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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 4,272	$ 6,822
Accounts receivable, less allowance of $790 in 2020 and $523 in 2019	27,413	25,485
Inventories	36,250	39,261
Prepaid expenses and other current assets	1,926	1,578
Total current assets	69,861	73,146
Property, plant and equipment:
Land	1,420	1,420
Buildings	10,398	10,096
Machinery and equipment	19,357	19,112
Total property, plant and equipment	31,175	30,628
Less: accumulated depreciation	17,078	16,592
Net property, plant and equipment	14,097	14,036
Operating lease right-of-use asset, net	2,711	2,989
Goodwill	4,696	4,696
Intangible assets, less accumulated amortization	16,668	15,793
Other assets	89	89
Total assets	108,122	110,749
Current liabilities:
Accounts payable	5,186	6,693
Operating lease liability - current portion	1,003	1,047
Current portion of mortgage payable	267	267
Other accrued liabilities	6,955	8,576
Total current liabilities	13,411	16,583
Long-term debt	33,853	33,240
Mortgage payable, net of current portion	3,111	3,178
Operating lease liability - non-current portion	1,765	1,961
Other non-current liabilities	158	83
Total liabilities	52,298	55,045
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Common stock, par value $2.50: authorized 8,000,000 shares; issued - 4,838,071 shares in 2020 and 2019, including treasury stock	12,094	12,094
Additional paid-in capital	8,048	8,262
Retained earnings	52,448	51,571
Treasury stock, at cost - 1,497,957 shares in 2020 and 1,487,238 in 2019	(14,449)	(14,235)
Accumulated other comprehensive loss:
Minimum pension liability	(522)	(522)
Translation adjustment	(1,795)	(1,466)
Total accumulated other comprehensive loss	(2,317)	(1,988)
Total stockholders’ equity	55,824	55,704
Total liabilities and stockholders’ equity	$ 108,122	$ 110,749

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements Of Comprehensive Loss Income [Abstract]
Net income	$ 1,277	$ 807
Other comprehensive (loss) income :
Foreign currency translation adjustment	(329)	1
Comprehensive income	$ 948	$ 808

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Basis of Presentation

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of a normal, recurring nature. However, the financial statements do not include all the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2019 for such disclosures. The condensed consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated balance sheet as of that date. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K.

The Company has evaluated events and transactions subsequent to March 31, 2020 and through the date these condensed consolidated financial statements were issued.

Recently Issued and Adopted Accounting Standards

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans Income Statement - Reporting Comprehensive Income (Topic 220). This ASU removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. The Company does not expect that the adoption of ASU 2018-14 will have a material impact on its consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update eliminates, clarifies and modifies certain guidance related to the accounting for income taxes. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020. The Company does not expect the adoption of ASU 2019-12 to have a material effect on its consolidated financial statements

Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

8. Leases

The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2026.

Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease.

ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. As most of our leases do not provide an implicit rate, the present value of lease payments is determined primarily using our incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term on an amount equal to the lease payments in a similar economic environment. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term. For the three months ended March 31, 2020, $0.1 million was included in cost of goods sold and $0.2 million was included in selling, general and administrative expenses in the accompanying condensed consolidated statement of operations.

Information related to leases (in 000’s):

	Three months ended		Three months ended
	March 31, 2020		March 31, 2019
Operating lease cost	$	307	$	290
Operating lease - cash flow	$	271	$	284

	March 31, 2020			March 31, 2019
Weighted-average remaining lease term	4.0 years			3.3 years
Weighted-average discount rate		5	%		5	%

Future minimum lease payments under non-cancellable leases as of March 31, 2020:

2020 (remaining)	$	837
2021		734
2022		467
2023		462
2024		278
Thereafter		294

Total future minimum lease payments	$	3,072
Less: imputed interest		(304	)
Present value of lease liabilities - current		1,003
Present value of lease liabilities - non-current	$	1,765

