Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.3
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2019
Summary of Significant Accounting Policies  
Schedule of Accounts Receivable

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

 

 

 

 

 

 

    

September 30, 

 

 

 

2019

 

Customer A

 

15

%

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

September 30,

 

September 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

Customer :

 

 

 

 

 

 

 

 

 

Customer A

 

11

%  

23

%  

22

%  

10

%

Customer B

 

*

 

*

 

*

 

17

%

 

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

Schedule of Disaggregation of Revenue

The Company’s primary revenue streams include the sale and/or licensing of consumer goods and packaging materials. 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 nine months ended September 30, 2019 and 2018 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months

 

 

September 30,

 

Ended September 30, 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

3,499,116

 

$

4,858,055

 

$

14,982,117

 

$

12,676,582

Service

 

 

19,442

 

 

 —

 

 

67,753

 

 

 —

Licensing

 

 

14,087

 

 

82,133

 

 

189,564

 

 

82,133

Total revenues, net

 

$

3,532,645

 

$

4,940,188

 

$

15,239,434

 

$

12,758,715

 

Schedule of Disaggregation of net revenues

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

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

September 30,

 

September 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

Region:

 

 

 

 

 

 

 

 

 

North America

 

86

%  

84

%  

78

%  

81

%

Asia-Pacific

 

*

 

11

%  

*

 

15

%

Europe

 

*

 

*

 

15

%  

*

 


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

Schedule of Book Value and Estimated Fair

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

 

 

 

 

 

 

 

 

 

 

 

September 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 September 30, 2019 are presented below:

 

 

 

 

 

 

 

Contingent

 

 

 Consideration - 

 

    

Earnout

Balance, July 1, 2019

 

$

(520,000)

Change in fair value

 

 

 —

Balance, September 30, 2019

 

$

(520,000)

 

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

 

 

 

 

 

 

    

Contingent

 

 

Consideration –

 

 

Earnout

Balance, December 31, 2018

 

$

(520,000)

Change in fair value

 

 

 —

Balance, September 30, 2019

 

$

(520,000)

 

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

 

 

 

 

    

September 30, 

 

 

2019

Selling Agent Warrants

 

89,992

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

 

 

 

 

 

 

Total

 

1,655,624

 

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