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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in
accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, the condensed consolidated financial statements do not include all of the information and notes required by U.S.
GAAP for annual audited consolidated financial statements. In the opinion of management, all adjustments considered necessary for
a fair presentation have been included. The preparation of our condensed consolidated financial statements in accordance with U.S.
GAAP requires management to make estimates and assumptions that affect reported amounts, based on historical experience and
other reasonable factors. These estimates and assumptions are reviewed on an ongoing basis and revised as circumstances change.
Accordingly, the results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results
expected for any future period or the full year. These condensed consolidated financial statements have been prepared on a basis
that is substantially consistent with the accounting principles applied in the Company's Annual Report, as filed with the SEC. These
condensed consolidated financial statements and the accompanying notes should be read in conjunction with such Annual Report.
Certain prior period amounts have been reclassified to conform to the current period's presentation in the condensed consolidated
financial statements and accompanying notes. These reclassifications were made for consistency with current period presentation
and had no effect on operating results.
Principles of Consolidation Principles of Consolidation — These condensed consolidated financial statements include the accounts of the Company and its
wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in accordance with U.S. GAAP.
Business Combinations Business Combinations — The Company accounts for business combinations in accordance with ASC 805. Under this guidance, the
results of operations of an acquired business are included in the Company’s condensed consolidated financial statements and related
notes prospectively from the acquisition date.
The Company allocates the purchase consideration to the identifiable tangible and intangible assets acquired and liabilities assumed
based on their fair values as of the acquisition date. Any excess of the purchase consideration over the fair value of net assets
acquired is recognized as goodwill. During the measurement period, which does not exceed twelve months from the acquisition
date, adjustments to the preliminary fair value estimates may be recorded as additional information becomes available.
Measurement period adjustments, if applicable, are recognized in the reporting period in which the adjustments are determined and
are reflected as a prospective adjustment to goodwill. See Note 5. Acquisitions.
Contingent Consideration — In connection with the Alani Nu Acquisition, the Company recorded a liability at fair value for the
contingent consideration potentially payable to the Sellers subject to achievement of certain 2025 revenue targets, with a maximum
payment of $25 million. The acquisition date fair value of the liability was estimated using discounted future cash flows based on a
probability-weighted expected return methodology using Level 3 inputs such as forecasts of revenue. The Company evaluates the
fair value of the contingent consideration quarterly and adjusts the carrying value as new information becomes available.
Goodwill and Intangible Assets Goodwill and Intangible Assets — Goodwill and indefinite-lived intangible assets recognized as part of acquisitions are
subsequently tested for impairment in accordance with the Company’s accounting policy for goodwill and indefinite-lived
intangible assets. Indefinite-lived intangible assets are not amortized and are tested for impairment at least annually, or more
frequently if indicators arise. Intangible assets with defined useful lives are generally measured at cost, net of accumulated
amortization and impairment, and are amortized on a straight-line basis over their estimated useful lives. Useful lives are
determined based on expected cash flows and other relevant facts and circumstances specific to each asset.
Debt Debt — The Company accounts for all debt instruments in accordance with the guidance provided under ASC 470. Debt is initially
recognized at the amount of proceeds received, net of any original issue discounts or premiums and debt issuance costs, and is
subsequently carried at amortized cost. Debt is classified as current or non-current based on the contractual maturity dates. Issuance
costs for the revolving credit arrangement are recorded in other assets on the Company’s condensed consolidated balance sheets.
Original issue discounts and debt issuance costs are recognized as interest expense over the term of the debt using the effective
interest method.
Segment Reporting Segment Reporting — Operating segments are defined as components of an enterprise that engage in business activities, maintain
discrete financial information, and undergo regular review by the CODM, who is the Chief Executive Officer, to assess
performance and allocate resources. Although the Company operates in multiple geographical regions and offers a range of
products under distinct brands, it functions as a single operating segment. The CODM evaluates operating results and allocates
resources on a consolidated basis due to the significant economic interdependencies between the Company's brands, geographical
operations and product offerings. As a result, the Company and its brands are managed as a single operating segment, which also
represents the Company’s single reportable segment. Although the Company has a single reportable segment, it is still required to
comply with all disclosure requirements set forth in the existing guidance under Segment Reporting (Topic 280).
Significant Estimates Significant Estimates — The preparation of condensed consolidated financial statements and accompanying disclosures in
conformity with U.S. GAAP requires management to make recurring estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues, and expenses, as well as disclosure of contingent assets and liabilities at the date of the financial
statements. Although these estimates are based on management's best knowledge of current events and actions that the Company
may undertake in the future, actual results may differ from those estimates. These estimates and judgments are reviewed on an
ongoing basis and are revised when necessary. Significant estimates include promotional allowances, intangibles, assets and
liabilities assumed as a part of business combinations, allowance for inventory obsolescence and sales returns, the useful lives of
property, plant and equipment, impairment of goodwill and intangibles, deferred taxes and related valuation allowance, valuation of
contingent consideration, stock-based compensation and preferred stock.
Fair Value Measurements Fair Value Measurements — ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of
valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are
prioritized below:
Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices in active markets included in Level 1 that are observable, directly or indirectly.
Level 3: Unobservable inputs, which rely on the reporting entity’s assumptions when there is little or no market data.
The Company performs valuations of assets acquired and liabilities assumed in acquisitions accounted for as a business
combination and recognizes the assets acquired and liabilities assumed at their acquisition-date fair value. The fair value hierarchy
established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value.
Concentrations of Risk Concentrations of Risk — The majority of the Company’s revenue is derived from the sale of functional energy drinks. Functional
energy drink product revenue accounted for approximately 95.0% and 94.1% of revenue for the three and nine months ended
September 30, 2025, respectively, and 94.5% and 95.4% of revenue for the three and nine months ended September 30, 2024,
respectively.
