XPEL (XPEL) 10-Q 21 Aug 19 2019 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2019	Aug. 21, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-38858
Entity Registrant Name	XPEL, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	20-1117381
Entity Address, Address Line One	618 W. Sunset Road
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78216
City Area Code	210
Local Phone Number	678-3700
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	XPEL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,612,597
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001767258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current
Cash and cash equivalents	$ 5,473,964	$ 3,971,226
Accounts receivable, net	7,549,789	5,554,313
Inventory, net	15,304,778	10,799,611
Prepaid expenses and other current assets	1,312,016	706,718
Total current assets	29,640,547	21,031,868
Property and equipment, net	3,711,031	3,384,206
Right-of-Use lease assets	4,016,516
Intangible assets, net	3,595,785	3,804,026
Other assets	35,999	0
Goodwill	2,349,501	2,322,788
Total assets	43,349,379	30,542,888
Current
Current portion of notes payable	670,516	853,150
Current portion lease liabilities	976,339
Accounts payable and accrued liabilities	11,255,718	6,292,093
Income tax payable	565,350	1,337,599
Total current liabilities	13,467,923	8,482,842
Deferred tax liability, net	549,257	478,864
Non-current portion of lease liabilities	3,137,297
Non-current portion of notes payable	502,080	968,237
Total liabilities	17,656,557	9,929,943
Stockholders’ equity
Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding	0	0
Common stock, $0.001 par value; 100,000,000 shares authorized; 27,612,597 and 27,612,597 issued and outstanding, respectively	27,613	27,613
Additional paid-in-capital	11,348,163	11,348,163
Accumulated other comprehensive loss	(976,292)	(1,190,055)
Retained earnings	15,481,857	10,617,253
Equity attributable to stockholders of the company	25,881,341	20,802,974
Non-controlling interest	(188,519)	(190,029)
Total stockholders’ equity	25,692,822	20,612,945
Total liabilities and stockholders’ equity	$ 43,349,379	$ 30,542,888

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	10,000,000	10,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	100,000,000	100,000,000
Common stock shares issued (in shares)	27,612,597	27,612,597
Common stock shares outstanding (in shares)	27,612,597	27,612,597

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue
Total revenue	$ 30,094,154	$ 28,790,891	$ 54,819,600	$ 53,912,410
Cost of Sales
Total cost of sales	19,468,141	20,226,051	36,043,507	37,742,426
Gross Margin	10,626,013	8,564,840	18,776,093	16,169,984
Operating Expenses
Sales and marketing	2,064,836	1,479,510	3,663,942	3,036,608
General and administrative	4,589,906	3,620,542	8,667,857	6,895,140
Total operating expenses	6,654,742	5,100,052	12,331,799	9,931,748
Operating Income	3,971,271	3,464,788	6,444,294	6,238,236
Interest expense	29,074	47,130	57,780	104,084
Foreign currency exchange loss (gain)	(3,518)	56,505	14,908	23,124
Income before income taxes	3,945,715	3,361,153	6,371,606	6,111,028
Income tax expense	938,405	808,011	1,504,293	1,469,073
Net income	3,007,310	2,553,142	4,867,313	4,641,955
Income (loss) attributed to non-controlling interest	1,293	(1,968)	2,709	(10,513)
Net income attributable to stockholders of the Company	$ 3,006,017	$ 2,555,110	$ 4,864,604	$ 4,652,468
Earnings per share attributable stockholders of the Company
Earnings per share basic and diluted (in dollars per share)	$ 0.11	$ 0.09	$ 0.18	$ 0.17
Weighted Average Number of Common Shares
Weighted-average common shares outstanding, basic and diluted (in shares)	27,612,597	27,612,597	27,612,597	27,612,597
Product revenue
Revenue
Total revenue	$ 25,425,489	$ 24,988,880	$ 46,480,212	$ 47,083,121
Cost of Sales
Total cost of sales	18,551,030	19,560,320	34,239,063	36,410,156
Service revenue
Revenue
Total revenue	4,668,665	3,802,011	8,339,388	6,829,289
Cost of Sales
Total cost of sales	$ 917,111	$ 665,731	$ 1,804,444	$ 1,332,270

