Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 13, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | SCOTT’S LIQUID GOLD-INC. | |
Entity Central Index Key | 0000088000 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 12,805,663 | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-13458 | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0920811 | |
Entity Address, Address Line One | 8400 E. Crescent Parkway | |
Entity Address, Address Line Two | Suite 450 | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | (303) | |
Local Phone Number | 373-4860 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,277 | $ 7,970 | $ 15,449 | $ 24,583 |
Cost of sales | 2,358 | 5,100 | 8,337 | 14,624 |
Gross profit | 1,919 | 2,870 | 7,112 | 9,959 |
Operating expenses: | ||||
Advertising | 166 | 144 | 492 | 506 |
Selling | 1,691 | 2,542 | 5,752 | 7,388 |
General and administrative | 578 | 836 | 2,020 | 3,782 |
Intangible asset amortization | 87 | 278 | 313 | 834 |
Impairment of goodwill and intangible assets | 3,589 | |||
Total operating expenses | 2,522 | 3,800 | 12,166 | 12,510 |
Loss from operations | (603) | (930) | (5,054) | (2,551) |
Interest expense | (139) | (109) | (419) | (219) |
Loss before income taxes and discontinued operations | (742) | (1,039) | (5,473) | (2,770) |
Income tax expense | (2) | (1,224) | (55) | (798) |
Loss from continuing operations | (744) | (2,263) | (5,528) | (3,568) |
Income (loss) from discontinued operations, net of taxes | (205) | (246) | ||
Net loss | $ (744) | $ (2,468) | $ (5,528) | $ (3,814) |
Basic net loss per common shares: | ||||
Loss from continuing operations | $ (0.06) | $ (0.18) | $ (0.43) | $ (0.28) |
Loss from discontinued operations | (0.02) | (0.02) | ||
Net loss | (0.06) | (0.20) | (0.43) | (0.30) |
Diluted net loss per common shares: | ||||
Loss from continuing operations | (0.06) | (0.18) | (0.43) | (0.28) |
Loss from discontinued operations | (0.02) | (0.02) | ||
Net loss | $ (0.06) | $ (0.20) | $ (0.43) | $ (0.30) |
Weighted average shares outstanding: | ||||
Basic | 12,749 | 12,642 | 12,747 | 12,628 |
Diluted | 12,749 | 12,642 | 12,747 | 12,628 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 14 | $ 770 |
Restricted cash | 125 | 500 |
Accounts receivable, net | 1,791 | 3,516 |
Inventories | 6,289 | 5,677 |
Income taxes receivable | 247 | 320 |
Prepaid expenses | 214 | 436 |
Total current assets | 8,680 | 11,219 |
Property and equipment, net | 3 | 7 |
Goodwill | 838 | 1,710 |
Intangible assets, net | 2,272 | 5,160 |
Operating lease right-of-use assets | 2,553 | 2,735 |
Other assets | 38 | 38 |
Total assets | 14,384 | 20,869 |
Current liabilities: | ||
Accounts payable | 1,750 | 2,647 |
Accrued expenses | 397 | 747 |
Current portion of long-term debt | 2,684 | 1,000 |
Operating lease liabilities, current portion | 264 | 251 |
Total current liabilities | 5,095 | 4,645 |
Long-term debt, net of current portion and debt issuance costs | 555 | 1,876 |
Operating lease liabilities, net of current | 2,581 | 2,780 |
Other liabilities | 27 | 27 |
Total liabilities | 8,258 | 9,328 |
Shareholders’ equity: | ||
Preferred Stock, no par value, authorized 20,000 shares; no shares issued and outstanding | ||
Common Stock; $0.10 par value, authorized 50,000 shares; issued and outstanding 12,749 shares (2022) and 12,727 shares (2021) | 1,275 | 1,273 |
Capital in excess of par | 7,900 | 7,789 |
(Accumulated deficit) retained earnings | (3,049) | 2,479 |
Total shareholders’ equity | 6,126 | 11,541 |
Total liabilities and shareholders’ equity | $ 14,384 | $ 20,869 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,749,000 | 12,727,000 |
Common stock, shares outstanding | 12,749,000 | 12,727,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par | (Accumulated Deficit) Retained Earnings |
Beginning Balance, Value at Dec. 31, 2020 | $ 22,465 | $ 1,262 | $ 7,633 | $ 13,570 |
Beginning Balance, Shares at Dec. 31, 2020 | 12,618 | 12,618 | ||
Stock-based compensation, Value | $ 69 | 69 | ||
Net loss | (280) | (280) | ||
Ending Balance, Value at Mar. 31, 2021 | 22,254 | $ 1,262 | 7,702 | 13,290 |
Ending Balance, Shares at Mar. 31, 2021 | 12,618 | |||
Beginning Balance, Value at Dec. 31, 2020 | $ 22,465 | $ 1,262 | 7,633 | 13,570 |
Beginning Balance, Shares at Dec. 31, 2020 | 12,618 | 12,618 | ||
Net loss | $ (3,814) | |||
Ending Balance, Value at Sep. 30, 2021 | 18,807 | $ 1,266 | 7,785 | 9,756 |
Ending Balance, Shares at Sep. 30, 2021 | 12,666 | |||
Beginning Balance, Value at Mar. 31, 2021 | 22,254 | $ 1,262 | 7,702 | 13,290 |
Beginning Balance, Shares at Mar. 31, 2021 | 12,618 | |||
Stock-based compensation, Value | 33 | 33 | ||
Net loss | (1,066) | (1,066) | ||
Ending Balance, Value at Jun. 30, 2021 | $ 21,221 | $ 1,262 | 7,735 | 12,224 |
Ending Balance, Shares at Jun. 30, 2021 | 12,618 | 12,618 | ||
Stock-based compensation, Value | $ (3) | (3) | ||
Stock options exercised, Value | 57 | $ 4 | 53 | |
Stock options exercised, Shares | 45 | |||
Restricted stock unit vesting, Shares | 3 | |||
Net loss | (2,468) | (2,468) | ||
Ending Balance, Value at Sep. 30, 2021 | 18,807 | $ 1,266 | 7,785 | 9,756 |
Ending Balance, Shares at Sep. 30, 2021 | 12,666 | |||
Beginning Balance, Value at Dec. 31, 2021 | $ 11,541 | $ 1,273 | 7,789 | 2,479 |
Beginning Balance, Shares at Dec. 31, 2021 | 12,727 | 12,727 | ||
Stock-based compensation, Value | $ 35 | 35 | ||
Restricted stock unit vesting | 28 | $ 2 | 26 | |
Restricted stock unit vesting, Shares | 22 | |||
Net loss | (451) | (451) | ||
Ending Balance, Value at Mar. 31, 2022 | 11,153 | $ 1,275 | 7,850 | 2,028 |
Ending Balance, Shares at Mar. 31, 2022 | 12,749 | |||
Beginning Balance, Value at Dec. 31, 2021 | $ 11,541 | $ 1,273 | 7,789 | 2,479 |
Beginning Balance, Shares at Dec. 31, 2021 | 12,727 | 12,727 | ||
Net loss | $ (5,528) | |||
Ending Balance, Value at Sep. 30, 2022 | $ 6,126 | $ 1,275 | 7,900 | (3,049) |
Ending Balance, Shares at Sep. 30, 2022 | 12,749 | 12,749 | ||
Beginning Balance, Value at Mar. 31, 2022 | $ 11,153 | $ 1,275 | 7,850 | 2,028 |
Beginning Balance, Shares at Mar. 31, 2022 | 12,749 | |||
Stock-based compensation, Value | 22 | 22 | ||
Net loss | (4,333) | (4,333) | ||
Ending Balance, Value at Jun. 30, 2022 | $ 6,842 | $ 1,275 | 7,872 | (2,305) |
Ending Balance, Shares at Jun. 30, 2022 | 12,749 | 12,749 | ||
Stock-based compensation, Value | $ 28 | 28 | ||
Net loss | (744) | (744) | ||
Ending Balance, Value at Sep. 30, 2022 | $ 6,126 | $ 1,275 | $ 7,900 | $ (3,049) |
Ending Balance, Shares at Sep. 30, 2022 | 12,749 | 12,749 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (5,528) | $ (3,568) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 480 | 1,357 |
Stock-based compensation | 113 | 99 |
Deferred income taxes | 784 | |
Impairment of goodwill and intangible assets | 3,589 | |
Change in operating assets and liabilities: | ||
Accounts receivable | 1,725 | 228 |
Inventories | (612) | (2,651) |
Prepaid expenses and other assets | 222 | 175 |
Income taxes receivable | 73 | 192 |
Accounts payable, accrued expenses, and other liabilities | (1,251) | 1,990 |
Total adjustments to net loss | 4,339 | 2,174 |
Net cash used in operating activities | (1,189) | (1,394) |
Cash flows from investing activities: | ||
Purchase of software | (142) | (262) |
Net cash used in investing activities | (142) | (262) |
Cash flows from financing activities: | ||
Repayments on term loans | (2,000) | (750) |
Proceeds from revolving credit facility | 20,763 | 29,824 |
Repayments of revolving credit facility | (18,563) | (27,222) |
Proceeds from exercise of stock options | 57 | |
Net cash provided by financing activities | 200 | 1,909 |
Net (decrease) increase in cash and restricted cash | (1,131) | 253 |
Cash and restricted cash, beginning of period | 1,270 | 5 |
Cash and restricted cash, end of period | 139 | 258 |
Supplemental disclosures: | ||
Cash paid during the period for interest | $ 256 | $ 372 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies (a) Company Background Scott’s Liquid Gold-Inc., a Colorado corporation was incorporated on February 15, 1954. Scott’s Liquid Gold-Inc. and its wholly-owned subsidiaries (collectively, the “Company,” “we,” “our,” or “us”) develop, market and sell high quality products in two segments: household products and health and beauty care products. (b) Principles of Consolidation Our Condensed Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. On December 23, 2021, we entered into an asset purchase agreement with a buyer, pursuant to which we agreed to sell to all of our right, title and interest in and to certain assets of the Dryel ® product line. We have reflected the operations of the Dryel ® product line as discontinued operations for all periods presented, which were previously classified under our household products segment. See Note 3 for further information. (c) Basis of Presentation The unaudited Condensed Consolidated Statements of Operations, Condensed Consolidated Balance Sheets, and Condensed Consolidated Statements of Cash Flows included in this Report have been prepared by the Company. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at September 30, 2022 and results of operations and cash flows for all periods have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the period ended September 30, 2022 are not necessarily indicative of the operating results for the full year and are unaudited. (d) Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, intangible asset useful lives and amortization method, fair value of assets acquired in business combinations, operating lease right-of-use assets and operating lease liabilities, and stock-based compensation. Actual results could differ from our estimates. (e) Cash and Restricted Cash Cash and restricted cash consist of the following: September 30, 2022 December 31, 2021 Cash $ 14 $ 770 Restricted Cash 125 500 $ 139 $ 1,270 (f) Inventories Valuation and Reserves Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We estimate an inventory reserve, which is generally not material to our financial statements, for slow moving and obsolete products and raw materials based upon, among other things, an assessment of historical and anticipated sales of our products. In the event that actual results differ from our estimates, the results of future periods may be impacted. Inventories were comprised of the following at: September 30, 2022 December 31, 2021 Finished goods 5,986 $ 5,499 Raw materials 303 178 $ 6,289 $ 5,677 Our remaining raw materials balance is to be sold to contract manufacturing partners based on production demand. (g) Property and Equipment Property and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years . Office furniture and office machines are estimated to have useful lives of 10 to 20 years and three to five years , respectively. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. (h) Leases Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Certain nonlease components, such as maintenance and other services provided by the lessor, are included in the valuation of the lease. Leases with an initial term of 12 months or less, which are not material to our financial statements, are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. Lease agreements with lease and nonlease components are combined as a single lease component. The Company evaluates reimbursable leasehold improvements based on whether improvements are indicative of a lessor or lessee asset. The Company concluded that all of its reimbursable leasehold improvement payments have qualified as lessor assets and, as such, have accounted for leasehold improvement payments as prepaid rent included in prepaid expenses on the Condensed Consolidated Balance Sheets. (i) Intangible Assets and Goodwill Goodwill is subject to impairment tests at least annually or when events or changes in circumstances indicate that an asset may be impaired. Other intangible assets with finite lives, such as customer relationships, trade names, and formulas, are amortized over their estimated useful lives, generally ranging from 5 to 20 years . Amortization expense related to intangible assets is included in Operating Expenses on the Condensed Consolidated Statement of Operations. Internal-use software costs recognized as an intangible asset relates to capitalizable costs of computer software obtained for internal-use as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40-30-1. All other internal-use software costs are expensed as incurred by the Company. Amortization will be recorded over the estimated useful life of the software once the software is ready for its intended use and placed into service. In the second quarter of 2022, our internal-use software was implemented for its intended use. The estimated useful life for internal-use software is five years and will be periodically reassessed based on considerations for obsolescence, technology, competition, and other economic factors. (j) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include cash, restricted cash, and accounts receivable. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. Historically, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts, which is generally not material to our financial statements, based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. The recorded amounts for cash, restricted cash, receivables, other current assets, accounts payable, and accrued expenses approximate fair value due to the short-term nature of these financial instruments. (k) Income Taxes Income taxes reflect the tax effects of transactions reported in the Condensed Consolidated Financial Statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. A valuation allowance is established when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits or expense. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the Condensed Consolidated Statements of Income or accrued on the Condensed Consolidated Balance Sheets. Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes for the three and nine months ended September 30, 2022 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 21 % to pre-tax income primarily due to valuation allowance. The effective tax rate for the nine months ended September 30, 2022 and 2021 was 0.0 % and 21.6 % respectively. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, and permanent differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. In assessing the need for a valuation allowance, management must determine that there will be sufficient taxable income to realize deferred tax assets. Based upon the historical and anticipated future losses, management has determined that the deferred tax assets do not meet the more likely than not threshold for realizability. Accordingly, a valuation allowance has been recorded against the Company’s net deferred tax assets as of September 30, 2022, and December 31, 2021. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In particular, under the CARES Act, NOLs arising in 2018, 2019, and 2020 taxable years may be carried back to each of the preceding five years to generate a refund. The tax impact of the carryback of the 2020 loss was recorded in the first quarter 2021 income tax provision. We elected to defer our portion of social security tax payments, and we paid this liability in the third quarter of 2021. (l) Revenue Recognition Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. Certain criteria are required to be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Our revenue contracts are identified when purchase orders are received and accepted from customers and represent a single performance obligation to sell our products to a customer. Net sales reflect the transaction prices for contracts, which include products shipped at selling list prices reduced by variable consideration. Variable consideration includes estimates for expected customer allowances, promotional programs for consumers, and sales returns. Based on our customer-by-customer history, our variable consideration estimates are generally accurate and subsequent adjustments are generally immaterial. Variable consideration is primarily comprised of customer allowances. Customer allowances primarily include reserves for trade promotions to support price features, displays, slotting fees, and other merchandising of our products to our customers. Promotional programs for consumers primarily include coupons, rebates, and certain other promotional programs, and do not represent a significant portion of variable consideration. The costs of both customer allowances and promotional programs for consumers are estimated using either the expected value or most likely amount approach, depending on the nature of the allowance, using all reasonably available information, including our historical experience and current expectations. Customer allowances and promotional programs for consumers are reflected in the transaction price when sales are recorded. We may adjust our estimates based on actual results and consideration of other factors that cause allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. Sales returns are generally not material to our financial statements, and do not comprise a significant portion of variable consideration. Estimates for sales returns are based on, among other things, an assessment of historical trends, information from customers, and anticipated returns related to current sales activity. These estimates are established in the period of sale and reduce our revenue in that period. Sales are recorded at the time that control of the products is transferred to customers. In evaluating the timing of the transfer of control of products to customers, we consider several indicators, including significant risks and rewards of products, our right to payment, and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to customers. We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. Customer allowances for trade promotions and allowance for doubtful accounts are included in net accounts receivable on the Condensed Consolidated Balance Sheets and were as follows: September 30, 2022 December 31, 2021 Trade promotions $ 379 $ 1,242 Allowance for doubtful accounts 44 14 $ 423 $ 1,256 (m) Advertising Costs We expense advertising costs as incurred. (n) Stock-Based Compensation We account for share based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. We determine the estimated grant-date fair value of stock options with only service conditions using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including the estimated fair value of underlying common stock, risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. We recognize compensation costs ratably over the vesting period using the straight-line method, which approximates the service period. The Company issues restricted stock unit ("RSUs") awards with restrictions that lapse upon the passage of time (service