Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 11, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38858 | ||
Entity Registrant Name | XPEL, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 20-1117381 | ||
Entity Address, Address Line One | 618 W. Sunset Road | ||
Entity Address, City or Town | San Antonio | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78216 | ||
City Area Code | 210 | ||
Local Phone Number | 678-3700 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | XPEL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 255,070,696 | ||
Entity Common Stock, Shares Outstanding | 27,612,597 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Document Parts into which Incorporated Portions of the registrant’s Proxy Statement relating to the 2021 Annual Meeting of stockholders to be held on May 27, 2021 . Part III | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001767258 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Cash and cash equivalents | $ 29,027,124 | $ 11,500,973 |
Accounts receivable, net | 9,944,213 | 7,154,084 |
Inventory, net | 22,364,126 | 15,141,153 |
Prepaid expenses and other current assets | 1,441,749 | 2,391,340 |
Income tax receivable | 0 | 93,150 |
Total current assets | 62,777,212 | 36,280,700 |
Property and equipment, net | 4,706,248 | 4,014,653 |
Right-of-use lease assets | 5,973,702 | 5,079,110 |
Intangible assets, net | 5,423,980 | 3,820,460 |
Other non-current assets | 486,472 | 0 |
Goodwill | 4,472,217 | 2,406,512 |
Total assets | 83,839,831 | 51,601,435 |
Current | ||
Current portion of notes payable | 2,568,172 | 462,226 |
Current portion of lease liabilities | 1,650,749 | 1,126,701 |
Accounts payable and accrued liabilities | 16,797,462 | 10,197,353 |
Income tax payable | 183,961 | 0 |
Total current liabilities | 21,200,344 | 11,786,280 |
Deferred tax liability, net | 627,806 | 604,715 |
Other long-term liabilities | 729,408 | 0 |
Non-current portion of lease liabilities | 4,331,214 | 4,009,949 |
Non-current portion of notes payable | 3,568,191 | 307,281 |
Total liabilities | 30,456,963 | 16,708,225 |
Commitments and Contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 100,000,000 shares authorized; 27,612,597 issued and outstanding | 27,613 | 27,613 |
Additional paid-in-capital | 10,412,471 | 11,348,163 |
Accumulated other comprehensive income (loss) | 66,215 | (908,764) |
Retained earnings | 42,876,569 | 24,594,878 |
Equity attributable to stockholders of the company | 53,382,868 | 35,061,890 |
Non-controlling interest | 0 | (168,680) |
Total stockholders’ equity | 53,382,868 | 34,893,210 |
Total liabilities and stockholders’ equity | $ 83,839,831 | $ 51,601,435 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2020$ / sharesshares |
Statement of Financial Position [Abstract] | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Preferred stock shares authorized (in shares) | 10,000,000 |
Preferred stock shares issued (in shares) | 0 |
Preferred stock shares outstanding (in shares) | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Common stock shares authorized (in shares) | 100,000,000 |
Common stock shares issued (in shares) | 27,612,597 |
Common stock shares outstanding (in shares) | 27,612,597 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Total revenue | $ 158,924,448 | $ 129,932,881 | $ 109,920,614 |
Cost of Sales | |||
Total cost of sales | 104,899,439 | 86,426,622 | 76,484,009 |
Gross Margin | 54,025,009 | 43,506,259 | 33,436,605 |
Operating Expenses | |||
Sales and marketing | 9,748,292 | 7,584,377 | 6,802,241 |
General and administrative | 20,906,785 | 18,834,535 | 14,828,361 |
Total operating expenses | 30,655,077 | 26,418,912 | 21,630,602 |
Operating Income | 23,369,932 | 17,087,347 | 11,806,003 |
Interest expense | 249,480 | 96,646 | 168,389 |
Foreign currency exchange loss | 316,093 | 40,273 | 156,309 |
Income before income taxes | 22,804,359 | 16,950,428 | 11,481,305 |
Income tax expense | 4,522,668 | 2,955,356 | 2,760,073 |
Net income | 18,281,691 | 13,995,072 | 8,721,232 |
Income attributed to non-controlling interest | 0 | 17,447 | 8,698 |
Net income attributable to stockholders of the Company | $ 18,281,691 | $ 13,977,625 | $ 8,712,534 |
Earnings per share attributable stockholders of the Company | |||
Earnings per share basic and diluted (in dollars per share) | $ 0.66 | $ 0.51 | $ 0.32 |
Weighted Average Number of Common Shares | |||
Basic and diluted (in shares) | 27,612,597 | 27,612,597 | 27,612,597 |
Product revenue | |||
Revenue | |||
Total revenue | $ 136,262,067 | $ 112,204,739 | $ 95,526,350 |
Cost of Sales | |||
Total cost of sales | 98,502,279 | 82,308,256 | 73,656,389 |
Service revenue | |||
Revenue | |||
Total revenue | 22,662,381 | 17,728,142 | 14,394,264 |
Cost of Sales | |||
Total cost of sales | $ 6,397,160 | $ 4,118,366 | $ 2,827,620 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive income | |||
Net income | $ 18,281,691 | $ 13,995,072 | $ 8,721,232 |
Foreign currency translation | 970,446 | 285,193 | (603,673) |
Total comprehensive income | 19,252,137 | 14,280,265 | 8,117,559 |
Total comprehensive income attributable to: | |||
Stockholders of the Company | 19,256,670 | 14,258,916 | 8,119,162 |
Non-controlling interest | $ (4,533) | $ 21,349 | $ (1,603) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity attributable to Stockholders of the Company | Non-Controlling Interest |
Beginning stock outstanding balance (in shares) at Dec. 31, 2017 | 27,612,597 | ||||||
Beginning balance at Dec. 31, 2017 | $ 12,495,386 | $ 27,613 | $ 11,348,163 | $ 1,904,719 | $ (596,683) | $ 12,683,812 | $ (188,426) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 8,721,232 | 8,712,534 | 8,712,534 | 8,698 | |||
Foreign currency translation | (603,673) | (593,372) | (593,372) | (10,301) | |||
Ending stock outstanding balance (in shares) at Dec. 31, 2018 | 27,612,597 | ||||||
Ending balance at Dec. 31, 2018 | 20,612,945 | $ 27,613 | 11,348,163 | 10,617,253 | (1,190,055) | 20,802,974 | (190,029) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 13,995,072 | 13,977,625 | 13,977,625 | 17,447 | |||
Foreign currency translation | 285,193 | 281,291 | 281,291 | 3,902 | |||
Ending stock outstanding balance (in shares) at Dec. 31, 2019 | 27,612,597 | ||||||
Ending balance at Dec. 31, 2019 | 34,893,210 | $ 27,613 | 11,348,163 | 24,594,878 | (908,764) | 35,061,890 | (168,680) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 18,281,691 | 18,281,691 | 18,281,691 | ||||
Foreign currency translation | 970,446 | 974,979 | 974,979 | (4,533) | |||
Purchase of minority interest | (762,479) | (935,692) | (935,692) | 173,213 | |||
Ending stock outstanding balance (in shares) at Dec. 31, 2020 | 27,612,597 | ||||||
Ending balance at Dec. 31, 2020 | $ 53,382,868 | $ 27,613 | $ 10,412,471 | $ 42,876,569 | $ 66,215 | $ 53,382,868 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 18,281,691 | $ 13,995,072 | $ 8,721,232 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 1,274,095 | 915,918 | 735,983 |
Amortization of intangible assets | 955,937 | 781,105 | 642,801 |
Impairment expense | 0 | 66,364 | 0 |
(Gain) loss on sale of property and equipment | (3,198) | (11,298) | 25,733 |
Bad debt expense | 113,771 | 242,091 | 190,230 |
Deferred income tax | (273,299) | 117,328 | (86,218) |
Accretion on notes payable | 64,982 | 61,316 | 43,416 |
Changes in assets and liabilities: | |||
Accounts receivable | (2,431,292) | (1,773,371) | (261,256) |
Inventory, net | (6,758,855) | (4,251,134) | 11,148 |
Prepaid expenses and other current assets | 948,666 | (1,653,420) | 132,682 |
Income tax receivable | (94,729) | 93,611 | 0 |
Other assets | (442,188) | 32,576 | 0 |
Accounts payable and accrued liabilities | 6,359,365 | 3,877,024 | (3,635,246) |
Income tax payable | 281,607 | (1,340,441) | 276,280 |
Net cash provided by operating activities | 18,466,011 | 10,965,519 | 6,796,785 |
Cash flows used in investing activities | |||
Purchase of property, plant and equipment | (1,781,464) | (1,569,823) | (2,030,314) |
Proceeds from sale of property and equipment | 60,806 | 68,457 | 155,277 |
Acquisitions, net of cash acquired and notes payable | (2,568,538) | (127,623) | (831,934) |
Development or purchase of intangible assets | (374,358) | (674,581) | (386,985) |
Net cash used in investing activities | (4,663,554) | (2,303,570) | (3,093,956) |
Cash flows from financing activities | |||
Borrowings on revolving credit agreements | 8,932,016 | 0 | 0 |
Repayments of revolving credit agreements | (8,932,016) | 0 | (2,000,000) |
Borrowing on term-loan | 6,000,000 | 0 | 0 |
Repayments of notes payable | (1,704,118) | (1,143,240) | (1,098,181) |
Purchase of minority interest | (784,653) | 0 | 0 |
Net cash provided by (used in) financing activities | 3,511,229 | (1,143,240) | (3,098,181) |
Net change in cash and cash equivalents | 17,313,686 | 7,518,709 | 604,648 |
Foreign exchange impact on cash and cash equivalents | 212,465 | 11,038 | (132,326) |
Increase in cash and cash equivalents during the period | 17,526,151 | 7,529,747 | 472,322 |
Cash and cash equivalents at beginning of year | 11,500,973 | 3,971,226 | 3,498,904 |
Cash and cash equivalents at end of year | 29,027,124 | 11,500,973 | 3,971,226 |
Supplemental schedule of non-cash activities | |||
Notes payable issued for acquisitions | 893,314 | 0 | 998,668 |
Contingent consideration | 541,000 | 0 | 0 |
Forgiveness of debt for acquired entities | 0 | 0 | 88,216 |
Supplemental cash flow information | |||
Cash paid for income taxes | 4,461,256 | 4,079,962 | 2,514,727 |
Cash paid for interest | $ 178,385 | $ 17,850 | $ 86,417 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Nature of Business - The Company is based in San Antonio, Texas and sells, distributes, and installs protective films and coatings, including automotive surface and paint protection film, headlight protection, automotive and architectural window films and ceramic coatings. The Company was incorporated in the state of Nevada, U.S.A. in October 2003 and its registered office is 618 W. Sunset Road, San Antonio, Texas, 78216. Basis of Presentation - The consolidated financial statements are prepared in conformity with GAAP and include the accounts of the Company and its wholly-owned or majority-owned subsidiaries. The ownership interest of non-controlling participants in subsidiaries that are not wholly-owned is included as a separate component of stockholders’ equity. The non-controlling participants’ share of the net income is included as “Income attributable to non-controlling interest” on the Consolidated Statements of Income and Comprehensive Income. Intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to conform to the current year presentation. The functional currency for the Company is the United States dollar. The assets and liabilities of each of its foreign subsidiaries are translated into U.S dollars using the exchange rate at the end of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the period. Gains and losses from translations are recognized in foreign currency translation included in accumulated other comprehensive income in the accompanying consolidated balance sheets. Foreign currency exchange gains and losses are recorded in other expense, net in the accompanying consolidated statements of income. The ownership percentages and functional currencies of the entities included in these consolidated financial statements are as follows: Subsidiaries Functional Currency % Owned by XPEL, Inc. XPEL, Ltd. UK Pound Sterling 100 % Armourfend CAD, LLC U.S. Dollar 100 % XPEL Canada Corp. Canadian Dollar 100 % XPEL B.V. Euro 100 % XPEL Germany GmbH Euro 100 % XPEL de Mexico S. de R.L. de C.V. Peso 100 % XPEL Acquisition Corp. Canadian Dollar 100 % Protex Canada, Inc. Canadian Dollar 100 % Apogee Corp. New Taiwan Dollar 100 % XPEL Slovakia Euro 100 % XPEL France Euro 100 % Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results as a whole on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment. Use of Estimates - The preparation of these consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions. Foreign Currency Translation - The financial statements of subsidiaries located outside of the U.S. are generally measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date. Income and expense items are translated at average monthly rates of exchange. The resultant translation adjustments are included in accumulated other comprehensive income, a separate component of stockholders’ equity. Cash and Cash Equivalents - Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. The balance, at times, may exceed federally insured limits. Accounts Receivable - Accounts receivable are shown net of an allowance for doubtful accounts of $90,844 and $182,488 as of December 31, 2020 and 2019, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. Accounts receivable from two large customers accounted for 24.7% of the Company’s total accounts receivable balance at December 31, 2020. As of December 31, 2019, a large customer accounted for 18.8% of the Company’s total accounts receivable balance. Inventory - Inventory is comprised of film, film-based products, film installation support products, and supplies which are valued at lower of cost or net realizable value, with cost determined on a weighted average cost basis. We provide reserves for discontinued and excess inventory based upon historical demand, forecasted usage, estimated customer requirements and product line updates. As of December 31, 2020 and 2019, inventory reserves were $113,091 and $120,826, respectively. Property, Plant and Equipment - Property and equipment are recorded at cost, except property and equipment acquired in connection with the Company’s business combinations, which are recorded at fair value on the date of acquisition. Expenditures which improve or extend the life of the respective assets are capitalized, whereas expenditures for normal repairs and maintenance are charged to operations as incurred. Depreciation expense is computed using the straight-line method as follows: Furniture and fixtures 5 years Computer equipment 3-4 years Vehicles 5 years Equipment 5-8 years Leasehold improvements shorter of lease term or estimated useful life Plotters 4 years The following table presents geographic property, plant and equipment, net by region as of December 31: 2020 2019 United States $ 3,110,979 $ 2,410,737 Canada 674,821 519,066 Europe 584,084 679,112 Other 336,364 405,738 Consolidated $ 4,706,248 $ 4,014,653 Goodwill - Goodwill represents the excess purchase price over the fair value of tangible net assets acquired in business combinations after amounts have been allocated to intangible assets. Goodwill is tested for impairment at the reporting unit level on an annual basis (at December 31) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company recognized a goodwill impairment loss in connection with the closing of one installation location during the year ended December 31, 2019. Refer to Note 5, Goodwill for more information related to this impairment. The following table presents geographic Goodwill by region as of December 31: 2020 2019 United States $ 1,246,383 $ 617,334 Canada 3,137,153 1,740,884 Other 88,681 48,294 Consolidated $ 4,472,217 $ 2,406,512 Intangible Assets - Intangible assets consist primarily of software, customer relationships, trademarks and non-compete agreements. These assets are amortized on a straight-line basis over the period of time in which their expected benefits will be realized. The following table presents geographic intangible assets, net by region as of December 31: 2020 2019 United States $ 2,597,670 $ 2,074,235 Canada 2,273,627 1,431,247 Europe 337,282 81,612 Other 215,401 233,366 Consolidated $ 5,423,980 $ 3,820,460 The following table presents the anticipated useful lives of intangible assets: Trademarks 10 years Software 5 years Trade name 10-15 years Contractual and customer relationships 9-10 years Non-compete 3-5 years Other 10 years Impairment of Long-Lived Assets - The Company reviews and evaluates long-lived assets for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. When the undiscounted expected future cash flows are not sufficient to recover an asset’s carrying amount, the fair value is compared to the carrying value to determine the impairment loss to be recorded. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value, less the cost to sell. Fair values are determined by independent appraisals or expected sales prices based upon market participant data developed by third party professionals or by internal licensed real estate professionals. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of operations. These estimates project cash flows several years into the future and are affected by changes in the economy, real estate market conditions and inflation. No impairment was recorded during the year ended December 31, 2020. The Company recognized an intangible asset impairment loss in connection with the closing of one installation location during the year ended December 31, 2019. Refer to Note 4, Intangible Assets, Net for more information related to this impairment. Other Long-Term Liabilities - The balance presented as other long-term liabilities on the Company’s consolidated balance sheet at December 31, 2020 relate to contingent liabilities, primarily associated with the Company’s 2020 acquisition of Veloce Innovation, and a reserve for uncertain tax positions. For further information, refer to Footnotes 13 and 16, respectively. Revenue Recognition - Our revenue is comprised primarily of product and services sales where we act as principal to the transaction. All revenue is recognized when the Company satisfies its performance obligation(s) by transferring control/final benefit from the promised product or service to our customer. Due to the nature of our sales contracts, the majority of our revenue is recognized at a point in time. A performance obligation is a contractual promise to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. Revenue is recorded net of returns and allowances. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis. Shipping and handling costs are accounted for as a fulfillment obligation, on a net basis, and are included in cost of sales. See Note 2, Revenue Recognition, for additional accounting policies and transition disclosures. Research and Development - Research costs are charged to operations when incurred. Software development costs, including costs associated with developing software patterns, are expensed as incurred unless the Company incurred these expenses in the development of a new product or long-lived asset. Research and development costs were $143,568, $602,446, and $223,886 in the years ended December 31, 2020, 2019 and 2018 respectively. Advertising costs - Advertising costs are charged to operations when incurred. Advertising costs were $571,204, $908,585 and $572,218 in the years ended December 31, 2020, 2019 and 2018 respectively. Provisions and Warranties - We provide a warranty on our products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals as claims data experience warrant. The following table presents a summary of our warranty liabilities as of December 31, 2020 and 2019: 2020 2019 Warranty balance at beginning of period $ 65,591 $ 70,250 Warranties assumed in period 283,458 384,214 Payments (297,043) (388,873) Warranty balance at end of period $ 52,006 $ 65,591 Income Taxes - Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred and other tax assets and liabilities. Accumulated Other Comprehensive Income (Loss) (“AOCI”) - The Company reports comprehensive income (loss) that includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to expenses, gains and losses that are not included in net earnings. These amounts are also presented in the consolidated statements of comprehensive income. As of December 31, 2020, 2019 and 2018, respectively, AOCI relates to foreign currency translation adjustments. Earnings Per Share - Basic earnings per share amounts are calculated by dividing net income for the year attributable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net income attributable to common stockholders by the weighted average number of shares outstanding during the period plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential ordinary shares into common shares. Business Combinations - Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, over the fair value of the Company’s share of the identifiable net assets acquired is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are recognized as general and administrative expense as incurred. The Company evaluates the materiality of required disclosures related to our business combinations using quantitative and qualitative measures. Fair Value - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1: Valuation is based on observable inputs such as quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Valuation is based on inputs such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Valuation is based upon other unobservable inputs that are significant to the fair value measurement. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, “Leases” (“the new lease standard” or “ASC 842”), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new lease standard requirements were effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this standard effective January 1, 2019. In adopting this standard, the Company elected the package of practical expedients afforded thereby. This election allowed the Company, among other things, to carry forward prior lease classifications. Refer to Note 15 for additional information related to the adoption of this standard. Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held. As a smaller reporting company, ASU 2016-13 is effective for the Company beginning January 1, 2023 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenue from product and services sales are recognized when control of the goods is transferred to the customer which occurs at a point in time typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company does require payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the consolidated balance sheet and are included in accounts payable and accrued liabilities. See Note 9 of the Notes to our Consolidated Financial Statements for further information. As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under ASC 606 to omit disclosures regarding remaining performance obligations. The following table summarizes transactions included within contract liabilities for the years ended December 31, 2020, 2019 and 2018, respectively. Balance, December 31, 2017 $ 1,701,356 Revenue recognized related to payments included in the December 31, 2018 balance (1,701,356) Balance, Payments received for which performance obligations have not been satisfied 136,213 Effect of Foreign Currency Translation — Balance, December 31, 2018 $ 136,213 Revenue recognized related to payments included in the December 31, 2018 balance (115,670) Balance, Payments received for which performance obligations have not been satisfied 537,683 Effect of Foreign Currency Translation 1,006 Balance, December 31, 2019 $ 559,232 Revenue recognized related to payments included in the December 31, 2019 balance (529,268) Payments received for which performance obligations have not been satisfied 210,064 Effect of Foreign Currency Translation 4,809 Balance, December 31, 2020 $ 244,837 When the Company transfers goods or services to a customer, payment is due, subject to normal terms, and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient under ASC 606 to not adjust for the effects of a significant financing component. As such, these amounts are recorded as receivables and not contract assets. The table below sets forth the disaggregation of revenue by product category for the years ended December 31, 2020 2019 2018 Product Revenue Paint protection film $ 110,786,164 $ 97,341,865 $ 85,495,382 Window film 20,950,591 11,384,437 7,309,773 Other 4,525,312 3,478,437 2,721,195 Total 136,262,067 112,204,739 95,526,350 Service Revenue Software $ 3,489,348 $ 3,263,391 $ 2,566,960 Cutbank credits 7,784,554 7,253,610 6,197,250 Installation labor 10,925,525 6,620,527 5,211,633 Training 462,954 590,614 418,421 Total 22,662,381 17,728,142 14,394,264 Total $ 158,924,448 $ 129,932,881 $ 109,920,614 Because many of our international customers require us to ship their orders to freight forwarders located in the United States, we cannot be certain about the ultimate destination of the product. The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors: Twelve Months Ended 2020 2019 2018 United States $ 75,078,562 $ 60,452,238 $ 46,077,624 China 32,807,976 30,490,859 32,279,335 Canada 20,524,371 17,912,548 15,146,869 Continental Europe 12,772,441 7,419,524 5,734,925 United