COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS (Tables)

3 Months Ended

Mar. 31, 2022

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									Accounts Receivable as of
	March 31, 2022					March 31, 2021				March 31, 2022		December 31, 2021
	Product Sales		% of Product Sales			Product Sales		% of Product Sales
Customer 1	$	11,856,024		64	%	$	*		*	$	5,930,162	$	7,672,845

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

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

	For the three months ended										Accounts Payable as of
	March 31, 2022					March 31, 2021					March 31, 2022		December 31, 2021
	Purchases		% of Purchases			Purchases		% of Purchases
Vendor 1	$	2,323,605		34	%	$	*		*		$	224,500	$	*
Vendor 2		1,088,251		16	%		469,635		11	%		164,983		353,097

In the tables above, an asterisk (*) indicates that indicates that sales, accounts receivable, purchases or accounts payable, as applicable to the tabular column, did not exceed 10% for the period indicated.

Future Minimum Salary Commitment

The following table is a schedule of future minimum salary commitments:

2022	$	883,500
2023		383,000
2024		383,000

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended March 31
	2022		2021
Operating lease expense	$	403,385	$	408,466
Finance lease cost
Amortization of right-of-use assets	$	17,579	$	15,758
Interest on lease liabilities		4,686		4,944
Total finance lease expense	$	22,265	$	20,702

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows.

	Three Months Ended March 31
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	360,878	$	347,871
Operating cash flows for finance leases		4,686		4,944
Financing cash flows for finance leases		16,930		14,282
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		16,234		-

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

	March 31, 2022			March 31, 2021
Finance Leases
Finance lease right of use asset	$	356,997		$	315,153
Accumulated depreciation		(166,471	)		(97,777	)
Finance lease right of use asset, net	$	190,526		$	217,376
Weighted Average Remaining Lease Term
Operating leases	7.4 years			8.6 years
Finance leases	2.8 years			3.5 years
Weighted Average Discount Rate
Operating leases		9.32	%		9.30	%
Finance leases		8.56	%		8.18	%

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows.

	March 31, 2022				March 31, 2021
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2022	$	1,086,370	$	65,913	$	861,916	$	57,678
2023		1,221,017		87,884		1,057,757		76,904
2024		1,018,875		60,116		1,026,272		76,904
2025		1,049,442		16,731		1,018,875		49,136
2026		1,080,925		5,940		1,049,442		5,751
Thereafter		3,643,521		355		4,724,446		-
Total lease payments	$	9,100,150	$	236,939	$	9,738,708	$	266,373
Less: imputed interest		2,450,412		29,781		2,968,703		36,544
Total	$	6,649,738	$	207,158	$	6,770,005	$	229,829