RELATED PARTY TRANSACTIONS |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Related Party Transactions [Abstract] | |||
| RELATED PARTY TRANSACTIONS |
On May 15, 2026, the Company acquired the private-label fresh ranch dressing business and inventory of Texas Harvest, LLC’s (“Texas Harvest”), a related party, for cash consideration of $100,000. The Company assumed no liabilities and accounted for the transaction as an asset acquisition, allocating the entire purchase price to inventory.
The related party nature is a result of two members of the Company’s Board of Directors being principals of Texas Harvest . Those board members recused themselves from the Board’s consideration of the transactions, which were reviewed and approved by a Committee of Disinterested Directors due to the related-party nature of the transactions.
Concurrently with the acquisition, the Company entered into a Co-Pack Manufacturing Agreement with Texas Harvest, LLC, (the “Manufacturer”), under which the Manufacturer produces the Company’s products on a non-exclusive, interim basis for a fee equal to the Manufacturer’s direct manufacturing cost plus a markup, with materials billed at actual cost. Manufacturing fees are recognized in cost of goods sold. Amounts due from the Manufacturer for customer proceeds collected on the Company’s behalf and not yet remitted are presented as “Due from related party.”
Related party balances as of June 30, 2026 were $499 of accounts receivable and $455 of accounts payable (amounts in thousands). |