XPEL (XPEL) 10-Q 12 Aug 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2020	Aug. 12, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
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	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001767258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current
Cash and cash equivalents	$ 25,795,909	$ 11,500,973
Accounts receivable, net	7,215,230	7,154,084
Inventory, net	14,706,582	15,141,153
Prepaid expenses and other current assets	2,103,656	2,391,340
Income tax receivable	0	93,150
Total current assets	49,821,377	36,280,700
Property and equipment, net	4,549,533	4,014,653
Right-of-Use lease assets	5,260,732	5,079,110
Intangible assets, net	4,586,343	3,820,460
Other assets	457,020	0
Goodwill	3,497,883	2,406,512
Total assets	68,172,888	51,601,435
Current
Current portion of notes payable	2,543,301	462,226
Current portion lease liabilities	1,321,116	1,126,701
Accounts payable and accrued liabilities	13,787,059	10,197,353
Income tax payable	1,456,136	0
Total current liabilities	19,107,612	11,786,280
Deferred tax liability, net	844,928	604,715
Non-current portion of lease liabilities	4,001,669	4,009,949
Non-current portion of notes payable	4,819,237	307,281
Total liabilities	28,773,446	16,708,225
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	10,412,471	11,348,163
Accumulated other comprehensive loss	(1,220,564)	(908,764)
Retained earnings	30,179,922	24,594,878
Equity attributable to stockholders of the company	39,399,442	35,061,890
Non-controlling interest	0	(168,680)
Total stockholders’ equity	39,399,442	34,893,210
Total liabilities and stockholders’ equity	$ 68,172,888	$ 51,601,435

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
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, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Total revenue	$ 35,805,858	$ 30,094,154	$ 64,194,321	$ 54,819,600
Cost of Sales
Total cost of sales	24,066,781	19,468,141	42,158,356	36,043,507
Gross Margin	11,739,077	10,626,013	22,035,965	18,776,093
Operating Expenses
Sales and marketing	1,919,529	2,064,836	4,662,778	3,663,942
General and administrative	4,679,092	4,589,906	9,748,863	8,667,857
Total operating expenses	6,598,621	6,654,742	14,411,641	12,331,799
Operating Income	5,140,456	3,971,271	7,624,324	6,444,294
Interest expense	74,554	29,074	105,112	57,780
Foreign currency exchange loss (gain)	4,141	(3,518)	419,718	14,908
Income before income taxes	5,061,761	3,945,715	7,099,494	6,371,606
Income tax expense	1,088,071	938,405	1,514,450	1,504,293
Net income	3,973,690	3,007,310	5,585,044	4,867,313
Income attributed to non-controlling interest	0	1,293	0	2,709
Net income attributable to stockholders of the Company	$ 3,973,690	$ 3,006,017	$ 5,585,044	$ 4,864,604
Earnings per share attributable stockholders of the Company
Basic and diluted (in dollars per share)	$ 0.14	$ 0.11	$ 0.20	$ 0.18
Weighted Average Number of Common Shares
Basic and diluted (in shares)	27,612,597	27,612,597	27,612,597	27,612,597
Product revenue
Revenue
Total revenue	$ 30,961,996	$ 25,425,489	$ 54,711,913	$ 46,480,212
Cost of Sales
Total cost of sales	22,556,696	18,551,030	39,318,109	34,239,063
Service revenue
Revenue
Total revenue	4,843,862	4,668,665	9,482,408	8,339,388
Cost of Sales
Total cost of sales	$ 1,510,085	$ 917,111	$ 2,840,247	$ 1,804,444

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other comprehensive income
Total comprehensive income	$ 3,973,690	$ 3,007,310	$ 5,585,044	$ 4,867,313
Foreign currency translation	443,722	133,306	(316,333)	212,564
Total comprehensive income including portion attributable to non-controlling interest	4,417,412	3,140,616	5,268,711	5,079,877
Total comprehensive income attributable to stockholders of the company	4,417,412	3,145,330	5,273,244	5,078,367
Non-controlling interest	$ 0	$ (4,714)	$ (4,533)	$ 1,510

