Acme United (ACU) 10-Q 8 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 05, 2022
Cover [Abstract]
Entity Registrant Name	ACME UNITED CORP
Entity Central Index Key	0000002098
Document Type	10-Q
Document Period End Date	Jun. 30, 2022
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,525,002
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Trading Symbol	ACU
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity File Number	01-07698
Entity Tax Identification Number	06-0236700
Entity Address, Address Line One	1 Waterview Drive
Entity Address, City or Town	Shelton
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06484
City Area Code	203
Local Phone Number	254-6060
Entity Interactive Data Current	Yes
Title of 12(b) Security	$2.50 par value Common Stock
Security Exchange Name	NYSEAMER
Entity Incorporation, State or Country Code	CT
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,760,000	$ 4,843,000
Accounts receivable, less allowance of $922 in 2022 and $1,007 in 2021	46,991,000	34,221,000
Inventories	65,039,000	53,552,000
Prepaid expenses and other current assets	3,647,000	2,635,000
Total current assets	117,437,000	95,251,000
Property, plant and equipment:
Land	1,977,000	1,761,000
Buildings	16,088,000	13,456,000
Machinery and equipment	30,493,000	29,760,000
Total property, plant and equipment	48,558,000	44,977,000
Less: accumulated depreciation	22,281,000	20,950,000
Net property, plant and equipment	26,277,000	24,027,000
Operating lease right-of-use asset, net	2,787,000	3,130,000
Goodwill	8,188,829	4,799,829
Intangible assets, less accumulated amortization	21,624,624	17,230,529
Other assets - restricted cash	1,500,000
Total assets	177,815,000	144,439,000
Current liabilities:
Accounts payable	21,421,000	8,977,000
Operating lease liability - current portion	1,080,000	1,000,000
Current portion of mortgage payable	389,000	389,000
Other accrued liabilities	10,129,000	9,909,000
Total current liabilities	33,019,000	20,275,000
Long-term debt	50,263,000	33,037,000
Mortgage payable, net of current portion	10,897,000	11,081,000
Operating lease liability - non-current portion	1,944,000	2,365,000
Other non-current liabilities	1,869,000	599,000
Total liabilities	97,992,000	67,357,000
Commitments and Contingencies (see note 2)
STOCKHOLDERS' EQUITY
Common stock, par value $2.50: authorized 8,000,000 shares; 5,066,245 shares issued and 3,521,373 shares outstanding in 2022 and 5,065,518 shares issued and 3,520,646 shares outstanding in 2022 and 2021	12,657,000	12,655,000
Additional paid-in capital	12,598,000	11,930,000
Retained earnings	72,491,000	69,873,000
Treasury stock, at cost - 1,544,872 shares in 2022 and 2021	(15,996,000)	(15,996,000)
Accumulated other comprehensive loss:
Translation adjustment	(1,927,000)	(1,380,000)
Total stockholders’ equity	79,823,000	77,082,000
Total liabilities and stockholders’ equity	$ 177,815,000	$ 144,439,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
STOCKHOLDERS' EQUITY
Accounts receivable, allowance	$ 922	$ 1,007
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	5,066,245	5,065,518
Common stock, shares outstanding	3,521,373	3,520,646
Treasury stock, shares	1,544,872	1,544,872

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements Of Operations
Net sales	$ 56,773	$ 44,847	$ 100,106	$ 88,372
Cost of goods sold	38,225	28,694	66,590	56,632
Gross profit	18,548	16,153	33,516	31,740
Selling, general and administrative expenses	14,572	12,364	28,169	24,983
Operating income	3,976	3,789	5,347	6,757
Non-operating items:
Interest expense	428	226	737	452
Interest income	(5)	(3)	(8)	(9)
Interest expense, net	423	223	729	443
PPP loan forgiveness		(3,508)		(3,508)
Other expense (income), net	148	68	147	145
Total other expense (income), net	148	(3,440)	147	(3,363)
Income before income tax expense	3,405	7,006	4,471	9,677
Income tax expense (benefit)	667	(224)	903	400
Net income	$ 2,738	$ 7,230	$ 3,568	$ 9,277
Basic earnings per share	$ 0.78	$ 2.16	$ 1.01	$ 2.72
Diluted earnings per share	$ 0.71	$ 1.82	$ 0.93	$ 2.34
Weighted average number of common shares outstanding-denominator used for basic per share computations	3,521,000	3,347,000	3,521,000	3,410,000
Weighted average number of dilutive stock options outstanding	320,000	617,000	323,000	551,000
Denominator used for diluted per share computations	3,841,000	3,964,000	3,844,000	3,961,000
Dividends declared per share	$ 0.14	$ 0.13	$ 0.27	$ 0.26

