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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tandy Leather Factory Inc (PK) | USOTC:TLFA | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.48 | 5.02 | 5.70 | 0.00 | 01:00:00 |
☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
75-2543540
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
1900 Southeast Loop 820
Fort Worth, Texas 76140
|
76140
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, par value $0.0024
|
TLFA
|
N/A*
|
1
|
|
4
|
|
ITEM 1. BUSINESS
|
4
|
ITEM 1A. RISK FACTORS
|
10
|
ITEM 1B. UNRESOLVED STAFF COMMENTS
|
19
|
ITEM 2. PROPERTIES
|
19
|
ITEM 3. LEGAL PROCEEDINGS
|
20
|
ITEM 4. MINE SAFETY DISCLOSURES
|
20
|
21
|
|
21
|
|
ITEM 6. SELECTED FINANCIAL DATA
|
21
|
22
|
|
34
|
|
40
|
|
91
|
|
ITEM 9A. CONTROLS AND PROCEDURES
|
91
|
ITEM 9B. OTHER INFORMATION
|
95
|
96
|
|
96
|
|
ITEM 11. EXECUTIVE COMPENSATION
|
96
|
96
|
|
96
|
|
96
|
|
97
|
|
97
|
|
ITEM 16. COMPREHENSIVE FORM 10-K SUMMARY
|
100
|
101
|
|
126
|
Increase (Decrease) in Net income:
|
2018
|
2017
|
||||||
Inventory adjustments (1)
|
$
|
255,372
|
$
|
(3,127,495
|
)
|
|||
Sales returns, gift cards and class fees
|
105,382
|
99,327
|
||||||
Operating expenses (2)
|
2,059,463
|
2,163,065
|
||||||
Impairment expense
|
(285,477
|
)
|
-
|
|||||
Other expense
|
373,382
|
40,255
|
||||||
Total adjustments before tax
|
2,508,122
|
(824,848
|
)
|
|||||
Income tax expense from adjustments
|
73,585
|
1,148,459
|
||||||
Increase (decrease) in net income
|
$
|
2,434,537
|
$
|
(1,973,307
|
)
|
|||
(1) Inventory adjustments due to:
|
||||||||
FIFO adjustment
|
$
|
843,598
|
$
|
(88,548
|
)
|
|||
Freight-in, warehousing and handling expenditures, factory labor and overhead, and freight-out
|
503,078
|
(619,172
|
)
|
|||||
Inventory reserve
|
980,000
|
-
|
||||||
Sales returns
|
104,105
|
(19,999
|
)
|
|||||
Other
|
19,710
|
(223,895
|
)
|
|||||
Warehouse and handling reclass
|
(2,195,119
|
)
|
(2,175,881
|
)
|
||||
$
|
255,372
|
$
|
(3,127,495
|
)
|
||||
(2) Operating expense adjustments due to:
|
||||||||
Warehouse and handling reclass
|
$
|
2,195,119
|
$
|
2,175,881
|
||||
Reclass to impairment expense
|
285,477
|
-
|
||||||
Accrued expenses
|
(377,912
|
)
|
51,375
|
|||||
PTO Accrual
|
(16,930
|
)
|
(38,647
|
)
|
||||
Other
|
(26,291
|
)
|
(25,544
|
)
|
||||
$
|
2,059,463
|
$
|
2,163,065
|
FIFO adjustment
|
$
|
(786,690
|
)
|
|
Freight-in, warehousing and handling expenditures, factory labor and overhead, and freight-out
|
(442,150
|
)
|
||
Inventory reserve
|
980,000
|
|||
Sales returns
|
(172,494
|
)
|
||
Income tax benefit
|
33,823
|
|||
Accruals and other
|
(852,872
|
)
|
||
Decrease to retained earnings
|
$
|
(1,240,383
|
)
|
|
◾ |
Simplifying and centralizing the pricing strategy, reducing the number of complex price levels, and creating a balance between everyday-low-prices (“EDLP”) and planned promotional events;
|
|
◾ |
Enhancing our customer proposition with an upgraded web platform and experience, new branding and assortment architecture, and community-building initiatives;
|
|
◾ |
Improving the quality and assortment of the product offering to better appeal to more advanced leather-crafters and business customers and improving leather quality and consistency with a new in-house leather quality assurance process;
|
|
◾ |
Assessing our retail stores based on a forecast of long-term four-wall cash flow. Managing the fleet (store moves, closures, renewals) based on that forecast, which resulted in the closure of five stores in 2019 and one in early 2020,
including stores in both Australia and the United Kingdom (“UK”), which were all cash flow negative and not strategic to ongoing operations;
|
|
◾ |
Investing in retail talent with a focus on training and development, performance evaluations, promotion from within, career paths, achievable and controllable bonus structures, base pay reflective of geographic differences in
cost-of-living, and a flattened organizational structure;
|
|
◾ |
Building the Commercial Program - a team focused on the Company’s largest customers with a business model that meets these customers’ unique needs including dedicated sales representatives, clear and competitive volume-based pricing,
personalized service and sourcing, shipping directly to customers from our distribution center, and improved product consistency, quality and availability;
|
|
◾ |
Building the organization, processes, infrastructure, tools and systems to efficiently execute these strategies. This included recruiting key talent with deep retail know-how, replacing decades-old systems (general ledger,
point-of-sale, warehouse management and web) with modern tools, and building key best-practices across the company; and
|
|
◾ |
Evaluating opportunities to grow the company with new store locations and formats, category growth and strategic partnerships.
|
Name and Age
|
Position
|
Served as Executive
Officer Since
|
||
Janet Carr, 60
|
Chief Executive Officer
|
2018
|
||
Michael Galvan, 52
|
Chief Financial Officer
|
2021
|
ITEM 1A. |
RISK FACTORS
|
|
• |
unavailability of, or significant fluctuations in the cost of, raw materials;
|
|
• |
compliance by us and our independent manufacturers and suppliers with labor laws and other foreign governmental regulations;
|
|
• |
imposition of additional duties, taxes and other charges on imports or exports;
|
|
• |
increases in the cost of labor, fuel (including volatility in the price of oil), travel and transportation;
|
|
• |
compliance by our independent manufacturers and suppliers with our Code of Business Conduct and Ethics and our Animal Welfare Policy;
|
|
• |
disruptions or delays in shipments;
|
|
• |
loss or impairment of key manufacturing or distribution sites;
|
|
• |
inability to engage new independent manufacturers that meet the Company’s cost-effective sourcing model;
|
|
• |
product quality issues;
|
|
• |
political unrest;
|
|
• |
unforeseen public health crises, such as pandemic (e.g., the COVID-19 pandemic) and epidemic diseases;
|
|
• |
natural disasters or other extreme weather events, whether as a result of climate change or otherwise; and
|
|
• |
acts of war or terrorism and other external factors over which we have no control.
|
ITEM 1B. |
UNRESOLVED STAFF COMMENTS
|
ITEM 2. |
PROPERTIES
|
U.S. Locations
|
||||
Alabama
|
1
|
Missouri
|
3
|
|
Alaska
|
1
|
Montana
|
1
|
|
Arizona
|
3
|
Nebraska
|
1
|
|
Arkansas
|
1
|
Nevada
|
2
|
|
California
|
10
|
New Mexico
|
2
|
|
Colorado
|
4
|
New York
|
1
|
|
Connecticut
|
1
|
New Jersey
|
1
|
|
Florida
|
5
|
North Carolina
|
2
|
|
Georgia
|
2
|
Ohio
|
3
|
|
Idaho
|
1
|
Oklahoma
|
2
|
|
Illinois
|
1
|
Oregon
|
2
|
|
Indiana
|
1
|
Pennsylvania
|
3
|
|
Iowa
|
1
|
South Carolina
|
1
|
|
Kansas
|
1
|
South Dakota
|
1
|
|
Kentucky
|
1
|
Tennessee
|
3
|
|
Louisiana
|
2
|
Texas
|
16
|
|
Maryland
|
1
|
Utah
|
4
|
|
Massachusetts
|
1
|
Washington
|
3
|
|
Michigan
|
2
|
Wisconsin
|
1
|
|
Minnesota
|
2
|
Wyoming
|
1
|
|
Canadian locations:
|
International locations:
|
|||
Alberta
|
3
|
Spain
|
1
|
|
British Columbia
|
1
|
|||
Manitoba
|
1
|
|||
Nova Scotia
|
1
|
|||
Ontario
|
3
|
|||
Saskatchewan
|
1
|
ITEM 3. |
LEGAL PROCEEDINGS
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM.5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period (2)
|
(a) Total
number of
shares
purchased |
(b) Average
price paid per
share
|
(c) Total number of
shares purchased as
part of publicly
announced plans or
programs
|
(d) Maximum number
of shares that may yet
be purchased under
the plans or programs
(1)
|
||||||||||||
October 1 – October 31, 2019
|
-
|
$
|
-
|
-
|
996,163
|
|||||||||||
November 1 – November 30, 2019
|
-
|
$
|
-
|
-
|
996,163
|
|||||||||||
December 1 – December 31, 2019
|
-
|
$
|
-
|
-
|
996,163
|
|||||||||||
Total
|
-
|
$
|
-
|
-
|
ITEM 6. |
SELECTED FINANCIAL DATA
|
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
2019
|
2018
Restated
|
2017
Restated
|
||||||||||
Net sales
|
$
|
74,918,160
|
$
|
83,203,569
|
$
|
82,420,595
|
||||||
% Increase (decrease) from prior year
|
(10.0
|
)%
|
0.9
|
%
|
2019
|
2018
Restated
|
2019 vs 2018
|
||||||||||||||||||||||
# Stores
|
Sales
|
# Stores
|
Sales
|
$ Change
|
% Change
|
|||||||||||||||||||
Same stores
|
113
|
$
|
72,224,107
|
113
|
$
|
79,276,414
|
$
|
(7,052,307
|
)
|
(8.9
|
)%
|
|||||||||||||
New stores
|
2
|
881,824
|
2
|
400,215
|
481,609
|
120.3
|
%
|
|||||||||||||||||
Closed stores (1 temporary)
|
5
|
1,812,229
|
6
|
3,526,940
|
(1,714,711
|
)
|
(48.6
|
)%
|
||||||||||||||||
Total at year-end
|
115
|
$
|
74,918,160
|
120
|
$
|
83,203,569
|
$
|
(8,285,409
|
)
|
(10.0
|
)%
|
2018
Restated
|
2017
Restated
|
2018 vs 2017
|
||||||||||||||||||||||
# Stores
|
Sales
|
# Stores
|
Sales
|
$ Change
|
% Change
|
|||||||||||||||||||
Same stores
|
114
|
$
|
80,340,388
|
114
|
$
|
80,776,939
|
$
|
(436,551
|
)
|
(0.5
|
)%
|
|||||||||||||
New stores
|
5
|
1,795,693
|
3
|
612,174
|
1,183,519
|
193.3
|
%
|
|||||||||||||||||
Closed stores (1 temporary)
|
2
|
1,067,488
|
2
|
1,031,482
|
36,006
|
3.5
|
%
|
|||||||||||||||||
Total at year-end
|
120
|
$
|
83,203,569
|
119
|
$
|
82,420,595
|
$
|
782,974
|
0.9
|
%
|
2019
|
2018
Restated
|
2017
Restated
|
||||||||||
Sales
|
$
|
74,918,160
|
$
|
83,203,569
|
$
|
82,420,595
|
||||||
Cost of sales
|
32,958,708
|
32,262,624
|
33,334,934
|
|||||||||
Gross profit
|
$
|
41,959,452
|
$
|
50,940,945
|
$
|
49,085,661
|
||||||
Gross profit margin percentage
|
56.0
|
%
|
61.2
|
%
|
59.6
|
%
|
2019
|
2018
Restated
|
2017
Restated
|
||||||||||
Operating expenses
|
$
|
43,555,826
|
$
|
44,692,265
|
$
|
42,708,942
|
||||||
Non-routine items related to restatement
|
(1,346,478
|
)
|
-
|
-
|
||||||||
Non-routine items related to CFO transition
|
(205,650
|
)
|
-
|
-
|
||||||||
Adjusted operating expenses
|
$
|
42,003,698
|
$
|
44,692,265
|
$
|
42,708,942
|
||||||
Operating expenses % of sales
|
58.1
|
%
|
53.7
|
%
|
51.8
|
%
|
||||||
Adjusted operating expenses % of sales
|
56.1
|
%
|
53.7
|
%
|
51.8
|
%
|
Transition tax on deemed repatriation of certain foreign earnings (1)
