Legacy Housing (LEGH) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 05, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity Registrant Name	Legacy Housing Corporation
Entity File Number	001-38761
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	20-2897516
Entity Address, Address Line One	1600 Airport Freeway
Entity Address, Address Line Two	#100
Entity Address, City or Town	Bedford
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76022
City Area Code	817
Local Phone Number	799-4900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock ($0.001 par value)
Trading Symbol	LEGH
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		24,378,201
Entity Central Index Key	0001436208
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 3,233	$ 2,818
Held to maturity securities	8,452	8,412
Accounts receivable, net	3,985	4,873
Current portion of contracts - dealer financed	30,447	29,441
Current portion of consumer loans receivable	6,893	6,801
Current portion of notes receivable from mobile home parks ("MHP")	9,906	9,670
Current portion of other notes receivable	8,608	8,927
Inventories	32,527	32,075
Prepaid expenses and other current assets	3,729	4,064
Total current assets	107,780	107,081
Contracts - dealer financed, net	1,518	595
Consumer loans receivable, net	134,423	132,208
Notes receivable from MHP, net	144,431	133,072
Other notes receivable, net	16,364	13,795
Inventories, net	7,242	6,987
Other assets - leased mobile homes	8,073	8,824
ROU assets - operating leases	2,503	2,663
Other assets	2,020	1,482
Property, plant and equipment, net	30,597	30,106
Total assets	454,951	436,813
Current liabilities:
Accounts payable	3,880	4,549
Accrued liabilities	17,673	16,895
Customer deposits	7,346	9,715
Escrow liability	9,272	9,653
Operating lease obligation	652	650
Line of credit	7,838
Total current liabilities	46,661	41,462
Long-term liabilities:
Operating lease obligation, less current portion	1,959	2,121
Lines of credit		2,545
Deferred income taxes, net	2,862	3,065
Dealer incentive liability	5,596	5,516
Total liabilities	57,078	54,709
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $.001 par value, 10,000,000 shares authorized: no shares issued or outstanding
Common stock, $.001 par value, 90,000,000 shares authorized; 24,823,266 and 24,814,695 issued and 24,378,201 and 24,369,630 outstanding at March 31, 2023 and December 31, 2022, respectively	30	30
Treasury stock at cost, 445,065 shares at March 31, 2023 and December 31, 2022	(4,477)	(4,477)
Additional paid-in-capital	180,746	180,555
Retained earnings	221,574	205,996
Total stockholders' equity	397,873	382,104
Total liabilities and stockholders' equity	$ 454,951	$ 436,813

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
CONDENSED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	24,823,266	24,814,695
Common stock, shares outstanding	24,378,201	24,369,630
Treasury stock, shares	445,065	445,065

CONDENSED STATEMENTS OF INCOME

CONDENSED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net revenue:
Product sales	$ 43,318	$ 51,787
Consumer and MHP loans interest	7,705	6,765
Other	1,834	1,376
Total net revenue	52,857	59,928
Operating expenses:
Cost of product sales	28,960	33,727
Selling, general and administrative expenses	5,412	7,659
Dealer incentive	131	275
Income from operations	18,354	18,267
Other income (expense):
Non-operating interest income	695	853
Miscellaneous, net	753	586
Interest expense	(91)	(56)
Total other	1,357	1,383
Income before income tax expense	19,711	19,650
Income tax expense	(3,435)	(3,558)
Net income	$ 16,276	$ 16,092
Weighted average shares outstanding:
Basic	24,374,677	24,351,223
Diluted	25,177,502	24,661,426
Net income per share:
Basic	$ 0.67	$ 0.66
Diluted	$ 0.65	$ 0.65

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net income	$ 16,276	$ 16,092
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	430	430
Amortization of deferred revenue	(290)	(408)
Amortization of treasury note discount	(40)
Amortization of lines of credit cost	19
Provision for accounts and notes receivable	(43)	37
Provision for inventory	19	(130)
Gain from sale of leased property	(507)
Amortization of operating lease right of use asset	14
Share based payment expense	192	4,007
Changes in operating assets and liabilities:
Accounts receivable	915	(1,843)
Consumer loans activity, net	(2,287)	(1,617)
Notes receivable MHP activity, net	(11,667)	(7,336)
Dealer inventory loan activity, net	(2,189)	(3,249)
Inventories	(726)	(7,484)
Prepaid expenses and other current assets	305	389
Other assets	(538)	(4,058)
Accounts payable and accrued liabilities	109	3,035
Right of use activity, net	(14)
Customer deposits	(2,369)	1,025
Escrow liability	(380)	(208)
Dealer incentive liability	80	261
Net cash (used in) provided by operating activities	(2,691)	(1,057)
Investing activities:
Purchases of property, plant and equipment	(761)	(863)
Proceeds from sale of leased property	1,108
Issuance of notes receivable	(3,107)	(1,561)
Notes receivable collections	468	5,046
Collections from purchased loans	106	132
Net cash (used in) provided by investing activities	(2,186)	2,754
Financing activities:
Proceeds from other liabilities		2,706
Proceeds from lines of credit	20,188	20,331
Payments on lines of credit	(14,896)	(23,248)
Net cash provided by (used in) financing activities	5,292	(211)
Net increase in cash and cash equivalents	415	1,486
Cash and cash equivalents at beginning of year	2,818	1,042
Cash and cash equivalents at end of year	3,233	2,528
Supplemental disclosure of cash flow information:
Cash paid for interest	59	44
Cash paid for taxes	$ 3,827	$ 3,064

CONDENSED STATEMENTS OF CHANGES

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Treasury stock Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury stock	Additional paid-in-capital Cumulative Effect, Period of Adoption, Adjusted Balance	Additional paid-in-capital	Retained earnings Cumulative effect, period of adoption, adjustment	Retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Retained earnings	Cumulative effect, period of adoption, adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Total
Beginning Balance at Dec. 31, 2021		$ 25		$ (4,477)		$ 175,623			$ 138,223			$ 309,394
Beginning Balance (in shares) at Dec. 31, 2021		24,654,621
Share based compensation expense and stock units vested		$ 4				4,003						4,007
Share based compensation expense and stock units vested (in shares)		158,571
Net income									16,092			16,092
Ending Balance at Mar. 31, 2022		$ 29		(4,477)		179,626			154,315			329,493
Ending Balance (in shares) at Mar. 31, 2022		24,813,192
Beginning Balance at Dec. 31, 2022	$ 30	$ 30	$ (4,477)	(4,477)	$ 180,555	180,555	$ (698)	$ 205,298	205,996	$ (698)	$ 381,406	$ 382,104
Beginning Balance (in shares) at Dec. 31, 2022	24,814,695	24,814,695										24,814,695
Share based compensation expense and stock units vested						191						$ 191
Share based compensation expense and stock units vested (in shares)		8,571
Net income									16,276			16,276
Ending Balance at Mar. 31, 2023		$ 30		$ (4,477)		$ 180,746			$ 221,574			$ 397,873
Ending Balance (in shares) at Mar. 31, 2023		24,823,266										24,823,266

