Leatt (LEAT) 10-Q 9 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Cover [Abstract]
Entity Registrant Name	LEATT CORPORATION
Entity Central Index Key	0001456189
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		5,826,892
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Ex Transition Period	true
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-54693
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	12 Kiepersol Drive
Entity Address, Address Line Two	Atlas Gardens
Entity Address, Address Line Three	Contermanskloof Road
Entity Address, City or Town	Durbanville
Entity Address, Postal Zip Code	7441
Entity Address, Country	ZA
City Area Code	27
Local Phone Number	21-557-7257
Title of 12(b) Security	Common Stock
Entity Tax Identification Number	20-2819367

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 4,835,268	$ 5,022,436
Short-term investments	58,267	58,262
Accounts receivable, net	22,504,973	12,660,936
Inventory, net	25,021,494	21,081,481
Payments in advance	1,201,454	1,610,640
Prepaid expenses and other current assets	1,332,503	4,178,427
Total current assets	54,953,959	44,612,182
Property and equipment, net	3,066,304	3,128,086
Operating lease right-of-use assets, net	1,163,782	1,393,213
Other Assets
Deposits	40,141	33,339
Total Assets	59,224,186	49,166,820
Current Liabilities
Accounts payable and accrued expenses	12,481,062	14,617,671
Note payable, current	89,739	83,270
Operating lease liabilities, current	286,564	318,621
Income taxes payable	4,812,039	2,738,818
Short term loan, net of finance charges	142,936	975,025
Total current liabilities	17,812,340	18,733,405
Deferred compensation	380,000	320,000
Note payable, net of current portion	124,690	189,249
Operating lease liabilities, net of current portion	877,218	1,074,592
Deferred tax liability, net	228,600	228,600
Commitments and contingencies
Stockholders' Equity
Preferred stock, $.001 par value, 1,120,000 shares authorized, 120,000 shares issued and outstanding	3,000	3,000
Common stock, $.001 par value, 28,000,000 shares authorized, 5,826,892 and 5,673,683 shares issued and outstanding	130,280	130,162
Additional paid - in capital	9,929,779	9,230,847
Accumulated other comprehensive loss	(1,335,752)	(779,268)
Retained earnings	31,074,031	20,036,233
Total stockholders' equity	39,801,338	28,620,974
Total Liabilities and Stockholders' Equity	$ 59,224,186	$ 49,166,820

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	1,120,000	1,120,000
Preferred Stock, Shares Issued	120,000	120,000
Preferred Stock, Shares Outstanding	120,000	120,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	28,000,000	28,000,000
Common Stock, Shares, Issued	5,826,892	5,673,683
Common Stock, Shares, Outstanding	5,826,892	5,673,683

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Operations [Abstract]
Revenues	$ 23,258,752	$ 22,100,827	$ 65,425,170	$ 49,297,861
Cost of Revenues	13,122,213	12,571,692	38,017,469	27,523,233
Gross Profit	10,136,539	9,529,135	27,407,701	21,774,628
Product Royalty Income	74,411	58,246	200,221	141,535
Operating Expenses
Salaries and wages	1,274,554	975,676	3,897,693	2,813,024
Commissions and consulting expenses	143,691	144,837	456,911	581,485
Professional fees	166,537	510,713	505,305	971,969
Advertising and marketing	1,166,804	633,915	2,526,808	1,669,648
Office lease and expenses	145,499	99,314	546,398	273,887
Research and development costs	501,604	468,922	1,516,147	1,319,183
Bad debt expense	97,325	42,197	101,680	56,290
General and administrative expenses	977,796	691,696	2,399,899	1,830,055
Depreciation	264,923	265,777	829,790	744,713
Total operating expenses	4,738,733	3,833,047	12,780,631	10,260,254
Income from Operations	5,472,217	5,754,334	14,827,291	11,655,909
Other Income
Interest and other expenses, net	7,784	1,413	5,592	1,354
Total other income	7,784	1,413	5,592	1,354
Income Before Income Taxes	5,480,001	5,755,747	14,832,883	11,657,263
Income Taxes	1,391,878	1,467,936	3,795,085	2,899,966
Net Income Available to Common Shareholders	$ 4,088,123	$ 4,287,811	$ 11,037,798	$ 8,757,297
Net Income per Common Share
Basic	$ 0.7	$ 0.79	$ 1.9	$ 1.61
Diluted	$ 0.65	$ 0.69	$ 1.77	$ 1.42
Weighted Average Number of Common Shares Outstanding
Basic	5,826,892	5,461,933	5,802,771	5,443,780
Diluted	6,261,160	6,190,748	6,237,039	6,172,596
Comprehensive Income
Net Income	$ 4,088,123	$ 4,287,811	$ 11,037,798	$ 8,757,297
Other comprehensive income, net of $0 deferred income taxes in 2022 and 2021
Foreign currency translation	(431,436)	(146,285)	(556,484)	(113,744)
Total Comprehensive Income	$ 3,656,687	$ 4,141,526	$ 10,481,314	$ 8,643,553