Segment Information (Details Narrative)	3 Months Ended
Segment Information (Details Narrative)	Mar. 31, 2020	Mar. 31, 2019
Segment Information Details Narrative [Abstract]
Direct import sales to total net sales ratio	6.00%	7.00%

Debt and Shareholders' Equity (Details Narrative)		3 Months Ended
Debt and Shareholders' Equity (Details Narrative)	Oct. 26, 2017 USD ($) ft²	Mar. 31, 2020 USD ($) shares	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Oct. 26, 2017 a
Long Term Debt And Stockholders Equity [Line Items]
Outstanding borrowings under revolving loan agreement		$ 33,852,898,000		$ 33,240,407,000
Cash settlement of stock options		$ 457,027	$ 80,000
Shares authorized to be repurchased during period \| shares		10,719
Amount paid for shares authorized to be repurchased during the period		$ 214,000
Shares that may be purchased under repurchase programs \| shares		207,280
HSBC Bank
Long Term Debt And Stockholders Equity [Line Items]
Credit facility borrowing capacity		$ 50,000,000
Credit facility interest rate		Prime Rate less 1.25%
Credit facility expiration date		May 24, 2023
Facility fee per annum		20.00%
HSBC Bank \| Prime Rate
Long Term Debt And Stockholders Equity [Line Items]
Interest rate		1.25%
First Aid Only Distribution Center
Long Term Debt And Stockholders Equity [Line Items]
Covenant terms and compliance		Under the revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified debt to net worth ratio and a fixed charge coverage ratio and must have annual net income greater than zero, measured as of the end of each fiscal year. At March 31, 2020, the Company was in compliance with the covenants then in effect under the loan agreement
Purchase price	$ 4,000,000
Area of real estate property	53,000				2.86
Variable rate mortgage interest rate		interest rate of LIBOR plus 2.5%
Monthly payment	$ 22,222
Mortgage maturity date		October 31, 2024
First Aid Only Distribution Center \| LIBOR Rate
Long Term Debt And Stockholders Equity [Line Items]
Interest rate	2.50%

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Disaggregation of Revenues

The following table represents external net sales disaggregated by product category, by segment (amounts in thousands):

For the three months ended March 31, 2020

	U.S.		Canada		Europe		Total
Cutting, Sharpening and Measuring	$	11,728	$	1,422	$	2,598	$	15,748
First Aid and Safety		18,715		1,000	$	312		20,027

Total Net Sales	$	30,443	$	2,422	$	2,910	$	35,775

For the three months ended March 31, 2019

	U.S.		Canada		Europe		Total
Cutting, Sharpening and Measuring	$	13,172	$	1,413	$	2,216	$	16,801
First Aid and Safety		14,267		—		302		14,569

Total Net Sales	$	27,439	$	1,413	$	2,518	$	31,370

Stock Based Compensation

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Based Compensation

6. Stock Based Compensation

The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period, which is generally the vesting period. Share-based compensation expenses were $242,924 and $212,000 for the three months ended March 31, 2020 and 2019, respectively.

As of March 31, 2020, there was a total of $1,439,874 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share-based payments granted to the Company’s employees. As of that date, the remaining unamortized expense is expected to be recognized over a weighted average period of approximately three years.

Business Combinations (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Schedule of Purchase Price Allocation to Assets Acquired

The purchase price was allocated to assets acquired as follows (in thousands):

Assets:
Accounts receivable	$	232
Inventory		440
Prepaid Expense		47
Equipment		45
Intangible assets		1,310
Total assets	$	2,074

Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Measurements [Abstract]

Fair Value Measurements

7. Fair Value Measurements

The carrying value of the Company’s bank debt is a reasonable estimate of fair value because of the nature of its payment terms and maturity.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 05, 2020
Cover [Abstract]
Entity Registrant Name	ACME UNITED CORP
Entity Central Index Key	0000002098
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,337,710
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Trading Symbol	ACU
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity File Number	01-07698
Entity Tax Identification Number	06-0236700
Entity Address, Address Line One	55 Walls Drive
Entity Address, City or Town	Fairfield
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06824
City Area Code	203
Local Phone Number	254-6060
Entity Interactive Data Current	Yes
Title of 12(b) Security	$2.50 par value Common Stock
Security Exchange Name	NYSEAMER
Entity Incorporation, State or Country Code	CT
Document Quarterly Report	true
Document Transition Report	false

