Note J - Revenue From Contracts With Customers

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note J – Revenue from Contracts with Customers

Revenue Recognition – Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.

Gross-to-net sales adjustments – We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories: returns, warranties and customer allowances.

Returns – The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer.

Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year.

Customer Allowances – Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available.

Disaggregation of Revenue – We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include: mass merchants, specialty dealers, key on-line retailers (“E-commerce”) and international. The following table depicts the disaggregation of revenue according to sales channel:

	Second Quarter Ended				Two Quarters Ended
All Amounts in Thousands	June 30, 2023		July 9, 2022		June 30, 2023		July 9, 2022
Gross Sales by Channel:
Mass Merchants	$	19,480	$	28,925	$	36,170	$	55,955
Specialty Dealers		23,850		28,990		45,465		54,333
E-commerce		27,135		38,495		47,727		61,351
International		3,187		4,531		6,228		8,611
Other		1,279		1,492		2,314		2,266
Total Gross Sales		74,931		102,433		137,904		182,516
Less: Gross-to-Net Sales Adjustments
Returns		2,034		678		3,546		2,848
Warranties		190		697		630		1,322
Customer Allowances		4,936		6,721		9,026		11,629
Total Gross-to-Net Sales Adjustments		7,160		8,096		13,202		15,799
Total Net Sales	$	67,771	$	94,337	$	124,702	$	166,717