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Operations [Abstract]
Deferred income taxes	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2022 - USD ($)	Preferred Stock A [Member]	Common Stock [Member]	Additional Paid - In Capital [Member]	Accumulated Other Comprehensive Income Loss [Member]	Retained Earnings [Member]	Total
Beginning Balance at Dec. 31, 2021	$ 3,000	$ 130,162	$ 9,230,847	$ (779,268)	$ 20,036,233	$ 28,620,974
Beginning Balance (Shares) at Dec. 31, 2021	120,000	5,673,683
Compensation cost recognized in connection with stock options			82,530			82,530
Exercise of stock options		$ 118	255,682			255,800
Exercise of stock options (Shares)		118,000
Options exercised on a cashless basis		$ 35,209
Restricted stock awards			360,720			360,720
Net income					11,037,798	11,037,798
Foreign currency translation adjustment				(556,484)		(556,484)
Ending Balance at Sep. 30, 2022	$ 3,000	$ 130,280	$ 9,929,779	$ (1,335,752)	$ 31,074,031	$ 39,801,338
Ending Balance (Shares) at Sep. 30, 2022	120,000	5,826,892

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net income	$ 11,037,798	$ 8,757,297
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	829,790	744,713
Stock-based compensation	443,250	55,020
Bad debts reserve	81,305	32,423
Inventory reserve	148,901	51,840
(Gain) loss on sale of property and equipment	(23,047)	5,767
(Increase) decrease in:
Accounts receivable	(9,925,342)	(10,023,484)
Inventory	(4,088,914)	(5,060,128)
Payments in advance	409,186	(952,067)
Prepaid expenses and other current assets	2,845,924	(2,212,611)
Income tax refunds receivable	0	2,964
Deposits	(6,802)	146
Increase (decrease) in:
Accounts payable and accrued expenses	(2,136,609)	8,412,521
Income taxes payable	2,073,221	1,271,016
Deferred compensation	60,000	60,000
Net cash provided by operating activities	1,748,661	1,145,417
Cash flows from investing activities
Capital expenditures	(865,204)	(892,658)
Proceeds from sale of property and equipment	43,469	0
Increase in short-term investments, net	(5)	(4)
Net cash used in investing activities	(821,740)	(892,662)
Cash flows from financing activities
Issuance of common stock	255,800	0
Repayment of note payable to bank	(58,090)	0
Repayment of short-term loan, net	(832,089)	(534,948)
Net cash used in financing activities	(634,379)	(534,948)
Effect of exchange rates on cash and cash equivalents	(479,710)	(98,178)
Net decrease in cash and cash equivalents	(187,168)	(380,371)
Cash and cash equivalents - beginning of period	5,022,436	2,967,042
Cash and cash equivalents - end of period	4,835,268	2,586,671
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	37,427	21,741
Cash paid for income taxes	1,721,864	1,659,698
Other noncash investing and financing activities
Common stock issued for services	$ 443,250	$ 55,020

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Basis of presentation [Abstract]
Basis of presentation [Text Block]	Note 1 - Basis of presentation The consolidated balance sheet as of December 31, 2021 was audited and appears in the Form 10-K filed by the Company with the Securities and Exchange Commission on March 10, 2022. The consolidated balance sheet as of September 30, 2022 and the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021, changes in stockholders' equity for the nine months ended September 30, 2022, cash flows for the nine months ended September 30, 2022 and 2021, and the related information contained in these notes have been prepared by management without audit. In the opinion of management, all adjustments (which include only normal recurring items) necessary to present fairly the financial position, results of operations and cash flows in conformity with generally accepted accounting principles as of September 30, 2022 and for all periods presented have been made. Interim operating results are not necessarily indicative of operating results for a full year. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. While management of the Company believes that the disclosures presented are adequate to make the information not misleading, it is suggested that these condensed consolidated financial statements be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2021 as filed with the Securities and Exchange Commission in the Company's Form 10-K.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventory [Text Block]	Note 2 - Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out (FIFO) method. Inventory consists primarily of finished goods. Shipping and handling costs are included in the cost of inventory. In assessing the inventory value, the Company must make estimates and judgments regarding reserves required for product obsolescence, aging of inventory and other issues potentially affecting the saleable condition of products. In performing such evaluations, the Company utilizes historical experience as well as current market information. The reserve for obsolescence was $265,084 at September 30, 2022 and $116,183 at December 31, 2021.

