General form of registration statement for all companies including face-amount certificate companies

Accrued liabilities (Q3)

v3.20.2
Accrued liabilities (Q3)
9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Accrued liabilities [Abstract]    
Accrued liabilities

Note 7 - Accrued liabilities

Accrued liabilities consist of the following:

Dollars in thousands
 
September 30, 2020
   
December 31, 2019
 
Accrued professional fees
 
$
1,802
   
$
1,695
 
Accrued sales tax
   
1,041
     
1,233
 
Accrued payroll and benefits
   
1,154
     
994
 
Accrued trade promotions
   
360
     
357
 
Accrued dividends
   
359
     
256
 
Accrued interest
   
359
     
109
 
Other
   
296
     
77
 
Total accrued liabilities
 
$
5,371
   
$
4,721
 
Accrued dividends related to the Series E are $0.4 million and $0.3 million as of September 30, 2020 and December 31, 2019, respectively. In connection with the issuance of Series F Preferred Stock in October 2020, all accrued dividends were settled through the terms of the exchange agreement related to the Series E preferred stock. See "Note 21 - Subsequent events" for additional information.
Note 7 – Accrued liabilities

Accrued liabilities consist of the following:

Dollars in thousands
 
December 31, 2019
   
December 31, 2018
 
Accrued professional fees
 
$
1,695
   
$
-
 
Accrued sales tax
   
1,233
     
-
 
Accrued payroll and benefits
   
994
     
85
 
Accrued trade promotions
   
357
     
-
 
Accrued dividends
   
256
     
-
 
Accrued interest
   
109
     
-
 
Other
   
77
      -  
Total accrued liabilities
 
$
4,721
   
$
85
 

The Company has historically collected and remitted sales tax based on the locations of its significant physical operations. On June 21, 2018, the U.S. Supreme Court rendered a 5-4 majority decision in South Dakota v. Wayfair Inc., 17-494. Among other things, the Court held that a state may require an out-of-state seller with no physical presence in the state to collect and remit sales taxes on goods the seller ships to consumers in the state, overturning existing court precedent. The Company discovered that TruPet had not collected and paid sales tax related to all sales in some states where it had a physical presence.  The Company recognized $1.2 million and no sales tax liability as of December 31, 2019 and 2018, respectively.  While additional assessments are not anticipated, additional states may assert that the Company has nexus and must pay sales tax for prior sales.  The Company does not believe that additional assessments, if any, will have a material impact on our financial position or results of operations.

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2019, the Company identified an error as of December 31, 2018 related to an understatement of sales taxes due and payable of $0.7 million. The error was corrected during the year ended December 31, 2019. The Company believes that the correction of this error is not material to the consolidated financial statements as of and for the year ended December 31, 2019.