|3 Months Ended|
Mar. 31, 2020
NOTE 16 – BAD DEBTS
At March 31, 2020 and 2019, the Company maintained reserves against bad debts of approximately $43.1 million and $150,000, respectively.
The March 31, 2020 reserves were primarily comprised of (i) an allowance against the accounts receivable balance due from GenCanna of approximately $29.0 million, following the commencement of GenCanna’s Chapter 11 proceedings as previously discussed in Note 4 – Investments, (ii) an allowance against the accounts receivable balance of approximately $9.7 million, and reserve against the working capital balance of approximately $1.5 million, due from Kind, in light of the current litigation between the Company and Kind as further discussed in Note 18 – Commitments and Contingencies, and (iii) a reserve against the working capital balance of approximately $1.9 million due from Harvest, based on the Company’s expectation of the negative impact of the COVID-19 pandemic on Harvest’s local economy.