Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 12, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Innovative Food Holdings Inc | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 36,427,354 | ||
Entity Public Float | $ 22,515,644 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000312257 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 4,759,817 | $ 5,133,435 |
Accounts receivable, net | 3,039,756 | 2,042,505 |
Inventory | 2,301,377 | 937,962 |
Notes receivable | 0 | 325,500 |
Other current assets | 144,301 | 86,730 |
Total current assets | 10,245,251 | 8,526,132 |
Property and equipment, net | 2,456,610 | 1,955,250 |
Investments | 339,525 | 201,525 |
Other amortizable intangible assets, net | 1,282,855 | 968,916 |
Goodwill and other unamortizable intangible assets | 3,058,708 | 368,000 |
Total assets | 17,382,949 | 12,019,823 |
Current liabilities | ||
Accounts payable and accrued liabilities | 3,689,868 | 1,836,559 |
Accrued interest | 16,402 | 15,860 |
Deferred revenue | 559,315 | 0 |
Notes payable - current portion | 928,857 | 346,855 |
Contingent liability - current portion | 472,876 | 200,000 |
Total current liabilities | 5,667,318 | 2,399,274 |
Contingent liability - long-term | 357,600 | 200,000 |
Note payable - long term portion | 1,196,245 | 866,010 |
Total liabilities | 7,221,163 | 3,465,284 |
Stockholders' equity | ||
Common stock: $0.0001 par value; 500,000,000 shares authorized; 36,296,218 and 36,080,519 shares issued, and 33,708,638 and 33,509,407 shares outstanding at December 31, 2018 and 2017, respectively | 3,627 | 3,605 |
Additional paid-in capital | 36,132,065 | 36,196,682 |
Treasury stock: 2,373,171 and 2,276,703 shares outstanding at December 31, 2018 and 2017, respectively | (1,016,370) | (992,313) |
Accumulated deficit | (24,957,536) | (26,653,435) |
Total stockholders' equity | 10,161,786 | 8,554,539 |
Total liabilities and stockholders' equity | $ 17,382,949 | $ 12,019,823 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 33,708,638 | 33,509,407 |
Common stock, shares issued | 36,296,218 | 36,080,519 |
Treasury stock, shares | 2,373,171 | 2,276,703 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 52,925,526 | $ 41,244,717 |
Cost of goods sold | 36,841,530 | 27,619,026 |
Gross margin | 16,083,996 | 13,625,691 |
Selling, general and administrative expenses | 14,128,662 | 8,936,709 |
Total operating expenses | 14,128,662 | 8,936,709 |
Operating income | 1,955,334 | 4,688,982 |
Other income (expense:) | ||
Gain on settlement of contingent liability | (11,000) | 0 |
Interest expense, net | 115,435 | 159,720 |
Total other expense | 104,435 | 159,720 |
Net income before taxes | 1,850,899 | 4,529,262 |
Income tax expense | 155,000 | 0 |
Net income | $ 1,695,899 | $ 4,529,262 |
Net income per share - basic (in Dollars per share) | $ 0.05 | $ 0.15 |
Net income per share - diluted (in Dollars per share) | $ 0.05 | $ 0.15 |
Weighted average shares outstanding - basic (in Shares) | 33,983,620 | 29,846,136 |
Weighted average shares outstanding - diluted (in Shares) | 33,983,620 | 29,969,699 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 1,695,899 | $ 4,529,262 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,082,224 | 533,473 |
Stock based compensation | 67,405 | 439,774 |
Provision for doubtful accounts | 5,099 | 0 |
Gain on settlement of contingent liability | (11,000) | 0 |
Amortization of discount on notes payable | 0 | 185,018 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (821,735) | 0 |
Inventory and other current assets, net | (1,246,310) | (154,266) |
Accounts payable and accrued liabilities | 1,530,476 | (1,544,749) |
Deferred revenue | 328,145 | (504,110) |
Contingent liabilities | (69,424) | 0 |
Accrued liabilities - related party | 0 | (65,000) |
Net cash provided by operating activities | 2,560,779 | 3,419,402 |
Cash flows from investing activities: | ||
Cash related to the igourmet asset acquisition | (2,494,965) | 0 |
Cash related to the Mouth Foods asset acquisition | (208,355) | 0 |
Acquisition of property and equipment | (480,582) | (49,845) |
Cash paid in the acquisition of Oasis | 0 | (300,000) |
Investment in food related company | (138,000) | (325,500) |
Net cash used in investing activities | (3,321,902) | (675,345) |
Cash flows from financing activities: | ||
Purchase of stock options from officers, directors, and employees | (167,000) | (163,925) |
Common stock sold for exercise of warrants | 0 | 196,741 |
Cash received from exercise of stock options | 35,000 | 105,000 |
Cash paid in settlement of contingent liability - Oasis acquisition | (189,000) | 0 |
Borrowings on term loan | 1,500,000 | 0 |
Proceeds from line of credit | 391,558 | 0 |
Purchase of treasury stock | (24,057) | (505,660) |
Principal payments on debt | (1,147,533) | (997,544) |
Principal payments capital leases | (11,463) | (9,287) |
Net cash provided by (used in) financing activities | 387,505 | (1,374,675) |
(Decrease) increase in cash and cash equivalents | (373,618) | 1,369,382 |
Cash and cash equivalents at beginning of year | 5,133,435 | 3,764,053 |
Cash and cash equivalents at end of year | 4,759,817 | 5,133,435 |
Interest | 122,232 | 74,341 |
Taxes | 155,000 | 0 |
Common stock issued for conversion of note payable by related party | 0 | 164,650 |
Issuance of 200,000 shares of common stock pursuant to structured equity agreement | 0 | 200,000 |
Capital lease for purchase of fixed assets | $ 179,675,000,000 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Dec. 31, 2017shares | |
Issuance of shares of common stock pursuant to structured equity agreement | 200,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member]Cashless Exercise of Warrants [Member] | Common Stock [Member] | Additional Paid-in Capital [Member]Cashless Exercise of Warrants [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Cashless Exercise of Warrants [Member] | Total |
Balance at Dec. 31, 2016 | $ 2,528 | $ 33,974,470 | $ (174,949) | $ (31,182,697) | $ 2,619,352 | |||
Balance (in Shares) at Dec. 31, 2016 | 25,301,809 | 519,254 | ||||||
Common stock issued for exercise of warrants | $ 94 | $ 49 | $ (94) | 196,692 | $ 25 | $ 196,741 | ||
Common stock issued for exercise of warrants (in Shares) | 943,860 | 499,421 | ||||||
Issuance of restricted stock awards to employees, officers, and directors | $ 107 | (107) | ||||||
Issuance of restricted stock awards to employees, officers, and directors (in Shares) | 1,070,000 | 1,070,000 | ||||||
Issuance of common stock pursuant to structure equity agreement | $ 20 | 199,980 | $ 200,000 | |||||
Issuance of common stock pursuant to structure equity agreement (in Shares) | 200,000 | 200,000 | ||||||
Income (Loss) for the year | 4,529,262 | $ 4,529,262 | ||||||
Purchase of stock options from employees, officers, and directors | (163,925) | (163,925) | ||||||
Issuance of common stock to employees | $ 248 | (25,991) | (25,743) | |||||
Issuance of common stock to employees (in Shares) | 2,480,392 | |||||||
Issuance of shares for conversion of notes payable and accrued interest | $ 529 | 1,319,928 | 1,320,457 | |||||
Issuance of shares for conversion of notes payable and accrued interest (in Shares) | 5,285,027 | |||||||
Vesting of restricted stock units issued to employees, officers, and directors | 240,208 | 240,208 | ||||||
Acquisition of treasury shares | 311,704 | $ (817,364) | (505,660) | |||||
Acquisition of treasury shares (in Shares) | 1,757,450 | |||||||
Fair value of vested stock options issued to employees | 38,847 | 38,847 | ||||||
Shares issued for exercise of options | $ 30 | 104,970 | 105,000 | |||||
Shares issued for exercise of options, In Shares (in Shares) | 300,000 | |||||||
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 | ||||||
Income (Loss) for the year | 1,695,899 | 1,695,899 | ||||||
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 | |||||||
Acquisition of treasury shares | $ (24,057) | $ (24,057) | ||||||
Acquisition of treasury shares (in Shares) | 96,468 | 27,800 | ||||||
Fair value of vested stock options issued to employees | 67,405 | $ 67,405 | ||||||
Shares issued for exercise of options | $ 10 | 34,990 | $ 35,000 | |||||
Shares issued for exercise of options, In Shares (in Shares) | 100,000 | 100,000 | ||||||
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 |
1. SUMMARY OF SIGNIFICANT ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF 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.forethegourmet.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, 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. 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 affect on the Company’s financial statements. Disaggregation of Revenue The following table represents a disaggregation of revenue by from sales for the years ended December 31, 2018 and 2017: Year Ended December 31, 2018 2017 Specialty food service $ 41,713,775 $ 38,533,540 Ecommerce 9,038,357 518,774 National Brand Management 2,173,394 2,192,403 Total $ 52,925,526 $ 41,244,717 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. Selling, general, and administrative expenses We have included in selling, general, and administrative expenses all other costs which support the Company’s operations but which are not includable as a cost of sales. These include primarily payroll, facility costs such as rent and utilities, selling expenses such as commissions and advertising, amortization of intangible assets, depreciation, and other administrative costs including professional fees and costs associated with non-cash stock compensation. Advertising costs are expensed as incurred. Cash and Cash Equivalents Cash equivalents include all highly liquid debt instruments with original maturities of three months or less which are not securing any corporate obligations. Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. Accounts receivable are presented net of an allowance for doubtful accounts of $155,176 and $63,267 at December 31, 2018, and 2017, respectively. Property and Equipment Property and equipment are valued at cost. Depreciation is provided over the estimated useful lives up to five years using the straight-line method. Leasehold improvements are depreciated on a straight-line basis over the term of the lease. The estimated service lives of property and equipment are as follows: Computer Equipment 3 years Warehouse Equipment 5 years Office Furniture and Fixtures 5 years Vehicles 5 years Inventories Inventory is valued at the lower of cost or market and is determined by the first-in, first-out method. 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 shipped. The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance acquired as of January 23, 2018 $ 231,169 Cash payments received 603,109 Net sales recognized (274,963 ) Balance as of December 31, 2018 $ 559,315 Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. Fair Value of Financial Instruments The carrying amount of the Company’s cash and cash equivalents, accounts receivable, notes payable, line of credit, accounts payable and accrued expenses, none of which is held for trading, approximates their estimated fair values due to the short-term maturities of those financial instruments. The Company adopted ASC 820-10, “Fair Value Measurements” (SFAS 157), which provides a framework for measuring fair value under GAAP. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Long-Lived Assets The Company reviews its property and equipment and any identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The test for impairment is required to be performed by management at least annually. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. Comprehensive Income ASC 220-10-15 “Reporting Comprehensive Income,” establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10-15 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. The Company does not have any items of comprehensive income in any of the periods presented. Cost Method Investments The Company has made several investments in early stage private food related companies and are accounting for these investments under the cost method. Basic and Diluted Income 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 December 31, 2018: Convertible notes and interest At December 31, 2018 there were no convertible notes outstanding. Warrants At December 31, 2018 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: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.75 50,000 3.00 $ 0.95 50,000 3.00 $ 1.10 75,000 2.37 $ 1.31 100,000 0.01 $ 1.38 100,000 0.92 $ 1.50 125,000 3.00 $ 1.90 175,000 0.48 $ 2.00 125,000 3.00 $ 2.50 125,000 3.00 $ 3.00 125,000 3.00 $ 2.05 1,050,000 2.05 In 2018, an aggregate of 115,941 shares were issued upon the option exercises in December 2017 described below. RSUs During the twelve months ended December 31, 2017, the Company cancelled all outstanding restricted stock units (“RSUs”) and replaced them with common stock or restricted stock awards; see note 15. At December 31, 2018, there are no RSUs outstanding. Restricted Stock Awards No Restricted stock awards vested in 2018. At December 31, 2018 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. Dilutive shares at December 31, 2017: Convertible notes and interest At December 31, 2017 there were no convertible notes outstanding. Warrants At December 31, 2017 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: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.57 25,000 0.02 $ 1.04 200,000 2.83 $ 1.31 200,000 0.50 $ 1.38 100,000 1.92 $ 1.42 100,000 0.47 $ 1.43 50,000 1.00 $ 1.46 100,000 0.50 $ 1.60 310,000 0.01 $ 1.70 75,000 0.28 $ 1.90 175,000 1.48 $ 2.00 50,000 0.28 $ 2.40 20,000 0.41 $ 2.50 37,500 0.28 $ 3.40 30,000 0.41 $ 3.50 37,500 0.28 1,510,000 0.89 RSUs During the twelve months ended December 31, 2017, the Company cancelled all outstanding restricted stock units (“RSUs”) and replaced them with common stock or restricted stock awards; see note 15. At December 31, 2017, there are no RSUs outstanding. We recognized stock-based compensation expense for RSUs in a straight-line manner over the vesting period of the grant. This resulted in stock-based compensation expense of $0 for RSUs during the year ended December 31, 2017. Restricted Stock Awards During the year ended December 31, 2017, the Company cancelled unvested RSUs representing 1,370,000 shares of common stock and replaced them with restricted stock awards also representing 1,370,000 shares of common stock. The restricted stock awards vested over the same vesting period and under the same terms as the RSUs they replaced. Restricted stock awards representing 1,070,000 shares were vested at December 31, 2017; there are a total of 300,000 unvested restricted stock awards remaining. 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. During the year ended December 31, 2017, the Company recognized expense of $240,208 for the vesting of restricted stock awards, the same amount of expense that would have been recognized had the RSUs not been replaced by the restricted stock awards. 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 December 31, 2018 and 2017, the Company had cash deposits in excess of applicable government mandated insurance limits in the amount of $3,180,000 and $3,470,000, respectively. At December 31, 2018 and 2017, trade receivables from the Company’s largest customer amounted to 39% and 48%, respectively, of total trade receivables. Stock-based Compensation We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted. The Black-Scholes option valuation model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We used the Company’s historical volatility to estimate expected stock price volatility. The risk-free rate assumption was based on United States Treasury instruments whose terms were consistent with the expected term of the stock option. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The value of options is amortized pro rata over the vesting period of the option. Options expense charged to operations during the twelve months ended December 31, 2018 and 2017 are summarized in the table below: December 31, 2018 2017 Option expense $ 19,098 $ 38,847 During the year ended December 31, 2018, the Company also granted 146,000 shares of restricted stock to an employee with the following vesting terms: 33,334 shares vest on December 31, 2019; 33,333 shares vest on December 31, 2020; and 33,333 shares vest on December 31, 2021. These shares were valued at the market price of $0.54 on the date of the grant. A total of $3,779 was charged to operations during the year ended December 31, 2018. During the year ended December 31, 2018, the Company also granted 46,000 restricted shares of restricted common stock to an officer and board member which vested December 31, 2018. The Company valued these shares at the market price of $0.97 at the date of the grant, and charged the amount of $44,528 to operations during the year ended December 31, 2018. Reclassifications Certain reclassifications have been made to conform prior period data to the current presentation. New 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. February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will largely remain unchanged and shall continue to depend on its classification as a finance or operating lease. We have performed a comprehensive review in order to determine what changes were required to support the adoption of this new standard. We will adopt the ASU and related amendments on January 1, 2019 and expects to elect certain practical expedients permitted under the transition guidance. We will elect the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. Under the new guidance, the majority of our leases will continue to be classified as operating. During the first quarter of 2019, we will complete our implementation of our processes and policies to support the new lease accounting and reporting requirements. Based on our lease portfolio as of January 1, 2019, we preliminarily estimate the impact of adoption ASU 2016-02 to increase both our total assets and total liabilities in the range of $500,000 to $700,000. The adoption of this ASU is not expected to have a significant impact on our Consolidated Statements of Operations or Cash Flows. We continue to finalize the implementation of the new processes and the assessment of the impact of this adoption on our consolidated financial statements; therefore, the preliminary estimated impacts disclosed can change, and the final impact will be known once the adoption is completed during the first quarter of 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, ASU 2014-09 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for fiscal years beginning after December 15, 2017. The new revenue standard is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The implementation of this standard did not have a material effect on our results of operations. 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. ACQUISITION
