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Revenue Recognition and Contracts with Customers
 12 Months Ended
Dec. 31, 2023
Revenue Recognition and Contracts with Customers [Abstract]  
Revenue Recognition and Contracts with Customers
2.Revenue Recognition and Contracts with Customers

 

The impact of ASC 606 on revenue recognized during the years ended December 31, 2023, December 31, 2022, and December 31, 2021 is as follows:

 

   2023   2022   2021 
Contract liabilities with customers at January 1,  $1,031   $
—
   $84 
                
Revenue recognized   (4,084)   
—
    (84)
                
Revenue deferred   3,202    1,031    
—
 
                
Contract liabilities with customers at December 31,  $149   $1,031   $
—
 

 

During the year ended December 31, 2023, the Company deferred $3.2 million of revenue, offset by the recognition of $4.1 million of revenue previously deferred as the performance obligations relating to the shipment of free products were satisfied. This resulted in a net increase in firearms sales for the year ended December 31, 2023 of $0.9 million and a deferred contract revenue liability at December 31, 2023 of $0.1 million. The Company estimates that revenue from this deferred contract liability will be recognized in the first quarter of 2024.

 

During the year ended December 31, 2022, the Company deferred $1.0 million of revenue. There was no offset for the recognition from previously deferred revenue as the Company did not satisfy any performance obligations relating to the shipment of free products during the year. This resulted in a net decrease in firearms sales for the year ended December 31, 2022 of $1.0 million and a deferred contract revenue liability at December 31, 2022 of $1.0 million.

 

During the year ended December 31, 2021, there were no promotions giving rise to deferred contract liabilities and, therefore, there was no additional deferred revenue. Previously deferred revenue of $0.1 million was recognized in the first quarter of 2021. The Company did not have a deferred contract revenue liability at December 31, 2021.

 

Practical Expedients and Exemptions

 

The Company has elected to account for shipping and handling activities that occur after control of the related product transfers to the customer as fulfillment activities that are recognized upon shipment of the goods.