|
$
|
603,976
|
||
Foreign withholding taxes (1)
|
290,128
|
|||
Remeasuring deferred tax position (2)
|
402,135
|
|||
$
|
1,296,239
|
Year ended
December 31,
|
Total shares
repurchased
|
Average price
per share
|
||||
2019
|
131,782
|
$
|
5.58
|
|||
2018
|
243,387
|
$
|
6.79
|
For the Years Ended December 31,
|
||||||||||||
2019
|
2018
Restated (1)
|
2017
Restated (1)
|
||||||||||
Net cash provided by operating activities
|
$
|
10,471,293
|
$
|
7,771,740
|
$
|
2,465,775
|
||||||
Net cash used in investing activities
|
(9,156,147
|
)
|
(1,060,389
|
)
|
(1,656,036
|
)
|
||||||
Net cash (used in) provided by financing activities
|
(9,703,217
|
)
|
(56,978
|
)
|
150,718
|
|||||||
Effect of exchange rate changes on cash and cash equivalents
|
222,878
|
(666,879
|
)
|
260,096
|
||||||||
Net (decrease) increase in cash and cash equivalents
|
$
|
(8,165,193
|
)
|
$
|
5,987,494
|
$
|
1,220,553
|
ITEM 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
For the Years Ended December 31,
|
||||||||||||
2019
|
2018
Restated (1)
|
2017
Restated (1)
|
||||||||||
Net sales
|
$
|
74,918,160
|
$
|
83,203,569
|
$
|
82,420,595
|
||||||
Cost of sales
|
32,958,708
|
32,262,624
|
33,334,934
|
|||||||||
Gross profit
|
41,959,452
|
50,940,945
|
49,085,661
|
|||||||||
Operating expenses
|
43,555,826
|
44,692,265
|
42,708,942
|
|||||||||
Impairment expense
|
1,001,835
|
285,477
|
-
|
|||||||||
Income (loss) from operations
|
(2,598,209
|
)
|
5,963,203
|
6,376,719
|
||||||||
|
||||||||||||
Other (income) expense:
|
||||||||||||
Interest expense
|
36,260
|
304,957
|
205,555
|
|||||||||
Other, net
|
(40,225
|
)
|
(553,573
|
)
|
(167,112
|
)
|
||||||
Total other (income) expense
|
(3,965
|
)
|
(248,616
|
)
|
38,443
|
|||||||
Income (loss) before income taxes
|
(2,594,244
|
)
|
6,211,819
|
6,338,276
|
||||||||
Provision (benefit) for income taxes
|
(690,463
|
)
|
1,813,454
|
3,859,832
|
||||||||
Net income (loss)
|
$
|
(1,903,781
|
)
|
$
|
4,398,365
|
$
|
2,478,444
|
|||||
Foreign currency translation adjustments, net of tax
|
363,639
|
(681,872
|
)
|
411,427
|
||||||||
Comprehensive income (loss)
|
$
|
(1,540,142
|
)
|
$
|
3,716,493
|
$
|
2,889,871
|
|||||
Net income (loss) per common share:
|
||||||||||||
Basic
|
$
|
(0.21
|
)
|
$
|
0.48
|
$
|
0.27
|
|||||
Diluted
|
$
|
(0.21
|
)
|
$
|
0.48
|
$
|
0.27
|
|||||
Weighted average number of shares outstanding:
|
||||||||||||
Basic
|
8,973,246
|
9,185,203
|
9,242,092
|
|||||||||
Diluted
|
8,973,246
|
9,205,008
|
9,245,537
|
For the Years Ended December 31,
|
||||||||||||
2019
|
2018
Restated (1)
|
2017
Restated (1)
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income (loss)
|
$
|
(1,903,781
|
)
|
$
|
4,398,365
|
$
|
2,478,444
|
|||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
1,655,223
|
1,798,762
|
1,884,043
|
|||||||||
Operating lease asset amortization
|
3,481,931
|
-
|
-
|
|||||||||
Impairment of goodwill and long-lived assets
|
1,001,835
|
285,477
|
-
|
|||||||||
Loss on disposal of assets
|
8,795
|
1,321
|
3,139
|
|||||||||
Stock-based compensation
|
770,188
|
327,629
|
239,599
|
|||||||||
Deferred income taxes
|
(334,343
|
)
|
257,249
|
638,056
|
||||||||
Exchange (gain) loss
|
137,241
|
(406,832
|
)
|
32,999
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable-trade
|
(22,703
|
)
|
49,155
|
88,445
|
||||||||
Inventory
|
9,329,998
|
1,034,430
|
(2,978,285
|
)
|
||||||||
Prepaid expenses
|
596,071
|
71,915
|
66,812
|
|||||||||
Other current assets
|
(96,492
|
)
|
-
|
-
|
||||||||
Accounts payable-trade
|
3,499,627
|
(148,340
|
)
|
764,889
|
||||||||
Accrued expenses and other liabilities
|
(2,718,611
|
)
|
314,937
|
(2,266,301
|
)
|
|||||||
Income taxes, net
|
(1,219,596
|
)
|
(795,609
|
)
|
1,148,313
|
|||||||
Other assets
|
(325,691
|
)
|
583,281
|
365,622
|
||||||||
Operating lease liability
|
(3,388,399
|
)
|
-
|
-
|
||||||||
Total adjustments
|
12,375,074
|
3,373,375
|
(12,669
|
)
|
||||||||
Net cash provided by operating activities
|
10,471,293
|
7,771,740
|
2,465,775
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Purchase of property and equipment
|
(268,961
|
)
|
(1,088,328
|
)
|
(1,691,999
|
)
|
||||||
Purchase of short-term investments
|
(18,094,775
|
)
|
-
|
-
|
||||||||
Proceeds from sales of short-term investments
|
9,095,000
|
-
|
-
|
|||||||||
Proceeds from sales of assets
|
112,589
|
27,939
|
35,963
|
|||||||||
Net cash used in investing activities
|
(9,156,147
|
)
|
(1,060,389
|
)
|
(1,656,036
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from long-term debt
|
-
|
1,596,288
|
-
|
|||||||||
Payments on long-term debt
|
(8,968,018
|
)
|
-
|
-
|
||||||||
Payments on capital lease obligations
|
-
|
-
|
(72,686
|
)
|
||||||||
Repurchase of treasury stock
|
(735,199
|
)
|
(1,653,266
|
)
|
-
|
|||||||
Proceeds from exercise of stock options
|
-
|
-
|
223,404
|
|||||||||
Net cash (used in) provided by financing activities
|
(9,703,217
|
)
|
(56,978
|
)
|
150,718
|
|||||||
Effect of exchange rate changes on cash and cash equivalents
|
222,878
|
(666,879
|
)
|
260,096
|
||||||||
Net (decrease) increase in cash and cash equivalents
|
(8,165,193
|
)
|
5,987,494
|
1,220,553
|
||||||||
Cash and cash equivalents, beginning of period
|
24,070,351
|
18,082,857
|
16,862,304
|
|||||||||
Cash and cash equivalents, end of period
|
$
|
15,905,158
|
$
|
24,070,351
|
$
|
18,082,857
|
For the Years Ended December 31,
|
||||||||||||
2019
|
2018
Restated (1)
|
2017
Restated (1)
|
||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Interest paid during the period
|
$
|
36,260
|
$
|
304,957
|
$
|
205,555
|
||||||
Income tax paid during the period, net of refunds
|
$
|
714,620
|
$
|
1,361,400
|
$
|
2,243,018
|
||||||
Supplemental disclosures of non-cash activity:
|
||||||||||||
Cumulative effect of accounting changes - ASC 842 (1)
|
$
|
(361,816
|
)
|
$
|
-
|
$
|
-
|
|||||
Operating lease assets obtained in exchange for lease liabilities, net
|
$
|
17,328,019
|
$
|
-
|
$
|
-
|
Number of
Shares
Common
Stock
Outstanding
|
Par Value
|
Paid-in Capital
|
Treasury
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
||||||||||||||||||||||
Balance, December 31, 2016 as reported
|
9,193,162
|
$
|
27,142
|
$
|
6,368,279
|
$
|
(10,278,584
|
)
|
$
|
59,469,493
|
$
|
(1,893,129
|
)
|
$
|
53,693,201
|
|||||||||||||
Restatement adjustment (1)
|
-
|
(2,560
|
)
|
(2,891,507
|
)
|
2,894,067
|
(1,869,924
|
)
|
719,389
|
(1,150,535
|
)
|
|||||||||||||||||
Balance, December 31, 2016 as restated (1)
|
9,193,162
|
$
|
24,582
|
$
|
3,476,772
|
$
|
(7,384,517
|
)
|
$
|
57,599,569
|
$
|
(1,173,740
|
)
|
$
|
52,542,666
|
|||||||||||||
Stock-based compensation expense
|
-
|
-
|
239,599
|
-
|
-
|
-
|
239,599
|
|||||||||||||||||||||
Issuance of restricted stock
|
33,300
|
79
|
(79
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Shares issued – stock options exercised
|
44,400
|
107
|
223,297
|
-
|
-
|
-
|
223,404
|
|||||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
2,478,444
|
-
|
2,478,444
|
|||||||||||||||||||||
Foreign currency translation adjustments, net of tax
|
-
|
-
|
-
|
-
|
-
|
411,427
|
411,427
|
|||||||||||||||||||||
Balance, December 31, 2017 as restated (1)
|
9,270,862
|
$
|
24,768
|
$
|
3,939,589
|
$
|
(7,384,517
|
)
|
$
|
60,078,013
|
$
|
(762,313
|
)
|
$
|
55,895,540
|
|||||||||||||
Stock-based compensation expense
|
-
|
-
|
327,629
|
-
|
-
|
-
|
327,629
|
|||||||||||||||||||||
Issuance of restricted stock
|
33,086
|
80
|
(80
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Purchase of treasury stock
|
(243,387
|
)
|
-
|
-
|
(1,653,266
|
)
|
-
|
-
|
(1,653,266
|
)
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
4,398,365
|
-
|
4,398,365
|
|||||||||||||||||||||
Foreign currency translation adjustments, net of tax
|
-
|
-
|
-
|
-
|
-
|
(681,872
|
)
|
(681,872
|
)
|
|||||||||||||||||||
Balance, December 31, 2018 as restated (1)
|
9,060,561
|
$
|
24,848
|
$
|
4,267,138
|
$
|
(9,037,783
|
)
|
$
|
64,476,378
|
$
|
(1,444,185
|
)
|
$
|
58,286,396
|
|||||||||||||
Cumulative effect of accounting change, net of tax (ASC 842)
|
-
|
-
|
-
|
-
|
(361,816
|
)
|
-
|
(361,816
|
)
|
|||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
770,188
|
-
|
-
|
-
|
770,188
|
|||||||||||||||||||||
Issuance of restricted stock
|
93,408
|
224
|
(224
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Purchase of treasury stock
|
(131,782
|
)
|
-
|
-
|
(735,199
|
)
|
-
|
-
|
(735,199
|
)
|
||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
(1,903,781
|
)
|
-
|
(1,903,781
|
)
|
|||||||||||||||||||
Foreign currency translation adjustments, net of tax
|
-
|
-
|
-
|
-
|
-
|
363,639
|
363,639
|
|||||||||||||||||||||
Balance, December 31, 2019
|
9,022,187
|
$
|
25,072
|
$
|
5,037,102
|
$
|
(9,772,982
|
)
|
$
|
62,210,781
|
$
|
(1,080,546
|
)
|
$
|
56,419,427
|
1. |
DESCRIPTION OF BUSINESS
|
2. |
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
|
(1) |
FIFO adjustment: inventory was not correctly stated and was not consistent with the FIFO methodology;
|
(2) |
Freight-in, warehousing and handling expenditures, factory labor and overhead, and freight-out adjustment:
|
|
i. |
warehousing and handling expenditures were not properly capitalized during the first and third quarters but were subsequently corrected on a semi-annual basis in the second and fourth quarters resulting in
the understatement of inventory and net income in the first and third quarters and the overstatement of net income in the second and fourth quarters; and
|
|
ii. |
freight-in, warehousing and handling expenditures, factory labor and overhead, and freight-out costs were being capitalized to inventory using historical standard rates that were not based on the actual costs
incurred in each period resulting in misstatements;
|
(3) |
Inventory reserve adjustment: Tandy’s accounting policy is to carry inventory at the lower of cost or net realizable value. Management noted inventory reserve levels did not reflect the Company’s accounting policy of carrying inventory
at the lower of cost or net realizable value. This resulted in cumulative understatements of inventory.
|
(4) |
Sales returns: management noted estimates for sales returns had not been accounted for until November 2018. Using historical sales return trends for 2017 and 2018, management has estimated a sales return liability along with a
corresponding inventory asset for all restatement periods. In addition, estimated sales returns previously recorded in the fourth quarter of 2018 were incorrectly presented on a net basis in cost of sales and have since been restated to
reflect accounting on a gross basis in both net sales and cost of sales.
|
(5) |
Warehousing and handling expenditures were classified as operating expenses, resulting in overstatement of operating expenses in all periods. These costs have been reclassified to cost of sales since the inventory restatement in
adjustment (2) above is properly adjusting the inventory balance for such costs with the offset recorded to cost of sales. There was no impact to net income (loss) related to this reclassification.
|
(6) |
Management noted the 2018 income tax provision included tax effected items related to the previous 2017 tax year, including adjustments related to the TCJA which was enacted on December 22, 2017, among other smaller tax correcting
adjustments. Management noted the 2017 income tax provision had misstatements related not only to TCJA but also related to the recognition of UTP liability and related interest expense among other smaller tax correcting adjustments. Also,
income tax restatement adjustments were made to reflect the tax effect of the pre-tax restatement adjustments for 2018 and 2017.
|
(7) |
There were misstatements related to the recognition of accrued paid-time-off (“PTO”) resulting in understatement of accrued expenses and other liabilities as well as other misstatements primarily related to recognition of other accrued
operating expenses, payroll related costs, long-term debt classification, cash cutoff for outstanding checks, break out of impairment expense previously included in operating expenses, and reclass of leasehold improvements from prepaid
expenses to property and equipment, all of which are being corrected in connection with the restatement of previously issued financial statements.
|
(8) |
During the first quarter of 2019, we adopted the new lease accounting standard under Topic 842. Management noted as part of the adoption that the Company did not ensure the appropriateness of inputs
being used to calculate the present value of lease payments over the lease terms. This resulted in the misstatement of operating lease assets, and the current and long-term portion of operating lease liabilities upon initial recognition
on January 1, 2019.
|
(9) |
Foreign currency gains and losses associated with the activity of the Company’s Canadian subsidiary were incorrectly classified as a component of accumulated other comprehensive income (loss). These gains and losses have been restated
and are included in net income (loss).
|
(10) |
A number of shares of the Company’s common stock were repurchased by the Company and cancelled prior to 2010. Management noted these repurchases were incorrectly accounted for as treasury stock. The number of shares issued, and the
number of shares held in treasury, were both overstated by 993,623 shares. The number of shares outstanding has been properly presented in all periods. This correction will not result in any change to net stockholders’ equity, nor will it
affect any weighted average shares outstanding calculations used in the determination of earnings per share.
|
Increase (Decrease) in Net income:
|
2018
|
2017
|
||||||
Inventory adjustments (1)
|
$
|
255,372
|
$
|
(3,127,495
|
)
|
|||
Sales returns, gift cards and class fees
|
105,382
|
99,327
|
||||||
Operating expenses (2)
|
2,059,463
|
2,163,065
|
||||||
Impairment expense
|
(285,477
|
)
|
-
|
|||||
Other expense
|
373,382
|
40,255
|
||||||
Total adjustments before tax
|
2,508,122
|
(824,848
|
)
|
|||||
Income tax expense from adjustments
|
73,585
|
1,148,459
|
||||||
Increase (decrease) in net income
|
$
|
2,434,537
|
$
|
(1,973,307
|
)
|
|||
(1) Inventory adjustments due to:
|
||||||||
FIFO adjustment
|
$
|
843,598
|
$
|
(88,548
|
)
|
|||
Freight-in, warehousing and handling expenditures, factory labor and overhead, and freight-out
|
503,078
|
(619,172
|
)
|
|||||
Inventory reserve
|
980,000
|
-
|
||||||
Sales returns
|
104,105
|
(19,999
|
)
|
|||||
Other
|
19,710
|
(223,895
|
)
|
|||||
Warehouse and handling reclass
|
(2,195,119
|
)
|
(2,175,881
|
)
|
||||
$
|
255,372
|
$
|
(3,127,495
|
)
|
||||
(2) Operating expense adjustments due to:
|
||||||||
Warehouse and handling reclass
|
$
|
2,195,119
|
$
|
2,175,881
|
||||
Reclass to impairment expense
|
285,477
|
-
|
||||||
Accrued expenses
|
(377,912
|
)
|
51,375
|
|||||
PTO Accrual
|
(16,930
|
)
|
(38,647
|
)
|
||||
Other
|
(26,291
|
)
|
(25,544
|
)
|
||||
$
|
2,059,463
|
$
|
2,163,065
|
FIFO adjustment
|
$
|
(786,690
|
)
|
|
Freight-in, warehousing and handling expenditures, factory labor and overhead, and freight-out
|
(442,150
|
)
|
||
Inventory reserve
|
980,000
|
|||
Sales returns
|
(172,494
|
)
|
||
Income tax benefit
|
33,823
|
|||
Accruals and other
|
(852,872
|
)
|
||
Decrease to retained earnings
|
$
|
(1,240,383
|
)
|
For the Year Ended December 31, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
83,098,187
|
$
|
105,382
|
(4)(7)
|
$
|
83,203,569
|
||||||||
Cost of sales
|
32,517,996
|
(255,372
|
)
|
(1)(2)(3)(4)(5)(7)
|
32,262,624
|
||||||||||
Gross profit
|
50,580,191
|
360,754
|
50,940,945
|
||||||||||||
Operating expenses
|
46,751,728
|
(2,059,463
|
)
|
(5)(7)
|
44,692,265
|
||||||||||
Impairment expense
|
-
|
285,477
|
(7)
|
285,477
|
|||||||||||
Income from operations
|
3,828,463
|
2,134,740
|
5,963,203
|
||||||||||||
Other (income) expense:
|
|||||||||||||||
Interest expense
|
304,957
|
-
|
304,957
|
||||||||||||
Other, net
|
(180,191
|
)
|
(373,382
|
)
|
(9)
|
(553,573
|
)
|
||||||||
Total other (income) expense
|
124,766
|
(373,382
|
)
|
(248,616
|
)
|
||||||||||
Income before income taxes
|
3,703,697
|
2,508,122
|
6,211,819
|
||||||||||||
Provision for income taxes
|
1,739,869
|
73,585
|
(6)
|
1,813,454
|
|||||||||||
Net income
|
$
|
1,963,828
|
$
|
2,434,537
|
|
$
|
4,398,365 | ||||||||
Foreign currency translation adjustments, net of tax
|
(548,557
|
)
|
(133,315
|
)
|
(9)
|
(681,872
|
)
|
||||||||
Comprehensive income
|
$
|
1,415,271
|
$
|
2,301,222
|
$
|
3,716,493
|
|||||||||
Net income per common share:
|
|||||||||||||||
Basic
|
$
|
0.21
|
$
|
0.27
|
$
|
0.48
|
|||||||||
Diluted
|
$
|
0.21
|
$
|
0.26
|
$
|
0.48
|
|||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||
Basic
|
9,185,203
|
9,185,203
|
9,185,203
|
||||||||||||
Diluted
|
9,185,662
|
9,205,008
|
9,205,008
|
For the Year Ended December 31, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Cash flows from operating activities:
|
|||||||||||||||
Net income
|
$
|
1,963,828
|
$
|
2,434,537
|
$
|
4,398,365
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||||||
Depreciation and amortization
|
1,797,281
|
1,481
|
(7)
|
1,798,762
|
|||||||||||
Impairment of goodwill and long-lived assets
|
285,477
|
-
|
285,477
|
||||||||||||
Loss on disposal of assets
|
1,321
|
-
|
1,321
|
||||||||||||
Stock-based compensation
|
327,629
|
-
|
327,629
|
||||||||||||
Deferred income taxes
|
(90,997
|
)
|
348,246
|
(6)(9)
|
257,249
|
||||||||||
Exchange (gain) loss
|
27,984
|
(434,816
|
)
|
(9)
|
(406,832
|
)
|
|||||||||
Changes in operating assets and liabilities:
|
|||||||||||||||
Accounts receivable - trade
|
53,042
|
(3,887
|
)
|
(7)
|
49,155
|
||||||||||
Inventory
|
3,443,921
|
(2,409,491
|
)
|
(1)(2)(3)(4)
|
1,034,430
|
||||||||||
Prepaid expenses
|
239,082
|
(167,167
|
)
|
(6)(7)
|
71,915
|
||||||||||
Other current assets
|
27,821
|
(27,821
|
)
|
(7)
|
-
|
||||||||||
Accounts payable - trade
|
(197,960
|
)
|
49,620
|
(7)
|
(148,340
|
)
|
|||||||||
Accrued expenses and other liabilities
|
(181,959
|
)
|
496,896
|
(4)(7)
|
314,937
|
||||||||||
Income taxes
|
(308,129
|
)
|
(487,480
|
)
|
(6)
|
(795,609
|
)
|
||||||||
Other assets
|
(3,690
|
)
|
586,971
|
(7)
|
583,281
|
||||||||||
Total adjustments
|
5,420,823
|
(2,047,448
|
)
|
3,373,375
|
|||||||||||
Net cash provided by operating activities
|
7,384,651
|
387,089
|
7,771,740
|
||||||||||||
Cash flows from investing activities:
|
|||||||||||||||
Purchase of property and equipment
|
(1,091,433
|
)
|
3,105
|
(7)
|
(1,088,328
|
)
|
|||||||||
Proceeds from sale of assets
|
27,396
|
543
|
(7)
|
27,939
|
|||||||||||
Net cash used in (provided by) investing activities
|
(1,064,037
|
)
|
3,648
|
