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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of estimated useful life of property and equipment

The estimated useful life of property and equipment are as follows:


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

Schedule of goodwill

The following table summarizes the activity in the Company's goodwill from December 31, 2019 to December 31, 2021:


			(in thousands)

Balance at December 31, 2019			$3,113
Goodwill acquired			—
Balance at December 31, 2020			$3,113
Goodwill acquired			397
Balance at December 31, 2021			$3,510

Schedule of variable interest entity financial information

The following financial information includes assets and liabilities of Global Wells and are included in the accompanying consolidated balance sheets, except for those that eliminate upon consolidation:


	December 31, 2021		December 31, 2020
	(in thousands)
Cash	$	1,163	$	81
Accounts receivable	384		343
Prepaid expenses and other current assets	63		98
Property and equipment, net	46,612		47,826
Other assets	4,762		5,260
Total assets	52,984		53,608
Accounts payable	$	497	$	564
Accrued expenses	68		128
Income tax payable	9		—
Customer deposits	88		—
Due to Lollicup USA Inc.	2,620		2,990
Long-term debt, current portion	1,178		694
Long-term debt, net of current portion	35,339		36,697
Other liabilities	2,636		3,906
Total liabilities	$	42,435	$	44,979

Summary of net sales disaggregated by customer type

For the years ended December 31, 2021 and 2020, net sales disaggregated by customer type consist of the amounts shown below.


	Year Ended December 31,
	2021		2020
	(in thousands)
National and regional chains	$	86,017	$	67,875
Distributors	199,902		157,164
Online	50,271		33,194
Retail	28,054		37,285
	$	364,244	$	295,518

Schedule of concentration of credit risk

For the years ended December 31, 2021 and 2020, purchases from the following vendor makes up greater than 10 percent of total purchases:


	Year Ended December 31,
	2021		2020
Keary Global Ltd. (“Keary Global”) and its affiliate, Keary International, Ltd. – related parties	12	%	11	%

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


	December 31, 2021		December 31, 2020
Keary Global and its affiliate, Keary International – related parties	10	%	18	%
Taizhou Fuling Plastics Co.,Ltd	*		11	%
Fuling Technology Co., Ltd.	21	%	*
Wen Ho Industrial Co., Ltd	11	%	*

* Amounts payable represented less than 10% of total accounts payable.

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

The following table summarize the Company’s fair value measurements by level at December 31, 2021 for the assets and liabilities measured at fair value on a recurring basis:


	Level 1		Level 2		Level 3
	(in thousands)
Cash equivalents	$	2,000	$	—	$	—
Interest rate swap	—		(1,334)		—
Fair value, December 31, 2021	$	2,000	$	(1,334)	$	—

The following table summarize the Company’s fair value measurements by level at December 31, 2020 for the assets and liabilities measured at fair value on a recurring basis:


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

- 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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