Tandy Leather Factory (TLF) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Entity Registrant Name	TANDY LEATHER FACTORY INC
Entity Central Index Key	909,724
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		10,282,018
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash	$ 10,867,362	$ 10,636,530
Accounts receivable-trade, net of allowance for doubtful accounts of $2,060 and $395 in 2015 and 2014, respectively	758,894	625,054
Inventory	32,810,251	32,875,492
Prepaid income taxes	623,815	336,828
Deferred income taxes	312,943	371,491
Prepaid expenses	1,347,391	1,348,652
Other current assets	121,055	157,758
Total current assets	46,841,711	46,351,805
PROPERTY AND EQUIPMENT, at cost	23,042,912	22,199,943
Less accumulated depreciation and amortization	(7,641,889)	(7,037,665)
	15,401,023	15,162,278
GOODWILL	963,769	971,786
OTHER INTANGIBLES, net of accumulated amortization of approximately $686,000 and $665,000 in 2015 and 2014, respectively	35,470	58,026
OTHER assets	327,993	329,979
TOTAL ASSETS	63,569,966	62,873,874
CURRENT LIABILITIES:
Accounts payable-trade	1,679,012	1,255,218
Accrued expenses and other liabilities	6,661,964	5,394,514
Current maturities of long-term debt	202,500	3,702,500
Total current liabilities	8,543,476	10,352,232
DEFERRED INCOME TAXES	1,408,192	1,458,005
LONG-TERM DEBT, net of current maturities	$ 1,631,813	1,940,625
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock, $0.0024 par value; 25,000,000 shares authorized; 11,275,641 and 11,239,157 shares issued at 2015 and 2014, respectively; 10,282,018 and 10,245,534 shares outstanding at 2015 and 2014, respectively	$ 27,062	26,984
Paid-in capital	6,090,984	6,013,325
Retained earnings	49,617,132	46,664,829
Treasury stock at cost (993,623 shares at 2015 and 2014)	(2,894,068)	(2,894,068)
Accumulated other comprehensive income	(854,625)	(688,058)
Total stockholders’ equity	51,986,485	49,123,012
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 63,569,966	$ 62,873,874

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounts receivable-trade, net allowance for doubtful accounts	$ 2,060	$ 395
OTHER INTANGIBLES, accumulated amortization	$ 685,947	$ 665,225
Preferred stock par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0024	$ 0.0024
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	11,275,641	11,239,157
Common stock, shares outstanding (in shares)	10,282,018	10,245,534
Treasury stock shares (in shares)	993,623	993,623

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
NET SALES	$ 19,773,528	$ 19,703,607	$ 40,562,292	$ 39,542,073
COST OF SALES	6,959,147	6,924,001	15,164,983	14,046,744
Gross profit	12,814,381	12,779,606	25,397,309	25,495,329
OPERATING EXPENSES	10,480,539	10,123,329	20,674,586	19,872,389
INCOME FROM OPERATIONS	2,333,842	2,656,277	4,722,723	5,622,940
OTHER INCOME (EXPENSE):
Interest expense	(34,762)	(44,855)	(78,925)	(90,683)
Other, net	9,877	5,334	29,750	6,678
Total other income (expense)	(24,885)	(39,521)	(49,175)	(84,005)
INCOME BEFORE INCOME TAXES	2,308,957	2,616,756	4,673,548	5,538,935
PROVISION FOR INCOME TAXES	801,061	851,271	1,721,245	1,919,038
NET INCOME	$ 1,507,896	$ 1,765,485	$ 2,952,303	$ 3,619,897
NET INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 0.15	$ 0.17	$ 0.29	$ 0.35
Diluted (in dollars per share)	$ 0.15	$ 0.17	$ 0.29	$ 0.35
Weighted Average Number of Shares Outstanding:
Basic (in shares)	10,212,933	10,198,733	10,212,137	10,198,733
Diluted (in shares)	10,241,164	10,239,823	10,241,130	10,239,447

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 1,507,896	$ 1,765,485	$ 2,952,303	$ 3,619,897
Translation adjustment	477,889	220,023	(166,567)	90,615
COMPREHENSIVE INCOME	$ 1,985,785	$ 1,985,508	$ 2,785,736	$ 3,710,512

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,952,303	$ 3,619,897
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	809,456	715,920
(Gain) loss on disposal or abandonment of assets	25,204	(1,409)
Non-cash stock-based compensation	77,737	29,065
Deferred income taxes	8,735	(143,413)
Foreign currency translation	(121,909)	84,854
Net changes in assets and liabilities:
Accounts receivable-trade, net	(133,840)	(33,701)
Inventory	65,241	(9,700,760)
Prepaid expenses	1,261	331,773
Other current assets	36,703	128,361
Accounts payable-trade	423,794	171,275
Accrued expenses and other liabilities	1,267,450	888,235
Income taxes payable	(286,987)	(740,505)
Total adjustments	2,172,845	(8,270,305)
Net cash provided by (used in) operating activities	5,125,148	(4,650,408)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,088,231)	(949,082)
Proceeds from sale of assets	741	18,736
Decrease in other assets	1,986	4,984
Net cash used in investing activities	$ (1,085,504)	(925,362)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in revolving credit loans		2,250,000
Payments on notes payable and long-term debt	$ (3,808,812)	(354,375)
Net cash provided by (used in) financing activities	(3,808,812)	1,895,625
NET CHANGE IN CASH	230,832	(3,680,145)
CASH, beginning of period	10,636,530	11,082,679
CASH, end of period	10,867,362	7,402,534
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid during the period	78,925	90,683
Income tax paid during the period, net of (refunds)	$ 2,003,680	2,567,257
NON-CASH INVESTING ACTIVITIES:
Accrued dividend		$ 2,549,684

