| Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting
Policies Basis of Presentation The accompanying consolidated financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). All amounts referred to in the notes to the
consolidated financial statements are in United States Dollars ($) unless stated otherwise. The consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been
eliminated in consolidation. Use of Estimates The preparation of the consolidated financial
statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts
of expenses during the reporting period. Actual results could differ from those estimates. At December 31, 2019 and 2018 significant
estimates included are assumptions about collection of accounts receivable, current income taxes, deferred income taxes valuation
allowance, useful life of fixed and intangible assets, impairment analysis of goodwill and intangible assets, estimates used in
the fair value calculation of stock based compensation, assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such
as expected volatility, risk-free interest rate, and expected dividend rate. The results of any changes in accounting estimates
are reflected in the financial statements in the period in which the changes become evident. Estimates and assumptions are reviewed
periodically, and the effects of revisions are reflected in the period that they are determined to be necessary. Reclassification Certain amounts in prior periods have been
reclassified to conform to current period presentation. These reclassifications had no effect on the previously reported net loss. Cash and Cash Equivalents The Company considers all cash on hand and
in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities
of three months or less, when purchased, to be cash and cash equivalents. As of December 31, 2019, and 2018, the Company had no
cash equivalents. The Company maintains its cash and cash equivalents in banks insured by the Federal Deposit Insurance Corporation
(FDIC) in accounts that at times may be in excess of the federally insured limit of $250,000 per bank. The Company minimizes this
risk by placing its cash deposits with major financial institutions. At December 31, 2019 and 2018, the uninsured balances amounted
to $947,312 and $162,729, respectively. Restricted Cash The following table provides a reconciliation
of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the
same such amounts shown in the statement of cash flows.
December 31, 2019
December 31, 2018
Cash and cash equivalents $ 1,224,514 $ 459,736
Restricted cash 100,000 136,180
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,324,514 $ 595,916 Amounts included in restricted cash represent
amount held for credit card collateral. Capitalization of Fixed Assets The Company capitalizes expenditures related
to property and equipment, subject to a minimum rule, that have a useful life greater than one year for: (1) assets purchased;
(2) existing assets that are replaced, improved or the useful lives have been extended; or (3) all land, regardless of cost. Acquisitions
of new assets, additions, replacements and improvements (other than land) costing less than the minimum rule in addition to maintenance
and repair costs, including any planned major maintenance activities, are expensed as incurred. Intangible Assets We evaluate the recoverability of intangible
assets periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate
that impairment exists. All of our intangible assets are subject to amortization except intellectual property of $1,450,000 acquired
as part of an Asset Purchase Agreement entered into with Factor Nutrition Labs LLC on January 22, 2015, $10,000 acquired as part
of an Asset Purchase Agreement entered into with Perfekt Beauty Holdings LLC and CDG Holdings, LLC (“Perfekt”) on June
21, 2017 and $50,000 acquired as an Asset Purchase entered into with Cocowhite on May 22, 2018. Intangible assets are amortized
on a straight line basis over the useful lives. During the year ended December 31, 2018, the Company fully impaired intangible
assets related to Perfekt and Cocowhite and charged to operations impairment loss of $60,000. During the year ended December 31,
2019, the Company fully impaired intellectual property related to Focus Factor and charged to operations impairment loss of $1,450,000. Long-lived Assets Long-lived assets include equipment and intangible
assets other than those with indefinite lives. We assess the carrying value of our long-lived asset groups when indicators of impairment
exist and recognize an impairment loss when the carrying amount of a long-lived asset is not recoverable when compared to undiscounted
cash flows expected to result from the use and eventual disposition of the asset. Indicators of impairment include significant
underperformance relative to historical or projected future operating results, significant changes in our use of the assets or
in our business strategy, loss of or changes in customer relationships and significant negative industry or economic trends. When
indications of impairment arise for a particular asset or group of assets, we assess the future recoverability of the carrying
value of the asset (or asset group) based on an undiscounted cash flow analysis. If carrying value exceeds projected, net, undiscounted
cash flows, an additional analysis is performed to determine the fair value of the asset (or asset group), typically a discounted
cash flow analysis, and an impairment charge is recorded for the excess of carrying value over fair value. As of December 31, 2018
