Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 1-12368 | |
Entity Registrant Name | TANDY LEATHER FACTORY, INC | |
Entity Central Index Key | 0000909724 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2543540 | |
Entity Address, Address Line One | 1900 Southeast Loop 820 | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76140 | |
City Area Code | 817 | |
Local Phone Number | 872-3200 | |
Title of 12(b) Security | Common Stock, par value $0.0024 | |
Trading Symbol | TLFA | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,235,257 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 10,335 | $ 10,155 |
Accounts receivable-trade, net of allowance for doubtful accounts of $48 and $24 at March 31, 2022 and December 31, 2021, respectively | 719 | 614 |
Inventory | 37,751 | 38,084 |
Income tax receivable | 876 | 972 |
Prepaid expenses | 476 | 483 |
Other current assets | 139 | 141 |
Total current assets | 50,296 | 50,449 |
Property and equipment, at cost | 27,923 | 27,750 |
Less accumulated depreciation | (16,296) | (15,989) |
Property and equipment, net | 11,627 | 11,761 |
Operating lease assets | 10,316 | 10,438 |
Financing lease assets | 36 | 37 |
Deferred income taxes | 2 | 0 |
Other intangibles, net of accumulated amortization of $548 at March 31, 2022 and December 31, 2021 | 6 | 6 |
Other assets | 393 | 394 |
TOTAL ASSETS | 72,676 | 73,085 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 3,977 | 4,786 |
Accrued expenses and other liabilities | 3,828 | 4,302 |
Current portion of operating lease liabilities | 2,915 | 3,025 |
Current portion of finance lease liabilities | 15 | 15 |
Current maturities of long-term debt | 122 | 79 |
Total current liabilities | 10,857 | 12,207 |
Uncertain tax positions | 415 | 415 |
Other non-current liabilities | 417 | 417 |
Operating lease liabilities, non-current | 8,142 | 8,194 |
Finance lease liabilities, non-current | 11 | 15 |
Long-term debt, net of current maturities | 283 | 336 |
COMMITMENT AND CONTINGENCIES (Note 6) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.10 par value; 20,000,000 shares authorized; none issued or outstanding; attributes to be determined on issuance | 0 | 0 |
Common stock, $0.0024 par value; 25,000,000 shares authorized; 10,019,134 and 9,971,711 shares issued at March 31, 2022 and December 31, 2021, respectively; 8,594,758 and 8,547,335 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 24 | 24 |
Paid-in capital | 4,299 | 3,959 |
Retained earnings | 59,309 | 58,664 |
Treasury stock at cost (1,424,376 shares at March 31, 2022 and December 31, 2021) | (9,773) | (9,773) |
Accumulated other comprehensive loss, net of tax | (1,308) | (1,373) |
Total stockholders' equity | 52,551 | 51,501 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 72,676 | $ 73,085 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 48 | $ 24 |
Accumulated amortization | $ 548 | $ 548 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 10,019,134 | 9,971,711 |
Common stock, shares outstanding (in shares) | 8,594,758 | 8,547,335 |
Treasury stock, shares (in shares) | 1,424,376 | 1,424,376 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract] | ||
Net sales | $ 20,500 | $ 21,394 |
Cost of sales | 8,569 | 9,208 |
Gross profit | 11,931 | 12,186 |
Operating expenses | 11,102 | 11,221 |
Income from operations | 829 | 965 |
Other (income) expense: | ||
Interest expense | 2 | 5 |
Other, net | (15) | (8) |
Total other income | (13) | (3) |
Income before income taxes | 842 | 968 |
Income tax provision | 197 | 223 |
Net income | 645 | 745 |
Foreign currency translation adjustments, net of tax | 65 | (33) |
Comprehensive income | $ 710 | $ 712 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.08 | $ 0.08 |
Diluted (in dollars per share) | $ 0.08 | $ 0.08 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 8,574,888 | 8,811,752 |
Diluted (in shares) | 8,580,182 | 8,811,752 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 645 | $ 745 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 301 | 254 |
Operating lease asset amortization | 811 | 832 |
Stock-based compensation | 340 | 183 |
Deferred income taxes | (1) | 19 |
Changes in operating assets and liabilities: | ||
Accounts receivable-trade | (69) | (65) |
Inventory | 366 | (2,101) |
Prepaid expenses | 6 | (321) |
Other current assets | 1 | 7 |
Accounts payable-trade | (938) | 2,041 |
Accrued expenses and other liabilities | (477) | 316 |
Income taxes, net | 94 | 1,198 |
Other assets | 48 | 0 |
Operating lease liabilities | (850) | (903) |
Total adjustments | (368) | 1,460 |
Net cash provided by operating activities | 277 | 2,205 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (164) | (116) |
Net cash used in investing activities | (164) | (116) |
Cash flows from financing activities: | ||
Payment of finance lease obligations | (4) | (3) |
Repurchase of common stock | 0 | (1,675) |
Net cash used in financing activities | (4) | (1,678) |
Effect of exchange rate changes on cash and cash equivalents | 71 | 21 |
Net increase in cash and cash equivalents | 180 | 432 |
Cash and cash equivalents, beginning of period | 10,155 | 10,329 |
Cash and cash equivalents, end of period | $ 10,335 | $ 10,761 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2020 | $ 25 | $ 5,924 | $ (9,773) | $ 57,310 | $ (1,292) | $ 52,194 |
Balance (in shares) at Dec. 31, 2020 | 9,150,806 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 0 | 183 | 0 | 0 | 0 | 183 |
Issuance of restricted stock | $ 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 16,080 | |||||
Repurchase of common stock | $ (1) | (1,674) | 0 | 0 | 0 | (1,675) |
Repurchase of common stock (in shares) | (500,000) | |||||
Net income | $ 0 | 0 | 0 | 745 | 0 | 745 |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 | (33) | (33) |
Balance at Mar. 31, 2021 | $ 24 | 4,433 | (9,773) | 58,055 | (1,325) | 51,414 |
Balance (in shares) at Mar. 31, 2021 | 8,666,886 | |||||
Balance at Dec. 31, 2021 | $ 24 | 3,959 | (9,773) | 58,664 | (1,373) | 51,501 |
