The following restatement adjustment footnote numbers correspond to the restatement adjustment descriptions above.

Tandy Leather Factory, Inc.

Consolidated Balance Sheet

	December 31, 2018
	As Reported			Adjustments					As Restated
ASSETS
CURRENT ASSETS:
Cash	$	24,070,351		$	-				$	24,070,351
Accounts receivable-trade, net of allowance for doubtful accounts of $15,703		408,170			-					408,170
Inventory		33,867,276			(564,727	)	(1)	(2)(3)(4)(7)		33,302,549
Prepaid income taxes		383,478			36,430		(6	)		419,908
Prepaid expenses		1,244,754			39,041		(7	)		1,283,795
Other current assets		161,208			170,597		(7	)		331,805
Total current assets		60,135,237			(318,659	)				59,816,578

Property and equipment, at cost		28,005,563			134,782		(7	)		28,140,345
Less accumulated depreciation		(13,606,266	)		(18,995	)	(7	)		(13,625,261	)
Property and equipment, net		14,399,297			115,787					14,515,084

Deferred income taxes		248,228			844,065		(6	)		1,092,293
Goodwill		954,765			-					954,765
Other intangibles, net of accumulated amortization of $690,869		16,500			-					16,500
Other assets		386,107			-					386,107
TOTAL ASSETS		76,140,134			641,193					76,781,327

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable-trade		1,978,840			175,554		(7	)		2,154,394
Accrued expenses and other liabilities		4,176,479			1,225,029		(4	)(7)		5,401,508
Current maturities of long-term debt		747,335			(227,819	)	(7	)		519,516
Total current liabilities		6,902,654			1,172,764					8,075,418

Uncertain tax positions		-			1,415,715		(6	)		1,415,715
Deferred income taxes		1,556,493			(1,556,493	)	(6	)(9)		-
Other non-current liabilities		-			555,296		(6	)		555,296
Long-term debt, net of current maturities		8,220,683			227,819		(7	)		8,448,502

COMMITMENTS AND CONTINGENCIES (Note 10)

STOCKHOLDERS' EQUITY:		-			-					-
Preferred stock, $0.10 par value; 20,000,000 shares authorized; none issued or outstanding; attributes to be determined on issuance		-			-					-
Common stock, $0.0024 par value; 25,000,000 shares authorized; 10,353,155 shares issued		27,232			(2,384	)	(10	)		24,848
Paid-in capital		7,158,821			(2,891,683	)	(10	)		4,267,138
Retained earnings		65,716,761			(1,240,383	)	(1) (2	)(3)(4)(6)(7)(9)		64,476,378
Treasury stock at cost (1,292,594 shares)		(11,931,850	)		2,894,067		(10	)		(9,037,783	)
Accumulated other comprehensive loss (net of tax of $480,112)		(1,510,660	)		66,475		(9	)		(1,444,185	)
Total stockholders' equity		59,460,304			(1,173,908	)				58,286,396
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		76,140,134			641,193					76,781,327

Tandy Leather Factory, Inc.

Consolidated Statement of Comprehensive Income (Loss)

Unaudited

	Three Months Ended September 30, 2018
	As Reported			Adjustments					As Restated

Net sales	$	18,887,099		$	(8,836	)	(4	)	$	18,878,263
Cost of sales		7,040,266			(57,886	)	(1)	(2)(3)(4)(5)		6,982,380
Gross profit		11,846,833			49,050					11,895,883

Operating expenses		11,531,389			(535,400	)	(5	)(7)		10,995,989

Income from operations		315,444			584,450					899,894

Other expense:
Interest expense		80,710			-					80,710
Other, net		(40,846	)		-					(40,846	)
Total other expense		39,864			-					39,864

Income before income taxes		275,580			584,450					860,030

Provision (benefit) for income taxes		397,114			(145,785	)	(6	)		251,329

Net income (loss)	$	(121,534	)	$	730,235				$	608,701

Foreign currency translation adjustments, net of tax		118,165			(29,541	)	(9	)		88,624

Comprehensive income (loss)	$	(3,369	)	$	700,694				$	697,325

Net income (loss) per common share:
Basic	$	(0.01	)	$	0.08				$	0.07
Diluted	$	(0.01	)	$	0.08				$	0.07

Weighted average number of shares outstanding:
Basic		9,154,209			9,154,215					9,154,215
Diluted		9,155,031			9,160,022					9,160,022

Tandy Leather Factory, Inc.

