Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 1-12368 | |
Entity Registrant Name | TANDY LEATHER FACTORY, INC | |
Entity Central Index Key | 0000909724 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2543540 | |
Entity Address, Address Line One | 1900 Southeast Loop 820 | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76140 | |
City Area Code | 817 | |
Local Phone Number | 872-3200 | |
Title of 12(b) Security | Common Stock, par value $0.0024 | |
Trading Symbol | TLF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,328,848 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 10,033 | $ 7,975 |
Accounts receivable-trade, net of allowance for doubtful accounts of $34 and $56 at June 30, 2023 and December 31, 2022, respectively | 421 | 370 |
Inventory | 37,513 | 38,227 |
Income tax receivable | 392 | 302 |
Prepaid expenses | 375 | 272 |
Other current assets | 68 | 106 |
Total current assets | 48,802 | 47,252 |
Property and equipment, at cost | 28,273 | 28,124 |
Less accumulated depreciation | (17,524) | (16,962) |
Property and equipment, net | 10,749 | 11,162 |
Operating lease assets | 10,886 | 9,742 |
Financing lease assets | 29 | 31 |
Other intangibles, net of accumulated amortization of $549 at June 30, 2023 and December 31, 2022 | 5 | 5 |
Other assets | 456 | 387 |
TOTAL ASSETS | 70,927 | 68,579 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 2,338 | 3,082 |
Accrued expenses and other liabilities | 2,659 | 2,681 |
Income taxes payable | 700 | 211 |
Current portion of operating lease liabilities | 3,335 | 2,881 |
Current portion of finance lease liabilities | 11 | 15 |
Total current liabilities | 9,043 | 8,870 |
Uncertain tax positions | 450 | 450 |
Other non-current liabilities | 326 | 326 |
Operating lease liabilities, non-current | 8,111 | 7,469 |
Finance lease liabilities, non-current | 1 | 1 |
COMMITMENTS AND CONTINGENCIES (Note 6) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.0024 par value; 25,000,000 shares authorized; 9,756,724 and 9,717,525 shares issued at June 30, 2023 and December 31, 2022, respectively; 8,332,348 and 8,293,149 shares outstanding at June 30, 2023 and December 31, 2022, respectively | 23 | 23 |
Paid-in capital | 3,669 | 3,222 |
Retained earnings | 61,086 | 59,891 |
Treasury stock at cost (1,424,376 shares at June 30, 2023 and December 31, 2022) | (9,773) | (9,773) |
Accumulated other comprehensive loss, net of tax | (2,009) | (1,900) |
Total stockholders' equity | 52,996 | 51,463 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 70,927 | $ 68,579 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 34 | $ 56 |
Accumulated amortization | $ 549 | $ 549 |
STOCKHOLDERS' EQUITY: | ||
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) | 9,756,724 | 9,717,525 |
Common stock, shares outstanding (in shares) | 8,332,348 | 8,293,149 |
Treasury stock, shares (in shares) | 1,424,376 | 1,424,376 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) [Abstract] | ||||
Net sales | $ 17,482 | $ 18,410 | $ 37,842 | $ 38,910 |
Cost of sales | 6,561 | 7,909 | 15,102 | 16,478 |
Gross profit | 10,921 | 10,501 | 22,740 | 22,432 |
Operating expenses | 10,131 | 11,238 | 20,969 | 22,339 |
Income (loss) from operations | 790 | (737) | 1,771 | 93 |
Other (income) expense: | ||||
Interest expense | 0 | 8 | 0 | 11 |
Other, net | (2) | 22 | 37 | 6 |
Total other expense (income) | (2) | 30 | 37 | 17 |
Income (loss) before income taxes | 792 | (767) | 1,734 | 76 |
Provision (benefit) for income taxes | 261 | (178) | 539 | 20 |
Net Income (Loss) | 531 | (589) | 1,195 | 56 |
Foreign currency translation adjustments, net of tax | (70) | (253) | (109) | (188) |
Comprehensive income (loss) | $ 461 | $ (842) | $ 1,086 | $ (132) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.06 | $ (0.07) | $ 0.14 | $ 0.01 |
Diluted (in dollars per share) | $ 0.06 | $ (0.07) | $ 0.14 | $ 0.01 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 8,327,178 | 8,279,108 | 8,315,214 | 8,426,181 |
Diluted (in shares) | 8,366,904 | 8,279,108 | 8,329,969 | 8,432,897 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 1,195 | $ 56 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 590 | 596 |
Operating lease asset amortization | 1,670 | 1,625 |
Loss on disposal of assets | 0 | 8 |
Stock-based compensation | 447 | 565 |
Deferred income taxes | (31) | (1) |
Changes in operating assets and liabilities | ||
Accounts receivable-trade | (51) | 148 |
Inventory | 714 | (1,666) |
Prepaid expenses | (103) | (553) |
Other current assets | 33 | 15 |
Accounts payable-trade | (747) | 879 |
Accrued expenses and other liabilities | (22) | (934) |
Income taxes, net | 414 | (912) |
Other assets | (63) | 48 |
Operating lease liabilities | (1,717) | (1,697) |
Total adjustments | 1,134 | (1,879) |
Net cash provided by operating activities | 2,329 | (1,823) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (174) | (454) |
Net cash used in investing activities | (174) | (454) |
Cash flows from financing activities: | ||
Payments on long-term debt | 0 | (399) |
Payment of finance lease obligations | (3) | (7) |
Repurchase of common stock | 0 | (1,798) |
Net cash used in financing activities | (3) | (2,204) |
Effect of exchange rate changes on cash and cash equivalents | (94) | (86) |
Net increase in cash and cash equivalents | 2,058 | (4,567) |
Cash and cash equivalents, beginning of period | 7,975 | 10,155 |
Cash and cash equivalents, end of period | $ 10,033 | $ 5,588 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2021 | $ 24 | $ 3,959 | $ (9,773) | $ 58,664 | $ (1,373) | $ 51,501 |
Balance (in shares) at Dec. 31, 2021 | 8,547,335 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 0 | 340 | 0 | 0 | 0 | 340 |
Vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | 0 |
Vesting of restricted stock units (in shares) | 47,423 | |||||
Net income | $ 0 | 0 | 0 | 645 | 0 | 645 |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 | 65 | 65 |
Balance at Mar. 31, 2022 | $ 24 | 4,299 | (9,773) | 59,309 | (1,308) | 52,551 |
Balance (in shares) at Mar. 31, 2022 | 8,594,758 | |||||
Balance at Dec. 31, 2021 | $ 24 | 3,959 | (9,773) | 58,664 | (1,373) | 51,501 |
Balance (in shares) at Dec. 31, 2021 | 8,547,335 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 56 | |||||
Foreign currency translation adjustments, net of tax | (188) | |||||
Balance at Jun. 30, 2022 | $ 23 | 2,727 | (9,773) | 58,720 | (1,561) | 50,136 |
