Rocky Brands (RCKY) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Rocky Brands, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		7,406,801
Amendment Flag	false
Entity Central Index Key	895,456
Entity Filer Category	Accelerated Filer
Trading Symbol	rcky
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 10,115,863	$ 3,680,776	$ 2,693,078
Trade receivables, net	41,231,333	45,027,002	39,131,277
Contract receivables	13,518,203
Other receivables	410,570	806,468	768,729
Inventories	65,151,332	65,622,432	68,819,390
Income tax receivable	996,563	1,849,237	510,223
Prepaid expenses	2,442,001	2,199,648	2,619,898
Total current assets	133,865,865	119,185,563	114,542,595
PROPERTY, PLANT & EQUIPMENT – net	23,737,918	23,781,001	25,633,199
IDENTIFIED INTANGIBLES	30,303,843	30,314,749	33,383,261
OTHER ASSETS	190,292	197,977	225,670
TOTAL ASSETS	188,097,918	173,479,290	173,784,725
CURRENT LIABILITIES:
Accounts payable	14,130,491	12,982,535	14,620,330
Contract with Customer, Liability, Current	13,518,203
Accrued expenses:
Salaries and wages	1,788,471	1,754,681	1,741,222
Taxes - other	94,338	599,793	692,267
Accrued freight	712,488	770,219	407,428
Commissions	415,464	455,845	401,663
Accrued duty	2,260,540	2,160,847	1,994,870
Other	1,182,746	1,301,931	1,302,558
Total current liabilities	34,102,741	20,025,851	21,160,338
LONG TERM DEBT		2,199,423	5,240,000
LONG TERM TAXES PAYABLE	2,286,512	2,286,512
DEFERRED INCOME TAXES	7,726,234	7,726,234	11,365,800
DEFERRED LIABILITIES	154,736	148,408	176,219
TOTAL LIABILITIES	44,270,223	32,386,428	37,942,357
SHAREHOLDERS' EQUITY:
25,000,000 shares authorized; issued and outstanding December 31, 2017 - 7,398,654 and December 31, 2016 - 7,421,455	69,272,506	68,973,927	69,362,641
Retained earnings	74,555,189	72,118,935	66,479,727
Total shareholders' equity	143,827,695	141,092,862	135,842,368
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 188,097,918	$ 173,479,290	$ 173,784,725

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Consolidated Balance Sheets [Abstract]
Common Stock, Shares, Issued	7,406,801	7,398,654	7,435,467
Common stock Outstanding	7,406,801	7,398,654	7,435,467
Common stock Authorized	25,000,000	25,000,000	25,000,000
Common stock Par Value	$ 0	$ 0	$ 0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements of Operations [Abstract]
NET SALES	$ 61,386,673	$ 63,072,954
COST OF GOODS SOLD	40,421,491	43,324,874
GROSS MARGIN	20,965,182	19,748,080
OPERATING EXPENSES
OPERATING EXPENSES	16,737,507	17,381,909
INCOME (LOSS) FROM OPERATIONS	4,227,675	2,366,171
OTHER INCOME AND (EXPENSES):
OTHER EXPENSES	(138,564)	(100,230)
INCOME (LOSS) BEFORE INCOME TAXES	4,089,111	2,265,941
INCOME TAX (BENEFIT) EXPENSE	838,000	770,000
Net Income (Loss) Attributable to Parent, Total	$ 3,251,111	$ 1,495,941
INCOME (LOSS) PER SHARE
Basic (in Dollars per share)	$ 0.44	$ 0.20
Diluted (in Dollars per share)	$ 0.44	$ 0.20
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic (in Shares)	7,406,620	7,435,000
Diluted (in Shares)	7,431,071	7,436,788

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (Loss)	$ 3,251,111	$ 1,495,941
Adjustments to reconcile net income (Loss) to net cash provided by operating activities:
Depreciation and amortization	1,379,422	1,857,590
Loss on disposal of fixed assets		21,552
Stock compensation expense	298,579	71,004
Change in assets and liabilities:
Receivables	5,044,241	2,366,282
Inventories	471,100	349,052
Other current assets	(242,353)	(265,791)
Other assets	7,685	6,839
Accounts payable	1,238,002	2,922,946
Accrued and other liabilities	(582,941)	409,138
Net cash provided by operating activities	10,864,846	9,234,553
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(1,415,478)	(866,152)
Proceeds from sales of fixed assets		6,081
Net cash used in investing activities	(1,415,478)	(860,071)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility	156,770	12,563,546
Repayments on revolving credit facility	(2,356,193)	(21,907,554)
Dividends paid on common stock	(814,858)	(817,901)
Net cash used in financing activities	(3,014,281)	(10,161,909)
(DECREASE) INCREASE IN CASH AND CASH	6,435,087	(1,787,427)
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD	3,680,776	4,480,505
END OF PERIOD	$ 10,115,863	$ 2,693,078

