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Investments | 9 Months Ended
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Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Investments | 9. Investments (a) The Company has a 50% ownership interest in ENP Peru Investments LLC (“ENP Peru”), which was acquired in fiscal 2016. ENP Peru is located in Illinois and leases warehouse space. The Company accounts for this investment using the equity method of accounting as ENP Peru is not controlled by the Company. A summary of the Company’s investment follows:
Balance, December 31, 2018 |  | $ | 12,108 |
Return of equity |  |  | (6,250 | )
Gain in equity method investment |  |  | 5,529 |
Balance, December 31, 2019 |  |  | 11,387 |
Return of equity |  |  | (7,813 | )
Balance, September 30, 2020 |  | $ | 3,574 |
Summarized profit and loss information related to the equity accounted investment is as follows for the full year:
|  | 2019 |
Net sales |  | $ | 285,635 |
Net income |  | $ | 11,058 |
(b) The Company has a 24% ownership interest in ENP Realty LLC (“ENP Realty”), which was acquired in fiscal 2018. ENP Realty is located in Illinois and leases warehouse space. The Company accounts for this investment using the equity method of accounting. A summary of the Company’s investment follows:
Balance, December 31, 2018 |  | $ | 64,249 |
Return of equity |  |  | (9,292 | )
Gain in equity method investment |  |  | 8,208 |
Balance, December 31, 2019 and September 30, 2020 |  | $ | 63,165 |
Summarized profit and loss information related to the equity accounted investment is as follows for the full year:
|  | 2019 |
Net sales |  | $ | 75,870 |
Net income |  | $ | 34,200 |
(c) In December 2018 the Company invested $200,000 in Applied Holding Corp. (“Applied”). Applied is a captive insurance company and the Company received a promissory note for its investment which becomes due in 2021 but may be extended with notice for a maximum of two years. The Company has elected to account for this investment at cost. (d) In December 2018 the Company invested $500,000 in Trio Opportunity Corp. (“Trio”), a privately held entity. Trio is a real estate investment vehicle and the Company received 50,000 non-voting Class B shares at $10.00/share. In accordance with ASC 321-10-35, the Company has elected to account for this investment at cost. A summary of the Company’s investment follows:
Balance, December 31, 2018 |  | $ | 500,000 |
Impairment |  |  | - |
Balance, December 31, 2019 and September 30, 2020 |  | $ | 500,000 |
(e) In January 2019, the Company invested $1,001,000 in a Florida based LLC that is engaged in international sales of fertilizer additives. The Company accounts for this investment using the equity method of accounting. According to the operating agreement, the Company has a 50% interest in the profit and loss of the LLC but does not have control. A summary of the Company’s investment follows:
Balance, December 31, 2018 |  | $ | - |
Acquisition |  |  | 1,001,000 |
Gain in equity method investment |  |  | 290,033 |
Return on investment |  |  | (150,000 | )
Balance, December 31, 2019 |  |  | 1,141,033 |
Additional payment |  |  | 1,000,000 |
Return on investment |  |  | (471,714 | )
Gain on equity method investment |  |  | 582,086 |
Balance, September 30, 2020 |  | $ | 2,251,405 |
Further to the original investment amount, the Company had placed $1,000,000 in trust, to be released upon the LLC reaching a milestone related to earnings before interest, taxes and depreciation (“EBITDA”) targets. This amount is accounted for as restricted cash on the December 31, 2019 balance sheet and was reclassified as an investment during the nine-month period ended September 30, 2020. Further payments of $1,000,000 and $500,000 may become due should other subsequent milestones be reached. Summarized profit and loss information for the nine months ended September 30th related to the equity accounted investment is as follows:
|  | 2020 |  |  | 2019 |
Net sales |  | $ | 8,024,786 |  |  | $ | 6,875,157 |
Gross profit |  |  | 3,251,607 |  |  |  | 1,951,078 |
Net income |  | $ | 1,164,174 |  |  | $ | 646,996 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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