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

Revenue

v3.24.2
Revenue
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Revenue

Note 2 – 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, 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,  
    2024     2023  
E-commerce (1)   $ 3,265       41 %   $ 3,895       42 %
International (2)     2,874       37 %     2,311       25 %
DTC     1,209       15 %     1,322       14 %
Brick & mortar (3)     555       7 %     1,709       19 %
Net Sales   $ 7,903       100 %   $ 9,237       100 %

 

(1) The Company’s E-commerce channel includes two customers that amounted to greater than 10% of the Company’s total net sales for the three months ended March 31, 2024, and 2023, respectively. These customers had $3.2 million and $3.8 million of net sales during the three months ended March 31, 2024 and March 31, 2023, 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, 2024 and March 31, 2023, representing $2.2 million and $2.1 million of net sales, respectively.
(3) None of the Company’s Brick & Mortar customers represented greater than 10% of net sales during the three months ended March 31, 2024 or March 31, 2023. For the three months ended March 31, 2023, Petco is included within the Brick & Mortar channel. In Q1 2024, Petco is presented within E-commerce as a result of the strategic exit out of Petco stores, while remaining on Petco.com.

 

Note 2 – 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):

 

    Twelve Months Ended December 31,  
    2023     2022  
E-commerce (1)   $ 13,405       35 %   $ 14,565       27 %
Brick & Mortar   $ 5,870       15 %   $ 11,624       21 %
DTC   $ 5,597       15 %   $ 6,620       12 %
International (2)   $ 13,720       35 %   $ 21,851       40 %
Net Sales   $ 38,592       100 %   $ 54,660       100 %

 

(1) The Company’s E-commerce channel includes two customers that amounted to greater than 10% of the Company’s total net sales. These customers had $5.9 million and $7.1 million of net sales for the year ended December 31, 2023, respectively and $7.5 million and $6.6 million of net sales for the year ended December 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 years ended December 31, 2023 and December 31, 2022 and represented $11.0 million and $17.7 million of net sales, respectively.