Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | INNOVATIVE FOOD HOLDINGS, INC. | |
Trading Symbol | N/A | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 47,779,010 | |
Amendment Flag | false | |
Entity Central Index Key | 0000312257 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-9376 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 20-1167761 | |
Entity Address, Address Line One | 28411 Race Track Rd. | |
Entity Address, City or Town | Bonita Springs | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34135 | |
City Area Code | 239 | |
Local Phone Number | 596-0204 | |
Title of 12(b) Security | N/A | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 2,752,404 | $ 6,122,671 |
Accounts receivable, net | 4,670,645 | 3,256,764 |
Inventory | 2,937,098 | 3,109,984 |
Other current assets | 336,350 | 314,107 |
Total current assets | 10,696,497 | 12,803,526 |
Property and equipment, net | 8,008,057 | 8,186,227 |
Investments | 286,725 | 286,725 |
Right of use assets, operating leases, net | 168,344 | 232,381 |
Right of use assets, finance leases, net | 603,803 | 669,039 |
Other amortizable intangible assets, net | 41,325 | 72,218 |
Tradenames and other unamortizable intangible assets | 1,532,822 | 1,532,822 |
Total assets | 21,337,573 | 23,782,938 |
Current liabilities | ||
Accounts payable and accrued liabilities | 6,070,249 | 5,702,905 |
Accrued interest, current portion | 18,008 | 29,349 |
Deferred revenue | 1,094,649 | 1,631,406 |
Line of Credit | 2,014,333 | 2,000,000 |
Notes payable - current portion, net of discount | 5,667,485 | 412,961 |
Lease liability - operating leases, current | 63,569 | 74,088 |
Lease liability - finance leases, current | 188,818 | 159,823 |
Contingent liability - current portion | 187,000 | 187,000 |
Total current liabilities | 15,304,111 | 10,197,532 |
Lease liability - operating leases, non-current | 104,775 | 158,293 |
Lease liability - finance leases, non-current | 382,286 | 499,240 |
Contingent liability - long-term | 108,600 | 108,600 |
Note payable - long term portion, net | 1,899 | 5,409,172 |
Total liabilities | 15,901,671 | 16,372,837 |
Commitments & Contingencies (see note 17) | ||
Stockholders' equity | ||
Common stock: $0.0001 par value; 500,000,000 shares authorized; 50,616,590 and 48,879,331 shares issued, and 47,779,010 and 46,041,751 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 5,057 | 4,885 |
Additional paid-in capital | 42,132,756 | 41,662,710 |
Treasury stock: 2,623,171 and 2,623,171 shares outstanding at September 30, 2022 and December 31, 2021, respectively. | (1,141,370) | (1,141,370) |
Accumulated deficit | (35,560,541) | (33,116,124) |
Total stockholders' equity | 5,435,902 | 7,410,101 |
Total liabilities and stockholders' equity | $ 21,337,573 | $ 23,782,938 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
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 | 47,779,010 | 46,041,751 |
Common stock, shares issued | 50,616,590 | 48,879,331 |
Treasury stock, shares | 2,623,171 | 2,623,171 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 20,059,982 | $ 15,207,353 | $ 56,226,249 | $ 41,362,816 |
Cost of goods sold | 15,546,132 | 11,427,343 | 43,537,570 | 30,471,401 |
Gross margin | 4,513,850 | 3,780,010 | 12,688,679 | 10,891,415 |
Selling, general and administrative expenses | 4,320,981 | 4,998,673 | 15,015,456 | 14,512,803 |
Total operating expenses | 4,320,981 | 4,998,673 | 15,015,456 | 14,512,803 |
Operating (loss) income | 192,869 | (1,218,663) | (2,326,777) | (3,621,388) |
Other income (expense:) | ||||
Impairment of investment | 0 | 0 | 0 | (209,850) |
Gain on interest rate swap | 0 | 0 | 294,000 | 0 |
Gain on forgiveness of debt | 0 | 1,665,818 | 0 | 1,665,818 |
Loss on extinguishment of debt | 0 | 0 | (40,556) | 0 |
Other leasing income | 785 | 1,900 | 8,169 | 8,940 |
Interest expense, net | (183,908) | (82,029) | (379,253) | (257,889) |
Total other income (expense) | (183,123) | 1,585,689 | (117,640) | 1,207,019 |
Net (loss) income before taxes | 9,746 | 367,026 | (2,444,417) | (2,414,369) |
Income tax expense | 0 | 0 | 0 | 0 |
Net (loss) income | $ 9,746 | $ 367,026 | $ (2,444,417) | $ (2,414,369) |
Net (loss) income per share - basic (in Dollars per share) | $ 0 | $ 0.01 | $ (0.05) | $ (0.06) |
Net (loss) income per share - diluted (in Dollars per share) | $ 0 | $ 0.01 | $ (0.05) | $ (0.06) |
Weighted average shares outstanding - basic (in Shares) | 47,390,976 | 40,253,543 | 46,838,377 | 37,254,290 |
Weighted average shares outstanding - diluted (in Shares) | 47,390,976 | 40,253,543 | 46,838,377 | 37,254,290 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2020 | $ 3,817 | $ 37,415,155 | $ (1,141,370) | $ (32,399,793) | $ 3,877,809 |
Balance (in Shares) at Dec. 31, 2020 | 38,209,060 | 2,623,171 | |||
Net income (loss) | (2,414,369) | (2,414,369) | |||
Fair value of shares issued to employees and service providers | $ 94 | 476,038 | 476,132 | ||
Fair value of shares issued to employees and service providers (in Shares) | 926,821 | ||||
Offering expenses for stock previously sold for cash | 0 | ||||
Common stock sold for cash, net of costs | $ 938 | 3,579,434 | 3,580,372 | ||
Common stock sold for cash, net of costs (in Shares) | 9,375,000 | ||||
Balance at Sep. 30, 2021 | $ 4,849 | 41,470,627 | $ (1,141,370) | (34,814,162) | 5,519,944 |
Balance (in Shares) at Sep. 30, 2021 | 48,510,881 | 2,623,171 | |||
Balance at Jun. 30, 2021 | $ 3,877 | 37,730,475 | $ (1,141,370) | (35,181,188) | 1,411,794 |
Balance (in Shares) at Jun. 30, 2021 | 38,800,629 | 2,623,171 | |||
Net income (loss) | 367,026 | 367,026 | |||
Fair value of shares issued to employees and service providers | $ 34 | 160,718 | 160,752 | ||
Fair value of shares issued to employees and service providers (in Shares) | 335,252 | ||||
Common stock sold for cash, net of costs | $ 938 | 3,579,434 | 3,580,372 | ||
Common stock sold for cash, net of costs (in Shares) | 9,375,000 | ||||
Balance at Sep. 30, 2021 | $ 4,849 | 41,470,627 | $ (1,141,370) | (34,814,162) | 5,519,944 |
Balance (in Shares) at Sep. 30, 2021 | 48,510,881 | 2,623,171 | |||
Balance at Dec. 31, 2021 | $ 4,885 | 41,662,710 | $ (1,141,370) | (33,116,124) | 7,410,101 |
Balance (in Shares) at Dec. 31, 2021 | 48,879,331 | 2,623,171 | |||
Net income (loss) | (2,444,417) | (2,444,417) | |||
Fair value of shares issued to employees and service providers | $ 155 | 458,023 | 458,178 | ||
Fair value of shares issued to employees and service providers (in Shares) | 1,560,957 | ||||
Offering expenses for stock previously sold for cash | (50,000) | (50,000) | |||
Common stock issued for services | $ 17 | 59,931 | 59,948 | ||
Common stock issued for services (in Shares) | 176,302 | ||||
Fair value of options issued to consultant | 2,092 | 2,092 | |||
Balance at Sep. 30, 2022 | $ 5,057 | 42,132,756 | $ (1,141,370) | (35,560,541) | 5,435,902 |
Balance (in Shares) at Sep. 30, 2022 | 50,616,590 | 2,623,171 | |||
Balance at Jun. 30, 2022 | $ 4,997 | 41,980,090 | $ (1,141,370) | (35,570,287) | 5,273,430 |
Balance (in Shares) at Jun. 30, 2022 | 50,014,147 | 2,623,171 | |||
Net income (loss) | 9,746 | 9,746 | |||
Fair value of shares issued to employees and service providers | $ 60 | 152,666 | 152,726 | ||
Fair value of shares issued to employees and service providers (in Shares) | 602,443 | ||||
Balance at Sep. 30, 2022 | $ 5,057 | $ 42,132,756 | $ (1,141,370) | $ (35,560,541) | $ 5,435,902 |
Balance (in Shares) at Sep. 30, 2022 | 50,616,590 | 2,623,171 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (2,444,417) | $ (2,414,369) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on forgiveness of debt | 0 | (1,665,818) |
Impairment of investment | 0 | 209,850 |
Depreciation and amortization | 423,844 | 407,704 |
Amortization of right-of-use asset | 50,821 | 76,005 |
Amortization of prepaid loan fees | 70,618 | 9,368 |
Stock based compensation | 520,218 | 476,132 |
Loss on extinguishment of debt | 40,556 | 0 |
Provision for doubtful accounts | 11,493 | 32,443 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (1,425,374) | (1,254,764) |
Inventory and other current assets, net | 150,643 | 869,165 |
Accounts payable and accrued liabilities | 386,414 | (747,187) |
Deferred revenue | (536,757) | (1,861,665) |
Contingent liabilities | 0 | (8,000) |
Operating lease liability | (50,821) | (76,005) |
Net cash (used in) operating activities | (2,802,762) | (5,947,141) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (107,045) | (14,812) |
Net cash used in investing activities | (107,045) | (14,812) |
Cash flows from financing activities: | ||
Payment of offering costs for stock previously issued | (50,000) | 0 |
Proceeds from sale of common stock, net of costs | 3,580,372 | |
Proceeds from Payroll Protection Plan Loan | 0 | 1,748,414 |
Principal payments on debt | (169,696) | (299,924) |
Principal payments financing leases | (130,459) | (108,528) |
Cost of debt financing | (110,305) | 0 |
Net cash provided by (used in) financing activities | (460,460) | 4,920,334 |
Decrease in cash and cash equivalents | (3,370,267) | (1,041,619) |
Cash and cash equivalents at beginning of period | 6,122,671 | 5,060,015 |
Cash and cash equivalents at end of period | 2,752,404 | 4,018,396 |
Cash paid during the period for: | ||
Interest | 187,090 | 250,967 |
Taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Increase in right of use assets & liabilities – new leases | 0 | 88,359 |
Decrease in right of use assets & liabilities – cancellation of lease | 13,216 | 0 |
Finance lease for fixed assets | 42,500 | 21,885 |
Debt to Fifth Third Bank paid directly by Maple Mark Bank | 7,695,866 | 0 |
Reclassification of accounts receivable to other assets | $ 0 | $ 22,380 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited interim consolidated financial statements of Innovative Food Holdings, Inc., and its wholly owned subsidiaries, some of which are non-operating, Artisan Specialty Foods, Inc. (“Artisan”), Food Innovations, Inc. (“FII”), Food New Media Group, Inc. (“FNM”), Organic Food Brokers, LLC (“OFB”), Gourmet Foodservice Group, Inc. (“GFG”), Gourmet Foodservice Group Warehouse, Inc. (“GFW”), Gourmeting, Inc. (“Gourmeting”), Haley Food Group, Inc. (“Haley”), Oasis Sales Corp. (“Oasis”), 4 The Gourmet, Inc. (d/b/a For The Gourmet, Inc.), (“Gourmet”), Innovative Food Properties, LLC (“IFP”), Plant Innovations, Inc. (“Plant Innovations”), Innovative Gourmet, LLC (“Innovative Gourmet” or “igourmet”), Food Funding, LLC (“Food Funding”), Logistics Innovations, LLC (L Innovations”), M Innovations, LLC (“M Innovations”), MI Foods, LLC (“MIF”), M Foods Innovations, LLC (“M Foods”), P Innovations, LLC (“P Innovations”), PlantBelly, LLC (“PlantBelly”), Innovative Foods, Inc. (“IFI”) and Innovative Gourmet Partnerships, LLC (“IGP”), and collectively with IVFH and its other subsidiaries, the “Company” or “IVFH”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. All material intercompany transactions have been eliminated upon consolidation of these entities. The accompanying unaudited interim consolidated financial statements have been prepared by the Company, in accordance with generally accepted accounting principles pursuant to Regulation S-X of the Securities and Exchange Commission and with the instructions to Form 10-Q. Certain information and footnote disclosures normally included in audited consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Accordingly, these interim financial statements should be read in conjunction with the Company’s audited financial statements and related notes as contained in Form 10-K for the year ended December 31, 2021. In the opinion of management, the interim unaudited consolidated financial statements reflect all adjustments, including normal recurring adjustments, necessary for fair presentation of the interim periods presented. The results of the operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results of operations to be expected for the full year. |
NATURE OF ACTIVITIES AND SIGNIF
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Business Activity Our business is currently conducted by our wholly owned subsidiaries, some of which are non-operating, Artisan Specialty Foods, Inc. (“Artisan”), Food Innovations, Inc. (“FII”), Food New Media Group, Inc. (“FNM”), Organic Food Brokers, LLC (“OFB”), Gourmet Foodservice Group, Inc. (“GFG”), Gourmet Foodservice Group Warehouse, Inc. (“GFW”), Gourmeting, Inc. (“Gourmeting”), Haley Food Group, Inc. (“Haley”), Oasis Sales Corp. (“Oasis”), 4 The Gourmet, Inc. (d/b/a For The Gourmet, Inc.), (“Gourmet”), Innovative Food Properties, LLC (“IFP”), Plant Innovations, Inc. (“Plant Innovations”), Innovative Gourmet, LLC (“Innovative Gourmet” or “igourmet”), Food Funding, LLC (“Food Funding”), Logistics Innovations, LLC (L Innovations”), M Innovations, LLC (“M Innovations” or “Mouth”), MI Foods, LLC (“MIF”), M Foods Innovations, LLC (“M Foods”), P Innovations, LLC (“P Innovations”), PlantBelly, LLC (“PlantBelly”), Innovative Foods, Inc. (“IFI”) and Innovative Gourmet Partnerships, LLC (“IGP”), and collectively with IVFH and its other subsidiaries, the “Company” or “IVFH”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. All material intercompany transactions have been eliminated upon consolidation of these entities. 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, through its relationship with the producers, growers, and makers of thousands of unique specialty foodservice products and through its relationship with US Foods, Inc. (“U.S. Foods” or “USF”), has been in the business of providing premium restaurants, within 24 – 72 hours, with the freshest origin-specific perishable, and healthcare products shipped directly from our network of vendors and from our warehouses. Our customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals and catering houses. Gourmet has been in the business of providing specialty food via e-commerce through its own website at www.forthegourmet.com and through other ecommerce channels, with unique specialty gourmet food products shipped directly from our network of vendors and from our warehouses within 24 – 72 hours. 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. GFG is focused on expanding the Company’s program offerings to additional specialty foodservice customers. 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. IFP was formed to hold the Company’s real estate holdings including the recently acquired facility in Mountaintop, Pennsylvania. 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 D2C specialty food via e-commerce through its own website at www.igourmet.com and through other channels such as www.amazon.com, www.ebay.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 approximately 100,000 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. P Innovations focus is to leverage acquired assets to expand the Company’s subscription-based e-commerce business activities and to launch new businesses leveraging the Company’s e-commerce platform. Plant Innovations is focused on plant-based D2C brands and online retail within the e-commerce space. L Innovations provides 3rd party warehouse and fulfillment services out of its location at the Company’s PA facility. Use of Estimates The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate these estimates, including those related to revenue recognition and concentration of credit risk. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Accounts subject to estimate and judgements are accounts receivable reserves, income taxes, intangible assets, contingent liabilities, operating and finance right of use assets and liabilities, and equity-based instruments. Actual results may differ from these estimates under different assumptions or conditions. We believe our estimates have not been materially inaccurate in past years, and our assumptions are not likely to change in the foreseeable future. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Innovative Food Holdings, Inc., and its wholly owned operating subsidiaries, Artisan, FII, FNM, OFB, GFG, GFW, Gourmeting, Haley, Oasis, Innovative Gourmet, Food Funding, IFP, L Innovations, M Innovations, P Innovations, MIF, M Foods, PlantBelly, Plant Innovations, IFI, IGP, and Gourmet. All material intercompany transactions have been eliminated upon consolidation of these entities. Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash in investments with credit quality institutions. At times, such investments may be in excess of applicable government mandated insurance limit. At September 30, 2022 and December 31, 2021, trade receivables from the Company’s largest customer amounted to 27% and 28%, respectively, of total trade receivables. During the nine months ended September 30, 2022 and 2021, sales from the Company’s largest customer amounted to 51% and 48% of total sales, respectively. The Company maintains cash balances in excess of Federal Deposit Insurance Corporation limits. At September 30, 2022 and December 31, 2021, the total cash in excess of these limits was $403,255 and $4,555,032, respectively. Leases The Company accounts for leases in accordance with Financial Accounting Standards Board (“FASB”) ASC 842, “Leases”. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included on the face of the consolidated balance sheet. Finance lease ROU assets are presented within other assets, and finance lease liabilities are presented within current and long-term liabilities. ROU assets represent the right of use to an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and it recognizes such lease payments on a straight-line basis over the lease term. Revenue Recognition The Company recognizes revenue upon product delivery. All of our products are shipped either same day or overnight or through longer shipping terms to the customer and the customer takes title to product and assumes risk and ownership of the product when it is delivered. Shipping charges to customers and sales taxes collectible from customers, if any, are included in revenues. For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606 Revenue from Contracts with Customers Warehouse and logistic services revenue is primarily comprised of inventory management, order fulfilment and warehousing services. Warehouse & logistics services revenues are recognized at the point in time when the services are rendered to the customer. Deferred Revenue Certain customer arrangements in the Company's business such as gift cards and e-commerce subscription purchases result in deferred revenues when cash payments are received in advance of performance. Gift cards issued by the Company generally have an expiration of five years from date of purchase. The Company records a liability for unredeemed gift cards and advance payments for monthly club memberships, as cash is received, and the liability is reduced when the card is redeemed or product delivered. The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance as of December 31, 2020 $ 2,917,676 Cash payments received 591,886 Net sales recognized (2,376,151 ) Balance as of March 31, 2021 (unaudited) $ 1,133,411 Cash payments received 375,115 Net sales recognized (527,991 ) Balance as of June 30, 2021 (unaudited) $ 980,535 Cash payments received 401,097 Net sales recognized (325,621 ) Balance as of September 30, 2021 (unaudited) $ 1,056,011 Balance as of December 31, 2021 $ 1,631,406 Cash payments received 700,582 Net sales recognized (1,081,044 ) Balance as of March 31, 2022 (unaudited) $ 1,250,944 Cash payments received 99,989 Net sales recognized (128,686 ) Balance as of June 30, 2022 (unaudited) $ 1,222,247 Cash payments received 385,633 Net sales recognized (513,231 ) Balance as of September 30, 2022 (unaudited) $ 1,094,649 Disaggregation of Revenue The following table represents a disaggregation of revenue for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 2021 (unaudited) (unaudited) Specialty Foodservice $ 17,630,515 $ 12,060,223 E-Commerce 1,839,541 2,652,307 National Brand Management 336,766 260,934 Logistics 253,160 233,889 Total $ 20,059,982 $ 15,207,353 Nine Months Ended September 30, 2022 2021 (unaudited) (unaudited) Specialty Foodservice $ 46,072,258 $ 29,049,060 E-Commerce 8,637,210 10,917,318 National Brand Management 872,732 751,865 Logistics 644,049 644,573 Total $ 56,226,249 $ 41,362,816 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. We have also included all payroll costs as cost of goods sold in our leasing and logistics services business. Basic and Diluted Earnings Per Share Basic net earnings per share is based on the weighted average number of shares outstanding during the period, while fully-diluted net earnings per share is based on the weighted average number of shares of common stock and potentially dilutive securities assumed to be outstanding during the period using the treasury stock method. Potentially dilutive securities consist of options and warrants to purchase common stock, and convertible debt. Basic and diluted net loss per share is computed based on the weighted average number of shares of common stock outstanding during the period. The Company uses the treasury stock method to calculate the impact of outstanding stock options and warrants. Stock options and warrants for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on earnings per common share and, accordingly, are excluded from the calculation. For the three and nine months ended September 30, 2022, 2,300,000 stock options were excluded from the calculation of fully diluted earnings per share because the effect would have been anti-dilutive. For the three and nine months ended September 30, 2021, 2,225,000 stock options were excluded from the calculation of fully diluted earnings per share because the effect would have been anti-dilutive. Dilutive shares at September 30, 2022: Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at September 30, 2022: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.41 125,000 1.57 $ 0.50 125,000 1.57 $ 0.60 50,000 3.25 $ 0.62 360,000 1.25 $ 0.85 540,000 1.25 $ 1.00 50,000 3.25 $ 1.20 1,050,000 1.15 2,300,000 1.33 Restricted Stock Awards At September 30, 2022, there are 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. The fair value of these RSUs at the date of the grants will be charged to operations upon vesting. Stock Grants At September 30, 2022, there were an aggregate 86,236 unvested stock grants outstanding due to the Company’s two independent directors. These grants will vest as follows: 25,816 per quarter through December 31, 2022, and 15,106 per quarter through September 30, 2023, and 15,102 during the quarter ended December 31, 2023. The fair value of these stock grants at the date of the grant were charged to operations upon vesting. Dilutive shares at September 30, 2021: Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at September 30, 2021: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.60 50,000 4.25 $ 0.62 360,000 2.25 $ 0.85 540,000 2.25 $ 1.00 50,000 4.25 $ 1.20 1,100,000 2.04 $ 1.50 125,000 0.25 2,225,000 2.13 During the three months ended September 30, 2021, the Company issued 50,000 two-year options with a fair value $2,270 to a director. The Company charged the amount of $35,878 and $107,836 to operations in connection with stock options during the three and nine months ended September 30, 2021, respectively. Restricted Stock Awards At September 30, 2021, there are 300,000 unvested restricted stock awards remaining from grants in a prior year. Those 300,000 restricted stock awards will vest as follows: 125,000 restricted stock awards will vest contingent upon the attainment of a stock price of $2.00 per share for 20 straight trading days, and an additional 175,000 restricted stock awards will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days. Stock Grants The Company charged the amount of $124,874 and $368,296 to operations in connection with stock grants during the three and nine months ended September 30, 2021, respectively. Significant Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to, accounts receivable. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)”. This ASU reduces the number of accounting models for convertible debt instruments and convertible Preferred Stock. As well as amend the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related EPS guidance. This standard is effective for us on January 1, 2023; adoption of this standard is not expected to have a material effect on our consolidated financial statements and related disclosures. 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 consolidated financial statements. |
LIQUIDITY
LIQUIDITY | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | 3. LIQUIDITY The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company had an accumulated deficit of $35,560,541 at September 30, 2022 and negative cash flow from operations in the amount of $2,802,762 for the nine months ended September 30, 2022. The Company’s current liabilities exceeded its current assets by $4,607,614 as of September 30, 2022. The Company has reported a net loss of $2,444,417 for the nine months ended September 30, 2022. The Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position. Management believes the Company will generate sufficient capital from operations and, if additional financing is required, from debt and equity financing in order to satisfy current liabilities in the succeeding twelve months. Management’s belief is based, if necessary, on the Company’s operating plans, which in turn is based on assumptions that may prove to be incorrect. On June 6, 2022, the Company entered into the following loan agreements with MapleMark: the MapleMark Revolver, with a balance at September 30, 2022 of $2,014,333; the MapleMark Term Loan 1, with a balance at September 30, 2022 of $5,324,733; and the MapleMark Term Loan 2, with a balance at September 30, 2022 $356,800 (the “MapleMark Loans”). See notes 13 and 14. The total debt due to MapleMark at September 30, 2022 was $7,695,866. The purpose of the MapleMark Loans was to recapitalize the Company’s debt by the loans payable to Fifth Third Bank in the aggregate amount of $5,665,456. The MapleMark Revolver has an initial maturity date of November 28, 2022; the MapleMark Term Loans 1 and 2 have initial maturity dates of November 28, 2022. The Company has applied for, and expects to receive, loan guarantees from the United States Department of Agriculture pursuant to its Business and Industry Guarantee Loan Program, though there can be no assurance that these guarantees will be received. Upon receipt of these loan guarantees, the maturity date of the Revolver will be extended to November 28, 2023, and the maturity date of the Term Loans will be extended to June 6, 2052. See note 19. If the Company’s cash flow from operations is insufficient, the Company may require additional financing in order to execute its operating plan and continue as a going concern. The Company cannot predict whether this additional financing will be in the form of equity or debt, or be in another form. The Company may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In any of these events, the Company may be unable to implement its current plans for expansion, repay its debt obligations as they become due or respond to competitive pressures, any of which circumstances would have a material adverse effect on its business, prospects, financial condition and results of operations. The Company has not made any adjustments to the financial statements which would be necessary should the Company not be able to continue as a going concern. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNTS RECEIVABLE At September 30, 2022 and December 31, 2021, accounts receivable consists of: September 30, 2022 December 31, 2021 (unaudited) Accounts receivable from customers $ 5,036,296 $ 3,632,695 Allowance for doubtful accounts (365,651 ) (375,931 ) Accounts receivable, net $ 4,670,645 $ 3,256,764 During the three and nine months ended September 30, 2022 the Company charged the amount of $3,437 and $11,473 to provision for doubtful accounts, respectively; during the previous period the Company charged the amount of $4,456 and $32,443 to provision for doubtful accounts, respectively. |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 5. INVENTORY Inventory consists primarily of specialty food products. At September 30, 2022 and December 31, 2021, inventory consisted of the following: September 30, 2022 December 31, 2021 (unaudited) Finished Goods Inventory $ 2,937,098 $ 3,109,984 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2022 | |
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, National Association (“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 is 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 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. On November 8, 2019 the Company, through a newly formed wholly-owned subsidiary, purchased a logistics and warehouse facility (the “Facility”) for $4.5 million. The Facility is approximately 200,000 square feet and is situated on approximately 15 acres in Mountain Top, Pennsylvania. The Facility’s appraised value by a third party appraisal firm in 2022 was $16,400,000. Related to the Facility purchase, the Company entered into a commercial loan agreement for both the purchase price and planned improvements to the Facility. The amount of the loan was $5,500,000, of which $3,600,000 had been utilized at December 31, 2021 in connection with the purchase of the Facility; the lender is Fifth Third Bank and the loan is secured by a mortgage on the property and other Company assets. The interest on the loan is LIBOR plus 2.75%, with interest only payments due through September 30, 2020, thereafter with principal amortized over 20 years with the balance due at maturity on September 2, 2025. Related to Facility purchase, the Company also acquired certain leases from certain tenants of the Facility, all of which were in good standing at the time of purchase. Depreciation on the building began when the Company commenced recognizing revenue from leasing and logistics services associated with the Facility. On October 5, 2020, the Company completed work to upgrade the Facility at a cost of $2,231,458 in order to better support the Company’s focus on e-commerce and logistics. Of the build out costs, $1,900,000 was funded by the loan described below. On June 9, 2022, the principal and interest due on this note in the amount of $5,168,000 and $14,967, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 1. (See note 14.) The following table summarizes property and equipment at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (unaudited) Land $ 1,256,895 $ 1,256,895 Building 7,191,451 7,191,451 Computer and Office Equipment 607,384 593,566 Warehouse Equipment 376,667 376,667 Furniture and Fixtures 1,017,483 944,233 Vehicles 109,441 109,441 Total before accumulated depreciation 10,559,321 10,472,253 Less: accumulated depreciation (2,551,264 ) (2,286,026 ) Total $ 8,008,057 $ 8,186,227 Depreciation and amortization expense for property and equipment amounted to $96,650 and $97,797 for the three months ended September 30, 2022 and 2021, respectively. Depreciation and amortization expense for property and equipment amounted to $285,215 and $298,362 for the nine months ended September 30, 2022 and 2021, respectively. |
RIGHT OF USE (_ROU_) ASSETS AND
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | 7. RIGHT OF USE ( ROU ) ASSETS AND LEASE LIABILITIES OPERATING LEASES The Company has operating leases for offices, warehouses, vehicles, and office equipment. The Company’s leases have remaining lease terms of 1 year to 3 years, some of which include options to extend. The Company’s lease expense for the three months ended September 30, 2022 and 2021 was entirely comprised of operating leases and amounted to $18,213 and $30,861, respectively. The Company’s lease expense for the nine months ended September 30, 2022 and 2021 was entirely comprised of operating leases and amounted to $60,186 and $89,443, respectively. The Company’s ROU asset amortization for the three months ended September 30, 2022 and 2021 was $15,659 and $26,305, respectively. The Company’s ROU asset amortization for the nine months ended September 30, 2022 and 2021 was $50,821 and $76,005, respectively. Right of use assets – operating leases are summarized below: September 30, 2022 December 31, 2021 (unaudited) Office $ 117,412 $ 148,529 Warehouse equipment 40,558 55,047 Office equipment 10,374 12,677 Vehicles - 16,128 Right of use assets - operating leases, net $ 168,344 $ 232,381 Operating lease liabilities are summarized below: September 30, 2022 December 31, 2021 (unaudited) Office $ 117,412 $ 148,529 Warehouse equipment 40,558 55,047 Office equipment 10,374 12,677 Vehicles - 16,128 Lease liability $ 168,344 $ 232,381 Less: current portion (63,569 ) (74,088 ) Lease liability, non-current $ 104,775 $ 158,293 Maturity analysis under these lease agreements are as follows: For the period ended September 30, 2023 $ 72,948 For the period ended September 30, 2024 71,901 For the period ended September 30, 2025 37,938 For the period ended September 30, 2026 890 For the period ended September 30, 2027 - Total $ 183,677 Less: Present value discount (15,333 ) Lease liability $ 168,344 |
RIGHT OF USE ASSETS _ FINANCING
RIGHT OF USE ASSETS – FINANCING LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Lessee, Finance Leases [Text Block] | 8. RIGHT OF USE ASSETS FINANCING LEASES The Company has financing leases for vehicles and warehouse equipment. (See note 15.) Right of use asset – financing leases are summarized below: September 30, 2022 December 31, 2021 (unaudited) Vehicles $ 404,858 $ 362,358 Warehouse Equipment 555,416 555,416 Total before accumulated depreciation 960,274 917,774 Less: accumulated depreciation (356,471 ) (248,735 ) Total right of use assets - financing leases, net $ 603,803 $ 669,039 Depreciation expense for right of use assets for the three months ended September 30, 2022 and 2021 was $37,128 and $35,036, respectively. Depreciation expense for right of use assets for the nine months ended September 30, 2022 and 2021 was $107,736 and $100,732, respectively. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Investment Holdings Abstract | |
Investment Holdings [Text Block] | 9. 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 September 30, 2022 and 2021 the Company has investments in seven food related companies in the aggregate amount of $286,725. The Company does not have significant influence over the operations of these companies. The Company’s investments may take the form of debt, equity, or equity in the future including convertible notes and other instruments which provide for future equity under various scenarios including subsequent financings or initial public offerings. The Company has evaluated the guidance in ASC No. 325-20, “Investments – Other”, in determining to account for the investment using the cost method since the equity securities are not marketable and do not give the Company significant influence. During the nine months ended September 30, 2021, the founder of one of the food related companies passed away in an untimely tragic accident, and as a result the food related company ceased operations and the Company recognized an impairment in the amount of $209,850 in connection with that investment. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 10. INTANGIBLE ASSETS The Company acquired certain intangible assets pursuant to the acquisitions through Artisan, Oasis, Innovative Gourmet, OFB, Haley, and M Innovations. These assets include non-compete agreements, customer relationships, trade names, internally developed technology, and goodwill. The Company has also capitalized the development of its website. As detailed in ASC 350 “Intangibles - Goodwill and Other”, 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 the Company’s 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. COVID-19 has had a material negative impact on some of the Company’s foodservice customers. In an effort to limit the spread of the virus, federal, state and local governments have implemented measures that have resulted in the closure of non-essential businesses in many of the markets the Company serves, which has forced its customers in those markets to either transition their establishments to take-out service, delivery service or temporarily cease operations. These actions have led to a significant decrease in demand for certain of the Company’s foodservice products. The adverse impact to the Company’s foodservice customer base was a triggering event and accordingly, as required by ASC 350, the Company performed interim goodwill and long-lived asset quantitative impairment tests during the first quarter of 2020. While the triggering event was a result of the negative impact related to foodservice customers, the applicable accounting rules then required an impairment test targeted specifically to any available carrying value of goodwill or intangible assets. During the first quarter of 2020, the Company performed the impairment tests on certain intangible assets and goodwill pursuant to the acquisitions through Artisan, Oasis, Innovative Gourmet and M Innovations; the intangible assets acquired pursuant to the acquisitions of OFB and Haley were fully amortized at the time of the impairment test. Long-lived Impairment Test Long-lived assets, including other intangible assets, were tested for recoverability at the asset group level. The Company estimated the net undiscounted cash flows expected to be generated from the asset group over the expected useful life of the asset group’s primary asset. Key assumptions include future revenues, growth rates, estimates of future levels of gross profit and operating profit and projected capital expenditures necessary to maintain the operating capacity of each asset group. As a result of the impairment test, it was calculated that the net carrying values of other intangible assets exceeded the undiscounted cash flows for each of the Company’s asset groups by a total of $1,048,692, and the Company was required by the applicable accounting rules to record an impairment charge to operations during the year ended December 31, 2020. At September 30, 2022 and December 31, 2021, the net carrying value of other intangible assets on the Company’s balance sheet was $1,574,147 and $1,605,040, respectively. The Company acquired certain intangible assets pursuant to the acquisitions through Artisan, Oasis, Innovative Gourmet, OFB, Haley, and M Innovations. The following is the net book value of these assets: September 30, 2022 (unaudited) Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (505,900 ) $ - Customer Relationships - amortizable 3,068,034 (3,068,034 ) - Trade Names and other 1,532,822 - 1,532,822 Internally Developed Technology - amortizable 875,643 (875,643 ) - Website - amortizable 84,000 (42,675 ) 41,325 Total $ 6,066,399 $ (4,492,252 ) $ 1,574,147 December 31, 2021 Accumulated Cost Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (505,900 ) $ - Customer Relationships - amortizable 3,068,034 (3,068,034 ) - Trade Names and other 1,532,822 - 1,532,822 Internally Developed Technology 875,643 (875,643 ) - Website 84,000 (11,782 ) 72,218 Total $ 6,066,399 $ (4,461,359 ) $ 1,605,040 Total amortization expense for the three months ended September 30, 2022 and 2021 was $10,331 and $2,870, respectively. Total amortization expense for the nine months ended September 30, 2022 and 2021 was $30,993 and $8,610, respectively. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 (unaudited) Trade payables and accrued liabilities $ 5,835,854 $ 5,414,731 Accrued payroll and commissions 234,395 288,174 Total $ 6,070,249 $ 5,702,905 |