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
BALANCE, beginning (in shares) at Dec. 31, 2013	10,198,733
BALANCE, beginning at Dec. 31, 2013	$ 26,862	$ 5,892,907	$ (2,894,068)	$ 41,507,592	$ 88,249	$ 44,621,542
Stock-based compensation (in shares)	34,601
Stock-based compensation	$ 83	28,982				29,065
Net income				3,619,897		3,619,897
Dividend payable				(2,549,684)		(2,549,684)
Translation adjustment					90,615	90,615
BALANCE, ending (in shares) at Jun. 30, 2014	10,233,334
BALANCE, ending at Jun. 30, 2014	$ 26,945	5,921,889	(2,894,068)	42,577,805	178,864	45,811,435
BALANCE, beginning (in shares) at Dec. 31, 2014	10,245,534
BALANCE, beginning at Dec. 31, 2014	$ 26,984	6,013,325	(2,894,068)	46,664,829	(688,058)	49,123,012
Stock-based compensation (in shares)	34,484
Stock-based compensation	$ 73	67,744				67,817
Net income				2,952,303		2,952,303
Translation adjustment					(166,567)	(166,567)
BALANCE, ending (in shares) at Jun. 30, 2015	10,282,018
BALANCE, ending at Jun. 30, 2015	$ 27,062	6,090,984	$ (2,894,068)	$ 49,617,132	$ (854,625)	$ 51,986,485
Shares issued – stock option exercise (in shares)	2,000					2,000
Shares issued – stock option exercise	$ 5	$ 9,915				$ 9,920

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation and Certain Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	1. BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of June 30, 2015 and December 31, 2014, and its results of operations and cash flows for the three and six-month periods ended June 30, 2015 and 2014. Operating results for the three and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Inventory . The components of inventory consist of the following: As of June 30, 2015 December 31, 2014 Inventory on hand: Finished goods held for sale $ 29,266,013 $ 31,257,820 Raw materials and work in process 976,228 1,118,506 Inventory in transit 2,568,010 499,166 $ 32,810,251 $ 32,875,492 Goodwill and Other Intangibles . Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. A two-step process is used to test for goodwill impairment. The first phase screens for impairment, while the second phase (if necessary) measures the impairment. We have elected to perform the annual analysis during the fourth calendar quarter of each year. As of December 31, 2014, management determined that the present value of the discounted estimated future cash flows of the stores associated with the goodwill is sufficient to support their respective goodwill balances. No indicators of impairment were identified during the first six months of 2015. A summary of changes in our goodwill for the periods ended June 30, 2015 and 2014 is as follows: Leather Factory Tandy Leather Total Balance, December 31, 2013 $ 598,579 $ 383,406 $ 981,985 Acquisitions and adjustments - - - Foreign exchange gain/loss (458 ) - (458 ) Impairments - - - Balance, June 30, 2014 $ 598,121 $ 383,406 $ 981,527 Leather Factory Tandy Leather Total Balance, December 31, 2014 $ 588,380 $ 383,406 $ 971,786 Acquisitions and adjustments - - - Foreign exchange gain/loss (8,017 ) - (8,017 ) Impairments - - - Balance, June 30, 2015 $ 580,363 $ 383,406 $ 963,769 Other intangibles consist of the following: As of June 30, 2015 As of December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 544,369 $ 533,649 $ 10,720 $ 544,369 $ 518,426 $ 25,943 Non-Compete Agreements 177,048 152,298 24,750 178,882 146,799 32,083 $ 721,417 $ 685,947 $ 35,470 $ 723,251 $ 665,225 $ 58,026 We recorded amortization expense of $22,556 during the first six months of 2015 compared to $22,646 during the first half of 2014. All of our intangible assets are subject to amortization under U.S. GAAP. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding 5 years is as follows: Wholesale Leathercraft Retail Leathercraft Total 2015 $ 55 $ 17,800 $ 17,855 2016 108 5,667 5,775 2017 90 1,000 1,090 2018 - 750 750 2019 - - - Revenue Recognition . We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. Comprehensive Income (loss) and Accumulated Other Comprehensive Income (loss). Recent Account ing Pronouncements. Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, which amends ASC Topic 606, Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, Compensation–Stock Compensation In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items

Note 2 - Notes Payable and Long

Note 2 - Notes Payable and Long-term Debt	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	2. N OTES PAYABLE AND LONG-TERM DEBT On July 31, 2007, we entered into a Credit Agreement and Line of Credit Note with JPMorgan Chase Bank, N.A., pursuant to which the bank agreed to provide us with a credit facility of up to $5,500,000 to facilitate our purchase of real estate consisting of a 191,000 square foot building situated on 30 acres of land located at 1900 SE Loop 820 in Fort Worth, Texas. Under the terms of the Line of Credit Note, we could borrow from time to time until April 30, 2008, up to the lesser of $5,500,000 or 90% of the cost of the property and make monthly interest payments. Proceeds in the amount of $4,050,000 were used to fund the purchase of the property from Standard Motor Products, Inc. under an Agreement of Purchase and Sale, dated June 25, 2007, which closed on July 31, 2007. No further borrowings were drawn. On April 30, 2008, the principal balance was rolled into a 10-year term note with an interest rate of 7.10% per annum. On July 12, 2012, we executed a Line of Credit Note with JPMorgan Chase Bank, N.A., pursuant to which the bank agreed to provide us with a revolving credit facility of up to $4 million. The revolver bears interest at LIBOR plus 2% (2.18% at June 30, 2015) and was to mature on June 30, 2014. On June 23, 2014, we executed a Note Modification Agreement which increased the maximum amount available from $4 million to $6 million and extended the maturity date from June 30, 2014 to June 30, 2015. On July 6, 2015, we executed a Note Modification Agreement extending the maturity date from June 30, 2015 to September 30, 2015. All other terms remain unchanged. Interest is paid monthly. The note was obtained for working capital purposes and is secured by the real estate and improvements located at 1900 Southeast Loop 820, Fort Worth Texas. At June 30, 2015 and December 31, 2014, the amount outstanding under the above agreements consisted of the following: June 30, 20 15 December 31, 2 014 Credit Agreement with JPMorgan Chase Bank – collateralized by real estate; payable as follows: Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018 $ 1,834,313 $ 2,143,125 Line of Credit Note with JPMorgan Chase Bank – collateralized by real estate; payable as follows: Line of Credit Note dated July 12, 2012, as amended on June 23, 2014, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 2%; matures September 30, 2015 - 3,500,000 1,834,313 5,643,125 Less - Current maturities (202,500 ) (3,702,500 ) $ 1,631,813 $ 1,940,625

