Tandy Leather Factory Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Tandy Leather Factory Inc. has submitted its 2023 10-K annual report detailing financial performance and corporate information.</b>

AI Summary

TANDY LEATHER FACTORY INC (TLF) filed a Annual Report (10-K) with the SEC on March 22, 2024. Tandy Leather Factory Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company's principal business is manufacturing and selling leather and leather products. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items such as retained earnings, additional paid-in capital, and treasury stock are detailed for these periods. The report specifies the company's incorporation in Delaware and its principal business address in Fort Worth, Texas.

Why It Matters

For investors and stakeholders tracking TANDY LEATHER FACTORY INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Tandy Leather Factory Inc.'s financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial statements and disclosures within the report are essential for understanding the company's financial position, including its equity structure and liabilities, as of December 31, 2023.

Risk Assessment

Risk Level: medium — TANDY LEATHER FACTORY INC shows moderate risk based on this filing. The filing is a standard 10-K, which typically contains a broad range of financial and operational information, but lacks specific forward-looking financial performance metrics or significant strategic shifts that would indicate a higher risk level.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Tandy Leather Factory Inc.'s financial position and operational landscape for 2023.

Key Numbers

• 20231231 — Fiscal Year End (Period of report)
• 20240322 — Filing Date (Date filed)
• 752543540 — IRS Number (Company IRS Number)
• 8178723200 — Business Phone (Company Phone Number)

Key Players & Entities

• TANDY LEATHER FACTORY INC (company) — Filer name
• 0000909724 (company) — Central Index Key
• LEATHER & LEATHER PRODUCTS (company) — Standard Industrial Classification
• DE (company) — State of Incorporation
• FT WORTH (company) — Business Address City
• TX (company) — Business Address State
• 19930723 (date) — Date of Name Change
• NASDAQ (company) — Stock Exchange

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-22: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document type filed, containing detailed financial and operational information for the fiscal year.)

Fiscal Year End

The last day of a company's accounting year. (Indicates the specific date up to which the financial performance in the 10-K is reported.)

Key Financial Figures

• $0.0024 — ch registered Common Stock, par value $0.0024 TLF The Nasdaq Capital Market Ind
• $20,000 — omers generally need to spend more than $20,000. 4 Table of Contents Merchandise W

Filing Documents

• ef20015300_10k.htm (10-K) — 1276KB
• ef20015300_ex21-1.htm (EX-21.1) — 2KB
• ef20015300_ex23-1.htm (EX-23.1) — 2KB
• ef20015300_ex31-1.htm (EX-31.1) — 7KB
• ef20015300_ex32-1.htm (EX-32.1) — 4KB
• image00001.jpg (GRAPHIC) — 9KB
• image00002.jpg (GRAPHIC) — 4KB
• image00003.jpg (GRAPHIC) — 4KB
• 0001140361-24-014799.txt (&nbsp;) — 6982KB
• tlfa-20231231.xsd (EX-101.SCH) — 47KB
• tlfa-20231231_cal.xml (EX-101.CAL) — 87KB
• tlfa-20231231_def.xml (EX-101.DEF) — 226KB
• tlfa-20231231_lab.xml (EX-101.LAB) — 691KB
• tlfa-20231231_pre.xml (EX-101.PRE) — 428KB
• ef20015300_10k_htm.xml (XML) — 1005KB

BUSINESS

ITEM 1. BUSINESS 3

RISK FACTORS

ITEM 1A. RISK FACTORS 8

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 14

CYBERSECURITY

ITEM 1C. CYBERSECURITY 14

PROPERTIES

ITEM 2. PROPERTIES 15

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 17

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 17 PART II 18

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 18

SELECTED FINANCIAL DATA

ITEM 6. SELECTED FINANCIAL DATA 18

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 19

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 27

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 53

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 53

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 54 PART III 55

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE*

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE* 55

EXECUTIVE COMPENSATION*

ITEM 11. EXECUTIVE COMPENSATION* 55

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS*

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS* 55

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE*

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE* 55

PRINCIPAL ACCOUNTANT FEES AND SERVICES*

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES* 55 PART IV 56 EXHIBIT INDEX 57

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 59

SIGNATURES

SIGNATURES 60 ii Table of Contents PART I ITEM 1.

