Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.2
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2019
Summary of Significant Accounting Policies  
Schedule of Accounts Receivable

As of June 30, 2019, the following customers represented more than 10% of total accounts receivable:

 

 

 

 

 

 

    

June 30, 

 

 

 

2019

 

Customer A

 

18

%

Customer B

 

17

%

 


For the three and six months ended June 30, 2019 and 2018, the following customer represented more than 10% of total net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30,

 

June 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

Customer :

 

 

 

 

 

 

 

 

 

Customer A

 

27

%  

23

%  

25

%  

25

%

Customer B

 

*

 

*

 

*

 

11

%

 

Schedule of Disaggregation of Revenue

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 and six months ended June 30, 2019 and 2018 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months

 

 

June 30,

 

Ended June 30, 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

5,845,651

 

$

4,387,197

 

$

11,483,001

 

$

7,818,527

Service

 

 

22,714

 

 

 —

 

 

48,311

 

 

 —

Licensing

 

 

99,890

 

 

 —

 

 

175,477

 

 

 —

Total revenues, net

 

$

5,968,255

 

$

4,387,197

 

$

11,706,789

 

$

7,818,527

 

Schedule of Disaggregation of net revenues

For the three and six months ended June 30, 2019 and 2018, the following geographical regions represented more than 10% of total net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30,

 

June 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

Region:

 

 

 

 

 

 

 

 

 

North America

 

73

%  

82

%  

75

%  

80

%

Asia-Pacific

 

*

 

15

%  

*

 

17

%

Europe

 

18

%  

*

 

18

%  

*

 


*Region did not represent greater than 10% of total net revenue.

Schedule of Book Value and Estimated Fair

As of June 30, 2019, the book value and estimated fair value of the Company’s level 3 instruments was as follows:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

 

 

 

 

Estimated

 

    

Book Value

    

Fair Value

Contingent consideration

 

$

(520,000)

 

$

(520,000)

 

Schedule of Fair Value of Financial Level 3 Instruments

The following changes in level 3 instruments for the three months ended June 30, 2019 are presented below:

 

 

 

 

 

 

 

Contingent

 

 

 Consideration - 

 

    

Earnout

Balance, December 31, 2018

 

$

(520,000)

Change in fair value

 

 

 —

Balance, June 30, 2019

 

$

(520,000)

 

The following changes in level 3 instruments for the six months ended June 30, 2019 are presented below:

 

 

 

 

 

 

    

Contingent

 

 

Consideration –

 

 

Earnout

Balance, December 31, 2018

 

$

(520,000)

Change in fair value

 

 

 —

Balance, June 30, 2019

 

$

(520,000)

 

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

 

 

 

 

    

June 30, 

 

 

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 note holders

 

20,000

Total

 

1,651,258

 

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of initially applying the new lease accounting standard as of January 1, 2019 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative

 

January 1,

 

 

January 1, 

 

Effect

 

2019, as

 

    

2019

    

Adjustment

    

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