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	3. STOCK-BASED COMPENSATI ON We have one stock option plan which permits annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock on the date the option was granted and no option has a term in excess of ten years. Under this plan, no options were awarded to directors during the six months ended June 30, 2015 and 2014 and therefore, no share based compensation expense was recorded for those periods. During the six months ended June 30, 2015 and 2014, the stock option activity under our stock option plans was as follows: Weighted Average Exercise Price # of shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, January 1, 2014 $ 5.04 84,600 Granted - - Cancelled - - Exercised - - Outstanding, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Exercisable, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Outstanding, January 1, 2015 $ 5.16 72,400 Granted - - Cancelled - - Exercised (4.96 ) (2,000 ) Outstanding, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 Exercisable, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 Other information pertaining to option activity during the six-month periods ended June 30, 2015 and 2014 are as follows: June 30, 201 5 June 30, 201 4 Weighted average grant-date fair value of stock options granted N/A N/A Total fair value of stock options vested N/A N/A Total intrinsic value of stock options exercised $ 2,953 N/A There was no unrecognized compensation cost pertaining to stock option grants as of June 30, 2015 and 2014. We have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years, unless otherwise determined by the committee that administers the plan. In February 2014, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,375 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,619 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis over the four year vesting period. In February 2015, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,343 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,613 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis over the four year vesting period. A summary of the activity for non-vested restricted common stock awards as of June 30, 2015 and 2014 is presented below: Shares Award Fair Value Balance, January 1, 2014 - - Granted 34,601 $ 8.96 Forfeited - - Vested - - Unvested Balance, June 30, 2014 34,601 $ 8.96 Balance, January 1, 2015 34,601 $ 8.96 Granted 34,484 $ 8.99 Forfeited Vested (8,652 ) $ 8.96 Unvested Balance, June 30, 2015 60,433 $ 8.97 Total unrecognized compensation expense for the non-vested restricted stock awards as of June 30, 2015 and 2014 totals $484,401 and $280,960, respectively, and is expected to be recognized in equal annual amounts over a period of four years as follows: 2015 Award 2014 Award Total 2015 $ 38,751 $ 38,753 $ 77,504 2016 $ 77,503 $ 77,506 $ 155,009 2017 $ 77,503 $ 77,506 $ 155,009 2018 $ 77,503 $ 9,688 $ 87,191 2019 $ 9,688 - $ 9,688 $ 280,948 $ 203,453 $ 484,401

Note 4 - Earnings Per Share

Note 4 - Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	4. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and six months ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income $ 1,507,896 $ 1,765,485 $ 2,952,303 $ 3,619,897 Numerator for basic and diluted earnings per share 1,507,896 1,765,485 2,952,303 3,619,897 Denominator: Weighted-average shares outstanding-basic 10,212,933 10,198,733 10,212,137 10,198,733 Effect of dilutive securities: Stock options 28,231 39,376 28,993 39,067 Restricted stock - 1,714 - 1,647 Dilutive potential common shares 28,231 41,090 28,993 40,714 Denominator for diluted earnings per share- weighted-average shares 10,241,164 10,239,823 10,241,130 10,239,447 Basic earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 Diluted earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 The net effect of converting stock options and warrants to purchase 130,833 and 119,201 shares of common stock at exercise prices less than the average market prices has been included in the computations of diluted earnings per share for the quarters ended June 30, 2015 and 2014, respectively.

Note 5 - Cash Dividend

Note 5 - Cash Dividend	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Cash Dividend [Text Block]	5. CASH DIVIDEND On June 9, 2014, our Board of Directors authorized a $0.25 per share special one-time cash dividend to be paid to stockholders of record at the close of business on July 7, 2014. The cash dividend, totaling $2.5 million, was paid to stockholders on August 8, 2014. Our Board will determine future cash dividends after giving consideration to our then existing levels of profit and cash flow, capital requirements, current and forecasted liquidity, as well as financial and other business conditions existing at the time.