Kingdom 4,716,531 3,784,535 2,725,925 Asia Pacific 5,262,733 4,370,156 2,754,495 Latin America 2,274,341 2,098,873 1,799,180 Middle East/Africa 5,167,595 3,149,235 2,806,502 Other 319,898 254,913 595,759 Total $ 158,924,448 $ 129,932,881 $ 109,920,614 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: December 31, 2020 December 31, 2019 Furniture and fixtures $ 1,349,037 $ 1,168,894 Computer equipment 1,482,911 1,151,295 Vehicles 760,335 683,213 Equipment 1,955,254 1,648,656 Leasehold improvements 2,055,798 1,479,594 Plotters 1,282,630 839,455 Construction in Progress 321,764 306,100 Total property and equipment 9,207,729 7,277,207 Less: accumulated depreciation 4,501,481 3,262,554 Property and equipment, net $ 4,706,248 $ 4,014,653 Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $1,274,095, $915,918 and $735,983, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET Intangible assets consists of the following: December 31, 2020 December 31, 2019 Trademarks $ 373,374 $ 309,395 Software 2,598,985 2,288,062 Trade name 497,545 492,408 Contractual and customer relationships 5,043,915 3,010,480 Non-compete 458,536 268,459 Other 213,218 208,012 Total cost 9,185,573 6,576,816 Less: Accumulated amortization 3,761,593 2,756,356 Intangible assets, net $ 5,423,980 $ 3,820,460 Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $955,937, $781,105 and $642,801, respectively. Based on the carrying value of definite-lived intangible assets as of December 31, 2020, we estimate our future amortization expense will be as follows: 2021 $ 1,035,158 2022 947,587 2023 903,786 2024 774,585 2025 511,263 Thereafter $ 1,251,601 During the year ended December 31, 2019, the Company’s wholly-owned subsidiary, Protex Canada, sold a franchise territory to a new franchisee in Quebec. In connection with this arrangement, the |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following table summarizes changes in the carrying amounts of goodwill for the years ended December 31, 2020 and 2019: Balance at December 31, 2018 $ 2,322,788 Additions 44,584 Impairment (35,884) Foreign currency translation 75,024 Balance at December 31, 2019 $ 2,406,512 Balance at December 31, 2019 $ 2,406,512 Additions 1,938,656 Foreign currency translation 127,049 Balance at December 31, 2020 $ 4,472,217 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventory are summarized as follows: December 31, 2020 December 31, 2019 Film and film based products $ 20,170,756 $ 13,538,610 Other products 1,717,236 1,226,708 Packaging and supplies 589,225 496,661 Inventory reserve (113,091) (120,826) $ 22,364,126 $ 15,141,153 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT REVOLVING FACILITIES The Company has an $8,500,000 revolving line of credit to support its continuing working capital needs. The line of credit has a variable interest rate of the Wall Street Journal prime rate plus 1.00% with a floor of 3.50%, and it reaches maturity on June 5, 2022. This line of credit is secured by substantially all of the Company’s current and future assets.The interest rate was 3.50% and 5.50% as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, no balance was outstanding on this line. The credit agreement contains customary covenants including covenants relating to complying with applicable laws, delivery of financial statements, payment of taxes and maintaining insurance. The credit agreement also requires that XPEL must maintain certain debt coverage ratios, and it contains customary events of default including the failure to make payments of principal and interest, the breach of any covenants, the occurrence of a material adverse change, and certain bankruptcy and insolvency events. As of December 31, 2020 and 2019, the Company was in compliance with all debt covenants. XPEL Canada Corp., a wholly owned subsidiary of XPEL, Inc., also has a CAD $4,500,000 revolving line of credit agreement with HSBC Bank Canada to support its continuing working capital needs. The line has a variable interest rate of the HSBC Canada Bank’s prime rate plus 0.25%. The interest rate was 2.70% and 4.20% as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, no balance was outstanding on this line of credit. This facility is guaranteed by the Company. NOTES PAYABLE On May 11, 2020, the Company borrowed $6,000,000 pursuant to a 36-month term-loan with Texas Partners Bank. The term-loan bears interest at a rate of 3.5% per annum, requires monthly payments of principal and interest of $176,373 and matures in June 2023. As of December 31, 2020, $5,056,240 was outstanding under the term-loan. The term-loan is secured by a security interest in substantially all of our current and future assets. As part of its acquisition strategy, the Company uses a combination of cash and unsecured non-interest bearing promissory notes payable to fund its business acquisitions. The Company discounts the promissory note to fair value using market interest rates at the time of the acquisition. Notes payable are summarized as follows: Weighted Average Interest Rate Matures December 31, 2020 December 31, 2019 Term-loan 3.50% 2023 $ 5,056,240 $ — Face value of acquisition notes payable 3.02% 2023 $ 1,428,384 $ 806,867 Total face value of notes payable $ 6,484,624 $ 806,867 Unamortized discount $ (348,261) $ (37,360) Current portion $ (2,568,172) $ (462,226) Total long-term debt $ 3,568,191 $ 307,281 The approximate future principal payments on notes payable are as presented in the table below. 2021 $ 2,761,140 2022 2,549,623 2023 1,156,221 2024 16,283 2025 1,357 Thereafter — $ 6,484,624 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANThe Company sponsors defined contribution plans for substantially all employees. Annual Company contributions under the plans are discretionary. Company contribution expenses during the years ended December 31, 2020, 2019 and 2018 were $278,434, $174,744 and $124,431, respectively. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The following table presents significant accounts payable and accrued liability balances as of the periods ending: December 31, 2020 December 31, 2019 Trade payables $ 12,987,487 $ 7,440,965 Payroll liabilities 2,266,643 1,367,340 Contract liabilities 244,837 559,232 Other liabilities 1,298,495 829,816 $ 16,797,462 $ 10,197,353 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCKShares issued and outstanding at both December 31, 2020 and 2019 were 27,612,597. Par value of these shares for these same dates was $27,613. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | STOCK OPTIONS The Company’s 2020 Equity Incentive Plan was approved during the May 28, 2020 Annual Meeting of Stockholders. Under this plan, 275,000 shares of the Company’s Common Stock are reserved for issuance, as administered by the Company’s Compensation Committee. Awards may be granted to employees, consultants, or directors of the Company or any parent or subsidiary of the Company; provided that incentive stock options may be granted only to employees. If an award made under this plan expires, if it is terminated, surrendered, cancelled, or otherwise becomes unexercisable, or if an award is forfeit in whole or in part or is forfeited due to failure to vest, then the unpurchased shares under such award will become available for future grant under this plan. This plan allows for the bestowal of different types of awards. Stock options awarded under this plan must be at least equal to the fair market value of a share of our Common Stock on the date of the grant. Any option period will not exceed 10 years, except with respect to any participant who owns more than 10% of the voting power of all classes of stock of the Company. Restricted stock, RSUs, Performance Units and Performance Shares, and Other Share-based Awards may be granted at the discretion of the Compensation Committee according to terms and conditions set by the Compensation Committee, subject to the provisions of the 2020 Equity Incentive Plan. No awards were granted under the plan during years presented within this annual report. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. Financial instruments include cash and cash equivalents (Level 1), accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. The carrying value of the Company's long-term debt approximates fair value due to the interest rates being market rates. For discussion of the fair value measurements related to goodwill refer to Note 5, Goodwill, of the consolidated financial statements for periods ended December 31, 2020 and 2019, respectively. The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities (Level 2 inputs and valuation techniques). As more fully described in footnote 16, the Company incurred contingent liabilities in relation to the 2020 acquisition of Veloce Innovation. The payment of these liabilities is contingent on attainment of certain revenue performance metrics in future years. The fair value of these liabilities was determined using a Monte Carlo Simulation method based on the probability and timing of certain future payments related to these metrics. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy. Liabilities measured at December 31, 2020 and 2019 at fair value on a recurring basis are as follows: 2020 2019 Level 3: Contingent Liabilities $ 571,833 $ — Due to the timing of the Veloce acquisition on December 31, 2020, no changes to the initial valuation were recorded, and a presentation of changes during the year would contain no additional meaningful information. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes on which the provision for income taxes was computed is as follows: 2020 2019 2018 Domestic $ 20,546,504 $ 15,375,731 $ 10,008,013 International 2,257,855 1,574,697 1,473,292 Income before income taxes $ 22,804,359 $ 16,950,428 $ 11,481,305 The provision for income taxes differs from the United States federal statutory rate as follows: 2020 2019 2018 Income before income taxes $ 22,804,359 $ 16,950,428 $ 11,481,305 Statutory rate 21 % 21 % 21 % 4,788,915 3,559,590 2,411,074 State taxes net of federal benefit 295,097 31,446 183,468 Nondeductible/nontaxable items 49,252 115,679 — Foreign tax rate differential 101,625 45,994 81,474 Foreign derived intangible income benefit (703,328) (287,606) — Return to provision estimated revision (195,577) (358,986) — Other - net 186,684 (150,761) 84,057 Income tax expense $ 4,522,668 $ 2,955,356 $ 2,760,073 The foreign tax rate differential reflects the impact of the differences in our various international tax rates and our US statutory rate. The components of the income tax provision (benefit) are as follows: Years ended December 31 2020 2019 2018 Current Income Tax Expense Federal $ 3,572,812 $ 2,412,157 $ 2,182,415 Foreign 815,968 518,528 431,638 State 407,187 3,068 232,238 Total Current Income Tax Expense 4,795,967 2,933,753 2,846,291 Deferred Income Tax Expense/(Benefit) Federal (234,176) 99,870 (65,801) Foreign 13,854 (78,267) (20,417) State (52,977) — — Total Deferred Income Tax Expense/(Benefit) (273,299) 21,603 (86,218) Total $ 4,522,668 $ 2,955,356 $ 2,760,073 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income taxes are as follows: Years ended December 31 2020 2019 DEFERRED TAX ASSETS: Allowance for Doubtful Accounts $ 16,081 $ 31,073 263(A) Adjustment 59,852 31,427 Accrued Expenses 399,240 212 Inventory Reserve 25,436 9,725 Unrealized loss 37,432 6,282 State Tax Credit 103,350 27,867 NOL Carryforward and Other 160,883 162,005 Right of Use Lease Liability 1,280,737 1,046,467 Total deferred tax assets 2,083,011 1,315,058 DEFERRED TAX LIABILITIES: Fixed and Intangible Assets $ 1,399,311 $ 860,592 Unrealized Gain 15,150 12,713 Accretion 6,852 — Cumulative Translation Adjustment 9,436 — Right of Use Lease Asset 1,280,068 1,046,467 Total deferred tax liabilities 2,710,817 1,919,772 Total net deferred tax liabilities $ (627,806) $ (604,714) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company regularly assesses the likelihood that the deferred tax assets will be recovered from future taxable income. The Company considers projected future taxable income and ongoing tax planning strategies, then records a valuation allowance, if deemed necessary, to reduce the carrying value of the net deferred taxes to an amount that is more likely than not able to be realized. Based upon the Company’s assessment of all available evidence, including the previous two years of taxable income and loss after permanent items, estimates of future profitability, and the Company’s overall prospects of future business, the Company determined that it is more likely than not that the Company will realize all of its deferred tax assets in the future. The Company will continue to assess the potential realization of deferred tax assets on an annual basis, or an interim basis if circumstances warrant. If the Company’s actual results and updated projections vary significantly from the projections used as basis for this determination, the Company may need to change the valuation allowance against the gross deferred tax assets. The Company has net operating losses of approximately $0.8 million available to apply against future taxable income. These losses have no expiration date. The Company has state tax credits of $0.1 million available to apply against future taxable income. These credits begin to expire in 2039. Reconciliation of Unrecognized Tax Benefits from Uncertain Tax Positions Years Ended December 31, 2020 2019 2018 Beginning unrecognized tax benefits $ — $ — $ — Increase related to tax positions of the current year — — — Increase related tax positions of prior years 129,082 — — Lapse of statute of limitations — — — Audit Settlements — — — Ending unrecognized tax benefits $ 129,082 $ — $ — The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely upon its technical merits at the reporting date. The unrecognized tax benefit is the difference between the tax benefit recognized and the tax benefit claimed on the Company’s income tax return. The Company recognized a previously unrecognized tax benefit during the year ended December 31, 2020 in the amount of approximately $0.2 million related to an uncertain tax position in one of its foreign subsidiaries. This amount includes an estimate for interest and penalties. The liability is reflected in other long term liabilities on the Company’s balance sheet. The Company does not expect any changes to this position in the next twelve months. The unrecognized tax benefits in the table above includes $0.1 million as of December 31, 2020, that, if recognized, would have impacted income tax expense. The Company believes that all material tax positions in the current and prior years have been analyzed and properly accounted for and that the risk of additional material uncertain tax positions that have not been identified is remote. The Compan y plans to indefinitely reinvest foreign earnings and does not expect to repatriate earnings for the foreseeable future. Determination of the amount of unrecognized deferred tax liabilities related to investment in these foreign subsidiaries is not practicable. The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company is still subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years 2013 and after. There are no ongoing or pending IRS, state or foreign examinations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES CONTINGENCIES In the ordinary course of business activities, the Company may be contingently liable for litigation and claims with customers, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts where required. Management also has determined that the likelihood of any litigation and claims having a material impact on our results of operations, cash flows or financial position is remote. See Note 16 of the Notes to our Consolidated Financial Statements for further information. SUPPLY AGREEMENT Through our Amended and Restated Supply Agreement that we entered into with our primary supplier in March 2017 and renewed in March 2020, we have exclusive rights to commercialize, market, distribute and sell its automotive aftermarket products through March 21, 2022, which term automatically renews for successive two notice. During such term, we have agreed to use commercially reasonable efforts to purchase a minimum of $5,000,000 of products quarterly from this principal supplier of paint protection film products, with a yearly minimum purchasing requirement of $20,000,000. OTHER COMMITMENTS |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES We lease space under non-cancelable operating leases for office space, warehouse facilities, and installation locations. We also lease vehicles and equipment to support our global operations. We have elected the practical expedient to combine lease and non-lease components. We have also elected to adopt the package of practical expedients that allow us not to reassess whether expired leases are or contain leases, not to reassess the lease classification of existing leases, and not to reassess initial direct costs for existing leases. Some of our leases contain options to renew. The exercise of lease renewals is at our sole discretion; therefore, the renewals to extend the lease terms are not included in our ROU assets as it is not reasonably certain that they will be exercised. We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. Balance sheet information related to operating leases is as follows: December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 5,973,702 $ 5,079,110 Current portion of operating lease liabilities 1,650,749 1,126,701 Noncurrent portion of operating lease liabilities 4,331,214 4,009,949 Total operating lease liabilities $ 5,981,963 $ 5,136,650 We had operating lease expense of $1,515,848 and $1,210,969, respectively, for the years ended December 31, 2020 and 2019. For the year ended December 31, 2018, rent expense related to operating leases accounted for under the prior lease standard was approximately $1,209,208. Variable lease payments, short-term lease expenses, and cash payments on leases subject to the accounting treatment described above in Note 1 were $234,175, $513,016 and $1,460,422, respectively, for the year ended December 31, 2020. For the year ended December 31, 2019, these same costs were $492,771, $157,253, and $1,235,264, respectively. Weighted-average information associated with the measurement of our remaining operating lease obligations is as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years) 4.9 5.6 Weighted-average discount rate 5.84 % 5.84 % The following table summarizes the maturity of our operating lease liabilities as of December 31, 2020: 2021 $ 1,702,807 2022 1,620,862 2023 1,426,574 2024 762,478 2025 415,216 Thereafter 990,187 Total operating lease payments 6,918,124 Less: interest (936,161) Total operating lease liabilities $ 5,981,963 |
ACQUISITION OF BUSINESS
ACQUISITION OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations And Asset Acquisitions [Abstract] | |
ACQUISITION OF BUSINESS | ACQUISITION OF BUSINESSES The Company completed the following acquisitions during the years ended December 31, 2020, 2019 and 2018: Acquisition Date Name/Location/Description Purchase Price Acquisition Type Acquisition Purpose December 31, 2020 Veloce Innovation, Houston, Texas, United States, Window film installation business $ 1,441,000 Asset Purchase Local market expansion October 30, 2020 France Auto Racing, Dijon, France, Paint protection film distributor $ 329,390 Asset Purchase Local market expansion February 1, 2020 Protex Centre, Laval, Quebec, Canada - Paint protection installation shop $ 2,475,270 Share Purchase Local market expansion December 20, 2019 Paintshield, Ltd., Salisbury, Wiltshire, United Kingdom - Paint protection and window film installation shop $ 127,623 Asset Purchase Local market expansion November 1, 2018 Apogee, Corp., Yilan City, Yilan County, Taiwan - Paint protection and window film distributor $ 638,552 Share Purchase Local market expansion August 1, 2018 9846905 Canada, Inc., Calgary, Alberta, Canada - Paint protection and window film installation shop $ 332,798 Share Purchase Local market expansion August 1, 2018 9341-9182 Quebec, Inc., Pointe Claire, Quebec, Canada - Paint protection and window film installation shop $ 363,239 Share Purchase Local market expansion June 1, 2018 eShields, LLC, La Verne, CA, USA - Antimicrobial film distributor $ 496,982 Asset Purchase Product line expansion April 1, 2018 9352-4692 Quebec, Inc. Quebec City, Quebec, Canada - Paint protection and window film installation shop $ 87,248 Share Purchase Local market expansion The total purchase price for acquisitions completed during the years ended December 31, 2020, 2019 and 2018 are as follows: December 31, 2020 2019 2018 2020 Acquisitions 2019 Acquisitions 2018 Acquisitions Purchase Price Cash $ 2,811,346 $ 127,623 $ 831,934 Promissory note 893,314 — 998,668 Contingent consideration 541,000 — — Forgiveness of debt — — 88,216 $ 4,245,660 $ 127,623 $ 1,918,818 Allocation Cash $ 242,808 $ — $ 41,407 Accounts receivable 206,808 — 155,434 Inventory 182,336 — 494,663 Prepaid expenses and other assets 3,764 — 78,631 Other long-term assets 6,197 — — Property and equipment 161,702 5,038 167,622 Right-of-use lease assets 587,587 — — Software 1,027 — — Trade name — 25,918 — Acquired patterns — 52,083 — Customer relationships 1,896,220 — 609,751 Non-compete 179,093 — — Goodwill 1,938,656 44,584 576,173 Current portion of lease liabilities (73,297) — — Accounts payable and accrued liabilities (154,802) — (204,863) Non-current portion of lease liabilities (514,290) — — Assumed debt (108,764) — — Deferred tax liability (274,333) — — Taxes payable (35,052) — — $ 4,245,660 $ 127,623 $ 1,918,818 Intangible assets acquired in 2020 have a weighted average useful life of 9 years. Intangible assets acquired in 2019 have a weighted average useful life of 2 years. Intangible assets acquired in 2018 have a weighted average useful life of 9 years. Goodwill for these acquisitions relates to the expansion into new geographical areas. The goodwill also represents the acquired employee knowledge of the various markets, distribution knowledge by the employees of the acquired businesses, as well as the expected synergies resulting from the acquisitions. Goodwill and other intangibles acquired in taxable asset purchases are analyzed for allowable amortization for tax purposes over appropriate periods as prescribed by applicable regulatory jurisdictions. Acquisition costs incurred related to these acquisitions were immaterial and were included in selling, general and administrative expenses. The acquired companies were consolidated into our financial statements on their respective acquisition dates. The aggregate revenue and operating income of our 2020 acquisitions consolidated into our 2020 consolidated financial statements from the respective dates of acquisition were $3,816,509 and $1,125,311, respectively. Due to the timing of the transaction, the aggregate revenue and operating income of the Veloce Innovation and Paintshield acquisitions were immaterial to our 2020 and 2019 consolidated financial statements, respectively. The aggregate revenue and operating income of our 2018 acquisitions consolidated into our 2018 consolidated financial statements from the respective dates of acquisition were $613,701 and $43,030, respectively. The following unaudited financial information presents our results, including the estimated expenses relating to the amortization of intangibles purchased, as if the acquisitions during the years ended December 31, 2020 had occurred on January 1, 2019: Twelve Months Ended December 31, 2020 (Unaudited) 2019 (Unaudited) Revenue $ 160,746,877 $ 133,400,046 Net income $ 18,274,591 $ 13,927,429 The pro forma unaudited results do not purport to be indicative of the results which would have been obtained had the acquisition been completed as of the beginning of the earliest period presented or of results that may be obtained in the future. In addition, they do not include any benefits that may result from the acquisition due to synergies that may be derived from the elimination of any duplicative costs. On February 1, 2020, the Company acquired the remaining 15% minority interest in XPEL, Ltd., the subsidiary of the Company operating in the United Kingdom, for a purchase price of £600,000, or $762,479. This purchase is reflected in the Consolidated Statement of Changes in Stockholders' Equity. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The consolidated financial statements are prepared in conformity with GAAP and include the accounts of the Company and its wholly-owned or majority-owned subsidiaries. The ownership interest of non-controlling participants in subsidiaries that are not wholly-owned is included as a separate component of stockholders’ equity. The non-controlling participants’ share of the net income is included as “Income attributable to non-controlling interest” on the Consolidated Statements of Income and Comprehensive Income. Intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to conform to the current year presentation. |