Operating Leases - Right-of-Use

Operating Leases - Right-of-Use Assets and Lease Liability Obligations	9 Months Ended
	Sep. 30, 2022
Lessee Disclosure [Abstract]
Operating Leases - Right-of-Use Assets and Lease Liability Obligations [Text Block]	Note 3 - Operating Leases - Right-of-Use Assets and Lease Liability Obligations The Company has three non-cancelable operating leases, for office and warehousing space, expiring in June 2023, August 2023 and January 2027, respectively. Rent expense for these operating leases is recognized over the term of the lease on a straight-line basis. Below is a summary of the Company's Operating Right-of-Use Assets and Operating Lease liabilities as of September 30, 2022 and December 31, 2021: 2022 2021 Assets Operating lease ROU assets $ 1,163,782 $ 1,393,213 Liabilities Operating lease liabilities, current $ 286,564 $ 318,621 Operating lease liabilities, net of current portion 877,218 1,074,592 Total operating lease liabilities $ 1,163,782 $ 1,393,213 During the nine months ended September 30, 2022 and 2021 the Company recognized $260,892 and $164,097, respectively, in operating lease expenses, which are included in office lease and expenses in the Company's consolidated statements of operations and comprehensive income. Generally, the Company's lease agreements do not specify an implicit rate. Therefore, the Company estimates the incremental borrowing rate, which is defined as the interest rate the Company would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2022, and December 31, 2021 the following disclosures for the remaining lease terms and incremental borrowing rates were applicable: Supplemental disclosure September 30, December 31, 2022 2021 Weighted average remaining lease term 5 years 5 years Weighted average discount rate 3.75% 4.08% Maturities of lease liabilities as of September 30, 2022 were as follows: Year ended December 31, Amounts under Operating Leases Remaining 2022 $ 74,879 2023 291,313 2024 281,663 2025 290,098 2026 298,791 2027 25,455 Total minimum lease payments $ 1,262,199 Less: amount representing interest $ (98,417 ) Total operating lease liabilities $ 1,163,782 Supplemental cash flow information for the nine months ended September 30, 2022 and 2021 are as follows: Nine months Nine months ended September ended September 30, 2022 30, 2021 Cash paid for amounts included in the measurement of lease liabilities $ 262,832 $ 179,129 Right-of-use assets obtained in exchange for lease obligations $ 41,163 $ 1,418,719

Revolving line of Credit facili

Revolving line of Credit facility	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Revolving line of Credit facility [Text Block]	Note 4 - Revolving line of Credit facility On November 19, 2018, the Company entered into a $1,000,000 revolving line of credit agreement with a bank. Advances under the line of credit bear interest at the LIBOR Daily Floating Rate plus 2.5 percentage points commencing January 1, 2019. The line of credit matured on November 19, 2020, at which time the unpaid principal, interest, or other charges outstanding under the agreement were due and payable. On November 5, 2020, the Company executed an amendment to the line of credit agreement to extend the credit facility through November 19, 2021. The amendment took retroactive effect to October 27, 2020 and introduced an index floor so that payments for any future advances will bear interest at the greater of the LIBOR Daily Floating Rate or an Index Floor of 1.25 percentage points plus 2.5 percentage points. Obligations under the line of credit are secured by equipment and fixtures in the United States of America, accounts receivable and inventory of Leatt Corporation and Two-Eleven Distribution, LLC. On March 1, 2021, the Company executed an amendment to the line of credit. The amendment took retroactive effect to February 17, 2021 and extended the line of credit facility through February 28, 2022 and increased the revolving line of credit to $1,500,000. Effective January 21, 2022, the Company executed an amendment agreement for the line of credit to extend the line of credit facility through February 28, 2023, and to replace interest determined by LIBOR daily Floating Rate with the Bloomberg short- term Bank Yield Index Rate. As of September 30, 2022, and December 31, 2021, respectively there were no advances of the line of credit leaving $1,500,000 and $1,500,000 available for advances.

