Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
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, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
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 | 12,999,790 | |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 907 | $ 733 | $ 2,623 | $ 2,315 |
Cost of sales | 552 | 319 | 1,564 | 1,255 |
Gross profit | 355 | 414 | 1,059 | 1,060 |
Operating expenses: | ||||
Advertising | 89 | 166 | 363 | 492 |
Selling | 382 | 606 | 1,276 | 2,326 |
General and administrative | 811 | 655 | 2,069 | 2,164 |
Intangible asset amortization | 45 | 65 | 135 | 313 |
Impairment of goodwill and intangible assets | 3,589 | |||
Total operating expenses | 1,327 | 1,492 | 3,843 | 8,884 |
Loss from operations | (972) | (1,078) | (2,784) | (7,824) |
Interest expense | (32) | (27) | (145) | (83) |
Interest income | 16 | 16 | ||
Loss before income taxes and discontinued operations | (988) | (1,105) | (2,913) | (7,907) |
Income tax expense | (4) | (2) | (6) | (55) |
Loss from continuing operations | (992) | (1,107) | (2,919) | (7,962) |
Income from discontinued operations, net of taxes | 3,987 | 363 | 5,830 | 2,434 |
Net income (loss) | $ 2,995 | $ (744) | $ 2,911 | $ (5,528) |
Basic net income (loss) per common shares: | ||||
Loss from continuing operations | $ (0.08) | $ (0.09) | $ (0.23) | $ (0.62) |
Income from discontinued operations | 0.31 | 0.03 | 0.45 | 0.19 |
Net income (loss) per common share | 0.23 | (0.06) | 0.22 | (0.43) |
Diluted net income (loss) per common shares: | ||||
Loss from continuing operations | (0.08) | (0.09) | (0.23) | (0.62) |
Income from discontinued operations | 0.31 | 0.03 | 0.45 | 0.19 |
Net income (loss) per common share | $ 0.23 | $ (0.06) | $ 0.22 | $ (0.43) |
Weighted average shares outstanding: | ||||
Basic | 12,997 | 12,749 | 12,901 | 12,747 |
Diluted | 12,997 | 12,749 | 12,901 | 12,747 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 4,415 | $ 49 |
Restricted cash | 250 | |
Accounts receivable, net | 1,083 | 1,833 |
Inventories | 370 | 775 |
Income taxes receivable | 239 | |
Prepaid expenses | 168 | 243 |
Assets of discontinued operations | 4,261 | |
Total current assets | 6,286 | 7,400 |
Intangible assets, net | 658 | 793 |
Operating lease right-of-use assets | 2,299 | 2,491 |
Other assets | 39 | 47 |
Total assets | 9,282 | 10,731 |
Current liabilities: | ||
Accounts payable | 753 | 1,407 |
Accrued expenses | 132 | 311 |
Current portion of long-term debt, net of debt issuance costs | 3,384 | |
Operating lease liabilities, current portion | 285 | 270 |
Total current liabilities | 1,170 | 5,372 |
Operating lease liabilities, net of current | 2,296 | 2,512 |
Other liabilities | 27 | 27 |
Total liabilities | 3,493 | 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 12,997 shares (2023) and 12,797 shares (2022) | 1,300 | 1,280 |
Capital in excess of par | 7,950 | 7,912 |
Accumulated deficit | (3,461) | (6,372) |
Total shareholders’ equity | 5,789 | 2,820 |
Total liabilities and shareholders’ equity | $ 9,282 | $ 10,731 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,997,000 | 12,797,000 |
Common stock, shares outstanding | 12,997,000 | 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 | ||
Net income (loss) | (451) | (451) | ||
Restricted stock unit vesting | 28 | $ 2 | 26 | |
Restricted stock unit vesting, Shares | 22 | |||
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 income (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 | |||
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 income (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 income (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 | |||
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 | |||
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 | ||
Net income (loss) | $ 2,911 | |||
Ending Balance, Value at Sep. 30, 2023 | $ 5,789 | $ 1,300 | 7,950 | (3,461) |
Ending Balance, Shares at Sep. 30, 2023 | 12,997 | 12,997 | ||
Beginning Balance, Value at Mar. 31, 2023 | $ 3,196 | $ 1,280 | 7,919 | (6,003) |
Beginning Balance, Shares at Mar. 31, 2023 | 12,797 | |||
Stock-based compensation, Value | 50 | $ 20 | 30 | |
Stock-based compensation, Shares | 200 | |||
Net income (loss) | (453) | (453) | ||
Ending Balance, Value at Jun. 30, 2023 | $ 2,793 | $ 1,300 | 7,949 | (6,456) |
Ending Balance, Shares at Jun. 30, 2023 | 12,997 | 12,997 | ||
Stock-based compensation, Value | $ 1 | 1 | ||
Net income (loss) | 2,995 | 2,995 | ||
Ending Balance, Value at Sep. 30, 2023 | $ 5,789 | $ 1,300 | $ 7,950 | $ (3,461) |
Ending Balance, Shares at Sep. 30, 2023 | 12,997 | 12,997 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,911 | $ (5,528) |
Adjustments to reconcile net income (loss) to net cash used by operating activities: | ||
Depreciation and amortization | 281 | 480 |
Gain on disposal of discontinued operations | (4,654) | |
Stock-based compensation | 58 | 113 |
Impairment of goodwill and intangible assets | 3,589 | |
Change in operating assets and liabilities: | ||
Accounts receivable | 915 | 1,725 |
Inventories | 961 | (612) |
Prepaid expenses and other assets | 84 | 222 |
Income taxes receivable | 239 | 73 |
Accounts payable, accrued expenses, and other liabilities | (842) | (1,251) |
Total adjustments to net income (loss) | (2,958) | 4,339 |
Net cash used in operating activities | (47) | (1,189) |
Cash flows from investing activities: | ||
Proceeds from sale of discontinued operations | 8,167 | |
Purchase of software | (142) | |
Net cash provided by (used in) investing activities | 8,167 | (142) |
Cash flows from financing activities: | ||
Proceeds from term loans | 250 | |
Repayments on term loans | (1,250) | (2,000) |
Proceeds from revolving credit facility | 2,795 | 20,763 |
Repayments of revolving credit facility | (5,299) | (18,563) |
Net cash (used in) provided by financing activities | (3,504) | 200 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 4,616 | (1,131) |
Cash, cash equivalents, and restricted cash, beginning of period | 49 | 1,270 |
Cash, cash equivalents, and restricted cash, end of period | 4,665 | 139 |
Supplemental disclosures: | ||
