Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.1
Revenue
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company records revenue net of discounts, which primarily consist of trade promotions, certain customer allowances and early pay discounts.
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,
2023 2022
E-commerce (1)
$ 3,895  42  % $ 3,824  22  %
Brick & Mortar (3)
1,709  19  % 4,334  26  %
DTC 1,322  14  % 1,933  11  %
International (2)
2,311  25  % 6,923  41  %
Net Sales $ 9,237  100  % $ 17,014  100  %
(1)The Company's E-commerce channel includes two customers and one customer that amounted to greater than 10% of the Company's total net sales for the three months ended March 31, 2023, and 2022, respectively. These customers had $3.8 million of net sales for the three months ended March 31, 2023 and an aggregate of $2.2 million of net sales for the three months ended March 31, 2022, respectively.
(2)One of the Company's International customers that distributes products in China amounted to greater than 10% of the Company's total net sales during the three months ended March 31, 2023 and March 31, 2022 and represented $2.1 million and $5.8 million of net sales, respectively.
(3)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 for 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, 2023.