XPEL (XPEL) 10-Q 8 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2019	Nov. 08, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	Yes
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	Q3
Entity Central Index Key	0001767258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current
Cash and cash equivalents	$ 7,295,906	$ 3,971,226
Accounts receivable, net	7,285,327	5,554,313
Inventory, net	16,428,406	10,799,611
Prepaid expenses and other current assets	2,071,833	706,718
Total current assets	33,081,472	21,031,868
Property and equipment, net	3,666,166	3,384,206
Right-of-Use lease assets	4,515,591
Intangible assets, net	3,778,794	3,804,026
Other assets	29,385	0
Goodwill	2,334,505	2,322,788
Total assets	47,405,913	30,542,888
Current
Current portion of notes payable	586,154	853,150
Current portion lease liabilities	1,062,176
Accounts payable and accrued liabilities	10,585,352	6,292,093
Income tax payable	540,846	1,337,599
Total current liabilities	12,774,528	8,482,842
Deferred tax liability, net	629,397	478,864
Non-current portion of lease liabilities	3,544,207
Non-current portion of notes payable	399,209	968,237
Total liabilities	17,347,341	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 issued and outstanding	27,613	27,613
Additional paid-in-capital	11,348,163	11,348,163
Accumulated other comprehensive loss	(1,113,240)	(1,190,055)
Retained earnings	19,984,540	10,617,253
Equity attributable to stockholders of the company	30,247,076	20,802,974
Non-controlling interest	(188,504)	(190,029)
Total stockholders’ equity	30,058,572	20,612,945
Total liabilities and stockholders’ equity	$ 47,405,913	$ 30,542,888

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue
Total revenue	$ 35,617,998	$ 29,215,325	$ 90,437,598	$ 83,127,735
Cost of Sales
Total cost of sales	23,344,968	20,364,785	59,388,475	58,107,211
Gross Margin	12,273,030	8,850,540	31,049,123	25,020,524
Operating Expenses
Sales and marketing	1,805,038	1,898,586	5,468,980	4,935,194
General and administrative	4,798,833	3,962,674	13,466,690	10,857,814
Total operating expenses	6,603,871	5,861,260	18,935,670	15,793,008
Operating Income	5,669,159	2,989,280	12,113,453	9,227,516
Interest expense	23,851	31,301	81,631	135,385
Foreign currency exchange loss	136,951	85,551	151,859	108,675
Income before income taxes	5,508,357	2,872,428	11,879,963	8,983,456
Income tax expense	999,072	690,523	2,503,365	2,159,596
Net income	4,509,285	2,181,905	9,376,598	6,823,860
Income attributed to non-controlling interest	6,602	15,713	9,311	5,200
Net income attributable to stockholders of the Company	$ 4,502,683	$ 2,166,192	$ 9,367,287	$ 6,818,660
Earnings per share attributable stockholders of the Company
Earnings per share basic and diluted (in dollars per share)	$ 0.16	$ 0.08	$ 0.34	$ 0.25
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	27,229,720
Product revenue
Revenue
Total revenue	$ 30,815,251	$ 25,415,749	$ 77,295,463	$ 72,498,871
Cost of Sales
Total cost of sales	22,283,771	19,622,006	56,522,834	56,032,162
Service revenue
Revenue
Total revenue	4,802,747	3,799,576	13,142,135	10,628,864
Cost of Sales
Total cost of sales	$ 1,061,197	$ 742,779	$ 2,865,641	$ 2,075,049

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other comprehensive income
Net income	$ 4,509,285	$ 2,181,905	$ 9,376,598	$ 6,823,860
Foreign currency translation	(143,535)	165,187	69,029	(261,529)
Total comprehensive income including portion attributable to non-controlling interest	4,365,750	2,347,092	9,445,627	6,562,331
Total comprehensive income attributable to stockholders of the company	4,365,735	2,346,843	9,444,102	6,594,905
Total comprehensive income attributable to non-controlling interest	$ 15	$ 249	$ 1,525	$ (32,574)

