Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 07, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | SCOTT’S LIQUID GOLD-INC. | |
Entity Central Index Key | 0000088000 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
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 | 12,797,423 | |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 3,248 | $ 3,729 |
Cost of sales | 1,849 | 1,886 |
Gross profit | 1,399 | 1,843 |
Operating expenses: | ||
Advertising | 154 | 135 |
Selling | 865 | 1,625 |
General and administrative | 618 | 791 |
Intangible asset amortization | 56 | 93 |
Total operating expenses | 1,693 | 2,644 |
Loss from operations | (294) | (801) |
Interest expense | (152) | (82) |
Loss before income taxes and discontinued operations | (446) | (883) |
Income tax benefit | 4 | |
Loss from continuing operations | (442) | (883) |
Income from discontinued operations | 811 | 432 |
Net income (loss) | $ 369 | $ (451) |
Basic net income (loss) per common shares: | ||
Loss from continuing operations | $ (0.03) | $ (0.07) |
Income from discontinued operations | 0.06 | 0.03 |
Net income (loss) | 0.03 | (0.04) |
Diluted net income (loss) per common shares: | ||
Loss from continuing operations | (0.03) | (0.07) |
Income from discontinued operations | 0.06 | 0.03 |
Net income (loss) | $ 0.03 | $ (0.04) |
Weighted average shares outstanding: | ||
Basic | 12,797 | 12,739 |
Diluted | 12,797 | 12,739 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 457 | $ 49 |
Accounts receivable, net | 975 | 1,833 |
Inventories | 2,940 | 3,457 |
Income taxes receivable | 239 | |
Prepaid expenses | 462 | 243 |
Total current assets | 4,834 | 5,821 |
Intangible assets, net | 1,081 | 1,137 |
Operating lease right-of-use assets | 2,428 | 2,491 |
Other assets | 46 | 47 |
Assets of discontinued operations | 1,235 | |
Total assets | 8,389 | 10,731 |
Current liabilities: | ||
Accounts payable | 1,030 | 1,407 |
Accrued expenses | 215 | 311 |
Current portion of long-term debt, net of debt issuance costs | 1,205 | 3,384 |
Operating lease liabilities, current portion | 275 | 270 |
Total current liabilities | 2,725 | 5,372 |
Operating lease liabilities, net of current | 2,441 | 2,512 |
Other liabilities | 27 | 27 |
Total liabilities | 5,193 | 7,911 |
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 12,797 shares (2023) and 12,797 shares (2022) | 1,280 | 1,280 |
Capital in excess of par | 7,919 | 7,912 |
Accumulated deficit | (6,003) | (6,372) |
Total shareholders’ equity | 3,196 | 2,820 |
Total liabilities and shareholders’ equity | $ 8,389 | $ 10,731 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 12,797,000 | 12,797,000 |
Common stock, shares outstanding | 12,797,000 | 12,797,000 |
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, 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 income (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, 2022 | $ 2,820 | $ 1,280 | 7,912 | (6,372) |
Beginning Balance, Shares at Dec. 31, 2022 | 12,797 | 12,797 | ||
Stock-based compensation, Value | $ 7 | 7 | ||
Net income (loss) | 369 | 369 | ||
Ending Balance, Value at Mar. 31, 2023 | $ 3,196 | $ 1,280 | $ 7,919 | $ (6,003) |
Ending Balance, Shares at Mar. 31, 2023 | 12,797 | 12,797 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 369 | $ (451) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 162 | 164 |
Stock-based compensation | 7 | 63 |
Gain on disposal of discontinued operations | (787) | |
Change in operating assets and liabilities: | ||
Accounts receivable | 858 | 1,117 |
Inventories | 603 | (497) |
Prepaid expenses and other assets | (218) | 14 |
Income taxes receivable | 239 | |
Accounts payable, accrued expenses, and other liabilities | (477) | (414) |
Total adjustments to net income (loss) | 387 | 447 |
Net cash provided by (used in) operating activities | 756 | (4) |
Cash flows from investing activities: | ||
Proceeds from sale of discontinued operations | 1,936 | |
Purchase of software | (99) | |
Net cash provided by (used in) investing activities | 1,936 | (99) |
Cash flows from financing activities: | ||
Proceeds from term loans | 250 | |
Repayments on term loans | (30) | (1,250) |
Proceeds from revolving credit facility | 2,795 | 8,379 |
Repayments of revolving credit facility | (5,299) | (7,899) |
Net cash used in financing activities | (2,284) | (770) |
Net increase (decrease) in cash and restricted cash | 408 | (873) |
Cash and restricted cash, beginning of period | 49 | 1,270 |
Cash and restricted cash, end of period | 457 | 397 |
Supplemental disclosures: | ||