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	We are a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky, Georgia Boot, Durango and Lehigh. Our brands have a long history of representing high quality, comfortable, functional and durable footwear and our products are organized around six target markets: outdoor, work, duty, commercial military, western and lifestyle. In addition, as part of our strategy of outfitting consumers from head-to-toe, we market complementary branded apparel and accessories that we believe leverage the strength and positioning of each of our brands. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of the financial results. All such adjustments reflected in the unaudited condensed consolidated financial statements are considered to be of a normal and recurring nature. The results of operations for the three months ended March 31, 2018 and 2017 are not necessarily indicative of the results to be expected for the whole year. The December 31, 2017 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). This Quarterly Report on Form 10-Q should be read in connection with our Annual Report on Form 10-K for the year ended December 31, 2017 , which includes all disclosures required by GAAP.

ACCOUNTING STANDARDS UPDATES

ACCOUNTING STANDARDS UPDATES	3 Months Ended
	Mar. 31, 2018
ACCOUNTING STANDARDS UPDATES [Abstract]
ACCOUNTING STANDARDS UPDATES	2 . ACCOUNTING STANDARDS UPDATES  Recently Issued Accounting Pronouncements  Rocky Brands, Inc. is currently evaluating the impact of certain ASUs on its Unaudited Condensed Consolidated Financial Statements or Notes to the Unaudited Condensed Consolidated Financial Statements:     Standard Description Anticipated Adoption Period Effect on the financial statements or other significant matters  ASU 2016-13, Measurement of Credit Losses on Financial Instruments The pronouncement seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Q1 2020 The Company is evaluating the impacts of the new standard on its existing financial instruments, including trade receivables.  ASU 2016-02, Leases (Topic 842). The pronouncement introduces a lessee model that brings most leases on the balance sheet. The standard requires that lessees recognize the following for all leases (with the exception of short-term leases, as that term is defined in the standard) at the lease commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Q1 2019 The Company has formed an internal project team to begin gathering data relating to leasing activity at the Company. This includes compiling a list of all contracts that could meet the definition of a lease under the new standard and evaluating the accounting for these contracts under the new standard to determine the ultimate impact the new standard will have on the Company's financial statements.  Accounting Standards Adopted in the Current Year    Standard Description Effect on the financial statements or other significant matters  ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The pronouncement provides specific guidance on eight cash flow classification issues to reduce the diversity in practice. The Company adopted this ASU in the first quarter of 2018, which did not have a material effect on the Unaudited Condensed Consolidated Financial Statements.  ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The pronouncement outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this ASU in the first quarter of 2018, which did not have a material effect on the Unaudited Condensed Consolidated Financial Statements. The Company elected to adopt this standard using the modified retrospective method. For additional information please see Note 4. 