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other comprehensive income
Net income	$ 3,007,310	$ 2,553,142	$ 4,867,313	$ 4,641,955
Foreign currency translation	133,306	(296,769)	212,564	(426,716)
Total comprehensive income including portion attributable to non-controlling interest	3,140,616	2,256,373	5,079,877	4,215,239
Total comprehensive income attributable to stockholders of the company	3,145,330	2,274,921	5,078,367	4,248,062
Total comprehensive income attributable to non-controlling interest	$ (4,714)	$ (18,548)	$ 1,510	$ (32,823)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($)	Total	Common Stock	Additional Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Equity attributable to Stockholders of the Company	Non-Controlling Interest
Beginning stock outstanding balance (in shares) at Dec. 31, 2017		27,612,597
Beginning balance at Dec. 31, 2017	$ 12,495,386	$ 27,613	$ 11,348,163	$ 1,904,719	$ (596,683)	$ 12,683,812	$ (188,426)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,641,955			4,652,468		4,652,468	(10,513)
Foreign currency translation	(426,716)				(404,406)	(404,406)	(22,310)
Ending stock outstanding balance (in shares) at Jun. 30, 2018		27,612,597
Ending balance at Jun. 30, 2018	16,710,625	$ 27,613	11,348,163	6,557,187	(1,001,089)	16,931,874	(221,249)
Beginning stock outstanding balance (in shares) at Mar. 31, 2018		27,612,597
Beginning balance at Mar. 31, 2018	14,454,252	$ 27,613	11,348,163	4,002,077	(720,900)	14,656,953	(202,701)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,553,142			2,555,110		2,555,110	(1,968)
Foreign currency translation	(296,769)				(280,189)	(280,189)	(16,580)
Ending stock outstanding balance (in shares) at Jun. 30, 2018		27,612,597
Ending balance at Jun. 30, 2018	16,710,625	$ 27,613	11,348,163	6,557,187	(1,001,089)	16,931,874	(221,249)
Beginning stock outstanding balance (in shares) at Dec. 31, 2018		27,612,597
Beginning balance at Dec. 31, 2018	20,612,945	$ 27,613	11,348,163	10,617,253	(1,190,055)	20,802,974	(190,029)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,867,313			4,864,604		4,864,604	2,709
Foreign currency translation	212,564				213,763	213,763	(1,199)
Ending stock outstanding balance (in shares) at Jun. 30, 2019		27,612,597
Ending balance at Jun. 30, 2019	25,692,822	$ 27,613	11,348,163	15,481,857	(976,292)	25,881,341	(188,519)
Beginning stock outstanding balance (in shares) at Mar. 31, 2019		27,612,597
Beginning balance at Mar. 31, 2019	22,552,206	$ 27,613	11,348,163	12,475,840	(1,115,605)	22,736,011	(183,805)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,007,310			3,006,017		3,006,017	1,293
Foreign currency translation	133,306				139,313	139,313	(6,007)
Ending stock outstanding balance (in shares) at Jun. 30, 2019		27,612,597
Ending balance at Jun. 30, 2019	$ 25,692,822	$ 27,613	$ 11,348,163	$ 15,481,857	$ (976,292)	$ 25,881,341	$ (188,519)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 4,867,313	$ 4,641,955
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	421,088	338,867
Amortization of intangible assets	371,372	312,169
Impairments	66,364	0
Loss on sale of property and equipment	24,605	35,986
Bad debt expense	123,753	122,777
Deferred income tax	58,405	(45,891)
Accretion on notes payable	36,843	37,393
Changes in current assets and liabilities:
Accounts receivable	(2,063,400)	(1,868,399)
Inventory, net	(4,427,940)	(1,059,537)
Prepaid expenses and other current assets	(603,016)	(208,854)
Other assets	26,194	0
Accounts payable and accrued liabilities	4,975,948	(155,093)
Income tax payable	(799,700)	(531,975)
Net cash provided by operating activities	3,077,829	1,619,398
Cash flows used in investing activities
Purchase of property, plant and equipment	(764,125)	(555,592)
Proceeds from sale of property and equipment	11,386	0
Acquisition of subsidiaries, net of cash acquired and notes payable	0	(155,093)
Development of intangible assets	(138,097)	(95,507)
Net cash used in investing activities	(890,836)	(806,192)
Cash flows from financing activities
Net repayments on revolving credit agreement	0	(2,000,000)
Repayment of bank loan payable	0	(292,032)
Repayments of notes payable	(714,668)	(280,905)
Net cash used in financing activities	(714,668)	(2,572,937)
Net change in cash and cash equivalents	1,472,325	(1,759,731)
Foreign exchange impact on cash and cash equivalents	30,413	(211,963)
Increase (decrease) in cash and cash equivalents during the period	1,502,738	(1,971,694)
Cash and cash equivalents at beginning of period	3,971,226	3,498,904
Cash and cash equivalents at end of period	5,473,964	1,527,210
Supplemental schedule of non-cash activities
Notes payable issued for acquisitions	0	396,982
Forgiveness of debt for acquired entities	0	32,155
Supplemental cash flow information
Cash paid for income taxes	2,058,925	1,789,087
Cash paid for interest	$ 10,997	$ 61,946