vesting) and satisfaction of market conditions targeted to our Company’s stock price. For those RSU awards with only service vesting, the Company recognizes compensation cost on a straight-line basis over the service period. For awards with both market and service conditions, the Company starts recognizing compensation cost over the requisite service period, with the effect of the market conditions reflected in the calculation of the award's fair value at grant date. The Company values awards with only service vesting requirements based on the grant date share price. The Company values awards with market and service conditions using a Monte Carlo simulation. The Company determines the requisite service period for awards with both market and service conditions based on the longer of the explicit service period and the derived service period. Stock awards that contain market vesting conditions are included in the computations of diluted EPS reflecting the average number of shares that would be issued based on the highest 30-day average market price during the reporting periods, if their effect is dilutive. If the condition is based on an average of market prices over some period of time, the corresponding average for the period is used. (o) Operating Costs and Expenses Classification Cost of sales includes costs associated with the purchase of goods from our third-party manufacturing partners, which include labor, materials, and other expenses associated with the manufacturing of our products, freight-in, purchasing and receiving, quality control, repairs, maintenance, and other indirect costs. We classify freight-out as selling expenses. Other selling expenses consist primarily of costs for warehousing and distribution, sales and sales support personnel, brokerage commissions, customer compliance fines, and promotional costs. Freight-out costs included in selling expenses totaled $ 429 and $ 624 for the three months ended September 30, 2022 and 2021, respectively, and totaled $ 1,725 and $ 2,163 for the nine months ended September 30, 2022 and 2021, respectively. General and administrative expenses consist primarily of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility related expenses, and other general support costs. On April 29, 2021, the Company announced that Mark E. Goldstein, the President and Chief Executive Officer of the Company and a member of the Board of Directors, retired effective as of April 26, 2021 . In connection with Mr. Goldstein’s retirement, the Company and Mr. Goldstein entered into a Separation Agreement, Waiver and Release (the “Separation Agreement”), pursuant to which the Company will pay Mr. Goldstein $ 720 in severance payments (equal to 18 months base salary) over a period of 30 months and reimbursement for the costs of continuing health benefits for a period of 18 months. Severance costs of $ 805 were recognized in the second quarter of 2021 and are included in general and administrative expenses. Accrued severance costs are included in accrued expenses on the Condensed Consolidated Balance Sheets . (p) Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The purpose of ASU 2020-04 is to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply amendments prospectively through December 31, 2022. The Company adopted ASU 2020-04 effective July 1, 2022 . The adoption of this standard did no t have a material impact on our financial statements. (q) Recently Issued Accounting Standards In September 2022, the FASB issued ASU No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We are currently assessing the impact of this guidance on our financial statements. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 2. Going Concern The accompanying unaudited Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern. The Company had cash and restricted cash of $ 139 and $ 944 of available borrowing capacity under our revolving credit facility as of September 30, 2022. Primarily due to a decline in net sales and increases in costs associated with the manufacture and distribution of our products, the Company used net cash in operating activities of $ 1,189 during the nine months ended September 30, 2022. The Company’s debt agreements with UMB Bank, N.A. and La Plata Capital, LLC mature on July 1, 2023 and November 9, 2023 , respectively. Management’s assessment of cash flow forecasts indicate that, absent any other action, the Company likely will require additional liquidity to continue its operations over the next 12 months. Management has implemented actions to reduce the Company’s operating expenses and has approved a plan to extend and restructure debt facilities. Management is considering additional various strategic actions including asset sales, workforce reduction, deferring or eliminating certain capital expenditures, and further reduction of other operating expenses to ensure alignment with customer demand in order to address liquidity needs and pursue its business plan. The Company expects that these strategic actions will reduce expenses and outstanding debt balances and provide required liquidity for ongoing operations. If these plans aren't successfully implemented there could be substantial doubt about the Company's ability to continue as a going concern. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 3. Discontinued Operations On December 23, 2021, we entered into an asset purchase agreement with a buyer, pursuant to which we agreed to sell all of our right, title and interest in and to certain assets of the Dryel ® product line. The total consideration paid to us was $ 4,850 , plus an amount equal to the value of the Dryel ® inventory of $ 440 , subject to post-close adjustment. At closing, $ 500 of the total consideration was held in escrow for a twelve-month period following the closing date, to be released ratably in four installments in 2022. We received the first three installment payments during the first nine months ended September 30, 2022. This consideration is reflected as Restricted Cash on the Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021, respectively. Dryel ® generated approximately $ 2,800 of net sales in the trailing twelve-month period ending December 31, 2021. Under ASC 360, a long-lived asset group should be classified as held for sale if all of the established criteria are met. The sale of Dryel ® did not meet these criteria in the year ending December 31, 2021, because we had not established an active program to locate a buyer and because the brand was not being marketed for sale. All efforts between the buyer and the Company occurred during the fourth quarter of 2021. As a result, there was no adjustment to fair value under ASC 360 guidance related to held for sale assets, and the difference between the consideration paid to us and the carrying amount of all assets is reflected in the loss on sale of discontinued operations. We have reflected the operations of the Dryel ® product line as discontinued operations. Our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations report discontinued operations separate from continuing operations. Our Condensed Consolidated Statements of Equity and Statements of Cash Flows combine the results of continuing and discontinued operations. As of the three and nine months ended September 30, 2022 , there were no operating results from discontinued operations included in the Condensed Consolidated Statements of Operations. As of September 30, 2022 and December 31, 2021 , respectively, there were no assets and liabilities relating to discontinued operations presented separately in the Condensed Consolidated Balance Sheets. There were no capital expenditures or significant operating and investing noncash items related to discontinued operations during the nine months ended September 30, 2022 and 2021 , respectively. A summary of financial information related to our discontinued operations is as follows: Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Net sales $ 585 $ 1,856 Cost of sales 313 1,013 Gross profit 272 843 Operating expenses: Selling 144 367 Intangible asset amortization 123 369 Interest expense 99 298 Loss from discontinued operations, before tax ( 94 ) ( 191 ) Income tax expense ( 111 ) ( 55 ) Loss from discontinued operations, net of tax $ ( 205 ) $ ( 246 ) |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 4. Stock-Based Compensation On January 18, 2022, we granted 25 RSUs to an employee (the “2022 Individual Employee Grant”) with a grant date fair value of $ 10 . The 2022 Individual Employee Grant vested one-third on the initial grant date, and the remaining two-thirds will vest on each anniversary of the grant date. On March 2, 2022, we granted 15 shares of restricted stock to one executive all of which vested on the grant date with a fair value of $ 18 . Compensation cost related to stock options totaled $ 10 and $ 44 in the nine months ended September 30, 2022 and 2021 , respectively. The stock options were fully vested in the second quarter of 2022. There was no tax benefit from recording the non-cash expense as it relates to the options granted to employees, as these were qualified stock options which are not normally tax deductible. Compensation cost related to RSUs totaled $ 103 and $ 55 for the nine months ended September 30, 2022 and 2021, respectively. Approximately $ 170 of total unrecognized compensation costs related to non-vested RSUs is expected to be recognized over the next three years . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5. Earnings per Share Per share data is determined by using the weighted average number of common shares outstanding. Common equivalent shares are considered only for diluted earnings per share, unless considered anti-dilutive. Common equivalent shares, determined using the treasury stock method, result from stock options with exercise prices that are below the average market price of the common stock. Basic earnings per share include no dilution and are computed by dividing income available to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflect the potential of securities that could share in our earnings. A reconciliation of the weighted average number of common shares outstanding (in thousands) is as follows. The dilutive effect of stock options and RSUs are excluded for periods in which the Company has a net loss because the impact is anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Common shares outstanding, beginning of the period 12,749 12,618 12,727 12,618 Weighted average common shares issued - 24 20 10 Weighted average number of common shares outstanding 12,749 12,642 12,747 12,628 Dilutive effect of common share equivalents - - - - Diluted weighted average number of common shares outstanding 12,749 12,642 12,747 12,628 Common stock equivalents (in thousands) that have been excluded from the calculation of earnings per share because they would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options 153 15 153 15 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 6. Segment Information We operate in two different segments: household products and health and beauty care products. We have chosen to organize our business around these segments based on differences in the products sold. Accounting policies for our segments are the same as those described in Note 1. We evaluate segment performance based on segment income or loss from operations. The following provides information on our segments for the three and nine months ended September 30: Three Months Ended September 30, 2022 Household Products Health and Beauty Care Products Total Net sales $ 2,748 $ 1,529 $ 4,277 Loss from operations ( 371 ) ( 232 ) ( 603 ) Capital and intangible asset expenditures - - - Depreciation and amortization 99 41 140 Three Months Ended September 30, 2021 Household Products Health and Beauty Care Products Total Net sales $ 3,846 $ 4,124 $ 7,970 Loss from operations ( 382 ) ( 548 ) ( 930 ) Capital and intangible asset expenditures 113 - 113 Depreciation and amortization 297 155 452 Nine Months Ended September 30, 2022 Household Products Health and Beauty Care Products Total Net sales $ 9,103 $ 6,346 $ 15,449 Loss from operations ( 4,854 ) ( 200 ) ( 5,054 ) Capital and intangible asset expenditures 142 - 142 Depreciation and amortization 386 93 480 Nine Months Ended September 30, 2021 Household Products Health and Beauty Care Products Total Net sales $ 10,762 $ 13,821 $ 24,583 Loss from operations ( 1,960 ) ( 591 ) ( 2,551 ) Capital and intangible asset expenditures 262 - 262 Depreciation and amortization 893 464 1,357 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets There was no impairment in the three months ended September 30, 2022 and 2021, respectively. During the second quarter of 2022, we experienced a significant decline in our stock price and market capitalization and revised internal forecasts relating to all reporting units due to inflationary related pressures at our customers which have caused sales decreases. We concluded that the changes in circumstances in these reporting units triggered the need for a quantitative review of the carrying values of goodwill and certain intangible assets and resulted in impairment charges to our All-Purpose reporting unit during the nine months ended September 30, 2022 and resulted in the following impairment charges: Intangible Assets Goodwill Total All-Purpose 2,717 872 3,589 There was no impairment in the nine months ended September 30, 2021 . The changes in the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2022 and 2021 were as follows: Detergent Shampoo All-Purpose Total Balance, January 1, 2022 $ - $ - $ 1,710 $ 1,710 Additions - - - - Impairment - - ( 872 ) ( 872 ) Balance, September 30, 2022 $ - $ - $ 838 $ 838 Balance, January 1, 2021 $ 593 $ 1,520 $ 1,710 $ 3,823 Additions - - - - Impairment - - - - Balance, September 30, 2021 $ 593 $ 1,520 $ 1,710 $ 3,823 Intangible assets, which are comprised of our capitalized costs of software obtained for internal-use or are related to our acquisition of our Prell ® , Denorex ® , BIZ ® and Kids N Pets ® brands, consisted of the following: As of September 30, 2022 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Customer relationships $ - $ - $ - $ 2,103 $ 329 $ 1,774 Trade names 970 99 871 1,850 151 1,699 Formulas and batching processes 1,000 441 559 1,370 452 918 Internal-use software 898 60 838 756 - 756 Non-compete agreement 33 29 4 48 35 13 $ 2,901 $ 629 $ 2,272 $ 6,127 $ 967 $ 5,160 The change in the net carrying amounts of intangible assets during 2022 was due to capitalization of costs related to our internal-use software, the impact of impairment charges related to intangible assets in our All-Purpose reporting unit, and amortization expense. Amortization expense for the three months ended September 30, 2022 and 2021 was $ 87 and $ 278 , respectively. Amortization expense for the nine months ended September 30, 2022 and 2021 was $ 313 and $ 433 , respectively. Estimated amortization expense for 2022 and subsequent years is as follows: Remainder of 2022 $ 86 2023 344 2024 344 2025 343 2026 342 Thereafter 813 Total $ 2,272 |
Long-Term Debt and Line-of-Cred
Long-Term Debt and Line-of-Credit | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Line-of-Credit | Note 8. Long-Term Debt and Line-of-Credit On July 1, 2020, we entered into a Loan and Security Agreement (as amended, the “UMB Loan Agreement”) with UMB Bank, N.A. (“UMB”). Under the UMB Loan Agreement we obtained a $ 3,000 term loan, with equal monthly payments fully amortized over three years , and interest at the LIBOR Rate + 4.50 % with a floor of 5.50 %, and a revolving credit facility, with a maximum commitment of $ 7,000 with interest at the LIBOR Rate + 3.75 %, with a floor of 4.75 %. On August 10, 2022, the revolving credit facility was reduced to a maximum commitment of $ 4,000 with interest at the one month term SOFR rate + 6.83 %, with a floor of 7.75 %. The revolving credit facility will terminate on July 1, 2023 , unless terminated earlier pursuant to the terms of the UMB Loan Agreement. The loans are secured by all of the assets of the Company and all of its subsidiaries. The UMB Loan Agreement requires compliance with affirmative, negative, and financial covenants, as determined on a monthly basis. The UMB Loan Agreement also contains covenants typical of transactions of this type, including among others, limitations on our ability to: create, incur or assume any indebtedness or lien on our assets; pay dividends or make other distributions; redeem, retire or acquire outstanding common stock, options, warrants or other rights; make fundamental changes to our corporate structure or business; make investments or sell assets; or engage in certain other activities as set forth in the UMB Loan Agreement. The Company was in compliance with the UMB Loan Agreement financial covenants as of September 30, 2022. As of September 30, 2022, our UMB revolving credit facility and UMB term loan had an outstanding balance of $ 2,414 and $ 0 , respectively, with an all-in interest rate of 9.87 % and 9.13 %, respectively. Unamortized loan costs were as $ 149 of September 30, 2022. On November 9, 2021 , we entered into a loan and security agreement (the “La Plata Loan Agreement”) with La Plata Capital, LLC (“La Plata”). Under the La Plata Loan Agreement, we obtained a $ 2,000 term loan that bears interest at 14 % and a maturity date of November 9, 2023. Interest-only payments are required on a monthly basis beginning in January 2022 and ending on December 1, 2022. Beginning on January 1, 2023, monthly principal payments of $ 30 are required in addition to accrued and unpaid interest. All remaining unpaid principal and interest are fully due on November 9, 2023 . The La Plata Loan Agreement requires compliance with affirmative, negative, and financial covenants, as determined on a monthly basis beginning in July 2022. The La Plata Loan Agreement is secured by all of the assets of the Company and all of its subsidiaries, subordinate to the security of the UMB Loan Agreement. In conjunction with this agreement, we also entered into an intercreditor and subordination agreement with UMB and La Plata, effective November 9, 2021. The Company was in compliance with the La Plata Loan Agreement as of September 30, 2022. As of September 30, 2022, our La Plata term loan had an outstanding balance of $ 1,000 . La Plata unamortized loan costs were $ 26 as of September 30, 2022. As of September 30, 2022, the total principal payments due on our outstanding debt were as follows: Revolving Credit Facility Term Loan Total Remainder of 2022 $ - - - 2023 2,414 1,000 3,414 Total minimum principal payments $ 2,414 $ 1,000 $ 3,414 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 9. Leases We have entered into a lease for our corporate headquarters with a remaining lease term of 9 years. This lease includes