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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 6 Months Ended
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Jun. 30, 2019
RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS [Abstract] |
Reconciliation of Consolidated Balance Sheet and Statements of Operations and Cash Flows | The following restatement adjustment footnote numbers correspond to the restatement adjustment descriptions above. Tandy Leather Factory, Inc. Consolidated Balance Sheet
|  | December 31, 2018 |
|  | As Reported |  |  | Adjustments |  | As Restated |
ASSETS |  |  |  |  |  |  |  |  |  |  |
CURRENT ASSETS: |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 24,070,351 |  |  | $ | - |  |  |  |  | $ | 24,070,351 |
Accounts receivable-trade, net of allowance for doubtful accounts of $15,703 |  |  | 408,170 |  |  |  | - |  |  |  |  |  | 408,170 |
Inventory |  |  | 33,867,276 |  |  |  | (564,727 | ) |  |  | (1) (2)(3)(4)(7) |  |  | 33,302,549 |
Prepaid income taxes |  |  | 383,478 |  |  |  | 36,430 |  |  |  | (6) |  |  | 419,908 |
Prepaid expenses |  |  | 1,244,754 |  |  |  | 39,041 |  |  |  | (7) |  |  | 1,283,795 |
Other current assets |  |  | 161,208 |  |  |  | 170,597 |  |  |  | (7) |  |  | 331,805 |
Total current assets |  |  | 60,135,237 |  |  |  | (318,659 | ) |  |  |  |  |  | 59,816,578 |
Property and equipment, at cost |  |  | 28,005,563 |  |  |  | 134,782 |  |  |  | (7) |  |  | 28,140,345 |
Less accumulated depreciation |  |  | (13,606,266 | ) |  |  | (18,995 | ) |  |  | (7) |  |  | (13,625,261 | )
Property and equipment, net |  |  | 14,399,297 |  |  |  | 115,787 |  |  |  |  |  |  | 14,515,084 |
Deferred income taxes |  |  | 248,228 |  |  |  | 844,065 |  |  |  | (6) |  |  | 1,092,293 |
Goodwill |  |  | 954,765 |  |  |  | - |  |  |  |  |  |  | 954,765 |
Other intangibles, net of accumulated amortization of $690,869 |  |  | 16,500 |  |  |  | - |  |  |  |  |  |  | 16,500 |
Other assets |  |  | 386,107 |  |  |  | - |  |  |  |  |  |  | 386,107 |
TOTAL ASSETS |  |  | 76,140,134 |  |  |  | 641,193 |  |  |  |  |  |  | 76,781,327 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CURRENT LIABILITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable-trade |  |  | 1,978,840 |  |  |  | 175,554 |  |  |  | (7) |  |  | 2,154,394 |
Accrued expenses and other liabilities |  |  | 4,176,479 |  |  |  | 1,225,029 |  |  |  | (4)(7) |  |  | 5,401,508 |
Current maturities of long-term debt |  |  | 747,335 |  |  |  | (227,819 | ) |  |  | (7) |  |  | 519,516 |
Total current liabilities |  |  | 6,902,654 |  |  |  | 1,172,764 |  |  |  |  |  |  | 8,075,418 |
Uncertain tax positions |  |  | - |  |  |  | 1,415,715 |  |  |  | (6) |  |  | 1,415,715 |
Deferred income taxes |  |  | 1,556,493 |  |  |  | (1,556,493 | ) |  |  | (6)(9) |  |  | - |
Other non-current liabilities |  |  | - |  |  |  | 555,296 |  |  |  | (6) |  |  | 555,296 |
Long-term debt, net of current maturities |  |  | 8,220,683 |  |  |  | 227,819 |  |  |  | (7) |  |  | 8,448,502 |
COMMITMENTS AND CONTINGENCIES (Note 10) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
STOCKHOLDERS' EQUITY: |  |  | - |  |  |  | - |  |  |  |  |  |  | - |
Preferred stock, $0.10 par value; 20,000,000 shares authorized; none issued or outstanding; attributes to be determined on issuance |  |  | - |  |  |  | - |  |  |  |  |  |  | - |
Common stock, $0.0024 par value; 25,000,000 shares authorized; 10,353,155 shares issued |  |  | 27,232 |  |  |  | (2,384 | ) |  |  | (10) |  |  | 24,848 |
Paid-in capital |  |  | 7,158,821 |  |  |  | (2,891,683 | ) |  |  | (10) |  |  | 4,267,138 |
Retained earnings |  |  | 65,716,761 |  |  |  | (1,240,383 | ) |  |  | (1) (2)(3)(4)(6)(7)(9) |  |  | 64,476,378 |