Cash paid during the period for interest | $ 132 | $ 256 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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. Our business is comprised of one segment, household 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 September 15, 2023, we entered into and consummated a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Neoteric Beauty Holdings, LLC, a Delaware limited liability company (the “Neoteric Buyer”), pursuant to which the Company agreed to sell 100 % of the outstanding stock of Neoteric Cosmetics, Inc. (“Neoteric”) to the Neoteric Buyer. Neoteric owned and operated the Denorex ® , Zincon ® , and Neoteric Diabetic Skin Care ® brands. We have reflected the operations of the Neoteric brands as discontinued operations for all periods presented. The Neoteric brands were previously classified under our health and beauty care products segment. See Note 3 for further information. Effective June 30, 2023, we entered into, and in July 2023 we closed, a 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 Alpha ® Skin Care brand (the "Alpha Purchase Agreement"). We have reflected the operations of the Alpha ® Skin Care brand as discontinued operations for all periods presented. The Alpha product line was previously classified under our health and beauty care products segment. See Note 3 for further information. Effective July 2023 we entered into, and in July 2023 closed, a 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 BIZ ® brand. We have reflected the operations of the BIZ ® brand as discontinued operations for all periods presented. The BIZ ® product line was previously classified under our household products segment. See Note 3 for further information. 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 ® 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 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 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, 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 September 30, 2023 are not necessarily indicative of the operating results for the full year and are unaudited. Certain prior year amounts have been reclassified to conform to the current period presentation. (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, operating lease right-of-use assets and operating lease liabilities, and stock-based compensation. Actual results could differ from our estimates. (e) Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. September 30, 2023 December 31, 2022 Cash $ 4,415 $ 49 Restricted Cash 250 - $ 4,665 $ 49 (f) Inventories Valuation and Reserves Inventories can 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. Raw materials balance are sold to contract manufacturing partners based on production demand. (g) Discontinued Operations Disposal groups that meet the discontinued operations criteria by the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 205-20-45 are classified as discontinued operations and are excluded from continuing operations and segment results for all periods presented. (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. (i) Intangible Assets Internal-use software costs recognized as an intangible asset relates to capitalizable costs of computer software obtained for internal-use as defined by 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 and cash equivalents, restricted cash, and accounts receivable. We maintain our cash balances in the form of money market 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 and cash equivalents, 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 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 and nine months ended September 30, 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 nine months ended September 30, 2023 and 2022 was 0.2 % and 0.7 % 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, 2023 and December 31, 2022 . (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, 2023 December 31, 2022 Trade promotions $ 94 $ 361 Allowance for doubtful accounts 14 59 $ 108 $ 420 (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 manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, repairs, maintenance, and other indirect costs, as well as warehousing and distribution costs. We classify freight-out as selling expenses. Other selling expenses consist primarily of costs for sales and sales support personnel, brokerage commissions, and promotional costs. Freight-out costs included in selling expenses totaled $ 75 and $ 64 for the three months ended September 30, 2023 and 2022, respectively, and totaled $ 157 and $ 443 for the nine months ended September 30, 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. (p) Supplier Finance Programs In September 2022, the FASB issued ASU No. 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer that uses supplier finance programs to make annual disclosures about the programs’ key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period and associated roll-forward information. The guidance was effective for the Company beginning on January 1, 2023, except for the roll-forward information, which is effective beginning on January 1, 2024. This guidance has not had and is not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements. During 2022, we entered into an agreement with a third-party financial institution and an 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 $ 0 and $ 218 as of September 30, 2023 and December 31, 2022, respectively, which will be recognized on the Condensed Consolidated Financial Statements as payments are due. (q) Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, “Disclosure Improvements-Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. This guidance is effective for the Company no later than June 30, 2027 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Liquidity
Liquidity | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Note 2. Liquidity 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. Absent any other action, the Company previously believed it would require additional liquidity to continue its operations over the next 12 months. Due to the sales of our various brands as disclosed in Note 3 to the Condensed Consolidated Financial Statements, which generated $ 6,396 of cash in the third quarter of 2023, we have fully repaid all long-term debt as of July 2023. While, absent any other actions, our operating activities are still expected to result in negative cash flows, we now expect to have enough liquidity to finance operations for the next 12 months. Management has recently implemented actions to reduce the Company’s operating expenses through asset sales, consolidation of vendors, and personnel reductions. To further reduce operating losses, the Company is considering additional various strategic actions including asset sales, obtaining additional debt or equity financing (potentially in conjunction with mergers or 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 long-term liquidity needs and pursue its business plan. The Company expects that these strategic actions will further reduce expenses and provide required liquidity for ongoing operations. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Note 3. Divestitures Neoteric Cosmetics, Inc. On September 15, 2023, we entered into and consummated a Stock Purchase Agreement with Neoteric Beauty Holdings, LLC, a Delaware limited liability company, pursuant to which the Company agreed to sell 100 % of the outstanding stock of Neoteric Cosmetics, Inc to the Neoteric Buyer. Neoteric owned and operated the Denorex ® , Zincon ® , and Neoteric Diabetic Skin Care ® brands. The closing consideration paid to the Company was $ 1,750 , with an initial deposit of $ 175 paid on September 5, 2023. The operations of the Neoteric brands have been classified as income from discontinued operations for all periods presented. As part of the Stock Purchase Agreement, we agreed to maintain at least $ 250 in accounts at our primary bank for a period of nine months following closing which is designated as restricted cash on the Condensed Consolidated Balance Sheets. Concurrent with the entry into the Stock Purchase Agreement, the Company entered into a transition services agreement with the Neoteric Buyer where both parties would perform certain identified services related to the operations of the brands contemplated in the Stock Purchase Agreement. This transition services agreement has a term of 90 days which can be extended by the Neoteric Buyer for up to three additional 30 day periods or extended as consented by both parties. Alpha ® Skin Care Effective June 30, 2023, we entered into, and in July 2023 we closed, a 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 Alpha ® Skin Care brand. The Company received payments of $ 2,500 and $ 200 in July 2023 and August 2023, respectively, representing total consideration for the sale of the Alpha Skin Care brand in the amount of $ 2,700 . The operations of Alpha ® have been classified as income from discontinued operations for all periods presented. Concurrent with the entry into the Alpha ® Purchase Agreement, the Company entered into a transition services agreement with the buyer where both parties would perform certain identified services related to the operations of the brands contemplated in the Alpha ® Purchase Agreement. This transition services agreement has a term of 90 days which can be extended by the buyer for up to three additional 30 day periods or extended as consented by both parties. BIZ ® Effective June 30, 2023, we entered into, and in July 2023 we closed, a 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 BIZ ® brand. The transactions contemplated by the BIZ ® Purchase Agreement were consummated on July 7, 2023. The total consideration paid to us was $ 1,000 , plus an amount equal to the value of the BIZ ® inventory , valued at $ 946 as of the effective date of the agreement, subject to post-close adjustment. The operations of BIZ ® have been classified as income from discontinued operations for all periods presented. Concurrent with the entry into the BIZ ® Purchase Agreement, the Company entered into a transition services agreement with the buyer where both parties would perform certain identified services related to the operations of the brands contemplated in the BIZ ® Purchase Agreement. This transition services agreement has a term of 90 days which can be extended by the buyer for up to three additional 30 day periods or extended as consented by both parties. Scott's Liquid Gold ® Wood Care and Scott's Liquid Gold ® Floor Restore 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. The Company may continue to use the name “Scott’s Liquid Gold” and “SLG” in a manner consistent with all past and current practices for a period of 1 year following the closing date of the asset purchase agreement, at which point the Company may only use the aforementioned names in connection with retaining records and other historical documentation. Concurrent with the entry into the asset purchase agreement, the Company entered into a transition services agreement with the buyer where both parties would perform certain identified services related to the operations of the brands contemplated in the asset purchase agreement. This transition services agreement concluded in accordance with the end of its term on July 22, 2023. 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 was initially fully constrained and no amount was included in the results from discontinued operations. During the three months ended September 30, 2023, we assessed the variable consideration and concluded that the volatility of external factors continue to exist and, as a result, consideration for the Scott's Liquid Gold ® Royalty continues 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 ® product lines as discontinued operations. Prell ® 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. Because the Prell ® 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 Prell ® Royalty was initially fully constrained and no amount was included in the results from discontinued operations. During the three months ended September 30, 2023, we assessed the variable consideration and concluded that the volatility of external factors continue to exist and, as a result, consideration continues 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 Prell ® product line as discontinued operations. Concurrent with the entry into the asset purchase agreement, the Company entered into a transition services agreement with the buyer where both parties would perform certain identified services related to the operations of the brands contemplated in the asset purchase agreement. This transition services agreement concluded in accordance with the end of its term on June 15, 2023. 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 and nine months ended September 30: Three Months Ended September 30, 2023 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 592 $ - $ - $ - $ - $ 592 Cost of sales 318 - - - - 318 Gross profit 274 - - - - 274 Operating expenses: Selling 90 - - - - 90 General and administrative 47 13 - - - 60 Intangible asset amortization 4 - - - - 4 Operating income (loss) from discontinued operations 133 ( 13 ) - - - 120 Gain on sale of discontinued operations 1,501 1,585 781 3,867 Interest expense - - - - - - Income from discontinued operations $ 1,634 $ 1,572 $ 781 $ - $ - $ 3,987 Three Months Ended September 30, 2022 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 494 $ 131 $ 1,179 $ 903 $ 837 $ 3,544 Cost of sales 172 ( 18 ) 958 540 387 2,039 Gross profit 322 149 221 363 450 1,505 Operating expenses: Selling 108 63 384 261 192 1,008 Intangible asset amortization 4 - 6 12 - 22 Operating income (loss) from discontinued operations 210 86 ( 169 ) 90 258 475 Interest expense - - ( 44 ) ( 14 ) ( 54 ) ( 112 ) Income (loss) from discontinued operations $ 210 $ 86 $ ( 213 ) $ 76 $ 204 $ 363 Nine Months Ended September 30, 2023 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 2,144 $ 879 $ 2,164 $ - $ 187 $ 5,374 Cost of sales 1,132 278 1,510 - 95 3,015 Gross profit 1,012 601 654 - 92 2,359 Operating expenses: Selling 342 141 437 - 28 948 General and administrative 47 22 12 - 22 103 Intangible asset amortization 14 - 12 - - 26 Operating income from discontinued operations 609 438 193 - 42 1,282 Interest expense - - ( 88 ) - ( 18 ) ( 106 ) Gain on sale of discontinued operations 1,501 1,585 781 - 787 4,654 Income from discontinued operations $ 2,110 $ 2,023 $ 886 $ - $ 811 $ 5,830 Nine Months Ended September 30, 2022 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 1,906 $ 1,982 $ 3,602 $ 2,494 $ 3,150 $ 13,134 Cost of sales 843 659 2,665 1,506 1,409 7,082 Gross profit 1,063 1,323 937 988 1,741 6,052 Operating expenses: Selling 374 344 1,061 753 681 3,213 Intangible asset amortization 15 - 18 36 - 69 Operating income (loss) from discontinued operations 674 979 ( 142 ) 199 1,060 2,770 Interest