Short-term Loan

Short-term Loan	9 Months Ended
	Sep. 30, 2022
Short-term Debt [Abstract]
Short-term Loan [Text Block]	Note 5 - Short-term Loan The Company carries product liability insurance policies with a U.S. and South African-based insurance carrier. The U.S. short-term loan is payable in monthly installments of $102,078 over eleven months including interest at 4.650% and the South African short-term loan is payable in monthly installments of $5,170, over a ten-month period at a flat interest rate of 3.10%. The Company carries various short-term insurance policies in the U.S. The Company finances payment of its short-term insurance premiums over the period of coverage, which is generally twelve months. The short-term loan is payable on a sliding scale, in two payments of $37,381, three payments of $1,172 and six payments of $326 at 6.360% annual interest rate. The Company carries a directors' and officers' liability insurance policy with an U.K-based insurance carrier. The U.S. short-term loan is payable in monthly installments of $19,781, over a seven-month period at 6.360% annual interest rate.

Note Payable

Note Payable	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Note Payable [Text Block]	Note 6 - Note payable Two Eleven entered into a Note Payable with a bank effective December 17, 2021 in the principal amount of $272,519, secured by equipment. The Note is payable in 36 consecutive monthly installments of $7,990, including interest at a fixed rate of 3.5370%, commencing February 5, 2022, and continuing to January 5, 2025. As of September 30, 2022 and December 31, 2021, the amounts of $214,429 and $272,519 were outstanding, respectively. September December 31, 30, 2022 2021 Liabilities Note payable, current $ 89,739 $ 83,270 Note payable, net off current portion 124,690 189,249 $ 214,429 $ 272,519 Principal maturities of note payable as of September 30, 2022 were as follows: Year ended December 31, Amounts under Notes Payable Remaining 2022 $ 22,138 2023 90,535 2024 93,790 2025 7,966 $ 214,429

