Investments

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments

10. Investments

(a) The Company has a 50% ownership interest in ENP Peru Investments LLC (“ENP Peru”), which was acquired in fiscal 2016. ENP Peru is located in Illinois and leases warehouse space. The Company accounts for this investment using the equity method of accounting. A summary of the Company’s investment follows:

Balance, December 31, 2017	$	13,414
Acquisition of additional units		25,000
Return of equity		(25,000	)
Loss in equity method investment		(26,306	)
Balance, December 31, 2018 and March 31, 2019	$	12,108

Summarized profit and loss information related to the equity accounted investment is as follows:

	2018
Net sales	$	300,210
Net income	$	17,435

(b) The Company has a 24% ownership interest in ENP Realty LLC (“ENP Realty”), which was acquired in fiscal 2018. ENP Realty is located in Illinois and leases warehouse space. The Company accounts for this investment using the equity method of accounting. A summary of the Company’s investment follows:

Balance, January 1, 2018	$	-
Acquisition		56,590
Gain in equity method investment		7,659
Balance, December 31, 2018 and March 31, 2019	$	64,249

Summarized profit and loss information related to the equity accounted investment is as follows:

	2018
Net sales	$	78,870
Net income	$	31,913

(c) In December 2018 the Company invested $200,000 in Applied Holding Corp. (“Applied”). Applied is a captive insurance company and the Company received a promissory note for its investment which becomes due in 2021 but may be extended with notice for a maximum of two years.

(d) In December 2018 the Company invested $500,000 in Trio Opportunity Corp. (“Trio”), a privately held entity. Trio is a real estate investment vehicle and the Company received 50,000 non-voting Class B shares at $10.00/share. In accordance with ASC 321-10-35, the Company has elected to account for this investment at cost less impairment. A summary of the Company’s investment follows:

Balance, January 1, 2018	$	-
Acquisition		500,000
Impairment		-
Balance, December 31, 2018 and March 31, 2019	$	500,000

(e) In January 2019, the company invested $1,001,000 in a Florida based LLC that is engaged in international sales of fertilizer additives. The Company accounts for this investment using the equity method of accounting. According to the operating agreement, the Company has a 50% interest in the profit and loss of the LLC but does not have control. A summary of the Company’s investment follows:

Balance, January 1, 2019	$	-
Acquisition		1,001,000
Gain in equity method investment		224,402
Balance, March 31, 2019	$	1,225,402

Further to the original investment amount, the Company has placed $1,000,000 in trust, to be released upon the LLC reaching a milestone related to earnings before interest, taxes and depreciation (“EBITDA”) targets. This amount is accounted for as restricted cash on the balance sheet. Further payments of $1,000,000 and $500,000 may become due should other subsequent milestones be reached. Summarized profit and loss information related to the equity accounted investment is as follows:

	2019
Net sales	$	3,257,350
Gross profit		1,010,781
Net income	$	448,804