Balance (in shares) at Dec. 31, 2021 | 8,547,335 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 0 | 340 | 0 | 0 | 0 | 340 |
Issuance of restricted stock | $ 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 47,423 | |||||
Net income | $ 0 | 0 | 0 | 645 | 0 | 645 |
Foreign currency translation adjustments, net of tax | 0 | 0 | 0 | 0 | 65 | 65 |
Balance at Mar. 31, 2022 | $ 24 | $ 4,299 | $ (9,773) | $ 59,309 | $ (1,308) | $ 52,551 |
Balance (in shares) at Mar. 31, 2022 | 8,594,758 |
BASIS OF PRESENTATION AND CERTA
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES Tandy Leather Factory, Inc. (“TLFA,” “we,” “our,” “us,” the” Company,” “Tandy,” or “Tandy Leather” mean Tandy Leather Factory, Inc., together with its subsidiaries) What differentiates Tandy from the competition is our high brand awareness and strong brand equity and loyalty, our network of retail stores that provides convenience, a high-touch customer service experience, and a hub for the local leathercrafting community, and our 100-year heritage. We believe that this combination of qualities is unique to Tandy and gives the brand competitive advantages that are difficult for others to replicate. We sell our products primarily through company-owned stores and through orders generated from our four websites: tandyleather.com, tandyleather.ca, tandyleather.eu and tandyleather.com.au. We also manufacture leather lace, cut leather pieces and most of the do-it-yourself kits that are sold in our stores and on our websites. We also offer production services to our business customers such as cutting (“clicking”), splitting, and some assembly. We maintain our principal offices at 1900 Southeast Loop 820, Fort Worth, Texas 76140. The Company currently operates a total of 105 retail stores. There are 94 stores in the U.S., ten stores in Canada and one store in Spain. The Company’s common shares currently trade on the OTC Pink Market operated by OTC Markets Group under the symbol “TLFA.” We operate as a single The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our financial position as of March 31, 2022 and December 31, 2021, our results of operations and our cash flows for the three months ended March 31, 2022 and 2021, and our statements of stockholders’ equity as of March 31, 2022 and 2021. The preparation of financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for the Company’s conclusions. The Company continually evaluates the information used to make these estimates as the business and the economic environment changes. Actual results may differ from these estimates, and estimates are subject to change due to modifications in the underlying conditions or assumptions. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes included in our Form 10-K for the year ended December 31, 2021. Significant Accounting Policies Cash and cash equivalents Foreign currency translation and transactions Revenue Recognition. The sales return allowance is based each year on historical customer return behavior and other known factors and reduces net sales and cost of sales, accordingly. The sales return allowance included in accrued expense and other liabilities was $0.2 million as of March 31, 2022 and December 31, 2021. The estimated value of merchandise expected to be returned included in other current assets was $0.1 million as of March 31, 2022 and December 31, 2021. We record a gift card liability for the unfulfilled performance obligation on the date we issue a gift card to a customer. We record revenue and reduce the gift card liability as the customer redeems the gift card. In addition, for gift card breakage, we recognize a proportionate amount for the expected unredeemed gift cards over the expected customer redemption period, which is one year. As of March 31, 2022 and December 31, 2021, our gift card liability, included in accrued expenses and other liabilities, was $0.2 million and $0.4 million, respectively. We recognized gift card revenue of $0.1 million during the first quarter of 2022 from the December 31, 2021 deferred revenue balance and $0.1 million during the first quarter of 2021 from the December 31, 2020 deferred revenue balance. For the three months ended March 31, 2022 and 2021, we recognized $0.2 million in net sales associated with gift cards. Disaggregated Revenue. In the following table, revenue for the three months ended March 31, 2022 and 2021 is disaggregated by geographic areas as follows: Three Months Ended March 31, (in thousands) 2022 2021 United States $ 18,134 $ 18,752 Canada 1,989 2,157 Spain 377 485 Net sales $ 20,500 $ 21,394 Geographic sales information is based on the location of the customer. As a percentage of our consolidated net sales, excluding Canada, no single foreign country had net sales greater than 1.8% and 2.3%, respectively, for the three months ended March 31, 2022 and 2021. Discounts Operating expense Property and equipment, net of accumulated depreciation three seven Inventory We regularly review all inventory items to determine if there are (i) damaged goods (e.g., for leather, excessive scars or damage from ultra-violet (“UV”) light), (ii) items that need to be removed from our product line (e.g., slow-moving items, inability of a supplier to provide items of acceptable quality or quantity, and to maintain freshness in the product line) and (iii) pricing actions that need to be taken to adequately value our inventory at the lower of cost or net realizable value. Since the determination of net realizable value of inventory involves both estimation and judgement with regard to market values and reasonable costs to sell, differences in these estimates could result in ultimate valuations that differ from the recorded asset. The majority of inventory purchases and commitments are made in U.S. dollars in order to limit the Company’s exposure to foreign currency fluctuations. Goods shipped to us are recorded as inventory owned by us when the risk of loss shifts to