ACCRUED INTEREST
ACCRUED INTEREST | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | 12. ACCRUED INTEREST At September 30, 2022, accrued interest on notes outstanding was $18,008. During the three months ended September 30, 2022 and 2021, the Company paid cash for interest in the aggregate amount of $58,292 and $88,331, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid cash for interest in the aggregate amount of $187,090 and $250,967, respectively. |
REVOLVING CREDIT FACILITIES
REVOLVING CREDIT FACILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Short-Term Debt [Text Block] | 13. REVOLVING CREDIT FACILITIES September 30, 2022 December 31, 2021 (unaudited) On June 6, 2022, the Company entered into a revolving credit facility with MapleMark Bank ("MapleMark”, the “MapleMark Revolver”) in the initial amount of $2,014,333. This amount was paid by MapleMark directly to Fifth Third Bank in satisfaction of the Fifth Third Bank Line of Credit. Any amounts borrowed under the MapleMark Revolver will bear interest at the greater of (a) the Base Rate (the rate of interest per annum quoted in the “Money Rates” section of The Wall Street Journal from time to time and designated as the “Prime Rate”) plus 0.25% per annum and (b) 3.50% per annum. The MapleMark Revolver matures on November 28, 2022 and in the event United States Department of Agriculture issues a guarantee of repayment of the MapleMark Revolver in favor of the Company pursuant to its Business and Industry Loan Guarantee Program (the “USDA Guarantee”), at the Company’s option, the amount of the MapleMark Revolver can be expanded to $3,000,000 and its term extended to November 28, 2023. The Company has applied for a USDA Guarantee; at September 30, 2022, this guarantee had not yet been received. The MapleMark Revolver contains negative covenants that, subject to certain exceptions, limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Company is also subject to a fixed charge coverage ratio covenant for the Revolver Loan as described in more detail in the MapleMark Revolver. The Company recorded a discount to this loan in the amount of $29,832 in connection with financing costs; $13,532 and $17,623 of this amount was amortized to interest expense during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022, the Company paid interest in the amount of $34,355 on the MapleMark Revolver. $ 2,014,333 $ - Line of credit facility with Fifth Third Bank in the original amount of $2,000,000 with an interest rate of LIBOR plus 3.00% (the “Fifth Third Bank Line of Credit”). Effective August 1, 2019, this credit facility was extended to August 1, 2021. Effective as of July 31, 2021 this credit facility was extended to November 1, 2021: effective as of October 29, 2021, this credit facility was extended to March 1, 2022; and effective March 1, 2022, this credit facility was extended to June 30, 2022. The debt covenants of this credit facility were waived until June 30, 2022. On March 20, 2020, the Company drew down the amount of $2,000,000. During the three and nine months ended September 30, 2022, the Company paid interest in the amount of $22,459 and $44,681 respectively, on the Fifth Third Bank Line of Credit. On June 9, 2022, the total outstanding principal in the amount of $2,000,000 and accrued interest in the amount of $14,333 were paid directly to Fifth Third Bank by MapleMark in connection with the MapleMark Revolver. The Fifth Third Bank Line of Credit is paid in full. $ - $ 2,000,000 Total $ 2,014,333 $ 2,000,000 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 14. NOTES PAYABLE September 30, 2022 December 31, 2021 (unaudited) On June 6, 2022, the Company entered into a term loan agreement with MapleMark (the “MapleMark Term Loan 1”) for the original amount of $5,324,733. This amount was paid by MapleMark directly to Fifth Third Bank in satisfaction the outstanding principal and interest due under existing loans with Fifth Third Bank. The MapleMark Term Loan 1 matures on November 28, 2022. Upon receipt of the USDA Guarantee, the Company will have the option of extending the term of the Term Loan 1 to June 6, 2052. Amounts outstanding under the Term Loans will bear interest at the rate equal to the lesser of (a) the Maximum Lawful Rate, or (b) the greater of (i) WSJP (the “Prime Rate” as published by The Wall Street Journal) plus 1.25% per annum or (ii) 4.50% per annum. The Term Loan Agreements contain negative covenants that, subject to certain exceptions, limits the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Term Loan Agreements also provides that the Company and its subsidiaries on a consolidated basis, meet a Fixed Charge Coverage Ratio as described in detail in the Loan Agreements. The Term Loan Agreements contain events of default that are customary for a facility of this nature, including (subject in certain cases to grace periods and thresholds) nonpayment of principal, nonpayment of interest, fees or other amounts, material inaccuracy of representations and warranties, violation of covenants, cross-default to certain other existing indebtedness, bankruptcy or insolvency events, and certain judgment defaults as specified in the Term Loan Agreements. If an event of default occurs, the maturity of the amounts owed under the Term Loan Agreements may be accelerated. The obligations under the Term Loan Agreements are guaranteed by the Company and IFP and are secured by mortgages on their real estate located in Florida, Illinois, and Pennsylvania and substantially all of their assets, in each case, subject to certain exceptions and permitted liens. The Company recorded a discount to this loan in the amount of $57,106 in connection with financing costs; $25,904 and $33,736 of this amount was amortized to interest expense during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022, the Company accrued interest in the amount of $88,856 and $108,380 on this loan, respectively. $ 5,324,733 $ - On June 6, 2022, the Company entered into a term loan agreement with MapleMark (the “MapleMark Term Loan 2”) for the original amount of $356,800. This amount was paid by MapleMark directly to Fifth Third Bank in satisfaction the outstanding principal and interest due under existing loans with Fifth Third Bank. The MapleMark Term Loan 1 matures on November 28, 2022. Upon receipt of the USDA Guarantee, the Company will have the option of extending the term of the Term Loan 1 to June 6, 2052. Amounts outstanding under the Term Loans will bear interest at the rate equal to the lesser of (a) the Maximum Lawful Rate, or (b) the greater of (i) WSJP (the “Prime Rate” as published by The Wall Street Journal) plus 1.25% per annum or (ii) 4.50% per annum. The Term Loan Agreements contain negative covenants that, subject to certain exceptions, limits the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Term Loan Agreements also provides that the Company and its subsidiaries on a consolidated basis, meet a Fixed Charge Coverage Ratio as described in detail in the Loan Agreements. The Term Loan Agreements contain events of default that are customary for a facility of this nature, including (subject in certain cases to grace periods and thresholds) nonpayment of principal, nonpayment of interest, fees or other amounts, material inaccuracy of representations and warranties, violation of covenants, cross-default to certain other existing indebtedness, bankruptcy or insolvency events, and certain judgment defaults as specified in the Term Loan Agreements. If an event of default occurs, the maturity of the amounts owed under the Term Loan Agreements may be accelerated. The obligations under the Term Loan Agreements are guaranteed by the Company and IFP and are secured by mortgages on their real estate located in Florida, Illinois, and Pennsylvania and substantially all of their assets, in each case, subject to certain exceptions and permitted liens. The Company recorded a discount to this loan in the amount of $23,367 in connection with financing costs; $10,599 and $13,804 of this amount was amortized to interest expense during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022, the Company accrued interest in the amount of $5,954 and $7,262 on this loan, respectively. $ 356,800 $ - Secured mortgage note payable for the acquisition of land and building in Bonita Springs, Florida in the amount of $546,000. Principal payments of $4,550 plus interest at the rate of Libor plus 3% are due monthly. The balance of the principal amount was originally due February 28, 2018. On March 23, 2018 and effective February 26, 2018, this note was amended and renewed in the amount of $273,000, with monthly payments of principal and interest of $4,550 payable through the maturity date of February 28, 2023. During the three months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $9,100 and $151, respectively; and during the nine months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $22,750 and $655, respectively. On June 9, 2022, the principal and interest due on this note in the amount of $45,500 and $66, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 2. $ - $ 68,250 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 was originally due May 29, 2020. Effective May 29, 2020, the note was amended and renewed such that principal payments of $8,303 plus accrued interest were due beginning June 29, 2020 and continuing for sixty months; the entire principal balance and all accrued interest will be due on May 29, 2025. During the three months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $16,333 and $1,305, respectively; during the nine months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $40,833 and $3,781, respectively. On June 9, 2022, the principal and interest due on this note in the amount of $310,333 and $901, respectively, were paid directly to Fifth Third Bank by Maple Mark in connection with MapleMark Term Loan 2. $ - $ 351,165 Promissory note dated March 22, 2019 in the original amount of $391,558 (the “Artisan Equipment Loan”) payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of 5.20%. The entire principal balance and all accrued interest is due on the maturity date of March 21, 2024. Monthly payments in the amount of $7,425 including principal and interest commenced in April, 2019. During the year ended December 31, 2019, equipment financed under the Artisan Equipment Loan in the amount of $33,075 was returned for credit. During the three months ended September 30, 2022, the Company made payments of principal and interest on this loan in the amounts of $12,288 and $1,308, respectively; during the nine months ended September 30, 2022, the Company made payments of principal and interest on this loan in the amounts of $30,523 and $3,467, respectively. On June 9, 2022, the principal and interest due on this note in the amount of $141,623 and $143, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 1. $ - $ 172,146 A note payable in the amount of $20,000. The Note was due in January 2006 and the Company is currently accruing interest on this note at 1.9%. During the three and nine months ended September 30, 2022, the Company accrued interest in the amount of $96 and $285, respectively, on this note. At September 30, 2022, accrued interest on this note was $18,008. $ 20,000 $ 20,000 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% maturing November 5, 2023. During the three months ended September 30, 2022, the Company made principal and interest payments in the amount of $2,694 and $168, respectively, on this loan; during the nine months ended September 30, 2022, the Company made principal and interest payments in the amount of $7,991 and $601, respectively. $ 12,992 $ 20,984 September 30, 2022 December 31, 2021 (unaudited) Secured mortgage facility in the amount of $5,500,000 with Fifth Third Bank for the acquisition of land and building in Mountaintop, Pennsylvania dated November 8, 2019 (the “Fifth Third Mortgage Facility”). The Fifth Third Mortgage Facility is secured by the assets acquired. During the year ended December 31, 2019, the Company drew down $3,600,000 of this facility. During the year ended December 31, 2020, the Company drew down an additional $1,900,000 of this facility. The interest rate is LIBOR plus 2.75% with interest only due through September 30, 2020, thereafter with principal amortized at a 20 years amortization rate and the balance due on the maturity date of September 2, 2025. The Company prepaid loan fees in connection with this loan in the amount of $72,916 which are considered a discount to the loan and are being amortized over the term of the note; during the three and nine months ended September 30, 2022, $0 and $5,456, respectively, of this discount was amortized to interest expense. During the three months ended September 30, 2022, the Company made principal and interest payments in the amount of $0 and $13,351, respectively, on this loan; during the nine months ended September 30, 2022, the Company made principal and interest payments in the amount of $0 and $51,151, respectively, on this loan. On June 9, 2022, the principal and interest due on this note in the amount of $5,168,000 and $14,967, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 1. The Company recorded a loss in the amount of $40,556 on this transaction in connection with the write-off of the unamortized portion of the discount. The Company also had in place an interest rate swap agreement (the “Fifth Third Interest Rate Swap”) with Fifth Third bank in connection with the Fifth Third Mortgage Facility. Pursuant to the Fifth Third Interest Rate Swap, the Company paid an additional base rate of 0.59% reduced by the difference between an initial LIBOR rate of 0.1513% and the month-end LIBOR rate resulting in additional interest expense of $0 and $5,632, respectively, during the three and nine months ended September 30, 2022. On March 28, 2022 the Interest Rate Swap was terminated. Upon termination the Company received a cash payment of $294,000, which is reflected as a gain on the interest rate swap on the statement of operations for the nine months ended September 30, 2022. $ - $ 5,235,600 Total $ 5,714,526 $ 5,868,145 Discount (45,142 ) (46,012 ) Net of discount $ 5,669,384 $ 5,822,133 Current portion $ 5,712,627 $ 458,973 Long-term maturities 1,899 5,409,172 Total $ 5,714,526 $ 5,868,145 Aggregate maturities of long-term notes payable as of September 30, 2022 are as follows: For the period ended September 30, 2023 $ 5,712,627 2024 1,899 2025 - 2026 - 2027 - Total $ 5,714,526 |
LEASE LIABILITIES - FINANCING L
LEASE LIABILITIES - FINANCING LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Finance Lease Abstract | |
