Outdoor Holding Company announced that it has reached a settlement with the U.S. Securities and Exchange Commission (SEC) to resolve an investigation into a range of accounting and disclosure violations. The settlement, issued by the SEC on December 15, 2025, imposes no civil penalty or monetary sanction but requires the company to cease and desist from future violations of federal securities laws and to engage an independent compliance consultant to review and remediate material weaknesses in its internal control over financial reporting.
Under the terms of the settlement, Outdoor Holding Company must fully cooperate with the consultant, adopt all recommendations within two years, and provide the SEC with certifications of compliance. The company is also required to restate its financial statements for fiscal years 2022‑2024, all quarters of 2024, and the first quarter of 2025, and to implement a comprehensive remediation program overseen by its Board, Audit Committee, and Disclosure Committee.
The settlement follows the company’s divestiture of its ammunition manufacturing business in April 2025 and its transition to a pure‑play e‑commerce marketplace centered on GunBroker.com, the largest online platform for firearms and shooting‑sports products. The divestiture allowed Outdoor Holding Company to focus its resources on the high‑growth marketplace, but the SEC investigation uncovered a series of internal control failures that prompted the restatement and remediation requirements.
CEO Steve Urvan said the settlement “is a positive step that allows us to move forward without a financial penalty while demonstrating our commitment to stronger governance and accurate financial reporting.” He added that the company’s leadership team has taken “decisive, comprehensive action to address legacy issues and build a materially stronger governance and control environment.”
The settlement underscores the importance of robust internal controls for a company that operates in a highly regulated industry. By agreeing to a remediation plan and restating prior periods, Outdoor Holding Company aims to restore investor confidence and ensure that its financial reporting accurately reflects the performance of its core e‑commerce business. The company’s focus on GunBroker.com, combined with the removal of its legacy ammunition operations, positions it to capitalize on growing demand for online firearms marketplaces while mitigating the regulatory risks that previously plagued its financial reporting.
The settlement also signals to the market that Outdoor Holding Company is taking concrete steps to address the root causes of its past accounting issues—namely, inadequate disclosure of executive employment, related‑party transactions, improper capitalization of equity issuance costs, understatement of stock‑compensation expenses, and insufficient internal controls. By engaging an external consultant and committing to a two‑year remediation timeline, the company is aligning its governance practices with industry best practices and setting a foundation for sustainable growth in its e‑commerce segment.
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