Cash Equivalents Cash Equivalents — The Company considers all highly liquid instruments with original maturities of three months or less, when purchased, to be cash equivalents.
Restricted Cash Restricted Cash — In connection with the A&R U.S. Distribution Agreement, the Company received upfront payments from Pepsi
that are contractually restricted. These funds are designated solely to satisfy termination payments to certain former Alani Nu
distributors, are not available for general operating activities, and are classified as restricted cash on the Company’s condensed
consolidated balance sheets. Any amounts not utilized for such termination payments are required to be returned to Pepsi.
Accounts Receivable and Current Expected Credit Losses Accounts Receivable and Current Expected Credit Losses — The Company is exposed to potential credit risks associated with its
product revenue and related accounts receivable, as it generally does not require collateral from its customers. The Company’s
expected loss allowance for accounts receivable is determined using historical collection experience, current and expected future
economic and market conditions, an assessment of the current status of customers’ trade accounts receivable, and where available,
an evaluation of the financial condition and credit ratings of larger customers, including credit reports. Customers are pooled based
on common risk factors, and the Company reassesses these customer pools on a periodic basis. The allowance for credit losses is
based on aging of the accounts receivable balances and estimated credit loss percentages.
Deferred Costs Deferred Costs — The Company deferred the excess of the fair value of the shares of Preferred Stock issued to Pepsi over the
consideration received. These deferred costs are amortized on a straight-line basis, as a reduction of revenue, over the term of the
A&R U.S. Distribution Agreement, aligning expense recognition with the associated benefits. Deferred costs are classified and
presented as separate current and non-current line items on the Company’s condensed consolidated balance sheets.
Deferred Revenue Deferred Revenue — The Company receives payments from certain distributors as reimbursement for contract termination costs
paid to the prior distributors. Amounts received or contractually due under new or amended distribution agreements related to these
termination cost reimbursements are accounted for as deferred revenue and are recognized ratably over the anticipated life of the
respective new or amended distribution agreements. Deferred revenue is classified and presented as separate current and non-
current line items on the Company’s condensed consolidated balance sheets.
Accrued Distributor Termination Fees Accrued Distributor Termination Fees — In connection with the A&R U.S. Distribution Agreement, the Company accrued
distributor termination fees related to the transition of certain Alani Nu distribution to Pepsi. These accruals represent amounts
expected to be paid to former distributors and, where applicable, amounts to be returned to Pepsi if actual termination costs are less
than the upfront payments received from Pepsi. The Company recognizes these accruals when a loss is probable and reasonably
estimable, based on current available information, and updates estimates as facts change. Termination charges are presented as
distributor termination fees in the Company's condensed consolidated statements of operations and comprehensive income.
Termination accruals are presented as accrued distributor termination fees on the Company’s consolidated balance sheets.
Advertising Costs Advertising Costs — Advertising costs are expensed as incurred and charged to selling, general and administrative expenses. The
Company primarily utilizes targeted marketing initiatives across various channels, including print (e.g., print displays), radio, digital
and streaming platforms, online and social media, television, direct sponsorships, endorsements and in-store displays.
Income Taxes Income Taxes — Starting in 2025, the Company has come within the scope of the Organization for Economic Co-operation and
Development's Pillar Two framework, which establishes a global minimum corporate tax of 15% for companies with global
revenues and profits above certain thresholds. Certain jurisdictions in which the Company operates have enacted their respective tax
laws to comply with Pillar Two. As of now, the Company does not expect Pillar Two to have a material impact on its consolidated
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Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements
In June 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). The
ASU updates the guidance on the capitalization, amortization and impairment of internal-use software. The standard is effective for
fiscal years beginning after June 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of ASU
2025-06 on its consolidated financial statements.
In March 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses
for Accounts Receivable and Contract Assets. The ASU introduces a practical expedient that allows entities to estimate expected
credit losses on current trade receivables and contract assets without incorporating macroeconomic factors, assuming current
conditions persist over the asset’s remaining life. The Company currently incorporates macroeconomic factors, along with other
inputs, into its allowance methodology, including forward-looking economic and market conditions. As such, the practical
expedient under ASU 2025-05 would only apply if the Company elects to modify its current model. ASU 2025-05 is effective for
all entities for annual reporting periods (including interim reporting periods within those annual periods) beginning after December
15, 2025, with early adoption permitted. The Company will continue to monitor developments and assess the potential impact of the
ASU on future reporting periods.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,
introducing changes to income tax disclosures, primarily relating to effective tax rates and cash paid for taxes. This ASU requires
companies to provide an annual rate reconciliation in both dollar figures and percentages, and changes the way annual income taxes
paid are disclosed by all entities, necessitating a breakdown by federal, state, and foreign jurisdictions. The standard became
effective for the Company beginning with fiscal year 2025. The Company is applying the new guidance on a prospective basis and
expects ASU 2023-09 to impact only disclosures with no effect on the Company's financial condition, results of operations or cash
flows.
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense
Disaggregation Disclosures (Subtopic 220-40). The effective date was further clarified by 2025-01 in January 2025. These
standards enhance expense disclosures by requiring more detailed information on the types of expenses included in certain captions
within the condensed consolidated financial statements, including employee compensation, depreciation, amortization, and costs
incurred related to inventory and manufacturing activities in income statement expense captions such as cost of sales and selling,
general and administrative expenses. The guidance is effective for fiscal years beginning after December 15, 2026 and interim
periods beginning after December 15, 2027, with early adoption permitted. The Company will apply the new guidance on a
prospective basis and expects ASU 2024-03 to impact only disclosures with no effect on the Company's financial condition, results
of operations or cash flows.