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements Of Comprehensive Loss Income [Abstract]
Net income	$ 2,738	$ 7,230	$ 3,568	$ 9,277
Other comprehensive (loss) income :
Foreign currency translation adjustment	(574)	168	(547)	(20)
Comprehensive income	$ 2,164	$ 7,398	$ 3,021	$ 9,257

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Gain	Retained Earnings
Beginning Balance at Dec. 31, 2020	$ 62,717	$ 12,101	$ (14,522)	$ 7,931	$ (826)	$ 58,033
Beginning Balance, shares at Dec. 31, 2020		3,338,913
Net income	9,277					9,277
Other comprehensive income (loss)	(20)				(20)
Stock compensation expense	886			886
Distributions to shareholders	(895)					(895)
Issuance of common stock	2,698	$ 475		2,223
Issuance of common stock (shares)		190,295
Cash settlement of stock options	(211)			(211)
Ending Balance at Jun. 30, 2021	74,452	$ 12,576	(14,522)	10,829	(846)	66,415
Ending Balance, shares at Jun. 30, 2021		3,529,208
Beginning Balance at Mar. 31, 2021	64,627	$ 12,145	(14,522)	8,375	(1,014)	59,643
Beginning Balance, shares at Mar. 31, 2021		3,356,614
Net income	7,230					7,230
Other comprehensive income (loss)	168				168
Stock compensation expense	580			580
Distributions to shareholders	(458)					(458)
Issuance of common stock	2,516	$ 431		2,085
Issuance of common stock (shares)		172,594
Cash settlement of stock options	(211)			(211)
Ending Balance at Jun. 30, 2021	74,452	$ 12,576	(14,522)	10,829	(846)	66,415
Ending Balance, shares at Jun. 30, 2021		3,529,208
Beginning Balance at Dec. 31, 2021	$ 77,082	$ 12,655	(15,996)	11,930	(1,380)	69,873
Beginning Balance, shares at Dec. 31, 2021	3,520,646	3,520,646
Net income	$ 3,568					3,568
Other comprehensive income (loss)	(547)				(547)
Stock compensation expense	768			768
Distributions to shareholders	(950)					(950)
Issuance of common stock	10	$ 2		8
Issuance of common stock (shares)		727
Cash settlement of stock options	(108)			(108)
Ending Balance at Jun. 30, 2022	$ 79,823	$ 12,657	(15,996)	12,598	(1,927)	72,491
Ending Balance, shares at Jun. 30, 2022	3,521,373	3,521,373
Beginning Balance at Mar. 31, 2022	$ 77,773	$ 12,655	(15,996)	12,222	(1,353)	70,245
Beginning Balance, shares at Mar. 31, 2022		3,520,646
Net income	2,738					2,738
Other comprehensive income (loss)	(574)				(574)
Stock compensation expense	368			368
Distributions to shareholders	(492)					(492)
Issuance of common stock	10	$ 2		8
Issuance of common stock (shares)		727
Ending Balance at Jun. 30, 2022	$ 79,823	$ 12,657	$ (15,996)	$ 12,598	$ (1,927)	$ 72,491
Ending Balance, shares at Jun. 30, 2022	3,521,373	3,521,373

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 3,568,000	$ 9,277,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	1,339,000	1,176,000
Amortization of intangible assets	744,000	742,000
Non-cash lease expense		43,000
Stock compensation expense	768,000	886,000
Provision for bad debt	50,000	54,000
PPP loan forgiveness		(3,508,000)
Amortization of deferred financing costs	8,000
Changes in operating assets and liabilities:
Accounts receivable	(12,468,000)	(9,072,000)
Inventories	(11,021,000)	2,007,000
Prepaid expenses and other assets	(991,000)	(593,000)
Accounts payable	12,651,000	346,000
Other accrued liabilities	182,000	(1,215,000)
Total adjustments	(8,739,000)	(9,134,000)
Net cash (used in) provided by operating activities	(5,171,000)	143,000
Cash flows from investing activities:
Purchase of property, plant and equipment	(2,761,000)	(3,351,000)
Acquisition of Safety Made	(9,609,000)
Net cash used in investing activities	(12,370,000)	(3,351,000)
Cash flows from financing activities:
Net borrowings of long-term debt	17,225,000	782,000
Cash settlement of stock options	(108,000)	(211,000)
Repayments on mortgage	(192,000)	(133,000)
Proceeds from issuance of common stock	10,000	2,698,000
Distributions to shareholders	(915,000)	(871,000)
Net cash provided by financing activities	16,020,000	2,265,000
Effect of exchange rate changes on cash and cash equivalents	(62,000)	16,000
Net change in cash and cash equivalents	(1,583,000)	(927,000)
Cash, cash equivalents and restricted cash at beginning of period	4,843,000	4,167,000
Cash, cash equivalents and restricted cash at end of period	3,260,000	3,240,000
Supplemental cash flow information:
Cash paid for income taxes	242,000	952,000
Cash paid for interest	661,000	$ 440,000
Non-cash investing activities
Safety Made acquisition contingent consideration	$ 1,270,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of a normal, recurring nature. However, the financial statements do not include all the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for such disclosures. The condensed consolidated balance sheet as of December 31, 2021 was derived from the audited consolidated balance sheet as of that date. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K. The Company has evaluated events and transactions subsequent to June 30, 2022 and through the date these condensed consolidated financial statements were issued.

