XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.21.2

INVESTMENTS | 6 Months Ended
--- | ---
Jun. 30, 2021
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS | 10. 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. A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT
Balance, December 31, 2019 |  | $ | 11,387 |
Return of equity |  |  | (9,063 | )
Gain in equity method investment |  |  | 1,498 |
Balance, December 31, 2020 |  |  | 3,822 |
Return of equity |  |  | (3,822 | )
Gain in equity method investment |  |  | - |
Balance, June 30, 2021 |  | $ | - |
Summarized profit and loss information related to the equity accounted investment is as follows for the full year: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT
|  | 2020 |
Net sales |  | $ | 295,800 |
Net income |  | $ | 2,996 |
During the six months ended June 30, 2021, the Company received $16,177 from ENP Peru. At the time of receipt of the payment, the investment balance was $nil and the payment was not recorded against the investment balance but was included in gains on investments. (b) In fiscal 2018, ENP Investments acquired a 24% ownership interest in ENP Realty LLC (“ENP Realty”). ENP Realty is located in Illinois and leases warehouse space. During the year ended December 31, 2020, the other partners of ENP Realty withdrew from the partnership, resulting in ENP Realty becoming a wholly owned subsidiary of ENP Investments. As a result, ENP Realty was renamed ENP Mendota and is consolidated in the financial statements of the Company and a 35% non-controlling interest is recognized from the acquisition date onwards. It was determined that ENP Mentoda did not meet the definition of a business in accordance with FASB Codification Topic 805, Business Combinations (ASC 805), and the acquisition was accounted for as an asset acquisition. The following table summarizes the final purchase price allocation of the consideration paid to the respective fair values of the assets acquired and liabilities assumed in ENP Realty as of the acquisition date. SCHEDULE OF FAIR VALUES OF ASSETS ACQUIRED AND LIABILITIES ASSUMPTION
Investment eliminated upon consolidation |  | $ | 63,165 |
Assets acquired: |  |  |  |
Cash |  |  | 13,419 |
Building |  |  | 630,000 |
Land |  |  | 85,000 |
Liabilities assumed: |  |  |  |
Accounts payable |  |  | (15,797 | )
Long term debt |  |  | (450,000 | )
Deferred income tax liability |  |  | (66,116 | )
Total identifiable net assets: |  |  | 196,506 |
Gain on acquisition of ENP Realty |  | $ | 133,341 |
The income tax expense arising from the deferred income tax liability was net against gain on acquisition of ENP Realty in the consolidated statements of operations and comprehensive income for the full year ended December 31, 2020. A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT
Balance, December 31, 2019 |  | $ | 63,165 |
Investment eliminated upon consolidation |  |  | (63,165 | )
Balance, December 31, 2020 and June 30, 2021 |  | $ | - |
Summarized profit and loss information related to the equity accounted investment is as follows for the full year: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT
|  | 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. In accordance with FASB Codification Topic 323, Investments – Equity Method and Joint Ventures (ASC 323), 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 323, the Company has elected to account for this investment at cost. (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 Florida based LLC but does not have control. A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT
Balance, December 31, 2019 |  | $ | 1,141,033 |
Additional payments |  |  | 2,518,684 |
Gain in equity method investment |  |  | 809,342 |
Return of equity |  |  | (896,714 | )
Balance, December 31, 2020 |  |  | 3,572,345 |
Gain in equity method investment |  |  | 383,059 |
Return of equity |  |  | (100,000 | )
Balance, June 30, 2021 |  | $ | 3,855,404 |
Further to the original investment amount, the Company had placed $1,000,000 in trust, which was released upon the Florida based LLC reaching a milestone related to earnings before interest, taxes and depreciation (“EBITDA”) targets. This amount was accounted for as restricted cash on the balance sheet as at December 31, 2019. During the year ended December 31, 2020, this amount was released. The additional payments of $2,518,684 made during the year ended December 31, 2020 related to contingent consideration which was dependent on the Florida based LLC meeting certain performance millstones during the year. Summarized profit and loss information related to the equity accounted investment is as follows: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT
|  | Six months ended June 30, 2021 |  |  | Six months ended June 30, 2020 |
Net sales |  | $ | 4,987,836 |  |  | $ | 5,790,221 |
Gross profit |  |  | 1,850,172 |  |  |  | 2,317,999 |
Net income |  |  | 766,167 |  |  | $ | 934,307 |
f) In December 2020, the Company invested $500,000 in Lygos Inc., a privately held entity. Both companies intend to work together in pursuit of sustainable aspartic acid through synthetic biology. The Company has elected to account for this investment at cost. Upon reaching a predetermined milestone, a further payment of $500,000 was made in June 2021. A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT
Balance, January 1, 2020 |  | $ | - |
Acquisition |  |  | 500,000 |
Balance, December 31, 2020 and March 31, 2021 |  |  | 500,000 |
Additional payment |  |  | 500,000 |
Balance, June 30, 2021 |  | $ | 1,000,000 |

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

X
- 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
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration