Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Document And Entity Information | ||
Entity Registrant Name | Celsius Holdings, Inc. | |
Entity Central Index Key | 0001341766 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-34611 | |
Entity Incorporation, State or Country Code | NV | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 72,163,198 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 31,634,675 | $ 43,248,021 |
Accounts receivable-net (note 2) | 23,997,680 | 14,986,213 |
Note receivable-current (note 6) | 2,509,412 | 1,885,887 |
Inventories-net (note 4) | 36,891,859 | 18,403,622 |
Prepaid expenses and other current assets (note 5) | 17,183,929 | 14,626,922 |
Total current assets | 112,217,555 | 93,150,665 |
Notes Receivable (note 6) | 6,900,882 | 9,429,437 |
Property and equipment-net (note 8) | 1,169,022 | 579,377 |
Right-of-use asset-operating leases | 791,969 | 836,038 |
Right-of-use asset-finance leases | 129,625 | 162,119 |
Long term security deposits | 110,100 | 122,733 |
Intangibles (note 9) | 16,439,197 | 16,590,083 |
Goodwill (note 9) | 10,419,321 | 10,419,321 |
Total Assets | 148,177,671 | 131,289,773 |
Current liabilities: | ||
Accounts payable and accrued expenses (note 10) | 37,525,390 | 25,412,753 |
Lease liability-operating leases (note 7) | 337,626 | 321,283 |
Lease liability-finance leases (note 7) | 192,649 | 205,824 |
Other current liabilities (note 11) | 586,954 | 425,232 |
Total current liabilities | 38,642,619 | 26,365,092 |
Long-term liabilities: | ||
Lease liability-operating leases (note 7) | 436,631 | 514,948 |
Lease liability-finance leases (note 7) | 87,152 | 82,290 |
Total Liabilities | 39,166,402 | 26,962,330 |
Stockholders' Equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized, 72,585,687 and 72,262,829 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively (note 14) | 72,586 | 72,263 |
Additional paid-in capital | 164,174,742 | 159,884,154 |
Accumulated other comprehensive loss | (394,651) | (202,142) |
Accumulated deficit | (54,841,408) | (55,426,832) |
Total Stockholders' Equity | 109,011,269 | 104,327,443 |
Total Liabilities and Stockholders' Equity | $ 148,177,671 | $ 131,289,773 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 72,585,687 | 72,262,829 |
Common stock, outstanding | 72,585,687 | 72,262,829 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Statement [Abstract] | |||
Revenue (note 3) | $ 50,034,879 | $ 28,184,889 | |
Cost of revenue (note 2) | 29,455,784 | 15,182,706 | |
Gross profit | 20,579,095 | 13,002,183 | |
Selling and marketing expenses | 11,959,053 | 7,506,047 | |
General and administrative expenses | 7,806,666 | 4,528,546 | |
Total operating expenses | 19,765,719 | 12,034,593 | |
Income from operations | 813,376 | 967,590 | |
Other Income (Expense): | |||
Interest income on note receivable (note 6) | 86,530 | 97,534 | |
Interest expense on bonds | (136,018) | ||
Interest on other obligations | (1,605) | (3,596) | |
Amortization of discount on bonds payable | (166,069) | ||
Other miscellaneous income/(expense) | (11,621) | 8,936 | |
Gain on lease cancellations | |||
Foreign exchange (loss) | (301,256) | (222,326) | |
Total other expense | (227,952) | (421,539) | |
Net Income before income taxes | 585,424 | 546,051 | |
Income tax expense (note X) | |||
Net Income | 585,424 | 546,051 | |
Other comprehensive income/(loss): | |||
Foreign currency translation loss | (192,509) | (114,490) | |
Comprehensive Income | $ 392,915 | $ 431,561 | |
Income per share: | |||
Basic | $ 0.01 | $ 0.01 | |
Diluted | $ 0.01 | $ 0.01 | |
Weighted average shares outstanding: | |||
Basic | 72,516,396 | 69,284,307 | |
Diluted | [1] | 76,925,484 | 70,339,416 |
[1] | Please refer to Earnings per Share section for further details. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other-Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Balances at Dec. 31, 2019 | $ 68,942 | $ 127,552,998 | $ (753,520) | $ (63,409,431) | $ 63,458,989 |
Balances, shares at Dec. 31, 2019 | 68,941,311 | ||||
Stock option expense | 1,400,000 | 1,400,000 | |||
Issuance of common stock pursuant to exercise of stock options - Cashless | $ 204 | (204) | |||
Issuance of common stock pursuant to exercise of stock options - Cashless, shares | 204,028 | ||||
Issuance of common stock pursuant to exercise of stock options - Cash | $ 134 | 215,213 | 215,347 | ||
Issuance of common stock pursuant to exercise of stock options - Cash, shares | 133,921 | ||||
Foreign currency translation | (114,490) | (114,490) | |||
Net income | 546,051 | 546,051 | |||
Balances at Mar. 31, 2020 | $ 69,280 | 129,168,007 | (868,010) | (62,863,380) | 65,505,897 |
Balances, shares at Mar. 31, 2020 | 69,279,260 | ||||
Balances at Dec. 31, 2020 | $ 72,263 | 159,884,154 | (202,142) | (55,426,832) | 104,327,443 |
Balances, shares at Dec. 31, 2020 | 72,262,829 | ||||
Stock option expense | 3,575,001 | 3,575,001 | |||
Issuance of common stock pursuant to exercise of stock options - Cashless | $ 88 | (88) | |||
Issuance of common stock pursuant to exercise of stock options - Cashless, shares | 88,312 | ||||
Issuance of common stock pursuant to exercise of stock options - Cash | $ 235 | 715,675 | 715,910 | ||
Issuance of common stock pursuant to exercise of stock options - Cash, shares | 234,546 | ||||
Foreign currency translation | (192,509) | (192,509) | |||
Net income | 585,424 | 585,424 | |||
Balances at Mar. 31, 2021 | $ 72,586 | $ 164,174,742 | $ (394,651) | $ (54,841,408) | $ 109,011,269 |
Balances, shares at Mar. 31, 2021 | 72,585,687 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 585,424 | $ 546,051 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 108,198 | 124,939 |
Amortization | 187,670 | 309,597 |
Bad debt allowance | 223,034 | 221,222 |
Inventory excess and obsolescence allowance | 753,935 | (270,710) |
Stock-based compensation expense | 3,575,001 | 1,400,000 |
Gain on China transaction | 144,403 | |
Changes in operating assets and liabilities: | ||
Accounts receivable-net | (9,234,501) | (3,146,415) |
Inventory | (19,242,172) | (5,475,308) |
Prepaid expenses and other current assets | (2,557,007) | (501,586) |
Accounts payable and accrued expenses | 12,112,637 | 2,729,700 |
Deposits/deferred revenue and other current liabilities | 174,355 | 102,743 |
Change in right-of-use asset and lease liability-net | (4,575) | (2,180) |
Net cash provided used in operating activities | (13,318,001) | (3,817,544) |
Cash flows from investing activities: | ||
Proceeds from note receivable | 1,876,273 | |
Purchase of property and equipment | (697,843) | (107,372) |
Net cash provided/(used) in investing activities | 1,178,430 | (107,372) |
Cash flows from financing activities: | ||
Principal payments on finance lease obligations | (25,149) | (64,082) |
Proceeds from exercise of stock options | 715,910 | 215,347 |
Net cash provided by financing activities | 690,761 | 151,265 |
Effect on exchange rate changes on cash and cash equivalents | (164,536) | (222,930) |
Net decrease in cash and cash equivalents | (11,613,346) | (3,996,581) |
Cash and cash equivalents at beginning of the year | 43,248,021 | 23,090,682 |
Cash and cash equivalents at end of the year | 31,634,675 | 19,094,101 |
Supplemental disclosures: | ||
Cash paid during period for Interest | $ 1,605 | $ 136,018 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Business Company Celsius Holdings functional On February 7, 2018, the Company established Celsius Asia Holdings Limited a Hong Kong corporation as a wholly owned subsidiary. On February 7, 2018 Celsius China Holdings Limited a Hong Kong corporation became a wholly owned subsidiary of Celsius Asia Holdings Limited and on May 9, 2018, Celsius Asia Holdings Limited established Celsius (Beijing) Beverage Limited, a China corporation as a wholly owned subsidiary of Celsius Asia Holdings Limited. On October 25, 2019, the Company acquired 100% of the shares of Func Food Group, Oyj (“ Func Food |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation – US GAAP Significant Estimates Reclassification of Prior Year Presentation – Segment Reporting Concentrations of Risk The Company uses single supplier relationships for its raw materials purchases and filling capacity, which potentially subjects the Company to a concentration of business risk. If these suppliers had operational problems or ceased making product available to the Company, operations could be adversely affected. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality financial institutions. At times, balances in the Company’s cash accounts may exceed the Federal Deposit Insurance Corporation limit. At March 31, 2021, the Company had approximately $31.4 million in excess of the Federal Deposit Insurance Corporation limit. For the three months ended March 31, 2021 and 2020, the Company had the following 10 percent or greater concentrations of revenue with its customers. Specifically, there is one customer that has accounted for approximately 15.8% and 16.4% of our revenue for the three months ended March 31, 2021 and 2020, respectively. The below table reflects this customer’s evolution as a percentage of our total revenue for the three months ended March 31, 2021 and 2020: 2021 2020 Amazon 15.8 % 16.4 % All other 84.2 % 83.6 % Total 100.0 % 100.0 % At March 31, 2021 and December 31, 2020, the Company had the following 10 percent or greater concentrations of accounts receivable with its customers: 2021 2020 Amazon 22.1 % 11.3 % ICA Sweden 11.8 % 9.0 % All other 66.1 % 79.7 % Total 100.0 % 100.0 % Cash Equivalents Accounts Receivable Inventories Property and Equipment Impairment of Long-Lived Assets Long-lived Asset Geographic Data The following table sets forth long-lived asset information, which includes property, plant and equipment and lease right-of-use assets and excludes goodwill and intangibles, where individual countries represent a material portion of the total: March 31, December 31, 2021 2020 United States $ 1,181,188 $ 694,697 Sweden 523,126 431,959 Finland 386,302 450,878 Long-lived assets related to foreign operations 909,428 882,837 Total long-lived assets $ 2,090,616 $ 1,577,534 Goodwill Intangible assets Revenue Recognition Customer Advances Advertising Costs Research and Development Foreign Currency Translation — Chinese-Yuan Norwegian-Krone Swedish-Krona Finland-Euro Fair Value of Financial Instruments Fair Value Measurements Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Other than these noted previously, the Company did not have any other assets or liabilities measured at fair value at March 31, 2021 and December 31, 2020. Income Taxes — Accounting for Uncertain Income Tax Positions. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25 Definition of Settlement, Earnings per Share For the three months ended 2021 2020 Net income $ 585,424 $ 546,051 Income (Loss) per share: Basic $ 0.01 $ 0.01 Diluted $ 0.01 $ 0.01 Weighted average shares outstanding: Basic 72,516,396 69,284,307 Diluted 76,925,484 70,339,416 Share-Based Payments Cost of Sales Operating Expenses Shipping and Handling Costs Recent Accounting Pronouncements The Company adopts all applicable, new accounting pronouncements as of the specified effective dates. In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which requires the immediate recognition of management’s estimates of current and expected credit losses. In November 2018, the FASB issued ASU 2018-19, which makes certain improvements to Topic 326. In April and May 2019, the FASB issued ASUs 2019-04 and 2019-05, respectively, which adds codification improvements and transition relief for Topic 326. In November 2019, the FASB issued ASU 2019-10, which delays the effective date of Topic 326 for Smaller Reporting Companies to interim and annual periods beginning after December 15, 2022, with early adoption permitted. In November 2019, the FASB issued ASU 2019-11, which makes improvements to certain areas of Topic 326. In February 2020, the FASB issued ASU 2020-02, which adds an SEC paragraph, pursuant to the issuance of SEC Staff Accounting Bulletin No. 119, to Topic 326. Topic 326 is effective for the Company for fiscal years and interim reporting periods within those years beginning after December 15, 2022. Early adoption is permitted for interim and annual periods beginning December 15, 2019. The Company is currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. All new accounting pronouncements issued but not yet effective are not expected to have a material impact on our results of operations, cash flows or financial position with the exception of the updated previously disclosed above, there have been no new accounting pronouncements not yet effective that have significance to our consolidated financial statements. Liquidity If our sales volumes do not meet our projections, expenses exceed our expectations, our plans change, we may be unable to generate enough cash flow from operations to cover our working capital requirements. In such case, we may be required to adjust our business plan, by reducing marketing, lower our working capital requirements and reduce other expenses or seek additional financing. Furthermore, our business and results of operations may be adversely affected by changes in the global macro-economic environment related to the pandemic and public health crises related to the COVID-19 outbreak. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 3. REVENUE The Company recognizes revenue when obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives the Company offers to its customers and their customers. Sales taxes and other similar taxes are excluded from revenue. Information about the Company’s net sales by geographical location for the three months ended March 31, 2021 and 2020 is as follows: For the three months ended March 31, March 31, 2021 2020 North America $ 39,003,391 $ 19,359,169 Europe 10,367,793 8,500,852 Asia 536,169 268,292 Other 127,526 56,576 Net sales $ 50,034,879 $ 28,184,889 All of the Company’s North America revenue is derived from the United States, which is the Company’s country of domicile. Of the Company’s total foreign revenues of $11.0 million and $8.8 million for the three months ended March 31, 2021 and 2020, respectively, the only individual country that represents a material portion of total consolidated revenue was Sweden, which had total revenues of approximately $6.5 million and $5.8 million for the three months ended March 31, 2021 and 2020, respectively. Revenues are attributed to countries based on the location of the customer. License Agreement In January 2019, the Company entered into a license agreement with our China distributor. Specifically, a license agreement was executed with Qifeng Food Technology (Beijing) Co., Ltd (“Qifeng”). Under this license agreement, Qifeng was granted the exclusive license rights to process, market and commercialize Celsius branded products in China. The term of the agreement is 50 years, with annual royalty fees calculated based on each calendar year results. The royalty fees are based on a percentage of Qifeng’s sales of Celsius branded products; however, the fees are fixed for the first five years of the agreement, totaling approximately $6.6 million, and then are subject to annual guaranteed minimums over the remaining term of the agreement. Under the license agreement, the Company grants Qifeng exclusive license rights and provides ongoing support in product development, brand promotion and technical expertise. The transaction price consists of the guaranteed minimums and the variable royalty fees, all of which are allocated to the single performance obligation pertaining to the license agreement. The Company recognizes revenue from the agreement over time because the customer simultaneously receives and consumes the benefits from the services. The Company uses the passage of time to measure progress towards satisfying its performance obligation because its efforts in providing the exclusive license rights and ongoing support occur on a generally even basis throughout the year. Total revenue recognized under the agreement was approximately $393,000 for the three months ended March 31,2021 and is reflected in the Company’s Asia reporting segment. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories consist of the following at: March 31, December 31, 2021 2020 Finished goods $ 26,224,583 $ 15,334,386 Raw Materials 13,034,266 4,682,291 Less: Inventory allowance for excess and obsolete products (2,366,990 ) (1,613,055 ) Inventories $ 36,891,859 $ 18,403,622 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets total $17.2 million and $14.6 million at March 31, 2021 and December 31, 2020, respectively, consist mainly of prepaid advances to co-packers related to inventory production, advertising, prepaid insurance, prepaid slotting fees, value added tax payments and deposits on purchases. The increase of approximately $2.6 million is mainly related to advances to co-packers and deposits to raw material suppliers pertaining to the processing and the procuring of inventory. |
NOTE RECEIVABLE
NOTE RECEIVABLE | 3 Months Ended |
Mar. 31, 2021 | |
Note Receivable [Abstract] | |
