Note 8 - Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

Long

Term Leases

The Company leases its corporate headquarters, warehouse and waterfront facilities from Paul and Joan Katzeff (the Company's majority shareholders). The lease is classified as an operating lease and provides for monthly rental payments of

$8,600.

The Company is responsible for all real estate taxes, insurance and maintenance costs related to the facilities. The Company is a guarantor on certain debt that the Company's majority shareholders hold in connection with its corporate headquarters, warehouse and waterfront facilities. The

ten

-year lease term ends

May 31, 2025.

September 2020,

the Company deferred rent payments for its corporate headquarters totaling

$17,200

for the months of

July

and

August 2020.

As the rental lease was entered into with the majority shareholder, terms of repayment have

not

been agreed upon as of the date of these financial statements but will be determined upon the improvement of economic conditions.

As of

December 31, 2019,

minimum future rental payments under non-cancelable facilities operating leases for each of the next

five

years and in the aggregate are as follows:

Years Ended December 31,
2020	$	103,200
2021		103,200
2022		103,200
2023		103,200
2024		103,200
Thereafter		43,000
Total of long-term lease	$	559,000

Contracts

The Company negotiates green bean purchase contracts from

three

cooperatives in Nicaragua. Ethical Trading and Investment Company of Nicaragua (“ETICO”) is the importer for the transaction. Nicholas Hoskyns, a Director of the Company, is the managing director at ETICO. At

December 31, 2019,

amounts owed to ETICO totaled

$37,333.

All amounts owed were current and were paid in accordance with our standard vendor payment policies. At

December 31, 2018

there was

$53,327

payable to ETICO for coffee purchases. The loss of the ETICO relationship could have an adverse effect on the Company's business in the short term. Management believes other options are available that could be utilized in the event the ETICO relationship was terminated.