Cash paid during the period for interest | $ 47 | $ 95 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 January 23, 2023, 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 Scott's Liquid Gold ® brand, including the Wood Care and Floor Restore products. We have reflected the operations of the Scott's Liquid Gold ® brand as discontinued operations for all periods presented, which was previously classified under our household products segment. See Note 3 for further information. On December 15, 2022, 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 Prell ® product line. We have reflected the operations of the Prell ® product line as discontinued operations for all periods presented, which was previously classified under our health and beauty care 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 March 31, 2023 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, 2022. The results of operations for the period ended March 31, 2023 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) 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 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. Our remaining raw materials balance is to be sold to contract manufacturing partners based on production demand. (f) 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. (g) Intangible Assets 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. In the second quarter of 2022, our internal-use software was implemented for its intended use with an estimated useful life of five years. Amortization expense is recorded on a straight-line basis and is included in general and administrative expenses on the Condensed Consolidated Statements of Operations. (h) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include 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, receivables, other current assets, accounts payable, and accrued expenses approximate fair value due to the short-term nature of these financial instruments. (i) 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 Operations 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 months ended March 31, 2023 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 three months ended March 31, 2023 and 2022 was - 0.9 % and 0.0 % 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 March 31, 2023, and December 31, 2022 . (j) 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 were as follows: March 31, 2023 December 31, 2022 Trade promotions $ 259 $ 361 Allowance for doubtful accounts 59 59 $ 318 $ 420 (k) Advertising Costs We expense advertising costs as incurred. (l) 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. (m) 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 $ 425 and $ 527 for the three months ended March 31, 2023 and 2022, 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. (n) Supplier Finance Programs During 2022, we entered into an agreement with a third-party financial institution and and agreement with an insurance agency which allows us to obtain extended payment terms for our insurance policies. The insurance policies can be canceled by the Company at any time with 10 days’ notice. The financial institution may cancel this agreement after providing 10 days’ notice if the Company does not pay any installment payment according to the terms of the agreement. We do not provide any forms of guarantees under these agreements. Payments of our obligations are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Outstanding confirmed amounts are $ 145 and $ 217 as of March 31, 2023 and December 31, 2022, respectively, which will be recognized on the Condensed Consolidated Financial Statements as payments are due. (o) Recently Issued Accounting Standards In September 2022, the FASB issued Accounting Standards Update ("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 adopted this ASU as of January 1, 2023 on a prospective basis. As the guidance requires only additional disclosures, there were no effects of this standard on our financial position, results of operations and cash flows. See disclosure contained in Note 1(n). |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 2. Going Concern The accompanying Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. However, substantial doubt about the Company’s ability to continue as a going concern exists. Primarily due to a decline in net sales, disruption of our international sales to China, and increases in costs associated with the manufacture and distribution of our products, the Company has sustained significant losses from operations in several reporting periods since 2019. In February 2023, the Company terminated its Loan and Security Agreement with UMB Bank, N.A. and repaid its revolving credit facility in full. The Company’s debt agreement with La Plata Capital, LLC matures on November 9, 2023 . See Note 8 - “Long-Term Debt and Line of Credit” in the Notes to Condensed Consolidated Financial Statements for further information. 