NOTE RECEIVABLE | 6. NOTE RECEIVABLE Note receivable consists of the following at: March 31, December 31, 2021 2020 Note receivable-current $ 2,509,412 $ 1,885,887 Note receivable-non-current 6,900,882 9,429,437 Total Note receivable $ 9,410,294 $ 11,315,324 Effective January 1, 2019, we restructured our China distribution efforts by entering into two separate economic agreements as it relates to the commercialization of our Celsius products (i.e., license agreement) and a repayment of investment agreement with Qifeng. Under the license agreement, Qifeng was granted the exclusive license rights to manufacture, market and commercialize Celsius® brand products in China. Qifeng will pay a minimum royalty fee of $6.9 million for the five years of the term of the agreement, transitioning to a volume-based royalty fee, thereafter as aforementioned. Under a separate economic agreement, Qifeng Food will repay the marketing investments made by Celsius into the China market through 2018, over a five-year period. The repayment, which was formalized via a Note Receivable from Qifeng, will need to be serviced even if the licensing agreement is cancelled or terminated. Scheduled principal payments plus accrued interest are due annually on March 31 of each year starting in 2020. The Note is recorded at amortized cost basis and initially accrued interest at a rate per annum equal to the weighted average of 5% of the outstanding principal up to $5 million and 2% of the outstanding principal above $5 million. On September 12, 2020, it was agreed to fix the interest rate at 3.21% which reflected the weighted average interest rate for the 5-year period of the Note. For the three months ended March 31, 2021, interest income was approximately $87,000. The Company assesses the Note for impairment periodically by evaluating whether it is probable that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the Note agreement, based on historical experience about Qifeng’s ability to pay, the current economic environment and other factors. If the Note is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows under the Note, discounted at the Note’s effective interest rate. At March 31, 2021, the Note was not deemed to be impaired. As of March 31, 2021, Qifeng is current on all amounts due under the Note as well as the license agreement. As collateral for the Note, a stock certificate in Celsius Holdings, Inc., which amounts to 337,079 of shares owned by an affiliate under common control by Qifeng is being held at a brokerage account. These shares were originally issued on April 20, 2015 via a private transaction which involved RiseJoy Services Limited an affiliate under the common control of Qifeng, our Chinese licensee. Payment in-full was received timely pertaining to the amounts due on March 31, 2021. Furthermore, a letter of guarantee was executed with several restrictions regarding these shares. In particular, it was agreed that the stock would not be sold or transferred without the prior written consent from Celsius Holdings, Inc. There are several other restrictions and agreements, which include that a Statement of Account will be provided to Celsius on a Quarterly basis to confirm and validate the existence of the shares. These shares serve only as collateral and provide comfort as to the “ ability to pay |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | 7. LEASES The Company’s leasing activities include an operating lease of its corporate office space from a related party (see note 13) and several other operating and finance leases of vehicles and office space for the Company’s European operations. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. The Company allocates the consideration in the contract to each lease and non-lease component based on the component’s relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately. Leases are classified as either finance leases or operating leases based on criteria in ASC Topic 842, “Leases”. The Company’s operating leases are generally comprised of real estate and vehicles, and the Company’s finance leases are generally comprised of vehicles. At lease commencement, the Company records a lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. A corresponding right-of-use asset (“ROU asset”) is recorded, measured based on the initial measurement of the lease liability. ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the shorter of the useful life of the asset or the lease term, and interest expense is calculated using the effective interest rate method. The following is a summary of lease cost recognized in the Company’s consolidated statements of operations: Three months ended Three months ended March 31, March 31, Operating Finance Operating Finance Leases Leases Leases Leases Lease cost in general and administrative expenses: Operating lease expense $ 98,535 $ - $ 95,904 $ - Amortization of finance lease ROU assets - 36,000 - 137,165 Total lease cost in general and administrative expenses 98,535 36,000 95,904 137,165 Lease cost in other expense: Interest on finance lease liabilities - 1,601 - 3,596 Total lease cost in other expense - 1,601 - 3,596 Total lease cost $ 98,535 $ 37,601 $ 95,904 $ 140,761 The following is a summary of the impact of the Company’s leases on the consolidated statements of cash flows: Three months ended March 31, 2021 2020 Leasing activity in cash flows from operating activities: Payments under operating leases (113,812 ) (96,084 ) Interest payments on finance lease liabilities (1,601 ) (3,596 ) Total leasing activity in cash flows from operating activities (115,413 ) (99,680 ) Leasing activity in cash flows from financing activities: Principal payments on finance lease liabilities (25,149 ) (64,082 ) Total leasing activity in cash flows from financing activities: (25,149 ) (64,082 ) The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases at March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, 2021 2020 Weighted average remaining lease term (years) - operating leases 2.4 2.6 Weighted average remaining lease term (years) - finance leases 0.9 1.1 Weighted average discount rate - operating leases 6.48 % 6.52 % Weighted average discount rate - finance leases 3.94 % 3.95 % The future annual minimum lease payments required under the Company’s leases as of March 31, 2021 are as follows: Operating Finance Future minimum lease payments Leases Leases Total 2021 $ 300,786 $ 203,990 $ 504,776 2022 288,192 73,289 361,481 2023 256,332 7,088 263,420 2024 16,592 - 16,592 Total future minimum lease payments 861,902 284,367 1,146,269 Less: Amount representing interest (87,645 ) (4,566 ) (92,211 ) Present value of lease liabilities 774,257 279,801 1,054,058 Less: current portion (337,626 ) (192,649 ) (530,275 ) Long-term portion $ 436,631 $ 87,152 $ 523,783 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 8. PROPERTY AND EQUIPMENT Property and equipment consist of the following at: March 31, December 31, 2021 2020 Furniture and equipment $ 1,768,534 $ 1,103,301 Less: accumulated depreciation (599,512 ) (523,924 ) Total $ 1,169,022 $ 579,377 Depreciation expense amounted to $108,198 and $124,939 for the three months ended March 31, 2021 and 2020, respectively. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | 9. GOODWILL AND INTANGIBLES Goodwill consists of approximately $10,419,000 resulting from the excess of the consideration paid and the fair value of net tangible and intangible assets acquired from the Func Food Acquisition. There was no further activity related to goodwill during the three months ended March 31, 2021. Intangible assets consist of acquired customer relationships and brands from the Func Food Acquisition. The gross carrying amount and accumulated amortization of intangible assets were as follows as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 Intangible assets subject to amortization Customer relationships gross carrying amount $ 14,050,000 $ 14,050,000 Less: accumulated amortization (733,803 ) (582,917 ) Total $ 13,316,197 $ 13,467,083 Intangible assets not subject to amortization Brands total carrying amount $ 3,123,000 $ 3,123,000 Total Intangibles $ 16,439,197 $ 16,590,083 Customer relationships are amortized over an estimated useful life of 25 years and brands have an indefinite life. Amortization expense for the three months ended March 31, 2021 and 2020 was approximately $151,000 and $144,000, respectively. Other fluctuations in the amounts of intangible assets are due to currency translation adjustments. The following is the future estimated amortization expense related to customer relationships: As of March 31, 2021: 2021 $ 562,000 2022 562,000 2023 562,000 2024 562,000 2025 562,000 Thereafter 10,506,197 $ 13,316,197 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following at: March 31, December 31, 2021 2020 Accounts payable $ 18,519,644 $ 11,854,421 Accrued expenses 19,005,746 13,558,332 Total $ 37,525,390 $ 25,412,753 |
OTHER LIABILITIES
OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
