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Joint Venture
12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Joint Venture Joint Venture
On April 6, 2022, Lollicup entered into a definitive joint venture agreement (the “JV Agreement”) with Happiness Moon Co., Ltd., a Taiwanese company, to jointly establish Bio Earth Technology (“Bio Earth”), a new Taiwanese corporation, for the manufacturing of compostable foodservice products from bagasse. The JV Agreement stipulated an investment by the Company of approximately $6,500,000 for a 49% interest in Bio Earth.
Lollicup had invested a total of $4,000,000 pursuant to the JV Agreement as of December 31, 2022, which is included in deposits in the accompanying consolidated balance sheet. This total investment comprised of three payments of $2,000,000 in April 2022, another $2,000,000 in June 2022, and $1,876,000 in November 2022, net of a refund of $1,876,000 received in December 2022. As of December 31, 2022, the incorporation and registration of Bio Earth had not been completed.
See Note 19 — Subsequent Events for subsequent investments made under the JV Agreement.