(1,060,389
|
)
|
||||||||||
Cash flows from financing activities:
|
|||||||||||||||
Proceeds from long-term debt
|
1,596,288
|
-
|
1,596,288
|
||||||||||||
Repurchase of treasury stock
|
(1,653,266
|
)
|
-
|
(1,653,266
|
)
|
||||||||||
Net cash used in financing activities
|
(56,978
|
)
|
-
|
(56,978
|
)
|
||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(530,543
|
)
|
(136,336
|
)
|
(9)
|
(666,879
|
)
|
||||||||
Net increase in cash and cash equivalents
|
5,733,093
|
254,401
|
5,987,494
|
||||||||||||
Cash and cash equivalents, beginning of period
|
18,337,258
|
(254,401
|
)
|
18,082,857
|
|||||||||||
Cash and cash equivalents, end of period
|
$
|
24,070,351
|
$
|
-
|
$
|
24,070,351
|
|||||||||
Supplemental disclosures of cash flow information:
|
|||||||||||||||
Interest paid during the period
|
$
|
304,957
|
$
|
-
|
$
|
304,957
|
|||||||||
Income tax paid during the period, net of refunds
|
$
|
2,138,995
|
$
|
(777,595
|
)
|
$
|
1,361,400
|
For the Year Ended December 31, 2017
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
82,321,268
|
$
|
99,327
|
(4)(7)
|
$
|
82,420,595
|
||||||||
Cost of sales
|
30,207,439
|
3,127,495
|
(1)(2)(4)(5)
|
33,334,934
|
|||||||||||
Gross profit (loss)
|
52,113,829
|
(3,028,168
|
)
|
49,085,661
|
|||||||||||
Operating expenses
|
44,872,007
|
(2,163,065
|
)
|
(5)(7)
|
42,708,942
|
||||||||||
Income (loss) from operations
|
7,241,822
|
(865,103
|
)
|
6,376,719
|
|||||||||||
Other (income) expense:
|
|||||||||||||||
Interest expense
|
205,555
|
-
|
205,555
|
||||||||||||
Other, net
|
(126,857
|
)
|
(40,255
|
)
|
(9)
|
(167,112
|
)
|
||||||||
Total other (income) expense
|
78,698
|
(40,255
|
)
|
38,443
|
|||||||||||
Income (loss) before income taxes
|
7,163,124
|
(824,848
|
)
|
6,338,276
|
|||||||||||
Provision for income taxes
|
2,711,373
|
1,148,459
|
(6)
|
3,859,832
|
|||||||||||
Net income (loss)
|
$
|
4,451,751
|
$
|
(1,973,307
|
)
|
$
|
2,478,444
|
||||||||
Foreign currency translation adjustments, net of tax
|
931,026
|
(519,599
|
)
|
(9)
|
411,427
|
||||||||||
Comprehensive income (loss)
|
$
|
5,382,777
|
$
|
(2,492,906
|
)
|
$
|
2,889,871
|
||||||||
Net income (loss) per common share:
|
|||||||||||||||
Basic
|
$
|
0.48
|
$
|
(0.21
|
)
|
$
|
0.27
|
||||||||
Diluted
|
$
|
0.48
|
$
|
(0.21
|
)
|
$
|
0.27
|
||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||
Basic
|
9,242,092
|
9,242,092
|
9,242,092
|
||||||||||||
Diluted
|
9,256,810
|
9,245,537
|
9,245,537
|
For the Year Ended December 31, 2017
|
|||||||||||||||
2017
As Reported
|
2017
Adjustments
|
2017
As Restated
|
|||||||||||||
Cash flows from operating activities:
|
|||||||||||||||
Net income (loss)
|
$
|
4,451,751
|
$
|
(1,973,307
|
)
|
$
|
2,478,444
|
||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|||||||||||||||
Depreciation and amortization
|
1,875,102
|
8,941
|
(7)
|
1,884,043
|
|||||||||||
Loss on disposal of assets
|
3,139
|
-
|
3,139
|
||||||||||||
Stock-based compensation
|
239,599
|
-
|
239,599
|
||||||||||||
Deferred income taxes
|
(215,576
|
)
|
853,632
|
(6)(9)
|
638,056
|
||||||||||
Exchange loss
|
29,848
|
3,151
|
(9)
|
32,999
|
|||||||||||
Changes in operating assets and liabilities:
|
|||||||||||||||
Accounts receivable - trade
|
99,772
|
(11,327
|
)
|
(7)
|
88,445
|
||||||||||
Inventory
|
(4,133,658
|
)
|
1,155,373
|
(1)(2)(4)
|
(2,978,285
|
)
|
|||||||||
Prepaid expenses
|
135,713
|
(68,901
|
)
|
(6)(7)
|
66,812
|
||||||||||
Other current assets
|
(48,797
|
)
|
48,797
|
(7)
|
-
|
||||||||||
Accounts payable - trade
|
(208,434
|
)
|
973,323
|
(7)
|
764,889
|
||||||||||
Accrued expenses and other liabilities
|
(983,710
|
)
|
(1,282,591
|
)
|
(4)(7)
|
(2,266,301
|
)
|
||||||||
Income taxes
|
923,016
|
225,297
|
(6)
|
1,148,313
|
|||||||||||
Other assets
|
(43,669
|
)
|
409,291
|
(7)
|
365,622
|
||||||||||
Total adjustments
|
(2,327,655
|
)
|
2,314,986
|
(12,669
|
)
|
||||||||||
Net cash provided by (used in) operating activities
|
2,124,096
|
341,679
|
2,465,775
|
||||||||||||
Cash flows from investing activities:
|
|||||||||||||||
Purchase of property and equipment
|
(1,689,645
|
)
|
(2,354
|
)
|
(7)
|
(1,691,999
|
)
|
||||||||
Proceeds from sale of assets
|
35,963
|
-
|
35,963
|
||||||||||||
Net cash used in investing activities
|
(1,653,682
|
)
|
(2,354
|
)
|
(1,656,036
|
)
|
|||||||||
Cash flows from financing activities:
|
|||||||||||||||
Payments on capital lease obligations
|
(72,686
|
)
|
-
|
(72,686
|
)
|
||||||||||
Proceeds from exercise of stock options
|
223,404
|
-
|
223,404
|
||||||||||||
Net cash provided by financing activities
|
150,718
|
-
|
150,718
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
853,822
|
(593,726
|
)
|
(9)
|
260,096
|
||||||||||
Net (decrease) increase in cash and cash equivalents
|
1,474,954
|
(254,401
|
)
|
1,220,553
|
|||||||||||
Cash and cash equivalents, beginning of period
|
16,862,304
|
-
|
16,862,304
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
18,337,258
|
$
|
(254,401
|
)
|
$
|
18,082,857
|
||||||||
Supplemental disclosures of cash flow information:
|
|||||||||||||||
Interest paid during the period
|
$
|
205,555
|
$
|
-
|
$
|
205,555
|
|||||||||
Income tax paid during the period, net of refunds
|
$
|
1,788,357
|
$
|
454,661
|
$
|
2,243,018
|
For the Three Months Ended March 31, 2019
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
20,784,652
|
$
|
156,670
|
(4)
|
$
|
20,941,322
|
||||||||
Cost of sales
|
8,333,847
|
362,805
|
(1) (2)(3)(4)(5)(7)
|
8,696,652
|
|||||||||||
Gross profit
|
12,450,805
|
(206,135
|
)
|
12,244,670
|
|||||||||||
Operating expenses
|
11,281,377
|
(1,249,724
|
)
|
(5)(7)(8)
|
10,031,653
|
||||||||||
Income (loss) from operations
|
1,169,428
|
1,043,589
|
2,213,017
|
||||||||||||
Other (income) expense:
|
|||||||||||||||
Interest expense
|
32,383
|
-
|
32,383
|
||||||||||||
Other, net
|
(33,041
|
)
|
142,659
|
(7)(9)
|
109,618
|
||||||||||
Total other (income) expense
|
(658
|
)
|
142,659
|
142,001
|
|||||||||||
Income (loss) before income taxes
|
1,170,086
|
900,930
|
2,071,016
|
||||||||||||
Provision (benefit) for income taxes
|
301,123
|
250,082
|
(6)
|
551,205
|
|||||||||||
Net income (loss)
|
$
|
868,963
|
$
|
650,848
|
$
|
1,519,811
|
|||||||||
Foreign currency translation adjustments, net of tax
|
287,295
|
27,198
|
|
(9)
|
314,493
|
|
|||||||||
Comprehensive income (loss)
|
$
|
1,156,258
|
$
|
678,046
|
$
|
1,834,304
|
|||||||||
Net income (loss) per common share:
|
|||||||||||||||
Basic
|
$
|
0.10
|
$
|
0.07
|
$
|
0.17
|
|||||||||
Diluted
|
$
|
0.10
|
$
|
0.07
|
$
|
0.17
|
|||||||||
Basic
|
9,009,752
|
9,009,752
|
9,009,752
|
||||||||||||
Diluted
|
9,010,037
|
9,011,107
|
9,011,107
|
For the Three Months Ended March 31, 2019
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Cash flows from operating activities:
|
|||||||||||||||
Net income (loss)
|
$
|
868,963
|
$
|
650,848
|
$
|
1,519,811
|
|||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||||||||||
Depreciation and amortization
|
495,449
|
(1,154
|
)
|
(7)
|
494,295
|
||||||||||
Right-of-use asset amortization
|
-
|
865,050
|
(8)
|
865,050
|
|||||||||||
(Gain) loss on disposal of assets
|
(3,794
|
)
|
-
|
(3,794
|
)
|
||||||||||
Stock-based compensation
|
185,825
|
-
|
185,825
|
||||||||||||
Deferred income taxes
|
(33,861
|
)
|
217,654
|
(6)(9)
|
183,793
|
||||||||||
Exchange (gain) loss
|
2,154
|
134,113
|
(7)(9)
|
136,267
|
|||||||||||
Changes in operating assets and liabilities:
|
|
|
|
||||||||||||
Accounts receivable-trade
|
(48,367
|
)
|
(7,696
|
)
|
(7)
|
(56,063
|
)
|
||||||||
Inventory
|
3,302,954
|
(130,791
|
)
|
(1)(2)(3)(4)
|
3,172,163
|
||||||||||
Prepaid expenses
|
(292,613
|
)
|
325,165
|
(7)
|
32,552
|
||||||||||
Other current assets
|
(12,835
|
)
|
(180,812
|
)
|
(7)
|
(193,647
|
)
|
||||||||
Accounts payable-trade
|
(318,294
|
)
|
(962,853
|
)
|
(7)
|
(1,281,147
|
)
|
||||||||
Accrued expenses and other liabilities
|
(1,205,241
|
)
|
49,346
|
(4)(7)
|
(1,155,895
|
)
|
|||||||||
Income taxes
|
95,767
|
12,943
|
(6)
|
108,710
|
|||||||||||
Other assets
|
6,446
|
(48,416
|
)
|
(7)
|
(41,970
|
)
|
|||||||||
Operating lease liability
|
-
|
(833,690
|
)
|
(8)
|
(833,690
|
)
|
|||||||||
Total adjustments
|
2,173,590
|
(561,141
|
)
|
1,612,449
|
|||||||||||
Net cash provided by operating activities
|
3,042,553
|
89,707
|
3,132,260
|
||||||||||||
Cash flows from investing activities:
|
|||||||||||||||
Purchase of property and equipment
|
(30,893
|
)
|
(7
|
)
|
(7)
|
(30,900
|
)
|
||||||||
Purchase of short-term investments
|
(4,999,750
|
)
|
-
|
(4,999,750
|
)
|
||||||||||
Proceeds from sales of assets
|
12,552
|
-
|
12,552
|
||||||||||||
