Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40950 | |
Entity Registrant Name | The Vita Coco Company, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-3713156 | |
Entity Address, Address Line One | 250 Park Avenue South | |
Entity Address, Address Line Two | Seventh Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 206-0763 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Trading Symbol | COCO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,246,698 | |
Entity Central Index Key | 0001482981 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 29,080 | $ 19,629 |
Accounts receivable, net of allowance of $3,880 at March 31, 2023, and $2,898 at December 31, 2022 | 63,189 | 43,350 |
Inventory | 64,181 | 84,115 |
Supplier advances, current | 1,393 | 1,534 |
Derivative assets | 4,769 | 3,606 |
Asset held for sale | 503 | 503 |
Prepaid expenses and other current assets | 21,870 | 22,181 |
Total current assets | 184,985 | 174,918 |
Property and equipment, net | 2,358 | 2,076 |
Goodwill | 7,791 | 7,791 |
Supplier advances | 4,056 | 4,360 |
Deferred tax assets, net | 4,259 | 4,256 |
Right-of-use asset | 2,407 | 2,679 |
Other assets | 1,720 | 1,677 |
Total assets | 207,576 | 197,757 |
Current liabilities: | ||
Accounts payable | 16,546 | 15,910 |
Accrued expenses and other current liabilities | 39,077 | 38,342 |
Notes payable, current | 21 | 23 |
Derivative liabilities | 21 | 71 |
Total current liabilities | 55,665 | 54,346 |
Credit facility | 0 | 0 |
Notes payable, non-current | 22 | 25 |
Other long-term liabilities | 2,223 | 2,293 |
Total liabilities | 57,910 | 56,664 |
Stockholders’ equity: | ||
Common stock, $0.01 par value; 500,000,000 shares authorized; 62,411,033 and 62,225,250 shares issued at March 31, 2023 and December 31, 2022, respectively; 56,204,833 and 56,019,050 shares outstanding at March 31, 2023 and December 31, 2022, respectively | 624 | 622 |
Additional paid-in capital | 147,973 | 145,210 |
Retained earnings | 60,818 | 55,183 |
Accumulated other comprehensive loss | (821) | (994) |
Treasury stock, 6,206,200 shares at cost as of March 31, 2023, and December 31, 2022 | (58,928) | (58,928) |
Total stockholders’ equity attributable to The Vita Coco Company, Inc. | 149,666 | 141,093 |
Total liabilities and stockholders’ equity | $ 207,576 | $ 197,757 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3,880,000 | $ 2,898,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 62,411,033 | 62,225,250 |
Common stock, shares outstanding (in shares) | 56,204,833 | 56,019,050 |
Treasury stock (in shares) | 6,206,200 | 6,206,200 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 109,759 | $ 96,448 |
Cost of goods sold | 76,098 | 77,385 |
Gross profit | 33,661 | 19,063 |
Operating expenses | ||
Selling, general and administrative | 26,957 | 24,801 |
Income (Loss) from operations | 6,704 | (5,738) |
Other income (expense) | ||
Unrealized gain/(loss) on derivative instruments | 1,213 | 8,706 |
Foreign currency gain/(loss) | 611 | (101) |
Interest income | 13 | 7 |
Interest expense | (15) | (27) |
Total other income/(expense) | 1,822 | 8,585 |
Income before income taxes | 8,526 | 2,847 |
Income tax expense | (1,821) | (620) |
Net income | $ 6,705 | $ 2,227 |
Net income per common share | ||
Basic (in dollars per share) | $ 0.12 | $ 0.04 |
Diluted (in dollars per share) | $ 0.12 | $ 0.04 |
Weighted-average number of common shares outstanding | ||
Basic (in shares) | 56,046,904 | 55,561,896 |
Diluted (in shares) | 57,351,405 | 55,700,388 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,705 | $ 2,227 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 173 | (254) |
Total comprehensive income | $ 6,878 | $ 1,973 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Non-Controlling Interests and Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Impact of ASC 326 adoption | Common Stock | Additional Paid-In | Retained Earnings | Retained Earnings Impact of ASC 326 adoption | Accumulated Other Comprehensive Income / (Loss) | Treasury Stock | Common Stock Common Stock | Common Stock with Exit Warrants Common Stock |
Beginning Balance (in shares) at Dec. 31, 2021 | 61,764,582 | 6,206,200 | 53,651,477 | 8,113,105 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 123,173 | $ 618 | $ 134,730 | $ 47,369 | $ (616) | $ (58,928) | $ 537 | $ 81 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2,227 | 2,227 | ||||||||
Stock-based compensation | 2,386 | 2,386 | ||||||||
Exercise of stock options (in shares) | 26,845 | 26,845 | ||||||||
Exercise of stock options | 151 | 151 | ||||||||
Foreign currency translation adjustment | (254) | (254) | ||||||||
Ending balance (in shares) at Mar. 31, 2022 | 61,791,427 | 6,206,200 | 53,678,322 | 8,113,105 | ||||||
Ending balance at Mar. 31, 2022 | 127,683 | $ 618 | 137,267 | 49,596 | (870) | $ (58,928) | $ 537 | $ 81 | ||
Beginning Balance (in shares) at Dec. 31, 2022 | 62,225,250 | 6,206,200 | 54,112,145 | 8,113,105 | ||||||
Beginning Balance at Dec. 31, 2022 | 141,093 | $ 622 | 145,210 | 55,183 | (994) | $ (58,928) | $ 541 | $ 81 | ||
Beginning Balance (Cumulative-effect adjustment related to the adoption of accounting guidance for credit losses) at Dec. 31, 2022 | $ (1,070) | $ (1,070) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 6,705 | 6,705 | ||||||||
Stock-based compensation | 2,162 | 2,162 | ||||||||
Exercise of stock options (in shares) | 185,783 | 185,783 | ||||||||
Exercise of stock options | 603 | $ 2 | 601 | |||||||
Foreign currency translation adjustment | 173 | 173 | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 62,411,033 | 6,206,200 | 54,297,928 | 8,113,105 | ||||||
Ending balance at Mar. 31, 2023 | $ 149,666 | $ 624 | $ 147,973 | $ 60,818 | $ (821) | $ (58,928) | $ 543 | $ 81 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Cash flows from operating activities: | |||
Net income | $ 6,705 | $ 2,227 | |
Adjustments required to reconcile net income to cash flows from operating activities: | |||
Depreciation and amortization | 165 | 470 | |
(Gain)/loss on disposal of equipment | (1) | 0 | |
Bad debt expense | 832 | 65 | |
Unrealized (gain)/loss on derivative instruments | (1,213) | (8,706) | |
Stock-based compensation | 2,162 | 2,386 | |
Noncash lease expense | 279 | 258 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (21,337) | (10,186) | |
Inventory | 20,089 | 10,608 | |
Prepaid expenses, net supplier advances, and other assets | 683 | (5,299) | |
Accounts payable, accrued expenses, and other liabilities | 1,072 | (14,371) | |
Net cash provided by (used in) operating activities | 9,436 | (22,548) | |
Cash flows from investing activities: | |||
Cash paid for property and equipment | (454) | (244) | |
Proceeds from sale of property and equipment | 5 | 0 | |
Net cash used in investing activities | (449) | (244) | |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options/warrants | 603 | 152 | |
Borrowings on credit facility | 0 | 12,000 | |
Cash received (paid) on notes payable | (6) | (8) | |
Net cash provided by (used in) financing activities | 597 | 12,144 | |
Effects of exchange rate changes on cash and cash equivalents | 187 | (56) | |
Net increase/ (decrease) in cash and cash equivalents | 9,771 | (10,704) | |
Cash and cash equivalents at beginning of the period | 19,629 | 28,690 | |
Cash, cash equivalents and restricted cash at end of the period | [1] | $ 29,400 | $ 17,986 |