2. ACQUISITION | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 2. 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. During the year ended December 31, 2018, the Company amortized the amount of $26,262 in connection with the intangible assets and recorded depreciation in the amount of $3,666 in connection with the tangible assets above. 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 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. See note 14. 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 December 31, 2018 and 2017. These combined results are not necessarily indicative of the results that may have been achieved had the companies always been combined. 12 months Ended December 31 2018, 2018 2017 (unaudited) (unaudited) Revenues $ 53,303,176 $ 49,973,916 Net Income $ 1,706,253 $ 3,348,889 Basic net income per share $ 0.05 $ 0.12 Diluted net income per share $ 0.05 $ 0.12 Weighted average shares – basic 33,983,620 29,846,136 Weighted average shares – diluted 33,983,620 29,969,699 Oasis Sales and Marketing, LLC Pursuant to the Oasis Asset Purchase Agreement, effective January 1, 2017, the Company, through its wholly-owned subsidiary, Oasis Sales Corp., purchased certain assets of Oasis Sales and Marketing, L.L.C., a California limited liability company. The purchase price consisted of $300,000 cash; a two-year promissory note in the amount of $100,000, and a structured equity instrument (the “SEI”) in the amount of $200,000. In addition, the Company is contingently liable for certain performance-based payments over the twenty-four months following the acquisition date up to a maximum of $400,000 (“Earnout Payments”). On May 23, 2018, the Company paid the amount of $189,000 related to the Earnout Payment, and recorded a gain in the amount of $11,000. The amount of $200,000 related to the second Earnout Payment is carried as a current liability on the Company’s balance sheet at December 31, 2018. The second Earnout Payment has been earned and is expected to be paid in the second quarter of 2019. The SEI was payable in cash or shares of the Company’s stock at the Company’s option, at any time, or is automatically payable via the issuance of 200,000 shares of the Company’s stock if the Company’s shares close above $1.00 for ten consecutive days. This requirement was met on November 28, 2017, and on that date the $200,000 SEI liability was converted to 200,000 shares of common stock. At the time of acquisition, the Company believed it likely that the Earnout Payments would be made, and accordingly recorded the entire amount of $400,000 as a contingent liability on its balance sheet as of the acquisition date. The amount of $800,000 was allocated to customer lists, an intangible asset with a useful life of 60 months; and the amount of $200,000 was allocated to a non-compete agreement, an intangible asset with a useful life of 48 months. A total of $210,000 was amortized to operations during each of the years ended December 31, 2018 and 2017. |
3. ACCOUNTS RECEIVABLE
3. ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. ACCOUNTS RECEIVABLE At December 31, 2018 and 2017, accounts receivable consists of: 2018 2017 Accounts receivable from customers $ 3,194,932 $ 2,105,772 Allowance for doubtful accounts (155,176 ) (63,267 ) Accounts receivable, net $ 3,039,756 $ 2,042,505 |
4. INVENTORY
4. INVENTORY | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4. INVENTORY Inventory consists of specialty food products. At December 31, 2018 and 2017, inventory consisted of the following: 2018 2017 Finished Goods Inventory $ 2,301,377 $ 937,962 |
5. NOTES RECEIVABLE
5. NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Assets [Text Block] | 5. NOTES RECEIVABLE During the year ended December 31, 2017, the Company’s wholly-owned subsidiary Food Funding, LLC loaned the amount of $325,500 to iGourmet, LLC pursuant to a note agreement (the “iGourmet Note Receivable”). The iGourmet Note Receivable bears interest at the rate of 9% per annum, and is due April 1, 2018. During the year ended December 31, 2017, the Company recorded interest income in the amount of $5,238 in the iGourmet Note Receivable. Subsequent to December 31, 2017, the Company acquired substantially all of the assets and certain liabilities of iGourmet LLC; see Note 2. |
6. PROPERTY AND EQUIPMENT
6. PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Land $ 385,523 $ 385,523 Building 1,326,165 1,326,165 Computer and Office Equipment 523,853 497,189 Warehouse Equipment 302,622 226,953 Furniture and Fixtures 889,073 473,572 Vehicles 220,812 40,064 Total before accumulated depreciation 3,648,048 2,949,466 Less: accumulated depreciation (1,191,438 ) (994,216 ) Total 2,456,610 $ 1,955,250 Depreciation and amortization expense for property and equipment amounted to $197,222 and $162,705 for the years ended December 31, 2018 and 2017, respectively. |
7. INVESTMENTS
7. INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | 7. 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 December 31, 2018, the Company has investments in five food related companies in the aggregate amount of $339,525. The Company does not have significant influence over the operations of these companies. |
8. INTANGIBLE ASSETS
8. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 8. INTANGIBLE ASSETS The Company acquired certain intangible assets pursuant to the acquisition of Artisan, OFB, Oasis, and the acquisition of certain assets of Haley, iGourmet LLC and Mouth Foods, Inc. The following is the net book value of these assets: December 31, 2018 Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (362,913 ) $ 142,987 Customer Relationships - amortizable 3,068,034 (1,928,175 ) 1,139,859 Trade Name 1,532,822 - 1,532,822 Internally Developed Technology 875,643 - 875,643 Goodwill 650,252 - 650,252 Total $ 6,632,651 $ (2,291,088 ) $ 4,341,563 December 31, 2017 Accumulated Gross Amortization Net Non-Compete Agreement – amortizable $ 444,000 $ (294,000 ) $ 150,000 Customer Relationships - amortizable 1,930,994 (1,112,078 ) 818,916 Trade Name 217,000 - 217,000 Goodwill 151,000 - 151,000 Total $ 2,742,994 $ (1,406,078 ) $ 1,336,916 Total amortization expense charged to operations for the year ended December 31, 2018 and 2017 was $885,002 and $370,770, respectively. Amortization of finite life intangible assets as of December 31, 2018 is as follows: 2019 723,791 2020 525,046 2021 34,009 2022 and thereafter - Total $ 1,282,846 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 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 and 2017 determined that there was no impairment to goodwill assets related to the Artisan and Haley transactions. |
9. ACCOUNTS PAYABLE AND ACCRUED
9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at December 31, 2018 and December 31, 2017 are as follows: December 31, 2018 December 31, 2017 Trade payables and accrued expenses $ 3,425,178 $ 1,652,681 Accrued payroll and commissions 264,690 183,878 Total 3,689,868 $ 1,836,559 |
10. ACCRUED INTEREST
10. ACCRUED INTEREST | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | 10. ACCRUED INTEREST 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 $119,791. At December 31, 2017, accrued interest on a note outstanding was $15,860. During the twelve months ended December 31, 2017, the Company paid cash for interest in the aggregate amount of $74,178. |
11. REVOLVING CREDIT FACILITIES
11. REVOLVING CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Short-term Debt [Text Block] | 11. REVOLVING CREDIT FACILITIES December 30, 2018 December 31, 2017 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 12). $ - $ - 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. $ - $ - Total $ - $ - |
12. NOTES PAYABLE AND NOTES PAY
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES December 31, 2018 December 31, 2017 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. See note 20. 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. $ - $ 114,033 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 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 twelve months ended December 31, 2018, the Company made payments of principal and interest on this note in the amounts of $50,050 and $13,083, respectively. 232,050 282,100 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 twelve months ended December 31, 2017, the Company made payments of principal and interest on this note in the amounts of $98,000 and $30,508, respectively. During the twelve months ended December 31, 2018, the Company made payments of principal and interest on this note in the amounts of $98,000 and $33,055, respectively. 628,833 726,833 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 twelve months ended December 31, 2018, the Company made payments of principal and interest on this note in the amounts of $833,330 and $72,017, respectively. 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%. Monthly payments in the amount of $7,425 including principal and interest are due April 22, 2019. The entire principal balance and all accrued interest is due on the maturity date of March 21, 2024. (see note 11). 391,558 December 31, 2018 December 31, 2017 A total of 16 convertible notes payable in the aggregate amount of $627,565 (the “Convertible Notes Payable”). Certain of the Convertible Notes Payable contain cross default provisions, and are secured by subordinated interest in a majority of the Company’s assets. The Convertible Notes Payable bear interest at the rate of 1.9% per annum; principal and accrued interest are convertible into common stock of the Company at a conversion price of $0.25 per share; however, the interest may be paid in cash by the Company and certain limited amounts of principle may also be prepaid in cash. Effective May 13, 2014, the due date of these notes was extended from May 15, 2014 to December 31, 2015, and a discount to the notes in the aggregate amount of $712,565 was recorded to recognize the value of the beneficial conversion feature embedded in the extension of the term of the notes. In March 2015 the notes were further extended to January 1, 2016. On September 30, 2015, notes in the amount of $627,565 were further extended to July 1, 2017, and a discount in the amount of $627,565 was recorded to recognize the value of the beneficial conversion featured embedded in the extension of the term of the notes. During the twelve months ended December 31, 2017, $0 of this discount was charged to operations. During the twelve months ended December 31, 2017, holders of the Convertible Notes Payable converted principal in the amount of $627,565 and accrued interest in the amount of $528,242 into an aggregate of 1,155,807 shares of common stock, and accrued interest in the amount of $86,089 was forgiven. The amount of $86,809 was recorded as a decrease in interest expense during the twelve months ended December 31, 2017. - - 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 each of the twelve months ended December 31, 2018 and 2017, the Company accrued interest in the amount of $372 and $372, respectively, on this note. 20,000 20,000 Unsecured note to Sam Klepfish for $164,650 which may not be prepaid without Mr. Klepfish’s consent, originally carrying an interest rate of 8% per annum and no due date. As of July 1, 2014, the interest rate was reduced to 1.9% and as of November 17, 2014 the interest rate was further reduced to 0%. During the three months ended December 31, 2015, interest in the amount of $54,150 was capitalized, and the aggregate principal amount of $164,650 was extended to July 1, 2017. This note and accrued interest are convertible into common stock of the Company at a conversion price of $0.25 per share. During the twelve months ended December 31, 2017, the entire principal balance of this note in the amount of $164,650 was converted into 658,600 shares of the Company’s common stock. - - 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 twelve months ended December 31, 2017, the Company made principal and interest payments on this note in the amount of $44,946 and $2,318, respectively. During the twelve months ended December 31, 2018, the Company made principal and interest payments on this note in the amount of $50,759 and $807, respectively. 4,291 55,054 Capital lease obligations under a lease agreement for a forklift payable in thirty-six monthly installments of $274 including interest at the rate of 4.46%. During the twelve months ended December 31, 2017, the Company made principal and interest payments on this lease obligation in the amounts of $3,093 and $195, respectively. During the twelve months ended December 31, 2018, the Company paid this lease in full by making principal and interest payments on this lease obligation in the amount of $2,685 and $55, respectively. - 2,685 December 31, 2018 December 31, 2017 Capital lease obligations 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 twelve months ended December 31, 2018, the Company made principal and interest payments on this lease obligation in the amounts of $6,499 and $434, respectively. 5,661 12,160 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 year ended December 31, 2018, the Company made principal and interest payments in the amount of $760 and $195, respectively, on this loan. 50,328 - Capital 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 twelve months ended December 31, 2018, the Company made principal and interest payments on this lease obligation in the amounts of $2,876 and $1,776, respectively. 125,711 Total $ 2,125,102 $ 1,212,865 Less: Discount - - Net $ 2,125,102 $ 1,212,865 Current maturities $ 928,857 $ 346,855 Long-term portion 1,196,245 866,010 Total $ 2,125,102 $ 1,212,865 For the Year Ended December 31, 2018 2017 Discount on Notes Payable amortized to interest expense: $ - $ 185,018 At December 31, 2018 and 2017, the Company did not have any unamortized discounts to notes. Aggregate maturities of long-term notes payable as of December 31, 2018 are as follows: For the twelve months ended December 31, 2019 930,299 2020 687,849 2021 163,121 2022 169,582 2023 174,251 Thereafter - Total $ 2,125,102 |
13. RELATED PARTY TRANSACTIONS
13. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 13. RELATED PARTY TRANSACTIONS For the year ended December 31, 2018: In January 2018, the Company issued 100,000 shares of common stock to a director for the exercise of options at a price of $0.35 per share. 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. In addition, in 2018, 55,192 shares were issued to the Company’s President upon the option exercises in December 2017, and 60,507 shares were issued to the Company’s Chief Executive Officer upon the exercises in December 2017, as described below. For the year ended December 31, 2017: The Company cancelled RSUs held by its Chief Executive Officer representing 1,382,540 shares of common stock, of which 700,000 were unvested and 682,540 were vested. In place of the 682,540 vested cancelled RSUs, the Company issued a net amount of 586,586 shares of common stock. The remaining 95,954 shares of the 682,540 cancelled vested RSUs were not issued and instead the cash value of those shares was held back by the Company to pay certain taxes related to the issuance. In addition, the 700,000 unvested RSUs were replaced with restricted stock awards under the same terms and conditions as the 700,000 RSUs. See note 16. The Company cancelled RSUs held by its President representing 1,724,532 shares of common stock, of which 490,000 were unvested and 1,234,532 were vested. In place of the 1,234,532 vested cancelled RSUs, the Company issued a net amount of 928,027 shares of common stock. The remaining 306,505 shares of the 1,234,532 cancelled vested RSUs were not issued and instead the cash value of those shares was held back by the Company to pay certain taxes related to the issuance. In addition, the 490,000 unvested RSUs were replaced with restricted stock awards under the same terms and conditions as the 490,000 RSUs. See note 16. The Company cancelled RSUs held by its two of its Directors representing 545,000 shares of common stock, of which 180,000 were unvested and 365,000 were vested. In place of the 365,000 vested cancelled RSUs, the Company issued 365,000 shares of common stock. In addition, the 180,000 unvested RSUs were replaced with restricted stock awards under the same terms and conditions as the 180,000 RSUs. See note 16. The Company’s Chief Executive Officer converted a note payable in the amount of $164,650 into 658,600 shares of common stock. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its President for $9,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 140,000 shares of the Company’s common stock from its President for $13,400 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 87,500 shares of the Company’s common stock from its Principal Accounting Officer for $8,125 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its Chief Executive Officer for $24,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its President for $24,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 200,000 shares of the Company’s common stock from two of its directors (100,000 from each director) for $48,000 ($24,000 to each director), which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from a director for $33,000, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. 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 amount due to the Company for these conversions 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. See note 16. 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 amount due to the Company for these conversions was extended to April 26, 2018. 60,507 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. See note 16. A Director exercised 100,000 options at a price of $0.35 per share. The amount due to the Company for these conversions was extended to April 26, 2018. See note 16. |
