Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Document Information Line Items | ||
Entity Registrant Name | Innovative Food Holdings Inc | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 34,198,948 | |
Amendment Flag | false | |
Entity Central Index Key | 0000312257 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 3,158,853 | $ 4,759,817 |
Accounts receivable, net | 3,018,700 | 3,039,756 |
Inventory | 2,217,174 | 2,301,377 |
Other current assets | 197,583 | 144,301 |
Total current assets | 8,592,310 | 10,245,251 |
Property and equipment, net | 2,235,416 | 2,456,610 |
Investments | 395,025 | 339,525 |
Right of use assets, operating leases, net | 268,638 | 0 |
Right of use assets, finance leases, net | 122,619 | 0 |
Other amortizable intangible assets, net | 1,702,301 | 2,158,498 |
Goodwill and other unamortizable intangible assets | 2,183,065 | 2,183,065 |
Total assets | 15,499,374 | 17,382,949 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,043,215 | 3,689,868 |
Accrued interest | 18,378 | 16,402 |
Deferred revenue | 280,928 | 559,315 |
Notes payable - current portion | 901,728 | 928,857 |
Lease liability - operating leases, current | 197,014 | 0 |
Lease liability - finance leases, current | 20,605 | 0 |
Contingent liability - current portion | 519,108 | 472,876 |
Total current liabilities | 3,980,976 | 5,667,318 |
Lease liability - operating leases, non-current | 71,624 | 0 |
Lease liability - finance leases, non-current | 97,959 | 0 |
Contingent liability - long-term | 247,600 | 357,600 |
Note payable - long term portion | 464,047 | 1,196,245 |
Total liabilities | 4,862,206 | 7,221,163 |
Commitment and contingencies (see note 16) | ||
Stockholders' equity | ||
Common stock: $0.0001 par value; 500,000,000 shares authorized; 36,427,354 and 36,296,218 shares issued, and 33,839,774 and 33,708,638 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 3,640 | 3,627 |
Additional paid-in capital | 36,421,970 | 36,132,065 |
Treasury stock: 2,373,171 shares outstanding at June 30, 2019 and December 31, 2018 | (1,016,370) | (1,016,370) |
Accumulated deficit | (24,772,072) | (24,957,536) |
Total stockholders' equity | 10,637,168 | 10,161,786 |
Total liabilities and stockholders' equity | $ 15,499,374 | $ 17,382,949 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares outstanding | 33,839,774 | 33,708,638 |
Common stock, shares issued | 36,427,354 | 36,296,218 |
Treasury stock, shares | 2,373,171 | 2,373,171 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | $ 13,925,451 | $ 11,989,003 | $ 26,784,666 | $ 22,905,547 |
Cost of goods sold | 9,862,369 | 8,409,485 | 18,743,749 | 15,846,916 |
Gross margin | 4,063,082 | 3,579,518 | 8,040,917 | 7,058,631 |
Selling, general and administrative expenses | 4,017,829 | 3,070,979 | 7,806,826 | 6,074,796 |
Total operating expenses | 4,017,829 | 3,070,979 | 7,806,826 | 6,074,796 |
Operating income | 45,253 | 508,539 | 234,091 | 983,835 |
Other (income) expense: | ||||
Gain on settlement of contingent liability | 0 | (11,000) | 0 | (11,000) |
Interest expense, net | 23,149 | 34,296 | 48,627 | 61,044 |
Total other expense | 23,149 | 23,296 | 48,627 | 50,044 |
Net income before taxes | 22,104 | 485,243 | 185,464 | 933,791 |
Income tax expense | 0 | 155,000 | 0 | 155,000 |
Net income | $ 22,104 | $ 330,243 | $ 185,464 | $ 778,791 |
Net income per share - basic (in Dollars per share) | $ 0.001 | $ 0.010 | $ 0.005 | $ 0.023 |
Net income per share - diluted (in Dollars per share) | $ 0.001 | $ 0.010 | $ 0.005 | $ 0.023 |
Weighted average shares outstanding - basic (in Shares) | 33,947,817 | 34,007,519 | 34,001,294 | 33,966,497 |
Weighted average shares outstanding - diluted (in Shares) | 33,947,817 | 34,007,519 | 34,001,294 | 33,966,497 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||
Net income | $ 22,104 | $ 330,243 | $ 185,464 | $ 778,791 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 631,026 | 500,027 | |||
Amortization of right-of-use asset | 45,963 | 88,644 | 0 | ||
Stock based compensation | 196,252 | 23,408 | |||
Gain on settlement of contingent liability | 0 | (11,000) | 0 | (11,000) | |
Provision for (recovery of) doubtful accounts | (2,779) | 0 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | (6,665) | (428,976) | |||
Inventory and other current assets, net | 30,921 | (526,246) | |||
Accounts payable and accrued liabilities | (1,551,011) | 22,865 | |||
Deferred revenue | (278,387) | 25,565 | |||
Contingent liabilities | (63,768) | 0 | |||
Operating lease liability | (88,644) | 0 | |||
Net cash (used in) provided by operating activities | (858,947) | 384,434 | |||
Cash flows from investing activities: | |||||
Cash related to the igourmet asset acquisition | 0 | (2,409,437) | |||
Cash paid for website development | (23,500) | 0 | |||
Acquisition of property and equipment | (85,829) | (99,804) | |||
Investment in food related company | (25,000) | (50,000) | |||
Net cash used in investing activities | (134,329) | (2,559,241) | |||
Purchase of stock options from officers, directors, and employees | 0 | (167,000) | |||
Cash received from exercise of warrants | 0 | 35,000 | |||
Cash paid in settlement of contingent liability - Oasis acquisition | 0 | (189,000) | |||
Borrowings on term loan | 0 | 1,500,000 | |||
Purchase of treasury stock | 0 | (24,057) | |||
Principal payments on debt | (594,877) | (545,674) | |||
Principal payments capital leases | (12,811) | (3,993) | |||
Net cash (used in) provided by financing activities | (607,688) | 605,276 | |||
Decrease in cash and cash equivalents | (1,600,964) | (1,569,531) | |||
Cash and cash equivalents at beginning of period | 4,759,817 | 5,133,435 | $ 5,133,435 | ||
Cash and cash equivalents at end of period | $ 3,158,853 | $ 3,563,904 | 3,158,853 | 3,563,904 | $ 4,759,817 |
Cash paid during the period for: | |||||
Interest | 49,337 | 65,114 | |||
Taxes | 0 | 155,000 | |||
Issuance of 131,136 shares of common stock previously accrued | 93,666 | 0 | |||
Right to use assets and liabilities - operating, upon adoption of ASU 2016-02 | 388,581 | 0 | |||
Return of equipment and reduction in amount due under equipment financing loan | 33,075 | 0 | |||
Increase in right of use assets and liabilities | 18,701 | 0 | |||
Investment in food related company | $ 30,500 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Parentheticals) | 6 Months Ended |
Jun. 30, 2019shares | |
Issuance of shares of common stock | 131,136 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member]Share-based Payment Arrangement, Option [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Share-based Payment Arrangement, Option [Member] | Total |
Balance at Dec. 31, 2017 | $ 3,605 | $ 36,196,682 | $ (992,313) | $ (26,653,435) | $ 8,554,539 | ||
Balance (in Shares) at Dec. 31, 2017 | 36,080,519 | 2,276,703 | |||||
Common stock issued for the exercise of options | $ 10 | 34,990 | $ 35,000 | ||||
Common stock issued for the exercise of options (in Shares) | 100,000 | 100,000 | |||||
Purchase of stock options from employees, officers, and directors | $ 12 | (167,012) | $ (167,000) | ||||
Purchase of stock options from employees, officers, and directors (in Shares) | 115,699 | ||||||
Purchase of treasury stock from employee | $ (1,940) | (1,940) | |||||
Purchase of treasury stock from employee (in Shares) | 2,000 | ||||||
Fair value of vested stock and stock options issued to management | $ 8,787 | 14,621 | $ 8,787 | 14,621 | |||
Cost of treasury stock acquired during the period | $ (22,117) | (22,117) | |||||
Cost of treasury stock acquired during the period (in Shares) | 27,800 | ||||||
Income (Loss) | 778,791 | 778,791 | |||||
Balance at Jun. 30, 2018 | $ 3,627 | 36,088,068 | $ (1,016,370) | (25,874,644) | 9,200,681 | ||
Balance (in Shares) at Jun. 30, 2018 | 36,296,218 | 2,306,503 | |||||
Balance at Dec. 31, 2017 | $ 3,605 | 36,196,682 | $ (992,313) | (26,653,435) | 8,554,539 | ||
Balance (in Shares) at Dec. 31, 2017 | 36,080,519 | 2,276,703 | |||||
Balance at Dec. 31, 2018 | $ 3,627 | 36,132,065 | $ (1,016,370) | (24,957,536) | 10,161,786 | ||
Balance (in Shares) at Dec. 31, 2018 | 36,296,218 | 2,373,171 | |||||
Balance at Mar. 31, 2018 | $ 3,627 | 36,073,447 | $ (992,313) | (26,204,887) | 8,879,874 | ||
Balance (in Shares) at Mar. 31, 2018 | 36,296,218 | 2,276,703 | |||||
Purchase of treasury stock from employee | $ (1,940) | (1,940) | |||||
Purchase of treasury stock from employee (in Shares) | 2,000 | ||||||
Fair value of vested stock and stock options issued to management | 14,621 | 14,621 | |||||
Cost of treasury stock acquired during the period | $ (22,117) | (22,117) | |||||
Cost of treasury stock acquired during the period (in Shares) | 27,800 | ||||||
Income (Loss) | 330,243 | 330,243 | |||||
Balance at Jun. 30, 2018 | $ 3,627 | 36,088,068 | $ (1,016,370) | (25,874,644) | 9,200,681 | ||
Balance (in Shares) at Jun. 30, 2018 | 36,296,218 | 2,306,503 | |||||
Balance at Dec. 31, 2018 | $ 3,627 | 36,132,065 | $ (1,016,370) | (24,957,536) | 10,161,786 | ||
Balance (in Shares) at Dec. 31, 2018 | 36,296,218 | 2,373,171 | |||||
Issuance of shares to employees, previously accrued | $ 13 | 93,653 | $ 93,666 | ||||
Issuance of shares to employees, previously accrued (in Shares) | 131,136 | 131,136 | |||||
Common stock issued for the exercise of options (in Shares) | 0 | ||||||
Fair value of vested stock and stock options issued to management | 196,252 | $ 196,252 | |||||
Income (Loss) | 185,464 | 185,464 | |||||
Balance at Jun. 30, 2019 | $ 3,640 | 36,421,970 | $ (1,016,370) | (24,772,072) | 10,637,168 | ||
Balance (in Shares) at Jun. 30, 2019 | 36,427,354 | 2,373,171 | |||||
Balance at Mar. 31, 2019 | $ 3,640 | 36,325,862 | $ (1,016,370) | (24,610,685) | 10,702,447 | ||
Balance (in Shares) at Mar. 31, 2019 | 36,427,354 | 2,373,171 | |||||
Fair value of vested stock and stock options issued to management | 96,108 | 96,108 | |||||
Income (Loss) | 22,104 | 22,104 | |||||
Balance at Jun. 30, 2019 | $ 3,640 | $ 36,421,970 | $ (1,016,370) | $ (24,772,072) | $ 10,637,168 | ||
Balance (in Shares) at Jun. 30, 2019 | 36,427,354 | 2,373,171 |
1. BASIS OF PRESENTATION
1. BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of Innovative Food Holdings, Inc., and its wholly owned subsidiaries, some of which are non-operating, Artisan (“Artisan”), Food Innovations (“FII”), Food New Media Group, Inc. (“FNM”), Organic Food Brokers (“OFB”), Gourmet Food Service Group, Inc. (“GFG”), Gourmet Foodservice Warehouse, Inc. (“GFW”), Gourmeting, Inc. (“Gourmeting”), The Haley Group, Inc. (“Haley”), Oasis Sales Corp. (“Oasis”), 4 The Gourmet, Inc. (d/b/a For The Gourmet, Inc.), (“Gourmet”); Innovative Gourmet, LLC (“Innovative Gourmet”); Food Funding, LLC (“Food Funding”), M Innovations, LLC (“M Innovations”) and collectively with IVFH and its other subsidiaries, the “Company” or “IVFH”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. All material intercompany transactions have been eliminated upon consolidation of these entities. The accompanying unaudited interim condensed consolidated financial statements have been prepared by the Company, in accordance with generally accepted accounting principles pursuant to Regulation S-X of the Securities and Exchange Commission and with the instructions to Form 10-Q. Certain information and footnote disclosures normally included in audited consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Accordingly, these interim financial statements should be read in conjunction with the Company’s audited financial statements and related notes as contained in Form 10-K for the year ended December 31, 2018. In the opinion of management, the interim unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, necessary for fair presentation of the interim periods presented. The results of the operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results of operations to be expected for the full year. |
2. NATURE OF ACTIVITIES AND SIG
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Business Activity Our business is currently conducted by our wholly-owned subsidiaries, Artisan, FII, Food New Media Group, Inc. (“FNM”), OFB, Gourmet Foodservice Group, Inc. (“GFG”), Gourmet Foodservice Warehouse, Inc. (“GFW”), Gourmeting Inc. (“Gourmeting”), The Haley Group, Inc. (“Haley”), Oasis, 4 The Gourmet, Inc. (d/b/a For The Gourmet, Inc.), (“Gourmet”), Innovative Gourmet (sometimes referred to herein as “Igourmet.com” or “Igourmet”), M Innovations, (sometimes referred to herein as “Mouth” or ” Mouth.com”) and Food Funding (collectively, IVFH and its subsidiaries, the “Company” or “IVFH”). Overall, our business activities are focused around the creation and growth of a platform which provides distribution or the enabling of distribution of high quality, unique specialty food and food related products ranging from specialty foodservice products to Consumer-Packaged Goods (“CPG”) products through a variety of sales channels ranging from national partnership based and regionally based foodservice related sales channels to e-commerce sales channels offering products both direct to consumers (“D2C”) and direct to business (“B2B”). In our business model, we receive orders from our customers and then work closely with our suppliers and our warehouse facilities to have the orders fulfilled. In order to maintain freshness and quality, we carefully select our suppliers based upon, among other factors, their quality, uniqueness, reliability and access to overnight courier services. FII, though its relationship with the producers, growers, and makers of thousands of unique specialty foodservice products and through its relationship with US Foods, Inc. (“U.S. Foods” or “USF”), has been in the business of providing premium restaurants, within 24 – 72 hours, with the freshest origin-specific perishable, and healthcare products shipped directly from our network of vendors and from our warehouses. Our customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals and catering houses. Gourmet has been in the business of providing specialty food via e-commerce through its own website at www.forthegourmet.com and through other ecommerce channels, with unique specialty gourmet food products shipped directly from our network of vendors and from our warehouses within 24 – 72 hours. GFG is focused on expanding the Company’s program offerings to additional customers. Artisan is a supplier of over 1,500 unique specialty foodservice products to over 500 customers such as chefs, restaurants, etc. in the Greater Chicago area and serves as a national fulfillment center for certain of the Company’s other subsidiaries. Haley is a dedicated foodservice consulting and advisory firm that works closely with companies to access private label and manufacturers’ private label food service opportunities with the intent of helping them launch and commercialize new products in the broadline foodservice industry and assists in the enabling of the distribution of products via national broadline food distributors. OFB and Oasis function as outsourced national sales and brand management teams for emerging organic and specialty food CPG companies of a variety of sizes and business stages, and provides emerging and unique CPG specialty food brands with distribution and shelf placement access in all of the major metro markets in the food retail industry. Igourmet has been in the business of providing DTC specialty food via e-commerce through its own website at www.igourmet.com and through other channels such as www.amazon.com, www.jet.com, and www.walmart.com. In addition, Igourmet.com offers a line of B2B specialty foodservice items. Products are primarily shipped directly from Igourmet.com’s 67,000 square feet warehouse in Pennsylvania via Igourmet.com owned trucks and via third party carrier directly to thousands of customers nationwide. Mouth.com (www.mouth.com) is an online retailer of specialty foods, monthly subscription boxes and curated gift boxes to thousands of consumers and corporate customers across the United States. Mouth sources high quality specialty foods crafted in the US by independent and small batch makers, and expertly curates them into standout food gifts for both consumers and corporate customers. Mouth also has launched a private label brand, including several award-winning products. Use of Estimates The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate these estimates, including those related to revenue recognition and concentration of credit risk. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Accounts subject to estimate and judgements are accounts receivable reserves, income taxes, intangible assets, contingent liabilities, operating right of use assets and liabilities, and equity based instruments. Actual results may differ from these estimates under different assumptions or conditions. We believe our estimates have not been materially inaccurate in past years, and our assumptions are not likely to change in the foreseeable future. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Innovative Food Holdings, Inc., and its wholly owned operating subsidiaries, Artisan, FII, FNM, OFB, GFG, Gourmet Foodservice Warehouse, Inc., Gourmeting, Haley, Oasis, Innovative Gourmet, Food Funding, M Innovations and Gourmet. All material intercompany transactions have been eliminated upon consolidation of these entities. Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash in investments with credit quality institutions. At times, such investments may be in excess of applicable government mandated insurance limit. At June 30, 2019 and December 31, 2018, trade receivables from the Company’s largest customer amounted to 40% and 44%, respectively, of total trade receivables. Reclassifications Certain reclassifications have been made to conform prior period data to the current presentation. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included on the face of the condensed consolidated balance sheet. Finance lease ROU assets are presented within other assets, and finance lease liabilities are presented within accrued liabilities. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also excludes lease incentives. The Company’s 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 lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and it recognizes such lease payments on a straight-line basis over the lease term. Revenue Recognition The Company recognizes revenue upon product delivery. All of our products are shipped either same day or overnight or through longer shipping terms to the customer and the customer takes title to product and assumes risk and ownership of the product when it is delivered. Shipping charges to customers and sales taxes collectible from customers, if any, are included in revenues. For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 606. A five-step analysis a must be met as outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied.. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. Adoption of ASC 606 had no material effect on the Company’s financial statements. Deferred Revenue Certain customer arrangements in the Company's business such as gift cards and “Of the Month Club” purchases result in deferred revenues when cash payments are received in advance of performance. Gift cards are issued by the Company do not have expiration dates. The Company records a liability for unredeemed gift cards and advance payments for monthly club memberships, as cash is received, and the liability is reduced when the card is redeemed or product delivered. The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance as of December 31, 2018 $ 559,315 Cash payments received 93,580 Net sales recognized (375,500 ) Balance as of March 31, 2019 $ 277,395 Cash payments received 225,064 Net sales recognized (221,531 ) Balance as of June 30, 2019 $ 280,928 Disaggregation of Revenue The following table represents a disaggregation of revenue by from sales for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 Specialty food service $ 11,670,386 $ 10,012,631 Ecommerce 1,784,328 1,384,362 National Brand Management 470,737 592,010 Total $ 13,925,451 $ 11,989,003 Six Months Ended June 30, 2019 2018 Specialty food service $ 21,967,994 $ 19,258,107 Ecommerce 3,879,993 2,435,106 National Brand Management 936,679 1,212,333 Total $ 26,784,666 $ 22,905,547 Cost of goods sold We have included in cost of goods sold all costs which are directly related to the generation of revenue. These costs include primarily the cost of food and raw materials, packing and handling, shipping, and delivery costs. Basic and Diluted Earnings Per Share Basic net earnings per share is based on the weighted average number of shares outstanding during the period, while fully-diluted net earnings per share is based on the weighted average number of shares of common stock and potentially dilutive securities assumed to be outstanding during the period using the treasury stock method. Potentially dilutive securities consist of options and warrants to purchase common stock, and convertible debt. Basic and diluted net loss per share is computed based on the weighted average number of shares of common stock outstanding during the period. The Company uses the treasury stock method to calculate the impact of outstanding stock options and warrants. Stock options and warrants for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on earnings per common share and, accordingly, are excluded from the calculation. Dilutive shares at June 30 , 2019: Convertible notes and interest At June 30, 2019 there were no convertible notes outstanding. Warrants At June 30, 2019 there are no warrants outstanding. Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at June 30, 2019: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.62 360,000 4.51 $ 0.75 50,000 2.51 $ 0.85 540,000 4.51 $ 0.95 50,000 2.51 $ 1.10 75,000 1.87 $ 1.20 900,000 4.51 $ 1.38 100,000 0.42 $ 1.50 125,000 2.51 $ 1.90 100,000 0.17 $ 2.00 125,000 2.51 $ 2.50 125,000 2.51 $ 3.00 125,000 2.51 2,675,000 3.67 Restricted Stock Awards At June 30, 2019 there are an additional 300,000 unvested restricted stock awards remaining from grants in a prior year. Those 300,000 restricted stock awards will vest as follows: 125,000 restricted stock awards will vest contingent upon the attainment of a stock price of $2.00 per share for 20 straight trading days, and an additional 175,000 restricted stock awards will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days. Stock-based compensation During the six months ended 2019, the Company incurred obligations to issue the following shares of common stock pursuant to employment agreements: an aggregate total of 145,450 shares of common stock to its Chief Executive Officer and to its Director of Strategic Acquisitions; an aggregate total 48,516 shares to board members; and 27,994 shares to an employee. Dilutive shares at June 30, 2018: There were no convertible notes or warrants outstanding on June 30, 2018. Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 1.10 75,000 2.87 $ 1.31 150,000 0.51 $ 1.38 100,000 1.42 $ 1.43 50,000 0.50 $ 1.46 100,000 0.01 $ 1.90 175,000 0.98 650,000 0.97 Significant Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, current U.S. GAAP requires the performance of procedures to determine the fair value at the impairment testing date of assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the amendments under this ASU require the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized 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 that reporting unit. The ASU becomes effective for the Company on January 1, 2020. The amendments in this ASU should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months and disclosing key information about leasing transactions. Leases are classified as either operating or financing, with such classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) - Targeted Improvements, which provided an optional transition method to apply the new lease requirements through a cumulative-effect adjustment in the period of adoption. We adopted ASU 2016-02 in the first quarter of 2019 using the optional transition method and elected certain practical expedients permitted under the transition guidance, which, among other things, allowed us to not reassess prior conclusions related to contracts containing leases or lease classification. The adoption primarily affected our condensed consolidated balance sheet through the recognition of $338,581 of operating right-of-use assets and $338,581 of operating lease liabilities as of January 1, 2019. The adoption did not have a significant impact on our results of operations or cash flows. See Note 7. "Leases" to our condensed consolidated financial statements for further discussion of the effects of the adoption of ASU 2016-02 and the associated disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU relates to the accounting for non-employee share-based payments. The amendment in this update expands the scope of Topic 718 to include all share-based payment transactions in which a grantor acquired goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The ASU excludes share-based payment awards that relate to: (1) financing to the issuer; or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts from Customers. The share-based payments are to be measured at grant-date fair value of the equity instruments that the entity is obligated to issue when the goods or service has been delivered or rendered and all other conditions necessary to earn the right to benefit from the equity instruments have been satisfied. This standard will be effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We adopted the provisions of this ASU on January 1, 2019. The adoption had no impact on our results of operations, cash flows, or financial condition. Management does not believe that any other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the accompanying condensed consolidated financial statements. |
3. ACQUISITION
3. ACQUISITION | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. ACQUISITIONS Mouth Foods, Inc. Effective July 6, 2018, M Innovations acquired certain assets of Mouth Foods, Inc. (“Mouth”) from MFI (assignment for the benefit of creditors), LLC (“MFI”), the assignee of Mouth’s assets in connection with a Delaware assignment proceeding, pursuant to the terms of an Asset Purchase Agreement (“MFI APA”). The MFI APA was accounted for as an acquisition of an ongoing business in accordance with ASC Topic 805 - Business Combinations (“ASC 805”), where the Company was treated as the acquirer and the acquired assets and assumed liabilities were recorded by the Company at their preliminary estimated fair values. Mouth, was a privately held New York company operating out of Brooklyn, was an expert curator and online retailer of high quality specialty foods from small-batch makers in the US. The consideration for and in connection with the acquisition consisted of (i) closing related cash payments of $208,355; (ii) additional revenue-based contingent liabilities valued by management at $100,000 related to certain future sales of purchased assets payable under the following terms: payment of 5% of certain revenues, with no payments on the first $500,000 of revenues and no payments on revenues after June 30, 2020; (iii) additional revenue based contingent liabilities of up to $185,000 associated with the purchase of certain debt of the seller; and (iv) additional contingent liability consideration valued by management at approximately $20,000. The acquisition date estimated fair value of the consideration transferred totaled $513,355. During the year ended December 31, 2018, the Company changed the original allocation of the purchase price among the assets acquired. The reallocated purchase price consisted of the following: Cash $ 208,355 Contingent liability – payable to debt holder 185,000 Contingent liabilities – payable to sellers 100,000 Additional Contingent Liabilities 20,000 Total purchase price $ 513,355 Tangible assets acquired $ 57,000 Intangible assets acquired 419,926 Goodwill acquired 36,429 Total purchase price $ 513,355 The above estimated fair value of the intangible assets is based on a preliminary purchase price allocation prepared by management. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the preliminary purchase price allocation period, we record adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in our operating results in the period in which the adjustments were determined. iGourmet, LLC The iGourmet Asset Purchase Agreement effective January 23, 2018 (the “iGourmet APA”) was accounted for as an acquisition of an ongoing business in accordance with ASC Topic 805 - Business Combinations (“ASC 805”), where the Company was treated as the acquirer and the acquired assets and certain liabilities not purchased or assumed by Innovative Gourmet, which under certain circumstances, Innovative Gourmet may determine to pay, were recorded by the Company at their preliminary estimated fair values. The consideration for and in connection with the iGourmet APA consisted of: (i) $1,500,000, which satisfied or reduced secured, priority and administrative debt of sellers; (ii) in connection with and prior to the acquisition, our wholly-owned subsidiary, Food Funding, funded advances of $325,500 to sellers on a secured basis, pursuant to certain loan documents and as bridge loans, which loans were reduced by the proceeds of the iGourmet APA; (iii) the purchase for $200,000 of certain debt owed by sellers, to be paid out of, if available, Innovative Gourmet’s cash flow; (iv) potential contingent liability allocation for a percentage of sellers’ approximately $2,300,000 of certain debt, not purchased or assumed by Innovative Gourmet, which under certain circumstances, Innovative Gourmet may determine to pay; and (v) additional purchase price consideration of (a) up to a maximum of $1,500,000, if EBITDA of Innovative Gourmet reaches $800,000 thousand in 2018, (b) up to a maximum of $1,750,000, if EBITDA of Innovative Gourmet in 2019 exceeds its EBITDA in 2018 by at least 20% and if its EBITDA reaches $5,000,000; and (c) up to a maximum of $2,125,000, if EBITDA of Innovative Gourmet in 2020 exceeds its EBITDA in 2019 by at least 20% and if its EBITDA reaches $8,000,000. The additional purchase price consolidation milestone for 2018 was not met. The EBITDA based earnout shall be paid 37.5% in cash, 25% in Innovative Food Holdings shares valued at the time of the closing of this transaction and 37.5%, at Innovative Gourmet’s option, in Innovative Food Holdings shares valued at the time of the payment of the earnout or in cash. In connection with the iGourmet APA, our wholly-owned subsidiary, Food Funding, purchased seller’s senior secured note at a price of approximately $1,187,000, pursuant to the terms of a Loan Sale Agreement with UPS Capital Business Credit. That note was reduced by the proceeds of the iGourmet APA as disclosed in (i) above. The acquisition date estimated fair value of the consideration transferred totaled $4,151,243. During the year ended December 31, 2018, the Company made the following purchase price adjustments: (i) accrued an additional $286,239 for accounts payable prior to acquisition; (ii) decreased contingent liabilities by the amount of $392,900 for earnout payments not made; (iii) decreased accounts receivable in the amount of $108,893 for amounts not collected; and (4) increased deferred revenue in the amount of $231,169 for shipments made. These adjustments increased the value of the acquisition to $4,275,751. At December 31, 2018, the value of the acquisition consisted of the following: Initial purchase price $ 1,500,000 Cash payable in connection with transaction 1,863,443 Accounts payable 286,239 Deferred revenue 231,169 Contingent liabilities 394,900 Total purchase price $ 4,275,751 Tangible assets acquired $ 842,458 Intangible assets acquired 2,970,600 Goodwill acquired 462,693 Total purchase price $ 4,275,751 The above estimated fair value of the intangible assets is based on a third party valuation expert and also includes additional analysis by management based on a subsequent analysis of the transaction and adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Going forward, adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period will be made in our operating results in the period in which the adjustments are determined. Pro forma results The following table sets forth the unaudited pro forma results of the Company as if the iGourmet APA was effective on the first day of the June 30, 2018 six month period presented. These combined results are not necessarily indicative of the results that may have been achieved had the companies always been combined. Six months ended June 3 0 , 2018 (unaudited) Revenues $ 23,283,197 Net Income $ 667,471 Basic net income per share $ 0.020 Diluted net income per share $ 0.020 Weighted average shares – basic 33,966,497 Weighted average shares – diluted 33,966,497 |
4. ACCOUNTS RECEIVABLE
4. ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNTS RECEIVABLE At June 30, 2019 and December 31, 2018, accounts receivable consists of: June 30 , 2019 December 31, 2018 Accounts receivable from customers $ 3,171,097 $ 3,194,932 Allowance for doubtful accounts (152,397 ) (155,176 ) Accounts receivable, net $ 3,018,700 $ 3,039,756 |
5. INVENTORY
5. INVENTORY | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 5. INVENTORY Inventory consists primarily of specialty food products. At June 30, 2019 and December 31, 2018, inventory consisted of the following: June 30 , 2019 December 31, 2018 Finished Goods Inventory $ 2,217,174 $ 2,301,377 |
6. PROPERTY AND EQUIPMENT
6. PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT Acquisition of Building The Company owns a building and property located at 28411 Race Track Road, Bonita Springs, Florida 34135. The property consists of approximately 1.1 acres of land and approximately 10,000 square feet of combined office and warehouse space, and was purchased as part of a bank short sale. The Company moved its operations to these premises on July 15, 2013. The purchase price of the property was $792,758. On May 14, 2015, the Company purchased a building and property located at 2528 S. 27th Avenue, Broadview, Illinois 60155. The property consists of approximately 1.33 acres of land and approximately 28,711 square feet of combined office and warehouse space. The purchase price of $914,350 was initially financed primarily by a draw-down of $900,000 on the Company’s credit facility with Fifth Third Bank. On May 29, 2015, a permanent financing facility was provided by Fifth Third Bank in the form of a loan in the amount of $980,000. $900,000 of this amount was used to pay the balance of the credit facility; the additional $80,000 was used for refrigeration and other improvements at the property. The interest on the loan is at the LIBOR rate plus 3.0%. The building is used for office and warehouse space primarily for the Company’s Artisan subsidiary. We have also recently completed an additional property improvement and upgrade buildout at the Artisan building which include a fully functional commercial test kitchen and training center and conference room. The test kitchen and training room will be used by Artisan and other subsidiaries of the Company for the purposes of new product testing and development and approval, Quality Assurance and Quality Control as well as sales presentations and customer demonstrations. In addition, we recently added a packaging room to the Artisan building, which is built to FDA, FSMA and SQF food safety standards and purchased new, technologically advanced semi-automated fillers for the packaging room. The packaging room addition will allow for expansion of private label product lines as well as packing of organic, non GMO, diet specific and other specialty foods. The test kitchen, packaging room and additional improvements were financed by a loan from Fifth Third Bank. Depreciation on the building and the related improvements, furniture, fixtures, and equipment began when the Company occupied the facility in October, 2015. A summary of property and equipment at June 30, 2019 and December 31, 2018, was as follows: June 30 , 2019 December 31, 2018 Land $ 385,523 $ 385,523 Building 1,326,165 1,326,165 Computer and Office Equipment 546,828 523,853 Warehouse Equipment 301,106 302,622 Furniture, Fixtures 891,778 889,073 Vehicles 101,518 220,812 Total before accumulated depreciation 3,552,918 3,648,048 Less: accumulated depreciation (1,317,502 ) (1,191,438 ) Total $ 2,235,416 $ 2,456,610 Depreciation and amortization expense for property and equipment amounted to $75,254 and $45,457 for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization expense for property and equipment amounted to $151,329 and $94,724 for the six months ended June 30, 2019 and 2018, respectively. |
7.RIGHT TO USE ASSETS AND LEASE
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 7. RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES The Company has operating leases for offices, warehouses, vehicles, and office equipment. The Company’s leases have remaining lease terms of 1 year to 3 years, some of which include options to extend. The Company’s lease expense for the three and six months ended June 30, 2019 was entirely comprised of operating leases and amounted to $50,396 and $97,267, respectively. The Company’s ROU asset amortization for the three and six months ended June 30, 2019 and $45,963 and $88,644, respectively. The difference between the lease expense and the associated ROU asset amortization consists of interest. Right to use assets – operating leases are summarized below: June 30 , 2019 Warehouse $ 92,400 Warehouse equipment 24,172 Office equipment 42,712 Vehicles 109,354 Right to use assets, net $ 268,638 Operating lease liabilities are summarized below: June 30, 2019 Warehouse $ 92,400 Warehouse equipment 24,172 Office equipment 42,712 Vehicles 109,354 Lease liability $ 268,638 Less: current portion (197,014 ) Lease liability, non-current $ 71,624 Maturity analysis under these lease agreements are as follows: Twelve months ended June 30, 2020 $ 197,014 Twelve months ended June 30, 2021 57,074 Twelve months ended June 30, 2022 24,589 Twelve months ended June 30, 2023 3,894 Twelve months ended June 30, 2024 - Total $ 282,571 Less: Present value discount (13,933 ) Lease liability $ 268,638 |
8. INVESTMENTS
8. INVESTMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | 8. INVESTMENTS The Company has made investments in certain early stage food related companies which it expects can benefit from synergies with the Company’s various operating businesses. At June 30, 2019 the Company has investments in six food related companies in the aggregate amount of $395,025. The Company does not have significant influence over the operations of these companies. During the three months ended June 30, 2019, the Company invested $25,000 in food related companies. The Company’s investments may take the form of debt, equity, or equity in the future including convertible notes and other instruments which provide for future equity under various scenarios including subsequent financings or initial public offerings. The Company has evaluated the guidance in Accounting Standards Codification (“ASC”) No. 325-20 Investments – Other, in determining to account for the investment using the cost method since the equity securities are not marketable and do not give the Company significant influence. Also during the three months and six months ended June 30, 2019, the Company converted accounts payable in the amount of $15,000 and $30,500, respectively, into an equity investment in a food related company. |
9. INTANGIBLE ASSETS
9. INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 9. INTANGIBLE ASSETS The Company acquired certain intangible assets pursuant to the acquisitions through Artisan, Oasis (see note 3), Innovative Gourmet (see note 3), OFB, Haley, and M Innovations. The following is the net book value of these assets: June 30 , 2019 Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (398,229 ) $ 107,671 Customer Relationships - amortizable 3,068,043 (2,130,864 ) 937,179 Trade Name 1,532,822 - 1,532,822 Internally Developed Technology - amortizable 875,643 (241,692 ) 633,951 Goodwill 650,243 - 650,243 Website - amortizable 23,500 - 23,500 Total $ 6,656,151 $ (2,770,785 ) $ 3,885,366 December 31, 2018 Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (362,913 ) $ 142,987 Customer Relationships - amortizable 3,068,043 (1,783,598 ) 1,284,445 Trade Name 1,532,822 - 1,532,822 Internally Developed Technology - amortizable 875,643 (144,577 ) 731,066 Goodwill 650,243 - 650,243 Total $ 6,632,651 $ (2,291,088 ) $ 4,341,563 Total amortization expense for the three months ended June 30, 2019 and 2018 was $250,567 and $216,157, respectively; total amortization expense for the six months ended June 30, 2019 and 2018 was $479,697 and $405,303, respectively. The trade names are not considered finite-lived assets, and are not being amortized. The non-compete agreement is being amortized over a period of 48 months. The customer relationships acquired in these transactions are being amortized over periods of 24 to 36 months. The internally developed technology is being amortized over 60 months. As detailed in ASC 350, the Company tests for goodwill impairment in the fourth quarter of each year and whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. As detailed in ASC 350-20-35-3A, in performing its testing for goodwill impairment, management has completed a qualitative analysis to determine whether it was more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. To complete this review, management followed the steps in ASC 350-20-35-3C to evaluate the fair value of goodwill and considered all known events and circumstances that might trigger an impairment of goodwill. The analysis completed in 2018 determined that there was no impairment to goodwill assets. |
10. ACCOUNTS PAYABLE AND ACCRUE
10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at June 30, 2019 and December 31, 2018 are as follows: June 30 , 2019 December 31, 2018 Trade payables and accrued liabilities $ 1,844,146 $ 3,425,178 Accrued payroll and commissions 199,069 264,690 Total $ 2,043,215 $ 3,689,868 |
11. ACCRUED INTEREST
11. ACCRUED INTEREST | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | 11. ACCRUED INTEREST At June 30, 2019, accrued interest on notes outstanding was $18,378. During the six months ended June 30, 2019, the Company paid cash for interest in the aggregate amount of $49,337. At December 31, 2018, accrued interest on a note outstanding was $16,402. During the twelve months ended December 31, 2018, the Company paid cash for interest in the aggregate amount of $122,232. |
12. REVOLVING CREDIT FACILITIES
12. REVOLVING CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Short-term Debt [Text Block] | 12. REVOLVING CREDIT FACILITIES June 30 , 2019 December 31, 2018 On March 23, 2018, the Company entered into a Master Loan & Security Agreement that provided for the advance of funds in connection with a $500,000 Draw Promissory Note. in order to finance certain equipment acquisitions (“Artisan Equipment Loan”); On December 21, 2018, the Company advanced $391,558 under the $500,000 Draw Promissory Note. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of 5.20%. As of December 31, 2018, there was $108,422 remaining to be drawn on the Artisan Equipment Loan. On March 27, 2019, an amendment was made to the Draw Promissory Note to extend the draw period to December 31, 2019. On March 27, 2019, a Promissory Note was made for the amounts advanced in the amount of $391,558 to convert to a Term Loan. (see note 13). $ - $ - Line of credit facility with Fifth Third Bank in the original amount of $1,000,000 with an interest rate of LIBOR plus 3.25%. In August 2015, the amount of the credit facility was increased to $1,500,000 and the due date was extended to August 1, 2016. In August 2016, this credit facility was extended to August 1, 2017. On August 1, 2017 this credit facility was increased to $2,000,000 and the due date was extended to August 1, 2018. In August 2018, this credit facility was extended to August 1, 2019. Effective August 1, 2019, this credit facility was extended to August 1, 2021. $ - $ - Total $ - $ - |
13. NOTES PAYABLE AND NOTES PAY
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES June 30 , 2019 December 31, 2018 Term loan dated as of August 5, 2016 in the original amount of $1,200,000 payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of LIBOR plus 4.5%. Principal payments in the amount of $66,667 are due monthly along with accrued interest beginning September 5, 2016. The entire principal balance and all accrued interest was due and was paid on the maturity date of February 5, 2018. During the twelve months ended December 31, 2016, the Company transferred principal in the amount of $1,200,000 from the line of credit facility with Fifth Third Bank into this term loan. During the twelve months ended December 31, 2018, the Company made principal and interest payments on this loan in the amounts of $114,033 and $829, respectively. $ - $ - Secured mortgage note payable for the acquisition of land and building in Bonita Springs, Florida in the amount of $546,000. Principal payments of $4,550 plus interest at the rate of Libor plus 3% are due monthly. The balance of the principal amount was originally due February 28, 2018. On March 23, 2018 and effective February 26, 2018, this note was amended and renewed in the amount of $273,000, with monthly payments of principal and interest of $4,550 payable through the maturity date of February 28, 2023. During the three months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $13,650 and $2,992, respectively. During the six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $27,300 and $6,122, respectively. 204,750 232,050 Secured mortgage note payable for the acquisition of land and building in Broadview, Illinois in the amount of $980,000. Principal payments of $8,167 plus interest at the rate of LIBOR plus 2.75% are due monthly through April 2020, the remaining principal balance in the amount of $490,000 will be due May 29, 2020. During the three months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $24,500 and $7,991, respectively. During the six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $49,000 and $16,213, respectively. 579,833 628,833 Term loan dated March 28, 2018 in the original amount of $1,500,000 payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of LIBOR plus 4.25%. Principal payments in the amount of $83,333 are due monthly along with accrued interest beginning March 28, 2018. The entire principal balance and all accrued interest is due on the maturity date of August 28, 2019. During the three months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $249,999 and $5,792, respectively. During the six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $499,998 and $15,767, respectively. 166,668 666,670 Promissory note dated March 22, 2019 in the original amount of $391,558 (the “Artisan Equipment Loan”) payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of 5.20%. The entire principal balance and all accrued interest is due on the maturity date of March 21, 2024. Monthly payments in the amount of $7,425 including principal and interest commenced in April, 2019. During the three and six months ended June 30, 2019, equipment financed under the Artisan Equipment Loan in the amount of $33,075 was returned for credit. Also during the three and six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $11,506 and $5,114, respectively. 348,033 391,558 A note payable in the amount of $20,000. The Note was due in January 2006 and the Company is currently accruing interest on this note at 1.9%. During the three and six months ended June 30, 2019, the Company accrued interest in the amount of $93 and $186, respectively, on this note. 20,000 20,000 June 30 , 2019 December 31, 2018 Unsecured promissory note in the amount of $100,000 dated January 1, 2017 bearing interest at the rate of 2.91% per annum issued in connection with the Oasis acquisition. Payments in the amount of $4,297 consisting of principal and interest are to be made monthly beginning February 15, 2017 for twenty-four months until paid in full. During the three months ended June 30, 2019, the Company made principal and interest payments on this note in the amount of $0 and $0, respectively. During the six months ended June 30, 2019, the Company made principal and interest payments on this note in the amount of $4,291 and $2, respectively. - 4,291 This obligation was reclassified as a Lease Liability - Financing Lease in connection with the Company’s adoption of ASU 2016-02 on January 1, 2019; see note 14. - 5,661 Vehicle acquisition loan dated December 6, 2018 in the original amount of $51,088, payable in sixty monthly installments of $955 including interest at the rate of 4.61%. During the three months ended June 30, 2019, the Company made principal and interest payments in the amount of $2,295 and $571, respectively, on this loan. During the six months ended June 30, 2019, the Company made principal and interest payments in the amount of $3,837 and $938, respectively, on this loan. 46,491 50,328 This obligation was reclassified as a Lease Liability - Financing Lease in connection with the Company’s adoption of ASU 2016-02 on January 1, 2019; see note 14. - 125,711 Total $ 1,365,775 $ 2,125,102 Current portion $ 901,728 $ 928,857 Long-term maturities 464,047 1,196,245 Total $ 1,365,775 $ 2,125,102 Aggregate maturities of long-term notes payable as of June 30, 2019 are as follows: For the period ended June 30, 2020 $ 901,728 2021 132,757 2022 136,911 2023 127,634 2024 66,745 Thereafter - Total $ 1,365,775 |
14. LEASE LIABILITIES - FINANCI
14. LEASE LIABILITIES - FINANCING LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Lessee, Finance Leases [Text Block] | 14. LEASE LIABILITIES - FINANCING LEASES Financing lease obligation under a lease agreement for a forklift payable in thirty-six monthly installments of $579 including interest at the rate of 4.83%. During the three months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $2,264 and $35, respectively. During the six months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $3,939 and $89, respectively. 1,722 - Financing lease obligations under a lease agreement for a truck in the original amount of $128,587 payable in seventy monthly installments of $2,326 including interest at the rate of 8.33%. During the three months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $4,481 and $2,496, respectively. During the six months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $8,869 and $5,085 respectively. 116,842 - Total $ 118,564 $ - Current portion $ 20,605 $ - Long-term maturities 97,959 - Total $ 118,564 $ - Aggregate maturities of lease liabilities – financing leases as of June 30, 2019 are as follows: For the period ended June 30, 2020 $ 20,605 2021 20,517 2022 22,294 2023 24,224 2024 26,321 Thereafter 4,603 Total $ 118,564 |
15. RELATED PARTY TRANSACTIONS
15. RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 15. RELATED PARTY TRANSACTIONS For the six months ended June 30 , 2019: During the six months ended June 30, 2019 in connection with stock based compensation based upon the terms of employment agreements with its employees and compensation agreements with the Company’s independent board members, the Company charged to operations the aggregate total amount of $54,036 for the vesting of a total of 97,084 shares of common stock issuable to its Chief Executive Officer, its Director of Strategic Acquisitions and to its two independent board members. In January 2019, the Company awarded the following to each of its two independent directors: (i) a cash retainer in the amount of $45,000, which was paid in January 2019; and (ii) cash retainers in the amount of $30,000 per year, to be paid quarterly. In January 2019, the Company awarded the following stock options to each of its four directors: - (i) five-year options to purchase 90,000 shares of common stock at a price of $0.62 per share, vesting quarterly over a three year period; - (ii) five-year options to purchase 135,000 shares of common stock at a price of $0.85 per share, vesting quarterly over a three year period; - (iii) five-year options to purchase 225,000 shares of common stock at a price of $1.20 per share, vesting quarterly over a three year period The Company recognized non-cash compensation in the amount of $38,550 and $77,100 during the three and six months ended June 30 2019 in connection with these options. For the six months ended June 30, 2018: In December 2017, the Company’s Chief Executive Officer exercised 100,000 options at a price of $0.35 per share and an additional 100,000 options at a price of $0.57 per share. The date for payment of the exercise price of these options was extended to April 26, 2018. 55,192 shares of common stock were deemed issued on March 5, 2018, which number of shares represents a net amount after a cash payment of $45,000 which was a portion of the difference between the exercise price of the options and the market price of the stock on the date of purchase, and taxes. In December 2017, the Company’s former President exercised 100,000 options at a price of $0.35 per share and an additional 100,000 options at a price of $0.57 per share. The date for payment of the exercise price of these options was extended to April 26, 2018. 60,749 shares of common stock were deemed issued on March 5, 2018, which number of shares represents a net amount after a cash payment of $45,000 which was a portion of the difference between the exercise price of the options and the market price of the stock on the date of purchase, and taxes. In December 2017, a Board Member exercised 100,000 options at a price of $0.35 per share. The date for payment of the exercise price of these options was extended to April 26, 2018. In March 2018 the Company made a payment of $77,000 which is the difference between the exercise price of the options and the market price of the stock on the date of purchase. In May 2018, as part of a realignment towards focusing on certain specific growth initiatives and growth opportunities the Company amended the employment agreement with its President, and the President of the Company was named as the Director of Strategic Acquisitions, whose responsibilities include: (i) identifying and assisting in the acquisition and integration of strategic assets; (ii) identifying and executing on new growth opportunities; and (iii) identifying and executing growth initiatives for the Company. In order to allow for the Executive to devote his full time to his new responsibilities, the President of the Company resigned from his role as President of the Company and its subsidiaries. Pursuant to this agreement, the Executive’s salary was reduced by $15,000 per year, and an equity bonus of 46,000 shares of the Company’s common stock will be issued to the Executive. These shares will vest at a rate of one-sixth per month over a period of six months. |
16. COMMITMENTS AND CONTINGENT
16. COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 16. COMMITMENTS AND CONTINGENT LIABILITIES Contingent Liability Pursuant to the iGourmet Asset Purchase Acquisition, the Company recorded contingent liabilities in the original amount of $787,800. This amount relates to certain performance based payments over the twenty-four months following the acquisition date as well as to certain additional liabilities that the Company has evaluated and has recorded on a contingent basis. During the year ended December 31, 2018, the Company reduced this amount by $392,900 as the performance goals for the first year were not met. During the three months ended June 30, 2019, the Company paid the amount of $10,000 in connection with the additional liabilities; at June 30, 2019, the amount of $132,300 remains on the Company’s balance sheet as a current contingent liability, and $247,600 as a long term contingent liability. Pursuant to the Oasis acquisition, the Company had a contingent liability in the amount of $400,000 on connection with performance-based bonus obligations. During the year ended December 31, 2018, the company paid the amount of $189,000 related to these obligations, and recorded a gain in the amount of $11,000. At June 30, 2019, the Company has the amount of $200,000 on its balance sheet as a current contingent liability in connection with the second year performance based bonus payment. This amount was paid in the 3 rd Pursuant to the Mouth Foods LLC Asset Acquisition, the Company recorded contingent liabilities in the amount of $240,576. These amounts relate to the estimate of certain performance based payments following the acquisition date as well as to certain additional liabilities that the Company has evaluated and has recorded on a contingent basis. During the three and six months ended June 30, 2019, the Company paid the amount of $28,461 and $118,189 in connection with these liabilities. At June 30, 2019, $186,808 is classified as a current contingent liability. License Agreements In May 2019, the Company entered into a royalty-based license agreement, through December 31, 2022 with a lifestyle brand, which provides the exclusive right, with certain carve-outs and limitations, to sell and promote branded gift baskets for certain channels including: retail, warehouse club stores, certain of the Company’s current e-commerce channels, and other e-commerce channels such as amazon.com (the “May 2019 License Agreement”). Pursuant to the May 2019 License Agreement, the Company paid an initial royalty deposit in the amount of $50,000 towards the minimum royalty, which is classified as other current assets on the Company’s balance sheet at June 30, 2019. Future royalty amounts owed for minimum payments in connection with the May 2019 License Agreement will be deducted from this deposit. The royalty rate is 5% of net sales, and the Company is required, with certain exceptions and exclusions, to make minimum royalty payments of $100,000 through the end of 2020, $110,000 in 2021, and $125,000 in 2022, respectively. Litigation From time to time, the Company has become and may become involved in certain lawsuits and legal proceedings which arise in the ordinary course of business, or as the result of current or previous investments, or current or previous subsidiaries, or current or previous employees, or current or previous directors, or as a result of acquisitions and dispositions or other corporate activities. The Company intends to vigorously defend its positions. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our financial position or our business and the outcome of these matters cannot be ultimately predicted. |
17. EQUITY
17. EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 17. EQUITY Common Stock At June 30, 2019 and December 31, 2018, a total of 2,587,580 shares are deemed issued but not outstanding by the Company. These include 2,373,171 shares of treasury stock. Six months ended June 30, 2019: The Company issued a total of 131,136 shares of common stock to seven employees for previously accrued bonuses in the amount of $93,666. The Company accrued the amount of $119,151 in connection with the vesting of 221,960 shares of common stock issuable to board members and employees in connection with their employment agreements. Six months ended June 30, 2018: The Company issued 100,000 shares of common stock for cash of $35,000 pursuant to the exercise of options. In December 2017, the Company’s Chief Executive Officer exercised 100,000 options at a price of $0.35 per share and an additional 100,000 options at a price of $0.57 per share. The date for payment of the exercise price of these options was extended to April 26, 2018. 55,192 shares of common stock were deemed issued on March 5, 2018, which number of shares represents a net amount after a cash payment of $45,000 which was a portion of the difference between the exercise price of the options and the market price of the stock on the date of purchase, and taxes. In December 2017, the Company’s President exercised 100,000 options at a price of $0.35 per share and an additional 100,000 options at a price of $0.57 per share. The date for payment of the exercise price of these options was extended to April 26, 2018. 60,749 shares of common stock were deemed issued on March 5, 2018, which number of shares represents a net amount after a cash payment of $45,000 which was a portion of the difference between the exercise price of the options and the market price of the stock on the date of purchase, and taxes. The Company recognized the fair value of stock options vested to management and employees in the amount of $9,462. The Company also recognized the fair value of stock grants to management and employees in the amount of $13,946. The Company purchased 2,000 shares of common stock from an employee at a cost of $0.97 per share for a total of $1,940 and retired these shares to treasury. The Company made open market purchases of 27,800 shares of its common stock at an average cost of $0.79 per share for a total of $22,117 and retired these shares to treasury. Warrants There were no warrants outstanding at June 30, 2019 or December 31, 2018. Options The following table summarizes the options outstanding at June 30, 2019 and the related prices for the options to purchase shares of the Company’s common stock issued by the Company: Weighted Weighted Weighted average average average exercise exercise Range of Number of Remaining price of Number of price of exercise options contractual outstanding options exercisable Prices Outstanding life (years) Options Exercisable Options $ 0.62 360,000 4.51 $ 0.62 30,000 $ 0.62 $ 0.75 50,000 2.51 $ 0.75 - $ 0.75 $ 0.85 540,000 4.51 $ 0.85 45,000 $ 0.85 $ 0.95 50,000 2.51 $ 0.95 - $ 0.95 $ 1.10 75,000 1.87 $ 1.10 75,000 $ 1.10 $ 1.20 900,000 4.51 $ 1.20 75,000 $ 1.20 $ 1.38 100,000 0.42 $ 1.38 100,000 $ 1.38 $ 1.50 125,000 2.51 $ 1.50 - $ 1.50 $ 1.90 100,000 0.42 $ 1.90 100,000 $ 1.90 $ 2.00 125,000 2.51 $ 2.00 - $ 2.00 $ 2.50 125,000 2.51 $ 2.50 - $ 2.50 $ 3.00 125,000 2.51 $ 3.00 - $ 3.00 2,675,000 3.67 $ 1.26 425,000 $ 1.28 Transactions involving stock options are summarized as follows: Number of Shares Weighted Average Exercise Price Options outstanding at December 31, 2018 1,050,000 $ 1.80 Granted 1,800,000 $ 0.98 Exercised - $ - Cancelled / Expired (175,000 ) $ 1.53 Options outstanding at June 30, 2019 2,675,000 $ 1.26 Options exercisable at June 30, 2019 425,000 $ 1.28 Aggregate intrinsic value of options outstanding and exercisable at June 30, 2019 and 2018 was $0 and $4,750, respectively. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the fiscal period, which was $0.55 and $0.76 as of June 30, 2019 and 2018, respectively, and the exercise price multiplied by the number of options outstanding. During the three months ended June 30, 2019 and 2018, the Company charged $38,550 and $675, respectively, to operations to recognized stock-based compensation expense for employee stock options. During the six months ended June 30, 2019 and 2018, the Company charged $77,100 and $9,462, respectively, to operations related to recognized stock-based compensation expense for employee stock options. Accounting for warrants and stock options The Company valued warrants and stock options during the six months ended June 30, 2019 using the Black-Scholes valuation model utilizing the following variables: June 30 , 2019 Volatility 59.4 % Dividends $ - Risk-free interest rates 2.49 % Term (years) 5.00 |
18. SUBSEQUENT EVENTS
18. SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 1 8 . SUBSEQUENT EVENTS Board Member On July 24, 2019, David Polinsky was appointed to the Board of Directors. Mr. Polinsky is an independent director and was appointed to be a member of each of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee of our Board of Directors. As a director, Mr. Polinsky will receive as compensation an annual grant of 50,000 options which will vest after 12 months (provided he is still a Director on the vesting date), and will be exercisable for three years at a price of $1.20 per share. Prior to Mr. Polinsky’s appointment to the Board of Directors, on July 23, 2019 (i) an entity with which he is affiliated purchased 349,650 shares of our common stock for $250,000 which represents a price per share of $0.715, and (ii) through a subsidiary, we purchased certain assets from an entity with which Mr. Polinsky is affiliated for a) nominal cash consideration and b) future potential consideration, the value of which is based on meeting certain milestones related to the assets purchased. Issuance of Common Stock On July 31, 2019, the Company issued 9,524 shares of common stock for with a fair value of $5,429 to a consultant for services. Acquisition of Facility On Aug 9 2019 the Company entered into an agreement to acquire a warehouse and logistics facility (the “Facility”). The Facility is 200,000 square feet and is situated on approximately 15 acres of land, in the general area of the Company’s current warehouse in Pennsylvania. The purchase price is $4.5 million, and the transaction is contingent on the Company receiving a loan for not less than 85% of the purchase price at a rate not above 6% and not less than a 20-year amortization period. The purchase is also subject to a 45-day review period in which, if the Company determines that the property is unacceptable, the Company can terminate the agreement at its sole and absolute discretion. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Business Activity Our business is currently conducted by our wholly-owned subsidiaries, Artisan, FII, Food New Media Group, Inc. (“FNM”), OFB, Gourmet Foodservice Group, Inc. (“GFG”), Gourmet Foodservice Warehouse, Inc. (“GFW”), Gourmeting Inc. (“Gourmeting”), The Haley Group, Inc. (“Haley”), Oasis, 4 The Gourmet, Inc. (d/b/a For The Gourmet, Inc.), (“Gourmet”), Innovative Gourmet (sometimes referred to herein as “Igourmet.com” or “Igourmet”), M Innovations, (sometimes referred to herein as “Mouth” or ” Mouth.com”) and Food Funding (collectively, IVFH and its subsidiaries, the “Company” or “IVFH”). Overall, our business activities are focused around the creation and growth of a platform which provides distribution or the enabling of distribution of high quality, unique specialty food and food related products ranging from specialty foodservice products to Consumer-Packaged Goods (“CPG”) products through a variety of sales channels ranging from national partnership based and regionally based foodservice related sales channels to e-commerce sales channels offering products both direct to consumers (“D2C”) and direct to business (“B2B”). In our business model, we receive orders from our customers and then work closely with our suppliers and our warehouse facilities to have the orders fulfilled. In order to maintain freshness and quality, we carefully select our suppliers based upon, among other factors, their quality, uniqueness, reliability and access to overnight courier services. FII, though its relationship with the producers, growers, and makers of thousands of unique specialty foodservice products and through its relationship with US Foods, Inc. (“U.S. Foods” or “USF”), has been in the business of providing premium restaurants, within 24 – 72 hours, with the freshest origin-specific perishable, and healthcare products shipped directly from our network of vendors and from our warehouses. Our customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals and catering houses. Gourmet has been in the business of providing specialty food via e-commerce through its own website at www.forthegourmet.com and through other ecommerce channels, with unique specialty gourmet food products shipped directly from our network of vendors and from our warehouses within 24 – 72 hours. GFG is focused on expanding the Company’s program offerings to additional customers. Artisan is a supplier of over 1,500 unique specialty foodservice products to over 500 customers such as chefs, restaurants, etc. in the Greater Chicago area and serves as a national fulfillment center for certain of the Company’s other subsidiaries. Haley is a dedicated foodservice consulting and advisory firm that works closely with companies to access private label and manufacturers’ private label food service opportunities with the intent of helping them launch and commercialize new products in the broadline foodservice industry and assists in the enabling of the distribution of products via national broadline food distributors. OFB and Oasis function as outsourced national sales and brand management teams for emerging organic and specialty food CPG companies of a variety of sizes and business stages, and provides emerging and unique CPG specialty food brands with distribution and shelf placement access in all of the major metro markets in the food retail industry. Igourmet has been in the business of providing DTC specialty food via e-commerce through its own website at www.igourmet.com and through other channels such as www.amazon.com, www.jet.com, and www.walmart.com. In addition, Igourmet.com offers a line of B2B specialty foodservice items. Products are primarily shipped directly from Igourmet.com’s 67,000 square feet warehouse in Pennsylvania via Igourmet.com owned trucks and via third party carrier directly to thousands of customers nationwide. Mouth.com (www.mouth.com) is an online retailer of specialty foods, monthly subscription boxes and curated gift boxes to thousands of consumers and corporate customers across the United States. Mouth sources high quality specialty foods crafted in the US by independent and small batch makers, and expertly curates them into standout food gifts for both consumers and corporate customers. Mouth also has launched a private label brand, including several award-winning products. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate these estimates, including those related to revenue recognition and concentration of credit risk. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Accounts subject to estimate and judgements are accounts receivable reserves, income taxes, intangible assets, contingent liabilities, operating right of use assets and liabilities, and equity based instruments. Actual results may differ from these estimates under different assumptions or conditions. We believe our estimates have not been materially inaccurate in past years, and our assumptions are not likely to change in the foreseeable future. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Innovative Food Holdings, Inc., and its wholly owned operating subsidiaries, Artisan, FII, FNM, OFB, GFG, Gourmet Foodservice Warehouse, Inc., Gourmeting, Haley, Oasis, Innovative Gourmet, Food Funding, M Innovations and Gourmet. All material intercompany transactions have been eliminated upon consolidation of these entities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash in investments with credit quality institutions. At times, such investments may be in excess of applicable government mandated insurance limit. At June 30, 2019 and December 31, 2018, trade receivables from the Company’s largest customer amounted to 40% and 44%, respectively, of total trade receivables. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to conform prior period data to the current presentation. |
