Variable Interest Entities

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

5. Variable Interest Entities

Interest in Joint Venture – CGN

On March 1, 2023, the Company acquired a 50% interest in the CGN JV (see Note 1). The CGN JV is owned 50% by the Company and 50% by CG Labs. CG Labs contributed its existing converting and packaging division to the CGN JV, including, but not limited to, its facilities, equipment, employees, and customers. The Company will contribute $500 thousand to the CGN JV, on a schedule to be determined, to be used for equipment and facility upgrades as well as general corporate purposes for the CGN JV.

The CGN JV is considered to be a VIE and we have consolidated the CGN JV, because we believe we are the primary beneficiary and we meet the power and the economics criteria.

The following table presents the assets and liabilities of the CGN JV, included in the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025. The assets and liabilities presented below include only the third-party assets and liabilities of the consolidated VIE and excludes any intercompany balances, which were eliminated upon consolidation. .

		June 30, 2026				December 31, 2025
ASSETS
Current Assets:
Cash		$	99			$	94
Accounts receivable, net			658				519
Inventory			697				841
Prepaid expenses and other current assets			25				11
Total current assets			1,479				1,465
Intangibles, net			12				32
Property and equipment, net			1,261				1,314
Operating lease - right of use asset			832				873
Total assets		$	3,584			$	3,684

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	621			$	87
Accounts payable – related party			581				477
Accounts payable			581				477
Accrued expenses and other current liabilities			1				1
Current portion of note payable			94				93
Finance lease liability, short term			65				65
Operating lease liability, current portion			85				84
Total current liabilities			1,447				807
Operating lease liability, net of current portion			747				790
Finance lease liability, long term			206				242
Notes payable, net of current portion			180				228
Total liabilities		$	2,580			$	2,067

The amounts above represent the assets and liabilities of the VIE described above, for which we are the primary beneficiary. The assets of the CGN JV consolidated VIE can only be used to settle the obligations of the VIE. All of the liabilities are non-recourse to us as of June 30, 2026 and December 31, 2025.