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 restructured debt facilities through the adjustments to the timing of required principal payments and covenant compliance periods. Management is considering additional various strategic actions including asset sales, obtaining additional debt or equity financing (potentially in conjunction with acquisitions), 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. However, given the impact of the economic downturn on the U.S., the Company may be unable to sell assets or access further equity or debt financing when needed. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all. The Condensed Consolidated Financial Statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of these uncertainties. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 3. Discontinued Operations On January 23, 2023, 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 Scott's Liquid Gold ® Wood Care and Scott's Liquid Gold ® Floor Restore product lines. The total consideration paid to us was $ 800 , plus an amount equal to the value of the Scott's Liquid Gold ® Wood Care and Scott's Liquid Gold ® Floor Restore inventory of $ 1,136 , subject to post-close adjustment. Additionally, the buyer will pay a royalty equal to 2 % of gross sales for two years after the closing date (the "Scott's Liquid Gold ® Royalty"). The Scott's Liquid Gold ® Royalty resulted in recognition of a gain upon the sale of assets. Because the Scott's Liquid Gold ® Royalty is variable consideration and is contingent on the outcome of future events that are largely outside of the Company’s control, the variable consideration from the Scott's Liquid Gold ® Royalty has been fully constrained and no amount is included in the results from discontinued operations. Consideration for the Scott's Liquid Gold ® Royalty is to be recognized as received from the buyer. The constraint on the variable consideration will be reassessed at each subsequent reporting period. On December 15, 2022, 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 Prell ® product line. The total consideration paid to us was $ 150 , plus an amount equal to the value of the Prell ® inventory of $ 330 , subject to post-close adjustment. Additionally, the buyer will pay a royalty equal to 3 % of collections on net sales for four years after the closing date (the “Prell ® Royalty”). The Prell ® Royalty resulted in recognition of a gain upon the sale of assets. For the three months ended March 31, 2023, there were no changes in the assessment of the Prell ® Royalty, which will continue to be recognized as received from the buyer. The constraint on the variable consideration will be reassessed at each subsequent reporting period. We have reflected the operations of the Scott's Liquid Gold ® and Prell ® product lines 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. 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 months ended March 31: Three Months Ended March 31, 2023 Prell ® Scott's Liquid Gold ® Total Net sales $ - $ 187 $ 187 Cost of sales - 95 $ 95 Gross profit - 92 92 Operating expenses: Selling - 28 28 General and administrative - 22 22 Operating income from discontinued operations - 42 42 Interest expense - ( 18 ) ( 18 ) Gain on sale of discontinued operations - 787 787 Income from discontinued operations $ - $ 811 $ 811 Three Months Ended March 31, 2022 Prell ® Scott's Liquid Gold ® Total Net sales $ 838 $ 1,223 $ 2,061 Cost of sales 496 474 $ 970 Gross profit 342 749 1,091 Operating expenses: Selling 290 289 579 Intangible asset amortization 12 - 12 Operating income from discontinued operations 40 460 500 Interest expense ( 14 ) ( 54 ) ( 68 ) Income from discontinued operations $ 26 $ 406 $ 432 There were no capital expenditures or significant operating and investing noncash items related to discontinued operations during the years ended December 31, 2022 and 2021, respectively. Reconciliation of the Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Condensed Consolidated Balance Sheets as of: March 31, 2023 December 31, 2022 Assets Current assets: Inventories $ - $ 1,235 Total assets $ - $ 1,235 All assets in the above table are related to the discontinued operations of Scott's Liquid Gold ® . There were no assets related to Prell ® as of March 31, 2023 and December 31, 2022 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
