COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS (Tables)

6 Months Ended

Jun. 30, 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										For the six months ended										Accounts Receivable as of
	June 30, 2022					June 30, 2021					June 30, 2022					June 30, 2021					June 30, 2022		December 31, 2021
	Product Sales		% of Product Sales			Product Sales		% of Product Sales			Product Sales		% of Product Sales			Product Sales		% of Product Sales
Customer 1	$	1,947,390		22	%	$	*		*		$	3,431,910	$	13	%	$	*	$	*		$	1,534,560	$	*
Customer 2		1,729,310		20	%		1,014,638		26	%		*		*			1,151,615		15	%		1,066,340		1,433,305
Customer 3		1,633,957		18	%		*		*			*		*			*		*			996,619		*
Customer 4		*		*			*		*			12,339,644		45	%		*		*			399,420		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

For the six months ended

Accounts Payable as of

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

June 30, 2022

December 31, 2021

Purchases

% of Purchases

Purchases

% of Purchases

Purchases

% of Purchases

Purchases

% of Purchases

Vendor 1

*

*

*

*

*

*

*

*

*

1,361,383

Vendor 2

*

*

*

*

1,589,033

15

%

*

*

166,945

353,097

Vendor 3

$

1,317,233

19

%

$

*

*

$

3,640,838

$

35

%

$

*

$

*

$

187,630

$

*

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	$	589,000
2023		383,000
2024		383,000

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
Operating lease expense	$	372,232	$	402,329	$	775,617	$	810,795
Finance lease cost
Amortization of right-of-use assets	$	17,850	$	17,038		35,429		32,796
Interest on lease liabilities		4,480		5,368		9,166		10,312
Total finance lease expense	$	22,330	$	22,406	$	44,595	$	43,108

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows.

	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	361,325	$	348,317	$	722,204	$	696,188
Operating cash flows for finance leases		4,480		5,368		9,166		10,312
Financing cash flows for finance leases		17,491		15,538		34,421		29,820
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		-		25,609		16,234		25,609
Operating leases		717,956		694,668		717,956		694,668

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

	June 30, 2022			June 30, 2021
Finance Leases
Finance lease right of use asset	$	356,997		$	340,762
Accumulated depreciation		(184,321	)		(114,815	)
Finance lease right of use asset, net	$	172,676		$	225,947
Weighted Average Remaining Lease Term
Operating leases	7.0 years			7.9 years
Finance leases	2.4 years			3.4 years
Weighted Average Discount Rate
Operating leases		8.75	%		8.73	%
Finance leases		9.05	%		8.43	%

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows.

	June 30, 2022				June 30, 2021
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2022	$	731,574	$	43,942	$	708,344	$	41,812
2023		1,428,820		87,884		1,447,249		83,624
2024		1,220,150		60,116		1,221,017		83,624
2025		1,049,441		16,731		1,018,875		55,856
2026		1,080,925		5,940		1,049,442		12,471
Thereafter		3,643,521		355		4,724,446		1,680
Total lease payments	$	9,154,431	$	214,968	$	10,169,373	$	279,067
Less: imputed interest		2,371,852		25,301		2,909,688		39,166
Total	$	6,782,579	$	189,667	$	7,259,685	$	239,901