Segment Reporting | Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results as a whole on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment. |
Use of Estimates | Use of Estimates - The preparation of these consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions. |
Foreign Currency Translation | Foreign Currency Translation - The financial statements of subsidiaries located outside of the U.S. are generally measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date. Income and expense items are translated at average monthly rates of exchange. The resultant translation adjustments are included in accumulated other comprehensive income, a separate component of stockholders’ equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. The balance, at times, may exceed federally insured limits. |
Accounts Receivable | Accounts Receivable - Accounts receivable are shown net of an allowance for doubtful accounts of $90,844 and $182,488 as of December 31, 2020 and 2019, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. |
Inventory | Inventory - Inventory is comprised of film, film-based products, film installation support products, and supplies which are valued at lower of cost or net realizable value, with cost determined on a weighted average cost basis. |
Property, Plant and Equipment | Property, Plant and Equipment - Property and equipment are recorded at cost, except property and equipment acquired in connection with the Company’s business combinations, which are recorded at fair value on the date of acquisition. Expenditures which improve or extend the life of the respective assets are capitalized, whereas expenditures for normal repairs and maintenance are charged to operations as incurred. |
Goodwill | Goodwill - Goodwill represents the excess purchase price over the fair value of tangible net assets acquired in business combinations after amounts have been allocated to intangible assets. Goodwill is tested for impairment at the reporting unit level on an annual basis (at December 31) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. |
Intangible Assets | Intangible Assets - Intangible assets consist primarily of software, customer relationships, trademarks and non-compete agreements. These assets are amortized on a straight-line basis over the period of time in which their expected benefits will be realized. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets - The Company reviews and evaluates long-lived assets for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. When the undiscounted expected future cash flows are not sufficient to recover an asset’s carrying amount, the fair value is compared to the carrying value to determine the impairment loss to be recorded. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value, less the cost to sell. Fair values are determined by independent appraisals or expected sales prices based upon market participant data developed by third party professionals or by internal licensed real estate professionals. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of operations. These estimates project cash flows several years into the future and are affected by changes in the economy, real estate market conditions and inflation. |
Revenue Recognition | Revenue Recognition - Our revenue is comprised primarily of product and services sales where we act as principal to the transaction. All revenue is recognized when the Company satisfies its performance obligation(s) by transferring control/final benefit from the promised product or service to our customer. Due to the nature of our sales contracts, the majority of our revenue is recognized at a point in time. A performance obligation is a contractual promise to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. Revenue is recorded net of returns and allowances. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis. Shipping and handling costs are accounted for as a fulfillment obligation, on a net basis, and are included in cost of sales. See Note 2, Revenue Recognition, for additional accounting policies and transition disclosures. Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenue from product and services sales are recognized when control of the goods is transferred to the customer which occurs at a point in time typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. |
Research and Development | Research and Development - Research costs are charged to operations when incurred. Software development costs, including costs associated with developing software patterns, are expensed as incurred unless the Company incurred these expenses in the development of a new product or long-lived asset. |
Advertising Costs | Advertising costs - Advertising costs are charged to operations when incurred. |
Provisions and Warranties | Provisions and Warranties - We provide a warranty on our products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals as claims data experience warrant. |
Income Taxes | Income Taxes - Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred and other tax assets and liabilities. |
Accumulated Other Comprehensive Income (Loss) (AOCI) | Accumulated Other Comprehensive Income (Loss) (“AOCI”) - The Company reports comprehensive income (loss) that includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to expenses, gains and losses that are not included in net earnings. These amounts are also presented in the consolidated statements of comprehensive income. As of December 31, 2020, 2019 and 2018, |
Earnings Per Share | Earnings Per Share - Basic earnings per share amounts are calculated by dividing net income for the year attributable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net income attributable to common stockholders by the weighted average number of shares outstanding during the period plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential ordinary shares into common shares. |
Business Combinations | Business Combinations - Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, over the fair value of the Company’s share of the identifiable net assets acquired is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are recognized as general and administrative expense as incurred. The Company evaluates the materiality of required disclosures related to our business combinations using quantitative and qualitative measures. |
Fair Value | Fair Value - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1: Valuation is based on observable inputs such as quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Valuation is based on inputs such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Valuation is based upon other unobservable inputs that are significant to the fair value measurement. ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. Financial instruments include cash and cash equivalents (Level 1), accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. The carrying value of the Company's long-term debt approximates fair value due to the interest rates being market rates. For discussion of the fair value measurements related to goodwill refer to Note 5, Goodwill, of the consolidated financial statements for periods ended December 31, 2020 and 2019, respectively. The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities (Level 2 inputs and valuation techniques). As more fully described in footnote 16, the Company incurred contingent liabilities in relation to the 2020 acquisition of Veloce Innovation. The payment of these liabilities is contingent on attainment of certain revenue performance metrics in future years. The fair value of these liabilities was determined using a Monte Carlo Simulation method based on the probability and timing of certain future payments related to these metrics. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy. Liabilities measured at December 31, 2020 and 2019 at fair value on a recurring basis are as follows: 2020 2019 Level 3: Contingent Liabilities $ 571,833 $ — Due to the timing of the Veloce acquisition on December 31, 2020, no changes to the initial valuation were recorded, and a presentation of changes during the year would contain no additional meaningful information. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Issued and Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, “Leases” (“the new lease standard” or “ASC 842”), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new lease standard requirements were effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this standard effective January 1, 2019. In adopting this standard, the Company elected the package of practical expedients afforded thereby. This election allowed the Company, among other things, to carry forward prior lease classifications. Refer to Note 15 for additional information related to the adoption of this standard. Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held. As a smaller reporting company, ASU 2016-13 is effective for the Company beginning January 1, 2023 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Ownership Interests and Functional Currencies | The ownership percentages and functional currencies of the entities included in these consolidated financial statements are as follows: Subsidiaries Functional Currency % Owned by XPEL, Inc. XPEL, Ltd. UK Pound Sterling 100 % Armourfend CAD, LLC U.S. Dollar 100 % XPEL Canada Corp. Canadian Dollar 100 % XPEL B.V. Euro 100 % XPEL Germany GmbH Euro 100 % XPEL de Mexico S. de R.L. de C.V. Peso 100 % XPEL Acquisition Corp. Canadian Dollar 100 % Protex Canada, Inc. Canadian Dollar 100 % Apogee Corp. New Taiwan Dollar 100 % XPEL Slovakia Euro 100 % XPEL France Euro 100 % |
Schedules of Property, Plant and Equipment | Depreciation expense is computed using the straight-line method as follows: Furniture and fixtures 5 years Computer equipment 3-4 years Vehicles 5 years Equipment 5-8 years Leasehold improvements shorter of lease term or estimated useful life Plotters 4 years The following table presents geographic property, plant and equipment, net by region as of December 31: 2020 2019 United States $ 3,110,979 $ 2,410,737 Canada 674,821 519,066 Europe 584,084 679,112 Other 336,364 405,738 Consolidated $ 4,706,248 $ 4,014,653 Property and equipment consists of the following: December 31, 2020 December 31, 2019 Furniture and fixtures $ 1,349,037 $ 1,168,894 Computer equipment 1,482,911 1,151,295 Vehicles 760,335 683,213 Equipment 1,955,254 1,648,656 Leasehold improvements 2,055,798 1,479,594 Plotters 1,282,630 839,455 Construction in Progress 321,764 306,100 Total property and equipment 9,207,729 7,277,207 Less: accumulated depreciation 4,501,481 3,262,554 Property and equipment, net $ 4,706,248 $ 4,014,653 |
Schedule of Goodwill | The following table presents geographic Goodwill by region as of December 31: 2020 2019 United States $ 1,246,383 $ 617,334 Canada 3,137,153 1,740,884 Other 88,681 48,294 Consolidated $ 4,472,217 $ 2,406,512 The following table summarizes changes in the carrying amounts of goodwill for the years ended December 31, 2020 and 2019: Balance at December 31, 2018 $ 2,322,788 Additions 44,584 Impairment (35,884) Foreign currency translation 75,024 Balance at December 31, 2019 $ 2,406,512 Balance at December 31, 2019 $ 2,406,512 Additions 1,938,656 Foreign currency translation 127,049 Balance at December 31, 2020 $ 4,472,217 |
Schedules of Intangible Assets | The following table presents geographic intangible assets, net by region as of December 31: 2020 2019 United States $ 2,597,670 $ 2,074,235 Canada 2,273,627 1,431,247 Europe 337,282 81,612 Other 215,401 233,366 Consolidated $ 5,423,980 $ 3,820,460 The following table presents the anticipated useful lives of intangible assets: Trademarks 10 years Software 5 years Trade name 10-15 years Contractual and customer relationships 9-10 years Non-compete 3-5 years Other 10 years Intangible assets consists of the following: December 31, 2020 December 31, 2019 Trademarks $ 373,374 $ 309,395 Software 2,598,985 2,288,062 Trade name 497,545 492,408 Contractual and customer relationships 5,043,915 3,010,480 Non-compete 458,536 268,459 Other 213,218 208,012 Total cost 9,185,573 6,576,816 Less: Accumulated amortization 3,761,593 2,756,356 Intangible assets, net $ 5,423,980 $ 3,820,460 |