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 $ 0 and $ 7 in the three months ended March 31, 2023 and 2022 , 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 $ 7 and $ 56 for the three months ended March 31, 2023 and 2022, respectively. Approximately $ 64 of total unrecognized compensation costs related to non-vested RSUs is expected to be recognized throughout the year . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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 impact is anti-dilutive and when the Company has a net loss because the impact is also anti-dilutive. Three Months Ended March 31, 2023 2022 Common shares outstanding, beginning of the period 12,797 12,727 Weighted average common shares issued - 12 Weighted average number of common shares outstanding 12,797 12,739 Dilutive effect of common share equivalents - - Diluted weighted average number of common shares outstanding 12,797 12,739 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 March 31, 2023 2022 Stock options 138 213 Restricted stock units 38 63 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31: Three Months Ended March 31, 2023 Household Products Health and Beauty Care Products Total Net sales $ 1,975 $ 1,273 $ 3,248 (Loss) income from operations ( 386 ) 92 ( 294 ) Depreciation and amortization 130 47 177 Three Months Ended March 31, 2022 Household Products Health and Beauty Care Products Total Net sales $ 1,987 $ 1,742 $ 3,729 Loss from operations ( 793 ) ( 8 ) ( 801 ) Capital and intangible asset expenditures 113 - 113 Depreciation and amortization 297 155 452 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 7. 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 Denorex ® , Zincon ® , and BIZ ® brands, consisted of the following: As of March 31, 2023 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Trade names $ 309 $ 101 $ 208 $ 309 $ 97 $ 212 Formulas and batching processes 412 290 122 412 283 129 Internal-use software 898 150 748 898 105 793 Non-compete agreement 33 30 3 33 30 3 $ 1,652 $ 571 $ 1,081 $ 1,652 $ 515 $ 1,137 Amortization expense for the three months ended March 31, 2023 and 2022 was $ 56 and $ 83 , respectively. Estimated amortization expense for 2023 and subsequent years is as follows: Remainder of 2023 $ 169 2024 225 2025 224 2026 215 2027 104 Thereafter 144 Total $ 1,081 |
Long-Term Debt and Line-of-Cred
Long-Term Debt and Line-of-Credit | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Line-of-Credit | Note 8. Long-Term Debt and Line-of-Credit UMB Loan Agreement 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 which was repaid in full in the second quarter of 2022, and a revolving credit facility, with a maximum commitment of $ 4,000 bearing interest at the one-month term SOFR rate + 6.83 % with a floor of 7.75 %. On January 23, 2023, we entered in to the Consent and Seventh Amendment to Loan and Security Agreement, which consents to the sale of Scott's Liquid Gold ® Wood Care and Scott's Liquid Gold ® Floor restore assets, updates defined terms and financial covenants under the UMB Agreement , and reduces the maximum commitment on the revolving credit facility to $ 250 . The UMB Loan Agreement was terminated on February 27, 2023 and the revolving credit facility was paid in full on February 28, 2023. The loans were secured by all of the assets of the Company and its subsidiaries. Unamortized loan costs were $ 0 and $ 100 as of March 31, 2023 and December 31, 2022, respectively. Amortization of loan costs for the three months ended March 31, 2023 was $ 100 , including $ 83 that were expensed as a result of the termination of the UMB Loan Agreement. Amortization of loan costs for the three months ended March 31, 2022 was $ 50 . La Plata Loan Agreement On November 9, 2021 , we entered into a loan and security agreement (as amended, 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 $ 250 term loan that bears interest at 15 %, both of which mature on November 9, 2023 . Interest-only payments are required on a monthly basis through June 30, 2023, with monthly principal and interest payments of $ 30 K beginning on July 1, 2023. All remaining unpaid principal and interest are fully due on November 9, 2023 . We repaid $ 1,000 of principal against the La Plata Loan Agreement during the first quarter of 2022. The La Plata Loan Agreement requires compliance with affirmative, negative, and financial covenants, as determined on a monthly basis beginning in June 2023. The La Plata Loan Agreement is secured by all of the assets of the Company and all of its subsidiaries. As of March 31, 2023, our La Plata term loan had an outstanding balance of $ 1,220 . La Plata unamortized loan costs were $ 15 and $ 20 as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the three months ended March 31, 2023 and 2022 were $ 5 and $ 5 , respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 9. Leases We have entered into a lease for our corporate headquarters with a remaining lease term of 8 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 March 31, 2023 Three Months Ended March 31, 2022 Operating lease information: Operating lease cost $ 101 $ 100 