Revenue and Cost Recognition

Revenue and Cost Recognition	9 Months Ended
	Sep. 30, 2022
Revenue Recognition [Abstract]
Revenue and Cost Recognition [Text Block]	Note 7 - Revenue and Cost Recognition The Company's products are sold worldwide to a global network of distributors and dealers, and directly to consumers when there are no dealers or distributors in their geographic area or where consumers choose to purchase directly via the Company's e-commerce website (collectively the "customers"). Revenues from product sales are recognized when earned, net of applicable provisions for discounts and returns and allowances in the event of product defect where no exchange of product is possible. Revenues are recognized when our performance obligations are satisfied as evidenced by transfer of control of promised goods to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Product royalty income, representing less than 1% of total revenues, is recorded as the underlying product sales occur, in accordance with the related licensing arrangements. The Company's standard distributor payment terms range from pre-payment in full to 60 days after shipment and subsequent sales of our products by distributors have no effect on the amount and timing of payments due to us, however, in limited instances qualified distributors and dealers may be granted extended payment terms during selected order periods. In performing such evaluations, we utilize historical experience, sales performance, and credit risk requirements. Furthermore, products purchased by distributors may not be returned to us in the event that any such distributor relationship is terminated. Since the Company (through its wholly-owned subsidiary) serves as the distributor of Leatt products in the United States, the Company records its revenue and related cost of revenue for its product sales in the United States upon shipment of the merchandise to the dealer or to the ultimate consumer when there is no dealer in the geographic area or the consumer chooses to purchase directly from the Company's e-commerce website and the sales order was received directly from, and paid by, the ultimate consumer. Since the Company (through its South African branch) serves as the distributor of Leatt products in South Africa, the Company records its revenue and related cost of revenue for its product sales in South Africa upon shipment of the merchandise from the branch to the dealer. The Company's standard terms and conditions of sale for non-consumer direct or web-based sales do not allow for product returns other than under warranty. International sales (other than in the United States and South Africa) are generally drop-shipped directly from the third-party manufacturer to the international distributors. Revenue and related cost of revenue is recognized at the time of shipment from the manufacturer's port when the shipping terms are Free On Board ("FOB") shipping point, Cost and Freight ("CFR") or Cost and Insurance to named place ("CIP") as legal title and risk of loss to the product pass to the distributor. Sales to all customers (distributors, dealers and consumers) are generally final; however, in limited instances, product may be returned and exchanged due to product quality issues. Historically, returns due to product quality issues have not been material and there have been no distributor terminations that resulted in material product returns. Cost of revenues also includes royalty fees associated with sales of Leatt- Brace products. Product royalty income is recorded as the underlying product sales occur, in accordance with the related licensing arrangements. In the following table, revenue is disaggregated by the source of revenue: Nine months ended September 30, 2022 % of Revenues 2021 % of Revenues Consumer and athlete direct revenues $ 1,928,171 3% $ 1,519,454 3% Dealer direct revenues 13,781,437 21% 14,401,624 29% International distributor revenues 49,715,562 76% 33,376,783 68% $ 65,425,170 100% $ 49,297,861 100% The Company reviews the reserves for customer returns at each reporting period and adjusts them to reflect data available at that time. To estimate reserves for returns, the Company estimates the expected returns and claims based on historical rates as well as events and circumstances that indicate changes to historical rates of product returns and claims. Historically, returns due to product quality issues have not been material and there have been no distributor terminations that resulted in product returns. The provision for estimated returns at September 30, 2022 and December 31, 2021 was $0, and $0, respectively. Accounts receivable consist of amounts due to the Company from normal business activities. Credit is granted to substantially all distributors on an unsecured basis. The Company continuously monitors collections and payments from customers and maintains an allowance for doubtful accounts receivable based upon the expected credit losses determined utilizing historical experience and any specific customer collection issues that have been identified. In determining the amount of the allowance, the Company is required to make certain estimates and assumptions. Accounts receivable balances that are still outstanding after the Company used reasonable collection efforts are written off as uncollectible. While such credit losses have historically been minimal, within the Company's expectations and the provisions established, the Company cannot guarantee that it will continue to experience the same credit loss rates as in the past. A significant change in the liquidity or financial position of any of the Company's significant customers could have a material adverse effect on the collectability of the Company's accounts receivable and future operating results. The allowance for doubtful accounts was $372,889 at September 30, 2022 and $291,584 at December 31, 2021. Sales commissions are expensed when incurred, which is generally at the time of sale, because the amortization period would have been one year or less. These costs are recorded in commissions and consulting expenses within operating expenses in the accompanying consolidated statements of operations and comprehensive income. Shipping and handling activities associated with outbound freight, after control over a product has transferred to a customer, are accounted for as a fulfillment cost and are included in revenues and cost of revenues in the accompanying consolidated statements of operations and comprehensive income. Revenue recognized from contracts with customers is recorded net of sales taxes, value added taxes, or similar taxes that are collected on behalf of local taxing authorities.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes [Text Block]	Note 8 - Income Taxes The Company uses the asset and liability approach to account for income taxes. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The provision for income taxes included taxes currently payable, if any, plus the net change during the period in deferred tax assets and liabilities recorded by the Company. The Company applies the provisions of FASB ASC Topic 740-10, Accounting for Uncertainty in Income Taxes ("Standard"), which provides that the tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if the position is more likely than not of being sustained upon an examination by tax authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, the standard provides guidance on derecognition, classification, interest and penalties; accounting in interim periods, disclosure and transition, and any amounts when incurred would be recorded under these provisions. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of September 30, 2022, the Company has no unrecognized tax benefits.

Net Income Per Share of Common

Net Income Per Share of Common Stock	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share of Common Stock [Text Block]	Note 9 - Net Income Per Share of Common Stock Basic net income per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common stock shares and dilutive potential common shares outstanding during the period. For the nine months ended September 30, 2022, the Company had 471,000 potential common shares, consisting of 120,000 preferred shares, and options to purchase 351,000 shares, outstanding that were dilutive.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2022
Compensation Related Costs [Abstract]
Common Stock [Text Block]	Note 10 - Common Stock In January 2022, the Company issued 78,000 shares of common stock to an employee who exercised stock options. In March 2022, the Company issued 40,000 shares of common stock to two employees who exercised stock options. In May 2022, the Company issued 35,209 shares of common stock to an employee who exercised stock options in a cashless exercise. Stock-based compensation expense related to vested stock options during the nine months ended September 30, 2022 was $82,530. As of September 30, 2022, there was $0 of unrecognized compensation cost related to unvested stock options. Stock-based compensation expense related to vested restricted stock awards during the nine months ended September 30, 2022 was $360,720. As of September 30, 2022, there was $120,240 of unrecognized compensation cost related to unvested restricted stock.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements [Text Block	Note 11 - Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements - Accounting Pronouncements Not Yet Adopted - The Company evaluated all ASU's issued by the FASB for consideration of their applicability. ASU's not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company's consolidated financial statements.