Lessee, Leases [Policy Text Block] | Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included on the face of the condensed consolidated balance sheet. Finance lease ROU assets are presented within other assets, and finance lease liabilities are presented within accrued liabilities. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also excludes lease incentives. The Company’s 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 lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and it recognizes such lease payments on a straight-line basis over the lease term. |
Revenue [Policy Text Block] | Revenue Recognition The Company recognizes revenue upon product delivery. All of our products are shipped either same day or overnight or through longer shipping terms to the customer and the customer takes title to product and assumes risk and ownership of the product when it is delivered. Shipping charges to customers and sales taxes collectible from customers, if any, are included in revenues. For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 606. A five-step analysis a must be met as outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied.. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. Adoption of ASC 606 had no material effect on the Company’s financial statements. Deferred Revenue Certain customer arrangements in the Company's business such as gift cards and “Of the Month Club” purchases result in deferred revenues when cash payments are received in advance of performance. Gift cards are issued by the Company do not have expiration dates. The Company records a liability for unredeemed gift cards and advance payments for monthly club memberships, as cash is received, and the liability is reduced when the card is redeemed or product delivered. The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance as of December 31, 2018 $ 559,315 Cash payments received 93,580 Net sales recognized (375,500 ) Balance as of March 31, 2019 $ 277,395 Cash payments received 225,064 Net sales recognized (221,531 ) Balance as of June 30, 2019 $ 280,928 Disaggregation of Revenue The following table represents a disaggregation of revenue by from sales for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 Specialty food service $ 11,670,386 $ 10,012,631 Ecommerce 1,784,328 1,384,362 National Brand Management 470,737 592,010 Total $ 13,925,451 $ 11,989,003 Six Months Ended June 30, 2019 2018 Specialty food service $ 21,967,994 $ 19,258,107 Ecommerce 3,879,993 2,435,106 National Brand Management 936,679 1,212,333 Total $ 26,784,666 $ 22,905,547 |
Cost of Goods and Service [Policy Text Block] | Cost of goods sold We have included in cost of goods sold all costs which are directly related to the generation of revenue. These costs include primarily the cost of food and raw materials, packing and handling, shipping, and delivery costs. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings Per Share Basic net earnings per share is based on the weighted average number of shares outstanding during the period, while fully-diluted net earnings per share is based on the weighted average number of shares of common stock and potentially dilutive securities assumed to be outstanding during the period using the treasury stock method. Potentially dilutive securities consist of options and warrants to purchase common stock, and convertible debt. Basic and diluted net loss per share is computed based on the weighted average number of shares of common stock outstanding during the period. The Company uses the treasury stock method to calculate the impact of outstanding stock options and warrants. Stock options and warrants for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on earnings per common share and, accordingly, are excluded from the calculation. Dilutive shares at June 30 , 2019: Convertible notes and interest At June 30, 2019 there were no convertible notes outstanding. Warrants At June 30, 2019 there are no warrants outstanding. Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at June 30, 2019: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.62 360,000 4.51 $ 0.75 50,000 2.51 $ 0.85 540,000 4.51 $ 0.95 50,000 2.51 $ 1.10 75,000 1.87 $ 1.20 900,000 4.51 $ 1.38 100,000 0.42 $ 1.50 125,000 2.51 $ 1.90 100,000 0.17 $ 2.00 125,000 2.51 $ 2.50 125,000 2.51 $ 3.00 125,000 2.51 2,675,000 3.67 Restricted Stock Awards At June 30, 2019 there are an additional 300,000 unvested restricted stock awards remaining from grants in a prior year. Those 300,000 restricted stock awards will vest as follows: 125,000 restricted stock awards will vest contingent upon the attainment of a stock price of $2.00 per share for 20 straight trading days, and an additional 175,000 restricted stock awards will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days. Stock-based compensation During the six months ended 2019, the Company incurred obligations to issue the following shares of common stock pursuant to employment agreements: an aggregate total of 145,450 shares of common stock to its Chief Executive Officer and to its Director of Strategic Acquisitions; an aggregate total 48,516 shares to board members; and 27,994 shares to an employee. Dilutive shares at June 30, 2018: There were no convertible notes or warrants outstanding on June 30, 2018. Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company: |
New Accounting Pronouncements, Policy [Policy Text Block] | Significant Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, current U.S. GAAP requires the performance of procedures to determine the fair value at the impairment testing date of assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the amendments under this ASU require the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized 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 that reporting unit. The ASU becomes effective for the Company on January 1, 2020. The amendments in this ASU should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months and disclosing key information about leasing transactions. Leases are classified as either operating or financing, with such classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) - Targeted Improvements, which provided an optional transition method to apply the new lease requirements through a cumulative-effect adjustment in the period of adoption. We adopted ASU 2016-02 in the first quarter of 2019 using the optional transition method and elected certain practical expedients permitted under the transition guidance, which, among other things, allowed us to not reassess prior conclusions related to contracts containing leases or lease classification. The adoption primarily affected our condensed consolidated balance sheet through the recognition of $338,581 of operating right-of-use assets and $338,581 of operating lease liabilities as of January 1, 2019. The adoption did not have a significant impact on our results of operations or cash flows. See Note 7. "Leases" to our condensed consolidated financial statements for further discussion of the effects of the adoption of ASU 2016-02 and the associated disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU relates to the accounting for non-employee share-based payments. The amendment in this update expands the scope of Topic 718 to include all share-based payment transactions in which a grantor acquired goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The ASU excludes share-based payment awards that relate to: (1) financing to the issuer; or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts from Customers. The share-based payments are to be measured at grant-date fair value of the equity instruments that the entity is obligated to issue when the goods or service has been delivered or rendered and all other conditions necessary to earn the right to benefit from the equity instruments have been satisfied. This standard will be effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We adopted the provisions of this ASU on January 1, 2019. The adoption had no impact on our results of operations, cash flows, or financial condition. Management does not believe that any other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the accompanying condensed consolidated financial statements. |
2. NATURE OF ACTIVITIES AND S_2
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance as of December 31, 2018 $ 559,315 Cash payments received 93,580 Net sales recognized (375,500 ) Balance as of March 31, 2019 $ 277,395 Cash payments received 225,064 Net sales recognized (221,531 ) Balance as of June 30, 2019 $ 280,928 |
Disaggregation of Revenue [Table Text Block] | The following table represents a disaggregation of revenue by from sales for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 Specialty food service $ 11,670,386 $ 10,012,631 Ecommerce 1,784,328 1,384,362 National Brand Management 470,737 592,010 Total $ 13,925,451 $ 11,989,003 Six Months Ended June 30, 2019 2018 Specialty food service $ 21,967,994 $ 19,258,107 Ecommerce 3,879,993 2,435,106 National Brand Management 936,679 1,212,333 Total $ 26,784,666 $ 22,905,547 |
Dilutive Shares [Table Text Block] | The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at June 30, 2019: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.62 360,000 4.51 $ 0.75 50,000 2.51 $ 0.85 540,000 4.51 $ 0.95 50,000 2.51 $ 1.10 75,000 1.87 $ 1.20 900,000 4.51 $ 1.38 100,000 0.42 $ 1.50 125,000 2.51 $ 1.90 100,000 0.17 $ 2.00 125,000 2.51 $ 2.50 125,000 2.51 $ 3.00 125,000 2.51 2,675,000 3.67 Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 1.10 75,000 2.87 $ 1.31 150,000 0.51 $ 1.38 100,000 1.42 $ 1.43 50,000 0.50 $ 1.46 100,000 0.01 $ 1.90 175,000 0.98 650,000 0.97 |
3. ACQUISITION (Tables)
3. ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The acquisition date estimated fair value of the consideration transferred totaled $513,355. During the year ended December 31, 2018, the Company changed the original allocation of the purchase price among the assets acquired. The reallocated purchase price consisted of the following: Cash $ 208,355 Contingent liability – payable to debt holder 185,000 Contingent liabilities – payable to sellers 100,000 Additional Contingent Liabilities 20,000 Total purchase price $ 513,355 Tangible assets acquired $ 57,000 Intangible assets acquired 419,926 Goodwill acquired 36,429 Total purchase price $ 513,355 Initial purchase price $ 1,500,000 Cash payable in connection with transaction 1,863,443 Accounts payable 286,239 Deferred revenue 231,169 Contingent liabilities 394,900 Total purchase price $ 4,275,751 Tangible assets acquired $ 842,458 Intangible assets acquired 2,970,600 Goodwill acquired 462,693 Total purchase price $ 4,275,751 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table sets forth the unaudited pro forma results of the Company as if the iGourmet APA was effective on the first day of the June 30, 2018 six month period presented. These combined results are not necessarily indicative of the results that may have been achieved had the companies always been combined. Six months ended June 3 0 , 2018 (unaudited) Revenues $ 23,283,197 Net Income $ 667,471 Basic net income per share $ 0.020 Diluted net income per share $ 0.020 Weighted average shares – basic 33,966,497 Weighted average shares – diluted 33,966,497 |
4. ACCOUNTS RECEIVABLE (Tables)
4. ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | At June 30, 2019 and December 31, 2018, accounts receivable consists of: June 30 , 2019 December 31, 2018 Accounts receivable from customers $ 3,171,097 $ 3,194,932 Allowance for doubtful accounts (152,397 ) (155,176 ) Accounts receivable, net $ 3,018,700 $ 3,039,756 |
5. INVENTORY (Tables)
5. INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consists primarily of specialty food products. At June 30, 2019 and December 31, 2018, inventory consisted of the following: June 30 , 2019 December 31, 2018 Finished Goods Inventory $ 2,217,174 $ 2,301,377 |
6. PROPERTY AND EQUIPMENT (Tabl
6. PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment at June 30, 2019 and December 31, 2018, was as follows: June 30 , 2019 December 31, 2018 Land $ 385,523 $ 385,523 Building 1,326,165 1,326,165 Computer and Office Equipment 546,828 523,853 Warehouse Equipment 301,106 302,622 Furniture, Fixtures 891,778 889,073 Vehicles 101,518 220,812 Total before accumulated depreciation 3,552,918 3,648,048 Less: accumulated depreciation (1,317,502 ) (1,191,438 ) Total $ 2,235,416 $ 2,456,610 |
7.RIGHT TO USE ASSETS AND LEA_2
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Operating Lease Right to Use Assets [Table Text Block] | Right to use assets – operating leases are summarized below: June 30 , 2019 Warehouse $ 92,400 Warehouse equipment 24,172 Office equipment 42,712 Vehicles 109,354 Right to use assets, net $ 268,638 |
Schedule of Operating Lease Liabilities [Table Text Block] | Operating lease liabilities are summarized below: June 30, 2019 Warehouse $ 92,400 Warehouse equipment 24,172 Office equipment 42,712 Vehicles 109,354 Lease liability $ 268,638 Less: current portion (197,014 ) Lease liability, non-current $ 71,624 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity analysis under these lease agreements are as follows: Twelve months ended June 30, 2020 $ 197,014 Twelve months ended June 30, 2021 57,074 Twelve months ended June 30, 2022 24,589 Twelve months ended June 30, 2023 3,894 Twelve months ended June 30, 2024 - Total $ 282,571 Less: Present value discount (13,933 ) Lease liability $ 268,638 |
9. INTANGIBLE ASSETS (Tables)
9. INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following is the net book value of these assets: June 30 , 2019 Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (398,229 ) $ 107,671 Customer Relationships - amortizable 3,068,043 (2,130,864 ) 937,179 Trade Name 1,532,822 - 1,532,822 Internally Developed Technology - amortizable 875,643 (241,692 ) 633,951 Goodwill 650,243 - 650,243 Website - amortizable 23,500 - 23,500 Total $ 6,656,151 $ (2,770,785 ) $ 3,885,366 December 31, 2018 Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (362,913 ) $ 142,987 Customer Relationships - amortizable 3,068,043 (1,783,598 ) 1,284,445 Trade Name 1,532,822 - 1,532,822 Internally Developed Technology - amortizable 875,643 (144,577 ) 731,066 Goodwill 650,243 - 650,243 Total $ 6,632,651 $ (2,291,088 ) $ 4,341,563 |
10. ACCOUNTS PAYABLE AND ACCR_2
10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and accrued liabilities at June 30, 2019 and December 31, 2018 are as follows: June 30 , 2019 December 31, 2018 Trade payables and accrued liabilities $ 1,844,146 $ 3,425,178 Accrued payroll and commissions 199,069 264,690 Total $ 2,043,215 $ 3,689,868 |
12. REVOLVING CREDIT FACILITI_2
12. REVOLVING CREDIT FACILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | June 30 , 2019 December 31, 2018 On March 23, 2018, the Company entered into a Master Loan & Security Agreement that provided for the advance of funds in connection with a $500,000 Draw Promissory Note. in order to finance certain equipment acquisitions (“Artisan Equipment Loan”); On December 21, 2018, the Company advanced $391,558 under the $500,000 Draw Promissory Note. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of 5.20%. As of December 31, 2018, there was $108,422 remaining to be drawn on the Artisan Equipment Loan. On March 27, 2019, an amendment was made to the Draw Promissory Note to extend the draw period to December 31, 2019. On March 27, 2019, a Promissory Note was made for the amounts advanced in the amount of $391,558 to convert to a Term Loan. (see note 13). $ - $ - Line of credit facility with Fifth Third Bank in the original amount of $1,000,000 with an interest rate of LIBOR plus 3.25%. In August 2015, the amount of the credit facility was increased to $1,500,000 and the due date was extended to August 1, 2016. In August 2016, this credit facility was extended to August 1, 2017. On August 1, 2017 this credit facility was increased to $2,000,000 and the due date was extended to August 1, 2018. In August 2018, this credit facility was extended to August 1, 2019. Effective August 1, 2019, this credit facility was extended to August 1, 2021. $ - $ - Total $ - $ - |
