Note 5 - Balance Sheet Components

12 Months Ended

Dec. 31, 2012

Supplemental Balance Sheet Disclosures [Text Block]

5.  BALANCE SHEET COMPONENTS

	December 31, 2012			December 31, 2011
INVENTORY
On hand:
Finished goods held for sale	$	24,039,846		$	17,742,298
Raw materials and work in process		495,182			479,686
Inventory in transit		1,327,756			1,718,267
TOTAL	$	25,862,784		$	19,940,251
PROPERTY AND EQUIPMENT
Building	$	6,412,861		$	6,412,861
Land		1,451,132			1,451,132
Leasehold improvements		652,641			636,526
Equipment and machinery		4,124,553			3,851,697
Furniture and fixtures		3,034,128			2,576,593
Vehicles		77,396			71,017
Construction in progress		1,822,184			-
		17,574,895			14,999,826
Less: accumulated depreciation		(5,630,305	)		(4,700,476	)
TOTAL	$	11,944,590		$	10,299,350
OTHER CURRENT ASSETS
Accounts receivable – employees	$	47,533		$	53,282
Accounts receivable – other		17,195			5,689
Prepaid expenses		781,845			744,679
Payments for merchandise not received		83,341			144,809
TOTAL	$	929,913		$	948,459
OTHER ASSETS
Security deposits - utilities, locations, etc.	$	84,695		$	89,240
Leather art collection		252,000			252,000
TOTAL	$	336,695		$	341,240
ACCRUED EXPENSES AND OTHER LIABILITIES
Accrued bonuses	$	2,238,057		$	1,955,012
Accrued payroll		629,636			527,540
Deferred revenue		826,467			747,335
Sales and payroll taxes payable		295,482			293,155
Inventory in transit		1,327,756			799,647
Other		611,400			318,502
TOTAL	$	5,928,798		$	4,641,191

Depreciation expense was $1,026,467, $971,628, and $895,988 for the years ended December 31, 2012, 2011 and 2010, respectively.

The 2010 loss from abandonment and/or disposal of obsolete equipment totaled $49,154.  The loss is included in Operating expenses, $11,849 of which is reported in our Retail Leathercraft segment and $37,305 which is reported in our Wholesale Leathercraft segment.

The 2011 loss from abandonment and/or disposal of obsolete equipment totaled $84,168.  The loss is included in Operating expenses, $13,884 of which is reported in our Retail Leathercraft segment and $70,284 of which is reported in our Wholesale Leathercraft segment.

The 2012 loss from abandonment and/or disposal of obsolete equipment totaled $21,092.  The loss is included in Operating expenses, $13,536 of which is reported in our Retail Leathercraft segment, $6,232 of which is reported in our Wholesale Leathercraft segment, and $1,324 of which is reported in our International Leathercraft segment.