Item 1A. Risk Factors
Item 1A.
Risk Factors
In addition to the risks discussed below and other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors and other cautionary statements described under the heading
“Risk Factors” included in our Final Prospectus, which could materially affect our businesses, financial condition, or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may
materially adversely affect our business, financial condition, or future results. There have been no material changes in our risk factors from those described in the Final Prospectus, other than as discussed below.
The ongoing COVID-19 pandemic may adversely affect our operations and our revenues, results of operations and financial condition.
Our business and operations could be materially adversely affected by the widespread outbreak of a contagious disease, including the recent COVID-19 pandemic. COVID-19 has spread in many of the geographic areas in which
we operate. National, state and local governments in affected regions have implemented and may continue to implement safety precautions, including shelter in place orders, travel restrictions, business closures, cancellations of public gatherings,
including boat shows, and other measures. These measures have affected our ability to sell and service boats, required us to temporarily close or partially close certain locations, decrease staffing in certain locations, and may require additional
closures or staffing changes in the future. Organizations and individuals are also taking additional steps to avoid or reduce infection, including limiting travel, staying home, working from home and limiting participation in certain leisure
activities.
We continue to monitor federal, state and local government recommendations and have made modifications to our normal operations as a result of COVID-19. While demand for our products has generally increased throughout
the course of the COVID-19 pandemic to date, which we believe is due to the cancellation of travel and other activities that traditionally compete with boating and due to consumers’ desire for outdoor, socially-distanced recreational activities, if
the negative economic effects of COVID-19 continue for a prolonged period of time, it could lead to a reduction in demand for our products. Such reductions in demand could adversely affect our results of operations. Additionally, disruptions in the
capital markets, as a result of the pandemic, may also adversely affect our ability to access capital and additional liquidity.The COVID-19 pandemic may also lead to disruptions in our supply chain, including our ability to obtain boats and parts
from our suppliers, and labor shortages. It is possible that an inventory shortage could also occur as a result of the COVID-19 pandemic and its effects on, among other things, operations and consumer demand. While we previously announced our
decision to pause our acquisition strategy due to the COVID-19 pandemic, given our financial results for the three months ended June 30, 2020, we are recommencing our acquisition strategy and opportunistically evaluating future acquisitions. It is
not possible, at this time, to estimate the entirety of the effect that COVID-19 will have on our business, customers, suppliers or other business partners.
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Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3.
Defaults Upon Senior Securities
None.
Item 4.
Mine Safety Disclosures
Not Applicable.
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