13. NOTES PAYABLE AND NOTES P_2
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | June 30 , 2019 December 31, 2018 Term loan dated as of August 5, 2016 in the original amount of $1,200,000 payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of LIBOR plus 4.5%. Principal payments in the amount of $66,667 are due monthly along with accrued interest beginning September 5, 2016. The entire principal balance and all accrued interest was due and was paid on the maturity date of February 5, 2018. During the twelve months ended December 31, 2016, the Company transferred principal in the amount of $1,200,000 from the line of credit facility with Fifth Third Bank into this term loan. During the twelve months ended December 31, 2018, the Company made principal and interest payments on this loan in the amounts of $114,033 and $829, respectively. $ - $ - Secured mortgage note payable for the acquisition of land and building in Bonita Springs, Florida in the amount of $546,000. Principal payments of $4,550 plus interest at the rate of Libor plus 3% are due monthly. The balance of the principal amount was originally due February 28, 2018. On March 23, 2018 and effective February 26, 2018, this note was amended and renewed in the amount of $273,000, with monthly payments of principal and interest of $4,550 payable through the maturity date of February 28, 2023. During the three months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $13,650 and $2,992, respectively. During the six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $27,300 and $6,122, respectively. 204,750 232,050 Secured mortgage note payable for the acquisition of land and building in Broadview, Illinois in the amount of $980,000. Principal payments of $8,167 plus interest at the rate of LIBOR plus 2.75% are due monthly through April 2020, the remaining principal balance in the amount of $490,000 will be due May 29, 2020. During the three months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $24,500 and $7,991, respectively. During the six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $49,000 and $16,213, respectively. 579,833 628,833 Term loan dated March 28, 2018 in the original amount of $1,500,000 payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of LIBOR plus 4.25%. Principal payments in the amount of $83,333 are due monthly along with accrued interest beginning March 28, 2018. The entire principal balance and all accrued interest is due on the maturity date of August 28, 2019. During the three months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $249,999 and $5,792, respectively. During the six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $499,998 and $15,767, respectively. 166,668 666,670 Promissory note dated March 22, 2019 in the original amount of $391,558 (the “Artisan Equipment Loan”) payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of 5.20%. The entire principal balance and all accrued interest is due on the maturity date of March 21, 2024. Monthly payments in the amount of $7,425 including principal and interest commenced in April, 2019. During the three and six months ended June 30, 2019, equipment financed under the Artisan Equipment Loan in the amount of $33,075 was returned for credit. Also during the three and six months ended June 30, 2019, the Company made payments of principal and interest on this note in the amounts of $11,506 and $5,114, respectively. 348,033 391,558 A note payable in the amount of $20,000. The Note was due in January 2006 and the Company is currently accruing interest on this note at 1.9%. During the three and six months ended June 30, 2019, the Company accrued interest in the amount of $93 and $186, respectively, on this note. 20,000 20,000 June 30 , 2019 December 31, 2018 Unsecured promissory note in the amount of $100,000 dated January 1, 2017 bearing interest at the rate of 2.91% per annum issued in connection with the Oasis acquisition. Payments in the amount of $4,297 consisting of principal and interest are to be made monthly beginning February 15, 2017 for twenty-four months until paid in full. During the three months ended June 30, 2019, the Company made principal and interest payments on this note in the amount of $0 and $0, respectively. During the six months ended June 30, 2019, the Company made principal and interest payments on this note in the amount of $4,291 and $2, respectively. - 4,291 This obligation was reclassified as a Lease Liability - Financing Lease in connection with the Company’s adoption of ASU 2016-02 on January 1, 2019; see note 14. - 5,661 Vehicle acquisition loan dated December 6, 2018 in the original amount of $51,088, payable in sixty monthly installments of $955 including interest at the rate of 4.61%. During the three months ended June 30, 2019, the Company made principal and interest payments in the amount of $2,295 and $571, respectively, on this loan. During the six months ended June 30, 2019, the Company made principal and interest payments in the amount of $3,837 and $938, respectively, on this loan. 46,491 50,328 This obligation was reclassified as a Lease Liability - Financing Lease in connection with the Company’s adoption of ASU 2016-02 on January 1, 2019; see note 14. - 125,711 Total $ 1,365,775 $ 2,125,102 Current portion $ 901,728 $ 928,857 Long-term maturities 464,047 1,196,245 Total $ 1,365,775 $ 2,125,102 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate maturities of long-term notes payable as of June 30, 2019 are as follows: 2020 $ 901,728 2021 132,757 2022 136,911 2023 127,634 2024 66,745 Thereafter - Total $ 1,365,775 |
14. LEASE LIABILITIES - FINAN_2
14. LEASE LIABILITIES - FINANCING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Lease, Cost [Table Text Block] | Financing lease obligation under a lease agreement for a forklift payable in thirty-six monthly installments of $579 including interest at the rate of 4.83%. During the three months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $2,264 and $35, respectively. During the six months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $3,939 and $89, respectively. 1,722 - Financing lease obligations under a lease agreement for a truck in the original amount of $128,587 payable in seventy monthly installments of $2,326 including interest at the rate of 8.33%. During the three months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $4,481 and $2,496, respectively. During the six months ended June 30, 2019, the Company made principal and interest payments on this lease obligation in the amounts of $8,869 and $5,085 respectively. 116,842 - Total $ 118,564 $ - Current portion $ 20,605 $ - Long-term maturities 97,959 - Total $ 118,564 $ - |
Finance Lease, Liability, Maturity [Table Text Block] | Aggregate maturities of lease liabilities – financing leases as of June 30, 2019 are as follows: 2020 $ 20,605 2021 20,517 2022 22,294 2023 24,224 2024 26,321 Thereafter 4,603 Total $ 118,564 |
17. EQUITY (Tables)
17. EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | The following table summarizes the options outstanding at June 30, 2019 and the related prices for the options to purchase shares of the Company’s common stock issued by the Company: Weighted Weighted Weighted average average average exercise exercise Range of Number of Remaining price of Number of price of exercise options contractual outstanding options exercisable Prices Outstanding life (years) Options Exercisable Options $ 0.62 360,000 4.51 $ 0.62 30,000 $ 0.62 $ 0.75 50,000 2.51 $ 0.75 - $ 0.75 $ 0.85 540,000 4.51 $ 0.85 45,000 $ 0.85 $ 0.95 50,000 2.51 $ 0.95 - $ 0.95 $ 1.10 75,000 1.87 $ 1.10 75,000 $ 1.10 $ 1.20 900,000 4.51 $ 1.20 75,000 $ 1.20 $ 1.38 100,000 0.42 $ 1.38 100,000 $ 1.38 $ 1.50 125,000 2.51 $ 1.50 - $ 1.50 $ 1.90 100,000 0.42 $ 1.90 100,000 $ 1.90 $ 2.00 125,000 2.51 $ 2.00 - $ 2.00 $ 2.50 125,000 2.51 $ 2.50 - $ 2.50 $ 3.00 125,000 2.51 $ 3.00 - $ 3.00 2,675,000 3.67 $ 1.26 425,000 $ 1.28 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Transactions involving stock options are summarized as follows: Number of Shares Weighted Average Exercise Price Options outstanding at December 31, 2018 1,050,000 $ 1.80 Granted 1,800,000 $ 0.98 Exercised - $ - Cancelled / Expired (175,000 ) $ 1.53 Options outstanding at June 30, 2019 2,675,000 $ 1.26 Options exercisable at June 30, 2019 425,000 $ 1.28 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The Company valued warrants and stock options during the six months ended June 30, 2019 using the Black-Scholes valuation model utilizing the following variables: June 30 , 2019 Volatility 59.4 % Dividends $ - Risk-free interest rates 2.49 % Term (years) 5.00 |
2. NATURE OF ACTIVITIES AND S_3
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Concentration Risk, Customer | largest customer | largest customer |
Concentration Risk, Percentage | 40.00% | 44.00% |
Chief Executive Officer [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 145,450 | |
Director [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 48,516 | |
Employee [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 27,994 | |
Restricted Stock [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 300,000 | |
Restricted Stock [Member] | Prior Period [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 125,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vest contingent upon the attainment of a stock price of $2.00 per share for 20 straight trading days, and an additional 175,000 restricted stock awards will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days | |
Restricted Stock [Member] | Prior Period [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 175,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days |
2. NATURE OF ACTIVITIES AND SI
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Deferred Revenue - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Deferred Revenue [Abstract] | ||
Balance | $ 277,395 | $ 559,315 |
Cash payments received | 225,064 | 93,580 |
Net sales recognized | (221,531) | (375,500) |
Balance | $ 280,928 | $ 277,395 |
2. NATURE OF ACTIVITIES AND _2
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Disaggregation of Revenue - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 13,925,451 | $ 11,989,003 | $ 26,784,666 | $ 22,905,547 |
Specialty Food Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,670,386 | 10,012,631 | 21,967,994 | 19,258,107 |
Ecommerce [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,784,328 | 1,384,362 | 3,879,993 | 2,435,106 |
National Brand Management [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 470,737 | $ 592,010 | $ 936,679 | $ 1,212,333 |
2. NATURE OF ACTIVITIES AND _3
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Number of Options | 2,675,000 | 650,000 |
Weighted Average Remaining Contractual Life | 3 years 244 days | 354 days |
Options at $0.62 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 0.62 | |
Number of Options | 360,000 | |
Weighted Average Remaining Contractual Life | 4 years 186 days | |
Options at $0.75 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 0.75 | |
Number of Options | 50,000 | |
Weighted Average Remaining Contractual Life | 2 years 186 days | |
Options at $0.85 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 0.85 | |
Number of Options | 540,000 | |
Weighted Average Remaining Contractual Life | 4 years 186 days | |
Options at $0.95 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 0.95 | |
Number of Options | 50,000 | |
Weighted Average Remaining Contractual Life | 2 years 186 days | |
Options at $1.10 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.10 | $ 1.10 |
Number of Options | 75,000 | 75,000 |
Weighted Average Remaining Contractual Life | 1 year 317 days | 2 years 317 days |
Options at $1.20 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.20 | |
Number of Options | 900,000 | |
Weighted Average Remaining Contractual Life | 4 years 186 days | |
Options at $1.38 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.38 | $ 1.38 |
Number of Options | 100,000 | 100,000 |
Weighted Average Remaining Contractual Life | 153 days | 1 year 153 days |
Options at $1.50 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.50 | |
Number of Options | 125,000 | |
Weighted Average Remaining Contractual Life | 2 years 186 days | |
Options at $1.90 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.90 | $ 1.90 |
Number of Options | 100,000 | 175,000 |
Weighted Average Remaining Contractual Life | 62 days | 357 days |
Options at $2.00 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 2 | |
Number of Options | 125,000 | |
Weighted Average Remaining Contractual Life | 2 years 186 days | |
Options at $2.50 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 2.50 | |
Number of Options | 125,000 | |
Weighted Average Remaining Contractual Life | 2 years 186 days | |
Options at $3.00 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 3 | |
Number of Options | 125,000 | |
Weighted Average Remaining Contractual Life | 2 years 186 days | |
Options at $1.310 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.31 | |
Number of Options | 150,000 | |
Weighted Average Remaining Contractual Life | 186 days | |
Options at $1.43 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.43 | |
Number of Options | 50,000 | |
Weighted Average Remaining Contractual Life | 6 months | |
Options at $1.46 [Member] | ||
2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | ||
Exercise Price | $ 1.46 | |
Number of Options | 100,000 | |
Weighted Average Remaining Contractual Life | 3 days |
3. ACQUISITION (Details)
3. ACQUISITION (Details) - USD ($) | Jul. 06, 2018 | Jan. 23, 2018 | Dec. 31, 2018 | Jun. 30, 2019 |
Mouth Foods [Member] | ||||
3. ACQUISITION (Details) [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 208,355 | |||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, Low | 100,000 | |||
Business Combination, Contingent Consideration, Liability | $ 240,576 | |||
Business Combination, Consideration Transferred | $ 513,355 | 513,355 | ||
Payments to Acquire Businesses, Gross | $ 208,355 | |||
IGourmet, LLC [Member] | ||||
3. ACQUISITION (Details) [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Description | The consideration for and in connection with the iGourmet APA consisted of:  (i) $1,500,000, which satisfied or reduced secured, priority and administrative debt of sellers; (ii) in connection with and prior to the acquisition, our wholly-owned subsidiary, Food Funding, funded advances of $325,500 to sellers on a secured basis, pursuant to certain loan documents and as bridge loans, which loans  were reduced by the proceeds of the iGourmet APA; (iii) the purchase for $200,000 of certain debt owed by sellers, to be paid out of, if  available, Innovative Gourmet’s cash flow; (iv) potential contingent liability allocation for a percentage of sellers’ approximately $2,300,000 of certain debt, not purchased or assumed by Innovative Gourmet, which  under certain circumstances, Innovative Gourmet may determine to pay; and (v) additional purchase price consideration of (a) up to a maximum of $1,500,000, if EBITDA of Innovative Gourmet reaches $800,000 thousand in 2018, (b) up to a maximum of $1,750,000, if EBITDA of Innovative Gourmet in 2019 exceeds its EBITDA in 2018 by at least 20% and if its EBITDA reaches $5,000,000; and (c) up to a maximum of $2,125,000, if EBITDA of Innovative Gourmet in 2020 exceeds its EBITDA in 2019 by at least 20% and if its EBITDA reaches $8,000,000. The additional purchase price consolidation milestone for 2018 was not met. The EBITDA based earnout shall be paid 37.5% in cash, 25% in Innovative Food Holdings shares valued at the time of the closing of this transaction and 37.5%, at Innovative Gourmet’s option, in Innovative Food Holdings shares valued at the time of the payment of the earnout or in cash | |||
Business Combination, Contingent Consideration, Liability | $ 787,800 | $ 394,900 | $ 10,000 | |
Business Combination, Consideration Transferred | 4,151,243 | 4,275,751 | ||
Payments to Acquire Businesses, Gross | $ 1,500,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Nature of Adjustments | Company made the following purchase price adjustments: (i) accrued an additional $286,239 for accounts payable prior to acquisition; (ii) decreased contingent liabilities by the amount of $392,900 for earnout payments not made; (iii) decreased accounts receivable in the amount of $108,893 for amounts not collected; and (4) increased deferred revenue in the amount of $231,169 for shipments made. These adjustments increased the value of the acquisition to $4,275,751 | |||
Food Funding [Member] | IGourmet, LLC [Member] | ||||
3. ACQUISITION (Details) [Line Items] | ||||
Payments to Acquire Loans Receivable | $ 1,187,000 | |||
Contingent Liability - Future Sales of Purchased Assets [Member] | Mouth Foods [Member] | ||||