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitment and Contingencies	2. Commitment and Contingencies There are no pending material legal proceedings to which the Company is a party, or, to the actual knowledge of the Company, contemplated by any governmental authority.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2022
Revenue From Contract With Customer [Abstract]
Revenue from Contracts with Customers	3 . Nature of Goods and Services The Company recognizes revenue from the sales of a broad line of products that are grouped into two main categories: (a) first aid and medical; and (b) cutting, sharpening and measuring. The cutting, sharpening and measuring category includes scissors, knives, paper trimmers, pencil sharpeners and other sharpening tools. The first aid and medical category includes first aid kits and refills, over-the-counter medications and a variety of medical products. Revenue recognition is evaluated through the following five steps: (i) identification of the contract or contracts with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue is generated by the sale of the Company’s products to its customers. Sales contracts (purchase orders) generally have a single performance obligation that is satisfied at a point in time, with shipment or delivery, depending on the terms of the underlying contract. Revenue is measured based on the consideration specified in the contract. The amount of consideration we receive and revenue we recognize is impacted by incentives ("customer rebates"), including sales rebates, which are generally tied to sales volume levels, in-store promotional allowances, shared media and customer catalogue allowances and other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowance for returns and discounts. We generally recognize customer rebate costs as a deduction to gross sales at the time that the associated revenue is recognized. Significant Payment Terms Payment terms for each customer are dependent on the agreed upon contractual repayment terms. Payment terms typically are between 30 and 90 days and vary depending on the size of the customer and its risk profile to the Company. Some customers receive discounts for early payment. Product Returns The Company accepts product returns in the normal course of business. The Company estimates reserves for returns and the related refunds to customers based on historical experience. Reserves for returned merchandise are included as a component of “Accounts receivable” in the condensed consolidated balance sheets. Practical Expedient Usage and Accounting Policy Elections For the Company’s contracts that have an original duration of one year or less, the Company uses the practical expedient in ASC 606-10-32-18 applicable to such contracts and does not consider the time value of money in relation to significant financing components. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements. Per ASC 606-10-25-18B, the Company has elected to account for shipping and handling activities that occur after the customer has obtained control as a fulfilment activity instead of a performance obligation. Furthermore, shipping and handling activities performed before transfer of control of the product also do not constitute a separate and distinct performance obligation. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements. The Company has elected to exclude from the transaction price those amounts which relate to sales and other taxes that are assessed by governmental authorities and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer. Applying the practical expedient in ASC 340-40-25-4, Other Assets and Deferred Costs, Disaggregation of Revenues The following table represents external net sales disaggregated by product category, by segment (amounts in thousands): For the three months ended June 30, 2022 United States Canada Europe Total Cutting, Sharpening and Measuring $ 21,954 $ 2,192 $ 3,555 $ 27,701 First Aid and Medical 26,951 1,684 $ 437 29,072 Total Net Sales $ 48,905 $ 3,876 $ 3,992 $ 56,773 For the three months ended June 30, 2021 United States Canada Europe Total Cutting, Sharpening and Measuring $ 16,162 $ 2,091 $ 3,677 $ 21,930 First Aid and Medical 20,678 1,899 340 22,917 Total Net Sales $ 36,840 $ 3,990 $ 4,017 $ 44,847 For the six months ended June 30, 2022 U.S. Canada Europe Total Cutting, Sharpening and Measuring $ 37,287 $ 3,785 $ 7,113 $ 48,185 First Aid and Medical 47,359 3,706 856 51,921 Total Net Sales $ 84,646 $ 7,491 $ 7,969 $ 100,106 For the six months ended June 30, 2021 U.S. Canada Europe Total Cutting, Sharpening and Measuring $ 31,726 $ 3,640 $ 7,420 $ 42,786 First Aid and Medical 41,162 3,683 741 45,586 Total Net Sales $ 72,888 $ 7,323 $ 8,161 $ 88,372