Balance (in shares) at Jun. 30, 2022 | 8,236,112 | |||||
Balance at Mar. 31, 2022 | $ 24 | 4,299 | (9,773) | 59,309 | (1,308) | 52,551 |
Balance (in shares) at Mar. 31, 2022 | 8,594,758 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 0 | 225 | 0 | 0 | 0 | 225 |
Vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | 0 |
Vesting of restricted stock units (in shares) | 854 | |||||
Repurchase of common stock | $ (1) | (1,797) | 0 | 0 | 0 | (1,798) |
Repurchase of common stock (in shares) | (359,500) | |||||
Net income | $ 0 | 0 | 0 | (589) | 0 | (589) |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 | (253) | (253) |
Balance at Jun. 30, 2022 | $ 23 | 2,727 | (9,773) | 58,720 | (1,561) | 50,136 |
Balance (in shares) at Jun. 30, 2022 | 8,236,112 | |||||
Balance at Dec. 31, 2022 | $ 23 | 3,222 | (9,773) | 59,891 | (1,900) | 51,463 |
Balance (in shares) at Dec. 31, 2022 | 8,293,149 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 0 | 228 | 0 | 0 | 0 | 228 |
Vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | 0 |
Vesting of restricted stock units (in shares) | 17,518 | |||||
Net income | $ 0 | 0 | 0 | 664 | 0 | 664 |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 | (39) | (39) |
Balance at Mar. 31, 2023 | $ 23 | 3,450 | (9,773) | 60,555 | (1,939) | 52,316 |
Balance (in shares) at Mar. 31, 2023 | 8,310,667 | |||||
Balance at Dec. 31, 2022 | $ 23 | 3,222 | (9,773) | 59,891 | (1,900) | 51,463 |
Balance (in shares) at Dec. 31, 2022 | 8,293,149 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,195 | |||||
Foreign currency translation adjustments, net of tax | (109) | |||||
Balance at Jun. 30, 2023 | $ 23 | 3,669 | (9,773) | 61,086 | (2,009) | 52,996 |
Balance (in shares) at Jun. 30, 2023 | 8,332,348 | |||||
Balance at Mar. 31, 2023 | $ 23 | 3,450 | (9,773) | 60,555 | (1,939) | 52,316 |
Balance (in shares) at Mar. 31, 2023 | 8,310,667 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 0 | 219 | 0 | 0 | 0 | 219 |
Vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | 0 |
Vesting of restricted stock units (in shares) | 21,681 | |||||
Net income | $ 0 | 0 | 0 | 531 | 0 | 531 |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 | (70) | (70) |
Balance at Jun. 30, 2023 | $ 23 | $ 3,669 | $ (9,773) | $ 61,086 | $ (2,009) | $ 52,996 |
Balance (in shares) at Jun. 30, 2023 | 8,332,348 |
BASIS OF PRESENTATION AND CERTA
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES Tandy Leather Factory, Inc. (“TLF,” “we,” “our,” “us,” “the Company,” “Tandy,” or “Tandy Leather” mean Tandy Leather Factory, Inc., together with its subsidiaries) What differentiates Tandy from the competition is our high brand awareness and strong brand equity and loyalty, our network of retail stores that provides convenience, a high-touch customer service experience, and a hub for the local leathercrafting community, and our 100-year heritage. We believe that this combination of qualities is unique to Tandy and gives the brand competitive advantages that are difficult for others to replicate. We sell our products primarily through company-owned stores and through orders generated from our global websites, and through direct account representatives in our commercial division. We also assemble leather lace, cut leather pieces and most of the do-it-yourself kits that are sold in our stores and on our websites. We also offer production services to our business customers such as cutting (“clicking”), splitting, and some assembly. We maintain our principal offices at 1900 Southeast Loop 820, Fort Worth, Texas 76140. The Company currently operates a total of 103 retail stores. There are 92 stores in the United States (“U.S.”), ten stores in Canada and one store in Spain. The Company’s common shares currently trade on the Nasdaq Capital Market under the symbol “TLF.” We operate as a single The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual audited financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our financial position as of June 30, 2023 and December 31, 2022, our results of operations and our cash flows for the three and six months ended June 30, 2023 and 2022, and our statements of stockholders’ equity as of and for the three and six months ended June 30, 2023 and 2022. The preparation of financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for the Company’s conclusions. The Company continually evaluates the information used to make these estimates as the business and the economic environment changes. Actual results may differ from these estimates, and estimates are subject to change due to modifications in the underlying conditions or assumptions. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes included in our Form 10-K for the year ended December 31, 2022. Significant Accounting Policies Cash and cash equivalents Foreign currency translation and transactions Revenue Recognition. The sales return allowance is based each year on historical customer return behavior and other known factors and reduces net sales and cost of sales, accordingly. The sales return allowance included in accrued expense and other liabilities was $0.2 million, $0.1 million, and $0.2 million as of June 30, 2023, December 31, 2022, and January 1, 2022. The estimated value of merchandise expected to be returned included in other current assets was $0.1 million as of June 30, 2023, December 31, 2022, and January 1, 2022. We record a gift card liability for the unfulfilled performance obligation on the date we issue a gift card to a customer. We record revenue and reduce the gift card liability as the customer redeems the gift card. In addition, for gift card breakage, we recognize a proportionate amount for the expected unredeemed gift cards over the expected customer redemption period, which is one year. As of June 30, 2023, December 31, 2022 and January 1, 2022, our gift card liability, included in accrued expenses and other liabilities, was $0.2 million, $0.3 million and $0.4 million, respectively. We recognized gift card revenue of $0.2 million for the six months ended June 30, 2023 from the December 31, 2022 deferred revenue balance and $0.2 million for the six months ended June 30, 2022 from the December 31, 2021 deferred revenue balance. For the three months ended June 30, 2023 and 2022, we recognized $0.1 million in net sales associated with gift cards. For the six months ended June 30, 2022 and 2021, we recognized $0.3 and $0.4 million, respectively, in net sales associated with gift cards. Disaggregated Revenue. In the following table, revenue for the three and six months ended June 30, 2023 and 2022 is disaggregated by geographic areas as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States $ 15,566 $ 16,426 $ 33,665 $ 34,560 Canada 1,591 1,687 3,498 3,676 Other 325 297 679 674 Net sales $ 17,482 $ 18,410 $ 37,842 $ 38,910 Geographic sales information is based on the location of the customer. As a percentage of our consolidated net sales, our other international net sales, excluding Canada, were less than 2.0% for the three and six months ended June 30, 2023, and 2022 respectively. Discounts Operating expenses Property and equipment, net of accumulated depreciation three seven Inventory We regularly review all inventory items to determine if there are (i) damaged goods (e.g., for leather, excessive scars or damage from ultra-violet (“UV”) light), (ii) items that need to be removed from our product line (e.g., slow-moving items, inability of a supplier to provide items of acceptable quality or quantity, and to maintain freshness in the product line) and (iii) pricing actions that need to be taken to adequately value our inventory at the lower of cost or net realizable value. Since the determination of net realizable value of inventory involves both estimation and judgement with regard to market values and reasonable costs to sell, differences in these estimates could result in ultimate valuations that differ from the recorded asset. The majority of inventory purchases and commitments are made in U.S. dollars in order to limit the Company’s exposure to foreign currency fluctuations. Goods shipped to us are recorded as inventory owned by us when the risk of loss shifts to us from the supplier. Inventory is physically counted twice annually in the Texas distribution center. At the store level, inventory is physically counted each quarter. Inventory is then adjusted in our accounting system to reflect actual count results. (in thousands) June 30, 2023 December 31, 2022 On hand: Finished goods held for sale $ 32,878 $ 35,234 Raw materials and work in process 1,899 925 Inventory in transit 2,736 2,068 TOTAL $ 37,513 $ 38,227 Leases We elected not to record leases with an initial term of 12 months or less on the balance sheet for all our asset classes. For operating leases, the present value of our lease liabilities may include: (1) rental payments adjusted for inflation or market rates, and (2) lease terms with options to renew the lease or options to purchase leased equipment, when it is reasonably certain we will exercise such an option. The exercise of lease renewal or purchase option is generally at our discretion. Payments based on a change in an index or market rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. We discount lease payments using our incremental borrowing rate based on information available as of the measurement date. We recognize rent expense related to our operating leases assets on a straight-line basis over the lease term. Rent expense is recorded in operating expenses. The net adjustment between rent expense and the actual cash paid during the fiscal year has been recorded as accrued expenses and other liabilities in the accompanying consolidated balance. For finance leases, our right-of-use assets are amortized on a straight-line basis over the earlier of the useful life of the right-of-use asset or the end of the lease term with rent expense recorded to operating expenses. We adjust the lease liability to reflect lease payments made during the period and interest incurred on the lease liability using the effective interest method. The interest expense incurred is recorded in interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The depreciable life of related leasehold improvements is based on the shorter of the useful life or the lease term. We also perform interim reviews of our lease assets for impairment when evidence exists that the carrying value of an asset group, including a lease asset, may not be recoverable. None of our lease agreements contain contingent rental payments, material residual value guarantees or material restrictive covenants. We have no sublease agreements and no lease agreements in which we are named as a lessor. Impairment of Long-Lived Assets Fair Value of Financial Instruments • Level 1 – observable inputs that reflect quoted prices in active markets for identical assets or liabilities. • Level 2 – significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Our principal financial instruments held consist of T-Bills as of June 30, 2023 which falls under level 1 of the fair value hierarchy; accounts receivable - trade, accounts payable - trade, as of June 30, 2023 and December 31, 2022, all of which fall under Level 3 of the fair value hierarchy. As of June 30, 2023 and December 31, 2022, the carrying values of our financial instruments, included in our Consolidated Balance Sheets, approximated their fair values. There were no transfers into or out of Levels 1, 2 and 3 during the three and six months ended June 30, 2023 and 2022. Income Taxes Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgement changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which new information becomes available. We recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. We may be subject to periodic audits by the Internal Revenue Service and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to the various jurisdictions. Stock-based compensation Performance-based RSUs vest, if at all, upon the Company satisfying certain performance targets. The Company records compensation expense for awards with a performance condition when it is probable that the condition will be achieved. If the Company determines it is not probable a performance condition will be achieved, no compensation expense is recognized. If the Company changes its assessment in a subsequent period and concludes it is probable a performance condition will be achieved, the Company will recognize compensation expense ratably between the period of the change in assessment through the expected date of satisfying the performance condition for vesting. If the Company subsequently assesses that it is no longer probable that a performance condition will be achieved, the accumulated expense that has been previously recognized will be reversed. The compensation expense ultimately recognized, if any, related to performance-based awards will equal the grant date fair value based on the number of shares for which the performance condition has been satisfied. We issue shares from authorized shares upon the lapsing of vesting restrictions on RSUs. We do not use cash to settle equity instruments issued under stock-based compensation awards. The payments of the employees’ tax liability for a portion of the vested shares are satisfied by withholding shares with a fair value equal to the tax liability. Accounts Receivable - Trade and Expected Credit Losses Other Intangible Assets Comprehensive Income (Loss) Reclassifications . |
