 |   | $ | 14,171,516 |   | $ | 884,930 |   | $ | 2,465,201 |   |

**(*)            **
**.**

**9.        Retirement Plan **

|                                                                  |   |  **Years                    Ended December 31,** |     |
|-----------------------------------------------------------------------|--------|-------------------------------------------------------|----------|
|                                                                  |   | **2004**                                              |     | **2003** |   | **2002** |   |
|                                                                  |   |                                                  |     |   |   |   |   |   |   |   |
| Service                    cost of current period                |   | $                                                     | 60,000   |   | $ | 54,000 |   | $ | 88,000 |   |
| Interest                    on the above service cost            |   |                                                  | 4,000    |   |   | 4,000 |   |   | 6,000 |   |
|                                                                  |   |                                                  | 64,000   |   |   | 58,000 |   |   | 94,000 |   |
| Interest                    on the projected benefit obligation  |   |                                                  | 522,000  |   |   | 450,000 |   |   | 458,000 |   |
| Expected                    return on plan assets                |   |                                                  | (556,000 | ) |   | (519,000 | ) |   | (575,000 | ) |
| Amortization                    of prior service cost            |   |                                                  | 43,000   |   |   | 43,000 |   |   | 43,000 |   |
| Amortization                    of loss                          |   |                                                  | 373,000  |   |   | 317,000 |   |   | 224,000 |   |
| Pension                    cost                                  |   | $                                                     | 446,000  |   | $ | 349,000 |   | $ | 244,000 |   |

----

|                                                                                            |   | **Years                    ended December 31,**  |      |
|-------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                                                            |   | **2004**                                         |      | **2003**  |   | **2002**  |   |
|                                                                                            |   |                                                  |      |   |   |   |   |
| Vested                    benefits                                                         |   | $                                                     | 6,704,000 |   | $ | 5,764,000 |   | $ | 5,756,000 |   |
| Nonvested                    benefits                                                      |   |                                                  | 30,000    |   |   | 30,000 |   |   | 35,000 |   |
| Accumulated                    benefit obligation                                          |   |                                                  | 6,734,000 |   |   | 5,794,000 |   |   | 5,791,000 |   |
| Effect                    of anticipated future compensation levels and other events       |   |                                                  | 425,000   |   |   | 245,000 |   |   | 297,000 |   |
| Projected                    benefit obligation                                            |   |                                                  | 7,159,000 |   |   | 6,039,000 |   |   | 6,088,000 |   |
| Fair                    value of assets held in the plan                                   |   |                                                  | 7,438,000 |   |   | 7,396,000 |   |   | 7,092,000 |   |
| (Excess)/deficit                    of projected benefit obligation over plan assets       |   |                                                  | 279,000   |   |   | 1,357,000 |   |   | 1,004,000 |   |
| Unrecognized                    net loss from past experience different from that assumed  |   |                                                  | 4,000,000 |   |   | 3,150,000 |   |   | 3,509,000 |   |
| Unrecognized                    prior service cost                                         |   |                                                  | 43,000    |   |   | 85,000 |   |   | 128,000 |   |
| Net                    prepaid periodic pension cost                                       |   | $                                                     | 4,322,000 |   | $ | 4,592,000 |   | $ | 4,641,000 |   |

|  The                  following sets forth the Plan’s change in benefit obligation for 2004 and                  2003: |   |  **Years                    Ended December 31,** |      |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                                                                                              |   | **2004**                                              |      | **2003** |   |
|                                                                                                                              |   |                                                  |      |   |   |   |   |
| Benefit                    obligation at beginning of year                                                                        |   | $                                                     | 6,039,000 |   | $ | 6,088,000 |   |
| Service                    cost                                                                                                   |   |                                                  | 64,000    |   |   | 58,000 |   |
| Interest                    cost                                                                                                  |   |                                                  | 522,000   |   |   | 450,000 |   |
| Benefits                    paid                                                                                                  |   |                                                  | (779,000  | ) |   | (927,000 | ) |
| Actuarial                    loss                                                                                                 |   |                                                  | 1,313,000 |   |   | 370,000 |   |
| Benefit                    obligation at end of period                                                                            |   | $                                                     | 7,159,000 |   | $ | 6,039,000 |   |