both lease and nonlease components, which are accounted for as a single lease component as we have elected the practical expedient to combine these components for all leases. As this lease does not provide an implicit rate, we calculated the right-of-use assets and lease liabilities using our secured incremental borrowing rate at the lease commencement date. We currently do not have any finance leases outstanding. Information related to leases was as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease information: Operating lease cost $ 100 $ 300 Operating cash flows from operating leases 100 300 Net assets obtained in exchange for new operating lease liabilities - - Weighted average remaining lease term in years 8.17 8.17 Weighted average discount rate 5.1 % 5.1 % Future minimum annual lease payments are as follows: Remainder of 2022 $ 99 2023 406 2024 413 2025 420 2026 427 Thereafter 1,739 Total minimum lease payments $ 3,504 Less imputed interest ( 659 ) Total operating lease liability $ 2,845 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (b) Principles of Consolidation Our Condensed Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. On December 23, 2021, we entered into an asset purchase agreement with a buyer, pursuant to which we agreed to sell to all of our right, title and interest in and to certain assets of the Dryel ® product line. We have reflected the operations of the Dryel ® product line as discontinued operations for all periods presented, which were previously classified under our household products segment. See Note 3 for further information. |
Basis of Presentation | (c) Basis of Presentation The unaudited Condensed Consolidated Statements of Operations, Condensed Consolidated Balance Sheets, and Condensed Consolidated Statements of Cash Flows included in this Report have been prepared by the Company. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at September 30, 2022 and results of operations and cash flows for all periods have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the period ended September 30, 2022 are not necessarily indicative of the operating results for the full year and are unaudited. |
Use of Estimates | (d) Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, intangible asset useful lives and amortization method, fair value of assets acquired in business combinations, operating lease right-of-use assets and operating lease liabilities, and stock-based compensation. Actual results could differ from our estimates. |
Cash and Restricted Cash | (e) Cash and Restricted Cash Cash and restricted cash consist of the following: September 30, 2022 December 31, 2021 Cash $ 14 $ 770 Restricted Cash 125 500 $ 139 $ 1,270 |
Inventories Valuation and Reserves | (f) Inventories Valuation and Reserves Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We estimate an inventory reserve, which is generally not material to our financial statements, for slow moving and obsolete products and raw materials based upon, among other things, an assessment of historical and anticipated sales of our products. In the event that actual results differ from our estimates, the results of future periods may be impacted. Inventories were comprised of the following at: September 30, 2022 December 31, 2021 Finished goods 5,986 $ 5,499 Raw materials 303 178 $ 6,289 $ 5,677 Our remaining raw materials balance is to be sold to contract manufacturing partners based on production demand. |
Property and Equipment | (g) Property and Equipment Property and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years . Office furniture and office machines are estimated to have useful lives of 10 to 20 years and three to five years , respectively. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. |
Leases | (h) Leases Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Certain nonlease components, such as maintenance and other services provided by the lessor, are included in the valuation of the lease. Leases with an initial term of 12 months or less, which are not material to our financial statements, are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. Lease agreements with lease and nonlease components are combined as a single lease component. The Company evaluates reimbursable leasehold improvements based on whether improvements are indicative of a lessor or lessee asset. The Company concluded that all of its reimbursable leasehold improvement payments have qualified as lessor assets and, as such, have accounted for leasehold improvement payments as prepaid rent included in prepaid expenses on the Condensed Consolidated Balance Sheets. |
Intangible Assets and Goodwill | (i) Intangible Assets and Goodwill Goodwill is subject to impairment tests at least annually or when events or changes in circumstances indicate that an asset may be impaired. Other intangible assets with finite lives, such as customer relationships, trade names, and formulas, are amortized over their estimated useful lives, generally ranging from 5 to 20 years . Amortization expense related to intangible assets is included in Operating Expenses on the Condensed Consolidated Statement of Operations. Internal-use software costs recognized as an intangible asset relates to capitalizable costs of computer software obtained for internal-use as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40-30-1. All other internal-use software costs are expensed as incurred by the Company. Amortization will be recorded over the estimated useful life of the software once the software is ready for its intended use and placed into service. In the second quarter of 2022, our internal-use software was implemented for its intended use. The estimated useful life for internal-use software is five years and will be periodically reassessed based on considerations for obsolescence, technology, competition, and other economic factors. |
Financial Instruments | (j) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include cash, restricted cash, and accounts receivable. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. Historically, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts, which is generally not material to our financial statements, based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. The recorded amounts for cash, restricted cash, receivables, other current assets, accounts payable, and accrued expenses approximate fair value due to the short-term nature of these financial instruments. |
Income Taxes | (k) Income Taxes Income taxes reflect the tax effects of transactions reported in the Condensed Consolidated Financial Statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. A valuation allowance is established when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits or expense. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the Condensed Consolidated Statements of Income or accrued on the Condensed Consolidated Balance Sheets. Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes for the three and nine months ended September 30, 2022 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 21 % to pre-tax income primarily due to valuation allowance. The effective tax rate for the nine months ended September 30, 2022 and 2021 was 0.0 % and 21.6 % respectively. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, and permanent differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. In assessing the need for a valuation allowance, management must determine that there will be sufficient taxable income to realize deferred tax assets. Based upon the historical and anticipated future losses, management has determined that the deferred tax assets do not meet the more likely than not threshold for realizability. Accordingly, a valuation allowance has been recorded against the Company’s net deferred tax assets as of September 30, 2022, and December 31, 2021. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In particular, under the CARES Act, NOLs arising in 2018, 2019, and 2020 taxable years may be carried back to each of the preceding five years to generate a refund. The tax impact of the carryback of the 2020 loss was recorded in the first quarter 2021 income tax provision. We elected to defer our portion of social security tax payments, and we paid this liability in the third quarter of 2021. |