our review of intangible assets related to two of our subsidiaries did indicate that the carrying amount of the asset may not be
recoverable. During the year ended December 31, 2018, the Company fully impaired related intangible assets and charged to operations
impairment loss of $864,067. During the year ended December 31, 2019, the Company fully impaired intangible assets and charged
to operations impairment loss of $471,897. Goodwill An asset purchase is accounted for under the
purchase method of accounting. Under that method, assets and liabilities of the business acquired are recorded at their estimated
fair values as of the date of the acquisition, with any excess of the cost of the acquisition over the estimated fair value of
the net tangible and intangible assets acquired recorded as goodwill. As of December 31, 2018 our qualitative analysis of goodwill
did not indicate any impairment. As of December 31, 2019 our qualitative analysis of goodwill indicated potential impairment, thus
the Company chose to fully impair goodwill and charged to operations impairment loss of $7,793,240. Revenue Recognition Adoption of ASU 2014-09, Revenue from Contracts
with Customers On January 1, 2018, the Company adopted Financial
Accounting Standards Board (FASB) Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606)
using the modified retrospective (cumulative effect) transition method. Under this transition method, results for reporting periods
beginning January 1, 2018 or later are presented under ASC 606, while prior period results continue to be reported in accordance
with previous guidance. The cumulative effect of the initial application of ASC 606 was immaterial, no adjustment was recorded
to the opening balance of retained earnings. The timing of revenue recognition for our various revenue streams was not materially
impacted by the adoption of this standard. The Company believes its business processes, systems, and controls are appropriate to
support recognition and disclosure under ASC 606. In addition, the adoption has led to increased footnote disclosures. Overall,
the adoption of ASC 606 did not have a material impact on the Company’s consolidated balance sheet, statement of operations
and comprehensive income and statement of cash flows for the year ended December 31, 2018. ASC 606 also requires additional disclosures
about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant
judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. As described below, the analysis
of contracts under ASC 606 supports the recognition of revenue at a point in time, resulting in revenue recognition timing that
is materially consistent with the Company’s historical practice of recognizing product revenue when title and risk of loss
pass to the customer. Policy The Company recognizes revenue in accordance
with the Financial Accounting Standards Board’s (“FASB”), Accounting Standards Codification (“ASC”)
ASC 606, Revenue from Contracts with Customers (“ASC 606”). Revenues are recognized when control is transferred to
customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods.
Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer;
(ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation
of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance
obligation is satisfied. The Company recognizes revenue upon shipment
from its fulfillment centers. Certain of our distributors may also perform a separate function as a co-packer on our behalf. In
such cases, ownership of and title to our products that are co-packed on our behalf by those co-packers who are also distributors,
passes to such distributors when we are notified by them that they have taken transfer or possession of the relevant portion of
our finished goods. Freight billed to customers is presented as revenues, and the related freight costs are presented as cost of
goods sold. Cancelled orders are refunded if not already dispatched, refunds are only paid if stock is damaged in transit, discounts
are only offered with specific promotions and orders will be refilled if lost in transit. The Company recognizes revenue
for its digital products in the month the download by the customer occurs. Contract Assets The Company does not have any contract assets
such as work-in-process. All trade receivables on the Company’s consolidated balance sheet are from contracts with customers. Contract Costs Costs incurred to obtain a contract are capitalized
unless short term in nature. As a practical expedient, costs to obtain a contract that are short term in nature are expensed as
incurred. The Company does not have any contract costs capitalized as of December 31, 2019. Contract Liabilities - Deferred Revenue The Company’s contract liabilities consist
of advance customer payments and deferred revenue. Deferred revenue results from transactions in which the Company has been paid
for products by customers, but for which all revenue recognition criteria have not yet been met. Once all revenue recognition criteria
have been met, the deferred revenues are recognized. Accounts receivable Accounts receivable are generally unsecured.
The Company establishes an allowance for doubtful accounts receivable based on the age of outstanding invoices and management’s
evaluation of collectability. Accounts are written off after all reasonable collection efforts have been exhausted and management
concludes that likelihood of collection is remote. Any future recoveries are applied against the allowance for doubtful accounts.
