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Revenue
 6 Months Ended
Jun. 30, 2022
Revenue [Abstract]  
REVENUE
5. REVENUE

 

   For the
three months ended
June 30,		 
Revenue  2022   2021 
Product sales  $1,893,954   $5,290,589 
Franchise fees and income   22,679    98,805 
Revenues from transactions with franchisees   2,113,643    4,068,993 
   $4,030,276   $9,458,387 

 

   For the
six months ended
June 30,		 
Revenue  2022   2021 
Product sales  $4,326,491   $5,436,720 
Franchise fees and income   481,305    146,146 
Revenues from transactions with franchisees   5,820,769    8,286,779 
   $10,628,565   $13,869,645 

 

Contract liabilities  As of
June 30,
2022		   As of
December 31,
2021		 
Deferred revenue related to prepaid coffee and liquor products  $43,982   $20,881 
Deferred revenue related to upfront franchise fees   740,131    716,634 
   $784,113   $737,515 

 

Contract liabilities primarily consist of deferred revenue related to prepaid coffee and spirit products and upfront franchise fees. Deferred revenue related to prepaid spirit products represents advance from franchisees for future supply of products which is expected to recognize as revenue in the next 12 months. Deferred revenue related to upfront franchise fees represents the training service to be delivered over the term of franchise agreement that as of June 30, 2022, the Company expects to recognize as revenue of $211,259 within the next 12 months.

 

The Company has elected, as a practical expedient, not to disclose the value of remaining performance obligations associated with the franchise agreement in exchange for franchise right and related training services. The remaining duration of the performance obligation is the remaining contractual term of each franchise agreement. Revenue from training services provided to franchisees is recognized upon the conduct and delivery of training.