Quarterly report [Sections 13 or 15(d)]

Supplemental Balance Sheet Information

v3.26.1
Supplemental Balance Sheet Information
 6 Months Ended
Jun. 30, 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 $342 and $756 as of June 30, 2026 and December 31, 2025, respectively, and included in "Accounts receivable, net" on the consolidated balance sheets.
The allowance for credit losses was $132 and $350 as of June 30, 2026 and December 31, 2025, respectively.
Concentrations of Credit Risk
Our 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. We monitor the financial condition of the financial institutions in which our accounts are maintained and have not experienced any losses in such accounts. Our accounts receivable are spread over a number of customers, of which one customer and its affiliate accounted for 33% and 37% of total outstanding receivables as of June 30, 2026 and December 31, 2025, respectively. We perform ongoing credit evaluations as to the financial condition of our customers and creditors with respect to trade accounts.
Inventories, Net
Inventories, net, consists of the following (dollars in thousands):
June 30, December 31,
2026 2025
(unaudited) (audited)
Coffee and Energy:
Unroasted $ 2,255  $ 3,519 
Finished Goods 25,123  20,144 
RTD, raw materials 351  3,935 
RTD, finished goods 15,322  17,943 
Apparel and other merchandise 2,589  4,162 
Total inventories, net $ 45,640  $ 49,703 
The reserve for excess and obsolete inventory was $1,132 and $2,899 as of June 30, 2026 and December 31, 2025, respectively.
Other Assets
As of June 30, 2026 and December 31, 2025, we reported $47,531 and $50,312 of other assets on the consolidated balance sheets, respectively, related to prepaid advertising credits received in exchange for inventory. We 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 we expect to use these advertising credits, $5,880 of these credits were current as of both June 30, 2026 and December 31, 2025, and have been recorded as "Prepaid expenses and other current assets" on the consolidated balance sheets, and $41,651 and $44,432 were non-current as of June 30, 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 inventory. The revenue recognized related to shipments of inventory in exchange for prepaid advertising credits was insignificant for both the three and six months ended June 30, 2026 and $406 for both the three and six months ended June 30, 2025 on the consolidated statements of operations.
The following table summarizes the utilization of prepaid advertising credits (dollars in thousands, unaudited):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Prepaid advertising credits utilized $ 1,271  $ 1,375  $ 2,741  $ 2,291 
Property, Plant, and Equipment, Net
Property, plant, and equipment, net consists of the following (dollars in thousands):
June 30, December 31,
2026 2025
(unaudited) (audited)
Building and leasehold improvements $ 24,263  $ 24,216 
Machinery and equipment 19,845  19,694 
Computer equipment and software 15,327  19,927 
Furniture and fixtures 2,887  2,887 
Land 110  110 
Vehicles 809  809 
Construction in progress 7,491  8,584 
Property, plant, and equipment, gross 70,732  76,227 
Less: accumulated depreciation and amortization (30,953) (33,372)
Total property, plant, and equipment, net $ 39,779  $ 42,855 
The following table summarizes the depreciation expense for internal use software recognized in general and administrative expense within the consolidated statements of operations (dollars in thousands, unaudited):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Depreciation expense for internal use software $ 856  $ 2,725  $ 1,842  $ 4,059 
Accrued Liabilities
Accrued liabilities consists of the following (dollars in thousands):
June 30, December 31,
2026 2025
(unaudited) (audited)
Accrued compensation and benefits $ 6,038  $ 5,919 
Accrued trade 3,791  2,587 
Accrued inventory purchases 1,995  843 
Accrued freight 1,743  4,333 
Accrued software contracts 2,081  4,024 
Accrued professional fees 2,286  2,761 
Deferred purchase incentive 2,506  2,506 
Accrued marketing 3,179  2,330 
Accrued donations 1,327  1,709 
Accrued sales and other taxes 941  1,137 
Other accrued expenses 3,804  4,306 
Total accrued liabilities $ 29,691  $ 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 as of June 30, 2026 based upon the amount expected to be recognized in the next twelve months, while $5,944 is classified as long-term and is recorded in “Other non-current liabilities” on our consolidated balance sheets as of June 30, 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 June 30, Six Months Ended June 30,
2026 2025 2026 2025
Balance as of beginning of period $ 3,285  $ 3,814  $ 4,033  $ 3,918 
Sales of gift cards 130  108  258  433 
Redemption of gift cards (84) (157) (237) (552)
Increase from deferral of revenue 1,404  1,738  1,404  1,738 
Decrease from revenue recognition (1,870) (1,760) (2,521) (1,784)
Loyalty Program points earned 158  342  437  660 
Loyalty Program points redeemed/expired (121) (315) (472) (643)
Balance as of end of period $ 2,902  $ 3,770  $ 2,902  $ 3,770