Company: NGVC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001437749-25-003026
Chunk: 11

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 (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 the Company’s 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.

8

The balance of contract liabilities related to unredeemed gift cards was $1.9 million and $1.5 million as of December 31, 2024 and September 30, 2024, respectively. Revenue for the three months ended December 31, 2024 and 2023 includes $0.5 million and $0.4 million, respectively, that was included in the contract liability balance of unredeemed gift cards at September 30, 2024 and 2023, respectively.

Rewards program points are accrued as deferred revenue at the retail value per point, net of estimated breakage based on historical redemption rates experienced within the rewards program. Rewards points are forfeited at the end of each calendar year.

The following table disaggregates the Company’s revenue by product category for the three months ended December 31, 2024 and 2023, dollars in thousands and as a percentage of net sales:

			Three months ended

			December 31,

			2024

			2023

			Grocery

			$
			236,624

			72
			
			%

			212,135

			70
			%

			Dietary supplements

			61,531

			18

			59,974

			20

			Body care, pet care and other

			32,066

			10

			29,641

			10

			$
			330,221

			100
			
			%

			301,750

			100
			%

4. Earnings Per Share

Basic earnings per share (EPS) is