Litigation

Litigation	9 Months Ended
	Sep. 30, 2022
Litigation Settlement [Abstract]
Litigation [Text Block]	Note 12 - Litigation In the ordinary course of business, the Company is involved in various legal proceedings involving product liability and personal injury and intellectual property litigation. The Company is insured against loss for certain of these matters. The Company will record contingent liabilities resulting from asserted and unasserted claims against it when it is probable that the liability has been incurred and the amount of the loss is reasonably estimable. The Company will disclose contingent liabilities when there is a reasonable possibility that the ultimate loss will exceed the recorded liability. While the outcome of currently pending litigation is not yet determinable, the ultimate exposure with respect to these matters cannot be ascertained. However, based on the information currently available to the Company, the Company does not expect that any liabilities or costs that might be incurred to resolve these matters will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.

Risks and Uncertainties

Risks and Uncertainties	9 Months Ended
	Sep. 30, 2022
Risks and Uncertainties [Abstract]
Risks and Uncertainties [Text Block]	Note 13 - Risks and Uncertainties The Company believes that any impact to its operations from continued COVID-19 developments worldwide will be primarily driven by the duration and severity of the pandemic, its impact on the global economy, and the timing, scope and effectiveness of governmental response, including China's ongoing COVID-19 restrictions. We remain cautiously optimistic that ongoing efforts to increase the availability of new COVID-19 vaccines worldwide will mitigate the spread of the virus throughout the U.S., Europe, and China, and will bring about an end to any remaining restrictions, and their potential effect on the Company's manufacturing and distribution partners. Any continued mutation and spread of the virus and the reintroduction of global restrictions or the occurrence of any other catastrophic events, could have a negative impact on sales revenue for the coming periods and beyond. The ongoing turmoil in the global economy caused by high inflation in the U.S., Asia and Europe markets where we operate, and the on-going conflict in Ukraine, may have an adverse impact on our financial operations. The global economic turmoil may reduce consumer spending and demand levels worldwide, including demand for our products. The significantly elevated inflation levels worldwide has also exposed us to foreign exchange risk. Approximately 78% of our sales are derived in international markets where the U.S. dollar is not the primary currency, and the significant strengthening of the U.S. dollar versus our customers' local currency can adversely affect consumer spending or our ability to remain competitive in those areas.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 14 - Subsequent Events The Company has evaluated all subsequent events through the date the financial statements were released. The Company entered into a Premium Finance Agreement with AON Premium Finance, LLC "AON" dated October 25, 2022, to finance its U.S short-term insurance over the period of coverage. The Company is obligated to pay AON an aggregate sum of $1,235,372 in ten payments of $123,537, at a fixed annual interest rate of 8.250% commencing on December 1, 2022 and ending on September 1, 2023. Any late payment during the term of the agreement will be assessed a late penalty of 5% of the payment amount due, and in the event of default AON has the right to accelerate the payment due under the agreement.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recently Adopted Accounting Pronouncements [Policy Text Block]	Recently Adopted Accounting Pronouncements -
Accounting Pronouncements Not Yet Adopted [Policy Text Block]	Accounting Pronouncements Not Yet Adopted - The Company evaluated all ASU's issued by the FASB for consideration of their applicability. ASU's not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company's consolidated financial statements.

