XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.20.1

LEASES | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
LEASES |
7. | LEASES
In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). Topic 842 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases with terms of more than twelve months. The Company adopted Topic 842, as amended, effective January 1, 2019. Upon adopting Topic 842, the Company recognized a ROU asset of $259,358 and a corresponding lease liability pertaining to the Company's operating lease of its corporate office space from a related party (see Note 20), measured based on the present value of the future minimum lease payments utilizing the Company's incremental borrowing rate as the basis for the computations. ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The adoption of Topic 842 did not have a material impact on our consolidated statements of operations or consolidated statements of cash flows, and did not result in a cumulative effect adjustment to retained earnings in the period of adoption. The Company elected the package of practical expedients permitted under the transition guidance within the Topic 842, which allowed the Company to carry forward the historical lease classification, not reassess prior conclusions related to expired or existing contracts that are or that contain leases, and not reassess the accounting for initial direct costs. In addition to the Company's operating lease of its corporate office space, the Company acquired certain other leases of vehicles and office space as part of its Acquisition of Func Food during the fourth quarter of 2019 (see Note 10). At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately. Leases are classified as either finance leases or operating leases based on criteria in Topic 842. The Company's operating leases are generally comprised of real estate and vehicles, and the Company's finance leases are generally comprised of vehicles. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and interest expense is calculated using the effective interest rate method. The following is a summary of lease cost recognized in the Company's consolidated statements of operations for the year ended December 31, 2019:
|  | Year ended December 31, 2019 |
|  | Operating Leases |  |  | Finance Leases |
Lease cost in general and administrative expenses: |  |  |  |  |  |
Operating lease expense |  | $ | 188,977 |  |  | $ | - |
Amortization of finance lease ROU assets |  |  | - |  |  |  | 97,478 |
Total lease cost in general and administrative expenses |  |  | 188,977 |  |  |  | 97,478 |
Lease cost in other expense: |  |  |  |  |  |  |  |
Interest on finance lease liabilities |  |  | - |  |  |  | 2,288 |
Total lease cost in other expense |  |  | - |  |  |  | 2,288 |
Total lease cost |  | $ | 188,977 |  |  | $ | 99,766 |
The following is a summary of the impact of the Company's leases on the consolidated statements of cash flows for the year ended December 31, 2019:
|  | Year ended December 31, 2019 |
Leasing activity in cash flows from operating activities:
Operating leases |  |  | (182,917 | )
Interest payments on finance lease liabilities |  |  | (2,288 | )
Total leasing activity in cash flows from operating activities |  |  | (185,205 | )
Leasing activity in cash flows from financing activities: |  |  |  |
Principal payments on finance lease liabilities |  |  | (26,486 | )
Total leasing activity in cash flows from financing activities: |  |  | (26,486 | )
The following is a summary of the weighted average remaining lease term and weighted average discount rate for the Company's population of leases as of December 31, 2019:
|  | Operating Leases |  |  | Finance Leases |
Weighted average remaining lease term (years) |  |  | 1.5 |  |  |  | 1.2 |
Weighted average discount rate |  |  | 6.88 | % |  |  | 2.62 | %
The future annual minimum lease payments required under the Company's leases as of December 31, 2019 are as follows:
|  | Operating Leases |  |  | Finance Leases |  |  | Total |
Future minimum lease payments |  |  |  |  |  |  |  |  |
2020 |  | $ | 310,532 |  |  | $ | 363,022 |  |  | $ | 673,554 |
2021 |  |  | 102,343 |  |  |  | 88,134 |  |  |  | 190,477 |
2022 |  |  | 7,175 |  |  |  | 50,033 |  |  |  | 57,208 |
Total future minimum lease payments |  |  | 420,050 |  |  |  | 501,189 |  |  |  | 921,239 |
Less: Amount representing interest |  |  | (17,823 | ) |  |  | (14,494 | ) |  |  | (32,317 | )
Present value of lease liabilities |  |  | 402,227 |  |  |  | 486,695 |  |  |  | 888,922 |
Less current portion |  |  | (294,916 | ) |  |  | (354,158 | ) |  |  | (649,074 | )
Long-term portion |  | $ | 107,311 |  |  | $ | 132,537 |  |  | $ | 239,848 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration