☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Nevada
|
|
88-0425691
|
(State or other jurisdiction of incorporation)
|
|
(IRS Employer Identification Number)
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
CEMI
|
|
The NASDAQ Stock Market LLC
|
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
|
Non-accelerated filer ☐
|
Smaller reporting company ☒
|
|
Emerging growth company ☐
|
|
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Page
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3
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Part I. FINANCIAL INFORMATION:
|
|
|
|
|
|
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Item 1. Financial Statements:
|
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|
|
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4
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5
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6
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7
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9
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10
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27
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43
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Part II. OTHER INFORMATION:
|
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44
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45
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52
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53
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Item 1. |
FINANCIAL STATEMENTS
|
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||||||||||
June 30, 2020
|
June 30, 2019
|
June 30, 2020
|
June 30, 2019
|
|||||||||||||
REVENUES:
|
||||||||||||||||
Net product sales
|
$
|
3,791,574
|
$
|
8,785,041
|
$
|
9,508,166
|
$
|
15,409,326
|
||||||||
R&D and grant revenue
|
1,193,973
|
854,264
|
2,101,660
|
2,556,053
|
||||||||||||
License and royalty revenue
|
125,625
|
248,831
|
360,929
|
465,022
|
||||||||||||
TOTAL REVENUES
|
5,111,172
|
9,888,136
|
11,970,755
|
18,430,401
|
||||||||||||
COSTS AND EXPENSES:
|
||||||||||||||||
Cost of product sales
|
5,670,737
|
6,989,975
|
10,045,179
|
12,001,611
|
||||||||||||
Research and development expenses
|
1,922,306
|
2,101,020
|
3,881,159
|
4,318,652
|
||||||||||||
Selling, general and administrative expenses
|
4,397,593
|
4,096,942
|
8,554,234
|
8,110,013
|
||||||||||||
Severance, restructuring and other related costs
|
387,540
|
-
|
1,110,658
|
-
|
||||||||||||
Acquisition costs
|
-
|
-
|
63,497
|
395,612
|
||||||||||||
12,378,176
|
13,187,937
|
23,654,727
|
24,825,888
|
|||||||||||||
LOSS FROM OPERATIONS
|
(7,267,004
|
)
|
(3,299,801
|
)
|
(11,683,972
|
)
|
(6,395,487
|
)
|
||||||||
OTHER INCOME:
|
||||||||||||||||
Interest (expense) income
|
(712,052
|
)
|
5,918
|
(1,374,192
|
)
|
12,602
|
||||||||||
LOSS BEFORE INCOME TAXES
|
(7,979,056
|
)
|
(3,293,883
|
)
|
(13,058,164
|
)
|
(6,382,885
|
)
|
||||||||
Income tax benefit
|
(135,259
|
)
|
(107,203
|
)
|
(214,818
|
)
|
(379,672
|
)
|
||||||||
NET LOSS
|
$
|
(7,843,797
|
)
|
$
|
(3,186,680
|
)
|
$
|
(12,843,346
|
)
|
$
|
(6,003,213
|
)
|
||||
Basic loss per share
|
$
|
(0.42
|
)
|
$
|
(0.19
|
)
|
$
|
(0.71
|
)
|
$
|
(0.36
|
)
|
||||
Diluted loss per share
|
$
|
(0.42
|
)
|
$
|
(0.19
|
)
|
$
|
(0.71
|
)
|
$
|
(0.36
|
)
|
||||
Weighted average number of shares outstanding, basic
|
18,868,144
|
16,914,171
|
18,032,723
|
16,906,936
|
||||||||||||
Weighted average number of shares outstanding, diluted
|
18,868,144
|
16,914,171
|
18,032,723
|
16,906,936
|
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||||||||||
|
June 30, 2020
|
June 30, 2019
|
June 30, 2020
|
June 30, 2019
|
||||||||||||
Net loss
|
$
|
(7,843,797
|
)
|
$
|
(3,186,680
|
)
|
$
|
(12,843,346
|
)
|
$
|
(6,003,213
|
)
|
||||
Other comprehensive loss:
|
||||||||||||||||
Foreign currency translation adjustments
|
(175,447
|
)
|
(313,225
|
)
|
(1,038,741
|
)
|
(111,039
|
)
|
||||||||
Comprehensive loss
|
$
|
(8,019,244
|
)
|
$
|
(3,499,905
|
)
|
$
|
(13,882,087
|
)
|
$
|
(6,114,252
|
)
|
|
For The Six Months Ended June 30, 2020
|
|||||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-in-Capital |
Treasury
Stock
|
Accumulated
Deficit
|
Accumulated Other
Comprehensive
Income
|
Total
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||
Balance at December 31, 2019
|
17,733,617
|
$
|
177,335
|
$
|
95,433,077
|
-
|
$
|
-
|
$
|
(71,585,003
|
)
|
$
|
9,844
|
$
|
24,035,253
|
|||||||||||||||||
Common Stock:
|
||||||||||||||||||||||||||||||||
Restricted stock issued
|
34,249
|
343
|
117,956
|
-
|
-
|
-
|
-
|
118,299
|
||||||||||||||||||||||||
Restricted stock compensation, net
|
(440,631
|
)
|
(4,406
|
)
|
(292,495
|
)
|
-
|
-
|
-
|
-
|
(296,901
|
)
|
||||||||||||||||||||
Shares tendered for withholding taxes
|
-
|
-
|
145,056
|
(31,486
|
)
|
(145,056
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||
Options:
|
||||||||||||||||||||||||||||||||
Stock option compensation
|
-
|
-
|
139,449
|
-
|
-
|
-
|
-
|
139,449
|
||||||||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(863,294
|
)
|
(863,294
|
)
|
||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(4,999,549
|
)
|
-
|
(4,999,549
|
)
|
||||||||||||||||||||||
Balance at March 31, 2020
|
17,327,235
|
$
|
173,272
|
$
|
95,543,043
|
(31,486
|
)
|
$
|
(145,056
|
)
|
$
|
(76,584,552
|
)
|
$
|
(853,450
|
)
|
$
|
18,133,257
|
||||||||||||||
Common Stock:
|
||||||||||||||||||||||||||||||||
Issuance of stock, net
|
2,619,593
|
26,196
|
28,410,545
|
-
|
-
|
-
|
-
|
28,436,741
|
||||||||||||||||||||||||
Restricted stock issued
|
18,858
|
189
|
(189
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Restricted stock compensation, net
|
(29,543
|
)
|
(296
|
)
|
262,405
|
-
|
-
|
-
|
-
|
262,109
|
||||||||||||||||||||||
Shares tendered for withholding taxes
|
-
|
-
|
(192,161
|
)
|
(1,804
|
)
|
(5,863
|
)
|
-
|
-
|
(198,024
|
)
|
||||||||||||||||||||
Options:
|
||||||||||||||||||||||||||||||||
Exercised
|
5,528
|
55
|
(55
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Stock option compensation
|
-
|
-
|
122,115
|
-
|
-
|
-
|
-
|
122,115
|
||||||||||||||||||||||||
Warrants exercised
|
253,161
|
2,532
|
(2,532
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(175,447
|
)
|
(175,447
|
)
|
||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(7,843,797
|
)
|
-
|
(7,843,797
|
)
|
||||||||||||||||||||||
Balance at June 30, 2020
|
20,194,832
|
$
|
201,948
|
$
|
124,143,171
|
(33,290
|
)
|
$
|
(150,919
|
)
|
$
|
(84,428,349
|
)
|
$
|
(1,028,897
|
)
|
$
|
38,736,954
|
|
For The Six Months Ended June 30, 2019
|
|||||||||||||||||||||||
Common Stock
|
Additional
Paid-in-Capital |
Accumulated
Deficit
|
Accumulated Other
Comprehensive Income
|
Total
|
||||||||||||||||||||
Shares
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
|||||||||||||||||||
Balance at December 31, 2018
|
17,166,459
|
$
|
171,664
|
$
|
90,953,788
|
$
|
(57,909,874
|
)
|
$
|
112,196
|
$
|
33,327,774
|
||||||||||||
Common Stock:
|
||||||||||||||||||||||||
Restricted stock compensation
|
-
|
-
|
281,248
|
-
|
-
|
281,248
|
||||||||||||||||||
Options:
|
||||||||||||||||||||||||
Stock option compensation
|
-
|
-
|
66,259
|
-
|
-
|
66,259
|
||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
-
|
202,186
|
202,186
|
||||||||||||||||||
Net loss
|
-
|
-
|
-
|
(2,816,533
|
)
|
-
|
(2,816,533
|
)
|
||||||||||||||||
Balance at March 31, 2019
|
17,166,459
|
$
|
171,664
|
$
|
91,301,295
|
$
|
(60,726,407
|
)
|
$
|
314,382
|
$
|
31,060,934
|
||||||||||||
Common Stock:
|
||||||||||||||||||||||||
Restricted stock issued
|
375,000
|
3,750
|
(3,750
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Restricted stock compensation
|
-
|
-
|
307,774
|
-
|
-
|
307,774
|
||||||||||||||||||
Options:
|
||||||||||||||||||||||||
Exercised
|
24,075
|
241
|
(241
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Stock option compensation
|
-
|
-
|
69,097
|
-
|
-
|
69,097
|
||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
-
|
(313,225
|
)
|
(313,225
|
)
|
||||||||||||||||
Net loss
|
-
|
-
|
-
|
(3,186,680
|
)
|
-
|
(3,186,680
|
)
|
||||||||||||||||
Balance at June 30, 2019
|
17,565,534
|
$
|
175,655
|
$
|
91,674,175
|
$
|
(63,913,087
|
)
|
$
|
1,157
|
$
|
27,937,900
|
(a) |
Basis of Presentation:
|
(b) |
Use of Estimates:
|
(c) |
Fair Value of Financial Instruments:
|
Level 1: |
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
Level 2: |
Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and,
|
Level 3: |
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
|
(d) |
Cash and Cash Equivalents:
|
(e) |
Concentrations of Credit Risk:
|
(f) |
Fixed Assets:
|
(g) |
License Agreements:
|
(h) |
Valuation of Long-Lived Assets and Intangible Assets:
|
(i) |
Revenue Recognition:
|
|
For the Three Months Ended
|
|||||||||||||||||||||||
June 30, 2020
|
June 30, 2019
|
|||||||||||||||||||||||
Exchange
Transactions
|
Non-Exchange
Transactions
|
Total
|
Exchange
Transactions
|
Non-Exchange
Transactions
|
Total
|
|||||||||||||||||||
Net product sales
|
$
|
3,791,574
|
$
|
-
|
$
|
3,791,574
|
$
|
8,785,041
|
$
|
-
|
$
|
8,785,041
|
||||||||||||
R&D and grant revenue
|
1,193,973
|
-
|
1,193,973
|
619,139
|
235,125
|
854,264
|
||||||||||||||||||
License and royalty revenue
|
125,625
|
-
|
125,625
|
248,831
|
-
|
248,831
|
||||||||||||||||||
$
|
5,111,172
|
$
|
-
|
$
|
5,111,172
|
$
|
9,653,011
|
$
|
235,125
|
$
|
9,888,136
|
|
For the Six Months Ended
|
|||||||||||||||||||||||
June 30, 2020
|
June 30, 2019
|
|||||||||||||||||||||||
Exchange
Transactions
|
Non-Exchange
Transactions
|
Total
|
Exchange
Transactions
|
Non-Exchange
Transactions
|
Total
|
|||||||||||||||||||
Net product sales
|
$
|
9,508,167
|
$
|
-
|
$
|
9,508,166
|
$
|
15,409,326
|
$
|
-
|
$
|
15,409,326
|
||||||||||||
R&D and grant revenue
|
2,101,660
|
-
|
2,101,660
|
1,392,204
|
1,163,849
|
2,556,053
|
||||||||||||||||||
License and royalty revenue
|
360,928
|
-
|
360,929
|
465,022
|
-
|
465,022
|
||||||||||||||||||
$
|
11,970,755
|
$
|
-
|
$
|
11,970,755
|
$
|
17,266,552
|
$
|
1,163,849
|
$
|
18,430,401
|
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||||||||||
|
June 30, 2020
|
June 30, 2019
|
June 30, 2020
|
June 30, 2019
|
||||||||||||
Africa
|
$
|
552,570
|
$
|
2,342,740
|
$
|
1,436,085
|
$
|
4,759,040
|
||||||||
Asia
|
119,319
|
119,548
|
482,607
|
240,646
|
||||||||||||
Europe & Middle East
|
1,635,016
|
1,107,558
|
3,811,172
|
3,250,779
|
||||||||||||
Latin America
|
780,567
|
4,897,297
|
2,896,963
|
6,177,770
|
||||||||||||
United States
|
2,023,699
|
1,420,993
|
3,343,928
|
4,002,166
|
||||||||||||
$
|
5,111,172
|
$
|
9,888,136
|
$
|
11,970,755
|
$
|
18,430,401
|
(j) |
Inventories:
|
|
June 30, 2020
|
December 31, 2019
|
||||||
Raw materials
|
$
|
5,136,583
|
$
|
2,901,319
|
||||
Work in process
|
2,609,407
|
793,343
|
||||||
Finished goods
|
6,385,550
|
5,903,368
|
||||||
|
$
|
14,131,540
|
$
|
9,598,030
|
(k) |
Loss Per Share:
|
(l) |
Research and Development:
|
(m) |
Equity Plans:
|
(n) |
Stock-Based Compensation:
|
|
For The Three Months Ended
June 30,
|
For The Six Months Ended
June 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Cost of product sales
|
$
|
-
|
$
|
2,300
|
$
|
6,300
|
$
|
5,800
|
||||||||
Research and development expenses
|
90,924
|
56,300
|
154,737
|
116,100
|
||||||||||||
Selling, general and administrative expenses
|
293,301
|
318,300
|
610,089
|
602,478
|
||||||||||||
Severance and related costs
|
-
|
-
|
(423,984
|
)
|
-
|
|||||||||||
$
|
384,225
|
$
|
376,900
|
$
|
347,142
|
$
|
724,378
|
|
For the Three and
Six Months Ended June 30, 2020
|
|||
Expected term (in years)
|
6.3
|
|||
Expected volatility
|
45.37
|
%
|
||
Expected dividend yield
|
0.00
|
%
|
||
Risk-free interest rate
|
1.33
|
%
|
Stock Options
|
Number of
Shares
|
Weighted
Average
Exercise Price
per Share
|
Weighted
Average
Remaining
Contract
Term
|
Aggregate
Intrinsic
Value
|
||||||
Outstanding at December 31, 2019
|
642,625
|
$
|
5.79
|
3 years
|
$
|
285,925
|
||||
Granted
|
702,499
|
2.50
|
||||||||
Exercised
|
(36,000)
|
6.30
|
95,976
|
|||||||
Forfeited/expired/cancelled
|
(275,000)
|
3.59
|
||||||||
Outstanding at June 30, 2020
|
1,034,124
|
$
|
4.12
|
6 years
|
$
|
598,628
|
||||
Exercisable at June 30, 2020
|
224,333
|
$
|
7.24
|
3 years
|
$
|
-
|
|
Stock Options Outstanding
|
Stock Options Exercisable
|
||||||||||||||||
Range of Exercise Prices
|
Number of
Shares
|
Average
Remaining
Contract Term
(Years)
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Number of
Shares
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
|||||||||||
$1 to $2.79999
|
672,616
|
6.71
|
$
|
2.36
|
$
|
598,628
|
-
|
$
|
-
|
$
|
-
|
|||||||
$2.8 to $4.59999
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
$4.6 to $6.39999
|
106,758
|
2.94
|
5.78
|
-
|
58,125
|
5.77
|
-
|
|||||||||||
$6.4 to $8.19999
|
207,875
|
3.56
|
7.31
|
-
|
147,458
|
7.28
|
-
|
|||||||||||
$8.2 to $12
|
46,875
|
3.10
|
11.45
|
-
|
18,750
|
11.45
|
-
|
|||||||||||
Total
|
1,034,124
|
5.52
|
$
|
4.12
|
$
|
598,628
|
224,333
|
$
|
7.24
|
$
|
-
|
|
Number of
Shares & Units
|
Weighted-
Average
Grant Date
Fair Value
|
||||||
Outstanding at December 31, 2019
|
545,986
|
$
|
7.47
|
|||||
Granted
|
610,301
|
2.57
|
||||||
Vested
|
(66,728
|
)
|
3.62
|
|||||
Forfeited/expired/cancelled
|
(470,174
|
)
|
6.58
|
|||||
Outstanding at June 30, 2020
|
619,385
|
$
|
3.32
|
(o) |
Geographic Information and Economic Dependency
|
|
For The Three Months Ended
June 30,
|
For The Six Months Ended
June 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Africa
|
$
|
552,570
|
$
|
2,342,740
|
$
|
1,436,085
|
$
|
4,759,040
|
||||||||
Asia
|
119,319
|
119,548
|
482,607
|
240,646
|
||||||||||||
Europe & Middle East
|
734,073
|
741,641
|
1,909,162
|
1,919,666
|
||||||||||||
Latin America
|
780,567
|
4,897,297
|
2,896,963
|
6,177,770
|
||||||||||||
United States
|
1,605,045
|
683,815
|
2,783,349
|
2,312,204
|
||||||||||||
$
|
3,791,574
|
$
|
8,785,041
|
$
|
9,508,166
|
$
|
15,409,326
|
|
June 30, 2020
|
December 31, 2019
|
||||||
Asia
|
$
|
357,921
|
$
|
393,299
|
||||
Europe & Middle East
|
171,767
|
165,029
|
||||||
Latin America
|
43,701
|
60,527
|
||||||
United States
|
7,132,501
|
5,314,714
|
||||||
|
$
|
7,705,890
|
$
|
5,933,569
|
(p) |
Accounts Payable and Accrued Liabilities:
|
|
June 30, 2020
|
December 31, 2019
|
||||||
Accounts payable – suppliers
|
$
|
6,588,598
|
$
|
3,144,098
|
||||
Accrued commissions and royalties
|
486,998
|
931,760
|
||||||
Accrued payroll
|
188,858
|
231,753
|
||||||
Accrued vacation
|
547,307
|
410,199
|
||||||
Accrued bonuses
|
350,479
|
215,000
|
||||||
Accrued severance
|
260,481
|
-
|
||||||
Accrued expenses – other
|
868,166
|
593,433
|
||||||
TOTAL
|
$
|
9,290,887
|
$
|
5,526,243
|
(q) |
Goodwill, Long-Lived Assets and Intangible Assets:
|
Beginning balance at December 31, 2019
|
$
|
5,872,690
|
||
Change in foreign currency exchange rate
|
(338,066
|
)
|
||
Balance at June 30, 2020
|
$
|
5,534,624
|
|
June 30, 2020
|
December 31, 2019
|
||||||||||||||||||
Weighted
Average
Remaining
Useful Life
|
Cost
|
Accumulated
Amortization
|
Net Book
Value
|
Cost
|
Accumulated
Amortization
|
Net Book
Value
|
||||||||||||||
Intellectual property
|
6
|
$
|
1,470,556
|
$
|
366,353
|
$
|
1,104,203
|
$
|
1,418,681
|
$
|
299,232
|
$
|
1,119,449
|
|||||||
Developed technology
|
6
|
1,924,990
|
400,304
|
1,524,686
|
1,922,682
|
266,550
|
1,656,132
|
|||||||||||||
Customer contracts/relationships
|
7
|
1,232,474
|
327,525
|
904,949
|
1,325,521
|
270,902
|
1,054,619
|
|||||||||||||
Trade names
|
8
|
107,796
|
36,440
|
71,356
|
114,946
|
30,794
|
84,152
|
|||||||||||||
$
|
4,735,816
|
$
|
1,130,622
|
$
|
3,605,194
|
$
|
4,781,830
|
$
|
867,478
|
$
|
3,914,352
|
(r) |
Taxes:
|
(s) |
Allowance for Doubtful Accounts:
|
(t) |
Foreign Currency Translation:
|
(u) |
Acquisition Costs:
|
(v) |
Recently Issued Accounting Standards:
|
(w) |
Severance, restructuring and other related costs:
|
● |
$150,000 in cash and 153,707 shares of common stock.
|
● |
Issuance of 316,456 shares of common stock to the founder and former chief executive officer of Orangelife, based on the transfer and approval of registration of certain of the Company’s product in Brazil prior to November 25, 2022. All of the shares may be deliverable in the event of change in control of Chembio. The number of shares issued was subject to adjustments based upon Orangelife’s working capital at closing. The fair value of the shares on the date of the acquisition was recorded in equity and was valued at $1.2 million.
|
|
Amount
|
|||
Net current assets
|
$
|
320,293
|
||
Property, plant and equipment and other assets
|
226,035
|
|||
Inventory
|
289,205
|
|||
Goodwill
|
986,058
|
|||
Deferred tax liability
|
(50,000
|
)
|
||
Other intangible assets (estimated useful life):
|
||||
Trade name (0.5 years)
|
5,000
|
|||
Customer contracts / relationships (5 years)
|
195,000
|
|||
Total consideration
|
$
|
1,971,591
|
|
Unaudited
Pro Forma
December 31, 2019
|
|||
Total revenues
|
$
|
35,157,248
|
||
Net loss
|
$
|
(13,654,001
|
)
|
|
Net loss per common share
|
$
|
(0.80
|
)
|
|
Diluted net loss per common share
|
$
|
(0.80
|
)
|
(a) |
Common Stock
|
(b) |
Preferred Stock
|
(c) |
Treasury Stock
|
(d) |
Options, Restricted Stock and Restricted Stock Units
|
(a) |
Concentrations:
|
|
For The Three Months Ended
|
For The Six Months Ended
|
Accounts Receivable as of
|
|||||||||||||||||||||||||||||||||||||
June 30, 2020
|
June 30, 2019
|
June 30, 2020
|
June 30, 2019
|
June 30, 2020
|
Dec. 31, 2019
|
|||||||||||||||||||||||||||||||||||
Sales
|
% of Sales
|
Sales
|
% of Sales
|
Sales
|
% of Sales
|
Sales
|
% of Sales
|
|||||||||||||||||||||||||||||||||
Customer 1
|
$
|
657,304
|
17.0
|
%
|
$
|
4,573,434
|
54
|
%
|
$
|
2,297,376
|
24.0
|
%
|
$
|
5,615,932
|
38
|
%
|
$
|
806,196
|
$
|
941,962
|
||||||||||||||||||||
Customer 2
|
$
|
-
|
0.0
|
%
|
$
|
1,627,075
|
19
|
%
|
$
|
-
|
0.0
|
%
|
$
|
3,460,666
|
23
|
%
|
$
|
-
|
$
|
-
|
(b) |
Governmental Regulation:
|
(c) |
Employment Contracts:
|
2020
|
$
|
382,500
|
||
2021
|
765,000
|
|||
2022
|
400,000
|
(d) |
Pension Plan:
|
(e) |
Leases:
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Operating lease expense
|
$
|
388,951
|
$
|
400,658
|
$
|
852,808
|
$
|
682,261
|
||||||||
Finance lease cost
|
||||||||||||||||
Amortization of right-of-use assets
|
$
|
14,687
|
$
|
-
|
$
|
27,085
|
$
|
-
|
||||||||
Interest on lease liabilities
|
5,156
|
-
|
9,367
|
-
|
||||||||||||
Total finance lease expense
|
$
|
19,843
|
$
|
-
|
$
|
36,452
|
$
|
-
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||||||||||
Operating cash flows for operating leases
|
$
|
292,058
|
$
|
147,107
|
$
|
457,277
|
$
|
305,157
|
||||||||
Operating cash flows for finance leases
|
5,156
|
-
|
9,367
|
-
|
||||||||||||
Financing cash flows for finance leases
|
12,666
|
-
|
23,578
|
-
|
||||||||||||
Right-of-use assets obtained in exchange for lease obligations:
|
||||||||||||||||
Operating leases
|
-
|
-
|
-
|
6,949,611
|
||||||||||||
Finance leases
|
$
|
47,499
|
$
|
233,722
|
$
|
75,852
|
$
|
233,722
|
|
June 30, 2020
|
June 30, 2019
|
||||||
Finance Leases
|
||||||||
Finance lease right of use asset
|
$
|
309,574
|
$
|
233,722
|
||||
Accumulated depreciation
|
(50,690
|
)
|
-
|
|||||
Finance lease right of use asset, net
|
$
|
258,884
|
233,722
|
|||||
|
||||||||
Weighted-Average Remaining Lease Term
|
||||||||
Operating leases
|
9 years
|
10 years
|
||||||
Finance leases
|
4 years
|
5 years
|
||||||
|
||||||||
Weighted-Average Discount Rate
|
||||||||
Operating leases
|
8.62
|
%
|
8.52
|
%
|
||||
Finance leases
|
9.73
|
%
|
7.0
|
%
|
|
June 30, 2020
|
June 30, 2019
|
||||||||||||||
|
Operating
Leases
|
Finance
Leases
|
Operating
Leases
|
Finance
Leases
|
||||||||||||
2019 and 2020
|
$
|
682,667
|
$
|
37,720
|
$
|
1,129,543
|
$
|
27,768
|
||||||||
2021
|
1,209,787
|
75,440
|
998,071
|
55,536
|
||||||||||||
2022
|
1,057,757
|
75,440
|
1,026,044
|
55,536
|
||||||||||||
2023
|
1,026,272
|
75,440
|
1,011,085
|
55,536
|
||||||||||||
2024
|
1,018,875
|
47,672
|
-
|
55,536
|
||||||||||||
Thereafter
|
5,773,887
|
4,774
|
6,792,767
|
27,767
|
||||||||||||
Total lease payments
|
$
|
10,769,245
|
$
|
316,486
|
$
|
10,957,510
|
$
|
277,679
|
||||||||
Less: imputed interest
|
3,427,535
|
50,366
|
< |