NOTES PAYABLE AND LONG-TERM DEB
NOTES PAYABLE AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2023 | |
NOTES PAYABLE AND LONG-TERM DEBT [Abstract] | |
NOTES PAYABLE AND LONG-TERM DEBT | 2. NOTES PAYABLE AND LONG-TERM DEBT During the second quarter of 2020, the Company borrowed $0.4 million from Banco Santander S.A. under the Institute of Official Credit Guarantee for Small and Medium-sized Enterprises in order to facilitate the continuation of employment and to attenuate the economic effects of the coronavirus (“COVID-19”) virus. This loan was provided for by the Spanish government as part of a COVID-19 relief program, and on June 6, 2022, the Company repaid this loan in full. On January 3, 2023, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. Under the Credit Agreement, the bank has provided the Company a credit facility of up to $5,000,000 on standard terms and conditions, including affirmative and negative covenants set forth in the Credit Agreement. As security for the credit facility, the Company has pledged as collateral certain of its assets, including the Company’s cash in deposit accounts, inventory and equipment. As of the date of this filing, no funds have been borrowed under this facility. |
INCOME TAX
INCOME TAX | 6 Months Ended |
Jun. 30, 2023 | |
INCOME TAX [Abstract] | |
INCOME TAX | 3. INCOME TAX Our effective tax rate for the three and six months ended June 30, 2023 and 2022 was 32.9% and 23.2%, respectively. Our effective tax rate for the six months ended June 30, 2023 and 2022 was 31.1% and 26.3%, respectively. Our |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 4. STOCK-BASED COMPENSATION The Tandy Leather Factory, Inc. 2013 Restricted Stock Plan (the “2013 Plan”) was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The 2013 Plan initially reserved up to 300,000 shares for restricted stock unit (“RSU”) awards to our executive officers, non-employee directors and other key employees. In June 2020, our stockholders approved an increase to the plan reserve to 800,000 shares of our common stock and extended the 2013 Plan to June 2023. Awards granted under the 2013 Plan may be service-based awards or performance-based awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years, unless otherwise determined by the Compensation Committee of the Board of Directors that administers the plan. The Tandy Leather Factory, Inc. 2023 Incentive Stock Plan (the “2023 Plan”) was adopted by our Board of Directors in April 2023 and approved by our stockholders in June 2023. The 2023 Plan replaced the 2013 Plan; awards that were outstanding under the 2013 Plan as of June 6, 2023, remained outstanding, but no further awards will be granted under the 2013 Plan after that date. The 2023 Plan initially reserved 800,000 shares of the Company’s common stock, plus undelivered or withheld shares pursuant to outstanding awards under the 2013 Plan, for awards to our executive officers, non-employee directors and other key employees. Awards under the 2023 Plan may be made in the form of restricted stock units, , options, stock appreciation rights, performance restricted stock units and other stock or cash-based awards. I n January 2022, we granted a total of 27,249 RSUs to the Company’s Chief Executive Officer (“CEO”), which vested immediately. These shares were granted in lieu of $0.1 million in salary that the CEO declined in 2020 during the period of COVID-related store closures and business uncertainty. The timing of the grant was conditioned on the Company becoming fully current in its periodic SEC filings, which occurred in December 2021. In April 2022, we granted a total of 120,231 RSUs to certain key employees which will vest over a three-year service period. In June 2023 and 2022, we granted totals of 14,000 RSUs and 14,000 RSUs, respectively, to the Company’s Board of Directors which will vest over a four-year service period . In addition to grants under the Company’s 2013 and 2023 Plans, in October 2018, we granted a total of 644,000 RSUs to the Company’s CEO, of which (i) 460,000 are service-based RSUs that vest ratably over a period of five years from the grant date based on our CEO’s continued employment in her role, (ii) 92,000 are performance-based RSUs that will vest if the Company’s operating income exceeds $12 million dollars two fiscal years in a row, and (iii) 92,000 are performance-based RSUs that will vest if the Company’s operating income exceeds $14 million dollars in one fiscal yea r. The Company also grant 14,000 RSUs to board members at their June 2023 board meeting. A summary of the activity for non-vested restricted stock and RSU awards as of June 30, 2023 is presented below: Shares (in thousands) Weighted Average Share Price Balance, January 1, 2023 441 $ 6.46 Granted 14 4.31 Forfeited - - Vested (39 ) 4.85 Balance, June 30 2023 416 $ 6.40 The Company’s stock-based compensation relates primarily to RSU awards. For these service-based awards, our stock-based compensation expense, included in operating expenses, was $0.2 million and $0.2 million for the three months and $0.4 million and $0.6 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the Company has concluded it is not probable that the performance conditions related to performance-based RSUs granted to our CEO will be achieved, and as a result no compensation expense related to performance-based RSUs has been recorded. As of June 30, 2023, there was unrecognized compensation cost related to non-vested, service-based RSU awards of $0.6 million, which will be recognized in each of the following years (dollars in thousands): Unrecognized Expense 2023 $ 264 2024 187 2025 81 2026 22 2027 6 $ 560 We issue shares from authorized shares upon the lapsing of vesting restrictions on RSUs. For the six months ended June 30, 2023 and 2022, we issued 39,199 and 48,277 shares, respectively, resulting from the vesting of RSUs. We do not use cash to settle equity instruments issued under stock-based compensation awards. The payment of the employees’ tax liability for a portion of the vested shares are satisfied by withholding shares with a fair value equal to the tax liability. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 5. EARNINGS PER SHARE Basic earnings per share (“EPS”) are computed based on the weighted average number of common shares outstanding during the period. Diluted EPS includes additional common shares that would have been outstanding if potential common shares with a dilutive effect, such as stock awards from the Company’s restricted stock plan, had been issued. Anti-dilutive securities represent potentially dilutive securities which are excluded from the computation of diluted EPS as their impact would be anti-dilutive. Diluted EPS is computed using the treasury stock method. The following table sets forth the computation of basic and diluted EPS for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share data) 2023 2022 2023 2022 Numerator: Net income (loss) $ 531 $ (589 ) $ 1,195 $ 56 Denominator: Basic weighted-average common shares outstanding 8,327,178 8,279,108 8,315,214 8,426,181 Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan 7,156 - 367 5,259 Dilutive effect of service-based restricted stock awards granted to employees under the Plan 32,570 - 14,388 1,457 Diluted weighted-average common shares outstanding 8,366,904 8,279,108 8,329,969 8,432,897 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are periodically involved in litigation that arises in the ordinary course of business and operations. There are no such matters pending that we expect to have a material impact on our financial position or operating results. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. |
SHARE REPURCHASE PROGRAM AND SH
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES | 6 Months Ended |
Jun. 30, 2023 | |
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES [Abstract] | |
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES | 7. SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES On August 9, 2020, the Board of Directors approved a new program to repurchase up to $5.0 million of the Company’s common stock between August 9, 2020 and July 31, 2022. This program expired in July 2022. On August 8, 2022, the Board of Directors approved a new program to repurchase up to $5.0 million of the Company’s common stock between that date and August 31, 2024. As of June 30, 2023, approximately $4.9 million remained available for repurchase under this new program. On April 11, 2022, we entered into an agreement with two institutional shareholders of the Company to repurchase 359,500 shares of our common stock, par value $0.0024 in a private transaction. The purchase price was $5.00 per share for a total of $1.8 million. The closing of the repurchases took place on April 22, 2022, and these shares were subsequently cancelled. Prior to the repurchase, the shares represented approximately 4.2% of our outstanding common stock. The direct share repurchase transactions were separately authorized by our Board of Directors and did not reduce the remaining amount authorized to be repurchased under the plans described above. |
BASIS OF PRESENTATION AND CER_2
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Cash and cash equivalents | Cash and cash equivalents |
Foreign currency translation and transactions | Foreign currency translation and transactions |
Revenue Recognition | Revenue Recognition. The sales return allowance is based each year on historical customer return behavior and other known factors and reduces net sales and cost of sales, accordingly. The sales return allowance included in accrued expense and other liabilities was $0.2 million, $0.1 million, and $0.2 million as of June 30, 2023, December 31, 2022, and January 1, 2022. The estimated value of merchandise expected to be returned included in other current assets was $0.1 million as of June 30, 2023, December 31, 2022, and January 1, 2022. We record a gift card liability for the unfulfilled performance obligation on the date we issue a gift card to a customer. We record revenue and reduce the gift card liability as the customer redeems the gift card. In addition, for gift card breakage, we recognize a proportionate amount for the expected unredeemed gift cards over the expected customer redemption period, which is one year. As of June 30, 2023, December 31, 2022 and January 1, 2022, our gift card liability, included in accrued expenses and other liabilities, was $0.2 million, $0.3 million and $0.4 million, respectively. We recognized gift card revenue of $0.2 million for the six months ended June 30, 2023 from the December 31, 2022 deferred revenue balance and $0.2 million for the six months ended June 30, 2022 from the December 31, 2021 deferred revenue balance. For the three months ended June 30, 2023 and 2022, we recognized $0.1 million in net sales associated with gift cards. For the six months ended June 30, 2022 and 2021, we recognized $0.3 and $0.4 million, respectively, in net sales associated with gift cards. Disaggregated Revenue. In the following table, revenue for the three and six months ended June 30, 2023 and 2022 is disaggregated by geographic areas as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States $ 15,566 $ 16,426 $ 33,665 $ 34,560 Canada 1,591 1,687 3,498 3,676 Other 325 297 679 674 Net sales $ 17,482 $ 18,410 $ 37,842 $ 38,910 Geographic sales information is based on the location of the customer. As a percentage of our consolidated net sales, our other international net sales, excluding Canada, were less than 2.0% for the three and six months ended June 30, 2023, and 2022 respectively. |
Discounts | Discounts |
Operating expenses | Operating expenses |
Property and equipment, net of accumulated depreciation | Property and equipment, net of accumulated depreciation three seven |
