Quarterly report pursuant to Section 13 or 15(d)

Supplemental Financial Statement Information

v3.20.2
Supplemental Financial Statement Information
 9 Months Ended
Sep. 30, 2020
Payables and Accruals [Abstract]  
Supplemental Financial Statement Information SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION
Accrued Expenses and Other Current Liabilities
The following table summarizes the composition of accrued expenses and other current liabilities as of the dates indicated:
(in thousands) September 30, 2020 December 31, 2019
Accrued expenses and other current liabilities:
Payroll related including bonus $ 2,244  $ 1,314 
Contingent consideration —  1,568 
VAT payable 7,591 — 
Accrued marketing fees and royalties 677  304 
Refund liability 721  622 
Liabilities held for sale 392  — 
Accrued purchase price consideration for business acquisition —  3,029 
Current portion of long-term debt 180  178 
Other 4,151  3,585 
$ 15,956  $ 10,600 
Customer Deposits
For certain product offerings such as premium, patented, child-resistant packaging, closed-system vaporization solutions and custom-branded retail products. For these product offerings, we generally receive a deposit from the customer (generally 50% of the total order cost, but the amount can vary by customer contract), when an order is placed by a customer. We typically complete orders related to customer deposits within one to three months from the date of order, depending on the complexity of the customization and the size of the order. Changes in our customer deposits liability balance during the nine months ended September 30, 2020 were as follows:
(in thousands) Customer Deposits
Balance as of December 31, 2019 $ 3,152 
Increases due to deposits received, net of other adjustments 7,353 
Revenue recognized (7,912)
Balance as of September 30, 2020 $ 2,593 

Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss for the periods presented were as follows:
(in thousands) Foreign Currency Translation Unrealized Loss on Derivative Instrument Total
Balance at December 31, 2019 $ (22) $ (50) $ (72)
Other comprehensive income (loss) 130  (525) (395)
Less: Other comprehensive (income) loss attributable to non-controlling interest (87) 400  313 
Balance at September 30, 2020 $ 21  $ (175) $ (154)

(in thousands) Foreign Currency Translation Unrealized Loss on
Derivative Instrument		 Total
Balance at December 31, 2018 $ (286) $ —  $ (286)
Other comprehensive income (loss) 38  (310) (272)
Effects of the reorganization transactions 203  —  203 
Less: Other comprehensive (income) loss attributable to non-controlling interest (14) 236  (24)
Balance at September 30, 2019 $ (59) $ (74) $ (133)

Supplier Concentration
We have three major vendors whose products accounted for an aggregate of approximately 40.7% and 36.0% our total net sales and 40.5% and 33.9% of our total purchases for the three and nine months ended September 30, 2020, respectively, and an aggregate of approximately 62.3% and 61.2% of our total net sales and 53.4% and 50.4% of our total purchases for the three and nine months ended September 30, 2019, respectively. We expect to maintain our existing relationships with these vendors.
Assets Held for Sale
During the three months ended September 30, 2020, we performed a review of our property and equipment held at our distribution centers, corporate headquarters, and retail locations for disposal or sale in connection with our transformation plan. As a result of this review, we made the decision to commit to a formal plan to sell machinery that was to be used by our United States operating segment, which was determined to no longer be needed as part of our supply and packaging customization processes. Accordingly, we determined that this machinery met the criteria to be reclassified as held for sale as of September 30, 2020.
An asset group classified as held for sale is reflected at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the assets exceeds its estimated fair value, a loss is recognized. Due to the reclassification as held for sale of this supply and packaging machinery, we recognized an impairment charge of approximately $0.2 million for the three months ended September 30, 2020, which was included within "general and administrative expenses" in our condensed consolidated statements of operations and comprehensive loss. We recorded approximately $0.8 million of machinery held for sale within "Assets Held for Sale" as of September 30, 2020. We are actively seeking a buyer and expect to complete the sale of the machinery by the third quarter of 2021.