Note 5 - Balance Sheet Components

12 Months Ended

Dec. 31, 2013

Disclosure Text Block Supplement [Abstract]

Supplemental Balance Sheet Disclosures [Text Block]

5. BALANCE SHEET COMPONENTS

	December 31, 2013			December 31, 2012
INVENTORY
On hand:
Finished goods held for sale	$	24,546,771		$	24,039,846
Raw materials and work in process		853,200			495,182
Inventory in transit		900,859			1,327,756
TOTAL	$	26,300,830		$	25,862,784
PROPERTY AND EQUIPMENT
Building	$	9,232,066		$	6,412,861
Land		1,451,132			1,451,132
Leasehold improvements		527,637			652,641
Equipment and machinery		4,321,509			4,124,553
Furniture and fixtures		4,597,366			3,034,128
Vehicles		161,280			77,396
Construction in progress		-			1,822,184
		20,290,990			17,574,895
Less: accumulated depreciation		(5,863,280	)		(5,630,305	)
TOTAL	$	14,427,710		$	11,944,590
PREPAID EXPENSES
Prepaid insurance	$	479,220		$	51,113
Prepaid postage		89,702			67,650
Prepaid advertising		309,908			296,687
Prepaid rent		93,866			46,825
Prepaid supplies/equipment		145,223			67,098
Prepaid licenses/dues		120,476			48,855
Prepaid IT services		315,099			103,609
Prepaid other		56,150			94,626
TOTAL	$	1,609,644		$	776,463
OTHER CURRENT ASSETS
Accounts receivable - employees	$	80,556		$	47,533
Accounts receivable - other		257,932			22,244
Payments for merchandise not received		140,105			83,673
TOTAL	$	478,593		$	153,450
OTHER ASSETS
Security deposits - utilities, locations, etc.	$	89,959		$	84,695
Leather art collection		252,000			252,000
TOTAL	$	341,959		$	336,695
ACCRUED EXPENSES AND OTHER LIABILITIES
Accrued bonuses	$	2,741,003		$	2,238,057
Accrued payroll		702,456			629,636
Deferred revenue		864,104			826,467
Sales and payroll taxes payable		423,340			295,482
Inventory in transit		321,608			1,327,756
Other		756,371			611,400
TOTAL	$	5,808,882		$	5,928,798

Depreciation expense was $1,152,307, $1,026,467, and $971,628 for the years ended December 31, 2013, 2012 and 2011, respectively.

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.

The 2013 loss from abandonment and/or disposal of obsolete equipment totaled $109,222. The loss is included in Operating expenses, $32,348 of which is reported in our Retail Leathercraft segment, and $76,874 of which is reported in our Wholesale Leathercraft segment.