Consolidated Statement of Comprehensive Income

Unaudited

	Nine Months Ended September 30, 2018
	As Reported			Adjustments					As Restated

Net sales	$	58,353,784		$	212,279		(4	)	$	58,566,063
Cost of sales		20,545,547			1,202,081		(1)	(2)(3)(4)(5)(7)		21,747,628
Gross profit		37,808,237			(989,802	)				36,818,435

Operating expenses		33,742,351			(1,460,053	)	(5	)(7)		32,282,298

Income from operations		4,065,886			470,251					4,536,137

Other (income) expense:
Interest expense		223,534			-					223,534
Other, net		(126,459	)		(199,607	)	(9	)		(326,066	)
Total other (income) expense		97,075			(199,607	)				(102,532	)

Income before income taxes		3,968,811			669,858					4,638,669

Provision (benefit) for income taxes		1,376,634			(21,065	)	(6	)		1,355,569

Net income	$	2,592,177		$	690,923				$	3,283,100

Foreign currency translation adjustments, net of tax		(154,642	)		(100,500	)	(9	)		(255,142	)

Comprehensive income	$	2,437,535		$	590,423				$	3,027,958

Net income per common share:
Basic	$	0.28		$	0.08				$	0.36
Diluted	$	0.28		$	0.08				$	0.36

Weighted average number of shares outstanding:
Basic		9,199,173			9,199,173					9,199,173
Diluted		9,199,959			9,201,577					9,201,577

Tandy Leather Factory, Inc.

Consolidated Statement of Cash Flows

Unaudited

	For the Nine Months Ended September 30, 2018
	As Reported			Adjustments					As Restated
Cash flows from operating activities:
Net income	$	2,592,177		$	690,923				$	3,283,100
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,310,774			2,056		(7	)		1,312,830
(Gain) loss on disposal of assets		4,556			-					4,556
Stock-based compensation		76,447			-					76,447
Deferred income taxes		(115,460	)		(174,831	)	(6	)(9)		(290,291	)
Exchange (gain) loss		(93,163	)		(43,735	)	(9	)		(136,898	)
Changes in operating assets and liabilities:
Accounts receivable-trade		42,600			(53,500	)	(7	)		(10,900	)
Inventory		(3,409,433	)		(552,298	)	(1)	)(2)(4)		(3,961,731	)
Prepaid expenses		125,034			(90,533	)	(6	)(7)		34,501
Other current assets		(111,688	)		111,688		(7	)		-
Accounts payable-trade		28,525			1,374,694		(7	)		1,403,219
Accrued expenses and other liabilities		(609,577	)		(1,043,249	)	(4	)(7)		(1,652,826	)
Income taxes		(475,082	)		56,112		(6	)		(418,970	)
Other assets		(5,736	)		358,049		(7	)		352,313
Total adjustments		(3,232,203	)		(55,547	)				(3,287,750	)
Net cash provided (used) by operating activities		(640,026	)		635,376					(4,650	)

Cash flows from investing activities:
Purchase of property and equipment		(887,679	)		-					(887,679	)
Proceeds from sales of assets		17,718			-					17,718
Net cash used in investing activities		(869,961	)		-					(869,961	)

Cash flows from financing activities:
Proceeds from long-term debt		982,939			-					982,939
Repurchase of treasury stock		(995,238	)		-					(995,238	)
Net cash used in financing activities		(12,299	)		-					(12,299	)

Effect of exchange rate changes on cash and cash equivalents		-			(380,975	)	(9	)		(380,975	)

Net (decrease) increase in cash and cash equivalents		(1,522,286	)		254,401					(1,267,885	)
Cash and cash equivalents, beginning of period		18,337,258			(254,401	)				18,082,857

Cash and cash equivalents, end of period	$	16,814,972		$	-				$	16,814,972