14. INCOME TAXES
14. INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 14. INCOME TAXES Deferred income taxes result from the temporary differences primarily attributable to amortization of intangible assets and debt discount and an accumulation of net operating loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in deferred tax assets are Federal and State net operating loss carryforwards of approximately $1.4 million, which will expire through 2038. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Due to significant changes in the Company’s ownership, the Company’s future use of its existing net operating losses may be limited. The provision (benefit) for income taxes for the years ended December 31, 2018 and 2017 consist of the following: 2018 2017 Current $ $ - Deferred - - Total $ - $ - The provision (benefit) for income taxes differs from the amount of income tax determined by applying the applicable statutory income tax rate of 27.6% and 39.6% for the December 31, 2018 and 2017, respectively, to the loss before taxes as a result of the following differences: 2018 2017 Income (loss) before income taxes $ 1,850,899 $ 4,529,262 Statutory tax rate 27.6 % 39.6 % Total tax at statutory rate 510,000 1,794,000 Temporary differences 53,000 255,000 Permanent difference – meals and entertainment 7,000 6,000 Permanent differences- non cash compensation, and discount amortization 18,000 256,700 Total 588,000 2,311,700 Changes in valuation allowance (588,000 ) (2,311,700 ) Income tax expense $ - $ - Deferred income taxes reflect the tax impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Deferred income taxes include the net tax effects of net operating loss (NOL) carryforwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2018 and 2017 significant components of the Company’s deferred tax assets are as follows: 2018 2017 Deferred Tax Assets (Liabilities): Net operating loss carryforwards $ 410,000 $ 997,500 Allowance for doubtful accounts 7,000 (7,100 ) Property and equipment (132,600 ) 38,000 ) Intangible assets (350,000 ) (154,800 ) Accrued officer compensation 18,700 18,700 Net deferred tax assets (liabilities) (46,900 ) 892,300 Valuation allowance 46,900 (892,300 ) Net deferred tax assets (liabilities) $ - $ - The Company’s tax returns for the previous three years remain open for audit by the respective tax jurisdictions. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act establishes new tax laws that affect 2018 and future years, including a reduction in the U.S. federal corporate income tax rate to 21%, effective January 1, 2018. For certain deferred tax assets and deferred tax liabilities, we had recorded a provisional decrease of $388,000, with a corresponding net adjustment to valuation allowance of $388,000 as of December 31, 2017. |
15. EQUITY
15. EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 15. EQUITY Common Stock At December 31, 2018 and 2017, a total of 2,587,580 and 2,491,112 shares, respectively, are deemed issued but not outstanding by the Company. Twelve months ended December 31, 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. 60,507 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 $19,098. The Company also recognized the fair value of stock grants to management and employees in the amount of $48,307. 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. The Company received for cancellation a share certificate representing 66,668 shares of common stock which the investor had lost. The Company retired these shares to treasury. Twelve months ended December 31, 2017: The Company issued 499,421 shares of common stock for cash of $196,741 pursuant to the exercise of warrants. The Company charged the amount of $240,208 to additional paid-in capital representing the vesting of restricted stock awards issued to officers. The Company issued 658,600 shares of common stock to its Chief Executive Officer for conversion of a note payable in the amount of $164,650. The Company issued 4,626,427 shares of common stock for the conversion of notes payable and accrued interest in the aggregate amount of $1,155,807. The Company issued a net amount of 2,410,392 shares of common stock (net of 623,813 shares held back by the Company to pay certain taxes owed related to the issuance) to employees, officers, and directors in satisfaction of the following obligations: vested RSUs representing 2,533,246 shares of common stock, and bonus shares and shares previously accrued representing 500,959 shares of common stock. The Company charged the amount of $33,453 to additional paid-in capital representing the value of these shares that had not been previously charged to operations. The Company issued 70,000 shares of common stock with a fair value of $33,600 to an employee as a bonus. The Company purchased options to purchase a total of 367,500 shares of common stock from two executive officers, and employee, and a board member for an aggregate $34,925 in cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company charged the amount of $34,925 to additional paid-in capital. The Company purchased options to purchase a total of 100,000 shares of common stock for $33,000 in cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company charged the amount of $33,000 to additional paid-in capital. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its Chief Executive Officer for $24,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its President for $24,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 200,000 shares of the Company’s common stock from two of its directors (100,000 from each director) for $48,000 ($24,000 to each director), which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company issued 250,000 shares of common stock in exchange for the cashless conversion of warrants. The aggregate par value of $25 was charged to additional paid-in capital on the Company’s balance sheet at December 31, 2017. The Company retired to treasury 642,688 shares of common stock pursuant to an agreement signed to acquire those shares. The Company also retired to treasury an aggregate of 37,000 shares of common stock purchased on the open market for cash of $18,592. The Company acquired 639,383 shares of common stock for cash of $235,000 and returned these shares to treasury. The Company also acquired an additional 438,379 shares of common stock for $252,068 and returned these shares to treasury. The Company issued a total of 1,070,000 shares of common stock to officers and directors pursuant to the vesting of restricted stock awards: 400,000 shares to its Chief Executive Officer; 400,000 shares to its President; and 90,000 shares to each of three directors. The Company issued 693,860 shares of common stock to an investor for the cashless conversion of warrants. The aggregate par value of $69 was charged to additional paid-in capital on the Company’s balance sheet at December 31, 2017. The Company issued 100,000 shares of common stock for cash of $35,000 pursuant to the exercise of stock options. The Company issued 200,000 shares of common stock for cash of $70,000 pursuant to the exercise of stock options. The Company issued 200,000 shares of common stock pursuant to the terms of a structured equity agreement related to the Oasis acquisition. See note 2. Treasury Stock At December 31, 2018 and 2017, the Company had 2,373,171 and 2,276,703 shares of treasury stock, respectively. Warrants The Company had no warrants outstanding at December 31, 2018 or 2017. Options Twelve months ended December 31, 2018: In May 2018, the Company issued the following options: - Options to purchase 75,000 shares of common stock at a price of $1.10 per share, vesting at a rate of on-sixth per month beginning June 1, 2018 and expiring May 14, 2021. In November 2018, the Company issued the following options: - Options to purchase 50,000 shares of common stock at a price of $0.75 per share, vesting on April 1, 2020 and expiring December 31, 2021; - Options to purchase 50,000 shares of common stock at a price of $0.95 per share, vesting on April 1, 2020 and expiring December 31, 2021; - Options to purchase 125,000 shares of common stock at a price of $1.50 per share, vesting on December 31, 2019 and expiring December 31, 2021; - Options to purchase 125,000 shares of common stock at a price of $2.00 per share, vesting on August 30, 2020 and expiring December 31, 2021; - Options to purchase 125,000 shares of common stock at a price of $2.50 per share, vesting on August 30, 2020 and expiring December 31, 2021; - Options to purchase 125,000 shares of common stock at a price of $3.00 per share, vesting on August 30, 2020 and expiring December 31, 2021; During the year ended December 31, 2018, an aggregate 1,135,000 options to purchase shares of common stock at a weighted average price of $1.51 expired. In 2018, an aggregate of 115,699 shares were issued upon the option exercises in December 2017 described below. Twelve months ended December 31, 2017: The Company acquired options to purchase 100,000 shares of the Company’s common stock from its President for $9,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 140,000 shares of the Company’s common stock from its President for $13,400 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 87,500 shares of the Company’s common stock from its Principal Accounting Officer for $8,125 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its Chief Executive Officer for $24,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from its President for $24,000 cash, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 200,000 shares of the Company’s common stock from two of its directors (100,000 from each director) for $48,000 ($24,000 to each director), which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. The Company acquired options to purchase 100,000 shares of the Company’s common stock from a director for $33,000, which was the difference between the exercise price of the options and the market price of the stock on the date of purchase. 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 amount due to the Company for these conversions was extended to April 26, 2018. A net number of 55,192 shares will be issued to the Chief Executive Officer, 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’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 amount due to the Company for these conversions was extended to April 26, 2018. A net number of 60,507 shares will be issued to the President, 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. A Director exercised 100,000 options at a price of $0.35 per share. The amount due to the Company for these conversions was extended to April 26, 2018. A net number of 0 shares will be issued to the Director, net of shares held back for the exercise price and for taxes, along with a cash payment of $77,000 as a cash-out amount. Also during the year, the following options expired: options to purchase 15,000 shares of the Company’s common stock at a price of $1.90 per share, and options to purchase 500,000 shares of the Company’s common stock at a price of $2.00 per share. 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 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 $ 0.75 50,000 3.00 $ 0.75 - $ - $ 0.95 50,000 3.00 $ 0.95 - $ - $ 1.10 75,000 2.37 $ 1.10 75,000 $ 1.10 $ 1.31 100,000 0.01 $ 1.31 100,000 $ 1.10 $ 1.38 100,000 0.92 $ 1.38 100,000 $ 1.38 $ 1.50 125,000 3.00 $ 1.50 - $ 1.90 175,000 0.48 $ 1.90 175,000 $ 1.90 $ 2.00 125,000 3.00 $ 2.00 - $ 2.50 125,000 3.00 $ 2.50 $ 3.00 125,000 3.00 $ 3.00 $ - 1,050,000 2.05 $ 1.80 450,000 $ 1.52 Transactions involving stock options are summarized as follows: Number of Shares Weighted Average Exercise Price Options outstanding at December 31, 2016 2,445,000 $ 1.01 Granted 950,000 1.55 Exercised (1,370,000 ) 0.38 Cancelled / Expired (515,000 ) 2.00 Options outstanding at December 31, 2017 1,510,000 $ 1.60 Granted 675,000 1.91 Exercised - - Cancelled / Expired (1,135,000 ) 1.51 Options outstanding at December 31, 2018 1,050,000 $ 1.80 Aggregate intrinsic value of options outstanding and exercisable at December 31, 2018 and 2017 was $0 and $15,500, 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 $0.58 and $1.19 as of December 31, 2018 and 2017, respectively, and the exercise price multiplied by the number of options outstanding. During the year ended December 31, 2018 and 2017, the Company charged $19,098 and $38,847, respectively, to operations related to recognized stock-based compensation expense for stock options. The exercise price grant dates in relation to the market price during 2018 and 2017 are as follows: 2018 2017 Exercise price lower than market price - - Exercise price equal to market price - - Exercise price exceeded market price $ 0.75 to 3.00 $ 1.04 to 1.38 As of December 31, 2018 and 2017, there were 600,000 and 200,000, respectively, non-vested options outstanding. Accounting for warrants and stock options The Company valued warrants and options using the Black-Scholes valuation model utilizing the following variables: December 31, December 31, 2018 2017 Volatility 43.0-48.1 % 47.3-56.9 % Dividends $ 0 0 Risk-free interest rates 2.67-2.91 % 0.87-2.0 % Term (years) 3.00-3.13 0.8-2.5 Restricted Stock Units (“RSUs”) There were no RSUs outstanding during the twelve months ended December 31, 2018. During the twelve months ended December 31, 2017, the Company cancelled all of its outstanding RSUs and issued the following: For vested RSUs representing 3,104,205 shares of common stock, the Company issued a net amount of 2,480,392 shares of restricted common stock (net of 623,813 shares held back by the Company to pay certain taxes owed related to the issuance); for unvested RSUs representing 1,370,000 shares of common stock, the Company issued 1,370,000 shares of restricted common stock under the same terms as the cancelled RSUs. 1,070,000 of the restricted stock awards vested on July 1, 2017, the same date at which the RSUs which they replaced would have vested. These 1,070,000 shares were issued during the twelve months ended December 31, 2017. The vesting for the remaining 300,000 restricted stock awards is contingent upon meeting certain price and volume conditions related to the Company’s stock; these conditions are the same conditions required for vesting of the cancelled RSUs. The Company charged the amount of $0 and $240,208, respectively, to operations during the twelve months ended December 31, 2017 representing the amortization of the cost of these restricted stock awards. The amounts charged to operations is the same amount that the Company would have charged for the RSUs that were cancelled had they not been cancelled. There was no RSUs expense during the twelve months ended December 31, |
16. COMMITMENTS AND CONTINGENCI
16. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 16. COMMITMENTS AND CONTINGENCIES 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. At December 31, 2018, the amount of $132,300 remains on the Company’s balance sheet as a current contingent liability, and $257,600 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 December 31, 2018, 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. Pursuant to the Mouth Foods LLC Asset Acquisition, the Company recorded contingent liabilities in the amount of $240,576. $140,576 is classified as a current contingent liability and $100,000 is classified as a non-current contingent liability at December 31, 2018. This amount relates 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. 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. PNC Bank, National Association v. The Fresh Diet, Inc. f/k/a YS Catering, LLP f/k/a YS Catering, Inc., et al. / Scher Zalman Duchman and Deborah L. Duchman v. Innovative Food Holdings, Inc., et al., Case No. 17-cv-21027-KMM, United States District Court, Southern District of Florida On July 7, 2017, Scher Zalman Duchman and Deborah L. Duchman (collectively, “Duchmans”) filed an amended complaint in the United States District Court for the Southern District of Florida seeking approximately $1 million in damages against Innovative Food Holdings, Inc., FD Acquisition Corp., and Sam Klepfish, IVFH’s CEO. The Duchmans, amongst other things, allege that defendants owed a fiduciary duty to the Duchmans to minimize the Duchmans’ own personal guarantees and personal obligations related to loans and other obligations incurred by a former subsidiary of the Company and that the Defendants did not fulfill that alleged fiduciary obligation. By Order dated March 22, 2018, the following causes of action were dismissed without prejudice: Count I, Breach of Fiduciary Duty; Count III, Unjust Enrichment; Count IV, Unjust Enrichment; and Count IX, Fraud in the Inducement. The Court further ordered Count XI, Punitive Damages, stricken from the Complaint and that all claims against Third Party Defendant FD Acquisition Corp. dismissed with prejudice. Discovery is ongoing, and IVFH will soon be filing a motion for summary judgment. The parties have scheduled required mediation. The court has provided a scheduled trial date. IVFH believes that this lawsuit is without merit and is an attempt by the Duchmans to drag IVFH into the Duchmans’ personal financial matters which are unrelated to IVFH. While IVFH intends to vigorously defend against this lawsuit, the outcome of this lawsuit cannot ultimately be predicted. On May 9, 2018, the parties reached a confidential settlement agreement and dismissal of all counts on terms favorable to IVFH. The court accepted the parties’ notice of settlement, dismissed the claims, retained jurisdiction to enforce the settlement, and closed the case as applied to IVFH. YS Catering Holdings, Inc., et al. vs. Attollo Partners LLC, Rajesh Rawal, Vojkan Dimitijevic, Asif Syed, Roy Heggland and Innovative Food Holdings, Inc., Case No. 2017-007504-CA-01, Eleventh Judicial Circuit in and for Miami-Dade County, Florida On March 26, 2018, YS Catering Holdings, Inc., et al., filed suit against Innovative Food Holdings, Inc. YS alleges claims against IVFH that are almost identical to ones pending in the PNC Bank vs. Fresh Diet, et al. federal court litigation (Case No. 17-cv-21027-KMM) in what we believe is an improper attempt at forum shopping. In addition, YS seeks injunctive relief with respect to the removal of certain trading restrictions and other restrictions on its restricted shares. IVFH intends to move to stay the case pending the outcome of the almost identical PNC federal court litigation involving YS’s principal Zalmi Duchman. Discovery in the case is ongoing. While IVFH intends to vigorously defend against this lawsuit, the outcome of this lawsuit cannot ultimately be predicted. On May 9, 2018, the parties reached a confidential settlement agreement and dismissal of all counts on terms favorable to IVFH. The parties have filed a notice of settlement and stipulation of dismissal. This case has been settled and all claims dismissed. |
17. MAJOR CUSTOMER
17. MAJOR CUSTOMER | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 17. MAJOR CUSTOMER The Company’s largest customer, U.S. Foods, Inc. and its affiliates, accounted for approximately 57% of total sales in the year ended December 31, 2018 and 72% of sales in the year ended December 31, 2017. A contract between our subsidiary, Food Innovations, and U.S. Foods entered an optional renewal period in December 2012 but was automatically extended for an additional 12 months in each of January 1, 2013 and 2014. On January 26, 2015 we executed a contract directly between Food Innovations, Inc., our wholly-owned subsidiary, and U.S. Foods, Inc. The term of the contract was from January 1, 2015 through December 31, 2016 and provided for a limited number of automatic annual renewals thereafter if no party gives the other 30 days’ notice of its intent not to renew. Based on the terms, the Agreement was extended through December 31, 2018. Effective January 1, 2018 the Agreement was further amended to remove the cap on renewals, and provide for an unlimited number of additional 12-month terms unless either party notifies the other in writing, 30 days prior to the end date, of its intent not to renew. |
18. FAIR VALUE MEASUREMENTS
18. FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 18. FAIR VALUE MEASUREMENTS Our short-term financial instruments, including cash, accounts payable and other liabilities, consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of the Company’s stock option, convertible debt features and warrant instruments is determined using option pricing models. As a result of the adoption of ASC 815-40, the Company is required to disclose the fair value measurements required by ASC 820, “Fair Value Measurements and Disclosures.” The other liabilities recorded at fair value in the balance sheet as of December 31, 2009 are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 are directly related to the amount of subjectivity associated with the inputs to fair valuations of these liabilities are as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 - Unobservable inputs, for which little or no market data exist, therefore requiring an entity to develop its own assumptions. As December 31, 2018 and 2017, the Company did not have financial assets or liabilities that are required to be accounted for at fair value on a recurring basis. |
19. SUBSEQUENT EVENTS
19. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. SUBSEQUENT EVENTS As of January 28, 2019, upon approval by the Company’s compensation committee comprised solely of independent directors, we entered into an employment agreement with Mr. Sam Klepfish, our CEO, having an effective date of January 28, 2019 and terminating three years thereafter with up to two two-year extension periods. The agreement provides a base salary in the amount of $300,000 with annual increases of at least $25,000 and annual stock compensation of 50% of the base salary. The agreement also provides for additional bonuses of up to 25% of base compensation, based on increases in EBITDA (as defined in the agreement) and increases in our stock price as reflected in our market capitalization and other perquisites and benefits as detailed therein. The agreement also contains change of control, confidentiality, non-compete and non-solicitation provisions. As of January 28, 2019, upon approval by the Company’s compensation committee, we entered into an employment agreement with Mr. Justin Wiernasz, our Director of Strategic Acquisitions, having an effective date of January 28, 2019 and terminating three years thereafter with up to two extension periods; one for two years and one for one year. The agreement provides a base salary in the amount of $326,000 with annual increases of at least 5% and annual stock compensation of 5% of the base salary. This agreement was further modified to a base salary of $350,000 in 2019. The agreement also provides for additional bonuses of up to 35% of base compensation, and based upon increases in our stock price as reflected in our market capitalization and other perquisites and benefits as detailed therein. The agreement also contains change of control, confidentiality, non-compete and non-solicitation provisions. As of January 28, 2019, upon approval by the Company’s compensation committee, we entered into a Director Agreement which provides for an initial one time of grant of $45,000 cash and $45,000 of stock to two non-employee directors. The Director Agreement also provides for annual compensation to non-employee directors of $30,000 cash, payable quarterly and $30,000 of stock, vesting in equal quarterly amounts over three years. In addition, as compensation for 2019-2021, all directors shall receive a grant of 450,000 stock options which vest quarterly over three years and which are exercisable for five years from the date of grant at exercise prices ranging from $0.62 - $1.20. The Director Agreement also contains confidentiality, non-compete and non-solicitation provisions. On March 18, 2019, the Company issued 131,136 shares of common stock to employees for accrued bonuses earned in prior periods. The shares were awarded in the gross amount of 182,581 and issued in the net amount of 131,136; the difference of 51,445 shares were withheld for income taxes. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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.forethegourmet.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, 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. |
Revenue Recognition, Policy [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. |
Long-Duration Contracts Revenue Recognition, Policy [Policy Text Block] | Disaggregation of Revenue The following table represents a disaggregation of revenue by from sales for the years ended December 31, 2018 and 2017: Year Ended December 31, 2018 2017 Specialty food service $ 41,713,775 $ 38,533,540 Ecommerce 9,038,357 518,774 National Brand Management 2,173,394 2,192,403 Total $ 52,925,526 $ 41,244,717 |
Cost of Sales, Policy [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. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling, general, and administrative expenses We have included in selling, general, and administrative expenses all other costs which support the Company’s operations but which are not includable as a cost of sales. These include primarily payroll, facility costs such as rent and utilities, selling expenses such as commissions and advertising, amortization of intangible assets, depreciation, and other administrative costs including professional fees and costs associated with non-cash stock compensation. Advertising costs are expensed as incurred. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents include all highly liquid debt instruments with original maturities of three months or less which are not securing any corporate obligations. |
Receivables, Policy [Policy Text Block] | Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. Accounts receivable are presented net of an allowance for doubtful accounts of $155,176 and $63,267 at December 31, 2018, and 2017, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are valued at cost. Depreciation is provided over the estimated useful lives up to five years using the straight-line method. Leasehold improvements are depreciated on a straight-line basis over the term of the lease. The estimated service lives of property and equipment are as follows: Computer Equipment 3 years Warehouse Equipment 5 years Office Furniture and Fixtures 5 years Vehicles 5 years |
Inventory, Policy [Policy Text Block] | Inventories Inventory is valued at the lower of cost or market and is determined by the first-in, first-out method. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying amount of the Company’s cash and cash equivalents, accounts receivable, notes payable, line of credit, accounts payable and accrued expenses, none of which is held for trading, approximates their estimated fair values due to the short-term maturities of those financial instruments. The Company adopted ASC 820-10, “Fair Value Measurements” (SFAS 157), which provides a framework for measuring fair value under GAAP. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company reviews its property and equipment and any identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The test for impairment is required to be performed by management at least annually. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income ASC 220-10-15 “Reporting Comprehensive Income,” establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10-15 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. The Company does not have any items of comprehensive income in any of the periods presented. |
Cost Method Investments, Policy [Policy Text Block] | Cost Method Investments The Company has made several investments in early stage private food related companies and are accounting for these investments under the cost method. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Income 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 December 31, 2018: Convertible notes and interest At December 31, 2018 there were no convertible notes outstanding. Warrants At December 31, 2018 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: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.75 50,000 3.00 $ 0.95 50,000 3.00 $ 1.10 75,000 2.37 $ 1.31 100,000 0.01 $ 1.38 100,000 0.92 $ 1.50 125,000 3.00 $ 1.90 175,000 0.48 $ 2.00 125,000 3.00 $ 2.50 125,000 3.00 $ 3.00 125,000 3.00 $ 2.05 1,050,000 2.05 In 2018, an aggregate of 115,941 shares were issued upon the option exercises in December 2017 described below. RSUs During the twelve months ended December 31, 2017, the Company cancelled all outstanding restricted stock units (“RSUs”) and replaced them with common stock or restricted stock awards; see note 15. At December 31, 2018, there are no RSUs outstanding. Restricted Stock Awards No Restricted stock awards vested in 2018. At December 31, 2018 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. Dilutive shares at December 31, 2017: Convertible notes and interest At December 31, 2017 there were no convertible notes outstanding. Warrants At December 31, 2017 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: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.57 25,000 0.02 $ 1.04 200,000 2.83 $ 1.31 200,000 0.50 $ 1.38 100,000 1.92 $ 1.42 100,000 0.47 $ 1.43 50,000 1.00 $ 1.46 100,000 0.50 $ 1.60 310,000 0.01 $ 1.70 75,000 0.28 $ 1.90 175,000 1.48 $ 2.00 50,000 0.28 $ 2.40 20,000 0.41 $ 2.50 37,500 0.28 $ 3.40 30,000 0.41 $ 3.50 37,500 0.28 1,510,000 0.89 RSUs During the twelve months ended December 31, 2017, the Company cancelled all outstanding restricted stock units (“RSUs”) and replaced them with common stock or restricted stock awards; see note 15. At December 31, 2017, there are no RSUs outstanding. We recognized stock-based compensation expense for RSUs in a straight-line manner over the vesting period of the grant. This resulted in stock-based compensation expense of $0 for RSUs during the year ended December 31, 2017. Restricted Stock Awards During the year ended December 31, 2017, the Company cancelled unvested RSUs representing 1,370,000 shares of common stock and replaced them with restricted stock awards also representing 1,370,000 shares of common stock. The restricted stock awards vested over the same vesting period and under the same terms as the RSUs they replaced. Restricted stock awards representing 1,070,000 shares were vested at December 31, 2017; there are a total of 300,000 unvested restricted stock awards remaining. 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. During the year ended December 31, 2017, the Company recognized expense of $240,208 for the vesting of restricted stock awards, the same amount of expense that would have been recognized had the RSUs not been replaced by the restricted stock awards. |
New Accounting Pronouncements, Policy [Policy Text Block] | New 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. February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will largely remain unchanged and shall continue to depend on its classification as a finance or operating lease. We have performed a comprehensive review in order to determine what changes were required to support the adoption of this new standard. We will adopt the ASU and related amendments on January 1, 2019 and expects to elect certain practical expedients permitted under the transition guidance. We will elect the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. Under the new guidance, the majority of our leases will continue to be classified as operating. During the first quarter of 2019, we will complete our implementation of our processes and policies to support the new lease accounting and reporting requirements. Based on our lease portfolio as of January 1, 2019, we preliminarily estimate the impact of adoption ASU 2016-02 to increase both our total assets and total liabilities in the range of $500,000 to $700,000. The adoption of this ASU is not expected to have a significant impact on our Consolidated Statements of Operations or Cash Flows. We continue to finalize the implementation of the new processes and the assessment of the impact of this adoption on our consolidated financial statements; therefore, the preliminary estimated impacts disclosed can change, and the final impact will be known once the adoption is completed during the first quarter of 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, ASU 2014-09 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for fiscal years beginning after December 15, 2017. The new revenue standard is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The implementation of this standard did not have a material effect on our results of operations. 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. |
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 December 31, 2018 and 2017, the Company had cash deposits in excess of applicable government mandated insurance limits in the amount of $3,180,000 and $3,470,000, respectively. At December 31, 2018 and 2017, trade receivables from the Company’s largest customer amounted to 39% and 48%, respectively, of total trade receivables. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted. The Black-Scholes option valuation model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We used the Company’s historical volatility to estimate expected stock price volatility. The risk-free rate assumption was based on United States Treasury instruments whose terms were consistent with the expected term of the stock option. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The value of options is amortized pro rata over the vesting period of the option. Options expense charged to operations during the twelve months ended December 31, 2018 and 2017 are summarized in the table below: December 31, 2018 2017 Option expense $ 19,098 $ 38,847 During the year ended December 31, 2018, the Company also granted 146,000 shares of restricted stock to an employee with the following vesting terms: 33,334 shares vest on December 31, 2019; 33,333 shares vest on December 31, 2020; and 33,333 shares vest on December 31, 2021. These shares were valued at the market price of $0.54 on the date of the grant. A total of $3,779 was charged to operations during the year ended December 31, 2018. During the year ended December 31, 2018, the Company also granted 46,000 restricted shares of restricted common stock to an officer and board member which vested December 31, 2018. The Company valued these shares at the market price of $0.97 at the date of the grant, and charged the amount of $44,528 to operations during the year ended December 31, 2018. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to conform prior period data to the current presentation. |