[1]Includes $320 and $0 of restricted cash as of March 31, 2023 and 2022, respectively, that were included in other current assets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 320 | $ 0 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | NATURE OF BUSINESS AND BASIS OF PRESENTATION The Vita Coco Company, Inc. and subsidiaries (the “Company”) develops, markets, and distributes various coconut water products under the brand name Vita Coco and for retailers' own brands, predominantly in the United States. Other products include coconut milk, natural energy drinks (under the brand name Runa ), coconut oil, water (under the brand name Ever & Ever ), protein infused fitness drinks (under the brand name PWR LIFT) and coconut as a commodity. The Company was incorporated in Delaware as All Market Inc. on January 17, 2007.On September 9, 2021, we changed our name to The Vita Coco Company, Inc. In 2018, the Company purchased certain assets and liabilities of Runa , which is marketed and distributed primarily in the United States. We are a public benefit corporation under Section 362 of the Delaware General Corporation Law. As a public benefit corporation, our Board of Directors is required by the Delaware General Corporation Law to manage or direct our business and affairs in a manner that balances the pecuniary interests of our stockholders, the best interests of those materially affected by our conduct, and the specific public benefits identified in our certificate of incorporation. The Company has nine wholly-owned subsidiaries including four wholly-owned Asian subsidiaries established between fiscal 2012 and 2015, four North American subsidiaries established between 2012 and 2018, as well as All Market Europe, Ltd. ("AME") in the United Kingdom of which the Company became the sole shareholder as of December 31, 2021. Impact of the COVID-19 Pandemic and the Current Geopolitical and Economic Instability Disruptions in the worldwide economy may affect our business, and the macroeconomic environment continues to be affected by the impacts of the COVID-19 pandemic and the current geopolitical and economic instability (including the effects of the conflict between Ukraine and Russia). As a result, in the years ended December 31, 2022 and 2021, the Company saw significant cost inflation to domestic and international shipping costs and some inflationary pressures on other cost elements, which have been partially covered by pricing actions to date. For the three months ended March 31, 2023, we saw more favorable transportation costs than the same period in the prior year as the supply chain environment stabilizes, but general inflationary pressures continue to increase the other elements of our cost of goods and operating expenses. The Company is continuing to monitor the situation carefully to understand any future potential impact on its people and business, including but not limited to rising inflation rates, and actions taken by both U.S. and foreign governments to control such increases. The Company has also seen greater volatility on foreign exchange rates. A strong dollar generally benefits the Company's supply chain activities while negatively impacting our reported international revenues. As a result, it is not currently possible to ascertain the overall impact of COVID-19 or the ongoing economic and geopolitical instability on the Company’s business, results of operations, financial condition, or liquidity. Future events and effects related to COVID-19 or the on-going geopolitical and economic instability cannot be determined with precision and actual results could significantly differ from estimates or forecasts. Unaudited interim financial information The Company’s condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Article 10 of Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s financial information for the interim period presented. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period or for any other future year. The condensed consolidated balance sheet as of March 31, 2023 is unaudited and should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended December 31, 2022. During the three months ended March 31, 2023, there were no significant changes to the Company’s significant accounting policies as described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2022, except for the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements are presented in accordance with U.S. GAAP. Principles of Consolidation The condensed consolidated financial statements include all the accounts of the wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates Preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. The most significant estimates in the condensed consolidated financial statements relate to share-based compensation, assessing long-lived assets for impairment, estimating the net realizable value of inventories, the determination of accounts receivables reserve, assessing goodwill for impairment, the determination of the value of trade promotions, and assessing the realizability of deferred income taxes. Actual results could differ from those estimates. Concentration of Credit Risk The Company’s cash and accounts receivable are subject to concentrations of credit risk. The Company’s cash balances are primarily on deposit with banks in the U.S. which are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to $250. At times, such cash may be in excess of the FDIC insurance limit. To minimize the risk, the Company’s policy is to maintain cash balances with high quality institutions, which may include banks, financial institutions, and investment firms, and invest daily or reserve operating cash in money market funds, government securities, bank obligations, municipal securities or other investment vehicles with short-term maturities. Substantially all of the Company’s customers are either wholesalers or retailers of beverages. A material default in payment, a material reduction in purchases from these or any large customers, or the loss of a large customer or customer groups could have a material adverse impact on the Company’s financial condition, results of operations, and liquidity. The Company is exposed to concentration of credit risk from its major customers for which two customers in aggregate represented 50% and 56% of total net sales for the three months ended March 31, 2023 and 2022, respectively. In addition, the two customers in aggregate also accounted for 43% and 39% of total accounts receivable as of March 31, 2023 and December 31, 2022, respectively. The Company has not experienced credit issues with these customers. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ( "ASU 2016-13" ). The new accounting standard introduced the current expected credit losses methodology ("CECL") for estimating allowances for credit losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized costs, including loans and trade receivables. ASU 2016-13 is effective for the Company, as an Emerging Growth Company ("EGC"), for annual and interim reporting periods beginning after December 15, 2022. The Company adopted the standard on January 1, 2023 using the modified retrospective method for all financial assets in scope. The amounts for reporting periods beginning after January 1,2023 are presented under ASC 326 methodology, while prior period amounts continue to be reported in accordance with previously applicable GAAP. As a part of the adoption, the Company selected to apply roll-rate method to estimate current expected credit losses for its accounts receivable population and weighted average remaining maturity ("WARM") method for supplier advances. The difference of $1,070 between the incurred credit loss estimate and current expected credit loss estimate was recorded as cumulative effect adjustment to the Company’s opening retained earnings and reflected on the consolidated balance sheet as of January 1, 2023 as a result of the ASC 326 adoption. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations, or consolidated statements of cash flows. The following table illustrates the impact of ASC 326. As of January 1, 2023 As reported under ASC 326 Pre-ASC 326 adoption Impact of ASC 326 adoption Allowance for credit losses on accounts receivables $ 3,552 $ 2,898 $ 654 Allowance for credit losses on supplier advances 416 — 416 Total $ 3,968 $ 2,898 $ 1,070 Recently Issued Accounting Pronouncements As a company with less than $1.235 billion of revenue during the last fiscal year, the Company qualifies as an EGC as defined in the Jumpstart Our Business Startups Act. This classification allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenues are accounted for in accordance with ASC 606. The Company disaggregates revenue into the following product categories: • Vita Coco Coconut Water —This product category consists of all branded coconut water product offerings under the Vita Coco labels, where the majority ingredient is coconut water. The Company determined that the sale of the products represents a distinct performance obligation as customers can benefit from purchasing the products on their own or together with other resources that are readily available to the customers. For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue. • Private Label —This product category consists of all private label product offerings, which includes coconut water and oil. The Company determined the production and distribution of private label products represents a distinct performance obligation. Since there is no alternative use for these products and the Company has the right to payment for performance completed to date, the Company recognizes the revenue for the production of these private label products over time as the production for open purchase orders occurs, which may be prior to any shipment. • Other —This product category consists of all other products, which includes Runa, Ever & Ever and PWR LIFT product offerings and Vita Coco product extensions beyond coconut water, coconut milk products, and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue. The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers. Disaggregation of Revenue The following table disaggregates net revenue by product type and reportable segment: Three Months Ended March 31, 2023 Americas International Consolidated Vita Coco Coconut Water $ 69,138 $ 9,558 $ 78,696 Private Label 25,050 2,666 27,716 Other 2,584 763 3,347 Total $ 96,772 $ 12,987 $ 109,759 Three Months Ended March 31, 2022 Americas International Consolidated Vita Coco Coconut Water $ 58,855 $ 8,349 $ 67,204 Private Label 23,080 2,765 25,845 Other 2,676 723 3,399 Total $ 84,611 $ 11,837 $ 96,448 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consists of the following: March 31, December 31, Raw materials and packaging $ 4,956 $ 5,771 Finished goods 59,225 78,344 Inventory $ 64,181 $ 84,115 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill, net consist of the following: March 31, December 31, Goodwill $ 7,791 $ 7,791 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The table below details the outstanding balances on the Company’s credit facility and notes payable as of March 31, 2023 and December 31, 2022: March 31, December 31, Notes payable Vehicle loans 43 48 $ 43 $ 48 Current 21 23 Non-current $ 22 25 2020 Credit Facility In May 2020, the Company entered into the five-year credit facility ("2020 Credit Facility") with Wells Fargo Bank, National Association ("Wells Fargo") consisting of a revolving line of credit, which currently provides for committed borrowings of $60,000. As of March 31, 2023 and December 31, 2022, the Company had no outstanding borrowings under its 2020 Credit Facility. The 2020 Credit Facility is collateralized by substantially all of the Company’s assets. In December 2022, the Company amended the 2020 Credit Facility to transition the interest rate from reference to the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). Borrowings on the 2020 Credit Facility bear interest at rates based on either: 1) a fluctuating rate per annum determined to be the sum of Daily Simple SOFR plus a spread defined in the credit agreement (the "Spread") or 2) a fixed rate per annum determined to be the sum of the Term SOFR plus the Spread. The Spread ranges from 1.00% to 1.75%, which is based on the Company’s leverage ratio (as defined in the credit agreement) for the immediately preceding fiscal quarter as defined in the credit agreement. In addition, the Company is currently subject to an unused commitment fee ranging from 0.10% and 0.20% on the unused amount of the line of credit, with the rate being based on the Company’s leverage ratio (as defined in the credit agreement). The borrowings made before the December 2022 amendment bore interest at rates based on either: 1) LIBOR or 2) a specified base rate (determined by reference to the greatest of the prime rate published by Wells Fargo, the federal funds effective rate plus 1.5% and one-month LIBOR plus 1.5%), as selected periodically by the Company. The LIBOR-based loans bore interest at LIBOR plus the Spread. The unused commitment fee prior to amendment was the same. The maturity date on the 2020 Credit Facility is May 12, 2026. Interest expense and unused commitment fee for the 2020 Credit Facility amounted to $15 and $26 for the three months ended March 31, 2023 and 2022, respectively. The 2020 Credit Facility contains certain affirmative and negative covenants that, among other things, limit the Company’s ability to, subject to various exceptions and qualifications: (i) incur liens; (ii) incur additional debt; (iii) sell, transfer or dispose of assets; (iv) merge with or acquire other companies; (v) make loans, advances or guarantees; (vi) make investments; (vii) make dividends and distributions on, or repurchases of, equity; and (viii) enter into certain transactions with affiliates. The 2020 Credit Facility also requires the Company to maintain certain financial covenants including a maximum leverage ratio, a minimum fixed charge coverage ratio, and a minimum asset coverage ratio. As of March 31, 2023, the Company was compliant with all financial covenants. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contingencies: Litigation —The Company may engage in various litigation matters in the ordinary course of business. The Company intends to vigorously defend itself in such matters, based upon the advice of legal counsel, and is of the opinion that the resolution of these matters will not have a material effect on the condensed consolidated financial statements. For any cases for which management believes that it is probable that it will incur a loss and the amount of such loss can be reasonably estimated, a provision for legal settlements will be recorded. As of March 31, 2023 and December 31, 2022, the Company has not recorded any liabilities relating to legal settlements. Business Risk —The Company imports finished goods predominantly from manufacturers located in South American and Southeast Asian countries. The Company may be subject to certain business risks due to potential instability in these regions. Major Customers —The Company’s customers that accounted for 10% or more of total net sales and total accounts receivable were as follows: Net sales Accounts receivable Three Months Ended March 31, March 31, December 31, 2023 2022 Customer A 26 % 33 % 23 % 16 % Customer B 24 % 23 % 20 % 23 % One of the customers acquired less than 5% ownership in the Company upon consummation of the IPO. The same customer also vested in 100,000 restricted stock awards during the period ended March 31, 2023 as discussed in Note 10, Stockholders' Equity. The customer continues to hold less than 5% ownership in the Company as of March 31, 2023. Major Suppliers —The Company’s suppliers that accounted for 10% or more of the Company’s purchases were as follows: Three Months Ended March 31, 2023 2022 Supplier A 17 % 6 % Supplier B 15 % 11 % |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company accounts for derivative instruments in accordance with the ASC Topic 815, Derivatives and Hedging ("ASC 815"). These principles require that all derivative instruments be recognized at fair value on each balance sheet date unless they qualify for a scope exclusion as a normal purchase or sales transaction, which is accounted for under the accrual method of accounting. In addition, these principles permit derivative instruments that qualify for hedge accounting to reflect the changes in the fair value of the derivative instruments through earnings or stockholders’ equity as other comprehensive income on a net basis until the hedged item is settled and recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. The ineffective portion of a derivative instrument’s change in fair value is immediately recognized in earnings. As of March 31, 2023 and December 31, 2022, the Company did not have any derivative instruments that it had designated as fair value or cash flow hedges. The Company is subject to the following currency risks: Inventory Purchases from Brazilian, Malaysian and Thai Manufacturers —In order to mitigate the currency risk on inventory purchases from its Brazilian, Malaysian and Thai manufacturers, which are settled in Brazilian Real ("BRL"), Malaysian Ringgit ("MYR") and Thai Baht ("THB"), the Company's subsidiary, All Market Singapore Pte. Ltd. ("AMS"), enters a series of forward currency swaps to buy BRL, MYR and THB. Intercompany Transactions Between AME and AMS —In order to mitigate the currency risk on intercompany transactions between AME and AMS, AMS enters into foreign currency swaps to sell British Pounds ("GBP"). Intercompany Transactions with Canadian Customer and Vendors —In order to mitigate the currency risk on transactions with Canadian customer and vendors, the Company enters into foreign currency swaps to sell Canadian Dollars ("CAD"). The notional amount and fair value of all outstanding derivative instruments in the condensed consolidated balance sheets consist of the following at: March 31, 2023 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive USD/pay GBP $ 25,820 $ 357 Derivative assets Receive BRL/sell USD 49,619 4,200 Derivative assets Receive USD/pay CAD 4,625 134 Derivative assets Receive THB/sell USD 24,253 78 Derivative assets Liabilities Foreign currency exchange contracts Receive USD/pay EUR $ 2,308 $ (21) Derivative liabilities December 31, 2022 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive USD/pay GBP $ 23,702 $ 1,104 Derivative assets Receive BRL/sell USD 46,301 2,314 Derivative assets Receive USD/pay CAD 4,819 188 Derivative assets Liabilities Foreign currency exchange contracts Receive USD/pay EUR $ 604 $ (7) Derivative liabilities Receive THB/sell USD 21,990 (64) Derivative liabilities The amount and location of realized and unrealized gains and losses of the derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, 2023 2022 Unrealized gain/(loss) on derivative instruments $ 1,213 $ 8,706 Location Unrealized gain/(loss) Unrealized gain/(loss) Foreign currency gain / (loss) $ 1,071 $ 85 Location Foreign currency Foreign currency The Company applies recurring fair value measurements to its derivative instruments in accordance with ASC Topic 820, Fair Value Measurements ("ASC 820"). In determining fair value, the Company used a market approach and incorporates the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable internally developed inputs. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS ASC 820 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. Based upon observability of the inputs used in valuation techniques, the Company’s assets and liabilities are classified as follows: Level 1 —Quoted market prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted market prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes internally developed models and methodologies utilizing significant unobservable inputs. Forward Currency Swap Contracts —The Company’s valuation methodology for forward currency swap contracts is based upon third-party institution data. Contingent Consideration Liability —The Company utilized a probability weighted scenario-based model to determine the fair value of the contingent consideration. The term of the remeasurement period for the contingent consideration ended in December 2022, resulting in no contingent payment as the revenue growth was not achieved. The Company’s fair value hierarchy for those assets (liabilities) measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022, is as follows: Level 1 Level 2 Level 3 Total Forward Currency Contingent March 31, 2023 $ — $ 4,748 $ — $ 4,748 December 31, 2022 $ — $ 3,535 $ — $ 3,535 There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common and Treasury Stock —Each share of common stock entitles its holder to one vote on matters required to be voted on by the stockholders of the Company and to receive dividends, when and if declared by the Company’s Board of Directors. As of March 31, 2023 and December 31, 2022, the Company held 6,206,200 shares in treasury stock. As of March 31, 2023 and December 31, 2022, the Company had 2,830,443 and 2,898,930 shares, respectively, of common stock available for issuance upon the conversion of outstanding stock awards under the 2021 Incentive Award Plan ("2021 Plan"). Warrants —All service and exit warrants expired as of December 31, 2021. As such, there was no warrant activity for the three months ended March 31, 2023. Stock-based Compensation —The stockholders of the Company approved the adoption of the Company’s 2014 Stock Option and Restricted Stock Plan (the “2014 Plan”). The 2014 Plan allowed for a maximum of 8% of the sum of the Available Equity defined as the sum of (i) the total then outstanding shares of common shares and (ii) all available stock options (i.e., granted and outstanding stock options and stock options not yet granted). Under the terms of the 2014 Plan, the Company could grant employees, directors, and consultants stock options and restricted stock awards and had the authority to establish the specific terms of each award, including exercise price, expiration, and vesting. Only stock options were granted under the 2014 Plan. Generally, stock options issued pursuant to the 2014 Plan contain exercise prices no less than the fair value of the Company’s common stock on the date of grant and have a ten-year contractual term. The stockholders of the Company approved the adoption of the 2021 Plan, which was effective after the closing of the Company's initial public offering completed in October 2021. On and after closing of the offering and the effectiveness of the 2021 Plan, no further grants have been made under the 2014 Plan. The Company recognized stock-based compensation expense of $1,297 and $2,078 for the three months ended March 31, 2023 and 2022, respectively, in selling, general, and administrative expenses ("SG&A"). For the restricted stock units ("RSUs") previously granted to a major customer, $865 and $308 was recognized for the three months ended March 31, 2023 and 2022, respectively, as stock-based sales incentive based on guidance in ASC 606 and reflected as a reduction in the transaction price revenue. Option Awards with Service-based Vesting Conditions Most of the stock option awards granted under the 2014 and 2021 Plans vest based on continuous service. The options awarded to the employees have differing vesting schedules as specified in each grant agreement. There were 271,665 new service-based stock option awards granted during the three months ended March 31, 2023. Exercises of stock options during the three months ended March 31, 2023 are disclosed in the Condensed Consolidated Statements of Non-controlling Interests and Stockholders' Equity. Option Awards with Performance and Market-based Vesting Conditions During the three months ended March 31, 2022, certain awards that contained performance-based vesting condition were modified. The modification adjusted the performance condition to allow for 50% of the performance awards to meet the criteria to vest, and no other terms were modified. Since it did not affect any terms that would affect the fair value, and only the number of awards, it is considered an improbable-to-probable modification. The impact of the modification was not material. There were 412,341 new stock option awards granted during the three months ended March 31, 2023 with performance-based vesting conditions, subject to achievement of various performance goals by the end of 2025 and 2026, specifically net sales growth and Adjusted EBITDA targets. Service & Performance based Restricted Stock and Restricted Stock Unit Awards ("RSUs") Restricted stock and RSUs were granted under the 2021 Incentive Award Plan and primarily vest based on continuous service. The RSUs with service-based vesting conditions awarded to the employees have differing vesting schedules as specified in each grant agreement. The RSUs granted to non-employee directors vest in full on the earlier of (i) the day immediately preceding the date of the first Annual Shareholders Meeting following the date of grant and (ii) the first anniversary of the date of grant. During the three months ended March 31, 2022, the Company also granted RSUs that contained performance-based vesting conditions, subject to achievement of various performance goals by the end of 2025 and 2026, specifically net sales growth and Adjusted EBITDA targets. Also included in these awards are $3 million of shares of restricted common stock granted at the time of the initial public offering to entities affiliated with a significant customer, at a price per share granted at the initial public offering price per share of $15.00, or 200,000 restricted shares, in connection with an amendment to extend the distributor agreement term to June 10, 2026. Since the distribution agreement has not been terminated by either party for cause as of March 31, 2023, 50% of the shares were released on March 31, 2023. Assuming the distribution agreement is not terminated by either party for cause, the remaining 50% will be released on March 31, 2024. The grant was accounted for as a stock-based sales incentive based on guidance in ASC 606 and is reflected as a reduction in the transaction price of revenue on the basis of the grant-date fair-value measure in accordance with the stock compensation guidance in ASC 718. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the three months ended March 31, 2023 and 2022, the Company recorded $1,821 and $620, respectively, in income tax expense in its condensed consolidated statements of operations. In assessing the recoverability of its deferred tax assets, the Company continually evaluates all available positive and negative evidence to assess the amount of deferred tax assets for which it is more likely than not to realize a benefit. For any deferred tax asset in excess of the amount for which it is more likely than not that the Company will realize a benefit, the Company establishes a valuation allowance. As of March 31, 2023 and December 31, 2022, there was a $144 liability for income tax uncertainties recorded in the Company's consolidated balance sheets. The Company recognized no interest and penalties related to income tax uncertainties in its consolidated balance sheets or consolidated statement of operations for the three months ended March 31, 2023 and 2022. The Company is subject to income tax examinations by the IRS and various state and local jurisdictions for the open tax years between December 31, 2019 and December 31, 2022. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three months ended March 31, 2023 2022 Numerator: Net income $ 6,705 $ 2,227 Denominator: Weighted-average number of common shares used in earnings per share—basic 56,046,904 55,561,896 Effect of conversion of stock awards 1,304,501 138,492 Weighted-average number of common shares used in earnings per share—diluted 57,351,405 55,700,388 Earnings per share—basic $ 0.12 $ 0.04 Earnings per share—diluted $ 0.12 $ 0.04 The following potentially dilutive securities, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average number of common shares outstanding, as they would be anti-dilutive: Three months ended March 31, 2023 2022 Options to purchase common stock 1,067,435 2,366,716 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company has two operating and reportable segments: • Americas—The Americas segment is comprised primarily of the US and Canada, and derives its revenues from the marketing and distribution of various coconut water and non-coconut water products (e.g., coconut oil and milk). The Company’s Guayusa leaf products (Runa), aluminum bottle canned water (Ever and Ever), and protein infused fitness drink (PWR LIFT) are marketed only in the Americas segment. • International—The International segment is comprised primarily of Europe, Middle East, and Asia Pacific, which includes the Company’s procurement arm and derives its revenues from the marketing and distribution of various coconut water and non-coconut water products. The Company’s Chief Executive Officer is the chief operating decision maker and evaluates segment performance primarily based on net sales and gross profit. All intercompany transactions between the segments have been eliminated. Information about the Company’s operations by operating segment as of March 31, 2023 and 2022 and for the three months ended March 31, 2023 and 2022 is as follows: Three Months Ended March 31, 2023 2022 Net sales $ 109,759 $ 96,448 Americas 96,772 84,611 International 12,987 11,837 Gross profit $ 33,661 $ 19,063 Americas 29,150 16,296 International 4,511 2,767 As of March 31, As of December 31, 2023 2022 Total segment assets $ 207,576 $ 197,757 Americas 160,971 156,588 International 46,605 41,169 Three Months Ended March 31, Reconciliation 2023 2022 Total gross profit $ 33,661 $ 19,063 Less: Selling, general, and administrative expenses 26,957 24,801 Income (loss) from operations 6,704 (5,738) Less: Unrealized gain/(loss) on derivative instruments 1,213 8,706 Foreign currency gain/(loss) 611 (101) Interest income 13 7 Interest expense (15) (27) Income before income taxes 8,526 2,847 Geographic Data: The following table provides information related to the Company’s net sales by country, which is presented on the basis of the location that revenue from customers is recorded: Three Months Ended March 31, 2023 2022 United States $ 90,513 $ 84,611 All other countries(1) 19,246 11,837 Net sales $ 109,759 $ 96,448 ___________ (1) No individual country is greater than 10% of total net sales for the three months ended March 31, 2023 and 2022. The following table provides information related to the Company’s property and equipment, net by country: March 31, December 31, United States $ 679 $ 683 Ecuador 503 503 Singapore 1,522 1,288 All other countries(1) 157 105 Property and equipment, net $ 2,861 $ 2,579 ___________ (1) No individual country is greater than 10% of total property and equipment, net as of March 31, 2023 and December 31, 2022. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS Director Nominee Agreements - On May 24, 2022, two members of the Board of Directors appointed under the Investor Rights Agreement by Verlinvest Beverages SA, a stockholder of the Company, entered into nominee agreements instructing the Company to pay all cash and equity compensation earned in connection with their board of director services to Verlinvest Beverages SA. Based on the aforementioned nominee agreements, RSUs granted to these two directors will be held by them as nominees for Verlinvest Beverages SA and, upon vesting of the RSUs, the shares will be transferred to Verlinvest Beverages SA. The nominee agreements are primarily between the directors and Verlinvest Beverages SA. The Company is a party to this arrangement solely to agree to the manner in which it would satisfy the compensation obligations to these directors. As of March 31, 2023 and December 31, 2022, there is only one current member of the Board of Directors that is subject to this nominee agreement. Distribution Agreement with Shareholder —On October 1, 2019, the Company entered into a distribution agreement with one of its stockholders who holds over 5% ownership in the Company, which extended through December 31, 2022 and has been continued upon the mutual agreement of each party. The distribution agreement granted the stockholder the right to sell, resell, and distribute designated products supplied by the Company within a specified territory. The amount of revenue recognized related to this distribution agreement was $1,590 and $1,332 for the three months ended March 31, 2023 and 2022, respectively. The amounts due from the stockholder in Accounts Receivable, net were $1,248 and $753 as of March 31, 2023 and December 31, 2022, respectively. Amounts payable to the stockholder in Accounts payable were $0 and $38 as of March 31, 2023 and December 31, 2022 respectively. Related to this distribution arrangement, the Company and the stockholder have a service agreement where the Company shares in the compensation costs of the stockholder’s employee managing the China market. The Company recorded $54 and $39 for the three months ended March 31, 2023 and 2022, respectively, in SG&A for this service agreement. |
Assets held for sale