OTHER LIABILITIES | 11. OTHER LIABILITIES Other current liabilities consist of the following at: March 31, December 31, 2021 2020 Other Liabilities-State Beverage Container Deposit $ 586,954 $ 425,232 Total $ 586,954 $ 425,232 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS The Company’s office is rented from a company affiliated with CD Financial, LLC which is controlled by one of our major shareholders. The current lease expires on January 2024 with monthly rent of $17,295. The rental fee is commensurate with other properties available in the market. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 13. STOCKHOLDERS’ EQUITY Issuance of common stock pursuant to exercise of stock options During the three months ended March 31, 2021, the Company issued an aggregate of 322,858 shares of its common stock pursuant to the exercise of stock options granted under the Company’s 2015 Stock Incentive Plan. The Company received aggregate proceeds of $715,910 for 234,546 options exercised for cash, with the balance of the options having been exercised on a “cashless” basis. During the three months ended March 31, 2020, the Company issued an aggregate of 337,949 shares of its common stock pursuant to the exercise of stock options granted under the Company’s 2015 Stock Incentive Plan. The Company received aggregate proceeds of $215,347 for 133,921 options exercised for cash, with the balance of the options having been exercised on a “cashless” basis. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 14. STOCK-BASED COMPENSATION The Company adopted an Incentive Stock Plan on January 18, 2007. This plan is intended to provide incentives which will attract and retain highly competent persons at all levels as employees of the Company, as well as independent contractors providing consulting or advisory services to the Company, by providing them opportunities to acquire the Company’s common stock or to receive monetary payments based on the value of such shares pursuant to Awards issued. While the plan terminates 10 years after the adoption date, issued options have their own schedule of termination. During 2013, the majority of the shareholders approved to increase the total available shares in the plan from 2.5 million to 3.5 million shares of common stock. During May 2014, the majority of the shareholders approved to increase the total available shares in the plan from 3.5 million to 4.25 million shares of common stock, during February 2015, the majority of the shareholders approved to increase the total available shares in the plan from 4.25 million to 4.6 million shares of common stock and during April 2015, the majority of the shareholders approved to increase the total available shares in the plan from 4.6 million to 5.1 million shares of common stock. Options to acquire shares of common stock may be granted at no less than fair market value on the date of grant. Upon exercise, shares of new common stock are issued by the Company. The Company adopted the 2015 Stock Incentive Plan on April 30, 2015. This plan is intended to provide incentives which will attract and retain highly competent persons at all levels as employees of the Company, as well as independent contractors providing consulting or advisory services to the Company, by providing them opportunities to acquire the Company’s common stock or to receive monetary payments based on the value of such shares pursuant to Awards issued. The 2015 Plan permits the grant of options and shares for up to 5,000,000 shares. In addition, there is a provision for an annual increase of 15% of the shares pertaining to the 2015 plan that are outstanding as of the last day of the prior year. As of March 31, 2021, approximately 1.8 million shares are available. Under the 2015 Stock Incentive Plan, the Company has issued options to purchase approximately 4.9 million shares at an average price of $4.23 with a fair value of $205.4 million. For the three months ended March 31, 2021 and 2020, the Company issued options to purchase 303,750 and 285,000 shares, respectively. Upon exercise, shares of new common stock are issued by the Company. For the three months ended March 31, 2021 and 2020, the Company recognized an expense of approximately $3.6 million and $1.4 million, respectively, of non-cash compensation expense (included in General and Administrative expense in the accompanying Consolidated Statement of Operations) determined by application of a Black-Scholes option pricing model with the following inputs: exercise price, dividend yields, risk-free interest rate, and expected annual volatility. As of March 31, 2021, the Company had approximately $24.7 million of unrecognized pre-tax non-cash compensation expense, which the Company expects to recognize, based on a weighted-average period of 2.45 years. The Company used straight-line amortization of compensation expense over the two to three-year requisite service or vesting period of the grant. The Company recognizes forfeitures as they occur. There are options to purchase approximately 2.73 million shares that have vested as of March 31, 2021. The Company uses the Black-Scholes option-pricing model to estimate the fair value of its stock option awards and warrant issuances. The calculation of the fair value of the awards using the Black-Scholes option-pricing model is affected by the Company’s stock price on the date of grant as well as assumptions regarding the following: Three months ended 2021 2020 Expected volatility 69.18%-81.11 % 69.18%-81.11 % Expected term 4.49-5.00 Years 4.84-5.00 Years Risk-free interest rate 0.32%-1.39 % 1.35% - 1.39 % Forfeiture Rate 0.00 % 0.00 % The expected volatility was determined with reference to the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant. A summary of the status of the Company’s outstanding stock options as of March 31, 2021 and changes during the period ending on that date is as follows: Weighted Average Aggregate Weighted Shares Exercise Grant Date Fair Intrinsic Average (000’s) Price Value (000’s) Term (Yrs) Options At December 31, 2020 5,198 $ 4.23 $ 240,866 6.89 Granted 304 $ 42.49 $ 30.40 Exercised (328 ) $ 3.10 $ 56.37 $ 17,467 Forfeiture and cancelled (225 ) $ 15.79 At March 31, 2021 4,949 $ 6.55 $ 205,375 7.04 Exercisable at March 31, 2021 2,734 $ 3.99 $ 120,458 5.99 The following table summarizes information about employee stock options outstanding at March 31, 2021: Outstanding Options Vested Options Number Number Outstanding Weighted Weighted Exercisable Weighted Weighted Range of at Averaged Averaged at Averaged Averaged Exercise March 31, Remaining Exercise March 31, Exercise Remaining Price 2021 (000’s) Life Price 2021 (000’s) Price Life $0.20 - $0.53 100 1.98 $ 0.26 100 $ 0.26 1.98 $0.65 - $1.80 105 3.91 $ 1.05 105 $ 1.05 3.91 $1.83 - $2.84 117 4.77 $ 1.97 117 $ 1.97 4.77 $3.20 - $6.20 4,238 7.06 $ 4.18 2,412 4.37 6.31 $7.20-$60.00 389 9.68 36.77 0 0.00 0 Outstanding options 4,949 6.87 $ 6.53 2,734 $ 3.99 5.99 As of March 31, 2021, the Company had approximately $24.7 million of unrecognized pre-tax non-cash compensation expense, which the Company expects to recognize, based on a weighted-average period of 2.45 years. Restricted Stock Awards Restricted stock awards are awards of common stock that are subject to restrictions on transfer and to a risk of forfeiture if the holder leaves the Company before the restrictions lapse. The holder of a restricted stock award is generally entitled at all times on and after the date of issuance of the restricted shares to exercise the rights of a shareholder of the Company, including the right to vote the shares. The value of stock awards that vest over time is established by the market price on the date of its grant. A summary of the Company’s restricted stock activity for the three months ended March 31, 2021 and 2020 is presented in the following table: For the three Months ended March 31, March 31, Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested at beginning of period 66,229 $ 14.78 123,334 $ 3.34 Transfers to restricted stock units (45,871 ) 34.02 - - Granted 0 0.00 3,916 5.59 Vested (172 ) 22.30 (3,916 ) 5.59 Unvested at end of period 20,186 $ 14.72 123,334 $ 3.34 The total fair value of shares vested during the three months ended March 31, 2021 and 2020 was immaterial. Unrecognized compensation expense related to outstanding restricted stock awards to employees and directors as of March 31, 2021 was $98,234 and is expected to be expensed over the next four months. Restricted Stock Units Restricted stock units are awards that give the holder the right to receive one share of common stock for each restricted stock unit upon meeting service-based vesting conditions (typically annual vesting in three equal annual installments, with a requirement that the holder remains in the continuous employment of the Company). The value of restricted stock units that vest over time is established by the market price on the date of its grant. A summary of the Company’s restricted stock unit activity for the three months ended March 31, 2021 and 2020 is presented in the following table: For the three Months ended March 31, March 31, Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested at beginning of period - $ - $ - Transfers from restricted stock awards 45,871 34.02 - Granted 468,600 50.56 - - Vested - - - - Forfeiture and cancelled (10,200 ) 50.31 Unvested at end of period 504,271 $ 49.06 - $ - Unrecognized compensation expense related to outstanding restricted stock units to employees and directors as of March 31, 2021 was $22.8 million and is expected to be expensed over the next 35 months. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES In November of 2020, McGovern Capital, Inc. and Kevin McGovern (collectively “McGovern”) filed a claim in arbitration related to its Representative Agreement with Celsius Holdings, Inc. as amended by the first amendment dated August 6, 2016. Pursuant to the Representative Agreement, McGovern is entitled to receive a fee of three percent (3%) of “Net Revenues” received by the Company’s from sales of the Company’s Products in the People’s Republic of China for a period of four years from Initial Commercial Sale (which was September 1, 2017). “Net Revenues” are defined in the Representative Agreement as “the Company’s revenues net of actual discounts applied, credits and returns.” Effective January 1, 2019, the Company restructured its China operations from a distribution arrangement with Qifeng Food Technology (Beijing) Co. Ltd. (“Qifeng”), to a license and royalty arrangement and a loan, pursuant to which Qifeng will market and distribute the Company’s products in China, and Celsius will receive an annual royalty payment. The Company intends to pay McGovern its percentage of the annual royalty payment, but McGovern has objected claiming that McGovern is entitled to be paid commissions on the entire royalty payment and the amount of the loan to Qifeng. The Company intends to defend against McGovern’s claims vigorously and has filed a counterclaim related to McGovern’s failure to comply with the covenant of good faith and fair dealing in the Representative Agreement. This matter is still in its early stages and the Company is unable to predict the outcome at this time. In addition to the foregoing, from time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. The Company has entered into distribution agreements with liquidated damages in case the Company cancels the distribution agreements without Cause. Cause has been defined in various ways. It is management’s belief that no such agreement has created any liability as of December 31, 2020. Additionally, our business and results of operations may be adversely affected by the pandemic and public health crises related to the COVID-19 outbreak which is affecting the macro-economic environment. Please refer to Item 1A. Risk Factors for further details. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS [Update for any subsequent events] |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation – US GAAP |
Significant Estimates | Significant Estimates |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation – |
Segment Reporting | Segment Reporting |
Concentrations of Risk | Concentrations of Risk The Company uses single supplier relationships for its raw materials purchases and filling capacity, which potentially subjects the Company to a concentration of business risk. If these suppliers had operational problems or ceased making product available to the Company, operations could be adversely affected. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality financial institutions. At times, balances in the Company’s cash accounts may exceed the Federal Deposit Insurance Corporation limit. At March 31, 2021, the Company had approximately $31.4 million in excess of the Federal Deposit Insurance Corporation limit. For the three months ended March 31, 2021 and 2020, the Company had the following 10 percent or greater concentrations of revenue with its customers. Specifically, there is one customer that has accounted for approximately 15.8% and 16.4% of our revenue for the three months ended March 31, 2021 and 2020, respectively. The below table reflects this customer’s evolution as a percentage of our total revenue for the three months ended March 31, 2021 and 2020: 2021 2020 Amazon 15.8 % 16.4 % All other 84.2 % 83.6 % Total 100.0 % 100.0 % At March 31, 2021 and December 31, 2020, the Company had the following 10 percent or greater concentrations of accounts receivable with its customers: 2021 2020 Amazon 22.1 % 11.3 % ICA Sweden 11.8 % 9.0 % All other 66.1 % 79.7 % Total 100.0 % 100.0 % |
Cash Equivalents | Cash Equivalents |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories |
Property and Equipment | Property and Equipment |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Long-lived Asset Geographic Data | Long-lived Asset Geographic Data The following table sets forth long-lived asset information, which includes property, plant and equipment and lease right-of-use assets and excludes goodwill and intangibles, where individual countries represent a material portion of the total: March 31, December 31, 2021 2020 United States $ 1,181,188 $ 694,697 Sweden 523,126 431,959 Finland 386,302 450,878 Long-lived assets related to foreign operations 909,428 882,837 Total long-lived assets $ 2,090,616 $ 1,577,534 |
Goodwill | Goodwill |
Intangible assets | Intangible assets |
Revenue Recognition | Revenue Recognition |
Customer Advances | Customer Advances |
Advertising Costs | Advertising Costs |
Research and Development | Research and Development |
Foreign Currency Translation | Foreign Currency Translation — Chinese-Yuan Norwegian-Krone Swedish-Krona Finland-Euro |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Fair Value Measurements | Fair Value Measurements Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Other than these noted previously, the Company did not have any other assets or liabilities measured at fair value at March 31, 2021 and December 31, 2020. |
Income Taxes | Income Taxes — Accounting for Uncertain Income Tax Positions. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25 Definition of Settlement, |
Earnings per Share | Earnings per Share For the three months ended 2021 2020 Net income $ 585,424 $ 546,051 Income (Loss) per share: Basic $ 0.01 $ 0.01 Diluted $ 0.01 $ 0.01 Weighted average shares outstanding: Basic 72,516,396 69,284,307 Diluted 76,925,484 70,339,416 |
Share-Based Payments | Share-Based Payments |
Cost of Sales | Cost of Sales |
Operating Expenses | Operating Expenses |
Shipping and Handling Costs | Shipping and Handling Costs |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company adopts all applicable, new accounting pronouncements as of the specified effective dates. In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which requires the immediate recognition of management’s estimates of current and expected credit losses. In November 2018, the FASB issued ASU 2018-19, which makes certain improvements to Topic 326. In April and May 2019, the FASB issued ASUs 2019-04 and 2019-05, respectively, which adds codification improvements and transition relief for Topic 326. In November 2019, the FASB issued ASU 2019-10, which delays the effective date of Topic 326 for Smaller Reporting Companies to interim and annual periods beginning after December 15, 2022, with early adoption permitted. In November 2019, the FASB issued ASU 2019-11, which makes improvements to certain areas of Topic 326. In February 2020, the FASB issued ASU 2020-02, which adds an SEC paragraph, pursuant to the issuance of SEC Staff Accounting Bulletin No. 119, to Topic 326. Topic 326 is effective for the Company for fiscal years and interim reporting periods within those years beginning after December 15, 2022. Early adoption is permitted for interim and annual periods beginning December 15, 2019. The Company is currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. All new accounting pronouncements issued but not yet effective are not expected to have a material impact on our results of operations, cash flows or financial position with the exception of the updated previously disclosed above, there have been no new accounting pronouncements not yet effective that have significance to our consolidated financial statements. Liquidity If our sales volumes do not meet our projections, expenses exceed our expectations, our plans change, we may be unable to generate enough cash flow from operations to cover our working capital requirements. In such case, we may be required to adjust our business plan, by reducing marketing, lower our working capital requirements and reduce other expenses or seek additional financing. Furthermore, our business and results of operations may be adversely affected by changes in the global macro-economic environment related to the pandemic and public health crises related to the COVID-19 outbreak. |
Liquidity | Liquidity If our sales volumes do not meet our projections, expenses exceed our expectations, our plans change, we may be unable to generate enough cash flow from operations to cover our working capital requirements. In such case, we may be required to adjust our business plan, by reducing marketing, lower our working capital requirements and reduce other expenses or seek additional financing. Furthermore, our business and results of operations may be adversely affected by changes in the global macro-economic environment related to the pandemic and public health crises related to the COVID-19 outbreak. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of revenue & accounts receivable with customers | The below table reflects this customer’s evolution as a percentage of our total revenue for the three months ended March 31, 2021 and 2020: 2021 2020 Amazon 15.8 % 16.4 % All other 84.2 % 83.6 % Total 100.0 % 100.0 % At March 31, 2021 and December 31, 2020, the Company had the following 10 percent or greater concentrations of accounts receivable with its customers: 2021 2020 Amazon 22.1 % 11.3 % ICA Sweden 11.8 % 9.0 % All other 66.1 % 79.7 % Total 100.0 % 100.0 % |