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2023
NATURE OF OPERATIONS
NATURE OF OPERATIONS	1. NATURE OF OPERATIONS Legacy Housing Corporation (referred herein as ”Legacy”, “we”, “our”, “us”, or the “Company”) was formed on January 1, 2018 as a Delaware corporation through a corporate conversion of Legacy Housing, Ltd. (the “Partnership”), a Texas limited partnership formed in May 2005. Effective December 31, 2019, the Company reincorporated from a Delaware corporation to a Texas corporation. The Company is headquartered in Bedford, Texas. The Company (1) manufactures and provides for the transport of mobile homes, (2) provides wholesale financing to dealers and mobile home parks, (3) provides retail financing to consumers and (4) is involved in financing and developing new manufactured home communities. The Company manufactures its mobile homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia. The Company relies on a network of dealers to market and sell its mobile homes. The Company also sells homes directly to dealers and mobile home parks. Basis of Presentation The accompanying unaudited interim condensed financial statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") as required by Regulation S-X, Rule 8-03. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three Use of Estimates The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Material estimates that are susceptible to significant change in the near term primarily relate to the determination of accounts receivable, loans to mobile home parks, consumer loans, other notes receivable, inventory obsolescence, income taxes, fair value of financial instruments and contingent liabilities. Actual results could differ from these estimates. Revenue Recognition Product sales considered sales of homes to the independent dealer. Retail Store Sales are homes sold through Company-owned retail locations. Consignment Sales and Retail Sales may be financed by the Company, by a third party, or paid in cash. Revenue from product sales is recognized when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title to the home, as this depicts when control of the promised good is transferred to our customers. For inventory financed sales, the independent dealer enters into a financing arrangement with the Company and is required to make monthly interest payments and an annual curtailment payment for the first two years. After three years, they are required to payoff any remaining principle balance. Interest income is separately recorded in the statement of income. For other financed sales by the Company, the individual customer enters into a sales and financing contract and is required to make a down payment. These financed sales contain a significant financing component and any interest income is separately recorded in the statement of income. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the homes to the customers. Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue. The Company made an accounting policy election to account for any shipping and handling costs that occur after the transfer of control as a fulfillment cost that is accrued when control is transferred. Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less. Contract costs, which include commissions incurred related to the sale of homes, are expensed at the point-in-time when the related revenue is recognized. Warranty costs and contract costs are included in selling, general and administrative expenses in the statements of income. Warranty costs were $627 and $565 for the three months ended March 31, 2023 and 2022, respectively. For the three months ended March 31, 2023 and 2022, MHP sales to an independent third party and it’s affiliates accounted for $5,647 or 13.0% and $3,134 or 6.7% of our product sales, respectively. No other customer accounted for more than 5.0% of our product sales. For the three months ended March 31, 2023 and 2022, product sales included $2,623 and $2,999 of costs relating to subcontracted production for commercial sales, reimbursed dealer expenses for consignment sales, and certain other similar costs incurred for retail store and commercial sales Other revenue Disaggregation of Revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ 2023 2022 Product sales: ​ ​ ​ ​ ​ ​ Direct sales ​ $ 7,426 ​ $ 10,863 Commercial sales ​ 15,565 ​ 14,059 Inventory finance sales ​ ​ 13,615 ​ ​ 20,040 Retail store sales ​ ​ 3,967 ​ ​ 4,160 Other (1) ​ 2,745 ​ 2,665 Total product sales ​ 43,318 ​ 51,787 Consumer and MHP loans interest: ​ ​ Interest - consumer installment notes ​ 4,657 ​ 4,457 Interest - MHP notes ​ 3,048 ​ 2,308 Total consumer and MHP loans interest ​ 7,705 ​ 6,765 Other ​ 1,834 ​ 1,376 Total net revenue ​ $ 52,857 ​ $ 59,928 (1) Other product sales revenue from ancillary products and services including parts, freight and other services Share-Based Compensation The Company accounts for share-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each restricted stock unit (the ”RSU”) with only service-based conditions is calculated based on the closing price of the Company’s common stock on the grant date. The fair value of each RSU with market based conditions is estimated using the Monte-Carlo Simulation valuation model. The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon securities that correspond to the expected life of the award. As a public entity with a small public float and limited trading of its common shares on the NASDAQ Global Market, it was not practicable for the Company to estimate the volatility of its common shares; therefore, management estimated volatility based on the historical volatilities of a small group of companies considered as close to comparable to the Company as available, all equally weighted, over the expected life of the option. Management concluded that this group is more characteristic of the Company’s business than a broad industry index. The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which can be utilized by companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience. The Company does not expect to pay dividends on its common stock. The fair value of RSU awards with market based conditions on the date of grant is estimated using the Monte-Carlo Simulation valuation model, and the Company uses the following methods to determine its underlying assumptions: expected volatilities are based on the Company’s historic stock price volatility; the expected term of the awards is based on the performance measurement period; the risk-free interest rate is based on the U.S. Treasury bond yield issued with similar life terms to the expected life of the grant. Accounts Receivable Included in accounts receivable “net” are receivables from direct sales of mobile homes, sales of parts and supplies to customers, consignment fees and interest. Accounts receivable “dealer financed” are receivables for interest, fees and curtailments owed by dealers under their inventory finance agreements. Accounts receivables “net” are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts receivables “dealer financed” are due upon receipt and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines the allowance by considering several factors, including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible. On March 31, 2023 and December 31, 2022, the allowance for doubtful accounts totaled $252 and $279, respectively. Leased Property The Company offers mobile home park operators the opportunity to lease mobile homes for rent in lieu of purchasing the homes for cash or under a longer-term financing agreement. In this arrangement title to the mobile homes remains with the Company. The standard lease agreement is typically for 96 months or 120 months. Under the lease agreement, the lessee (mobile home park operator) uses the mobile homes as personal property to be rented at the lessee's mobile home park. The lessee makes monthly, periodic lease payments to the Company over the term of the lease. The lessee is responsible for maintaining the homes during the term of the lease. The lessee is also responsible for repairing any damage caused by force majeure events. At the end of the lease term or in the event of default, the lessee is required to deliver the homes to the Company with all improvements and in substantially the same condition as existed at the commencement of the lease. The lessee may terminate the lease on 30 days written notice and pay a lease termination fee equal to 10% of the remaining lease payments or six months’ rent, whichever is greater. The lessee has an option to purchase the homes at the end of the lease term for fair market value based on an agreed determination of fair market value by both parties using comparable sales, recent appraisal, or NADA official guidance. The lessee must provide the Company with 30 days written notice prior to expiration of the lease of intent to purchase the property for fair market value. The lease also includes a renewal option whereby the lessee has the option to extend the lease for an additional 48 months (the extended term) at the same terms and conditions as the original lease. The lessee must notify the Company of the intent to exercise this renewal option not less than six months prior to expiration of the lease term. The leased mobile homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life. Homes returned to the Company upon expiration of the lease or in the event of default will be sold by the Company through its standard sales and distribution channels. Depreciation expense for the leased property was $160 and $170 for the three months ended March 31, 2023 and 2022, respectively. Future minimum lease income under all operating leases for each of the next five years at March 31, 2023, are as follows: ​ ​ ​ ​ ​ 2023 $ 1,369 2024 ​ 1,825 2025 ​ 1,825 2026 ​ 1,825 2027 ​ 1,653 Thereafter ​ 2,264 Total ​ $ 10,761 ​ Recent Accounting Pronouncements The Company has elected to use longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act as an emerging growth company. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) liabilities In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was effective upon issuance. The new standard has had no material impact on the Company's financial statements. From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.

CONSUMER LOANS

CONSUMER LOANS	3 Months Ended
	Mar. 31, 2023
CONSUMER LOANS
CONSUMER LOANS	2. CONSUMER LOANS Consumer loans result from financing transactions entered into with retail consumers of mobile homes sold through independent retailers and company-owned retail locations. Consumer loans receivable generally consist of the sales price and any additional financing fees, less the buyer’s down payment. Interest income is recognized monthly per the terms of the financing agreements. The average contractual interest rate per loan was approximately 13.3% and 13.4% as of March 31, 2023 and December 31, 2022, respectively. Consumer loans receivable have maturities that range from 2 to 30 years. Loan applications go through an underwriting process that considers credit history to evaluate the credit risk of the consumer. Interest rates on approved loans are determined based on consumer credit score, payment ability and down payment amount. The Company uses payment history to monitor the credit quality of the consumer loans on an ongoing basis. The Company may also receive escrow payments for property taxes and insurance included in its consumer loan collections. The liabilities associated with these escrow collections totaled $9,272 and $9,653 as of March 31, 2023 and December 31, 2022, respectively, and are included in escrow liability in the condensed balance sheets. Allowance for Loan Losses—Consumer Loans Receivable The allowance for loan losses reflects management’s estimate of losses inherent in the consumer loans that may be uncollectible based upon review and evaluation of the consumer loan portfolio as of the date of the balance sheet. An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics, including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The Company’s calculation of the general reserve considers the historical loss rate for the last three years, adjusted for the estimated loss discovery period and any qualitative factors both internal and external to the Company. Specific reserves are determined based on probable losses on specific classified impaired loans. The Company’s policy is to place a loan on nonaccrual status when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is normally when either principal or interest is past due and remains unpaid for more than 90 days. Management implemented this policy based on an analysis of historical data, current performance of loans and the likelihood of recovery once principal or interest payments became delinquent and were aged more than 90 days. Payments received on nonaccrual loans are accounted for on a cash basis, first to interest and then to principal, as long as the remaining book balance of the asset is deemed to be collectible. The accrual of interest resumes when the past due principal or interest payments are brought within 90 days of being current. Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due under the terms of the loan agreement, including scheduled principal and interest payments. Impaired loans, or portions thereof, are charged off when deemed uncollectible. A loan is generally deemed impaired if it is more than 90 days past due on principal or interest, is in bankruptcy proceedings, or is in the process of repossession. A specific reserve is created for impaired loans based on the fair value of the underlying collateral, less estimated selling costs. The Company uses various factors to determine the value of the underlying collateral for impaired loans. These factors are: (1) the length of time the unit was unsold after construction; (2) the amount of time the house was occupied; (3) the cooperation level of the borrowers, i.e., loans requiring legal action or extensive field collection efforts; (4) units located on private property as opposed to a manufactured home park; (5) the length of time the borrower has lived in the house without making payments; (6) location, size, and market conditions; and (7) the experience and expertise of the particular dealer assisting in collection efforts. Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is computed based on the historical recovery rates of previously charged off loans; the loan is charged off and the loss is charged to the allowance for loan losses. At each reporting period, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled $1,333 and $795 as of March 31, 2023 and December 31, 2022, respectively, and are included in other assets in the condensed balance sheets. Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Consumer loans receivable ​ $ 144,612 ​ $ 142,340 Loan discount and deferred financing fees ​ (2,480) ​ (2,501) Allowance for loan losses ​ (816) ​ (830) Consumer loans receivable, net ​ $ 141,316 ​ $ 139,009 ​ The following table presents a detail of the activity in the allowance for loan losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ 2023 2022 Allowance for loan losses, beginning of period ​ $ 830 ​ $ 884 ​ Provision for loan losses ​ (70) ​ (309) ​ Charge offs (recoveries) ​ 56 ​ 149 ​ Allowance for loan losses ​ $ 816 ​ $ 724 ​ ​ The following table presents loan loss and impairment detail for the consumer loans receivable portfolio: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Total consumer loans ​ $ 144,612 ​ $ 142,340 Allowance for loan losses ​ $ 816 ​ $ 830 Impaired loans individually evaluated for impairment ​ $ 1,612 ​ $ 1,610 Specific reserve against impaired loans ​ $ 625 ​ $ 612 Other loans collectively evaluated for allowance ​ $ 143,000 ​ $ 140,730 General allowance for loan losses ​ $ 191 ​ $ 218 ​ As of March 31, 2023 and December 31, 2022, the total principal outstanding for consumer loans on nonaccrual status was $1,612 and $1,610, respectively. A detailed aging of consumer loans receivable that are past due as of March 31, 2023 and December 31, 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, ​ As of December 31, ​ ​ ​ 2023 ​ % ​ 2022 ​ % Total consumer loans receivable ​ $ 144,612 100.0 $ 142,340 100.0 Past due consumer loans: ​ ​ 31 - 60 days past due ​ $ 596 0.4 ​ $ 1,150 0.8 61 - 90 days past due ​ 206 0.1 ​ 108 0.1 91 - 120 days past due ​ 110 0.1 ​ 486 0.3 Greater than 120 days past due ​ 1,408 1.0 ​ 1,255 0.9 Total past due ​ $ 2,320 1.6 ​ $ 2,999 2.1 ​

NOTES RECEIVABLE FROM MOBILE HO

NOTES RECEIVABLE FROM MOBILE HOME PARKS	3 Months Ended
	Mar. 31, 2023
NOTES RECEIVABLE FROM MOBILE HOME PARKS
NOTES RECEIVABLE FROM MOBILE HOME PARKS	3. NOTES RECEIVABLE FROM MOBILE HOME PARKS The notes receivable from mobile home parks (“MHP Notes”) relate to mobile homes sold to mobile home parks and financed through notes receivable. The MHP Notes have varying maturity dates and call for monthly principal and interest payments. The interest rate on the MHP Notes can be fixed or variable. Approximately $145 million of the MHP Notes have a fixed interest rate ranging from 6.9% to 11.5%. The remaining MHP Notes have a variable rate typically set at 4.0% above prime with a minimum of 8.0%. The average interest rate per loan was approximately 8.0% and 8.1% as of March 31, 2023 and December 31, 2022, respectively, with maturities that range from 1 to 10 years. The collateral underlying the MHP Notes are individual mobile homes which can be repossessed and resold. The MHP Notes are generally personally guaranteed by borrowers with substantial financial resources. The Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 15.3%, 16.6% and 31.0% of the principal balance outstanding, all of which was secured by the mobile homes, as of March 31, 2023. As of December 31, 2022, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 12.3%, 16.6% and 34.0% of the principal balance outstanding, all of which was secured by the mobile homes. MHP Notes are stated at amounts due from customers, net of allowance for loan losses. The Company determines the allowance by considering several factors, including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance reserve composed of specific and general reserve amounts. As of March 31, 2023 and December 31, 2022, the MHP Notes balance is presented net of unamortized finance fees of $1,254 and $1,068, respectively. The finance fees are amortized over the life of the MHP Notes. There were minimal past due balances on the MHP Notes as of March 31, 2023 and December 31, 2022 and no charge offs were recorded for MHP Notes during the three months ended March 31, 2023 and 2022. The allowance for loan loss is $205 and $0 at March 31, 2023 and December 31, 2022, respectively. There were no impaired MHP Notes as of March 31, 2023 and December 31, 2022, and there was no repossessed homes balances as of March 31, 2023 and December 31, 2022. Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.

