Business Segments (Tables)

9 Months Ended

Sep. 30, 2017

Business Segmentation

Three months ended					Core Standards
September 30, 2017	Ingredients		Consumer Products		and Contract Services		Corporate
	segment		segment		segment		and other			Total
Net sales	$	2,459,905	$	2,647,300	$	977,485				$	6,084,690
Cost of sales		1,384,221		1,095,128		689,972		—			3,169,321
Gross profit		1,075,684		1,552,172		287,513		—			2,915,369
Operating expenses:
Sales and marketing		390,568		548,827		163,762		—			1,103,157
Research and development		558,677		481,884		—		—			1,040,561
General and administrative		—		—		—		3,948,435			3,948,435
Operating expenses		949,245		1,030,711		163,762		3,948,435			6,092,153
		—		—
Operating income (loss)	$	126,439	$	521,461	$	123,751	$	(3,948,435	)	$	(3,176,784	)

Three months ended October 1, 2016	Ingredients		Consumer Products		Core Standards and Contract Services		Corporate
	segment		segment		segment		and other			Total
Net sales	$	2,663,095	$	—	$	1,274,191	$	—		$	3,937,286
Cost of sales		1,287,421		—		786,904		—			2,074,325
Gross profit		1,375,674		—		487,287		—			1,862,961
Operating expenses:
Sales and marketing		199,130		—		87,811		—			286,941
Research and development		760,299		—		12,500		—			772,799
General and administrative		—		—		—		1,727,383			1,727,383
Operating expenses		959,429		—		100,311		1,727,383			2,787,123
Operating income (loss)	$	416,245	$	—	$	386,976	$	(1,727,383	)	$	(924,162	)

Nine months ended					Core Standards
September 30, 2017	Ingredients		Consumer Products		and Contract Services		Corporate
	segment		segment		segment		and other			Total
Net sales	$	7,393,389	$	2,802,875	$	3,474,382	$	—		$	13,670,646
Cost of sales		3,615,097		1,135,864		2,277,379		—			7,028,340
Gross profit		3,778,292		1,667,011		1,197,003		—			6,642,306
Operating expenses:
Sales and marketing		959,761		738,647		359,770		—			2,058,178
Research and development		2,022,151		532,562		—		—			2,554,713
General and administrative		—		—		—		8,882,821			8,882,821
Other		745,773		—		—		—			745,773
Operating expenses		3,727,685		1,271,209		359,770		8,882,821			14,241,485
Operating income (loss)	$	50,607	$	395,802	$	837,233	$	(8,882,821	)	$	(7,599,179	)

Nine months ended					Core Standards
October 1, 2016	Ingredients		Consumer Products		and Contract Services		Corporate
	segment		segment		segment		and other			Total
Net sales	$	13,505,470	$	—	$	3,706,395	$	—		$	17,211,865
Cost of sales		6,420,972		—		2,410,428		—			8,831,400
Gross profit		7,084,498		—		1,295,967		—			8,380,465
Operating expenses:
Sales and marketing		930,573		—		259,440		—			1,190,013
Research and development		1,961,097		—		27,500		—			1,988,597
General and administrative		—		—		—		5,935,139			5,935,139
Operating expenses		2,891,670		—		286,940		5,935,139			9,113,749
Operating income (loss)	$	4,192,828	$	—	$	1,009,027	$	(5,935,139	)	$	(733,284	)

					Core Standards
At September 30, 2017	Ingredients		Consumer Products		and Contract Services		Corporate
	segment		segment		segment		and other		Total
Total assets	$	9,761,568	$	4,012,200	$	2,589,857	$	25,437,887	$	41,801,512

					Core Standards
At December 31, 2017	Ingredients		Consumer Products		and Contract Services		Corporate
	segment		segment		segment		and other		Total
Total assets	$	13,257,289	$	-	$	2,547,427	$	3,947,352	$	19,752,068

Sales Revenue, Net [Member]

Percentage of Sales Table

Disclosure of major customers

Major customers who accounted for more than 10% of the Company’s total sales were as follows:

Three months ended

Nine months ended

Major Customers

Sep. 30, 2017

Oct. 1, 2016

Sep. 30, 2017

Oct. 1, 2016

Customer G - Related Party

37.8

%

*

16.8

%

*

Customer D

12.1

%

12.3

%

*

*

Customer C

*

*

*

24.5

%

* Represents less than 10%.

Accounts Receivable [Member]

Percentage of Sales Table

Disclosure of major customers

Major customers who accounted for more than 10% of the Company’s total trade receivables were as follows:

	Percentage of the Company's Total Trade Receivables
Major Customers	At September 30, 2017			At December 31, 2016
Customer C		45.4	%		45.8	%
Customer G - Related Party		30.3	%		*
Customer D		*			10.2	%
* Represents less than 10%.