Operating cash flows from operating leases 100 100 Net assets obtained in exchange for new operating lease liabilities - - Weighted average remaining lease term in years 7.67 8.67 Weighted average discount rate 5.1 % 5.1 % Future minimum annual lease payments are as follows: Remainder of 2023 $ 305 2024 413 2025 420 2026 427 2027 434 Thereafter 1,305 Total minimum lease payments $ 3,304 Less imputed interest ( 588 ) Total operating lease liability $ 2,716 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 January 23, 2023, 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 Scott's Liquid Gold ® brand, including the Wood Care and Floor Restore products. We have reflected the operations of the Scott's Liquid Gold ® brand as discontinued operations for all periods presented, which was previously classified under our household products segment. See Note 3 for further information. On December 15, 2022, 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 Prell ® product line. We have reflected the operations of the Prell ® product line as discontinued operations for all periods presented, which was previously classified under our health and beauty care 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 March 31, 2023 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, 2022. The results of operations for the period ended March 31, 2023 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. |
Inventories Valuation and Reserves | (e) 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 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. Our remaining raw materials balance is to be sold to contract manufacturing partners based on production demand. |
Leases | (f) 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. |
Intangible Assets | (g) Intangible Assets 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. In the second quarter of 2022, our internal-use software was implemented for its intended use with an estimated useful life of five years. Amortization expense is recorded on a straight-line basis and is included in general and administrative expenses on the Condensed Consolidated Statements of Operations. |
Financial Instruments | (h) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include 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, receivables, other current assets, accounts payable, and accrued expenses approximate fair value due to the short-term nature of these financial instruments. |
Income Taxes | (i) 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 Operations 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 months ended March 31, 2023 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 three months ended March 31, 2023 and 2022 was - 0.9 % and 0.0 % 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 March 31, 2023, and December 31, 2022 . |
Revenue Recognition | (j) 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 were as follows: March 31, 2023 December 31, 2022 Trade promotions $ 259 $ 361 Allowance for doubtful accounts 59 59 $ 318 $ 420 |
Advertising Costs | (k) Advertising Costs We expense advertising costs as incurred. |
Stock-based Compensation | (l) 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 | (m) 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 $ 425 and $ 527 for the three months ended March 31, 2023 and 2022, 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. |
Supplier Finance Programs | (n) Supplier Finance Programs During 2022, we entered into an agreement with a third-party financial institution and and agreement with an insurance agency which allows us to obtain extended payment terms for our insurance policies. The insurance policies can be canceled by the Company at any time with 10 days’ notice. The financial institution may cancel this agreement after providing 10 days’ notice if the Company does not pay any installment payment according to the terms of the agreement. We do not provide any forms of guarantees under these agreements. Payments of our obligations are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Outstanding confirmed amounts are $ 145 and $ 217 as of March 31, 2023 and December 31, 2022, respectively, which will be recognized on the Condensed Consolidated Financial Statements as payments are due. |
