Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.2
Revenue
 6 Months Ended
Jun. 30, 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 June 30, Six Months Ended June 30,
2023 2022 2023 2022
E-commerce (1)
$ 3,256  31  % $ 3,681  22  % $ 7,151  37  % $ 7,505  22  %
Brick & Mortar (3)
1,710  16  % 3,956  24  % 3,419  17  % 8,290  25  %
DTC 1,696  16  % 1,762  11  % 3,018  15  % 3,695  11  %
International (2)
3,874  37  % 7,116  43  % 6,185  31  % 14,039  42  %
Net Sales $ 10,536  100  % $ 16,515  100  % $ 19,773  100  % $ 33,529  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 and six months ended June 30, 2023, and 2022, respectively. These customers had $3.1 million and $6.9 million of net sales for the three and six months ended June 30, 2023 and $3.6 million and $7.3 million of net sales during the three and six months ended June 30, 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 and six months ended June 30, 2023 represented $2.9 million and $5.0 million of net sales, respectively. 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 and six months ended June 30, 2022 represented $5.5 million and $11.3 million of net sales, respectively.
(3)The Company's Brick & Mortar channel includes $2.2 million and $4.0 million of net sales from one customer that amounted to greater than 10% of the Company's total net sales for the three and six months ended June 30, 2022. None of the Company's Brick & Mortar customers represented greater than 10% of net sales during the three and six months ended June 30, 2023.