|  The                  following sets forth the Plan’s change in plan assets for 2004 and                  2003: |   |  **Years                    Ended December 31,** |      |
|----------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                                                                                       |   | **2004**                                              |      | **2003** |   |
|                                                                                                                       |   |                                                  |      |   |   |   |   |
| Fair                    value of plan assets at beginning of year                                                          |   | $                                                     | 7,396,000 |   | $ | 7,092,000 |   |
| Return                    on plan assets                                                                                   |   |                                                  | 556,000   |   |   | 519,000 |   |
| Employer                    contributions                                                                                  |   |                                                  | 175,000   |   |   | 300,000 |   |
| Benefits                    paid                                                                                           |   |                                                  | (779,000  | ) |   | (927,000 | ) |
| Assets                    gain/loss deferred                                                                               |   |                                                  | 90,000    |   |   | 412,000 |   |
| Fair                    value of plan assets at end of year                                                                |   | $                                                     | 7,438,000 |   | $ | 7,396,000 |   |

----

|  The                  Company’s pension plan weighted-average asset allocations at December 31,                  2004 and 2003, by asset category are as follows: |   |  **December                    31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                                                                                         |   | **2004**                                  |   | **2004** |   |
|                                                                                                                                                                         |   |                                      |   |   |   |   |   |
| Equity                    Securities                                                                                                                                         |   |                                      | 70     | % |   | 65 | % |
| Debt                    Securities                                                                                                                                           |   |                                      | 20     | % |   | 30 | % |
| Cash                    Accounts                                                                                                                                             |   |                                      | 10     | % |   | 5 | % |
|                                                                                                                                                                         |   |                                      | 100    | % |   | 100 | % |

|  The                    following benefit payments, which reflect expected future services,                    as                    appropriate, are expected to be paid: |   |  **Pension                      Benefits** |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                                                                                                                                            |   |                                            |      |   |
| 2005                                                                                                                                                                            |   | $                                               | 114,000   |   |
| 2006                                                                                                                                                                            |   |                                            | 125,000   |   |
| 2007                                                                                                                                                                            |   |                                            | 167,000   |   |
| 2008                                                                                                                                                                            |   |                                            | 203,000   |   |
| 2009                                                                                                                                                                            |   |                                            | 227,000   |   |
| Years                      2010-2014                                                                                                                                            |   |                                            | 1,565,000 |   |
|                                                                                                                                                                            |   | $                                               | 2,401,000 |   |

**10.        Supplemental Disclosures of Cash Flow Information**

| Non-cash                  effect of restructuring BOSS trademark and licensing                  arrangement:  |        | **2004** |         | **2003** |        | **2002** |        |
|--------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
|                                                                                                               |   |     |    |     |   |     |   |
| Conversion                  of redeemable preferred stock to common stock                                          |   | $        | — |     | $      | —  |   | $ | 3,300,000 |   |
| Officers’                  compensation contribution                                                         |   |     | — |     |   | —  |   |   | 88,000 |   |
| Deemed                  dividend in connection with preferred stock                                                |   |     | — |     |   | —  |   |   | 596,252 |   |

----

**11.          Quarterly Financial Data (Unaudited)**

|                                                           |       | ** Quarter** | ** ** |
|----------------------------------------------------------------|------------|-------------------|------------|
| **2004**                                                       | ** ** | **First**         | ** ** | **Second** | ** ** | **Third** | ** ** | **Fourth** |   |
|                                                           |       |              |       |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                                   |       | $                 | 20,764,668 |   | $ | 19,667,444 |   | $ | 21,888,273 |   | $ | 18,329,009 |   |
| Gross                    profit                                |       |              | 7,246,289  |   |   | 7,456,847 |   |   | 9,629,472 |   |   | 6,733,692 |   |
| Net                    income                                  |       |              | 864,581    |   |   | 1,313,466 |   |   | 2,488,531 |   |   | 1,498,801 |   |
| Basic                    earnings per share                    |       | $                 | 0.08       |   | $ | 0.12 |   | $ | 0.22 |   | $ | 0.13 |   |
| Diluted                    earnings per share                  |       | $                 | 0.07       |   | $ | 0.11 |   | $ | 0.18 |   | $ | 0.11 |   |
|                                                           |       |              |       |   |   |   |   |   |   |   |   |   |   |
|                                                           |       | **Quarter ** |
| **2003**                                                       | ** ** | ** **        | **First**  |   |   | **Second** |   |   | **Third** |   |   | **Fourth** |   |
|                                                           |       |              |       |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                                   |       | $                 | 16,446,613 |   | $ | 16,093,518 |   | $ | 15,714,613 |   | $ | 16,049,943 |   |
| Gross                    profit                                |       |              | 4,573,807  |   |   | 5,559,131 |   |   | 5,304,319 |   |   | 5,161,032 |   |
| Net                    (loss) income                           |       |              | (641,625   | ) |   | 471,322 |   |   | (545,429 | ) |   | (979,034 | ) |
| Basic                    and diluted (loss) earnings per share |       | $                 | (0.06      | ) | $ | 0.04 |   | $ | (0.05 | ) | $ | (0.09 | ) |