Note 6 - Commitments and Contin

Note 6 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	6. COMMITMENTS AND CONTINGENCIES Legal Proceedings. Mark Barnes and Jerry Mercante on behalf of themselves and all other similarly situated v. Tandy Leather Company, Inc., Tandy Leather Factory, and Does 1-50, The Settlement Agreement preliminarily approved by the Court required us to establish a fund designated as a Qualified Settlement Fund (Escrow Account) in the amount of $993,386 to fund (1) settlement payments to the plaintiffs, (2) settlement payments to the other members of the settlement class who joined the case, (3) plaintiffs’ attorneys’ fees and expenses, and (4) the claim administrator (Escrow Agent’s) fees and expenses. The foregoing description is not complete and is qualified in its entirety by reference to the full text of the Settlement Agreement which was attached as Exhibit 10.1 to a Current Report on Form 8-K, as filed with the Securities and Exchange Commission on October 1, 2012. The deadline established by the Court for any persons employed by us as store managers between November 23, 2008 and September 24, 2012 to join the lawsuit as class members expired on May 24, 2013. On June 28, 2013, the Court issued two orders: (1) an Order Approving Class and Collective Action Settlement and Dismissing Case with Prejudice, and (2) a Final Judgment, Approving Class and Collective Action Settlement and Dismissing Case with Prejudice. Pursuant to the Court’s June 28, 2013 orders, the claims administrator (Escrow Agent) was required to make payments to the plaintiffs and those existing and former store managers who joined the lawsuit by signing and returning Consent to Join Forms, which contained a release of us from the claims asserted in plaintiffs’ lawsuit. The settlement payments to the class members and the plaintiffs were made from the Escrow Account pursuant to the formula set forth in the Settlement Agreement by the claims administrator, as well as the payment of the plaintiffs’ attorney’s fees and the fees and expenses of the claims administrator (Escrow Agent). The total payment from the Escrow Account, including our required FICA payments based on the settlement payments, was $744,273 from the total Escrow Account of $993,386. All payments were made by the claims administrator and the balance of the Escrow Account (approximately $249,000) was returned to us in the first quarter of 2014. We are periodically involved in various other litigation matters that arise in the ordinary course of our business and operations. There are no such matters pending that we expect will have a material impact on our financial position and operating results. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred.

Note 7 - Segment Information

Note 7 - Segment Information	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	7. SEGMENT INFORMATION We identify our segments based on the activities of three distinct operations: a. Wholesale Leathercraft, The Leather Factory b. Retail Leathercraft, Tandy Leather Company c. International Leathercraft Our reportable operating segments have been determined as separately identifiable business units, and we measure segment earnings as operating earnings, defined as income before interest and income taxes. Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the quarter ended June 30, 201 5 Net sales $ 6,394,278 $ 12,532,411 $ 846,839 $ 19,773,528 Gross profit 4,726,907 7,548,859 538,615 12,814,381 Operating earnings 968,552 1,336,669 28,621 2,333,842 Interest (expense) (34,762 ) - - (34,762 ) Other income (expense), net 25,769 - (15,892 ) 9,877 Income before income taxes 959,559 1,336,669 12,729 2,308,957 Depreciation and amortization 274,536 137,735 13,249 425,520 Fixed asset additions 164,540 226,777 19,470 410,787 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the quarter ended June 30 , 20 14 Net sales $ 6,457,467 $ 12,201,624 $ 1,044,516 $ 19,703,607 Gross profit 4,774,051 7,308,073 697,482 12,779,606 Operating earnings 1,106,942 1,427,913 121,422 2,656,277 Interest (expense) (44,855 ) - - (44,855 ) Other income (expense), net 15,398 - (10,064 ) 5,334 Income before income taxes 1,077,485 1,427,913 111,358 2,616,756 Depreciation and amortization 238,783 113,319 17,263 369,365 Fixed asset additions 160,847 145,768 1,185 307,800 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the six months ended June 30, 201 5 Net sales $ 13,119,582 $ 25,641,824 $ 1,800,886 $ 40,562,292 Gross profit 8,896,542 15,394,625 1,106,142 25,397,309 Operating earnings 1,920,407 2,740,121 62,195 4,722,723 Interest (expense) (78,925 ) - - (78,925 ) Other income (expense), net 37,162 - (7,412 ) 29,750 Income before income taxes 1,878,644 2,740,121 54,783 4,673,548 Depreciation and amortization 514,254 270,597 24,605 809,456 Fixed asset additions 584,446 484,315 19,470 1,088,231 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the six months ended June 30, 201 4 Net sales $ 13,281,435 $ 24,157,978 $ 2,102,660 $ 39,542,073 Gross profit 9,304,260 14,806,489 1,384,580 25,495,329 Operating earnings 2,479,579 2,900,616 242,745 5,622,940 Interest expense (90,683 ) - - (90,683 ) Other income (expense), net 25,174 - (18,496 ) 6,678 Income before income taxes 2,414,070 2,900,616 224,249 5,538,935 Depreciation and amortization 464,639 217,760 33,521 715,920 Fixed asset additions 397,057 501,967 50,058 949,082 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 Net sales for geographic areas were as follows for the three and six months ended June 30, 2015 and 2014: Three months ended June 30, 20 15 20 14 United States $ 16,836,732 $ 16,432,956 Canada 1,852,181 2,030,752 All other countries 1,084,615 1,239,899 $ 19,773,528 $ 19,703,607 Six months ended June 30, 20 15 20 14 United States $ 34,585,363 $ 33,078,842 Canada 3,738,766 3,926,810 All other countries 2,238,163 2,536,421 $ 40,562,292 $ 39,542,073 Geographic sales information is based on the location of the customer. No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three and six-month periods ended June 30, 2015 and 2014. We do not have any significant long-lived assets outside of the United States.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of June 30, 2015 and December 31, 2014, and its results of operations and cash flows for the three and six-month periods ended June 30, 2015 and 2014. Operating results for the three and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Inventory, Policy [Policy Text Block]	Inventory . The components of inventory consist of the following: As of June 30, 2015 December 31, 2014 Inventory on hand: Finished goods held for sale $ 29,266,013 $ 31,257,820 Raw materials and work in process 976,228 1,118,506 Inventory in transit 2,568,010 499,166 $ 32,810,251 $ 32,875,492
Goodwill and Intangible Assets, Policy [Policy Text Block]	Goodwill and Other Intangibles . Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. A two-step process is used to test for goodwill impairment. The first phase screens for impairment, while the second phase (if necessary) measures the impairment. We have elected to perform the annual analysis during the fourth calendar quarter of each year. As of December 31, 2014, management determined that the present value of the discounted estimated future cash flows of the stores associated with the goodwill is sufficient to support their respective goodwill balances. No indicators of impairment were identified during the first six months of 2015. A summary of changes in our goodwill for the periods ended June 30, 2015 and 2014 is as follows: Leather Factory Tandy Leather Total Balance, December 31, 2013 $ 598,579 $ 383,406 $ 981,985 Acquisitions and adjustments - - - Foreign exchange gain/loss (458 ) - (458 ) Impairments - - - Balance, June 30, 2014 $ 598,121 $ 383,406 $ 981,527 Leather Factory Tandy Leather Total Balance, December 31, 2014 $ 588,380 $ 383,406 $ 971,786 Acquisitions and adjustments - - - Foreign exchange gain/loss (8,017 ) - (8,017 ) Impairments - - - Balance, June 30, 2015 $ 580,363 $ 383,406 $ 963,769 Other intangibles consist of the following: As of June 30, 2015 As of December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 544,369 $ 533,649 $ 10,720 $ 544,369 $ 518,426 $ 25,943 Non-Compete Agreements 177,048 152,298 24,750 178,882 146,799 32,083 $ 721,417 $ 685,947 $ 35,470 $ 723,251 $ 665,225 $ 58,026 We recorded amortization expense of $22,556 during the first six months of 2015 compared to $22,646 during the first half of 2014. All of our intangible assets are subject to amortization under U.S. GAAP. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding 5 years is as follows: Wholesale Leathercraft Retail Leathercraft Total 2015 $ 55 $ 17,800 $ 17,855 2016 108 5,667 5,775 2017 90 1,000 1,090 2018 - 750 750 2019 - - -
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition . We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise.
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Income (loss) and Accumulated Other Comprehensive Income (loss).
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Account ing Pronouncements. Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, which amends ASC Topic 606, Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, Compensation–Stock Compensation In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items

