RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

The Company provides services on a contractual agreement to St. Gabriel CC Company, LLC. These services include accounting, information technology, quality control, and purchasing services, as well as operation of the St. Gabriel CC Company, LLC plant. The Company also sells raw materials to St. Gabriel CC Company, LLC. These raw materials are used in the production of finished goods that are, in turn, sold by Saint Gabriel CC Company, LLC to the Company for resale to unrelated parties.  As such, the sale of these raw materials to St. Gabriel CC Company, LLC in this scenario lacks economic substance and therefore the Company does not include them in net sales within the consolidated statements of earnings.

The services the Company provided amounted to $853 and $868, respectively, for the three months ended March 31, 2020 and 2019. The raw materials purchased and subsequently sold amounted to $4,711 and $6,808, respectively, for the three months ended March 31, 2020 and 2019. These services and raw materials are primarily recorded in cost of goods sold net of the finished

goods received from St. Gabriel CC Company, LLC of $3,721 and $5,312, respectively, for the three months ended March 31, 2020 and 2019. At March 31, 2020 and December 31, 2019, the Company had receivables of $4,472 and $4,840, respectively, recorded in accounts receivable from St. Gabriel CC Company, LLC for services rendered and raw materials sold and payables of $2,861 and $3,230, respectively, for finished goods received recorded in accrued expenses. In addition, the Company had receivables in the amount of $111, related to non-contractual monies owed from St. Gabriel CC Company, LLC, recorded in receivables as of March 31, 2020. There was no such receivable as of March 31, 2019. The Company had payables in the amount of $296 and $366, respectively, related to non-contractual monies owed to St. Gabriel CC Company, LLC, recorded in accrued expenses as of March 31, 2020 and December 31, 2019, respectively.