As of December 31, 2019 and 2018, allowance for doubtful accounts was $283,971 and $0, respectively. Advertising Expense The Company expenses marketing, promotions
and advertising costs as incurred. Such costs are included in selling and marketing expense in the accompanying consolidated statements
of operations. Research and Development Costs incurred in connection with the development
of new products and processing methods are charged to general and administrative expenses as incurred. Income Taxes The Company utilizes FASBASC 740, “Income
Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities
are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based
on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.
A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. The Company generated a deferred tax asset
through net operating loss carry-forward. However, a valuation allowance of 100% has been established due to the uncertainty of
the Company’s realization of the net operating loss carry forward prior to its expiration. NomadChoice Pty Ltd, the Company’s wholly-owned
subsidiary is subject to income taxes in the jurisdictions in which it operates. Significant judgment is required in determining
the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for
which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit issues based on
the Company’s current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Synergy CHC Inc. is a wholly-owned foreign
subsidiary, is subject to income taxes in the jurisdictions in which it operates. Significant judgment is required in determining
the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for
which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit issues based on
the Company’s current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Net Earnings (Loss) Per Common Share The Company computes earnings per share under
ASC subtopic 260-10, Earnings Per Share. Basic earnings (loss) per share is computed by dividing the net income (loss) attributable
to the common stockholders (the numerator) by the weighted average number of shares of common stock outstanding (the denominator)
during the reporting periods. Diluted earnings per share is computed by increasing the denominator by the weighted average number
of additional shares that could have been outstanding from securities convertible into common stock (using the “treasury
stock” method), unless their effect on net income per share is anti-dilutive. As of December 31, 2019, and 2018, options
to purchase 6,166,667 and 7,166,667 shares of common stock, respectively, were outstanding. The following is a reconciliation of the number
of shares used in the calculation of basic and diluted loss per share for the years ending December 31, 2019, and 2018:
For the year ending
December 31, 2019 December 31, 2018
Net loss after tax $ (9,207,447 ) $ (6,160,690 )
Weighted average common shares outstanding 89,883,194 89,862,683
Net loss per share:
Basic $ (0.10 ) $ (0.07 )
Diluted $ (0.10 ) $ (0.07 ) Fair Value Measurements The Company measures and discloses the fair
value of assets and liabilities required to be carried at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures.
ASC 820 defines fair value, establishes a framework for measuring fair value, and enhances fair value measurement disclosure. ASC 825 defines fair value as the price that
would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded
at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions
that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk
of nonperformance. ASC 825 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs
and minimize the use of unobservable inputs when measuring fair value. ASC 825 establishes three levels of inputs that may be used
to measure fair value: Level 1 - Quoted prices for identical assets
or liabilities in active markets to which we have access at the measurement date. Level 2 - Inputs other than quoted prices within
Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset
or liability. The determination of where assets and liabilities
fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. As of December 31, 2019, the Company has determined
that there were no assets or liabilities measured at fair value. Inventory Inventory consists of raw materials, components
and finished goods. The Company’s inventory is stated at the lower of cost (FIFO cost basis) or net realizable value. Finished
goods include the cost of labor to assemble the items. Stock-Based Compensation ASC 718, “Compensation – Stock
Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee services
are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments
such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee
stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized
over the period during which an employee is required to provide services in exchange for the award, known as the requisite service
