| BUSINESS SEGMENT |
7. BUSINESS SEGMENT MPC has one reportable segment — its Powerboat Manufacturing business. The Chief Operating Decision Maker (CODM) makes resource allocation and performance assessment decisions based on this segment as a whole. MPC's CODM is the Chief Executive Officer. In addition, the Company’s results of operations and its financial condition are not significantly reliant upon any single customer or product model. Significant segment expenses for the three and six months ended June 30, 2025 and 2024 are shown in the following table: | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | | | June 30, | | June 30, | | (in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | Materials | | $ | 35,209 | | $ | 36,911 | | $ | 66,338 | | $ | 73,211 | | Overhead | | | 6,705 | | | 6,524 | | | 12,402 | | | 12,704 | | Labor costs | | | 6,926 | | | 6,884 | | | 13,313 | | | 13,862 | | Other cost of goods sold (1) | | | 5,949 | | | 6,054 | | | 10,785 | | | 11,952 | | Cost of goods sold | | $ | 54,789 | | $ | 56,373 | | $ | 102,838 | | $ | 111,729 | | | | | | | | | | | | | | | | Employment costs | | $ | 4,961 | | $ | 4,523 | | $ | 8,767 | | $ | 9,847 | | Warranty expense | | | 1,062 | | | 1,102 | | | 1,989 | | | 2,203 | | Other selling, general and administrative expenses (2) | | | 2,075 | | | 1,799 | | | 5,682 | | | 4,116 | | Selling, general and administrative expenses | | $ | 8,098 | | $ | 7,424 | | $ | 16,438 | | $ | 16,166 | |
| (1) | Comprised primarily of accessories cost. |
| (2) | Includes professional fees, insurance, advertising and promotions, research and development and other costs. |
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