Note 1 - Basis of Presentatio16

Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	As of June 30, 2015 December 31, 2014 Inventory on hand: Finished goods held for sale $ 29,266,013 $ 31,257,820 Raw materials and work in process 976,228 1,118,506 Inventory in transit 2,568,010 499,166 $ 32,810,251 $ 32,875,492
Schedule of Goodwill [Table Text Block]	Leather Factory Tandy Leather Total Balance, December 31, 2013 $ 598,579 $ 383,406 $ 981,985 Acquisitions and adjustments - - - Foreign exchange gain/loss (458 ) - (458 ) Impairments - - - Balance, June 30, 2014 $ 598,121 $ 383,406 $ 981,527 Leather Factory Tandy Leather Total Balance, December 31, 2014 $ 588,380 $ 383,406 $ 971,786 Acquisitions and adjustments - - - Foreign exchange gain/loss (8,017 ) - (8,017 ) Impairments - - - Balance, June 30, 2015 $ 580,363 $ 383,406 $ 963,769
Schedule of Finite-Lived Intangible Assets [Table Text Block]	As of June 30, 2015 As of December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 544,369 $ 533,649 $ 10,720 $ 544,369 $ 518,426 $ 25,943 Non-Compete Agreements 177,048 152,298 24,750 178,882 146,799 32,083 $ 721,417 $ 685,947 $ 35,470 $ 723,251 $ 665,225 $ 58,026
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Wholesale Leathercraft Retail Leathercraft Total 2015 $ 55 $ 17,800 $ 17,855 2016 108 5,667 5,775 2017 90 1,000 1,090 2018 - 750 750 2019 - - -

Note 2 - Notes Payable and Lo17

Note 2 - Notes Payable and Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Debt [Table Text Block]	June 30, 20 15 December 31, 2 014 Credit Agreement with JPMorgan Chase Bank – collateralized by real estate; payable as follows: Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018 $ 1,834,313 $ 2,143,125 Line of Credit Note with JPMorgan Chase Bank – collateralized by real estate; payable as follows: Line of Credit Note dated July 12, 2012, as amended on June 23, 2014, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 2%; matures September 30, 2015 - 3,500,000 1,834,313 5,643,125 Less - Current maturities (202,500 ) (3,702,500 ) $ 1,631,813 $ 1,940,625

Note 3 - Stock-based Compensa18

Note 3 - Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Average Exercise Price # of shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, January 1, 2014 $ 5.04 84,600 Granted - - Cancelled - - Exercised - - Outstanding, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Exercisable, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Outstanding, January 1, 2015 $ 5.16 72,400 Granted - - Cancelled - - Exercised (4.96 ) (2,000 ) Outstanding, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 Exercisable, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886
Schedule of Share-based Compensation, Activity [Table Text Block]	June 30, 201 5 June 30, 201 4 Weighted average grant-date fair value of stock options granted N/A N/A Total fair value of stock options vested N/A N/A Total intrinsic value of stock options exercised $ 2,953 N/A
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Shares Award Fair Value Balance, January 1, 2014 - - Granted 34,601 $ 8.96 Forfeited - - Vested - - Unvested Balance, June 30, 2014 34,601 $ 8.96 Balance, January 1, 2015 34,601 $ 8.96 Granted 34,484 $ 8.99 Forfeited Vested (8,652 ) $ 8.96 Unvested Balance, June 30, 2015 60,433 $ 8.97
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block]	2015 Award 2014 Award Total 2015 $ 38,751 $ 38,753 $ 77,504 2016 $ 77,503 $ 77,506 $ 155,009 2017 $ 77,503 $ 77,506 $ 155,009 2018 $ 77,503 $ 9,688 $ 87,191 2019 $ 9,688 - $ 9,688 $ 280,948 $ 203,453 $ 484,401

