Risk Factors Update Summary

• The company recognized an impairment charge of $88.4 million for the Maverick Boat Group reporting unit. This change might result in significant financial impact on future operations.
• Our consolidated net sales decreased by 40.3% for fiscal year 2024 compared to fiscal year 2023, resulting in a net loss of $56.4 million.
• We repurchased 19 new model year 2024 boats from Tommy's Boats due to bankruptcy. This change might result in increased inventory management challenges.
• Tommy's Boats filed for bankruptcy, liquidating inventory, with 19 units repurchased for $2.5 million. This could adversely affect brand perception and sales.
• We experienced supply chain disruptions from fiscal year 2020 through the first half of fiscal 2023, impacting our operations significantly.
• A large fixed-cost base may significantly impact profitability when sales decrease, affecting financial stability.
• Our agreement with Yamaha for outboard motors is scheduled to expire on June 30, 2027, affecting future supply.
• Inability to accurately forecast product demand could materially affect inventory management and operational results.
• Climatic events like hurricanes may disrupt operations and supplier businesses, potentially leading to financial losses.
• Increased frequency of severe weather events could disrupt operations, impacting productivity and profitability. This change highlights potential operational vulnerabilities.
• We recognized an impairment charge of $88.4 million for the three months ended March 31, 2024, related to our Maverick Boat Group reporting unit.
• Our Board authorized a stock repurchase program for up to $100 million from November 8, 2023, to November 8, 2024, impacting liquidity and strategic investments.
• We incurred $2.6 million in costs during the UAW strike against General Motors due to engine supply interruptions.
• New privacy laws in states like California and Virginia impose obligations that could lead to significant fines for noncompliance. This change may increase operational costs and legal risks.
• Increased costs from third-party suppliers or supply chain disruptions could adversely impact financial condition and cash flows.
• Transitioning to a new CEO is critical for success, impacting management stability and strategic direction.
• In October 2023, California passed climate disclosure laws requiring disclosures on GHG emissions and climate-related financial risks, potentially increasing compliance costs.
• The transition to a new CEO may create uncertainty among stakeholders, potentially impacting business operations and market perception. This change emphasizes leadership stability risks.
• Our manufacturing strategy aims to enhance product quality while reducing costs and increasing flexibility to adapt to market changes.
• Dependence on a small group of suppliers raises risks of component shortages, affecting timely production and pricing.
• As of June 30, 2024, $82.7 million remained available under the stock repurchase program, which may affect future capital allocation decisions.