OTHER NOTES RECEIVABLE

OTHER NOTES RECEIVABLE	3 Months Ended
	Mar. 31, 2023
OTHER NOTES RECEIVABLE
OTHER NOTES RECEIVABLE	4. OTHER NOTES RECEIVABLE Other notes receivable relate to various notes issued to mobile home park owners and dealers, which are not directly tied to the sale of mobile homes. The other notes have varying maturity dates and call for monthly principal and interest payments. The other notes are collateralized by mortgages on real estate, units being financed and used as offices, as well as vehicles, and are typically personally guaranteed by the borrowers. The interest rate on the other notes are fixed and range from 5.00% to 17.90%. The Company reserves for estimated losses on the other notes based on current economic conditions that may affect the borrower’s ability to pay, the borrower’s financial strength, and historical loss experience. There were no past due balances for other notes as of March 31, 2023 and December 31, 2022, and there were no impaired balances for other notes as of March 31, 2023 and December 31, 2022. The balance outstanding on the other notes receivable were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Outstanding principal balance ​ $ 25,405 ​ $ 22,722 Allowance for loan losses ​ (433) ​ — Total ​ $ 24,972 ​ $ 22,722 ​

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
LEASES
LEASES	5. LEASES The Company currently has 13 operating leases, eight of which are for the Company’s Heritage Housing and Tiny Homes retail locations, three which are subleased by the Company and two of which are for corporate and administrative offices in Bedford, TX and Norcross, GA. These leases typically have initial terms ranging from 5 to 10 years and include one or more options to renew. Under ASC 842, a modified retrospective transition is required, applying the new standard to all leases at the date of initial application. The Company chose to use the adoption date of January 1, 2022 for ASC 842. As such, all periods presented after January 1, 2022, are under ASC 842 whereas periods presented prior to January 1, 2022, are in accordance with prior lease accounting under ASC 840. Financial information was not updated and the disclosures required under ASC 842 were not provided for dates and periods prior to January 1, 2022. We determine if an arrangement is a lease at inception. Operating leases are right-of-use (“ROU”) assets and are shown as ROU assets – operating leases on our Condensed Balance Sheet. The lease liabilities are shown as operating lease obligations and operating lease obligations, less current portion on our Condensed Balance Sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments under the lease agreement. We record a ROU asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and ROU asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate used in the present value calculation and the exercise of renewal options. Many of our leases contain renewal options. As the exercise of the renewal options is not certain at commencement of a lease, we generally do not include the option periods in the lease term when determining the lease liabilities and ROU assets. We remeasure the lease liability and ROU asset when we are reasonably certain that we will exercise a renewal option. Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would otherwise pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The remaining weighted-average lease term is 4.40 years and the weighted-average discount rate is 2.12%. We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. There were no variable lease costs for the three months ended March 31, 2023 and 2022. Short-term leases, defined as those with a term of 12 months or less, are not recorded on our Condensed Balance Sheet. Our short-term lease costs were not material for the three months ended March 31, 2023 and 2022. As of March 31, 2023, future minimum lease payments under our operating lease liabilities were as follows: ​ ​ ​ ​ ​ 2023 $ 512 2024 ​ 610 2025 ​ 588 2026 ​ 526 2027 ​ 311 Thereafter ​ 114 Total lease payments ​ $ 2,661 Less amount representing interest ​ ​ (50) Total lease liability ​ $ 2,611 Less current lease liability ​ ​ (652) Total non-current lease liability ​ $ 1,959 ​

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2023
INVENTORIES
INVENTORIES	6 Inventories consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Raw materials ​ $ 15,465 ​ $ 17,442 Work in progress ​ 696 ​ 592 Finished goods (1) ​ 24,028 ​ 21,429 Allowance for obsolescence ​ ​ (420) ​ ​ (401) Total ​ $ 39,769 ​ $ 39,062 (1) Finished goods includes $7,242 and $6,987 as of March 31, 2023 and December 31, 2022 , respectively , held for more than twelve months and classified as long-term.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Mar. 31, 2023
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Land ​ $ 14,953 ​ $ 14,953 Buildings and leasehold improvements ​ 17,544 ​ 16,949 Vehicles ​ 1,556 ​ 1,556 Machinery and equipment ​ 5,887 ​ 5,750 Furniture and fixtures ​ 329 ​ 300 Total ​ 40,269 ​ 39,508 Less accumulated depreciation ​ (9,672) ​ (9,402) Total property, plant and equipment ​ $ 30,597 ​ $ 30,106 ​ Depreciation expense was $270 with $126 included as a component of cost of product sales for the three months ended March 31, 2023, and $260 with $121 included as a component of cost of product sales for the three months ended March 31, 2022.

OTHER ASSETS

OTHER ASSETS	3 Months Ended
	Mar. 31, 2023
OTHER ASSETS.
OTHER ASSETS	8. OTHER ASSETS Other assets consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Prepaid rent ​ $ 349 ​ $ 349 Other ​ 338 ​ 338 Repossessed homes ​ 1,333 ​ 795 Total ​ $ 2,020 ​ $ 1,482 ​

DEBT SECURITIES

DEBT SECURITIES	3 Months Ended
	Mar. 31, 2023
DEBT SECURITIES
DEBT SECURITIES	9 Debt Securities have been classified according to management’s intent. The Company purchased US Treasury Notes in November 2022 that mature in November 2023. The Debt Securities have been classified as held-to-maturity and the amortized costs are $8,452 and $8,412 at March 31, 2023 and December 31, 2022, respectively.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2023
ACCRUED LIABILITIES.
ACCRUED LIABILITIES	10 Accrued liabilities consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Warranty reserve ​ $ 3,057 ​ $ 3,049 Litigation reserve ​ 394 ​ 753 Payroll ​ ​ 776 ​ ​ 1,006 Portfolio taxes and title ​ 2,178 ​ 1,610 Property tax ​ ​ 332 ​ ​ 54 Dealer rebates ​ ​ 1,141 ​ ​ 1,402 Sales tax ​ 84 ​ 61 Federal and state income taxes ​ 6,306 ​ 6,699 Other ​ 3,405 ​ 2,261 Total accrued liabilities ​ $ 17,673 ​ $ 16,895 ​

DEBT

DEBT	3 Months Ended
	Mar. 31, 2023
DEBT
DEBT	11 Lines of Credit Revolver 1 On March 30, 2020, the Company entered into an agreement with Capital One, N.A. for a new revolving line of credit (“Revolver”). The Revolver had a maximum credit limit of $70,000 and a maturity date of March 30, 2024. On June 21, 2022, the Company received a Reservation of Rights notice from Capital One, N.A. (“Capital One”). The letter stated that the Company’s Revolver was in default. The default condition occurred due to the Company’s failure to timely file the Form 10-K and deliver certain financial statements to Capital One. On July 28, 2022, the Company entered into a Limited Waiver and First Amendment to Credit Agreement (the “Amendment”) with Capital One. The Amendment replaced the LIBOR borrowing rate with a secured overnight financing rate (“SOFR”) and waived a default arising out of a monetary judgement against the Company that exceeded the amount allowed in the Revolver. On August 24, 2022, the Company received a Notice of Default and Partial Suspension of Loan Commitments from Capital One. The notice stated that the July 28, 2022 forbearance agreement had been terminated and that Capital One suspending $50,000 of the $70,000 loan commitment under the Revolver. As a result, the available line of credit in the Revolver has been limited to $20,000. As of March 31, 2023, the Company was in compliance with all non-financial covenants. The Revolver accrues interest at one-month SOFR plus 2.00%. The interest rates in effect as of March 31, 2023 and December 31, 2022 are 6.66% and 6.12%, respectively. Amounts available under the Revolver are subject to a formula based on eligible consumer loans and MHP Notes and are secured by all accounts receivable, consumer loans and MHP Notes. The amount of available credit under the Revolver was $12,162 and $17,400 as of March 31, 2023 and December 31, 2022, respectively. In connection with the Revolver, the Company paid certain arrangement fees and other fees of approximately $295, which were capitalized as unamortized debt issuance costs and will be amortized to interest expense over the life of the Revolver. For the three months ended March 31, 2023 and 2022, interest expense under the Revolver was $91 and $56, respectively. The outstanding balance as of March 31, 2023 and December 31, 2022 was $7,838 and $2,545 , respectively. The Revolver requires the Company to comply with certain financial and non-financial covenants. As of ​

