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