Assets held for sale | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets held for sale | Asset held for sale The asset group held for sale consists of a farm in Ecuador which was the source of Guayusa leaves for our Runa products. Since the Company is able to source Guayusa through alternative means to produce the Runa products, as of September 30, 2022, the Company committed to a plan for disposal through sale. The Company performed a fair value assessment on the asset group held for sale consisting of land, a production plant, equipment and inventory. The Company obtained a valuation of the assets and adjusted the carrying amount down to their fair value less costs to sell, which resulted in a $619 impairment loss recorded in SG&A during the third quarter of 2022. The remaining carrying amount as of March 31, 2023 and December 31, 2022 is listed below. These assets held for sale do not qualify for discontinued operations reporting. Asset held for sale Amount Land $503 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn May 2, 2023, the Company filed a Form S-3 shelf registration statement with the U.S. Securities and Exchange Commission. Under the shelf registration statement, the Company may offer and sell up to $200.0 million in the aggregate of the securities identified in the filing, and the selling security holders may offer and sell up to 26,585,104 shares in the aggregate of common stock, in each case from time to time in one or more offerings. The registration statement has not yet been declared effective and no shares may be offered or sold under the registration statement until it becomes effective. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are presented in accordance with U.S. GAAP. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include all the accounts of the wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates Preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. The most significant estimates in the condensed consolidated financial statements relate to share-based compensation, assessing long-lived assets for impairment, estimating the net realizable value of inventories, the determination of accounts receivables reserve, assessing goodwill for impairment, the determination of the value of trade promotions, and assessing the realizability of deferred income taxes. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s cash and accounts receivable are subject to concentrations of credit risk. The Company’s cash balances are primarily on deposit with banks in the U.S. which are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to $250. At times, such cash may be in excess of the FDIC insurance limit. To minimize the risk, the Company’s policy is to maintain cash balances with high quality institutions, which may include banks, financial institutions, and investment firms, and invest daily or reserve operating cash in money market funds, government securities, bank obligations, municipal securities or other investment vehicles with short-term maturities. Substantially all of the Company’s customers are either wholesalers or retailers of beverages. A material default in payment, a material reduction in purchases from these or any large customers, or the loss of a large customer or customer groups could have a material adverse impact on the Company’s financial condition, results of operations, and liquidity. The Company is exposed to concentration of credit risk from its major customers for which two customers in aggregate represented 50% and 56% of total net sales for the three months ended March 31, 2023 and 2022, respectively. In addition, the two customers in aggregate also accounted for 43% and 39% of total accounts receivable as of March 31, 2023 and December 31, 2022, respectively. The Company has not experienced credit issues with these customers. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ( "ASU 2016-13" ). The new accounting standard introduced the current expected credit losses methodology ("CECL") for estimating allowances for credit losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized costs, including loans and trade receivables. ASU 2016-13 is effective for the Company, as an Emerging Growth Company ("EGC"), for annual and interim reporting periods beginning after December 15, 2022. The Company adopted the standard on January 1, 2023 using the modified retrospective method for all financial assets in scope. The amounts for reporting periods beginning after January 1,2023 are presented under ASC 326 methodology, while prior period amounts continue to be reported in accordance with previously applicable GAAP. As a part of the adoption, the Company selected to apply roll-rate method to estimate current expected credit losses for its accounts receivable population and weighted average remaining maturity ("WARM") method for supplier advances. The difference of $1,070 between the incurred credit loss estimate and current expected credit loss estimate was recorded as cumulative effect adjustment to the Company’s opening retained earnings and reflected on the consolidated balance sheet as of January 1, 2023 as a result of the ASC 326 adoption. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations, or consolidated statements of cash flows. The following table illustrates the impact of ASC 326. As of January 1, 2023 As reported under ASC 326 Pre-ASC 326 adoption Impact of ASC 326 adoption Allowance for credit losses on accounts receivables $ 3,552 $ 2,898 $ 654 Allowance for credit losses on supplier advances 416 — 416 Total $ 3,968 $ 2,898 $ 1,070 Recently Issued Accounting Pronouncements As a company with less than $1.235 billion of revenue during the last fiscal year, the Company qualifies as an EGC as defined in the Jumpstart Our Business Startups Act. This classification allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table illustrates the impact of ASC 326. As of January 1, 2023 As reported under ASC 326 Pre-ASC 326 adoption Impact of ASC 326 adoption Allowance for credit losses on accounts receivables $ 3,552 $ 2,898 $ 654 Allowance for credit losses on supplier advances 416 — 416 Total $ 3,968 $ 2,898 $ 1,070 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table disaggregates net revenue by product type and reportable segment: Three Months Ended March 31, 2023 Americas International Consolidated Vita Coco Coconut Water $ 69,138 $ 9,558 $ 78,696 Private Label 25,050 2,666 27,716 Other 2,584 763 3,347 Total $ 96,772 $ 12,987 $ 109,759 Three Months Ended March 31, 2022 Americas International Consolidated Vita Coco Coconut Water $ 58,855 $ 8,349 $ 67,204 Private Label 23,080 2,765 25,845 Other 2,676 723 3,399 Total $ 84,611 $ 11,837 $ 96,448 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consists of the following: March 31, December 31, Raw materials and packaging $ 4,956 $ 5,771 Finished goods 59,225 78,344 Inventory $ 64,181 $ 84,115 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill, net consist of the following: March 31, December 31, Goodwill $ 7,791 $ 7,791 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Credit Facility and Notes Payable | The table below details the outstanding balances on the Company’s credit facility and notes payable as of March 31, 2023 and December 31, 2022: March 31, December 31, Notes payable Vehicle loans 43 48 $ 43 $ 48 Current 21 23 Non-current $ 22 25 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Concentration of Risk, by Risk Factor | The Company’s customers that accounted for 10% or more of total net sales and total accounts receivable were as follows: Net sales Accounts receivable Three Months Ended March 31, March 31, December 31, 2023 2022 Customer A 26 % 33 % 23 % 16 % Customer B 24 % 23 % 20 % 23 % Three Months Ended March 31, 2023 2022 Supplier A 17 % 6 % Supplier B 15 % 11 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Notional Amount and Fair Value of All Outstanding Derivative Instruments | The notional amount and fair value of all outstanding derivative instruments in the condensed consolidated balance sheets consist of the following at: March 31, 2023 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive USD/pay GBP $ 25,820 $ 357 Derivative assets Receive BRL/sell USD 49,619 4,200 Derivative assets Receive USD/pay CAD 4,625 134 Derivative assets Receive THB/sell USD 24,253 78 Derivative assets Liabilities Foreign currency exchange contracts Receive USD/pay EUR $ 2,308 $ (21) Derivative liabilities December 31, 2022 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive USD/pay GBP $ 23,702 $ 1,104 Derivative assets Receive BRL/sell USD 46,301 2,314 Derivative assets Receive USD/pay CAD 4,819 188 Derivative assets Liabilities Foreign currency exchange contracts Receive USD/pay EUR $ 604 $ (7) Derivative liabilities Receive THB/sell USD 21,990 (64) Derivative liabilities |