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, 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)
Beginning stock outstanding balance (in shares) at Dec. 31, 2019		27,612,597
Beginning balance at Dec. 31, 2019	34,893,210	$ 27,613	11,348,163	24,594,878	(908,764)	35,061,890	(168,680)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,585,044			5,585,044		5,585,044
Foreign currency translation	(316,333)				(311,800)	(311,800)	(4,533)
Purchase of minority interest	(762,479)		(935,692)			(935,692)	173,213
Ending stock outstanding balance (in shares) at Jun. 30, 2020		27,612,597
Ending balance at Jun. 30, 2020	39,399,442	$ 27,613	10,412,471	30,179,922	(1,220,564)	39,399,442	0
Beginning stock outstanding balance (in shares) at Mar. 31, 2020		27,612,597
Beginning balance at Mar. 31, 2020	34,982,030	$ 27,613	10,412,471	26,206,232	(1,664,286)	34,982,030	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,973,690			3,973,690		3,973,690
Foreign currency translation	443,722				443,722	443,722	0
Ending stock outstanding balance (in shares) at Jun. 30, 2020		27,612,597
Ending balance at Jun. 30, 2020	$ 39,399,442	$ 27,613	$ 10,412,471	$ 30,179,922	$ (1,220,564)	$ 39,399,442	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income	$ 5,585,044	$ 4,867,313
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	564,177	421,088
Amortization of intangible assets	466,121	371,372
Impairments	0	66,364
Loss on sale of property and equipment	5,106	24,605
Bad debt expense	88,451	123,753
Deferred income tax	(50,738)	58,405
Accretion on notes payable	24,956	36,843
Changes in assets and liabilities:
Accounts receivable	(45,427)	(2,063,400)
Inventory, net	270,890	(4,427,940)
Prepaid expenses and other current assets	257,599	(603,016)
Income tax receivable	94,729	0
Other assets	(419,802)	26,194
Accounts payable and accrued liabilities	3,520,202	4,975,948
Income tax payable	1,421,453	(799,700)
Net cash provided by operating activities	11,782,761	3,077,829
Cash flows used in investing activities
Purchase of property, plant and equipment	(1,041,987)	(764,125)
Proceeds from sale of property and equipment	38,469	11,386
Acquisition of a business, net of cash acquired	(1,247,843)	0
Development of intangible assets	(198,284)	(138,097)
Net cash used in investing activities	(2,449,645)	(890,836)
Cash flows from financing activities
Proceeds from Lines of Credit	8,932,016	0
Repayments of Lines of Credit	(8,932,016)	0
Borrowing on term loan	6,000,000	0
Repayments of notes payable	(392,394)	(714,668)
Purchase of minority interest	(784,653)	0
Net cash provided by (used in) financing activities	4,822,953	(714,668)
Net change in cash and cash equivalents	14,156,069	1,472,325
Foreign exchange impact on cash and cash equivalents	138,867	30,413
Increase in cash and cash equivalents during the period	14,294,936	1,502,738
Cash and cash equivalents at beginning of period	11,500,973	3,971,226
Cash and cash equivalents at end of period	25,795,909	5,473,964
Supplemental schedule of non-cash activities
Notes payable issued for acquisitions	893,317	0
Supplemental cash flow information
Cash paid for income taxes	77,026	2,058,925
Cash paid for interest	$ 50,955	$ 10,997