Finance Lease [Text Block] | 15. LEASE LIABILITIES - FINANCING LEASES September 30, 2022 December 31, 2021 (unaudited) Financing lease obligation under a lease agreement for a forklift dated July 12, 2021 in the original amount of $16,070 payable in thirty-six monthly installments of $489 including interest at the rate of 6.01%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $1,307 and $159, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $3,865 and $536, respectively. $ 9,723 $ 13,588 Financing lease obligation under a lease agreement for a pallet truck dated July 15, 2021 in the original amount of $5,816 payable in thirty-six monthly installments of $177 including interest at the rate of 6.01%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $473 and $58, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $1,398 and $194, respectively. $ 3,520 $ 4,918 Financing lease obligation under a lease agreement for warehouse furniture and equipment truck dated October 14, 2020 in the original amount of $514,173 payable in sixty monthly installments of $9,942 including interest at the rate of 6.01%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amount of $24,672 and $5,153, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amount of $72,920 and $16,556, respectively. $ 326,768 $ 399,688 Financing lease obligation under a lease agreement for a truck dated March 31, 2020 in the original amount of $152,548 payable in eighty-four monthly installments of $2,188 including interest at the rate of 5.44%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $5,118 and $1,447, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $15,147 and $4,546, respectively. $ 102,873 $ 118,020 Financing lease obligation under a lease agreement for a truck dated November 5, 2018 in the original amount of $128,587 payable in seventy monthly installments of $2,326 including interest at the rate of 8.33%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $5,869 and $1,109, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $17,247 and $3,684, respectively. $ 49,279 $ 66,526 Financing lease obligation under a lease agreement for a truck dated August 23, 2019 in the original amount of $80,413 payable in eighty-four monthly installments of $1,148 including interest at the rate of 5.0%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $2,821 and $623, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $8,358 and $1,974, respectively. $ 47,965 $ 56,323 Financing lease obligation under a lease agreement for a truck dated February 4, 2022 in the original amount of $42,500 payable in twenty-four monthly installments of $1,963 including interest at the rate of 10.1%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $5,022 and $868, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $11,524 and $2,219, respectively. $ 30,976 $ - Total $ 571,104 $ 659,063 Current portion $ 188,818 $ 159,823 Long-term maturities 382,286 499,240 Total $ 571,104 $ 659,063 Aggregate maturities of lease liabilities – financing leases as of September 30, 2022 are as follows: For the period ended September 30, 2023 $ 188,818 2024 183,361 2025 151,984 2026 36,148 2027 10,793 Thereafter - Total $ 571,104 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 16. RELATED PARTY TRANSACTIONS For the nine months ended September 30, 2022: Vesting of shares to officers During the nine months ended September 30, 2022 in connection with stock based compensation based upon the terms of employment agreements with its employees and compensation agreements with the Company’s independent board members, the Company charged to operations the amount of $30,000 for the vesting of a total of 77,440 shares of common stock issuable to two of its independent board members, and $421,200 for the vesting of a total of 1,483,517 shares of common stock issuable to its Chief Executive Officer pursuant to his employment agreement. The Company also recognized non-cash compensation in the amount of $6,978 during the nine months ended September 30, 2022 in connection with stock options issuable to management and board members. For the nine months ended September 30, 2021: Vesting of shares to officers During the nine months ended September 30, 2021 in connection with stock based compensation based upon the terms of employment agreements with its employees and compensation agreements with the Company’s independent board members, the Company charged to operations the amount of $67,500 for the vesting of a total of 150,210 shares of common stock issuable to two of its independent board members, and $300,796 for the vesting of a total of 776,611 shares of common stock issuable to its Chief Executive Officer and its Director of Strategic Acquisitions pursuant to their employment agreements. The Company also recognized non-cash compensation in the amount of $107,836 during the nine months ended September 30, 2021 in connection with stock options issuable to management and board members. During the nine months ended September 30, 2021, the Company issued 50,000 two-year stock options with a fair value of $2,270 and an exercise price of $1.20 to a director. On August 26, 2021, the Company sold a total of 3,125,000 shares of common stock at a price of $0.40 per share to an entity controlled by Hank Cohn, a director of the Company; the Company sold 3,125,000 shares of common stock at a price of $0.40 per share to an entity controlled by Jefferson Gramm, a director of the Company; and the Company sold 3,125,000 shares of common stock at a price of $0.40 per share to an entity controlled by James C. Pappas, a director of the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 17. COMMITMENTS AND CONTINGENCIES Contingent Liability Pursuant to the igourmet Asset Purchase Agreement, the Company recorded contingent liabilities in the original amount of $787,800. This amount relates to certain performance-based payments over the twenty-four months following the acquisition date as well as to certain additional liabilities that the Company has evaluated and has recorded on a contingent basis. During the year ended December 31, 2018, the Company reduced this amount by $392,900 as the performance goals for the first year were not met. During the year ended December 31, 2019, the Company reduced this amount by $132,300 as the performance goals for the second year were not met. During the year ended December 31, 2019, the Company paid the amount of $39,000 in connection with the additional liabilities. During the three and nine months ended September 30, 2022, the Company paid the amount of $0 and $8,000, respectively, in connection with the additional liabilities. At September 30, 2022 and December 31, 2021, the amount of $67,000 remains on the Company’s consolidated balance sheet as a current contingent liability, and $108,600 as a long term contingent liability. Pursuant to the Mouth Foods LLC Asset Acquisition, the Company recorded contingent liabilities in the amount of $240,576. These amounts relate to the estimate of certain performance-based payments following the acquisition date as well as to certain additional liabilities that the Company has evaluated and has recorded on a contingent basis. During the year ended December 31, 2019, the Company paid the amount of $120,576 in connection with these liabilities. At September 30, 2022 and December 31, 2021, $120,000 is classified as a current contingent liability and is included in accounts payable and accrued liabilities. License Agreements In May 2019, the Company entered into a royalty-based license agreement, through December 31, 2022 with a lifestyle brand, which provides the exclusive right, with certain carve-outs and limitations, to sell and promote branded gift baskets for certain channels including: retail, warehouse club stores, certain of the Company’s current e-commerce channels, and other e-commerce channels such as amazon.com (the “May 2019 License Agreement”). Pursuant to the May 2019 License Agreement, the Company paid an initial royalty deposit in the amount of $50,000 towards the minimum royalty, which is classified as other current assets on the Company’s balance sheet at December 31, 2019. Future royalty amounts owed for minimum payments in connection with the May 2019 License Agreement will be deducted from this deposit. The royalty rate is 5% of net sales, and the Company is required, with certain exceptions and exclusions, to make minimum royalty payments of $100,000 through the end of 2020, $110,000 in 2021, and $125,000 in 2022. Litigation On September 16, 2019, an action (the “PA Action”) was filed in the Court of Common Pleas of Philadelphia County, Trial Division, against, among others, the Company and its wholly-owned subsidiaries, Innovative Gourmet LLC and Food Innovations, Inc. Since that time, other parties involved in the incident have joined as plaintiffs in the PA Action. The complaint in the PA Action alleges, inter alia, wrongful death and negligence by a driver employed by Innovative Gourmet and indicates a demand and offer to settle for fifty million dollars. We expect that should a settlement occur the amount to resolve the Action would be substantially lower. The Company and its subsidiaries had auto and umbrella insurance policies, among others, that were in effect for the relevant period The Company and its subsidiaries’ insurers have agreed to defend the Company and its subsidiaries in the PA Action (and the related action), subject to a reservation of rights. The Company believes that the likely outcome would result in the liabilities being covered by its insurance carriers. However, if the Company was found responsible for damages in excess of its available insurance coverage, such damages in excess of the coverage could have a material adverse effect on the Company’s operations. The case has been set for trial for April 1, 2024. Because the statute of limitations on the incident has now run, it is not anticipated that any new plaintiffs involved in the incident will come forward against the Company and its subsidiaries. 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. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 18. EQUITY Common Stock At September 30, 2022 and December 31, 2021, a total of 2,837,580 shares are deemed issued but not outstanding by the Company. These include 2,623,171 shares of treasury stock. Nine months ended September 30, 2022: During the nine months ended September 30, 2022 in connection with stock based compensation based upon the terms of employment agreements with its employees and compensation agreements with the Company’s independent board members, the Company charged to operations the amount of $30,000 for the vesting of a total of 77,440 shares of common stock issuable to two of its independent board members, and $421,200 for the vesting of a total of 1,483,517 shares of common stock issuable to its Chief Executive Officer pursuant to his employment agreement. The Company also recognized non-cash compensation in the amount of $6,978 during the nine months ended September 30, 2022 in connection with stock options issuable to management and board members. On April 8, 2022, the Company issued 33,445 shares with a value of $11,405 to an employee as compensation. On April 25, 2022, the Company issued 142,857 shares with a value of $48,543 to a service provider. Nine months ended September 30, 2021: On August 26, 2021, the Company entered into a Securities Purchase Agreement (the “SPA”) with each of JCP Investment Partnership LP, Bandera Master Fund LP and SV Asset Management LLC (collectively, the “Investors”). Pursuant to the SPA, each Investor purchased 3,125,000 shares of the Company’s common stock for an aggregate of 9,375,000 shares from the Company at a price of $0.40 per share. The Company received $3,580,372 proceeds from the sale of the shares, net of costs in the amount of $169,628. JCP Investment Partnership, LP is controlled by James C. Pappas, a director of the Company; Bandera Master Fund LP is controlled by Jefferson Gramm, a director of the Company; and SV Asset Management LLC is controlled by Hank Cohn, a director of the Company. During the nine months ended September 30, 2021 in connection with stock based compensation based upon the terms of employment agreements with its employees and compensation agreements with the Company’s independent board members, the Company charged to operations the amount of $67,500 for the vesting of a total of 150,210 shares of common stock issuable to two of its independent board members, and $300,796 for the vesting of a total of 776,611 shares of common stock issuable to its Chief Executive Officer and its Director of Strategic Acquisitions pursuant to their employment agreements. The Company also recognized non-cash compensation in the amount of $107,836 during the nine months ended September 30, 2021 in connection with stock options issuable to management and board members. Options The following table summarizes the options outstanding at September 30, 2022 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 $ 0.41 125,000 1.57 $ 0.41 125,000 $ 0.41 $ 0.50 125,000 1.57 $ 0.50 125,000 $ 0.50 $ 0.60 50,000 3.25 $ 0.60 43,750 $ 0.60 $ 0.62 360,000 1.25 $ 0.62 360,000 $ 0.62 $ 0.85 540,000 1.25 $ 0.85 540,000 $ 0.85 $ 1.00 50,000 3.25 $ 1.00 43,750 $ 1.00 $ 1.20 1,050,000 1.15 $ 1.20 1,050,000 $ 1.20 2,300,000 1.33 $ 0.93 2,287,500 $ 0.93 Transactions involving stock options are summarized as follows: Number of Shares Weighted Average Exercise Price Options outstanding at December 31, 2021 2,100,000 $ 0.99 Granted 250,000 $ 0.46 Exercised - $ - Cancelled / Expired (50,000 ) $ 1.20 Options outstanding at September 30, 2022 (unaudited) 2,300,000 $ 0.93 Options exercisable at September 30, 2022 (unaudited) 2,287,500 $ 0.93 Aggregate intrinsic value of options outstanding and exercisable at September 30, 2022 and 2021 was $0. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the fiscal period, which was $0.19 and $0.49 as of September 30, 2022 and 2021, respectively, and the exercise price multiplied by the number of options outstanding. During the three months ended September 30, 2022 and 2021, the Company charged $2,326 and $35,878, respectively, to operations to recognized stock-based compensation expense for employee and board member stock options. During the nine months ended September 30, 2022 and 2021, the Company charged $6,978 and $107,836, respectively, to operations to recognized stock-based compensation expense for employee and board member stock options; the Company also charged $2,092 and $0, respectively, to operations to recognize the fair value of options issued to a service provider. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. SUBSEQUENT EVENTS As previously disclosed, in June 2022 we entered into three secured loan facilities with MapleMark Bank consisting of a $7,775,680 USDA B&I loan, a $2,680,000 USDA Food and Supply note, and a $3,000,000 Revolving Line of Credit, with total approved proceeds of $13,450,680, of which only $7,695,867 has been funded to date as the remaining funds are contingent of final USDA approval (the “MMB Facilities”). The MMB Facilities were originally approved as a 6-month bridge facility until full USDA approval was obtained. Due to the nationwide backup on USDA approvals, such approval has not been opened. Accordingly, by memo dated October 15, 2022, the Company was advised that, effective November 28, 2022, the current maturity date of the MMB Facilities, the MMB Facilities would be extended for 90 days. We anticipate that loan modification agreements will be signed shortly as well. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Business Activity Our business is currently conducted by our wholly owned subsidiaries, some of which are non-operating, Artisan Specialty Foods, Inc. (“Artisan”), Food Innovations, Inc. (“FII”), Food New Media Group, Inc. (“FNM”), Organic Food Brokers, LLC (“OFB”), Gourmet Foodservice Group, Inc. (“GFG”), Gourmet Foodservice Group Warehouse, Inc. (“GFW”), Gourmeting, Inc. (“Gourmeting”), Haley Food Group, Inc. (“Haley”), Oasis Sales Corp. (“Oasis”), 4 The Gourmet, Inc. (d/b/a For The Gourmet, Inc.), (“Gourmet”), Innovative Food Properties, LLC (“IFP”), Plant Innovations, Inc. (“Plant Innovations”), Innovative Gourmet, LLC (“Innovative Gourmet” or “igourmet”), Food Funding, LLC (“Food Funding”), Logistics Innovations, LLC (L Innovations”), M Innovations, LLC (“M Innovations” or “Mouth”), MI Foods, LLC (“MIF”), M Foods Innovations, LLC (“M Foods”), P Innovations, LLC (“P Innovations”), PlantBelly, LLC (“PlantBelly”), Innovative Foods, Inc. (“IFI”) and Innovative Gourmet Partnerships, LLC (“IGP”), and collectively with IVFH and its other subsidiaries, the “Company” or “IVFH”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. All material intercompany transactions have been eliminated upon consolidation of these entities. 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, through its relationship with the producers, growers, and makers of thousands of unique specialty foodservice products and through its relationship with US Foods, Inc. (“U.S. Foods” or “USF”), has been in the business of providing premium restaurants, within 24 – 72 hours, with the freshest origin-specific perishable, and healthcare products shipped directly from our network of vendors and from our warehouses. Our customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals and catering houses. Gourmet has been in the business of providing specialty food via e-commerce through its own website at www.forthegourmet.com and through other ecommerce channels, with unique specialty gourmet food products shipped directly from our network of vendors and from our warehouses within 24 – 72 hours. 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. GFG is focused on expanding the Company’s program offerings to additional specialty foodservice customers. 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. IFP was formed to hold the Company’s real estate holdings including the recently acquired facility in Mountaintop, Pennsylvania. 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 D2C specialty food via e-commerce through its own website at www.igourmet.com and through other channels such as www.amazon.com, www.ebay.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 approximately 100,000 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. P Innovations focus is to leverage acquired assets to expand the Company’s subscription-based e-commerce business activities and to launch new businesses leveraging the Company’s e-commerce platform. Plant Innovations is focused on plant-based D2C brands and online retail within the e-commerce space. L Innovations provides 3rd party warehouse and fulfillment services out of its location at the Company’s PA facility. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate these estimates, including those related to revenue recognition and concentration of credit risk. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Accounts subject to estimate and judgements are accounts receivable reserves, income taxes, intangible assets, contingent liabilities, operating and finance right of use assets and liabilities, and equity-based instruments. Actual results may differ from these estimates under different assumptions or conditions. We believe our estimates have not been materially inaccurate in past years, and our assumptions are not likely to change in the foreseeable future. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Innovative Food Holdings, Inc., and its wholly owned operating subsidiaries, Artisan, FII, FNM, OFB, GFG, GFW, Gourmeting, Haley, Oasis, Innovative Gourmet, Food Funding, IFP, L Innovations, M Innovations, P Innovations, MIF, M Foods, PlantBelly, Plant Innovations, IFI, IGP, and Gourmet. All material intercompany transactions have been eliminated upon consolidation of these entities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables. The Company places its cash and temporary cash in investments with credit quality institutions. At times, such investments may be in excess of applicable government mandated insurance limit. At September 30, 2022 and December 31, 2021, trade receivables from the Company’s largest customer amounted to 27% and 28%, respectively, of total trade receivables. During the nine months ended September 30, 2022 and 2021, sales from the Company’s largest customer amounted to 51% and 48% of total sales, respectively. The Company maintains cash balances in excess of Federal Deposit Insurance Corporation limits. At September 30, 2022 and December 31, 2021, the total cash in excess of these limits was $403,255 and $4,555,032, respectively. |
