COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS (Tables)

9 Months Ended

Sep. 30, 2019

COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS [Abstract]

Customer and Purchase Concentration Risks

The following table discloses product sales the Company had to each customer that purchased in excess of 10% of the Company’s net product sales for the periods indicated:

	For the three months ended										For the nine months ended										Accounts Receivable as of
	September 30, 2019					September 30, 2018					September 30, 2019					September 30, 2018					September 30, 2019		Dec. 31, 2018
	Sales		% of Sales			Sales		% of Sales			Sales		% of Sales			Sales		% of Sales
Customer 1	$	3,966,142		46.6	%	$	3,256,390		39	%	$	10,012,644		42.8	%	$	9,241,445		42	%	$	2,209,986	$	3,499,340
Customer 2		-		-	%		1,852,186		22	%		4,378,773		18.7	%		3,312,816		15	%		189,283		1,033,824

Sales include product sales only, while accounts receivable reflects the total due from the customer, including freight.

The following table discloses purchases the Company made from each vendor that sold to the Company in excess of 10% of the Company’s total purchases for the periods indicated:

For the three months ended

For the nine months ended

Accounts Payable as of

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

September 30, 2019

Dec. 31, 2018

Purchases

% of Purc.

Purchases

% of Purc.

Purchases

% of Purc.

Purchases

% of Purc.

Vendor 1

508,646

1,372,521

Future Minimum Salary Commitment

The following table is a schedule of future minimum salary commitments as of September 30, 2019:

2019	$	205,000
2020		478,800
2021		365,000

Components of Lease Expense

The components of lease expense for the three and nine months ended September 30, 2019 were as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease expense	$	425,757	$	1,108,016

Finance lease cost
Amortization of right-of-use assets	$	11,686	$	11,686
Interest on lease liabilities		4,033		4,033
Total finance lease expense	$	15,719	$	15,719

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows.

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	158,050	$	474,150
Operating cash flows for finance leases		4,033		4,033
Financing cash flows for finance leases		9,851		9,851
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	6,697,896
Finance leases		-		222,036

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

	September 30, 2019
Operating Leases
Operating lease right-of-use assets	$	6,697,896

Current portion of operating lease liability		255,030
Operating lease liabilities		6,706,918
Total operating lease liabilities	$	6,961,948

Finance Leases
Finance lease right of use asset	$	233,722
Accumulated depreciation		(11,686	)
Finance lease right of use asset, net	$	222,036

Current portion of finance lease liability		41,169
Finance lease liability		182,702
Total finance lease liabilities	$	223,871

Weighted Average Remaining Lease Term
Operating leases	9.9 years
Finance leases	4.8 years

Weighted Average Discount Rate
Operating leases		8.51	%
Finance leases		7.00	%

Maturities of Lease Liabilities

Maturities of lease liabilities as of September 30, 2019 were as follows.

	Operating Leases		Finance Leases
2019	$	158,050	$	13,884
2020		813,443		55,536
2021		998,071		55,536
2022		1,026,044		55,536
2023		1,011,085		55,536
Thereafter		6,792,762		27,767
Total lease payments	$	10,799,455	$	263,795
Less: imputed interest		3,837,507		39,924
Total	$	6,961,948	$	223,871

Future Minimum Lease Payments

As previously disclosed in the Company’s 2018 Annual Report on Form 10-K, and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year would have been as follows for the years ending December 31:

2019	$	384,308
2020		88,576
2021		-
	$	472,884