Revenue Recognition and Contracts with Customers

12 Months Ended

Dec. 31, 2025

Revenue Recognition and Contracts with Customers [Abstract]

Revenue Recognition and Contracts with Customers

3. Revenue Recognition and Contracts with Customers

The impact of ASC 606 on revenue recognized during the years ended December 31, 2025, December 31, 2024, and December 31, 2023 is as follows:

	2025			2024			2023
Contract liabilities with customers at January 1,	$	—		$	149		$	1,031
Revenue recognized		(1,669	)		(149	)		(4,084	)
Revenue deferred		1,669			—			3,202
Contract liabilities with customers at December 31,	$	—		$	—		$	149

During the year ended December 31, 2025, the Company deferred $1.7 million of revenue, completely offset by the recognition of $1.7 million of revenue previously deferred as the performance obligations relating to the shipment of free products were all satisfied during the year. This resulted in there being no change in firearms sales for the year ended December 31, 2025 and there being no deferred contract revenue liability at December 31, 2025.

During the year ended December 31, 2024, the Company did not defer any revenue and recognized $0.1 million of revenue previously deferred as the performance obligations relating to the shipment of free products were satisfied. This resulted in a net increase in firearms sales for the year ended December 31, 2024 of $0.1 million and there being no deferred contract revenue liability at December 31, 2024.

During the year ended December 31, 2023, the Company deferred $3.2 million of revenue, offset by the recognition of $4.1 million of revenue previously deferred as the performance obligations relating to the shipment of free products were satisfied. This resulted in a net increase in firearms sales for the year ended December 31, 2023 of $0.9 million and a deferred contract revenue liability at December 31, 2023 of $0.1 million.

Practical Expedients and Exemptions

The Company has elected to account for shipping and handling activities that occur after control of the related product transfers to the customer as fulfillment activities that are recognized upon shipment of the goods.