1. SUMMARY OF SIGNIFICANT ACC_2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table represents a disaggregation of revenue by from sales for the years ended Decembe Year Ended December 31, 2018 2017 Specialty food service $ 41,713,775 $ 38,533,540 Ecommerce 9,038,357 518,774 National Brand Management 2,173,394 2,192,403 Total $ 52,925,526 $ 41,244,717 |
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Land $ 385,523 $ 385,523 Building 1,326,165 1,326,165 Computer and Office Equipment 523,853 497,189 Warehouse Equipment 302,622 226,953 Furniture and Fixtures 889,073 473,572 Vehicles 220,812 40,064 Total before accumulated depreciation 3,648,048 2,949,466 Less: accumulated depreciation (1,191,438 ) (994,216 ) Total 2,456,610 $ 1,955,250 |
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 acquired as of January 23, 2018 $ 231,169 Cash payments received 603,109 Net sales recognized (274,963 ) Balance as of December 31, 2018 $ 559,315 |
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: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.75 50,000 3.00 $ 0.95 50,000 3.00 $ 1.10 75,000 2.37 $ 1.31 100,000 0.01 $ 1.38 100,000 0.92 $ 1.50 125,000 3.00 $ 1.90 175,000 0.48 $ 2.00 125,000 3.00 $ 2.50 125,000 3.00 $ 3.00 125,000 3.00 $ 2.05 1,050,000 2.05 Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.57 25,000 0.02 $ 1.04 200,000 2.83 $ 1.31 200,000 0.50 $ 1.38 100,000 1.92 $ 1.42 100,000 0.47 $ 1.43 50,000 1.00 $ 1.46 100,000 0.50 $ 1.60 310,000 0.01 $ 1.70 75,000 0.28 $ 1.90 175,000 1.48 $ 2.00 50,000 0.28 $ 2.40 20,000 0.41 $ 2.50 37,500 0.28 $ 3.40 30,000 0.41 $ 3.50 37,500 0.28 1,510,000 0.89 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Options expense charged to operations during the twelve months ended December 31, 2018 and 2017 are summarized in the table below: December 31, 2018 2017 Option expense $ 19,098 $ 38,847 |
Estimated Useful Life [Member] | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | The estimated service lives of property and equipment are as follows: Computer Equipment 3 years Warehouse Equipment 5 years Office Furniture and Fixtures 5 years Vehicles 5 years |
2. ACQUISITION (Tables)
2. ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and 2017. These combined results are not necessarily indicative of the results that may have been achieved had the companies always been combined. 12 months Ended December 31 2018, 2018 2017 (unaudited) (unaudited) Revenues $ 53,303,176 $ 49,973,916 Net Income $ 1,706,253 $ 3,348,889 Basic net income per share $ 0.05 $ 0.12 Diluted net income per share $ 0.05 $ 0.12 Weighted average shares – basic 33,983,620 29,846,136 Weighted average shares – diluted 33,983,620 29,969,699 |
3. ACCOUNTS RECEIVABLE (Tables)
3. ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | At December 31, 2018 and 2017, accounts receivable consists of: 2018 2017 Accounts receivable from customers $ 3,194,932 $ 2,105,772 Allowance for doubtful accounts (155,176 ) (63,267 ) Accounts receivable, net $ 3,039,756 $ 2,042,505 |
4. INVENTORY (Tables)
4. INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consists of specialty food products. At December 31, 2018 and 2017, inventory consisted of the following: 2018 2017 Finished Goods Inventory $ 2,301,377 $ 937,962 |
6. PROPERTY AND EQUIPMENT (Tabl
6. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Land $ 385,523 $ 385,523 Building 1,326,165 1,326,165 Computer and Office Equipment 523,853 497,189 Warehouse Equipment 302,622 226,953 Furniture and Fixtures 889,073 473,572 Vehicles 220,812 40,064 Total before accumulated depreciation 3,648,048 2,949,466 Less: accumulated depreciation (1,191,438 ) (994,216 ) Total 2,456,610 $ 1,955,250 |
8. INTANGIBLE ASSETS (Tables)
8. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following is the net book value of these assets: December 31, 2018 Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (362,913 ) $ 142,987 Customer Relationships - amortizable 3,068,034 (1,928,175 ) 1,139,859 Trade Name 1,532,822 - 1,532,822 Internally Developed Technology 875,643 - 875,643 Goodwill 650,252 - 650,252 Total $ 6,632,651 $ (2,291,088 ) $ 4,341,563 December 31, 2017 Accumulated Gross Amortization Net Non-Compete Agreement – amortizable $ 444,000 $ (294,000 ) $ 150,000 Customer Relationships - amortizable 1,930,994 (1,112,078 ) 818,916 Trade Name 217,000 - 217,000 Goodwill 151,000 - 151,000 Total $ 2,742,994 $ (1,406,078 ) $ 1,336,916 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization of finite life intangible assets as of December 31, 2018 is as follows: 2019 723,791 2020 525,046 2021 34,009 2022 and thereafter - Total $ 1,282,846 |
9. ACCOUNTS PAYABLE AND ACCRU_2
9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and accrued liabilities at December 31, 2018 and December 31, 2017 are as follows: December 31, 2018 December 31, 2017 Trade payables and accrued expenses $ 3,425,178 $ 1,652,681 Accrued payroll and commissions 264,690 183,878 Total 3,689,868 $ 1,836,559 |
11. REVOLVING CREDIT FACILITI_2
11. REVOLVING CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | December 30, 2018 December 31, 2017 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 12). $ - $ - 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. $ - $ - Total $ - $ - |
12. NOTES PAYABLE AND NOTES P_2
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | December 31, 2018 December 31, 2017 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. See note 20. 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. $ - $ 114,033 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 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 twelve months ended December 31, 2018, the Company made payments of principal and interest on this note in the amounts of $50,050 and $13,083, respectively. 232,050 282,100 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 twelve months ended December 31, 2017, the Company made payments of principal and interest on this note in the amounts of $98,000 and $30,508, respectively. During the twelve months ended December 31, 2018, the Company made payments of principal and interest on this note in the amounts of $98,000 and $33,055, respectively. 628,833 726,833 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 twelve months ended December 31, 2018, the Company made payments of principal and interest on this note in the amounts of $833,330 and $72,017, respectively. 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%. Monthly payments in the amount of $7,425 including principal and interest are due April 22, 2019. The entire principal balance and all accrued interest is due on the maturity date of March 21, 2024. (see note 11). 391,558 December 31, 2018 December 31, 2017 A total of 16 convertible notes payable in the aggregate amount of $627,565 (the “Convertible Notes Payable”). Certain of the Convertible Notes Payable contain cross default provisions, and are secured by subordinated interest in a majority of the Company’s assets. The Convertible Notes Payable bear interest at the rate of 1.9% per annum; principal and accrued interest are convertible into common stock of the Company at a conversion price of $0.25 per share; however, the interest may be paid in cash by the Company and certain limited amounts of principle may also be prepaid in cash. Effective May 13, 2014, the due date of these notes was extended from May 15, 2014 to December 31, 2015, and a discount to the notes in the aggregate amount of $712,565 was recorded to recognize the value of the beneficial conversion feature embedded in the extension of the term of the notes. In March 2015 the notes were further extended to January 1, 2016. On September 30, 2015, notes in the amount of $627,565 were further extended to July 1, 2017, and a discount in the amount of $627,565 was recorded to recognize the value of the beneficial conversion featured embedded in the extension of the term of the notes. During the twelve months ended December 31, 2017, $0 of this discount was charged to operations. During the twelve months ended December 31, 2017, holders of the Convertible Notes Payable converted principal in the amount of $627,565 and accrued interest in the amount of $528,242 into an aggregate of 1,155,807 shares of common stock, and accrued interest in the amount of $86,089 was forgiven. The amount of $86,809 was recorded as a decrease in interest expense during the twelve months ended December 31, 2017. - - 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 each of the twelve months ended December 31, 2018 and 2017, the Company accrued interest in the amount of $372 and $372, respectively, on this note. 20,000 20,000 Unsecured note to Sam Klepfish for $164,650 which may not be prepaid without Mr. Klepfish’s consent, originally carrying an interest rate of 8% per annum and no due date. As of July 1, 2014, the interest rate was reduced to 1.9% and as of November 17, 2014 the interest rate was further reduced to 0%. During the three months ended December 31, 2015, interest in the amount of $54,150 was capitalized, and the aggregate principal amount of $164,650 was extended to July 1, 2017. This note and accrued interest are convertible into common stock of the Company at a conversion price of $0.25 per share. During the twelve months ended December 31, 2017, the entire principal balance of this note in the amount of $164,650 was converted into 658,600 shares of the Company’s common stock. - - 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 twelve months ended December 31, 2017, the Company made principal and interest payments on this note in the amount of $44,946 and $2,318, respectively. During the twelve months ended December 31, 2018, the Company made principal and interest payments on this note in the amount of $50,759 and $807, respectively. 4,291 55,054 Capital lease obligations under a lease agreement for a forklift payable in thirty-six monthly installments of $274 including interest at the rate of 4.46%. During the twelve months ended December 31, 2017, the Company made principal and interest payments on this lease obligation in the amounts of $3,093 and $195, respectively. During the twelve months ended December 31, 2018, the Company paid this lease in full by making principal and interest payments on this lease obligation in the amount of $2,685 and $55, respectively. - 2,685 December 31, 2018 December 31, 2017 Capital lease obligations 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 twelve months ended December 31, 2018, the Company made principal and interest payments on this lease obligation in the amounts of $6,499 and $434, respectively. 5,661 12,160 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 year ended December 31, 2018, the Company made principal and interest payments in the amount of $760 and $195, respectively, on this loan. 50,328 - Capital 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 twelve months ended December 31, 2018, the Company made principal and interest payments on this lease obligation in the amounts of $2,876 and $1,776, respectively. 125,711 Total $ 2,125,102 $ 1,212,865 Less: Discount - - Net $ 2,125,102 $ 1,212,865 Current maturities $ 928,857 $ 346,855 Long-term portion 1,196,245 866,010 Total $ 2,125,102 $ 1,212,865 |
Schedule of Debt Discount Amortization Expense [Table Text Block] | For the Year Ended December 31, 2018 2017 Discount on Notes Payable amortized to interest expense: $ - $ 185,018 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate maturities of long-term notes payable as of December 31, 2018 are as follows: 2019 930,299 2020 687,849 2021 163,121 2022 169,582 2023 174,251 Thereafter - Total $ 2,125,102 |
14. INCOME TAXES (Tables)
14. INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes for the years ended December 31, 2018 and 2017 consist of the following: 2018 2017 Current $ $ - Deferred - - Total $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision (benefit) for income taxes differs from the amount of income tax determined by applying the applicable statutory income tax rate of 27.6% and 39.6% for the December 31, 2018 and 2017, respectively, to the loss before taxes as a result of the following differences: 2018 2017 Income (loss) before income taxes $ 1,850,899 $ 4,529,262 Statutory tax rate 27.6 % 39.6 % Total tax at statutory rate 510,000 1,794,000 Temporary differences 53,000 255,000 Permanent difference – meals and entertainment 7,000 6,000 Permanent differences- non cash compensation, and discount amortization 18,000 256,700 Total 588,000 2,311,700 Changes in valuation allowance (588,000 ) (2,311,700 ) Income tax expense $ - $ - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, 2018 and 2017 significant components of the Company’s deferred tax assets are as follows: 2018 2017 Deferred Tax Assets (Liabilities): Net operating loss carryforwards $ 410,000 $ 997,500 Allowance for doubtful accounts 7,000 (7,100 ) Property and equipment (132,600 ) 38,000 ) Intangible assets (350,000 ) (154,800 ) Accrued officer compensation 18,700 18,700 Net deferred tax assets (liabilities) (46,900 ) 892,300 Valuation allowance 46,900 (892,300 ) Net deferred tax assets (liabilities) $ - $ - |
15. EQUITY (Tables)
15. EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
15. EQUITY (Tables) [Line Items] | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [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: 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 $ 0.75 50,000 3.00 $ 0.75 - $ - $ 0.95 50,000 3.00 $ 0.95 - $ - $ 1.10 75,000 2.37 $ 1.10 75,000 $ 1.10 $ 1.31 100,000 0.01 $ 1.31 100,000 $ 1.10 $ 1.38 100,000 0.92 $ 1.38 100,000 $ 1.38 $ 1.50 125,000 3.00 $ 1.50 - $ 1.90 175,000 0.48 $ 1.90 175,000 $ 1.90 $ 2.00 125,000 3.00 $ 2.00 - $ 2.50 125,000 3.00 $ 2.50 $ 3.00 125,000 3.00 $ 3.00 $ - 1,050,000 2.05 $ 1.80 450,000 $ 1.52 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Transactions involving stock options are summarized as follows: Number of Shares Weighted Average Exercise Price Options outstanding at December 31, 2016 2,445,000 $ 1.01 Granted 950,000 1.55 Exercised (1,370,000 ) 0.38 Cancelled / Expired (515,000 ) 2.00 Options outstanding at December 31, 2017 1,510,000 $ 1.60 Granted 675,000 1.91 Exercised - - Cancelled / Expired (1,135,000 ) 1.51 Options outstanding at December 31, 2018 1,050,000 $ 1.80 |
Schedule of Options Exercise Price [Table Text Block] | The exercise price grant dates in relation to the market price during 2018 and 2017 are as follows: 2018 2017 Exercise price lower than market price - - Exercise price equal to market price - - Exercise price exceeded market price $ 0.75 to 3.00 $ 1.04 to 1.38 |
Warrant [Member] | |
15. EQUITY (Tables) [Line Items] | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The Company valued warrants and options using the Black-Scholes valuation model utilizing the following variables: December 31, December 31, 2018 2017 Volatility 43.0-48.1 % 47.3-56.9 % Dividends $ 0 0 Risk-free interest rates 2.67-2.91 % 0.87-2.0 % Term (years) 3.00-3.13 0.8-2.5 |
1. SUMMARY OF SIGNIFICANT ACC_3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Allowance for Doubtful Accounts Receivable (in Dollars) | $ 155,176 | $ 63,267 |
Property, Plant and Equipment, Useful Life | 5 years | |
Stock Issued During Period, Shares, Cashless Conversion of Warrants or Options | 115,941 | |
Cash, Uninsured Amount (in Dollars) | $ 3,180,000 | $ 3,470,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 146,000 | |
Share Price (in Dollars per share) | $ 0.58 | $ 1.19 |
Restricted Stock [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 300,000 | 300,000 |
Share-based Compensation (in Dollars) | $ 240,208 | $ 240,208 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,370,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,070,000 | |
Restricted Stock Units (RSUs) [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation (in Dollars) | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,370,000 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,480,392 | |
Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation (in Dollars) | $ 3,779 | |
Share Price (in Dollars per share) | $ 0.54 | |
Restricted Stock Units (RSUs) [Member] | Officer [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation (in Dollars) | $ 44,528 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 46,000 | |
Share Price (in Dollars per share) | $ 0.97 | |
Share-based Compensation Award, Tranche One [Member] | Restricted Stock [Member] | ||
1. SUMMARY OF 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 | 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 | |
Share-based Compensation Award, Tranche One [Member] | Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 33,334 | |
