Accrued Expenses

3 Months Ended

Sep. 30, 2025

Accrued expenses consisted of the following:


	As of September 30, 2025		As of June 30, 2025
Warranties	$	40,153	$	40,970
Dealer incentives	10,963		7,057
Accrued compensation	16,853		15,438
Current operating lease liabilities	2,432		2,408

Accrued legal and professional fees	30,066		33,729
Customer deposits	4,198		3,508
Government grant	4,089		4,089
Other accrued expenses	3,447		2,571
Total accrued expenses	$	112,201	$	109,770

Accrued legal and professional fees include approximately $21,000 in insurance coverage proceeds that are subject in certain cases to reservations of rights by the insurance carriers. The proceeds will be considered a liability in accrued expenses until the resolution of the litigation. Accrued legal and professional fees also includes approximately $7,800 related to a settlement amount associated with a claim that the Company has filed with its insurance carrier and, based on communications with the insurer and its own assessment, believes that recovery of the loss is probable. For more information, refer to Note 16 of our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.

Government grant includes approximately $4,089 related to an Economic Development Grant to be paid by the State of Tennessee in relation to the Company's recent purchase of a production facility in Roane County, Tennessee and the moving production of certain models of Cobalt boats from Kansas to Tennessee. The grant requires the Company to create and maintain a specified number of jobs in order to retain the grant. The accrued liability will be relieved as the Company satisfies headcount requirements.