Net cash used in investing activities
|
(5,018,091
|
)
|
(7
|
)
|
(5,018,098
|
)
|
|||||||||
Cash flows from financing activities:
|
|||||||||||||||
Payments on long-term debt
|
(8,968,018
|
)
|
-
|
(8,968,018
|
)
|
||||||||||
Repurchase of treasury stock
|
(714,617
|
)
|
-
|
(714,617
|
)
|
||||||||||
Net cash used in financing activities
|
(9,682,635
|
)
|
-
|
(9,682,635
|
)
|
||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
267,195
|
(89,700
|
)
|
(9)
|
177,495
|
||||||||||
Net (decrease) increase in cash and cash equivalents
|
(11,390,978
|
)
|
-
|
(11,390,978
|
)
|
||||||||||
Cash and cash equivalents, beginning of period
|
24,070,351
|
-
|
24,070,351
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
12,679,373
|
$
|
-
|
$
|
12,679,373
|
Three Months Ended September 30, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
18,887,099
|
$
|
(8,836
|
)
|
(4)
|
18,878,263
|
||||||||
Cost of sales
|
7,040,266
|
(57,886
|
)
|
(1)(2)(3)(4)(5)
|
6,982,380
|
||||||||||
Gross profit
|
11,846,833
|
49,050
|
11,895,883
|
||||||||||||
Operating expenses
|
11,531,389
|
(535,400
|
)
|
(5)(7)
|
10,995,989
|
||||||||||
Income from operations
|
315,444
|
584,450
|
899,894
|
||||||||||||
Other expense:
|
|||||||||||||||
Interest expense
|
80,710
|
-
|
80,710
|
||||||||||||
Other, net
|
(40,846
|
)
|
-
|
(40,846
|
)
|
||||||||||
Total other expense
|
39,864
|
-
|
39,864
|
||||||||||||
Income before income taxes
|
275,580
|
584,450
|
860,030
|
||||||||||||
Provision (benefit) for income taxes
|
397,114
|
(145,785
|
)
|
(6)
|
251,329
|
||||||||||
Net income (loss)
|
$
|
(121,534
|
)
|
$
|
730,235
|
$
|
608,701
|
||||||||
Foreign currency translation adjustments, net of tax
|
118,165
|
(29,541
|
)
|
(9)
|
88,624
|
||||||||||
Comprehensive income (loss)
|
$
|
(3,369
|
)
|
$
|
700,694
|
$
|
697,325
|
||||||||
Net income (loss) per common share:
|
|||||||||||||||
Basic
|
$
|
(0.01
|
)
|
$
|
0.08
|
$
|
0.07
|
||||||||
Diluted
|
$
|
(0.01
|
)
|
$
|
0.08
|
$
|
0.07
|
||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||
Basic
|
9,154,209
|
9,154,215
|
9,154,215
|
||||||||||||
Diluted
|
9,155,031
|
9,160,022
|
9,160,022
|
Nine Months Ended September 30, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
58,353,784
|
$
|
212,279
|
(4)
|
$
|
58,566,063
|
||||||||
Cost of sales
|
20,545,547
|
1,202,081
|
(1)(2)(3)(4)(5)(7)
|
21,747,628
|
|||||||||||
Gross profit
|
37,808,237
|
(989,802
|
)
|
36,818,435
|
|||||||||||
Operating expenses
|
33,742,351
|
(1,460,053
|
)
|
(5)(7)
|
32,282,298
|
||||||||||
Income from operations
|
4,065,886
|
470,251
|
4,536,137
|
||||||||||||
Other (income) expense:
|
|||||||||||||||
Interest expense
|
223,534
|
-
|
223,534
|
||||||||||||
Other, net
|
(126,459
|
)
|
(199,607
|
)
|
(9)
|
(326,066
|
)
|
||||||||
Total other (income) expense
|
97,075
|
(199,607
|
)
|
(102,532
|
)
|
||||||||||
Income before income taxes
|
3,968,811
|
669,858
|
4,638,669
|
||||||||||||
Provision (benefit) for income taxes
|
1,376,634
|
(21,065
|
)
|
(6)
|
1,355,569
|
||||||||||
Net income
|
$
|
2,592,177
|
$
|
690,923
|
$
|
3,283,100
|
|||||||||
Foreign currency translation adjustments, net of tax
|
(154,642
|
)
|
(100,500
|
)
|
(9)
|
(255,142
|
)
|
||||||||
Comprehensive income
|
$
|
2,437,535
|
$
|
590,423
|
$
|
3,027,958
|
|||||||||
Net income per common share:
|
|||||||||||||||
Basic
|
$
|
0.28
|
$
|
0.08
|
$
|
0.36
|
|||||||||
Diluted
|
$
|
0.28
|
$
|
0.08
|
$
|
0.36
|
|||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||
Basic
|
9,199,173
|
9,199,173
|
9,199,173
|
||||||||||||
Diluted
|
9,199,959
|
9,201,577
|
9,201,577
|
For the Nine Months Ended September 30, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Cash flows from operating activities:
|
|||||||||||||||
Net income
|
$
|
2,592,177
|
$
|
690,923
|
$
|
3,283,100
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||||||||||
Depreciation and amortization
|
1,310,774
|
2,056
|
(7)
|
1,312,830
|
|||||||||||
(Gain) loss on disposal of assets
|
4,556
|
-
|
4,556
|
||||||||||||
Stock-based compensation
|
76,447
|
-
|
76,447
|
||||||||||||
Deferred income taxes
|
(115,460
|
)
|
(174,831
|
)
|
(6)(9)
|
(290,291
|
)
|
||||||||
Exchange (gain) loss
|
(93,163
|
)
|
(43,735
|
)
|
(9)
|
(136,898
|
)
|
||||||||
Changes in operating assets and liabilities:
|
|||||||||||||||
Accounts receivable-trade
|
42,600
|
(53,500
|
)
|
(7)
|
(10,900
|
)
|
|||||||||
Inventory
|
(3,409,433
|
)
|
(552,298
|
)
|
(1)(2)(4)
|
(3,961,731
|
)
|
||||||||
Prepaid expenses
|
125,034
|
(90,533
|
)
|
(6)(7)
|
34,501
|
||||||||||
Other current assets
|
(111,688
|
)
|
111,688
|
(7)
|
-
|
||||||||||
Accounts payable-trade
|
28,525
|
1,374,694
|
(7)
|
1,403,219
|
|||||||||||
Accrued expenses and other liabilities
|
(609,577
|
)
|
(1,043,249
|
)
|
(4)(7)
|
(1,652,826
|
)
|
||||||||
Income taxes
|
(475,082
|
)
|
56,112
|
(6)
|
(418,970
|
)
|
|||||||||
Other assets
|
(5,736
|
)
|
358,049
|
(7)
|
352,313
|
||||||||||
Total adjustments
|
(3,232,203
|
)
|
(55,547
|
)
|
(3,287,750
|
)
|
|||||||||
Net cash provided (used) by operating activities
|
(640,026
|
)
|
635,376
|
(4,650
|
)
|
||||||||||
Cash flows from investing activities:
|
|||||||||||||||
Purchase of property and equipment
|
(887,679
|
)
|
-
|
(887,679
|
)
|
||||||||||
Proceeds from sales of assets
|
17,718
|
-
|
17,718
|
||||||||||||
Net cash used in investing activities
|
(869,961
|
)
|
-
|
(869,961
|
)
|
||||||||||
Cash flows from financing activities:
|
|||||||||||||||
Proceeds from long-term debt
|
982,939
|
-
|
982,939
|
||||||||||||
Repurchase of treasury stock
|
(995,238
|
)
|
-
|
(995,238
|
)
|
||||||||||
Net cash used in financing activities
|
(12,299
|
)
|
-
|
(12,299
|
)
|
||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
(380,975
|
)
|
(9)
|
(380,975
|
)
|
|||||||||
Net (decrease) increase in cash and cash equivalents
|
(1,522,286
|
)
|
254,401
|
(1,267,885
|
)
|
||||||||||
Cash and cash equivalents, beginning of period
|
18,337,258
|
(254,401
|
)
|
18,082,857
|
|||||||||||
Cash and cash equivalents, end of period
|
$
|
16,814,972
|
$
|
-
|
$
|
16,814,972
|
Three Months Ended June 30, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
19,177,767
|
$
|
9,455
|
(4)
|
$
|
19,187,222
|
||||||||
Cost of sales
|
6,059,325
|
894,405
|
(1)(2)(3)(4)(5)
|
6,953,730
|
|||||||||||
Gross profit (loss)
|
13,118,442
|
(884,950
|
)
|
12,233,492
|
|||||||||||
Operating expenses
|
11,136,961
|
(485,575
|
)
|
(5)(7)
|
10,651,386
|
||||||||||
Income (loss) from operations
|
1,981,481
|
(399,375
|
)
|
1,582,106
|
|||||||||||
Other (income) expense:
|
|||||||||||||||
Interest expense
|
78,182
|
-
|
78,182
|
||||||||||||
Other, net
|
(46,741
|
)
|
(85,101
|
)
|
(9)
|
(131,842
|
)
|
||||||||
Total other (income) expense
|
31,441
|
(85,101
|
)
|
(53,660
|
)
|
||||||||||
Income (loss) before income taxes
|
1,950,040
|
(314,274
|
)
|
1,635,766
|
|||||||||||
Provision (benefit) for income taxes
|
509,948
|
(31,925
|
)
|
(6)
|
478,023
|
||||||||||
Net income (loss)
|
$
|
1,440,092
|
$
|
(282,349
|
)
|
$
|
1,157,743
|
||||||||
Foreign currency translation adjustments, net of tax
|
(294,598
|
)
|
9,824
|
(9)
|
(284,774
|
)
|
|||||||||
Comprehensive income (loss)
|
$
|
1,145,494
|
$
|
(272,525
|
)
|
$
|
872,969
|
||||||||
Net income (loss) per common share:
|
|||||||||||||||
Basic
|
$
|
0.15
|
$
|
(0.02
|
)
|
$
|
0.13
|
||||||||
Diluted
|
$
|
0.15
|
$
|
(0.02
|
)
|
$
|
0.13
|
||||||||
Basic
|
9,180,076
|
9,180,076
|
9,180,076
|
||||||||||||
Diluted
|
9,180,727
|
9,182,527
|
9,182,527
|
Six Months Ended June 30, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
39,466,685
|
$
|
221,115
|
(4)
|
$
|
39,687,800
|
||||||||
Cost of sales
|
13,505,281
|
1,259,967
|
(1)(2)(3)(4)(5)(7)
|
14,765,248
|
|||||||||||
Gross profit (loss)
|
25,961,404
|
(1,038,852
|
)
|
24,922,552
|
|||||||||||
Operating expenses
|
22,210,962
|
(924,653
|
)
|
(5)(7)
|
21,286,309
|
||||||||||
Income (loss) from operations
|
3,750,442
|
(114,199
|
)
|
3,636,243
|
|||||||||||
Other (income) expense:
|
|
|
|
||||||||||||
Interest expense
|
142,824
|
-
|
142,824
|
||||||||||||
Other, net
|
(85,613
|
)
|
(199,607
|
)
|
(9)
|
(285,220
|
)
|
||||||||
Total other (income) expense
|
57,211
|
(199,607
|
)
|
(142,396
|
)
|
||||||||||
Income (loss) before income taxes
|
3,693,231
|
85,408
|
3,778,639
|
||||||||||||
Provision (benefit) for income taxes
|
979,520
|
124,720
|
(6)
|
1,104,240
|
|||||||||||
Net income (loss)
|
$
|
2,713,711
|
$
|
(39,312
|
)
|
$
|
2,674,399
|
||||||||
Foreign currency translation adjustments, net of tax
|
(272,807
|
)
|
(70,959
|
)
|
(9)
|
(343,766
|
)
|
||||||||
Comprehensive income (loss)
|
$
|
2,440,904
