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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Summary of Significant Accounting Policies

Schedule of estimated useful life of property and equipment


Machinery and equipment		5 to 10 years
Leasehold improvements		Lower of useful life or lease term
Vehicles		3-5 years
Furniture and fixtures		7 years
Building		28 to 40 years
Property held under capital leases		3-5 years
Computer hardware and software		3 years

Schedule of variable interest entity financial information


	March 31,		December 31,
	2021		2020
Cash	$	65,000	$	81,000
Accounts receivable		—		343,000
Prepaid expenses and other current assets		99,000		98,000
Property and equipment, net		47,523,000		47,826,000
Other assets		5,170,000		5,260,000
Total assets	$	52,857,000	$	53,608,000

Accounts payable	$	—	$	564,000
Accrued expenses		219,000		128,000
Customer deposits		72,000		—
Due to Lollicup USA Inc.		2,622,000		2,990,000
Long-term debt, current portion		702,000		694,000
Long-term debt, net of current portion		36,519,000		36,697,000
Other liabilities		2,625,000		3,906,000
Total liabilities	$	42,759,000	$	44,979,000

Summary of net sales disaggregated by customer type


	Three-months ended March 31,
	2021		2020
National	$	18,289,000	$	15,498,000
Distributors		40,010,000		33,934,000
Online		11,443,000		6,286,000
Retail		5,931,000		8,365,000
	$	75,673,000	$	64,083,000

Schedule of concentration of credit risk

For the three-months ended March 31, 2021 and 2020, purchases from the following vendor makes up greater than 10 percent of total purchases:


	Three-months ended March 31,
	2021	2020
Keary Global Ltd. ("Keary Global") and its affiliate, Keary International, Ltd.- related parties	*	14	%

*purchases represented less than 10% of total purchases

Amounts due to the following vendors at March 31, 2021 and December 31, 2020 that exceed 10 percent of total accounts payable are as follows:


	March 31,		December 31,
	2021		2020
Keary Global and its affiliate, Keary International - related parties	13	%	18	%
Taizhou Fuling Plastics Co.,Ltd	14	%	11	%

Summary of fair value measurements by level for the assets and liabilities measured at fair value on a recurring basis


	Level 1		Level 2		Level 3
Cash equivalents	$	56,000	$	—	$	—
Interest rate swaps		—		(1,523,000)		—
Fair value, March 31, 2021	$	56,000	$	(1,523,000)	$	—


	Level 1		Level 2		Level 3
Cash equivalents	$	448,000	$	—	$	—
Interest rate swaps		—		(2,847,000)		—
Fair value, December 31, 2020	$	448,000	$	(2,847,000)	$	—

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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