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	6,823,860			6,818,660		6,818,660	5,200
Foreign currency translation	(261,529)				(223,755)	(223,755)	(37,774)
Ending stock outstanding balance (in shares) at Sep. 30, 2018		27,612,597
Ending balance at Sep. 30, 2018	19,057,717	$ 27,613	11,348,163	8,723,379	(820,438)	19,278,717	(221,000)
Beginning stock outstanding balance (in shares) at Jun. 30, 2018		27,612,597
Beginning balance at Jun. 30, 2018	16,710,625	$ 27,613	11,348,163	6,557,187	(1,001,089)	16,931,874	(221,249)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,181,905			2,166,192		2,166,192	15,713
Foreign currency translation	165,187				180,651	180,651	(15,464)
Ending stock outstanding balance (in shares) at Sep. 30, 2018		27,612,597
Ending balance at Sep. 30, 2018	19,057,717	$ 27,613	11,348,163	8,723,379	(820,438)	19,278,717	(221,000)
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	9,376,598			9,367,287		9,367,287	9,311
Foreign currency translation	69,029				76,815	76,815	(7,786)
Ending stock outstanding balance (in shares) at Sep. 30, 2019		27,612,597
Ending balance at Sep. 30, 2019	30,058,572	$ 27,613	11,348,163	19,984,540	(1,113,240)	30,247,076	(188,504)
Beginning stock outstanding balance (in shares) at Jun. 30, 2019		27,612,597
Beginning balance at Jun. 30, 2019	25,692,822	$ 27,613	11,348,163	15,481,857	(976,292)	25,881,341	(188,519)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,509,285			4,502,683		4,502,683	6,602
Foreign currency translation	(143,535)				(136,948)	(136,948)	(6,587)
Ending stock outstanding balance (in shares) at Sep. 30, 2019		27,612,597
Ending balance at Sep. 30, 2019	$ 30,058,572	$ 27,613	$ 11,348,163	$ 19,984,540	$ (1,113,240)	$ 30,247,076	$ (188,504)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 9,376,598	$ 6,823,860
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	655,385	539,379
Amortization of intangible assets	570,954	472,675
Impairments	66,364	0
Loss on sale of property and equipment	1,521	36,930
Bad debt expense	153,949	172,019
Deferred income tax	135,221	(67,462)
Accretion on notes payable	50,346	49,311
Changes in current assets and liabilities:
Accounts receivable	(1,883,620)	(1,623,508)
Inventory, net	(5,679,694)	(2,116,295)
Prepaid expenses and other current assets	(1,372,894)	(429,881)
Other assets	61,795	0
Accounts payable and accrued liabilities	4,308,679	696,860
Income tax payable	(799,052)	(205,842)
Net cash provided by operating activities	5,645,552	4,348,046
Cash flows used in investing activities
Purchase of property, plant and equipment	(994,074)	(1,064,909)
Proceeds from sale of property and equipment	41,197	117,122
Acquisition of subsidiaries, net of cash acquired and notes payable	0	(429,360)
Development of intangible assets	(534,720)	(129,947)
Net cash used in investing activities	(1,487,597)	(1,507,094)
Cash flows from financing activities
Net repayments on revolving credit agreement	0	(2,000,000)
Repayment of bank loan payable	0	(440,126)
Repayments of notes payable	(908,909)	(444,690)
Net cash used in financing activities	(908,909)	(2,884,816)
Net change in cash and cash equivalents	3,249,046	(43,864)
Foreign exchange impact on cash and cash equivalents	75,634	(8,470)
Increase (decrease) in cash and cash equivalents during the period	3,324,680	(52,334)
Cash and cash equivalents at beginning of period	3,971,226	3,498,904
Cash and cash equivalents at end of period	7,295,906	3,446,570
Supplemental schedule of non-cash activities
Notes payable issued for acquisitions	0	762,690
Forgiveness of debt for acquired entities	0	88,216
Supplemental cash flow information
Cash paid for income taxes	3,004,758	2,314,334
Cash paid for interest	$ 15,890	$ 84,974

INTERIM FINANCIAL INFORMATION

INTERIM FINANCIAL INFORMATION	9 Months Ended
	Sep. 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 consolidated financial statements as of and for the three and nine months ended September 30, 2019 have been prepared by XPEL, Inc. (“XPEL” or 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 (“SEC”). 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 the consolidated financial statements and related notes contained in the Company’s Amendment No. 2 to the Form 10 filed with the SEC 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	9 Months Ended
	Sep. 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 protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films and ceramic coatings. 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 is included as “Income 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 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 Germany GmbH 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 $169,010 and $133,696 as of September 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 September 30, 2019 and December 31, 2018 was $73,041 and $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, Right-Of-Use (“ROU”) assets and operating lease liabilities (current and long-term portions) as of September 30, 2019 were $4,515,591 and $4,606,383 , 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, 2023 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements.

REVENUE

REVENUE	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 : Balance, 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, 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, June 30, 2019 1,731,383 Revenue recognized related to payments included in the June 30, 2019 balance (1,659,056 ) Payments received for which performance obligations have not been satisfied 1,345,633 Balance, September 30, 2019 $ 1,417,960 The table below sets forth the disaggregation of revenue by product category for the periods indicated below: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Product Revenue Paint protection film $ 26,527,586 $ 22,533,967 $ 66,150,360 $ 64,672,721 Window film 3,522,815 2,125,910 8,526,886 5,662,725 Other 764,850 755,872 2,618,217 2,163,425 Total 30,815,251 25,415,749 77,295,463 72,498,871 Service Revenue Software $ 859,432 $ 653,090 $ 2,378,944 $ 1,886,176 Cutbank credits 1,957,224 1,641,337 5,487,320 4,583,739 Installation labor 1,843,936 1,414,326 4,790,279 3,854,328 Training 142,155 90,823 485,592 304,621 Total 4,802,747 3,799,576 13,142,135 10,628,864 Total $ 35,617,998 $ 29,215,325 $ 90,437,598 $ 83,127,735 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 Nine Months Ended 2019 2018 2019 2018 United States $ 15,738,762 $ 13,334,294 $ 44,745,859 $ 33,148,006 China 9,359,531 8,035,746 17,006,451 25,289,752 Canada 4,937,514 3,659,902 13,253,413 11,912,203 Continental Europe 1,945,104 1,606,842 5,341,164 4,610,313 United Kingdom 1,032,399 638,023 2,842,682 2,073,656 Asia Pacific 1,168,570 966,709 3,100,088 2,185,023 Latin America 578,055 362,749 1,576,864 1,593,987 Middle East/Africa 770,842 550,783 2,374,321 2,136,786 Other 87,221 60,277 196,756 178,009 Total $ 35,617,998 $ 29,215,325 $ 90,437,598 $ 83,127,735 Our largest customer accounted for 26.3% and 27.4% of our net sales during the three months ended September 30, 2019 and 2018 , respectively. Our largest customer accounted for 18.8% and 30.1% of our net sales during the nine months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 and December 31, 2018

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: September 30, 2019 December 31, 2018 Furniture and fixtures $ 1,101,141 $ 956,467 Computer equipment 1,069,427 939,979 Vehicles 711,959 730,765 Equipment 1,425,975 1,079,503 Leasehold improvements 1,325,282 941,627 Plotters 722,581 544,080 Construction in Progress 338,762 646,576 Total property and equipment 6,695,127 5,838,997 Less: accumulated depreciation 3,028,961 2,454,791 Property and equipment, net $ 3,666,166 $ 3,384,206 Depreciation expense for the three months ended September 30, 2019 and 2018 was $234,297 and $200,512 , respectively. Depreciation expense for the nine months ended September 30, 2019 and 2018 was $655,385 and $539,379 , respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Intangible assets consists of the following: September 30, 2019 December 31, 2018 Trademarks $ 301,542 $ 289,734 Software 2,158,500 1,635,731 Trade name 462,775 457,766 Contractual and customer relationships 2,967,383 2,947,264 Non-compete 266,054 261,914 Other 148,965 150,267 Total cost 6,305,219 5,742,676 Less: Accumulated amortization 2,526,425 1,938,650 Intangible assets, net $ 3,778,794 $ 3,804,026 Amortization expense for the three months ended September 30, 2019 and 2018 was $199,582 and $160,506 , respectively. Amortization expense for the nine months ended September 30, 2019 and 2018 was $570,954 and $472,675 , respectively. During the nine months ended September 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	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The following table summarizes goodwill transactions for the nine months ended September 30, 2019 and 2018 : Balance at December 31, 2017 $ 1,856,642 Acquisitions of subsidiaries 572,544 Foreign Exchange (31,876 ) Balance at September 30, 2018 $ 2,397,310 Balance at December 31, 2018 $ 2,322,788 Impairment (35,884 ) Foreign Exchange 47,601 Balance at September 30, 2019 $ 2,334,505 During the nine months ended September 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	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventory are summarized as follows: September 30, 2019 December 31, 2018 Film and film based products $ 14,712,742 $ 9,399,067 Other products 1,372,248 1,264,862 Packaging and supplies 473,141 320,738 Inventory reserve (129,725 ) (185,056 ) $ 16,428,406 $ 10,799,611