|
$
|
(110,271
|
)
|
$
|
2,330,633
|
||||||||
Net income (loss) per common share:
|
|||||||||||||||
Basic
|
$
|
0.29
|
$
|
0.01
|
$
|
0.29
|
|||||||||
Diluted
|
$
|
0.29
|
$
|
0.01
|
$
|
0.29
|
|||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||
Basic
|
9,222,028
|
9,222,028
|
9,222,028
|
||||||||||||
Diluted
|
9,222,533
|
9,223,086
|
9,223,086
|
Six Months Ended June 30, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Cash flows from operating activities:
|
|||||||||||||||
Net income (loss)
|
$
|
2,713,711
|
$
|
(39,312
|
)
|
$
|
2,674,399
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||||||
Depreciation and amortization
|
878,955
|
1,139
|
(7)
|
880,094
|
|||||||||||
(Gain) loss on disposal of assets
|
4,556
|
-
|
4,556
|
||||||||||||
Stock-based compensation
|
52,688
|
-
|
52,688
|
||||||||||||
Deferred income taxes
|
(96,057
|
)
|
(58,586
|
)
|
(6)(9)
|
(154,643
|
)
|
||||||||
Exchange (gain) loss
|
(268,321
|
)
|
52,455
|
(9)
|
(215,866
|
)
|
|||||||||
Changes in operating assets and liablities:
|
|||||||||||||||
Accounts receivable-trade
|
(35,043
|
)
|
12,509
|
(7)
|
(22,534
|
)
|
|||||||||
Inventory
|
(709,072
|
)
|
20,638
|
(1)(2)(4)
|
(688,434
|
)
|
|||||||||
Prepaid expenses
|
98,203
|
67,654
|
(6)(7)
|
165,857
|
|||||||||||
Other current assets
|
113,570
|
(113,570
|
)
|
(7)
|
-
|
||||||||||
Accounts payable-trade
|
(189,928
|
)
|
911,645
|
(7)
|
721,717
|
||||||||||
Accrued expenses and other liabilities
|
(1,258,506
|
)
|
(662,391
|
)
|
(4)(7)
|
(1,920,897
|
)
|
||||||||
Income taxes
|
(255,695
|
)
|
53,044
|
(6)
|
(202,651
|
)
|
|||||||||
Other assets
|
(3,910
|
)
|
426,212
|
(7)
|
422,302
|
||||||||||
Total adjustments
|
(1,668,560
|
)
|
710,749
|
|
(957,811
|
)
|
|||||||||
Net cash provided by operating activities
|
1,045,151
|
671,437
|
1,716,588
|
||||||||||||
Cash flows from investing activities:
|
|||||||||||||||
Purchase of property and equipment
|
(421,861
|
)
|
-
|
(421,861
|
)
|
||||||||||
Proceeds from sales of assets
|
7,028
|
-
|
7,028
|
||||||||||||
Net cash used in investing activities
|
(414,833
|
)
|
-
|
(414,833
|
)
|
||||||||||
Cash flows from financing activities:
|
|||||||||||||||
Proceeds from long-term debt
|
982,938
|
-
|
982,938
|
||||||||||||
Repurchase of treasury stock
|
(995,186
|
)
|
-
|
(995,186
|
)
|
||||||||||
Net cash used in financing activities
|
(12,248
|
)
|
-
|
(12,248
|
)
|
||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
(417,036
|
)
|
(9)
|
(417,036
|
)
|
|||||||||
Net (decrease) increase in cash and cash equivalents
|
618,070
|
254,401
|
872,471
|
||||||||||||
Cash and cash equivalents, beginning of period
|
18,337,258
|
(254,401
|
)
|
18,082,857
|
|||||||||||
Cash and cash equivalents, end of period
|
$
|
18,955,328
|
$
|
-
|
$
|
18,955,328
|
For the Three Months Ended March 31, 2018
|
|||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
|||||||||||||
Net sales
|
$
|
20,288,918
|
$
|
211,660
|
(4)
|
$
|
20,500,578
|
||||||||
Cost of sales
|
7,445,956
|
365,562
|
(1)(2)(3)(4)(5)(7)
|
7,811,518
|
|||||||||||
Gross profit
|
12,842,962
|
(153,902
|
)
|
12,689,060
|
|||||||||||
Operating expenses
|
11,074,001
|
(439,078
|
)
|
(5)(7)
|
10,634,923
|
||||||||||
Income from operations
|
1,768,961
|
285,176
|
2,054,137
|
||||||||||||
Other (income) expense:
|
|||||||||||||||
Interest expense
|
64,642
|
-
|
64,642
|
||||||||||||
Other, net
|
(38,872
|
)
|
(114,506
|
)
|
(9)
|
(153,378
|
)
|
||||||||
Total other (income) expense
|
25,770
|
(114,506
|
)
|
(88,736
|
)
|
||||||||||
Income before income taxes
|
1,743,191
|
399,682
|
2,142,873
|
||||||||||||
Provision for income taxes
|
469,572
|
156,645
|
(6)
|
626,217
|
|||||||||||
Net income
|
$
|
1,273,619
|
$
|
243,037
|
$
|
1,516,656
|
|||||||||
Foreign currency translation adjustments, net of tax
|
21,791
|
(80,783
|
)
|
(9)
|
(58,992
|
)
|
|||||||||
Comprehensive income
|
$
|
1,295,410
|
$
|
162,254
|
$
|
1,457,664
|
|||||||||
Net income per common share:
|
|||||||||||||||
Basic
|
$
|
0.14
|
$
|
0.03
|
$
|
0.16
|
|||||||||
Diluted
|
$
|
0.14
|
$
|
0.03
|
$
|
0.16
|
|||||||||
Weighted average number of shares outstanding:
|
|||||||||||||||
Basic
|
9,264,446
|
9,264,446
|
9,264,446
|
||||||||||||
Diluted
|
9,264,811
|
9,264,604
|
9,264,604
|
For the Three Months Ended March 31, 2018
|
||||||||||||||||
As Reported
|
Adjustments
|
As Restated
|
||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$
|
1,273,619
|
$
|
243,037
|
$
|
1,516,656
|
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
465,522
|
1,111
|
(7)
|
|
466,633
|
|||||||||||
Loss on disposal of assets
|
798
|
1,131
|
(7)
|
|
1,929
|
|||||||||||
Stock-based compensation
|
28,969
|
-
|
28,969
|
|||||||||||||
Deferred income taxes
|
(49,498
|
)
|
132,263
|
(6)
|
|
82,765
|
||||||||||
Exchange (gain) loss
|
2,994
|
(124,717
|
)
|
(9)
|
|
(121,723
|
)
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Accounts receivable - trade
|
(42,110
|
)
|
(256,048
|
)
|
(4)(7)
|
(298,158
|
)
|
|||||||||
Inventory
|
539,337
|
(17,812
|
)
|
(1)(2)(3)(4)(6)
|
521,525
|
|||||||||||
Prepaid expenses
|
(103,058
|
)
|
1,723,149
|
(7)
|
|
1,620,091
|
||||||||||
Other current assets
|
110,617
|
(1,307,715
|
)
|
(7)
|
|
(1,197,098
|
)
|
|||||||||
Accounts payable - trade
|
6,055
|
(1,018,467
|
)
|
(7)
|
|
(1,012,412
|
)
|
|||||||||
Accrued expenses and other liabilities
|
(1,246,439
|
)
|
714,239
|
(4)(7)
|
(532,200
|
)
|
||||||||||
Income taxes
|
146,483
|
(9,979
|
)
|
(6)
|
|
136,504
|
||||||||||
Other assets
|
957
|
76,218
|
(7)
|
|
77,175
|
|||||||||||
Total adjustments
|
(139,373
|
)
|
(86,627
|
)
|
(226,000
|
)
|
||||||||||
Net cash provided by operating activities
|
1,134,246
|
156,410
|
1,290,656
|
|||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(240,020
|
)
|
222,399
|
(7)
|
|
(17,621
|
)
|
|||||||||
Net cash used in (provided by) investing activities
|
(240,020
|
)
|
222,399
|
(17,621
|
)
|
|||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Proceeds from long-term debt
|
540,940
|
-
|
540,940
|
|||||||||||||
Repurchase of treasury stock
|
(540,940
|
)
|
-
|
(540,940
|
)
|
|||||||||||
Net cash used in financing activities
|
-
|
-
|
-
|
|||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
21,394
|
(124,408
|
)
|
(9)
|
|
(103,014
|
)
|
|||||||||
Net increase in cash and cash equivalents
|
915,620
|
254,401
|
1,170,021
|
|||||||||||||
Cash and cash equivalents, beginning of period
|
18,337,258
|
(254,401
|
)
|
18,082,857
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
19,252,878
|
$
|
-
|
$
|
19,252,878
|
3. |
SIGNIFICANT ACCOUNTING POLICIES
|
2019
|
2018
Restated
|
2017
Restated
|
||||||||||
United States
|
$
|
65,745,750
|
$
|
72,563,038
|
$
|
71,473,430
|
||||||
Canada
|
6,513,631
|
7,095,697
|
7,194,116
|
|||||||||
All other countries
|
2,658,779
|
3,544,834
|
3,753,049
|
|||||||||
Net sales
|
$
|
74,918,160
|
$
|
83,203,569
|
$
|
82,420,595
|
|
Years Ended December 31,
|
|||||||||||
|
2019
(1)
|
2018
Restated
|
2017
Restated
|
|||||||||
Numerator:
|
||||||||||||
Net income (loss)
|
$
|
(1,903,781
|
)
|
$
|
4,398,365
|
$
|
2,478,444
|
|||||
Denominator:
|
||||||||||||
Basic weighted-average common shares ouststanding
|
8,973,246
|
9,185,203
|
9,242,092
|
|||||||||
Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan
|
-
|
-
|
177
|
|||||||||
Dilutive effect of service-based restricted stock awards granted to employees under the Plan
|
-
|
19,805
|
3,268
|
|||||||||
Diluted weighted-average common shares outstanding
|
8,973,246
|
9,205,008
|
9,245,537
|
As of December 31, 2019
|
||||||||||||
Gross
|
Accumulated Amortization
|
Net
|
||||||||||
Trademarks/copyrights
|
$
|
554,369
|
$
|
547,369
|
$
|
7,000
|
||||||
TOTAL
|
$
|
554,369
|
$
|
547,369
|
$
|
7,000
|
As of December 31, 2018
|
||||||||||||
Gross
|
Accumulated Amortization
|
Net
|
||||||||||
Trademarks/copyrights
|
$
|
554,369
|
$
|
546,702
|
$
|
7,667
|
||||||
Non-compete agreements
|
153,000
|
144,167
|
8,833
|
|||||||||
TOTAL
|
$
|
707,369
|
$
|
690,869
|
$
|
16,500
|
As of December 31, 2017
|
||||||||||||
Gross
|
Accumulated Amortization
|
Net
|
||||||||||
Trademarks/copyrights
|
$
|
554,369
|
$
|
545,980
|
$
|
8,389
|
||||||
Non-compete agreements
|
153,000
|
142,167
|
10,833
|
|||||||||
TOTAL
|
$
|
707,369
|
$
|
688,147
|
$
|
19,222
|
|
• |
Level 1 – observable inputs that reflect quoted prices in active markets for identical assets or liabilities.
|
|
• |
Level 2 – significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs
that are observable or can be corroborated by observable market data.
|
|
• |
Level 3 – significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants.