Debt and Shareholders' Equity

Debt and Shareholders' Equity	6 Months Ended
	Jun. 30, 2022
Long Term Debt And Stockholders Equity [Abstract]
Debt and Shareholders' Equity	4. Debt and Shareholders’ Equity Long-term debt consists of (i) borrowings under the Company’s revolving loan agreement with HSBC Bank, N.A. and (ii) amounts outstanding under the fixed rate mortgage on the Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA. On May 31, 2022, the Company amended its revolving loan agreement with HSBC Bank, N.A. The amended agreement increases the amount available for borrowing to $65 million from $50 million, at an interest rate of SOFR plus 1.75%; interest is payable monthly. In addition, the expiration date of the credit facility was extended to May 31, 2026. The Company must pay a facility fee, payable quarterly, in an amount equal to one eighth of one percent (.125%) per annum of the average daily unused portion of the revolving credit line. The facility is intended to provide liquidity for growth, share repurchases, dividends, acquisitions, and other business activities. Under the revolving loan agreement, the Company is required to maintain specific amounts of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year. As of June 30, 2022, the Company was in compliance with the covenants then in effect under the loan agreement. As of June 30, 2022 and December 31, 2021 , the Company had outstanding borrowings of $50,263,000 and $33,037,000 , respectively, under the Company’s revolving loan agreement with HSBC . The Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA were financed by a fixed rate mortgage with HSBC Bank, N.A. at a fixed interest rate of 3.8%. The Company entered into the agreement on December 1, 2021. Commencing on January 1, 2022, payments of principal and interest are due monthly, with all amounts outstanding due on maturity on December 1, 2031. As of June 30, 2022 and December 31, 2021, long-term debt related to the mortgage consisted of the following (amounts in ‘000’s): June 30, 2022 December 31, 2021 Mortgage Payable - HSBC Bank N.A. 11,428 11,620 Less debt issuance costs (142 ) (150 ) 11,286 11,470 Less current maturities 389 389 Long-term mortgage payable less current maturities 10,897 11,081 During the three and six months ended June 30, 2022, the Company issued a total of 727 shares of common stock and received aggregate proceeds of $10,000 upon exercise of employee stock options. During the six months ended June 30, 2022, the Company, at its discretion, paid approximately $108,000 to optionees who had elected (subject to the approval of the Company) a net cash settlement of certain of their respective options.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2022
Segment Information [Abstract]
Segment Information	5. Segment Information The Company reports financial information based on the organizational structure used by the Company’s chief operating decision makers for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada; and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, the Company’s chief operating decision makers review the financial results over both a consolidated basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of first aid and medical products, cutting and sharpening devices and measuring instruments for school, office, home, hardware, sporting and industrial use. Domestic sales orders are filled primarily from the Company’s distribution centers in North Carolina, Washington, Massachusetts, Tennessee, Florida and California. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots. Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 12% and 9% of the Company’s total net sales for the three and six months ended June 30, 2022, respectively, compared to 10% and 8% respectively, for the comparable periods in 2021. The chief operating decision maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment revenues are defined as total revenues, including both external customer revenue and inter-segment revenue. Segment operating earnings are defined as segment revenues, less cost of goods sold and operating expenses. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Inter-segment amounts are eliminated to arrive at consolidated financial results. The following table sets forth certain financial data by segment for three and six months ended June 30, 2022 and 2021: Financial data by segment: (in thousands) Three Months Ended June 30, Six Months Ended June 30, Sales to external customers: 2022 2021 2022 2021 United States $ 48,905 $ 36,840 $ 84,646 $ 72,888 Canada 3,876 3,990 7,491 7,322 Europe 3,992 4,017 7,969 8,162 Consolidated $ 56,773 $ 44,847 $ 100,106 $ 88,372 Operating income: United States $ 3,454 $ 2,675 $ 4,287 $ 4,807 Canada 474 662 830 1,034 Europe 48 452 230 916 Consolidated $ 3,976 $ 3,789 $ 5,347 $ 6,757 Interest expense, net 423 223 729 443 Other expense (income) , net 148 (3,440 ) 147 (3,363 ) Consolidated income before income taxes $ 3,405 $ 7,006 $ 4,471 $ 9,677 Assets by segment: (in thousands) June 30, December 31, 2022 2021 United States $ 157,623 $ 125,521 Canada 10,494 9,100 Europe 9,698 9,818 Consolidated $ 177,815 $ 144,439

