TANDY LEATHER FACTORY INC

For the period ended Jun 30, 2026. Filed Aug 11, 2026.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Aug 11, 2026

TLF$2.08-1.9%Stored close · as of Nov 10, 2026

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Contents

Item 1. Condensed Consolidated Financial Statements (Unaudited)

Item 1.	Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets

(amounts in thousands, except share data and per share data)

	June 30, 2026	December 31, 2025
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$6,437	$16,087
Accounts receivable-trade, net of allowance for credit losses of $51 at June 30, 2026 and December 31, 2025	304	425
Inventory	37,066	33,238
Prepaid expenses	584	721
Other current assets	100	111
Total current assets	44,491	50,582
Property and equipment, at cost	27,122	26,203
Less accumulated depreciation	(16,571)	(15,978)
Property and equipment, net	10,551	10,225
Operating lease assets	25,425	24,736
Deferred income taxes	413	380
Other assets	722	710
TOTAL ASSETS	$81,602	$86,633
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable-trade	$3,027	$2,154
Accrued expenses and other liabilities	2,679	3,704
Income taxes payable	233	428
Current portion of operating lease liabilities	3,830	3,512
Total current liabilities	9,769	9,798
Uncertain tax positions	227	227
Other non-current liabilities	148	149
Operating lease liabilities, non-current	24,501	23,868
COMMITMENTS AND CONTINGENCIES (Note 7)
STOCKHOLDERS’ EQUITY:
Common stock, $0.0024 par value; 15,000,000 shares authorized; 9,616,451 and 9,497,251 shares issued at June 30, 2026 and December 31, 2025, respectively; 8,192,075 and 8,072,875 shares outstanding at June 30, 2026 and December 31, 2025, respectively	22	22
Paid-in capital	3,748	3,651
Retained earnings	55,419	60,843
Treasury stock at cost (1,424,376 shares at June 30, 2026 and December 31, 2025)	(9,773)	(9,773)
Accumulated other comprehensive loss, net of tax	(2,459)	(2,152)
Total stockholders’ equity	46,957	52,591
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$81,602	$86,633

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(amounts in thousands, except share and per share data)

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Net sales	$18,044	$17,773	$37,696	$36,809
Cost of sales	6,349	7,200	14,008	15,518
Gross profit	11,695	10,573	23,688	21,291
Operating expenses	11,152	10,507	22,780	20,963
Income from operations	543	66	908	328
Other income (expense):
Interest income	89	173	175	363
Gain on disposal of headquarter		-		16,225
Other, net	(10)	(419)	(93)	(1,693)
Total other income (loss)	79	(246)	82	14,895
Income (loss) before income taxes	622	(180)	990	15,223
Income tax provision	213	19	359	3,838
Net income (loss)	$409	$(199)	$631	$11,385
Foreign currency translation adjustments, net of tax	(95)	593	(307)	305
Comprehensive income	$314	$394	$324	$11,690
Net income (loss) per common share:
Basic	$0.05	$(0.02)	$0.08	$1.34
Diluted	$0.05	$(0.02)	$0.08	$1.34
Weighted average number of shares outstanding:
Basic	8,154,549	8,494,546	8,128,673	8,497,857
Diluted	8,154,549	8,494,546	8,128,673	8,497,857

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

	For the Six Months Ended June 30,
	2026	2025
Cash flows from operating activities:
Net income	$631	$11,385
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	671	380
Operating lease asset amortization	2,708	2,377
Gain on disposal of assets	-	(16,225)
Stock-based compensation	234	211
Deferred income taxes	(33)	240
Changes in operating assets and liabilities:
Accounts receivable-trade	119	(63)
Inventory	(4,041)	(346)
Prepaid expenses	137	(68)
Other current assets	10	7
Accounts payable-trade	874	(899)
Accrued expenses and other liabilities	(1,021)	(709)
Income taxes, net	(194)	2,152
Other assets	(13)	(174)
Operating lease liabilities	(2,447)	(2,410)
Total adjustments	(2,996)	(15,527)
Net cash used in operating activities	(2,365)	(4,142)
Cash flows from investing activities:
Purchase of property and equipment	(1,002)	(5,016)
Proceeds from sales of Headquarter assets, net	-	24,897
Net cash (used in) provided by investing activities	(1,002)	19,881
Cash flows from financing activities:
Dividend Paid	(6,055)	(12,745)
Withholding of vested stock for employee tax	(137)	(176)
Net cash used in financing activities	(6,192)	(12,921)
Effect of exchange rate changes on cash and cash equivalents	(91)	330
Net (decrease) increase in cash and cash equivalents	(9,650)	3,148
Cash and cash equivalents, beginning of period	16,087	13,271
Cash and cash equivalents, end of period	$6,437	$16,419

Condensed Consolidated Statements of Stockholders’ Equity

(amounts in thousands, except share data)

	Number of Shares Common Stock Outstanding	Par Value	Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance, December 31, 2025	8,072,875	$22	$3,651	$(9,773)	$60,843	$(2,152)	$52,591
Stock-based compensation expense	-	-	93	-	-	-	93
Vesting of restricted stock units	117,776	-	-	-	-	-	-
Repurchase of common stock	-	-	-	-	-	-	-
Net income	-	-	-	-	222	-	222
Dividend Paid	-	-	-	-	(6,055)	-	(6,055)
Withholding of vested stock for employee tax	(47,082)	-	(137)	-	-	-	(137)
Foreign currency translation adjustments, net of tax	-	-	-	-	-	(212)	(212)
Balance, March 31, 2026	8,143,569	$22	$3,607	$(9,773)	$55,010	$(2,364)	$46,502
Stock-based compensation expense	-	-	141	-	-	-	141
Vesting of restricted stock units	48,506	-	-	-	-	-	-
Repurchase of common stock	-	-	-	-	-	-	-
Net income	-	-	-	-	409	-	409
Dividend Paid	-	-	-	-	-	-	-
Withholding of vested stock for employee tax	-	-	-	-	-	-	-
Foreign currency translation adjustments, net of tax	-	-	-	-	-	(95)	(95)
Balance, June 30, 2026	8,192,075	22	3,748	(9,773)	55,419	(2,459)	46,957
Balance, December 31, 2024	8,496,581	$23	$4,529	$(9,773)	$64,486	$(2,112)	57,153
Stock-based compensation expense	-	-	93	-	-	-	93
Vesting of restricted stock units	15,973	-	-	-	-	-	-
Net income	-	-	-	-	11,385	-	11,385
Dividend Paid	-	-	-	-	(12,745)	-	(12,745)
Foreign currency translation adjustments, net of tax	-	-	-	-	-	(288)	(288)
Balance, March 31, 2025	8,512,554	$23	$4,622	$(9,773)	$63,126	$(2,400)	$55,598
Stock-based compensation expense	-	-	118	-	-	-	118
Vesting of restricted stock units	3,078	-	-	-	-	-	-
Repurchase of common stock	(17,233)	-	(176)	-	-	-	(176)
Net loss	-	-	-	-	(199)	-	(199)
Dividend Paid	-	-	-	-	-	-	-
Foreign currency translation adjustments, net of tax	-	-	-	-	-	593	593
Balance, June 30, 2025	8,498,399	23	4,564	(9,773)	62,927	(1,807)	55,934

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.