Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.2
Revenue
9 Months Ended
Sep. 30, 2021
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.
Shipping costs
Shipping costs associated with moving finished products to customers were $1.2 million and $1.1 million for the nine months ended September 30, 2021 and 2020, respectively, and $0.3 million and $0.4 million for the three months ended September 30, 2021 and 2020, respectively. Such shipping costs are recorded as part of general and administrative expenses.
Revenue channels
The Company groups its revenue channels into four distinct categories: E-Commerce, which includes the sale of product to online retailers such as Amazon and Chewy; Brick & Mortar, which includes the sale of product to pet specialty chains such as Petco, PetSmart, select grocery chains, and neighborhood pet stores; DTC, which includes the sale of product through the Company's online web platform to more than 20,000 unique customers; 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):
Nine Months Ended September 30, Three Months Ended September 30,
2021 2020 2021 2020
E-commerce $ 11,644  33  % $ 10,969  33  % $ 4,742  36  % $ 3,510  32  %
Brick & Mortar 5,408  16  % 6,725  20  % 1,816  14  % 1,953  17  %
DTC 7,140  20  % 8,198  25  % 2,363  18  % 2,672  24  %
International 10,827  31  % 7,410  22  % 4,279  32  % 3,000  27  %
Net Sales $ 35,019  100  % $ 33,302  100  % $ 13,200  100  % $ 11,135  100  %