Inventory | Inventory We regularly review all inventory items to determine if there are (i) damaged goods (e.g., for leather, excessive scars or damage from ultra-violet (“UV”) light), (ii) items that need to be removed from our product line (e.g., slow-moving items, inability of a supplier to provide items of acceptable quality or quantity, and to maintain freshness in the product line) and (iii) pricing actions that need to be taken to adequately value our inventory at the lower of cost or net realizable value. Since the determination of net realizable value of inventory involves both estimation and judgement with regard to market values and reasonable costs to sell, differences in these estimates could result in ultimate valuations that differ from the recorded asset. The majority of inventory purchases and commitments are made in U.S. dollars in order to limit the Company’s exposure to foreign currency fluctuations. Goods shipped to us are recorded as inventory owned by us when the risk of loss shifts to us from the supplier. Inventory is physically counted twice annually in the Texas distribution center. At the store level, inventory is physically counted each quarter. Inventory is then adjusted in our accounting system to reflect actual count results. (in thousands) June 30, 2023 December 31, 2022 On hand: Finished goods held for sale $ 32,878 $ 35,234 Raw materials and work in process 1,899 925 Inventory in transit 2,736 2,068 TOTAL $ 37,513 $ 38,227 |
Leases | Leases We elected not to record leases with an initial term of 12 months or less on the balance sheet for all our asset classes. For operating leases, the present value of our lease liabilities may include: (1) rental payments adjusted for inflation or market rates, and (2) lease terms with options to renew the lease or options to purchase leased equipment, when it is reasonably certain we will exercise such an option. The exercise of lease renewal or purchase option is generally at our discretion. Payments based on a change in an index or market rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. We discount lease payments using our incremental borrowing rate based on information available as of the measurement date. We recognize rent expense related to our operating leases assets on a straight-line basis over the lease term. Rent expense is recorded in operating expenses. The net adjustment between rent expense and the actual cash paid during the fiscal year has been recorded as accrued expenses and other liabilities in the accompanying consolidated balance. For finance leases, our right-of-use assets are amortized on a straight-line basis over the earlier of the useful life of the right-of-use asset or the end of the lease term with rent expense recorded to operating expenses. We adjust the lease liability to reflect lease payments made during the period and interest incurred on the lease liability using the effective interest method. The interest expense incurred is recorded in interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The depreciable life of related leasehold improvements is based on the shorter of the useful life or the lease term. We also perform interim reviews of our lease assets for impairment when evidence exists that the carrying value of an asset group, including a lease asset, may not be recoverable. None of our lease agreements contain contingent rental payments, material residual value guarantees or material restrictive covenants. We have no sublease agreements and no lease agreements in which we are named as a lessor. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Fair Value of Financial Instruments | Fair Value of Financial Instruments • Level 1 – observable inputs that reflect quoted prices in active markets for identical assets or liabilities. • Level 2 – significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Our principal financial instruments held consist of T-Bills as of June 30, 2023 which falls under level 1 of the fair value hierarchy; accounts receivable - trade, accounts payable - trade, as of June 30, 2023 and December 31, 2022, all of which fall under Level 3 of the fair value hierarchy. As of June 30, 2023 and December 31, 2022, the carrying values of our financial instruments, included in our Consolidated Balance Sheets, approximated their fair values. There were no transfers into or out of Levels 1, 2 and 3 during the three and six months ended June 30, 2023 and 2022. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgement changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which new information becomes available. We recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. We may be subject to periodic audits by the Internal Revenue Service and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to the various jurisdictions. |
Stock-based compensation | Stock-based compensation Performance-based RSUs vest, if at all, upon the Company satisfying certain performance targets. The Company records compensation expense for awards with a performance condition when it is probable that the condition will be achieved. If the Company determines it is not probable a performance condition will be achieved, no compensation expense is recognized. If the Company changes its assessment in a subsequent period and concludes it is probable a performance condition will be achieved, the Company will recognize compensation expense ratably between the period of the change in assessment through the expected date of satisfying the performance condition for vesting. If the Company subsequently assesses that it is no longer probable that a performance condition will be achieved, the accumulated expense that has been previously recognized will be reversed. The compensation expense ultimately recognized, if any, related to performance-based awards will equal the grant date fair value based on the number of shares for which the performance condition has been satisfied. We issue shares from authorized shares upon the lapsing of vesting restrictions on RSUs. We do not use cash to settle equity instruments issued under stock-based compensation awards. The payments of the employees’ tax liability for a portion of the vested shares are satisfied by withholding shares with a fair value equal to the tax liability. |
Accounts Receivable - Trade and Expected Credit Losses | Accounts Receivable - Trade and Expected Credit Losses |
Other Intangibles Assets | Other Intangible Assets |
Comprehensive Income (Loss) | Comprehensive Income (Loss) |
Reclassifications | Reclassifications . |
BASIS OF PRESENTATION AND CER_3