Schedule of Product Warranty Liability | The following table presents a summary of our warranty liabilities as of December 31, 2020 and 2019: 2020 2019 Warranty balance at beginning of period $ 65,591 $ 70,250 Warranties assumed in period 283,458 384,214 Payments (297,043) (388,873) Warranty balance at end of period $ 52,006 $ 65,591 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Transactions Within Contract Liabilities | The following table summarizes transactions included within contract liabilities for the years ended December 31, 2020, 2019 and 2018, respectively. Balance, December 31, 2017 $ 1,701,356 Revenue recognized related to payments included in the December 31, 2018 balance (1,701,356) Balance, Payments received for which performance obligations have not been satisfied 136,213 Effect of Foreign Currency Translation — Balance, December 31, 2018 $ 136,213 Revenue recognized related to payments included in the December 31, 2018 balance (115,670) Balance, Payments received for which performance obligations have not been satisfied 537,683 Effect of Foreign Currency Translation 1,006 Balance, December 31, 2019 $ 559,232 Revenue recognized related to payments included in the December 31, 2019 balance (529,268) Payments received for which performance obligations have not been satisfied 210,064 Effect of Foreign Currency Translation 4,809 Balance, December 31, 2020 $ 244,837 |
Disaggregation of Revenue | The table below sets forth the disaggregation of revenue by product category for the years ended December 31, 2020 2019 2018 Product Revenue Paint protection film $ 110,786,164 $ 97,341,865 $ 85,495,382 Window film 20,950,591 11,384,437 7,309,773 Other 4,525,312 3,478,437 2,721,195 Total 136,262,067 112,204,739 95,526,350 Service Revenue Software $ 3,489,348 $ 3,263,391 $ 2,566,960 Cutbank credits 7,784,554 7,253,610 6,197,250 Installation labor 10,925,525 6,620,527 5,211,633 Training 462,954 590,614 418,421 Total 22,662,381 17,728,142 14,394,264 Total $ 158,924,448 $ 129,932,881 $ 109,920,614 |
Revenue Estimate by Geographic Areas | The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors: Twelve Months Ended 2020 2019 2018 United States $ 75,078,562 $ 60,452,238 $ 46,077,624 China 32,807,976 30,490,859 32,279,335 Canada 20,524,371 17,912,548 15,146,869 Continental Europe 12,772,441 7,419,524 5,734,925 United Kingdom 4,716,531 3,784,535 2,725,925 Asia Pacific 5,262,733 4,370,156 2,754,495 Latin America 2,274,341 2,098,873 1,799,180 Middle East/Africa 5,167,595 3,149,235 2,806,502 Other 319,898 254,913 595,759 Total $ 158,924,448 $ 129,932,881 $ 109,920,614 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedules of Property, Plant and Equipment | Depreciation expense is computed using the straight-line method as follows: Furniture and fixtures 5 years Computer equipment 3-4 years Vehicles 5 years Equipment 5-8 years Leasehold improvements shorter of lease term or estimated useful life Plotters 4 years The following table presents geographic property, plant and equipment, net by region as of December 31: 2020 2019 United States $ 3,110,979 $ 2,410,737 Canada 674,821 519,066 Europe 584,084 679,112 Other 336,364 405,738 Consolidated $ 4,706,248 $ 4,014,653 Property and equipment consists of the following: December 31, 2020 December 31, 2019 Furniture and fixtures $ 1,349,037 $ 1,168,894 Computer equipment 1,482,911 1,151,295 Vehicles 760,335 683,213 Equipment 1,955,254 1,648,656 Leasehold improvements 2,055,798 1,479,594 Plotters 1,282,630 839,455 Construction in Progress 321,764 306,100 Total property and equipment 9,207,729 7,277,207 Less: accumulated depreciation 4,501,481 3,262,554 Property and equipment, net $ 4,706,248 $ 4,014,653 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedules of Intangible Assets | The following table presents geographic intangible assets, net by region as of December 31: 2020 2019 United States $ 2,597,670 $ 2,074,235 Canada 2,273,627 1,431,247 Europe 337,282 81,612 Other 215,401 233,366 Consolidated $ 5,423,980 $ 3,820,460 The following table presents the anticipated useful lives of intangible assets: Trademarks 10 years Software 5 years Trade name 10-15 years Contractual and customer relationships 9-10 years Non-compete 3-5 years Other 10 years Intangible assets consists of the following: December 31, 2020 December 31, 2019 Trademarks $ 373,374 $ 309,395 Software 2,598,985 2,288,062 Trade name 497,545 492,408 Contractual and customer relationships 5,043,915 3,010,480 Non-compete 458,536 268,459 Other 213,218 208,012 Total cost 9,185,573 6,576,816 Less: Accumulated amortization 3,761,593 2,756,356 Intangible assets, net $ 5,423,980 $ 3,820,460 |
Schedule of Future Amortization Expense of Finite-Lived Intangible Assets | Based on the carrying value of definite-lived intangible assets as of December 31, 2020, we estimate our future amortization expense will be as follows: 2021 $ 1,035,158 2022 947,587 2023 903,786 2024 774,585 2025 511,263 Thereafter $ 1,251,601 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents geographic Goodwill by region as of December 31: 2020 2019 United States $ 1,246,383 $ 617,334 Canada 3,137,153 1,740,884 Other 88,681 48,294 Consolidated $ 4,472,217 $ 2,406,512 The following table summarizes changes in the carrying amounts of goodwill for the years ended December 31, 2020 and 2019: Balance at December 31, 2018 $ 2,322,788 Additions 44,584 Impairment (35,884) Foreign currency translation 75,024 Balance at December 31, 2019 $ 2,406,512 Balance at December 31, 2019 $ 2,406,512 Additions 1,938,656 Foreign currency translation 127,049 Balance at December 31, 2020 $ 4,472,217 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory are summarized as follows: December 31, 2020 December 31, 2019 Film and film based products $ 20,170,756 $ 13,538,610 Other products 1,717,236 1,226,708 Packaging and supplies 589,225 496,661 Inventory reserve (113,091) (120,826) $ 22,364,126 $ 15,141,153 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable are summarized as follows: Weighted Average Interest Rate Matures December 31, 2020 December 31, 2019 Term-loan 3.50% 2023 $ 5,056,240 $ — Face value of acquisition notes payable 3.02% 2023 $ 1,428,384 $ 806,867 Total face value of notes payable $ 6,484,624 $ 806,867 Unamortized discount $ (348,261) $ (37,360) Current portion $ (2,568,172) $ (462,226) Total long-term debt $ 3,568,191 $ 307,281 |
Schedule of Maturities of Long-term Debt | The approximate future principal payments on notes payable are as presented in the table below. 2021 $ 2,761,140 2022 2,549,623 2023 1,156,221 2024 16,283 2025 1,357 Thereafter — $ 6,484,624 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table presents significant accounts payable and accrued liability balances as of the periods ending: December 31, 2020 December 31, 2019 Trade payables $ 12,987,487 $ 7,440,965 Payroll liabilities 2,266,643 1,367,340 Contract liabilities 244,837 559,232 Other liabilities 1,298,495 829,816 $ 16,797,462 $ 10,197,353 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | Liabilities measured at December 31, 2020 and 2019 at fair value on a recurring basis are as follows: 2020 2019 Level 3: Contingent Liabilities $ 571,833 $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | Income before income taxes on which the provision for income taxes was computed is as follows: 2020 2019 2018 Domestic $ 20,546,504 $ 15,375,731 $ 10,008,013 International 2,257,855 1,574,697 1,473,292 Income before income taxes $ 22,804,359 $ 16,950,428 $ 11,481,305 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the United States federal statutory rate as follows: 2020 2019 2018 Income before income taxes $ 22,804,359 $ 16,950,428 $ 11,481,305 Statutory rate 21 % 21 % 21 % 4,788,915 3,559,590 2,411,074 State taxes net of federal benefit 295,097 31,446 183,468 Nondeductible/nontaxable items 49,252 115,679 — Foreign tax rate differential 101,625 45,994 81,474 Foreign derived intangible income benefit (703,328) (287,606) — Return to provision estimated revision (195,577) (358,986) — Other - net 186,684 (150,761) 84,057 Income tax expense $ 4,522,668 $ 2,955,356 $ 2,760,073 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax provision (benefit) are as follows: Years ended December 31 2020 2019 2018 Current Income Tax Expense Federal $ 3,572,812 $ 2,412,157 $ 2,182,415 Foreign 815,968 518,528 431,638 State 407,187 3,068 232,238 Total Current Income Tax Expense 4,795,967 2,933,753 2,846,291 Deferred Income Tax Expense/(Benefit) Federal (234,176) 99,870 (65,801) Foreign 13,854 (78,267) (20,417) State (52,977) — — Total Deferred Income Tax Expense/(Benefit) (273,299) 21,603 (86,218) Total $ 4,522,668 $ 2,955,356 $ 2,760,073 |
Schedule of Deferred Tax Assets (Liabilities) | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income taxes are as follows: Years ended December 31 2020 2019 DEFERRED TAX ASSETS: Allowance for Doubtful Accounts $ 16,081 $ 31,073 263(A) Adjustment 59,852 31,427 Accrued Expenses 399,240 212 Inventory Reserve 25,436 9,725 Unrealized loss 37,432 6,282 State Tax Credit 103,350 27,867 NOL Carryforward and Other 160,883 162,005 Right of Use Lease Liability 1,280,737 1,046,467 Total deferred tax assets 2,083,011 1,315,058 DEFERRED TAX LIABILITIES: Fixed and Intangible Assets $ 1,399,311 $ 860,592 Unrealized Gain 15,150 12,713 Accretion 6,852 — Cumulative Translation Adjustment 9,436 — Right of Use Lease Asset 1,280,068 1,046,467 Total deferred tax liabilities 2,710,817 1,919,772 Total net deferred tax liabilities $ (627,806) $ (604,714) |
Schedule of Unrecognized Tax Benefits Roll Forward | Reconciliation of Unrecognized Tax Benefits from Uncertain Tax Positions Years Ended December 31, 2020 2019 2018 Beginning unrecognized tax benefits $ — $ — $ — Increase related to tax positions of the current year — — — Increase related tax positions of prior years 129,082 — — Lapse of statute of limitations — — — Audit Settlements — — — Ending unrecognized tax benefits $ 129,082 $ — $ — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information Related To Leases | Balance sheet information related to operating leases is as follows: December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 5,973,702 $ 5,079,110 Current portion of operating lease liabilities 1,650,749 1,126,701 Noncurrent portion of operating lease liabilities 4,331,214 4,009,949 Total operating lease liabilities $ 5,981,963 $ 5,136,650 |
Schedule of Weighted Average Remaining Lease Term and Discount Rate Information | Weighted-average information associated with the measurement of our remaining operating lease obligations is as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years) 4.9 5.6 Weighted-average discount rate 5.84 % 5.84 % |
Schedule of Maturities of Operating Lease Liabilities | The following table summarizes the maturity of our operating lease liabilities as of December 31, 2020: 2021 $ 1,702,807 2022 1,620,862 2023 1,426,574 2024 762,478 2025 415,216 Thereafter 990,187 Total operating lease payments 6,918,124 Less: interest (936,161) Total operating lease liabilities $ 5,981,963 |
ACQUISITION OF BUSINESS (Tables
ACQUISITION OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations And Asset Acquisitions [Abstract] | |
Business Combination Completed by Year-end | The Company completed the following acquisitions during the years ended December 31, 2020, 2019 and 2018: Acquisition Date Name/Location/Description Purchase Price Acquisition Type Acquisition Purpose December 31, 2020 Veloce Innovation, Houston, Texas, United States, Window film installation business $ 1,441,000 Asset Purchase Local market expansion October 30, 2020 France Auto Racing, Dijon, France, Paint protection film distributor $ 329,390 Asset Purchase Local market expansion February 1, 2020 Protex Centre, Laval, Quebec, Canada - Paint protection installation shop $ 2,475,270 Share Purchase Local market expansion December 20, 2019 Paintshield, Ltd., Salisbury, Wiltshire, United Kingdom - Paint protection and window film installation shop $ 127,623 Asset Purchase Local market expansion November 1, 2018 Apogee, Corp., Yilan City, Yilan County, Taiwan - Paint protection and window film distributor $ 638,552 Share Purchase Local market expansion August 1, 2018 9846905 Canada, Inc., Calgary, Alberta, Canada - Paint protection and window film installation shop $ 332,798 Share Purchase Local market expansion August 1, 2018 9341-9182 Quebec, Inc., Pointe Claire, Quebec, Canada - Paint protection and window film installation shop $ 363,239 Share Purchase Local market expansion June 1, 2018 eShields, LLC, La Verne, CA, USA - Antimicrobial film distributor $ 496,982 Asset Purchase Product line expansion April 1, 2018 9352-4692 Quebec, Inc. Quebec City, Quebec, Canada - Paint protection and window film installation shop $ 87,248 Share Purchase Local market expansion |
