Transactions with California Custom Beverage, LLC, former related party |
3 Months Ended |
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Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| Transactions with California Custom Beverage, LLC, former related party | 10. Transactions with California Custom Beverage, LLC, former related party
In December 2018, the Company signed a co-packing agreement with California Custom Beverage, LLC’s (“CCB”), an entity owned by a former related party, pursuant to which CCB agreed to produce certain products for the Company for agreed fees. The co-packing agreement, as amended, includes certain provisions for product inputs, shrinkage, and quality assurance. Also beginning in 2019, CCB agreed to pay the Company a 5% royalty through 2021 on certain private label sales made by CCB.
In January 2024, CCB filed an arbitration demand alleging claims against the Company for various disputed amounts outstanding. Also in January 2024, the Company filed an arbitration demand alleging claims against CCB for various disputed amounts outstanding. The two cases were consolidated.
In February 2026, the arbitrator issued an interim award in favor of the Company. The interim award is expected to become a final award after a final determination of the costs and prejudgment interest is made by the arbitrator.
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