CONTRACT LIABILITIES

12 Months Ended

Dec. 31, 2023

Contract Liabilities

CONTRACT LIABILITIES

Note 11. CONTRACT LIABILITIES

The Company’s contract liabilities consist of customer deposits, gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products when customers redeem balances or terms expire through breakage.

A summary of the contract liabilities activity for the years ended December 31, 2023 and 2022 is presented below:

	Year ended December 31,
	2023			2022
Beginning balance as of January1,	$	198,606		$	23,178
Issued		891,060			859,383
Redeemed		(812,694	)		(628,012	)
Breakage recognized		(69,459	)		(55,943	)
Ending balance as of December 31,	$	207,513		$	198,606