Share-based Compensation Award, Tranche Two [Member] | Restricted Stock [Member] | ||
1. SUMMARY OF 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 | will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days | |
Share-based Compensation Award, Tranche Two [Member] | Restricted Stock Units (RSUs) [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting for the remaining 300,000 restricted stock awards is contingent upon meeting certain price and volume conditions related to the Company’s stock; these conditions are the same conditions required for vesting of the cancelled RSUs | |
Share-based Compensation Award, Tranche Two [Member] | Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 33,333 | |
Share-based Compensation Award, Tranche Three [Member] | Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 33,333 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Concentration Risk, Percentage | 39.00% | 48.00% |
1. SUMMARY OF SIGNIFICANT ACC_4
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Disaggregation of Revenue - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 52,925,526 | $ 41,244,717 |
Specialty Food Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 41,713,775 | 38,533,540 |
Ecommerce [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,038,357 | 518,774 |
National Brand Management [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,173,394 | $ 2,192,403 |
1. SUMMARY OF SIGNIFICANT ACC_5
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 3 years |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Life | 5 years |
1. SUMMARY OF SIGNIFICANT ACC_6
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Deferred Revenue, by Arrangement, Disclosure | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Deferred Revenue, by Arrangement, Disclosure [Abstract] | |
Balance | $ 231,169 |
Cash payments received | 603,109 |
Net sales recognized | (274,963) |
Balance | $ 559,315 |
1. SUMMARY OF SIGNIFICANT ACC_7
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares - $ / shares | 1 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Number of Options | 1,510,000 | ||
Weighted Average Remaining Contractual Life | 324 days | ||
Options at $0.75 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.75 | $ 0.75 | |
Number of Options | 50,000 | ||
Weighted Average Remaining Contractual Life | 3 years | ||
Options at $0.95 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | 0.95 | $ 0.95 | |
Number of Options | 50,000 | ||
Weighted Average Remaining Contractual Life | 3 years | ||
Options at $1.10 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | 1.10 | $ 1.10 | |
Number of Options | 75,000 | ||
Weighted Average Remaining Contractual Life | 2 years 135 days | ||
Options at $1.310 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.31 | $ 1.31 | |
Number of Options | 100,000 | 200,000 | |
Weighted Average Remaining Contractual Life | 3 days | 6 months | |
Options at $1.38 [Member] | |||
1. SUMMARY OF 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 | 335 days | 1 year 335 days | |
Options at $1.50 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | 1.50 | $ 1.50 | |
Number of Options | 125,000 | ||
Weighted Average Remaining Contractual Life | 3 years | ||
Options at $1.90 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.90 | $ 1.90 | |
Number of Options | 175,000 | 175,000 | |
Weighted Average Remaining Contractual Life | 175 days | 1 year 175 days | |
Options at $2.00 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | 2 | $ 2 | |
Number of Options | 125,000 | ||
Weighted Average Remaining Contractual Life | 3 years | ||
Options at $2.50 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | 2.50 | $ 2.50 | $ 2.50 |
Number of Options | 125,000 | 37,500 | |
Weighted Average Remaining Contractual Life | 3 years | 102 days | |
Options at $3.00 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 3 | $ 3 | |
Number of Options | 125,000 | ||
Weighted Average Remaining Contractual Life | 3 years | ||
Options at $2.05 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 2.05 | ||
Number of Options | 1,050,000 | ||
Weighted Average Remaining Contractual Life | 2 years 18 days | ||
Options at $0.570 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.57 | ||
Number of Options | 25,000 | ||
Weighted Average Remaining Contractual Life | 7 days | ||
Options at $1.04 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.04 | ||
Number of Options | 200,000 | ||
Weighted Average Remaining Contractual Life | 2 years 302 days | ||
Options at $1.42 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.42 | ||
Number of Options | 100,000 | ||
Weighted Average Remaining Contractual Life | 171 days | ||
Options at $1.43 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.43 | ||
Number of Options | 50,000 | ||
Weighted Average Remaining Contractual Life | 1 year | ||
Options at $1.46 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.46 | ||
Number of Options | 100,000 | ||
Weighted Average Remaining Contractual Life | 6 months | ||
Options at $1.60 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.60 | ||
Number of Options | 310,000 | ||
Weighted Average Remaining Contractual Life | 3 days | ||
Options at $1.70 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.70 | ||
Number of Options | 75,000 | ||
Weighted Average Remaining Contractual Life | 102 days | ||
Options at $2.00 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 2 | ||
Number of Options | 50,000 | ||
Weighted Average Remaining Contractual Life | 102 days | ||
Options at $2.40 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 2.40 | ||
Number of Options | 20,000 | ||
Weighted Average Remaining Contractual Life | 149 days | ||
Options at $3.40 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 3.40 | ||
Number of Options | 30,000 | ||
Weighted Average Remaining Contractual Life | 149 days | ||
Options at $3.50 [Member] | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 3.50 | ||
Number of Options | 37,500 | ||
Weighted Average Remaining Contractual Life | 102 days |
1. SUMMARY OF SIGNIFICANT ACC_8
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 19,098 | $ 38,847 |
2. ACQUISITION (Details)
2. ACQUISITION (Details) - USD ($) | Jul. 06, 2018 | May 23, 2018 | Jan. 23, 2018 | Nov. 28, 2017 | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Mouth Foods [Member] | |||||||
2. 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 | |||||
Amortization of Intangible Assets | 26,262 | ||||||
Depreciation | 3,666 | ||||||
Payments to Acquire Businesses, Gross | 208,355 | ||||||
Business Combination, Contingent Consideration, Liability, Current | $ 140,576 | ||||||
IGourmet, LLC [Member] | |||||||
2. 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 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 | |||||
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 | ||||||
Business Combination, Contingent Consideration, Liability, Current | $ 132,300 | ||||||
Oasis Sales and Marketing, LLC [Member] | |||||||
2. ACQUISITION (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration Arrangements, Description | the Company is contingently liable for certain performance-based payments over the twenty-four months following the acquisition date up to a maximum of $400,000 | ||||||
Business Combination, Contingent Consideration, Liability | 400,000 | $ 400,000 | |||||
Amortization of Intangible Assets | 210,000 | $ 210,000 | |||||
Payments to Acquire Businesses, Gross | $ 300,000 | ||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 100,000 | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 200,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 400,000 | ||||||
Payment for Contingent Consideration Liability, Investing Activities | $ 189,000 | ||||||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | $ 11,000 | ||||||
Business Combination, Contingent Consideration, Liability, Current | 200,000 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Description | The SEI was payable in cash or shares of the Company’s stock at the Company’s option, at any time, or is automatically payable via the issuance of 200,000 shares of the Company’s stock if the Company’s shares close above $1.00 for ten consecutive days | ||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 200,000 | ||||||
Customer Lists [Member] | Oasis Sales and Marketing, LLC [Member] | |||||||
2. ACQUISITION (Details) [Line Items] | |||||||
Finite-Lived Customer Lists, Gross | $ 800,000 | ||||||
Finite-Lived Intangible Asset, Useful Life | 60 months | ||||||
Noncompete Agreements [Member] | Oasis Sales and Marketing, LLC [Member] | |||||||
2. ACQUISITION (Details) [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 48 months | ||||||
Finite-Lived Noncompete Agreements, Gross | $ 200,000 | ||||||
Food Funding [Member] | IGourmet, LLC [Member] | |||||||
2. ACQUISITION (Details) [Line Items] | |||||||
Payments to Acquire Loans Receivable | $ 1,187,000 | ||||||
Contingent Liability - Future Sales of Purchased Assets [Member] | Mouth Foods [Member] | |||||||
2. 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] | |||||||
2. ACQUISITION (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | $ 185,000 | $ 185,000 | |||||
Contingent Liabilities - Payable to Certain Vendors [Member] | Mouth Foods [Member] | |||||||
2. ACQUISITION (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | $ 20,000 |
2. ACQUISITION (Details) - Sch
2. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - USD ($) | Jul. 06, 2018 | Jan. 23, 2018 | Dec. 31, 2018 |
Mouth Foods [Member] | |||
2. 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] | |||
2. 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 | |
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] | |||
2. 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] | |||
2. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | |||
Contingent liabilit | $ 100,000 |
2. ACQUISITION (Details) - Bus
2. ACQUISITION (Details) - Business Acquisition, Pro Forma Information - Mouth Foods [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
2. ACQUISITION (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||
Revenues (in Dollars) | $ 53,303,176 | $ 49,973,916 |
Net Income (in Dollars) | $ 1,706,253 | $ 3,348,889 |
Basic net income per share | $ 0.05 | $ 0.12 |
Diluted net income per share | 0.05 | 0.12 |
Weighted average shares - basic | $ 33,983,620 | $ 29,846,136 |
Weighted average shares - diluted (in Shares) | 33,983,620 | 29,969,699 |
3. ACCOUNTS RECEIVABLE (Details
3. ACCOUNTS RECEIVABLE (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable from customers | $ 3,194,932 | $ 2,105,772 |
Allowance for doubtful accounts | (155,176) | (63,267) |
Accounts receivable, net | $ 3,039,756 | $ 2,042,505 |
4. INVENTORY (Details) - Schedu
4. INVENTORY (Details) - Schedule of Inventory - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Inventory [Abstract] | ||
Finished Goods Inventory | $ 2,301,377 | $ 937,962 |
5. NOTES RECEIVABLE (Details)
5. NOTES RECEIVABLE (Details) - IGourmet, LLC [Member] | 12 Months Ended |
Dec. 31, 2017USD ($) | |
5. NOTES RECEIVABLE (Details) [Line Items] | |
Notes, Loans and Financing Receivable, Gross, Current | $ 325,500 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 9.00% |
Interest and Other Income | $ 5,238 |
6. PROPERTY AND EQUIPMENT (Deta
6. PROPERTY AND EQUIPMENT (Details) | May 14, 2015USD ($)aft² | Feb. 26, 2013USD ($)aft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | ||||
Depreciation | $ 197,222 | $ 162,705 | ||
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 ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 3,648,048 | $ 2,949,466 |
Less: accumulated depreciation | (1,191,438) | (994,216) |
Total | 2,456,610 | 1,955,250 |
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 | 523,853 | 497,189 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 302,622 | 226,953 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 889,073 | 473,572 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 220,812 | $ 40,064 |
7. INVESTMENTS (Details)
7. INVESTMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Investments Schedule [Abstract] | ||
Equity Method Investment, Additional Information | the Company has investments in five food related companies | |
Long-term Investments | $ 201,525 | $ 339,525 |
8. INTANGIBLE ASSETS (Details)
8. INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
8. INTANGIBLE ASSETS (Details) [Line Items] | ||
Amortization of Intangible Assets (in Dollars) | $ 885,002 | $ 370,770 |
Noncompete Agreements [Member] | ||
8. INTANGIBLE ASSETS (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 48 months | |
Customer Relationships [Member] | Haley Consulting Group [Member] | ||
8. INTANGIBLE ASSETS (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 60 months | |
Customer Relationships [Member] | Artisan Specialty Foods [Member] | ||
8. INTANGIBLE ASSETS (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 60 months |
8. INTANGIBLE ASSETS (Details)
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | $ 6,632,651 | $ 2,742,994 |
Intangible asset, accumulated amortization | (2,291,088) | (1,406,078) |
Intangible asset, net | 4,341,563 | 1,336,916 |
Goodwill, net | 3,058,708 | 368,000 |
Noncompete Agreements [Member] | ||
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 505,900 | 444,000 |
Intangible asset, accumulated amortization | (362,913) | (294,000) |
Intangible asset, net | 142,987 | 150,000 |
Customer Relationships [Member] | ||
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 3,068,034 | 1,930,994 |
Intangible asset, accumulated amortization | (1,928,175) | (1,112,078) |
Intangible asset, net | 1,139,859 | 818,916 |
Trade Names [Member] | ||
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 1,532,822 | 217,000 |
Intangible asset, accumulated amortization | 0 | 0 |
Intangible asset, net | 1,532,822 | 217,000 |
Developed Technology Rights [Member] | ||
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 875,643 | |
Intangible asset, net | 875,643 | |
Goodwill [Member] | ||
8. INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Goodwill, gross | 650,252 | 151,000 |
Goodwill, accumulated amortization | 0 | 0 |
Goodwill, net | $ 650,252 | $ 151,000 |
8. INTANGIBLE ASSETS (Detail_2
8. INTANGIBLE ASSETS (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Dec. 31, 2018USD ($) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2019 | $ 723,791 |
2020 | 525,046 |
2021 | 34,009 |
2022 and thereafter | 0 |
Total | $ 1,282,846 |
9. ACCOUNTS PAYABLE AND ACCRU_3
9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - Schedule of accounts payable and accrued liabilities - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of accounts payable and accrued liabilities [Abstract] | ||
Trade payables and accrued expenses | $ 3,425,178 | $ 1,652,681 |
Accrued payroll and commissions | 264,690 | 183,878 |
Total | $ 3,689,868 | $ 1,836,559 |
10. ACCRUED INTEREST (Details)
10. ACCRUED INTEREST (Details) - Accrued interest [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
10. ACCRUED INTEREST (Details) [Line Items] | ||
Interest Payable | $ 16,402 | $ 15,860 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 119,791 | $ 74,178 |
11. REVOLVING CREDIT FACILITI_3
11. REVOLVING CREDIT FACILITIES (Details) - Schedule of Line of Credit Facilities - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Line of credit | $ 0 | $ 0 |
Fifth Third Bank Credit Facility #1 [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | 0 | 0 |
Fifth Third Bank Credit Facility #2 [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 0 | $ 0 |
11. REVOLVING CREDIT FACILITI_4
11. REVOLVING CREDIT FACILITIES (Details) - Schedule of Line of Credit Facilities (Parentheticals) - Line of Credit [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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% |
12. NOTES PAYABLE AND NOTES P_3
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Total | $ 2,125,102 | $ 1,212,865 |
Net | 2,125,102 | 1,212,865 |
Current maturities, net of discount | 928,857 | 346,855 |
Long-term portion, net of discount | 1,196,245 | 866,010 |
Total | 2,125,102 | 1,212,865 |
Notes Payable, Other Payables [Member] | Oasis Sales and Marketing, LLC [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 4,291 | 55,054 |
Convertible Debt [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Convertible debt | 20,000 | 20,000 |
Mortgages [Member] | Bonita Springs, FL [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 232,050 | 282,100 |
Mortgages [Member] | Broadview, IL [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 628,833 | 726,833 |
Notes Payable to Banks [Member] | Artisan Equipment Loan [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 391,558 | |
Loans Payable [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 50,328 | |
Capital Lease #1 [Member] | Capital Lease Obligations [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Capital lease obligations | 2,685 | |
Capital Lease #2 [Member] | Capital Lease Obligations [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Capital lease obligations | 5,661 | 12,160 |
Capital Lease #3 [Member] | Capital Lease Obligations [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Capital lease obligations | 125,711 | |
Term Loan #1 [Member] | Notes Payable to Banks [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | $ 114,033 | |
Term Loan #2 [Member] | Notes Payable, Other Payables [Member] | ||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt [Line Items] | ||
Notes Payable | $ 666,670 |
12. NOTES PAYABLE AND NOTES P_4