period (usually the vesting period). Foreign Currency Translation The functional currency of one of the Company’s
foreign subsidiaries (Nomadchoice Pty Ltd.) is the U.S. Dollar. The Company’s foreign subsidiary maintains its records using
local currency (Australian Dollar – “AUD”). All monetary assets and liabilities of the foreign subsidiary were
translated into U.S. Dollars at period end exchange rates, non-monetary assets and liabilities of the foreign subsidiary were translated
into U.S. Dollars at transaction day exchange rates. Income and expense items related to non-monetary items were translated at
exchange rates prevailing during the transaction date and other incomes and expenses were translated using average exchange rate
for the period. The resulting translation adjustments, net of income taxes, were recorded in statements of operations as Remeasurement
gain or loss on translation of foreign subsidiary. The functional currency of the Company’s
other foreign subsidiary (Synergy CHC Inc.) is the Canadian Dollar (CAD). The Company’s foreign subsidiary maintains its
records using local currency (CAD). All assets and liabilities of the foreign subsidiary were translated into U.S. Dollars at period
end exchange rates and stockholders’equity is translated at the historical rates. Income and expense items were translated
using average exchange rate for the period. The resulting translation adjustments, net of income taxes, are reported as other comprehensive
income and accumulated other comprehensive income in the stockholder’s equity in accordance with ASC 220 – Comprehensive
Income. The exchange rates used to translate amounts
in AUD and CAD into USD for the purposes of preparing the consolidated financial statements were as follows: Balance sheet:
December 31, December 31,
2019 2018
Period-end AUD: USD exchange rate $ 0.7030 $ 0.7046
Period-end CAD: USD exchange rate $ 0.7699 $ 0.7330 Income statement:
December 31, December 31,
2019 2018
Average Yearly AUD: USD exchange rate $ 0.6954 $ 0.7476
Average Yearly CAD: USD exchange rate $ 0.7537 $ 0.7718 Translation gains and losses that arise from
exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated into either
Australian Dollars or Canadian Dollars, as the case may be, at the rate on the date of the transaction and included in the results
of operations as incurred. Concentrations of Credit Risk In the normal course of business, the Company
provides credit terms to its customers; however, collateral was not required. Accordingly, the Company performed credit evaluations
of its customers and maintained allowances for possible losses which, when realized, were within the range of management’s
expectations. From time to time, a higher concentration of credit risk existed on outstanding accounts receivable for a select
number of customers due to individual buying patterns. Warehousing costs Warehouse costs include all third party warehouse
rent fees and are charged to selling and marketing expenses as incurred. Any additional costs relating to assembly or special pack-outs
of the Company’s products are charged to cost of sales. Product display costs All displays manufactured and purchased by
the Company are for placement of product in retail stores. This also includes all costs for display execution and setup and retail
services are charged to cost of sales and expensed as incurred. Cost of Sales Cost of sales includes the purchase cost of
products sold, all costs associated with getting the products into the retail stores including buying and transportation costs
and the hosting of our online Application. Debt Issuance Costs Debt issuance costs
consist primarily of arrangement fees, professional fees and legal fees. These costs are netted off with the related loan and are
being amortized to interest expense over the term of the related debt facilities. Shipping Costs Shipping and handling
costs billed to customers are recorded in sales. Shipping costs incurred by the company are recorded in selling and marketing expenses. Related parties Parties are considered
to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled
by, or are under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management and other parties with which the Company
may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that
one of the transacting parties might be prevented from fully pursuing its own separate interests. Segment Reporting Segment identification
and selection is consistent with the management structure used by the Company’s chief operating decision maker to evaluate
performance and make decisions regarding resource allocation, as well as the materiality of financial results consistent with that
structure. Based on the Company’s management structure and method of internal reporting, the Company has one operating segment.