Lessee, Leases [Policy Text Block] | Leases The Company accounts for leases in accordance with Financial Accounting Standards Board (“FASB”) ASC 842, “Leases”. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included on the face of the consolidated balance sheet. Finance lease ROU assets are presented within other assets, and finance lease liabilities are presented within current and long-term liabilities. ROU assets represent the right of use to an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and it recognizes such lease payments on a straight-line basis over the lease term. |
Revenue [Policy Text Block] | Revenue Recognition The Company recognizes revenue upon product delivery. All of our products are shipped either same day or overnight or through longer shipping terms to the customer and the customer takes title to product and assumes risk and ownership of the product when it is delivered. Shipping charges to customers and sales taxes collectible from customers, if any, are included in revenues. For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606 Revenue from Contracts with Customers Warehouse and logistic services revenue is primarily comprised of inventory management, order fulfilment and warehousing services. Warehouse & logistics services revenues are recognized at the point in time when the services are rendered to the customer. |
Revenue from Contract with Customer [Policy Text Block] | Deferred Revenue Certain customer arrangements in the Company's business such as gift cards and e-commerce subscription purchases result in deferred revenues when cash payments are received in advance of performance. Gift cards issued by the Company generally have an expiration of five years from date of purchase. The Company records a liability for unredeemed gift cards and advance payments for monthly club memberships, as cash is received, and the liability is reduced when the card is redeemed or product delivered. The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance as of December 31, 2020 $ 2,917,676 Cash payments received 591,886 Net sales recognized (2,376,151 ) Balance as of March 31, 2021 (unaudited) $ 1,133,411 Cash payments received 375,115 Net sales recognized (527,991 ) Balance as of June 30, 2021 (unaudited) $ 980,535 Cash payments received 401,097 Net sales recognized (325,621 ) Balance as of September 30, 2021 (unaudited) $ 1,056,011 Balance as of December 31, 2021 $ 1,631,406 Cash payments received 700,582 Net sales recognized (1,081,044 ) Balance as of March 31, 2022 (unaudited) $ 1,250,944 Cash payments received 99,989 Net sales recognized (128,686 ) Balance as of June 30, 2022 (unaudited) $ 1,222,247 Cash payments received 385,633 Net sales recognized (513,231 ) Balance as of September 30, 2022 (unaudited) $ 1,094,649 |
Long-Duration Contracts Revenue Recognition, Policy [Policy Text Block] | Disaggregation of Revenue The following table represents a disaggregation of revenue for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 2021 (unaudited) (unaudited) Specialty Foodservice $ 17,630,515 $ 12,060,223 E-Commerce 1,839,541 2,652,307 National Brand Management 336,766 260,934 Logistics 253,160 233,889 Total $ 20,059,982 $ 15,207,353 Nine Months Ended September 30, 2022 2021 (unaudited) (unaudited) Specialty Foodservice $ 46,072,258 $ 29,049,060 E-Commerce 8,637,210 10,917,318 National Brand Management 872,732 751,865 Logistics 644,049 644,573 Total $ 56,226,249 $ 41,362,816 |
Cost of Goods and Service [Policy Text Block] | Cost of goods sold We have included in cost of goods sold all costs which are directly related to the generation of revenue. These costs include primarily the cost of food and raw materials, packing and handling, shipping, and delivery costs. We have also included all payroll costs as cost of goods sold in our leasing and logistics services business. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings Per Share Basic net earnings per share is based on the weighted average number of shares outstanding during the period, while fully-diluted net earnings per share is based on the weighted average number of shares of common stock and potentially dilutive securities assumed to be outstanding during the period using the treasury stock method. Potentially dilutive securities consist of options and warrants to purchase common stock, and convertible debt. Basic and diluted net loss per share is computed based on the weighted average number of shares of common stock outstanding during the period. The Company uses the treasury stock method to calculate the impact of outstanding stock options and warrants. Stock options and warrants for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on earnings per common share and, accordingly, are excluded from the calculation. For the three and nine months ended September 30, 2022, 2,300,000 stock options were excluded from the calculation of fully diluted earnings per share because the effect would have been anti-dilutive. For the three and nine months ended September 30, 2021, 2,225,000 stock options were excluded from the calculation of fully diluted earnings per share because the effect would have been anti-dilutive. Dilutive shares at September 30, 2022: Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at September 30, 2022: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.41 125,000 1.57 $ 0.50 125,000 1.57 $ 0.60 50,000 3.25 $ 0.62 360,000 1.25 $ 0.85 540,000 1.25 $ 1.00 50,000 3.25 $ 1.20 1,050,000 1.15 2,300,000 1.33 Restricted Stock Awards At September 30, 2022, there are 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. The fair value of these RSUs at the date of the grants will be charged to operations upon vesting. Stock Grants At September 30, 2022, there were an aggregate 86,236 unvested stock grants outstanding due to the Company’s two independent directors. These grants will vest as follows: 25,816 per quarter through December 31, 2022, and 15,106 per quarter through September 30, 2023, and 15,102 during the quarter ended December 31, 2023. The fair value of these stock grants at the date of the grant were charged to operations upon vesting. Dilutive shares at September 30, 2021: Stock Options The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at September 30, 2021: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.60 50,000 4.25 $ 0.62 360,000 2.25 $ 0.85 540,000 2.25 $ 1.00 50,000 4.25 $ 1.20 1,100,000 2.04 $ 1.50 125,000 0.25 2,225,000 2.13 During the three months ended September 30, 2021, the Company issued 50,000 two-year options with a fair value $2,270 to a director. The Company charged the amount of $35,878 and $107,836 to operations in connection with stock options during the three and nine months ended September 30, 2021, respectively. Restricted Stock Awards At September 30, 2021, there are 300,000 unvested restricted stock awards remaining from grants in a prior year. Those 300,000 restricted stock awards will vest as follows: 125,000 restricted stock awards will vest contingent upon the attainment of a stock price of $2.00 per share for 20 straight trading days, and an additional 175,000 restricted stock awards will vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days. Stock Grants The Company charged the amount of $124,874 and $368,296 to operations in connection with stock grants during the three and nine months ended September 30, 2021, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Significant Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to, accounts receivable. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)”. This ASU reduces the number of accounting models for convertible debt instruments and convertible Preferred Stock. As well as amend the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related EPS guidance. This standard is effective for us on January 1, 2023; adoption of this standard is not expected to have a material effect on our consolidated financial statements and related disclosures. 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 consolidated financial statements. |
NATURE OF ACTIVITIES AND SIGN_2
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | The following table represents the changes in deferred revenue as reported on the Company’s consolidated balance sheets: Balance as of December 31, 2020 $ 2,917,676 Cash payments received 591,886 Net sales recognized (2,376,151 ) Balance as of March 31, 2021 (unaudited) $ 1,133,411 Cash payments received 375,115 Net sales recognized (527,991 ) Balance as of June 30, 2021 (unaudited) $ 980,535 Cash payments received 401,097 Net sales recognized (325,621 ) Balance as of September 30, 2021 (unaudited) $ 1,056,011 Balance as of December 31, 2021 $ 1,631,406 Cash payments received 700,582 Net sales recognized (1,081,044 ) Balance as of March 31, 2022 (unaudited) $ 1,250,944 Cash payments received 99,989 Net sales recognized (128,686 ) Balance as of June 30, 2022 (unaudited) $ 1,222,247 Cash payments received 385,633 Net sales recognized (513,231 ) Balance as of September 30, 2022 (unaudited) $ 1,094,649 |
Disaggregation of Revenue [Table Text Block] | The following table represents a disaggregation of revenue for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 2021 (unaudited) (unaudited) Specialty Foodservice $ 17,630,515 $ 12,060,223 E-Commerce 1,839,541 2,652,307 National Brand Management 336,766 260,934 Logistics 253,160 233,889 Total $ 20,059,982 $ 15,207,353 Nine Months Ended September 30, 2022 2021 (unaudited) (unaudited) Specialty Foodservice $ 46,072,258 $ 29,049,060 E-Commerce 8,637,210 10,917,318 National Brand Management 872,732 751,865 Logistics 644,049 644,573 Total $ 56,226,249 $ 41,362,816 |
Dilutive Shares [Table Text Block] | The following table summarizes the options outstanding and the related prices for the options to purchase shares of the Company’s common stock issued by the Company at September 30, 2022: Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.41 125,000 1.57 $ 0.50 125,000 1.57 $ 0.60 50,000 3.25 $ 0.62 360,000 1.25 $ 0.85 540,000 1.25 $ 1.00 50,000 3.25 $ 1.20 1,050,000 1.15 2,300,000 1.33 Weighted Average Remaining Exercise Number Contractual Price of Options Life (years) $ 0.60 50,000 4.25 $ 0.62 360,000 2.25 $ 0.85 540,000 2.25 $ 1.00 50,000 4.25 $ 1.20 1,100,000 2.04 $ 1.50 125,000 0.25 2,225,000 2.13 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | At September 30, 2022 and December 31, 2021, accounts receivable consists of: September 30, 2022 December 31, 2021 (unaudited) Accounts receivable from customers $ 5,036,296 $ 3,632,695 Allowance for doubtful accounts (365,651 ) (375,931 ) Accounts receivable, net $ 4,670,645 $ 3,256,764 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consists primarily of specialty food products. At September 30, 2022 and December 31, 2021, inventory consisted of the following: September 30, 2022 December 31, 2021 (unaudited) Finished Goods Inventory $ 2,937,098 $ 3,109,984 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following table summarizes property and equipment at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (unaudited) Land $ 1,256,895 $ 1,256,895 Building 7,191,451 7,191,451 Computer and Office Equipment 607,384 593,566 Warehouse Equipment 376,667 376,667 Furniture and Fixtures 1,017,483 944,233 Vehicles 109,441 109,441 Total before accumulated depreciation 10,559,321 10,472,253 Less: accumulated depreciation (2,551,264 ) (2,286,026 ) Total $ 8,008,057 $ 8,186,227 |
RIGHT OF USE (_ROU_) ASSETS A_2
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Table Text Block] | Right of use assets – operating leases are summarized below: September 30, 2022 December 31, 2021 (unaudited) Office $ 117,412 $ 148,529 Warehouse equipment 40,558 55,047 Office equipment 10,374 12,677 Vehicles - 16,128 Right of use assets - operating leases, net $ 168,344 $ 232,381 |
Lease, Cost [Table Text Block] | Operating lease liabilities are summarized below: September 30, 2022 December 31, 2021 (unaudited) Office $ 117,412 $ 148,529 Warehouse equipment 40,558 55,047 Office equipment 10,374 12,677 Vehicles - 16,128 Lease liability $ 168,344 $ 232,381 Less: current portion (63,569 ) (74,088 ) Lease liability, non-current $ 104,775 $ 158,293 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity analysis under these lease agreements are as follows: For the period ended September 30, 2023 $ 72,948 For the period ended September 30, 2024 71,901 For the period ended September 30, 2025 37,938 For the period ended September 30, 2026 890 For the period ended September 30, 2027 - Total $ 183,677 Less: Present value discount (15,333 ) Lease liability $ 168,344 |
RIGHT OF USE ASSETS _ FINANCI_2
RIGHT OF USE ASSETS – FINANCING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Lease, Cost [Table Text Block] | The Company has financing leases for vehicles and warehouse equipment. (See note 15.) Right of use asset – financing leases are summarized below: September 30, 2022 December 31, 2021 (unaudited) Vehicles $ 404,858 $ 362,358 Warehouse Equipment 555,416 555,416 Total before accumulated depreciation 960,274 917,774 Less: accumulated depreciation (356,471 ) (248,735 ) Total right of use assets - financing leases, net $ 603,803 $ 669,039 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The Company acquired certain intangible assets pursuant to the acquisitions through Artisan, Oasis, Innovative Gourmet, OFB, Haley, and M Innovations. The following is the net book value of these assets: September 30, 2022 (unaudited) Accumulated Gross Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (505,900 ) $ - Customer Relationships - amortizable 3,068,034 (3,068,034 ) - Trade Names and other 1,532,822 - 1,532,822 Internally Developed Technology - amortizable 875,643 (875,643 ) - Website - amortizable 84,000 (42,675 ) 41,325 Total $ 6,066,399 $ (4,492,252 ) $ 1,574,147 December 31, 2021 Accumulated Cost Amortization Net Non-Compete Agreement - amortizable $ 505,900 $ (505,900 ) $ - Customer Relationships - amortizable 3,068,034 (3,068,034 ) - Trade Names and other 1,532,822 - 1,532,822 Internally Developed Technology 875,643 (875,643 ) - Website 84,000 (11,782 ) 72,218 Total $ 6,066,399 $ (4,461,359 ) $ 1,605,040 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and accrued liabilities at September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 (unaudited) Trade payables and accrued liabilities $ 5,835,854 $ 5,414,731 Accrued payroll and commissions 234,395 288,174 Total $ 6,070,249 $ 5,702,905 |
REVOLVING CREDIT FACILITIES (Ta
REVOLVING CREDIT FACILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | September 30, 2022 December 31, 2021 (unaudited) On June 6, 2022, the Company entered into a revolving credit facility with MapleMark Bank ("MapleMark”, the “MapleMark Revolver”) in the initial amount of $2,014,333. This amount was paid by MapleMark directly to Fifth Third Bank in satisfaction of the Fifth Third Bank Line of Credit. Any amounts borrowed under the MapleMark Revolver will bear interest at the greater of (a) the Base Rate (the rate of interest per annum quoted in the “Money Rates” section of The Wall Street Journal from time to time and designated as the “Prime Rate”) plus 0.25% per annum and (b) 3.50% per annum. The MapleMark Revolver matures on November 28, 2022 and in the event United States Department of Agriculture issues a guarantee of repayment of the MapleMark Revolver in favor of the Company pursuant to its Business and Industry Loan Guarantee Program (the “USDA Guarantee”), at the Company’s option, the amount of the MapleMark Revolver can be expanded to $3,000,000 and its term extended to November 28, 2023. The Company has applied for a USDA Guarantee; at September 30, 2022, this guarantee had not yet been received. The MapleMark Revolver contains negative covenants that, subject to certain exceptions, limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Company is also subject to a fixed charge coverage ratio covenant for the Revolver Loan as described in more detail in the MapleMark Revolver. The Company recorded a discount to this loan in the amount of $29,832 in connection with financing costs; $13,532 and $17,623 of this amount was amortized to interest expense during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022, the Company paid interest in the amount of $34,355 on the MapleMark Revolver. $ 2,014,333 $ - Line of credit facility with Fifth Third Bank in the original amount of $2,000,000 with an interest rate of LIBOR plus 3.00% (the “Fifth Third Bank Line of Credit”). Effective August 1, 2019, this credit facility was extended to August 1, 2021. Effective as of July 31, 2021 this credit facility was extended to November 1, 2021: effective as of October 29, 2021, this credit facility was extended to March 1, 2022; and effective March 1, 2022, this credit facility was extended to June 30, 2022. The debt covenants of this credit facility were waived until June 30, 2022. On March 20, 2020, the Company drew down the amount of $2,000,000. During the three and nine months ended September 30, 2022, the Company paid interest in the amount of $22,459 and $44,681 respectively, on the Fifth Third Bank Line of Credit. On June 9, 2022, the total outstanding principal in the amount of $2,000,000 and accrued interest in the amount of $14,333 were paid directly to Fifth Third Bank by MapleMark in connection with the MapleMark Revolver. The Fifth Third Bank Line of Credit is paid in full. $ - $ 2,000,000 Total $ 2,014,333 $ 2,000,000 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | September 30, 2022 December 31, 2021 (unaudited) On June 6, 2022, the Company entered into a term loan agreement with MapleMark (the “MapleMark Term Loan 1”) for the original amount of $5,324,733. This