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) - USD ($) | Nov. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 1,147,533 | $ 997,544 | |
Discount charged | 0 | 185,018 | |
Converted | 0 | $ 164,650 | |
Oasis Sales and Marketing, LLC [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
(in Shares) | 200,000 | ||
Chief Executive Officer [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
(in Shares) | 658,600 | ||
Converted | $ 164,650 | ||
Notes Payable, Other Payables [Member] | Oasis Sales and Marketing, LLC [Member] | |||
12. 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 | ||
Convertible Notes Payable [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Secured by | subordinated interest in a majority of the Company's assets | ||
Due | July 1, 2017 | ||
Interest Rate | 1.90% | ||
Notes | 16 | ||
Beneficial Conversion Feature Discount | $ 627,565 | ||
Discount charged | $ 0 | ||
(in Shares) | 1,155,807 | ||
(in Dollars per share) | $ 0.25 | ||
Convertible Debt [Member] | |||
12. 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 Debt [Member] | Chief Executive Officer [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 164,650 | ||
Due | July 1 ,2017 | ||
Interest Rate | 0.00% | ||
(in Shares) | 658,600 | ||
(in Dollars per share) | $ 0.25 | ||
Interest | $ 0 | ||
Converted | 164,650 | ||
Interest Capitalized | 54,150 | ||
Principal [Member] | Notes Payable, Other Payables [Member] | Oasis Sales and Marketing, LLC [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 50,759 | ||
Accrued interest [Member] | Convertible Notes Payable [Member] | Oasis Sales and Marketing, LLC [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 807 | ||
Mortgages [Member] | Bonita Springs, FL [Member] | |||
12. 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 | |
Mortgages [Member] | Broadview, IL [Member] | |||
12. 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 | |
Mortgages [Member] | Principal [Member] | Bonita Springs, FL [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 50,050 | ||
Mortgages [Member] | Principal [Member] | Broadview, IL [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 98,000 | ||
Mortgages [Member] | Accrued interest [Member] | Bonita Springs, FL [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 13,083 | ||
Mortgages [Member] | Accrued interest [Member] | Broadview, IL [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 33,055 | ||
Notes Payable to Banks [Member] | Artisan Equipment Loan [Member] | |||
12. 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% | ||
Loans Payable [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | $ 51,088 | ||
Due | December 6, 2018 | ||
Interest Rate | 4.61% | ||
Monthly Installments | $ 955 | ||
Loans Payable [Member] | Principal [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 760 | ||
Loans Payable [Member] | Accrued interest [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 195 | ||
Capital Lease #1 [Member] | Capital Lease Obligations [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest Rate | 4.46% | ||
Monthly Installments | $ 274 | ||
Capital Lease #1 [Member] | Capital Lease Obligations [Member] | Principal [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 2,685 | ||
Capital Lease #1 [Member] | Capital Lease Obligations [Member] | Accrued interest [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 55 | ||
Capital Lease #2 [Member] | Capital Lease Obligations [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest Rate | 4.83% | ||
Monthly Installments | $ 579 | ||
Capital Lease #2 [Member] | Capital Lease Obligations [Member] | Principal [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 6,499 | ||
Capital Lease #2 [Member] | Capital Lease Obligations [Member] | Accrued interest [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 434 | ||
Capital Lease Obligations [Member] | Capital Lease #3 [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Amount | 128,587 | ||
Monthly Installments | $ 2,326 | ||
Capital Lease #3 [Member] | Capital Lease Obligations [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest Rate | 8.33% | ||
Capital Lease #3 [Member] | Capital Lease Obligations [Member] | Principal [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | $ 2,876 | ||
Capital Lease #3 [Member] | Capital Lease Obligations [Member] | Accrued interest [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Payments | 1,776 | ||
Term Loan #1 [Member] | Notes Payable to Banks [Member] | |||
12. 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 | |
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 | ||
Payment date | Sep. 5, 2016 | Sep. 5, 2016 | |
Term Loan #2 [Member] | Notes Payable, Other Payables [Member] | |||
12. 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 | ||
Three Months Ended September 30, 2018 Payments [Member] | Accrued interest [Member] | Convertible Debt [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest | $ 372 | $ 372 | |
London Interbank Offered Rate (LIBOR) [Member] | Mortgages [Member] | Bonita Springs, FL [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest- variable rate | 3.00% | 3.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Mortgages [Member] | Broadview, IL [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest- variable rate | 2.75% | 2.75% | |
London Interbank Offered Rate (LIBOR) [Member] | Term Loan #1 [Member] | Notes Payable to Banks [Member] | |||
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of debt (Parentheticals) [Line Items] | |||
Interest- variable rate | 4.50% | 4.50% |
12. NOTES PAYABLE AND NOTES P_5
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule for Debt Discount Amortization Expense - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule for Debt Discount Amortization Expense [Abstract] | ||
Discount on Notes Payable amortized to interest expense: | $ 0 | $ 185,018 |
12. NOTES PAYABLE AND NOTES P_6
12. NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES (Details) - Schedule of Maturities of Long-term Debt - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Maturities of Long-term Debt [Abstract] | ||
2019 | $ 930,299 | |
2020 | 687,849 | |
2021 | 163,121 | |
2022 | 169,582 | |
2023 | 174,251 | |
Thereafter | 0 | |
Total | $ 2,125,102 | $ 1,212,865 |
13. RELATED PARTY TRANSACTIONS
13. RELATED PARTY TRANSACTIONS (Details) - USD ($) | Mar. 05, 2018 | May 31, 2018 | Mar. 23, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 365,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 545,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 180,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 200,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 48,000 | |||||||
President [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 55,192 | |||||||
Reduction of Salary (in Dollars) | $ 15,000 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 46,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 400,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 45,000 | $ 24,000 | ||||||
Shares Deemed Issued from Exercise of Options | 60,507 | 60,507 | ||||||
Payments for Repurchase of Other Equity (in Dollars) | $ 45,000 | $ 45,000 | ||||||
President [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 928,027 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 1,724,532 | |||||||
Shares Paid for Tax Withholding for Share Based Compensation | 306,505 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 490,000 | |||||||
Chief Executive Officer [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 60,507 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 400,000 | |||||||
Debt Conversion, Original Debt, Amount (in Dollars) | $ 164,650 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 658,600 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 45,000 | $ 24,000 | ||||||
Shares Deemed Issued from Exercise of Options | 55,192 | |||||||
Payments for Repurchase of Other Equity (in Dollars) | $ 45,000 | $ 45,000 | ||||||
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 586,586 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 1,382,540 | |||||||
Shares Paid for Tax Withholding for Share Based Compensation | 95,954 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 700,000 | |||||||
Principal Accounting Officer and Chief Information Officer [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 87,500 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 8,125 | |||||||
Options at $0.350 [Member] | Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | |||||||
Non-Vested Awards [Member] | Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 180,000 | |||||||
Non-Vested Awards [Member] | President [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 490,000 | |||||||
Non-Vested Awards [Member] | Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 700,000 | |||||||
Vested Awards [Member] | Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 365,000 | |||||||
Vested Awards [Member] | President [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 1,234,532 | |||||||
Vested Awards [Member] | Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 682,540 | |||||||
Option Repurchase #1 [Member] | President [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 9,000 | |||||||
Option Repurchase #2 [Member] | Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 33,000 | |||||||
Option Repurchase #2 [Member] | President [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 140,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 13,400 | |||||||
Repurchased From Each Director [Member] | Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 24,000 | |||||||
Options at $0.350 [Member] | Director [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.350 [Member] | President [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.350 [Member] | Chief Executive Officer [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.570 [Member] | President [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.57 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.57 | |||||||
Options at $0.570 [Member] | Chief Executive Officer [Member] | ||||||||
13. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.57 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.57 |
14. INCOME TAXES (Details)
14. INCOME TAXES (Details) - USD ($) | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | |||
Operating Loss Carryforwards | $ 1.4 | ||
Operating Loss Carryforwards Expiration Year | 2038 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.60% | 39.60% | |
Income Tax Expense (Benefit) | $ 388,000 | $ 155,000 | $ 0 |
Deferred Tax Assets, Valuation Allowance | $ 388,000 |
14. INCOME TAXES (Details) - Sc
14. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Components of Income Tax Expense (Benefit) [Abstract] | ||
Current | $ 0 | $ 0 |
Deferred | 0 | 0 |
Total | $ 0 | $ 0 |
14. INCOME TAXES (Details) - _2
14. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Income (loss) before income taxes | $ 1,850,899 | $ 4,529,262 |
Statutory tax rate | 27.60% | 39.60% |
Total tax at statutory rate | $ 510,000 | $ 1,794,000 |
Temporary differences | 53,000 | 255,000 |
Permanent difference – meals and entertainment | 7,000 | 6,000 |
Permanent differences- non cash compensation, and discount amortization | 18,000 | 256,700 |
Total | 588,000 | 2,311,700 |
Changes in valuation allowance | (588,000) | (2,311,700) |
Income tax expense | $ 0 | $ 0 |
14. INCOME TAXES (Details) - _3
14. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets (Liabilities): | ||
Net operating loss carryforwards | $ 410,000 | $ 997,500 |
Allowance for doubtful accounts | 7,000 | (7,100) |
Property and equipment | (132,600) | 38,000 |
Intangible assets | (350,000) | (154,800) |
Accrued officer compensation | 18,700 | 18,700 |
Net deferred tax assets (liabilities) | (46,900) | 892,300 |
Valuation allowance | 46,900 | (892,300) |
Net deferred tax assets (liabilities) | $ 0 | $ 0 |
15. EQUITY (Details)
15. EQUITY (Details) - USD ($) | Mar. 05, 2018 | May 31, 2018 | Mar. 23, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
15. EQUITY (Details) [Line Items] | ||||||||
Common Stock Issued, but not Outstanding | 2,491,112 | 2,587,580 | 2,491,112 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | |||||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ 35,000 | |||||||
Payments for Repurchase of Other Equity (in Dollars) | 167,000 | $ 163,925 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (in Dollars) | 19,098 | |||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 48,307 | |||||||
Stock Repurchased and Retired During Period, Shares | 66,668 | 37,000 | ||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 18,592 | |||||||
Treasury Stock, Shares, Acquired | 27,800 | |||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $ 0.79 | |||||||
Payments for Repurchase of Equity (in Dollars) | $ 22,117 | |||||||
Proceeds from Warrant Exercises (in Dollars) | 0 | 196,741 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition (in Dollars) | 240,208 | |||||||
Debt Conversion, Original Debt, Amount (in Dollars) | 0 | $ 164,650 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,410,392 | |||||||
Shares Paid for Tax Withholding for Share Based Compensation | 623,813 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | 2,533,246 | |||||||
Stockholders' Equity, Other Shares | 500,959 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 70,000 | |||||||
Stock Issued During Period, Value, Share-based Compensation, Gross (in Dollars) | $ 33,600 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities (in Dollars) | $ 196,741 | |||||||
Treasury Stock, Shares, Retired | 642,688 | |||||||
Stock Repurchased During Period, Value (in Dollars) | 167,000 | $ 163,925 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 1,070,000 | |||||||
Proceeds from Stock Options Exercised (in Dollars) | $ 35,000 | $ 105,000 | ||||||
Stock Issued During Period, Shares Structure Equity Agreement | 200,000 | |||||||
Treasury Stock, Shares | 2,276,703 | 2,373,171 | 2,276,703 | |||||
Warrants and Rights Outstanding (in Dollars) | $ 0 | $ 0 | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 1,135,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price (in Dollars per share) | $ 1.51 | |||||||
Share Price (in Dollars per share) | $ 1.19 | $ 0.58 | $ 1.19 | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ 67,405 | $ 439,774 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 200,000 | 600,000 | 200,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 1,070,000 | |||||||
Restricted Stock [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition (in Dollars) | $ 240,208 | |||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,370,000 | |||||||
Share-based Compensation (in Dollars) | $ 240,208 | $ 240,208 | ||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,480,392 | |||||||
Shares Paid for Tax Withholding for Share Based Compensation | 623,813 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | 1,370,000 | |||||||
Adjustments to Additional Paid in Capital, Other (in Dollars) | 33,453 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 1,370,000 | |||||||
Share-based Compensation (in Dollars) | $ 0 | |||||||
Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 1,370,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 1,135,000 | 515,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 675,000 | 950,000 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.38 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | $ 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | $ 15,500 | $ 15,500 | ||||||
Allocated Share-based Compensation Expense (in Dollars) | $ 19,098 | 38,847 | ||||||
Chief Executive Officer [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 60,507 | |||||||
Shares Deemed Issued from Exercise of Options | 55,192 | |||||||
Payments for Repurchase of Other Equity (in Dollars) | $ 45,000 | $ 45,000 | ||||||
Payments for Repurchase of Equity (in Dollars) | $ 45,000 | $ 24,000 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 658,600 | |||||||
Debt Conversion, Original Debt, Amount (in Dollars) | $ 164,650 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 658,600 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 400,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 55,192 | |||||||
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | 95,954 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 586,586 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 700,000 | |||||||
President [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 55,192 | |||||||
Shares Deemed Issued from Exercise of Options | 60,507 | 60,507 | ||||||
Payments for Repurchase of Other Equity (in Dollars) | $ 45,000 | $ 45,000 | ||||||
Payments for Repurchase of Equity (in Dollars) | $ 45,000 | $ 24,000 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 46,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 400,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 60,507 | |||||||
President [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | 306,505 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 928,027 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 490,000 | |||||||
Two Chief Executive Officers [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 34,925 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 367,500 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition (in Dollars) | $ 34,925 | |||||||
Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 48,000 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 365,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 200,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 180,000 | |||||||