Schedule of long-lived asset geographic data | The following table sets forth long-lived asset information, which includes property, plant and equipment and lease right-of-use assets and excludes goodwill and intangibles, where individual countries represent a material portion of the total: March 31, December 31, 2021 2020 United States $ 1,181,188 $ 694,697 Sweden 523,126 431,959 Finland 386,302 450,878 Long-lived assets related to foreign operations 909,428 882,837 Total long-lived assets $ 2,090,616 $ 1,577,534 |
Schedule of anti-dilutive shares | Please refer to the below table for additional details: For the three months ended 2021 2020 Net income $ 585,424 $ 546,051 Income (Loss) per share: Basic $ 0.01 $ 0.01 Diluted $ 0.01 $ 0.01 Weighted average shares outstanding: Basic 72,516,396 69,284,307 Diluted 76,925,484 70,339,416 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of net sales by reporting segment | Information about the Company’s net sales by geographical location for the three months ended March 31, 2021 and 2020 is as follows: For the three months ended March 31, March 31, 2021 2020 North America $ 39,003,391 $ 19,359,169 Europe 10,367,793 8,500,852 Asia 536,169 268,292 Other 127,526 56,576 Net sales $ 50,034,879 $ 28,184,889 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following at: March 31, December 31, 2021 2020 Finished goods $ 26,224,583 $ 15,334,386 Raw Materials 13,034,266 4,682,291 Less: Inventory allowance for excess and obsolete products (2,366,990 ) (1,613,055 ) Inventories $ 36,891,859 $ 18,403,622 |
NOTE RECEIVABLE (Tables)
NOTE RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Note Receivable [Abstract] | |
Schedule of note receivable | Note receivable consists of the following at: March 31, December 31, 2021 2020 Note receivable-current $ 2,509,412 $ 1,885,887 Note receivable-non-current 6,900,882 9,429,437 Total Note receivable $ 9,410,294 $ 11,315,324 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of components of lease costs | The following is a summary of lease cost recognized in the Company’s consolidated statements of operations: Three months ended Three months ended March 31, March 31, Operating Finance Operating Finance Leases Leases Leases Leases Lease cost in general and administrative expenses: Operating lease expense $ 98,535 $ - $ 95,904 $ - Amortization of finance lease ROU assets - 36,000 - 137,165 Total lease cost in general and administrative expenses 98,535 36,000 95,904 137,165 Lease cost in other expense: Interest on finance lease liabilities - 1,601 - 3,596 Total lease cost in other expense - 1,601 - 3,596 Total lease cost $ 98,535 $ 37,601 $ 95,904 $ 140,761 |
Schedule of cash flow information related to leases | The following is a summary of the impact of the Company’s leases on the consolidated statements of cash flows: Three months ended March 31, 2021 2020 Leasing activity in cash flows from operating activities: Payments under operating leases (113,812 ) (96,084 ) Interest payments on finance lease liabilities (1,601 ) (3,596 ) Total leasing activity in cash flows from operating activities (115,413 ) (99,680 ) Leasing activity in cash flows from financing activities: Principal payments on finance lease liabilities (25,149 ) (64,082 ) Total leasing activity in cash flows from financing activities: (25,149 ) (64,082 ) |
Schedule of weightesd average remaining lease term and weighted average discount rate | The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases at March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, 2021 2020 Weighted average remaining lease term (years) - operating leases 2.4 2.6 Weighted average remaining lease term (years) - finance leases 0.9 1.1 Weighted average discount rate - operating leases 6.48 % 6.52 % Weighted average discount rate - finance leases 3.94 % 3.95 % |
Schedule of future annual minimum cash payments required under operating lease | The future annual minimum lease payments required under the Company’s leases as of March 31, 2021 are as follows: Operating Finance Future minimum lease payments Leases Leases Total 2021 $ 300,786 $ 203,990 $ 504,776 2022 288,192 73,289 361,481 2023 256,332 7,088 263,420 2024 16,592 - 16,592 Total future minimum lease payments 861,902 284,367 1,146,269 Less: Amount representing interest (87,645 ) (4,566 ) (92,211 ) Present value of lease liabilities 774,257 279,801 1,054,058 Less: current portion (337,626 ) (192,649 ) (530,275 ) Long-term portion $ 436,631 $ 87,152 $ 523,783 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consist of the following at: March 31, December 31, 2021 2020 Furniture and equipment $ 1,768,534 $ 1,103,301 Less: accumulated depreciation (599,512 ) (523,924 ) Total $ 1,169,022 $ 579,377 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of accumulated amortization of intangible assets | The gross carrying amount and accumulated amortization of intangible assets were as follows as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 Intangible assets subject to amortization Customer relationships gross carrying amount $ 14,050,000 $ 14,050,000 Less: accumulated amortization (733,803 ) (582,917 ) Total $ 13,316,197 $ 13,467,083 Intangible assets not subject to amortization Brands total carrying amount $ 3,123,000 $ 3,123,000 Total Intangibles $ 16,439,197 $ 16,590,083 |
Schedule future estimated amortization expense | The following is the future estimated amortization expense related to customer relationships: As of March 31, 2021: 2021 $ 562,000 2022 562,000 2023 562,000 2024 562,000 2025 562,000 Thereafter 10,506,197 $ 13,316,197 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consist of the following at: March 31, December 31, 2021 2020 Accounts payable $ 18,519,644 $ 11,854,421 Accrued expenses 19,005,746 13,558,332 Total $ 37,525,390 $ 25,412,753 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of other liabilities | Other current liabilities consist of the following at: March 31, December 31, 2021 2020 Other Liabilities-State Beverage Container Deposit $ 586,954 $ 425,232 Total $ 586,954 $ 425,232 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of black - scholes option-pricing model valuation assumption | The calculation of the fair value of the awards using the Black-Scholes option-pricing model is affected by the Company’s stock price on the date of grant as well as assumptions regarding the following: Three months ended 2021 2020 Expected volatility 69.18%-81.11 % 69.18%-81.11 % Expected term 4.49-5.00 Years 4.84-5.00 Years Risk-free interest rate 0.32%-1.39 % 1.35% - 1.39 % Forfeiture Rate 0.00 % 0.00 % |
Schedule of outstanding stock options | A summary of the status of the Company’s outstanding stock options as of March 31, 2021 and changes during the period ending on that date is as follows: Weighted Average Aggregate Weighted Shares Exercise Grant Date Fair Intrinsic Average (000’s) Price Value (000’s) Term (Yrs) Options At December 31, 2020 5,198 $ 4.23 $ 240,866 6.89 Granted 304 $ 42.49 $ 30.40 Exercised (328 ) $ 3.10 $ 56.37 $ 17,467 Forfeiture and cancelled (225 ) $ 15.79 At March 31, 2021 4,949 $ 6.55 $ 205,375 7.04 Exercisable at March 31, 2021 2,734 $ 3.99 $ 120,458 5.99 |
Schedule of employee stock options outstanding | The following table summarizes information about employee stock options outstanding at March 31, 2021: Outstanding Options Vested Options Number Number Outstanding Weighted Weighted Exercisable Weighted Weighted Range of at Averaged Averaged at Averaged Averaged Exercise March 31, Remaining Exercise March 31, Exercise Remaining Price 2021 (000’s) Life Price 2021 (000’s) Price Life $0.20 - $0.53 100 1.98 $ 0.26 100 $ 0.26 1.98 $0.65 - $1.80 105 3.91 $ 1.05 105 $ 1.05 3.91 $1.83 - $2.84 117 4.77 $ 1.97 117 $ 1.97 4.77 $3.20 - $6.20 4,238 7.06 $ 4.18 2,412 4.37 6.31 $7.20-$60.00 389 9.68 36.77 0 0.00 0 Outstanding options 4,949 6.87 $ 6.53 2,734 $ 3.99 5.99 |
Restricted Stock Awards [Member] | |
Schedule of restricted stock activity | A summary of the Company’s restricted stock activity for the three months ended March 31, 2021 and 2020 is presented in the following table: For the three Months ended March 31, March 31, Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested at beginning of period 66,229 $ 14.78 123,334 $ 3.34 Transfers to restricted stock units (45,871 ) 34.02 - - Granted 0 0.00 3,916 5.59 Vested (172 ) 22.30 (3,916 ) 5.59 Unvested at end of period 20,186 $ 14.72 123,334 $ 3.34 |