amount was paid by MapleMark directly to Fifth Third Bank in satisfaction the outstanding principal and interest due under existing loans with Fifth Third Bank. The MapleMark Term Loan 1 matures on November 28, 2022. Upon receipt of the USDA Guarantee, the Company will have the option of extending the term of the Term Loan 1 to June 6, 2052. Amounts outstanding under the Term Loans will bear interest at the rate equal to the lesser of (a) the Maximum Lawful Rate, or (b) the greater of (i) WSJP (the “Prime Rate” as published by The Wall Street Journal) plus 1.25% per annum or (ii) 4.50% per annum. The Term Loan Agreements contain negative covenants that, subject to certain exceptions, limits the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Term Loan Agreements also provides that the Company and its subsidiaries on a consolidated basis, meet a Fixed Charge Coverage Ratio as described in detail in the Loan Agreements. The Term Loan Agreements contain events of default that are customary for a facility of this nature, including (subject in certain cases to grace periods and thresholds) nonpayment of principal, nonpayment of interest, fees or other amounts, material inaccuracy of representations and warranties, violation of covenants, cross-default to certain other existing indebtedness, bankruptcy or insolvency events, and certain judgment defaults as specified in the Term Loan Agreements. If an event of default occurs, the maturity of the amounts owed under the Term Loan Agreements may be accelerated. The obligations under the Term Loan Agreements are guaranteed by the Company and IFP and are secured by mortgages on their real estate located in Florida, Illinois, and Pennsylvania and substantially all of their assets, in each case, subject to certain exceptions and permitted liens. The Company recorded a discount to this loan in the amount of $57,106 in connection with financing costs; $25,904 and $33,736 of this amount was amortized to interest expense during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022, the Company accrued interest in the amount of $88,856 and $108,380 on this loan, respectively. $ 5,324,733 $ - On June 6, 2022, the Company entered into a term loan agreement with MapleMark (the “MapleMark Term Loan 2”) for the original amount of $356,800. This amount was paid by MapleMark directly to Fifth Third Bank in satisfaction the outstanding principal and interest due under existing loans with Fifth Third Bank. The MapleMark Term Loan 1 matures on November 28, 2022. Upon receipt of the USDA Guarantee, the Company will have the option of extending the term of the Term Loan 1 to June 6, 2052. Amounts outstanding under the Term Loans will bear interest at the rate equal to the lesser of (a) the Maximum Lawful Rate, or (b) the greater of (i) WSJP (the “Prime Rate” as published by The Wall Street Journal) plus 1.25% per annum or (ii) 4.50% per annum. The Term Loan Agreements contain negative covenants that, subject to certain exceptions, limits the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Term Loan Agreements also provides that the Company and its subsidiaries on a consolidated basis, meet a Fixed Charge Coverage Ratio as described in detail in the Loan Agreements. The Term Loan Agreements contain events of default that are customary for a facility of this nature, including (subject in certain cases to grace periods and thresholds) nonpayment of principal, nonpayment of interest, fees or other amounts, material inaccuracy of representations and warranties, violation of covenants, cross-default to certain other existing indebtedness, bankruptcy or insolvency events, and certain judgment defaults as specified in the Term Loan Agreements. If an event of default occurs, the maturity of the amounts owed under the Term Loan Agreements may be accelerated. The obligations under the Term Loan Agreements are guaranteed by the Company and IFP and are secured by mortgages on their real estate located in Florida, Illinois, and Pennsylvania and substantially all of their assets, in each case, subject to certain exceptions and permitted liens. The Company recorded a discount to this loan in the amount of $23,367 in connection with financing costs; $10,599 and $13,804 of this amount was amortized to interest expense during the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022, the Company accrued interest in the amount of $5,954 and $7,262 on this loan, respectively. $ 356,800 $ - Secured mortgage note payable for the acquisition of land and building in Bonita Springs, Florida in the amount of $546,000. Principal payments of $4,550 plus interest at the rate of Libor plus 3% are due monthly. The balance of the principal amount was originally due February 28, 2018. On March 23, 2018 and effective February 26, 2018, this note was amended and renewed in the amount of $273,000, with monthly payments of principal and interest of $4,550 payable through the maturity date of February 28, 2023. During the three months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $9,100 and $151, respectively; and during the nine months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $22,750 and $655, respectively. On June 9, 2022, the principal and interest due on this note in the amount of $45,500 and $66, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 2. $ - $ 68,250 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 was originally due May 29, 2020. Effective May 29, 2020, the note was amended and renewed such that principal payments of $8,303 plus accrued interest were due beginning June 29, 2020 and continuing for sixty months; the entire principal balance and all accrued interest will be due on May 29, 2025. During the three months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $16,333 and $1,305, respectively; during the nine months ended September 30, 2022, the Company made payments of principal and interest on this note in the amounts of $40,833 and $3,781, respectively. On June 9, 2022, the principal and interest due on this note in the amount of $310,333 and $901, respectively, were paid directly to Fifth Third Bank by Maple Mark in connection with MapleMark Term Loan 2. $ - $ 351,165 Promissory note dated March 22, 2019 in the original amount of $391,558 (the “Artisan Equipment Loan”) payable to Fifth Third Bank. This loan is secured by the Company’s tangible and intangible personal property and bears interest at the rate of 5.20%. The entire principal balance and all accrued interest is due on the maturity date of March 21, 2024. Monthly payments in the amount of $7,425 including principal and interest commenced in April, 2019. During the year ended December 31, 2019, equipment financed under the Artisan Equipment Loan in the amount of $33,075 was returned for credit. During the three months ended September 30, 2022, the Company made payments of principal and interest on this loan in the amounts of $12,288 and $1,308, respectively; during the nine months ended September 30, 2022, the Company made payments of principal and interest on this loan in the amounts of $30,523 and $3,467, respectively. On June 9, 2022, the principal and interest due on this note in the amount of $141,623 and $143, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 1. $ - $ 172,146 A note payable in the amount of $20,000. The Note was due in January 2006 and the Company is currently accruing interest on this note at 1.9%. During the three and nine months ended September 30, 2022, the Company accrued interest in the amount of $96 and $285, respectively, on this note. At September 30, 2022, accrued interest on this note was $18,008. $ 20,000 $ 20,000 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% maturing November 5, 2023. During the three months ended September 30, 2022, the Company made principal and interest payments in the amount of $2,694 and $168, respectively, on this loan; during the nine months ended September 30, 2022, the Company made principal and interest payments in the amount of $7,991 and $601, respectively. $ 12,992 $ 20,984 September 30, 2022 December 31, 2021 (unaudited) Secured mortgage facility in the amount of $5,500,000 with Fifth Third Bank for the acquisition of land and building in Mountaintop, Pennsylvania dated November 8, 2019 (the “Fifth Third Mortgage Facility”). The Fifth Third Mortgage Facility is secured by the assets acquired. During the year ended December 31, 2019, the Company drew down $3,600,000 of this facility. During the year ended December 31, 2020, the Company drew down an additional $1,900,000 of this facility. The interest rate is LIBOR plus 2.75% with interest only due through September 30, 2020, thereafter with principal amortized at a 20 years amortization rate and the balance due on the maturity date of September 2, 2025. The Company prepaid loan fees in connection with this loan in the amount of $72,916 which are considered a discount to the loan and are being amortized over the term of the note; during the three and nine months ended September 30, 2022, $0 and $5,456, respectively, of this discount was amortized to interest expense. During the three months ended September 30, 2022, the Company made principal and interest payments in the amount of $0 and $13,351, respectively, on this loan; during the nine months ended September 30, 2022, the Company made principal and interest payments in the amount of $0 and $51,151, respectively, on this loan. On June 9, 2022, the principal and interest due on this note in the amount of $5,168,000 and $14,967, respectively, were paid directly to Fifth Third Bank by MapleMark in connection with MapleMark Term Loan 1. The Company recorded a loss in the amount of $40,556 on this transaction in connection with the write-off of the unamortized portion of the discount. The Company also had in place an interest rate swap agreement (the “Fifth Third Interest Rate Swap”) with Fifth Third bank in connection with the Fifth Third Mortgage Facility. Pursuant to the Fifth Third Interest Rate Swap, the Company paid an additional base rate of 0.59% reduced by the difference between an initial LIBOR rate of 0.1513% and the month-end LIBOR rate resulting in additional interest expense of $0 and $5,632, respectively, during the three and nine months ended September 30, 2022. On March 28, 2022 the Interest Rate Swap was terminated. Upon termination the Company received a cash payment of $294,000, which is reflected as a gain on the interest rate swap on the statement of operations for the nine months ended September 30, 2022. $ - $ 5,235,600 Total $ 5,714,526 $ 5,868,145 Discount (45,142 ) (46,012 ) Net of discount $ 5,669,384 $ 5,822,133 Current portion $ 5,712,627 $ 458,973 Long-term maturities 1,899 5,409,172 Total $ 5,714,526 $ 5,868,145 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | Aggregate maturities of long-term notes payable as of September 30, 2022 are as follows: 2023 $ 5,712,627 2024 1,899 2025 - 2026 - 2027 - Total $ 5,714,526 |
LEASE LIABILITIES - FINANCING_2
LEASE LIABILITIES - FINANCING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Finance Lease Abstract | |
Finance Lease [Table Text Block] | September 30, 2022 December 31, 2021 (unaudited) Financing lease obligation under a lease agreement for a forklift dated July 12, 2021 in the original amount of $16,070 payable in thirty-six monthly installments of $489 including interest at the rate of 6.01%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $1,307 and $159, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $3,865 and $536, respectively. $ 9,723 $ 13,588 Financing lease obligation under a lease agreement for a pallet truck dated July 15, 2021 in the original amount of $5,816 payable in thirty-six monthly installments of $177 including interest at the rate of 6.01%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $473 and $58, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $1,398 and $194, respectively. $ 3,520 $ 4,918 Financing lease obligation under a lease agreement for warehouse furniture and equipment truck dated October 14, 2020 in the original amount of $514,173 payable in sixty monthly installments of $9,942 including interest at the rate of 6.01%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amount of $24,672 and $5,153, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amount of $72,920 and $16,556, respectively. $ 326,768 $ 399,688 Financing lease obligation under a lease agreement for a truck dated March 31, 2020 in the original amount of $152,548 payable in eighty-four monthly installments of $2,188 including interest at the rate of 5.44%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $5,118 and $1,447, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $15,147 and $4,546, respectively. $ 102,873 $ 118,020 Financing lease obligation under a lease agreement for a truck dated November 5, 2018 in the original amount of $128,587 payable in seventy monthly installments of $2,326 including interest at the rate of 8.33%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $5,869 and $1,109, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $17,247 and $3,684, respectively. $ 49,279 $ 66,526 Financing lease obligation under a lease agreement for a truck dated August 23, 2019 in the original amount of $80,413 payable in eighty-four monthly installments of $1,148 including interest at the rate of 5.0%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $2,821 and $623, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $8,358 and $1,974, respectively. $ 47,965 $ 56,323 Financing lease obligation under a lease agreement for a truck dated February 4, 2022 in the original amount of $42,500 payable in twenty-four monthly installments of $1,963 including interest at the rate of 10.1%. During the three months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $5,022 and $868, respectively. During the nine months ended September 30, 2022, the Company made principal and interest payments on this lease obligation in the amounts of $11,524 and $2,219, respectively. $ 30,976 $ - Total $ 571,104 $ 659,063 Current portion $ 188,818 $ 159,823 Long-term maturities 382,286 499,240 Total $ 571,104 $ 659,063 |
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block] | Aggregate maturities of lease liabilities – financing leases as of September 30, 2022 are as follows: 2023 $ 188,818 2024 183,361 2025 151,984 2026 36,148 2027 10,793 Thereafter - Total $ 571,104 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | The following table summarizes the options outstanding at September 30, 2022 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 $ 0.41 125,000 1.57 $ 0.41 125,000 $ 0.41 $ 0.50 125,000 1.57 $ 0.50 125,000 $ 0.50 $ 0.60 50,000 3.25 $ 0.60 43,750 $ 0.60 $ 0.62 360,000 1.25 $ 0.62 360,000 $ 0.62 $ 0.85 540,000 1.25 $ 0.85 540,000 $ 0.85 $ 1.00 50,000 3.25 $ 1.00 43,750 $ 1.00 $ 1.20 1,050,000 1.15 $ 1.20 1,050,000 $ 1.20 2,300,000 1.33 $ 0.93 2,287,500 $ 0.93 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Transactions involving stock options are summarized as follows: Number of Shares Weighted Average Exercise Price Options outstanding at December 31, 2021 2,100,000 $ 0.99 Granted 250,000 $ 0.46 Exercised - $ - Cancelled / Expired (50,000 ) $ 1.20 Options outstanding at September 30, 2022 (unaudited) 2,300,000 $ 0.93 Options exercisable at September 30, 2022 (unaudited) 2,287,500 $ 0.93 |
NATURE OF ACTIVITIES AND SIGN_3
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Cash, Uninsured Amount (in Dollars) | $ 403,255 | $ 403,255 | $ 4,555,032 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 50,000 | ||||
Share-Based Payment Arrangement, Noncash Expense (in Dollars) | $ 2,270 | ||||
Share-Based Payment Arrangement, Expense (in Dollars) | $ 520,218 | $ 476,132 | |||
Share-Based Payment Arrangement, Option [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,225,000 | 2,300,000 | |||
U.S. Foods, Inc. [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Concentration Risk, Percentage | 27% | 28% | |||
U.S. Foods, Inc. [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Concentration Risk, Percentage | 51% | 48% | |||
Director [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture | 86,236 | ||||
Director [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights | These grants will vest as follows: 25,816 per quarter through December 31, 2022, and 15,106 per quarter through September 30, 2023, and 15,102 during the quarter ended December 31, 2023 | ||||
Restricted Stock [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 300,000 | ||||
Share-Based Payment Arrangement, Expense (in Dollars) | $ 124,874 | $ 368,296 | |||
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 125,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 125,000 | 125,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights | vest contingent upon the attainment of a stock price of $2.00 per share for 20 straight trading days | ||||
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 175,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 175,000 | 175,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights | vest contingent upon the attainment of a stock price of $3.00 per share for 20 straight trading days | ||||
Share-Based Payment Arrangement, Option [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 250,000 | ||||
Share-Based Payment Arrangement, Expense (in Dollars) | $ 2,092 | $ 0 | |||
Share-Based Payment Arrangement, Option [Member] | Employee and Board Member [Member] | |||||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Share-Based Payment Arrangement, Expense (in Dollars) | $ 2,326 | $ 35,878 | $ 6,978 | $ 107,836 |
NATURE OF ACTIVITIES AND SIGN_4
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Deferred Revenue, by Arrangement, Disclosure - USD ($) | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Deferred Revenue By Arrangement Disclosure Abstract | ||||||
Balance | $ 1,222,247 | $ 1,250,944 | $ 1,631,406 | $ 980,535 | $ 1,133,411 | $ 2,917,676 |
Cash payments received | 385,633 | 99,989 | 700,582 | 401,097 | 375,115 | 591,886 |
Net sales recognized | (513,231) | (128,686) | (1,081,044) | (325,621) | (527,991) | (2,376,151) |
Balance | $ 1,094,649 | $ 1,222,247 | $ 1,250,944 | $ 1,056,011 | $ 980,535 | $ 1,133,411 |
NATURE OF ACTIVITIES AND SIGN_5
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Disaggregation of Revenue - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 20,059,982 | $ 15,207,353 | $ 56,226,249 | $ 41,362,816 |
Specialty Food Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,630,515 | 12,060,223 | 46,072,258 | 29,049,060 |