Revenue Recognition | (l) Revenue Recognition Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. Certain criteria are required to be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Our revenue contracts are identified when purchase orders are received and accepted from customers and represent a single performance obligation to sell our products to a customer. Net sales reflect the transaction prices for contracts, which include products shipped at selling list prices reduced by variable consideration. Variable consideration includes estimates for expected customer allowances, promotional programs for consumers, and sales returns. Based on our customer-by-customer history, our variable consideration estimates are generally accurate and subsequent adjustments are generally immaterial. Variable consideration is primarily comprised of customer allowances. Customer allowances primarily include reserves for trade promotions to support price features, displays, slotting fees, and other merchandising of our products to our customers. Promotional programs for consumers primarily include coupons, rebates, and certain other promotional programs, and do not represent a significant portion of variable consideration. The costs of both customer allowances and promotional programs for consumers are estimated using either the expected value or most likely amount approach, depending on the nature of the allowance, using all reasonably available information, including our historical experience and current expectations. Customer allowances and promotional programs for consumers are reflected in the transaction price when sales are recorded. We may adjust our estimates based on actual results and consideration of other factors that cause allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. Sales returns are generally not material to our financial statements, and do not comprise a significant portion of variable consideration. Estimates for sales returns are based on, among other things, an assessment of historical trends, information from customers, and anticipated returns related to current sales activity. These estimates are established in the period of sale and reduce our revenue in that period. Sales are recorded at the time that control of the products is transferred to customers. In evaluating the timing of the transfer of control of products to customers, we consider several indicators, including significant risks and rewards of products, our right to payment, and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to customers. We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. Customer allowances for trade promotions and allowance for doubtful accounts are included in net accounts receivable on the Condensed Consolidated Balance Sheets and were as follows: September 30, 2022 December 31, 2021 Trade promotions $ 379 $ 1,242 Allowance for doubtful accounts 44 14 $ 423 $ 1,256 |
Advertising Costs | (m) Advertising Costs We expense advertising costs as incurred. |
Stock-based Compensation | (n) Stock-Based Compensation We account for share based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. We determine the estimated grant-date fair value of stock options with only service conditions using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including the estimated fair value of underlying common stock, risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. We recognize compensation costs ratably over the vesting period using the straight-line method, which approximates the service period. The Company issues restricted stock unit ("RSUs") awards with restrictions that lapse upon the passage of time (service vesting) and satisfaction of market conditions targeted to our Company’s stock price. For those RSU awards with only service vesting, the Company recognizes compensation cost on a straight-line basis over the service period. For awards with both market and service conditions, the Company starts recognizing compensation cost over the requisite service period, with the effect of the market conditions reflected in the calculation of the award's fair value at grant date. The Company values awards with only service vesting requirements based on the grant date share price. The Company values awards with market and service conditions using a Monte Carlo simulation. The Company determines the requisite service period for awards with both market and service conditions based on the longer of the explicit service period and the derived service period. Stock awards that contain market vesting conditions are included in the computations of diluted EPS reflecting the average number of shares that would be issued based on the highest 30-day average market price during the reporting periods, if their effect is dilutive. If the condition is based on an average of market prices over some period of time, the corresponding average for the period is used. |
Operating Costs and Expenses Classification | (o) Operating Costs and Expenses Classification Cost of sales includes costs associated with the purchase of goods from our third-party manufacturing partners, which include labor, materials, and other expenses associated with the manufacturing of our products, freight-in, purchasing and receiving, quality control, repairs, maintenance, and other indirect costs. We classify freight-out as selling expenses. Other selling expenses consist primarily of costs for warehousing and distribution, sales and sales support personnel, brokerage commissions, customer compliance fines, and promotional costs. Freight-out costs included in selling expenses totaled $ 429 and $ 624 for the three months ended September 30, 2022 and 2021, respectively, and totaled $ 1,725 and $ 2,163 for the nine months ended September 30, 2022 and 2021, respectively. General and administrative expenses consist primarily of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility related expenses, and other general support costs. On April 29, 2021, the Company announced that Mark E. Goldstein, the President and Chief Executive Officer of the Company and a member of the Board of Directors, retired effective as of April 26, 2021 . In connection with Mr. Goldstein’s retirement, the Company and Mr. Goldstein entered into a Separation Agreement, Waiver and Release (the “Separation Agreement”), pursuant to which the Company will pay Mr. Goldstein $ 720 in severance payments (equal to 18 months base salary) over a period of 30 months and reimbursement for the costs of continuing health benefits for a period of 18 months. Severance costs of $ 805 were recognized in the second quarter of 2021 and are included in general and administrative expenses. Accrued severance costs are included in accrued expenses on the Condensed Consolidated Balance Sheets . |
Recently Adopted Accounting Standards | (p) Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The purpose of ASU 2020-04 is to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply amendments prospectively through December 31, 2022. The Company adopted ASU 2020-04 effective July 1, 2022 . The adoption of this standard did no t have a material impact on our financial statements. |
Recently Issued Accounting Standards | (q) Recently Issued Accounting Standards In September 2022, the FASB issued ASU No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We are currently assessing the impact of this guidance on our financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Restricted Cash | Cash and restricted cash consist of the following: September 30, 2022 December 31, 2021 Cash $ 14 $ 770 Restricted Cash 125 500 $ 139 $ 1,270 |
Composition of Inventory | Inventories were comprised of the following at: September 30, 2022 December 31, 2021 Finished goods 5,986 $ 5,499 Raw materials 303 178 $ 6,289 $ 5,677 |
Summary of Customer Allowances for Trade Promotions and Allowance for Doubtful Accounts | Customer allowances for trade promotions and allowance for doubtful accounts are included in net accounts receivable on the Condensed Consolidated Balance Sheets and were as follows: September 30, 2022 December 31, 2021 Trade promotions $ 379 $ 1,242 Allowance for doubtful accounts 44 14 $ 423 $ 1,256 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Dryel | Disposal of Product Line | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Summary of Financial Information Related to Discontinued Operations | A summary of financial information related to our discontinued operations is as follows: Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Net sales $ 585 $ 1,856 Cost of sales 313 1,013 Gross profit 272 843 Operating expenses: Selling 144 367 Intangible asset amortization 123 369 Interest expense 99 298 Loss from discontinued operations, before tax ( 94 ) ( 191 ) Income tax expense ( 111 ) ( 55 ) Loss from discontinued operations, net of tax $ ( 205 ) $ ( 246 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Weighted Average Number of Common Shares Outstanding | A reconciliation of the weighted average number of common shares outstanding (in thousands) is as follows. The dilutive effect of stock options and RSUs are excluded for periods in which the Company has a net loss because the impact is anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Common shares outstanding, beginning of the period 12,749 12,618 12,727 12,618 Weighted average common shares issued - 24 20 10 Weighted average number of common shares outstanding 12,749 12,642 12,747 12,628 Dilutive effect of common share equivalents - - - - Diluted weighted average number of common shares outstanding 12,749 12,642 12,747 12,628 |