INTERIM FINANCIAL INFORMATION

INTERIM FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTERIM FINANCIAL INFORMATION	INTERIM FINANCIAL INFORMATION The accompanying (a) condensed consolidated balance sheet as of December 31, 2018 , which has been derived from audited financial statements, and (b) unaudited interim condensed financial statements as of and for the three and six months ended June 30, 2019 have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. Pursuant to these rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position, results of operations and cash flows of the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results to be expected for the full year or for any other interim period, due to variability in customer purchasing patterns and seasonal, operating and other factors. These condensed consolidated financial statements should be read in conjunction with consolidated financial statements and related notes contained in the Company’s Amendment No. 2 to the Form 10 filed on May 30, 2019. These condensed consolidated financial statements also should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations section appearing in this report. Certain immaterial amounts in the prior year consolidated financial statements have been reclassified in order to conform to the presentation adopted in the current year. None of these changes in presentation affect previously reported results of operations.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Nature of Business - The Company is based in San Antonio, Texas and sells, distributes, and installs after-market automotive products, including automotive paint protection film, headlight protection film, automotive window films and other related products. The Company was incorporated in the state of Nevada, U.S.A. in October 2003 and its registered office is 618 W. Sunset Road, San Antonio, Texas, 78216. Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with GAAP and include the accounts of the Company and its wholly owned or majority owned subsidiaries. The ownership interest of non-controlling participants in subsidiaries that are not wholly-owned is included as a separate component of stockholders’ equity. The non-controlling participants’ share of the net income (loss) is included as “Income (loss) attributable to noncontrolling interest” on the Condensed Consolidated Statements of Income and Comprehensive Income. Intercompany accounts and transactions have been eliminated. The functional currency for the Company is the United States dollar. The assets and liabilities of each of its foreign subsidiaries are translated into U.S dollars using the exchange rate at the end of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the period. Gains and losses from translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Foreign currency exchange gains and losses are recorded in other expense, net in the accompanying condensed consolidated statements of income. The ownership percentages and functional currencies of the entities included in these condensed consolidated financial statements are as follows: Subsidiaries Functional Currency % Owned by XPEL, Inc. XPEL, Ltd. UK Pound Sterling 85 % Armourfend CAD, LLC US Dollar 100 % XPEL Canada Corp. Canadian Dollar 100 % XPEL B.V. Euro 100 % XPEL de Mexico S. de R.L. de C.V. Peso 100 % XPEL Acquisition Corp. Canadian Dollar 100 % Protex Canada, Inc. Canadian Dollar 100 % Apogee Corp. New Taiwan Dollar 100 % Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results as a whole on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment. Use of Estimates - The preparation of these condensed consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions. Accounts Receivable - Accounts receivable are shown net of an allowance for doubtful accounts of $196,255 and $133,696 as of June 30, 2019 and December 31, 2018 , respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. Provisions and Warranties - We provide a warranty on our products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals as claims data experience warrant. Our liability for warranties as of June 30, 2019 and December 31, 2018 was $66,642 $70,250 , respectively. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, “Leases” (“the new lease standard” or “ASC 842”), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new lease standard requirements were effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this standard effective January 1, 2019. In adopting this standard, the Company elected the package of practical expedients afforded thereby. This election allowed the Company, among other things, to carry forward prior lease classifications. Pursuant to the adoption of this standard, ROU assets and operating lease liabilities (current and long-term portions) as of June 30, 2019 were $4,016,516 and $4,113,636 , respectively. Refer to Note 13 for additional information related to the adoption of this standard. Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which will allow a reclassification from accumulated other comprehensive income to retained earnings for the tax effects resulting from the Tax Cuts and Jobs Act (Tax Reform Act) that are stranded in accumulated other comprehensive income. This standard also requires certain disclosures about stranded tax effects. ASU No. 2018-02, however, does not change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU No. 2018-02 will be effective for the Company’s fiscal year 2020, with the option for early adoption at any time prior to the effective date. It must be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company is currently assessing the impact this new accounting guidance will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” in order to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. This is an amendment to ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is still assessing this guidance and the impact it will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement , to amend the disclosure requirements related to fair value measurements. These amendments include, but are not limited to, additional disclosures related to the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The standard has an effective date for annual periods beginning after December 15, 2019, and interim periods within those annual periods, with early adoption permitted. The Company is still assessing this guidance and the impact it will have on its consolidated financial statements.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenues from product and services sales are recognized when control of the goods is transferred to the customer which occurs at a point in time typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company does require payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the consolidated balance sheet and are included in accounts payable and accrued liabilities (Note 9). As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under ASC 606 to omit disclosures regarding remaining performance obligations. When the Company transfers goods or services to a customer, payment is due - subject to normal terms - and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient under ASC 606 to not adjust for the effects of a significant financing component. As such, these amounts are recorded as receivables and not contract assets. The following table summarizes transactions within contract liabilities for the six months ended June 30, 2019 : Balance at December 31, 2018 $ 136,213 Revenue recognized related to payments included in the December 31, 2018 balance (38,405 ) Payments received for which performance obligations have not been satisfied 217,195 Balance at March 31, 2019 $ 315,003 Revenue recognized related to payments included in the March 31, 2019 balance (77,265 ) Payments received for which performance obligations have not been satisfied 1,493,645 Balance at June 30, 2019 $ 1,731,383 The table below sets forth the disaggregation of revenue by product category for the periods indicated below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Product Revenue Paint protection film $ 21,166,420 $ 21,922,607 $ 39,622,775 $ 42,138,754 Window film 3,171,155 2,364,958 5,004,071 3,536,815 Other 1,087,914 701,315 1,853,366 1,407,552 Total 25,425,489 24,988,880 46,480,212 47,083,121 Service Revenue Software $ 775,745 $ 627,283 $ 1,519,513 $ 1,233,086 Cutbank credits 2,064,962 1,725,240 3,530,096 2,942,402 Installation labor 1,647,954 1,334,035 2,946,343 2,440,003 Training 180,004 115,453 343,436 213,798 Total 4,668,665 3,802,011 8,339,388 6,829,289 Total $ 30,094,154 $ 28,790,891 $ 54,819,600 $ 53,912,410 Because many of our international customers require us to ship their orders to freight forwarders located in the United States, we cannot be certain about the ultimate destination of the product. The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 United States $ 16,497,347 $ 10,606,298 $ 29,007,097 $ 19,813,712 China 3,127,723 9,429,142 7,646,920 17,254,006 Canada 5,217,535 4,416,576 8,315,899 8,252,301 Continental Europe 1,974,328 1,725,472 3,396,060 3,003,471 United Kingdom 926,925 811,689 1,810,283 1,435,633 Asia Pacific 1,059,560 704,375 1,931,518 1,218,314 Latin America 512,680 426,784 998,809 1,231,238 Middle East/Africa 720,347 660,460 1,603,479 1,586,003 Other 57,709 10,095 109,535 117,732 Total $ 30,094,154 $ 28,790,891 $ 54,819,600 $ 53,912,410 Our largest customer accounted for 10.4% and 32.8% of our net sales during the the three months ended June 30, 2019 and 2018 , respectively. Our largest customer accounted for 13.9% and 31.6% of our net sales during the the six months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 and December 31, 2018