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2018
REVENUE [Abstract]
REVENUE	4 . REVENUE  On January 1, 2018, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“New Revenue Standard”) for all contracts not yet completed as of January 1, 2018 using the modified retrospective method. This method requires a cumulative effect adjustment to reflect the impact of initially applying the New Revenue Standard as an adjustment to the opening balance of retained earnings. The New Revenue Standard did not result in a material impact to the opening balance of retained earnings, and therefore no adjustment was made. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the New Revenue Standard to be immaterial to our net income on an ongoing basis.  Nature of Performance Obligations  Our products are distributed through three distinct channels, which represent our business segments: Wholesale, Retail, and Military. In our Wholesale business, we distribute our products through a wide range of distribution channels representing over ten thousand retail store locations in the U.S., Canada, and internationally. Our Wholesale channels vary by product line and include sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, specialty retailers and online retailers. Our Retail business includes direct sales of our products to consumers through our e-commerce websites, our Rocky outlet store, and Lehigh business. We also sell footwear under the Rocky label to the U.S. Military.  Significant Accounting Policies and Judgements  Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; this generally occurs upon shipment of our product to our customer, which is when the transfer of control of our products passes to the customer. The duration of our arrangements with our customers are typically one year or less. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of our products at a point in time and consists of either fixed or variable consideration or a combination of both.  Revenues from sales are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established. Components of variable consideration include prompt payment discounts, volume rebates, and product returns. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified as reductions of accounts receivable (if the amount is payable to the customer) or a current liability (if the amount is payable to a party other than a customer).  The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. Our analyses also contemplated application of the constraint in accordance with the guidance, under which it determined a material reversal of revenue would not occur in a future period for the estimates detailed below as of March 31, 2018. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net revenue and earnings in the period such variances become known.  When a customer has a right to a prompt payment discount, we estimate the likelihood that the customer will earn the discount using historical data and adjust our estimate when the estimate of the likelihood that a customer will earn the discount changes or the consideration becomes fixed, whichever occurs earlier. The estimated amount of variable consideration is recognized as a credit to trade receivables and a reduction in revenue until the uncertainty of the variable consideration is alleviated. Because most of our customers have payment terms less than six months there is not a significant financing component in our contracts with customers.  When a customer is offered a rebate on purchases retroactively this is accounted for as variable consideration because the consideration for the current and past purchases is not fixed until it is known if the discount is earned. We estimate the expected discount the customer will earn at contract inception using historical data and projections and update our estimates when projections materially change or consideration becomes fixed. The estimated rebate is recognized as a credit to trade receivables and offset against revenue until the rebate is earned or the earning period has lapsed.  When a right of return is part of the arrangement with the customer, we estimate the expected returns based on an analysis using historical data. We adjust our estimate either when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed, whichever occurs earlier. Previously, we recorded the return reserve liability as a contra balance within accounts receivable, and we will continue to do so under ASC 606. Previously, the related return reserve asset for the right to recover cost of goods sold was recognized within the inventory balance, and we will continue to do so under ASC 606. Please see Notes 5 and 6 for additional information.  Trade receivables represent our right to unconditional payment that only relies on the passage of time.  Contract receivables represent contractual minimum payments required under non-cancellable contracts with the U.S. Military with a duration of one year or less.  Contract liabilities are performance obligations that we expect to satisfy or relieve within the next twelve months, advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancellable contracts before the transfer of goods or services to the customer has occurred. Our contract liability represents unconditional obligations to provide goods or services under non-cancellable contracts with the U.S. Military.  Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected from customers, are excluded from revenue. Items considered immaterial within the context of the contract are recognized as an expense.  Costs associated with our manufacturer’s warranty continue to be recognized as expense when the products are sold in accordance with guidance surrounding product warranties.  Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in selling, general, and administrative expenses. This treatment is consistent with how we accounted for these costs in prior years.  Costs associated with obtaining a contract are expensed as incurred in accordance with the practical expedient in ASC 340-40 in instances where the amortization period is one year or less. We anticipate the majority of our costs incurred to obtain a contract would be subject to this practical expedient.  Contract Balances  The following table provides information about contract liabilities from contracts with our customers.     March 31, December 31, March 31,  2018 2017 2017  Contract liabilities $ 13,518,203 $ - $ -  Significant changes in the contract liabilities balance during the period are as follows:     Contract liabilities  Balance, December 31, 2017 -  Non-cancelable contracts with customers recognized as a result of ASC 606 adoption $ 9,394,130  Non-cancelable contracts with customers entered into during the period 9,926,280  Revenue recognized related to non-cancelable contracts with customers during the period (5,802,207)  Balance, March 31, 2018 $ 13,518,203  Disaggregation of Revenue  All revenues are recognized at a point in time when control of our products pass to the customer at point of shipment. Because all revenues are recognized at a point in time and are disaggregated by channel, our segment disclosures are consistent with ASC 606 disaggregation requirements. See Note 12 for segment disclosures.

TRADE RECEIVABLES

TRADE RECEIVABLES	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
TRADE RECEIVABLES	5 . TRADE RECEIVABLES Trade receivables are presented net of the related allowance for uncollectible accounts of approximately $215,000 , $177,000 and $1,396,000 at March 31, 2018, December 31, 2017 and March 31, 2017 , respectively. We record the allowance based on historical experience, the age of the receivables, and identification of customer accounts that are likely to prove difficult to collect due to various criteria including pending bankruptcy. However, estimates of the allowance in any future period are inherently uncertain and actual allowances may differ from these estimates. If actual or expected future allowances were significantly greater or less than established reserves, a reduction or increase to bad debt expense would be recorded in the period this determination was made. Our credit policy generally provides that trade receivables will be deemed uncollectible and written-off once we have pursued all reasonable efforts to collect on the account.  In accordance with ASC 606, the return reserve liability netted against trade receivables is $1,079,000 at March 31, 2018 .