us from the supplier. Inventory is physically counted twice annually in the Texas distribution center. At the store level, inventory is physically counted each quarter. Inventory is then adjusted in our accounting system to reflect actual count results. (in thousands) March 31, 2022 December 31, 2021 On hand: Finished goods held for sale $ 35,215 $ 34,928 Raw materials and work in process 985 828 Inventory in transit 1,551 2,328 TOTAL $ 37,751 $ 38,084 Leases . We elected not to record leases with an initial term of 12 months or less on the balance sheet for all our asset classes. For operating leases, the present value of our lease payments may include: (1) rental payments adjusted for inflation or market rates, and (2) lease terms with options to renew the lease or options to purchase leased equipment, when it is reasonably certain we will exercise such an option. The exercise of lease renewal or purchase option is generally at our discretion. Payments based on a change in an index or market rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. We discount lease payments using our incremental borrowing rate based on information available as of the measurement date. We recognize rent expense related to our operating leases on a straight-line basis over the lease term. For finance leases, our right-of-use assets are amortized on a straight-line basis over the earlier of the useful life of the right-of-use asset or the end of the lease term with rent expense recorded to operating expenses. We adjust the lease liability to reflect lease payments made during the period and interest incurred on the lease liability using the effective interest method. The incurred interest expense is recorded in interest expense on the consolidated statements of operations and comprehensive income. The depreciable life of related leasehold improvements is based on the shorter of the useful life or the lease term. We also perform interim reviews of our lease assets for impairment when evidence exists that the carrying value of an asset group, including a lease asset, may not be recoverable. None of our lease agreements contain contingent rental payments, material residual value guarantees or material restrictive covenants. We have no sublease agreements and no lease agreements in which we are named as a lessor. Impairment of Long-Lived Assets Fair Value of Financial Instruments ● Level 1 – observable inputs that reflect quoted prices in active markets for identical assets or liabilities. ● Level 2 – significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3 – significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Our principal financial instruments held consist of accounts receivable, accounts payable, and long-term debt all of which fall under Level 3 of the fair value hierarchy. As of March 31, 2022 and December 31, 2021, the carrying values of our financial instruments, included in our Consolidated Balance Sheets, approximated or equaled their fair values. There were no transfers into or out of Levels 1, 2 and 3 during the three months ended March 31, 2022 and 2021. Income Taxes Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgement changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which new information becomes available. We recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. We may be subject to periodic audits by the Internal Revenue Service and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to the various jurisdictions. Stock-based compensation Performance-based RSUs vest, if at all, upon the Company satisfying certain performance targets. The Company records compensation expense for awards with a performance condition when it is probable that the condition will be achieved. If the Company determines it is not probable a performance condition will be achieved, no compensation expense is recognized. If the Company changes its assessment in a subsequent period and concludes it is probable a performance condition will be achieved, the Company will recognize compensation expense ratably between the period of the change in assessment through the expected date of satisfying the performance condition for vesting. If the Company subsequently assesses that it is no longer probable that a performance condition will be achieved, the accumulated expense that has been previously recognized will be reversed. The compensation expense ultimately recognized, if any, related to performance-based awards will equal the grant date fair value based on the number of shares for which the performance condition has been satisfied. We issue shares from authorized shares upon the lapsing of vesting restrictions on RSUs. We do not use cash to settle equity instruments issued under stock-based compensation awards. Accounts Receivable and Expected Credit Losses Other Intangible Assets Comprehensive Income Recently Adopted Accounting Pronouncements Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes Simplifying the Accounting for Income Taxes |
NOTES PAYABLE AND LONG-TERM DEB
NOTES PAYABLE AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
NOTES PAYABLE AND LONG-TERM DEBT [Abstract] | |
NOTES PAYABLE AND LONG-TERM DEBT | 2. NOTES PAYABLE AND LONG-TERM DEBT During the second quarter of 2020, the Company borrowed $0.4 million from Banco Santander S.A. under the Institute of Official Credit Guarantee for Small and Medium-sized Enterprises in order to facilitate the continuation of employment and to attenuate the economic effects of the coronavirus (“COVID-19”) virus. This loan was provided for by the Spanish government as part of a COVID-19 relief program. The term of the agreement is five years, and the interest rate is fixed at 1.5%. Based on the terms of the loan agreement, we are required to make monthly interest-only payments for the first two years and monthly principal and interest payments for the remainder of the term of the agreement. |
INCOME TAX
INCOME TAX | 3 Months Ended |
Mar. 31, 2022 | |