----

**Report        of Independent Registered Public Accounting Firm**

|                                     |         |  BDO                  Seidman, LLP |
|------------------------------------------|--------------|-----------------------------------------|
|                                     |         |
|                                |    |                               |
| Bethesda,                  Maryland      |         |                                    |
|  February                  23, 2005 |              |

----

**SCHEDULE        II**

**I.        C. Isaacs & Company, Inc.**

**Valuation        and Qualifying Accounts**

| **Description**                                          |   | **Balance                  Beginning of the Year** |      | **Charged                  to Costs and Expenses** |   | **Deduction** |   | **Balance                  at End of Year** |       |
|----------------------------------------------------------|--------|----------------------------------------------------|-----------|----------------------------------------------------|--------|---------------|--------|---------------------------------------------|------------|
|                                                     |   |                                               |      |                                               |   |          |   |                                        |       |
| Year                  Ended December 31, 2002            |   |                                               |      |                                               |   |          |   |                                        |       |
| Allowance                  for doubtful accounts         |   | $                                                  | 400,000   |                                               | $      | 315,000       |   | $                                           | (470,000   | ) | $ | 245,000 |   |
| Merchandise                  allowances                  |   |                                               | 1,400,000 |                                               |   | 2,277,000     |   |                                        | (2,119,000 | ) |   | 1,558,000 |   |
| Reserve                  for sales returns and discounts |   |                                               | 198,000   |                                               |   | 3,672,000     |   |                                        | (3,744,000 | ) |   | 126,000 |   |
|                                                     |   |                                               |      |                                               |   |          |   |                                        |       |   |   |   |   |
| Year                  Ended December 31, 2003            |   |                                               |      |                                               |   |          |   |                                        |       |   |   |   |   |
| Allowance                  for doubtful accounts         |   | $                                                  | 245,000   |                                               | $      | 202,000       |   | $                                           | (172,000   | ) | $ | 275,000 |   |
| Merchandise                  allowances                  |   |                                               | 1,558,000 |                                               |   | 1,920,000     |   |                                        | (2,317,000 | ) |   | 1,161,000 |   |
| Reserve                  for sales returns and discounts |   |                                               | 126,000   |                                               |   | 2,477,000     |   |                                        | (2,540,000 | ) |   | 63,000 |   |
|                                                     |   |                                               |      |                                               |   |          |   |                                        |       |   |   |   |   |
| Year                  Ended December 31, 2004            |   |                                               |      |                                               |   |          |   |                                        |       |   |   |   |   |
| Allowance                  for doubtful accounts         |   | $                                                  | 275,000   |                                               | $      | 370,000       |   | $                                           | (329,000   | ) | $ | 316,000 |   |
| Merchandise                  allowances                  |   |                                               | 1,161,000 |                                               |   | 3,777,000     |   |                                        | (3,197,000 | ) |   | 1,741,000 |   |
| Reserve                  for sales returns and discounts |   |                                               | 63,000    |                                               |   | 4,089,000     |   |                                        | (3,579,000 | ) |   | 573,000 |   |

