Note J - Revenue From Contracts With Customers

9 Months Ended

Sep. 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:

	Third Quarter Ended				Three Quarters Ended
All Amounts in Thousands	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Gross Sales by Channel:
Mass Merchants	$	35,931	$	29,849	$	72,101	$	85,804
Specialty Dealers		19,669		20,298		65,134		74,631
E-commerce		21,785		26,090		69,512		87,441
International		2,961		4,032		9,189		12,643
Other		892		1,188		3,206		3,454
Total Gross Sales		81,238		81,457		219,142		263,973
Less: Gross-to-Net Sales Adjustments
Returns		2,493		892		6,039		3,740
Warranties		358		663		988		1,985
Customer Allowances		5,029		4,998		14,055		16,627
Total Gross-to-Net Sales Adjustments		7,880		6,553		21,082		22,352
Total Net Sales	$	73,358	$	74,904	$	198,060	$	241,621