expense - - ( 132 ) ( 42 ) ( 162 ) ( 336 ) Income (loss) from discontinued operations $ 674 $ 979 $ ( 274 ) $ 157 $ 898 $ 2,434 There were no capital expenditures or significant operating and investing noncash items related to discontinued operations during the nine months ended September 30, 2023 and 2022, respectively. Reconciliation of Major Classes of Assets of the Discontinued Operations to Amounts Presented Separately in the Consolidated Balance Sheets as of: December 31, 2022 Neoteric ® Alpha ® BIZ ® Scott's Liquid Gold ® Total Assets Current assets: Inventories $ 322 $ 1,268 $ 1,092 $ 1,235 $ 3,917 Intangible assets, net 113 - 231 - $ 344 Assets of discontinued operations $ 435 $ 1,268 $ 1,323 $ 1,235 $ 4,261 There were no assets of discontinued operations related to Prell ® in the above table. There were no assets of discontinued operations related to Prell ® , Scott's Liquid Gold ® , BIZ ® , Alpha ® , and Neoteric as of September 30, 2023. The following summarizes the carrying values of assets and the resulting in the gain on sale of discontinued operations associated with Neoteric, Alpha ® , BIZ ® , and Scott's Liquid Gold ® at the date of disposition: Neoteric Alpha ® BIZ ® Scott's Liquid Gold ® Total Inventories $ 150 $ 1,115 $ 946 $ 1,149 $ 3,360 Trade names 59 - 145 - 204 Formulas 40 - 71 - 111 Non-compete agreement - - 3 - 3 Intangible assets, net 99 - 219 - 318 Proceeds from sale 1,750 2,700 1,946 1,936 8,332 Gain on sale of discontinued operations $ 1,501 $ 1,585 $ 781 $ 787 $ 4,654 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 4. Stock-Based Compensation On May 11, 2023, we granted 200,000 shares of restricted stock to two directors all of which vested on the grant date with a fair value of $ 40 . On March 2, 2022, we granted 15,000 shares of restricted stock to one executive all of which vested on the grant date with a fair value of $ 18 . On January 18, 2022, we granted 25,000 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. Compensation cost related to stock options totaled $ 0 and $ 10 in the nine months ended September 30, 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 $ 58 and $ 103 for the nine months ended September 30, 2023 and 2022, respectively. Approximately $ 38 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, 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 is 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Common shares outstanding, beginning of the period 12,997 12,749 12,797 12,727 Weighted average common shares issued - - 104 20 Weighted average number of common shares outstanding 12,997 12,749 12,901 12,747 Dilutive effect of common share equivalents - - - - Diluted weighted average number of common shares outstanding 12,997 12,749 12,901 12,747 Common stock equivalents (in thousands) that have been excluded from the calculation of earnings per share because they would have been anti-dilutive are as follows: Three Months and Nine Months Ended September 30, 2023 2022 Stock options 56 153 Restricted stock units 20 88 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 6. Segment Information We previously operated in two different segments: household products and health and beauty care products. We chose to organize our business around these segments based on differences in the products sold. Accounting policies for our segments were the same as those described in Note 1. We evaluated segment performance based on segment income or loss from operations. In the third quarter of 2023, in conjunction with the divestitures brands, the Company determined it has one reportable segment. These divestitures are described in Note 3. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 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, consisted of the following: As of September 30, 2023 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Internal-use software 898 240 658 898 105 793 Amortization expense for the three months ended September 30, 2023 and 2022 was $ 45 and $ 65 , respectively. Amortization expense for the nine months ended September 30, 2023 and 2022 was $ 135 and $ 313 , respectively. Estimated amortization expense for 2023 and subsequent years is as follows: Remainder of 2023 $ 45 2024 180 2025 180 2026 180 2027 73 Total $ 658 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8. Long-Term Debt 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. 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 %. 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 September 30, 2023 and December 31, 2022, respectively. Amortization of loan costs for the nine months ended September 30, 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 nine months ended September 30, 2022 was $ 99 . 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 %. We repaid $ 1,000 of principal against the La Plata Loan Agreement during the first quarter of 2022. Unamortized loan costs were $ 0 and $ 20 as of September 30, 2023 and December 31, 2022, respectively. Amortization of loan costs for the nine months ended September 30, 2023 and 2022 were $ 20 and $ 26 , respectively. On July 7, 2023, the La Plata term loans were paid in full and the La Plata Loan Agreement was terminated. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 9. Leases We have entered into a lease for our corporate headquarters with a remaining lease term of 7 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, 2023 Nine Months Ended September 30, 2023 Operating lease information: Operating lease cost $ 101 $ 304 Operating cash flows from operating leases 101 304 Net assets obtained in exchange for new operating lease liabilities - - Weighted average remaining lease term in years 7.17 7.17 Weighted average discount rate 5.1 % 5.1 % Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease information: Operating lease cost $ 100 $ 200 Operating cash flows from operating leases 100 200 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 2023 $ 102 2024 413 2025 420 2026 427 2027 434 Thereafter 1,305 Total minimum lease payments $ 3,101 Less imputed interest ( 520 ) Total operating lease liability $ 2,581 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events Related Party Transactions In October 2023, the Company agreed to reimburse Maran Capital Management, LLC ("Maran") $ 200 for certain legal and other expenses incurred by Maran related to the Company between February 2021 and September 2023 and in consideration of the significant support received by the Company from Maran in sourcing, structuring, and negotiating the various asset divestitures aforementioned in Note 3 to the Condensed Consolidated Financial Statements. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 September 15, 2023, we entered into and consummated a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Neoteric Beauty Holdings, LLC, a Delaware limited liability company (the “Neoteric Buyer”), pursuant to which the Company agreed to sell 100 % of the outstanding stock of Neoteric Cosmetics, Inc. (“Neoteric”) to the Neoteric Buyer. Neoteric owned and operated the Denorex ® , Zincon ® , and Neoteric Diabetic Skin Care ® brands. We have reflected the operations of the Neoteric brands as discontinued operations for all periods presented. The Neoteric brands were previously classified under our health and beauty care products segment. See Note 3 for further information. Effective June 30, 2023, we entered into, and in July 2023 we closed, a 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 Alpha ® Skin Care brand (the "Alpha Purchase Agreement"). We have reflected the operations of the Alpha ® Skin Care brand as discontinued operations for all periods presented. The Alpha product line was previously classified under our health and beauty care products segment. See Note 3 for further information. Effective July 2023 we entered into, and in July 2023 closed, a 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 BIZ ® brand. We have reflected the operations of the BIZ ® brand as discontinued operations for all periods presented. The BIZ ® product line was previously classified under our household products segment. See Note 3 for further information. 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 ® 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 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 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, 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 September 30, 2023 are not necessarily indicative of the operating results for the full year and are unaudited. Certain prior year amounts have been reclassified to conform to the current period presentation. |
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, operating lease right-of-use assets and operating lease liabilities, and stock-based compensation. Actual results could differ from our estimates. |
Cash and Cash Equivalents | (e) Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. September 30, 2023 December 31, 2022 Cash $ 4,415 $ 49 Restricted Cash 250 - $ 4,665 $ 49 |
Inventories Valuation and Reserves | (f) Inventories Valuation and Reserves Inventories can 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. Raw materials balance are sold to contract manufacturing partners based on production demand. |
Discontinued Operations | (g) Discontinued Operations Disposal groups that meet the discontinued operations criteria by the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 205-20-45 are classified as discontinued operations and are excluded from continuing operations and segment results for all periods presented. |
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. |
Intangible Assets | (i) Intangible Assets Internal-use software costs recognized as an intangible asset relates to capitalizable costs of computer software obtained for internal-use as defined by 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 and cash equivalents, restricted cash, and accounts receivable. We maintain our cash balances in the form of money market 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 and cash equivalents, 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 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 and nine months ended September 30, 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 nine months ended September 30, 2023 and 2022 was 0.2 % and 0.7 % 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, 2023 and December 31, 2022 . |
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, 2023 December 31, 2022 Trade promotions $ 94 $ 361 Allowance for doubtful accounts 14 59 $ 108 $ 420 |
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 manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, repairs, maintenance, and other indirect costs, as well as warehousing and distribution costs. We classify freight-out as selling expenses. Other selling expenses consist primarily of costs for sales and sales support personnel, brokerage commissions, and promotional costs. Freight-out costs included in selling expenses totaled $ 75 and $ 64 for the three months ended September 30, 2023 and 2022, respectively, and totaled $ 157 and $ 443 for the nine months ended September 30, 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 | (p) Supplier Finance Programs In September 2022, the FASB issued ASU No. 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer that uses supplier finance programs to make annual disclosures about the programs’ key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period and associated roll-forward information. The guidance was effective for the Company beginning on January 1, 2023, except for the roll-forward information, which is effective beginning on January 1, 2024. This guidance has not had and is not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements. During 2022, we entered into an agreement with a third-party financial institution and an 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 $ 0 and $ 218 as of September 30, 2023 and December 31, 2022, respectively, which will be recognized on the Condensed Consolidated Financial Statements as payments are due. (q) Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, “Disclosure Improvements-Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. This guidance is effective for the Company no later than June 30, 2027 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Recently Issued Accounting Standards | (q) Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, “Disclosure Improvements-Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. This guidance is effective for the Company no later than June 30, 2027 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | September 30, 2023 December 31, 2022 Cash $ 4,415 $ 49 Restricted Cash 250 - $ 4,665 $ 49 |
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, 2023 December 31, 2022 Trade promotions $ 94 $ 361 Allowance for doubtful accounts 14 59 $ 108 $ 420 |
Divestitures (Tables)
Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