Acquisition Purchase Price | The total purchase price for acquisitions completed during the years ended December 31, 2020, 2019 and 2018 are as follows: December 31, 2020 2019 2018 2020 Acquisitions 2019 Acquisitions 2018 Acquisitions Purchase Price Cash $ 2,811,346 $ 127,623 $ 831,934 Promissory note 893,314 — 998,668 Contingent consideration 541,000 — — Forgiveness of debt — — 88,216 $ 4,245,660 $ 127,623 $ 1,918,818 Allocation Cash $ 242,808 $ — $ 41,407 Accounts receivable 206,808 — 155,434 Inventory 182,336 — 494,663 Prepaid expenses and other assets 3,764 — 78,631 Other long-term assets 6,197 — — Property and equipment 161,702 5,038 167,622 Right-of-use lease assets 587,587 — — Software 1,027 — — Trade name — 25,918 — Acquired patterns — 52,083 — Customer relationships 1,896,220 — 609,751 Non-compete 179,093 — — Goodwill 1,938,656 44,584 576,173 Current portion of lease liabilities (73,297) — — Accounts payable and accrued liabilities (154,802) — (204,863) Non-current portion of lease liabilities (514,290) — — Assumed debt (108,764) — — Deferred tax liability (274,333) — — Taxes payable (35,052) — — $ 4,245,660 $ 127,623 $ 1,918,818 |
Pro Forma Results | The following unaudited financial information presents our results, including the estimated expenses relating to the amortization of intangibles purchased, as if the acquisitions during the years ended December 31, 2020 had occurred on January 1, 2019: Twelve Months Ended December 31, 2020 (Unaudited) 2019 (Unaudited) Revenue $ 160,746,877 $ 133,400,046 Net income $ 18,274,591 $ 13,927,429 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Ownership Percentages and Functional Currencies (Details) | Dec. 31, 2020 |
XPEL, Ltd. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
Armourfend CAD, LLC | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL Canada Corp. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL B.V. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL Germany GmbH | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL de Mexico S. de R.L. de C.V. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL Acquisition Corp. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
Protex Canada, Inc. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
Apogee Corp. | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL Slovakia | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
XPEL France | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Allowance for doubtful accounts | $ 90,844 | $ 182,488 |
Accounts Receivable | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 24.70% | 18.80% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Inventory reserve | $ (113,091) | $ (120,826) |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 4,706,248 | $ 4,014,653 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 3,110,979 | 2,410,737 |
Canada | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 674,821 | 519,066 |
Europe | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 584,084 | 679,112 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 336,364 | $ 405,738 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 5 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 5 years | |
Plotters | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 4 years | |
Minimum | Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 3 years | |
Minimum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 5 years | |
Maximum | Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 4 years | |
Maximum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful life | 8 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)installation_location | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | |||
Number of locations closed | installation_location | 1 | ||
Goodwill | $ 2,406,512 | $ 4,472,217 | $ 2,322,788 |
United States | |||
Goodwill [Line Items] | |||
Goodwill | 617,334 | 1,246,383 | |
Canada | |||
Goodwill [Line Items] | |||
Goodwill | 1,740,884 | 3,137,153 | |
Other | |||
Goodwill [Line Items] | |||
Goodwill | $ 48,294 | $ 88,681 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 5,423,980 | $ 3,820,460 |
United States | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 2,597,670 | 2,074,235 |
Canada | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 2,273,627 | 1,431,247 |
Europe | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 337,282 | 81,612 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 215,401 | $ 233,366 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 10 years | |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 5 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 10 years | |
Minimum | Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 10 years | |
Minimum | Contractual and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 9 years | |
Minimum | Non-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 3 years | |
Maximum | Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 15 years | |
Maximum | Contractual and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 10 years | |
Maximum | Non-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 5 years |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Impairment of Long-Lived Assets (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)installation_location | |
Accounting Policies [Abstract] | ||
Number of locations closed | installation_location | 1 | |
Impairment loss of intangible assets, excluding goodwill | $ | $ 0 | $ 30,480 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Research and development expense | $ 143,568 | $ 602,446 | $ 223,886 |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 571,204 | $ 908,585 | $ 572,218 |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance warranty liability | $ 65,591 | $ 70,250 |
Warranties assumed in period | 283,458 | 384,214 |
Payments | (297,043) | (388,873) |
Ending balance warranty liability | $ 52,006 | $ 65,591 |
REVENUE - Schedule of Transacti
REVENUE - Schedule of Transactions Within Contract Liabilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contract with Customer, Liability [Abstract] | |||
Beginning contract liabilities | $ 559,232 | $ 136,213 | $ 1,701,356 |
Revenue recognized related to payments in beginning balance | (529,268) | (115,670) | (1,701,356) |
Payments received for which performance obligations have not been satisfied | 210,064 | 537,683 | 136,213 |
Effect of Foreign Currency Translation | 4,809 | 1,006 | 0 |
Ending contract liabilities | $ 244,837 | $ 559,232 | $ 136,213 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 158,924,448 | $ 129,932,881 | $ 109,920,614 |
Product revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 136,262,067 | 112,204,739 | 95,526,350 |
Paint protection film | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 110,786,164 | 97,341,865 | 85,495,382 |
Window film | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 20,950,591 | 11,384,437 | 7,309,773 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 4,525,312 | 3,478,437 | 2,721,195 |
Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 22,662,381 | 17,728,142 | 14,394,264 |
Software | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 3,489,348 | 3,263,391 | 2,566,960 |
Cutbank credits | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 7,784,554 | 7,253,610 | 6,197,250 |
Installation labor | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 10,925,525 | 6,620,527 | 5,211,633 |
Training | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 462,954 | $ 590,614 | $ 418,421 |
REVENUE - Revenue Estimate By G
REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 158,924,448 | $ 129,932,881 | $ 109,920,614 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 75,078,562 | 60,452,238 | 46,077,624 |
China | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 32,807,976 | 30,490,859 | 32,279,335 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 20,524,371 | 17,912,548 | 15,146,869 |
Continental Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 12,772,441 | 7,419,524 | 5,734,925 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 4,716,531 | 3,784,535 | 2,725,925 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 5,262,733 | 4,370,156 | 2,754,495 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,274,341 | 2,098,873 | 1,799,180 |
Middle East/Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 5,167,595 | 3,149,235 | 2,806,502 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 319,898 | $ 254,913 | $ 595,759 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
The China Distributor | Customer Concentration Risk | Revenue from Contract with Customer Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 20.60% | 23.50% | 29.20% |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 9,207,729 | $ 7,277,207 |
Less: accumulated depreciation | 4,501,481 | 3,262,554 |
Property and equipment, net | 4,706,248 | 4,014,653 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,349,037 | 1,168,894 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,482,911 | 1,151,295 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 760,335 | 683,213 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,955,254 | 1,648,656 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 2,055,798 | 1,479,594 |
Plotters | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,282,630 | 839,455 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 321,764 | $ 306,100 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,274,095 | $ 915,918 | $ 735,983 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 9,185,573 | $ 6,576,816 |
Less: Accumulated amortization | 3,761,593 | 2,756,356 |
Intangible assets, net | 5,423,980 | 3,820,460 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 373,374 | 309,395 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 2,598,985 | 2,288,062 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 497,545 | 492,408 |
Contractual and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 5,043,915 | 3,010,480 |
Non-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 458,536 | 268,459 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 213,218 | $ 208,012 |
INTANGIBLE ASSETS, NET - Narrat
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 955,937 | $ 781,105 | $ 642,801 |
Impairment loss of intangible assets, excluding goodwill | $ 0 | $ 30,480 |
INTANGIBLE ASSETS, NET - Sche_2
INTANGIBLE ASSETS, NET - Schedule of Future Amortization Expense of Finite-Lived Intangible Assets (Details) | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 1,035,158 |
2022 | 947,587 |
2023 | 903,786 |
2024 | 774,585 |
2025 | 511,263 |
Thereafter | $ 1,251,601 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 2,406,512 | $ 2,322,788 |
Additions | 1,938,656 | 44,584 |
Impairment | (35,884) | |
Foreign currency translation | 127,049 | 75,024 |
Goodwill ending balance | $ 4,472,217 | $ 2,406,512 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill impairment loss | $ 35,884 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventory (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Film and film based products | $ 20,170,756 | $ 13,538,610 |
Other products | 1,717,236 | 1,226,708 |
Packaging and supplies | 589,225 | 496,661 |
Inventory reserve | (113,091) | (120,826) |
Inventory, net | $ 22,364,126 | $ 15,141,153 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | May 11, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||
Notes payable | $ 6,484,624 | |||
The Bank of San Antonio | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Notes payable | $ 6,000,000 | 5,056,240 | ||
Note term | 36 months | |||
Interest rate | 3.50% | |||
Principal and interest payments | $ 176,373 | |||
Line of Credit | The Bank of San Antonio | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 8,500,000 | |||
Line of credit facility interest rate | 3.50% | 3.50% | 5.50% | |
Amount outstanding | $ 0 | $ 0 | ||
