BRC Inc.

5. Other Assets

As of September 30, 2025 and December 31, 2024, we reported $48,471 and $50,546 of other assets on the consolidated balance sheets, respectively, related to prepaid advertising credits received in exchange for finished goods and apparel 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 September 30, 2025 and December 31, 2024, and have been recorded as "Prepaid expenses and other current assets" on the consolidated balance sheets, and $43,431 and $45,506 were non-current as of September 30, 2025 and December 31, 2024, respectively, and have been recorded as "Non-current prepaid marketing expenses" on the consolidated balance sheets.

Prepaid advertising credits are recorded upon revenue recognition, coinciding with the transfer of the finished goods inventory. We recognized $992 and $1,398 of revenue for the three and nine months ended September 30, 2025, respectively, and $3,316 and $15,220 of revenue for the three and nine months ended September 30, 2024, respectively, on the consolidated statements of operations related to shipments of inventory in exchange for prepaid advertising. We utilized $1,182 and $3,473 of prepaid advertising credits for the three and nine months ended September 30, 2025, respectively, and $7 and $1,769 for the three and nine months ended September 30, 2024, respectively.