The Company’s chief operating decision maker does not review operating results on a disaggregated basis; rather, the chief
operating decision maker reviews operating results on an aggregated basis. Presentation of Financial Statements –
Going Concern Going Concern Evaluation In connection with preparing consolidated financial
statements for the year ended December 31, 2019, management evaluated whether there were conditions and events, considered in the
aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from
the date that the financial statements are issued. The Company considered the following: ● At December 31, 2019, the Company had
an accumulated deficit of $24,234,569. ● At December 31, 2019, the Company had
working capital deficit of $5,099,969. ● Revenue declined in 2019 by $4,466,949. ● The Company had net loss of $9,207,447
in 2019 as opposed to a net loss of $6,160,690 in 2018. ● The Company obtained waiver against
not meeting financial covenants related to loans payable (minimum EBITDA). ● The Company is required to make repayment
of loans payable of $500,000 and accrued interest during the three months ended March 31, 2020 Ordinarily, conditions or events that raise
substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its
obligations as they become due. The Company evaluated its ability to meet its
obligations as they become due within one year from the date that the financial statements are issued by considering the following: ● The Company raised $10.0 million via
debt financing during the year ended December 31, 2017. ● In 2019, the Company repaid $2.05 million
of loans. ● In 2019, the Company generated $2.9
million of cash from operating activities. ● Working capital deficit of $5,099,969
at December 31, 2019, includes loans payables to related party of $5,465,113, royalty payable to related party of $94,778 and deferred
revenue of $7,887. ● Revenue declines were largely the result
of not overspending in marketing in 2019. ● The Company has line of credit facility
of $20 million available from its current lender for future mergers and acquisition. Management concluded that above factors alleviates
doubts about the Company’s ability to generate enough cash from operations and other available sources to satisfy its obligations
for the next twelve months from the issuance date. The Company will take the following actions
if it starts to trend unfavorably to its internal profitability and cash flow projections, in order to mitigate conditions or events
that would raise substantial doubt about its ability to continue as a going concern: ● Raise additional capital through line
of credit and/or loans financing for future mergers and acquisition, which may be impacted by the recent outbreak of COVID-19. ● Implement additional restructuring
and cost reductions. ● Raise additional capital through a
private placement, which may be impacted by the recent outbreak of COVID-19. At April 13, 2020 and December 31, 2019, the
Company had $949,812 and $1,324,514, respectively in cash and cash equivalents. Recent Accounting Pronouncements ASU 2018-13 In August 2018, the FASB issued ASU 2018-13,
Fair Value Measurement (Topic 820): Disclosure Framework – Changes in Disclosure Requirements for Fair Value Measurement,
which removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13
is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption
is permitted. The adoption of ASU 2018-13 is not expected to have any impact on the Company’s consolidated financial statements. ASU 2018-07 In June 2018, the FASB issued ASU 2018-07,
Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies
the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees,
with certain exceptions. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods
within those fiscal years. Early adoption is permitted. Adoption of this new standard did not have any impact on the Company’s
consolidated financial statements. ASU 2017 - 04, Intangibles - Goodwill and other
(Topic 350) In January 2017, the
FASB issued Accounting Standards Update ("ASU") 2017-04 Intangibles - Goodwill and other, which simplifies the test for
goodwill impairment. This Update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill
under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and
liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair
value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or
interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize
an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized
should not exceed the total amount of goodwill allocated to the reporting unit. The amendments in this Update are effective for
the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is
permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update
on its consolidated financial statements and related disclosures. ASU 2016-15 In August 2016, the
FASB issued AS 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and
cash payments are presented and classified in the statement of cash flows. The effective date for ASU 2016-15 is for fiscal years
beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is
permitted. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. ASU 2016-13 In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendment
to the initial guidance: ASU 2018-19 (collectively, Topic 326). ASU 2016-13 amends the impairment model by requiring entities to
use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including
trade receivables. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted.
The Company is currently assessing the potential impact of ASU 2016-13 on its consolidated financial statements. ASU 2016-02 In February 2016, the FASB issued ASU 201602,
“Leases” (“ASU 201602”). This guidance, as amended by subsequent ASU’s on the topic, improves transparency
and comparability among companies by recognizing right of use (ROU) assets and lease liabilities on the balance sheet and by disclosing
key information about leasing arrangements. ASU No. 2016-02 is effective for public business entities for annual periods, including
interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. We adopted ASU No.
2016-02 in our fiscal year beginning January 1, 2019 and used the optional transition method provided by the FASB in ASU No. 2018-10,
“Codification Improvements to Topic 842, Leases” and ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements”,
with no restatement of comparative periods. The Company notes there was no impact on adoption as the leases entered into by the
Company were for less than 12 month terms. The new standard provides optional practical
expedients in transition. We will only elect the package of practical expedients where, under the new standard, prior conclusions
about lease identification, lease classification and initial direct costs do not need to be reassessed. The new standard also provides
practical expedients for ongoing accounting where we elected the practical expedients on adoption and did not record any ROU asset
with terms of less than 12 months. There were various updates recently issued,
most of which represented technical c |