Recently Issued Accounting Standards | (o) Recently Issued Accounting Standards In September 2022, the FASB issued Accounting Standards Update ("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 adopted this ASU as of January 1, 2023 on a prospective basis. As the guidance requires only additional disclosures, there were no effects of this standard on our financial position, results of operations and cash flows. See disclosure contained in Note 1(n). |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Customer Allowances for Trade Promotions and Allowance for Doubtful Accounts | Customer allowances for trade promotions and allowance for doubtful accounts were as follows: March 31, 2023 December 31, 2022 Trade promotions $ 259 $ 361 Allowance for doubtful accounts 59 59 $ 318 $ 420 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31: Three Months Ended March 31, 2023 Prell ® Scott's Liquid Gold ® Total Net sales $ - $ 187 $ 187 Cost of sales - 95 $ 95 Gross profit - 92 92 Operating expenses: Selling - 28 28 General and administrative - 22 22 Operating income from discontinued operations - 42 42 Interest expense - ( 18 ) ( 18 ) Gain on sale of discontinued operations - 787 787 Income from discontinued operations $ - $ 811 $ 811 Three Months Ended March 31, 2022 Prell ® Scott's Liquid Gold ® Total Net sales $ 838 $ 1,223 $ 2,061 Cost of sales 496 474 $ 970 Gross profit 342 749 1,091 Operating expenses: Selling 290 289 579 Intangible asset amortization 12 - 12 Operating income from discontinued operations 40 460 500 Interest expense ( 14 ) ( 54 ) ( 68 ) Income from discontinued operations $ 26 $ 406 $ 432 There were no capital expenditures or significant operating and investing noncash items related to discontinued operations during the years ended December 31, 2022 and 2021, respectively. Reconciliation of the Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Condensed Consolidated Balance Sheets as of: March 31, 2023 December 31, 2022 Assets Current assets: Inventories $ - $ 1,235 Total assets $ - $ 1,235 All assets in the above table are related to the discontinued operations of Scott's Liquid Gold ® . There were no assets related to Prell ® as of March 31, 2023 and December 31, 2022 , respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 impact is anti-dilutive and when the Company has a net loss because the impact is also anti-dilutive. Three Months Ended March 31, 2023 2022 Common shares outstanding, beginning of the period 12,797 12,727 Weighted average common shares issued - 12 Weighted average number of common shares outstanding 12,797 12,739 Dilutive effect of common share equivalents - - Diluted weighted average number of common shares outstanding 12,797 12,739 |
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 March 31, 2023 2022 Stock options 138 213 Restricted stock units 38 63 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Information on Segments | The following provides information on our segments for the three months ended March 31: Three Months Ended March 31, 2023 Household Products Health and Beauty Care Products Total Net sales $ 1,975 $ 1,273 $ 3,248 (Loss) income from operations ( 386 ) 92 ( 294 ) Depreciation and amortization 130 47 177 Three Months Ended March 31, 2022 Household Products Health and Beauty Care Products Total Net sales $ 1,987 $ 1,742 $ 3,729 Loss from operations ( 793 ) ( 8 ) ( 801 ) Capital and intangible asset expenditures 113 - 113 Depreciation and amortization 297 155 452 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
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 Denorex ® , Zincon ® , and BIZ ® brands, consisted of the following: As of March 31, 2023 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Trade names $ 309 $ 101 $ 208 $ 309 $ 97 $ 212 Formulas and batching processes 412 290 122 412 283 129 Internal-use software 898 150 748 898 105 793 Non-compete agreement 33 30 3 33 30 3 $ 1,652 $ 571 $ 1,081 $ 1,652 $ 515 $ 1,137 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for 2023 and subsequent years is as follows: Remainder of 2023 $ 169 2024 225 2025 224 2026 215 2027 104 Thereafter 144 Total $ 1,081 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Information Related to Leases | Information related to leases was as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Operating lease information: Operating lease cost $ 101 $ 100 Operating cash flows from operating leases 100 100 Net assets obtained in exchange for new operating lease liabilities - - Weighted average remaining lease term in years 7.67 8.67 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 2023 $ 305 2024 413 2025 420 2026 427 2027 434 Thereafter 1,305 Total minimum lease payments $ 3,304 Less imputed interest ( 588 ) Total operating lease liability $ 2,716 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Accounting Policies [Abstract] | |
Number of business segment | 2 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Additional Information 1 (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Significant financial instruments with off-balance sheet risk | $ 0 | |
Interest and penalties recognized in condensed consolidated statements of income | 0 | |
