Company: ONEW
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0001772921-25-000013
Chunk: 19

Company: OneWater Marine Inc.
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 completed. Revenue from arranging financing, insurance and extended warranty contracts to customers through various third-party financial institutions and insurance companies is recognized when the related boats are sold. We do not directly finance our customers’ boat, motor or trailer purchases. We are acting as an agent in the transaction, therefore the commissions are recorded on a net basis. Subject to our agreements and in the event of early cancellation, prepayment or default of such loans or insurance contracts by the customer, we may be assessed a chargeback for a portion of the commission paid by the third-party financial institutions and insurance companies. We reserve for these chargebacks based on our historical experience with repayments or defaults. Chargebacks were not material to the unaudited condensed consolidated financial statements for the three months ended December 31, 2024 and 2023.Contract liabilities consist of deferred revenues from marina and storage operations and customer deposits and are classified in customer deposits in the Company’s unaudited condensed consolidated balance sheets. Deposits received from customers are recorded as a liability until the related sales orders have been fulfilled by us and control of the vessel is transferred to the customer. The activity in customer deposits for the three months ended December 31, 2024 and 2023 is as follows: ($ in thousands)Three Months Ended December 31, 2024Three Months Ended December 31, 2023Beginning contract liability$63,955 $51,649 Revenue recognized from contract liabilities included in the beginning balance(38,408)(31,378)Increases due to cash received, net of amounts recognized in revenue during the period27,907 30,706 Ending contract liability$53,454 $50,977 The following table sets forth percentages on the timing of revenue recognition for the three months ended December 31, 2024 and 2023. Three Months Ended December 31, 2024Three Months Ended December 31, 2023Goods and services transferred at a point in time92.6 %92.7 %Goods and services transferred over time7.4 %7.3 %Total Revenue100.0 %100.0 %Income Taxes OneWater Inc is a corporation and as a result, is subject to U.S. federal, state and local income taxes. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the consolidated financial statements. Under this method, we determine deferred