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2023
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	12. SHARE-BASED COMPENSATION Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Compensation Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants and nonemployee service providers in the form of stock options, stock and stock appreciation rights. Stock options may be granted with a contractual life of up to ten years. At December 31, 2022, the Company had 9.7 million shares available for grant under the Compensation Plan. In February 2019, the Company granted 120,000 restricted shares of its common stock to members of senior management. The shares were granted on February 7, 2019 and had a grant date fair value of $1,636. The shares vest at a rate of 14.3% annually, beginning on February 7, 2019, and become fully vested on February 7, 2025. During the second quarter of 2020, 42,857 of these restricted shares were forfeited due to the departure of a member of senior management. In November 2021, the Company granted 1,202 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on November 30, 2021 and had a grant date fair value of $30. The shares became fully vested on October 24, 2022. In January 2022, the Company granted 150,000 restricted shares of its common stock to the Executive Chairman of the Company pursuant to an amended and restated employment agreement. The shares were granted on January 6, 2022 and had a grant date fair value of $3,741. The shares became fully vested upon grant. On January 6, 2022, the Company gave contingent equity awards of 350,000 shares of the Company’s restricted stock to the Executive Chairman of the Company pursuant to an amended and restated employment agreement. An equity award of 175,000 shares will be granted if the Company’s stock price closes at $36 per share for a period of fifteen fifteen On November 15, 2022, the Company entered into a rescission and relinquishment agreement (the “Rescission Agreement”) with the Executive Chairman. The Rescission Agreement allows the Executive Chairman to rescind and relinquish the $36 Equity Awards and the $48 Equity Awards granted under the amended and restated employment agreement and allows the Company to accept such rescission and relinquishment without penalty. The effective date of the Rescission Agreement was October 1, 2022. On June 7, 2022, the Company granted 14,700 restricted shares of its common stock to the Chief Executive Officer of the Company pursuant to an employment agreement. The shares were granted on June 7, 2022 and had a grant date fair value of $235. One On June 7, 2022, the Company granted 301 restricted shares of its common stock to an independent director on the Company’s Board of Directors. The shares were granted on June 7, 2022 and had a grant date fair value of $5. The shares became fully vested on October 24, 2022. In November 2022, the Company granted 1,734 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on November 29, 2022 and had a grant date fair value of $30. The shares became fully vested on October 23, 2023. The following is a summary of restricted stock units (the “RSU”) activity (in thousands, except per unit data): ​ ​ ​ ​ ​ ​ ​ ​ Number of Units ​ ​ Weighted Average Grant Date Fair Value Per Unit Nonvested, January 1, 2023 ​ 42 ​ $ 14.61 Granted ​ — ​ $ — Vested ​ (8) ​ $ 13.63 Canceled ​ — ​ $ — Nonvested, March 31, 2023 ​ 34 ​ $ 14.86 ​ As of March 31, 2023, approximately 34,000 RSUs remained unvested. The unrecognized compensation expense related to these RSUs at March 31, 2023 was $376 and is expected to be recognized over 1.55 years. The Company granted 34,626 incentive stock options to a member of senior management. The options were granted on August 10, 2020 at an exercise price of $14.44 per share. The options vest at a rate of 20.0% annually, beginning on August 10, 2021, and become fully vested on August 10, 2025. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of 0.24%, dividend yield of 0.00%, expected volatility of common stock of 75.0% and expected life of options of 6.5 years. During the first quarter of 2022, 27,701 of these options were forfeited due to the individual’s departure. The Company granted 55,490 incentive stock options to a member of management. The options were granted on September 23, 2021 at an exercise price of $18.02 per share. The options vest at a rate of 10.0% annually, beginning on September 23, 2022, and become fully vested on September 23, 2031. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of 1.41%, dividend yield of 0.00%, expected volatility of common stock of 75.0% and expected life of options of 7.8 years. During the fourth quarter of 2022, these options were forfeited due to the individual’s departure. The Company granted 62,460 incentive stock options to the Chief Executive Officer. The options were granted on June 7, 2022 at an exercise price of $16.01 per share. The options vest at a rate of 10.0% annually, beginning on June 7, 2023, and become fully vested on June 7, 2032. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of 2.98%, dividend yield of 0.00%, expected volatility of common stock of 45.7% and expected life of options of 7.8 years. The Company granted options to purchase 900,000 shares of the Company’s stock to the Chief Executive Officer. An option to purchase 300,000 shares of the Company’s stock was granted on June 7, 2022 at an exercise price of $36.00 per share and an option to purchase 600,000 shares of the Company’s stock was granted on June 7, 2022 at an exercise price of $48.00 per share. The options vest at a rate of 10.0% annually, beginning on June 7, 2023, and become fully vested on June 7, 2032. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of 2.98%, dividend yield of 0.00%, expected volatility of common stock of 45.7% and expected life of options of 7.8 years. The Company granted 62,460 incentive stock options to the Chief Financial Officer. The options were granted on June 7, 2022 at an exercise price of $16.01 per share. The options vest at a rate of 10.0% annually, beginning on June 7, 2023, and become fully vested on June 7, 2032. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of 2.98%, dividend yield of 0.00%, expected volatility of common stock of 45.7% and expected life of options of 7.8 years. The following is a summary of option activity (number of units in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Units Weighted Average Exercise Price Per Unit Weighted Average Grant Date Fair Value Per Unit Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 1, 2022 ​ 83 ​ $ 16.83 ​ $ 12.27 ​ 9.36 ​ ​ ​ Granted ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Exercised ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Forfeited ​ (28) ​ $ 14.44 ​ $ 8.67 ​ — ​ ​ ​ Outstanding, March 31, 2022 ​ 55 ​ $ 18.02 ​ $ 14.07 ​ 9.49 ​ $ 191 Exercisable, March 31, 2022 ​ — ​ $ — ​ $ — ​ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding, January 1, 2023 ​ 1,025 ​ $ 40.59 ​ $ 4.99 ​ 9.44 ​ ​ ​ Granted ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Exercised ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Forfeited ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Outstanding, March 31, 2023 ​ 1,025 ​ $ 40.59 ​ $ 4.99 ​ 9.19 ​ $ — Exercisable, March 31, 2023 ​ — ​ $ — ​ $ — ​ — ​ $ — ​ As of March 31, 2023, approximately 1,025,000 options remained nonvested. Unrecognized compensation expense related to these options at March 31, 2023 was $4,699 and is expected to be recognized over 9.19 years.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
INCOME TAXES
INCOME TAXES	13. INCOME TAXES The provision for income tax expense for the three months ended March 31, 2023 and 2022 was $3,435 and $3,558, respectively. The effective tax rate for the three months ended March 31, 2023 was 17.4% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction and partially offset by state income taxes. The effective tax rate for the three months ended March 31, 2022 was 18.1% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction and partially offset by state income taxes. ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	14. COMMITMENTS AND CONTINGENCIES As of January 1, 2020, the Company instituted a self-insured health benefits plan with a stop-loss policy, which provides medical benefits to employees electing coverage under the plan. The Company reserves estimated costs for incurred but not reported medical claims and claim development. This reserve is based on historical experience and other assumptions, some of which are subjective. The Company will adjust its self-insured medical benefits reserve based on actual experience, estimated costs and changes to assumptions. As of March 31, 2023 and December 31, 2022, the Company had accrued a $174 and $149 liability for incurred but not reported claims, respectively. These accrued amounts are included in accrued liabilities on the condensed balance sheets. The Company is contingently liable under the terms of repurchase agreements with financial institutions that provide inventory financing for independent retailers that sell the Company’s products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer. The Company’s obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer. The maximum amount for which the Company was liable under such agreements totaled $8,396 and $8,925 at March 31, 2023 and December 31, 2022, respectively, without reduction for the resale value of the homes. The Company considers its obligations on current contracts to be insignificant and accordingly has not recorded any reserve for repurchase commitment as of March 31, 2023 and December 31, 2022. Leases. 10-year 3-year 11-year Legal Matters The Company is party to certain legal proceedings that arise in the ordinary course and are incidental to its business. Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract and warranty, product liability and personal injury. The Company has determined that it is probable that it has some liability related to some of these claims. The Company has included legal reserves of $394 and $753 as of March 31, 2023 and December 31, 2022, respectively, in accrued liabilities on the accompanying condensed balance sheets. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that pending or threatened litigation will have a material adverse effect on the Company’s financial position, liquidity or results of operations. However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company’s financial position, liquidity or results of operations in any future reporting periods.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2023
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	15. FAIR VALUE MEASUREMENTS The Company accounts for its investments and derivative instruments in accordance with ASC 820-10, Fair Value Measurement, Fair Value Measurement Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include: (1) Quoted prices for similar assets or liabilities in active markets; (2) Quoted prices for identical or similar assets or liabilities in inactive markets; (3) Inputs other than quoted prices that are observable; and (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability. Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company has used derivatives to manage risks related to interest rate movements. The Company does not enter into derivative contracts for speculative purposes. Interest rate swap contracts are recognized as assets or liabilities on the balance sheets and are measured at fair value. The fair value was calculated and provided by the lender, a Level II valuation technique. Management reviewed the fair values for the instruments as provided by the lender and determined the related asset and liability to be an accurate estimate of future gains and losses to the Company. The Company was not a party to any interest rate swap agreements during the three months ended March 31, 2023 and 2022. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, investments in US Treasury Notes, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, lines of credit, notes payable, and the dealer portion of consumer loans. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments. This is considered a Level I valuation technique. The investment in US Treasury Notes has quoted prices available in active markets that the Company can access at measurement dates. The Company determined that the fair value of the investment in US Treasury Notes was approximately $8,448 compared to the book value of $8,452 as of March 31, 2023, and a fair value of approximately $8,409 compared to the book value of $8,412 as of December 31, 2022. This is considered a Level I valuation technique. The lines of credit, notes payable, part of the MHP Notes and part of the other notes receivables have variable interest rates that reflect market rates and their fair value approximates their carrying value. This is considered a Level II valuation technique. The Company also assessed the fair value of the consumer loans receivable, the fixed rate MHP Notes and the portion of other note receivables with fixed rates based on the discounted value of the remaining principal and interest cash flows. The Company determined that the fair value of the consumer loan portfolio was approximately $140,900 compared to the book value of $141,316 as of March 31, 2023, and a fair value of approximately $138,800 compared to the book value of $139,009 as of December 31, 2022. The Company determined that the fair value of the fixed rate MHP Notes was approximately $143,500 compared to the book value of $145,333 as of March 31, 2023, and a fair value of approximately $128,400 compared to the book value of $129,966 as of December 31, 2022. The Company determined that the fair value of the fixed rate other notes was approximately $24,400 compared to the book value of $24,972 as of March 31, 2023, and a fair value of approximately $21,600 compared to the book value of $22,722 as of December 31, 2022. This is a Level II valuation technique. ​

