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Related Party Transactions
6 Months Ended
Jun. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Lollicup Franchising was determined to be a related party by virtue of common ownership from January 1, 2020 to August 31, 2020. The Company acquired all of the membership interest of Lollicup Franchising from the Company’s two primary shareholders for $900,000 in September 2020. Lollicup Franchising is a wholly-owned subsidiary of the Company and this balance is eliminated upon consolidation as of September 30, 2020 (see Note 3). Sales for the three months and six months ended June 30, 2020 to this related party were $4,000 and $18,000, respectively. The Company has incurred incentive program expenses of $26,000 and $58,000 for the three and six months ended June 30, 2020, respectively.
As a minority stockholder of the Company, Keary Global owns 250,004 shares of common stock as of June 30, 2021, which Keary Global acquired upon exercise of two convertible notes during the third quarter of 2018. Keary Global and its affiliate, Keary International, are owned by one of the Company’s stockholders’ family member. In addition to being a stockholder, Keary Global and Keary International are inventory suppliers and purchasing agents for the Company overseas. The Company has entered into ongoing purchase and supply agreements with Keary Global. At June 30, 2021 and December 31, 2020, the Company has accounts payable due to Keary Global and Keary International, of $3,608,000 and $5,038,000, respectively. Purchases for the three months ended June 30, 2021 and 2020 from this related party were $13,645,000 and $4,028,000, respectively. Purchases for the six months ended June 30, 2021 and 2020 from this related party were $18,700,000 and $11,810,000, respectively.