INTERIM FINANCIAL INFORMATION

INTERIM FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2020
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, 2019, which has been derived from audited financial statements, and (b) unaudited interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2020 and 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 annual report on Form 10-K as filed with the SEC on March 16, 2020. These condensed consolidated financial statements also should be read in conjunction with the 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. On February 1, 2020, the Company acquired the remaining 15% minority interest in XPEL, Ltd., the subsidiary of the Company operating in the United Kingdom, for a purchase price of £600,000, or $762,479. This purchase is reflected in the Condensed Consolidated Statement of Changes in Stockholders' Equity.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Nature of Business - The Company is based in San Antonio, Texas and is a global provider of protective films and coatings, including automotive paint protection film, surface protection film, and automotive and commercial/residential window films and ceramic coatings as well as a provider of complementary proprietary software. 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 United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly owned or majority owned subsidiaries. In applicable years, 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 presented as foreign currency exchange loss 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 100 % * 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 % XPEL Slovakia Euro 100 % * Refer to Note 1 for information related to purchase of minority interest 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 $198,786 and $182,488 as of June 30, 2020 and December 31, 2019, 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. Accounts receivable from a large customer accounted for 18.8% of the Company's total accounts receivable balance as of December 31, 2019. As of June 30, 2020, the Company had no similar accounts receivable concentration. 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, 2020 and December 31, 2019 was $57,434 and $65,591, respectively. The following tables present a summary of our accrued warranty liabilities for the six months ended June 30, 2020 and the twelve months ended December 31, 2019: 2020 Warranty liability, January 1 $ 65,591 Warranties assumed in period 128,599 Payments (136,756) Warranty liability, June 30 $ 57,434 2019 Warranty liability, January 1 $ 70,250 Warranties assumed in period 384,214 Payments (388,873) Warranty liability, December 31 $ 65,591 Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In December 2019, the FASB issued Accounting Standards Update ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and changes in tax laws or rates, as well as clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for the Company beginning January 1, 2021. We do not expect this standard to have a material effect on our consolidated financial statements.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2020
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 provides 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 three and six months ended June 30, 2020: Balance, December 31, 2019 $ 559,232 Revenue recognized related to payments included in the December 31, 2019 balance (526,202) Payments received for which performance obligations have not been satisfied 1,043,767 Effect of foreign currency translation (734) Balance, March 31, 2020 $ 1,076,063 Revenue recognized related to payments included in the March 31, 2020 balance (1,022,851) Payments received for which performance obligations have not been satisfied 163,903 Effect of foreign currency translation 1,215 Balance, June 30, 2020 $ 218,330 The table below sets forth the disaggregation of revenue by product category for the periods indicated below: Three Months Ended Six Months Ended 2020 2019 2020 2019 Product Revenue Paint protection film $ 24,248,115 $ 21,166,420 $ 44,019,235 $ 39,622,775 Window film 5,954,800 3,171,155 9,044,906 5,004,071 Other 759,081 1,087,914 1,647,772 1,853,366 Total 30,961,996 25,425,489 54,711,913 46,480,212 Service Revenue Software $ 809,897 $ 775,745 $ 1,661,469 $ 1,519,513 Cutbank credits 1,611,858 2,064,962 3,225,122 3,530,096 Installation labor 2,391,570 1,647,954 4,413,020 2,946,343 Training 30,537 180,004 182,797 343,436 Total 4,843,862 4,668,665 9,482,408 8,339,388 Total $ 35,805,858 $ 30,094,154 $ 64,194,321 $ 54,819,600 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 Six Months Ended 2020 2019 2020 2019 United States $ 16,118,729 $ 16,497,347 $ 31,671,767 $ 29,007,097 China 9,987,370 3,127,723 12,011,879 7,646,920 Canada 3,958,167 5,217,535 8,133,364 8,315,899 Continental Europe 2,897,562 1,974,328 5,691,304 3,396,060 United Kingdom 630,720 926,925 1,747,148 1,810,283 Asia Pacific 1,141,191 1,059,560 1,911,235 1,931,518 Latin America 484,358 512,680 962,053 998,809 Middle East/Africa 561,510 720,347 1,850,566 1,603,479 Other 26,251 57,709 215,005 109,535 Total $ 35,805,858 $ 30,094,154 $ 64,194,321 $ 54,819,600 Our largest customer accounted for 27.9% and 10.4% of our net sales during the three months ended June 30, 2020 and 2019, respectively and 18.7% and 13.9% of our net sales during the six months ended June 30, 2020 and 2019, respectively.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: June 30, 2020 December 31, 2019 Furniture and fixtures $ 1,241,569 $ 1,168,894 Computer equipment 1,293,000 1,151,295 Vehicles 733,560 683,213 Equipment 1,816,629 1,648,656 Leasehold improvements 1,857,920 1,479,594 Plotters 1,040,553 839,455 Construction in Progress 311,910 306,100 Total property and equipment 8,295,141 7,277,207 Less: accumulated depreciation 3,745,608 3,262,554 Property and equipment, net $ 4,549,533 $ 4,014,653 Depreciation expense for the three months ended June 30, 2020 and 2019 was $293,860 and $220,270, respectively. For the six months ended June 30, 2020 and 2019, depreciation expense was $564,177 and $421,088, respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Intangible assets consists of the following: June 30, 2020 December 31, 2019 Trademarks $ 323,076 $ 309,395 Software 2,473,813 2,288,062 Trade name 481,744 492,408 Contractual and customer relationships 3,881,040 3,010,480 Non-compete 394,844 268,459 Other 201,734 208,012 Total cost 7,756,251 6,576,816 Less: Accumulated amortization 3,169,908 2,756,356 Intangible assets, net $ 4,586,343 $ 3,820,460 Amortization expense for the three months ended June 30, 2020 and 2019 was $232,225 and $186,824, respectively. For the six months ended June 30, 2020 and 2019, amortization expense was $466,121 and $371,372, respectively. The Company completed the acquisition of a business during the six months ended June 30, 2020. Refer to Note 12 for additional information related to intangible assets added from this acquisition.

GOODWILL

GOODWILL	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The following table summarizes goodwill transactions for the six months ended June 30, 2020 and 2019: Balance at December 31, 2018 $ 2,322,788 Impairment (35,884) Foreign Exchange 62,597 Balance at June 30, 2019 $ 2,349,501 Balance at December 31, 2019 $ 2,406,512 Additions 1,184,774 Foreign Exchange (93,403) Balance at June 30, 2020 $ 3,497,883 The Company completed the acquisition of a business during the six months ended June 30, 2020. Refer to Note 12 for additional information related to goodwill added from this acquisition.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventory are summarized as follows: June 30, 2020 December 31, 2019 Film and film based products $ 12,930,514 $ 13,538,610 Other products 1,430,560 1,226,708 Packaging and supplies 438,905 496,661 Inventory reserve (93,397) (120,826) $ 14,706,582 $ 15,141,153

DEBT

DEBT	6 Months Ended
	Jun. 30, 2020
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. Borrowings under the credit agreement bear interest at a variable rate of the Wall Street Journal prime rate minus 1.00% with a floor of 3.50%. In May 2020, the Company renewed this line of credit, extending its maturity date to June 5, 2022. The interest rate was 3.50% and 5.50% as of June 30, 2020 and December 31, 2019, respectively. During the three months ended June 30, 2020, the Company repaid a total of $6,000,000 under this facility plus interest of $41,806. As of both June 30, 2020 and December 31, 2019, 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 (Earnings Before Interest Taxes Depreciation and Amortization, or EBITDA, divided by the current portion of long-term debt + interest) of 1.25:1 and funded debt of no more than 2.5 times EBITDA 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 June 30, 2020 and December 31, 2019, 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 June 30, 2020 and December 31, 2019 was 2.70% and 4.20%, respectively. During the three months ended June 30, 2020, the Company borrowed and repaid CAD $4,000,000 under this facility plus interest of CAD $13,051. As of June 30, 2020 and December 31, 2019, no balance was outstanding on this line of credit. This facility is guaranteed by the parent company. NOTES PAYABLE On May 11, 2020, the Company borrowed $6,000,000 pursuant to a 36-month term-loan with The Bank of San Antonio. The term-loan bears interest at a rate of 3.5% per annum, requires monthly payments of principal and interest and matures in June 2023. As of June 30, 2020, $6,000,000 was outstanding under the term-loan. The term-note is secured by a security interest in substantially all of our current and future assets. 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 June 30, 2020 December 31, 2019 Term-loan 3.50% 2023 $ 6,000,000 $ — Acquisition notes payable 3.23% 2023 1,362,538 769,507 Total debt 7,362,538 769,507 Current portion 2,543,301 462,226 Total long-term debt $ 4,819,237 $ 307,281

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2020
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: June 30, 2020 December 31, 2019 Trade payables $ 11,339,567 $ 7,440,965 Payroll liabilities 1,230,156 1,367,340 Contract liabilities 218,330 559,232 Other liabilities 999,006 829,816 $ 13,787,059 $ 10,197,353

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Financial instruments include cash and cash equivalents (level 1) 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, 2020 and December 31, 2019. 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.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
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, 2022, which term automatically renews for successive two