Operating Leases - Right-of-U_2

Operating Leases - Right-of-Use Assets and Lease Liability Obligations (Tables)	9 Months Ended
	Sep. 30, 2022
Lessee Disclosure [Abstract]
Schedule of operating right-of-use assets and operating lease liabilities [Table Text Block]	2022 2021 Assets Operating lease ROU assets $ 1,163,782 $ 1,393,213 Liabilities Operating lease liabilities, current $ 286,564 $ 318,621 Operating lease liabilities, net of current portion 877,218 1,074,592 Total operating lease liabilities $ 1,163,782 $ 1,393,213
Schedule of remaining lease term and incremental borrowing rates [Table Text Block]	Supplemental disclosure September 30, December 31, 2022 2021 Weighted average remaining lease term 5 years 5 years Weighted average discount rate 3.75% 4.08%
Schedule of maturities of lease liabilities [Table Text Block]	Year ended December 31, Amounts under Operating Leases Remaining 2022 $ 74,879 2023 291,313 2024 281,663 2025 290,098 2026 298,791 2027 25,455 Total minimum lease payments $ 1,262,199 Less: amount representing interest $ (98,417 ) Total operating lease liabilities $ 1,163,782
Schedule of supplemental cash flow information of operating leases [Table Text Block]	Nine months Nine months ended September ended September 30, 2022 30, 2021 Cash paid for amounts included in the measurement of lease liabilities $ 262,832 $ 179,129 Right-of-use assets obtained in exchange for lease obligations $ 41,163 $ 1,418,719

Note Payable (Tables)

Note Payable (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule of note payable [Table Text Block]	September December 31, 30, 2022 2021 Liabilities Note payable, current $ 89,739 $ 83,270 Note payable, net off current portion 124,690 189,249 $ 214,429 $ 272,519
Schedule of principal maturities of note payable [Table Text Block]	Year ended December 31, Amounts under Notes Payable Remaining 2022 $ 22,138 2023 90,535 2024 93,790 2025 7,966 $ 214,429

Revenue and Cost Recognition (T

Revenue and Cost Recognition (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue Recognition [Abstract]
Schedule of revenue by major customers by reporting segments [Table Text Block]	Nine months ended September 30, 2022 % of Revenues 2021 % of Revenues Consumer and athlete direct revenues $ 1,928,171 3% $ 1,519,454 3% Dealer direct revenues 13,781,437 21% 14,401,624 29% International distributor revenues 49,715,562 76% 33,376,783 68% $ 65,425,170 100% $ 49,297,861 100%

Inventory (Narrative) (Details)

Inventory (Narrative) (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventory reserve for obsolescence	$ 265,084	$ 116,183

Operating Leases - Right-of-U_3

Operating Leases - Right-of-Use Assets and Lease Liability Obligations (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Lessee Disclosure [Abstract]
Operating lease expense	$ 260,892	$ 164,097

Operating Leases - Right-of-U_4

Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Schedule of Right-of- Use Assets and Lease Liability Obligations (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Assets
Operating lease ROU assets	$ 1,163,782	$ 1,393,213
Liabilities
Operating lease liabilities, current	286,564	318,621
Operating lease liabilities, net of current portion	877,218	1,074,592
Total operating lease liabilities	$ 1,163,782	$ 1,393,213

Operating Leases - Right-of-U_5

Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Schedule of Remaining lease term and incremental borrowing rates of Operating leases (Details)	Sep. 30, 2022	Dec. 31, 2021
Lessee Disclosure [Abstract]
Weighted average remaining lease term	5 years	5 years
Weighted average discount rate	3.75%	4.08%

Operating Leases - Right-of-U_6

Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Schedule of Maturities of lease liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Lessee Disclosure [Abstract]
Remaining 2022	$ 74,879
2023	291,313
2024	281,663
2025	290,098
2026	298,791
2027	25,455
Total minimum lease payments	1,262,199
Less: amount representing interest	(98,417)
Total operating lease liabilities	$ 1,163,782	$ 1,393,213

Operating Leases - Right-of-U_7

Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Schedule of Supplemental cash flow information of Operating Leases (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Lessee Disclosure [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 262,832	$ 179,129
Right-of-use assets obtained in exchange for lease obligations	$ 41,163	$ 1,418,719

Revolving line of Credit faci_2

Revolving line of Credit facility (Narrative) (Details) - Revolving line of credit [Member] - USD ($)		1 Months Ended
	Mar. 01, 2021	Nov. 05, 2020	Nov. 19, 2018	Sep. 30, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 1,000,000
Line of Credit Facility, Interest Rate Description		at the greater of the LIBOR Daily Floating Rate or an Index Floor of 1.25 percentage points plus 2.5 percentage points.	interest at the LIBOR Daily Floating Rate plus 2.5 percentage points
Line bear interest at the LIBOR daily floating rate		2.50%	2.50%
Increased in revolving line of credit	$ 1,500,000
Line of credit available balance				$ 1,500,000	$ 1,500,000

