COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS (Tables)

9 Months Ended

Sep. 30, 2020

COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS [Abstract]

Customer and Purchase Concentration Risks

The following table discloses product sales the Company had to customers 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, 2020					September 30, 2019					September 30, 2020					September 30, 2019					September 30, 2020		Dec. 31, 2019
	Sales		% of Sales			Sales		% of Sales			Sales		% of Sales			Sales		% of Sales
Customer 1	$	4,226,040		50.3	%	$	3,966,142		46.6	%	$	6,523,416		36.4	%	$	10,012,644		42.8	%	$	1,622,866	$	941,962
Customer 2	$	1,071,513		12.7	%	$	-		-		$	-		-		$	-		-		$	-	$	-
Customer 3	$	963,671		11.5	%	$	-		-		$	-		-		$	-		-		$	17,510	$	-

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

The following table discloses purchases the Company made form vendors in excess of 10% of the Company’s net purchases for the periods indicated:

	For the Three Months Ended									For the Nine Months Ended									Accounts Payable as of
	September 30, 2020					September 30, 2019				September 30, 2020					September 30, 2019				September 30, 2020		Dec. 31, 2019
	Purchases		% of Purchases			Purchases		% of Purchases		Purchases		% of Purchases			Purchases		% of Purchases
Vendor 1	$	501,562		15.4	%	$	-		-	$	1,600,916		12.3	%	$	-		-	$	178,395	$	-

Future Minimum Salary Commitment

As of September 30, 2020, the Company had multi-year contracts with two key employees that include salaries presently aggregating $765,000 per year. The contracts expire in December 2020 and December 2022. The following table is a schedule of future minimum salary commitments related to those contracts as of September 30, 2020:

2020	$	191,250
2021		765,000
2022		400,000

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	405,989	$	425,757	$	1,258,797	$	1,108,016
Finance lease cost
Amortization of right-of-use assets	$	15,571	$	11,686	$	42,657	$	11,686
Interest on lease liabilities		5,395		4,033		14,762		4,033
Total finance lease expense	$	20,966	$	15,719	$	57,419	$	15,719

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	340,205	$	158,050	$	797,482	$	474,150
Operating cash flows for finance leases		5,395		4,033		14,762		4,033
Financing cash flows for finance leases		13,587		9,851		37,166		9,851
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		-		-		-		6,697,896
Finance leases	$	5,486	$	-	$	73,600	$	222,036

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

	September 30, 2020			September 30, 2019
Finance Leases
Finance lease right of use asset	$	315,153		$	233,722
Accumulated depreciation		(66,261	)		(11,686	)
Finance lease right of use asset, net	$	248,892		$	222,036
Weighted-Average Remaining Lease Term
Operating leases	9.1 years			9.9 years
Finance leases	4.0 years			4.8 years
Weighted-Average Discount Rate
Operating leases		8.60	%		8.51	%
Finance leases		8.18	%		7.00	%

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

	September 30, 2020				September 30, 2019
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2019 and 2020	$	342,462	$	19,226	$	158,050	$	13,884
2021		1,209,787		76,904		813,443		55,536
2022		1,057,757		76,904		998,071		55,536
2023		1,026,272		76,904		1,026,044		55,536
2024		1,018,875		49,136		1,011,085		55,536
Thereafter		5,773,888		5,750		6,792,762		27,767
Total lease payments	$	10,429,041	$	304,824	$	10,799,455	$	263,795
Less: imputed interest		3,269,991		46,712		3,837,507		39,924
Total	$	7,159,050	$	258,112	$	6,961,948	$	223,871