INCOME TAX [Abstract] | |
INCOME TAX | 3. INCOME TAX Our effective tax rate for the three months ended March 31, 2022 and 2021 was 23.4% and 23.0%, respectively. Our effective tax rate differs from the federal statutory rate primarily due to U.S. state income tax expense, the difference in tax rates for expenses that are nondeductible for tax purposes, the change in our valuation allowance associated with our deferred tax assets, and differences in tax rates. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 4. STOCK-BASED COMPENSATION The Tandy Leather Factory, Inc. 2013 Restricted Stock Plan (the “2013 Plan”) was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The 2013 Plan initially reserved up to 300,000 shares for restricted stock and restricted stock unit (“RSU”) awards to our executive officers, non-employee directors and other key employees. In June 2020, our stockholders approved an increase to the plan reserve to 800,000 shares of our common stock and extended the 2013 Plan to June 2023. As of March 31, 2022, there were 567,382 shares available for future awards. Awards granted under the 2013 Plan may be service-based awards or performance-based awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years, unless otherwise determined by the Compensation Committee of the Board of Directors that administers the plan. In January 2022, we granted a total of 27,249 RSUs to the Company’s Chief Executive Officer (“CEO”), which vested immediately. These shares were granted in lieu of $0.1 million in salary that the CEO declined in 2020 during the period of COVID-related store closures and business uncertainty. The timing of the grant was conditioned on the Company becoming fully current in its periodic SEC filings, which occurred in December 2021. In addition to grants under the Company’s 2013 Restricted Stock Plan, in October 2018, we granted a total of 644,000 RSUs to the Company’s CEO, of which (i) 460,000 are service-based RSUs that vest ratably over a period of five years from the grant date based on our CEO’s continued employment in her role, (ii) 92,000 are performance-based RSUs that will vest if the Company’s operating income exceeds $12 million dollars two fiscal years in a row, and (iii) 92,000 are performance-based RSUs that will vest if the Company’s operating income exceeds $14 million dollars in one fiscal year. A summary of the activity for non-vested restricted stock and RSU awards as of March 31, 2022 is presented below: Shares Weighted Average Balance, January 1, 2022 419 $ 7.05 Granted 27 5.08 Forfeited - - Vested (47 ) 5.00 Balance, March 31 2022 399 $ 7.16 The Company’s stock-based compensation relates primarily to RSU awards. For these service-based awards, our stock-based compensation expense, included in operating expenses, was $0.3 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the Company has concluded it is not probable that the performance conditions related to performance-based RSUs granted to our CEO will be achieved, and as a result no compensation expense related to performance-based RSUs has been recorded. As of March 31, 2022, there was unrecognized compensation cost related to non-vested, service-based RSU awards of $1.1 million, which will be recognized in each of the following years (dollars in thousands): Unrecognized Expense 2022 $ 576 2023 534 2024 21 2025 5 $ 1,136 We issue shares from authorized shares upon the lapsing of vesting restrictions on restricted stock and RSUs. For the three months ended March 31, 2022 and 2021, we issued 47,423 and 16,080 shares, respectively, resulting from the vesting of RSUs. We do not use cash to settle equity instruments issued under stock-based compensation awards. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 5. EARNINGS PER SHARE Basic earnings per share (“EPS”) are computed based on the weighted average number of common shares outstanding during the period. Diluted EPS includes additional common shares that would have been outstanding if potential common shares with a dilutive effect, such as stock awards from the Company’s restricted stock plan, had been issued. Anti-dilutive securities represent potentially dilutive securities which are excluded from the computation of diluted EPS as their impact would be anti-dilutive. Diluted EPS is computed using the treasury stock method. The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (in thousands, except share data) 2022 2021 Numerator: Net income $ 645 $ 745 Denominator: Basic weighted-average common shares outstanding 8,574,888 8,811,752 Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan 5,294 - Diluted weighted-average common shares outstanding 8,580,182 8,811,752 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are periodically involved in various litigation that arises in the ordinary course of business and operations. There are no such matters pending that we expect to have a material impact on our financial position or operating results. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. SEC Investigation In 2019, the Company self-reported to the SEC information concerning the internal investigation of previously disclosed accounting matters resulting in the restatement for the full year 2017 and full year 2018, including interim quarters in 2018, and the first quarter of 2019. In response, the Division of Enforcement of the SEC initiated an investigation into the Company’s historical accounting practices. In July 2021, the Company entered into a settlement agreement with the SEC to conclude this investigation. Under the terms of the settlement, in addition to other non-monetary settlement terms, (1) the Company paid a civil monetary penalty of $200,000, and (2) the Company’s former Chief Financial Officer and Chief Executive Officer, agreed to pay a civil monetary penalty of $25,000. In accepting the Company’s settlement offer, the SEC took into account remedial actions the Company took promptly after learning of the issues detailed in the SEC’s order. Delisting of the Company’s Common Stock As previously disclosed, the Company was unable to timely file certain Exchange Act filings due to the process of restating its financial statements as described above. Because the restatement process was not complete, Nasdaq suspended trading in our stock on Nasdaq as of August 13, 2020, and subsequently delisted it in February 2021. Since August 13, 2020, our stock has traded on the Pink Market operated by OTC Markets Group under the symbol “TLFA.” We have reapplied for Nasdaq listing but cannot be certain when or if that application will be approved. |