Note 4 - Earnings Per Share (Ta

Note 4 - Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income $ 1,507,896 $ 1,765,485 $ 2,952,303 $ 3,619,897 Numerator for basic and diluted earnings per share 1,507,896 1,765,485 2,952,303 3,619,897 Denominator: Weighted-average shares outstanding-basic 10,212,933 10,198,733 10,212,137 10,198,733 Effect of dilutive securities: Stock options 28,231 39,376 28,993 39,067 Restricted stock - 1,714 - 1,647 Dilutive potential common shares 28,231 41,090 28,993 40,714 Denominator for diluted earnings per share- weighted-average shares 10,241,164 10,239,823 10,241,130 10,239,447 Basic earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 Diluted earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35

Note 7 - Segment Information (T

Note 7 - Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the quarter ended June 30, 201 5 Net sales $ 6,394,278 $ 12,532,411 $ 846,839 $ 19,773,528 Gross profit 4,726,907 7,548,859 538,615 12,814,381 Operating earnings 968,552 1,336,669 28,621 2,333,842 Interest (expense) (34,762 ) - - (34,762 ) Other income (expense), net 25,769 - (15,892 ) 9,877 Income before income taxes 959,559 1,336,669 12,729 2,308,957 Depreciation and amortization 274,536 137,735 13,249 425,520 Fixed asset additions 164,540 226,777 19,470 410,787 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the quarter ended June 30 , 20 14 Net sales $ 6,457,467 $ 12,201,624 $ 1,044,516 $ 19,703,607 Gross profit 4,774,051 7,308,073 697,482 12,779,606 Operating earnings 1,106,942 1,427,913 121,422 2,656,277 Interest (expense) (44,855 ) - - (44,855 ) Other income (expense), net 15,398 - (10,064 ) 5,334 Income before income taxes 1,077,485 1,427,913 111,358 2,616,756 Depreciation and amortization 238,783 113,319 17,263 369,365 Fixed asset additions 160,847 145,768 1,185 307,800 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the six months ended June 30, 201 5 Net sales $ 13,119,582 $ 25,641,824 $ 1,800,886 $ 40,562,292 Gross profit 8,896,542 15,394,625 1,106,142 25,397,309 Operating earnings 1,920,407 2,740,121 62,195 4,722,723 Interest (expense) (78,925 ) - - (78,925 ) Other income (expense), net 37,162 - (7,412 ) 29,750 Income before income taxes 1,878,644 2,740,121 54,783 4,673,548 Depreciation and amortization 514,254 270,597 24,605 809,456 Fixed asset additions 584,446 484,315 19,470 1,088,231 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the six months ended June 30, 201 4 Net sales $ 13,281,435 $ 24,157,978 $ 2,102,660 $ 39,542,073 Gross profit 9,304,260 14,806,489 1,384,580 25,495,329 Operating earnings 2,479,579 2,900,616 242,745 5,622,940 Interest expense (90,683 ) - - (90,683 ) Other income (expense), net 25,174 - (18,496 ) 6,678 Income before income taxes 2,414,070 2,900,616 224,249 5,538,935 Depreciation and amortization 464,639 217,760 33,521 715,920 Fixed asset additions 397,057 501,967 50,058 949,082 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Three months ended June 30, 20 15 20 14 United States $ 16,836,732 $ 16,432,956 Canada 1,852,181 2,030,752 All other countries 1,084,615 1,239,899 $ 19,773,528 $ 19,703,607 Six months ended June 30, 20 15 20 14 United States $ 34,585,363 $ 33,078,842 Canada 3,738,766 3,926,810 All other countries 2,238,163 2,536,421 $ 40,562,292 $ 39,542,073

Note 1 - Basis of Presentatio21

Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Amortization of Intangible Assets	$ 22,556	$ 22,646

Note 1 - Basis of Presentatio22

Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Components of Inventory (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Inventory on hand:
Finished goods held for sale	$ 29,266,013	$ 31,257,820
Raw materials and work in process	976,228	1,118,506
Inventory in transit	2,568,010	499,166
	$ 32,810,251	$ 32,875,492

Note 1 - Basis of Presentatio23

Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Summary of Changes in Goodwill (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Leather Factory [Member]
Balance, December 31, 2013	$ 588,380	$ 598,579
Foreign exchange gain/loss	(8,017)	(458)
Balance, June 30, 2014	580,363	598,121
Tandy Leather [Member]
Balance, December 31, 2013	$ 383,406	$ 383,406
Foreign exchange gain/loss
Balance, June 30, 2014	$ 383,406	$ 383,406
Balance, December 31, 2013	971,786	981,985
Foreign exchange gain/loss	(8,017)	(458)
Balance, June 30, 2014	$ 963,769	$ 981,527

Note 1 - Basis of Presentatio24

Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Intangible Assets (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Trademarks and Copyrights [Member]
Other intangibles, gross	$ 544,369	$ 544,369
Accumulated Amortization	533,649	518,426
Other intangibles, net	10,720	25,943
Noncompete Agreements [Member]
Other intangibles, gross	177,048	178,882
Accumulated Amortization	152,298	146,799
Other intangibles, net	24,750	32,083
Other intangibles, gross	721,417	723,251
Accumulated Amortization	685,947	665,225
Other intangibles, net	$ 35,470	$ 58,026