----

**Exhibit        Index**

| **Exhibit                    No.** | ** ** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.01                          |       | Amended                    and Restated Certificate of Incorporation (a copy of which was                    filed with                    the Commission on October 3, 1997 as Exhibit 3.01 to the Company’s                    Registration Statement on Form S-1 (the “S-1 Registration Statement”), and                    is hereby incorporated herein by this reference).                                                                                                                                                                                       |
| 3.02                          |       | Amended                    and Restated By-laws (a copy of which was filed as Exhibit 3.02                    to the S-1                    Registration Statement, and is hereby incorporated herein by                    this                    reference).                                                                                                                                                                                                                                                                                                                          |
| 3.03                          |       | Certificate                    of Designation of the Series A Convertible Preferred Stock of                    the Company                    (a copy of which was filed with the Commission on November 15,                    1999 as                    Exhibit 3.03 to the Company’s Quarterly Report on Form 10-Q for the                    quarter ended September 30, 1999, and is hereby incorporated                    herein by                    this reference).                                                                                                   |
| 3.04                          |       | Certificate                    of Amendment to the Certificate of Designation of the Series                    A Convertible                    Preferred Stock of the Company (a copy of which was filed with                    the                    Commission on April 2, 2001 as Exhibit 3.04 to the Company’s Annual Report                    on Form 10-K for the year ended December 31, 2000, and is hereby                    incorporated herein by this reference.                                                                                                  |
| 3.05                          |       | Second                    Certificate of Amendment to the Certificate of Designation of                    the Series A                    Convertible Preferred Stock of the Company (a copy of which was                    filed with                    the Commission on November 14, 2002 as Exhibit 3.05 to the Company’s                    Quarterly Report on Form 10-Q for the quarter ended September                    30, 2002                    (the “September 2002 10-Q”), and is hereby incorporated herein by this                    reference). |
| 3.06                          |       | Certificate                    of Amendment of Amended and Restated Certificate of Incorporation                    (a copy                    of which was filed with the Commission on August 14, 2003 as                    Exhibit 3.06                    to the Company’s Quarterly Report on Form 10-Q for the quarter ended June                    30, 2003 (the “June 2003 10-Q”), and is hereby incorporated herein by this                    reference)                                                                                                   |
| 4.01                          |       | Specimen                    Common Stock Certificate (a copy of which was filed with the                    Commission on                    October 3, 1997 as Exhibit 4.01 to the Company’s Registration Statement on                    Form S-1 (the “S-1 Registration Statement”), and is hereby incorporated                    herein by this reference).                                                                                                                                                                                                       |
| 4.02                          |       | Warrant                    No. 1 issued by the Company to Textile Investment International                    S.A.                    (“Textile”) for the purchase of 300,000 shares of Common Stock (a copy                    of                    which was filed with the Commission on November 14, 2002 as Exhibit                    4.02                    to the September 2002 10-Q, and is hereby incorporated herein                    by this                    reference).                                                                                 |
| 4.03                          |       | Warrant                    No. 2 issued by the Issuer to Textile for the purchase of 200,000                    shares                    of Common Stock (a copy of which was filed as Exhibit 4.03 to                    the                    September 2002 10-Q, and is hereby incorporated herein by this                    reference).                                                                                                                                                                                                                                          |
| 4.04                          |       | Amended                    and Restated Omnibus Stock Plan as in effect on June 30, 2003                    (a copy of                    which was filed as Exhibit 4.04 to the June 2003 10-Q, and is                    hereby                    incorporated herein by this                    reference).                                                                                                                                                                                                                                                                          |

----

| **Exhibit                    No.** | ** ** | **Description** |
|------------------------------------|------------|-----------------|

