BRC Inc.

5. Other Assets

As of March 31, 2025 and December 31, 2024, we reported $49,630 and $50,546 of other assets on the consolidated balance sheets, respectively, related to prepaid advertising credits received in exchange for finished goods inventory. We measured the non-cash consideration of the prepaid advertising credits based on the standalone selling price of the finished goods inventory at the time of transfer to the counterparty. Based upon the period over which we expect to use these advertising credits, we concluded that $5,040 were current as of both March 31, 2025 and December 31, 2024, and have been recorded as "Prepaid expenses and other current assets" on the consolidated balance sheets, and $44,590 and $45,506 were non-current and have been recorded as "Non-current prepaid marketing expenses" on the consolidated balance sheets as of March 31, 2025 and December 31, 2024, respectively.

Prepaid advertising credits are recorded upon revenue recognition, coinciding with the transfer of the finished goods inventory. We did not recognize revenue related to shipments of inventory in exchange for prepaid advertising credits in the first quarter of 2025. We recognized $8,487 of revenue for the three months ended March 31, 2024, on the consolidated statements of operations related to shipments of inventory in exchange for prepaid advertising. We utilized $916 and $1,532 of prepaid advertising credits for the three months ended March 31, 2025 and 2024, respectively.