Restricted Stock Units (RSUs) [Member] | |
Schedule of restricted stock activity | A summary of the Company’s restricted stock unit activity for the three months ended March 31, 2021 and 2020 is presented in the following table: For the three Months ended March 31, March 31, Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested at beginning of period - $ - $ - Transfers from restricted stock awards 45,871 34.02 - Granted 468,600 50.56 - - Vested - - - - Forfeiture and cancelled (10,200 ) 50.31 Unvested at end of period 504,271 $ 49.06 - $ - |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Total | 100.00% | 100.00% |
Revenue [Member] | Amazon [Member] | ||
Concentration Risk [Line Items] | ||
Total | 15.80% | 16.40% |
Revenue [Member] | All Other [Member] | ||
Concentration Risk [Line Items] | ||
Total | 84.20% | 83.60% |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Total | 100.00% | 100.00% |
Accounts Receivable [Member] | Amazon [Member] | ||
Concentration Risk [Line Items] | ||
Total | 22.10% | 11.30% |
Accounts Receivable [Member] | All Other [Member] | ||
Concentration Risk [Line Items] | ||
Total | 66.10% | 79.70% |
Accounts Receivable [Member] | ICA Sweden [Member] | ||
Concentration Risk [Line Items] | ||
Total | 11.80% | 9.00% |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Total long-lived assets | $ 2,090,616 | $ 1,577,534 |
Long-lived assets related to foreign operations | 909,428 | 882,837 |
United States [Member] | ||
Total long-lived assets | 1,181,188 | 694,697 |
SWEDEN [Member] | ||
Long-lived assets related to foreign operations | 523,126 | 431,959 |
FINLAND | ||
Long-lived assets related to foreign operations | $ 386,302 | $ 450,878 |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Accounting Policies [Abstract] | |||
Net income | $ 585,424 | $ 546,051 | |
Income (Loss) per share: | |||
Basic | $ 0.01 | $ 0.01 | |
Diluted | $ 0.01 | $ 0.01 | |
Weighted average shares outstanding: | |||
Basic | 72,516,396 | 69,284,307 | |
Diluted | [1] | 76,925,484 | 70,339,416 |
[1] | Please refer to Earnings per Share section for further details. |
BASIS OF PRESENTATION AND SUM_7
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | ||
Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Amount excess of FDIC limit | $ 31,400,000 | ||
Allowance for doubtful accounts | 772,607 | $ 549,573 | |
Inventory reserve | 2,366,990 | 1,613,055 | |
Advertising expense | 5,300,000 | $ 2,700,000 | |
Research and development expense | 200,000 | 123,000 | |
Foreign Currency Translation | $ 192,500 | 115,000 | |
Income tax benefit | 0.50 | ||
Number of shares available | shares | 5,000,000 | ||
Freight expense | $ 4,200,000 | 2,100,000 | |
Accumulated deficit | (54,841,408) | $ (55,426,832) | |
Net income | 585,424 | 546,051 | |
Net cash used in operating activities | $ (13,318,001) | $ (3,817,544) | |
Stock Incentive Plan 2015 [Member] | |||
Number of shares available | shares | 1,800,000 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 50,034,879 | $ 28,184,889 |
North America [Member] | ||
Net sales | 39,003,391 | 19,359,169 |
Europe [Member] | ||
Net sales | 10,367,793 | 8,500,852 |
Asia [Member] | ||
Net sales | 536,169 | 268,292 |
Other [Member] | ||
Net sales | $ 127,526 | $ 56,576 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 50,034,879 | $ 28,184,889 |
Foreign Revenues [Member] | ||
Revenues | 11,000,000 | 8,800,000 |
Foreign Revenues [Member] | SWEDEN [Member] | ||
Revenues | 6,500,000 | $ 5,800,000 |
License Agreement [Member] | ||
Revenues | 393,000 | |
Royalty fees | $ 6,600,000 | |
Term of agreement | The term of the agreement is 50 years. |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 26,224,583 | $ 15,334,386 |
Raw Materials | 13,034,266 | 4,682,291 |
Less: Inventory reserve | (2,366,990) | (1,613,055) |
Inventories | $ 36,891,859 | $ 18,403,622 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses and other current assets | $ 17,183,929 | $ 14,626,922 |
Customer advances | $ 2,600,000 |
NOTE RECEIVABLE (Details)
NOTE RECEIVABLE (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Note Receivable [Abstract] | ||
Note Receivable-current | $ 2,509,412 | $ 1,885,887 |
Note Receivable-non-current | 6,900,882 | 9,429,437 |
Total Note Receivable | $ 9,410,294 | $ 11,315,324 |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) | 3 Months Ended |
Mar. 31, 2021USD ($)shares | |
Note Receivable description | Scheduled principal payments plus accrued interest are due annually on March 31 of each year starting in 2020. The Note is recorded at amortized cost basis and accrues interest at a rate per annum equal to the weighted average of 5% of the outstanding principal up to $5 million and 2% of the outstanding principal above $5 million |
Weighted average interest rate | 3.21% |
Interest income | $ 87,000 |
Instalment collateral shares | shares | 337,079 |
Investment Agreement [Member] | |
Payment for royalty fees | $ 6,900,000 |
LEASES (Details)
LEASES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Leases [Member] | ||
Lease cost in general and administrative expenses: | ||
Operating lease expense | $ 98,535 | $ 95,904 |
Amortization of finance lease ROU assets | ||
Total lease cost in general and administrative expenses | 98,535 | 95,904 |
Lease cost in other expense: | ||
Interest on finance lease liabilities | ||
Total lease cost in other expense | ||
Total lease cost | 98,535 | 95,904 |
Finance Leases [Member] | ||
Lease cost in general and administrative expenses: | ||
Operating lease expense | ||
Amortization of finance lease ROU assets | 36,000 | 137,165 |
Total lease cost in general and administrative expenses | 36,000 | 137,165 |
Lease cost in other expense: | ||
Interest on finance lease liabilities | 1,601 | 3,596 |
Total lease cost in other expense | 1,601 | 3,596 |
Total lease cost | $ 37,601 | $ 140,761 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating leases | $ (113,812) | $ (96,084) |
Interest payments on finance lease liabilities | (1,601) | (3,596) |
Total leasing activity in cash flows from operating activities | (115,413) | (99,680) |
Principal payments on finance lease liabilities | (25,149) | (64,082) |
Total leasing activity in cash flows from financing activities: | $ (25,149) | $ (64,082) |
LEASES (Details 2)
LEASES (Details 2) | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases [Member] | ||
Weighted average remaining lease term (years) | 2 years 4 months 24 days | 2 years 7 months 6 days |
Weighted average discount rate | 6.48% | 6.52% |
Finance Leases [Member] | ||
Weighted average remaining lease term (years) | 10 months 25 days | 1 year 1 month 6 days |
Weighted average discount rate | 3.94% | 3.95% |
LEASES (Details 3)
LEASES (Details 3) | Mar. 31, 2021USD ($) |
Future minimum lease payments | |
2021 | $ 504,776 |
2022 | 361,481 |
2023 | 263,420 |
2024 | 16,592 |
Total future minimum lease payments | 1,146,269 |
Less: Amount representing interest | (92,211) |
Present value of lease liabilities | 1,054,058 |
Less Current Portion | (530,275) |
Long-Term Portion | 523,783 |
Operating Leases [Member] | |
Future minimum lease payments | |
2021 | 300,786 |
2022 | 288,192 |
2023 | 256,332 |
2024 | 16,592 |
Total future minimum lease payments | 861,902 |
Less: Amount representing interest | (87,645) |
Present value of lease liabilities | 774,257 |
Less Current Portion | (337,626) |
Long-Term Portion | 436,631 |
Finance Leases [Member] | |
Future minimum lease payments | |
2021 | 203,990 |
2022 | 73,289 |
2023 | 7,088 |
2024 | |
Total future minimum lease payments | 284,367 |
Less: Amount representing interest | (4,566) |
Present value of lease liabilities | 279,801 |
Less Current Portion | (192,649) |
Long-Term Portion | $ 87,152 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 1,768,534 | $ 1,103,301 |
Less: accumulated depreciation | (599,512) | (523,924) |
Total | $ 1,169,022 | $ 579,377 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 108,198 | $ 124,939 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible assets subject to amortization | ||
Customer relationships gross carrying amount | $ 14,050,000 | $ 14,050,000 |
Less: accumulated amortization | (733,803) | (582,917) |
Total | 13,316,197 | 13,467,083 |
Intangible assets not subject to amortization | ||
Brands total carrying amount | 3,123,000 | 3,123,000 |
Total Intangibles | $ 16,439,197 | $ 16,590,083 |
GOODWILL AND INTANGIBLES (Det_2
GOODWILL AND INTANGIBLES (Details 1) | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 562,000 |
2022 | 562,000 |
2023 | 562,000 |
2024 | 562,000 |
2025 | 562,000 |
Thereafter | 10,506,197 |
Total | $ 13,316,197 |
GOODWILL AND INTANGIBLES (Det_3
GOODWILL AND INTANGIBLES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fair value of net tangible and intangible assets including goodwill | $ 10,419,000 | |
Amortized over estimated useful life | 25 years | |