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2018
INVENTORIES [Abstract]
INVENTORIES	6 . INVENTORIES  Inventories are comprised of the following:      March 31, December 31, March 31,  2018 2017 2017  Raw materials $ 11,557,579 $ 11,394,657 $ 13,672,167  Work-in-process 1,012,780 709,406 1,011,788  Finished goods 52,580,973 53,518,369 54,135,435  Total $ 65,151,332 $ 65,622,432 $ 68,819,390 In accordance with ASC 606, the return reserve asset netted against inventories is $649,000 at March 31, 2018 .

IDENTIFIED INTANGIBLE ASSETS

IDENTIFIED INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2018
IDENTIFIED INTANGIBLE ASSETS [Abstract]
IDENTIFIED INTANGIBLE ASSETS	7 . IDENTIFIED INTANGIBLE ASSETS  A schedule of identified intangible assets is as follows :     Gross Accumulated Carrying  March 31, 2018 Amount Amortization Amount  Trademarks  Wholesale $ 27,192,281 - $ 27,192,281  Retail 2,900,000 - 2,900,000  Patents 895,477 $ 683,915 211,562  Customer Relationships - - -  Total Intangibles $ 30,987,758 $ 683,915 $ 30,303,843   Gross Accumulated Carrying  December 31, 2017 Amount Amortization Amount  Trademarks  Wholesale $ 27,192,281 - $ 27,192,281  Retail 2,900,000 - 2,900,000  Patents 895,477 $ 673,009 222,468  Customer Relationships - - -  Total Intangibles $ 30,987,758 $ 673,009 $ 30,314,749   Gross Accumulated Carrying  March 31, 2017 Amount Amortization Amount  Trademarks  Wholesale $ 29,343,578 - $ 29,343,578  Retail 2,900,000 - 2,900,000  Patents 2,595,477 $ 2,389,127 206,350  Customer Relationships 2,200,000 1,266,667 933,333  Total Intangibles $ 37,039,055 $ 3,655,794 $ 33,383,261  The weighted average life for our patents is 4.3 years .  A schedule of approximate amortization expense related to finite-lived intangible assets for the three months ended is as follows:     Three Months Ended  March 31,  2018 2017  Amortization expense $ 11,000 $ 32,000   A schedule of approximate expected amortization expense related to finite-lived intangible assets for the years ending December 31, is as follows:     Amortization  Expense  2018 $ 41,000  2019 33,000  2020 31,000  2021 26,000  2022 22,000  2023+ 69,000 

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2018
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT	8 . LONG-TERM DEBT  In December 2014, we amended and restated our financing agreement with PNC Bank (“PNC”) to increase the credit facility to $ 75.0 million and extend the term of the facility an additional five years to November 2019. The credit facility’s base interest rate is the current prime rate less 0.25% , however the credit facility provides us the option to borrow on up to eight fixed loans at LIBOR plus 1.25% in accordance with the 2014 amended and restated credit agreement. The LIBOR rate is determined based on the fixed loan maturities, which vary from 30, 60, 90, or 180 days.  Our credit facility borrowings consist of the following:     March 31, December 31, March 31,  2018 2017 2017  LIBOR borrowings $ - - $ 5,000,000  Prime borrowings - $ 2,199,423 240,000  Total credit facility borrowings $ - $ 2,199,423 $ 5,240,000   The total amount available under our amended and restated revolving credit facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of March 31, 2018 , we had total capacity of $61.0 million.  Credit Facility Covenants  Our amended and restated credit facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio. This restrictive covenant is only in effect upon a triggering event taking place (as defined in the amended and restated credit facility agreement). Our amended and restated credit facility places a restriction on the amount of dividends that may be paid. At March 31, 2018 , there was no triggering event and the covenant was not in effect.

TAXES

TAXES	3 Months Ended
	Mar. 31, 2018
TAXES [Abstract]
TAXES	9 . TAXES  We are subject to tax examinations in various taxing jurisdictions. The earliest exam years open for examination are as follows:     Earliest Exam Year  Taxing Authority Jurisdiction:  U.S. Federal 2014  Various U.S. States 2013  Puerto Rico (U.S. Territory) 2012  Canada 2012  Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense. As of March 31, 2018 , no such expenses were recognized during the year. We do not believe there will be any material changes in our uncertain tax positions over the next 12 months.  Accounting for uncertainty in income taxes requires financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Under this guidance, income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of the standard. We did not have any unrecognized tax benefits and there was no effect on its financial condition or results of operations as a result of implementing this standard.  We provided for income taxes at an effective tax rate of 20.5% and 34.0% for the three months ended March 31, 2018 and 2017 . 