| 4.05                         |   | 2005                      Non-Employee Directors Stock Option Plan (a copy of which was                      filed with                      the Commission on August 10, 2005 as Exhibit 4.05 to Amendment                      No. 1 to                      the Company’s Registration Statement on Form S-2 (the “S-2 Amendment”),                      and is hereby incorporated herein by this reference).                                                                                                                                                                                                                                                                |
|-----------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.01                        |   | Form                      of Indemnification Agreement (a copy of which was filed as                      Exhibit 10.09                      to the S-1 Registration Statement, and is hereby incorporated                      herein by                      this reference).                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.02                        |   | Girbaud                      Trademark License and Technical Assistance Agreement dated                      November 1,                      1997 (a copy of which was filed with the Commission on November                      26, 1997                      as Exhibit 10.26 to Amendment No. 2 to the S-1 Registration                      Statement                      (“S-1 Amendment 2”), and is hereby incorporated herein by this                      reference).                                                                                                                                                                                                       |
| 10.03                        |   | Defined                      Benefit Pension Plan (a copy of which was filed with as Exhibit                      10.27(a)                      to S-1 Amendment No. 2, and is hereby incorporated herein by                      this                      reference).                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.04                        |   | First                      Amendment to Defined Benefit Pension Plan (a copy of which                      was filed as                      Exhibit 10.27(b) to S-1 Amendment 2, and is hereby incorporated                      herein by                      this reference).                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.05                        |   | Girbaud                      Trademark License and Technical Assistance Agreement dated                      January 15,                      1998 (a copy of which was filed with the Commission on March                      27, 1998 as                      Exhibit 10.26(a) to the Company’s Annual Report on Form 10-K for the year                      ended December 31, 1997 (the “1997 10-K”), and is hereby incorporated                      herein by this reference).                                                                                                                                                                                            |
| 10.06                        |   | Girbaud                      Trademark License and Technical Assistance Agreement for Women's                      Collection dated March 4, 1998 (a copy of which was filed as                      Exhibit                      10.26(b) to the 1997 10-K, and is hereby incorporated herein                      by this                      reference).                                                                                                                                                                                                                                                                                                                                       |
| 10.07                        |   | Amendment                      No. 1 dated June 18, 1998 to Girbaud Trademark and Technical                      Assistance                      Agreement for Women's Collection (a copy of which was filed                      with the                      Commission on August 12, 1998 as Exhibit 10.32 to the Company’s Quarterly                      Report on Form 10-Q for the quarter ended June 30, 1998, and                      is hereby                      incorporated herein by this reference).                                                                                                                                                                      |
| 10.08                        |   | Amendment                      No. 1 dated November 12, 1998 to Trademark License and Technical                      Assistance Agreement for Men's Collections by and between I.C.                      Isaacs                      & Co., L.P. and Latitude Licensing Corp. (a copy of which was                      filed                      with the Commission on March 30, 1999 as Exhibit 10.40 to the                      Company’s                      Annual Report on Form 10-K for the year ended December 31,                      1998 (the “1998                      10-K”), and is hereby incorporated herein by this                      reference). |
| 10.09                        |   | Amendment                      No. 2 dated November 12, 1998 to Trademark License and Technical                      Assistance Agreement for Women's Collections by and between                      I.C. Isaacs                      & Co., L.P. and Latitude Licensing Corp. (a copy of which was                      filed as                      Exhibit 10.41 to the 1998 10-K, and is hereby incorporated                      herein by this                      reference).                                                                                                                                                                                                        |
| 10.10                        |   | Executive                      Employment Agreement by and between I.C. Isaacs & Company, Inc. and                      Daniel Gladstone dated January 21, 1999 (a copy of which was                      filed as                      Exhibit 10.42 to 1998 10-K, and is hereby incorporated herein                      by this                      reference).                                                                                                                                                                                                                                                                                                                            |

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| **Exhibit                      No.** | ** ** | **Description** |
|--------------------------------------|------------|-----------------|

