Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.19.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

Note 12 – Commitments and Contingencies

 

Defined Contribution Plan

 

The Company established a 401(k) Plan (the "401(k) Plan") for eligible employees of the Company effective April 1, 2014. Generally, all employees of the Company who are at least twenty-one years of age and who have completed three months of service are eligible to participate in the 401(k) Plan. The 401(k) Plan is a defined contribution plan that provides that participants may make salary deferral contributions up to the maximum allowed by law (subject to catch-up contributions) in the form of voluntary payroll deductions. The Company's matching contribution is equal to 100 percent on the first four percent of a participant's compensation which is deferred as an elective deferral.

 

The Company's aggregate matching contributions were $18 and $15 for the six months ended June 30, 2019 and 2018, respectively.

 

Product Liability

 

As a manufacturer of nutritional supplements that are ingested by consumers, the Company may be subject to various product liability claims. Although we have not had any claims to date, it is possible that future product liability claims could have a material adverse effect on our business or financial condition, results of operations or cash flows. The Company currently maintains product liability insurance of $5 million per-occurrence and a $10 million annual aggregate coverage. At June 30, 2019 and December 31, 2018, the Company had not recorded any accruals for product liability claims.

 

Endorsement Agreements

 

The Company has entered into various endorsement agreements with three athletes to endorse the Company's Yolked product. Under the terms of the agreements, the athletes have agreed to make personal appearances and provide social media and other content posts featuring Yolked.  As of June 30, 2019, under the terms of the agreements, the Company is obligated to pay these athletes a total of $206 through May 30, 2020