Common Stock Equivalents Excluded From the Calculation of Earnings Per Share | Common stock equivalents (in thousands) that have been excluded from the calculation of earnings per share because they would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options 153 15 153 15 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Information on Segments | The following provides information on our segments for the three and nine months ended September 30: Three Months Ended September 30, 2022 Household Products Health and Beauty Care Products Total Net sales $ 2,748 $ 1,529 $ 4,277 Loss from operations ( 371 ) ( 232 ) ( 603 ) Capital and intangible asset expenditures - - - Depreciation and amortization 99 41 140 Three Months Ended September 30, 2021 Household Products Health and Beauty Care Products Total Net sales $ 3,846 $ 4,124 $ 7,970 Loss from operations ( 382 ) ( 548 ) ( 930 ) Capital and intangible asset expenditures 113 - 113 Depreciation and amortization 297 155 452 Nine Months Ended September 30, 2022 Household Products Health and Beauty Care Products Total Net sales $ 9,103 $ 6,346 $ 15,449 Loss from operations ( 4,854 ) ( 200 ) ( 5,054 ) Capital and intangible asset expenditures 142 - 142 Depreciation and amortization 386 93 480 Nine Months Ended September 30, 2021 Household Products Health and Beauty Care Products Total Net sales $ 10,762 $ 13,821 $ 24,583 Loss from operations ( 1,960 ) ( 591 ) ( 2,551 ) Capital and intangible asset expenditures 262 - 262 Depreciation and amortization 893 464 1,357 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Certain intangible Assets and Resulted In Impairment Charges | we experienced a significant decline in our stock price and market capitalization and revised internal forecasts relating to all reporting units due to inflationary related pressures at our customers which have caused sales decreases. We concluded that the changes in circumstances in these reporting units triggered the need for a quantitative review of the carrying values of goodwill and certain intangible assets and resulted in impairment charges to our All-Purpose reporting unit during the nine months ended September 30, 2022 and resulted in the following impairment charges: |
Schedule of Changes in Carrying Amount of Goodwill by Reporting Unit | The changes in the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2022 and 2021 were as follows: Detergent Shampoo All-Purpose Total Balance, January 1, 2022 $ - $ - $ 1,710 $ 1,710 Additions - - - - Impairment - - ( 872 ) ( 872 ) Balance, September 30, 2022 $ - $ - $ 838 $ 838 Balance, January 1, 2021 $ 593 $ 1,520 $ 1,710 $ 3,823 Additions - - - - Impairment - - - - Balance, September 30, 2021 $ 593 $ 1,520 $ 1,710 $ 3,823 |
Schedule of Intangible Assets | Intangible assets, which are comprised of our capitalized costs of software obtained for internal-use or are related to our acquisition of our Prell ® , Denorex ® , BIZ ® and Kids N Pets ® brands, consisted of the following: As of September 30, 2022 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Customer relationships $ - $ - $ - $ 2,103 $ 329 $ 1,774 Trade names 970 99 871 1,850 151 1,699 Formulas and batching processes 1,000 441 559 1,370 452 918 Internal-use software 898 60 838 756 - 756 Non-compete agreement 33 29 4 48 35 13 $ 2,901 $ 629 $ 2,272 $ 6,127 $ 967 $ 5,160 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for 2022 and subsequent years is as follows: Remainder of 2022 $ 86 2023 344 2024 344 2025 343 2026 342 Thereafter 813 Total $ 2,272 |
Long-Term Debt and Line-of-Cr_2
Long-Term Debt and Line-of-Credit (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Principal Payments Due on Outstanding Debt | As of September 30, 2022, the total principal payments due on our outstanding debt were as follows: Revolving Credit Facility Term Loan Total Remainder of 2022 $ - - - 2023 2,414 1,000 3,414 Total minimum principal payments $ 2,414 $ 1,000 $ 3,414 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Information Related to Leases | Information related to leases was as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease information: Operating lease cost $ 100 $ 300 Operating cash flows from operating leases 100 300 Net assets obtained in exchange for new operating lease liabilities - - Weighted average remaining lease term in years 8.17 8.17 Weighted average discount rate 5.1 % 5.1 % |
Schedule of Future Minimum Annual Lease Payments | Future minimum annual lease payments are as follows: Remainder of 2022 $ 99 2023 406 2024 413 2025 420 2026 427 Thereafter 1,739 Total minimum lease payments $ 3,504 Less imputed interest ( 659 ) Total operating lease liability $ 2,845 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 Segment | |
Accounting Policies [Abstract] | |
Number of business segment | 2 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash | $ 14 | $ 770 | ||
Restricted cash | 125 | 500 | ||
Cash and restricted cash | $ 139 | $ 1,270 | $ 258 | $ 5 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Composition of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 5,986 | $ 5,499 |
Raw materials | 303 | 178 |
Inventories, net | $ 6,289 | $ 5,677 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Additional Information 1 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Significant financial instruments with off-balance sheet risk | $ 0 | $ 0 | |
Interest and penalties recognized in condensed consolidated statements of income | 0 | ||
Accrued interest or penalties related to uncertain tax positions | $ 0 | $ 0 | |
U.S. federal income tax rate | 21% | 21% | |
Effective income tax rate | 0% | 21.60% | |
Minimum | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful life of property, plant and equipment | 3 years | ||
Useful lives of intangible assets | 5 years | ||
Maximum | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful life of property, plant and equipment | 20 years | ||
Useful lives of intangible assets | 20 years | ||
Office Furniture and Equipment | Minimum | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful life of property, plant and equipment | 10 years | ||
Office Furniture and Equipment | Maximum | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful life of property, plant and equipment | 20 years | ||
Office Equipment | Minimum | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful life of property, plant and equipment | 3 years | ||
Office Equipment | Maximum | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful life of property, plant and equipment | 5 years |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Summary of Customer Allowances for Trade Promotions and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Trade promotions | $ 379 | $ 1,242 |
Allowance for doubtful accounts | 44 | 14 |
Trade promotions and allowance for doubtful accounts | $ 423 | $ 1,256 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Additional Information 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Apr. 26, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
President and Chief Executive Officer | ||||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||||||
Retirement effective date | Apr. 26, 2021 | |||||
Severance payments | $ 720 | $ 805 | ||||
Retirement benefits, description | pursuant to which the Company will pay Mr. Goldstein $720 in severance payments (equal to 18 months base salary) over a period of 30 months and reimbursement for the costs of continuing health benefits for a period of 18 months. Severance costs of $805 were recognized in the second quarter of 2021 and are included in general and administrative expenses. Accrued severance costs are included in accrued expenses on the Condensed Consolidated Balance Sheets | |||||
Selling Expenses | ||||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||||||
Freight-out costs | $ 429 | $ 624 | $ 1,725 | $ 2,163 |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Additional Information 3 (Details) - ASU 2020-04 | Sep. 30, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jul. 01, 2022 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Going Concern - Additional Info
Going Concern - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Jul. 01, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash, and restricted cash | $ 139 | $ 258 | $ 1,270 | $ 5 | |
Net cash used in operating activities | (1,189) | $ (1,394) | |||
Revolving Credit Facility | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Available borrowing capacity amount | $ 944 | ||||
Revolving Credit Facility | UMB Bank, N.A | Debt Agreement | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt agreement mature date | Jul. 01, 2023 | Jul. 01, 2023 | |||
Revolving Credit Facility | La Plata Capital, LLC | Debt Agreement | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt agreement mature date | Nov. 09, 2023 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Dryel - Disposal of Product Line | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 23, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Installment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Total consideration paid | $ 4,850,000 | |||||
Inventory | 440,000 | |||||
Total consideration held in escrow | $ 500,000 | |||||
Consideration held in escrow term | At closing, $500 of the total consideration was held in escrow for a twelve-month period following the closing date, to be released ratably in four installments in 2022. | |||||
Net sales | $ 585,000 | $ 1,856,000 | $ 2,800,000 | |||
Number of installment payments | Installment | 3 | |||||
Disposal group, including discontinued operation, operating expense | $ 0 | $ 0 | ||||
Disposal group, including discontinued operation, assets | 0 | 0 | 0 | |||
Disposal group, including discontinued operation, liabilities | $ 0 | 0 | $ 0 | |||
Capital expenditure discontinued operations | 0 | 0 | ||||
Significant operating and investing noncash items related to discontinued operations | $ 0 | $ 0 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Information Constituting Pretax Loss to After-Tax Loss of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | |
Operating expenses: | |||
Income (loss) from discontinued operations, net of tax | $ (205) | $ (246) | |
Dryel | Disposal of Product Line | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net sales | 585 | 1,856 | $ 2,800 |
Cost of sales | 313 | 1,013 | |