3. ACQUISITION (Details) [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Description | payment of 5% of certain revenues, with no payments on the first $500,000 of revenues and no payments on revenues after June 30, 2020; (iii) additional revenue based contingent liabilities of up to $185,000 associated with the purchase of certain debt of the seller; and (iv) additional contingent liability consideration valued by management at approximately $20,000 | |||
Contingent Liability – Payable to Debt Holder [Member] | Mouth Foods [Member] | ||||
3. ACQUISITION (Details) [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 185,000 | $ 185,000 | ||
Contingent Liabilities - Payable to Certain Vendors [Member] | Mouth Foods [Member] | ||||
3. ACQUISITION (Details) [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 20,000 |
3. ACQUISITION (Details) - Sch
3. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - USD ($) | Jul. 06, 2018 | Jan. 23, 2018 | Dec. 31, 2018 | Jun. 30, 2019 |
Mouth Foods [Member] | ||||
3. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Cash | $ 208,355 | |||
Accounts payable | 20,000 | |||
Contingent liabilit | 240,576 | |||
Additional Contingent Liabilities | 20,000 | |||
Total purchase price | $ 513,355 | 513,355 | ||
Tangible assets acquired | 57,000 | |||
Intangible assets acquired | 419,926 | |||
Goodwill acquired | 36,429 | |||
IGourmet, LLC [Member] | ||||
3. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Cash | 1,500,000 | |||
Cash payable in connection with transaction | 1,863,443 | |||
Accounts payable | 286,239 | |||
Deferred revenue | 231,169,000,000 | |||
Contingent liabilit | $ 787,800 | 394,900 | $ 10,000 | |
Additional Contingent Liabilities | 286,239 | |||
Total purchase price | $ 4,151,243 | 4,275,751 | ||
Tangible assets acquired | 842,458 | |||
Intangible assets acquired | 2,970,600 | |||
Goodwill acquired | 462,693 | |||
Contingent Liability – Payable to Debt Holder [Member] | Mouth Foods [Member] | ||||
3. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Contingent liabilit | $ 185,000 | 185,000 | ||
Contingent Liabilities Payable To Sellers [Member] | Mouth Foods [Member] | ||||
3. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Contingent liabilit | $ 100,000 |
3. ACQUISITION (Details) - Bus
3. ACQUISITION (Details) - Business Acquisition, Pro Forma Information - Mouth Foods [Member] | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
3. ACQUISITION (Details) - Business Acquisition, Pro Forma Information [Line Items] | |
Revenues (in Dollars) | $ | $ 23,283,197 |
Net Income (in Dollars) | $ | $ 667,471 |
Basic net income per share | $ 0.020 |
Diluted net income per share | 0.020 |
Weighted average shares - basic | $ 33,966,497 |
Weighted average shares - diluted (in Shares) | shares | 33,966,497 |
4. ACCOUNTS RECEIVABLE (Details
4. ACCOUNTS RECEIVABLE (Details) - Schedule of accounts receivable - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable from customers | $ 3,171,097 | $ 3,194,932 |
Allowance for doubtful accounts | (152,397) | (155,176) |
Accounts receivable, net | $ 3,018,700 | $ 3,039,756 |
5. INVENTORY (Details) - Schedu
5. INVENTORY (Details) - Schedule of Inventory - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Inventory [Abstract] | ||
Finished Goods Inventory | $ 2,217,174 | $ 2,301,377 |
6. PROPERTY AND EQUIPMENT (Deta
6. PROPERTY AND EQUIPMENT (Details) | May 14, 2015USD ($)aft² | Feb. 26, 2013USD ($)aft² | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | ||||||
Depreciation | $ 75,254 | $ 45,457 | $ 151,329 | $ 94,724 | ||
Land and Building [Member] | ||||||
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | ||||||
Area of Land (in Acres) | a | 1.33 | 1.1 | ||||
Area of Real Estate Property (in Square Feet) | ft² | 28,711 | 10,000 | ||||
Property, Plant and Equipment, Additions | $ 914,350 | $ 792,758 | ||||
Proceeds from Lines of Credit | 900,000 | |||||
Debt Instrument, Face Amount | 980,000 | |||||
Repayments of Lines of Credit | 900,000 | |||||
Leasehold Improvements [Member] | ||||||
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | ||||||
Property, Plant and Equipment, Additions | $ 80,000 | |||||
London Interbank Offered Rate (LIBOR) [Member] | Land and Building [Member] | ||||||
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% |
6. PROPERTY AND EQUIPMENT (De_2
6. PROPERTY AND EQUIPMENT (Details) - Schedule of property, plant and equipment - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 3,552,918 | $ 3,648,048 |
Less: accumulated depreciation | (1,317,502) | (1,191,438) |
Total | 2,235,416 | 2,456,610 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 385,523 | 385,523 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,326,165 | 1,326,165 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 546,828 | 523,853 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 301,106 | 302,622 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 891,778 | 889,073 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 101,518 | $ 220,812 |
7.RIGHT TO USE ASSETS AND LEA_3
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Operating Lease, Expense | $ 50,396 | $ 97,267 | |
Amortization of Leased Asset | $ 45,963 | $ 88,644 | $ 0 |
7.RIGHT TO USE ASSETS AND LEA_4
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Right to Use Assets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Right to Use Assets [Line Items] | ||
Right to use assets, net | $ 268,638 | $ 0 |
Warehouse #1 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Right to Use Assets [Line Items] | ||
Right to use assets, net | 92,400 | |
Warehouse Equipment #1 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Right to Use Assets [Line Items] | ||
Right to use assets, net | 24,172 | |
Office Equipment #1 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Right to Use Assets [Line Items] | ||
Right to use assets, net | 42,712 | |
Vehicle #5 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Right to Use Assets [Line Items] | ||
Right to use assets, net | $ 109,354 |
7.RIGHT TO USE ASSETS AND LEA_5
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Liabilities - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Liabilities [Line Items] | ||
Lease liability | $ 268,638 | |
Lease liability, current portion | (197,014) | $ 0 |
Lease liability, non-current | 71,624 | $ 0 |
Warehouse #1 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Liabilities [Line Items] | ||
Lease liability | 92,400 | |
Warehouse Equipment #1 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Liabilities [Line Items] | ||
Lease liability | 24,172 | |
Office Equipment #1 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Liabilities [Line Items] | ||
Lease liability | 42,712 | |
Vehicle #5 [Member] | ||
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Schedule of Operating Lease Liabilities [Line Items] | ||
Lease liability | $ 109,354 |
7.RIGHT TO USE ASSETS AND LEA_6
7.RIGHT TO USE ASSETS AND LEASE LIABILITY – OPERATING LEASES (Details) - Lessee, Operating Lease, Liability, Maturity | Jun. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Maturity [Abstract] | |
Twelve months ended June 30, 2020 | $ 197,014 |
Twelve months ended June 30, 2021 | 57,074 |
Twelve months ended June 30, 2022 | 24,589 |
Twelve months ended June 30, 2023 | 3,894 |
Total | 282,571 |
Less: Present value discount | (13,933) |
Lease liability | $ 268,638 |
8. INVESTMENTS (Details)
8. INVESTMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Investments Schedule [Abstract] | ||||
Equity Method Investment, Additional Information | the Company has investments in six food related companies | |||
Long-term Investments | $ 395,025 | $ 395,025 | $ 339,525 | |
Payments to Acquire Equity Method Investments | $ 25,000 | |||
Transfer to Investments | $ 15,000 | $ 30,500 |
9. INTANGIBLE ASSETS (Details)
9. INTANGIBLE ASSETS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
9. INTANGIBLE ASSETS (Details) [Line Items] | ||||
Amortization of Intangible Assets | $ 250,567 | $ 216,157 | $ 479,697 | $ 405,303 |
Noncompete Agreements [Member] | ||||
9. INTANGIBLE ASSETS (Details) [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 48 months | |||
Developed Technology Rights [Member] | ||||
9. INTANGIBLE ASSETS (Details) [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 60 months | |||
Minimum [Member] | Customer Relationships [Member] | ||||
9. INTANGIBLE ASSETS (Details) [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 24 months | |||
Maximum [Member] | Customer Relationships [Member] | ||||
9. INTANGIBLE ASSETS (Details) [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 36 months |
9. INTANGIBLE ASSETS (Details)
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | $ 6,656,151 | $ 6,632,651 |
Intangible asset, accumulated amortization | (2,770,785) | (2,291,088) |
Intangible asset, net | 3,885,366 | 4,341,563 |
Goodwill, net | 2,183,065 | 2,183,065 |
Noncompete Agreements [Member] | ||
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 505,900 | 505,900 |
Intangible asset, accumulated amortization | (398,229) | (362,913) |
Intangible asset, net | 107,671 | 142,987 |
Customer Relationships [Member] | ||
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 3,068,043 | 3,068,043 |
Intangible asset, accumulated amortization | (2,130,864) | (1,783,598) |
Intangible asset, net | 937,179 | 1,284,445 |
Trade Names [Member] | ||
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 1,532,822 | 1,532,822 |
Intangible asset, accumulated amortization | 0 | 0 |
Intangible asset, net | 1,532,822 | 1,532,822 |
Developed Technology Rights [Member] | ||
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 875,643 | 875,643 |
Intangible asset, accumulated amortization | (241,692) | (144,577) |
Intangible asset, net | 633,951 | 731,066 |
Goodwill [Member] | ||
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Goodwill, gross | 650,243 | 650,243 |
Goodwill, accumulated amortization | 0 | 0 |
Goodwill, net | 650,243 | $ 650,243 |
Website [Member] | ||
9. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 23,500 | |
Intangible asset, accumulated amortization | 0 | |
Intangible asset, net | $ 23,500 |
10. ACCOUNTS PAYABLE AND ACCR_3
10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - Schedule of accounts payable and accrued liabilities - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of accounts payable and accrued liabilities [Abstract] | ||
Trade payables and accrued liabilities | $ 1,844,146 | $ 3,425,178 |
Accrued payroll and commissions | 199,069 | 264,690 |
Total | $ 2,043,215 | $ 3,689,868 |
11. ACCRUED INTEREST (Details)
11. ACCRUED INTEREST (Details) - Accrued interest [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
11. ACCRUED INTEREST (Details) [Line Items] | ||
Interest Payable | $ 18,378 | $ 16,402 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 49,337 | $ 122,232 |
12. REVOLVING CREDIT FACILITI_3
12. REVOLVING CREDIT FACILITIES (Details) - Schedule of Line of Credit Facilities - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Line of credit | $ 0 | $ 0 |
Line of Credit [Member] | Fifth Third Bank Credit Facility #1 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | 0 | 0 |
Line of Credit [Member] | Fifth Third Bank Credit Facility #2 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 0 | $ 0 |
12. REVOLVING CREDIT FACILITI_4
12. REVOLVING CREDIT FACILITIES (Details) - Schedule of Line of Credit Facilities (Parentheticals) - Line of Credit [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fifth Third Bank Credit Facility #1 [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed | $ 391,558 | |
Fifth Third Bank Credit Facility #2 [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility | 1,000,000 | $ 1,000,000 |
Credit facility was increased | $ 2,000,000 | $ 2,000,000 |
Due Date | Aug. 1, 2019 | Aug. 1, 2018 |
Interest | 3.25% | 3.25% |
13. NOTES PAYABLE AND NOTES P_3
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Total | $ 1,365,775 | $ 2,125,102 |
Current maturities, net of discount | 901,728 | 928,857 |
Long-term portion, net of discount | 464,047 | 1,196,245 |
Total | 1,365,775 | 2,125,102 |
Notes Payable to Banks [Member] | Artisan Equipment Loan [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 348,033 | 391,558 |
Loans Payable [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 0 | 125,711 |
Bonita Springs, FL [Member] | Mortgages [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 204,750 | 232,050 |
Broadview, IL [Member] | Mortgages [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 579,833 | 628,833 |
Notes Payable to Banks [Member] | Term Loan #1 [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 0 | 0 |
Notes Payable, Other Payables [Member] | Term Loan #2 [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 166,668 | 666,670 |
Notes Payable, Other Payables [Member] | Oasis Sales and Marketing, LLC [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 0 | 4,291 |
Convertible Debt [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Convertible debt | 20,000 | 20,000 |
Capital Lease #2 [Member] | Capital Lease Obligations [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Capital lease obligations | 5,661 | |
Capital Lease #3 [Member] | Capital Lease Obligations [Member] | ||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Capital lease obligations | $ 46,491 | $ 50,328 |
13. NOTES PAYABLE AND NOTES P_4
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 594,877 | $ 545,674 | |
Notes Payable to Banks [Member] | Artisan Equipment Loan [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 391,558 | ||
Secured by | the Company's tangible and intangible personal property | ||
Dated | Mar. 22, 2019 | ||
Due | March 21, 2024 | ||
Payments | $ 7,425 | ||
Interest Rate | 5.20% | ||
Equipment financed returned for credit | $ 33,075 | ||
Bonita Springs, FL [Member] | Mortgages [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 546,000 | $ 546,000 | |
Due | February 28, 2018 | February 28, 2018 | |
Payments | $ 4,550 | $ 4,550 | |
Bonita Springs, FL [Member] | Mortgages [Member] | Principal [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 27,300 | ||
Bonita Springs, FL [Member] | Mortgages [Member] | Accrued interest [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 6,122 | ||
Bonita Springs, FL [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mortgages [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest rate | 3.00% | 3.00% | |
Broadview, IL [Member] | Mortgages [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 980,000 | $ 980,000 | |
Due | May 29, 2020 | May 29, 2020 | |
Payments | $ 8,167 | $ 8,167 | |
Principal Balance | 490,000 | $ 490,000 | |
Broadview, IL [Member] | Mortgages [Member] | Principal [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 49,000 | ||
Broadview, IL [Member] | Mortgages [Member] | Accrued interest [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 16,213 | ||
Broadview, IL [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mortgages [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest rate | 2.75% | 2.75% | |
Notes Payable to Banks [Member] | Term Loan #1 [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 1,200,000 | $ 1,200,000 | |
Secured by | secured by the Company's tangible and intangible personal property | secured by the Company's tangible and intangible personal property | |
Interest rate | 4.50% | 4.50% | |
Payments | $ 66,667 | $ 66,667 | |
Dated | Aug. 5, 2016 | Aug. 5, 2016 | |
Due | February 5, 2018 | February 5, 2018 | |
Principal transferred from Line of Credit | $ 1,200,000 | ||
Notes Payable to Banks [Member] | Term Loan #1 [Member] | Principal [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 114,033 | ||
Notes Payable to Banks [Member] | Term Loan #1 [Member] | Accrued interest [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 829 | ||
Notes Payable, Other Payables [Member] | Term Loan #2 [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 1,500,000 | ||
Secured by | the Company's tangible and intangible personal property | ||
Payments | $ 83,333 | ||
Due | August 28, 2019 | ||
Notes Payable, Other Payables [Member] | Term Loan #2 [Member] | Principal [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 499,998 | ||
Notes Payable, Other Payables [Member] | Term Loan #2 [Member] | Accrued interest [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 15,767 | ||
Notes Payable, Other Payables [Member] | Oasis Sales and Marketing, LLC [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | 100,000 | ||
Payments | $ 4,297 | ||
Dated | Jan. 1, 2017 | ||
Interest Rate | 2.91% | ||
Payment term | monthly beginning February 15, 2017 for twenty-four months until paid in full | ||
Notes Payable, Other Payables [Member] | Oasis Sales and Marketing, LLC [Member] | Principal [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 4,291 | ||
Convertible Debt [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 20,000 | ||
Interest Rate | 1.90% | 1.90% | |
Convertible Notes Payable [Member] | Oasis Sales and Marketing, LLC [Member] | Accrued interest [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 2 | ||
Accrued interest [Member] | Notes Payable to Banks [Member] | Artisan Equipment Loan [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 11,506 | ||
Principal [Member] | Notes Payable to Banks [Member] | Artisan Equipment Loan [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 5,114 | ||
Three Months Ended September 30, 2018 Payments [Member] | Convertible Debt [Member] | Accrued interest [Member] | |||
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest | $ 186 |
