Annual report pursuant to Section 13 and 15(d)

Revenue

v3.23.1
Revenue
 12 Months Ended
Dec. 31, 2022
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):
Twelve Months Ended December 31,
2022 2021
E-commerce (1)
$ 14,565  27  % $ 15,091  33  %
Brick & Mortar 11,624  21  % 6,766  15  %
DTC 6,620  12  % 9,397  20  %
International (2)
21,851  40  % 14,752  32  %
Net Sales $ 54,660  100  % $ 46,006  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 $7.5 million and $6.6 million of net sales for the year ended December 31, 2022, respectively and $7.0 million and $7.6 million of net sales for the year ended December 31, 2021, 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, 2022 and December 31, 2021 and represented $17.7 million and $9.1 million of net sales, respectively.