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2023
EARNINGS PER SHARE
EARNINGS PER SHARE	16. EARNINGS PER SHARE Basic earnings per common share (“EPS”) is computed based on the weighted-average number of common shares outstanding during each reporting period. Diluted EPS is based on the weighted-average number of common shares outstanding plus the number of additional shares that would have been outstanding had the dilutive common shares been issued. The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ 2023 2022 Numerator: ​ ​ ​ ​ ​ ​ Net income (in 000's) ​ $ 16,276 ​ $ 16,092 Denominator: ​ ​ ​ ​ ​ ​ Basic weighted-average common shares outstanding ​ ​ 24,374,677 ​ ​ 24,351,223 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ Restricted stock grants ​ ​ 13,383 ​ ​ 267,515 Stock options ​ ​ 789,442 ​ ​ 42,688 Diluted weighted-average common shares outstanding ​ ​ 25,177,502 ​ ​ 24,661,426 Earnings per share attributable to Legacy Housing Corporation ​ ​ ​ ​ ​ ​ Basic ​ $ 0.67 ​ $ 0.66 Diluted ​ $ 0.65 ​ $ 0.65 ​

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2023
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS Bell Mobile Homes, a retailer owned by one of the Company’s significant owners, purchases manufactured homes from the Company. Accounts receivable balances due from Bell Mobile Homes were $104 and $0 as of March 31, 2023 and December 31, 2022, respectively. Accounts payable balances due to Bell Mobile Homes for maintenance and related services were $41 and $132 as of March 31, 2023 and December 31, 2022, respectively. Home sales to Bell Mobile Homes were $479 and $632 for the three months ended March 31, 2023 and 2022, respectively. Shipley Bros., Ltd. (“Shipley Bros.”), a retailer owned by one of the Company’s significant shareholders, purchases manufactured homes from the Company. Home sales to Shipley Bros. were $632 and $693 for the three months ended March 31, 2023 and 2022, respectively. Accounts receivable balances due from Shipley Bros. were $224 and $0 as of March 31, 2023 and December 31, 2022, respectively. There were no accounts payable balances due to Shipley Bros. as of March 31, 2023 and December 31, 2022. At March 31, 2023, the Company had a receivable of $14 from a principal shareholder. This amount is included in the Company’s accounts receivable balance as of March 31, 2023.

NATURE OF OPERATIONS (Policies)

NATURE OF OPERATIONS (Policies)	3 Months Ended
	Mar. 31, 2023
NATURE OF OPERATIONS
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed financial statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") as required by Regulation S-X, Rule 8-03. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three
Use of Estimates	Use of Estimates The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Material estimates that are susceptible to significant change in the near term primarily relate to the determination of accounts receivable, loans to mobile home parks, consumer loans, other notes receivable, inventory obsolescence, income taxes, fair value of financial instruments and contingent liabilities. Actual results could differ from these estimates.
Revenue Recognition	Revenue Recognition Product sales considered sales of homes to the independent dealer. Retail Store Sales are homes sold through Company-owned retail locations. Consignment Sales and Retail Sales may be financed by the Company, by a third party, or paid in cash. Revenue from product sales is recognized when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title to the home, as this depicts when control of the promised good is transferred to our customers. For inventory financed sales, the independent dealer enters into a financing arrangement with the Company and is required to make monthly interest payments and an annual curtailment payment for the first two years. After three years, they are required to payoff any remaining principle balance. Interest income is separately recorded in the statement of income. For other financed sales by the Company, the individual customer enters into a sales and financing contract and is required to make a down payment. These financed sales contain a significant financing component and any interest income is separately recorded in the statement of income. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the homes to the customers. Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue. The Company made an accounting policy election to account for any shipping and handling costs that occur after the transfer of control as a fulfillment cost that is accrued when control is transferred. Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less. Contract costs, which include commissions incurred related to the sale of homes, are expensed at the point-in-time when the related revenue is recognized. Warranty costs and contract costs are included in selling, general and administrative expenses in the statements of income. Warranty costs were $627 and $565 for the three months ended March 31, 2023 and 2022, respectively. For the three months ended March 31, 2023 and 2022, MHP sales to an independent third party and it’s affiliates accounted for $5,647 or 13.0% and $3,134 or 6.7% of our product sales, respectively. No other customer accounted for more than 5.0% of our product sales. For the three months ended March 31, 2023 and 2022, product sales included $2,623 and $2,999 of costs relating to subcontracted production for commercial sales, reimbursed dealer expenses for consignment sales, and certain other similar costs incurred for retail store and commercial sales Other revenue Disaggregation of Revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ 2023 2022 Product sales: ​ ​ ​ ​ ​ ​ Direct sales ​ $ 7,426 ​ $ 10,863 Commercial sales ​ 15,565 ​ 14,059 Inventory finance sales ​ ​ 13,615 ​ ​ 20,040 Retail store sales ​ ​ 3,967 ​ ​ 4,160 Other (1) ​ 2,745 ​ 2,665 Total product sales ​ 43,318 ​ 51,787 Consumer and MHP loans interest: ​ ​ Interest - consumer installment notes ​ 4,657 ​ 4,457 Interest - MHP notes ​ 3,048 ​ 2,308 Total consumer and MHP loans interest ​ 7,705 ​ 6,765 Other ​ 1,834 ​ 1,376 Total net revenue ​ $ 52,857 ​ $ 59,928 (1) Other product sales revenue from ancillary products and services including parts, freight and other services
Share-Based Compensation	Share-Based Compensation The Company accounts for share-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each restricted stock unit (the ”RSU”) with only service-based conditions is calculated based on the closing price of the Company’s common stock on the grant date. The fair value of each RSU with market based conditions is estimated using the Monte-Carlo Simulation valuation model. The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon securities that correspond to the expected life of the award. As a public entity with a small public float and limited trading of its common shares on the NASDAQ Global Market, it was not practicable for the Company to estimate the volatility of its common shares; therefore, management estimated volatility based on the historical volatilities of a small group of companies considered as close to comparable to the Company as available, all equally weighted, over the expected life of the option. Management concluded that this group is more characteristic of the Company’s business than a broad industry index. The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which can be utilized by companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience. The Company does not expect to pay dividends on its common stock. The fair value of RSU awards with market based conditions on the date of grant is estimated using the Monte-Carlo Simulation valuation model, and the Company uses the following methods to determine its underlying assumptions: expected volatilities are based on the Company’s historic stock price volatility; the expected term of the awards is based on the performance measurement period; the risk-free interest rate is based on the U.S. Treasury bond yield issued with similar life terms to the expected life of the grant.
Accounts Receivable	Accounts Receivable Included in accounts receivable “net” are receivables from direct sales of mobile homes, sales of parts and supplies to customers, consignment fees and interest. Accounts receivable “dealer financed” are receivables for interest, fees and curtailments owed by dealers under their inventory finance agreements. Accounts receivables “net” are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts receivables “dealer financed” are due upon receipt and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines the allowance by considering several factors, including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible. On March 31, 2023 and December 31, 2022, the allowance for doubtful accounts totaled $252 and $279, respectively.
Leased Property	Leased Property The Company offers mobile home park operators the opportunity to lease mobile homes for rent in lieu of purchasing the homes for cash or under a longer-term financing agreement. In this arrangement title to the mobile homes remains with the Company. The standard lease agreement is typically for 96 months or 120 months. Under the lease agreement, the lessee (mobile home park operator) uses the mobile homes as personal property to be rented at the lessee's mobile home park. The lessee makes monthly, periodic lease payments to the Company over the term of the lease. The lessee is responsible for maintaining the homes during the term of the lease. The lessee is also responsible for repairing any damage caused by force majeure events. At the end of the lease term or in the event of default, the lessee is required to deliver the homes to the Company with all improvements and in substantially the same condition as existed at the commencement of the lease. The lessee may terminate the lease on 30 days written notice and pay a lease termination fee equal to 10% of the remaining lease payments or six months’ rent, whichever is greater. The lessee has an option to purchase the homes at the end of the lease term for fair market value based on an agreed determination of fair market value by both parties using comparable sales, recent appraisal, or NADA official guidance. The lessee must provide the Company with 30 days written notice prior to expiration of the lease of intent to purchase the property for fair market value. The lease also includes a renewal option whereby the lessee has the option to extend the lease for an additional 48 months (the extended term) at the same terms and conditions as the original lease. The lessee must notify the Company of the intent to exercise this renewal option not less than six months prior to expiration of the lease term. The leased mobile homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life. Homes returned to the Company upon expiration of the lease or in the event of default will be sold by the Company through its standard sales and distribution channels. Depreciation expense for the leased property was $160 and $170 for the three months ended March 31, 2023 and 2022, respectively. Future minimum lease income under all operating leases for each of the next five years at March 31, 2023, are as follows: ​ ​ ​ ​ ​ 2023 $ 1,369 2024 ​ 1,825 2025 ​ 1,825 2026 ​ 1,825 2027 ​ 1,653 Thereafter ​ 2,264 Total ​ $ 10,761 ​
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has elected to use longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act as an emerging growth company. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) liabilities In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was effective upon issuance. The new standard has had no material impact on the Company's financial statements. From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.
Fair Value Measurements	The Company accounts for its investments and derivative instruments in accordance with ASC 820-10, Fair Value Measurement, Fair Value Measurement Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include: (1) Quoted prices for similar assets or liabilities in active markets; (2) Quoted prices for identical or similar assets or liabilities in inactive markets; (3) Inputs other than quoted prices that are observable; and (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability. Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company has used derivatives to manage risks related to interest rate movements. The Company does not enter into derivative contracts for speculative purposes. Interest rate swap contracts are recognized as assets or liabilities on the balance sheets and are measured at fair value. The fair value was calculated and provided by the lender, a Level II valuation technique. Management reviewed the fair values for the instruments as provided by the lender and determined the related asset and liability to be an accurate estimate of future gains and losses to the Company. The Company was not a party to any interest rate swap agreements during the three months ended March 31, 2023 and 2022.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, investments in US Treasury Notes, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, lines of credit, notes payable, and the dealer portion of consumer loans. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments. This is considered a Level I valuation technique. The investment in US Treasury Notes has quoted prices available in active markets that the Company can access at measurement dates. The Company determined that the fair value of the investment in US Treasury Notes was approximately $8,448 compared to the book value of $8,452 as of March 31, 2023, and a fair value of approximately $8,409 compared to the book value of $8,412 as of December 31, 2022. This is considered a Level I valuation technique. The lines of credit, notes payable, part of the MHP Notes and part of the other notes receivables have variable interest rates that reflect market rates and their fair value approximates their carrying value. This is considered a Level II valuation technique. The Company also assessed the fair value of the consumer loans receivable, the fixed rate MHP Notes and the portion of other note receivables with fixed rates based on the discounted value of the remaining principal and interest cash flows. The Company determined that the fair value of the consumer loan portfolio was approximately $140,900 compared to the book value of $141,316 as of March 31, 2023, and a fair value of approximately $138,800 compared to the book value of $139,009 as of December 31, 2022. The Company determined that the fair value of the fixed rate MHP Notes was approximately $143,500 compared to the book value of $145,333 as of March 31, 2023, and a fair value of approximately $128,400 compared to the book value of $129,966 as of December 31, 2022. The Company determined that the fair value of the fixed rate other notes was approximately $24,400 compared to the book value of $24,972 as of March 31, 2023, and a fair value of approximately $21,600 compared to the book value of $22,722 as of December 31, 2022. This is a Level II valuation technique.

NATURE OF OPERATIONS (Tables)

NATURE OF OPERATIONS (Tables)	3 Months Ended
	Mar. 31, 2023
NATURE OF OPERATIONS
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ 2023 2022 Product sales: ​ ​ ​ ​ ​ ​ Direct sales ​ $ 7,426 ​ $ 10,863 Commercial sales ​ 15,565 ​ 14,059 Inventory finance sales ​ ​ 13,615 ​ ​ 20,040 Retail store sales ​ ​ 3,967 ​ ​ 4,160 Other (1) ​ 2,745 ​ 2,665 Total product sales ​ 43,318 ​ 51,787 Consumer and MHP loans interest: ​ ​ Interest - consumer installment notes ​ 4,657 ​ 4,457 Interest - MHP notes ​ 3,048 ​ 2,308 Total consumer and MHP loans interest ​ 7,705 ​ 6,765 Other ​ 1,834 ​ 1,376 Total net revenue ​ $ 52,857 ​ $ 59,928 (1) Other product sales revenue from ancillary products and services including parts, freight and other services
Schedule of future minimum lease income	​ ​ ​ ​ ​ 2023 $ 1,369 2024 ​ 1,825 2025 ​ 1,825 2026 ​ 1,825 2027 ​ 1,653 Thereafter ​ 2,264 Total ​ $ 10,761 ​

CONSUMER LOANS (Tables)

CONSUMER LOANS (Tables)	3 Months Ended
	Mar. 31, 2023
CONSUMER LOANS
Schedule of consumer loans, net of allowance for loan losses and deferred financing fees	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Consumer loans receivable ​ $ 144,612 ​ $ 142,340 Loan discount and deferred financing fees ​ (2,480) ​ (2,501) Allowance for loan losses ​ (816) ​ (830) Consumer loans receivable, net ​ $ 141,316 ​ $ 139,009 ​
Schedule of allowance for loan losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ 2023 2022 Allowance for loan losses, beginning of period ​ $ 830 ​ $ 884 ​ Provision for loan losses ​ (70) ​ (309) ​ Charge offs (recoveries) ​ 56 ​ 149 ​ Allowance for loan losses ​ $ 816 ​ $ 724 ​ ​
Schedule of impaired and general reserve for allowance for loan losses	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Total consumer loans ​ $ 144,612 ​ $ 142,340 Allowance for loan losses ​ $ 816 ​ $ 830 Impaired loans individually evaluated for impairment ​ $ 1,612 ​ $ 1,610 Specific reserve against impaired loans ​ $ 625 ​ $ 612 Other loans collectively evaluated for allowance ​ $ 143,000 ​ $ 140,730 General allowance for loan losses ​ $ 191 ​ $ 218 ​
Schedule of consumer loans receivable that are past due	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, ​ As of December 31, ​ ​ ​ 2023 ​ % ​ 2022 ​ % Total consumer loans receivable ​ $ 144,612 100.0 $ 142,340 100.0 Past due consumer loans: ​ ​ 31 - 60 days past due ​ $ 596 0.4 ​ $ 1,150 0.8 61 - 90 days past due ​ 206 0.1 ​ 108 0.1 91 - 120 days past due ​ 110 0.1 ​ 486 0.3 Greater than 120 days past due ​ 1,408 1.0 ​ 1,255 0.9 Total past due ​ $ 2,320 1.6 ​ $ 2,999 2.1

OTHER NOTES RECEIVABLE (Tables)

OTHER NOTES RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2023
OTHER NOTES RECEIVABLE
Schedule of other notes receivable, net of allowance for loan losses and deferred financing fees	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Outstanding principal balance ​ $ 25,405 ​ $ 22,722 Allowance for loan losses ​ (433) ​ — Total ​ $ 24,972 ​ $ 22,722

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
LEASES
Schedule of future minimum lease payments under operating lease liabilities	​ ​ ​ ​ ​ 2023 $ 512 2024 ​ 610 2025 ​ 588 2026 ​ 526 2027 ​ 311 Thereafter ​ 114 Total lease payments ​ $ 2,661 Less amount representing interest ​ ​ (50) Total lease liability ​ $ 2,611 Less current lease liability ​ ​ (652) Total non-current lease liability ​ $ 1,959

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2023
INVENTORIES
Schedule of inventory	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Raw materials ​ $ 15,465 ​ $ 17,442 Work in progress ​ 696 ​ 592 Finished goods (1) ​ 24,028 ​ 21,429 Allowance for obsolescence ​ ​ (420) ​ ​ (401) Total ​ $ 39,769 ​ $ 39,062 (1) Finished goods includes $7,242 and $6,987 as of March 31, 2023 and December 31, 2022 , respectively , held for more than twelve months and classified as long-term.

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2023
PROPERTY, PLANT AND EQUIPMENT
Schedule of property, plant and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Land ​ $ 14,953 ​ $ 14,953 Buildings and leasehold improvements ​ 17,544 ​ 16,949 Vehicles ​ 1,556 ​ 1,556 Machinery and equipment ​ 5,887 ​ 5,750 Furniture and fixtures ​ 329 ​ 300 Total ​ 40,269 ​ 39,508 Less accumulated depreciation ​ (9,672) ​ (9,402) Total property, plant and equipment ​ $ 30,597 ​ $ 30,106 ​

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	3 Months Ended
	Mar. 31, 2023
OTHER ASSETS.
Schedule of Other Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Prepaid rent ​ $ 349 ​ $ 349 Other ​ 338 ​ 338 Repossessed homes ​ 1,333 ​ 795 Total ​ $ 2,020 ​ $ 1,482

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2023
ACCRUED LIABILITIES.
Schedule of accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, As of December 31, ​ ​ 2023 ​ 2022 Warranty reserve ​ $ 3,057 ​ $ 3,049 Litigation reserve ​ 394 ​ 753 Payroll ​ ​ 776 ​ ​ 1,006 Portfolio taxes and title ​ 2,178 ​ 1,610 Property tax ​ ​ 332 ​ ​ 54 Dealer rebates ​ ​ 1,141 ​ ​ 1,402 Sales tax ​ 84 ​ 61 Federal and state income taxes ​ 6,306 ​ 6,699 Other ​ 3,405 ​ 2,261 Total accrued liabilities ​ $ 17,673 ​ $ 16,895

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2023
SHARE-BASED COMPENSATION
Schedule of restricted stock units activity	The following is a summary of restricted stock units (the “RSU”) activity (in thousands, except per unit data): ​ ​ ​ ​ ​ ​ ​ ​ Number of Units ​ ​ Weighted Average Grant Date Fair Value Per Unit Nonvested, January 1, 2023 ​ 42 ​ $ 14.61 Granted ​ — ​ $ — Vested ​ (8) ​ $ 13.63 Canceled ​ — ​ $ — Nonvested, March 31, 2023 ​ 34 ​ $ 14.86
Schedule of stock option activity	The following is a summary of option activity (number of units in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Units Weighted Average Exercise Price Per Unit Weighted Average Grant Date Fair Value Per Unit Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 1, 2022 ​ 83 ​ $ 16.83 ​ $ 12.27 ​ 9.36 ​ ​ ​ Granted ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Exercised ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Forfeited ​ (28) ​ $ 14.44 ​ $ 8.67 ​ — ​ ​ ​ Outstanding, March 31, 2022 ​ 55 ​ $ 18.02 ​ $ 14.07 ​ 9.49 ​ $ 191 Exercisable, March 31, 2022 ​ — ​ $ — ​ $ — ​ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding, January 1, 2023 ​ 1,025 ​ $ 40.59 ​ $ 4.99 ​ 9.44 ​ ​ ​ Granted ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Exercised ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Forfeited ​ — ​ $ — ​ $ — ​ — ​ ​ ​ Outstanding, March 31, 2023 ​ 1,025 ​ $ 40.59 ​ $ 4.99 ​ 9.19 ​ $ — Exercisable, March 31, 2023 ​ — ​ $ — ​ $ — ​ — ​ $ — ​

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
EARNINGS PER SHARE
Summary of reconciliation of the numerators and denominators used in the computations of both basic and diluted EPS	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ 2023 2022 Numerator: ​ ​ ​ ​ ​ ​ Net income (in 000's) ​ $ 16,276 ​ $ 16,092 Denominator: ​ ​ ​ ​ ​ ​ Basic weighted-average common shares outstanding ​ ​ 24,374,677 ​ ​ 24,351,223 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ Restricted stock grants ​ ​ 13,383 ​ ​ 267,515 Stock options ​ ​ 789,442 ​ ​ 42,688 Diluted weighted-average common shares outstanding ​ ​ 25,177,502 ​ ​ 24,661,426 Earnings per share attributable to Legacy Housing Corporation ​ ​ ​ ​ ​ ​ Basic ​ $ 0.67 ​ $ 0.66 Diluted ​ $ 0.65 ​ $ 0.65

NATURE OF OPERATIONS - Revenue

NATURE OF OPERATIONS - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue
Warranty costs	$ 627	$ 565
Product sales	43,318	51,787
Dealer commission, reimbursed dealer expenses and other similar costs	$ 2,623	2,999
Annual curtail payment period	2 years
Period required to pay off remaining principle balance	3 years
Revenue from contract with customer product and service benchmark | Customer concentration risk | Independent third party and affiliates
Disaggregation of Revenue
Product sales	$ 5,647	$ 3,134
Concentration risk percentage	13%	6.70%
Minimum
Disaggregation of Revenue
Term of lease agreement	96 months
Maximum
Disaggregation of Revenue
Term of lease agreement	120 months