Treasury stock at cost (1,292,594 shares) |  |  | (11,931,850 | ) |  |  | 2,894,067 |  |  |  | (10) |  |  | (9,037,783 | )
Accumulated other comprehensive loss (net of tax of $480,112) |  |  | (1,510,660 | ) |  |  | 66,475 |  |  |  | (9) |  |  | (1,444,185 | )
Total stockholders' equity |  |  | 59,460,304 |  |  |  | (1,173,908 | ) |  |  |  |  |  | 58,286,396 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |  |  | 76,140,134 |  |  |  | 641,193 |  |  |  |  |  |  | 76,781,327 |
Tandy Leather Factory, Inc. Consolidated Statement of Comprehensive Income (Loss) Unaudited
|  | Three Months Ended June 30, 2018 |
|  | As Reported |  |  | Adjustments |  | As Restated |
Net sales |  | $ | 19,177,767 |  |  | $ | 9,455 |  |  |  | (4) |  | $ | 19,187,222 |
Cost of sales |  |  | 6,059,325 |  |  |  | 894,405 |  |  |  | (1)(2)(3)(4)(5) |  |  | 6,953,730 |
Gross profit (loss) |  |  | 13,118,442 |  |  |  | (884,950 | ) |  |  |  |  |  | 12,233,492 |
Operating expenses |  |  | 11,136,961 |  |  |  | (485,575 | ) |  |  | (5)(7) |  |  | 10,651,386 |
Income (loss) from operations |  |  | 1,981,481 |  |  |  | (399,375 | ) |  |  |  |  |  | 1,582,106 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 78,182 |  |  |  | - |  |  |  |  |  |  | 78,182 |
Other, net |  |  | (46,741 | ) |  |  | (85,101 | ) |  |  | (9) |  |  | (131,842 | )
Total other (income) expense |  |  | 31,441 |  |  |  | (85,101 | ) |  |  |  |  |  | (53,660 | )
Income (loss) before income taxes |  |  | 1,950,040 |  |  |  | (314,274 | ) |  |  |  |  |  | 1,635,766 |
Provision (benefit) for income taxes |  |  | 509,948 |  |  |  | (31,925 | ) |  |  | (6) |  |  | 478,023 |
Net income (loss) |  | $ | 1,440,092 |  |  | $ | (282,349 | ) |  |  |  |  | $ | 1,157,743 |
Foreign currency translation adjustments, net of tax |  |  | (294,598 | ) |  |  | 9,824 |  |  |  | (9) |  |  | (284,774 | )
Comprehensive income (loss) |  | $ | 1,145,494 |  |  | $ | (272,525 | ) |  |  |  |  | $ | 872,969 |
Net income (loss) per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.15 |  |  | $ | (0.02 | ) |  |  |  |  | $ | 0.13 |
Diluted |  | $ | 0.15 |  |  | $ | (0.02 | ) |  |  |  |  | $ | 0.13 |
Weighted average number of shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 9,180,076 |  |  |  | 9,180,076 |  |  |  |  |  |  | 9,180,076 |
Diluted |  |  | 9,180,727 |  |  |  | 9,182,527 |  |  |  |  |  |  | 9,182,527 |
Tandy Leather Factory, Inc. Consolidated Statement of Comprehensive Income (Loss) Unaudited
|  | Six Months Ended June 30, 2018 |
|  | As Reported |  |  | Adjustments |  | As Restated |
Net sales |  | $ | 39,466,685 |  |  | $ | 221,115 |  |  |  | (4) |  | $ | 39,687,800 |
Cost of sales |  |  | 13,505,281 |  |  |  | 1,259,967 |  |  |  | (1 )(2)(3)(4)(5)(7) |  |  | 14,765,248 |
Gross profit (loss) |  |  | 25,961,404 |  |  |  | (1,038,852 | ) |  |  |  |  |  | 24,922,552 |
Operating expenses |  |  | 22,210,962 |  |  |  | (924,653 | ) |  |  | (5)(7) |  |  | 21,286,309 |
Income (loss) from operations |  |  | 3,750,442 |  |  |  | (114,199 | ) |  |  |  |  |  | 3,636,243 |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 142,824 |  |  |  | - |  |  |  |  |  |  | 142,824 |
Other, net |  |  | (85,613 | ) |  |  | (199,607 | ) |  |  | (9) |  |  | (285,220 | )
Total other (income) expense |  |  | 57,211 |  |  |  | (199,607 | ) |  |  |  |  |  | (142,396 | )
Income (loss) before income taxes |  |  | 3,693,231 |  |  |  | 85,408 |  |  |  |  |  |  | 3,778,639 |
Provision (benefit) for income taxes |  |  | 979,520 |  |  |  | 124,720 |  |  |  | (6) |  |  | 1,104,240 |
Net income (loss) |  | $ | 2,713,711 |  |  | $ | (39,312 | ) |  |  |  |  | $ | 2,674,399 |