Gross profit | 272 | 843 | |
Operating expenses: | |||
Selling | 144 | 367 | |
Intangible asset amortization | 123 | 369 | |
Interest expense | 99 | 298 | |
Loss from discontinued operations, before tax | (94) | (191) | |
Income tax expense | (111) | (55) | |
Income (loss) from discontinued operations, net of tax | $ (205) | $ (246) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 9 Months Ended | |||
Mar. 02, 2022 | Jan. 18, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 113,000 | $ 99,000 | ||
Tax benefit from recording non-cash expense relates to options granted to employees | $ 0 | |||
2022 Individual Employee Grant | Anniversary Grant Date | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 0.66% | |||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 103,000 | 55,000 | ||
Unrecognized compensation costs related to non-vested stock options | $ 170,000 | |||
Period over which compensation costs related to non-vested stock options recognize | 3 years | |||
Restricted Stock Units (RSUs) | 2022 Individual Employee Grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of restricted stock units granted | 25 | |||
Restricted stock shares granted in period granted date fair value | $ 10,000 | |||
Vesting percentage | 0.33% | |||
Vesting description | The 2022 Individual Employee Grant vested one-third on the initial grant date, and the remaining two-thirds will vest on each anniversary of the grant date. | |||
Restricted Stock Units (RSUs) | 2022 Individual Executive Grant | Anniversary Grant Date | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of restricted stock units granted | 15 | |||
Restricted stock shares granted in period granted date fair value | $ 18,000 | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 10,000 | $ 44,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Beginning Balance, Shares | 12,749 | 12,618 | 12,727 | 12,618 |
Weighted average common shares issued | 24 | 20 | 10 | |
Weighted average number of common shares outstanding | 12,749 | 12,642 | 12,747 | 12,628 |
Diluted weighted average number of common shares outstanding | 12,749 | 12,642 | 12,747 | 12,628 |
Earnings Per Share - Common Sto
Earnings Per Share - Common Stock Equivalents Excluded From the Calculation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of earnings per share | 153 | 15 | 153 | 15 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of business segment | 2 |
Segment Information - Informati
Segment Information - Information on Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,277 | $ 7,970 | $ 15,449 | $ 24,583 |
Loss from operations | (603) | (930) | (5,054) | (2,551) |
Capital and intangible asset expenditures | 113 | 142 | 262 | |
Depreciation and amortization | 140 | 452 | 480 | 1,357 |
Household Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,748 | 3,846 | 9,103 | 10,762 |
Loss from operations | (371) | (382) | (4,854) | (1,960) |
Capital and intangible asset expenditures | 113 | 142 | 262 | |
Depreciation and amortization | 99 | 297 | 386 | 893 |
Health And Beauty Care Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,529 | 4,124 | 6,346 | 13,821 |
Loss from operations | (232) | (548) | (200) | (591) |
Depreciation and amortization | $ 41 | $ 155 | $ 93 | $ 464 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Certain intangible Assets and Resulted In Impairment Charges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Line Items] | ||||
Goodwill | $ 0 | $ 0 | $ 872,000 | $ 0 |
Total | 3,589,000 | |||
All-Purpose | ||||
Goodwill [Line Items] | ||||
Intangible Assets | 2,717,000 | |||
Goodwill | 872,000 | $ 0 | ||
Total | $ 3,589,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill by Reporting Unit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||||
Beginning balance | $ 1,710,000 | $ 3,823,000 | ||
Impairment | $ 0 | $ 0 | (872,000) | 0 |
Ending balance | 838,000 | 3,823,000 | 838,000 | 3,823,000 |
Detergent | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Beginning balance | 593,000 | |||
Impairment | 0 | |||
Ending balance | 593,000 | 593,000 | ||
Shampoo | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Beginning balance | 1,520,000 | |||
Impairment | 0 | |||
Ending balance | 1,520,000 | 1,520,000 | ||
All-Purpose | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Beginning balance | 1,710,000 | 1,710,000 | ||
Impairment | (872,000) | 0 | ||
Ending balance | $ 838,000 | $ 1,710,000 | $ 838,000 | $ 1,710,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,901 | $ 6,127 |
Accumulated Amortization | 629 | 967 |
Net Carrying Value | 2,272 | 5,160 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,103 | |
Accumulated Amortization | 329 | |
Net Carrying Value | 1,774 | |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 970 | 1,850 |
Accumulated Amortization | 99 | 151 |
Net Carrying Value | 871 | 1,699 |
Formulas and Batching Processes | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,000 | 1,370 |
Accumulated Amortization | 441 | 452 |
Net Carrying Value | 559 | 918 |
Internal-use Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 898 | 756 |
Accumulated Amortization | 60 | |
Net Carrying Value | 838 | 756 |
Non-compete Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33 | 48 |
Accumulated Amortization | 29 | 35 |
Net Carrying Value | $ 4 | $ 13 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 87,000 | $ 278,000 | $ 313,000 | $ 433,000 |
Impairment | $ 0 | $ 0 | $ (872,000) | $ 0 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 86 |
2023 | 344 |
2024 | 344 |
2025 | 343 |
2026 | 342 |
Thereafter | 813 |
Total | $ 2,272 |
Long-Term Debt and Line-of-Cr_3
Long-Term Debt and Line-of-Credit - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Aug. 10, 2022 | Nov. 09, 2021 | Jul. 01, 2020 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 3,414 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility amount | 944 | |||
Debt outstanding | 2,414 | |||
UMB Bank, N.A | ||||
Debt Instrument [Line Items] | ||||
Unamortized loan costs | $ 149 | |||
UMB Bank, N.A | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding interest rate | 9.87% | |||
Debt outstanding | $ 2,414 | |||
UMB Bank, N.A | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding interest rate | 9.13% | |||
Debt outstanding | $ 0 | |||
UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, terminate date | Jul. 01, 2023 | Jul. 01, 2023 | ||
UMB Bank, N.A | Loan Agreement | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan amount | $ 3,000 | |||
Term loan, frequency of commitment fee payment | monthly | |||
Term loan, payment term | 3 years | |||
UMB Bank, N.A | Maximum | Loan Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility amount | $ 4,000 | $ 7,000 | ||
La Plata Capital, LLC | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 1,000 | |||
Unamortized loan costs | $ 26 | |||
La Plata Capital, LLC | Loan Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, terminate date | Nov. 09, 2023 | |||
La Plata Capital, LLC | Loan Agreement | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan amount | $ 2,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 14% | |||
Debt Instrument, Maturity Date | Nov. 09, 2021 | |||
Debt Instrument, Periodic Payment, Principal | $ 30 | |||
Debt Instrument, Payment Terms | Interest-only payments are required on a monthly basis beginning in January 2022 and ending on December 1, 2022. Beginning on January 1, 2023, monthly principal payments of $30 are required in addition to accrued and unpaid interest. All remaining unpaid principal and interest are fully due on November 9, 2023 | |||
LIBOR Rate | UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable interest rate | 3.75% | |||
LIBOR Rate | UMB Bank, N.A | Loan Agreement | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable interest rate | 4.50% | |||
Floor Rate | UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable interest rate | 7.75% | 4.75% | ||
Floor Rate | UMB Bank, N.A | Loan Agreement | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable interest rate | 5.50% | |||
SOFR Rate | UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable interest rate | 6.83% | |||
Debt Instrument, Maturity of Variable interest rate | one month term SOFR rate |
Long-Term Debt and Line-of-Cr_4
Long-Term Debt and Line-of-Credit - Summary of Principal Payments Due on Outstanding Debt (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 3,414 |
Total minimum principal payments | 3,414 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
2023 | 2,414 |
Total minimum principal payments | 2,414 |
Term Loan | |
Debt Instrument [Line Items] | |
2023 | 1,000 |
Total minimum principal payments | $ 1,000 |
Leases - Additional Information
Leases - Additional Information (Details) | Sep. 30, 2022 |
Leases [Abstract] | |
Remaining lease terms | 9 years |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Operating lease information: | ||
Operating lease cost | $ 100 | $ 300 |
Operating cash flows from operating leases | $ 100 | $ 300 |
Weighted average remaining lease term in years | 8 years 2 months 1 day | 8 years 2 months 1 day |
Weighted average discount rate | 5.10% | 5.10% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Annual Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 99 |
2023 | 406 |
2024 | 413 |
2025 | 420 |
2026 | 427 |
Thereafter | 1,739 |
Total minimum lease payments | 3,504 |
Less imputed interest | (659) |
Total operating lease liability | $ 2,845 |