In fiscal 2025, the Company completed the Aviara Transaction and the Aviara Facility Sale. As part of the Aviara Transaction, MarineMax, Inc. (“MarineMax”) paid for select branding and operational assets, including Aviara’s website, tooling, and inventory. MarineMax also assumed Aviara’s customer care, warranty liability and administration. The amounts paid to the Company by MarineMax for ownership of the Aviara brand were offset by MarineMax’s assumption of warranty liability and administration accruals. Further, the Aviara Facility Sale generated proceeds, net of closing costs, of $26.1 million. The transactions resulted in a $6.2 million gain on discontinued operations related to the Aviara Facility Sale, partially offset by a $4.2 million loss related to the Aviara Transaction. In fiscal 2023, the Company sold its NauticStar business.

As discussed in Note 1, the Company has reported results of operations for the Aviara and NauticStar reporting units as discontinued operations in the consolidated statement of operations.

The following table summarizes the results of discontinued operations for the following periods:


	Fiscal Year Ended
	June 30,			June 30,			June 30,
	2026			2025			2024
NET SALES	$	4		$	9,024		$	44,318
COST OF SALES		—			12,954			48,982
GROSS PROFIT (LOSS)		4			(3,930	)		(4,664	)
OPERATING EXPENSES:
Selling, general and administrative		65			2,529			6,734
Impairments		—			—			9,827
Total operating expenses		65			2,529			16,561
OPERATING LOSS		(61	)		(6,459	)		(21,225	)
Gain on sale of discontinued operations		—			2,016			187
LOSS BEFORE INCOME TAX BENEFIT		(61	)		(4,443	)		(21,038	)
INCOME TAX BENEFIT		—			771			5,595
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	$	(61	)	$	(3,672	)	$	(15,443	)

Our Aviara segment experienced a material reduction in expected future orders near the end of the fourth quarter of fiscal 2024. This reduced outlook for future demand, and related cost inefficiencies of lower production levels, resulted in an impairment trigger related to the Aviara reporting unit.

Accordingly, we performed an undiscounted cash flow analysis for the asset group related to the Aviara reporting unit that considered projected cash flows from continuing to operate the assets through their remaining estimated useful lives, a potential sale, and a potential exit of the business other than through a sale and concluded that the carrying value of the asset group was not recoverable. The fair value of the fixed assets, which primarily are comprised of land, building, machinery and equipment, was estimated using fair value techniques, resulting in an impairment charge of $6.9 million against the asset group’s fixed assets.

Further, in analyzing future cash flows used in the impairment analysis, the Company identified excess inventory not expected to be used in future production. As a result, the Company recognized a $2.4 million write-off to reduce inventory amounts to their net realizable value.

As a result of our impairment analyses, we recorded total impairment charges of $9.8 million related to the Aviara reporting unit’s property, plant, equipment, inventory, and other assets.