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, 2023 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 592 $ - $ - $ - $ - $ 592 Cost of sales 318 - - - - 318 Gross profit 274 - - - - 274 Operating expenses: Selling 90 - - - - 90 General and administrative 47 13 - - - 60 Intangible asset amortization 4 - - - - 4 Operating income (loss) from discontinued operations 133 ( 13 ) - - - 120 Gain on sale of discontinued operations 1,501 1,585 781 3,867 Interest expense - - - - - - Income from discontinued operations $ 1,634 $ 1,572 $ 781 $ - $ - $ 3,987 Three Months Ended September 30, 2022 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 494 $ 131 $ 1,179 $ 903 $ 837 $ 3,544 Cost of sales 172 ( 18 ) 958 540 387 2,039 Gross profit 322 149 221 363 450 1,505 Operating expenses: Selling 108 63 384 261 192 1,008 Intangible asset amortization 4 - 6 12 - 22 Operating income (loss) from discontinued operations 210 86 ( 169 ) 90 258 475 Interest expense - - ( 44 ) ( 14 ) ( 54 ) ( 112 ) Income (loss) from discontinued operations $ 210 $ 86 $ ( 213 ) $ 76 $ 204 $ 363 Nine Months Ended September 30, 2023 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 2,144 $ 879 $ 2,164 $ - $ 187 $ 5,374 Cost of sales 1,132 278 1,510 - 95 3,015 Gross profit 1,012 601 654 - 92 2,359 Operating expenses: Selling 342 141 437 - 28 948 General and administrative 47 22 12 - 22 103 Intangible asset amortization 14 - 12 - - 26 Operating income from discontinued operations 609 438 193 - 42 1,282 Interest expense - - ( 88 ) - ( 18 ) ( 106 ) Gain on sale of discontinued operations 1,501 1,585 781 - 787 4,654 Income from discontinued operations $ 2,110 $ 2,023 $ 886 $ - $ 811 $ 5,830 Nine Months Ended September 30, 2022 Neoteric Alpha ® BIZ ® Prell ® Scott's Liquid Gold ® Total Net sales $ 1,906 $ 1,982 $ 3,602 $ 2,494 $ 3,150 $ 13,134 Cost of sales 843 659 2,665 1,506 1,409 7,082 Gross profit 1,063 1,323 937 988 1,741 6,052 Operating expenses: Selling 374 344 1,061 753 681 3,213 Intangible asset amortization 15 - 18 36 - 69 Operating income (loss) from discontinued operations 674 979 ( 142 ) 199 1,060 2,770 Interest expense - - ( 132 ) ( 42 ) ( 162 ) ( 336 ) Income (loss) from discontinued operations $ 674 $ 979 $ ( 274 ) $ 157 $ 898 $ 2,434 There were no capital expenditures or significant operating and investing noncash items related to discontinued operations during the nine months ended September 30, 2023 and 2022, respectively. Reconciliation of Major Classes of Assets of the Discontinued Operations to Amounts Presented Separately in the Consolidated Balance Sheets as of: December 31, 2022 Neoteric ® Alpha ® BIZ ® Scott's Liquid Gold ® Total Assets Current assets: Inventories $ 322 $ 1,268 $ 1,092 $ 1,235 $ 3,917 Intangible assets, net 113 - 231 - $ 344 Assets of discontinued operations $ 435 $ 1,268 $ 1,323 $ 1,235 $ 4,261 There were no assets of discontinued operations related to Prell ® in the above table. There were no assets of discontinued operations related to Prell ® , Scott's Liquid Gold ® , BIZ ® , Alpha ® , and Neoteric as of September 30, 2023. The following summarizes the carrying values of assets and the resulting in the gain on sale of discontinued operations associated with Neoteric, Alpha ® , BIZ ® , and Scott's Liquid Gold ® at the date of disposition: Neoteric Alpha ® BIZ ® Scott's Liquid Gold ® Total Inventories $ 150 $ 1,115 $ 946 $ 1,149 $ 3,360 Trade names 59 - 145 - 204 Formulas 40 - 71 - 111 Non-compete agreement - - 3 - 3 Intangible assets, net 99 - 219 - 318 Proceeds from sale 1,750 2,700 1,946 1,936 8,332 Gain on sale of discontinued operations $ 1,501 $ 1,585 $ 781 $ 787 $ 4,654 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 is 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Common shares outstanding, beginning of the period 12,997 12,749 12,797 12,727 Weighted average common shares issued - - 104 20 Weighted average number of common shares outstanding 12,997 12,749 12,901 12,747 Dilutive effect of common share equivalents - - - - Diluted weighted average number of common shares outstanding 12,997 12,749 12,901 12,747 |
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 are as follows: Three Months and Nine Months Ended September 30, 2023 2022 Stock options 56 153 Restricted stock units 20 88 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 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, consisted of the following: As of September 30, 2023 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Internal-use software 898 240 658 898 105 793 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for 2023 and subsequent years is as follows: Remainder of 2023 $ 45 2024 180 2025 180 2026 180 2027 73 Total $ 658 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Information Related to Leases | Information related to leases was as follows: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Operating lease information: Operating lease cost $ 101 $ 304 Operating cash flows from operating leases 101 304 Net assets obtained in exchange for new operating lease liabilities - - Weighted average remaining lease term in years 7.17 7.17 Weighted average discount rate 5.1 % 5.1 % Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease information: Operating lease cost $ 100 $ 200 Operating cash flows from operating leases 100 200 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 2023 $ 102 2024 413 2025 420 2026 427 2027 434 Thereafter 1,305 Total minimum lease payments $ 3,101 Less imputed interest ( 520 ) Total operating lease liability $ 2,581 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) - Segment | 9 Months Ended | |
Sep. 30, 2023 | Sep. 15, 2023 | |
Subsidiary, Sale of Stock [Line Items] | ||
Number of business segment | 2 | |
Neoteric Buyer | ||
Subsidiary, Sale of Stock [Line Items] | ||
Percentage of Subsidiary Outstanding Stock Sold | 100% |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash | $ 4,415 | $ 49 | ||
Restricted cash | 250 | |||
Cash and restricted cash | $ 4,665 | $ 49 | $ 139 | $ 1,270 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Additional Information 1 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 | 0.20% | 0.70% | |
Internal-use Software Costs Member | |||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||
Useful lives of intangible assets | 5 years | 5 years |
Organization and Summary of S_7
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, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Trade promotions | $ 94 | $ 361 |
Allowance for doubtful accounts | 14 | 59 |
Trade promotions and allowance for doubtful accounts | $ 108 | $ 420 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Additional Information 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Payment for obligation outstanding amount | $ 0 | $ 0 | $ 218 | ||
Selling Expenses | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Freight-out costs | $ 75 | $ 64 | $ 157 | $ 443 |
Liquidity - Additional Informat
Liquidity - Additional Information (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Disposal of Product Line | Neoteric, Alpha, BIZ, Prell and Scott's Liquid Gold | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Proceeds from sales of interest in certain assets | $ 6,396 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) | 1 Months Ended | 9 Months Ended | ||||||
Sep. 15, 2023 USD ($) Days | Jan. 23, 2023 USD ($) | Dec. 15, 2022 USD ($) | Aug. 31, 2023 USD ($) | Jul. 31, 2023 USD ($) Days | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Total consideration paid | $ 8,332,000 | |||||||
Inventories | 3,360,000 | |||||||
Capital expenditure discontinued operations | 0 | $ 0 | ||||||
Disposal of Product Line | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Inventories | $ 3,917,000 | |||||||
Alpha | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Total consideration paid | 2,700,000 | |||||||
Inventories | $ 1,115,000 | |||||||
Transition services agreement description | This transition services agreement has a term of 90 days which can be extended by the buyer for up to three additional 30 day periods or extended as consented by both parties. | |||||||
