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Legal Proceedings | 9 Months Ended
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Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract] |
Legal Proceedings | 13. Legal Proceedings — The Company records a liability on its condensed consolidated financial statements for loss contingencies when a loss is known or considered probable, and the amount can be reasonably estimated. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. The Company recognizes legal expenses in connection with loss contingencies as incurred. Since the filing of the Company's Form 10-K for the period ended December 31, 2024, there is one legal matter to report in connection with this item. Customer Claims re: Ornamental Insecticide. In the second and third quarters of 2025, the Company received customer complaints alleging injury to ornamental plants from the application of up to four lots of granular insecticide sold by Company subsidiary OHP Inc. for use on potted plants and hanging baskets. The third-party formulator of the tainted product has admitted that the lots in question, or a subset thereof, contained herbicide residues from a contaminated production line at that formulator’s facility. After having issued a stop sale and stop use notice for the subject lots to the distribution channel, the Company recalled potentially tainted production lots, set up a customer claims reporting system and over the course of the past three months has been aggregating and validating customer claims (for value of goods, damage to plants, and lost profits, among other things). Both the Company and the third-party formulator have notified their insurance carriers of the claims. The Company strongly believes that it is entitled to recover from the third-party formulator and/or its insurers the entire amount of damages being claimed by customers on the basis of both contract and tort law. At this stage, based upon the documentation supporting claims that have been processed to date, the Company believes that a loss is probable and can be reasonably estimated to be $6,759. Further, at this time the Company has not yet been able to satisfactorily conclude on the amount likely to be received from either potentially responsive insurance carriers or the formulator with a sufficient level of certainty. Accordingly, the Company has concluded that the loss is probable and estimable and set a reserve in the amount of the full estimated liability based on claims so far received. In addition, the Company has provided customers with credits related to the affected goods and has incurred expenses recovering those goods from the field and in the disposal of the same. Finally, the Company has engaged third parties to assist in managing the claims processing and for legal advice in handling the claims with customers and the counterparty. The actual amount of the Company’s exposure will depend upon many factors, including the extent to which the third-party formulator and/or its insurance carriers reimburses damages claims, the extent to which such claims count toward the deductible in the Company’s insurance coverages, and the amount, if any, that the Company’s insurance carriers may cover beyond the applicable deductible. The costs related to the customer claims in the amount of approximately $6,759 and $270 for managing the claims processing are included in product liability claims on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025.

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- Definition The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 450 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/450/tableOfContent + Details
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