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Disaggregated Revenue | In the following table, revenue for the three and six months ended June 30, 2023 and 2022 is disaggregated by geographic areas as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States $ 15,566 $ 16,426 $ 33,665 $ 34,560 Canada 1,591 1,687 3,498 3,676 Other 325 297 679 674 Net sales $ 17,482 $ 18,410 $ 37,842 $ 38,910 |
Inventory | Inventory is then adjusted in our accounting system to reflect actual count results. (in thousands) June 30, 2023 December 31, 2022 On hand: Finished goods held for sale $ 32,878 $ 35,234 Raw materials and work in process 1,899 925 Inventory in transit 2,736 2,068 TOTAL $ 37,513 $ 38,227 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION [Abstract] | |
Activity of Non-vested Restricted Common Stock Awards | A summary of the activity for non-vested restricted stock and RSU awards as of June 30, 2023 is presented below: Shares (in thousands) Weighted Average Share Price Balance, January 1, 2023 441 $ 6.46 Granted 14 4.31 Forfeited - - Vested (39 ) 4.85 Balance, June 30 2023 416 $ 6.40 |
Non-vested, Service-based Awards | As of June 30, 2023, there was unrecognized compensation cost related to non-vested, service-based RSU awards of $0.6 million, which will be recognized in each of the following years (dollars in thousands): Unrecognized Expense 2023 $ 264 2024 187 2025 81 2026 22 2027 6 $ 560 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE [Abstract] | |
Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share data) 2023 2022 2023 2022 Numerator: Net income (loss) $ 531 $ (589 ) $ 1,195 $ 56 Denominator: Basic weighted-average common shares outstanding 8,327,178 8,279,108 8,315,214 8,426,181 Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan 7,156 - 367 5,259 Dilutive effect of service-based restricted stock awards granted to employees under the Plan 32,570 - 14,388 1,457 Diluted weighted-average common shares outstanding 8,366,904 8,279,108 8,329,969 8,432,897 |
BASIS OF PRESENTATION AND CER_4
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2023 Store Segment | |
Description of Business [Abstract] | |
Number of stores | 103 |
Number of operating segments | Segment | 1 |
Number of reporting segments | Segment | 1 |
United States [Member] | |
Description of Business [Abstract] | |
Number of stores | 92 |
Canada [Member] | |
Description of Business [Abstract] | |
Number of stores | 10 |
Spain [Member] | |
Description of Business [Abstract] | |
Number of stores | 1 |
BASIS OF PRESENTATION AND CER_5
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition and Discounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |||||||
Sales return allowance | $ 200 | $ 200 | $ 100 | $ 200 | |||
Estimate of merchandise expected to be returned | 100 | $ 100 | 100 | 100 | |||
Gift card redemption period | 1 year | ||||||
Revenue recognized from change in deferred obligation balance | $ 200 | $ 200 | |||||
Deferred revenue, recognized | 100 | $ 100 | 300 | $ 400 | |||
Disaggregated Revenue [Abstract] | |||||||
Sales | 17,482 | 18,410 | 37,842 | 38,910 | |||
Accrued Expenses and Other Liabilities [Member] | |||||||
Revenue Recognition [Abstract] | |||||||
Contract with customer liability | 200 | 200 | $ 300 | $ 400 | |||
United States [Member] | |||||||
Disaggregated Revenue [Abstract] | |||||||
Sales | 15,566 | 16,426 | 33,665 | 34,560 | |||
Canada [Member] | |||||||
Disaggregated Revenue [Abstract] | |||||||
Sales | 1,591 | 1,687 | 3,498 | 3,676 | |||
Other [Member] | |||||||
Disaggregated Revenue [Abstract] | |||||||
Sales | $ 325 | $ 297 | $ 679 | $ 674 | |||
Maximum [Member] | All Other Countries [Member] | Geographic Concentration Risk [Member] | Sales [Member] | |||||||
Disaggregated Revenue [Abstract] | |||||||
Revenue percentage | 2% | 2% | 2% | 2% |
BASIS OF PRESENTATION AND CER_6
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Discounts (Details) | 6 Months Ended |
Jun. 30, 2023 Discount | |
Discounts [Abstract] | |
Number of classes of customer discounts | 6 |
BASIS OF PRESENTATION AND CER_7
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Property and Equipment, Net of Accumulated Depreciation (Details) | Jun. 30, 2023 |
Equipment and Machinery [Member] | Minimum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 3 years |
Equipment and Machinery [Member] | Maximum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 7 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 15 years |
Vehicles [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 5 years |
Buildings and Related Improvements [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 40 years |
BASIS OF PRESENTATION AND CER_8
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory on hand [Abstract] | ||
Finished goods held for sale | $ 32,878 | $ 35,234 |
Raw materials and work in process | 1,899 | 925 |
Inventory in transit | 2,736 | 2,068 |
Total inventory | $ 37,513 | $ 38,227 |
BASIS OF PRESENTATION AND CER_9
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value of Financial Instruments [Abstract] | ||||
Transfers into (out of) Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
BASIS OF PRESENTATION AND CE_10
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Accounts Receivable and Expected Credit Losses (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable and Expected Credit Losses [Abstract] | |||
Allowance for expected credit losses | $ 0.1 | $ 0.1 | $ 0.1 |
BASIS OF PRESENTATION AND CE_11
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Maximum [Member] | ||||
Intangible Assets [Abstract] | ||||
Amortization expenses | $ 10 | $ 10 | $ 10 | $ 10 |
Amortization expense, 2023 | 10 | 10 | ||
Amortization expense, 2024 | 10 | 10 | ||
Amortization expense, 2025 | 10 | 10 | ||
Amortization expense, 2026 | 10 | 10 | ||
Amortization expense, 2027 | $ 10 | $ 10 | ||
Trademarks/Copyrights [Member] | ||||
Intangible Assets [Abstract] | ||||
Weighted average amortization period | 15 years |
BASIS OF PRESENTATION AND CE_12
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassifications [Abstract] | |||
Inventory | $ (714) | $ 1,666 | |
Accounts Payable | $ (747) | $ 879 | |
Reclassification Adjustment [Member] | |||
Reclassifications [Abstract] | |||
Inventory | $ 400 | ||
Accounts Payable | $ 400 |
NOTES PAYABLE AND LONG-TERM D_2
NOTES PAYABLE AND LONG-TERM DEBT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 06, 2022 | Jun. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 03, 2023 | |
