Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2.2
Revenue
 9 Months Ended
Sep. 30, 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):
Three Months Ended
 September 30,		 Nine Months Ended
 September 30,
2022 2021 2022 2021
E-commerce (1)
$ 3,530  30  % $ 4,742  36  % $ 11,035  24  % $ 11,644  33  %
Brick & Mortar (2)
1,342  11  % 1,816  14  % 9,632  21  % 5,408  16  %
DTC 1,371  12  % 2,363  18  % 5,066  11  % 7,140  20  %
International (3)
5,622  47  % 4,279  32  % 19,661  44  % 10,827  31  %
Net Sales $ 11,865  100  % $ 13,200  100  % $ 45,394  100  % $ 35,019  100  %
(1)The Company's E-commerce channel includes two customers that amounted to greater than 10% of the Company's total net sales during the three and nine months ended September 30, 2022. These customers had an aggregate of $3.3 million and $10.6 million of net sales during the three and nine months ended September 30, 2022, respectively. Two customers amounted to greater than 10% of the Company's total net sales during the three and nine months ended September 30, 2021, respectively. These customers had an aggregate of $4.4 million and $10.8 million of net sales during the three and nine months ended September 30, 2021, respectively.
(2)The Company's Brick & Mortar channel includes $4.3 million of net sales from one customer that amounted to greater than 10% of the Company's total net sales during the nine months ended September 30, 2022.
(3)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 and nine months ended September 30, 2022 and represented $5.3 million and $16.6 million of net sales, respectively. One of the Company's International customers in China represented greater than 10% of net sales during the three and nine months ended September 30, 2021 and represented $2.9 million and $6.7 million of net sales, respectively.