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: June 30, 2019 December 31, 2018 Furniture and fixtures $ 1,055,029 $ 956,467 Computer equipment 1,039,090 939,979 Vehicles 754,459 730,765 Equipment 1,413,053 1,079,503 Leasehold improvements 1,162,772 941,627 Plotters 654,154 544,080 Construction in Progress 484,686 646,576 Total property and equipment 6,563,243 5,838,997 Less accumulated depreciation 2,852,212 2,454,791 Property and equipment, net $ 3,711,031 $ 3,384,206 Depreciation expense for the three months ended June 30, 2019 and 2018 was $220,270 and $179,549 , respectively. Depreciation expense for the six months ended June 30, 2019 and 2018 was $421,088 and $338,867 , respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Intangible assets consists of the following: June 30, 2019 December 31, 2018 Trademarks $ 289,734 $ 289,734 Software 1,773,708 1,635,731 Trade name 464,374 457,766 Contractual and customer relationships 2,986,345 2,947,264 Non-compete 267,375 261,914 Other 150,139 150,267 Total cost 5,931,675 5,742,676 Less: Accumulated amortization 2,335,890 1,938,650 Intangible assets, net $ 3,595,785 $ 3,804,026 Amortization expense for the three months ended June 30, 2019 and 2018 was $186,824 and $175,532 , respectively. Amortization expense for the six months ended June 30, 2019 and 2018 was $371,372 and $312,169 , respectively. During the the six months ended June 30, 2019 , the Company sold a franchise territory to a new franchisee in Quebec. In connection with this arrangement, the Company closed its Quebec City installation location and recorded an impairment against all previously recognized intangible assets for that location. The Company recorded an impairment loss of $30,480 related to the intangible assets other than goodwill associated with this closed location. This impairment loss is reflected in general and administrative expense on the condensed consolidated statement of income.

GOODWILL

GOODWILL	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The following table summarizes goodwill transactions for the six months ended June 30, 2019 and 2018 : Balance at December 31, 2017 $ 1,856,642 Additions 161,737 Foreign Exchange (62,576 ) Balance at June 30, 2018 $ 1,955,803 Balance at December 31, 2018 $ 2,322,788 Impairment (35,884 ) Foreign Exchange 62,597 Balance at June 30, 2019 $ 2,349,501 During the the six months ended June 30, 2019 , the Company sold a franchise territory to a new franchisee in Quebec. In connection with this arrangement, the Company closed its Quebec City installation location and recorded an impairment against all previously recognized intangible assets for that location. The Company recorded an impairment loss of $35,884 related to the Goodwill associated with this closed location. This impairment loss is reflected in general and administrative expense on the condensed consolidated statement of income.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventory are summarized as follows: June 30, 2019 December 31, 2018 Film and film based products $ 13,694,546 $ 9,399,067 Other products 1,355,668 1,264,862 Packaging and supplies 370,166 320,738 Inventory Reserve (115,602 ) (185,056 ) $ 15,304,778 $ 10,799,611

DEBT

DEBT	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
DEBT	DEBT REVOLVING FACILITIES The Company has entered into a $8,500,000 revolving line of credit agreement with The Bank of San Antonio to support its continuing working capital needs. The Bank of San Antonio has been granted a security interest in substantially all of the Company’s current and future assets. The line of credit has a variable interest rate of the Wall Street Journal prime rate plus 0.75% with a floor of 4.25% and matures on May 5, 2020. The interest rate at both June 30, 2019 and December 31, 2018 was 6.25% . As of June 30, 2019 and December 31, 2018 , no balance was outstanding on this line. The credit agreement contains customary covenants including covenants relating to complying with applicable laws, delivery of financial statements, payment of taxes and maintaining insurance. The credit agreement also requires that XPEL must maintain debt service coverage (EBITDA divided by the current portion of long-term debt +interest) of 1.25 :1 and debt to tangible net worth of 4.0 :1 on a rolling four quarter basis. The credit agreement also contains customary events of default including the failure to make payments of principal and interests, the breach of any covenants, the occurrence of a material adverse change, and certain bankruptcy and insolvency events. As of June 30, 2019 and December 31, 2018 , the Company was in compliance with all debt covenants. XPEL Canada, Corp., a wholly owned subsidiary of XPEL, Inc., has also entered into a CAD $4,500,000 revolving line of credit agreement with HSBC Bank Canada to support its continuing working capital needs. The line has a variable interest rate of the HSBC Canada Bank’s prime rate plus 0.25% . The interest rate as of both June 30, 2019 and December 31, 2018 was 5.75% . As of June 30, 2019 and December 31, 2018 , no balance was outstanding on this line of credit. This facility is guaranteed by the parent company. NOTES PAYABLE As part of its acquisition strategy, the Company uses a combination of cash and unsecured non-interest bearing promissory notes payable to fund its business acquisitions. The Company discounts the promissory note to fair value using market interests rates at the time of the acquisition. Notes payable are summarized as follows: Weighted Average Interest Rate Matures June 30, 2019 December 31, 2018 Acquisition Notes Payable 5.54% 2022 $ 1,172,596 $ 1,821,387 Total Debt 1,172,596 1,821,387 Current Portion 670,516 853,150 Total Long-term debt $ 502,080 $ 968,237

