AOUT Reports Entry & Termination of Material Definitive Agreement

TL;DR

**AOUT just entered and terminated a key agreement, watch for details on what it means for their business.**

AI Summary

American Outdoor Brands, Inc. (AOUT) filed an 8-K on January 4, 2024, reporting an event that occurred on December 29, 2023, related to both the entry into and termination of a material definitive agreement. This filing indicates a significant change in a core business arrangement, which could impact the company's future operations or financial performance. Investors should pay close attention to the details of these agreements, as they could signal shifts in strategy or partnerships that affect AOUT's revenue streams or cost structure.

Why It Matters

This filing signals a potentially significant change in American Outdoor Brands' business operations, which could impact its financial outlook and future growth prospects.

Risk Assessment

Risk Level: medium — The simultaneous entry and termination of a material definitive agreement introduces uncertainty regarding the company's strategic direction and operational stability.

Analyst Insight

Investors should await further details on the nature of the material definitive agreement that was both entered into and terminated, as this could significantly clarify the company's strategic direction and potential financial impact. This filing alone provides insufficient information for a definitive investment decision.

Key Numbers

• 001-39366 — Commission File Number (identifies American Outdoor Brands, Inc. with the SEC)
• 84-4630928 — IRS Employer Identification No. (identifies American Outdoor Brands, Inc. for tax purposes)
• 1800 North Route Z, Suite A — Business Address (principal executive offices of American Outdoor Brands, Inc.)

Key Players & Entities

• American Outdoor Brands, Inc. (company) — the registrant filing the 8-K
• AOUT (company) — trading symbol for American Outdoor Brands, Inc.
• December 29, 2023 (date) — date of the earliest event reported in the 8-K
• January 4, 2024 (date) — date the 8-K was filed
• $0.001 (dollar_amount) — par value per share of Common Stock

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, Par Value $0.001 per Share AOUT The Nasdaq Global Se
• $3.7 m — nder the Lease, including base rent, is $3.7 million, which represents an incremental
• $1.3 million — illion, which represents an incremental $1.3 million above our annual expense under the Subl

Filing Documents

• aout-20231229.htm (8-K) — 49KB
• 0000950170-24-002044.txt ( ) — 169KB
• aout-20231229_pre.xml (EX-101.PRE) — 10KB
• aout-20231229_lab.xml (EX-101.LAB) — 14KB
• aout-20231229.xsd (EX-101.SCH) — 2KB
• aout-20231229_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. As previously disclosed on the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on February 1, 2023, we entered into an Assignment and Assumption of Lease Agreement, dated January 31, 2023 (the “Assignment Agreement”), with Smith & Wesson Sales Company (formerly Smith & Wesson Corp.) (“SWSC”), as assignor, and consented to by RCS – S&W Facility, LLC (“RCS”) and Smith & Wesson Brands, Inc. (“SWBI”), pursuant to which SWSC agreed to assign to us its rights as tenant under the Lease Agreement, dated October 26, 2017 (the “Original Lease”), between Ryan Boone County, LLC, as landlord (the “Landlord”), and SWSC, as tenant, as amended by the First Amendment of Lease Agreement, dated October 25, 2018 (“Amendment 1”), and as further amended by the Second Amendment to Lease Agreement, dated January 31, 2019 (“Amendment 2,” and collectively with the Original Lease and Amendment 1, the “Lease”), which assignment became effective on effective on January 1, 2024. The Lease covers the approximately 632,000 square foot building and surrounding property located at 1800 North Route Z, Columbia, Boone County, Missouri (the “Building”) where we had previously been subleasing approximately 361,000 square feet from SWSC pursuant to a Sublease, dated as of August 24, 2020, by and between us and SWSC (the “Sublease”). The Lease provides us with an option to require the Landlord to expand the Building by up to 491,000 additional square feet. The Lease term ends on November 26, 2038 and, pursuant to the Assignment Agreement, does not provide for an extension of the term of the Lease. After the assignment of the Lease became effective, our total annual expense under the Lease, including base rent, is $3.7 million, which re

02. Termination of a Material Definitive Agreement

Item 1.02. Termination of a Material Definitive Agreement. Effective December 29, 2023, as a condition precedent to the assignment of the Lease, we and SWSC agreed to terminate the Sublease. In connection with such termination of the Sublease, we and SWSC also agreed to an apportionment of unresolved maintenance and repair items. The description of the Sublease and the relationship between us and SWSC set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.02.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 10.1 Lease Agreement, dated as of October 26, 2017, by and between Ryan Boone County, LLC and Smith & Wesson Corp., as assigned to the Registrant effective January 1, 2024 (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 1, 2023). . 10.2 First Amendment to Lease Agreement, dated as of October 25, 2018, by and among Ryan Boone County, LLC, Smith & Wesson Corp., and American Outdoor Brands Corporation, as assigned to the Registrant effective January 1, 2024 (incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 1, 2023). 10.3 Second Amendment to Lease Agreement, dated as of January 31, 2019, by and among Ryan Boone County, LLC, American Outdoor Brands Sales Company (f/k/a Smith & Wesson Corp.) and American Outdoor Brands Corporation, as assigned to the Registrant effective January 1, 2024 (incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 1, 2023). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AMERICAN OUTDOOR BRANDS, INC. Date: January 4, 2024 By: /s/ H. Andrew Fulmer H. Andrew Fulmer Executive Vice President, Chief Financial Officer, and Treasurer