NOTES PAYABLE – FLOOR PLAN |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| NOTES PAYABLE – FLOOR PLAN | NOTE 7. NOTES PAYABLE – FLOOR PLAN
Red Oak Inventory Finance
The Company has a floor plan agreement with Red Oak Inventory Finance (“the Lender”), which has a stated borrowing capacity of $60.0 million for new and used marine inventory. From time to time, total borrowings may exceed stated limits due to the timing of floor plan draws for inventory shipments. The agreement is collateralized by new and used boat inventory.
Borrowings bear interest at Secured Overnight Financing Rate (“SOFR”) plus a margin that varies based on whether the inventory is new or used and the length of time the inventory is held. The maximum interest rates for inventory held beyond 541 days are SOFR plus 8.85% for new inventory and SOFR plus 9.10% for used inventory.
Outstanding borrowings under the agreement were $39.7 million and $25.3 million as of June 30, 2026 and December 31, 2025, respectively.
Wells Fargo Commercial Distribution Finance
In connection with the acquisition of Apex Marine, the Company assumed a floor plan financing program with Wells Fargo Commercial Distribution Finance, LLC and Wells Fargo Bank, N.A. (collectively, “Wells Fargo CDF”), which has a stated borrowing capacity of $15 million. The agreement is collateralized by the financed marine inventory. Borrowings bear interest at a base rate derived from the 30-day average Secured Overnight Financing Rate (“SOFR”), subject to certain adjustments, plus a margin ranging from 3.99% to 5.99% depending on the age of the financed inventory. Outstanding borrowings under the agreement were $7.1 million as of June 30, 2026.
Yamaha Motor Finance
During the three months ended June 30, 2026, the Company entered into a floor plan agreement with Yamaha Motor Finance Corp., U.S.A. (“Yamaha Motor Finance”), which has a stated borrowing capacity of $10 million. The agreement is collateralized by the financed boat and engine inventory. Borrowings bear interest at a variable base rate (ranging from 3.59% to 3.65% during the period) plus a margin of 5.95% to 8.20%, depending on the length of time the financed unit has been carried under the facility. Outstanding borrowings under the agreement were $1.0 million as of June 30, 2026.
Northpoint Commercial Finance
During the three months ended June 30, 2026, in connection with the acquisition of Bellhart Marine Services, LLC (“Bellhart”), the Company assumed a floor plan agreement with Northpoint Commercial Finance (“Northpoint”), which has a stated borrowing capacity of $1 million. The agreement is collateralized by the financed boat, engine, and trailer inventory. Borrowings bear interest at a variable base rate (approximately 3.76% during the period) plus a margin ranging from 6.39% to 8.99%, depending on the financed product and the length of time the unit has been carried under the facility. Outstanding borrowings under the agreement were $0.5 million as of June 30, 2026.
In addition, in connection with the acquisition of Apex Marine, the Company assumed a floor plan agreement with Northpoint. Outstanding borrowings under this agreement were $3.3 million as of June 30, 2026.
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