Accrued interest or penalties related to uncertain tax positions | $ 0 | |
U.S. federal income tax rate | 21% | 21% |
Effective income tax rate | (0.90%) | 0% |
Minimum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful lives of intangible assets | 5 years | |
Maximum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful lives of intangible assets | 20 years |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Summary of Customer Allowances for Trade Promotions and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Trade promotions | $ 259 | $ 361 |
Allowance for doubtful accounts | 59 | 59 |
Trade promotions and allowance for doubtful accounts | $ 318 | $ 420 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Additional Information 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Payment for obligation outstanding amount | $ 145 | $ 217 | |
Selling Expenses | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Freight-out costs | $ 425 | $ 527 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Additional Information 3 (Details) - ASU 2020-04 | Mar. 31, 2023 |
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 | Jan. 01, 2023 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Going Concern - Additional Info
Going Concern - Additional Information (Details) | 3 Months Ended | |
Nov. 09, 2021 | Mar. 31, 2023 | |
Revolving Credit Facility | La Plata Capital, LLC | Loan Agreement | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit facility, terminate date | Nov. 09, 2023 | Nov. 09, 2023 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jan. 23, 2023 | Dec. 15, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Total consideration paid | $ 800,000 | |||
Inventories | $ 1,136,000 | |||
Royalty percentage | 2% | |||
Capital expenditure discontinued operations | $ 0 | $ 0 | ||
Royalty fees payment period | 2 years | |||
Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Inventories | 1,235,000 | |||
Disposal group, including discontinued operation, assets | $ 1,235,000 | |||
Prell | Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Total consideration paid | $ 150,000 | |||
Inventories | $ 330,000 | |||
Royalty percentage | 3% |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating expenses: | ||
Income from discontinued operations | $ 811 | $ 432 |
Disposal of Product Line | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales | 187 | 2,061 |
Cost of sales | 95 | 970 |
Gross profit | 92 | 1,091 |
Operating expenses: | ||
Selling | 28 | 579 |
General and administrative | 22 | |
Intangible asset amortization | 12 | |
Operating income from discontinued operations | 42 | 500 |
Interest expense | (18) | (68) |
Gain on sale of discontinued operations | 787 | |
Income from discontinued operations | 811 | 432 |
Prell | Disposal of Product Line | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales | 838 | |
Cost of sales | 496 | |
Gross profit | 342 | |
Operating expenses: | ||
Selling | 290 | |
Intangible asset amortization | 12 | |
Operating income from discontinued operations | 40 | |
Interest expense | (14) | |
Income from discontinued operations | 26 | |
Scott's Liquid Gold | Disposal of Product Line | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales | 187 | 1,223 |
Cost of sales | 95 | 474 |
Gross profit | 92 | 749 |
Operating expenses: | ||
Selling | 28 | 289 |
General and administrative | 22 | |
Operating income from discontinued operations | 42 | 460 |
Interest expense | (18) | (54) |
Gain on sale of discontinued operations | 787 | |
Income from discontinued operations | $ 811 | $ 406 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Financial Information Constituting Major Classes of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Jan. 23, 2023 | Dec. 31, 2022 |
Current assets: | ||
Inventories | $ 1,136 | |
Disposal of Product Line | ||
Current assets: | ||
Inventories | $ 1,235 | |
Total assets | $ 1,235 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 02, 2022 | Jan. 18, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 7,000 | $ 63,000 | ||
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 | $ 7,000 | 56,000 | ||
Unrecognized compensation costs related to non-vested stock options | $ 64,000 | |||
Period over which compensation costs related to non-vested stock options recognize | 1 year | |||
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 | $ 0 | $ 7,000 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Beginning Balance, Shares | 12,797 | 12,727 |
Weighted average common shares issued | 12 | |
Weighted average number of common shares outstanding | 12,797 | 12,739 |
Diluted weighted average number of common shares outstanding | 12,797 | 12,739 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of earnings per share | 138 | 213 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of earnings per share | 38 | 63 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of business segment | 2 |