| 10.11  |   | Amendment                        No. 1 dated March 4, 1998 to Trademark License and Technical                        Assistance                        Agreement for Men's Collections by and between the Company                        and Latitude                        Licensing Corp. (a copy of which was filed as Exhibit 10.56                        to the 1998                        10-K, and is hereby incorporated herein by this                        reference).                                                                                                                                                                                                                                                    |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.12  |   | Amendment                        No. 3 dated December 23, 1998 to Trademark License and Technical                        Assistance Agreement for Women's Collections by and between                        the Company                        and Latitude Licensing Corp. (a copy of which was filed as                        Exhibit 10.57                        to the 1998 10-K, and is hereby incorporated herein by this                        reference).                                                                                                                                                                                                                                                                     |
| 10.13  |   | Amendment                        No. 4 to the Trademark License and Technical Assistance Agreement                        Covering                        Women's Products dated August 2, 1999 (a copy of which was                        filed with the                        Commission on August 13, 1999 as Exhibit 10.60 to the Company’s Quarterly                        Report on Form 10-Q for the quarter ended June 30, 1999,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                    |
| 10.14  |   | Amendment                        No. 2 dated June 21, 2000, to Trademark License and Technical                        Assistance                        Agreement Covering Men's Products dated January 15, 1998,                        by and between                        Latitude Licensing Corp. and I.C. Isaacs & Company L.P. 3.03 (a copy                        of which was filed with the Commission on August 14, 2000                        as Exhibit 10.75                        to the Company’s Quarterly Report on Form 10-Q for the quarter ended June                        30, 2000 (the “June 2000 10-Q”), and is hereby incorporated herein by this                        reference). |
| 10.15  |   | Amendment                        No. 5 dated June 21, 2000, to Trademark License and Technical                        Assistance                        Agreement Covering Women's Products dated January 15, 1998,                        by and between                        Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                        which was filed as Exhibit 10.76 to the June 2000 10-Q, and                        is hereby                        incorporated herein by this reference).                                                                                                                                                                                               |
| 10.16  |   | Amendment                        No.3 to Trademark License and Technical Assistance Agreement                        Covering                        Men’s Products Dated May 31, 2001 (a copy of which was filed                        with the                        Commission on April 1, 2002 as Exhibit 10.92 to the Company’s Annual                        Report on Form 10-K for the year ended December 31, 2001,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                           |
| 10.17  |   | Amended                        and Restated Executive Employment Agreement dated April 17,                        2002, by and                        between the Company and Eugene C. Wielepski (a copy of which                        was filed                        with the Commission on April 22, 2002 as Exhibit 10.94 to                        Amendment No. 1                        to the Company’s Annual Report on Form 10-K for the year ended December                        31, 2001 (the “2001 10-K Amendment”), and is hereby incorporated herein by                        this reference).                                                                                                   |
| 10.18  |   | Amended                        and Restated Executive Employment Agreement dated April 17,                        2002, by and                        between the Company and Daniel J. Gladstone (a copy of which                        was filed as                        Exhibit 10.95 to Amendment No. 1 to the 2001 10-K Amendment,                        and is hereby                        incorporated herein by this reference).                                                                                                                                                                                                                                                                                           |
| 10.19  |   | Amendment                        No. 4 dated October 2, 2002 to the Trademark License and                        Technical                        Assistance Agreement dated January 15, 2002 by and between                        Latitude                        Licensing Corp. and I.C. Isaacs & Company, L.P. (a copy of which was                        filed with the Commission on November 14, 2002 as Exhibit                        10.102 to the                        Company’s Quarterly Report on Form 10-Q for the quarter ended September                        30, 2002 (the “September 2002 10-Q”), and is hereby incorporated herein by                        this reference).            |

----

| **Exhibit                        No.** | ** ** | **Description** |
|----------------------------------------|------------|-----------------|

| 10.20  |   | Amendment                          No. 6 dated October 2, 2002 to the Trademark License and                          Technical                          Assistance Agreement for Women’s Collections dated October 2, 2002 by and                          between Latitude Licensing Corp. and I.C. Isaacs & Company, L.P. (a                          copy of which was filed as Exhibit 10.103 to the September                          2002 10-Q, and                          is hereby incorporated herein by this reference).                                                                                                                                                                                                                 |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.21  |   | Amendment                          no. 7, dated March 31, 2003 to the Trademark License and                          Technical                          Assistance Agreement for Women’s Collections between Latitude Licensing                          Corp. and I.C. Isaacs & Company L.P. (a copy of which was filed with                          the Commission on April 4, 2003 as Exhibit 10.110 to the                          Company’s Annual                          Report on Form 10-K for the year ended December 31, 2002                          (the “2002                          10-K”), and is hereby incorporated herein by this                          reference).                                     |
| 10.22  |   | Amendment                          no. 5 dated March 31, 2003 to the Trademark License and                          Technical                          Assistance Agreement dated the 1st day of November 1997                          by and between                          Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                          which was filed as Exhibit 10.111 to the 2002 10-K, and                          is hereby                          incorporated herein by this reference).                                                                                                                                                                                                                     |
| 10.23  |   | Amendment                          dated as of May 15th, 2003 to the Amended and Restated                          Employment                          Agreement between I.C. Isaacs & Company, L.P. and Daniel J. Gladstone                          (a copy of which was filed with the Commission on May 15,                          2003 as Exhibit                          10.114 to the Company's Quarterly Report on Form 10-Q for                          the quarter                          ended March 31, 2003 (the “March 2003 10-Q”), and is hereby incorporated                          herein by this reference).                                                                                                          |
| 10.24  |   | Amendment                          dated as of March 31st, 2003 to the Amended and Restated                          Employment                          Agreement between I.C. Isaacs & Company, L.P. and Eugene C. Wielespki                          (a copy of which was filed as Exhibit 10.115 to the March                          2003 10-Q, and                          is hereby incorporated herein by this reference).                                                                                                                                                                                                                                                                                                                        |
| 10.25  |   | Amendment                          No. 8, dated October 29, 2003 to the Trademark License                          and Technical                          Assistance Agreement for Women's Collections between Latitude                          Licensing                          Corp. and I.C. Isaacs & Company L.P. (a copy of which was filed with                          the Commission on November 14, 2003 as Exhibit 10.118 to                          the Company's                          Quarterly Report on Form 10-Q for the quarter ended September                          30, 2003                          (the “September 2003 10-Q”), and is hereby incorporated herein by this                          reference). |
| 10.26  |   | Amendment                          No. 6, dated October 29, 2003 to the Trademark License                          and Technical                          Assistance Agreement dated the 1st day of November 1997                          by and between                          Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                          which was filed as Exhibit 10.119 to the September 2003                          10-Q, and is                          hereby incorporated herein by this reference).                                                                                                                                                                                                        |
| 10.27  |   | Amendment                          dated October 13, 2004 to the Executive Employment Agreement                          dated                          December 9, 2003 by and Between I.C. Isaacs & Company, L.P. and Peter                          J. Rizzo (a copy of which was filed with the Commission                          as Exhibit 10.120                          to the Company's Report on Form 8-K filed on October 22,                          2004 (the                          “October 22, 2004 Form 8-K”), and is hereby incorporated herein by this                          reference).                                                                                                                            |