SHARE REPURCHASE PROGRAM AND SH
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES | 3 Months Ended |
Mar. 31, 2022 | |
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES [Abstract] | |
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES | 7. SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES On August 9, 2020, the Board of Directors approved a new program to repurchase up to $5.0 million of its common stock between August 9, 2020 and July 31, 2022. The Company’s previous share repurchase program expired in August 2020. As of March 31, 2022 and December 31, 2021, the full $5.0 million of our common stock remained available for repurchase under this program. On January 28, 2021, we entered into an agreement with an institutional shareholder of the Company, to repurchase 500,000 shares of our common stock, par value $0.0024 in a private transaction. The purchase price was $3.35 per share for a total of $1.7 million. The closing of the repurchase took place on February 1, 2021, and these shares were subsequently cancelled. Prior to the repurchase, the shares represented approximately 5.5% of our outstanding common stock. On December 8, 2021, we entered into an agreement with an institutional shareholder of the Company, to repurchase 212,690 shares of our common stock, par value $0.0024 in a private transaction. The purchase price was $5.00 per share for a total of $1.1 million. The closing of the repurchase took place on December 16, 2021, and these shares were subsequently cancelled. Prior to the repurchase, the shares represented approximately 2.4% of our outstanding common stock. These share repurchases were separately authorized by our Board of Directors and did not reduce the remaining amount authorized to be repurchased under the plan described in the previous paragraph. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 8. S On April 11, 2022, we entered into an agreement with two institutional shareholders of the Company, to repurchase 359,500 shares of our common stock, par value $0.0024 in a private transaction. The purchase price was $5.00 per share for a total of $1.8 million. The closing of the repurchase took place on April 22, 2022, and these shares were subsequently cancelled. Prior to the repurchase, the shares represented approximately 4.2% of our outstanding common stock. |
BASIS OF PRESENTATION AND CER_2
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Cash and cash equivalents | Cash and cash equivalents |
Foreign currency translation and transactions | Foreign currency translation and transactions |
Revenue Recognition | Revenue Recognition. The sales return allowance is based each year on historical customer return behavior and other known factors and reduces net sales and cost of sales, accordingly. The sales return allowance included in accrued expense and other liabilities was $0.2 million as of March 31, 2022 and December 31, 2021. The estimated value of merchandise expected to be returned included in other current assets was $0.1 million as of March 31, 2022 and December 31, 2021. We record a gift card liability for the unfulfilled performance obligation on the date we issue a gift card to a customer. We record revenue and reduce the gift card liability as the customer redeems the gift card. In addition, for gift card breakage, we recognize a proportionate amount for the expected unredeemed gift cards over the expected customer redemption period, which is one year. As of March 31, 2022 and December 31, 2021, our gift card liability, included in accrued expenses and other liabilities, was $0.2 million and $0.4 million, respectively. We recognized gift card revenue of $0.1 million during the first quarter of 2022 from the December 31, 2021 deferred revenue balance and $0.1 million during the first quarter of 2021 from the December 31, 2020 deferred revenue balance. For the three months ended March 31, 2022 and 2021, we recognized $0.2 million in net sales associated with gift cards. Disaggregated Revenue. In the following table, revenue for the three months ended March 31, 2022 and 2021 is disaggregated by geographic areas as follows: Three Months Ended March 31, (in thousands) 2022 2021 United States $ 18,134 $ 18,752 Canada 1,989 2,157 Spain 377 485 Net sales $ 20,500 $ 21,394 Geographic sales information is based on the location of the customer. As a percentage of our consolidated net sales, excluding Canada, no single foreign country had net sales greater than 1.8% and 2.3%, respectively, for the three months ended March 31, 2022 and 2021. |
Discounts | Discounts |
Operating expense | Operating expense |
Property and equipment, net of accumulated depreciation | Property and equipment, net of accumulated depreciation three seven |
