Quarterly report [Sections 13 or 15(d)]

Supplemental Balance Sheet Information

v3.26.1
Supplemental Balance Sheet Information
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Balance Sheet Disclosures Supplemental Balance Sheet Information
Accounts Receivable, Net

Allowances

The allowance for sales returns and charge backs was $575 and $756 as of March 31, 2026 and December 31, 2025, respectively, and included in "Accounts receivable, net" on the consolidated balance sheets.
The allowance for credit losses was $67 and $350 as of March 31, 2026 and December 31, 2025, respectively.

Concentrations of Credit Risk

The Company’s assets that are potentially subject to concentrations of credit risk are cash and accounts receivable. Cash balances are maintained in financial institutions which at times exceed federally insured limits. The Company monitors the financial condition of the financial institutions in which its accounts are maintained and has not experienced any losses in such accounts. The accounts receivable of the Company are spread over a number of customers, of which six customers accounted for 63% of total outstanding receivables as of March 31, 2026, and four customers accounted for 52% of total outstanding receivables as of December 31, 2025. The Company performs ongoing credit evaluations as to the financial condition of its customers and creditors with respect to trade accounts.
Inventories, Net

Inventories, net, consists of the following (dollars in thousands):

March 31, December 31,
2026 2025
(unaudited) (audited)
Coffee and Energy:
Unroasted $ 3,261  $ 3,519 
Finished Goods 23,501  20,144 
Ready-to-Drink (raw materials) 1,572  3,935 
Ready-to-Drink (finished goods) 19,255  17,943 
Apparel and other merchandise 3,218  4,162 
Total inventories, net $ 50,807  $ 49,703 

The reserve for excess and obsolete inventory was $5,524 and $2,899 as of March 31, 2026 and December 31, 2025, respectively.
Other Assets

As of March 31, 2026 and December 31, 2025, the Company reported $48,802 and $50,312 of other assets on the consolidated balance sheets, respectively, related to prepaid advertising credits received in exchange for finished goods and apparel inventory. The Company measured the non-cash consideration of the prepaid advertising credits based on the standalone selling price of the finished goods inventory at the time of transfer to the counterparty. Based upon the period over which the Company expects to use these advertising credits, $5,880 of these credits were current as of both March 31, 2026 and December 31, 2025, and have been recorded as "Prepaid expenses and other current assets" on the consolidated balance sheets, and $42,922 and $44,432 were non-current as of March 31, 2026 and December 31, 2025, respectively, and have been recorded as "Non-current prepaid marketing expenses" on the consolidated balance sheets.

Prepaid advertising credits are recorded upon revenue recognition, coinciding with the transfer of the finished goods inventory. The revenue recognized for both the three months ended March 31, 2026 and 2025 on the consolidated statements of operations related to shipments of inventory was insignificant. $1,470 and $916 of prepaid advertising credits were utilized for the three months ended March 31, 2026 and 2025, respectively.
Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following (dollars in thousands):

March 31, December 31,
2026 2025
(unaudited) (audited)
Building and leasehold improvements $ 24,216  $ 24,216 
Machinery and equipment 19,821  19,694 
Computer equipment and software 20,008  19,927 
Furniture and fixtures 2,887  2,887 
Land 110  110 
Vehicles 809  809 
Construction in progress 8,965  8,584 
Property, plant, and equipment, gross 76,816  76,227 
Less: accumulated depreciation and amortization (35,518) (33,372)
Total property, plant and equipment, net $ 41,298  $ 42,855 

The total depreciation expense for internal use software was $986 and $1,334 for the three months ended March 31, 2026 and 2025, respectively.
Accrued Liabilities

Accrued liabilities consists of the following (dollars in thousands):

March 31, December 31,
2026 2025
(unaudited) (audited)
Accrued compensation and benefits $ 7,959  $ 5,919 
Accrued trade
 4,005  2,587 
Accrued inventory purchases 3,286  843 
Accrued freight 2,161  4,333 
Accrued software contracts 2,081  4,024 
Accrued professional fees 2,809  2,761 
Deferred purchase incentive 2,506  2,506 
Accrued marketing 1,898  2,330 
Accrued donations 1,659  1,709 
Accrued sales and other taxes 1,119  1,137 
Other accrued expenses 4,084  4,306 
Total accrued liabilities $ 33,567  $ 32,455 
Deferred purchase incentive
This purchase incentive was received in conjunction with a co-manufacturing agreement and will be recognized as a reduction of cost of sales based on units sold through 2029. $2,506 of the deferred purchase incentive is classified as current at March 31, 2026 based upon the amount expected to be recognized in the next twelve months, while $7,073 is classified as long-term and is recorded in “Other non-current liabilities” on our consolidated balance sheets at March 31, 2026.
Deferred Revenue and Gift Card Liability

The following table provides information about deferred revenue, gift cards, and the BRCC Loyalty Points rewards program (the "Loyalty Program"), including significant changes in deferred revenue balances for the below designated periods (dollars in thousands, unaudited):

Three Months Ended March 31,
2026 2025
Balance at beginning of period $ 4,033  $ 3,918 
Sales of gift cards 128  325 
Redemption of gift cards (153) (395)
Increase from deferral of revenue 1,870  1,760 
Decrease from revenue recognition (2,521) (1,784)
Loyalty Program points earned 279  317 
Loyalty Program points redeemed/expired (351) (327)
Balance at end of period $ 3,285  $ 3,814