The Company’s BOA and Velocity Outdoor operating segments estimate their exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability quarterly and adjusts the amount as necessary. Warranty liability is included in accrued expenses in the accompanying consolidated balance sheets. A reconciliation of the change in the carrying value of the Company’s warranty liability for the nine months ended September 30, 2026 and the year ended December 31, 2025 is as follows (in thousands):


Warranty liability	Nine months ended September 30, 2026		Year ended December 31, 2025

Beginning balance	$	1,293	$	1,121
Provision for warranties issued during the period	1,500		2,399
Fulfillment of warranty obligations	(1,315)		(2,227)

Ending balance	$	1,478	$	1,293