13. NOTES PAYABLE AND NOTES P_5
13. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of Maturities of Long-term Debt - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Maturities of Long-term Debt [Abstract] | ||
2020 | $ 901,728 | |
2021 | 132,757 | |
2022 | 136,911 | |
2023 | 127,634 | |
2024 | 66,745 | |
Thereafter | 0 | |
Total | $ 1,365,775 | $ 2,125,102 |
14. LEASE LIABILITIES - FINAN_3
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligation under a lease agreement | $ 118,564 | $ 0 |
Current portion | 20,605 | 0 |
Long-term maturities | 97,959 | 0 |
Finance Lease #1 [Member] | ||
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligation under a lease agreement | 1,722 | 0 |
Finance Leae #2 [Member] | ||
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligation under a lease agreement | $ 116,842 | $ 0 |
14. LEASE LIABILITIES - FINAN_4
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Finance Lease #1 [Member] | |
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | |
Payable | thirty-six monthly installments of $579 |
Interest Rate | 4.83% |
Principal Payments | $ 3,939 |
Interest Payments | $ 89 |
Finance Leae #2 [Member] | |
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | |
Payable | seventy monthly installments of $2,326 |
Interest Rate | 8.33% |
Principal Payments | $ 8,869 |
Interest Payments | 5,085 |
Original Amount | $ 128,587 |
14. LEASE LIABILITIES - FINAN_5
14. LEASE LIABILITIES - FINANCING LEASES (Details) - Finance Lease, Liability, Maturity | Jun. 30, 2019USD ($) |
Finance Lease, Liability, Maturity [Abstract] | |
2020 | $ 20,605 |
2021 | 20,517 |
2022 | 22,294 |
2023 | 24,224 |
2024 | 26,321 |
Thereafter | 4,603 |
Total | $ 118,564 |
15. RELATED PARTY TRANSACTIONS
15. RELATED PARTY TRANSACTIONS (Details) | Mar. 05, 2018USD ($)shares | Jan. 31, 2019USD ($)$ / sharesshares | May 31, 2018USD ($)shares | Dec. 31, 2017shares | Jun. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2018$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017$ / sharesshares |
Each Independent Director [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | $ | $ 54,036 | |||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 97,084 | |||||||||
Number of Directors | 2 | |||||||||
Independent Directors [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Number of Directors | 2 | |||||||||
Director, Cash Retainer (in Dollars) | $ | $ 45,000 | |||||||||
Cash Retainer, per Year (in Dollars) | $ | $ 30,000 | |||||||||
Principal Accounting Officer and Chief Information Officer [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Number of Directors | 4 | |||||||||
Director [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | $ | $ 38,550 | $ 77,100 | ||||||||
Chief Executive Officer [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Shares Deemed Issued from Exercise of Options | 55,192 | |||||||||
Payments for Repurchase of Other Equity (in Dollars) | $ | $ 45,000 | $ 45,000 | ||||||||
President [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Shares Deemed Issued from Exercise of Options | 60,749 | |||||||||
Payments for Repurchase of Other Equity (in Dollars) | $ | $ 45,000 | $ 45,000 | ||||||||
Executive Officer [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 46,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | These shares will vest at a rate of one-sixth per month over a period of six months | |||||||||
Executive Officer [Member] | Reduction in Executives Salary [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Related Party Transaction, Amounts of Transaction (in Dollars) | $ | $ 15,000 | |||||||||
Options at $0.62 [Member] | Director [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 90,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.62 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Options at $0.85 [Member] | Director [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 135,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.85 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Options at $1.20 [Member] | Director [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 225,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.20 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Options at $0.350 [Member] | Director [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.35 | |||||||||
Payments for Repurchase of Other Equity (in Dollars) | $ | $ 77,000 | |||||||||
Options at $0.350 [Member] | Chief Executive Officer [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.35 | |||||||||
Options at $0.350 [Member] | President [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.35 | |||||||||
Options at $0.570 [Member] | Chief Executive Officer [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.57 | |||||||||
Options at $0.570 [Member] | President [Member] | ||||||||||
15. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.57 |
16. COMMITMENTS AND CONTINGEN_2
16. COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jan. 23, 2018 | |
16. COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Liability, Current | $ 519,108 | $ 519,108 | $ 472,876 | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | 247,600 | 247,600 | 357,600 | ||
Payment for Contingent Consideration Liability, Financing Activities | 0 | $ 189,000 | |||
Payments to Acquire Intangible Assets | 23,500 | $ 0 | |||
Licensing Agreements [Member] | |||||
16. COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items] | |||||
Payments to Acquire Intangible Assets | $ 50,000 | ||||
Royalty Rate | 5.00% | ||||
Other Commitment, Due in Next Twelve Months | 100,000 | $ 100,000 | |||
Other Commitment, Due in Second Year | 110,000 | 110,000 | |||
Other Commitment, Due in Third Year | 125,000 | 125,000 | |||
IGourmet, LLC [Member] | |||||
16. COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | 10,000 | 10,000 | 394,900 | $ 787,800 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (392,900) | ||||
Business Combination, Contingent Consideration, Liability, Current | 132,300 | 132,300 | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | 247,600 | 247,600 | |||
Oasis Sales and Marketing, LLC [Member] | |||||
16. COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | 400,000 | ||||
Business Combination, Contingent Consideration, Liability, Current | 200,000 | 200,000 | |||
Payment for Contingent Consideration Liability, Financing Activities | 189,000 | ||||
Other Noncash Income | 11,000 | ||||
Mouth Foods [Member] | |||||
16. COMMITMENTS AND CONTINGENT LIABILITIES (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | $ 240,576 | ||||
Business Combination, Contingent Consideration, Liability, Current | 186,808 | 186,808 | |||
Payment for Contingent Consideration Liability, Financing Activities | $ 28,461 | $ 118,189 |
17. EQUITY (Details)
17. EQUITY (Details) - USD ($) | Mar. 05, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
17. EQUITY (Details) [Line Items] | ||||||||
Common Stock Issued, but not Outstanding (in Shares) | 2,587,580 | 2,587,580 | ||||||
Treasury Stock, Common, Shares (in Shares) | 2,373,171 | 2,373,171 | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture (in Shares) | 131,136 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ (93,666) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 100,000 | |||||||
Proceeds from Issuance or Sale of Equity | $ 35,000 | |||||||
Payments for Repurchase of Other Equity | 0 | 167,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 9,462 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 13,946 | |||||||
Payments for Repurchase of Common Stock | $ 0 | $ 24,057 | ||||||
Share Price (in Dollars per share) | $ 0.55 | $ 0.55 | $ 0.76 | |||||
Share-based Payment Arrangement, Expense | $ 196,252 | 23,408 | ||||||
Share-based Payment Arrangement, Option [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 4,750 | |||||||
Share-based Payment Arrangement, Expense | $ 38,550 | $ 675 | $ 77,100 | $ 9,462 | ||||
Board Members and Employees [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture (in Shares) | 221,960 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | $ 119,151 | |||||||
Chief Executive Officer [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Shares Deemed Issued from Exercise of Options (in Shares) | 55,192 | |||||||
Payments for Repurchase of Other Equity | $ 45,000 | 45,000 | ||||||
President [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Shares Deemed Issued from Exercise of Options (in Shares) | 60,749 | |||||||
Payments for Repurchase of Other Equity | $ 45,000 | $ 45,000 | ||||||
Seven Employees for Previously Accrued Bonuses [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture (in Shares) | 131,136 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 93,666 | |||||||
Repurchase of Employee Stock [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Stock Repurchased During Period, Shares (in Shares) | 2,000 | |||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $ 0.97 | |||||||
Payments for Repurchase of Common Stock | $ 1,940 | |||||||
Repurchase of Open Market Stock [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Stock Repurchased During Period, Shares (in Shares) | 27,800 | |||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $ 0.79 | |||||||
Payments for Repurchase of Common Stock | $ 22,117 | |||||||
Options at $0.350 [Member] | Chief Executive Officer [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.350 [Member] | President [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.570 [Member] | Chief Executive Officer [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.57 | |||||||
Options at $0.570 [Member] | President [Member] | ||||||||
17. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.57 |
17. EQUITY (Details) - Schedul
17. EQUITY (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - Share-based Payment Arrangement, Option [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of options outstanding (in Shares) | 2,675,000 | 1,050,000 |
Weighted average remaining contractual life | 3 years 244 days | |
Weighted average exercise price of options outstanding | $ 1.26 | $ 1.80 |
Number of options exercisable (in Shares) | 425,000 | |
Weighted average exercise price of options exercisable | $ 1.28 | |
Options at $0.62 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.62 | |
Number of options outstanding (in Shares) | 360,000 | |
Weighted average remaining contractual life | 4 years 186 days | |
Weighted average exercise price of options outstanding | $ 0.62 | |
Number of options exercisable (in Shares) | 30,000 | |
Weighted average exercise price of options exercisable | $ 0.62 | |
Options at $0.75 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.75 | |
Number of options outstanding (in Shares) | 50,000 | |
Weighted average remaining contractual life | 2 years 186 days | |
Weighted average exercise price of options outstanding | $ 0.75 | |
Number of options exercisable (in Shares) | 0 | |
Weighted average exercise price of options exercisable | $ 0.75 | |
Options at $0.85 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.85 | |
Number of options outstanding (in Shares) | 540,000 | |
Weighted average remaining contractual life | 4 years 186 days | |
Weighted average exercise price of options outstanding | $ 0.85 | |
Number of options exercisable (in Shares) | 45,000 | |
Weighted average exercise price of options exercisable | $ 0.85 | |
Options at $0.95 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.95 | |
Number of options outstanding (in Shares) | 50,000 | |
Weighted average remaining contractual life | 2 years 186 days | |
Weighted average exercise price of options outstanding | $ 0.95 | |
Number of options exercisable (in Shares) | 0 | |
Weighted average exercise price of options exercisable | $ 0.95 | |
Options at $1.10 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1.10 | |
Number of options outstanding (in Shares) | 75,000 | |
Weighted average remaining contractual life | 1 year 317 days | |
Weighted average exercise price of options outstanding | $ 1.10 | |
Number of options exercisable (in Shares) | 75,000 | |
Weighted average exercise price of options exercisable | $ 1.10 | |
Options at $1.20 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1.20 | |
Number of options outstanding (in Shares) | 900,000 | |
Weighted average remaining contractual life | 4 years 186 days | |
Weighted average exercise price of options outstanding | $ 1.20 | |
Number of options exercisable (in Shares) | 75,000 | |
Weighted average exercise price of options exercisable | $ 1.20 | |
Options at $1.38 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1.38 | |
Number of options outstanding (in Shares) | 100,000 | |
Weighted average remaining contractual life | 153 days | |
Weighted average exercise price of options outstanding | $ 1.38 | |
Number of options exercisable (in Shares) | 100,000 | |
Weighted average exercise price of options exercisable | $ 1.38 | |
Options at $1.50 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1.50 | |
Number of options outstanding (in Shares) | 125,000 | |
Weighted average remaining contractual life | 2 years 186 days | |
Weighted average exercise price of options outstanding | $ 1.50 | |
Number of options exercisable (in Shares) | 0 | |
Weighted average exercise price of options exercisable | $ 1.50 | |
Options at $1.90 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1.90 | |
Number of options outstanding (in Shares) | 100,000 | |
Weighted average remaining contractual life | 153 days | |
Weighted average exercise price of options outstanding | $ 1.90 | |
Number of options exercisable (in Shares) | 100,000 | |
Weighted average exercise price of options exercisable | $ 1.90 | |
Options at $2.00 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 2 | |
Number of options outstanding (in Shares) | 125,000 | |
Weighted average remaining contractual life | 2 years 186 days | |
Weighted average exercise price of options outstanding | $ 2 | |
Number of options exercisable (in Shares) | 0 | |
Weighted average exercise price of options exercisable | $ 2 | |
Options at $2.50 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 2.50 | |
Number of options outstanding (in Shares) | 125,000 | |
Weighted average remaining contractual life | 2 years 186 days | |
Weighted average exercise price of options outstanding | $ 2.50 | |
Number of options exercisable (in Shares) | 0 | |
Weighted average exercise price of options exercisable | $ 2.50 | |
Options at $3.00 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 3 | |
Number of options outstanding (in Shares) | 125,000 | |
Weighted average remaining contractual life | 2 years 186 days | |
Weighted average exercise price of options outstanding | $ 3 | |
Number of options exercisable (in Shares) | 0 | |
Weighted average exercise price of options exercisable | $ 3 |
17. EQUITY (Details) - Sched_2
17. EQUITY (Details) - Schedule of share-based compensation, stock options, activity - Share-based Payment Arrangement, Option [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
17. EQUITY (Details) - Schedule of share-based compensation, stock options, activity [Line Items] | |
Options Outstanding | shares | 1,050,000 |
Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 1.80 |
Options exercisable at June 30, 2019 | shares | 425,000 |
Options exercisable at June 30, 2019 | $ / shares | $ 1.28 |
Options Issued | shares | 1,800,000 |
Options Issued, Weighted Average Exercise Price | $ / shares | $ 0.98 |
Options Exercised | shares | 0 |
Options Exercised, Weighted Average Exercise Price | $ / shares | $ 0 |
Options Forfeited or expired | shares | (175,000) |
Options Forfeited or expired, Weighted Average Exercise Price | $ / shares | $ 1.53 |
Options Outstanding | shares | 2,675,000 |
Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 1.26 |
17. EQUITY (Details) - Fair Va
17. EQUITY (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques - Minimum [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Volatility | 59.40% |
Dividends | 0.00% |
Risk-free interest rates | 2.49% |
Term (years) | 5 years |
18. SUBSEQUENT EVENTS (Details)
18. SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Aug. 09, 2019USD ($)aft² | Jul. 31, 2019USD ($)shares | Jul. 24, 2019$ / sharesshares | Jul. 23, 2019USD ($)$ / sharesshares |
18. SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | shares | 9,524 | |||
Stock Issued During Period, Value, New Issues | $ | $ 5,429 | |||
Area of Real Estate Property | ft² | 200,000 | |||
Area of Land | a | 15 | |||
Payments to Acquire Property, Plant, and Equipment | $ | $ 4,500,000 | |||
Property, Plant, and Equipment, Additional Disclosures | Company receiving a loan for not less than 85% of the purchase price at a rate not above 6% and not less than a 20-year amortization period.  The purchase is also subject to a 45-day review period in which, if the Company determines that the property is unacceptable, the Company can terminate the agreement at its sole and absolute discretion | |||
Director [Member] | ||||
18. SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 50,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | exercisable for three years | |||
Option exercise price | $ / shares | $ 1.20 | |||
Affiliated Entity [Member] | ||||
18. SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | shares | 349,650 | |||
Proceeds from Issuance of Common Stock | $ | $ 250,000 | |||
Sale of Stock, Price Per Share | $ / shares | $ 0.715 |