Inventory | Inventory We regularly review all inventory items to determine if there are (i) damaged goods (e.g., for leather, excessive scars or damage from ultra-violet (“UV”) light), (ii) items that need to be removed from our product line (e.g., slow-moving items, inability of a supplier to provide items of acceptable quality or quantity, and to maintain freshness in the product line) and (iii) pricing actions that need to be taken to adequately value our inventory at the lower of cost or net realizable value. Since the determination of net realizable value of inventory involves both estimation and judgement with regard to market values and reasonable costs to sell, differences in these estimates could result in ultimate valuations that differ from the recorded asset. The majority of inventory purchases and commitments are made in U.S. dollars in order to limit the Company’s exposure to foreign currency fluctuations. Goods shipped to us are recorded as inventory owned by us when the risk of loss shifts to us from the supplier. Inventory is physically counted twice annually in the Texas distribution center. At the store level, inventory is physically counted each quarter. Inventory is then adjusted in our accounting system to reflect actual count results. (in thousands) March 31, 2022 December 31, 2021 On hand: Finished goods held for sale $ 35,215 $ 34,928 Raw materials and work in process 985 828 Inventory in transit 1,551 2,328 TOTAL $ 37,751 $ 38,084 |
Leases | Leases . We elected not to record leases with an initial term of 12 months or less on the balance sheet for all our asset classes. For operating leases, the present value of our lease payments may include: (1) rental payments adjusted for inflation or market rates, and (2) lease terms with options to renew the lease or options to purchase leased equipment, when it is reasonably certain we will exercise such an option. The exercise of lease renewal or purchase option is generally at our discretion. Payments based on a change in an index or market rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. We discount lease payments using our incremental borrowing rate based on information available as of the measurement date. We recognize rent expense related to our operating leases on a straight-line basis over the lease term. For finance leases, our right-of-use assets are amortized on a straight-line basis over the earlier of the useful life of the right-of-use asset or the end of the lease term with rent expense recorded to operating expenses. We adjust the lease liability to reflect lease payments made during the period and interest incurred on the lease liability using the effective interest method. The incurred interest expense is recorded in interest expense on the consolidated statements of operations and comprehensive income. The depreciable life of related leasehold improvements is based on the shorter of the useful life or the lease term. We also perform interim reviews of our lease assets for impairment when evidence exists that the carrying value of an asset group, including a lease asset, may not be recoverable. None of our lease agreements contain contingent rental payments, material residual value guarantees or material restrictive covenants. We have no sublease agreements and no lease agreements in which we are named as a lessor. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ● Level 1 – observable inputs that reflect quoted prices in active markets for identical assets or liabilities. ● Level 2 – significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3 – significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Our principal financial instruments held consist of accounts receivable, accounts payable, and long-term debt all of which fall under Level 3 of the fair value hierarchy. As of March 31, 2022 and December 31, 2021, the carrying values of our financial instruments, included in our Consolidated Balance Sheets, approximated or equaled their fair values. There were no transfers into or out of Levels 1, 2 and 3 during the three months ended March 31, 2022 and 2021. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgement changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which new information becomes available. We recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. We may be subject to periodic audits by the Internal Revenue Service and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to the various jurisdictions. |
Stock-based compensation | Stock-based compensation Performance-based RSUs vest, if at all, upon the Company satisfying certain performance targets. The Company records compensation expense for awards with a performance condition when it is probable that the condition will be achieved. If the Company determines it is not probable a performance condition will be achieved, no compensation expense is recognized. If the Company changes its assessment in a subsequent period and concludes it is probable a performance condition will be achieved, the Company will recognize compensation expense ratably between the period of the change in assessment through the expected date of satisfying the performance condition for vesting. If the Company subsequently assesses that it is no longer probable that a performance condition will be achieved, the accumulated expense that has been previously recognized will be reversed. The compensation expense ultimately recognized, if any, related to performance-based awards will equal the grant date fair value based on the number of shares for which the performance condition has been satisfied. We issue shares from authorized shares upon the lapsing of vesting restrictions on RSUs. We do not use cash to settle equity instruments issued under stock-based compensation awards. |
Accounts Receivable and Expected Credit Losses | Accounts Receivable and Expected Credit Losses |
Other Intangibles Assets | Other Intangible Assets |
Comprehensive Income | Comprehensive Income |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes Simplifying the Accounting for Income Taxes |
BASIS OF PRESENTATION AND CER_3
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Disaggregated Revenue | In the following table, revenue for the three months ended March 31, 2022 and 2021 is disaggregated by geographic areas as follows: Three Months Ended March 31, (in thousands) 2022 2021 United States $ 18,134 $ 18,752 Canada 1,989 2,157 Spain 377 485 Net sales $ 20,500 $ 21,394 |
