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NOTES PAYABLE – FLOOR PLAN
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
NOTES PAYABLE – FLOOR PLAN

NOTE 10. NOTES PAYABLE – FLOOR PLAN

 

The Company has a floor plan agreement with Red Oak Inventory Finance (“the Lender”), which has a stated total limit of $25,000,000 for new and used marine inventory. From time to time, total borrowings exceed stated limits due to the timing of floor plan draws for inventory shipments. These agreements are collateralized by new and used boat inventory. The agreement bears interest at a rate of SOFR plus basis points depending on whether a boat is new or used and the term period for held inventory. The maximum interest rates for new and used marine inventory held longer than 541 days or 541 days, respectively, is SOFR plus 8.85% or LIBOR plus 9.10%. The floor plan amounts outstanding at September 30, 2025 and December 31, 2024, respectively, were $23,478,756 and $20,444,604.

 

 

The Company has a floor plan agreement with LAVICTOIRE Finance (“the Lender”), which has a stated total limit of $3,250,000. The advances under this agreement are subject to the lender’s discretion and are limited to 70% of the lower wholesale price of each item based on approved valuation sources. The agreement is collateralized by used boat inventory, with the lender retaining a security interest until repayment. The agreement bears interest at a rate of 1 Month CME Term SOFR plus 4.75%, with a minimum floor rate of 4.75% per annum. Principal repayment is required on the earlier of 360 days from the advance date or the sale of the financed inventory. The floor plan amounts outstanding at September 30, 2025 and December 31, 2024, respectively, were nil and $150,913.

 

The total floor plan notes payable outstanding as of September 30, 2025 and December 31, 2024 were $23,478,756 and $20,595,517, respectively. There are no required principal payments in the remainder of 2025 as a result of the loan being 360 days from the advance date.