Business Combinations

3 Months Ended

Mar. 31, 2025

Business Combinations [Abstract]

Business Combinations

Note 7 — Business Combinations

As previously disclosed in the Form 10-K, the Company acquired certain assets from Double or Nothing, the owner and creator of the Señorita brand of hemp-derived THC drinks, on December 12, 2024. The transaction was accounted for as a business combination under ASC 805, Business Combinations.

The Company prepared a preliminary purchase price allocation for the business combination. The preliminary valuation was based on management’s estimates and assumptions which are subject to change within the purchase price allocation period (generally not more than one year from the acquisition date). The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of the intangible assets acquired and the residual goodwill.

The following table summarizes the initial accounting estimates:

Allocation of Purchase Price (in thousands)
Tradenames	$	6,100
Customer Relationships		2,800
Deposits		123
Inventory		500
Goodwill		9,713
Total purchase price		19,236

As of March 31, 2025, the preliminary purchase price allocation remains unchanged. The valuation of certain acquired intangible assets and the resulting goodwill continues to be based on preliminary estimates. The Company is in the process of obtaining additional information necessary to complete the valuation analysis. As such, the purchase price allocation remains provisional and is subject to change within the measurement period.

Refer to Note 8 – Intangible Assets, Net in this Quarterly Report, for further information related to the identified intangible assets acquired in this transaction.