Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

16. Revenue Recognition

The Company’s primary source of revenue is sales of coffee creamers, hydration and beverage enhancing supplements, harvest snacks and other food items, and coffee, tea and hot chocolate products. The Company recognizes revenue when control of the promised good or service is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. Each delivery or shipment made to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms. Additionally, the Company estimates the impact of certain common practices employed by us and other manufacturers of consumer products, such as scan-based trading, product rebate and other pricing allowances, product returns, trade promotions, sales broker commissions and slotting fees. These estimates are recorded at the end of each reporting period.

In accordance with ASC Topic 606, the Company disaggregates net sales from contracts with customers based on the characteristics of the products sold:

	Three Months Ended June 30,
	2022						2021
	$			% of Total			$			% of Total
Coffee creamers	$	4,694,975			54	%	$	5,078,739			55	%
Hydration and beverage enhancing supplements		1,296,779			15	%		1,752,820			19	%
Harvest snacks and other food items		1,713,441			20	%		1,344,802			15	%
Coffee, tea, and hot chocolate products		1,568,142			18	%		1,661,130			18	%
Other		419,390			5	%		76,232			1	%
Gross sales		9,692,727			112	%		9,913,723			108	%
Shipping income		291,410			3	%		40,750			0	%
Returns and discounts		(1,310,131	)		(15	)%		(773,887	)		(8	)%
Sales, net	$	8,674,006			100	%	$	9,180,586			100	%

	Six Months Ended June 30,
	2022						2021
	$			% of Total			$			% of Total
Coffee creamers	$	10,149,382			56	%	$	10,100,387			61	%
Hydration and beverage enhancing supplements		2,754,210			15	%		2,982,875			18	%
Harvest snacks and other food items		3,400,232			19	%		1,487,705			9	%
Coffee, tea, and hot chocolate products		3,384,327			19	%		3,562,222			21	%
Other		657,713			4	%		127,168			1	%
Gross sales		20,345,864			113	%		18,260,357			110	%
Shipping income		539,602			3	%		66,410			0	%
Returns and discounts		(2,871,447	)		(16	)%		(1,749,288	)		(10	)%
Sales, net	$	18,014,019			100	%	$	16,577,479			100	%

The Company generates revenue through three channels: online, wholesale, and food service:

	For the Three Months Ended June 330,
	2022					2021
	$		% of Total			$		% of Total
Online	$	5,178,819		60	%	$	5,799,104		63	%
Wholesale		3,341,573		39	%		3,220,030		35	%
Food service		153,614		2	%		161,452		2	%
Sales, net	$	8,674,006		100	%	$	9,180,586		100	%

	For the Six Months Ended June 30,
	2022					2021
	$		% of Total			$		% of Total
Online	$	10,602,770		59	%	$	10,161,509		61	%
Wholesale		7,136,643		40	%		6,113,727		37	%
Food service		274,606		2	%		302,243		2	%
Sales, net	$	18,014,019		100	%	$	16,577,479		100	%

Contract assets (deferred costs of goods sold associated with deferred revenue), contract liabilities (deferred revenue, customer deposits, rewards programs), and refund liabilities (accrued returns) have been estimated and recorded as of June 30, 2022. Contract assets included in finished goods inventories were $0 and $5,283 as of June 30, 2022 and December 31, 2021, respectively. Contract liabilities and refund liabilities included in accrued expenses were $10,314 and $29,925 as of June 30, 2022 and December 31, 2021, respectively. Receivables from contracts with customers are included in Accounts receivable, net on the Company’s consolidated balance sheets. As of June 30, 2022 and December 31, 2021, Accounts receivable, net included, $1,183,953 and $1,268,718, respectively, of receivables from contracts with customers.