Amortization expense | $ 151,000 | $ 144,000 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 18,519,644 | $ 11,854,421 |
Accrued expenses | 19,005,746 | 13,558,332 |
Total | $ 37,525,390 | $ 25,412,753 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Other Liabilities-State Beverage Container Deposit | $ 586,954 | $ 425,232 |
Total | $ 586,954 | $ 425,232 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - CD Financial, LLC [Member] - Office [Member] - Carl DeSantis [Member] | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Lease expiration | 2024-01 |
Monthly expense | $ 17,295 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Proceeds from Options exercised | $ 715,910 | $ 215,347 |
Number of options exercised | 328 | |
Stock Incentive Plan 2015 [Member] | ||
Number of option shares granted | 322,858 | 337,949 |
Proceeds from Options exercised | $ 715,910 | $ 215,347 |
Number of options exercised | 234,546 | 133,921 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Forfeiture Rate | 0.00% | 0.00% |
Minimum [Member] | ||
Expected volatility | 69.18% | 69.18% |
Expected term | 4 years 5 months 27 days | 4 years 10 months 3 days |
Risk-free interest rate | 0.32% | 1.35% |
Maximum [Member] | ||
Expected volatility | 81.11% | 81.11% |
Expected term | 5 years | 5 years 22 days |
Risk-free interest rate | 1.39% | 1.39% |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Options outstanding Balance at beginning | 5,198 | |
Options outstanding, Granted | 304 | |
Options outstanding, Exercised | (328) | |
Options outstanding, Forfeiture and cancelled | (225) | |
Options outstanding, Balance at end | 4,949 | 5,198 |
Options outstanding, Exercisable at end | 2,734 | |
Weighted Average Exercise Price, Balance at beginning | $ 4.23 | |
Weighted Average Exercise Price, Granted | 42.49 | |
Weighted Average Exercise Price, Exercised | 3.1 | |
Weighted Average Exercise Price, Forfeiture and cancelled | 15.79 | |
Weighted Average Exercise Price, Balance at end | 6.55 | $ 4.23 |
Weighted Average Exercise Price, Exercisable at end | 3.99 | |
Weighted Average Grant Date Fair Value Granted | 30.4 | |
Weighted Average Grant Date Fair Value Exercised | $ 56.37 | |
Aggregate Intrinsic Value Balance at beginning | $ 240,866 | |
Aggregate Intrinsic Value Exercised | 17,467 | |
Aggregate Intrinsic Value Balance at end | 205,375 | $ 240,866 |
Aggregate Intrinsic Value Exercisable | $ 120,458 | |
Weighted Average Remaining Term Balance | 7 years 15 days | 6 years 10 months 21 days |
Weighted Average Remaining Term, exercisable | 5 years 11 months 26 days |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 2) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Outstanding Options | |
Number Outstanding at end | shares | 4,949 |
Weighted Averaged Remaining Life | 6 years 10 months 14 days |
Weighted Averaged Exercise Price | $ / shares | $ 6.53 |
Vested Options | |
Number Exercisable at end | shares | 2,734 |
Weighted Averaged Exercise Price | $ / shares | $ 3.99 |
Weighted Averaged Remaining Life | 5 years 11 months 26 days |
$0.20 - $0.53 [Member] | |
Outstanding Options | |
Number Outstanding at end | shares | 100 |
Weighted Averaged Remaining Life | 1 year 11 months 23 days |
Weighted Averaged Exercise Price | $ / shares | $ 0.26 |
Vested Options | |
Number Exercisable at end | shares | 100 |
Weighted Averaged Exercise Price | $ / shares | $ 0.26 |
Weighted Averaged Remaining Life | 1 year 11 months 23 days |
$0.65 - $1.80 [Member] | |
Outstanding Options | |
Number Outstanding at end | shares | 105 |
Weighted Averaged Remaining Life | 3 years 10 months 28 days |
Weighted Averaged Exercise Price | $ / shares | $ 1.05 |
Vested Options | |
Number Exercisable at end | shares | 105 |
Weighted Averaged Exercise Price | $ / shares | $ 1.05 |
Weighted Averaged Remaining Life | 3 years 10 months 28 days |
$1.83 - $2.84 [Member] | |
Outstanding Options | |
Number Outstanding at end | shares | 117 |
Weighted Averaged Remaining Life | 4 years 9 months 7 days |
Weighted Averaged Exercise Price | $ / shares | $ 1.97 |
Vested Options | |
Number Exercisable at end | shares | 117 |
Weighted Averaged Exercise Price | $ / shares | $ 1.97 |
Weighted Averaged Remaining Life | 4 years 9 months 7 days |
$3.20 - $6.20 [Member] | |
Outstanding Options | |
Number Outstanding at end | shares | 4,238 |
Weighted Averaged Remaining Life | 7 years 22 days |
Weighted Averaged Exercise Price | $ / shares | $ 4.18 |
Vested Options | |
Number Exercisable at end | shares | 2,412 |
Weighted Averaged Exercise Price | $ / shares | $ 4.37 |
Weighted Averaged Remaining Life | 6 years 3 months 22 days |
$7.20-$60.00 [Member] | |
Outstanding Options | |
Number Outstanding at end | shares | 389 |
Weighted Averaged Remaining Life | 9 years 8 months 5 days |
Weighted Averaged Exercise Price | $ / shares | $ 36.77 |
Vested Options | |
Number Exercisable at end | shares | 0 |
Weighted Averaged Exercise Price | $ / shares | $ 0 |
STOCK-BASED COMPENSATION (Det_4
STOCK-BASED COMPENSATION (Details 3) - Restricted Stock Awards [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unvested at beginning of period | 66,229 | 123,334 |
Transfers to restricted stock units | (45,871) | 0 |
Granted | 0 | 3,916 |
Vested | (172) | (3,916) |
Unvested at end of period | 20,186 | 123,334 |
Unvested at beginning of period (in Dollars per share) | $ 14.78 | $ 3.34 |
Restricted stock Transfers to restricted stock units(in Dollars per share) | 34.02 | |
Restricted stock granted (in Dollars per share) | 0 | 5.59 |
Restricted stock vested (in Dollars per share) | 22.3 | 5.59 |
Unvested at end of period (in Dollars per share) | $ 14.72 | $ 3.34 |
STOCK-BASED COMPENSATION (Det_5
STOCK-BASED COMPENSATION (Details 4) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unvested at beginning of period | 0 | 0 |
Transfers from restricted stock awards | 45,871 | 0 |
Granted | 468,600 | 0 |
Vested | 0 | 0 |
Forfeiture and cancelled | (10,200) | |
Unvested at end of period | 504,271 | 0 |
Unvested at beginning of period (in Dollars per share) | ||
Restricted stock Transfers from restricted stock awards (in Dollars per share) | $ 34.02 | |
Restricted stock granted (in Dollars per share) | 50.56 | |
Restricted stock vested (in Dollars per share) | ||
Restricted stock Forfeiture and cancelled (in Dollars per share) | 50.31 | |
Unvested at end of period (in Dollars per share) | $ 49.06 |
STOCK-BASED COMPENSATION (Det_6
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Apr. 30, 2015 | Jan. 18, 2007 | Mar. 31, 2021 | Mar. 30, 2021 | Mar. 31, 2020 | Feb. 28, 2015 | May 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation (Details) [Line Items] | ||||||||
Number of shares available | 5,000,000 | |||||||
Average share price (in dollars per share) (in Dollars per share) | $ 42.49 | |||||||
Restricted Stock Awards [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Period unrecognized pre-tax non-cash compensation expense | 4 months | |||||||
Unrecognized compensation expense | $ 98,234 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Period unrecognized pre-tax non-cash compensation expense | 35 months | |||||||
Unrecognized compensation expense | $ 22,800,000 | |||||||
Equity Option [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Unrecognized pre-tax non-cash compensation expense (in Dollars) | $ 24,700,000 | |||||||
Period unrecognized pre-tax non-cash compensation expense | 2 years 5 months 12 days | |||||||
General and Administrative Expense [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Non-cash compensation expense (in Dollars) | $ 3,600,000 | $ 1,400,000 | ||||||
Maximum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Stock incentive plan, description | The Company used straight-line amortization of compensation expense over the two to three-year requisite service or vesting period of the grant. | |||||||
Stock Incentive Plan [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Plan expiration term | 10 years | |||||||
Stock Incentive Plan [Member] | Maximum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Number of shares authorized | 5,100,000 | 4,600,000 | 4,250,000 | 3,500,000 | ||||
Stock Incentive Plan [Member] | Minimum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Number of shares authorized | 4,600,000 | 4,250,000 | 3,500,000 | 2,500,000 | ||||
Stock Incentive Plan 2015 [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Number of shares authorized | 5,000,000 | |||||||
Stock incentive plan, description | In addition, there is a provision for an annual increase of 15% of the shares pertaining to the 2015 plan that are outstanding as of the last day of the prior year. | |||||||
Number of shares available | 1,800,000 | |||||||
Issued options shares | 4,900,000 | |||||||
Average share price (in dollars per share) (in Dollars per share) | $ 4.23 | |||||||
Fair value of shares issued (in Dollars) | $ 205,400,000 | |||||||
Purchase of common shares | 303,750 | 285,000 |