ACQUISITION OF A BUSINESS

ACQUISITION OF A BUSINESS	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
ACQUISITION OF A BUSINESS	ACQUISITION OF A BUSINESS The Company completed the following acquisition during the six months ended June 30, 2020: Acquisition Date Name/Location/Description Purchase Price Acquisition Type Acquisition Purpose February 1, 2020 Protex Centre, Laval, Quebec, Canada - Paint protection installation shop $2,383,968 Share Purchase Local market expansion The total preliminary purchase price for the acquisition completed during the six months ended June 30, 2020 and a preliminary allocation of that purchase price are set forth in the table below. The purchase agreement provides for customary purchase price adjustments related to acquired working capital that have not yet been finalized. Protex Centre Purchase Price Cash $ 1,490,651 Promissory notes 893,317 $ 2,383,968 Allocation Cash $ 242,808 Accounts receivable 206,808 Inventory 27,732 Prepaid assets 3,764 Other long-term assets 6,197 Property, plant, and equipment 161,702 Software 1,027 Customer relationships 987,556 Non-compete 136,395 Goodwill 1,184,774 Accounts payable and accrued liabilities (142,175) Assumed debt (108,766) Deferred tax liability (281,565) Taxes payable (42,289) $ 2,383,968 Intangible assets acquired in 2020 have a weighted average useful life of 8.51 years. Goodwill for these acquisitions relates to expansion in a local market and is deductible for tax purposes. The goodwill represents the acquired employee knowledge of the various markets, distribution knowledge by the employees of the acquired businesses, as well as the expected synergies resulting from the acquisitions. Acquisition costs incurred related to these acquisitions were immaterial and were included in selling, general and administrative expenses. The acquired company was consolidated into our financial statements on its acquisition date. The amount of revenue and net income of this acquisition which has been consolidated into our financial statements for the six months ended June 30, 2020 was $1,167,815 and $189,322, respectively. The following unaudited consolidated pro forma combined financial information presents our results, including the estimated expenses relating to the amortization of intangibles purchased, as if this acquisition had occurred on January 1, 2020 and 2019: Six Months Ended June 30, 2020 (unaudited) 2019 (unaudited) Revenue 64,321,080 56,140,866 Net income 5,434,874 4,856,487 The unaudited consolidated pro forma combined financial information does not purport to be indicative of the results which would have been obtained had the acquisition been completed as of the beginning of the earliest period presented or of results that may be obtained in the future. In addition, they do not include any benefits that may result from the acquisition due to synergies that may be derived from the elimination of any duplicative costs.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly owned or majority owned subsidiaries. In applicable years, 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
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 $198,786 and $182,488 as of June 30, 2020 and December 31, 2019, 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 - 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.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Issued and Not Yet Adopted	Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In December 2019, the FASB issued Accounting Standards Update ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and changes in tax laws or rates, as well as clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for the Company beginning January 1, 2021. We do not expect this standard to have a material effect 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 provides 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) 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, 2020 and December 31, 2019. 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, 2020
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 100 % * 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 % XPEL Slovakia Euro 100 % * Refer to Note 1 for information related to purchase of minority interest
Schedule of Product Warranty Liability	The following tables present a summary of our accrued warranty liabilities for the six months ended June 30, 2020 and the twelve months ended December 31, 2019: 2020 Warranty liability, January 1 $ 65,591 Warranties assumed in period 128,599 Payments (136,756) Warranty liability, June 30 $ 57,434 2019 Warranty liability, January 1 $ 70,250 Warranties assumed in period 384,214 Payments (388,873) Warranty liability, December 31 $ 65,591

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Transactions Within Contract Liabilities	The following table summarizes transactions within contract liabilities for the three and six months ended June 30, 2020: Balance, December 31, 2019 $ 559,232 Revenue recognized related to payments included in the December 31, 2019 balance (526,202) Payments received for which performance obligations have not been satisfied 1,043,767 Effect of foreign currency translation (734) Balance, March 31, 2020 $ 1,076,063 Revenue recognized related to payments included in the March 31, 2020 balance (1,022,851) Payments received for which performance obligations have not been satisfied 163,903 Effect of foreign currency translation 1,215 Balance, June 30, 2020 $ 218,330
Disaggregation of Revenue	The table below sets forth the disaggregation of revenue by product category for the periods indicated below: Three Months Ended Six Months Ended 2020 2019 2020 2019 Product Revenue Paint protection film $ 24,248,115 $ 21,166,420 $ 44,019,235 $ 39,622,775 Window film 5,954,800 3,171,155 9,044,906 5,004,071 Other 759,081 1,087,914 1,647,772 1,853,366 Total 30,961,996 25,425,489 54,711,913 46,480,212 Service Revenue Software $ 809,897 $ 775,745 $ 1,661,469 $ 1,519,513 Cutbank credits 1,611,858 2,064,962 3,225,122 3,530,096 Installation labor 2,391,570 1,647,954 4,413,020 2,946,343 Training 30,537 180,004 182,797 343,436 Total 4,843,862 4,668,665 9,482,408 8,339,388 Total $ 35,805,858 $ 30,094,154 $ 64,194,321 $ 54,819,600
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 Six Months Ended 2020 2019 2020 2019 United States $ 16,118,729 $ 16,497,347 $ 31,671,767 $ 29,007,097 China 9,987,370 3,127,723 12,011,879 7,646,920 Canada 3,958,167 5,217,535 8,133,364 8,315,899 Continental Europe 2,897,562 1,974,328 5,691,304 3,396,060 United Kingdom 630,720 926,925 1,747,148 1,810,283 Asia Pacific 1,141,191 1,059,560 1,911,235 1,931,518 Latin America 484,358 512,680 962,053 998,809 Middle East/Africa 561,510 720,347 1,850,566 1,603,479 Other 26,251 57,709 215,005 109,535 Total $ 35,805,858 $ 30,094,154 $ 64,194,321 $ 54,819,600