EARNINGS PER SHARE new

EARNINGS PER SHARE new	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE [Abstract}
EARNINGS PER SHARE	10 . EARNINGS PER SHARE  Basic earnings per share (“EPS”) is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive.  A reconciliation of the shares used in the basic and diluted income per common share computation for the three months ended March 31, 2018 and 2017 is as follows:     Three Months Ended  March 31,  2018 2017   Basic - weighted average shares outstanding 7,406,620 7,435,000   Dilutive restricted share units - 1,764  Dilutive stock options 24,451 24   Diluted - weighted average shares outstanding 7,431,071 7,436,788   Anti-dilutive securities 83,250 83,537

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Mar. 31, 2018
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	 11 . SUPPLEMENTAL CASH FLOW INFORMATION  Supplemental cash flow information is as follows:     Three Months Ended  March 31,  2018 2017   Interest paid $ 46,065 $ 99,546   Federal, state, and local income taxes (refund) paid, net $ (14,675) $ 36,499   Change in contract receivables $ (13,518,203) $ -   Change in contract liabilities $ 13,518,203 $ -   Property, plant, and equipment purchases in accounts payable $ 90,045 $ 108,345  

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	12 . SEGMENT INFORMATION  We have identified three reportable segments: Wholesale, Retail and Military. Wholesale includes sales of footwear and accessories to several classifications of retailers, including sporting goods stores, outdoor specialty stores, online retailers, independent retailers, mass merchants, retail uniform stores, and specialty safety shoe stores. Retail includes all sales from our consumer websites, stores and all sales in our Lehigh division. Military includes sales to the U.S. Military. The following is a summary of segment results for the Wholesale, Retail, and Military segments.     Three Months Ended  March 31,  2018 2017  NET SALES:  Wholesale $ 40,430,710 $ 39,168,428  Retail 13,058,218 11,874,601  Military 7,897,745 12,029,925  Total Net Sales $ 61,386,673 $ 63,072,954   GROSS MARGIN:  Wholesale $ 14,014,038 $ 13,043,761  Retail 5,534,210 5,324,619  Military 1,416,934 1,379,700  Total Gross Margin $ 20,965,182 $ 19,748,080     

ACCOUNTING STANDARDS UPDATES (P

ACCOUNTING STANDARDS UPDATES (Policies)	3 Months Ended
	Mar. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Trade Receivables	Trade receivables are presented net of the related allowance for uncollectible accounts of approximately $215,000 , $177,000 and $1,396,000 at March 31, 2018, December 31, 2017 and March 31, 2017 , respectively. We record the allowance based on historical experience, the age of the receivables, and identification of customer accounts that are likely to prove difficult to collect due to various criteria including pending bankruptcy. However, estimates of the allowance in any future period are inherently uncertain and actual allowances may differ from these estimates. If actual or expected future allowances were significantly greater or less than established reserves, a reduction or increase to bad debt expense would be recorded in the period this determination was made. Our credit policy generally provides that trade receivables will be deemed uncollectible and written-off once we have pursued all reasonable efforts to collect on the account.
Shipping Costs	Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in selling, general, and administrative expenses. This treatment is consistent with how we accounted for these costs in prior years.
Fair Value Measurements	3 . FAIR VALUE  Generally accepted accounting standards establish a framework for measuring fair value. The fair value accounting standard defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. This standard clarifies how to measure fair value as permitted under other accounting pronouncements. The fair value accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This standard also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:  · Level 1 – Quoted prices in active markets for identical assets or liabilities.  · Level 2 – Observable inputs other than quoted market prices included in Level 1, such as 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 activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The fair values of cash and cash equivalents, receivables, and payables approximated their carrying values because of the short-term nature of these instruments. Receivables consist primarily of amounts due from our customers, net of allowances, amounts due from employees (sales persons’ advances in excess of commissions earned and employee travel advances); other customer receivables, net of allowances; and expected insurance recoveries. The carrying amounts of our long-term credit facility and other short-term financing obligations also approximate fair value, as they are comparable to the available financing in the marketplace during the year. The fair value of our revolving line of credit is categorized as Level 2. 
Income Tax, Policy [Policy Text Block]	Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense.
Earnings Per Share, Policy [Policy Text Block]	Basic earnings per share (“EPS”) is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive.