Summary of Realized and Unrealized Gains and Losses of the Derivative Instruments | The amount and location of realized and unrealized gains and losses of the derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, 2023 2022 Unrealized gain/(loss) on derivative instruments $ 1,213 $ 8,706 Location Unrealized gain/(loss) Unrealized gain/(loss) Foreign currency gain / (loss) $ 1,071 $ 85 Location Foreign currency Foreign currency |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The Company’s fair value hierarchy for those assets (liabilities) measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022, is as follows: Level 1 Level 2 Level 3 Total Forward Currency Contingent March 31, 2023 $ — $ 4,748 $ — $ 4,748 December 31, 2022 $ — $ 3,535 $ — $ 3,535 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three months ended March 31, 2023 2022 Numerator: Net income $ 6,705 $ 2,227 Denominator: Weighted-average number of common shares used in earnings per share—basic 56,046,904 55,561,896 Effect of conversion of stock awards 1,304,501 138,492 Weighted-average number of common shares used in earnings per share—diluted 57,351,405 55,700,388 Earnings per share—basic $ 0.12 $ 0.04 Earnings per share—diluted $ 0.12 $ 0.04 |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average number of common shares outstanding, as they would be anti-dilutive: Three months ended March 31, 2023 2022 Options to purchase common stock 1,067,435 2,366,716 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information about the Company’s operations by operating segment as of March 31, 2023 and 2022 and for the three months ended March 31, 2023 and 2022 is as follows: Three Months Ended March 31, 2023 2022 Net sales $ 109,759 $ 96,448 Americas 96,772 84,611 International 12,987 11,837 Gross profit $ 33,661 $ 19,063 Americas 29,150 16,296 International 4,511 2,767 As of March 31, As of December 31, 2023 2022 Total segment assets $ 207,576 $ 197,757 Americas 160,971 156,588 International 46,605 41,169 |
Reconciliation of Gross Profit to Income (Loss) Before Income Taxes | Three Months Ended March 31, Reconciliation 2023 2022 Total gross profit $ 33,661 $ 19,063 Less: Selling, general, and administrative expenses 26,957 24,801 Income (loss) from operations 6,704 (5,738) Less: Unrealized gain/(loss) on derivative instruments 1,213 8,706 Foreign currency gain/(loss) 611 (101) Interest income 13 7 Interest expense (15) (27) Income before income taxes 8,526 2,847 |
Revenue from External Customers by Geographic Areas | The following table provides information related to the Company’s net sales by country, which is presented on the basis of the location that revenue from customers is recorded: Three Months Ended March 31, 2023 2022 United States $ 90,513 $ 84,611 All other countries(1) 19,246 11,837 Net sales $ 109,759 $ 96,448 ___________ (1) No individual country is greater than 10% of total net sales for the three months ended March 31, 2023 and 2022. |
Long-lived Assets by Geographic Areas | The following table provides information related to the Company’s property and equipment, net by country: March 31, December 31, United States $ 679 $ 683 Ecuador 503 503 Singapore 1,522 1,288 All other countries(1) 157 105 Property and equipment, net $ 2,861 $ 2,579 ___________ (1) No individual country is greater than 10% of total property and equipment, net as of March 31, 2023 and December 31, 2022. |
Assets held for sale (Tables)
Assets held for sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | These assets held for sale do not qualify for discontinued operations reporting. Asset held for sale Amount Land $503 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) - Subsidiaries | 3 Months Ended |
Mar. 31, 2023 subsidiary | |
Subsidiaries Owned [Line Items] | |
Number of subsidiaries | 9 |
Asia | |
Subsidiaries Owned [Line Items] | |
Number of subsidiaries | 4 |
North America | |
Subsidiaries Owned [Line Items] | |
Number of subsidiaries | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - Customer Concentration Risk - Two Customers | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Net sales | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 50% | 56% | |
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 43% | 39% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Allowance for Credit Loss (Details) - Cumulative-effect adjustment related to the adoption of accounting guidance for credit losses $ in Thousands | Jan. 01, 2023 USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Allowance for credit losses on accounts receivables | $ 2,898 |
Allowance for credit losses on supplier advances | 0 |
Total | 2,898 |
Impact of ASC 326 adoption | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Allowance for credit losses on accounts receivables | 654 |
Allowance for credit losses on supplier advances | 416 |
Total | 1,070 |
As reported under ASC 326 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Allowance for credit losses on accounts receivables | 3,552 |
Allowance for credit losses on supplier advances | 416 |
Total | $ 3,968 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 109,759 | $ 96,448 |
Vita Coco Coconut Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 78,696 | 67,204 |
Private Label | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 27,716 | 25,845 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,347 | 3,399 |
Operating Segments | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 96,772 | 84,611 |
Operating Segments | Americas | Vita Coco Coconut Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 69,138 | 58,855 |
Operating Segments | Americas | Private Label | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 25,050 | 23,080 |
Operating Segments | Americas | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,584 | 2,676 |
Operating Segments | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,987 | 11,837 |
Operating Segments | International | Vita Coco Coconut Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,558 | 8,349 |
Operating Segments | International | Private Label | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,666 | 2,765 |
Operating Segments | International | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 763 | $ 723 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and packaging | $ 4,956 | $ 5,771 |
Finished goods | 59,225 | 78,344 |
Inventory | $ 64,181 | $ 84,115 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 7,791 | $ 7,791 |
Debt - Summary of Credit Facili
Debt - Summary of Credit Facility and Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Line Of Credit Facilities And Notes Payable [Line Items] | ||
2020 Credit facility | $ 0 | $ 0 |
Notes Payable [Abstract] | ||
Notes payable | 43 | 48 |
Current | 21 | 23 |
Non-current | 22 | 25 |
Vehicle loans | ||
Notes Payable [Abstract] | ||
Notes payable | $ 43 | $ 48 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2022 | May 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Credit facility | $ 0 | $ 0 | ||
2020 Credit facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest expense and unused commitment fee | 15,000 | $ 26,000 | ||
2020 Credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | |||
Credit facility | $ 0 | $ 0 | ||
2020 Credit facility | Line of Credit | Fed Funds Effective Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
2020 Credit facility | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
2020 Credit facility | Line of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.10% | |||
2020 Credit facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1% | |||
2020 Credit facility | Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.20% | |||
2020 Credit facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | ||
Estimated litigation liability | $ 0 | $ 0 |
One customer | ||
Concentration Risk [Line Items] | ||
Vested (in shares) | 100,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Concentration of Risk, by Risk Factor (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplier A | Supplier Concentration Risk | Cost of Goods and Service, Product and Service | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17% | 6% |
Supplier B | Supplier Concentration Risk | Cost of Goods and Service, Product and Service | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15% | 11% |
Customer A | Customer Concentration Risk | Net sales | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26% | 33% |
Customer A | Customer Concentration Risk | Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 23% | 16% |
Customer B | Customer Concentration Risk | Net sales | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 24% | 23% |
Customer B | Customer Concentration Risk | Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20% | 23% |
Derivative Instruments - Summar
Derivative Instruments - Summary of Notional Amount and Fair Value of All Outstanding Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Receive USD/pay GBP | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | $ 25,820 | $ 23,702 |
Derivative asset, fair value | 357 | 1,104 |
Receive BRL/sell USD | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 49,619 | 46,301 |
Derivative asset, fair value | 4,200 | 2,314 |
Receive USD/pay CAD | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 4,625 | 4,819 |
Derivative asset, fair value | 134 | 188 |
Receive THB/sell USD | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 24,253 | |
Derivative asset, fair value | 78 | |
Derivative liability, notional amount | 21,990 | |
Derivative liability, fair value | (64) | |
Receive USD/pay EUR | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, notional amount | 2,308 | 604 |
Derivative liability, fair value | $ (21) | $ (7) |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Realized and Unrealized Gains and Losses of the Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Unrealized gain/(loss) on derivative instruments | $ 1,213 | $ 8,706 |
Unrealized gain/(loss) on derivative instruments | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gain/(loss) on derivative instruments | 1,213 | 8,706 |
Foreign currency gain / (loss) | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency gain / (loss) | $ 1,071 | $ 85 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 4,748 | $ 3,535 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | 0 | 0 |
Level 2 | Forward Currency Swaps/Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | 4,748 | 3,535 |
Level 3 | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Treasury stock (in shares) | 6,206,200 | 6,206,200 | |
Stock-based compensation expense | $ 1,297 | $ 2,078 | |
Stock-based sales incentive | $ 865 | $ 308 | |
Service-based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 271,665 | ||
Performance and Market-based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 412,341 | ||
Percentage of vesting of award under share-based payment arrangement | 50% | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value, nonvested | $ 3,000 | ||
Granted (in dollars per share) | $ 15 | ||
Granted RSUs (in shares) | 200,000 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate grant date fair value | $ 2,929 | ||
Service-Based Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted RSUs (in shares) | 155,446 | ||
Performance-Based Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted RSUs (in shares) | 17,742 | ||
Tranche One | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of vesting of award under share-based payment arrangement | 50% | ||
Tranche Two | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of vesting of award under share-based payment arrangement | 50% | ||
2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 2,830,443 | 2,898,930 | |
2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of outstanding stock maximum | 8% | ||
Share based compensation arrangement by share based payment award, Award vesting period | 10 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 1,821,000 | $ 620,000 | |
Unrecognized tax benefits | $ 144,000 | $ 144,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income | $ 6,705 | $ 2,227 |
Denominator: | ||
Weighted-average number of common shares used in earnings per share - basic (in shares) | 56,046,904 | 55,561,896 |
Effect of conversion of stock options and RSUs (in shares) | 1,304,501 | 138,492 |
Weighted-average number of common shares used in earnings per share - diluted (in shares) | 57,351,405 | 55,700,388 |
Earnings per share - basic (in dollars per share) | $ 0.12 | $ 0.04 |
Earnings per share - diluted (in dollars per share) | $ 0.12 | $ 0.04 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase common stock (in shares) | 1,067,435 | 2,366,716 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 109,759 | $ 96,448 | |
Gross profit | 33,661 | 19,063 | |
Assets | 207,576 | $ 197,757 | |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Net sales | 96,772 | 84,611 | |
Gross profit | 29,150 | 16,296 | |
Assets | 160,971 | 156,588 | |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Net sales | 12,987 | 11,837 | |
Gross profit | 4,511 | $ 2,767 | |
Assets | $ 46,605 | $ 41,169 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Gross Profit to Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
Gross profit | $ 33,661 | $ 19,063 |
Selling, general, and administrative expenses | 26,957 | 24,801 |
Income (Loss) from operations | 6,704 | (5,738) |
Unrealized (gain)/loss on derivative instruments | 1,213 | 8,706 |
Foreign currency gain/(loss) | 611 | (101) |
Interest income | 13 | 7 |
Interest expense | (15) | (27) |
Income before income taxes | $ 8,526 | $ 2,847 |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 109,759 | $ 96,448 |
United States | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 90,513 | 84,611 |
All other countries | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 19,246 | $ 11,837 |
Segment Reporting - Long Lived
Segment Reporting - Long Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,861 | $ 2,579 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 679 | 683 |
Ecuador | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 503 | 503 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 1,522 | 1,288 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 157 | $ 105 |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) director | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | May 24, 2022 director | |
Related Party Transaction [Line Items] | ||||
Number of members of the Board of Directors appointed as nominees | director | 1 | 2 | ||
Distribution Agreement With Shareholder | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 1,590 | $ 1,332 | ||
Accounts receivable, related parties, current | 1,248 | $ 753 | ||
Accounts payable, related parties, current | 0 | $ 38 | ||
Service Agreement Related To Distribution Agreement With Shareholder | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, selling, general and administrative expenses from transactions with related party | $ 54 | $ 39 |
Assets held for sale - Narrativ
Assets held for sale - Narrative (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Impairment loss on assets held for sale | $ 619 |
Assets Held For Sale - Schedule
Assets Held For Sale - Schedule of Assets Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Asset held for sale | $ 503 | $ 503 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | May 02, 2023 USD ($) shares |
Subsequent Event [Line Items] | |
Aggregate offering amount, value, maximum | $ | $ 200 |
Aggregate offering amount, shares, maximum (in shares) | shares | 26,585,104 |