Short-term Loan (Narrative) (De

Short-term Loan (Narrative) (Details)	Sep. 30, 2022 USD ($)
Current U.S. short-term loan [Member]
Short-term Debt [Line Items]
Short-term loan, monthly payment	$ 102,078
Debt instrument, interest rate, stated percentage	4.65%
Current South African short-term loan [Member]
Short-term Debt [Line Items]
Short-term loan, monthly payment	$ 5,170
Debt instrument, interest rate, stated percentage	3.10%
Various short-term insurance policies in the U.S. [Member]
Short-term Debt [Line Items]
Short-term loan paid in two payments	$ 37,381
Short-term loan paid in three payments	1,172
Short-term loan paid in six payments	$ 326
Debt instrument, interest rate, stated percentage	6.36%
U.K-based insurance carrier [Member]
Short-term Debt [Line Items]
Short-term loan, monthly payment	$ 19,781
Debt instrument, interest rate, stated percentage	6.36%

Note Payable (Narrative) (Detai

Note Payable (Narrative) (Details) - USD ($)	1 Months Ended
	Dec. 17, 2021	Sep. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Note payable	$ 272,519	$ 214,429	$ 272,519
Note payable term	36 months
Monthly instalments	$ 7,990
Fixed interest rate	3.537%

Note Payable - Schedule of note

Note Payable - Schedule of note payable (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021	Dec. 17, 2021
Debt Disclosure [Abstract]
Note payable, current	$ 89,739	$ 83,270
Note payable, net of current portion	124,690	189,249
Notes Payable, Total	$ 214,429	$ 272,519	$ 272,519

Note Payable - Schedule of prin

Note Payable - Schedule of principal maturities of note payable (Details)	Sep. 30, 2022 USD ($)
Debt Disclosure [Abstract]
Remaining 2022	$ 22,138
2023	90,535
2024	93,790
2025	7,966
Total	$ 214,429

Revenue and Cost Recognition (N

Revenue and Cost Recognition (Narrative) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Revenue Recognition [Abstract]
Product royalty income, revenue percentage	1%
Provision for estimated returns	$ 0	$ 0
Allowance for doubtful accounts	$ 372,889	$ 291,584

Revenue and Cost Recognition -

Revenue and Cost Recognition - Schedule of revenue by major customers by reporting segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 23,258,752	$ 22,100,827	$ 65,425,170	$ 49,297,861
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Disaggregation of Revenue [Line Items]
Revenues			$ 65,425,170	$ 49,297,861
% of Revenues			100%	100%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Consumer and athlete direct revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues			$ 1,928,171	$ 1,519,454
% of Revenues			3%	3%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Dealer direct revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues			$ 13,781,437	$ 14,401,624
% of Revenues			21%	29%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | International distributor revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues			$ 49,715,562	$ 33,376,783
% of Revenues			76%	68%

Net Income Per Share of Commo_2

Net Income Per Share of Common Stock (Narrative) (Details)	9 Months Ended
	Sep. 30, 2022 shares
Earnings Per Share [Abstract]
Weighted average number diluted shares outstanding adjustment	471,000
Incremental common shares attributable to dilutive effect of conversion of preferred stock	120,000
Incremental common shares attributable to dilutive effect of call options and warrants	351,000

Common Stock (Narrative) (Detai

Common Stock (Narrative) (Details) - USD ($)	1 Months Ended			9 Months Ended
	May 31, 2022	Mar. 31, 2022	Jan. 31, 2022	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock to employee who exercised stock options in cashless exercise	35,209	40,000	78,000
Compensation cost recognized in connection with stock options				$ 82,530
Unrecognized compensation cost related to unvested awards				0
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognized in connection with stock options				360,720
Unrecognized compensation cost related to unvested awards				$ 120,240

Risks and Uncertainties (Narrat

Risks and Uncertainties (Narrative) (Details)	9 Months Ended
	Sep. 30, 2022
Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk [Line Items]
Percentage of sales	78%

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) - Subsequent Event [Member] - AON Premium Finance, LLC [Member]	1 Months Ended
	Oct. 25, 2022 USD ($)
Subsequent Event [Line Items]
Premium Finance Agreement payable	$ 1,235,372
Debt instrument, periodic payment	$ 123,537
Debt instrument, interest rate, stated percentage	8.25%
Late penalty, as a percent	5%