Transition services agreement, term | Days | 90 | |||||||
Transition services agreement, maximum extended term | Days | 30 | |||||||
Alpha | Disposal of Product Line | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sales of interest in certain assets | $ 200,000 | $ 2,500,000 | ||||||
Total consideration paid | $ 2,700,000 | |||||||
Inventories | 1,268,000 | |||||||
BIZ | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Total consideration paid | 1,946,000 | |||||||
Inventories | $ 946,000 | |||||||
Transition services agreement description | This transition services agreement has a term of 90 days which can be extended by the buyer for up to three additional 30 day periods or extended as consented by both parties. | |||||||
Transition services agreement, term | Days | 90 | |||||||
Transition services agreement, maximum extended term | Days | 30 | |||||||
BIZ | Disposal of Product Line | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Total consideration paid | $ 1,000,000 | |||||||
Inventories | 946,000 | 1,092,000 | ||||||
Scott's Liquid Gold | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Total consideration paid | 1,936,000 | |||||||
Inventories | $ 1,149,000 | |||||||
Scott's Liquid Gold | Disposal of Product Line | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Total consideration paid | $ 800,000 | |||||||
Inventories | $ 1,136,000 | $ 1,235,000 | ||||||
Royalty percentage | 2% | |||||||
Royalty fees payment period | 2 years | |||||||
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% | |||||||
Neoteric Buyer | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Percentage of Subsidiary Outstanding Stock Sold | 100% | |||||||
Total consideration paid | $ 1,750,000 | |||||||
Initial deposit on consideration paid | 175,000 | |||||||
Minimum balance amount under agreement | $ 250,000 | |||||||
Transition services agreement description | This transition services agreement has a term of 90 days which can be extended by the Neoteric Buyer for up to three additional 30 day periods or extended as consented by both parties. | |||||||
Transition services agreement, term | Days | 90 | |||||||
Transition services agreement, maximum extended term | Days | 30 |
Divestitures - Summary of Finan
Divestitures - Summary of Financial Information Constituting Pretax Loss to After-Tax Loss of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating expenses: | ||||
Gain on sale of discontinued operations | $ 4,654 | |||
Income (loss) from discontinued operations | $ 3,987 | $ 363 | 5,830 | $ 2,434 |
Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | 592 | 3,544 | 5,374 | 13,134 |
Cost of sales | 318 | 2,039 | 3,015 | 7,082 |
Gross profit | 274 | 1,505 | 2,359 | 6,052 |
Operating expenses: | ||||
Selling | 90 | 1,008 | 948 | 3,213 |
General and administrative | 60 | 103 | ||
Intangible asset amortization | 4 | 22 | 26 | 69 |
Operating income (loss) from discontinued operations | 120 | 475 | 1,282 | 2,770 |
Interest expense | (112) | (106) | (336) | |
Gain on sale of discontinued operations | 3,867 | 4,654 | ||
Income (loss) from discontinued operations | 3,987 | 363 | 5,830 | 2,434 |
Neoteric | ||||
Operating expenses: | ||||
Gain on sale of discontinued operations | 1,501 | |||
Neoteric | Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | 592 | 494 | 2,144 | 1,906 |
Cost of sales | 318 | 172 | 1,132 | 843 |
Gross profit | 274 | 322 | 1,012 | 1,063 |
Operating expenses: | ||||
Selling | 90 | 108 | 342 | 374 |
General and administrative | 47 | 47 | ||
Intangible asset amortization | 4 | 4 | 14 | 15 |
Operating income (loss) from discontinued operations | 133 | 210 | 609 | 674 |
Gain on sale of discontinued operations | 1,501 | 1,501 | ||
Income (loss) from discontinued operations | 1,634 | 210 | 2,110 | 674 |
Alpha | ||||
Operating expenses: | ||||
Gain on sale of discontinued operations | 1,585 | |||
Alpha | Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | 131 | 879 | 1,982 | |
Cost of sales | (18) | 278 | 659 | |
Gross profit | 149 | 601 | 1,323 | |
Operating expenses: | ||||
Selling | 63 | 141 | 344 | |
General and administrative | 13 | 22 | ||
Operating income (loss) from discontinued operations | (13) | 86 | 438 | 979 |
Gain on sale of discontinued operations | 1,585 | 1,585 | ||
Income (loss) from discontinued operations | 1,572 | 86 | 2,023 | 979 |
BIZ | ||||
Operating expenses: | ||||
Gain on sale of discontinued operations | 781 | |||
BIZ | Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | 1,179 | 2,164 | 3,602 | |
Cost of sales | 958 | 1,510 | 2,665 | |
Gross profit | 221 | 654 | 937 | |
Operating expenses: | ||||
Selling | 384 | 437 | 1,061 | |
General and administrative | 12 | |||
Intangible asset amortization | 6 | 12 | 18 | |
Operating income (loss) from discontinued operations | (169) | 193 | (142) | |
Interest expense | (44) | (88) | (132) | |
Gain on sale of discontinued operations | 781 | 781 | ||
Income (loss) from discontinued operations | $ 781 | (213) | 886 | (274) |
Prell | Disposal of Product Line | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | 903 | 2,494 | ||
Cost of sales | 540 | 1,506 | ||
Gross profit | 363 | 988 | ||
Operating expenses: | ||||
Selling | 261 | 753 | ||
Intangible asset amortization | 12 | 36 | ||
Operating income (loss) from discontinued operations | 90 | 199 | ||
Interest expense | (14) | (42) | ||
Income (loss) from discontinued operations | 76 | 157 | ||
Scott's Liquid Gold | ||||
Operating expenses: | ||||
Gain on sale of discontinued operations | 787 | |||
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 | 837 | 187 | 3,150 | |
Cost of sales | 387 | 95 | 1,409 | |
Gross profit | 450 | 92 | 1,741 | |
Operating expenses: | ||||
Selling | 192 | 28 | 681 | |
General and administrative | 22 | |||
Operating income (loss) from discontinued operations | 258 | 42 | 1,060 | |
Interest expense | (54) | (18) | (162) | |
Gain on sale of discontinued operations | 787 | |||
Income (loss) from discontinued operations | $ 204 | $ 811 | $ 898 |
Divestitures - Summary of Fin_2
Divestitures - Summary of Financial Information Constituting Major Classes of Assets of Discontinued Operations (Details) - USD ($) | Sep. 30, 2023 | Jan. 23, 2023 | Dec. 31, 2022 | Dec. 15, 2022 |
Assets | ||||
Inventories | $ 3,360,000 | |||
Intangible assets, net | 318,000 | |||
Assets of discontinued operations | $ 4,261,000 | |||
Disposal of Product Line | ||||
Assets | ||||
Inventories | 3,917,000 | |||
Intangible assets, net | 344,000 | |||
Assets of discontinued operations | 4,261,000 | |||
Neoteric | ||||
Assets | ||||
Inventories | 150,000 | |||
Intangible assets, net | 99,000 | |||
Neoteric | Disposal of Product Line | ||||
Assets | ||||
Inventories | 322,000 | |||
Intangible assets, net | 113,000 | |||
Assets of discontinued operations | 435,000 | |||
Alpha | ||||
Assets | ||||
Inventories | 1,115,000 | |||
Alpha | Disposal of Product Line | ||||
Assets | ||||
Inventories | 1,268,000 | |||
Assets of discontinued operations | 0 | 1,268,000 | ||
BIZ | ||||
Assets | ||||
Inventories | 946,000 | |||
Intangible assets, net | 219,000 | |||
BIZ | Disposal of Product Line | ||||
Assets | ||||
Inventories | 946,000 | 1,092,000 | ||
Intangible assets, net | 231,000 | |||
Assets of discontinued operations | 0 | 1,323,000 | ||
Scott's Liquid Gold | ||||
Assets | ||||
Inventories | 1,149,000 | |||
Scott's Liquid Gold | Disposal of Product Line | ||||
Assets | ||||
Inventories | $ 1,136,000 | 1,235,000 | ||
Assets of discontinued operations | 0 | 1,235,000 | ||
Prell | Disposal of Product Line | ||||
Assets | ||||
Inventories | $ 330,000 | |||
Assets of discontinued operations | $ 0 | $ 0 |
Divestitures - Summary of Carry
Divestitures - Summary of Carrying Value of Assets and Resulting in Gain on Sale of Discontinued Operations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Inventories | $ 3,360 |
Intangible assets, net | 318 |
Proceeds from sale | 8,332 |
Gain on sale of discontinued operations | 4,654 |
Trade Names | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 204 |
Formulas | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 111 |
Non-compete | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 3 |
BIZ | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Inventories | 946 |
Intangible assets, net | 219 |
Proceeds from sale | 1,946 |
Gain on sale of discontinued operations | 781 |
BIZ | Trade Names | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 145 |
BIZ | Formulas | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 71 |
BIZ | Non-compete | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 3 |
Alpha | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Inventories | 1,115 |
Proceeds from sale | 2,700 |
Gain on sale of discontinued operations | 1,585 |
Neoteric | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Inventories | 150 |
Intangible assets, net | 99 |
Proceeds from sale | 1,750 |
Gain on sale of discontinued operations | 1,501 |
Neoteric | Trade Names | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 59 |
Neoteric | Formulas | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 40 |
Scott's Liquid Gold | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Inventories | 1,149 |
Proceeds from sale | 1,936 |
Gain on sale of discontinued operations | $ 787 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 9 Months Ended | ||||
May 11, 2023 | Mar. 02, 2022 | Jan. 18, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation | $ 58,000 | $ 113,000 | |||
Tax benefit from recording non-cash expense relates to options granted to employees | 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation | 58,000 | 103,000 | |||
Unrecognized compensation costs related to non-vested stock options | $ 38,000 | ||||
Period over which compensation costs related to non-vested stock options recognize | 3 years | ||||
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 | 200,000 | 15,000 | |||
Restricted stock shares granted in period granted date fair value | $ 40,000 | $ 18,000 | |||
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 | 25,000 | ||||
Restricted stock shares granted in period granted date fair value | $ 10,000 | ||||
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. | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation | $ 0 | $ 10,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |||||
Beginning Balance, Shares | 12,997 | 12,997 | 12,749 | 12,797 | 12,727 |
Weighted average common shares issued | 104 | 20 | |||
Weighted average number of common shares outstanding | 12,997 | 12,997 | 12,749 | 12,901 | 12,747 |
Diluted weighted average number of common shares outstanding | 12,997 | 12,749 | 12,901 | 12,747 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of earnings per share | 56 | 153 | 56 | 153 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of earnings per share | 20 | 88 | 20 | 88 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Segment | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Segment Reporting [Abstract] | ||
Number of business segment | 2 | |
Number of reportable segment | 1 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - Internal-use Software - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 898 | $ 898 |
Accumulated Amortization | 240 | 105 |
Net Carrying Value | $ 658 | $ 793 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 45 | $ 65 | $ 135 | $ 313 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 45 |
2024 | 180 |
2025 | 180 |
2026 | 180 |
2027 | 73 |
Total | $ 658 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jan. 23, 2023 | Aug. 10, 2022 | Jul. 01, 2020 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Nov. 09, 2021 | |
Debt Instrument [Line Items] | ||||||||
Repayments of term loan | $ 1,250 | $ 2,000 | ||||||
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% | |||||||
Unamortized loan costs | 0 | $ 20 | ||||||
Amortization of loan costs | $ 20 | 26 | ||||||
La Plata Capital, LLC | Loan Agreement | Term Loan Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan amount | $ 250 | |||||||
Debt outstanding effective interest rate | 15% | |||||||
UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Available borrowing capacity amount | $ 4,000 | |||||||
UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | SOFR Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, maturity of variable interest rate | one-month term SOFR rate | |||||||
Debt instrument, variable interest rate | 6.83% | |||||||
UMB Bank, N.A | Loan Agreement | Revolving Credit Facility | Floor Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, variable interest rate | 7.75% | |||||||
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] | ||||||||
Unamortized loan costs | $ 0 | $ 100 | ||||||
Amortization of loan costs | 100 | $ 99 | ||||||
Credit facility, terminate date | Feb. 27, 2023 | |||||||
Expense as a result of the termination of the UMB Loan Agreement | $ 83 |
Leases - Additional Information
Leases - Additional Information (Details) | Sep. 30, 2023 |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease terms | 7 years |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease information: | ||||
Operating lease cost | $ 101 | $ 100 | $ 304 | $ 200 |
Operating cash flows from operating leases | $ 101 | $ 100 | $ 304 | $ 200 |
Weighted average remaining lease term in years | 7 years 2 months 1 day | 8 years 2 months 1 day | 7 years 2 months 1 day | 8 years 2 months 1 day |
Weighted average discount rate | 5.10% | 5.10% | 5.10% | 5.10% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Annual Lease Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 102 |
2024 | 413 |
2025 | 420 |
2026 | 427 |
2027 | 434 |
Thereafter | 1,305 |
Total minimum lease payments | 3,101 |
Less imputed interest | (520) |
Total operating lease liability | $ 2,581 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | 1 Months Ended |
Oct. 31, 2023 USD ($) | |
Subsequent Event | Maran Capital Management, LLC | |
Subsequent Event [Line Items] | |
Legal and other expenses | $ 200 |