Segment Information - Informati
Segment Information - Information on Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,248 | $ 3,729 |
(Loss) income from operations | (294) | (801) |
Capital and intangible asset expenditures | 113 | |
Depreciation and amortization | 177 | 452 |
Household Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,975 | 1,987 |
(Loss) income from operations | (386) | (793) |
Capital and intangible asset expenditures | 113 | |
Depreciation and amortization | 130 | 297 |
Health and Beauty Care Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,273 | 1,742 |
(Loss) income from operations | 92 | (8) |
Depreciation and amortization | $ 47 | $ 155 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,652 | $ 1,652 |
Accumulated Amortization | 571 | 515 |
Net Carrying Value | 1,081 | 1,137 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 309 | 309 |
Accumulated Amortization | 101 | 97 |
Net Carrying Value | 208 | 212 |
Formulas and Batching Processes | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 412 | 412 |
Accumulated Amortization | 290 | 283 |
Net Carrying Value | 122 | 129 |
Internal-use Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 898 | 898 |
Accumulated Amortization | 150 | 105 |
Net Carrying Value | 748 | 793 |
Non-compete Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33 | 33 |
Accumulated Amortization | 30 | 30 |
Net Carrying Value | $ 3 | $ 3 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 56 | $ 83 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 169 |
2024 | 225 |
2025 | 224 |
2026 | 215 |
2027 | 104 |
Thereafter | 144 |
Total | $ 1,081 |
Long-Term Debt and Line-of-Cr_2
Long-Term Debt and Line-of-Credit - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jan. 23, 2023 | Aug. 10, 2022 | Nov. 09, 2021 | Jul. 01, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||||
Repayments of term loan | $ 30 | $ 1,250 | |||||
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 | Consent and Seventh Amendment to Loan and Security Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, terminate date | Feb. 27, 2023 | ||||||
Unamortized loan costs | 0 | $ 100 | |||||
Amortization of loan costs | 100 | 50 | |||||
Expense as a result of the termination of the UMB Loan Agreement | 83 | ||||||
UMB Bank, N.A | Maximum | Loan Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Available borrowing capacity amount | $ 4,000 | ||||||
UMB Bank, N.A | Maximum | Consent and Seventh Amendment to Loan and Security Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Available borrowing capacity amount | $ 250 | ||||||
La Plata Capital, LLC | |||||||
Debt Instrument [Line Items] | |||||||
Debt outstanding | 1,220 | ||||||
Unamortized loan costs | 15 | 20 | |||||
Amortization of loan costs | $ 5 | $ 5 | |||||
La Plata Capital, LLC | Loan Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, terminate date | Nov. 09, 2023 | Nov. 09, 2023 | |||||
La Plata Capital, LLC | Loan Agreement | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Term loan amount | $ 2,000 | ||||||
Repayments of term loan | $ 1,000 | ||||||
Debt outstanding effective interest rate | 14% | ||||||
Term loan, maturity date | Nov. 09, 2021 | ||||||
Term loan, monthly principal payments | $ 30 | ||||||
Term loan, payment terms | Interest-only payments are required on a monthly basis through June 30, 2023, with monthly principal and interest payments of $30K beginning on July 1, 2023. All remaining unpaid principal and interest are fully due on November 9, 2023 | ||||||
La Plata Capital, LLC | Loan Agreement | Term Loan Two | |||||||
Debt Instrument [Line Items] | |||||||
Term loan amount | $ 250 | ||||||
Debt outstanding effective interest rate | 15% | ||||||
Floor Rate | UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, variable interest rate | 7.75% | ||||||
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 |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 31, 2023 |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease terms | 8 years |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating lease information: | ||
Operating lease cost | $ 101 | $ 100 |
Operating cash flows from operating leases | $ 100 | $ 100 |
Weighted average remaining lease term in years | 7 years 8 months 1 day | 8 years 8 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 | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 305 |
2024 | 413 |
2025 | 420 |
2026 | 427 |
2027 | 434 |
Thereafter | 1,305 |
Total minimum lease payments | 3,304 |
Less imputed interest | (588) |
Total operating lease liability | $ 2,716 |