14.

Revenue Recognition

 

The Company’s primary source of revenue is sales of (i) coffee creamers, (ii) coffee, tea, and hot chocolate products, (iii) hydration and beverage enhancing products, and (iv) snacks and other food items. 

 

In accordance with ASC Topic 606, the Company disaggregates net sales from contracts with customers based on the characteristics of the products sold:

 

  

Year Ended December 31,

 
  

2025

  

2024

 
  

$

  

% of Total

  

$

  

% of Total

 

Coffee creamers

 $29,324,248   59% $23,088,363   53%

Coffee, tea, and hot chocolate products

  15,281,939   31%  11,184,525   26%

Hydration and beverage enhancing products

  7,131,460   14%  9,207,964   21%

Snacks and other food items

  5,694,789   11%  6,215,989   14%

Other

  200,483   %  172,788   %

Gross sales

  57,632,919   115%  49,869,629   114%

Shipping income

  489,352   1%  506,732   1%

Discounts and promotional activity

  (8,232,985)  (16)%  (7,081,224)  (15)%

Sales, net

 $49,889,286   100% $43,295,137   100%

 

The Company generates revenue through two channels: e-commerce and wholesale:

 

  

Year Ended December 31,

 
  

2025

  

2024

 
  

$

  

% of Total

  

$

  

% of Total

 

E-commerce

 $24,961,486   50% $25,642,366   59%

Wholesale

  24,927,800   50%  17,652,771   41%

Sales, net

 $49,889,286   100% $43,295,137   100%

 

The Company generated revenue two distinct brands. Laird Superfood and Picky Bars, during the years ended December 31, 2025 and 2024. Net sales for these brands are summarized below:

 

  

Year Ended December 31,

 
  

2025

  

2024

 
  

$

  

% of Total

  

$

  

% of Total

 

Laird Superfood

 $48,096,370   96% $40,307,384   93%

Picky Bars

  1,792,916   4%  2,987,753   7%

Sales, net

 $49,889,286   100% $43,295,137   100%

 

Receivables from contracts with customers are included in accounts receivable. Contract assets include deferred cost of goods sold associated with deferred revenue and are included in finished goods inventories. Contract liabilities include deferred revenue, customer deposits, rewards programs, and refund liabilities, and are included in accrued expenses. Contract liabilities outstanding at the beginning of the year were realized during the year end December 31, 2025. The balances of receivables from contracts with customers, contract assets, and contract liabilities were as follows:

 

  

January 1,

  

December 31,

  

December 31,

 
  

2024

  

2024

  

2025

 

Accounts receivable, net

 $1,022,372  $1,762,911  $3,899,205 

Contract liabilities

 $(427,974) $(348,869) $(309,953)

 

Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Feb 26, 2025
2023Mar 13, 2024
2022Mar 16, 2023
2021Mar 8, 2022
2020Mar 16, 2021

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.