Foreign currency translation adjustments, net of tax |  |  | (272,807 | ) |  |  | (70,959 | ) |  |  | (9) |  |  | (343,766 | )
Comprehensive income (loss) |  | $ | 2,440,904 |  |  | $ | (110,271 | ) |  |  |  |  | $ | 2,330,633 |
Net income (loss) per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.29 |  |  | $ | 0.01 |  |  |  |  |  | $ | 0.29 |
Diluted |  | $ | 0.29 |  |  | $ | 0.01 |  |  |  |  |  | $ | 0.29 |
Weighted average number of shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 9,222,028 |  |  |  | 9,222,028 |  |  |  |  |  |  | 9,222,028 |
Diluted |  |  | 9,222,533 |  |  |  | 9,223,086 |  |  |  |  |  |  | 9,223,086 |
Tandy Leather Factory, Inc. Consolidated Statement of Cash Flows Unaudited
|  | Six Months Ended June 30, 2018 |
|  | As Reported |  |  | Adjustments |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 2,713,711 |  |  | $ | (39,312 | ) |  |  |  | $ | 2,674,399 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 878,955 |  |  |  | 1,139 |  |  |  | (7) |  |  | 880,094 |
(Gain) loss on disposal of assets |  |  | 4,556 |  |  |  | - |  |  |  |  |  |  | 4,556 |
Stock-based compensation |  |  | 52,688 |  |  |  | - |  |  |  |  |  |  | 52,688 |
Deferred income taxes |  |  | (96,057 | ) |  |  | (58,586 | ) |  |  | (6)(9) |  |  | (154,643 | )
Exchange (gain) loss |  |  | (268,321 | ) |  |  | 52,455 |  |  |  | (9) |  |  | (215,866 | )
Changes in operating assets and liablities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable-trade |  |  | (35,043 | ) |  |  | 12,509 |  |  |  | (7) |  |  | (22,534 | )
Inventory |  |  | (709,072 | ) |  |  | 20,638 |  |  |  | (1)(2)(4) |  |  | (688,434 | )
Prepaid expenses |  |  | 98,203 |  |  |  | 67,654 |  |  |  | (6)(7) |  |  | 165,857 |
Other current assets |  |  | 113,570 |  |  |  | (113,570 | ) |  |  | (7) |  |  | - |
Accounts payable-trade |  |  | (189,928 | ) |  |  | 911,645 |  |  |  | (7) |  |  | 721,717 |
Accrued expenses and other liabilities |  |  | (1,258,506 | ) |  |  | (662,391 | ) |  |  | (4)(7) |  |  | (1,920,897 | )
Income taxes |  |  | (255,695 | ) |  |  | 53,044 |  |  |  | (6) |  |  | (202,651 | )
Other assets |  |  | (3,910 | ) |  |  | 426,212 |  |  |  | (7) |  |  | 422,302 |
Total adjustments |  |  | (1,668,560 | ) |  |  | 710,749 |  |  |  |  |  |  | (957,811 | )
Net cash provided by operating activities |  |  | 1,045,151 |  |  |  | 671,437 |  |  |  |  |  |  | 1,716,588 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  | (421,861 | ) |  |  | - |  |  |  |  |  |  | (421,861 | )
Proceeds from sales of assets |  |  | 7,028 |  |  |  | - |  |  |  |  |  |  | 7,028 |
Net cash used in investing activities |  |  | (414,833 | ) |  |  | - |  |  |  |  |  |  | (414,833 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from long-term debt |  |  | 982,938 |  |  |  | - |  |  |  |  |  |  | 982,938 |
Repurchase of treasury stock |  |  | (995,186 | ) |  |  | - |  |  |  |  |  |  | (995,186 | )
Net cash used in financing activities |  |  | (12,248 | ) |  |  | - |  |  |  |  |  |  | (12,248 | )
Effect of exchange rate changes on cash and cash equivalents |  |  | - |  |  |  | (417,036 | ) |  |  | (9) |  |  | (417,036 | )
Net (decrease) increase in cash and cash equivalents |  |  | 618,070 |  |  |  | 254,401 |  |  |  |  |  |  | 872,471 |
Cash and cash equivalents, beginning of period |  |  | 18,337,258 |  |  |  | (254,401 | ) |  |  |  |  |  | 18,082,857 |
Cash and cash equivalents, end of period |  | $ | 18,955,328 |  |  | $ | - |  |  |  |  |  | $ | 18,955,328 |

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- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794 + Details
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