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Based Compensation	6. Stock Based Compensation The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period, which is generally the vesting period of the equity instrument. Share-based compensation expense was approximately $368,000 and $768,000 for the three and six months ended June 30, 2022, respectively, compared to approximately $580,000 and $886,000 for the three and six months ended June 30, 2021, respectively. As of June 30, 2022, there was a total of $3,237,101 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share-based payments granted to the Company’s employees. As of that date, the remaining unamortized expense was expected to be recognized over a weighted average period of approximately three years.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Measurements [Abstract]
Fair Value Measurements	7. Fair Value Measurements The carrying value of the Company’s bank debt is a reasonable estimate of fair value because of the nature of its payment terms and maturity. The Company’s contingent liability related to the acquisition of Safety Made is recorded at it’s acquisition date fair value of approximately $1.3 million and is recorded in other non-current liabilities on the condensed consolidated balance sheet. Changes in the fair value of the liability are recorded in earnings. There is no change during the three month period ended June 30, 2022.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	8. Leases The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2026. Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. As most of our leases do not provide an implicit rate, the present value of lease payments is determined primarily using our incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term on an amount equal to the lease payments in a similar economic environment. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term. For the three and six months ended June 30, 2022 and 2021, lease expense in the amount of $0.1 million was included in cost of goods sold and $0.3 million and $0.2 Information related to leases (in thousands): Three Months Ended Three Months Ended Operating cash flow information: June 30, 2022 June 30, 2021 Operating lease cost $ 308 $ 336 Operating lease - cash flow $ 322 $ 294 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ - $ - Six Months Ended Six Months Ended Operating cash flow information: June 30, 2022 June 30, 2021 Operating lease cost $ 618 $ 672 Operating lease - cash flow $ 645 $ 588 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ 211 $ 1,575 June 30, 2022 June 30, 2021 Weighted-average remaining lease term 3.0 years 4.0 years Weighted-average discount rate 5 % 5 % Future minimum lease payments under non-cancellable leases as of June 30, 2022: 2022 (remaining) $ 629 2023 1,076 2024 738 2025 649 2026 155 Thereafter - Total future minimum lease payments $ 3,247 Less: imputed interest (223 ) Present value of lease liabilities - current 1,080 Present value of lease liabilities - non-current $ 1,944

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2022
Business Combinations [Abstract]
Business Combinations	9. Business Combinations On June 1, 2022, the Company purchased the assets of Live Safely Products, LLC (d/b/a “Safety Made”) for approximately $11 million, including $1.5 million which is contingent upon meeting certain financial targets. Based in Keene, NH, Safety Made is a leading manufacturer of first aid kits for the promotional products industry. The purchase price was allocated to assets acquired as follows (in thousands): Assets: Accounts receivable $ 512 Inventory 944 Prepaid Expense 14 Property, plant and equipment 877 Intangible assets 5,143 Goodwill 3,389 Total assets $ 10,879 The acquisition was accounted for as a business combination, pursuant to ASC 805 – Business Combinations The $1.5 million contingent payment that is being held in escrow is considered restricted cash and is reported in other long-term assets on the consolidated balance sheet. The Company has not disclosed the amount of revenue and earnings from the sales of Safety Made products since the acquisition on June 1, 2022 because these amounts are not significant to the Company’s financial statements.

Other Accrued Liabilities

Other Accrued Liabilities	6 Months Ended
	Jun. 30, 2022
Payables And Accruals [Abstract]
Other Accrued Liabilities	10. Other Accrued Liabilities Other current accrued liabilities consisted of (in thousands): June 30, December 31, 2022 2021 Customer Rebates $ 5,892 $ 5,414 Accrued Compensation 603 1,586 Dividend Payable 493 458 Income Tax Payable 1,203 564 Other 1,938 1,887 Total: $ 10,129 $ 9,909