DEBT

DEBT	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
DEBT	DEBT REVOLVING FACILITIES The Company has 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 was 6.00% and 6.25% as of September 30, 2019 and December 31, 2018 , respectively. As of September 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 interest, the breach of any covenants, the occurrence of a material adverse change, and certain bankruptcy and insolvency events. As of September 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., also has 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 September 30, 2019 and December 31, 2018 was 5.75% . As of September 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 interest rates at the time of the acquisition. Notes payable are summarized as follows: Weighted Average Interest Rate Matures September 30, 2019 December 31, 2018 Acquisition notes payable 5.02% 2022 $ 985,363 $ 1,821,387 Total debt 985,363 1,821,387 Current portion 586,154 853,150 Total long-term debt $ 399,209 $ 968,237

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	9 Months Ended
	Sep. 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 the periods ending: September 30, 2019 December 31, 2018 Trade payables $ 7,126,796 $ 3,905,187 Payroll liabilities 1,000,777 1,194,237 Contract liabilities 1,417,960 136,213 Other liabilities 1,039,819 1,056,456 $ 10,585,352 $ 6,292,093

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 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 September 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	9 Months Ended
	Sep. 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 September 30, 2019 and 2018 of $999,072 and $690,523 , respectively. The Company recorded income tax expense during the nine months ended September 30, 2019 and 2018 of $2,503,365 and $2,159,596 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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. 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	9 Months Ended
	Sep. 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 included 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: September 30, 2019 Operating lease right-of-use assets $ 4,515,591 Current portion of operating lease liabilities 1,062,176 Noncurrent portion of operating lease liabilities 3,544,207 Total operating lease liabilities $ 4,606,383 We had operating lease expense of $286,534 and $876,868 for the three and nine months ended September 30, 2019 , respectively. Variable lease payments for the same periods were $119,425 and $358,776 , respectively. For the same periods, we also had short-term lease expenses of $15,636 , and $56,239 , respectively, and we made cash payments of $293,148 and $868,074 , 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: September 30, 2019 Weighted-average remaining lease term (in years) 6.0 Weighted-average discount rate 5.86 % The following table summarizes the maturity of our operating lease liabilities as of September 30, 2019 : 2019 $ 282,149 2020 1,071,630 2021 962,701 2022 888,620 2023 781,377 Thereafter 1,528,116 Total operating lease payments 5,514,593 Less: interest (908,210 ) Total operating lease liabilities $ 4,606,383 During the three and nine months ended September 30, 2018 , rent expense related to operating leases was approximately $310,075 and $852,553 , 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)	9 Months Ended
	Sep. 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 is included as “Income 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 $169,010 and $133,696 as of September 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, Right-Of-Use (“ROU”) assets and operating lease liabilities (current and long-term portions) as of September 30, 2019 were $4,515,591 and $4,606,383 , 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, 2023 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our 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 September 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)	9 Months Ended
	Sep. 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 Germany GmbH 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)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Transactions Within Contract Liabilities	The following table summarizes transactions within contract liabilities for the nine months ended September 30, 2019 : Balance, 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, 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, June 30, 2019 1,731,383 Revenue recognized related to payments included in the June 30, 2019 balance (1,659,056 ) Payments received for which performance obligations have not been satisfied 1,345,633 Balance, September 30, 2019 $ 1,417,960
Disaggregation of Revenue	The table below sets forth the disaggregation of revenue by product category for the periods indicated below: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Product Revenue Paint protection film $ 26,527,586 $ 22,533,967 $ 66,150,360 $ 64,672,721 Window film 3,522,815 2,125,910 8,526,886 5,662,725 Other 764,850 755,872 2,618,217 2,163,425 Total 30,815,251 25,415,749 77,295,463 72,498,871 Service Revenue Software $ 859,432 $ 653,090 $ 2,378,944 $ 1,886,176 Cutbank credits 1,957,224 1,641,337 5,487,320 4,583,739 Installation labor 1,843,936 1,414,326 4,790,279 3,854,328 Training 142,155 90,823 485,592 304,621 Total 4,802,747 3,799,576 13,142,135 10,628,864 Total $ 35,617,998 $ 29,215,325 $ 90,437,598 $ 83,127,735
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 Nine Months Ended 2019 2018 2019 2018 United States $ 15,738,762 $ 13,334,294 $ 44,745,859 $ 33,148,006 China 9,359,531 8,035,746 17,006,451 25,289,752 Canada 4,937,514 3,659,902 13,253,413 11,912,203 Continental Europe 1,945,104 1,606,842 5,341,164 4,610,313 United Kingdom 1,032,399 638,023 2,842,682 2,073,656 Asia Pacific 1,168,570 966,709 3,100,088 2,185,023 Latin America 578,055 362,749 1,576,864 1,593,987 Middle East/Africa 770,842 550,783 2,374,321 2,136,786 Other 87,221 60,277 196,756 178,009 Total $ 35,617,998 $ 29,215,325 $ 90,437,598 $ 83,127,735

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment consists of the following: September 30, 2019 December 31, 2018 Furniture and fixtures $ 1,101,141 $ 956,467 Computer equipment 1,069,427 939,979 Vehicles 711,959 730,765 Equipment 1,425,975 1,079,503 Leasehold improvements 1,325,282 941,627 Plotters 722,581 544,080 Construction in Progress 338,762 646,576 Total property and equipment 6,695,127 5,838,997 Less: accumulated depreciation 3,028,961 2,454,791 Property and equipment, net $ 3,666,166 $ 3,384,206

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consists of the following: September 30, 2019 December 31, 2018 Trademarks $ 301,542 $ 289,734 Software 2,158,500 1,635,731 Trade name 462,775 457,766 Contractual and customer relationships 2,967,383 2,947,264 Non-compete 266,054 261,914 Other 148,965 150,267 Total cost 6,305,219 5,742,676 Less: Accumulated amortization 2,526,425 1,938,650 Intangible assets, net $ 3,778,794 $ 3,804,026

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes goodwill transactions for the nine months ended September 30, 2019 and 2018 : Balance at December 31, 2017 $ 1,856,642 Acquisitions of subsidiaries 572,544 Foreign Exchange (31,876 ) Balance at September 30, 2018 $ 2,397,310 Balance at December 31, 2018 $ 2,322,788 Impairment (35,884 ) Foreign Exchange 47,601 Balance at September 30, 2019 $ 2,334,505

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory are summarized as follows: September 30, 2019 December 31, 2018 Film and film based products $ 14,712,742 $ 9,399,067 Other products 1,372,248 1,264,862 Packaging and supplies 473,141 320,738 Inventory reserve (129,725 ) (185,056 ) $ 16,428,406 $ 10,799,611

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable are summarized as follows: Weighted Average Interest Rate Matures September 30, 2019 December 31, 2018 Acquisition notes payable 5.02% 2022 $ 985,363 $ 1,821,387 Total debt 985,363 1,821,387 Current portion 586,154 853,150 Total long-term debt $ 399,209 $ 968,237

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	9 Months Ended
	Sep. 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 the periods ending: September 30, 2019 December 31, 2018 Trade payables $ 7,126,796 $ 3,905,187 Payroll liabilities 1,000,777 1,194,237 Contract liabilities 1,417,960 136,213 Other liabilities 1,039,819 1,056,456 $ 10,585,352 $ 6,292,093

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Balance Sheet Information Related To Leases	Balance sheet information related to operating leases is as follows: September 30, 2019 Operating lease right-of-use assets $ 4,515,591 Current portion of operating lease liabilities 1,062,176 Noncurrent portion of operating lease liabilities 3,544,207 Total operating lease liabilities $ 4,606,383
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: September 30, 2019 Weighted-average remaining lease term (in years) 6.0 Weighted-average discount rate 5.86 %
Schedule of Maturities of Operating Lease Liabilities	The following table summarizes the maturity of our operating lease liabilities as of September 30, 2019 : 2019 $ 282,149 2020 1,071,630 2021 962,701 2022 888,620 2023 781,377 Thereafter 1,528,116 Total operating lease payments 5,514,593 Less: interest (908,210 ) Total operating lease liabilities $ 4,606,383
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)	Sep. 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 Germany GmbH
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)	9 Months Ended
	Sep. 30, 2019segment
Accounting Policies [Abstract]
Number of operating segments	1

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 169,010	$ 133,696

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Warranty liability	$ 73,041	$ 70,250

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements (Details)	Sep. 30, 2019USD ($)
Accounting Policies [Abstract]
Operating lease right-of-use assets	$ 4,515,591
Total operating lease liabilities	$ 4,606,383

REVENUE - Schedule of Transacti

REVENUE - Schedule of Transactions Within Contract Liabilities (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Change in Contract with Customer, Liability [Abstract]
Beginning contract liabilities	$ 1,731,383	$ 315,003	$ 136,213
Revenue recognized related to payments in beginning balance	(1,659,056)	(77,265)	(38,405)
Payments received for which performance obligations have not been satisfied	1,345,633	1,493,645	217,195
Ending contract liabilities	$ 1,417,960	$ 1,731,383	$ 315,003

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 35,617,998	$ 29,215,325	$ 90,437,598	$ 83,127,735
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	30,815,251	25,415,749	77,295,463	72,498,871
Paint protection film
Disaggregation of Revenue [Line Items]
Total revenue	26,527,586	22,533,967	66,150,360	64,672,721
Window film
Disaggregation of Revenue [Line Items]
Total revenue	3,522,815	2,125,910	8,526,886	5,662,725
Other
Disaggregation of Revenue [Line Items]
Total revenue	764,850	755,872	2,618,217	2,163,425
Service revenue
Disaggregation of Revenue [Line Items]
Total revenue	4,802,747	3,799,576	13,142,135	10,628,864
Software
Disaggregation of Revenue [Line Items]
Total revenue	859,432	653,090	2,378,944	1,886,176
Cutbank credits
Disaggregation of Revenue [Line Items]
Total revenue	1,957,224	1,641,337	5,487,320	4,583,739
Installation labor
Disaggregation of Revenue [Line Items]
Total revenue	1,843,936	1,414,326	4,790,279	3,854,328
Training
Disaggregation of Revenue [Line Items]
Total revenue	$ 142,155	$ 90,823	$ 485,592	$ 304,621

REVENUE - Revenue Estimate By G

REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 35,617,998	$ 29,215,325	$ 90,437,598	$ 83,127,735
United States
Disaggregation of Revenue [Line Items]
Total revenue	15,738,762	13,334,294	44,745,859	33,148,006
China
Disaggregation of Revenue [Line Items]
Total revenue	9,359,531	8,035,746	17,006,451	25,289,752
Canada
Disaggregation of Revenue [Line Items]
Total revenue	4,937,514	3,659,902	13,253,413	11,912,203
Continental Europe
Disaggregation of Revenue [Line Items]
Total revenue	1,945,104	1,606,842	5,341,164	4,610,313
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	1,032,399	638,023	2,842,682	2,073,656
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	1,168,570	966,709	3,100,088	2,185,023
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	578,055	362,749	1,576,864	1,593,987
Middle East/Africa
Disaggregation of Revenue [Line Items]
Total revenue	770,842	550,783	2,374,321	2,136,786
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 87,221	$ 60,277	$ 196,756	$ 178,009