Debt Instruments [Abstract] | |||||
Payments on long-term debt | $ 0 | $ 399,000 | |||
JP Morgan Chase Bank, N.A. [Member] | |||||
Debt Instruments [Abstract] | |||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||
Line of credit facility, funds borrowed | $ 0 | ||||
Institute of Official Credit Guarantee for Small and Medium-sized Enterprises [Member] | |||||
Debt Instruments [Abstract] | |||||
Proceeds from long-term debt | $ 400,000 | ||||
Payments on long-term debt | $ 400,000 |
INCOME TAX (Details)
INCOME TAX (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INCOME TAX [Abstract] | ||||
Effective tax rate | 32.90% | 23.20% | 31.10% | 26.30% |
STOCK-BASED COMPENSATION, 2013
STOCK-BASED COMPENSATION, 2013 and 2023 Restricted Stock Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2018 | Jun. 30, 2023 | Jun. 06, 2023 | Jun. 30, 2020 | Jan. 31, 2013 | |
Restricted Stock Units [Member] | Board of Directors [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Vesting period from grant date | 4 years | 4 years | |||||||
Number of restricted stock units granted (in shares) | 14,000 | 14,000 | |||||||
Restricted Stock Units [Member] | Key Employees [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Vesting period from grant date | 3 years | ||||||||
Number of restricted stock units granted (in shares) | 120,231 | ||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Number of restricted stock units granted (in shares) | 27,249 | 644,000 | |||||||
Officer salary | $ 0.1 | ||||||||
Service-Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Vesting period from grant date | 5 years | ||||||||
Number of restricted stock units granted (in shares) | 460,000 | ||||||||
Performance-Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche One [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Number of restricted stock units granted (in shares) | 92,000 | ||||||||
Minimum amount of operating income, award vesting condition | $ 12 | ||||||||
Performance-Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche Two [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Number of restricted stock units granted (in shares) | 92,000 | ||||||||
Minimum amount of operating income, award vesting condition | $ 14 | ||||||||
2013 Restricted Stock Plan [Member] | Minimum [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Vesting period from grant date | 4 years | ||||||||
2013 Restricted Stock Plan [Member] | Restricted Stock Units [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Number of common shares reserved for issuance (in shares) | 800,000 | ||||||||
2013 Restricted Stock Plan [Member] | Restricted Stock Units [Member] | Maximum [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Number of common shares reserved for issuance (in shares) | 300,000 | ||||||||
2023 Restricted Stock Plan [Member] | Restricted Stock Units [Member] | |||||||||
Restricted Stock Plan [Abstract] | |||||||||
Number of common shares reserved for issuance (in shares) | 800,000 |
STOCK-BASED COMPENSATION, Summa
STOCK-BASED COMPENSATION, Summary of Activity for Non-vested Restricted Stock Unit Awards (Details) - Restricted Stock and RSU [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Shares [Roll Forward] | |
Balance (in shares) | shares | 441 |
Granted (in shares) | shares | 14 |
Forfeited (in shares) | shares | 0 |
Vested (in shares) | shares | (39) |
Balance (in shares) | shares | 416 |
Weighted Average Share Price [Abstract] | |
Balance (in dollars per share) | $ / shares | $ 6.46 |
Granted (in dollars per share) | $ / shares | 4.31 |
Forfeited (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 4.85 |
Balance (in dollars per share) | $ / shares | $ 6.4 |
STOCK-BASED COMPENSATION, Non-v
STOCK-BASED COMPENSATION, Non-vested Service-based Restricted Stock Unit Awards (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Service-Based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 200,000 | $ 200,000 | $ 400,000 | $ 600,000 |
2023 | 264,000 | 264,000 | ||
2024 | 187,000 | 187,000 | ||
2025 | 81,000 | 81,000 | ||
2026 | 22,000 | 22,000 | ||
2027 | 6,000 | 6,000 | ||
Unrecognized Expense | $ 560,000 | 560,000 | ||
Performance-Based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | |||
Restricted Stock and RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued from vesting of restricted stock (in shares) | 39,199 | 48,277 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator [Abstract] | ||||||
Net income (loss) | $ 531 | $ 664 | $ (589) | $ 645 | $ 1,195 | $ 56 |
Denominator [Abstract] | ||||||
Basic weighted-average common shares outstanding (in shares) | 8,327,178 | 8,279,108 | 8,315,214 | 8,426,181 | ||
Diluted weighted-average common shares outstanding (in shares) | 8,366,904 | 8,279,108 | 8,329,969 | 8,432,897 | ||
Restricted Stock [Member] | Board of Directors [Member] | ||||||
Denominator [Abstract] | ||||||
Dilutive effect of service-based restricted stock awards granted under the Plan (in shares) | 7,156 | 0 | 367 | 5,259 | ||
Restricted Stock [Member] | Employees [Member] | ||||||
Denominator [Abstract] | ||||||
Dilutive effect of service-based restricted stock awards granted under the Plan (in shares) | 32,570 | 0 | 14,388 | 1,457 |
SHARE REPURCHASE PROGRAM AND _2
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Apr. 11, 2022 USD ($) InstitutionalShareholder $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 $ / shares | Aug. 08, 2022 USD ($) | Apr. 10, 2022 | Aug. 09, 2020 USD ($) | |
Share Repurchase Program and Share Repurchases [Abstract] | |||||||
Remaining repurchase of common stock | $ 4,900 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0024 | $ 0.0024 | |||||
Purchase price | $ 1,798 | ||||||
Maximum [Member] | |||||||
Share Repurchase Program and Share Repurchases [Abstract] | |||||||
Repurchase of common stock | $ 5,000 | $ 5,000 | |||||
Share Repurchase Program [Member] | |||||||
Share Repurchase Program and Share Repurchases [Abstract] | |||||||
Number of institutional shareholders | InstitutionalShareholder | 2 | ||||||
Repurchase of common stock (in shares) | shares | 359,500 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0024 | ||||||
Purchase price per share (in dollars per share) | $ / shares | $ 5 | ||||||
Purchase price | $ 1,800 | ||||||
Percentage of outstanding common stock | 4.20% |