Ecommerce [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,839,541 | 2,652,307 | 8,637,210 | 10,917,318 |
National Brand Management [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 336,766 | 260,934 | 872,732 | 751,865 |
Warehouse and Logistic Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 253,160 | $ 233,889 | $ 644,049 | $ 644,573 |
NATURE OF ACTIVITIES AND SIGN_6
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.2 | ||
Number of Options | 2,225,000 | 2,225,000 | |
Weighted Average Remaining Contractual Life | 2 years 1 month 17 days | ||
Options at $0.41 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.41 | ||
Number of Options | 125,000 | ||
Weighted Average Remaining Contractual Life | 1 year 6 months 25 days | ||
Options at $0.50 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.5 | ||
Number of Options | 125,000 | ||
Weighted Average Remaining Contractual Life | 1 year 6 months 25 days | ||
Options at $0.60 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.6 | $ 0.6 | |
Number of Options | 50,000 | 50,000 | 50,000 |
Weighted Average Remaining Contractual Life | 3 years 3 months | 4 years 3 months | |
Options at $0.62 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.62 | $ 0.62 | |
Number of Options | 360,000 | 360,000 | 360,000 |
Weighted Average Remaining Contractual Life | 1 year 3 months | 2 years 3 months | |
Options at $0.85 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 0.85 | $ 0.85 | |
Number of Options | 540,000 | 540,000 | 540,000 |
Weighted Average Remaining Contractual Life | 1 year 3 months | 2 years 3 months | |
Options at $1.00 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1 | $ 1 | |
Number of Options | 50,000 | 50,000 | 50,000 |
Weighted Average Remaining Contractual Life | 3 years 3 months | 4 years 3 months | |
Options at $1.20 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.2 | $ 1.2 | |
Number of Options | 1,100,000 | 1,050,000 | 1,100,000 |
Weighted Average Remaining Contractual Life | 1 year 1 month 24 days | 2 years 14 days | |
Options at $2.05 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Number of Options | 2,300,000 | ||
Weighted Average Remaining Contractual Life | 1 year 3 months 29 days | ||
Options at $1.50 [Member] | |||
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Dilutive Shares [Line Items] | |||
Exercise Price | $ 1.5 | ||
Number of Options | 125,000 | 125,000 | |
Weighted Average Remaining Contractual Life | 3 months |
LIQUIDITY (Details)
LIQUIDITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
LIQUIDITY (Details) [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | $ (35,560,541) | $ (35,560,541) | $ (33,116,124) | ||
Net Cash Provided by (Used in) Operating Activities | (2,802,762) | $ (5,947,141) | |||
Working Capital (Deficit) | (4,607,614) | ||||
Net Income (Loss) Attributable to Parent | 9,746 | $ 367,026 | (2,444,417) | $ (2,414,369) | |
Long-Term Line of Credit | 2,014,333 | 2,014,333 | |||
Debt, Current | 7,695,866 | 7,695,866 | |||
Repayments of Debt | 5,665,456 | ||||
Maple Mark Term Loan 1 [Member] | |||||
LIQUIDITY (Details) [Line Items] | |||||
Notes Payable | 5,324,733 | 5,324,733 | |||
Maple Mark Term Loan 2 [Member] | |||||
LIQUIDITY (Details) [Line Items] | |||||
Notes Payable | $ 356,800 | $ 356,800 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Receivables [Abstract] | ||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 3,437 | $ 11,473 | $ 4,456 | $ 32,443 |
ACCOUNTS RECEIVABLE (Details) -
ACCOUNTS RECEIVABLE (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Receivable Abstract | ||
Accounts receivable from customers | $ 5,036,296 | $ 3,632,695 |
Allowance for doubtful accounts | (365,651) | (375,931) |
Accounts receivable, net | $ 4,670,645 | $ 3,256,764 |
INVENTORY (Details) - Schedule
INVENTORY (Details) - Schedule of Inventory - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Inventory Abstract | ||
Finished Goods Inventory | $ 2,937,098 | $ 3,109,984 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 09, 2022 USD ($) | Oct. 02, 2020 USD ($) | Nov. 08, 2019 USD ($) a ft² | May 14, 2015 USD ($) a ft² | Feb. 26, 2013 USD ($) a ft² | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
PROPERTY AND EQUIPMENT (Details) [Line Items] | |||||||||||
Area of Land (in Acres) | a | 15 | ||||||||||
Area of Real Estate Property (in Square Feet) | ft² | 200,000 | ||||||||||
Property, Plant and Equipment, Additions | $ 2,231,458 | $ 4,500,000 | |||||||||
Payments to Acquire Property, Plant, and Equipment | $ 107,045 | $ 14,812 | |||||||||
Debt Instrument, Face Amount | $ 5,500,000 | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | $ 3,600,000 | ||||||||||
Property, Plant and Equipment, Useful Life | 20 years | ||||||||||
Repayments of Bank Debt | $ 5,168,000 | ||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 14,967 | ||||||||||
Depreciation | $ 96,650 | $ 97,797 | $ 285,215 | $ 298,362 | |||||||
Land and Building [Member] | |||||||||||
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 | $ 80,000 | $ 792,758 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 914,350 | ||||||||||
Proceeds from Lines of Credit | 900,000 | $ 1,900,000 | |||||||||
Debt Instrument, Face Amount | $ 980,000 | ||||||||||
Repayments of Lines of Credit | $ 900,000 | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Land and Building [Member] | |||||||||||
PROPERTY AND EQUIPMENT (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3% |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details) - Schedule of property, plant and equipment - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 10,559,321 | $ 10,472,253 |
Less: accumulated depreciation | (2,551,264) | (2,286,026) |
Total | 8,008,057 | 8,186,227 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,256,895 | 1,256,895 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 7,191,451 | 7,191,451 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 607,384 | 593,566 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 376,667 | 376,667 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,017,483 | 944,233 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 109,441 | $ 109,441 |
RIGHT OF USE (_ROU_) ASSETS A_3
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) [Line Items] | ||||
Operating Lease, Expense | $ 18,213 | $ 30,861 | $ 60,186 | $ 89,443 |
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 15,659 | $ 26,305 | $ 50,821 | $ 76,005 |
Minimum [Member] | ||||
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||
Maximum [Member] | ||||
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 3 years | 3 years |
RIGHT OF USE (_ROU_) ASSETS A_4
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Schedule of Property Subject to or Available for Operating Lease - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||
Right to use assets, net | $ 168,344 | $ 232,381 |
Land and Building [Member] | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||
Right to use assets, net | 117,412 | 148,529 |
Equipment [Member] | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||
Right to use assets, net | 40,558 | 55,047 |
Office Equipment [Member] | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||
Right to use assets, net | 10,374 | 12,677 |
Vehicles [Member] | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||
Right to use assets, net | $ 0 | $ 16,128 |
RIGHT OF USE (_ROU_) ASSETS A_5
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lease, Cost - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lease, Cost [Line Items] | ||
Lease liability | $ 168,344 | $ 232,381 |
Less: current portion | (63,569) | (74,088) |
Lease liability, non-current | 104,775 | 158,293 |
Land and Building [Member] | ||
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lease, Cost [Line Items] | ||
Lease liability | 117,412 | 148,529 |
Equipment [Member] | ||
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lease, Cost [Line Items] | ||
Lease liability | 40,558 | 55,047 |
Office Equipment [Member] | ||
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lease, Cost [Line Items] | ||
Lease liability | 10,374 | 12,677 |
Vehicles [Member] | ||
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lease, Cost [Line Items] | ||
Lease liability | $ 0 | $ 16,128 |
RIGHT OF USE (_ROU_) ASSETS A_6
RIGHT OF USE (“ROU”) ASSETS AND LEASE LIABILITIES – OPERATING LEASES (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee Operating Lease Liability Maturity Abstract | ||
For the period ended September 30, 2023 | $ 72,948 | |
For the period ended September 30, 2024 | 71,901 | |
For the period ended September 30, 2025 | 37,938 | |
For the period ended September 30, 2026 | 890 | |
For the period ended September 30, 2027 | 0 | |
Total | 183,677 | |
Less: Present value discount | (15,333) | |
Lease liability | $ 168,344 | $ 232,381 |
RIGHT OF USE ASSETS _ FINANCI_3
RIGHT OF USE ASSETS – FINANCING LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disclosure Text Block [Abstract] | ||||
Finance Lease, Right-of-Use Asset, Amortization | $ 37,128 | $ 35,036 | $ 107,736 | $ 100,732 |
RIGHT OF USE ASSETS _ FINANCI_4
RIGHT OF USE ASSETS – FINANCING LEASES (Details) - Schedule of Capital Leased Assets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
RIGHT OF USE ASSETS – FINANCING LEASES (Details) - Schedule of Capital Leased Assets [Line Items] | ||
Leased Assets, Gross | $ 960,274 | $ 917,774 |
Less: accumulated depreciation | (356,471) | (248,735) |
Total | 603,803 | 669,039 |
Vehicles [Member] | ||
RIGHT OF USE ASSETS – FINANCING LEASES (Details) - Schedule of Capital Leased Assets [Line Items] | ||
Leased Assets, Gross | 404,858 | 362,358 |
Equipment [Member] | ||
RIGHT OF USE ASSETS – FINANCING LEASES (Details) - Schedule of Capital Leased Assets [Line Items] | ||
Leased Assets, Gross | $ 555,416 | $ 555,416 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Investment Holdings Abstract | |||||
Equity Method Investment, Additional Information | the Company has investments in seven food related companies | ||||
Long-Term Investments | $ 286,725 | $ 286,725 | $ 286,725 | ||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 | $ 0 | $ 209,850 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill, Impairment Loss | $ 1,048,692 | ||||
Other Intangible Assets, Net | $ 1,574,147 | $ 1,574,147 | $ 1,605,040 | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 10,331 | $ 2,870 | $ 30,993 | $ 8,610 |
INTANGIBLE ASSETS (Details) - S
INTANGIBLE ASSETS (Details) - Schedule of intangible assets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | $ 6,066,399 | $ 6,066,399 |
Intangible asset, Accumulated Amortization | (4,492,252) | (4,461,359) |
Intangible asset, Net | 1,574,147 | 1,605,040 |
Noncompete Agreements [Member] | ||
INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 505,900 | 505,900 |
Intangible asset, Accumulated Amortization | (505,900) | (505,900) |
Intangible asset, Net | 0 | 0 |
Customer Relationships [Member] | ||
INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 3,068,034 | 3,068,034 |
Intangible asset, Accumulated Amortization | (3,068,034) | (3,068,034) |
Intangible asset, Net | 0 | 0 |
Trade Names [Member] | ||
INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 1,532,822 | 1,532,822 |
Intangible asset, Accumulated Amortization | 0 | 0 |
Intangible asset, Net | 1,532,822 | 1,532,822 |
Developed Technology Rights [Member] | ||
INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 875,643 | 875,643 |
Intangible asset, Accumulated Amortization | (875,643) | (875,643) |
Intangible asset, Net | 0 | 0 |
Website [Member] | ||
INTANGIBLE ASSETS (Details) - Schedule of intangible assets [Line Items] | ||
Intangible asset, gross | 84,000 | 84,000 |
Intangible asset, Accumulated Amortization | (42,675) | (11,782) |
Intangible asset, Net | $ 41,325 | $ 72,218 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - Schedule of accounts payable and accrued liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Payable And Accrued Liabilities Abstract | ||
Trade payables and accrued liabilities | $ 5,835,854 | $ 5,414,731 |
Accrued payroll and commissions | 234,395 | 288,174 |
Total | $ 6,070,249 | $ 5,702,905 |
ACCRUED INTEREST (Details)
ACCRUED INTEREST (Details) - Accrued interest [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
ACCRUED INTEREST (Details) [Line Items] | ||||
Interest Payable | $ 18,008 | $ 18,008 | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 58,292 | $ 88,331 | $ 187,090 | $ 250,967 |
REVOLVING CREDIT FACILITIES (De
REVOLVING CREDIT FACILITIES (Details) - Schedule of Line of Credit Facilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Line of credit | $ 2,014,333 | $ 2,000,000 |
Line of Credit [Member] | Maple Mark Revolver [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | 2,014,333 | 0 |
Line of Credit [Member] | Fifth Third Bank Credit Facility #2 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 0 | $ 2,000,000 |
REVOLVING CREDIT FACILITIES (_2
REVOLVING CREDIT FACILITIES (Details) - Schedule of Line of Credit Facilities (Parentheticals) - Line of Credit [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 09, 2022 | Jun. 06, 2022 | Mar. 31, 2022 | Oct. 29, 2021 | Jul. 31, 2021 | Mar. 20, 2020 | Aug. 01, 2019 | Sep. 30, 2022 | Sep. 30, 2022 | |
Maple Mark Revolver [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Credit Facility | $ 2,014,333 | ||||||||
Interest rate | Any amounts borrowed under the MapleMark Revolver will bear interest at the greater of (a) the Base Rate (the rate of interest per annum quoted in the “Money Rates” section of The Wall Street Journal from time to time and designated as the “Prime Rate”) plus 0.25% per annum and (b) 3.50% per annum. | ||||||||
Maturity date | The MapleMark Revolver matures on November 28, 2022 and in the event United States Department of Agriculture issues a guarantee of repayment of the MapleMark Revolver in favor of the Company pursuant to its Business and Industry Loan Guarantee Program (the “USDA Guarantee”), at the Company’s option, the amount of the MapleMark Revolver can be expanded to $3,000,000 and its term extended to November 28, 2023. | ||||||||
Interest | $ 34,355 | $ 34,355 | |||||||
Fifth Third Bank Credit Facility #2 [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Credit Facility | $ 2,000,000 | ||||||||
Due Date | Jun. 30, 2022 | Mar. 01, 2022 | Nov. 01, 2021 | Aug. 01, 2021 | |||||
Interest paid | $ 22,459 | $ 44,681 | |||||||
Amount | $ 2,000,000 | ||||||||
Fifth Third Bank Credit Facility #2 [Member] | Accrued interest [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
$ 14,333 | |||||||||
Fifth Third Bank Credit Facility #2 [Member] | Principal [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
$ 2,000,000 | |||||||||
Fifth Third Bank Credit Facility #2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest | 3% |
NOTES PAYABLE (Details) - Sched
NOTES PAYABLE (Details) - Schedule of debt - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Total | $ 5,714,526 | $ 5,868,145 |
Discount | (45,142) | (46,012) |
Net of discount | 5,669,384 | 5,822,133 |
Current maturities, net of discount | 5,712,627 | 458,973 |
Long-term portion, net of discount | 1,899 | 5,409,172 |
Total | 5,714,526 | 5,868,145 |
Loans Payable [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 12,992 | 20,984 |
Bonita Springs, FL [Member] | Mortgages [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 0 | 68,250 |
Broadview, IL [Member] | Mortgages [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 0 | 351,165 |
Wright, Pennslyvania [Member] | Mortgages [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 0 | 5,235,600 |
Maple Mark Term Loan 1 [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 5,324,733 | 0 |
Notes Payable | 5,324,733 | |
Maple Mark Term Loan 2 [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Secured mortgage | 356,800 | 0 |
Notes Payable | 356,800 | |
Artisan Equipment Loan [Member] | Notes Payable to Banks [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Notes Payable | 0 | 172,146 |
Convertible Debt [Member] | ||
NOTES PAYABLE (Details) - Schedule of debt [Line Items] | ||
Convertible debt | $ 20,000 | $ 20,000 |
NOTES PAYABLE (Details) - Sch_2
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 09, 2022 | Jun. 06, 2022 | Mar. 28, 2022 | May 29, 2020 | Apr. 30, 2020 | Nov. 08, 2019 | Mar. 22, 2019 | Dec. 06, 2018 | Mar. 23, 2018 | Feb. 28, 2018 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 29, 2020 | Jan. 31, 2006 | |
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 5,500,000 | ||||||||||||||||||
Interest- variable rate | 2.75% | ||||||||||||||||||
Payments | $ 5,665,456 | ||||||||||||||||||
Fees amortized | 70,618 | $ 9,368 | |||||||||||||||||
Drew | 0 | 1,748,414 | |||||||||||||||||
Gain interest rate swap | $ 0 | $ 0 | $ 294,000 | $ 0 | |||||||||||||||
Loans Payable [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 51,088 | ||||||||||||||||||
Due | November 5, 2023 | ||||||||||||||||||
Dated | Dec. 06, 2018 | ||||||||||||||||||
Interest Rate | 4.61% | ||||||||||||||||||
Monthly Installments | $ 955 | ||||||||||||||||||
Bonita Springs, FL [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 273,000 | $ 546,000 | |||||||||||||||||
Due | February 28, 2023 | February 28, 2018 | |||||||||||||||||
Payments | $ 4,550 | $ 4,550 | |||||||||||||||||
Bonita Springs, FL [Member] | Mortgages [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Interest- variable rate | 3% | ||||||||||||||||||
Broadview, IL [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 980,000 | ||||||||||||||||||
Due | May 29, 2025 | May 29, 2020 | |||||||||||||||||
Payments | $ 8,303 | $ 8,167 | |||||||||||||||||
Principal Balance | $ 490,000 | ||||||||||||||||||
Broadview, IL [Member] | Mortgages [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Interest- variable rate | 2.75% | ||||||||||||||||||
Wright, Pennslyvania [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 5,500,000 | ||||||||||||||||||
Due | September 2, 2025 | ||||||||||||||||||
Dated | Nov. 08, 2019 | ||||||||||||||||||
Debt issuance fee | $ 72,916 | ||||||||||||||||||
Fees amortized | 0 | $ 5,456 | |||||||||||||||||
Drew | $ 1,900,000 | $ 3,600,000 | |||||||||||||||||
Interest rate swap | The interest rate is LIBOR plus 2.75% with interest only due through September 30, 2020, thereafter with principal amortized at a 20 years amortization rate and the balance due on the maturity date of September 2, 2025 | ||||||||||||||||||
Gain interest rate swap | $ 294,000 | ||||||||||||||||||