NATURE OF OPERATIONS - Disaggre

NATURE OF OPERATIONS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue
Product sales	$ 43,318	$ 51,787
Consumer and MHP loans interest:
Interest - consumer installments notes	4,657	4,457
Interest - MHP notes	3,048	2,308
Total consumer and MHP loans interest	7,705	6,765
Other	1,834	1,376
Total net revenue	52,857	59,928
Direct sales
Disaggregation of Revenue
Product sales	7,426	10,863
Commercial sales
Disaggregation of Revenue
Product sales	15,565	14,059
Inventory finance sales
Disaggregation of Revenue
Product sales	13,615	20,040
Retail store sales
Disaggregation of Revenue
Product sales	3,967	4,160
Other
Disaggregation of Revenue
Product sales	$ 2,745	$ 2,665

NATURE OF OPERATIONS - Accounts

NATURE OF OPERATIONS - Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Accounts Receivable
Credit period	30 days
Allowance for doubtful accounts	$ 252	$ 279

NATURE OF OPERATIONS - Leased P

NATURE OF OPERATIONS - Leased Property (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lessor, Description Of Leases [Line Items]
Notice period for lease termination	30 days
Termination fees as a percentage of remaining lease payments	10%
Number of month's rent to be paid	6 months
Notice period for purchase of property	30 days
Extended term of lease	48 months
Notice period for exercise of renewal extension	6 months
Useful life	15 years
Depreciation expense on leased property	$ 160	$ 170
Minimum
Lessor, Description Of Leases [Line Items]
Term of lease agreement	96 months
Maximum
Lessor, Description Of Leases [Line Items]
Term of lease agreement	120 months

NATURE OF OPERATIONS - Future m

NATURE OF OPERATIONS - Future minimum lease income (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
2023	$ 1,369
2024	1,825
2025	1,825
2026	1,825
2027	1,653
Thereafter	2,264
Total	$ 10,761

NATURE OF OPERATIONS - Recent A

NATURE OF OPERATIONS - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Mar. 31, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets		$ 454,951	$ 436,813
Liabilities		57,078	54,709
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Retained earnings		221,574	205,996
Cumulative effect, period of adoption, adjustment | ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets	$ 3,258
Liabilities	$ 3,258
Cumulative effect, period of adoption, adjustment | ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses			900
Retained earnings			(698)
MHP Notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses		205	0
MHP Notes | Cumulative effect, period of adoption, adjustment | ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses			225
Dealer Financed Contracts [Member] | Cumulative effect, period of adoption, adjustment | ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses			187
Other Note Receivable
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses		$ 433
Other Note Receivable | Cumulative effect, period of adoption, adjustment | ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses			$ 488

CONSUMER LOANS - Narrative (Det

CONSUMER LOANS - Narrative (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Escrow liability	$ 9,272	$ 9,653
Repossessed assets	$ 1,333	$ 795
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average contractual interest rate	13.30%	13.40%
Escrow liability	$ 9,272	$ 9,653
Number of components comprising the allowance for loan losses | item	2
Number of years historical loss rate considers for calculation	3 years
Repossessed assets	$ 1,333	795
Principal outstanding on consumer loans	$ 1,612	$ 1,610
Minimum | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer loans receivable term	2 years
Maximum | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer loans receivable term	30 years

CONSUMER LOANS - Consumer loans

CONSUMER LOANS - Consumer loans receivable, net (Details) - Consumer - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer loans receivable	$ 144,612	$ 142,340
Loan discount and deferred financing fees	(2,480)	(2,501)
Allowance for loan losses	(816)	(830)	$ (724)	$ (884)
Consumer loans receivable, net	$ 141,316	$ 139,009

CONSUMER LOANS - Allowance for

CONSUMER LOANS - Allowance for loan losses (Details) - Consumer - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, beginning of period	$ 830	$ 884	$ 884
Provision for loan losses	(70)	(309)
Charge offs (recoveries)	56	149
Allowance for loan losses	$ 816	$ 724	$ 830

CONSUMER LOANS - Impaired and g

CONSUMER LOANS - Impaired and general reserve for allowance for loan losses (Details) - Consumer - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
Total consumer loans	$ 144,612	$ 142,340
Allowance for loan losses	816	830	$ 724	$ 884
Impaired loans individually evaluated for impairment	1,612	1,610
Specific reserve against impaired loans	625	612
Other loans collectively evaluated for allowance	143,000	140,730
General allowance for loan losses	$ 191	$ 218

CONSUMER LOANS - Aging of consu

CONSUMER LOANS - Aging of consumer loans receivable (Details) - Consumer - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Past due consumer loans:
Total consumer loans receivable (as a percent)	100%	100%
Consumer loans receivable	$ 144,612	$ 142,340
Financial Asset, Past Due
Past due consumer loans:
Consumer loans receivable	$ 2,320	$ 2,999
Consumer loans receivable past due (Percent)	1.60%	2.10%
31 - 60 days past due
Past due consumer loans:
Consumer loans receivable	$ 596	$ 1,150
Consumer loans receivable past due (Percent)	0.40%	0.80%
61 - 90 days past due
Past due consumer loans:
Consumer loans receivable	$ 206	$ 108
Consumer loans receivable past due (Percent)	0.10%	0.10%
91 - 120 days past due
Past due consumer loans:
Consumer loans receivable	$ 110	$ 486
Consumer loans receivable past due (Percent)	0.10%	0.30%
Greater than 120 days past due
Past due consumer loans:
Consumer loans receivable	$ 1,408	$ 1,255
Consumer loans receivable past due (Percent)	1%	0.90%

NOTES RECEIVABLE FROM MOBILE _2

NOTES RECEIVABLE FROM MOBILE HOME PARKS (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) item
Notes Receivable
Repossessed Assets	$ 1,333	$ 795
Notes Receivable from Mobile Home Parks
Notes Receivable
Note receivable with fixed rate of interest	$ 145,000
Interest rate spread (as a percent)	4%
Interest rate on the MHP Notes	8%	8.10%
Impaired loans individually evaluated for impairment	$ 0	$ 0
Repossessed Assets	0	0
Unamortized finance fees	1,254	1,068
Charge offs	0	0
Allowance for loan losses	$ 205	$ 0
Notes Receivable from Mobile Home Parks | Credit concentration risk | Independent third party and affiliates
Notes Receivable
Number of Independent third parties | item	3	3
Notes Receivable from Mobile Home Parks | Credit concentration risk | Independent third party and affiliates one
Notes Receivable
Concentration risk percentage	15.30%	12.30%
Notes Receivable from Mobile Home Parks | Credit concentration risk | Independent third party and affiliates two
Notes Receivable
Concentration risk percentage	16.60%	16.60%
Notes Receivable from Mobile Home Parks | Credit concentration risk | Independent third party and affiliates three
Notes Receivable
Concentration risk percentage	31%	34%
Minimum | Notes Receivable from Mobile Home Parks
Notes Receivable
Fixed rate of interest (as a percent)	6.90%
Interest rate spread (as a percent)	8%
Term Of Notes Receivables	1 year
Maximum | Notes Receivable from Mobile Home Parks
Notes Receivable
Fixed rate of interest (as a percent)	11.50%
Term Of Notes Receivables	10 years

OTHER NOTES RECEIVABLE (Details

OTHER NOTES RECEIVABLE (Details) - Other Note Receivable - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Notes Receivable
Impaired loans individually evaluated for impairment	$ 0	$ 0
Outstanding principal balance	25,405	22,722
Allowance for loan losses	(433)
Total	24,972	22,722
Financial Asset, Past Due
Notes Receivable
Outstanding principal balance	$ 0	$ 0
Minimum
Notes Receivable
Interest rate on the other notes	5%
Maximum
Notes Receivable
Interest rate on the other notes	17.90%

LEASES (Details)

LEASES (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) lease	Mar. 31, 2022 USD ($)
LEASES
Number of operating leases	13
Number of operating leases subleased	3
Operating lease, term of contract (in years)	10 years
Options to renew	true
Operating lease weighted average remaining lease term1	4 years 4 months 24 days
Weighted Average Discount Rate	2.12%
Variable lease cost | $	$ 0	$ 0
Minimum
LEASES
Operating lease, term of contract (in years)	5 years
Maximum
LEASES
Operating lease, term of contract (in years)	10 years
Heritage Housing and Tiny Homes retail locations
LEASES
Number of operating leases	8
Corporate and administrative offices in Bedford, TX and Norcross, GA
LEASES
Number of operating leases subleased	2

LEASES - Future minimum lease p

LEASES - Future minimum lease payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
LEASES
2023	$ 512
2024	610
2025	588
2026	526
2027	311
Thereafter	114
Total Lease payments	2,661
Less amount representing interest	(50)
Total Lease liability	2,611
Less current lease liability	(652)	$ (650)
Total non-current lease liability	$ 1,959	$ 2,121

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
INVENTORIES
Raw materials	$ 15,465	$ 17,442
Work in progress	696	592
Finished goods (1)	24,028	21,429
Allowance for obsolescence	(420)	(401)
Total	39,769	39,062
Inventories, net	$ 7,242	$ 6,987

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
PROPERTY, PLANT AND EQUIPMENT
Total	$ 40,269		$ 39,508
Less accumulated depreciation	(9,672)		(9,402)
Total property, plant and equipment	30,597		30,106
Depreciation expense	270	$ 260
Cost of product sales
PROPERTY, PLANT AND EQUIPMENT
Depreciation expense	126	$ 121
Land
PROPERTY, PLANT AND EQUIPMENT
Total	14,953		14,953
Buildings and leasehold improvements
PROPERTY, PLANT AND EQUIPMENT
Total	17,544		16,949
Vehicles
PROPERTY, PLANT AND EQUIPMENT
Total	1,556		1,556
Machinery and equipment
PROPERTY, PLANT AND EQUIPMENT
Total	5,887		5,750
Furniture and fixtures
PROPERTY, PLANT AND EQUIPMENT
Total	$ 329		$ 300

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
OTHER ASSETS.
Prepaid rent	$ 349	$ 349
Other	338	338
Repossessed homes	1,333	795
Total	$ 2,020	$ 1,482

DEBT SECURITIES (Details)

DEBT SECURITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
DEBT SECURITIES
Held to maturity securities	$ 8,452	$ 8,412

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ACCRUED LIABILITIES.
Warranty reserve	$ 3,057	$ 3,049
Litigation reserve	394	753
Payroll	776	1,006
Portfolio taxes and title	2,178	1,610
Property tax	332	54
Dealer rebates	1,141	1,402
Sales tax	84	61
Federal and state income taxes	6,306	6,699
Other	3,405	2,261
Total accrued liabilities	$ 17,673	$ 16,895

