Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.1
Revenue
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company records revenue net of discounts, which primarily consist of early pay discounts, general percentage allowances and contractual trade promotions.
The Company excludes sales taxes collected from revenues. Retail-partner based customers are not subject to sales tax.
The Company’s direct-to-consumer ("DTC") loyalty program enables customers to accumulate points based on their spending. A portion of revenue is deferred at the time of sale when points are earned and recognized when the loyalty points are redeemed.
Revenue channels
The Company groups its revenue channels into four categories: E-Commerce, which includes the sale of product to online retailers such as Amazon and Chewy; Brick & Mortar, which primarily includes the sale of product to Pet Specialty retailers such as Petco, Pet Supplies Plus and neighborhood pet stores, as well as to select grocery chains; DTC, which includes the sale of product through the Company's website; and International, which includes the sale of product to foreign distribution partners and to select international retailers (transacted in U.S. dollars).
Information about the Company’s net sales by revenue channel is as follows (in thousands):
Three Months Ended
 March 31,
2022 2021
E-commerce (1)
$ 3,824  22  % $ 4,010  37  %
Brick & Mortar (2)
4,334  26  % 1,894  18  %
DTC 1,933  11  % 2,436  22  %
International (3)
6,923  41  % 2,490  23  %
Net Sales $ 17,014  100  % $ 10,830  100  %
(1)The Company's E-Commerce channel includes one customer that amounted to greater than 10% of the Company's total net sales during the three months ended March 31, 2022 and two customers that amounted to greater than 10% of the Company's total net sales during the three months ended March 31, 2021. These customers had $2.2 million of net sales during the three months ended March 31, 2022 and an aggregate of $3.7 million of net sales during the three months ended March 31, 2021.
(2)The Company's Brick & Mortar channel includes $1.8 million of net sales from one customer that amounted to greater than 10% of the Company's total net sales during the three months ended March 31, 2022. None of the Company's Brick & Mortar customers represented greater than 10% of net sales during the three months ended March 31, 2021.
(3)The Company's International channel includes $5.8 million of net sales from one customer in China that amounted to greater than 10% of the Company's total net sales during the three months ended March 31, 2022. None of the Company's International customers represented greater than 10% of net sales during the three months ended March 31, 2021.