Note 1 - Basis of Presentatio25

Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Estimated Amortization Expense (Details)	Jun. 30, 2015USD ($)
Wholesale Leathercraft [Member]
2,015	$ 55
2,016	108
2,017	$ 90
2,018
2,019
Retail Leathercraft [Member]
2,015	$ 17,800
2,016	5,667
2,017	1,000
2,018	$ 750
2,019
2,015	$ 17,855
2,016	5,775
2,017	1,090
2,018	$ 750
2,019

Note 2 - Notes Payable and Lo26

Note 2 - Notes Payable and Long-term Debt (Details Textual)	Jul. 12, 2012USD ($)	Apr. 30, 2008	Jul. 31, 2007USD ($)aft²	Jun. 30, 2015	Jun. 23, 2014USD ($)	Jun. 22, 2014USD ($)
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Building [Member]
Area of Real Estate Property | ft²			191,000
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Land [Member]
Area of Real Estate Property | a			30
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Term Note [Member]
Debt Instrument, Term		10 years
Debt Instrument, Interest Rate, Stated Percentage		7.10%
Credit Agreement with JPMorgan Chase Bank, N.A. [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 5,500,000
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Property			90.00%
Proceeds from Bank Debt			$ 4,050,000
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.00%			2.18%
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 4,000,000				$ 6,000,000	$ 4,000,000

Note 2 - Notes Payable and Lo27

Note 2 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Credit Agreement with JPMorgan Chase Bank, N.A. [Member]
Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018	$ 1,834,313	$ 2,143,125
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member]
Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018		3,500,000
	$ 1,834,313	5,643,125
Less - Current maturities	(202,500)	(3,702,500)
LONG-TERM DEBT, net of current maturities	$ 1,631,813	$ 1,940,625

Note 2 - Notes Payable and Lo28

Note 2 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) (Parentheticals) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Credit Agreement with JPMorgan Chase Bank, N.A. [Member]
Line of Credit Note term	10 years	10 years
Line of Credit Note monthly principal payments	$ 16,875	$ 16,875
Line of Credit Note interest	7.10%	7.10%
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Note, Interest at LIBOR	2.00%	2.00%
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member]
Line of Credit Note, Principal Amount	$ 6,000,000	$ 6,000,000

Note 3 - Stock-based Compensa29

Note 3 - Stock-based Compensation (Details Textual) - USD ($)	1 Months Ended		6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Jun. 30, 2015	Jun. 30, 2014
Restricted Stock Plan [Member] | Restricted Stock [Member] | Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	9,343	9,375
Restricted Stock Plan [Member] | Restricted Stock [Member] | Senior Vice President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	9,343	9,375
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,613	1,619
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,613	1,619
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 4 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,613	1,619
Restricted Stock Plan [Member] | Restricted Stock [Member] | Executive Officers, Non-employee Directors and Other Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			300,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years	4 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 years	4 years
Restricted Stock Plan [Member] | Restricted Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	9,343	9,375
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 1 Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,613	1,619
Restricted Stock Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
2007 Director Non-Qualified Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			34,484	34,601
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 484,401	$ 280,960
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			4 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 484,401	$ 280,960
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			0	0
Allocated Share-based Compensation Expense			$ 0	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			0	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 0	$ 0

Note 3 - Stock-based Compensa30

Note 3 - Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.17	$ 5.04	$ 5.16	$ 5.04
Outstanding, Number of Shares (in shares)	72,400	84,600
Outstanding, Number of Shares (in shares)	70,400	84,600
Outstanding, Weighted Average Remaining Contractual Term	5 years 302 days	6 years 171 days
Outstanding, Aggregate Intrinsic Value	$ 86,886	$ 104,656
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.17	$ 5.04
Exercisable, Number of Shares (in shares)	70,400	84,600
Exercisable, Weighted Average Remaining Contractual Term	5 years 302 days	6 years 171 days
Exercisable, Aggregate Intrinsic Value	$ 86,886	$ 104,656
Exercised, Weighted Average Exercise Price (in dollars per share)	$ (4.96)
Exercised (in shares)	(2,000)

Note 3 - Stock-based Compensa31

Note 3 - Stock-based Compensation - Other Information Pertaining to Option Activity (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Total intrinsic value of stock options exercised	$ 2,953

Note 3 - Stock-based Compensa32

Note 3 - Stock-based Compensation - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Balance, January 1, 2014 (in shares)	34,601	0
Balance, January 1, 2014 (in dollars per share)	$ 8.96	$ 0
Granted (in shares)	34,484	34,601
Granted (in dollars per share)	$ 8.99	$ 8.96
Unvested Balance, June 30, 2014 (in shares)	60,433	34,601
Unvested Balance, June 30, 2014 (in dollars per share)	$ 8.97	$ 8.96
Vested (in shares)	(8,652)
Vested (in dollars per share)	$ 8.96

Note 3 - Stock-based Compensa33

Note 3 - Stock-based Compensation - Unrecognized Compensation Expense for Non-vested Restricted Stock Awards (Details) - USD ($)	Jun. 30, 2015
2015 [Member] | Restricted Stock [Member]
2,015	$ 38,751
2,016	77,503
2,017	77,503
2,018	77,503
2,019	9,688
	280,948
2014 [Member] | Restricted Stock [Member]
2,015	38,753
2,016	77,506
2,017	77,506
2,018	$ 9,688
2,019
	$ 203,453
Restricted Stock [Member]
2,015	77,504
2,016	155,009
2,017	155,009
2,018	87,191
2,019	9,688
	484,401
	$ 0