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2019
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The following table presents significant accounts payable and accrued liability balances as of period end: June 30, 2019 December 31, 2018 Trade payables $ 8,004,168 $ 3,905,187 Payroll liabilities 647,914 1,194,237 Contract liabilities 1,731,383 136,213 Other liabilities 872,253 1,056,456 $ 11,255,718 $ 6,292,093

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Financial instruments include cash and cash equivalents (level 1), accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. For discussion of the fair value measurements related to goodwill refer to Note 6, Goodwill of the financial statements for periods ended June 30, 2019 and December 31, 2018 . The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities (Level 2 inputs and valuation techniques). ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, or Tax Reform Act. The Tax Reform Act makes broad and complex changes to the U.S. tax code that impacted the Company’s fiscal year ended December 31, 2018, including but not limited to, reducing the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, generally eliminating the U.S. federal income taxes on dividends received from foreign subsidiaries and joint ventures after December 31, 2017, and imposing a one-time deemed repatriation tax on certain unremitted earnings of foreign subsidiaries and joint ventures. The Company recorded income tax expense during the three months ended June 30, 2019 and 2018 of $938,405 and $808,011 , respectively. The Company recorded income tax expense during the six months ended June 30, 2019 and 2018 of $1,504,293 and $1,469,073 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES (a) Contingencies In the ordinary course of business activities, the Company may be contingently liable for litigation and claims with customers, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts where required. Management also has determined that the likelihood of any litigation and claims having a material impact on our results of operations, cash flows or financial position is remote. (b) Supply Agreement Through our Amended and Restated Supply Agreement that we entered into with our primary supplier in March 2017, we have exclusive rights to commercialize, market, distribute and sell its automotive aftermarket products through March 21, 2020, which term automatically renews for successive two year periods thereafter unless terminated at the option of either party with two months ’ notice. During such term, we have agreed to use commercially reasonable efforts to purchase a minimum of $5,000,000 of products quarterly from this principal supplier, with a yearly minimum purchasing requirement of $20,000,000 .

LEASES

LEASES	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
LEASES	LEASES We lease space under non-cancelable operating leases for office space, warehouse facilities, and installation locations. These leases do not have significant rent holidays, rent escalation provisions, leasehold improvement incentives, or other build-out clauses. Neither do these leases contain contingent rent provisions. We also lease vehicles and equipment to support our global operations. We have elected the practical expedient to combine lease and non-lease components. We have also elected to adopt the package of practical expedients that allow us not to reassess whether expired leases are or contain leases, not to reassess the lease classification of existing leases, and not to reassess initial direct costs for existing leases. Some of our leases contain options to renew. The exercise of lease renewals is at our sole discretion; therefore, the renewals to extend the lease terms are not include in our ROU assets as it is not reasonably certain that they will be exercised. We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. Balance sheet information related to operating leases is as follows: June 30, 2019 Operating lease ROU assets $ 4,016,516 Current portion of operating lease liabilities 976,339 Noncurrent portion of operating lease liabilities 3,137,297 Total operating lease liabilities $ 4,113,636 We had operating lease expenses of $288,091 and $590,334 for the three and six months ended June 30, 2019 , respectively. Variable lease payments for the same periods were and $131,270 and $239,351 , respectively. For the same periods, we also had short-term lease expenses of $19,936 , and $40,603 , respectively, and we made cash payments of $280,352 and $574,926 , respectively, on leases subject to the accounting treatment described above in Note 2. Weighted-average information associated with the measurement of our remaining operating lease obligations is as follows: June 30, 2019 Weighted-average remaining lease term (in years) 6.26 Weighted-average discount rate 5.87 % The following table summarizes the maturity of our operating lease liabilities as of June 30, 2019 : 2019 $ 508,333 2020 882,469 2021 778,166 2022 695,870 2023 600,482 Thereafter 1,378,775 Total operating lease payments 4,844,095 Less: interest (730,459 ) Total operating lease liabilities $ 4,113,636 During the three and six months ended June 30, 2018, rent expense related to operating leases was approximately $272,281 and $542,478 , respectively. Future minimum lease payments, under non-cancelable operating leases as of December 31, 2018 were as follows: 2019 $ 869,492 2020 736,169 2021 667,551 2022 601,593 2023 528,427 Thereafter 1,372,388 $ 4,775,620