BUSINESS

BUSINESS The following discussion, as well as other portions of this Form 10-K, contains forward-looking statements that reflect our plans, estimates and beliefs. Any such forward-looking statements (including, but not limited to, statements to the effect that Tandy Leather Factory, Inc. ("TLF") or its management "anticipates," "plans," "estimates," "expects," "believes," "intends," and other similar expressions) that are not statements of historical fact should be considered forward-looking statements and should be read in conjunction with our Consolidated Financial Statements and related notes contained elsewhere in this report. These forward-looking statements are made based upon management's current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and should be read carefully because they involve risks and uncertainties. We assume no obligation to update or otherwise revise these forward-looking statements, except as required by law. Specific examples of forward-looking statements include, but are not limited to, statements regarding our forecasts of financial performance, share repurchases, store openings or store closings, capital expenditures and working capital requirements. Our actual results could materially differ from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this Form 10-K and particularly in "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." Unless the context otherwise indicates, references in this Form 10-K to "TLF," "we," "our," "us," the "Company," "Tandy," or "Tandy Leather" mean Tandy Leather Factory, Inc., together with its subsidiaries. General Tandy Leather Factory, Inc. ("TLF," "we," "our," "us," the" Company," "Tandy," or "Tandy Leather" mean Tandy Leather Factory, Inc., together wit

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. Our stores offer a broad selection of products combined with leathercraft expertise in a one-stop shop. Not only can customers purchase leather, related accessories and supplies necessary to complete their projects from a single source, but many of our store associates are also leathercrafters themselves and can provide suggestions and advice on our customers' projects. Customers value the expertise and high level of customer service from our store associates, the convenience of taking their purchases immediately, as well as the ability to touch, feel and choose their individual pieces of leather, an organic product in which each piece is unique. We also offer open workbenches where customers can work on projects together with the leathercrafting community, and test new tools and techniques. Most of our stores range in size from 1,300 square feet to 9,000 square feet, with the average at approximately 3,500 square feet. Our Fort Worth flagship store is approximately 22,000 square feet. Stores are located in light industrial warehouse spaces or older strip shopping centers in proximity to major freeways or well-known crossroads. We believe that many of our customers view our stores as a destination: customers interested in leathercrafting seek us out, reducing the value of paying high rents for high foot-traffic locations. Historically, we generate slightly more sales in the fourth quarter of each year due to the holiday shopping season (approximately 28-30% of annual sales), while the other three quarters average approximately 22-24% of annual sales each quarter. Distribution Our stores receive the majority of their inventory from our central distribution center located in Fort Worth, Texas, in weekly or, increasingly, bi-monthly shipments, using third-party transportation providers. Occasionally, merchandise is shipped to stores directly from the vendor. We now fulfill all of our U.S. and many of our international

RISK FACTORS

RISK FACTORS Risks Related to our Business and Business Strategy The successful execution of our multi-year transformation and operational efficiency initiatives is key to the long-term growth of our business. The Company continues to implement a large number of initiatives to transform the Company's business, improve sales long term and improve operational efficiency. These include the realignment of the Company's retail division management structure, the closing of underperforming stores, the formation of a new division focused on serving commercial customers, pricing and marketing initiatives, systems improvements, and other changes. The Company believes that long-term growth will be realized through these transformational efforts over time, however there is no assurance that such efforts will be successful. Actual costs incurred and the timeline of these initiatives may differ from our expectations. If these initiatives are unsuccessful, our business, financial condition and results of operation could be materially adversely affected. Our business is subject to the risks inherent in global sourcing activities. As a Company engaged in sourcing on a global scale, we are subject to the risks inherent in such activities, including, but not limited to: unavailability of, or significant fluctuations in the cost of, raw materials; disruptions or delays in shipments; loss or impairment of key assembly or distribution sites, which also could result in a former manufacturer beginning to produce similar products that compete with ours; inability to engage new independent manufacturers that meet the Company's cost-effective sourcing model; product quality issues; compliance by us and our independent manufacturers and suppliers with labor laws and other foreign governmental regulations; imposition of additional duties, taxes, and other charges on imports or exports; embargoes against products originating in countries from which we source; increases in the cos

View Full Filing

View this 10-K filing on SEC EDGAR