Note 3 - Related Parties

6 Months Ended

Jun. 30, 2020

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	2020		2019
Notes & accounts receivables and deposits - current
Deposits with Nutracom for inventory	$	657,087	$	941,154
Note receivable - distributor		134,597		130,629
Note receivable - Nutracom unsecured DTD 6/1/2019		40,107		-
Note receivable - Nutracom unsecured DTD 10/1/2019		25,015		-
Other miscellaneous receivables		32,216		27,445
	$	889,022	$	1,099,228
Notes & accounts receivables - non-current
Note receivable - distributor	$	1,083,138	$	1,151,443
Note receivable - Nutracom unsecured DTD 6/1/2019		420,476		460,583
Note receivable - Nutracom unsecured DTD 10/1/2019		686,148		711,163
Unbilled receivables: Straight line rent revenue greater than rental billings		172,148		95,732
	$	2,361,910	$	2,418,921
Equity investment in Nutracom	$	505,000	$	505,000
Liability captions with Nutracom balances included therein
Trade accounts payable and other accrued expenses	$	278,385	$	430,907

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

Remainder of 2020	$	66,292
2021		271,037
2022		288,294
2023		306,655
2024		326,190
Thereafter		1,131,013
	$	2,389,481

	Six months ended June 30
Revenue and expense - related parties	2020		2019
Other revenue	$	374,444	$	332,657
Selling, general and administrative expense:
Fullfillment & professional fees		316,910		305,910
Interest income on promissory notes		76,210		92,668
Royalty income (other income/expense)		30,504		-
Gain on sale of fixed assets		-		434,549
Finished goods inventory purchased from Nutracom	$	3,768,800	$	2,763,000

At

June 30, 2020,

we had

$1.27

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

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