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment consists of the following: June 30, 2020 December 31, 2019 Furniture and fixtures $ 1,241,569 $ 1,168,894 Computer equipment 1,293,000 1,151,295 Vehicles 733,560 683,213 Equipment 1,816,629 1,648,656 Leasehold improvements 1,857,920 1,479,594 Plotters 1,040,553 839,455 Construction in Progress 311,910 306,100 Total property and equipment 8,295,141 7,277,207 Less: accumulated depreciation 3,745,608 3,262,554 Property and equipment, net $ 4,549,533 $ 4,014,653

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consists of the following: June 30, 2020 December 31, 2019 Trademarks $ 323,076 $ 309,395 Software 2,473,813 2,288,062 Trade name 481,744 492,408 Contractual and customer relationships 3,881,040 3,010,480 Non-compete 394,844 268,459 Other 201,734 208,012 Total cost 7,756,251 6,576,816 Less: Accumulated amortization 3,169,908 2,756,356 Intangible assets, net $ 4,586,343 $ 3,820,460

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes goodwill transactions for the six months ended June 30, 2020 and 2019: Balance at December 31, 2018 $ 2,322,788 Impairment (35,884) Foreign Exchange 62,597 Balance at June 30, 2019 $ 2,349,501 Balance at December 31, 2019 $ 2,406,512 Additions 1,184,774 Foreign Exchange (93,403) Balance at June 30, 2020 $ 3,497,883

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory are summarized as follows: June 30, 2020 December 31, 2019 Film and film based products $ 12,930,514 $ 13,538,610 Other products 1,430,560 1,226,708 Packaging and supplies 438,905 496,661 Inventory reserve (93,397) (120,826) $ 14,706,582 $ 15,141,153

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable are summarized as follows: Weighted Average Interest Rate Matures June 30, 2020 December 31, 2019 Term-loan 3.50% 2023 $ 6,000,000 $ — Acquisition notes payable 3.23% 2023 1,362,538 769,507 Total debt 7,362,538 769,507 Current portion 2,543,301 462,226 Total long-term debt $ 4,819,237 $ 307,281

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2020
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: June 30, 2020 December 31, 2019 Trade payables $ 11,339,567 $ 7,440,965 Payroll liabilities 1,230,156 1,367,340 Contract liabilities 218,330 559,232 Other liabilities 999,006 829,816 $ 13,787,059 $ 10,197,353

ACQUISITION OF A BUSINESS (Tabl

ACQUISITION OF A BUSINESS (Tables)	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Completed Acquisitions	The Company completed the following acquisition during the six months ended June 30, 2020: Acquisition Date Name/Location/Description Purchase Price Acquisition Type Acquisition Purpose February 1, 2020 Protex Centre, Laval, Quebec, Canada - Paint protection installation shop $2,383,968 Share Purchase Local market expansion
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The total preliminary purchase price for the acquisition completed during the six months ended June 30, 2020 and a preliminary allocation of that purchase price are set forth in the table below. The purchase agreement provides for customary purchase price adjustments related to acquired working capital that have not yet been finalized. Protex Centre Purchase Price Cash $ 1,490,651 Promissory notes 893,317 $ 2,383,968 Allocation Cash $ 242,808 Accounts receivable 206,808 Inventory 27,732 Prepaid assets 3,764 Other long-term assets 6,197 Property, plant, and equipment 161,702 Software 1,027 Customer relationships 987,556 Non-compete 136,395 Goodwill 1,184,774 Accounts payable and accrued liabilities (142,175) Assumed debt (108,766) Deferred tax liability (281,565) Taxes payable (42,289) $ 2,383,968
Pro Forma Information	The following unaudited consolidated pro forma combined financial information presents our results, including the estimated expenses relating to the amortization of intangibles purchased, as if this acquisition had occurred on January 1, 2020 and 2019: Six Months Ended June 30, 2020 (unaudited) 2019 (unaudited) Revenue 64,321,080 56,140,866 Net income 5,434,874 4,856,487

