Note 3 - Revenue Recognition

6 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3.

Revenue Recognition

The nature of the goods the Company transfers to customers at the point of sale consists of merchandise purchased for resale. In these transactions, the Company acts as a principal and recognizes revenue (net sales) from the sale of goods when control of the promised goods is transferred to the customer. Control refers to the ability of the customer to direct the use of, and obtain substantially all the remaining benefits from, the transferred goods.

The Company’s performance obligations are satisfied upon the transfer of goods to the customer (at the point of sale), and payment from the customer is also due at that time. Transaction prices are considered fixed. Discounts provided to customers at the point of sale are recognized as a reduction in revenue as the goods are sold. Revenue excludes sales and usage-based taxes collected.

Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as revenue when the gift cards are redeemed by the customer and the performance obligation is satisfied by the Company. The Company also recognizes revenue for a portion of gift card values that is

not

expected to be redeemed (breakage). The estimated breakage takes into consideration several factors, including the laws and regulations applicable to each jurisdiction. The Company determines the amount of breakage income to be recognized on gift cards using historical experience to estimate amounts that will ultimately

not

be redeemed. The Company recognizes such breakage income in proportion to redemption rates of the overall population of gift cards.

The balance of contract liabilities related to unredeemed gift cards was

$1.2

million and

$1.0

million as of

March 31, 2020

and

September 30, 2019,

respectively. Revenue for the

three

months ended

March 31, 2020

and

2019

includes

$0

million and

$0.2

million, respectively, that was included in the contract liability balance of unredeemed gift cards at

September 30, 2019

and

2018,

respectively. Revenue for the

six

months ended

March 31, 2020

and

2019

includes approximately

$0.8

million and

$0.5

million, respectively, that was included in the contract liability balance of unredeemed gift cards at

September 30, 2019

and

2018,

respectively.

The following table disaggregates our revenue by product category for the

three

months and

six

months ended

March 31, 2020

and

2019,

dollars in thousands:

	Three months ended March 31,				Six months ended March 31,
	2020		2019		2020		2019
Grocery	$	186,171		157,802		344,106		309,103
Dietary supplements		63,969		49,700		111,870		95,484
Other		27,384		22,945		51,578		47,375
	$	277,524		230,447		507,554		451,962