Inventory | Inventory is physically counted twice annually in the Texas distribution center. At the store level, inventory is physically counted each quarter. Inventory is then adjusted in our accounting system to reflect actual count results. (in thousands) March 31, 2022 December 31, 2021 On hand: Finished goods held for sale $ 35,215 $ 34,928 Raw materials and work in process 985 828 Inventory in transit 1,551 2,328 TOTAL $ 37,751 $ 38,084 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
STOCK-BASED COMPENSATION [Abstract] | |
Activity of Non-vested Restricted Common Stock Awards | A summary of the activity for non-vested restricted stock and RSU awards as of March 31, 2022 is presented below: Shares Weighted Average Balance, January 1, 2022 419 $ 7.05 Granted 27 5.08 Forfeited - - Vested (47 ) 5.00 Balance, March 31 2022 399 $ 7.16 |
Non-vested, Service-based Awards | As of March 31, 2022, there was unrecognized compensation cost related to non-vested, service-based RSU awards of $1.1 million, which will be recognized in each of the following years (dollars in thousands): Unrecognized Expense 2022 $ 576 2023 534 2024 21 2025 5 $ 1,136 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE [Abstract] | |
Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (in thousands, except share data) 2022 2021 Numerator: Net income $ 645 $ 745 Denominator: Basic weighted-average common shares outstanding 8,574,888 8,811,752 Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan 5,294 - Diluted weighted-average common shares outstanding 8,580,182 8,811,752 |
BASIS OF PRESENTATION AND CER_4
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2022SegmentWebSiteStore | |
Description of Business [Abstract] | |
Number of websites | WebSite | 4 |
Number of stores | 105 |
Number of operating segments | Segment | 1 |
Number of reporting segments | Segment | 1 |
United States [Member] | |
Description of Business [Abstract] | |
Number of stores | 94 |
Canada [Member] | |
Description of Business [Abstract] | |
Number of stores | 10 |
Spain [Member] | |
Description of Business [Abstract] | |
Number of stores | 1 |
BASIS OF PRESENTATION AND CER_5
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)Level | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Revenue Recognition [Abstract] | |||
Sales return allowance | $ 200 | $ 200 | |
Estimate of merchandise expected to be returned | $ 100 | 100 | |
Gift card redemption period | 1 year | ||
Revenue recognized from change in deferred obligation balance | $ 100 | $ 100 | |
Deferred revenue, recognized | 200 | 200 | |
Disaggregated Revenue [Abstract] | |||
Sales | $ 20,500 | 21,394 | |
Discounts [Abstract] | |||
Number of price levels | Level | 3 | ||
Accrued Expenses and Other Liabilities [Member] | |||
Revenue Recognition [Abstract] | |||
Contract with customer liability | $ 200 | $ 400 | |
United States [Member] | |||
Disaggregated Revenue [Abstract] | |||
Sales | 18,134 | 18,752 | |
Canada [Member] | |||
Disaggregated Revenue [Abstract] | |||
Sales | 1,989 | 2,157 | |
Spain [Member] | |||
Disaggregated Revenue [Abstract] | |||
Sales | $ 377 | $ 485 | |
Maximum [Member] | All Other Countries [Member] | Geographic Concentration Risk [Member] | Sales [Member] | |||
Disaggregated Revenue [Abstract] | |||
Revenue percentage | 1.80% | 2.30% |
BASIS OF PRESENTATION AND CER_6
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Property and Equipment, Net of Accumulated Depreciation (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Equipment and Machinery [Member] | Minimum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 3 years |
Equipment and Machinery [Member] | Maximum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 7 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 15 years |
Vehicles [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 5 years |
Buildings and Related Improvements [Member] | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Estimated useful lives of assets | 40 years |
BASIS OF PRESENTATION AND CER_7
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory on hand [Abstract] | ||
Finished goods held for sale | $ 35,215 | $ 34,928 |
Raw materials and work in process | 985 | 828 |
Inventory in transit | 1,551 | 2,328 |
Total inventory | $ 37,751 | $ 38,084 |
BASIS OF PRESENTATION AND CER_8
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value of Financial Instruments [Abstract] | ||
Transfers from Level 1 to Level 2 | $ 0 | $ 0 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Transfers into (out of) Level 3 | $ 0 | $ 0 |
BASIS OF PRESENTATION AND CER_9
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Accounts Receivable and Expected Credit Losses (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable and Expected Credit Losses [Abstract] | ||
Allowance for expected credit losses | $ 0.1 | $ 0.1 |
BASIS OF PRESENTATION AND CE_10
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES, Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Maximum [Member] | ||
Intangible Assets [Abstract] | ||
Amortization expenses | $ 10 | $ 10 |
Amortization expense, 2022 | 10 | |
Amortization expense, 2023 | 10 | |
Amortization expense, 2024 | 10 | |
Amortization expense, 2025 | 10 | |
Amortization expense, 2026 | $ 10 | |
Trademarks/Copyrights [Member] | ||
Intangible Assets [Abstract] | ||
Weighted average amortization period | 15 years |
NOTES PAYABLE AND LONG-TERM D_2
NOTES PAYABLE AND LONG-TERM DEBT (Details) - Institute of Official Credit Guarantee for Small and Medium-sized Enterprises [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2020 | |
Debt Instruments [Abstract] | ||
Proceeds from long-term debt | $ 0.4 | |
Term of agreement | 5 years | |
Fixed interest rate | 1.50% | |
Period required to make monthly interest payments | 2 years |
INCOME TAX (Details)
INCOME TAX (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAX [Abstract] | ||
Effective tax rate | 23.40% | 23.00% |
STOCK-BASED COMPENSATION, 2013
STOCK-BASED COMPENSATION, 2013 Restricted Stock Plan (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2022 | Oct. 31, 2018 | Mar. 31, 2022 | Jun. 30, 2020 | Jan. 31, 2013 | |
