Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.21.1
Revenue Recognition
12 Months Ended
Dec. 31, 2020
Revenue Recognition [Abstract]  
REVENUE RECOGNITION
4. REVENUE RECOGNITION

 

Disaggregation of Revenues

 

The following table disaggregates revenue by source:

 

    Year Ended
December 31,
2020
    Year Ended
December 31,
2019
 
Sales at company owned stores   $ 182,736,434     $ 74,969,830  
                 
E-commerce sales     10,629,045       4,763,738  
Total Revenues   $ 193,365,479     $ 79,733,568  

 

Contract Balances

 

Depending on the timing of when a customer takes possession of product and when a customer makes payments for such product, the Company recognizes a customer trade receivable (asset) or a customer deposit (liability). The difference between the opening and closing balances of the Company's customer trade receivables and the customer deposit liability results from timing differences between the Company's performance and the customer's payment and due to the acquisitions for the years ended December 31, 2020 and 2019.

 

The opening and closing balances of the Company's customer trade receivables and customer deposit liability are as follows:

 

    Receivables     Customer Deposit Liability  
Opening balance, 1/1/2020   $ 4,455,209     $ 2,503,785  
Closing balance, 12/31/2020     7,712,396       5,154,524  
Increase (decrease)   $ 3,257,187       2,650,739  
                 
Opening balance, 1/1/2019   $ 862,397     $ 516,038  
Closing balance, 12/31/2019     4,455,209       2,503,785  
Increase (decrease)   $ 3,592,812     $ 1,987,747  

 

The Company also has customer trade receivables under longer term financing arrangements at interest rates ranging from 9% to 12% with repayment terms ranging for 12 to 18 months. Long term trade receivables at December 31, 2020 and 2019 are as follows:

 

    December 31, 2020     December 31, 2019  
Note receivable   $ 4,103,927     $ 1,501,288  
Allowance for losses     (292,050 )     -  
Notes receivable, net   $ 3,811,877       1,501,288  

 

The following table summarizes changes in notes receivable balances that have been deemed impaired.

 

    December 31,
2020
    December 31,
2019
 
Note receivable   $ 1,166,428     $ 1,501,288  
Allowance for loses     (292,050 )     -  
Notes receivable, net   $ 874,378       1,501,288