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with GAAP and include the accounts of the Company and its wholly owned or majority owned subsidiaries. The ownership interest of non-controlling participants in subsidiaries that are not wholly-owned is included as a separate component of stockholders’ equity. The non-controlling participants’ share of the net income (loss) is included as “Income (loss) attributable to noncontrolling interest” on the Condensed Consolidated Statements of Income and Comprehensive Income. Intercompany accounts and transactions have been eliminated.
Segment Reporting	Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results as a whole on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment.
Use of Estimates	Use of Estimates - The preparation of these condensed consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions.
Accounts Receivable	Accounts Receivable - Accounts receivable are shown net of an allowance for doubtful accounts of $196,255 and $133,696 as of June 30, 2019 and December 31, 2018 , respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses.
Provisions and Warranties	Provisions and Warranties -
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Issued and Not Yet Adopted	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, “Leases” (“the new lease standard” or “ASC 842”), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new lease standard requirements were effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this standard effective January 1, 2019. In adopting this standard, the Company elected the package of practical expedients afforded thereby. This election allowed the Company, among other things, to carry forward prior lease classifications. Pursuant to the adoption of this standard, ROU assets and operating lease liabilities (current and long-term portions) as of June 30, 2019 were $4,016,516 and $4,113,636 , respectively. Refer to Note 13 for additional information related to the adoption of this standard. Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which will allow a reclassification from accumulated other comprehensive income to retained earnings for the tax effects resulting from the Tax Cuts and Jobs Act (Tax Reform Act) that are stranded in accumulated other comprehensive income. This standard also requires certain disclosures about stranded tax effects. ASU No. 2018-02, however, does not change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU No. 2018-02 will be effective for the Company’s fiscal year 2020, with the option for early adoption at any time prior to the effective date. It must be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company is currently assessing the impact this new accounting guidance will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” in order to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. This is an amendment to ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is still assessing this guidance and the impact it will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement , to amend the disclosure requirements related to fair value measurements. These amendments include, but are not limited to, additional disclosures related to the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The standard has an effective date for annual periods beginning after December 15, 2019, and interim periods within those annual periods, with early adoption permitted. The Company is still assessing this guidance and the impact it will have on its consolidated financial statements.
Revenue Recognition	Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenues from product and services sales are recognized when control of the goods is transferred to the customer which occurs at a point in time typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company does require payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the consolidated balance sheet and are included in accounts payable and accrued liabilities (Note 9). As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under ASC 606 to omit disclosures regarding remaining performance obligations. When the Company transfers goods or services to a customer, payment is due - subject to normal terms - and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient under ASC 606 to not adjust for the effects of a significant financing component. As such, these amounts are recorded as receivables and not contract assets.
Fair Value Measurements	Financial instruments include cash and cash equivalents (level 1), accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. For discussion of the fair value measurements related to goodwill refer to Note 6, Goodwill of the financial statements for periods ended June 30, 2019 and December 31, 2018 . The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities (Level 2 inputs and valuation techniques). ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of Ownership Interests and Functional Currencies	The ownership percentages and functional currencies of the entities included in these condensed consolidated financial statements are as follows: Subsidiaries Functional Currency % Owned by XPEL, Inc. XPEL, Ltd. UK Pound Sterling 85 % Armourfend CAD, LLC US Dollar 100 % XPEL Canada Corp. Canadian Dollar 100 % XPEL B.V. Euro 100 % XPEL de Mexico S. de R.L. de C.V. Peso 100 % XPEL Acquisition Corp. Canadian Dollar 100 % Protex Canada, Inc. Canadian Dollar 100 % Apogee Corp. New Taiwan Dollar 100 %

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Transactions Within Contract Liabilities	The following table summarizes transactions within contract liabilities for the six months ended June 30, 2019 : Balance at December 31, 2018 $ 136,213 Revenue recognized related to payments included in the December 31, 2018 balance (38,405 ) Payments received for which performance obligations have not been satisfied 217,195 Balance at March 31, 2019 $ 315,003 Revenue recognized related to payments included in the March 31, 2019 balance (77,265 ) Payments received for which performance obligations have not been satisfied 1,493,645 Balance at June 30, 2019 $ 1,731,383
Disaggregation of Revenue	The table below sets forth the disaggregation of revenue by product category for the periods indicated below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Product Revenue Paint protection film $ 21,166,420 $ 21,922,607 $ 39,622,775 $ 42,138,754 Window film 3,171,155 2,364,958 5,004,071 3,536,815 Other 1,087,914 701,315 1,853,366 1,407,552 Total 25,425,489 24,988,880 46,480,212 47,083,121 Service Revenue Software $ 775,745 $ 627,283 $ 1,519,513 $ 1,233,086 Cutbank credits 2,064,962 1,725,240 3,530,096 2,942,402 Installation labor 1,647,954 1,334,035 2,946,343 2,440,003 Training 180,004 115,453 343,436 213,798 Total 4,668,665 3,802,011 8,339,388 6,829,289 Total $ 30,094,154 $ 28,790,891 $ 54,819,600 $ 53,912,410
Revenue Estimate by Geographic Areas	The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 United States $ 16,497,347 $ 10,606,298 $ 29,007,097 $ 19,813,712 China 3,127,723 9,429,142 7,646,920 17,254,006 Canada 5,217,535 4,416,576 8,315,899 8,252,301 Continental Europe 1,974,328 1,725,472 3,396,060 3,003,471 United Kingdom 926,925 811,689 1,810,283 1,435,633 Asia Pacific 1,059,560 704,375 1,931,518 1,218,314 Latin America 512,680 426,784 998,809 1,231,238 Middle East/Africa 720,347 660,460 1,603,479 1,586,003 Other 57,709 10,095 109,535 117,732 Total $ 30,094,154 $ 28,790,891 $ 54,819,600 $ 53,912,410

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment consists of the following: June 30, 2019 December 31, 2018 Furniture and fixtures $ 1,055,029 $ 956,467 Computer equipment 1,039,090 939,979 Vehicles 754,459 730,765 Equipment 1,413,053 1,079,503 Leasehold improvements 1,162,772 941,627 Plotters 654,154 544,080 Construction in Progress 484,686 646,576 Total property and equipment 6,563,243 5,838,997 Less accumulated depreciation 2,852,212 2,454,791 Property and equipment, net $ 3,711,031 $ 3,384,206

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consists of the following: June 30, 2019 December 31, 2018 Trademarks $ 289,734 $ 289,734 Software 1,773,708 1,635,731 Trade name 464,374 457,766 Contractual and customer relationships 2,986,345 2,947,264 Non-compete 267,375 261,914 Other 150,139 150,267 Total cost 5,931,675 5,742,676 Less: Accumulated amortization 2,335,890 1,938,650 Intangible assets, net $ 3,595,785 $ 3,804,026