Business Combinations - Schedule of Purchase Price Allocation to Assets Acquired (Details) - First Aid Central $ in Thousands	Jan. 07, 2020 USD ($)
Assets:
Accounts receivable	$ 232
Inventory	440
Prepaid Expense	47
Equipment	45
Intangible assets	1,310
Total assets	$ 2,074

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases Tables [Abstract]

Information Related to Leases

Information related to leases (in 000’s):

	Three months ended		Three months ended
	March 31, 2020		March 31, 2019
Operating lease cost	$	307	$	290
Operating lease - cash flow	$	271	$	284

	March 31, 2020			March 31, 2019
Weighted-average remaining lease term	4.0 years			3.3 years
Weighted-average discount rate		5	%		5	%

Future Minimum Lease Payments

Future minimum lease payments under non-cancellable leases as of March 31, 2020:

2020 (remaining)	$	837
2021		734
2022		467
2023		462
2024		278
Thereafter		294

Total future minimum lease payments	$	3,072
Less: imputed interest		(304	)
Present value of lease liabilities - current		1,003
Present value of lease liabilities - non-current	$	1,765

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' EQUITY
Accounts receivable, allowance	$ 790	$ 523
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	4,838,071	4,838,071
Treasury stock, shares	1,497,957	1,487,238

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 1,277,000	$ 807,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	568,000	551,000
Amortization of intangible assets	329,000	308,000
Non-cash lease expense	38,000	6,000
Stock compensation expense	243,000	212,000
Provision for bad debt	252,000
Changes in operating assets and liabilities:
Accounts receivable	(1,716,000)	(132,000)
Inventories	3,027,000	770,000
Prepaid expenses and other current assets	(120,000)	(70,000)
Accounts payable	(1,506,000)	(2,544,000)
Other accrued liabilities	(1,599,000)	(591,000)
Total adjustments	(484,000)	(1,490,000)
Net cash provided by (used in) operating activities	793,000	(683,000)
Cash flows from investing activities:
Purchase of property, plant and equipment	(597,000)	(438,000)
Net cash used in investing activities	(2,671,000)	(438,000)
Cash flows from financing activities:
Net borrowings of long-term debt	612,000	1,057,000
Cash settlement of stock options	(457,027)	(80,000)
Repayments on mortgage	(67,000)	(67,000)
Distributions to shareholders	(400,000)	(405,000)
Purchase of treasury stock	(214,000)
Net cash (used in) provided by financing activities	(526,000)	505,000
Effect of exchange rate changes on cash and cash equivalents	(146,000)	5,000
Net change in cash and cash equivalents	(2,550,000)	(611,000)
Cash and cash equivalents at beginning of period	6,822,000	4,409,000
Cash and cash equivalents at end of period	4,272,000	3,798,000
Supplemental cash flow information:
Cash paid for income taxes	319,000	170,000
Cash paid for interest	340,000	$ 487,000
First Aid Central
Cash flows from operating activities:
Net income	100,000
Cash flows from investing activities:
Acquisition of First Aid Central	$ (2,074,000)

Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Sales to external customers	$ 35,775	$ 31,370
Operating income	2,010	1,534
Interest expense, net	315	501
Other expense (income), net	43	(2)
Consolidated income before income taxes	1,652	1,035
Assets	108,122		$ 110,749
United States Segment
Sales to external customers	30,444	27,439
Operating income	1,571	1,257
Assets	96,654		98,578
Canada Segment
Sales to external customers	2,421	1,413
Operating income	205	135
Assets	5,427		6,168
Europe Segment
Sales to external customers	2,910	2,518
Operating income	234	$ 142
Assets	$ 6,041		$ 6,003

Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

10. Subsequent Events

On May 7, 2020, the Company received a loan from HSBC Bank, N.A. in the amount of $3,508,047 under the Paycheck Protection Program (“PPP Loan”) under the Coronavirus Aid, Relief and Economic Security Act. The PPP Loan matures in two years on May 8, 2022, bears interest at a rate of 1.00% per year and is evidenced by a promissory note dated May 7, 2020 (the “Note”). Monthly payments of principal and interest are deferred for six months; commencing November 5, 2020, the Company is required to pay to the lender equal monthly payments of principal and interest. The PPP Loan is unsecured and federally guaranteed. The Note contains customary events of default relating to, among other things, failure to make payments of principal and interest and breaches of representations and warranties. The Company may prepay the PPP Loan at any time prior to maturity with no penalty.

All or a portion of the PPP Loan may be eligible to be forgiven by the U.S. Small Business Administration (“SBA”) and the lender upon application by the Company beginning 60 days after loan approval, provided that the Company shall have used the loan proceeds for eligible purposes, including the payment of payroll, benefits, rent, mortgage interest and utilities, during the eight week period beginning on the date of funding of the loan. Not more than 25% of the amount forgiven may be for non-payroll costs.

The Company intends to use the proceeds of the PPP Loan for purposes which it believes to be consistent with the requirements of the PPP for loan forgiveness. However, no assurance can be given that any application for loan forgiveness that the Company may submit will be approved, in whole or in part.

Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation expense	$ 242,924	$ 212,000
Unrecognized compensation cost	$ 1,439,874
Unrecognized compensation cost recognition period	3 years

Business Combinations

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Business Combinations

9. Business Combinations

On January 7, 2020, the Company purchased the assets of First Aid Central, a Canadian first aid and safety supplier for approximately $2.1 million. Based in Laval, Canada and operating since 2007, First Aid Central produces and sells a broad line of first aid kits, refills, and safety products to a wide range of industries and end users. Its products meet federal Health Canada and provincial regulatory requirement.

The purchase price was allocated to assets acquired as follows (in thousands):

Assets:
Accounts receivable	$	232
Inventory		440
Prepaid Expense		47
Equipment		45
Intangible assets		1,310
Total assets	$	2,074

The acquisition was accounted for as a business combination, pursuant to ASC 805 – Business Combinations. All assets acquired in the acquisition are included in the Company’s Canada segment. Management’s assessment of the valuation of intangible assets is preliminary and finalization of the Company’s purchase price accounting assessment may result in changes to the valuation of the identified intangible assets.

Net sales for the three months ended March 31, 2020 attributable to First Aid Central products were approximately $1.0 million. Net income for the three months ended March 31, 2020 attributable to First Aid Central products was approximately $0.1 million.

Assuming First Aid Central assets were acquired on January 1, 2019, unaudited proforma combined net sales for the three months ended March 31, 2019, for the Company would have been approximately $32.1 million. Unaudited proforma combined net income for the three months ended March 31, 2019 for the Company would have been approximately $0.9 million.

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net sales	$ 35,775	$ 31,370
Cutting, Sharpening and Measuring
Net sales	15,748	16,801
First Aid and Safety
Net sales	20,027	14,569
United States
Net sales	30,443	27,439
United States \| Cutting, Sharpening and Measuring
Net sales	11,728	13,172
United States \| First Aid and Safety
Net sales	18,715	14,267
Canada
Net sales	2,422	1,413
Canada \| Cutting, Sharpening and Measuring
Net sales	1,422	1,413
Canada \| First Aid and Safety
Net sales	1,000
Europe
Net sales	2,910	2,518
Europe \| Cutting, Sharpening and Measuring
Net sales	2,598	2,216
Europe \| First Aid and Safety
Net sales	$ 312	$ 302

