Tandy Leather Factory, Inc. (NASDAQ:TLF) Files An 8-K Results of Operations and Financial Condition
Item 2.02.
On August 10, 2020, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “August 10 Press Release”) announcing certain financial results as described in the next paragraph. A copy of the August 10 Press Release is attached as Exhibit 99.1.
Year-to-date sales through July 2020 were $31 million, down 27% from the same period in 2019. The decline was largely due to the impact of the COVID-19 pandemic, which required the Company to temporarily close all of its retail stores in March 2020; stores have been gradually reopening since late May 2020. Total sales for July 2020 were $5.1 million, down 5% from the same period last year. Cost savings initiatives, together with reductions in employment costs from furloughed employees as a result of COVID-19 that we discussed in our June Annual Meeting and press release, are estimated to save $2-3 million in operating expenses through July. Impairment charges recognized in the first quarter of 2020 are expected to be $2.5 million, primarily related to operating lease assets. Cash and short-term securities at the end of July were $11.5 million.
On August 11, 2020, Tandy Leather Factory, Inc. (the “Company”) received a delisting determination letter from The Nasdaq Stock Market LLC (“Nasdaq”) notifying it that trading in the Company’s shares will be suspended on Nasdaq effective with the open of business on August 13, 2020, and that the Company’s common stock will be delisted from Nasdaq via Nasdaq’s filing of a Form 25 with the Securities and Exchange Commission (the “SEC”) once all applicable Nasdaq review and appeal periods have expired. The Company is considering whether to appeal the determination.
In accordance with the terms of the earlier decision issued on behalf of the Nasdaq Hearings Panel (the “Panel”), the Company was required to file all outstanding periodic reports with the SEC by no later than August 10, 2020; however, the Company was unable to do so. August 10, 2020 represented the full extent of the Panel’s discretion in this matter and, as a result, the Panel was required to issue a delisting determination under the Nasdaq Listing Rules.
The Company expects that its common stock may remain eligible to trade on the Over-the Counter Markets’ “Pink Sheets” under the current symbol “TLF” effective with the open of business on August 13, 2020. The Company intends to reapply for Nasdaq listing once it has made the required filings.
The Company previously announced in the August 10 Press Release that it had not completed the required filings by August 10, 2020.
(d) Exhibits
Forward Looking Statements
Certain statements contained in this report and other materials the Company files with the SEC, as well as information included in oral statements or other written statements made or to be made by the Company, other than statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “may,” “will,” “could,” “should,” “anticipate,” “believe,” “budgeted,” “expect,” “intend,” “plan,” “project,” “potential,” “estimate,” “continue,” “outlook,” “forecast” or “future,” variations thereof or other similar statements. Please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 for additional information concerning these and other uncertainties that could negatively impact the Company. The Company assumes no obligation to update or otherwise revise its forward-looking statements, except as required by law.
TANDY LEATHER FACTORY INC ExhibitEX-99.1 2 bhrc10014332_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE August 10,…
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About Tandy Leather Factory, Inc. (NASDAQ:TLF)
Tandy Leather Factory, Inc. is a retailer and a wholesale distributor of a range of leather and related products. The Company’s products include leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company also manufactures leather lacing and some of its do-it-yourself kits. The Company operates through three segments: Wholesale Leathercraft, Retail Leathercraft and International Leathercraft. The Wholesale Leathercraft segment consists of a chain of wholesale stores operating under the name, The Leather Factory, located in North America. The Retail Leathercraft segment consists of a chain of retail stores operating under the name, Tandy Leather Company, located in North America. The International Leathercraft segment sells to both wholesale and retail customers. The Company has approximately four stores, two located in the United Kingdom, one located in Australia and one located in Spain.