Commitments and Contingencies
|9 Months Ended|
Sep. 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 $26 and $25 for the nine months ended September 30, 2019 and 2018, respectively.
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 September 30, 2019 and December 31, 2018, the Company had not recorded any accruals for product liability claims.
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 September 30, 2019, under the terms of the agreements, the Company is obligated to pay these athletes a total of $87 in the fourth quarter of 2019 and an additional $42 through April 2020.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef