Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 11, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001650696 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | Laird Superfood, Inc. | |
Amendment Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-39537 | |
Entity Small Business | true | |
Entity Incorporation, State or Country Code | DE | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Address, Address Line One | 275 W. Lundgren Mill Drive | |
Entity Tax Identification Number | 81-1589788 | |
Entity Address, City or Town | Sisters | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97759 | |
City Area Code | 888 | |
Local Phone Number | 670-6796 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | LSF | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 8,990,904 |
BALANCE SHEET
BALANCE SHEET - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 51,745,417 | $ 57,208,080 |
Accounts receivable, net | 770,155 | 839,659 |
Investment securities available-for-sale | 8,690,523 | 8,706,844 |
Inventory | 7,693,980 | 6,295,898 |
Prepaid expenses and other current assets | 2,902,784 | 2,847,319 |
Deposits | 488,823 | 97,674 |
Total current assets | 72,291,682 | 75,995,474 |
Noncurrent assets | ||
Property and equipment, net | 3,501,718 | 3,513,488 |
Licensing agreement—intangible | 132,100 | 132,100 |
Deferred rent | 2,606,592 | 2,696,646 |
Other assets | 77,922 | 4,992 |
Total noncurrent assets | 6,318,332 | 6,347,226 |
Total assets | 78,610,014 | 82,342,700 |
Current liabilities | ||
Accounts payable | 1,600,645 | 1,315,964 |
Payroll liabilities | 1,012,223 | 722,915 |
Accrued expenses | 857,849 | 704,543 |
Total current liabilities | 3,470,717 | 2,743,422 |
Long-term liabilities | ||
Note payable | 51,000 | 51,000 |
Total long-term liabilities | 51,000 | 51,000 |
Total liabilities | 3,521,717 | 2,794,422 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Common stock, $0.001 par value, 100,000,000 and 9,600,000 shares authorized as of March 31, 2021 and December 31, 2020; 9,285,782 and 8,921,034 issued and outstanding at March 31, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively | 8,921 | 8,893 |
Additional paid-in capital | 112,343,131 | 111,452,346 |
Accumulated other comprehensive income (loss) | (6,083) | 14,207 |
Accumulated deficit | (37,257,672) | (31,927,168) |
Total stockholders' equity | 75,088,297 | 79,548,278 |
Total liabilities, convertible preferred stock and stockholders' equity | $ 78,610,014 | $ 82,342,700 |
BALANCE SHEET (Parenthetical)
BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Common stock par or stated value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 9,600,000 |
Common stock shares issued | 9,285,782 | 9,247,758 |
Common stock shares outstanding | 8,921,034 | 8,892,886 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | ||
Sales, net | $ 7,426,254 | $ 5,483,226 |
Cost of goods sold | (5,559,499) | (3,365,609) |
Gross profit | 1,866,755 | 2,117,617 |
General and administrative | ||
Salaries, wages and benefits | 1,205,854 | 816,172 |
Stock-based compensation | 899,235 | 183,203 |
Professional fees | 343,622 | 182,048 |
Insurance expense | 522,399 | 31,195 |
Office expense | 186,831 | 113,365 |
Occupancy | 56,521 | 53,431 |
Merchant service fees | 106,375 | 56,035 |
Netsuite subscription expense | 55,021 | 26,395 |
Other expense | 267,536 | 137,728 |
Total general and administrative expenses | 3,643,394 | 1,599,572 |
Research and product development | ||
Salaries, wages and benefits | 70,361 | 74,902 |
Product development expense | 162,844 | 57,743 |
Stock-based compensation | 3,567 | 2,192 |
Other expense | 3,915 | 8,478 |
Total research and product development expenses | 240,687 | 143,315 |
Sales and marketing | ||
Salaries, wages and benefits | 633,751 | 746,010 |
Stock-based compensation | 41,389 | 74,495 |
Advertising | 1,681,344 | 936,363 |
General marketing | 710,523 | 309,222 |
Amazon selling fee | 202,276 | 187,571 |
Travel expense | 8,756 | 70,014 |
Other expense | 49,040 | 69,141 |
Total sales and marketing expenses | 3,327,079 | 2,392,815 |
Total expenses | 7,211,160 | 4,135,702 |
Operating loss | (5,344,405) | (2,018,085) |
Other income (expense) | ||
Interest and dividend income | 13,901 | 22,854 |
Total other income | 13,901 | 22,854 |
Loss before income taxes | (5,330,504) | (1,995,231) |
Benefit from income taxes | ||
Net loss attributable to Laird Superfood, Inc. common stockholders | $ (5,330,504) | $ (1,995,231) |
Net loss per share attributable to Laird Superfood, Inc common stockholders: | ||
Basic | $ (0.60) | $ (0.47) |
Diluted | $ (0.60) | $ (0.47) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted | 8,894,495 | 4,281,346 |
STATEMENTS OF COMPREHENSIVE LOS
STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (5,330,504) | $ (1,995,231) | |
Other comprehensive income (loss), net of tax | |||
Change in unrealized gains (losses) on investment securities available-for-sale, net of tax | [1] | (20,290) | 31,090 |
Total other comprehensive income (loss) | (20,290) | 31,090 | |
Comprehensive loss | $ (5,350,794) | $ (1,964,141) | |
[1] | The Company maintains a full valuation allowance related to our net deferred tax assets, primarily due to our historical net loss position. See note 9 for the estimated tax benefit deferred. |
STATEMENTS OF CONVERTIBLE PREFE
STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($) | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Temporary Equity, Balance Begining at Dec. 31, 2019 | $ 6,722,951 | |||||
Temporary Equity, Balance Begining, Shares at Dec. 31, 2019 | 629,186 | |||||
Stockholders' Equity, Balance Begining at Dec. 31, 2019 | $ 14,834,296 | $ 4,188 | $ 27,184,250 | $ (226) | $ (19,076,867) | |
Stockholders' Equity, Balance Begining, Shares at Dec. 31, 2019 | 4,188,558 | |||||
Stock-based compensation | 258,486 | 258,486 | ||||
Withholding tax payments for share-based compensation | 0 | |||||
Stock option exercises | $ 6,030 | 6,030 | ||||
Stock option exercises, Shares | 804 | 804 | ||||
Less: repurchased common stock, Value | $ (20,532) | $ (1) | (20,531) | |||
Less: repurchased common stock, Shares | (1,416) | |||||
Common stock issuances | 1,997,665 | $ 138 | 1,997,527 | |||
Common stock issuances, Shares | 137,770 | |||||
Other comprehensive income, net of tax | 31,090 | 31,090 | ||||
Net loss | (1,995,231) | (1,995,231) | ||||
Temporary Equity, Balance Ending at Mar. 31, 2020 | $ 6,722,951 | |||||
Temporary Equity, Balance Ending, Shares at Mar. 31, 2020 | 629,186 | |||||
Stockholders' Equity, Balance Ending at Mar. 31, 2020 | $ 15,111,804 | $ 4,325 | 29,425,762 | 30,864 | (21,072,098) | |
Stockholders' Equity, Balance Ending, Shares at Mar. 31, 2020 | 4,325,716 | |||||
Temporary Equity, Balance Begining at Dec. 31, 2020 | $ 0 | |||||
Temporary Equity, Balance Begining, Shares at Dec. 31, 2020 | 0 | 0 | ||||
Stockholders' Equity, Balance Begining at Dec. 31, 2020 | $ 79,548,278 | $ 8,893 | 111,452,346 | 14,207 | (31,927,168) | |
Stockholders' Equity, Balance Begining, Shares at Dec. 31, 2020 | 8,892,886 | |||||
Stock-based compensation | 1,010,003 | 1,010,003 | ||||
Withholding tax payments for share-based compensation | (188,793) | (188,793) | ||||
Stock option exercises | $ 151,646 | $ 28 | 151,618 | |||
Stock option exercises, Shares | 28,148 | 28,148 | ||||
Less: repurchased common stock, Value | $ 0 | |||||
Common stock issuance costs | (82,043) | (82,043) | ||||
Other comprehensive income, net of tax | (20,290) | (20,290) | ||||
Net loss | $ (5,330,504) | (5,330,504) | ||||
Temporary Equity, Balance Ending at Mar. 31, 2021 | $ 0 | |||||
Temporary Equity, Balance Ending, Shares at Mar. 31, 2021 | 0 | 0 | ||||
Stockholders' Equity, Balance Ending at Mar. 31, 2021 | $ 75,088,297 | $ 8,921 | $ 112,343,131 | $ (6,083) | $ (37,257,672) | |
Stockholders' Equity, Balance Ending, Shares at Mar. 31, 2021 | 8,921,034 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows used in operating activities | ||
Net loss | $ (5,330,504) | $ (1,995,231) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation | 131,333 | 114,901 |
Amortization | 5,270 | 2,524 |
Loss on disposal of equipment | 2,325 | |
Stock-based compensation | 1,010,003 | 258,486 |
Provision for excess and obsolete inventory | 102,604 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 69,504 | (1,259,099) |
Accrued investment income receivable | (3,969) | 4,847 |
Inventory | (1,500,686) | 271,028 |
Prepaid expenses and other current assets | (55,465) | (357,734) |
Deferred rent | 90,054 | 90,622 |
Deposits | (391,149) | (17,191) |
Accounts payable | 284,681 | 340,271 |
Payroll liabilities | 289,308 | 142,208 |
Accrued expenses | 153,306 | 60,604 |
Net cash from operating activities | (5,143,385) | (2,343,764) |
Cash flows used in investing activities | ||
Purchase of property and equipment | (122,588) | (115,669) |
Purchase of software | (78,200) | |
Proceeds from sale of property, equipment, and software | 700 | |
Net cash from investing activities | (200,088) | (115,669) |
Cash flows from financing activities | ||
Issuance of common stock | 1,997,665 | |
Common stock issuance costs | (82,043) | |
Common stock repurchases | (20,532) | |
Withholding tax payments for share-based compensation | (188,793) | 0 |
Stock options exercised | 151,646 | 6,030 |
Net cash from financing activities | (119,190) | 1,983,163 |
Net change in cash and cash equivalents | (5,462,663) | (476,270) |
Cash and cash equivalents, beginning of period | 57,208,080 | 1,004,109 |
Cash and cash equivalents, end of period | 51,745,417 | 527,839 |
Supplemental disclosures of non-cash information | ||
Unrealized gain (loss) on available-for-sale securities | $ (20,290) | $ 31,090 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies The accompanying unaudited interim financial statements include the accounts of Laird Superfood, Inc. (the “Company” or “Laird Superfood” or “we”), a Delaware corporation. On July 3, 2018, the Company entered into a plan of conversion and was converted from a corporation under the laws of the State of Oregon to a corporation under the laws of the State of Delaware with an updated par value of $0.001 per share of common stock. Nature of Operations Laird Superfood, Inc. is an emerging consumer products platform focused on manufacturing and marketing highly differentiated, plant-based and functional foods from its headquarters in Sisters, Oregon. The core pillars of the Laird Superfood platform are currently Superfood Creamer coffee creamers, Hydrate hydration products and beverage enhancing supplements, and roasted and instant coffees, teas and hot chocolate. The Company was founded in 2015. Initial Public Offering On September 25, 2020, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 3,047,500 shares of its common stock at a public offering price of $22 per share, including 397,500 shares of common stock upon the exercise of the underwriter’s option to purchase additional shares. After underwriting discounts and commissions and other offering costs, net proceeds from the IPO were approximately $61,966,237. Offering costs of approximately $1,350,815 were recognized as a reduction of additional-paid-in Upon the closing of the IPO, all outstanding shares of the Company’s preferred stock converted into shares of common stock, consisting of (i) 162,340 outstanding shares of Series A-1 A-2 B-1 Concurrent Private Placement Danone Manifesto Ventures, PBC (“DMV”) purchased 90,910 shares of our common stock in a private placement immediately subsequent to the consummation of the IPO for a total purchase price of $2,000,020, at a price per share of $22. Basis of Accounting The financial statements include the accounts of the Company. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and rules and regulations of the Securities and Exchange Commission (“SEC”). Operating results include the three months ended March 31, 2021 and 2020. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. Unaudited interim financial information In the opinion of the Company, the accompanying unaudited interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity and cash flows. The balance sheet as of December 31, 2020 was derived from audited annual financial statements. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the fiscal year ending December 31, 2021. The accompanying unaudited interim financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the fiscal year ended December 31, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Although management believes its estimates and assumptions are reasonable when made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions and given the subjective element of the estimates and assumptions made, actual results may differ from estimated results. The most significant estimates and judgments impact allowances for doubtful accounts and returns, inventory obsolescence, valuation allowance for deferred taxes, and fair value of stock-based compensation. Segment reporting The Company currently has one operating segment. In accordance with ASC 280, Segment Reporting Substantially all product sales for the periods provided were derived from domestic sales. See Note 15 for additional information regarding sales by platform within the Company’s single segment. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are highly liquid instruments with an original maturity of three months or less when purchased. For the purposes of the statements of cash flows, the Company includes cash on hand, cash in clearing accounts, cash on deposit with financial institutions, investments with an original maturity of three months or less, and restricted cash in determining the total balance. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. March 31, March 31, Cash and cash equivalents $ 51,503,218 $ 527,839 Restricted cash 242,199 — Total cash, cash equivalents, and restricted cash show in the statement of cash flows $ 51,745,417 $ 527,839 Amounts in restricted cash represent those that are required to be set aside by contractual agreement. On December 3, 2020, the Company entered into an agreement with DMV, which provided the Company $298,103 in funds for the purpose of supporting three COVID-19 Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash on deposit and cash equivalents. At times, cash and cash equivalents balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurable limits. The Company’s investment account (recognized as cash and cash equivalents) is with what the Company believes to be a high-quality broker. The Company has never experienced any losses related to these balances. Non-interest-bearing Accounts Receivable, net Accounts receivable, net consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts. Trade receivables do not bear interest. Receivables are considered past due or delinquent according to contract terms. Management closely monitors outstanding balances and writes off accounts receivable as they are determined uncollectible. The Company provides for estimated losses on accounts receivable based on prior bad debt experience and a review of existing receivables. Based on these factors, management determined no allowance for doubtful accounts was required as of March 31, 2021 and December 31, 2020. Investments Investment securities that are not classified as either held-to-maturity available-for-sale available-for-sale Inventory Inventory is stated at the lower of cost (first-in, first-out) March 31, December 31, Raw Materials and Packaging $ 3,412,135 $ 4,109,706 Finished Goods 4,281,845 2,186,192 Total $ 7,693,890 $ 6,295,898 The Company periodically reviews the value of items in inventory and provides write-offs of inventory based on current market assessments, which are charged to cost of goods sold. For the three months ended March 31, 2021, the Company recorded $102,604 in inventory obsolescence primarily related to the Company’s liquid creamer product line which was launched in the second quarter of 2020. For the three months ended March 31, 2020, there was no inventory obsolescence. As of March 31, 2021 and December 31, 2020, the Company had a total of $1,060,840 and $958,166, respectively, of prepayments for future raw materials inventory, which is included in prepaid expenses on the balance sheets. Property and Equipment, net Property and equipment are valued at cost, net of accumulated depreciation. Expenditures for maintenance and repairs that do not extend the useful life or increase the value of the assets are charged to expense in the period incurred. Additions and betterments are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for depreciation purposes for furniture and factory equipment range from 3 to 10 years. The useful life for leasehold improvements is the lesser of the lease term or the useful life. Construction in progress is not depreciated until such a time that the assets are completed and placed into service. Depreciation expense is allocated to general and administrative expenses and cost of goods sold upon the sale of inventory. For the three months ended March 31, 2021 and 2020, depreciation expense was $131,333 and $114,901, respectively. As of March 31, 2021 and December 31, 2020, the Company had a total of $391,149 and $0, respectively, of deposits for future equipment purchases, which is included in deposits on the balance sheets. Deferred Rent Deferred rent includes tenant improvement costs that were incurred by the landlord, RII Lundgren Mill, LLC, in the build-out Revenue Recognition The Company recognizes revenue in accordance with the five-step model as prescribed by ASC Topic 606 , Revenue from Contracts with a Customer, Cost of Goods Sold Cost of goods sold includes material, labor, and overhead costs incurred in the storage and distribution of products sold in the period. Material costs include the cost of products purchased. Labor and overhead costs consist of indirect product costs, including wages and benefits for manufacturing, planning, and logistics personnel, depreciation, facility costs and freight. Shipping and Handling Costs of shipping and handling related to sales revenue are included in cost of goods sold. Shipping and handling costs totaled $1,238,996 and $634,641 for the three months ended March 31, 2021 and 2020, respectively. Income generated from shipping costs billed through to customers was included in Sales, net in the statements of operations. Shipping income totaled $25,659 and $151,551 for the three months ended March 31, 2021 and 2020, respectively. Research and Product Development Amounts spent on research and development activities are expensed as incurred as research and product development expense on the statements of operations. Research and product development expense was $240,687 and $143,315 for the three months ended March 31, 2021 and 2020, respectively. Advertising Advertising and marketing costs are expensed when incurred. Advertising and marketing expenses for the three months ended March 31, 2021 and 2020 was $2,391,867 and $1,245,585, respectively. Income Taxes Income taxes provide for the tax effects of transactions reported in the financial statements and consist of income taxes currently due and deferred tax assets and liabilities. The Company may also be subject to interest and penalties from taxing authorities on underpayment of income taxes. In such an event, interest and penalties are included in income tax expense. Deferred tax assets and liabilities are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets (use of different depreciation methods and lives for financial statement and income tax purposes) and net operating losses. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Due to the historical net loss position of the Company, the Company recorded a full deferred tax valuation allowance of $8,953,186 and $7,563,110 as of March 31, 2021 and December 31, 2020, respectively. Repurchased Stock Management presents repurchased stock (at cost) as a reduction in stockholders’ equity to reflect the historical stock repurchase transactions more clearly. There were no stock repurchase transactions for the three months ended March 31, 2021. There were stock repurchases of $20,532 in the three months ended March 31, 2020. Stock Incentive Plan The compensation cost relating to share-based payment transactions is recognized in the financial statements. The cost is measured based on the grant date fair value of the equity or liability instruments issued. Compensation cost for all employee stock awards is calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost for all consultant stock awards is calculated and recognized over the consultant’s service period based on the grant date fair value of the equity or liability instruments issued. Upon exercise of stock option awards or vesting of restricted stock units, recipients are issued shares of common stock. Pre-vesting Earnings per Share Basic earnings per share is computed on the basis of the weighted average number of shares of common stock that were outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential common stock and preferred stock had been issued and are calculated under the treasury stock method. Due to the Company’s net loss, all stock options and convertible preferred stock are anti-dilutive and excluded. Stock Split The Company’s board of directors and stockholders approved a 2-for-1 2-for-1 Warrants Issued and detachable stock warrants are classified as equity or liability instruments based on the specific terms of the underlying warrant agreement. In circumstances where debt or equity is issued with detachable warrants, the proceeds from issuance are allocated to each instrument based on an acceptable method, which generally involves determining the fair value of one or more of the instruments. In conjunction with the Company’s initial public offering, the warrant outstanding was cancelled. See additional information in Note 11. License Agreement – Intangible Asset On August 3, 2015, the Company entered into a license agreement with the Company’s co-founder On May 2, 2018, the Company entered into a license agreement with Gabrielle Reece, who is married to Mr. Hamilton (the “GR License”). Pursuant to the GR License, Ms. Reece granted the Company rights to her name, signature, voice, picture, image, likeness and biographical information commencing on July 1, 2015. This contribution, which is reported on the balance sheets as of March 31, 2021 and December 31, 2020, was valued at $100 based on the consideration exchanged. The Company has determined that the intangible asset associated with the GR License has an indefinite life, as there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company. Please see Note 14 for more information on the Company’s related party transaction with Ms. Reece. On November 19, 2018, the Company executed a License and Preservation Agreement with Mr. Hamilton and Ms. Reece which superseded the predecessor license agreements with both individuals. The agreement added specific terms related to noncompetition and allowable usage of the property under the license. No additional consideration was exchanged in connection with the agreement and the life of the agreement was set at 100 years. On May 26, 2020, the Company executed a License and Preservation Agreement with Mr. Hamilton, and Ms. Reece (the “2020 License”), which superseded the predecessor license and preservation agreement with both individuals. Among other modifications, the agreement (i) modified certain approval rights of Mr. Hamilton and Ms. Reece for use of their respective images, signatures, voices, and names (other than those owned by the Company), rights of publicity and common law and statutory rights to the foregoing in the Company’s products, (ii) modified certain assignment, change of control and indemnification provisions, and (iii) granted the Company the right to extend the term of the agreement for additional ten-year one-hundred Employee Benefit Plan The Company sponsors a defined contribution 401(k) plan (the “401(k) plan”) for all employees 18 years or older. The 401(k) plan was initiated on July 1, 2018. Employee contributions may be made on a before-tax JOBS Act Accounting Election The Company qualifies as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. An emerging growth company can elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. Currently, the Company has elected to file as an emerging growth company defined under the JOBS Act, and as such, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Adopted Accounting Pronouncements There were no new accounting pronouncements adopted in the three months ended March 31, 2021 and 2020, respectively. Recently Issued Accounting Pronouncements In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), right-of-use 2016-02 right-of-use In June 2016, the FASB issued ASU No. 2016-13, 2018-19 2019-04 2019-05 2019-11 2020-02 2020-03 available-for-sale 2016-13 Reclassification of Prior Period Presentation Certain prior period amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or cash flows. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before the financial statements are available to be issued. The Company has evaluated events and transactions subsequent to March 31, 2021 for potential recognition of disclosure in the financial statements. On May 3, 2021, the Company entered into a definitive agreement to purchase all of the outstanding membership interest units in Picky Bars, LLC (“Picky Bars”), innovators in the healthy snack industry focused on nutritionally balanced, real-food products to fuel performance, for a cash-free, debt-free purchase price of $10,053,142 in cash, subject to customary working capital adjustments and 53,133 shares of Company common stock, subject to certain vesting conditions. The transaction closed simultaneously with execution of the agreement. Because the acquisition occurred subsequent to March 31, 2021, no results of operations of Picky Bars are included in our condensed statements of operations for the three months ended March 31, 2021. It is currently impractical to disclose a preliminary purchase price allocation, or pro forma financial information combining both entities as of the earliest period presented in these financial statements. Operations have continued with Picky Bars’ previous management and workforce at the Oregon facilities. The Company continues to operate as one segment. The acquisition will be accounted for in accordance with ASC 805, Business Combinations |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 2. Prepaid Expenses and Other Current Assets The following table presents the components of prepaid expenses and other current assets as of March 31, 2021 and December 31, 2020: March 31, December 31, Prepaid insurance $ 1,060,840 $ 1,446,189 Prepaid inventory 943,083 958,166 Prepaid subscriptions and license fees 389,431 225,567 Prepaid advertising 310,700 — Prepaid, other 141,169 152,323 Other current assets 57,561 51,111 Prepaid consulting — 13,963 $ 2,902,784 $ 2,847,319 |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities | 3. Investment securities Investment securities as of March 31, 2021 and December 31, 2020 consisted of the following: Amortized cost Gross unrealized Gross unrealized Estimated March 31, 2021 Federal agency bonds – mortgage-backed $ 8,696,606 $ 586 $ (6,669 ) $ 8,690,523 Total investment securities available-for-sale $ 8,696,606 $ 586 $ (6,669 ) $ 8,690,523 Amortized cost Gross unrealized Gross unrealized Estimated December 31, 2020 Federal agency bonds – mortgage-backed $ 8,692,637 $ 14,207 $ — $ 8,706,844 Total investment securities available-for-sale $ 8,692,637 $ 14,207 $ — $ 8,706,844 The amortized cost and estimated fair value of investment securities as of March 31, 2021, by contractual maturity, are shown below: Available-for-sale March 31, 2021 Amortized cost Estimated Due after one year through five years $ 8,696,606 $ 8,690,523 Total investment securities available-for-sale $ 8,696,606 $ 8,690,523 Investment securities with an estimated fair value of $8,690,523 and $8,706,844 as of March 31, 2021 and December 31, 2020, respectively, were pledged to secure our revolving line of credit. See Note 5 for additional information. The Company recorded no sales or maturities of available for sale securities during the three months ended March 31, 2021 and 2020. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Factors used in determining the fair value of our assets and liabilities are summarized into three broad categories: • Level 1 – quoted prices in active markets for identical securities as of the reporting date; • Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and • Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize assets subject to fair value measurements: Fair Value as of March 31, 2021 Level 1 Level 2 Level 3 Federal agency bonds - mortgage-backed $ — $ 8,690,523 $ — Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Federal agency bonds - mortgage-backed $ — $ 8,706,844 $ — The Company believes the carrying amounts of Cash and cash equivalents, Accounts receivable, Prepaid expenses and other current assets, Deposits, Other Assets, Accounts payable, Payroll liabilities and Accrued expenses are a reasonable approximation of the fair value of those financial instruments because of the nature of the underlying transactions and the short-term maturities involved. The Company believes that fair values of U.S. Agency Bonds issued by the Federal Home Loan Mortgage Corporation are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. agency bonds are included in the Level 2 fair value hierarchy. As of December 31, 2020, the Company classified fixed assets as held for sale which was included in Level 3 fair value. |
Revolving Lines of Credit
Revolving Lines of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Lines of Credit | 5. Revolving Lines of Credit On February 5, 2019, the Company entered into a revolving line of credit with First Interstate Bank (“FIB”) in a principal amount not exceeding $5,000,000. The line of credit is secured by the Company’s investment account held at FIB. The outstanding amounts under the line of credit have an interest rate calculated as LIBOR plus 2.0% per annum until paid in full. The loan agreement was renewed by the Company on March 1, 2021 and has a maturity date of February 5, 2023. The balance on the line of credit was $0 as of March 31, 2021 and December 31, 2020. Management was in compliance with all financial covenants as of March 31, 2021 and December 31, 2020. On August 10, 2017, the Company entered into a revolving line of credit with East Asset Management, LLC (“East”) in a principal amount not exceeding the lesser of the borrowing base or $3,000,000. Upon the mutual agreement of the Company and East, the primary revolving line of credit may be expanded to $10,000,000, subject to an increase in the borrowing base. The borrowing base is comprised of (a) up to 90% of eligible accounts receivable aged 90 days or less from due date utilizing the average of a trailing three months of actual book value, plus (b) up to 90% of inventory and prepaid inventory book values utilizing the average of a trailing three months of actual book value. The outstanding amounts under the line of credit have a fixed interest rate of 15% per annum until paid in full and the line of credit has a maturity date of August 10, 2022. In the event of default, the interest rate would increase to 20% while such default exists. The line of credit is secured by a security interest in accounts receivable and inventory. The balance on the line of credit was $0 as of both March 31, 2021 and December 31, 2020. Management was in compliance with all financial covenants as of March 31, 2021 and December 31, 2020. A secondary line of credit with East in an amount up to $200,000 is available to the Company, which is not subject to the requirements of the borrowing base. The secondary line of credit is secured by a security interest in the Company’s accounts receivable and inventory. The secondary line is available with the same draw and payback conditions as the primary line. The balance on the secondary line of credit was $0 as of both March 31, 2021 and December 31, 2020. East was also granted a right of first refusal on any future equity offerings by the Company to purchase up to 20% of equity in any such offerings at a 20% price per share discount, excluding (a) shares representing, in the aggregate, not more than five percent of the Company’s issued and outstanding capital stock on a fully-diluted basis, issued to employees, consultants or directors pursuant to incentive plans; (b) shares issued for consideration other than cash pursuant to a merger, consolidation, strategic alliance, acquisition or similar business combination; (c) shares issued in connection with any distribution dividend, conversion or recapitalization; (d) shares issued pursuant to any bona fide arms’ length equipment loan or leasing agreement, real property leasing agreement, or debt financing from a financial institution; (e) shares issued in connection with strategic transactions involving the Company and other entities, such as joint ventures, manufacturing, marketing or distribution agreements (provided that in the case of clauses (d) and (e), such issuance represents ten percent or more of the Company’s issued and outstanding capital stock on a fully-diluted basis); and (f) shares issued pursuant to a registration statement filed under the Securities Act of 1933, as amended, in connection with an initial public offering. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 6. Long-term Debt The following table presents the components of long-term debt: March 31, December 31, Forgivable loan, City of Sisters $ 51,000 $ 51,000 Long-term debt $ 51,000 $ 51,000 City of Sisters On May 30, 2017, the Company entered into a forgivable loan agreement with the City of Sisters in the amount of $51,000. This forgivable loan was issued to help the Company expand its business operations in the city of Sisters, Oregon through eligible jobs. The Company had until May 30, 2020 to create jobs for 30 full-time employees with an average annual salary of $40,000 per person, and, once created and filled, the Company must maintain those jobs for an additional period of three years for the loan to be converted to a grant. If the requirements are not met, the Company is required to pay the loan in full, including interest of 8 percent per annum on the unpaid principal amount. The Company created the eligible jobs as of April 1, 2018. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, Net Property and equipment, net is comprised of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, Factory equipment $ 2,749,057 $ 2,668,839 Land 947,394 947,394 Furniture and office equipment 531,232 532,116 Leasehold improvements 276,553 259,504 Construction in progress 16,666 — 4,250,902 4,407,853 Accumulated depreciation (1,019,184 ) (894,365 ) Property and equipment, net $ 3,501,718 $ 3,513,488 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies The Company currently leases its warehouse space under a commercial lease with RII Lundgren Mill, LLC, dated March 1, 2018. The lease commenced March 1, 2018 with monthly payments of $6,475, to escalate after 24 months by the lesser of 3% or the Consumer Price Index (“CPI”) adjustment. The initial lease term is ten years, and the Company has the option to renew the lease for two additional five-year periods. The landlord has paid for many tenant improvements and the Company has committed to reimbursing the landlord, in additional rents, for specific improvements. On November 20, 2018, the Company completed the reimbursement of $797,471. The Company also issued the landlord 2,000 stock options on April 15, 2018 with a strike price of $7.50 per share in conjunction with this lease agreement. The Company executed a second lease for additional warehouse and office space under a commercial lease with RII Lundgren Mill, LLC, dated December 17, 2018. The lease commenced on July 1, 2019 with monthly payments of $12,784, to escalate after 24 months by the lesser of 3% or the CPI adjustment. The initial lease term is ten years, and the Company has the option to renew the lease for two additional five-year periods. The landlord paid for many tenant improvements and the Company committed to reimbursing the landlord, in additional rents, for specific improvements. On December 20, 2018, the Company completed the initial reimbursement of $1,202,529. The Company made the final reimbursement in the amount of $1,399,001 on December 31, 2019. On May 26, 2019, the Company executed and commenced an agricultural license agreement for the lease of agricultural land in Hanalei, Hawaii with PRW Princeville Development Company LLC (the “Hanalei Agricultural License”). Total monthly payments were or eight percent of total monthly gross sales of the business done and/or generated on, in, into or from the premises. The initial lease term was five years, with one option to extend the term by five years. The agreement was subsequently amended on September 19, 2019 to include a termination clause if the storefront and property in the Hanalei, Hawaii retail lease, discussed below, is not executed. The amendment also expanded the permitted access to include access through other property to the public roadway. On November 3, 2020, the Company and PRW Princeville Development Company LLC entered a termination and release agreement, terminating the Hanalei Agricultural License effective as of October 30, 2020. On May 26, 2019, the Company executed a license agreement with PRW Princeville Development Company LLC for storefront and property in Hanalei, Hawaii (the “Hanalei Retail License”). Initially, total monthly payments were or eight percent of total monthly gross sales of the business done and/or generated on, in, into or from the property. The initial lease term was five years, with one option to extend the term by five years. The agreement commenced upon receipt of applicable permits. The agreement was subsequently amended on September 19, 2019 to extend the initial permitting period from January 1, 2020 to July 1, 2020, and the payment terms to include the monthly minimum lease payment due the first of the month, with a reconciliation to gross sales in the subsequent month. The agreement was subsequently amended on July 23, 2020 to extend the initial permitting period from July 1, 2020 to April 15, 2021. On November 3, 2020, the Company and PRW Princeville Development Company LLC entered a termination and release agreement, terminating the Hanalei Retail License effective as of October 30, 2020. On of January 1, 2021, the Company entered into a lease agreement with PX2, LLC (“PX2”) for warehousing, distribution, and related industrial purposes. Under this agreement, the cost of rent which the Company will pay to PX2 is solely the reimbursement of utilities relating to the Company’s use (i.e., electric, janitorial, insurance, and other bills, which are estimated to be de minimis and not greater than $1,000 per month). This lease expires on December 31, 2021. The following table sets forth the amounts of our significant contractual obligations and commitments with definitive payment terms as of March 31, 2021: Payments Due by Period Operating (1) Note Total 2021 $ 178,997 $ 51,000 $ 229,997 2022 244,622 — 244,622 2023 251,960 — 251,960 2024 259,519 — 259,519 2025 267,305 — 267,305 Thereafter 863,932 — 863,932 $ 2,066,335 $ 51,000 $ 2,117,335 (1) Operating lease obligations related to our manufacturing facility leases dated March 1, 2018 and December 17, 2018. Rent expense is allocated to general and administrative expenses and cost of goods sold upon the sale of inventory. Rent expense for the three months ended March 31, 2021 and 2020 was $251,090 and $172,180, respectively. |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | 9. Deferred Tax Assets and Liabilities The Company had a tax net loss for the three months ended March 31, 2021 and 2020, and therefore expects no assessment of income taxes for such periods. Additionally, the net deferred tax assets are fully allowed for as of March 31, 2021 and December 31, 2020. Due to the full valuation allowance during 2020 and as of March 31, 2021 there was no provision for, or benefit from, income taxes reported for the three months ended March 31, 2021 and 2020. The Company’s deferred tax assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Noncurrent deferred tax assets: Federal net operating loss carryforwards $ 6,385,696 $ 5,332,738 State net operating loss carryforwards 2,548,054 2,112,119 Federal depreciation and amortization 346,060 458,203 State depreciation and amortization 166,329 213,359 Accrued—PTO 80,283 75,702 Other 137,996 106,526 Total noncurrent deferred tax assets 9,664,418 8,298,647 Noncurrent deferred tax liabilities: Federal depreciation and amortization $ — $ — State depreciation and amortization — — Deferred rent asset 711,232 735,537 Total noncurrent deferred tax liabilities 711,232 735,537 Net noncurrent deferred tax assets $ 8,953,186 $ 7,563,110 Valuation allowance (8,953,186 ) (7,563,110 ) Total net noncurrent deferred tax assets $ — $ — The Company assesses its deferred tax assets and liabilities to determine if it is more likely than not they will be realized; if not, a valuation allowance is required to be recorded. Based on this guidance, the Company provided a valuation allowance for the full amount. The net increase in the valuation allowance for deferred tax assets and liabilities for the three months ended March 31, 2021 and December 31, 2020 was $1,390,076 and $977,988, respectively. This valuation allowance included the estimated tax asset of $1,277 related to the unrealized loss on investment securities available-for-sale GAAP requires management to evaluate and report information regarding its exposure to various tax positions taken by the Company. The Company has determined whether there are any tax positions that have met the recognition threshold and has measured the Company’s exposure to those tax positions. Management believes that the Company has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. U.S. and state jurisdictions have statutes of limitations that generally range from 3 to 5 years. |
Stock Incentive Plan
Stock Incentive Plan | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plan | 10. Stock Incentive Plan The Company adopted an incentive plan (the “2020 Omnibus Incentive Plan”) on September 22, 2020, to provide for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to Company employees, employees of the Company’s affiliates, non-employee shares under the 2020 Omnibus Incentive Plan. Previously, the Company had adopted its 2018 Equity Incentive Plan and 2016 Stock Incentive Plan (together with the 2020 Omnibus Incentive Plan, the “Stock Incentive Plans”), under which the Company had issued stock options and restricted stock units. Following the effective date of the 2020 Omnibus Incentive Plan, no additional awards may be made under the 2018 Equity Incentive Plan or 2016 Stock Incentive Plan. The Stock Incentive Plans were established to provide eligible individuals with an incentive to contribute to the Company’s success and to operate and manage the Company’s business in a manner that will provide for its long-term growth and profitability and that will benefit the Company’s shareholders and other stakeholders, including employees and customers. The Stock Incentive Plans are also intended to provide a means of recruiting, rewarding, and retaining key personnel. The Stock Incentive Plans prescribe various terms and conditions for the award of options and the total number of shares authorized for this purpose. For options, the strike price is equal to the fair market value of the Company’s stock price at the date of grant. Generally, options become exercisable based on years of service and vesting schedules, and expire after (i) a period of ten years from the date of grant, (ii) three months following the date of termination of employment from the Company, (iii) one year following the date of termination from the Company by reason of death or disability, (iv) the date of termination of employment for cause, or (v) the fifth anniversary of the date of the grant if it is held by a 10 percent or greater stockholder. The following table summarizes the Company’s stock option activity during the three months ended March 31, 2021 and 2020: March 31, 2021 Options Activity Weighted Weighted Average Aggregate Balance at January 1, 2021 887,640 $ 9.65 6.42 $ 33,433,274 Granted 44,068 45.53 Exercised/released (28,148 ) 6.16 Cancelled/forfeited (2,750 ) 11.71 Balance at March 31, 2021 900,810 $ 11.42 6.35 $ 23,488,929 Exercisable at March 31, 2021 543,598 $ 7.55 5.19 $ 16,264,671 March 31, 2020 Options Activity Weighted Weighted Average Aggregate Balance at January 1, 2020 788,528 $ 8.42 7.17 $ 4,799,381 Granted 44,000 14.50 Exercised/released (804 ) 7.50 Cancelled/forfeited (584 ) 9.00 Balance at March 31, 2020 831,140 $ 8.74 7.07 $ 4,790,541 Exercisable at March 31, 2020 461,032 $ 6.31 5.63 $ 3,779,313 The stock-based compensation expense is recognized ratably over the requisite service period for all awards. As a result of applying the provisions of ASC 718, “Compensation- Stock Compensation” (“ASC 718”), the Company recognized stock compensation expense of $1,010,003 and $258,486 for the three months ended March 31, 2021 and 2020, respectively. In the three months ended March 31, 2021 and 2020, there were $188,793 and $0, respectively, of payroll taxes withheld from stock-based compensation which were remitted directly to the tax authorities on the behalf of the recipients of the awards. As of March 31, 2021 and December 31, 2020, there was $2,655,329 and $1,990,834, respectively, of total unrecognized compensation cost related to non-vested During the three months ended March 31, 2021, we non-vested During the three months ended March 31, 2021, we market-based stock units (“MSUs”) to employees based on the agreed upon amounts in their respective market-based restricted stock unit agreements. As a result of applying the provisions of ASC 718 to these issuances we recorded stock-based compensation expense of for the three months ended March 31, 2021. These MSUs vest upon the 30-day and respectively, of total unrecognized compensation cost related to non-vested years. We estimate the grant-date fair value of the MSUs using a Monte Carlo simulation which requires assumptions for expected volatility, risk-free rate of return and dividend yield. Expected volatilities within the index are derived using historical volatilities of a selected peer group over a period equal to the length of the performance period. We base the risk-free rate of return on the yield of a zero-coupon dividend rate. Compensation expense for these PSUs is recognized over the requisite service period regardless of whether the market conditions are satisfied. ASC 718 requires the use of the fair-value-based method for measuring the value of stock-based compensation. We estimate the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model, the MSUs on the grant date using a Monte Carlo simulation, and each restricted stock unit is estimated using the fair value of the Company’s stock on the date of grant. The estimated fair value of each grant of stock options awarded during the three months ended March 31, 2021 and 2020 was determined using the following assumptions: • Expected Term. • Risk-free Interest Rate. • Dividend Yield. 0 • Expected Volatility The inputs and assumptions used to estimate the fair value of share-based payment awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different inputs and assumptions, the Company’s share-based compensation expense could different For the three months ended March 31, 2021 and 2020, the grant-date fair For the Three Months Ended 2021 2020 Weighted-average expected volatility 51.92 % 68.25 % Weighted-average expected term (years) 6.25 6.25 Weighted-average expected risk-free interest rate 0.63 % 1.19 % Dividend yield 0.00 % 0.00 % Weighted-average fair value of options granted $ 21.50 $ 18.10 |
Preferred Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2021 | |
Preferred Stock Disclosure [Abstract] | |
Preferred Stock | 11. Preferred Stock On September 25, 2020, the Company completed its IPO in which the Company issued and sold 3,047,500 shares of its common stock at a public offering price of $22 per share. Upon the closing of the IPO, all outstanding shares of the Company’s preferred stock converted into shares of common stock, consisting of (i) 162,340 outstanding shares of Series A-1 A-2 B-1 As of March 31, 2021 and December 31, 2020, the Company is authorized to issue 5,000,000 shares of preferred stock, par value $0.001 per share, and there were no shares of preferred stock issued or outstanding. Series A-1 A-2 Effective November 19, 2018, the Company executed a capital transaction of $25,000,000 with a private investor, with $15,000,000 funded at the closing date and an additional $10,000,000 to be funded one year following the execution. The additional tranche was determined to be embedded in the initial agreement and not subject to bifurcation accounting. The investing entity received Series A-1 In conjunction with this equity infusion, in November and December 2018, the Company further sold to existing stockholders an additional $7,000,000 of shares of Series A-1 A-2 All shares of Series A-1 A-2 A-1 A-2 A-1 A-2 Shares of Series A-2 paid-in-capital On November 18, 2019, the Company negotiated the repurchase of 609,013 shares of Series A-1 A-1 Series B-1 B-2 Effective April 13, 2020, the Company completed a private placement to DMV for 383,142 shares of its Series B-1 B-1 B-1 B-1 In connection with the closing of the private placement of Series B-1 B-1 In accordance with ASC 480, the Company recorded the Series B-1 paid-in-capital The discount was initially amortized as a deemed discount over approximately 11.5 months, which is estimated based on the expected timing of a warrant exercisability trigger and the customary lock-up |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 12. Earnings per Share Basic earnings (loss) per share is determined by dividing net loss attributable to Laird Superfood, Inc. common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is similarly determined, except that the denominator is increased to include the number of additional common and preferred shares that would have been outstanding if all dilutive potential common and preferred shares had been issued. Dilutive potential common and preferred shares consist of employee stock options and restricted stock units. The dilutive effect of employee stock options, restricted stock units, and convertible preferred stock issued by the Company and are calculated using the treasury stock method. The weighted average shares outstanding included 1,000 and zero shares that are considered outstanding, but unissued as of March 31, 2021 and 2020, respectively, for unpaid equity share bonuses. Basic earnings per share is reconciled to diluted earnings per share in the following table: Three Months Ended 2021 2020 Net loss attributable to Laird Superfood, Inc. common stockholders $ (5,330,504 ) $ (1,995,231 ) Weighted average shares outstanding- basic 8,894,495 4,281,346 Dilutive securities — — Weighted average shares outstanding- diluted 8,894,495 4,281,346 Common stock equivalent shares excluded due to anti-dilutive effect 1,169,237 1,460,582 Basic and diluted: Net loss per share (basic) $ (0.60 ) $ (0.47 ) Net loss per share (diluted) $ (0.60 ) $ (0.47 ) |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 13. Concentrations The Company had 41% of trade accounts receivable from two customers as of March 31, 2021. The Company had 67% of trade accounts receivable from two customers as of March 31, 2020. The Company had 62% of accounts payable due to two vendors as of March 31, 2021. The Company had 55% of accounts payable due to two vendors as of March 31, 2020. The Company sold a substantial portion of products to two customers (29%) for the three months ended March 31, 2021. As of March 31, 2021, the amount due from the customers included in accounts receivable was $486,729. The Company sold a substantial portion of products to one customer (32%) for the three months ended March 31, 2020. As of March 31, 2020, the amount due from this customer included in accounts receivable was $799,842. The Company purchased a substantial portion of products from one supplier (51%) for the three months ended March 31, 2021, and from two suppliers (66%) for the three months ended March 31, 2020. In addition, our top suppliers are in a similar geographic area, which increases the risk of significant supply disruptions from local and regional events. Vietnam, Indonesia, and Sri Lanka geographically accounted for approximately 62 |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party | 14. Related Party FASB ASC Topic 850, Related Party Disclosures, requires that information about transactions with related parties that would make a difference in decision making shall be disclosed so that users of the financial statements can evaluate their significance. The Company conducts business with suppliers and service providers who are also stockholders of the Company. From time to time, service providers are offered shares of common stock as compensation for their services. Shares provided as compensation are calculated based on the fair value of the service provided and the most recent post-IPO market price per share. Additional material related party transactions are noted below. License Agreements On May 26, 2020, the Company executed a License and Preservation Agreement which superseded the predecessor license and preservation agreement with both Mr. Hamilton and Ms. Reece. Among other modifications, the agreement (i) modified certain approval rights, (ii) modified certain assignment, change of control and indemnification provisions, and (iii) granted the Company the right to extend the term of the agreement for additional ten-year one-hundred-year Concurrent Private Placement DMV COVID-19 No-Charge On of January 1, 2021, the Company entered into a lease agreement with PX2, LLC (“PX2”) for warehousing, distribution, and related industrial purposes. Under this agreement, the cost of rent which the Company will pay to PX2 is solely the reimbursement of utilities relating to the Company’s use (i.e., electric, janitorial, insurance, and other bills, which are estimated to be de minimis). Paul Hodge, CEO, President, and Director of the Company is a member of PX2. This contract is expressly intended to provide no individual benefit to such individual, with the Company only responsible for incremental costs due to the Company’s use of the property, otherwise the property is utilized without obligation to the Company, as a gratis convenience by PX2. This lease expires on December 31, 2021. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 15. Revenue Recognition The Company’s primary source of revenue is sales of coffee creamers, hydration and beverage enhancing supplements, and coffee, tea and hot chocolate products. The Company recognizes revenue when control of the promised good or service is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. Each delivery or shipment made to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms. Additionally, the Company estimates the impact of certain common practices employed by us and other manufacturers of consumer products, such as scan-based trading, product rebate and other pricing allowances, product returns, trade promotions, sales broker commissions and slotting fees. These estimates are recorded at the end of each reporting period. In accordance with ASC Topic 606, the Company disaggregates net sales from contracts with customers based on the characteristics of the products sold: Three Months Ended March 31, 2021 2020 $ % $ % Coffee Creamers $ 5,021,908 68 % $ 4,019,362 73 % Hydration and Beverage Enhancing Supplements 1,064,576 14 % 858,707 16 % Coffee, Tea, and Hot Chocolate Products 1,900,832 26 % 740,572 14 % Other 359,321 5 % 59,590 1 % Gross Sales 8,346,637 113 % 5,678,231 104 % Shipping income 25,659 0 % 151,551 3 % Returns and discounts (946,042 ) (13 %) (346,556 ) (7 %) Sales, net $ 7,426,254 100 % $ 5,483,226 100 % The Company generates revenue through three channels: online, wholesale, and food service: Three Months Ended March 31, 2021 2020 $ % $ % Online $ 4,362,407 59 % $ 2,650,741 48 % Wholesale 2,923,056 39 % 2,727,812 50 % Food Service 140,791 2 % 104,673 2 % Sales, net $ 7,426,254 100 % $ 5,483,226 100 % Contract assets (deferred costs of goods sold associated with deferred revenue), contract liabilities (deferred revenue, customer deposits, rewards programs), and refund liabilities (accrued returns) have been estimated and recorded as of March 31, 2021. Contract assets included in finished goods inventories were $32,324 and $0 as of March 31, 2021 and December 31, 2020, respectively. Contract liabilities and refund liabilities included in accrued expenses were $257,019 and $19,697 as of March 31, 2021, respectively. Contract liabilities and refund liabilities included in accrued expenses were $132,280 and $28,968 as of December 31, 2020, respectively. Receivables from contracts with customers are included in Accounts Receivable, net on the Company’s balance sheets. As of March 31, 2021 and December 31, 2020, Accounts receivable, net included, $770,155 and $839,659, respectively, of receivables from contracts with customers. |
Impact of COVID-19
Impact of COVID-19 | 3 Months Ended |
Mar. 31, 2021 | |
Impact Of COVID Nineteen [Abstract] | |
Impact of COVID-19 | 16. Impact of COVID-19 Since January of 2020, the coronavirus (COVID-19) |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Initial Public Offering | Initial Public Offering On September 25, 2020, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 3,047,500 shares of its common stock at a public offering price of $22 per share, including 397,500 shares of common stock upon the exercise of the underwriter’s option to purchase additional shares. After underwriting discounts and commissions and other offering costs, net proceeds from the IPO were approximately $61,966,237. Offering costs of approximately $1,350,815 were recognized as a reduction of additional-paid-in Upon the closing of the IPO, all outstanding shares of the Company’s preferred stock converted into shares of common stock, consisting of (i) 162,340 outstanding shares of Series A-1 A-2 B-1 |
Concurrent Private Placement | Concurrent Private Placement Danone Manifesto Ventures, PBC (“DMV”) purchased 90,910 shares of our common stock in a private placement immediately subsequent to the consummation of the IPO for a total purchase price of $2,000,020, at a price per share of $22. |
Basis of Accounting | Basis of Accounting The financial statements include the accounts of the Company. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and rules and regulations of the Securities and Exchange Commission (“SEC”). Operating results include the three months ended March 31, 2021 and 2020. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. |
Unaudited interim financial information | Unaudited interim financial information In the opinion of the Company, the accompanying unaudited interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity and cash flows. The balance sheet as of December 31, 2020 was derived from audited annual financial statements. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the fiscal year ending December 31, 2021. The accompanying unaudited interim financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the fiscal year ended December 31, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Although management believes its estimates and assumptions are reasonable when made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions and given the subjective element of the estimates and assumptions made, actual results may differ from estimated results. The most significant estimates and judgments impact allowances for doubtful accounts and returns, inventory obsolescence, valuation allowance for deferred taxes, and fair value of stock-based compensation. |
Segment reporting | Segment reporting The Company currently has one operating segment. In accordance with ASC 280, Segment Reporting Substantially all product sales for the periods provided were derived from domestic sales. See Note 15 for additional information regarding sales by platform within the Company’s single segment. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are highly liquid instruments with an original maturity of three months or less when purchased. For the purposes of the statements of cash flows, the Company includes cash on hand, cash in clearing accounts, cash on deposit with financial institutions, investments with an original maturity of three months or less, and restricted cash in determining the total balance. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. March 31, March 31, Cash and cash equivalents $ 51,503,218 $ 527,839 Restricted cash 242,199 — Total cash, cash equivalents, and restricted cash show in the statement of cash flows $ 51,745,417 $ 527,839 Amounts in restricted cash represent those that are required to be set aside by contractual agreement. On December 3, 2020, the Company entered into an agreement with DMV, which provided the Company $298,103 in funds for the purpose of supporting three COVID-19 |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash on deposit and cash equivalents. At times, cash and cash equivalents balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurable limits. The Company’s investment account (recognized as cash and cash equivalents) is with what the Company believes to be a high-quality broker. The Company has never experienced any losses related to these balances. Non-interest-bearing |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts. Trade receivables do not bear interest. Receivables are considered past due or delinquent according to contract terms. Management closely monitors outstanding balances and writes off accounts receivable as they are determined uncollectible. The Company provides for estimated losses on accounts receivable based on prior bad debt experience and a review of existing receivables. Based on these factors, management determined no allowance for doubtful accounts was required as of March 31, 2021 and December 31, 2020. |
Investments | Investments Investment securities that are not classified as either held-to-maturity available-for-sale available-for-sale |
Inventory | Inventory Inventory is stated at the lower of cost (first-in, first-out) March 31, December 31, Raw Materials and Packaging $ 3,412,135 $ 4,109,706 Finished Goods 4,281,845 2,186,192 Total $ 7,693,890 $ 6,295,898 The Company periodically reviews the value of items in inventory and provides write-offs of inventory based on current market assessments, which are charged to cost of goods sold. For the three months ended March 31, 2021, the Company recorded $102,604 in inventory obsolescence primarily related to the Company’s liquid creamer product line which was launched in the second quarter of 2020. For the three months ended March 31, 2020, there was no inventory obsolescence. As of March 31, 2021 and December 31, 2020, the Company had a total of $1,060,840 and $958,166, respectively, of prepayments for future raw materials inventory, which is included in prepaid expenses on the balance sheets. |
Property and Equipment | Property and Equipment, net Property and equipment are valued at cost, net of accumulated depreciation. Expenditures for maintenance and repairs that do not extend the useful life or increase the value of the assets are charged to expense in the period incurred. Additions and betterments are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for depreciation purposes for furniture and factory equipment range from 3 to 10 years. The useful life for leasehold improvements is the lesser of the lease term or the useful life. Construction in progress is not depreciated until such a time that the assets are completed and placed into service. Depreciation expense is allocated to general and administrative expenses and cost of goods sold upon the sale of inventory. For the three months ended March 31, 2021 and 2020, depreciation expense was $131,333 and $114,901, respectively. As of March 31, 2021 and December 31, 2020, the Company had a total of $391,149 and $0, respectively, of deposits for future equipment purchases, which is included in deposits on the balance sheets. |
Deferred Rent | Deferred Rent Deferred rent includes tenant improvement costs that were incurred by the landlord, RII Lundgren Mill, LLC, in the build-out |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with the five-step model as prescribed by ASC Topic 606 , Revenue from Contracts with a Customer, |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes material, labor, and overhead costs incurred in the storage and distribution of products sold in the period. Material costs include the cost of products purchased. Labor and overhead costs consist of indirect product costs, including wages and benefits for manufacturing, planning, and logistics personnel, depreciation, facility costs and freight. |
Shipping and Handling | Shipping and Handling Costs of shipping and handling related to sales revenue are included in cost of goods sold. Shipping and handling costs totaled $1,238,996 and $634,641 for the three months ended March 31, 2021 and 2020, respectively. Income generated from shipping costs billed through to customers was included in Sales, net in the statements of operations. Shipping income totaled $25,659 and $151,551 for the three months ended March 31, 2021 and 2020, respectively. |
Research and Product Development | Research and Product Development Amounts spent on research and development activities are expensed as incurred as research and product development expense on the statements of operations. Research and product development expense was $240,687 and $143,315 for the three months ended March 31, 2021 and 2020, respectively. |
Advertising | Advertising Advertising and marketing costs are expensed when incurred. Advertising and marketing expenses for the three months ended March 31, 2021 and 2020 was $2,391,867 and $1,245,585, respectively. |
Income Taxes | Income Taxes Income taxes provide for the tax effects of transactions reported in the financial statements and consist of income taxes currently due and deferred tax assets and liabilities. The Company may also be subject to interest and penalties from taxing authorities on underpayment of income taxes. In such an event, interest and penalties are included in income tax expense. Deferred tax assets and liabilities are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets (use of different depreciation methods and lives for financial statement and income tax purposes) and net operating losses. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Due to the historical net loss position of the Company, the Company recorded a full deferred tax valuation allowance of $8,953,186 and $7,563,110 as of March 31, 2021 and December 31, 2020, respectively. |
Repurchased Stock | Repurchased Stock Management presents repurchased stock (at cost) as a reduction in stockholders’ equity to reflect the historical stock repurchase transactions more clearly. There were no stock repurchase transactions for the three months ended March 31, 2021. There were stock repurchases of $20,532 in the three months ended March 31, 2020. |
Stock Incentive Plan | Stock Incentive Plan The compensation cost relating to share-based payment transactions is recognized in the financial statements. The cost is measured based on the grant date fair value of the equity or liability instruments issued. Compensation cost for all employee stock awards is calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost for all consultant stock awards is calculated and recognized over the consultant’s service period based on the grant date fair value of the equity or liability instruments issued. Upon exercise of stock option awards or vesting of restricted stock units, recipients are issued shares of common stock. Pre-vesting |
Earnings per Share | Earnings per Share Basic earnings per share is computed on the basis of the weighted average number of shares of common stock that were outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential common stock and preferred stock had been issued and are calculated under the treasury stock method. Due to the Company’s net loss, all stock options and convertible preferred stock are anti-dilutive and excluded. |
Stock Split | Stock Split The Company’s board of directors and stockholders approved a 2-for-1 2-for-1 |
Warrants | Warrants Issued and detachable stock warrants are classified as equity or liability instruments based on the specific terms of the underlying warrant agreement. In circumstances where debt or equity is issued with detachable warrants, the proceeds from issuance are allocated to each instrument based on an acceptable method, which generally involves determining the fair value of one or more of the instruments. In conjunction with the Company’s initial public offering, the warrant outstanding was cancelled. See additional information in Note 11. |
License Agreement – Intangible Asset | License Agreement – Intangible Asset On August 3, 2015, the Company entered into a license agreement with the Company’s co-founder On May 2, 2018, the Company entered into a license agreement with Gabrielle Reece, who is married to Mr. Hamilton (the “GR License”). Pursuant to the GR License, Ms. Reece granted the Company rights to her name, signature, voice, picture, image, likeness and biographical information commencing on July 1, 2015. This contribution, which is reported on the balance sheets as of March 31, 2021 and December 31, 2020, was valued at $100 based on the consideration exchanged. The Company has determined that the intangible asset associated with the GR License has an indefinite life, as there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company. Please see Note 14 for more information on the Company’s related party transaction with Ms. Reece. On November 19, 2018, the Company executed a License and Preservation Agreement with Mr. Hamilton and Ms. Reece which superseded the predecessor license agreements with both individuals. The agreement added specific terms related to noncompetition and allowable usage of the property under the license. No additional consideration was exchanged in connection with the agreement and the life of the agreement was set at 100 years. On May 26, 2020, the Company executed a License and Preservation Agreement with Mr. Hamilton, and Ms. Reece (the “2020 License”), which superseded the predecessor license and preservation agreement with both individuals. Among other modifications, the agreement (i) modified certain approval rights of Mr. Hamilton and Ms. Reece for use of their respective images, signatures, voices, and names (other than those owned by the Company), rights of publicity and common law and statutory rights to the foregoing in the Company’s products, (ii) modified certain assignment, change of control and indemnification provisions, and (iii) granted the Company the right to extend the term of the agreement for additional ten-year one-hundred |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a defined contribution 401(k) plan (the “401(k) plan”) for all employees 18 years or older. The 401(k) plan was initiated on July 1, 2018. Employee contributions may be made on a before-tax |
JOBS Act Accounting Election | JOBS Act Accounting Election The Company qualifies as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. An emerging growth company can elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. Currently, the Company has elected to file as an emerging growth company defined under the JOBS Act, and as such, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There were no new accounting pronouncements adopted in the three months ended March 31, 2021 and 2020, respectively. |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), right-of-use 2016-02 right-of-use In June 2016, the FASB issued ASU No. 2016-13, 2018-19 2019-04 2019-05 2019-11 2020-02 2020-03 available-for-sale 2016-13 |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation Certain prior period amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or cash flows. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before the financial statements are available to be issued. The Company has evaluated events and transactions subsequent to March 31, 2021 for potential recognition of disclosure in the financial statements. On May 3, 2021, the Company entered into a definitive agreement to purchase all of the outstanding membership interest units in Picky Bars, LLC (“Picky Bars”), innovators in the healthy snack industry focused on nutritionally balanced, real-food products to fuel performance, for a cash-free, debt-free purchase price of $10,053,142 in cash, subject to customary working capital adjustments and 53,133 shares of Company common stock, subject to certain vesting conditions. The transaction closed simultaneously with execution of the agreement. Because the acquisition occurred subsequent to March 31, 2021, no results of operations of Picky Bars are included in our condensed statements of operations for the three months ended March 31, 2021. It is currently impractical to disclose a preliminary purchase price allocation, or pro forma financial information combining both entities as of the earliest period presented in these financial statements. Operations have continued with Picky Bars’ previous management and workforce at the Oregon facilities. The Company continues to operate as one segment. The acquisition will be accounted for in accordance with ASC 805, Business Combinations |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. March 31, March 31, Cash and cash equivalents $ 51,503,218 $ 527,839 Restricted cash 242,199 — Total cash, cash equivalents, and restricted cash show in the statement of cash flows $ 51,745,417 $ 527,839 |
Schedule of Inventory, Current | Inventory is stated at the lower of cost (first-in, first-out) March 31, December 31, Raw Materials and Packaging $ 3,412,135 $ 4,109,706 Finished Goods 4,281,845 2,186,192 Total $ 7,693,890 $ 6,295,898 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | The following table presents the components of prepaid expenses and other current assets as of March 31, 2021 and December 31, 2020: March 31, December 31, Prepaid insurance $ 1,060,840 $ 1,446,189 Prepaid inventory 943,083 958,166 Prepaid subscriptions and license fees 389,431 225,567 Prepaid advertising 310,700 — Prepaid, other 141,169 152,323 Other current assets 57,561 51,111 Prepaid consulting — 13,963 $ 2,902,784 $ 2,847,319 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment securities | Investment securities as of March 31, 2021 and December 31, 2020 consisted of the following: Amortized cost Gross unrealized Gross unrealized Estimated March 31, 2021 Federal agency bonds – mortgage-backed $ 8,696,606 $ 586 $ (6,669 ) $ 8,690,523 Total investment securities available-for-sale $ 8,696,606 $ 586 $ (6,669 ) $ 8,690,523 Amortized cost Gross unrealized Gross unrealized Estimated December 31, 2020 Federal agency bonds – mortgage-backed $ 8,692,637 $ 14,207 $ — $ 8,706,844 Total investment securities available-for-sale $ 8,692,637 $ 14,207 $ — $ 8,706,844 |
Schedule of amortized cost and estimated fair value of investment securities | The amortized cost and estimated fair value of investment securities as of March 31, 2021, by contractual maturity, are shown below: Available-for-sale March 31, 2021 Amortized cost Estimated Due after one year through five years $ 8,696,606 $ 8,690,523 Total investment securities available-for-sale $ 8,696,606 $ 8,690,523 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summarize assets subject to fair value measurements | The following tables summarize assets subject to fair value measurements: Fair Value as of March 31, 2021 Level 1 Level 2 Level 3 Federal agency bonds - mortgage-backed $ — $ 8,690,523 $ — Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Federal agency bonds - mortgage-backed $ — $ 8,706,844 $ — |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt components | The following table presents the components of long-term debt: March 31, December 31, Forgivable loan, City of Sisters $ 51,000 $ 51,000 Long-term debt $ 51,000 $ 51,000 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net is comprised of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, Factory equipment $ 2,749,057 $ 2,668,839 Land 947,394 947,394 Furniture and office equipment 531,232 532,116 Leasehold improvements 276,553 259,504 Construction in progress 16,666 — 4,250,902 4,407,853 Accumulated depreciation (1,019,184 ) (894,365 ) Property and equipment, net $ 3,501,718 $ 3,513,488 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table sets forth the amounts of our significant contractual obligations and commitments with definitive payment terms as of March 31, 2021: Payments Due by Period Operating (1) Note Total 2021 $ 178,997 $ 51,000 $ 229,997 2022 244,622 — 244,622 2023 251,960 — 251,960 2024 259,519 — 259,519 2025 267,305 — 267,305 Thereafter 863,932 — 863,932 $ 2,066,335 $ 51,000 $ 2,117,335 (1) Operating lease obligations related to our manufacturing facility leases dated March 1, 2018 and December 17, 2018. |
Deferred Tax Assets and Liabi_2
Deferred Tax Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Noncurrent deferred tax assets: Federal net operating loss carryforwards $ 6,385,696 $ 5,332,738 State net operating loss carryforwards 2,548,054 2,112,119 Federal depreciation and amortization 346,060 458,203 State depreciation and amortization 166,329 213,359 Accrued—PTO 80,283 75,702 Other 137,996 106,526 Total noncurrent deferred tax assets 9,664,418 8,298,647 Noncurrent deferred tax liabilities: Federal depreciation and amortization $ — $ — State depreciation and amortization — — Deferred rent asset 711,232 735,537 Total noncurrent deferred tax liabilities 711,232 735,537 Net noncurrent deferred tax assets $ 8,953,186 $ 7,563,110 Valuation allowance (8,953,186 ) (7,563,110 ) Total net noncurrent deferred tax assets $ — $ — |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share Based Compensation Stock Options and Restricted Stock Activity | The following table summarizes the Company’s stock option activity during the three months ended March 31, 2021 and 2020: March 31, 2021 Options Activity Weighted Weighted Average Aggregate Balance at January 1, 2021 887,640 $ 9.65 6.42 $ 33,433,274 Granted 44,068 45.53 Exercised/released (28,148 ) 6.16 Cancelled/forfeited (2,750 ) 11.71 Balance at March 31, 2021 900,810 $ 11.42 6.35 $ 23,488,929 Exercisable at March 31, 2021 543,598 $ 7.55 5.19 $ 16,264,671 March 31, 2020 Options Activity Weighted Weighted Average Aggregate Balance at January 1, 2020 788,528 $ 8.42 7.17 $ 4,799,381 Granted 44,000 14.50 Exercised/released (804 ) 7.50 Cancelled/forfeited (584 ) 9.00 Balance at March 31, 2020 831,140 $ 8.74 7.07 $ 4,790,541 Exercisable at March 31, 2020 461,032 $ 6.31 5.63 $ 3,779,313 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | For the three months ended March 31, 2021 and 2020, the grant-date fair For the Three Months Ended 2021 2020 Weighted-average expected volatility 51.92 % 68.25 % Weighted-average expected term (years) 6.25 6.25 Weighted-average expected risk-free interest rate 0.63 % 1.19 % Dividend yield 0.00 % 0.00 % Weighted-average fair value of options granted $ 21.50 $ 18.10 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Basic earnings per share is reconciled to diluted earnings per share in the following table: Three Months Ended 2021 2020 Net loss attributable to Laird Superfood, Inc. common stockholders $ (5,330,504 ) $ (1,995,231 ) Weighted average shares outstanding- basic 8,894,495 4,281,346 Dilutive securities — — Weighted average shares outstanding- diluted 8,894,495 4,281,346 Common stock equivalent shares excluded due to anti-dilutive effect 1,169,237 1,460,582 Basic and diluted: Net loss per share (basic) $ (0.60 ) $ (0.47 ) Net loss per share (diluted) $ (0.60 ) $ (0.47 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue based on products sold | In accordance with ASC Topic 606, the Company disaggregates net sales from contracts with customers based on the characteristics of the products sold: Three Months Ended March 31, 2021 2020 $ % $ % Coffee Creamers $ 5,021,908 68 % $ 4,019,362 73 % Hydration and Beverage Enhancing Supplements 1,064,576 14 % 858,707 16 % Coffee, Tea, and Hot Chocolate Products 1,900,832 26 % 740,572 14 % Other 359,321 5 % 59,590 1 % Gross Sales 8,346,637 113 % 5,678,231 104 % Shipping income 25,659 0 % 151,551 3 % Returns and discounts (946,042 ) (13 %) (346,556 ) (7 %) Sales, net $ 7,426,254 100 % $ 5,483,226 100 % |
Summary of disaggregation of revenue based on channels | The Company generates revenue through three channels: online, wholesale, and food service: Three Months Ended March 31, 2021 2020 $ % $ % Online $ 4,362,407 59 % $ 2,650,741 48 % Wholesale 2,923,056 39 % 2,727,812 50 % Food Service 140,791 2 % 104,673 2 % Sales, net $ 7,426,254 100 % $ 5,483,226 100 % |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 51,503,218 | $ 527,839 | ||
Restricted cash | 242,199 | $ 298,103 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 51,745,417 | $ 57,208,080 | $ 527,839 | $ 1,004,109 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Inventory, Current (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw Materials and Packaging | $ 3,412,135 | $ 4,109,706 |
Finished Goods | 4,281,845 | 2,186,192 |
Total | $ 7,693,980 | $ 6,295,898 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) | May 03, 2021USD ($)$ / sharesshares | Sep. 25, 2020USD ($)$ / sharesshares | May 26, 2020USD ($)$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 03, 2020USD ($) | Dec. 31, 2019shares |
Common stock par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | ||||||
Cash with financial institutions in excess of federally insured limits | $ 6,402,956 | $ 6,639,821 | ||||||
Allowance for doubtful accounts | 0 | 0 | ||||||
Prepayments for future raw materials | 943,083 | 958,166 | ||||||
Depreciation | 131,333 | $ 114,901 | ||||||
Shipping and handling costs | 5,559,499 | 3,365,609 | ||||||
Research and development expenses | 240,687 | 143,315 | ||||||
Advertising and marketing expenses | 2,391,867 | 1,245,585 | ||||||
Deferred tax asset valuation allowance | 8,953,186 | $ 7,563,110 | ||||||
Stock repurchases during the period values | 0 | 20,532 | ||||||
Adjustment to additional paid in capital stock issuance costs | $ 82,043 | |||||||
Temporary equity shares outstanding | shares | 0 | 0 | ||||||
Indefinitely lived intangible assets excluding goodwill | $ 132,100 | $ 132,100 | ||||||
Employees matching contribution defined contribution plan | 0 | 0 | ||||||
Shipping And handling revenue | 7,426,254 | 5,483,226 | ||||||
Cash Received | 242,199 | 298,103 | ||||||
Subsequent Event [Member] | Picky Bars [Member] | ||||||||
Business combination equity interest issued and issuable upon meeting the net revenue targets | $ 0 | |||||||
Cash Consideration | 0 | |||||||
Subsequent Event [Member] | Picky Bars [Member] | Definitive Agreement [Member] | ||||||||
Cash Consideration | $ 10,053,142 | |||||||
Subsequent Event [Member] | Common Stock [Member] | Picky Bars [Member] | ||||||||
Stock issued during the period shares | shares | 0 | |||||||
Business acquisition Share Price | $ / shares | $ 0 | |||||||
Volume weighted avarage price of a share on the date of acquisition period | 0 days | |||||||
Subsequent Event [Member] | Common Stock [Member] | Picky Bars [Member] | Definitive Agreement [Member] | ||||||||
Number of shares issued | shares | 53,133 | |||||||
General and Administrative Expense [Member] | ||||||||
Depreciation | 131,333 | 114,901 | ||||||
Raw Materials [Member] | ||||||||
Prepayments for future raw materials | 1,060,840 | 958,166 | ||||||
Inventory Valuation and Obsolescence [Member] | ||||||||
Inventory obsolescence | 102,604 | 0 | ||||||
Dano Manifesto Ventures PBC [Member] | COVID-19 | ||||||||
Cash Received | 55,904 | $ 298,103 | ||||||
License Agreement Terms [Member] | Laird Hamilton [Member] | ||||||||
Indefinitely lived intangible assets excluding goodwill | $ 132,000 | 132,000 | ||||||
Stock issued during the period shares for services received | shares | 660,000 | |||||||
License Agreement Terms [Member] | Gabrielle Reece [Member] | ||||||||
Indefinitely lived intangible assets excluding goodwill | $ 100 | $ 100 | ||||||
License And Preservation Agreement [Member] | Laird Hamilton And Gabrielle Riece [Member] | ||||||||
Term of the license agreement | 100 years | |||||||
License And Preservation Amendment Agreement [Member] | Laird Hamilton And Gabrielle Riece [Member] | ||||||||
Additional term of the license agreement | 10 years | 10 years | ||||||
Impairment of indefinitely lived intangible assets excluding goodwill | $ 0 | $ 0 | ||||||
Redeemable Convertible Preferred Stock [Member] | ||||||||
Stock split ratio | 2 | |||||||
Temporary equity shares outstanding | shares | 0 | 629,186 | 0 | 629,186 | ||||
Series A One Redeemable Convertible Preferred Stock [Member] | ||||||||
Temporary equity shares outstanding | shares | 162,340 | |||||||
Stock shares issued during the period on conversion of convertible securities | shares | 324,680 | |||||||
Series A Two Redeemable Convertible Preferred Stock [Member] | ||||||||
Temporary equity shares outstanding | shares | 152,253 | |||||||
Stock shares issued during the period on conversion of convertible securities | shares | 304,506 | |||||||
Series B One Redeemable Convertible Preferred Stock [Member] | ||||||||
Temporary equity shares outstanding | shares | 383,142 | |||||||
Stock shares issued during the period on conversion of convertible securities | shares | 766,284 | |||||||
IPO [Member] | ||||||||
Stock issued during the period shares | shares | 3,047,500 | |||||||
Sale of stock price per share | $ / shares | $ 22 | |||||||
IPO for a total purchase price | $ 61,966,237 | |||||||
Adjustment to additional paid in capital stock issuance costs | $ 1,350,815 | |||||||
Over-Allotment Option [Member] | ||||||||
Stock issued during the period shares | shares | 397,500 | |||||||
Private Placement [Member] | ||||||||
Sale of stock price per share | $ / shares | $ 22 | |||||||
common stock in a private placement | shares | 90,910 | |||||||
Private Placement [Member] | Dano Manifesto Ventures PBC [Member] | ||||||||
Stock issued during the period shares | shares | 90,910 | |||||||
Sale of stock price per share | $ / shares | $ 22 | |||||||
Stock issued during the period value for services received | $ 2,000,020 | $ 2,000,020 | ||||||
Shipping and Handling [Member] | ||||||||
Shipping and handling costs | 1,238,996 | $ 634,641 | ||||||
Shipping And handling revenue | 25,659 | $ 151,551 | ||||||
Deposit Assets [Member] | ||||||||
Advances for future equipment purchases | $ 391,149 | $ 0 | ||||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||||
Estimated useful life of furniture | 10 years | 10 years | ||||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||||
Estimated useful life of furniture | 3 years | 3 years | ||||||
Equipment [Member] | Maximum [Member] | ||||||||
Estimated useful life of furniture | 10 years | 10 years | ||||||
Equipment [Member] | Minimum [Member] | ||||||||
Estimated useful life of furniture | 3 years | 3 years |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid insurance | $ 1,060,840 | $ 1,446,189 |
Prepaid inventory | 943,083 | 958,166 |
Prepaid subscriptions and license fees | 389,431 | 225,567 |
Prepaid advertising | 310,700 | 0 |
Prepaid, other | 141,169 | 152,323 |
Other current assets | 57,561 | 51,111 |
Prepaid consulting | 0 | 13,963 |
Prepaid Expense and Other Assets, Current | $ 2,902,784 | $ 2,847,319 |
Investment securities - Schedul
Investment securities - Schedule of Investment Securities (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 8,696,606 | |
Estimated fair value | 8,690,523 | |
Investment Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 8,696,606 | $ 8,692,637 |
Gross unrealized gains | 586 | 14,207 |
Gross unrealized losses | (6,669) | |
Estimated fair value | 8,690,523 | 8,706,844 |
Federal agency bonds — mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 8,696,606 | 8,692,637 |
Gross unrealized gains | 586 | 14,207 |
Gross unrealized losses | (6,669) | |
Estimated fair value | $ 8,690,523 | $ 8,706,844 |
Investment securities - Sched_2
Investment securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities (Detail) | Mar. 31, 2021USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after One Year Through Five Years | $ 8,696,606 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Year Through Five Years, Fair Value | 8,690,523 |
Debt Securities, Available-for-sale, Amortized Cost | 8,696,606 |
Debt Securities, Available-for-sale | $ 8,690,523 |
Investment securities - Additio
Investment securities - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of investment securities pledged | $ 8,690,523 | $ 8,706,844 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarize Assets Subject To Fair Value Measurements (Detail) - Federal agency bonds — mortgage-backed - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | 8,690,523 | $ 8,706,844 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Revolving Lines of Credit - Add
Revolving Lines of Credit - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Percentage of outstanding capital stock eligible to issued to directors officers pursuant to plan | 0.00% | |
First Interstate Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 |
Line of credit facility interest rate description | LIBOR plus 2.0% | |
Debt instrument variable interest rate spread | 2.00% | |
Line of credit net of current portion | $ 0 | 0 |
Line of credit facility maturity date | Feb. 5, 2023 | |
East Asset Management LLC [Member] | ||
Line of Credit Facility [Line Items] | ||
Percentage of equity offerings eligible to be subscribed for by the lender | 20.00% | |
Percentage of outstanding capital stock eligible to issued pursuant to mergers equipment loan financing | 0.00% | |
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit net of current portion | $ 0 | 0 |
Line of credit facility maturity date | Aug. 10, 2022 | |
Line of credit facility fixed rate of interest | 15.00% | |
Line of credit interest rate in the event of default | 15.00% | |
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Interest Rate In The Event Of Default [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility fixed rate of interest | 20.00% | |
Line of credit interest rate in the event of default | 20.00% | |
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Eligible Accounts Receivable [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit borrowing base percentage | 90.00% | |
Receivables overdue period | 90 days | |
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Inventory And Prepaid Inventory [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit borrowing base percentage | 90.00% | |
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum borrowing capacity | $ 10,000,000 | 10,000,000 |
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum borrowing capacity | 3,000,000 | 3,000,000 |
East Asset Management LLC [Member] | Secondary Line Of Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum borrowing capacity | 200,000 | |
Line of credit | $ 0 | $ 0 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt Components (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Long-term debt [Line items] | ||
Long-term debt | $ 51,000 | $ 51,000 |
Forgivable loan, City of Sisters [Member] | ||
Long-term debt [Line items] | ||
Long-term debt | $ 51,000 | $ 51,000 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | 3 Months Ended | ||
Dec. 31, 2020 | May 30, 2020Employees | May 30, 2017USD ($) | |
Long-term debt [Line items] | |||
Debt instrument face amount | $ 51,000 | ||
Forgivable loan, City of Sisters [Member] | |||
Long-term debt [Line items] | |||
Number of employees | Employees | 30 | ||
Salary payable to each employee | $ 40,000 | ||
Period of moratorium | 3 years |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,250,902 | $ 4,407,853 |
Accumulated depreciation | (1,019,184) | (894,365) |
Property and equipment, net | 3,501,718 | 3,513,488 |
Factory equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,749,057 | 2,668,839 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 947,394 | 947,394 |
Furniture and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 531,232 | 532,116 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 276,553 | $ 259,504 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,666 |
Commitments and Contingencies -
Commitments and Contingencies - Detailed About Contractual Obligations and Commitments with Definitive Payment Terms (Detail) | Mar. 31, 2021USD ($) |
Schedule of contractual obligations and commitments [Line Items] | |
Operating Leases, 2021 | $ 178,997 |
Operating Leases, 2022 | 244,622 |
Operating Leases, 2023 | 251,960 |
Operating Leases, 2024 | 259,519 |
Operating Leases, 2025 | 267,305 |
Operating Leases, Thereafter | 863,932 |
Operating Leases | 2,066,335 |
Note Payable, 2021 | 51,000 |
Note Payable, 2022 | 0 |
Note Payable, 2023 | 0 |
Note Payable, 2024 | 0 |
Note Payable, 2025 | 0 |
Note Payable, Thereafter | 0 |
Note Payable | 51,000 |
Total, 2021 | 229,997 |
Total, 2022 | 244,622 |
Total, 2023 | 251,960 |
Total, 2024 | 259,519 |
Total, 2025 | 267,305 |
Total, Therafter | 863,932 |
Total | $ 2,117,335 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jan. 01, 2021 | Jul. 01, 2019 | May 26, 2019 | Dec. 20, 2018 | Nov. 20, 2018 | Apr. 15, 2018 | Mar. 01, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 |
Income Tax Contingency [Line Items] | ||||||||||
Operating lease rent expenses | $ 251,090 | $ 172,180 | ||||||||
RII Lundgren Mill LLC [Member] | Commercial Lease Agreement [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Operating lease income | $ 12,784 | $ 6,475 | ||||||||
Percentage increase in lease payments | 3.00% | |||||||||
Reimbursement of expenses | $ 797,471 | |||||||||
Stock option issued | 2,000 | |||||||||
Shares issued per share | $ 7.50 | |||||||||
Reimbursement of Initial expenses | $ 1,202,529 | |||||||||
Reimbursement of final expenses | $ 1,399,001 | |||||||||
PRW Princeville Development Company LLC [Member] | Hanalei [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Operating lease income | $ 1,000 | |||||||||
PRW Princeville Development Company LLC [Member] | Agricultural License Agreement [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Operating lease income | $ 1,000 | |||||||||
PX2 LLC [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Operating lease rent expenses | $ 1,000 | |||||||||
Lease Expiration Date | Dec. 31, 2021 |
Deferred Tax Assets and Liabi_3
Deferred Tax Assets and Liabilities - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Noncurrent deferred tax assets: | ||
Federal net operating loss carryforwards | $ 6,385,696 | $ 5,332,738 |
State net operating loss carryforwards | 2,548,054 | 2,112,119 |
Federal depreciation and amortization | 346,060 | 458,203 |
State depreciation and amortization | 166,329 | 213,359 |
Accrued—PTO | 80,283 | 75,702 |
Other | 137,996 | 106,526 |
Total noncurrent deferred tax assets | 9,664,418 | 8,298,647 |
Noncurrent deferred tax liabilities: | ||
Federal depreciation and amortization | 0 | 0 |
State depreciation and amortization | 0 | 0 |
Deferred rent asset | 711,232 | 735,537 |
Total noncurrent deferred tax liabilities | 711,232 | 735,537 |
Net noncurrent deferred tax assets | 8,953,186 | 7,563,110 |
Valuation allowance | (8,953,186) | (7,563,110) |
Total net noncurrent deferred tax assets | $ 0 | $ 0 |
Deferred Tax Assets and Liabi_4
Deferred Tax Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Net increase decrease in the valuation allowance for defered tax assets and liabilities | $ 1,390,076 | $ 977,988 |
Federal net operating losses | 32,923,866 | 27,528,486 |
Unrecorded Tax Liabilities | 0 | 0 |
Valuation Allowance Deferred Tax Assets On Unrealized Gain On Available For Sale Investments | $ 1,277 | |
Domestic Tax Authority [Member] | Minimum [Member] | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Statute Of Limitations Period | 3 years | |
State and Local Jurisdiction [Member] | Maximum [Member] | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Statute Of Limitations Period | 5 years | |
Tax Year Two Thousand And Thirty Six [Member] | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Federal net operating losses | $ 1,868,077 | 1,868,077 |
Federal net operating losses limitations on usage | 20 years | |
Indefinitely [Member] | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Federal net operating losses | $ 31,055,789 | $ 25,660,409 |
Federal net operating losses limitations on usage | indefinitely |
Stock Incentive Plan - Schedule
Stock Incentive Plan - Schedule Of Share Based Compensation Stock Options and Restricted Stock Activity (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Share Based Compensation Stock Options and Restricted Stock Activity [Line Items] | ||||
Balance at the beginning, Options Activity | 887,640 | 788,528 | 788,528 | |
Granted, Options Activity | 44,068 | 44,000 | ||
Exercised/released, Options Activity | (28,148) | (804) | ||
Cancelled/forfeited, Options Activity | (2,750) | (584) | ||
Balance at the end, Options Activity | 900,810 | 831,140 | 887,640 | 788,528 |
Exercisable, Options Activity | 543,598 | 461,032 | ||
Balance at the beginning, Weighted Average Exercise Price (per share) | $ 9.65 | $ 8.42 | $ 8.42 | |
Granted, Weighted Average Exercise Price (per share) | 45.53 | 14.50 | ||
Exercised/released, Weighted Average Exercise Price (per share) | 6.16 | 7.50 | ||
Cancelled/forfeited, Weighted Average Exercise Price (per share) | 11.71 | 9 | ||
Balance at the end, Weighted Average Exercise Price (per share) | 11.42 | 8.74 | $ 9.65 | $ 8.42 |
Exercisable, Weighted Average Exercise Price (per share) | $ 7.55 | $ 6.31 | ||
Weighted Average Remaining Contractual Term (years) | 6 years 4 months 6 days | 7 years 25 days | 6 years 5 months 1 day | 7 years 2 months 1 day |
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years 2 months 8 days | 5 years 7 months 17 days | ||
Aggregate intrinsic value | $ 23,488,929 | $ 4,790,541 | $ 33,433,274 | $ 4,799,381 |
Exercisable, Aggregate intrinsic value | $ 16,264,671 | $ 3,779,313 |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Determine Grant-Date Fair Value of Stock Option Granted (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Abstract] | ||
Weighted-average expected volatility | 51.92% | 68.25% |
Weighted-average expected term (years) | 6 years 3 months | 6 years 3 months |
Weighted-average expected risk-free interest rate | 0.63% | 1.19% |
Dividend yield | 0.00% | 0.00% |
Weighted-average fair value of options granted | $ 21.50 | $ 18.10 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)Employeesshares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)shares | Sep. 22, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated stock based compensation expense | $ 899,235 | $ 183,203 | ||
Unrecognised share based compensation expense | $ 2,119,650 | $ 1,613,520 | ||
Weighted-average vesting period | 3 years 2 months 15 days | |||
Common stock, shares authorized | shares | 100,000,000 | 9,600,000 | ||
Payroll taxes withheld from stock based compensation | $ 188,793 | 0 | ||
Three Months From The Date Of Termnation Of Employment With The Company [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation by share based payment arrangement options period of expiry | 3 months | |||
One Year From The Date Of Termination From The Company Due To Death [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation by share based payment arrangement options period of expiry | 1 year | |||
Five Year From The Grant Date In Respect Of Equity Holders Holding Ten Percent Or More Of The Capital Stock Of The Company [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation by share based payment arrangement options period of expiry | 10 years | |||
Stock Incentive Plan Two Thousand And Twenty [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated stock based compensation expense | $ 1,010,003 | $ 258,486 | ||
Unrecognised share based compensation expense | 2,655,329 | $ 1,990,834 | ||
Weighted-average vesting period | 3 years 2 months 8 days | |||
Common stock, shares authorized | shares | 1,000,000 | |||
Stock Incentive Plan Two Thousand And Twenty [Member] | Performance Based Restricted Stock Unit Agreement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated stock based compensation expense | 385,486 | |||
Unrecognised share based compensation expense | $ 3,884,514 | $ 0 | ||
Shares issued during the period restricted stock awards net of forfeitures,shares | shares | 189,608 | |||
Number of employees to whom the restricted stock was granted | Employees | 8 | |||
Weighted-average vesting period | 1 year 9 months 25 days | |||
Divindend rate | 0.00% | |||
Stock Incentive Plan Two Thousand And Twenty [Member] | Restricted Stock Units Under 2021 Agreement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued during the period restricted stock awards net of forfeitures,shares | shares | 21,766 | |||
Shares issued during the period restricted stock awards net of forfeitures,value | $ 39,478 | |||
Number of employees to whom the restricted stock was granted | Employees | 7 | |||
Stock Incentive Plan Two Thousand And Twenty [Member] | Market Based Restricted Stock Unit Agreement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation arrangement by share based payment vesting period | 30 days |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - USD ($) | Sep. 25, 2020 | May 26, 2020 | Apr. 13, 2020 | Nov. 18, 2019 | Nov. 19, 2018 | Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 |
Temporary equity shares outstanding | 0 | 0 | |||||||||
Temporary equity shares authorized | 5,000,000 | 5,000,000 | |||||||||
Temporary equity par or stated value per share | $ 0.001 | $ 0.001 | |||||||||
Temporary equity shares issued | 0 | 0 | |||||||||
Payment for repurchases of common stock | $ 20,532 | ||||||||||
Preferred stock issuances, price per share | $ 0.001 | $ 0.001 | |||||||||
Warrants or rights issued | $ 10,000,000 | ||||||||||
Warrants or rights issued, price per share | $ 0.005 | ||||||||||
Risk free interest rate | 0.63% | 1.19% | |||||||||
Expected volatility rate | 51.92% | 68.25% | |||||||||
Stock issued | $ 1,997,665 | ||||||||||
IPO [Member] | |||||||||||
Stock issued during the period shares | 3,047,500 | ||||||||||
Sale of stock price per share | $ 22 | ||||||||||
Private Placement [Member] | |||||||||||
Sale of stock price per share | $ 22 | ||||||||||
Private Placement [Member] | Dano Manifesto Ventures PBC [Member] | |||||||||||
Stock issued during the period shares | 90,910 | ||||||||||
Sale of stock price per share | $ 22 | ||||||||||
Stock issued | $ 2,000,020 | ||||||||||
Series A One Redeemable Convertible Preferred Stock [Member] | |||||||||||
Temporary equity shares outstanding | 162,340 | ||||||||||
Stock shares issued during the period on conversion of convertible securities | 324,680 | ||||||||||
Series A Two Redeemable Convertible Preferred Stock [Member] | |||||||||||
Temporary equity shares outstanding | 152,253 | ||||||||||
Stock shares issued during the period on conversion of convertible securities | 304,506 | ||||||||||
Series B One Redeemable Convertible Preferred Stock [Member] | |||||||||||
Temporary equity shares outstanding | 383,142 | ||||||||||
Stock shares issued during the period on conversion of convertible securities | 766,284 | ||||||||||
Series A-1 and A-2 Preferred Stock | |||||||||||
Temporary equity issued during the year value | $ 7,000,000 | ||||||||||
Preferred stock issuances, values | $ 7,000,000 | ||||||||||
Series A-1 Preferred Stock | |||||||||||
Payment for repurchases of common stock | $ 10,000,000 | ||||||||||
Preferred Stock, Value, Issued | $ 14,999,901 | ||||||||||
Share Price | $ 24.63 | ||||||||||
Temporary equity gain loss on repurchase | $ 7,448,879 | ||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 609,013 | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 7,500,000 | ||||||||||
Stock repurchase price per share | $ 12.32 | ||||||||||
Series A-1 Preferred Stock | Private Placement [Member] | |||||||||||
Commitment to raise temporary equity from investor | $ 25,000,000 | ||||||||||
Commitment to raise capital temporary equity from investor | 25,000,000 | ||||||||||
Temporary equity issued during the year value | 25,000,000 | ||||||||||
Preferred stock issuances, values | 25,000,000 | ||||||||||
Series A-1 Preferred Stock | Private Placement [Member] | Tranche One [Member] | |||||||||||
Commitment to raise temporary equity from investor | 15,000,000 | ||||||||||
Proceeds from temporary equity | 15,000,000 | ||||||||||
Commitment to raise capital temporary equity from investor | 15,000,000 | ||||||||||
Series A-1 Preferred Stock | Private Placement [Member] | Tranche Two [Member] | |||||||||||
Commitment to raise temporary equity from investor | 10,000,000 | ||||||||||
Commitment to raise capital temporary equity from investor | $ 10,000,000 | ||||||||||
Series A-2 Preferred Stock | |||||||||||
Temporary equity discount percentage | 20.00% | 20.00% | |||||||||
Adjustment to additional paid in capital deemed dividend on temporary equity | $ 673,133 | ||||||||||
Series B-1 and B-2 Preferred Stock | Private Placement [Member] | |||||||||||
Temporary equity par or stated value per share | $ 26.10 | ||||||||||
Temporary equity issued during the year value | $ 10,000,006 | ||||||||||
Preferred stock issuances, shares | 383,142 | ||||||||||
Preferred stock issuances, values | $ 10,000,006 | ||||||||||
Preferred stock issuances, price per share | $ 26.10 | ||||||||||
Series B-1 Preferred Stock | |||||||||||
Fair value of warrants issued | $ 899,617 | ||||||||||
Risk free interest rate | 0.17% | ||||||||||
Dividend, warrants | $ 0 | ||||||||||
Expected volatility rate | 65.00% | ||||||||||
Expected warrant life, term | 9 months | ||||||||||
Increase to additional paid-in-capital and a preferred stock, warrants | $ 825,366 | ||||||||||
Expected timing of warrants amortized, term | 11 months 15 days |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding subscribed but unissued | 1,000 | 0 |
Earnings per Share - Summary of
Earnings per Share - Summary of Earnings Per Share (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to Laird Superfood, Inc. common stockholders | $ (5,330,504) | $ (1,995,231) |
Weighted average shares outstanding- basic | 8,894,495 | 4,281,346 |
Dilutive securities | ||
Weighted average shares outstanding- diluted | 8,894,495 | 4,281,346 |
Common stock equivalent shares excluded due to anti-dilutive effect | 1,169,237 | 1,460,582 |
Basic and diluted: | ||
Net loss per share (basic) | $ (0.60) | $ (0.47) |
Net loss per share (diluted) | $ (0.60) | $ (0.47) |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2021USD ($)CustomersVendorsSuppliers | Mar. 31, 2020USD ($)CustomersVendorsSuppliers | |
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 29.00% | 32.00% |
Number of customers | Customers | 2 | 2 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 41.00% | 67.00% |
Receivables from customer | $ | $ 486,729 | $ 799,842 |
Vendors Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Number of vendors | Vendors | 2 | 2 |
Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 51.00% | 66.00% |
Number of supplier | Suppliers | 1 | 2 |
Supplier Concentration Risk [Member] | Accounts Payable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 62.00% | 55.00% |
Supplier Concentration Risk [Member] | Vietnam [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 62.00% | 65.00% |
Supplier Concentration Risk [Member] | Indonesia [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 62.00% | |
Supplier Concentration Risk [Member] | Sri Lanka [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 62.00% | |
Supplier Concentration Risk [Member] | Philippines [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 65.00% |
Related Party - Additional Info
Related Party - Additional Information (Detail) - USD ($) | May 26, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||
Cash Received | $ 242,199 | $ 298,103 | |
Private Placement [Member] | |||
Related Party Transaction [Line Items] | |||
Sale of stock price per share | $ 22 | ||
Private Placement [Member] | Dano Manifesto Ventures PBC [Member] | |||
Related Party Transaction [Line Items] | |||
Stock issued during the period value for services received | $ 2,000,020 | $ 2,000,020 | |
Sale of stock price per share | $ 22 | ||
Stock issued during the period shares | 90,910 | ||
Laird Hamilton and Gabrielle Riece [Member] | License and Preservation Amendment Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Additional term of the license agreement | 10 years | 10 years |
Revenue Recognition - Summary O
Revenue Recognition - Summary Of Disaggregation Of Revenue Based On Products Sold (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 7,426,254 | $ 5,483,226 |
Concentration Risk, Percentage | 100.00% | 100.00% |
Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Coffee Creamers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,021,908 | $ 4,019,362 |
Coffee Creamers [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 68.00% | 73.00% |
Hydration and Beverage Enhancing Supplements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,064,576 | $ 858,707 |
Hydration and Beverage Enhancing Supplements [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 16.00% |
Coffee Tea and Hot Chocolate Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,900,832 | $ 740,572 |
Coffee Tea and Hot Chocolate Products [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 26.00% | 14.00% |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 359,321 | $ 59,590 |
Other [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 5.00% | 1.00% |
Gross Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,346,637 | $ 5,678,231 |
Gross Sales [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 113.00% | 104.00% |
Shipping income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 25,659 | $ 151,551 |
Shipping income [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 3.00% |
Returns and discount [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (946,042) | $ (346,556) |
Returns and discount [Member] | Product Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | (13.00%) | (7.00%) |
Revenue Recognition - Summary_2
Revenue Recognition - Summary Of Disaggregation Of Revenue Based On Channels (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue Based On Channels [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 7,426,254 | $ 5,483,226 |
Concentration risk, percentage | 100.00% | 100.00% |
Online [Member] | ||
Disaggregation Of Revenue Based On Channels [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 4,362,407 | $ 2,650,741 |
Concentration risk, percentage | 59.00% | 48.00% |
Wholesale [Member] | ||
Disaggregation Of Revenue Based On Channels [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 2,923,056 | $ 2,727,812 |
Concentration risk, percentage | 39.00% | 50.00% |
Food Service [Member] | ||
Disaggregation Of Revenue Based On Channels [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 140,791 | $ 104,673 |
Concentration risk, percentage | 2.00% | 2.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, net | $ 770,155 | $ 839,659 |
Accrued Liabilities [Member] | ||
Contract liability | 257,019 | 132,280 |
Refund Liability | 19,697 | 28,968 |
Inventory Finished Goods [Member] | ||
Contract assets | $ 32,324 | $ 0 |