Interest rate swap | The Company also had in place an interest rate swap agreement (the “Fifth Third Interest Rate Swap”) with Fifth Third bank in connection with the Fifth Third Mortgage Facility. Pursuant to the Fifth Third Interest Rate Swap, the Company paid an additional base rate of 0.59% reduced by the difference between an initial LIBOR rate of 0.1513% | ||||||||||||||||||
Wright, Pennslyvania [Member] | Mortgages [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Interest- variable rate | 2.75% | ||||||||||||||||||
Maple Mark Term Loan 1 [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Interest rate | Amounts outstanding under the Term Loans will bear interest at the rate equal to the lesser of (a) the Maximum Lawful Rate, or (b) the greater of (i) WSJP (the “Prime Rate” as published by The Wall Street Journal) plus 1.25% per annum or (ii) 4.50% per annum. | ||||||||||||||||||
Amount | 5,324,733 | $ 5,324,733 | |||||||||||||||||
Discount | 57,106 | 57,106 | |||||||||||||||||
Interest | 88,856 | 108,380 | |||||||||||||||||
Amortized discount | 25,904 | $ 33,736 | |||||||||||||||||
Due | November 28, 2022 | ||||||||||||||||||
Maple Mark Term Loan 2 [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Interest rate | Amounts outstanding under the Term Loans will bear interest at the rate equal to the lesser of (a) the Maximum Lawful Rate, or (b) the greater of (i) WSJP (the “Prime Rate” as published by The Wall Street Journal) plus 1.25% per annum or (ii) 4.50% per annum. | ||||||||||||||||||
Amount | 356,800 | $ 356,800 | |||||||||||||||||
Discount | 23,367 | 23,367 | |||||||||||||||||
Interest | 10,599 | 13,804 | |||||||||||||||||
Amortized discount | 5,954 | $ 7,262 | |||||||||||||||||
Due | November 28, 2022 | ||||||||||||||||||
Principal [Member] | Loans Payable [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 2,694 | $ 7,991 | |||||||||||||||||
Principal [Member] | Bonita Springs, FL [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | $ 45,500 | 9,100 | 22,750 | ||||||||||||||||
Principal [Member] | Broadview, IL [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 310,333 | 16,333 | 40,833 | ||||||||||||||||
Principal [Member] | Wright, Pennslyvania [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 5,168,000 | 0 | 0 | ||||||||||||||||
Accrued interest [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Accrued interest | 18,008 | 18,008 | |||||||||||||||||
Accrued interest [Member] | Loans Payable [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 168 | 601 | |||||||||||||||||
Accrued interest [Member] | Bonita Springs, FL [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 66 | 151 | 655 | ||||||||||||||||
Accrued interest [Member] | Broadview, IL [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 1,305 | 1,305 | 3,781 | ||||||||||||||||
Accrued interest [Member] | Wright, Pennslyvania [Member] | Mortgages [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 14,967 | 13,351 | $ 51,151 | ||||||||||||||||
Artisan Equipment Loan [Member] | Notes Payable to Banks [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 391,558 | ||||||||||||||||||
Due | March 21, 2024 | ||||||||||||||||||
Payments | $ 7,425 | ||||||||||||||||||
Dated | Mar. 22, 2019 | ||||||||||||||||||
Interest Rate | 5.20% | ||||||||||||||||||
Secured by | the Company’s tangible and intangible personal property | ||||||||||||||||||
Equipment returned | $ 33,075 | ||||||||||||||||||
Artisan Equipment Loan [Member] | Notes Payable to Banks [Member] | Principal [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | 141,623 | 12,288 | $ 30,523 | ||||||||||||||||
Artisan Equipment Loan [Member] | Notes Payable to Banks [Member] | Accrued interest [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Payments | $ 143 | 1,308 | 3,467 | ||||||||||||||||
Convertible Debt [Member] | |||||||||||||||||||
NOTES PAYABLE (Details) - Schedule of debt (Parentheticals) [Line Items] | |||||||||||||||||||
Amount | $ 20,000 | ||||||||||||||||||
Interest | $ 96 | $ 285 | |||||||||||||||||
Interest Rate | 1.90% | 1.90% | |||||||||||||||||
Accrued interest | $ 18,008 | $ 18,008 |
NOTES PAYABLE (Details) - Sch_3
NOTES PAYABLE (Details) - Schedule of Maturities of Long-term Debt - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Maturities Of Long Term Debt Abstract | ||
2023 | $ 5,712,627 | |
2024 | 1,899 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Total | $ 5,714,526 | $ 5,868,145 |
LEASE LIABILITIES - FINANCING_3
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | $ 571,104 | $ 659,063 |
Current portion | 188,818 | 159,823 |
Long-term maturities | 382,286 | 499,240 |
Finance Lease #1 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | 9,723 | 13,588 |
Finance Lease #2 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | 3,520 | 4,918 |
Finance Lease #3 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | 326,768 | 399,688 |
Finance Lease #4 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | 102,873 | 118,020 |
Finance Lease #5 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | 49,279 | 66,526 |
Finance Lease #6 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | 47,965 | 56,323 |
Finance Lease #7 [Member] | ||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost [Line Items] | ||
Financing lease obligations | $ 30,976 | $ 0 |
LEASE LIABILITIES - FINANCING_4
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Feb. 04, 2022 | Jul. 21, 2021 | Jul. 15, 2021 | Oct. 14, 2020 | Mar. 31, 2020 | Aug. 23, 2019 | Nov. 05, 2018 | Sep. 30, 2022 | Sep. 30, 2022 | Jul. 12, 2021 | |
Finance Lease #1 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 16,070 | |||||||||
Payable | thirty-six monthly installments of $489 | |||||||||
Interest Rate | 6.01% | |||||||||
Principal payments | $ 1,307 | $ 3,865 | ||||||||
Interest Payments | 159 | 536 | ||||||||
Finance Lease #2 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 5,816 | |||||||||
Payable | thirty-six monthly installments of $177 | |||||||||
Interest Rate | 6.01% | |||||||||
Principal payments | 473 | 1,398 | ||||||||
Interest Payments | 58 | 194 | ||||||||
Finance Lease #3 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 514,173 | |||||||||
Payable | sixty monthly installments of $9,942 | |||||||||
Interest Rate | 6.01% | |||||||||
Principal payments | 24,672 | 72,920 | ||||||||
Interest Payments | 5,153 | 16,556 | ||||||||
Finance Lease #4 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 152,548 | |||||||||
Payable | eighty-four monthly installments of $2,188 | |||||||||
Interest Rate | 5.44% | |||||||||
Principal payments | 5,118 | 15,147 | ||||||||
Interest Payments | 1,447 | 4,546 | ||||||||
Finance Lease #5 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 128,587 | |||||||||
Payable | seventy monthly installments of $2,326 | |||||||||
Interest Rate | 8.33% | |||||||||
Principal payments | 5,869 | 17,247 | ||||||||
Interest Payments | 1,109 | 3,684 | ||||||||
Finance Lease #6 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 80,413 | |||||||||
Payable | eighty-four monthly installments of $1,148 | |||||||||
Interest Rate | 5% | |||||||||
Principal payments | 2,821 | 8,358 | ||||||||
Interest Payments | 623 | 1,974 | ||||||||
Finance Lease #7 [Member] | ||||||||||
LEASE LIABILITIES - FINANCING LEASES (Details) - Lease, Cost (Parentheticals) [Line Items] | ||||||||||
Original amount | $ 42,500 | |||||||||
Payable | twenty-four monthly installments of $1,963 | |||||||||
Interest Rate | 10.10% | |||||||||
Principal payments | 5,022 | 11,524 | ||||||||
Interest Payments | $ 868 | $ 2,219 |
LEASE LIABILITIES - FINANCING_5
LEASE LIABILITIES - FINANCING LEASES (Details) - Finance Lease, Liability, Maturity | Sep. 30, 2022 USD ($) |
Finance Lease Liability Maturity Abstract | |
2023 | $ 188,818 |
2024 | 183,361 |
2025 | 151,984 |
2026 | 36,148 |
2027 | 10,793 |
Thereafter | 0 |
Total | $ 571,104 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Apr. 08, 2022 | Aug. 26, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 33,445 | ||||
Share-Based Payment Arrangement, Noncash Expense (in Dollars) | $ 2,270 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 50,000 | ||||
Option exercise price (in Dollars per share) | $ 1.2 | ||||
Stock Issued During Period, Shares, New Issues | 9,375,000 | ||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.4 | ||||
Director [Member] | |||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 3,125,000 | ||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.4 | ||||
Affiliated Entity [Member] | |||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 3,125,000 | ||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.4 | $ 0.4 | |||
Director #2 [Member] | |||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 3,125,000 | ||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.4 | $ 0.4 | |||
Independent Director [Member] | |||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture (in Dollars) | $ 30,000 | $ 67,500 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 77,440 | 150,210 | |||
Officer [Member] | |||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture (in Dollars) | $ 421,200 | $ 300,796 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 1,483,517 | 776,611 | |||
Management and Officers [Member] | |||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||
Share-Based Payment Arrangement, Noncash Expense (in Dollars) | $ 6,978 | $ 107,836 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 16, 2019 | Jan. 23, 2018 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability, Current | $ 187,000 | $ 187,000 | $ 187,000 | ||||
Business Combination, Contingent Consideration, Liability, Noncurrent | 108,600 | 108,600 | $ 108,600 | ||||
Loss Contingency, Damages Sought, Value | $ 50,000,000 | ||||||
Licensing Agreements [Member] | |||||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||||||
Payments to Acquire Intangible Assets | $ 50,000 | ||||||
Royalty Rate | 5% | ||||||
Other Commitment, to be Paid, Year One | $ 100,000 | ||||||
Other Commitment, to be Paid, Year Two | 110,000 | ||||||
Other Commitment, to be Paid, Year Three | 125,000 | ||||||
IGourmet, LLC [Member] | |||||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | $ 787,800 | ||||||
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) | ||||||
Other Nonoperating Gains (Losses) | 132,300 | ||||||
Payment for Contingent Consideration Liability, Financing Activities | 0 | 8,000 | 39,000 | ||||
Business Combination, Contingent Consideration, Liability, Current | 67,000 | 67,000 | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | 108,600 | 108,600 | |||||
Mouth Foods [Member] | |||||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | 240,576 | 240,576 | |||||
Payment for Contingent Consideration Liability, Financing Activities | $ 120,576 | ||||||
Business Combination, Contingent Consideration, Liability, Current | $ 120,000 | $ 120,000 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Apr. 25, 2022 | Apr. 08, 2022 | Aug. 26, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
EQUITY (Details) [Line Items] | ||||||||
Common Stock Issued, but not Outstanding (in Shares) | 2,837,580 | 2,837,580 | ||||||
Treasury Stock, Shares (in Shares) | 2,623,171 | 2,623,171 | 2,623,171 | |||||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 11,405 | $ 152,726 | $ 160,752 | $ 458,178 | $ 476,132 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in Shares) | 33,445 | |||||||
Share-Based Payment Arrangement, Expense | 520,218 | 476,132 | ||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | 142,857 | |||||||
Stock Issued During Period, Value, Issued for Services | $ 48,543 | 59,948 | ||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 9,375,000 | |||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.4 | |||||||
Proceeds from Issuance or Sale of Equity | $ 3,580,372 | 3,580,372 | ||||||
Payments of Stock Issuance Costs | $ 169,628 | $ 50,000 | $ 0 | |||||
Share Price (in Dollars per share) | $ 0.19 | $ 0.49 | $ 0.19 | $ 0.49 | ||||
Director [Member] | ||||||||
EQUITY (Details) [Line Items] | ||||||||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 30,000 | $ 67,500 | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in Shares) | 77,440 | 150,210 | ||||||
Issued To Each Investor [Member] | ||||||||
EQUITY (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 3,125,000 | |||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||
EQUITY (Details) [Line Items] | ||||||||
Share-Based Payment Arrangement, Expense | $ 2,092 | $ 0 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | 0 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | 0 | ||||||
Chief Executive Officer [Member] | ||||||||
EQUITY (Details) [Line Items] | ||||||||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 421,200 | |||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in Shares) | 1,483,517 | |||||||
Officer [Member] | ||||||||
EQUITY (Details) [Line Items] | ||||||||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 300,796 | |||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in Shares) | 776,611 | |||||||
Share-Based Payment Arrangement, Expense | $ 6,978 | $ 107,836 | ||||||
Employee and Board Member [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||
EQUITY (Details) [Line Items] | ||||||||
Share-Based Payment Arrangement, Expense | $ 2,326 | $ 35,878 | $ 6,978 | $ 107,836 |
EQUITY (Details) - Schedule of
EQUITY (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - Share-Based Payment Arrangement, Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of options outstanding (in Shares) | 2,300,000 | 2,100,000 |
Weighted average remaining contractual life | 1 year 3 months 29 days | |
Weighted average exercise price of options outstanding | $ 0.93 | $ 0.99 |
Number of options exercisable (in Shares) | 2,287,500 | 2,287,500 |
Weighted average exercise price of options exercisable | $ 0.93 | $ 0.93 |
Options at $0.41 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.41 | |
Number of options outstanding (in Shares) | 125,000 | |
Weighted average remaining contractual life | 1 year 6 months 25 days | |
Weighted average exercise price of options outstanding | $ 0.41 | |
Number of options exercisable (in Shares) | 125,000 | |
Weighted average exercise price of options exercisable | $ 0.41 | |
Options at $0.50 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.5 | |
Number of options outstanding (in Shares) | 125,000 | |
Weighted average remaining contractual life | 1 year 6 months 25 days | |
Weighted average exercise price of options outstanding | $ 0.5 | |
Number of options exercisable (in Shares) | 125,000 | |
Weighted average exercise price of options exercisable | $ 0.5 | |
Options at $0.60 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.6 | |
Number of options outstanding (in Shares) | 50,000 | |
Weighted average remaining contractual life | 3 years 3 months | |
Weighted average exercise price of options outstanding | $ 0.6 | |
Number of options exercisable (in Shares) | 43,750 | |
Weighted average exercise price of options exercisable | $ 0.6 | |
Options at $0.62 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.62 | |
Number of options outstanding (in Shares) | 360,000 | |
Weighted average remaining contractual life | 1 year 3 months | |
Weighted average exercise price of options outstanding | $ 0.62 | |
Number of options exercisable (in Shares) | 360,000 | |
Weighted average exercise price of options exercisable | $ 0.62 | |
Options at $0.85 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 0.85 | |
Number of options outstanding (in Shares) | 540,000 | |
Weighted average remaining contractual life | 1 year 3 months | |
Weighted average exercise price of options outstanding | $ 0.85 | |
Number of options exercisable (in Shares) | 540,000 | |
Weighted average exercise price of options exercisable | $ 0.85 | |
Options at $1.00 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1 | |
Number of options outstanding (in Shares) | 50,000 | |
Weighted average remaining contractual life | 3 years 3 months | |
Weighted average exercise price of options outstanding | $ 1 | |
Number of options exercisable (in Shares) | 43,750 | |
Weighted average exercise price of options exercisable | $ 1 | |
Options at $1.20 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices | $ 1.2 | |
Number of options outstanding (in Shares) | 1,050,000 | |
Weighted average remaining contractual life | 1 year 1 month 24 days | |
Weighted average exercise price of options outstanding | $ 1.2 | |
Number of options exercisable (in Shares) | 1,050,000 | |
Weighted average exercise price of options exercisable | $ 1.2 |
EQUITY (Details) - Schedule _2
EQUITY (Details) - Schedule of share-based compensation, stock options, activity - Share-Based Payment Arrangement, Option [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
EQUITY (Details) - Schedule of share-based compensation, stock options, activity [Line Items] | |
Options Outstanding | 2,100,000 |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.99 |
Options Exercisable | 2,287,500 |
Options Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.93 |
Options Issued | 250,000 |
Options Issued, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.46 |
Options Exercised | 0 |
Options Exercised, Weighted Average Exercise Price | 0 |
Options Forfeited or expired | (50,000) |
Options Forfeited or expired, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.2 |
Options Outstanding | 2,300,000 |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.93 |
Options Exercisable | 2,287,500 |
Options Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.93 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Oct. 15, 2022 USD ($) | Sep. 30, 2022 USD ($) | Nov. 08, 2019 USD ($) |
SUBSEQUENT EVENTS (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 5,500,000 | ||
Long-Term Line of Credit | $ 2,014,333 | ||
Debt Instrument, Term | 6 months | ||
Subsequent Event [Member] | |||
SUBSEQUENT EVENTS (Details) [Line Items] | |||
Number of loans | 3 | ||
Proceeds from Issuance of Debt | $ 13,450,680 | ||
Proceeds from Bank Debt | $ 7,695,867 | ||
Debt Instrument, Term | 90 days | ||
USDA B&I Loan [Member] | Subsequent Event [Member] | |||
SUBSEQUENT EVENTS (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 7,775,680 | ||
USDA Food and Supply Note [Member] | Subsequent Event [Member] | |||
SUBSEQUENT EVENTS (Details) [Line Items] | |||
Debt Instrument, Face Amount | 2,680,000 | ||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
SUBSEQUENT EVENTS (Details) [Line Items] | |||
Long-Term Line of Credit | $ 3,000,000 |