Business
Tandy Leather Factory Announces Non-Reliance on Prior Financial Statements
FORT WORTH, Texas, Oct. 18, 2019 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc., (NASDAQ: TLF) the world’s largest specialty retailer of leather and
About this update from Tandy Leather Factory, Inc.
[{"type":"text","content":"FORT WORTH, Texas, Oct. 18, 2019 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc., (NASDAQ: TLF) the world’s largest specialty retailer of leather and leathercraft related items, announced today that its previously issued financial statements included in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q should no longer be relied upon, as a result of misstatements primarily relating to the Company’s methods of valuation and expensing of costs of inventory and related issues, which were first identified by management as a result of a deeper analysis of legacy systems and practices that have been in place for many years. The Company is continuing its analysis and quantification of these issues and is now in the process of addressing them by replacing these systems and making improvements to its accounting practices. Detailed information on the nature of the issues and the preliminary estimated magnitude of the financial statement impacts, as well as the Company’s ongoing analysis and remediation efforts, can be found in a Current Report on Form 8-K filed with the SEC today. The Company expects to restate the financial statements noted above as soon as practicable and expects that it will not be able to file its Quarterly Reports on Form 10-Q for the quarters and year-to-date periods ended June 30, 2019 and September 30, 2019 until after the conclusion of its restatement process.\n None of the accounting issues are expected to impact reported sales or cash for any periods, including prior periods. Operating cash flows for the year to date period ended June 30, 2019 were $5.6 million, with ending cash and U.S. Treasury balances of $20.3 million at June 30, 2019. At September 30, 2019, cash and U.S. Treasury balances increased $2.3 million to $22.6 million. Further, the Company had no outstanding debt at June 30, 2019 or September 30, 2019. Janet Carr, Tandy’s Chief Executive Officer, said, “While we were disappointed to discover these prior accounting issues, we are committed to providing accurate and transparent financial statements as soon as possible. We are also working hard to improve our practices, to replace legacy systems, and to strengthen our controls. And none of this changes the fundamental economic value equation for Tandy Leather. We remain dominant in our category, we are strengthe...