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements Of Operations
Net sales	$ 35,775	$ 31,370
Cost of goods sold	22,244	19,568
Gross profit	13,531	11,802
Selling, general and administrative expenses	11,521	10,268
Operating income	2,010	1,534
Non-operating items:
Interest expense	322	510
Interest income	(7)	(9)
Interest expense, net	315	501
Other expense (income), net	43	(2)
Total other expense, net	358	499
Income before income tax expense	1,652	1,035
Income tax expense	375	228
Net income	$ 1,277	$ 807
Basic earnings per share	$ 0.38	$ 0.24
Diluted earnings per share	$ 0.36	$ 0.24
Weighted average number of common shares outstanding-denominator used for basic per share computations	3,349,000	3,351,000
Weighted average number of dilutive stock options outstanding	170,000	41,000
Denominator used for diluted per share computations	3,519,000	3,392,000
Dividends declared per share	$ 0.12	$ 0.12

Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Information Tables [Abstract]

Financial Data By Segment Table

The following table sets forth certain financial data by segment for the three months ended March 31, 2020 and 2019:

Financial data by segment:

(in thousands)

	Three months ended March 31,
Sales to external customers:	2020		2019
United States	$	30,444	$	27,439
Canada		2,421		1,413
Europe		2,910		2,518
Consolidated	$	35,775	$	31,370

Operating income:
United States	$	1,571	$	1,257
Canada		205		135
Europe		234		142
Consolidated	$	2,010	$	1,534

Interest expense, net		315		501
Other expense (income), net		43		(2	)
Consolidated income before income taxes	$	1,652	$	1,035

Assets by segment:

(in thousands)

	March 31,		December 31,
	2020		2019
United States	$	96,654	$	98,578
Canada		5,427		6,168
Europe		6,041		6,003
Consolidated	$	108,122	$	110,749

Leases - Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases Details [Abstract]
Operating lease cost	$ 307	$ 290
Operating lease - cash flow	$ 271	$ 284
Weighted-average remaining lease term	4 years	3 years 3 months 18 days
Weighted-average discount rate	5.00%	5.00%

Contingencies

3 Months Ended

Mar. 31, 2020

Contingencies [Abstract]

Contingencies

2. Contingencies

There are no pending material legal proceedings to which the Company is a party, or, to the actual knowledge of the Company, contemplated by any governmental authority.

Debt and Shareholders' Equity

3 Months Ended

Mar. 31, 2020

Long Term Debt And Stockholders Equity [Abstract]

Debt and Shareholders' Equity

4. Debt and Shareholders’ Equity

Long-term debt consists of borrowings under the Company’s revolving loan agreement with HSBC Bank, N.A. The agreement provides for borrowings of up to $50 million at Prime Rate less 1.25%. The credit facility has an expiration date of May 24, 2023. The Company must pay a facility fee, payable quarterly, in an amount equal to two tenths of one percent (.20%) per annum of the average daily unused portion of the revolving credit line. The facility is intended to provide liquidity for working capital, growth, dividends, acquisition, share repurchases and other business activities. Under the revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified debt to net worth ratio and a fixed charge coverage ratio and must have annual net income greater than zero, measured as of the end of each fiscal year. At March 31, 2020, the Company was in compliance with the covenants then in effect under the loan agreement.

As of March 31, 2020, and December 31, 2019, the Company had outstanding borrowings of approximately $33,852,898 and $33,240,407, respectively, under the Company’s revolving loan agreement with HSBC.

On October 26, 2017, the Company exercised its option to purchase its First Aid Only manufacturing and distribution center in Vancouver, WA for $4.0 million. The property consists of 53,000 square feet of office, manufacturing, and warehouse space on 2.86 acres. The purchase was financed by a variable rate mortgage with HSBC Bank, N.A. at an interest rate of LIBOR plus 2.5%. Commencing on December 1, 2017, principal payments of $22,222 are due monthly, with all amounts outstanding due on maturity on October 31, 2024.

During the three months ended March 31, 2020 the Company paid approximately $457,027, to optionees who had elected a net cash settlement of their respective employee stock options.