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes goodwill transactions for the six months ended June 30, 2019 and 2018 : Balance at December 31, 2017 $ 1,856,642 Additions 161,737 Foreign Exchange (62,576 ) Balance at June 30, 2018 $ 1,955,803 Balance at December 31, 2018 $ 2,322,788 Impairment (35,884 ) Foreign Exchange 62,597 Balance at June 30, 2019 $ 2,349,501

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory are summarized as follows: June 30, 2019 December 31, 2018 Film and film based products $ 13,694,546 $ 9,399,067 Other products 1,355,668 1,264,862 Packaging and supplies 370,166 320,738 Inventory Reserve (115,602 ) (185,056 ) $ 15,304,778 $ 10,799,611

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable are summarized as follows: Weighted Average Interest Rate Matures June 30, 2019 December 31, 2018 Acquisition Notes Payable 5.54% 2022 $ 1,172,596 $ 1,821,387 Total Debt 1,172,596 1,821,387 Current Portion 670,516 853,150 Total Long-term debt $ 502,080 $ 968,237

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2019
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table presents significant accounts payable and accrued liability balances as of period end: June 30, 2019 December 31, 2018 Trade payables $ 8,004,168 $ 3,905,187 Payroll liabilities 647,914 1,194,237 Contract liabilities 1,731,383 136,213 Other liabilities 872,253 1,056,456 $ 11,255,718 $ 6,292,093

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of Balance Sheet Information Related To Leases	Balance sheet information related to operating leases is as follows: June 30, 2019 Operating lease ROU assets $ 4,016,516 Current portion of operating lease liabilities 976,339 Noncurrent portion of operating lease liabilities 3,137,297 Total operating lease liabilities $ 4,113,636
Schedule of Weighted Average Remaining Lease Term and Discount Rate Information	Weighted-average information associated with the measurement of our remaining operating lease obligations is as follows: June 30, 2019 Weighted-average remaining lease term (in years) 6.26 Weighted-average discount rate 5.87 %
Schedule of Maturities of Operating Lease Liabilities	The following table summarizes the maturity of our operating lease liabilities as of June 30, 2019 : 2019 $ 508,333 2020 882,469 2021 778,166 2022 695,870 2023 600,482 Thereafter 1,378,775 Total operating lease payments 4,844,095 Less: interest (730,459 ) Total operating lease liabilities $ 4,113,636
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases	Future minimum lease payments, under non-cancelable operating leases as of December 31, 2018 were as follows: 2019 $ 869,492 2020 736,169 2021 667,551 2022 601,593 2023 528,427 Thereafter 1,372,388 $ 4,775,620

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Ownership Percentages and Functional Currencies (Details)	Jun. 30, 2019
XPEL, Ltd.
Noncontrolling Interest [Line Items]
Ownership percentage	85.00%
Armourfend CAD, LLC
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
XPEL Canada Corp.
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
XPEL B.V
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
XPEL De Mexico S. De R.L. De C.V.
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
XPEL Acquisition Corp.
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
Protex Canada, Inc.
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
Apogee Corp.
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	6 Months Ended
	Jun. 30, 2019segment
Accounting Policies [Abstract]
Number of operating segments	1

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 196,255	$ 133,696

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Warranty liability	$ 66,642	$ 70,250

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements (Details)	Jun. 30, 2019USD ($)
Accounting Policies [Abstract]
Operating lease ROU assets	$ 4,016,516
Total operating lease liabilities	$ 4,113,636

REVENUE - Schedule of Transacti

REVENUE - Schedule of Transactions Within Contract Liabilities (Details) - USD ($)	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
Change in Contract with Customer, Liability [Abstract]
Beginning contract liabilities	$ 315,003	$ 136,213
Revenue recognized related to payments in beginning balance	(77,265)	(38,405)
Payments received for which performance obligations have not been satisfied	1,493,645	217,195
Ending contract liabilities	$ 1,731,383	$ 315,003

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 30,094,154	$ 28,790,891	$ 54,819,600	$ 53,912,410
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	25,425,489	24,988,880	46,480,212	47,083,121
Paint protection film
Disaggregation of Revenue [Line Items]
Total revenue	21,166,420	21,922,607	39,622,775	42,138,754
Window film
Disaggregation of Revenue [Line Items]
Total revenue	3,171,155	2,364,958	5,004,071	3,536,815
Other
Disaggregation of Revenue [Line Items]
Total revenue	1,087,914	701,315	1,853,366	1,407,552
Service revenue
Disaggregation of Revenue [Line Items]
Total revenue	4,668,665	3,802,011	8,339,388	6,829,289
Software
Disaggregation of Revenue [Line Items]
Total revenue	775,745	627,283	1,519,513	1,233,086
Cutbank credits
Disaggregation of Revenue [Line Items]
Total revenue	2,064,962	1,725,240	3,530,096	2,942,402
Installation labor
Disaggregation of Revenue [Line Items]
Total revenue	1,647,954	1,334,035	2,946,343	2,440,003
Training
Disaggregation of Revenue [Line Items]
Total revenue	$ 180,004	$ 115,453	$ 343,436	$ 213,798