DEBT - Lines of Credit (Details

DEBT - Lines of Credit (Details) - Revolver 1 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Jul. 28, 2022	Mar. 30, 2020
Lines of Credit
Maximum borrowing capacity				$ 70,000
Effective interest rate	6.66%	6.12%
Amount of available credit	$ 12,162	$ 17,400
Interest expense	91	56
Outstanding balance	7,838	$ 2,545
Tangible net worth	$ 120,000
Debt to EBITDA ratio	4
Deferred debt issuance costs	$ 295
Borrowing amount suspended			$ 50,000
Current borrowing capacity			$ 20,000
SOFR
Lines of Credit
Spread rate	2%

SHARE-BASED COMPENSATION - Plan

SHARE-BASED COMPENSATION - Plan (Details) - USD ($) $ / shares in Units, $ in Thousands									3 Months Ended
	Nov. 29, 2022	Nov. 15, 2022	Jun. 07, 2022	Jan. 06, 2022	Nov. 30, 2021	Sep. 23, 2021	Aug. 10, 2020	Feb. 07, 2019	Mar. 31, 2023	Jun. 30, 2020	Dec. 31, 2022
SHARE-BASED COMPENSATION
Number of shares may be issued to employees, directors, consultants and nonemployee service providers in the form of stock options, stock and stock appreciation rights									10,000,000
Number of shares available for grant											9,700,000
Stock options
SHARE-BASED COMPENSATION
Contractual life									10 years
Stock options | Management
SHARE-BASED COMPENSATION
Contractual life						10 years	10 years
Vesting percentage						10%	20%
Stock options | Chief Executive Officer
SHARE-BASED COMPENSATION
Contractual life			10 years
Vesting percentage			10%
Restricted shares | Management
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)								120,000
Grant date fair value								$ 1,636
Vesting percentage								14.30%
Restricted shares forfeited (in shares)										42,857
Restricted shares | Independent directors
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)	1,734		301		1,202
Grant date fair value	$ 30		$ 5		$ 30
Restricted shares | Executive Chairman
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)				150,000
Grant date fair value				$ 3,741
Restricted shares | Chief Executive Officer
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)			14,700
Grant date fair value			$ 235
Vesting percentage			50%
Contingent equity awards | $36 Equity Award
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)				175,000
Threshold market days remained granted				15 days
Granted (in dollars per share)		$ 36		$ 36
Grant date fair value				$ 1,412
Contingent equity awards | $36 Equity Award | Vested on June 16, 2024
SHARE-BASED COMPENSATION
Vesting percentage				50%
Contingent equity awards | $48 Equity Award
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)				175,000
Threshold market days remained granted				15 days
Granted (in dollars per share)		$ 48		$ 48
Grant date fair value				$ 683
Contingent equity awards | $48 Equity Award | Vested at granted
SHARE-BASED COMPENSATION
Vesting percentage				50%
Contingent equity awards | Executive Chairman
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)				350,000

SHARE-BASED COMPENSATION - Rest

SHARE-BASED COMPENSATION - Restricted stock units (Details) - Restricted stock units $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Number of units
Nonvested at the beginning | shares	42,000
Vested | shares	(8,000)
Nonvested at the end | shares	34,000
Weighted average grant date fair value
Nonvested at the beginning (in dollars per share) | $ / shares	$ 14.61
Vested (in dollars per share) | $ / shares	13.63
Nonvested at the end (in dollars per share) | $ / shares	$ 14.86
Unrecognized compensation expense | $	$ 376
Unrecognized compensation expense, recognition period	1 year 6 months 18 days

SHARE-BASED COMPENSATION - Stoc

SHARE-BASED COMPENSATION - Stock options (Details) - $ / shares				3 Months Ended
	Jun. 07, 2022	Sep. 23, 2021	Aug. 10, 2020	Mar. 31, 2023	Mar. 31, 2022
Stock options
SHARE-BASED COMPENSATION
Stock option forfeited (in shares)					28,000
Fair value assumptions for options granted
Expiration period				10 years
Stock options | Management
SHARE-BASED COMPENSATION
Stock options granted (in shares)		55,490	34,626
Exercise price (in dollar per share)		$ 18.02	$ 14.44
Vesting percentage		10%	20%
Stock option forfeited (in shares)					27,701
Fair value assumptions for options granted
Risk free interest rate		1.41%	0.24%
Dividend yield		0%	0%
Expected volatility		75%	75%
Expiration period		10 years	10 years
Expected life		7 years 9 months 18 days	6 years 6 months
Stock options | Chief Executive Officer
SHARE-BASED COMPENSATION
Stock options granted (in shares)	900,000
Vesting percentage	10%
Fair value assumptions for options granted
Risk free interest rate	2.98%
Dividend yield	0%
Expected volatility	45.70%
Expiration period	10 years
Expected life	7 years 9 months 18 days
Stock options | Chief Executive Officer | Tranche One
SHARE-BASED COMPENSATION
Stock options granted (in shares)	300,000
Exercise price (in dollar per share)	$ 36
Stock options | Chief Executive Officer | Tranche Two
SHARE-BASED COMPENSATION
Stock options granted (in shares)	600,000
Exercise price (in dollar per share)	$ 48
Incentive stock options | Chief Executive Officer
SHARE-BASED COMPENSATION
Stock options granted (in shares)	62,460
Exercise price (in dollar per share)	$ 16.01
Vesting percentage	10%
Fair value assumptions for options granted
Risk free interest rate	2.98%
Dividend yield	0%
Expected volatility	45.70%
Expiration period	10 years
Expected life	7 years 9 months 18 days
Incentive stock options | Chief Financial Officer
SHARE-BASED COMPENSATION
Stock options granted (in shares)	62,460
Exercise price (in dollar per share)	$ 16.01
Vesting percentage	10%
Fair value assumptions for options granted
Risk free interest rate	2.98%
Dividend yield	0%
Expected volatility	45.70%
Expiration period	10 years
Expected life	7 years 9 months 18 days

SHARE-BASED COMPENSATION - Summ

SHARE-BASED COMPENSATION - Summary of Stock options activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Number of units
Outstanding	1,025,000	83,000	83,000
Forfeited		(28,000)
Outstanding	1,025,000	55,000	1,025,000	83,000
Weighted Average Exercise Price Per Unit
Outstanding at the beginning (in dollars per share)	$ 40.59	$ 16.83	$ 16.83
Forfeited (in dollars per share)		14.44
Outstanding at the end (in dollars per share)	40.59	18.02	40.59	$ 16.83
Weighted Average Grant Date Fair Value Per Unit
Outstanding at the beginning (in dollars per share)	4.99	12.27	12.27
Forfeited (in dollars per share)		8.67
Outstanding at the end (in dollars per share)	$ 4.99	$ 14.07	$ 4.99	$ 12.27
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value
Outstanding (in years)	9 years 2 months 8 days	9 years 5 months 26 days	9 years 5 months 8 days	9 years 4 months 9 days
Outstanding at the end (in dollars)		$ 191
Non-vested shares	1,025,000
Unrecognized compensation expense	$ 4,699
Unrecognized compensation expense, recognition period	9 years 2 months 8 days

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
INCOME TAXES
Tax expense	$ 3,435	$ 3,558
Effective tax rate (as a percent)	17.40%	18.10%
Federal statutory rate	21%	21%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitment
Self-insured liability	$ 174	$ 149
Repurchase agreements | Maximum
Commitment
Repurchase commitment	$ 8,396	$ 8,925

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Leased Assets [Line Items]
Operating lease, term of contract (in years)	10 years
Rent expense	$ 182	$ 163
Sublease rental income	$ 67	$ 82
Minimum
Operating Leased Assets [Line Items]
Operating lease, term of contract (in years)	5 years
Sublease, term of contract (in years)	3 years
Maximum
Operating Leased Assets [Line Items]
Operating lease, term of contract (in years)	10 years
Sublease, term of contract (in years)	11 years

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Legal Matters (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
Legal reserves	$ 394	$ 753

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value | Level 1 | US Treasury Notes
Receivables, Fair Value Disclosure [Abstract]
Debt securities	$ 8,448	$ 8,409
Fair Value | Level 2 | Consumer Loan
Receivables, Fair Value Disclosure [Abstract]
Loans	140,900	138,800
Fair Value | Level 2 | Notes Receivable from Mobile Home Parks
Receivables, Fair Value Disclosure [Abstract]
Notes receivable	143,500	128,400
Fair Value | Level 2 | Other Note Receivable
Receivables, Fair Value Disclosure [Abstract]
Notes receivable	24,400	21,600
Book Value | US Treasury Notes
Receivables, Fair Value Disclosure [Abstract]
Debt securities	8,452	8,412
Book Value | Consumer Loan
Receivables, Fair Value Disclosure [Abstract]
Loans	141,316	139,009
Book Value | Notes Receivable from Mobile Home Parks
Receivables, Fair Value Disclosure [Abstract]
Notes receivable	145,333	129,966
Book Value | Other Note Receivable
Receivables, Fair Value Disclosure [Abstract]
Notes receivable	$ 24,972	$ 22,722

EARNINGS PER SHARE- Tabular (De

EARNINGS PER SHARE- Tabular (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income (in 000's)	$ 16,276	$ 16,092
Denominator:
Basic weighted-average common shares outstanding	24,374,677	24,351,223
Effect of dilutive securities:
Diluted weighted-average common shares outstanding	25,177,502	24,661,426
Earnings per share attributable to Legacy Housing Corporation
Basic	$ 0.67	$ 0.66
Diluted	$ 0.65	$ 0.65
Restricted stock units
Effect of dilutive securities:
Dilutive securities	13,383	267,515
Stock options
Effect of dilutive securities:
Dilutive securities	789,442	42,688

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Bell Mobile Homes
RELATED PARTY TRANSACTIONS
Accounts receivable related parties	$ 104		$ 0
Accounts payable related parties	41		132
Home sales to related parties	479	$ 632
Shipley Bros.
RELATED PARTY TRANSACTIONS
Accounts receivable related parties	224		0
Accounts payable related parties	0		$ 0
Home sales to related parties	632	$ 693
Principal Shareholder
RELATED PARTY TRANSACTIONS
Accounts receivable related parties	$ 14