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	6 Months Ended
	Jun. 30, 2022
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted Cash	Note 11. Cash, Cash Equivalents and Restricted Cash June 30, 2022 December 31, 2021 Cash and cash equivalents $ 1,760 $ 4,843 Restricted Cash 1,500 Total cash, cash equivalents and restricted cash $ 3,260 $ 4,843 Restricted cash, which is reported within other long term assets in the condensed consolidated balance sheets consists of the contingent payment held in escrow related to the acquisition of Safety Made.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	12. Intangible Assets and Goodwill June 30 December 31 2022 2021 Customer List $ 18,370,118 $ 16,137,118 Tradenames 9,984,698 7,994,698 Patents 2,271,980 2,271,980 Non-Compete 1,170,111 250,111 License Agreement 379,921 379,921 Subtotal 32,176,828 27,033,828 Less: Accumulated Amortization 10,552,204 9,803,299 Intangible Assets $ 21,624,624 $ 17,230,529 Goodwill $ 8,188,829 $ 4,799,829 Total: $ 29,813,452 $ 22,030,358 Intangible assets include Customer List, Tradenames, Non-Compete Agreements and Goodwill. The useful lives of the identified intangible assets range from 5 years to 15 years.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue From Contract With Customer [Abstract]
Disaggregation of Revenues	The following table represents external net sales disaggregated by product category, by segment (amounts in thousands): For the three months ended June 30, 2022 United States Canada Europe Total Cutting, Sharpening and Measuring $ 21,954 $ 2,192 $ 3,555 $ 27,701 First Aid and Medical 26,951 1,684 $ 437 29,072 Total Net Sales $ 48,905 $ 3,876 $ 3,992 $ 56,773 For the three months ended June 30, 2021 United States Canada Europe Total Cutting, Sharpening and Measuring $ 16,162 $ 2,091 $ 3,677 $ 21,930 First Aid and Medical 20,678 1,899 340 22,917 Total Net Sales $ 36,840 $ 3,990 $ 4,017 $ 44,847 For the six months ended June 30, 2022 U.S. Canada Europe Total Cutting, Sharpening and Measuring $ 37,287 $ 3,785 $ 7,113 $ 48,185 First Aid and Medical 47,359 3,706 856 51,921 Total Net Sales $ 84,646 $ 7,491 $ 7,969 $ 100,106 For the six months ended June 30, 2021 U.S. Canada Europe Total Cutting, Sharpening and Measuring $ 31,726 $ 3,640 $ 7,420 $ 42,786 First Aid and Medical 41,162 3,683 741 45,586 Total Net Sales $ 72,888 $ 7,323 $ 8,161 $ 88,372

Debt and Shareholders' Equity (

Debt and Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Long Term Debt And Stockholders Equity [Abstract]
Schedule of Long-Term Debt	As of June 30, 2022 and December 31, 2021, long-term debt related to the mortgage consisted of the following (amounts in ‘000’s): June 30, 2022 December 31, 2021 Mortgage Payable - HSBC Bank N.A. 11,428 11,620 Less debt issuance costs (142 ) (150 ) 11,286 11,470 Less current maturities 389 389 Long-term mortgage payable less current maturities 10,897 11,081

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Information Tables [Abstract]
Financial Data By Segment Table	The following table sets forth certain financial data by segment for three and six months ended June 30, 2022 and 2021: Financial data by segment: (in thousands) Three Months Ended June 30, Six Months Ended June 30, Sales to external customers: 2022 2021 2022 2021 United States $ 48,905 $ 36,840 $ 84,646 $ 72,888 Canada 3,876 3,990 7,491 7,322 Europe 3,992 4,017 7,969 8,162 Consolidated $ 56,773 $ 44,847 $ 100,106 $ 88,372 Operating income: United States $ 3,454 $ 2,675 $ 4,287 $ 4,807 Canada 474 662 830 1,034 Europe 48 452 230 916 Consolidated $ 3,976 $ 3,789 $ 5,347 $ 6,757 Interest expense, net 423 223 729 443 Other expense (income) , net 148 (3,440 ) 147 (3,363 ) Consolidated income before income taxes $ 3,405 $ 7,006 $ 4,471 $ 9,677 Assets by segment: (in thousands) June 30, December 31, 2022 2021 United States $ 157,623 $ 125,521 Canada 10,494 9,100 Europe 9,698 9,818 Consolidated $ 177,815 $ 144,439

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases Tables [Abstract]
Information Related to Leases	Information related to leases (in thousands): Three Months Ended Three Months Ended Operating cash flow information: June 30, 2022 June 30, 2021 Operating lease cost $ 308 $ 336 Operating lease - cash flow $ 322 $ 294 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ - $ - Six Months Ended Six Months Ended Operating cash flow information: June 30, 2022 June 30, 2021 Operating lease cost $ 618 $ 672 Operating lease - cash flow $ 645 $ 588 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ 211 $ 1,575 June 30, 2022 June 30, 2021 Weighted-average remaining lease term 3.0 years 4.0 years Weighted-average discount rate 5 % 5 %
Future Minimum Lease Payments	Future minimum lease payments under non-cancellable leases as of June 30, 2022: 2022 (remaining) $ 629 2023 1,076 2024 738 2025 649 2026 155 Thereafter - Total future minimum lease payments $ 3,247 Less: imputed interest (223 ) Present value of lease liabilities - current 1,080 Present value of lease liabilities - non-current $ 1,944

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combinations [Abstract]
Schedule of Purchase Price Allocation to Assets Acquired	The purchase price was allocated to assets acquired as follows (in thousands): Assets: Accounts receivable $ 512 Inventory 944 Prepaid Expense 14 Property, plant and equipment 877 Intangible assets 5,143 Goodwill 3,389 Total assets $ 10,879

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Payables And Accruals [Abstract]
Accrued Liabilities	Other current accrued liabilities consisted of (in thousands): June 30, December 31, 2022 2021 Customer Rebates $ 5,892 $ 5,414 Accrued Compensation 603 1,586 Dividend Payable 493 458 Income Tax Payable 1,203 564 Other 1,938 1,887 Total: $ 10,129 $ 9,909

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash (Tables)	6 Months Ended
	Jun. 30, 2022
Cash And Cash Equivalents [Abstract]
Summary of Cash, Cash Equivalents and Restricted Cash	June 30, 2022 December 31, 2021 Cash and cash equivalents $ 1,760 $ 4,843 Restricted Cash 1,500 Total cash, cash equivalents and restricted cash $ 3,260 $ 4,843

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	June 30 December 31 2022 2021 Customer List $ 18,370,118 $ 16,137,118 Tradenames 9,984,698 7,994,698 Patents 2,271,980 2,271,980 Non-Compete 1,170,111 250,111 License Agreement 379,921 379,921 Subtotal 32,176,828 27,033,828 Less: Accumulated Amortization 10,552,204 9,803,299 Intangible Assets $ 21,624,624 $ 17,230,529 Goodwill $ 8,188,829 $ 4,799,829 Total: $ 29,813,452 $ 22,030,358

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net sales	$ 56,773	$ 44,847	$ 100,106	$ 88,372
Cutting, Sharpening and Measuring
Net sales	27,701	21,930	48,185	42,786
First Aid and Medical
Net sales	29,072	22,917	51,921	45,586
United States
Net sales	48,905	36,840	84,646	72,888
United States | Cutting, Sharpening and Measuring
Net sales	21,954	16,162	37,287	31,726
United States | First Aid and Medical
Net sales	26,951	20,678	47,359	41,162
Canada
Net sales	3,876	3,990	7,491	7,323
Canada | Cutting, Sharpening and Measuring
Net sales	2,192	2,091	3,785	3,640
Canada | First Aid and Medical
Net sales	1,684	1,899	3,706	3,683
Europe
Net sales	3,992	4,017	7,969	8,161
Europe | Cutting, Sharpening and Measuring
Net sales	3,555	3,677	7,113	7,420
Europe | First Aid and Medical
Net sales	$ 437	$ 340	$ 856	$ 741

Debt and Shareholders' Equity_2

Debt and Shareholders' Equity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	May 30, 2022	Dec. 31, 2021
Long Term Debt And Stockholders Equity [Line Items]
Aggregate proceeds from exercise of employee stock options		$ 10,000		$ 10,000
Cash settlement of stock options				$ 108,000	$ 211,000
Common Stock
Long Term Debt And Stockholders Equity [Line Items]
Issuance of common stock (shares)		727	172,594	727	190,295
HSBC Bank
Long Term Debt And Stockholders Equity [Line Items]
Credit facility borrowing capacity	$ 65,000,000					$ 50,000,000
Credit facility interest rate	SOFR plus 1.75%
Credit facility expiration date	May 31, 2026
Facility fee per annum	0.125%
Outstanding borrowings under revolving loan agreement		$ 50,263,000		$ 50,263,000			$ 33,037,000
HSBC Bank | SOFR
Long Term Debt And Stockholders Equity [Line Items]
Interest rate	1.75%
First Aid Only Distribution Center
Long Term Debt And Stockholders Equity [Line Items]
Covenant terms and compliance				Under the revolving loan agreement, the Company is required to maintain specific amounts of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year. As of June 30, 2022, the Company was in compliance with the covenants then in effect under the loan agreement
Fixed interest rate		3.80%		3.80%
Mortgage maturity date				December 1, 2031

Debt and Shareholders' Equity -

Debt and Shareholders' Equity - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term debt	$ 50,263	$ 33,037
Mortgage Payable - HSBC Bank N.A.
Debt Instrument [Line Items]
Mortgage Payable - HSBC Bank N.A.	11,428	11,620
Less debt issuance costs	(142)	(150)
Long-term mortgage payable	11,286	11,470
Less current maturities	389	389
Long-term debt	$ 10,897	$ 11,081

Segment Information (Details Na

Segment Information (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Information Details Narrative [Abstract]
Direct import sales to total net sales ratio	12%	10%	9%	8%

