Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.1
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]
As of March 31, 2019,
 the following customers represented more than 10% of total accounts receivable:
 
 
 
March 31,
 
 
 
2019
 
Customer A
 
 
17
%
Customer B
 
 
12
%
For the three months ended March 31, 2019 and 2018, the following customer represented more than 10% of total net revenues:
 
 
 
For the Three Months
Ended March 31,
 
 
 
2019
 
 
2018
 
Customer A
 
 
23
%
 
 
31
%
Disaggregation of Revenue [Table Text Block]
The Company’s primary revenue streams include the sale and/or licensing of consumer goods and packaging materials for innovative products. The Company’s licensing business is not material and has not been separately disaggregated for segment purposes. The disaggregated Company’s revenues for the three months ended March 31, 2019 and 2018 was as follows:
 
 
 
For the Three Months
Ended March 31,
 
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Product sales
 
$
5,637,350
 
 
$
3,431,330
 
Service revenues
 
 
25,597
 
 
 
-
 
Licensing revenues
 
 
75,587
 
 
 
-
 
Total revenues, net
 
$
5,738,534
 
 
$
3,431,330
 
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
For the three months ended March 31, 2019 and 2018, the following geographical regions represented more than 10% of total net revenues:
 
 
 
For the Three Months
Ended March 31,
 
 
 
2019
 
 
2018
 
North America
 
 
77
%
 
 
83
%
Asia-Pacific
 
 
*
 
 
 
13
%
Europe
 
 
19
%
 
 
*
 
 
*
Region
did not represent greater than 10% of total net revenue.
Fair Value, by Balance Sheet Grouping [Table Text Block]
As of March 31, 2019, the book value and estimated fair value of the Company’s level 3 instruments was as follows:
 
 
 
March 31, 2019
 
 
 
Book Value
 
 
Estimated
Fair Value
 
Contingent consideration
 
$
(520,000
)
 
$
(520,000
)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following changes in level 3 instruments for the three months ended March 31, 2019 are presented below:
 
 
 
Contingent
Consideration –
Earnout
 
Balance, December 31, 2018
 
$
(520,000
)
Change in fair value
 
 
-
 
Balance, March 31, 2019
 
$
(520,000
)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
 
 
 
March 31,
 
 
 
2019
 
Selling Agent Warrants
 
 
65,626
 
Shares reserved in exchange for the cancellation of certain non-voting membership interest in Edison Nation Holdings, LLC
 
 
990,000
 
Options
 
 
290,000
 
Convertible shares under notes payable
 
 
285,632
 
Shares to be issued to innovator
 
 
12,500
 
Total
 
 
1,643,758
 
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
The cumulative effect of initially applying the new lease accounting standard as of January 1, 2019 is as follows:
 
 
 
January 1,
2019
 
 
Cumulative
Effect
Adjustment
 
 
January 1,
2019, as
adjusted
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Right of use assets – operating leases
 
$
-
 
 
$
943,997
 
 
$
943,997
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of operating lease liabilities
 
$
-
 
 
$
261,866
 
 
$
261,866
 
Operating lease liabilities, net of current portion
 
$
-
 
 
$
682,131
 
 
$
682,131