Note 3 - Related Parties

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

3.

Related Parties

The following summarizes our related party activities with Nutracom and a significant distributor of the Company.

	June 30		December 31
Assets and liabilities - related parties	2019		2018
Notes & accounts receivables and deposits - current
Deposits with Nutracom for inventory	$	827,356	$	-
Notes receivable - distributor		126,778		123,040
Other miscellaneous receivables		72,992		28,182
	$	1,027,126	$	151,222
Notes & accounts receivables - non-current
Notes receivable - distributor	$	1,217,735	$	1,282,072
Notes receivable - Nutracom unsecured DTD 1/1/2019		764,344		-
Notes receivable - Nutracom unsecured DTD 6/1/2019		460,583		-
Unbilled receivables: Straight line rent revenue greater than rental billings		47,866		-
	$	2,490,528	$	1,282,072
Equity investment in Nutracom	$	505,000		-
Liability captions with Nutracom balances included therein
Trade accounts payable and other accrued expenses	$	62,849		-
Deferred rent liability		125,000		-

The following table presents scheduled principal payments to be received on the distributor and Nutracom promissory notes receivable:

Remainder of 2019	$	62,441
2020		130,629
2021		274,844
2022		292,377
2023		311,033
Thereafter		1,498,116
	$	2,569,440

	Six months ended June 30
Revenue and expense - related parties	2019		2018
Other revenue	$	332,657	$	-
Selling, general and administrative expense:
Fullfillment & professional fees		305,910		-
Interest income on promissory notes		92,668		44,778
Gain on sale of fixed assets		434,549		-
Finished goods inventory purchased from Nutracom	$	2,763,000		-

At

June 30, 2019,

we had

$1.4

million in commitments (net of deposits) to purchase finished goods inventory from Nutracom.

S

upplementary Disclosure of Cash Flows Information

:

We incurred the following noncash investing and financing transactions on

January 1, 2019

and

June 1, 2019

relating to our transactions with Nutracom:

	2019
January 1, 2019
Sale of fixed assets	$	1,000,000
Sale of inventories		1,559,488
First year building rental received in advance		250,000
Acquire company common stock for treasury		540,144
Acquire equity investment in Nutracom		505,000
Secured promissory note received		1,000,000
Unsecured promissory note received		764,344
June 1, 2019
Secured promissory note receivable balance decreased; applied as reduction to outstanding trade accounts payable		500,000
Unsecured promissory note received in exchange for remaining secured promissory note balance and other considerations		460,583