----

| **Exhibit                          No.** | ** ** | **Description** |
|------------------------------------------|------------|-----------------|

| 10.28  |   | Executive                          Employment agreement made as of the 1st day of March 2004,                          by and between                          I.C. Isaacs & Company LP and Jesse de la Rama (a copy of which was                          filed as Exhibit 10.121 to the October 22, 2004 Form 8-K,                          and is hereby                          incorporated herein by this reference).                                                                                                                                                                                                                                                                                                                                      |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.29  |   | Loan                          and Security Agreement Dated as of December 30, 2004 by                          and between I.C.                          Isaacs & Company, L.P. and Wachovia Bank, National Association                          (a copy                          of which was filed with the Commission as Exhibit 10.122                          to the Company's                          Report on Form 8-K filed on January 6, 2005, and is hereby                          incorporated                          herein by this reference).                                                                                                                                                                                                |
| 10.30  |   | Amendment                          No. 7, dated December 16, 2004, to the Trademark License                          and Technical                          Assistance Agreement dated the 1st day of November 1997                          by and between                          Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a copy of                          which was filed with the Commission on March 31, 2005 as                          Exhibit 10.123 to                          the Company’s Annual Report on Form 10-K for the year ended December                          31,                          2004 (the “2004 10-K”), and is hereby incorporated herein by this                          reference). |
| 10.31  |   | Amendment                          No. 9, dated December 16, 2004, to the Trademark License                          and Technical                          Assistance Agreement for Women's Collections dated March                          4, 1998 by and                          between Latitude Licensing Corp. and I.C. Isaacs & Company L.P. (a                          copy of which was filed as Exhibit 10.124 to the 2004 10-K,                          and is hereby                          incorporated herein by this reference).                                                                                                                                                                                                             |
| 10.32  |   | Assignment                          of warrant to purchase 300,000 shares of the Company’s common stock dated                          September 28th, 2004 by Textile Investment International                          S.A. to Rockbrook                          Investments SA., and consented to on April 13, 2005 by                          the Company (a copy                          of which was filed as Exhibit 99.01 to the S-2 Amendment,                          and is hereby                          incorporated herein by this reference).                                                                                                                                                                                              |
| 10.33  |   | Assignment                          of warrant to purchase 200,000 shares of the Company’s common stock dated                          September 28th, 2004 by Textile Investment International                          S.A. to Rockbrook                          Investments SA. , and consented to on April 13, 2005 by                          the Company (a                          copy of which was filed as Exhibit 99.02 to the S-2 Amendment,                          and is                          hereby incorporated herein by this reference).                                                                                                                                                                                             |
| 21.01       |   | List                          of Subsidiaries (a copy of which was filed as Exhibit 21.01                          to the S-2                          Amendment, and is hereby incorporated herein by this                          reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 23.01       |   | Consent                          of BDO Seidman, LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.01       |   | Certification                          Pursuant to Section 302 of the Sarbanes-Oxley Act of                          2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.02       |   | Certification                          Pursuant to Section 302 of the Sarbanes-Oxley Act of                          2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.01       |   | Certification                          Pursuant to Section 1350 of chapter 63 of Title 18 of the                          United States                          Code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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