|
December 31, 2019
|
December 31, 2018
|
December 31, 2017
|
||||||||||
Restated
|
Restated
|
|||||||||||
On hand:
|
||||||||||||
Finished goods held for sale
|
$
|
20,575,216
|
$
|
31,263,806
|
$
|
32,042,251
|
||||||
Raw materials and work in process
|
717,053
|
919,202
|
1,155,680
|
|||||||||
Inventory in transit
|
2,749,558
|
1,119,541
|
1,348,153
|
|||||||||
TOTAL
|
$
|
24,041,827
|
$
|
33,302,549
|
$
|
34,546,084
|
December 31, 2019
|
December 31, 2018
|
December 31, 2017
|
||||||||||
Restated
|
Restated
|
|||||||||||
Building
|
$
|
9,257,066
|
$
|
9,257,066
|
$
|
9,257,066
|
||||||
Land
|
1,451,133
|
1,451,133
|
1,451,133
|
|||||||||
Leasehold improvements
|
1,828,448
|
1,980,547
|
1,729,281
|
|||||||||
Equipment and machinery
|
6,516,068
|
6,594,487
|
6,447,776
|
|||||||||
Furniture and fixtures
|
8,080,427
|
8,335,926
|
7,907,704
|
|||||||||
Vehicles
|
337,403
|
521,186
|
539,339
|
|||||||||
27,470,545
|
28,140,345
|
27,332,299
|
||||||||||
Lesss: accumulated depreciation
|
(14,551,645
|
)
|
(13,625,261
|
)
|
(11,765,416
|
)
|
||||||
TOTAL
|
$
|
12,918,900
|
$
|
14,515,084
|
$
|
15,566,883
|
December 31, 2019
|
December 31, 2018
|
December 31, 2017
|
||||||||||
Restated
|
Restated
|
|||||||||||
United States
|
$
|
12,540,891
|
$
|
13,849,019
|
$
|
15,038,459
|
||||||
Canada
|
373,083
|
434,201
|
240,560
|
|||||||||
United Kingdom
|
2,654
|
211,368
|
217,254
|
|||||||||
Spain
|
2,272
|
4,308
|
14,639
|
|||||||||
Australia
|
-
|
16,188
|
55,971
|
|||||||||
$
|
12,918,900
|
$
|
14,515,084
|
$
|
15,566,883
|
December 31, 2019
|
December 31, 2018
|
December 31, 2017
|
||||||||||
Accrued Expenses and Other Liabilities
|
Restated
|
Restated
|
||||||||||
Accrued bonuses, PTO and payroll
|
$
|
1,104,757
|
$
|
2,762,170
|
$
|
2,904,294
|
||||||
Deferred revenue
|
-
|
647,277
|
905,657
|
|||||||||
Unearned gift card revenue
|
319,124
|
195,901
|
271,109
|
|||||||||
Estimated returns
|
284,734
|
416,091
|
348,732
|
|||||||||
Sales and payroll taxes payable
|
458,882
|
572,497
|
584,726
|
|||||||||
Exit obligations
|
-
|
150,529
|
-
|
|||||||||
Accrued severance
|
37,782
|
367,387
|
-
|
|||||||||
Accrued vendor payables
|
451,439
|
289,656
|
30,497
|
|||||||||
TOTAL
|
$
|
2,656,718
|
$
|
5,401,508
|
$
|
5,045,015
|
Leases
|
Balance Sheet Classification
|
December 31, 2019
|
||||
Assets:
|
||||||
Non-current
|
Operating lease assets
|
$
|
13,897,422
|
|||
Liabilities:
|
||||||
Current
|
Operating lease liabilities
|
$
|
3,822,748
|
|||
Non-current
|
Operating lease liabilities, noncurrent
|
10,654,631
|
||||
Total lease liabilities
|
$
|
14,477,379
|
Lease Cost
|
Income Statement Classification
|
December 31, 2019
|
||||
Operating lease cost
|
Operating expenses
|
$
|
4,151,220
|
|||
Variable lease cost (1)
|
Operating expenses
|
895,373
|
||||
Total lease cost
|
$
|
5,046,593
|
Maturity of Lease Liabilities
|
December 31, 2019
|
|||
2020
|
$
|
3,891,153
|
||
2021
|
3,282,122
|
|||
2022
|
2,411,124
|
|||
2023
|
1,722,991
|
|||
2024
|
1,309,459
|
|||
Thereafter
|
3,697,717
|
|||
Total lease payments (2)
|
$
|
16,314,566
|
||
Less: Interest
|
(1,837,187
|
)
|
||
Present value of lease liabilities
|
$
|
14,477,379
|
(2) Operating lease payments exclude $0.3 million of legally binding minimum lease payments for leases signed, but not yet commenced as of December 31, 2019.
|
Other Information
|
December 31, 2019
|
|||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||
Operating cash flows used in operating leases
|
$
|
4,078,695
|
||
Operating lease assets obtained in exchange for lease obligations
|
18,076,962
|
December 31, 2018
|
||||
2019
|
$
|
4,417,806
|
||
2020
|
3,750,324
|
|||
2021
|
3,042,779
|
|||
2022
|
2,102,463
|
|||
2023
|
1,289,874
|
|||
Thereafter
|
2,139,218
|
|||
Total minimum lease payments
|
$
|
16,742,464
|
December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Business loan agreement with BOKF – collateralized by real estate; payable as follows:
|
||||||||||||
Line of credit note, as amended, in the maximum principal amount of $15,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.5%; matures September 18, 2024
|
$
|
-
|
$
|
8,968,018
|
$
|
7,371,730
|
||||||
Line of credit note, as amended, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 1.5%; matures September 18, 2021
|
-
|
-
|
-
|
|||||||||
$
|
-
|
$
|
8,968,018
|
$
|
7,371,730
|
|||||||
Less current maturities
|
-
|
519,516
|
614,311
|
|||||||||
TOTAL
|
$
|
-
|
$
|
8,448,502
|
$
|
6,757,419
|
Years Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Income Tax Provision
|
Restated
|
Restated
|
||||||||||
Current provision:
|
||||||||||||
Federal
|
$
|
(582,502
|
)
|
$
|
879,822
|
$
|
2,999,960
|
|||||
State
|
7,341
|
223,156
|
343,954
|
|||||||||
Foreign
|
(10,477
|
)
|
356,199
|
544,495
|
||||||||
Interest expense related to UTB
|
25,640
|
80,868
|
45,942
|
|||||||||
(559,998
|
)
|
1,540,045
|
3,934,351
|
|||||||||
Deferred provision (benefit):
|
||||||||||||
Federal
|
(94,001
|
)
|
194,735
|
(59,918
|
)
|
|||||||
State
|
(23,559
|
)
|
36,629
|
(52,637
|
)
|
|||||||
Foreign
|
(12,905
|
)
|
42,045
|
38,036
|
||||||||
(130,465
|
)
|
273,409
|
(74,519
|
)
|
||||||||
Total tax provision (benefit)
|
$
|
(690,463
|
)
|
$
|
1,813,454
|
$
|
3,859,832
|
Transition tax on deemed repatriation of certain foreign earnings (1)
|
$
|
603,976
|
||
Foreign withholding taxes (1)
|
290,128
|
|||
Remeasuring deferred tax position (2)
|
402,135
|
|||
$
|
1,296,239
|
(1) classified as part of the Federal current provision in 2017
|
(2) classified as part of the Federal deferred provision in 2017
|
Years Ended December 31,
|
||||||||||||
Income (Loss) Before Income Taxes
|
2019
|
2018
|
2017
|
|||||||||
United States
|
$
|
(1,960,121
|
)
|
$
|
5,352,088
|
$
|
5,811,797
|
|||||
Spain
|
20,595
|
66,799
|
(40,505
|
)
|
||||||||
Canada
|
(130,878
|
)
|
1,166,176
|
937,655
|
||||||||
Australia
|
(169,718
|
)
|
7,124
|
(115,809
|
)
|
|||||||
United Kingdom
|
(354,122
|
)
|
(380,368
|
)
|
(254,862
|
)
|
||||||
TOTAL
|
$
|
(2,594,244
|
)
|
$
|
6,211,819
|
$
|
6,338,276
|
Deferred income tax assets:
|
2019
|
2018
|
2017
|
|||||||||
Inventory
|
$
|
468,438
|
$
|
578,029
|
$
|
542,820
|
||||||
Stock-based compensation
|
51,430
|
46,165
|
29,332
|
|||||||||
Accounts receivable
|
3,977
|
-
|
3,239
|
|||||||||
Sales returns
|
119,404
|
61,251
|
52,205
|
|||||||||
Deferred revenue
|
-
|
48,878
|
67,642
|
|||||||||
Accrued expenses
|
-
|
222,538
|
227,489
|
|||||||||
FX gain/loss in OCI
|
359,078
|
480,112
|
240,045
|
|||||||||
Goodwill and other intangible assets amortization
|
32,670
|
-
|
-
|
|||||||||
Net operating loss
|
459,196
|
344,578
|
337,904
|
|||||||||
Change in tax method
|
-
|
375,595
|
631,015
|
|||||||||
Accrued bonuses
|
-
|
250,355
|
363,710
|
|||||||||
Leases
|
144,699
|
-
|
-
|
|||||||||
Other
|
25
|
-
|
-
|
|||||||||
Total deferred income tax assets
|
$
|
1,638,917
|
$
|
2,407,501
|
$
|
2,495,401
|
||||||
Less: valuation allowance
|
(381,872
|
)
|
(260,313
|
)
|
(208,350
|
)
|
||||||
Total deferred income tax assets, net of valuation allowance
|
$
|
1,257,045
|
$
|
2,147,188
|
$
|
2,287,051
|
||||||
Property and equipment depreciation
|
$
|
739,633
|
$
|
897,494
|
$
|
1,004,163
|
||||||
Goodwill and other intangible assets amortization
|
-
|
157,401
|
151,983
|
|||||||||
Accrued expenses
|
90,079
|
-
|
-
|
|||||||||
Total deferred income tax liabilities
|
$
|
829,712
|
$
|
1,054,895
|
$
|
1,156,146
|
||||||
Net deferred tax asset (liability)
|
$
|
427,333
|
$
|
1,092,293
|
$
|
1,130,905
|
Years Ended December 31,
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Statutory rate – Federal U.S. income tax
|
21%
|
|
21%
|
|
34%
|
|
||||||
State and local taxes
|
0%
|
|
4%
|
|
5%
|
|
||||||
Impact of Tax Act
|
0%
|
|
0%
|
|
20%
|
|
||||||
Non-U.S. income tax at different rates
|
0%
|
|
3%
|
|
(3)%
|
|
||||||
Permanent book/tax differences
|
(6)%
|
|
0%
|
|
1%
|
|
||||||
Difference in tax rates in loss carryback periods
|
3%
|
|
0%
|
|
0%
|
|
||||||
Change in valuation allowance
|
(5)%
|
|
1%
|
|
1%
|
|
||||||
Rate differential on UTB reversals
|
13%
|
|
0%
|
|
0%
|
|
||||||
Other, net
|
1%
|
|
0%
|
|
3%
|
|
||||||
Effective rate
|
27%
|
|
29%
|
|
61%
|
|
Fiscal Year
|
2019
|
2018
|
2017
|
|||||||||
UTB at beginning of the year
|
$
|
1,415,714
|
$
|
1,197,077
|
$
|
937,705
|
||||||
Gross decrease to tax positions in prior periods
|
(1,145,227
|
)
|
(102,236
|
)
|
-
|
|||||||
Gross increase to tax positions in current period
|
-
|
351,304
|
213,430
|
|||||||||
Interest expense
|
25,640
|
80,869
|
45,942
|
|||||||||
Lapses in statute
|
-
|
(111,300
|
)
|
-
|
||||||||
UTB at end of year
|
$
|
296,127
|
$
|
1,415,714
|
$
|
1,197,077
|
Shares
|
Grant Fair Value
|
|||||||
Balance, January 1, 2017
|
61,098
|
$
|
8.03
|
|||||
Granted
|
9,005
|
8.05
|
||||||
Vested
|
(33,300
|
)
|
8.14
|
|||||
Balance, December 31, 2017
|
36,803
|
$
|
7.93
|
|||||
Balance, January 1, 2018
|
36,803
|
$
|
7.93
|
|||||
Granted
|
654,000
|
5.31
|
||||||
Vested
|
(33,086
|
)
|
7.94
|
|||||
Balance, December 31, 2018
|
657,717
|
$
|
7.39
|
|||||
Balance, January 1, 2019
|
657,717
|
$
|
7.39
|
|||||
Granted
|
46,179
|
5.67
|
||||||
Forfeited
|
(5,319
|
)
|
5.64
|
|||||
Vested
|
(93,408
|
)
|
7.39
|
|||||
Balance, December 31, 2019
|
605,169
|
$
|
7.27
|
Unrecognized Expense
|
||||
2020
|
$
|
777,537
|
||
2021
|
758,325
|
|||
2022
|
721,284
|
|||
2023
|
509,910
|
|||
$
|
2,767,056
|
Option
|
Weighted Average
|
|||||||
Shares
|
Exercise Price
|
|||||||
Outstanding at January 1
|
56,400
|
$
|
5.14
|
|||||
Granted
|
-
|
-
|
||||||
Forfeited or cancelled
|
(12,000
|
)
|
5.14
|
|||||
Exercised
|
(44,400
|
)
|
5.14
|
|||||
Outstanding at December 31
|
-
|
$
|
-
|
|||||
Exercisable at end of year
|
-
|
$
|
-
|
|||||
Weighted-average fair value of
|
||||||||
options granted during year
|
n/a
|
Year ended
December 31,
|
Total shares repurchased
|
Average price
per share
|
||||||
2019
|
131,782
|
$
|
5.58
|
|||||
2018
|
243,387
|
$
|
6.79
|
2019
|
First
Quarter
Restated
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||||
Net sales
|
$
|
20,941,322
|
$
|
17,196,815
|
$
|
16,310,887
|
$
|
20,469,136
|
||||||||
Gross profit
|
12,244,670
|
9,370,446
|
8,848,648
|
11,495,688
|
||||||||||||
Net income (loss)
|
1,519,811
|
(875,667
|
)
|
(1,718,452
|
)
|
(829,473
|
)
|
|||||||||
Net income (loss) per common share:
|
||||||||||||||||
Basic
|
$
|
0.17
|
$
|
(0.10
|
)
|
$
|
(0.19
|
)
|
$
|
(0.09
|
)
|
|||||
Diluted (1)
|
$
|
0.17
|
$
|
(0.10
|
)
|
$
|
(0.19
|
)
|
$
|
(0.09
|
)
|
|||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
9,009,752
|
8,933,648
|
8,932,246
|
9,020,187
|
||||||||||||
Diluted
|
9,011,107
|
8,933,648
|
8,932,246
|
9,020,187
|
(1) For the three months ended June 30, 2019, September 31, 2019 and December 31, 2019, there were 2,290, 2,704 and 8,387 shares, respectively, excluded from the diluted EPS calculation because the impact of their assumed exercise would
be anti-dilutive due to a net loss in those periods.