Note 4 - Earnings Per Share (De

Note 4 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Weighted Average Number Diluted Shares Outstanding Adjustment	130,833	119,201

Note 4 - Earnings Per Share - C

Note 4 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Stock Option [Member]
Effect of dilutive securities:
Stock options (in shares)	28,231	39,376	28,993	39,067
Restricted Stock [Member]
Effect of dilutive securities:
Stock options (in shares)		1,714		1,647
Net income	$ 1,507,896	$ 1,765,485	$ 2,952,303	$ 3,619,897
Numerator for basic and diluted earnings per share	$ 1,507,896	$ 1,765,485	$ 2,952,303	$ 3,619,897
Basic (in shares)	10,212,933	10,198,733	10,212,137	10,198,733
Stock options (in shares)	28,231	41,090	28,993	40,714
Diluted (in shares)	10,241,164	10,239,823	10,241,130	10,239,447
Basic earnings per share (in dollars per share)	$ 0.15	$ 0.17	$ 0.29	$ 0.35
Diluted earnings per share (in dollars per share)	$ 0.15	$ 0.17	$ 0.29	$ 0.35

Note 5 - Cash Dividend (Details

Note 5 - Cash Dividend (Details Textual) - USD ($)	Jun. 09, 2014	Jun. 30, 2015	Jun. 30, 2014
Common Stock, Dividends, Per Share, Cash Paid	$ 0.25
Dividends Payable	$ 2,500,000		$ 2,549,684

Note 6 - Commitments and Cont37

Note 6 - Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 24, 2012	Mar. 31, 2014
Litigation Settlement, Amount	$ 993,386
Payments for Legal Settlements		$ 744,273
Loss Contingency Escrow Deposit		993,386
Loss Contingency Escrow Account Balance		$ 249,000

Note 7 - Segment Information (D

Note 7 - Segment Information (Details Textual) - Jun. 30, 2015	Total
International Leathercraft [Member] | Northampton United Kingdom [Member]
Number of Stores	1
International Leathercraft [Member] | Sydney Australia [Member]
Number of Stores	1
International Leathercraft [Member] | Jerez Spain [Member]
Number of Stores	1
International Leathercraft [Member]
Number of Stores	3
Number of Operating Segments	3

Note 7 - Segment Information -

Note 7 - Segment Information - Summary of Reportable Operating Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Wholesale Leathercraft [Member]
Net sales	$ 6,394,278	$ 6,457,467	$ 13,119,582	$ 13,281,435
Gross profit	4,726,907	4,774,051	8,896,542	9,304,260
Operating earnings	968,552	1,106,942	1,920,407	2,479,579
Interest (expense)	(34,762)	(44,855)	(78,925)	(90,683)
Other income (expense), net	25,769	15,398	37,162	25,174
Income before income taxes	959,559	1,077,485	1,878,644	2,414,070
Depreciation and amortization	274,536	238,783	514,254	464,639
Fixed asset additions	164,540	160,847	584,446	397,057
Total assets	38,507,395	45,455,609	38,507,395	45,455,609
Retail Leathercraft [Member]
Net sales	12,532,411	12,201,624	25,641,824	24,157,978
Gross profit	7,548,859	7,308,073	15,394,625	14,806,489
Operating earnings	$ 1,336,669	$ 1,427,913	$ 2,740,121	$ 2,900,616
Interest (expense)
Other income (expense), net
Income before income taxes	$ 1,336,669	$ 1,427,913	$ 2,740,121	$ 2,900,616
Depreciation and amortization	137,735	113,319	270,597	217,760
Fixed asset additions	226,777	145,768	484,315	501,967
Total assets	20,875,591	14,967,724	20,875,591	14,967,724
International Leathercraft [Member]
Net sales	846,839	1,044,516	1,800,886	2,102,660
Gross profit	538,615	697,482	1,106,142	1,384,580
Operating earnings	$ 28,621	$ 121,422	$ 62,195	$ 242,745
Interest (expense)
Other income (expense), net	$ (15,892)	$ (10,064)	$ (7,412)	$ (18,496)
Income before income taxes	12,729	111,358	54,783	224,249
Depreciation and amortization	13,249	17,263	24,605	33,521
Fixed asset additions	19,470	1,185	19,470	50,058
Total assets	4,186,980	2,314,779	4,186,980	2,314,779
Net sales	19,773,528	19,703,607	40,562,292	39,542,073
Gross profit	12,814,381	12,779,606	25,397,309	25,495,329
Operating earnings	2,333,842	2,656,277	4,722,723	5,622,940
Interest (expense)	(34,762)	(44,855)	(78,925)	(90,683)
Other income (expense), net	9,877	5,334	29,750	6,678
Income before income taxes	2,308,957	2,616,756	4,673,548	5,538,935
Depreciation and amortization	425,520	369,365	809,456	715,920
Fixed asset additions	410,787	307,800	1,088,231	949,082
Total assets	$ 63,569,966	$ 62,738,112	$ 63,569,966	$ 62,738,112

Note 7 - Segment Information 40

Note 7 - Segment Information - Net Sales for Geographic Areas (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
UNITED STATES
United States	$ 16,836,732	$ 16,432,956	$ 34,585,363	$ 33,078,842
CANADA
United States	1,852,181	2,030,752	3,738,766	3,926,810
All Other Countries [Member]
United States	1,084,615	1,239,899	2,238,163	2,536,421
United States	$ 19,773,528	$ 19,703,607	$ 40,562,292	$ 39,542,073