BRC Inc

5. Other Assets

During the third quarter of 2023, we entered into a contract whereby we agreed to exchange finished goods inventory for prepaid advertising, for a stated contract price of $41,565. During the first quarter of 2024, we entered into amendments to the contract under the same terms for an incremental stated contract price of $6,735. We measured the noncash consideration using the standalone selling price of finished goods sold to distributors, which was 84% of the stated contract price. Revenue and corresponding prepaid advertising is recognized based on the standalone selling price as the products are delivered. As of March 31, 2024 and December 31, 2023, we recognized $35,856 and $28,901 of other assets on our consolidated balance sheet, respectively. Based upon the period over which we expect to use these advertising credits, we concluded that $6,129 were current as of March 31, 2024 and December 31, 2023, each, and have been recorded as prepaid and other current assets on our consolidated balance sheet, and $29,727 and $22,772 were non-current and have been recorded as other assets on our consolidated balance sheets as of March 31, 2024 and December 31, 2023 respectively. During the quarter ended March 31, 2024, we recognized $8,487 of revenue on our consolidated income statement.