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RELATED PARTY TRANSACTIONS
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Transactions with Pepsi
As further described in Note 12. Mezzanine Equity, on August 1, 2022, the Company issued approximately 1.5 million shares of non-voting Series A Preferred Stock to Pepsi. The shares accounted for approximately 8.5% of the Company’s outstanding common stock on the date of issuance, on an if-converted method. The purchase agreement, pursuant to which Pepsi acquired the Series A Preferred Stock (the "Purchase Agreement"), grants Pepsi the right to designate a nominee for election to the Company’s Board of Directors (the "Board"), provided that Pepsi meets certain ownership requirements. In 2022, a Pepsi executive was designated by Pepsi and elected to the Board.
Based on Pepsi’s contractual representation rights for a seat on the Company’s Board, the Company concluded that Pepsi is a related party. The following transactions were recognized in the Company’s financial statements:
•Revenue from Pepsi amounted to $212.6 million and $184.9 million for the three months ended June 30, 2024 and 2023, respectively. Revenue from Pepsi amounted to $423.1 million and $341.4 million for the six months ended June 30, 2024, and 2023, respectively.
•Estimated accrued promotional allowance related to Pepsi was $98.5 million and $51.8 million at June 30, 2024 and December 31, 2023, respectively.
•Accounts receivable due from Pepsi on June 30, 2024 and December 31, 2023, were $171.5 million and $130.4 million, respectively.
•For the three months ended June 30, 2024 and June 30, 2023, the Company purchased Company-branded coolers from Grayhawk Leasing, LLC, a wholly owned subsidiary of Pepsi, amounting to $4.6 million and $2.4 million, respectively. For the six months ended June 30, 2024 and June 30, 2023, these purchases amounted to $8.1 million and $3.9 million, respectively.
•Pepsi provided the Company $227.8 million in cash under the Transition Agreement in 2022. This amount was used to settle termination fees with former distributors; any excess cash was contractually restricted and due back to Pepsi.
During 2023, $38.3 million of such funds were refunded to Pepsi. As of December 31, 2023, there was no refund liability owed to Pepsi.
•The Company had deferred revenues (a contract liability) of approximately $172.0 million as of June 30, 2024, of which $162.5 million was classified as Deferred revenue-non-current, and $9.5 million was classified as Deferred revenue-current. Amortization of deferred revenue was $2.4 million and $2.3 million for the three months ended June 30, 2024 and 2023, respectively. Comparatively, as of December 31, 2023, deferred revenues were approximately $176.7 million, of which $167.2 million was classified as Deferred revenue-non-current, and $9.5 million was classified as Deferred revenue-current. Amortization of deferred revenue was $4.8 million and $4.7 million for the six months ended June 30, 2024 and 2023, respectively. The deferred revenues will continue to be recognized ratably over the 20-year term of the Distribution Agreement.
•On August 1, 2022, the Company issued Series A Preferred Stock with a fair value of $832.5 million for an issuance price of $550.0 million and recorded the $282.5 million excess as Deferred other costs in the accompanying consolidated balance sheets (See Note 12. Mezzanine Equity). As of June 30, 2024, unamortized deferred other costs were $14.1 million (current) and $241.3 million (non-current). As of December 31, 2023 unamortized deferred other costs were $14.1 million (current) and $248.3 million (non-current). Amortization of deferred other costs was $3.6 million and $7.1 million for the three and six months ended June 30, 2024, respectively. Amortization of deferred other costs was $3.6 million and $7.1 million for the three and six months ended June 30, 2023, respectively. These amounts were recorded as an offset to revenue. Costs are amortized over 20 years, the life of the agreement. Unamortized deferred other costs (current and non-current) are included in the consolidated balance sheets.
See Note 1. Organization and Description of Business, Note 2. Basis of Presentation and Summary of Significant Accounting Policies, Note 4. Revenue, and Note 12. Mezzanine Equity for more information on related parties.
Related Party Leases
The Company’s office space is leased from a company affiliated with CD Financial, LLC, which is owned by certain of the Company's principal stockholders. The leases extend until December 2024 and have a combined monthly rent of $55 thousand. The associated lease liability as of June 30, 2024 and December 31, 2023 was $0.3 million and $0.5 million, respectively.