INTERIM FINANCIAL INFORMATION (

INTERIM FINANCIAL INFORMATION (Details)	Feb. 01, 2020GBP (£)
XPEL, Ltd.
Noncontrolling Interest [Line Items]
Purchase price	£ 600,000
XPEL, Ltd.
Noncontrolling Interest [Line Items]
Percentage of business acquired	15.00%

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Ownership Percentages and Functional Currencies (Details)	Jun. 30, 2020
XPEL, Ltd.
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
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%
XPEL Slovakia
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	6 Months Ended
	Jun. 30, 2020segment
Accounting Policies [Abstract]
Number of operating segments	1

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Allowance for doubtful accounts included in accounts receivable	$ 182,488	$ 198,786
Largest Customer | Accounts Receivable | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	18.80%

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Warranty liability	$ 65,591	$ 65,591
Beginning balance warranty liability	65,591	70,250
Warranties assumed in period	128,599	384,214
Payments	(136,756)	(388,873)
Ending balance warranty liability	$ 57,434	$ 65,591

REVENUE - Schedule of Transacti

REVENUE - Schedule of Transactions Within Contract Liabilities (Details) - USD ($)	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020
Movement in Deferred Revenue [Roll Forward]
Beginning contract liabilities	$ 1,076,063	$ 559,232
Revenue recognized related to payments included in the December 31, 2019 balance	(1,022,851)	(526,202)
Payments received for which performance obligations have not been satisfied	163,903	1,043,767
Effect of foreign currency translation	1,215	(734)
Ending contract liabilities	$ 218,330	$ 1,076,063

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 35,805,858	$ 30,094,154	$ 64,194,321	$ 54,819,600
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	30,961,996	25,425,489	54,711,913	46,480,212
Paint protection film
Disaggregation of Revenue [Line Items]
Total revenue	24,248,115	21,166,420	44,019,235	39,622,775
Window film
Disaggregation of Revenue [Line Items]
Total revenue	5,954,800	3,171,155	9,044,906	5,004,071
Other
Disaggregation of Revenue [Line Items]
Total revenue	759,081	1,087,914	1,647,772	1,853,366
Service revenue
Disaggregation of Revenue [Line Items]
Total revenue	4,843,862	4,668,665	9,482,408	8,339,388
Software
Disaggregation of Revenue [Line Items]
Total revenue	809,897	775,745	1,661,469	1,519,513
Cutbank credits
Disaggregation of Revenue [Line Items]
Total revenue	1,611,858	2,064,962	3,225,122	3,530,096
Installation labor
Disaggregation of Revenue [Line Items]
Total revenue	2,391,570	1,647,954	4,413,020	2,946,343
Training
Disaggregation of Revenue [Line Items]
Total revenue	$ 30,537	$ 180,004	$ 182,797	$ 343,436

REVENUE - Revenue Estimate By G

REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 35,805,858	$ 30,094,154	$ 64,194,321	$ 54,819,600
United States
Disaggregation of Revenue [Line Items]
Total revenue	16,118,729	16,497,347	31,671,767	29,007,097
China
Disaggregation of Revenue [Line Items]
Total revenue	9,987,370	3,127,723	12,011,879	7,646,920
Canada
Disaggregation of Revenue [Line Items]
Total revenue	3,958,167	5,217,535	8,133,364	8,315,899
Continental Europe
Disaggregation of Revenue [Line Items]
Total revenue	2,897,562	1,974,328	5,691,304	3,396,060
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	630,720	926,925	1,747,148	1,810,283
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	1,141,191	1,059,560	1,911,235	1,931,518
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	484,358	512,680	962,053	998,809
Middle East/Africa
Disaggregation of Revenue [Line Items]
Total revenue	561,510	720,347	1,850,566	1,603,479
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 26,251	$ 57,709	$ 215,005	$ 109,535

REVENUE - Narrative (Details)

REVENUE - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Largest Customer | Customer Concentration Risk | Revenue from Contract with Customer Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk percentage	27.90%	10.40%	18.70%	13.90%

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 8,295,141	$ 7,277,207
Accumulated depreciation	3,745,608	3,262,554
Property and equipment, net	4,549,533	4,014,653
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,241,569	1,168,894
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,293,000	1,151,295
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment	733,560	683,213
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,816,629	1,648,656
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,857,920	1,479,594
Plotters
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,040,553	839,455
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 311,910	$ 306,100

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 293,860	$ 220,270	$ 564,177	$ 421,088