REVENUE - Narrative (Details)

REVENUE - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Largest Customer | Customer Concentration Risk | Revenue from Contract with Customer Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk percentage	26.30%	27.40%	18.80%	30.10%

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 6,695,127	$ 5,838,997
Accumulated depreciation	3,028,961	2,454,791
Property and equipment, net	3,666,166	3,384,206
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,101,141	956,467
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,069,427	939,979
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment	711,959	730,765
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,425,975	1,079,503
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,325,282	941,627
Plotters
Property, Plant and Equipment [Line Items]
Property, plant and equipment	722,581	544,080
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 338,762	$ 646,576

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 234,297	$ 200,512	$ 655,385	$ 539,379

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 6,305,219	$ 5,742,676
Accumulated amortization	2,526,425	1,938,650
Intangible assets, net	3,778,794	3,804,026
Trademarks
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	301,542	289,734
Software
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,158,500	1,635,731
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	462,775	457,766
Contractual and customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,967,383	2,947,264
Non-compete
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	266,054	261,914
Other
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 148,965	$ 150,267

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 199,582	$ 160,506	$ 570,954	$ 472,675
Impairment of intangible assets, excluding goodwill			$ 30,480

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Goodwill [Roll Forward]
Goodwill beginning balance	$ 2,322,788	$ 1,856,642
Acquisitions of subsidiaries		572,544
Foreign Exchange	47,601	(31,876)
Impairment	(35,884)
Goodwill ending balance	$ 2,334,505	$ 2,397,310

GOODWILL - Narrative (Details)

GOODWILL - Narrative (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment loss	$ 35,884

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Film and film based products	$ 14,712,742	$ 9,399,067
Other products	1,372,248	1,264,862
Packaging and supplies	473,141	320,738
Inventory reserve	(129,725)	(185,056)
Inventory, net	$ 16,428,406	$ 10,799,611

DEBT - Narrative (Details)

DEBT - Narrative (Details) - Line of Credit - Revolving Credit Facility	9 Months Ended
	Sep. 30, 2019CAD ($)	Sep. 30, 2019USD ($)	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	6.00%	6.00%	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 ($)	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt	$ 985,363	$ 1,821,387
Current portion	586,154	853,150
Total long-term debt	$ 399,209	968,237
Acquisition Notes Payable Due 2022
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	5.02%
Total debt	$ 985,363	$ 1,821,387

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 7,126,796			$ 3,905,187
Payroll liabilities	1,000,777			1,194,237
Contract liabilities	1,417,960	$ 1,731,383	$ 315,003	136,213
Other liabilities	1,039,819			1,056,456
Accounts payable and accrued liabilities	$ 10,585,352			$ 6,292,093

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 999,072	$ 690,523	$ 2,503,365	$ 2,159,596

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 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)	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 4,515,591
Current portion of operating lease liabilities	1,062,176
Noncurrent portion of operating lease liabilities	3,544,207
Total operating lease liabilities	$ 4,606,383

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Leases [Abstract]
Operating lease expense	$ 286,534		$ 876,868
Variable lease payment	119,425		358,776
Short-term lease expense	15,636		56,239
Operating lease payment	$ 293,148		$ 868,074
Operating lease rent expense		$ 310,075		$ 852,553

LEASES - Schedule of Weighted A

LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term (in years)	6 years
Weighted-average discount rate	5.86%

LEASES - Schedule of Maturities

LEASES - Schedule of Maturities of Operating Lease Liabilities (Details)	Sep. 30, 2019USD ($)
Leases [Abstract]
2019	$ 282,149
2020	1,071,630
2021	962,701
2022	888,620
2023	781,377
Thereafter	1,528,116
Total operating lease payments	5,514,593
Less: interest	(908,210)
Total operating lease liabilities	$ 4,606,383

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