Restricted Stock Units [Member] | Chief Executive Officer [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Number of restricted stock units granted (in shares) | 27,249 | 644,000 | |||
Officer salary | $ 0.1 | ||||
Service-Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Vesting period from grant date | 5 years | ||||
Number of restricted stock units granted (in shares) | 460,000 | ||||
Performance-Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche One [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Number of restricted stock units granted (in shares) | 92,000 | ||||
Minimum amount of operating income, award vesting condition | $ 12 | ||||
Performance-Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche Two [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Number of restricted stock units granted (in shares) | 92,000 | ||||
Minimum amount of operating income, award vesting condition | $ 14 | ||||
2013 Restricted Stock Plan [Member] | Minimum [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Vesting period from grant date | 4 years | ||||
2013 Restricted Stock Plan [Member] | Restricted Stock Units [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Number of common shares reserved for issuance (in shares) | 800,000 | ||||
Shares available for future awards (in shares) | 567,382 | ||||
2013 Restricted Stock Plan [Member] | Restricted Stock Units [Member] | Maximum [Member] | |||||
Restricted Stock Plan [Abstract] | |||||
Number of common shares reserved for issuance (in shares) | 300,000 |
STOCK-BASED COMPENSATION, Summa
STOCK-BASED COMPENSATION, Summary of Activity for Non-vested Restricted Stock Unit Awards (Details) - Restricted Stock and RSU [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Shares [Roll Forward] | |
Balance (in shares) | shares | 419 |
Granted (in shares) | shares | 27 |
Forfeited (in shares) | shares | 0 |
Vested (in shares) | shares | (47) |
Balance (in shares) | shares | 399 |
Weighted Average Share Price [Abstract] | |
Balance (in dollars per share) | $ / shares | $ 7.05 |
Granted (in dollars per share) | $ / shares | 5.08 |
Forfeited (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 5 |
Balance (in dollars per share) | $ / shares | $ 7.16 |
STOCK-BASED COMPENSATION, Non-v
STOCK-BASED COMPENSATION, Non-vested Service-based Restricted Stock Unit Awards (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Service-Based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 300,000 | $ 200,000 |
2022 | 576,000 | |
2023 | 534,000 | |
2024 | 21,000 | |
2025 | 5,000 | |
Unrecognized Expense | 1,136,000 | |
Performance-Based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0 | |
Restricted Stock and RSU [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares issued from vesting of restricted stock (in shares) | 47,423 | 16,080 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator [Abstract] | ||
Net income | $ 645 | $ 745 |
Denominator [Abstract] | ||
Basic weighted-average common shares outstanding (in shares) | 8,574,888 | 8,811,752 |
Diluted weighted-average common shares outstanding (in shares) | 8,580,182 | 8,811,752 |
Restricted Stock [Member] | ||
Denominator [Abstract] | ||
Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan (in shares) | 5,294 | 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jul. 31, 2021USD ($) |
Legal Proceedings [Abstract] | |
Penalty amount | $ 200,000 |
Former CFO and CEO [Member] | |
Legal Proceedings [Abstract] | |
Penalty amount | $ 25,000 |
SHARE REPURCHASE PROGRAM AND _2
SHARE REPURCHASE PROGRAM AND SHARE REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 08, 2021 | Jan. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 07, 2021 | Jan. 27, 2021 | Aug. 09, 2020 |
Share Repurchase Program and Share Repurchases [Abstract] | ||||||||
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 | ||||||
Purchase price | $ 1,675 | |||||||
Share Repurchase Program [Member] | ||||||||
Share Repurchase Program and Share Repurchases [Abstract] | ||||||||
Remaining repurchase of common stock | $ 5,000 | $ 5,000 | ||||||
Repurchase of common stock (in shares) | 212,690 | 500,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 | ||||||
Purchase price per share (in dollars per share) | $ 5 | $ 3.35 | ||||||
Purchase price | $ 1,100 | $ 1,700 | ||||||
Percentage of outstanding common stock | 2.40% | 5.50% | ||||||
Share Repurchase Program [Member] | Maximum [Member] | ||||||||
Share Repurchase Program and Share Repurchases [Abstract] | ||||||||
Repurchase of common stock | $ 5,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands | Apr. 11, 2022USD ($)InstitutionalShareholder$ / sharesshares | Dec. 08, 2021USD ($)$ / sharesshares | Jan. 28, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Apr. 10, 2022 | Mar. 31, 2022$ / shares | Dec. 31, 2021$ / shares | Dec. 07, 2021 | Jan. 27, 2021 |
Subsequent Events [Abstract] | |||||||||
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 | |||||||
Purchase price | $ | $ 1,675 | ||||||||
Share Repurchase Program [Member] | |||||||||
Subsequent Events [Abstract] | |||||||||
Repurchase of common stock (in shares) | shares | 212,690 | 500,000 | |||||||
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 | |||||||
Purchase price per share (in dollars per share) | $ 5 | $ 3.35 | |||||||
Purchase price | $ | $ 1,100 | $ 1,700 | |||||||
Percentage of outstanding common stock | 2.40% | 5.50% | |||||||
Subsequent Event [Member] | Share Repurchase Program [Member] | |||||||||
Subsequent Events [Abstract] | |||||||||
Number of institutional shareholders | InstitutionalShareholder | 2 | ||||||||
Repurchase of common stock (in shares) | shares | 359,500 | ||||||||
Common stock, par value (in dollars per share) | $ 0.0024 | ||||||||
Purchase price per share (in dollars per share) | $ 5 | ||||||||
Purchase price | $ | $ 1,800 | ||||||||
Percentage of outstanding common stock | 4.20% |