Line of Credit | HSBC Bank Canada | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 4,500,000 | |||
Line of credit facility interest rate | 2.70% | 2.70% | 4.20% | |
Amount outstanding | $ 0 | $ 0 | ||
Prime Rate | Line of Credit | The Bank of San Antonio | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 1.00% | |||
Debt instrument floor rate | 3.50% | |||
Prime Rate | Line of Credit | HSBC Bank Canada | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 0.25% |
DEBT - Schedule of Notes Payabl
DEBT - Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 6,484,624 | $ 806,867 |
Debt Instrument, Unamortized Discount (Premium), Net | (348,261) | (37,360) |
Current portion | (2,568,172) | (462,226) |
Total long-term debt | $ 3,568,191 | 307,281 |
Acquisition Notes Payable Due 2022 | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (as a percent) | 3.02% | |
Total debt | $ 1,428,384 | 806,867 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate (as a percent) | 3.50% | |
Total debt | $ 5,056,240 | $ 0 |
DEBT - Schedule of Debt Maturit
DEBT - Schedule of Debt Maturities (Details) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 2,761,140 |
2022 | 2,549,623 |
2023 | 1,156,221 |
2024 | 16,283 |
2025 | 1,357 |
Thereafter | 0 |
Notes payable | $ 6,484,624 |
EMPLOYEE BENEFIT PLAN - Narrati
EMPLOYEE BENEFIT PLAN - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Contribution expense | $ 278,434 | $ 174,744 | $ 124,431 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities [Abstract] | ||||
Trade payables | $ 12,987,487 | $ 7,440,965 | ||
Payroll liabilities | 2,266,643 | 1,367,340 | ||
Contract liabilities | 244,837 | 559,232 | $ 136,213 | $ 1,701,356 |
Other liabilities | 1,298,495 | 829,816 | ||
Accounts payable and accrued liabilities | $ 16,797,462 | $ 10,197,353 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||
Common stock par value issued | $ 27,613 | $ 27,613 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock issued (in shares) | 27,612,597 | 27,612,597 | ||
Common stock outstanding (in shares) | 27,612,597 | 27,612,597 | 27,612,597 | 27,612,597 |
Common stock par value issued | $ 27,613 | $ 27,613 |
STOCK OPTIONS - Narrative (Deta
STOCK OPTIONS - Narrative (Details) - Option - shares | 12 Months Ended | |
Dec. 31, 2020 | May 28, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for future issuance (in shares) | 275,000 | |
Maximum term in number of years | 10 years | |
Maximum number of allocated and made available to be issued shares as a percent | 10.00% |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Level 3 | Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Contingent Liabilities | $ 571,833 | $ 0 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 20,546,504 | $ 15,375,731 | $ 10,008,013 |
International | 2,257,855 | 1,574,697 | 1,473,292 |
Income before income taxes | $ 22,804,359 | $ 16,950,428 | $ 11,481,305 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | $ 800,000 | |
State Tax Credit | 103,350 | $ 27,867 |
Unrecognized tax benefits, decrease resulting from foreign subsidiaries | 200,000 | |
Unrecognized Tax Benefits that would impact effective tax rate | $ 100,000 |
INCOME TAXES - Income Taxes Pro
INCOME TAXES - Income Taxes Provision Difference (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 22,804,359 | $ 16,950,428 | $ 11,481,305 |
Statutory rate | 21.00% | 21.00% | 21.00% |
Income statutory rate amount | $ 4,788,915 | $ 3,559,590 | $ 2,411,074 |
State taxes net of federal benefit | 295,097 | 31,446 | 183,468 |
Nondeductible/nontaxable items | 49,252 | 115,679 | 0 |
Foreign tax rate differential | 101,625 | 45,994 | 81,474 |
Foreign derived intangible income benefit | (703,328) | (287,606) | 0 |
Return to provision estimated revision | (195,577) | (358,986) | 0 |
Other - net | 186,684 | (150,761) | 84,057 |
Income tax expense | $ 4,522,668 | $ 2,955,356 | $ 2,760,073 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the Income Tax Provision (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current Income Tax Expense | |||
Federal | $ 3,572,812 | $ 2,412,157 | $ 2,182,415 |
Foreign | 815,968 | 518,528 | 431,638 |
State | 407,187 | 3,068 | 232,238 |
Total Current Income Tax Expense | 4,795,967 | 2,933,753 | 2,846,291 |
Deferred Income Tax Expense/(Benefit) | |||
Federal | (234,176) | 99,870 | (65,801) |
Foreign | 13,854 | (78,267) | (20,417) |
State | (52,977) | 0 | 0 |
Total Deferred Income Tax Expense/(Benefit) | (273,299) | 21,603 | (86,218) |
Income tax expense | $ 4,522,668 | $ 2,955,356 | $ 2,760,073 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets (Liabilities) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
DEFERRED TAX ASSETS: | ||
Allowance for Doubtful Accounts | $ 16,081 | $ 31,073 |
263(A) Adjustment | 59,852 | 31,427 |
Accrued Expenses | 399,240 | 212 |
Inventory Reserve | 25,436 | 9,725 |
Unrealized loss | 37,432 | 6,282 |
State Tax Credit | 103,350 | 27,867 |
NOL Carryforward and Other | 160,883 | 162,005 |
Right of Use Lease Liability | 1,280,737 | 1,046,467 |
Total deferred tax assets | 2,083,011 | 1,315,058 |
DEFERRED TAX LIABILITIES: | ||
Fixed and Intangible Assets | 1,399,311 | 860,592 |
Unrealized Gain | 15,150 | 12,713 |
Accretion | 6,852 | 0 |
Cumulative Translation Adjustment | 9,436 | 0 |
Right of Use Lease Asset | 1,280,068 | 1,046,467 |
Total deferred tax liabilities | 2,710,817 | 1,919,772 |
Total net deferred tax liabilities | $ (627,806) | $ (604,714) |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Beginning unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Increase related to tax positions of the current year | 0 | 0 | 0 |
Increase related tax positions of prior years | 129,082 | 0 | 0 |
Lapse of statute of limitations | 0 | 0 | 0 |
Audit Settlements | 0 | 0 | 0 |
Ending unrecognized tax benefits | $ 129,082 | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2017 | |
Other Commitments [Line Items] | |||
Purchase commitment renewal period | 2 years | ||
Purchase commitment renewal option notice | 2 months | ||
Quarterly purchase commitment | $ 5,000,000 | ||
Annual purchase commitment | $ 20,000,000 | ||
Operating Lease, term of contract | 88 months | ||
Operating lease, total base payments | $ 4,706,016 | ||
Subsequent Event | |||
Other Commitments [Line Items] | |||
Operating Lease, term of contract | 84 months | ||
Operating lease, total base payments | $ 949,601 |
LEASES - Schedule of Balance Sh
LEASES - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 5,973,702 | $ 5,079,110 |
Current portion of operating lease liabilities | 1,650,749 | 1,126,701 |
Noncurrent portion of operating lease liabilities | 4,331,214 | 4,009,949 |
Total operating lease liabilities | $ 5,981,963 | $ 5,136,650 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease expense | $ 1,515,848 | $ 1,210,969 | |
Operating lease rent expense | $ 1,209,208 | ||
Variable lease payment | 234,175 | 492,771 | |
Short-term lease expense | 513,016 | 157,253 | |
Operating lease payment | $ 1,460,422 | $ 1,235,264 |
LEASES - Schedule of Weighted A
LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 4 years 10 months 24 days | 5 years 7 months 6 days |
Weighted-average discount rate | 5.84% | 5.84% |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 1,702,807 | |
2022 | 1,620,862 | |
2023 | 1,426,574 | |
2024 | 762,478 | |
2025 | 415,216 | |
Thereafter | 990,187 | |
Total operating lease payments | 6,918,124 | |
Less: interest | (936,161) | |
Total operating lease liabilities | $ 5,981,963 | $ 5,136,650 |
ACQUISITION OF BUSINESS - Busin
ACQUISITION OF BUSINESS - Business Combinations Complete by Year-End (Details) - USD ($) | Dec. 31, 2020 | Oct. 30, 2020 | Feb. 01, 2020 | Nov. 01, 2018 | Aug. 01, 2018 | Jun. 01, 2018 | Apr. 01, 2018 |
Veloce Innovation | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 1,441,000 | ||||||
France Auto Racing | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 329,390 | ||||||
Protex Centre | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 2,475,270 | ||||||
Apogee Corp. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 638,552 | ||||||
9846905 Canada Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 332,798 | ||||||
9341-9182 Quebec, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 363,239 | ||||||
eShields, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 496,982 | ||||||
9352-4692 Quebec, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 87,248 |
ACQUISITION OF BUSINESS - Acqui
ACQUISITION OF BUSINESS - Acquisition Purchase Price (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allocation [Abstract] | |||
Goodwill | $ 4,472,217 | $ 2,406,512 | $ 2,322,788 |
2020 Acquisitions | |||
Purchase Price | |||
Cash | 2,811,346 | ||
Promissory note | 893,314 | ||
Contingent consideration | 541,000 | ||
Forgiveness of debt | 0 | ||
Business combination and asset acquisition price | 4,245,660 | ||
Allocation [Abstract] | |||
Cash | 242,808 | ||
Accounts receivable | 206,808 | ||
Inventory | 182,336 | ||
Prepaid expenses and other assets | 3,764 | ||
Other long-term assets | 6,197 | ||
Property and equipment | 161,702 | ||
Asset Acquisition, Finance Lease Right-of-use Asset | 587,587 | ||
Software | 1,027 | ||
Trade name | 0 | ||
Acquired patterns | 0 | ||
Customer relationships | 1,896,220 | ||
Non-compete | 179,093 | ||
Goodwill | 1,938,656 | ||
Current portion of lease liabilities | (73,297) | ||
Accounts payable and accrued liabilities | (154,802) | ||
Non-current portion of lease liabilities | (514,290) | ||
Assumed debt | (108,764) | ||
Deferred tax liability | (274,333) | ||
Taxes payable | (35,052) | ||
Assets acquired and liabilities assumed, net | $ 4,245,660 | ||
2019 Acquisitions | |||
Purchase Price | |||
Cash | 127,623 | ||
Promissory note | 0 | ||
Contingent consideration | 0 | ||
Forgiveness of debt | 0 | ||
Business combination and asset acquisition price | 127,623 | ||
Allocation [Abstract] | |||
Cash | 0 | ||
Accounts receivable | 0 | ||
Inventory | 0 | ||
Prepaid expenses and other assets | 0 | ||
Other long-term assets | 0 | ||
Property and equipment | 5,038 | ||
Asset Acquisition, Finance Lease Right-of-use Asset | 0 | ||
Software | 0 | ||
Trade name | 25,918 | ||
Acquired patterns | 52,083 | ||
Customer relationships | 0 | ||
Non-compete | 0 | ||
Goodwill | 44,584 | ||
Current portion of lease liabilities | 0 | ||
Accounts payable and accrued liabilities | 0 | ||
Non-current portion of lease liabilities | 0 | ||
Assumed debt | 0 | ||
Deferred tax liability | 0 | ||
Taxes payable | 0 | ||
Assets acquired and liabilities assumed, net | $ 127,623 | ||
2018 Acquisitions | |||
Purchase Price | |||
Cash | 831,934 | ||
Promissory note | 998,668 | ||
Contingent consideration | 0 | ||
Forgiveness of debt | 88,216 | ||
Business combination and asset acquisition price | 1,918,818 | ||
Allocation [Abstract] | |||
Cash | 41,407 | ||
Accounts receivable | 155,434 | ||
Inventory | 494,663 | ||
Prepaid expenses and other assets | 78,631 | ||
Other long-term assets | 0 | ||
Property and equipment | 167,622 | ||
Asset Acquisition, Finance Lease Right-of-use Asset | 0 | ||
Software | 0 | ||
Trade name | 0 | ||
Acquired patterns | 0 | ||
Customer relationships | 609,751 | ||
Non-compete | 0 | ||
Goodwill | 576,173 | ||
Current portion of lease liabilities | 0 | ||
Accounts payable and accrued liabilities | (204,863) | ||
Non-current portion of lease liabilities | 0 | ||
Assumed debt | 0 | ||
Deferred tax liability | 0 | ||
Taxes payable | 0 | ||
Assets acquired and liabilities assumed, net | $ 1,918,818 |
ACQUISITION OF BUSINESS - Narra
ACQUISITION OF BUSINESS - Narrative (Details) | Feb. 01, 2020USD ($) | Feb. 01, 2020GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets weighted average useful life | 9 years | 2 years | 9 years | ||
Paintshield, Ltd | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Revenue | $ 3,816,509 | ||||
Net income | $ 1,125,311 | ||||
2018 Acquisitions | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Revenue | $ 613,701 | ||||
Net income | $ 43,030 | ||||
XPEL, Ltd. | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Percentage of business acquired | 15.00% | 15.00% | |||
Purchase price | $ 762,479 | £ 600,000 |
ACQUISITION OF BUSINESS - Pro F
ACQUISITION OF BUSINESS - Pro Forma Results (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations And Asset Acquisitions [Abstract] | ||
Revenue | $ 160,746,877 | $ 133,400,046 |
Net income | $ 18,274,591 | $ 13,927,429 |