|
2018
|
First
Quarter
Restated
|
Second
Quarter
Restated
|
Third
Quarter
Restated
|
Fourth
Quarter
Restated
|
||||||||||||
Net sales
|
$
|
20,500,578
|
$
|
19,187,222
|
$
|
18,878,263
|
$
|
24,637,506
|
||||||||
Gross profit
|
12,689,060
|
12,233,492
|
11,895,883
|
14,122,510
|
||||||||||||
Net income
|
1,516,656
|
1,157,743
|
608,701
|
1,115,265
|
||||||||||||
Net income per common share:
|
||||||||||||||||
Basic
|
$
|
0.16
|
$
|
0.13
|
$
|
0.07
|
$
|
0.12
|
||||||||
Diluted
|
$
|
0.16
|
$
|
0.13
|
$
|
0.07
|
$
|
0.12
|
||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
9,264,446
|
9,180,076
|
9,154,215
|
9,143,746
|
||||||||||||
Diluted
|
9,264,604
|
9,182,527
|
9,160,022
|
9,144,020
|
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A. |
CONTROLS AND PROCEDURES
|
|
• |
Inventory was not stated on a FIFO basis nor was it stated at the lower of FIFO cost or net realizable value;
|
|
• |
Freight-in, warehousing and handling expenditures, factory labor and overhead and freight-out costs were not correctly capitalized;
|
|
• |
Warehousing and handling expenditures were incorrectly classified as operating expenses;
|
|
• |
Allowance for sales returns was incorrectly calculated and accounted for;
|
|
• |
Net gift card liability was not correctly accounted for in 2017;
|
|
• |
Lease asset and liability under ASC Topic 842 was incorrectly calculated;
|
|
• |
PTO related accrued liabilities were incorrectly calculated;
|
|
• |
Provision for income taxes, including adjustments related to the Tax Cuts and Jobs Act (the “Tax Act”), uncertain tax position (UTP) liability and related interest expense, and correction of taxable income on
the return of our Canada and Spain foreign subsidiaries;
|
|
• |
Foreign currency gains and losses associated with the Company’s Canadian subsidiary were incorrectly classified as a component of accumulated other comprehensive loss and the cumulative translation
adjustments included in accumulated other comprehensive loss were not tax effected; and
|
|
• |
Shares repurchased and subsequently cancelled were incorrectly accounted for as treasury stock.
|
|
i. |
Hired a new, highly-qualified CFO in January 2021 with extensive public-company experience;
|
|
ii. |
Replaced critical roles within our accounting team with contract accounting resources and ultimately (ongoing) full-time employees with expertise in GAAP accounting, SEC reporting and disclosure, internal
audit and internal controls;
|
|
iii. |
Replaced our legacy accounting systems with an integrated enterprise resource planning (“ERP”) solution which includes general ledger, warehouse management and factory production modules designed to calculate
inventory on a FIFO basis;
|
|
iv. |
Made improvements to our accounting close process, including a formalized accounting close checklist establishing accountability for oversight and review;
|
|
v. |
Documented process narratives in the following areas: (i) financial reporting, (ii) inventory, (iii) purchasing and accounts payable, (iv) revenue, (v) fixed assets and lease accounting, (vi) general
accounting, treasury and financial planning & analysis, (vii) tax, (viii) information technology (IT) governance, and (ix) HR and payroll;
|
|
vi. |
Created a risk controls matrix which includes, among other things, a comprehensive list of key and mitigating controls, a description of the risk the control is designed to mitigate, the individual
responsible for each control, the frequency in which the control is performed, and a mapping of each control to the five COSO Framework components (control environment, risk assessment, control activities, information and communication, or
monitoring activities).
|
|
i. |
Ongoing recruitment and hiring of permanent, qualified public-company accounting personnel;
|
|
ii. |
Point-of-sale systems implementation that will be fully integrated with our new ERP system;
|
|
iii. |
Redesigning our accounting procedures and activities to align with our new ERP system that will include built-in controls to improve upon the reliability of financial
reporting and the preparation of financial statements in accordance with GAAP;
|
|
iv. |
Reporting the progress and results of our remediation plan to the Audit Committee on a recurring basis, including the identification, status, and resolution of internal control deficiencies; and
|
|
v. |
Creating a comprehensive approach to regularly evaluate the operating effectiveness of our disclosure controls and procedures and our internal control over financial reporting using the COSO Framework as a guide.
|
|
◾ |
Recurring meetings with leadership, finance and accounting and other key functional areas to train staff on processes for oversight and emphasize each individual’s accountability for internal control
compliance, and to create a pattern of regular discussion of such controls.
|
|
◾ |
Periodic communications from the CEO, CFO and other key senior leaders on the Company’s mission, core values, Code of Business Conduct and Ethics, whistleblower policies, and each employee’s individual
responsibility for internal control compliance.
|
|
◾ |
Reorganization of the finance and accounting team to ensure appropriate segregation of duties, oversight and review of work, and recruiting and hiring qualified, competent employees with relevant experience
for the roles.
|
|
◾ |
Regular performance evaluations to include position-specific criteria for functional competence, including performance of internal control responsibilities.
|
|
◾ |
New systems designed to calculate inventory at FIFO and create efficiency and accuracy through integration: we implemented the warehouse management, factory production system and general ledger systems
modules as part of our new ERP system implementation which went live on September 1, 2020. We are still in the process of implementing our new point-of-sale system, which will be fully integrated with our ERP system and with a phased
implementation across our fleet of stores throughout 2021.
|
|
◾ |
Creation and implementation of newly-designed processes, structures, delegation of authority and controls, in accordance with the COSO Framework, including:
|
|
o |
The creation of a risk controls matrix;
|
|
o |
Driving a greater sense of accountability by requiring sub-certifications below the CEO and CFO level for certain key accounting, finance and operations personnel;
|
|
o |
Quarterly updates for the CFO regarding upcoming accounting pronouncement and proposed changes to GAAP accounting standards, tax regulations, and other requirements that may impact the Company’s financial
reporting;
|
|
o |
Quarterly reviews of the most significant accounting estimates and judgements;
|
|
o |
Validation of results through detailed variance analyses and reconciliation of account balances;
|
|
o |
Monthly business review of actual financial performance compared to forecasts with participation from leadership across the organization; and
|
|
o |
Establishing a disclosure committee comprised of key management throughout the different areas of the organization to evaluate the appropriateness of disclosures in the Company’s periodic filings on Forms
10-K and 10-Q and to support the CEO and CFO with the certification process.
|
ITEM 9B. |
OTHER INFORMATION
|
Name and Age
|
Position
|
Served as Executive
Officer Since
|
||
Janet Carr, 60
|
Chief Executive Officer
|
2018
|
||
Michael Galvan, 52
|
|
Chief Financial Officer
|
|
2021
|
ITEM 11. |
EXECUTIVE COMPENSATION*
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS*
|
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE*
|
ITEM 14. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES*
|
|
• |
Report of Independent Registered Public Accounting Firm
|
|
• |
Consolidated Balance Sheets as of December 31, 2019, 2018 and 2017
|
|
• |
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2019, 2018, and 2017
|
|
• |
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018, and 2017
|
|
• |
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2019, 2018, and 2017
|
Certification by the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
*101.INS
|
XBRL Instance Document.
|
*101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
*101.CAL
|
XBRL Taxonomy Extension Calculation Document.
|
*101.DEF
|
XBRL Taxonomy Extension Definition Document.
|
*101.LAB
|
XBRL Taxonomy Extension Labels Document.
|
*101.PRE
|
XBRL Taxonomy Extension Presentation Document.
|
TANDY LEATHER FACTORY, INC.
|
||
By:
|
||
/s/ Janet Carr
|
||
Janet Carr
|
||
Chief Executive Officer
|
||
Dated: June 21, 2021
|
Signature
|
Title
|
Date
|
|||
/s/ Jefferson Gramm
|
Chairman of the Board
|
June 21, 2021
|
|||
Jefferson Gramm
|
|||||
/s/ Janet Carr
|
Chief Executive Officer, Director
|
June 21, 2021
|
|||
Janet Carr
|
(principal executive officer)
|
||||
/s/ Michael Galvan
|
Chief Financial Officer
|
June 21, 2021
|
|||
Michael Galvan
|
(principal financial officer and
|
||||
principal accounting officer)
|
|||||
/s/ William M. Warren
|
Director
|
June 21, 2021
|
|||
William M. Warren
|
|||||
/s/ James Pappas
|
Director
|
June 21, 2021
|
|||
James Pappas
|
|||||
/s/ Vicki Cantrell
|
Director
|
June 21, 2021
|
|||
Vicki Cantrell
|
|||||
/s/ Sharon M. Leite
|
Director
|
June 21, 2021
|
|||
Sharon M. Leite
|
|||||
/s/ Sejal Patel
|
Director
|
June 21, 2021
|
|||
Sejal Patel
|
1 Year Tandy Leather Factory (PK) Chart |
1 Month Tandy Leather Factory (PK) Chart |
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