Quarterly report pursuant to Section 13 or 15(d)

Supplemental Financial Statement Information

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Supplemental Financial Statement Information
 3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [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) March 31, 2022 December 31, 2021
VAT payable (including amounts related to VAT matter described in Note 2) $ 3,188  $ 4,393 
Contingent consideration 2,812  5,641 
Accrued employee compensation 6,392  6,055 
Accrued professional fees 2,475  1,700 
Refund liability (including accounts receivable credit balances) 1,294  1,481 
Accrued construction in progress (ERP) 1,086  1,061 
Sales tax payable 872  1,034 
Other 7,152  3,932 
$ 25,271  $ 25,297 
Customer Deposits
For certain product offerings such as child-resistant packaging, closed-system vaporization solutions and custom-branded retail products, we may receive a deposit from the customer (generally 25% - 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 six months from the date of order, depending on the complexity of the customization and the size of the order, but the order completion timeline can vary by product type and terms of sale with each customer. Changes in our customer deposits liability balance during the three months ended March 31, 2022 were as follows:
(in thousands) Customer Deposits
Balance as of December 31, 2021 $ 7,924 
Increases due to deposits received, net of other adjustments 5,213 
Revenue recognized (6,299)
Balance as of March 31, 2022 $ 6,838 

We typically complete orders related to customer deposits within six weeks to three months from the date of order, depending on the complexity of the customization and the size of the order.

Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) for the periods presented were as follows:
(in thousands) Foreign Currency Translation Unrealized Gain or (Loss) on Derivative Instrument Total
Balance at December 31, 2021 $ 282  $ 42  $ 324 
Other comprehensive income (loss) 88  358  446 
Less: Other comprehensive (income) loss attributable to non-controlling interest (17) (68) (85)
Balance at March 31, 2022 $ 353  $ 332  $ 685 
(in thousands) Foreign Currency Translation Unrealized Gain or (Loss) on Derivative Instrument Total
Balance at December 31, 2020 $ 183  $ (154) $ 29 
Other comprehensive income (loss) (155) 204  49 
Less: Other comprehensive (income) loss attributable to non-controlling interest 99  (130) (31)
Balance at March 31, 2021 $ 127  $ (80) $ 47 
Supplier Concentration
Our four largest vendors accounted for an aggregate of approximately 44.6% and 42.9% of our total net sales and 67.0% and 35.5% of our total purchases for the three months ended March 31, 2022 and 2021, respectively. We expect to maintain our relationships with these vendors.
Related Party Transactions
Nicholas Kovacevich, our Chief Executive Officer and Dallas Imbimbo, who served on our Board prior to his resignation on April 8, 2022, own capital stock of Unrivaled Brands Inc. (“Unrivaled”) and serve on the Unrivaled board of directors. Net sales to Unrivaled for the three months ended March 31, 2022 and 2021 totaled $0.2 million and $0, respectively. Total accounts receivable due from Unrivaled were $0.6 million and $0.4 million as of March 31, 2022 and December 31, 2021, respectively.
Adam Schoenfeld, co-founder and a current director of the Company, has a significant ownership interest in one of our customers, Universal Growing. Net sales to Universal Growing for the three months ended March 31, 2022 and 2021 totaled approximately $0.1 million, respectively. Total accounts receivable due from Universal Growing as of March 31, 2022 and December 31, 2021 were de minimis.
In December 2021, we entered into a Secured Promissory Note with Aaron LoCascio, our co-founder, former Chief Executive Officer and President, and a current director of the Company, with respect to the $8.0 million Bridge Loan described under Note 6 above.