During the three months ended March 31, 2020, the Company paid approximately $214,000 to repurchase a total of 10,719 shares of its Common Stock. As of March 31, 2020, 207,280 shares may be purchased in the future under the repurchase programs announced in 2010 and 2019.

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Future Minimum Lease Payments:
2020 (remaining)	$ 837
2021	734
2022	467
2023	462
2024	278
Thereafter	294
Total future minimum lease payments	3,072
Less: imputed interest	(304)
Present value of lease liabilities - current	1,003	$ 1,047
Present value of lease liabilities - non-current	$ 1,765	$ 1,961

Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
Leases (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Lessee Lease Description [Line Items]
Operating lease expense	$ 307	$ 290
Cost of Goods Sold
Lessee Lease Description [Line Items]
Operating lease expense	100
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Operating lease expense	$ 200

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning Balance at Dec. 31, 2018	$ 52,333	$ 12,094	$ (14,235)	$ 8,982	$ (2,058)	$ 47,550
Beginning Balance, shares at Dec. 31, 2018		3,350,833
Net income	807					807
Other comprehensive loss	1				1
Adoption of ASU 2018-02					(122)	122
Stock compensation expense	212			212
Distributions to shareholders	(405)					(405)
Cash settlement of stock options	(80)			(80)
Ending Balance at Mar. 31, 2019	52,868	$ 12,094	(14,235)	9,114	(2,179)	48,074
Ending Balance, shares at Mar. 31, 2019		3,350,833
Beginning Balance at Dec. 31, 2019	55,704	$ 12,094	(14,235)	8,262	(1,988)	51,571
Beginning Balance, shares at Dec. 31, 2019		3,350,833
Net income	1,277					1,277
Other comprehensive loss	(329)				(329)
Stock compensation expense	243			243
Distributions to shareholders	(400)					(400)
Cash settlement of stock options	(457)			(457)
Purchase of treasury stock	(214)		(214)
Purchase of treasury stock (shares)		(10,719)
Ending Balance at Mar. 31, 2020	$ 55,824	$ 12,094	$ (14,449)	$ 8,048	$ (2,317)	$ 52,448
Ending Balance, shares at Mar. 31, 2020		3,340,114

Subsequent Events (Details Narrative) - Subsequent Event - PPP Loan	May 07, 2020 USD ($)
Subsequent Event [Line Items]
Loan received from bank	$ 3,508,047
Maturity period	2 years
Maturity date	May 08, 2022
Interest rate	1.00%
Period for which principal and interest payments are deferred	6 months
Maximum
Subsequent Event [Line Items]
Percentage of debt forgiven for non-payroll costs	25.00%

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

Nature of Goods and Services

The Company recognizes revenue from the sales of a broad line of products that are grouped into two main categories: (i) cutting, sharpening and measuring; and (ii) first aid and safety. The cutting, sharpening and measuring category includes scissors, knives, paper trimmers, pencil sharpeners and other sharpening tools. The first aid and safety category includes first aid kits and refills and a variety of safety products. Revenue recognition is evaluated through the following five steps: (i) identification of the contract or contracts with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied.

When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue is generated by the sale of the Company’s products to its customers. Sales contracts (purchase orders) generally have a single performance obligation that is satisfied at a point in time, with shipment or delivery, depending on the terms of the underlying contract. Revenue is measured based on the consideration specified in the contract. The amount of consideration we receive and revenue we recognize is impacted by incentives ("customer rebates"), including sales rebates, which are generally tied to sales volume levels, in-store promotional allowances, shared media and customer catalogue allowances and other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowance for returns and discounts. We generally recognize customer rebate costs as a deduction to gross sales at the time that the associated revenue is recognized.

Significant Payment Terms

Payment terms for each customer are dependent on the agreed upon contractual repayment terms. Payment terms typically are between 30 and 90 days and vary depending on the size of the customer and its risk profile to the Company. Some customers receive discounts for early payment.

