Non-Controlling Interests

6 Months Ended

Jun. 30, 2020

Noncontrolling Interest [Abstract]

Non-Controlling Interests

16. Non-Controlling Interests

EnP Investments is a limited liability corporation (LLC) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, IL. Effective October 1, 2018, the Company paid $4,110,560 in cash and issued a $1,000,000 convertible note to acquire a 65% interest in EnP Investments. An unrelated party owns the remaining 35% of EnP Investments. For financial reporting purposes, the assets, liabilities and earnings of the LLC are consolidated into these financial statements. The unrelated third party’s ownership interest in the LLC is recorded as noncontrolling interests in these consolidated financial statements. The noncontrolling interest represents the unrelated third party’s interest in the earnings and equity of EnP Investments. EnP Investments is allocated to the TPA segment.

EnP Investments makes cash distributions to the unit holders based on formulas defined within its Ownership Interest Purchase Agreement dated October 1, 2018. Distributions, as defined in the Ownership Interest Purchase Agreement, are based on cash on hand to the extent it exceeds current and anticipated long-term and short-term needs, including, without limitation, needs for operating expenses, debt service, acquisitions, reserves, and mandatory distributions, if any.

From the effective date of acquisition onward, the minimum distributions requirements under the Ownership Interest Purchase Agreement were satisfied. The total distribution from the effective date of acquisition onward was $723,350.

Balance, December 31, 2018	$	2,462,231
Distribution to non-controlling interest		(296,875	)
Noncontrolling interest share of profits		384,793
Balance, December 31, 2019		2,550,149
Distribution to non-controlling interest		(197,240	)
Noncontrolling interest share of profits		199,093
Balance, |June 30, 2020	$	2,552,002