Segment Information - Financial

Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Sales to external customers	$ 56,773	$ 44,847	$ 100,106	$ 88,372
Operating income	3,976	3,789	5,347	6,757
Interest expense, net	423	223	729	443
Other expense (income) , net	148	(3,440)	147	(3,363)
Consolidated income before income taxes	3,405	7,006	4,471	9,677
Assets	177,815		177,815		$ 144,439
United States Segment
Sales to external customers	48,905	36,840	84,646	72,888
Operating income	3,454	2,675	4,287	4,807
Assets	157,623		157,623		125,521
Canada Segment
Sales to external customers	3,876	3,990	7,491	7,322
Operating income	474	662	830	1,034
Assets	10,494		10,494		9,100
Europe Segment
Sales to external customers	3,992	4,017	7,969	8,162
Operating income	48	$ 452	230	$ 916
Assets	$ 9,698		$ 9,698		$ 9,818

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation expense	$ 368,000	$ 580,000	$ 768,000	$ 886,000
Unrecognized compensation cost	$ 3,237,101		$ 3,237,101
Unrecognized compensation cost recognition period			3 years

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2022	Jun. 01, 2022
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Changes in fair value liability	$ 0
Other Noncurrent Liabilities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Business acquisition, contingent liability		$ 1,300,000

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cost of Goods Sold
Lessee Lease Description [Line Items]
Operating lease expense	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Operating lease expense	$ 0.3	$ 0.2	$ 0.3	$ 0.2

Leases - Information Related to

Leases - Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases Details [Abstract]
Operating lease cost	$ 308	$ 336	$ 618	$ 672
Operating lease - cash flow	$ 322	$ 294	645	588
ROU assets obtained in exchange for lease liabilities			$ 211	$ 1,575
Weighted-average remaining lease term	3 years	4 years	3 years	4 years
Weighted-average discount rate	5%	5%	5%	5%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Future Minimum Lease Payments:
2022 (remaining)	$ 629
2023	1,076
2024	738
2025	649
2026	155
Total future minimum lease payments	3,247
Less: imputed interest	(223)
Present value of lease liabilities - current	1,080	$ 1,000
Present value of lease liabilities - non-current	$ 1,944	$ 2,365

Business Combinations (Details

Business Combinations (Details Narrative) - USD ($) $ in Millions		6 Months Ended
	Jun. 01, 2022	Jun. 30, 2022
Minimum
Business Acquisition [Line Items]
Identified intangible assets, useful lives		5 years
Maximum
Business Acquisition [Line Items]
Identified intangible assets, useful lives		15 years
Live Safely Products, LLC
Business Acquisition [Line Items]
Purchase price	$ 11
Business combination, contingent	1.5
Live Safely Products, LLC | Other Long-term Assets
Business Acquisition [Line Items]
Business combination, contingent	$ 1.5
Live Safely Products, LLC | Minimum
Business Acquisition [Line Items]
Identified intangible assets, useful lives	5 years
Live Safely Products, LLC | Maximum
Business Acquisition [Line Items]
Identified intangible assets, useful lives	15 years

Business Combinations - Schedul

Business Combinations - Schedule of Purchase Price Allocation to Assets Acquired (Details) - Live Safely Products, LLC $ in Thousands	Jun. 01, 2022 USD ($)
Assets:
Accounts receivable	$ 512
Inventory	944
Prepaid Expense	14
Property, plant and equipment	877
Intangible assets	5,143
Goodwill	3,389
Total assets	$ 10,879

Other Accrued Liabilities (Deta

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables And Accruals [Abstract]
Customer Rebates	$ 5,892	$ 5,414
Accrued Compensation	603	1,586
Dividend Payable	493	458
Income Tax Payable	1,203	564
Other	1,938	1,887
Total:	$ 10,129	$ 9,909

Cash, Cash Equivalents and Re_3

Cash, Cash Equivalents and Restricted Cash - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 1,760	$ 4,843
Restricted Cash	1,500
Total cash, cash equivalents and restricted cash	$ 3,260	$ 4,843	$ 3,240	$ 4,167

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Customer List	$ 18,370,118	$ 16,137,118
Tradenames	9,984,698	7,994,698
Patents	2,271,980	2,271,980
Non-Compete	1,170,111	250,111
License Agreement	379,921	379,921
Subtotal	32,176,828	27,033,828
Less: Accumulated Amortization	10,552,204	9,803,299
Intangible Assets	21,624,624	17,230,529
Goodwill	8,188,829	4,799,829
Total:	$ 29,813,452	$ 22,030,358

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details Narrative)	6 Months Ended
	Jun. 30, 2022
Minimum
Finite Lived Intangible Assets [Line Items]
Identified intangible assets, useful lives	5 years
Maximum
Finite Lived Intangible Assets [Line Items]
Identified intangible assets, useful lives	15 years