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 7,756,251	$ 6,576,816
Accumulated amortization	3,169,908	2,756,356
Intangible assets, net	4,586,343	3,820,460
Trademarks
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	323,076	309,395
Software
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,473,813	2,288,062
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	481,744	492,408
Contractual and customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	3,881,040	3,010,480
Non-compete
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	394,844	268,459
Other
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 201,734	$ 208,012

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 232,225	$ 186,824	$ 466,121	$ 371,372

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Goodwill [Roll Forward]
Goodwill beginning balance	$ 2,406,512	$ 2,322,788
Impairment		(35,884)
Additions	1,184,774
Foreign Exchange	(93,403)	62,597
Goodwill ending balance	$ 3,497,883	$ 2,349,501

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Film and film based products	$ 12,930,514	$ 13,538,610
Other products	1,430,560	1,226,708
Packaging and supplies	438,905	496,661
Inventory reserve	(93,397)	(120,826)
Inventory, net	$ 14,706,582	$ 15,141,153

DEBT - Narrative (Details)

DEBT - Narrative (Details)	May 11, 2020USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2020CAD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2020CAD ($)	Dec. 31, 2019USD ($)
The Bank of San Antonio | Term loan
Line of Credit Facility [Line Items]
Long-term debt	$ 6,000,000	$ 6,000,000		$ 6,000,000
Debt term	36 months
Debt interest	3.50%
Line of Credit | The Bank of San Antonio | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 8,500,000		$ 8,500,000
Line of credit facility interest rate		3.50%		3.50%	3.50%	5.50%
Repayments of debt		$ 6,000,000
Interest		41,806
Amount outstanding		$ 0		$ 0		$ 0
Covenant, debt service coverage ratio required, minimum		1.25		1.25	1.25
Covenant, funded debt To EBITDA ratio, maximum		2.5		2.5	2.5
Line of Credit | HSBC Bank Canada | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 4,500,000
Line of credit facility interest rate		2.70%		2.70%	2.70%	4.20%
Repayments of debt			$ 4,000,000
Interest			$ 13,051
Amount outstanding		$ 0		$ 0		$ 0
Prime Rate | Line of Credit | The Bank of San Antonio | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on prime rate				1.00%
Debt instrument floor rate				3.50%
Prime Rate | Line of Credit | HSBC Bank Canada | Revolving Credit Facility
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, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 7,362,538	$ 769,507
Current portion	2,543,301	462,226
Total long-term debt	$ 4,819,237	307,281
Acquisition Notes Payable Due 2022
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	3.23%
Total debt	$ 1,362,538	769,507
Term loan
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	3.50%
Total debt	$ 6,000,000	$ 0

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($)	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 11,339,567		$ 7,440,965
Payroll liabilities	1,230,156		1,367,340
Contract liabilities	218,330	$ 1,076,063	559,232
Other liabilities	999,006		829,816
Accounts payable and accrued liabilities	$ 13,787,059		$ 10,197,353

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 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

ACQUISITION OF A BUSINESS - Com

ACQUISITION OF A BUSINESS - Completed Acquisitions (Details)	Feb. 01, 2020USD ($)
Protex Canada, Inc.
Business Acquisition [Line Items]
Purchase price	$ 2,383,968

ACQUISITION OF A BUSINESS - Sch

ACQUISITION OF A BUSINESS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)	Feb. 01, 2020	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 3,497,883	$ 2,406,512	$ 2,349,501	$ 2,322,788
Protex Canada, Inc.
Business Acquisition [Line Items]
Cash		1,490,651
Promissory notes		893,317
Purchase price	$ 2,383,968
Cash		242,808
Accounts receivable		206,808
Inventory		27,732
Prepaid assets		3,764
Other long-term assets		6,197
Property, plant, and equipment		161,702
Software		1,027
Customer relationships		987,556
Non-compete		136,395
Goodwill		1,184,774
Accounts payable and accrued liabilities		(142,175)
Assumed debt		(108,766)
Deferred tax liability		(281,565)
Taxes payable		(42,289)
Total net assets acquired		$ 2,383,968

ACQUISITION OF A BUSINESS - Nar

ACQUISITION OF A BUSINESS - Narrative (Details) - Protex Canada, Inc.	6 Months Ended
	Jun. 30, 2020USD ($)
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	8 years 6 months 3 days
Acquisitions revenue	$ 1,167,815
Acquisitions operating income	$ 189,322

ACQUISITION OF A BUSINESS - Pro

ACQUISITION OF A BUSINESS - Pro Forma Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Business Combinations [Abstract]
Revenue	$ 64,321,080	$ 56,140,866
Net income	$ 5,434,874	$ 4,856,487