ACCOUNTING STANDARDS UPDATES (T

ACCOUNTING STANDARDS UPDATES (Tables)	3 Months Ended
	Mar. 31, 2018
ACCOUNTING STANDARDS UPDATES [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	  Standard Description Anticipated Adoption Period Effect on the financial statements or other significant matters  ASU 2016-13, Measurement of Credit Losses on Financial Instruments The pronouncement seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Q1 2020 The Company is evaluating the impacts of the new standard on its existing financial instruments, including trade receivables.  ASU 2016-02, Leases (Topic 842). The pronouncement introduces a lessee model that brings most leases on the balance sheet. The standard requires that lessees recognize the following for all leases (with the exception of short-term leases, as that term is defined in the standard) at the lease commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Q1 2019 The Company has formed an internal project team to begin gathering data relating to leasing activity at the Company. This includes compiling a list of all contracts that could meet the definition of a lease under the new standard and evaluating the accounting for these contracts under the new standard to determine the ultimate impact the new standard will have on the Company's financial statements. 
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block]	  Standard Description Effect on the financial statements or other significant matters  ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The pronouncement provides specific guidance on eight cash flow classification issues to reduce the diversity in practice. The Company adopted this ASU in the first quarter of 2018, which did not have a material effect on the Unaudited Condensed Consolidated Financial Statements.  ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The pronouncement outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this ASU in the first quarter of 2018, which did not have a material effect on the Unaudited Condensed Consolidated Financial Statements. The Company elected to adopt this standard using the modified retrospective method. For additional information please see Note 4. 

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2018
REVENUE [Abstract]
Summary of Contract Liabilities	  March 31, December 31, March 31,  2018 2017 2017  Contract liabilities $ 13,518,203 $ - $ - 
Significant Changes in Contract Liabilities	  Contract liabilities  Balance, December 31, 2017 -  Non-cancelable contracts with customers recognized as a result of ASC 606 adoption $ 9,394,130  Non-cancelable contracts with customers entered into during the period 9,926,280  Revenue recognized related to non-cancelable contracts with customers during the period (5,802,207)  Balance, March 31, 2018 $ 13,518,203 

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2018
INVENTORIES [Abstract]
Schedule of Inventory	Inventories are comprised of the following:      March 31, December 31, March 31,  2018 2017 2017  Raw materials $ 11,557,579 $ 11,394,657 $ 13,672,167  Work-in-process 1,012,780 709,406 1,011,788  Finished goods 52,580,973 53,518,369 54,135,435  Total $ 65,151,332 $ 65,622,432 $ 68,819,390 

IDENTIFIED INTANGIBLE ASSETS (T

IDENTIFIED INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
IDENTIFIED INTANGIBLE ASSETS [Abstract]
Schedule of Identified Intangible Assets	A schedule of identified intangible assets is as follows :     Gross Accumulated Carrying  March 31, 2018 Amount Amortization Amount  Trademarks  Wholesale $ 27,192,281 - $ 27,192,281  Retail 2,900,000 - 2,900,000  Patents 895,477 $ 683,915 211,562  Customer Relationships - - -  Total Intangibles $ 30,987,758 $ 683,915 $ 30,303,843   Gross Accumulated Carrying  December 31, 2017 Amount Amortization Amount  Trademarks  Wholesale $ 27,192,281 - $ 27,192,281  Retail 2,900,000 - 2,900,000  Patents 895,477 $ 673,009 222,468  Customer Relationships - - -  Total Intangibles $ 30,987,758 $ 673,009 $ 30,314,749   Gross Accumulated Carrying  March 31, 2017 Amount Amortization Amount  Trademarks  Wholesale $ 29,343,578 - $ 29,343,578  Retail 2,900,000 - 2,900,000  Patents 2,595,477 $ 2,389,127 206,350  Customer Relationships 2,200,000 1,266,667 933,333  Total Intangibles $ 37,039,055 $ 3,655,794 $ 33,383,261 
Schedule of Amortization Expense	A schedule of approximate amortization expense related to finite-lived intangible assets for the three months ended is as follows:     Three Months Ended  March 31,  2018 2017  Amortization expense $ 11,000 $ 32,000 
Schedule of Future Amortization Expense	A schedule of approximate expected amortization expense related to finite-lived intangible assets for the years ending December 31, is as follows:     Amortization  Expense  2018 $ 41,000  2019 33,000  2020 31,000  2021 26,000  2022 22,000  2023+ 69,000 

LONG TERM DEBT (Tables)

LONG TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
LONG-TERM DEBT [Abstract]
Credit Facility Table	Our credit facility borrowings consist of the following:     March 31, December 31, March 31,  2018 2017 2017  LIBOR borrowings $ - - $ 5,000,000  Prime borrowings - $ 2,199,423 240,000  Total credit facility borrowings $ - $ 2,199,423 $ 5,240,000  

TAXES (Tables)

TAXES (Tables)	3 Months Ended
	Mar. 31, 2018
TAXES [Abstract]
Schedule of Income Tax Examinations	We are subject to tax examinations in various taxing jurisdictions. The earliest exam years open for examination are as follows:     Earliest Exam Year  Taxing Authority Jurisdiction:  U.S. Federal 2014  Various U.S. States 2013  Puerto Rico (U.S. Territory) 2012  Canada 2012 

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE [Abstract}
Reconciliation of Basic and Diluted Income Per Common Share	A reconciliation of the shares used in the basic and diluted income per common share computation for the three months ended March 31, 2018 and 2017 is as follows:     Three Months Ended  March 31,  2018 2017   Basic - weighted average shares outstanding 7,406,620 7,435,000   Dilutive restricted share units - 1,764  Dilutive stock options 24,451 24   Diluted - weighted average shares outstanding 7,431,071 7,436,788   Anti-dilutive securities 83,250 83,537 

SUPPLEMENTAL CASH FLOW INFORM25

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]
Schedule of Supplemental Cash Flow	Supplemental cash flow information is as follows:     Three Months Ended  March 31,  2018 2017   Interest paid $ 46,065 $ 99,546   Federal, state, and local income taxes (refund) paid, net $ (14,675) $ 36,499   Change in contract receivables $ (13,518,203) $ -   Change in contract liabilities $ 13,518,203 $ -   Property, plant, and equipment purchases in accounts payable $ 90,045 $ 108,345 

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION [Abstract]
Summary of Segment Results	  Three Months Ended  March 31,  2018 2017  NET SALES:  Wholesale $ 40,430,710 $ 39,168,428  Retail 13,058,218 11,874,601  Military 7,897,745 12,029,925  Total Net Sales $ 61,386,673 $ 63,072,954   GROSS MARGIN:  Wholesale $ 14,014,038 $ 13,043,761  Retail 5,534,210 5,324,619  Military 1,416,934 1,379,700  Total Gross Margin $ 20,965,182 $ 19,748,080 

REVENUE (Summary of Contract Li

REVENUE (Summary of Contract Liabilities) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
REVENUE [Abstract]
Contract liabilities	$ 13,518,203

REVENUE (Significant Changes in

REVENUE (Significant Changes in Contract Liabilities) (Details)	3 Months Ended
	Mar. 31, 2018USD ($)
REVENUE [Abstract]
Balance
Non-cancelable contracts with customers recognized as a result of ASC 606 adoption	9,394,130
Non-cancelable contracts with customers entered into during the period	9,926,280
Revenue recognized related to non-cancelable contracts with customers during the period	(5,802,207)
Balance	$ 13,518,203

TRADE RECEIVABLES (Narrative) (

TRADE RECEIVABLES (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Accounts Receivable, Net, Current [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 215	$ 177	$ 1,396
Contract with Customer, Refund Liability, Current	$ 1,079

INVENTORIES (Narrative) (Detail

INVENTORIES (Narrative) (Details)	Mar. 31, 2018USD ($)
Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Return reserve asset netted against inventories	$ 649,000

INVENTORIES (Schedule of Invent

INVENTORIES (Schedule of Inventory) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
INVENTORIES [Abstract]
Raw materials	$ 11,557,579	$ 11,394,657	$ 13,672,167
Work-in-process	1,012,780	709,406	1,011,788
Finished goods	52,580,973	53,518,369	54,135,435
Total	$ 65,151,332	$ 65,622,432	$ 68,819,390

IDENTIFIED INTANGIBLE ASSETS (N

IDENTIFIED INTANGIBLE ASSETS (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018
IDENTIFIED INTANGIBLE ASSETS [Abstract]
Patent and Customer Relationships WA Useful Life	4 years 3 months 18 days