Repurchased From Each Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 24,000 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities (in Dollars) | $ 100,000 | |||||||
Each of Three Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 90,000 | |||||||
Principal Accounting Officer [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 8,125 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 87,500 | |||||||
Two Directors [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 48,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 200,000 | |||||||
One Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 77,000 | $ 33,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0 | |||||||
Non-Vested Awards [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | 3,104,205 | |||||||
Share-based Compensation Award, Tranche One [Member] | Restricted Stock [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,070,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 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 | |||||||
Share-based Compensation Award, Tranche Two [Member] | Restricted Stock [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 300,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days | |||||||
Share-based Compensation Award, Tranche Two [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting for the remaining 300,000 restricted stock awards is contingent upon meeting certain price and volume conditions related to the Company’s stock; these conditions are the same conditions required for vesting of the cancelled RSUs | |||||||
Vested Awards [Member] | Restricted Stock [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation (in Dollars) | $ 0 | |||||||
Convertible Debt [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Debt Conversion, Original Debt, Amount (in Dollars) | $ 1,155,807 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 4,626,427 | |||||||
Treasury Stock, Common [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Shares | 2,000 | |||||||
Common Stock Repurchased Price Per Share (in Dollars per share) | $ 0.97 | |||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 1,940 | |||||||
Warrant Exercise [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Other | 499,421 | |||||||
Proceeds from Warrant Exercises (in Dollars) | $ 196,741 | |||||||
Option Exercised, Intrinsic Value [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition (in Dollars) | 33,000 | |||||||
Option Exercised, Intrinsic Value [Member] | Chief Executive Officer [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 33,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Cashless Exercise of Warrants [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 250,000 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities (in Dollars) | $ 25 | |||||||
Common Stock Repurchased [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Repurchased During Period, Shares | 639,383 | |||||||
Stock Repurchased During Period, Value (in Dollars) | $ 235,000 | |||||||
Common Stock Repurchased #2 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Shares | 438,379 | |||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 252,068 | |||||||
Cashless Exercise of Warrants [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 693,860 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition (in Dollars) | $ 69 | |||||||
Common Stock Issued for Exercise of Options #1 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | |||||||
Proceeds from Stock Options Exercised (in Dollars) | $ 35,000 | |||||||
Common Stock Issued for Exercise of Options #2 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 200,000 | |||||||
Proceeds from Stock Options Exercised (in Dollars) | $ 70,000 | |||||||
Option Exercises in December 2017 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 115,699 | |||||||
Option Repurchase #1 [Member] | President [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 9,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Option Repurchase #2 [Member] | President [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 13,400 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 140,000 | |||||||
Option Repurchase #2 [Member] | Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 33,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Option Repurchase #3 [Member] | President [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 24,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Repurchased From Each Director [Member] | Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Payments for Repurchase of Equity (in Dollars) | $ 24,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 100,000 | |||||||
Options at $0.350 [Member] | Chief Executive Officer [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.350 [Member] | President [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.350 [Member] | Director [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 0.35 | |||||||
Options at $0.570 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 0.57 | |||||||
Options at $0.570 [Member] | Chief Executive Officer [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.57 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.57 | |||||||
Options at $0.570 [Member] | President [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 100,000 | ||||||
Option exercise price (in Dollars per share) | $ 0.57 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.57 | |||||||
Options at $0.570 [Member] | One Director [Member] | ||||||||
15. EQUITY (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) | $ 0.35 | |||||||
Options at $1.10 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 1.10 | 1.10 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 75,000 | |||||||
Options at $1.10 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 1.10 | |||||||
Options at $0.75 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 0.75 | 0.75 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||
Options at $0.75 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 0.75 | |||||||
Options at $0.95 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 0.95 | 0.95 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||
Options at $0.95 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 0.95 | |||||||
Options at $1.50 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 1.50 | 1.50 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 125,000 | |||||||
Options at $1.50 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 1.50 | |||||||
Options at $2.00 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 2 | 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 125,000 | |||||||
Options at $2.00 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 2 | |||||||
Options at $2.50 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 2.50 | 2.50 | 2.50 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 125,000 | |||||||
Options at $2.50 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 2.50 | |||||||
Options at $3.00 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 3 | 3 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 125,000 | |||||||
Options at $3.00 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 3 | |||||||
Options at $1.90 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | 1.90 | $ 1.90 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 15,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price (in Dollars per share) | $ 1.90 | |||||||
Options at $1.90 [Member] | Employee Stock Option [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 1.90 | |||||||
Options at $2.00 [Member] | ||||||||
15. EQUITY (Details) [Line Items] | ||||||||
Option exercise price (in Dollars per share) | $ 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 500,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price (in Dollars per share) | $ 2 |
15. EQUITY (Details) - Schedul
15. EQUITY (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of options outstanding (in Shares) | 1,050,000 | 1,510,000 | 2,445,000 |
Weighted average remaining contractual life | 2 years 18 days | ||
Weighted average exercise price of options outstanding | $ 1.80 | $ 1.60 | $ 1.01 |
Number of options exercisable (in Shares) | 450,000 | ||
Weighted average exercise price of options exercisable | $ 1.52 | ||
Options at $0.75 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 0.75 | ||
Number of options outstanding (in Shares) | 50,000 | ||
Weighted average remaining contractual life | 3 years | ||
Weighted average exercise price of options outstanding | $ 0.75 | ||
Weighted average exercise price of options exercisable | 0 | ||
Options at $0.95 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 0.95 | ||
Number of options outstanding (in Shares) | 50,000 | ||
Weighted average remaining contractual life | 3 years | ||
Weighted average exercise price of options outstanding | $ 0.95 | ||
Weighted average exercise price of options exercisable | 0 | ||
Options at $1.10 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 1.10 | ||
Number of options outstanding (in Shares) | 75,000 | ||
Weighted average remaining contractual life | 2 years 135 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 $1.310 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 1.31 | ||
Number of options outstanding (in Shares) | 100,000 | ||
Weighted average remaining contractual life | 3 days | ||
Weighted average exercise price of options outstanding | $ 1.31 | ||
Number of options exercisable (in Shares) | 100,000 | ||
Weighted average exercise price of options exercisable | $ 1.10 | ||
Options at $1.38 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 1.38 | ||
Number of options outstanding (in Shares) | 100,000 | ||
Weighted average remaining contractual life | 335 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 Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 1.50 | ||
Number of options outstanding (in Shares) | 125,000 | ||
Weighted average remaining contractual life | 3 years | ||
Weighted average exercise price of options outstanding | $ 1.50 | ||
Options at $1.90 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 1.90 | ||
Number of options outstanding (in Shares) | 175,000 | ||
Weighted average remaining contractual life | 175 days | ||
Weighted average exercise price of options outstanding | $ 1.90 | ||
Number of options exercisable (in Shares) | 175,000 | ||
Weighted average exercise price of options exercisable | $ 1.90 | ||
Options at $2.00 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 2 | ||
Number of options outstanding (in Shares) | 125,000 | ||
Weighted average remaining contractual life | 3 years | ||
Weighted average exercise price of options outstanding | $ 2 | ||
Options at $2.50 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 2.50 | ||
Number of options outstanding (in Shares) | 125,000 | ||
Weighted average remaining contractual life | 3 years | ||
Weighted average exercise price of options outstanding | $ 2.50 | ||
Options at $3.00 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise prices | $ 3 | ||
Number of options outstanding (in Shares) | 125,000 | ||
Weighted average remaining contractual life | 3 years | ||
Weighted average exercise price of options outstanding | $ 3 | ||
Weighted average exercise price of options exercisable | $ 0 |
15. EQUITY (Details) - Sched_2
15. EQUITY (Details) - Schedule of share-based compensation, stock options, activity - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
15. EQUITY (Details) - Schedule of share-based compensation, stock options, activity [Line Items] | ||
Options Outstanding | 1,510,000 | 2,445,000 |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 1.60 | $ 1.01 |
Options Issued | 675,000 | 950,000 |
Options Issued, Weighted Average Exercise Price (in Dollars per share) | $ 1.91 | $ 1.55 |
Options Exercised | 0 | (1,370,000) |
Options Exercised, Weighted Average Exercise Price (in Dollars per share) | $ 0.38 | |
Options Forfeited or expired | (1,135,000) | (515,000) |
Options Forfeited or expired, Weighted Average Exercise Price (in Dollars per share) | $ 1.51 | $ 2 |
Options Outstanding | 1,050,000 | 1,510,000 |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 1.80 | $ 1.60 |
15. EQUITY (Details) - Sched_3
15. EQUITY (Details) - Schedule of Options Exercise Price - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | ||
15. EQUITY (Details) - Schedule of Options Exercise Price [Line Items] | ||
Exercise price lower than market price | $ 0 | |
Exercise price equal to market price | 0 | |
Exercise price exceeded market price | 0.75 | $ 1.04 |
Maximum [Member] | ||
15. EQUITY (Details) - Schedule of Options Exercise Price [Line Items] | ||
Exercise price lower than market price | 0 | |
Exercise price equal to market price | 0 | |
Exercise price exceeded market price | $ 3 | $ 1.38 |
15. EQUITY (Details) - Fair Va
15. EQUITY (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Volatility | 43.00% | 47.30% |
Risk-free interest rates | 2.67% | 0.87% |
Term (years) | 3 years | 292 days |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Volatility | 48.10% | 56.90% |
Risk-free interest rates | 2.91% | 2.00% |
Term (years) | 3 years 47 days | 2 years 6 months |
16. COMMITMENTS AND CONTINGEN_2
16. COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Jan. 23, 2018 | Jul. 07, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
16. COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Current | $ 472,876 | $ 200,000 | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | 357,600 | 200,000 | ||
Payment for Contingent Consideration Liability, Financing Activities | 189,000 | 0 | ||
Other Noncash Income | 11,000 | 0 | ||
Loss Contingency, Damages Sought, Value | $ 1,000,000 | |||
IGourmet, LLC [Member] | ||||
16. COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 787,800 | 394,900 | ||
Business Combination, Assets and Liabilities Arising from Contingencies, Description | 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 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (392,900) | |||
Business Combination, Contingent Consideration, Liability, Current | 132,300 | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | 257,600 | |||
Oasis Sales and Marketing, LLC [Member] | ||||
16. COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 400,000 | $ 400,000 | ||
Business Combination, Contingent Consideration, Liability, Current | 200,000 | |||
Payment for Contingent Consideration Liability, Financing Activities | 189,000 | |||
Other Noncash Income | 11,000 | |||
Mouth Foods [Member] | ||||
16. COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 240,576 | |||
Business Combination, Contingent Consideration, Liability, Current | 140,576 | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 100,000 |
17. MAJOR CUSTOMER (Details)
17. MAJOR CUSTOMER (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
17. MAJOR CUSTOMER (Details) [Line Items] | ||
Concentration Risk, Percentage | 57.00% | 72.00% |
19. SUBSEQUENT EVENTS (Details)
19. SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($) | Mar. 18, 2019 | Jan. 28, 2019 |
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in Shares) | 131,136 | |
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 182,581 | |
Shares Paid for Tax Withholding for Share Based Compensation (in Shares) | 51,445 | |
Mr. Sam Klepfish, CEO [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Employment Agreement Term | 3 years | |
Employment Agreement Base Salary (in Dollars) | $ 300,000 | |
Employment Agreement Base Salary, Minimum Annual Increase (in Dollars) | $ 25,000 | |
Annual Stock Compensation, Percentage of Base Salary | 50.00% | |
Bonus, Percentage of Base Compensation | 25.00% | |
Mr. Sam Klepfish, CEO [Member] | Employee Agreement, Extension #1 [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Employment Agreement, Extension period | 2 years | |
Mr. Sam Klepfish, CEO [Member] | Employee Agreement, Extension #2 [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Employment Agreement, Extension period | 2 years | |
Mr. Justin Wiernasz, Director of Strategic Acquisitions [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Employment Agreement Term | 3 years | |
Employment Agreement Base Salary (in Dollars) | $ 326,000 | |
Employment Agreement Base Salary, Minimum Annual Increase (in Dollars) | $ 0.05 | |
Annual Stock Compensation, Percentage of Base Salary | 5.00% | |
Bonus, Percentage of Base Compensation | 35.00% | |
Employment Agreement, Modified Base Salary (in Dollars) | $ 350,000 | |
Mr. Justin Wiernasz, Director of Strategic Acquisitions [Member] | Employee Agreement, Extension #1 [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Employment Agreement, Extension period | 2 years | |
Mr. Justin Wiernasz, Director of Strategic Acquisitions [Member] | Employee Agreement, Extension #2 [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Employment Agreement, Extension period | 1 year | |
Two Non-Employee Directors [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Payment to Related Party (in Dollars) | $ 45,000 | |
Stock Issued During Period, Shares, New Issues (in Shares) | 45,000 | |
Salary and Wage, Officer, Excluding Cost of Good and Service Sold (in Dollars) | $ 30,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 30,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
All Directors [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 450,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |
Minimum [Member] | All Directors [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ 0.62 | |
Maximum [Member] | All Directors [Member] | ||
19. SUBSEQUENT EVENTS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ 1.20 |