REVENUE - Revenue Estimate By G

REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 30,094,154	$ 28,790,891	$ 54,819,600	$ 53,912,410
United States
Disaggregation of Revenue [Line Items]
Total revenue	16,497,347	10,606,298	29,007,097	19,813,712
China
Disaggregation of Revenue [Line Items]
Total revenue	3,127,723	9,429,142	7,646,920	17,254,006
Canada
Disaggregation of Revenue [Line Items]
Total revenue	5,217,535	4,416,576	8,315,899	8,252,301
Continental Europe
Disaggregation of Revenue [Line Items]
Total revenue	1,974,328	1,725,472	3,396,060	3,003,471
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	926,925	811,689	1,810,283	1,435,633
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	1,059,560	704,375	1,931,518	1,218,314
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	512,680	426,784	998,809	1,231,238
Middle East/Africa
Disaggregation of Revenue [Line Items]
Total revenue	720,347	660,460	1,603,479	1,586,003
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 57,709	$ 10,095	$ 109,535	$ 117,732

REVENUE - Narrative (Details)

REVENUE - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Largest Customer | Customer Concentration Risk | Revenue from Contract with Customer Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk percentage	10.40%	32.80%	13.90%	31.60%

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 6,563,243	$ 5,838,997
Accumulated Depreciation	2,852,212	2,454,791
Property and equipment, net	3,711,031	3,384,206
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,055,029	956,467
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,039,090	939,979
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment	754,459	730,765
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,413,053	1,079,503
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,162,772	941,627
Plotters
Property, Plant and Equipment [Line Items]
Property, plant and equipment	654,154	544,080
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 484,686	$ 646,576

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 220,270	$ 179,549	$ 421,088	$ 338,867

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 5,931,675	$ 5,742,676
Accumulated amortization	2,335,890	1,938,650
Intangible assets, net	3,595,785	3,804,026
Trademarks
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	289,734	289,734
Software Development
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	1,773,708	1,635,731
Trade Names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	464,374	457,766
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,986,345	2,947,264
Noncompete Agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	267,375	261,914
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 150,139	$ 150,267

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 186,824	$ 175,532	$ 371,372	$ 312,169
Impairment of intangible assets, excluding goodwill			$ 30,480

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Goodwill [Roll Forward]
Goodwill beginning balance	$ 2,322,788	$ 1,856,642
Additions		161,737
Foreign Exchange	62,597	(62,576)
Impairment	(35,884)
Goodwill ending balance	$ 2,349,501	$ 1,955,803

GOODWILL - Narrative (Details)

GOODWILL - Narrative (Details)	6 Months Ended
	Jun. 30, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment loss	$ 35,884

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Film and film based products	$ 13,694,546	$ 9,399,067
Other products	1,355,668	1,264,862
Packaging and supplies	370,166	320,738
Inventory Reserve	(115,602)	(185,056)
Inventory, net	$ 15,304,778	$ 10,799,611

DEBT - Narrative (Details)

DEBT - Narrative (Details) - Line of Credit - Revolving Credit Facility	6 Months Ended
	Jun. 30, 2019CAD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
The Bank of San Antonio
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 8,500,000
Line of credit facility interest rate	6.25%	6.25%	6.25%
Amount outstanding		$ 0	$ 0
Covenant, debt service coverage ratio required, minimum	1.25	1.25
Covenant, debt to intangible net worth ratio required, minimum	4	4
HSBC Bank Canada
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 4,500,000
Line of credit facility interest rate	5.75%	5.75%	5.75%
Amount outstanding		$ 0	$ 0
Prime Rate | The Bank of San Antonio
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.75%
Debt instrument floor rate	4.25%
Prime Rate | HSBC Bank Canada
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.25%

DEBT - Schedule of Notes Payabl

DEBT - Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total Debt	$ 1,172,596	$ 1,821,387
Current Portion	670,516	853,150
Total Long-term debt	$ 502,080	968,237
Acquisition Notes Payable Due 2022
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	5.54%
Total Debt	$ 1,172,596	$ 1,821,387

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($)	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 8,004,168		$ 3,905,187
Payroll liabilities	647,914		1,194,237
Contract liabilities	1,731,383	$ 315,003	136,213
Other liabilities	872,253		1,056,456
Accounts payable and accrued liabilities	$ 11,255,718		$ 6,292,093

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 938,405	$ 808,011	$ 1,504,293	$ 1,469,073

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Purchase commitment renewal period	2 years
Purchase commitment renewal option notice	2 months
Quarterly purchase commitment		$ 5,000,000
Annual purchase commitment		$ 20,000,000

LEASES - Schedule of Balance Sh

LEASES - Schedule of Balance Sheet Information Related to Leases (Details)	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating lease ROU assets	$ 4,016,516
Current portion of operating lease liabilities	976,339
Noncurrent portion of operating lease liabilities	3,137,297
Total operating lease liabilities	$ 4,113,636

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Leases [Abstract]
Operating lease expense	$ 288,091		$ 590,334
Variable lease payment	131,270		239,351
Short-term lease expense	19,936		40,603
Operating lease payment	$ 280,352		$ 574,926
Operating lease rent expense		$ 272,281		$ 542,478

LEASES - Schedule of Weighted A

LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term (in years)	6 years 3 months 3 days
Weighted-average discount rate	5.87%

LEASES - Schedule of Maturities

LEASES - Schedule of Maturities of Operating Lease Liabilities (Details)	Jun. 30, 2019USD ($)
Leases [Abstract]
2019	$ 508,333
2020	882,469
2021	778,166
2022	695,870
2023	600,482
Thereafter	1,378,775
Total operating lease payments	4,844,095
Less: interest	(730,459)
Total operating lease liabilities	$ 4,113,636

LEASES - Schedule of Future Min

LEASES - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details)	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 869,492
2020	736,169
2021	667,551
2022	601,593
2023	528,427
Thereafter	1,372,388
Total operating leases future minimum payments due	$ 4,775,620