IDENTIFIED INTANGIBLE ASSETS (S

IDENTIFIED INTANGIBLE ASSETS (Schedule of Identified Intangible Assets) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Accumulated Amortization	$ 683,915	$ 673,009	$ 3,655,794
Gross Amount	30,987,758	30,987,758	37,039,055
Carrying Amount	30,303,843	30,314,749	33,383,261
Wholesale (Member)
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amount	27,192,281	27,192,281	29,343,578
Retail (Member)
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amount	2,900,000	2,900,000	2,900,000
Patents [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	895,477	895,477	2,595,477
Accumulated Amortization	683,915	673,009	2,389,127
Carrying Amount	211,562	222,468	206,350
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount			2,200,000
Accumulated Amortization			1,266,667
Carrying Amount			$ 933,333

IDENTIFIED INTANGIBLE ASSETS 34

IDENTIFIED INTANGIBLE ASSETS (Schedule of Amortization Expense) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
IDENTIFIED INTANGIBLE ASSETS [Abstract]
Amortization Expense	$ 11,000	$ 32,000

IDENTIFIED INTANGIBLE ASSETS 35

IDENTIFIED INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) $ in Thousands	Mar. 31, 2018USD ($)
IDENTIFIED INTANGIBLE ASSETS [Abstract]
2,018	$ 41
2,019	33
2,020	31
2,021	26
2,022	22
2023+	$ 69

LONG-TERM DEBT (Narrative) (Det

LONG-TERM DEBT (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 61,000,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000,000
Prime Rate [Member]
Line of Credit Facility [Line Items]
Spread On Variable Rate Credit Facility	0.25%
LIBOR Rate [Member]
Line of Credit Facility [Line Items]
Spread On Variable Rate Credit Facility	1.25%

LONG-TERM DEBT (Credit Facility

LONG-TERM DEBT (Credit Facility Table) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Line of Credit Facility [Line Items]
Credit facility borrowings		$ 2,199,423	$ 5,240,000
Prime Rate [Member]
Line of Credit Facility [Line Items]
Credit facility borrowings		2,199,423	240,000
LIBOR Rate [Member]
Line of Credit Facility [Line Items]
Credit facility borrowings			$ 5,000,000

TAXES (Narrative) (Details)

TAXES (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
TAXES [Abstract]
Unrecognized Tax Benefits	$ 0
Effective tax rate	20.50%	34.00%

TAXES (Schedule of Income Tax E

TAXES (Schedule of Income Tax Examinations) (Details)	3 Months Ended
	Mar. 31, 2018
Various U.S. States [Member]
Income Tax Contingency [Line Items]
Earliest Exam Year	2,013
U.S. Federal [Member]
Income Tax Contingency [Line Items]
Earliest Exam Year	2,014
Puerto Rico (U.S. Territory) [Member]
Income Tax Contingency [Line Items]
Earliest Exam Year	2,012
Canada [Member]
Income Tax Contingency [Line Items]
Earliest Exam Year	2,012

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
EARNINGS PER SHARE [Abstract}
Basic - weighted average shares outstanding (in Shares)	7,406,620	7,435,000
Dilutive potential common shares (shares)		1,764
Diluted - weighted average shares outstanding (in Shares)	7,431,071	7,436,788
Anti-Dilutive securities	83,250	83,537
Dilutive stock options	24,451	24

SUPPLEMENTAL CASH FLOW INFORM41

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]
Interest paid	$ 46,065	$ 99,546
Federal, state, and local income taxes paid, net	(14,675)	36,499
Change in contract receivables	(13,518,203)
Change in contract liabilities	13,518,203
Property, plant, and equipment purchases in accounts payable	$ 90,045	$ 108,345

SEGMENT INFORMATION (Narrative)

SEGMENT INFORMATION (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018segment
SEGMENT INFORMATION [Abstract]
Number of operating segments	3

SEGMENT INFORMATION (Summary of

SEGMENT INFORMATION (Summary of Segment Results) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
NET SALES	$ 61,386,673	$ 63,072,954
Gross margin	20,965,182	19,748,080
Wholesale (Member)
Segment Reporting Information [Line Items]
NET SALES	40,430,710	39,168,428
Gross margin	14,014,038	13,043,761
Retail (Member)
Segment Reporting Information [Line Items]
NET SALES	13,058,218	11,874,601
Gross margin	5,534,210	5,324,619
Military [Member]
Segment Reporting Information [Line Items]
NET SALES	7,897,745	12,029,925
Gross margin	$ 1,416,934	$ 1,379,700