Product Returns

The Company accepts product returns in the normal course of business. The Company estimates reserves for returns and the related refunds to customers based on historical experience. Reserves for returned merchandise are included as a component of “Accounts receivable” in the condensed consolidated balance sheets.

Practical Expedient Usage and Accounting Policy Elections

For the Company’s contracts that have an original duration of one year or less, the Company uses the practical expedient in ASC 606-10-32-18 applicable to such contracts and does not consider the time value of money in relation to significant financing components. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements.

Per ASC 606-10-25-18B, the Company has elected to account for shipping and handling activities that occur after the customer has obtained control as a fulfilment activity instead of a performance obligation. Furthermore, shipping and handling activities performed before transfer of control of the product also do not constitute a separate and distinct performance obligation. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements.

The Company has elected to exclude from the transaction price those amounts which relate to sales and other taxes that are assessed by governmental authorities and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer.

Applying the practical expedient in ASC 340-40-25-4, Other Assets and Deferred Costs, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred. These costs are included in “Selling, general and administrative expenses.” The effect of applying this practical expedient did not have an impact on the Company’s condensed consolidated financial statements.

Disaggregation of Revenues

The following table represents external net sales disaggregated by product category, by segment (amounts in thousands):

For the three months ended March 31, 2020

	U.S.		Canada		Europe		Total
Cutting, Sharpening and Measuring	$	11,728	$	1,422	$	2,598	$	15,748
First Aid and Safety		18,715		1,000	$	312		20,027

Total Net Sales	$	30,443	$	2,422	$	2,910	$	35,775

For the three months ended March 31, 2019

	U.S.		Canada		Europe		Total
Cutting, Sharpening and Measuring	$	13,172	$	1,413	$	2,216	$	16,801
First Aid and Safety		14,267		—		302		14,569

Total Net Sales	$	27,439	$	1,413	$	2,518	$	31,370

Business Combinations - (Details Narrative) - USD ($) $ in Thousands		3 Months Ended
	Jan. 07, 2020	Mar. 31, 2020	Mar. 31, 2019
Business Acquisition [Line Items]
Net sales		$ 35,775	$ 31,370
Net income		1,277	807
First Aid Central
Business Acquisition [Line Items]
Purchase price	$ 2,100
Net sales		1,000
Net income		100
Business acquisition, proforma net income		32,100	900
Business acquisition, proforma net sales		$ 900	$ 32,100

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Segment Information

3 Months Ended

Mar. 31, 2020

Segment Information [Abstract]

Segment Information

5. Segment Information

The Company reports financial information based on the organizational structure used by the Company’s chief operating decision makers for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada; and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, the Company’s chief operating decision makers review the financial results of both on a consolidated basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of cutting and sharpening devices, measuring instruments and first aid and safety products for school, office, home, hardware, sporting and industrial use.

Domestic sales orders are filled primarily from the Company’s distribution centers in North Carolina, Washington, Massachusetts, Tennessee and California. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots.

Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Individual direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 6% of the Company’s total net sales for each of the three months ended March 31, 2020 compared to 7% for the comparable period in 2019.

The Chief Operating Decision Maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment revenues are defined as total revenues, including both external customer revenue and inter-segment revenue. Segment operating earnings are defined as segment revenues, less cost of goods sold and operating expenses. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Inter-segment amounts are eliminated to arrive at consolidated financial results.

The following table sets forth certain financial data by segment for the three months ended March 31, 2020 and 2019:

Financial data by segment:

(in thousands)

	Three months ended March 31,
Sales to external customers:	2020		2019
United States	$	30,444	$	27,439
Canada		2,421		1,413
Europe		2,910		2,518
Consolidated	$	35,775	$	31,370

Operating income:
United States	$	1,571	$	1,257
Canada		205		135
Europe		234		142
Consolidated	$	2,010	$	1,534

Interest expense, net		315		501
Other expense (income), net		43		(2	)
Consolidated income before income taxes	$	1,652	$	1,035

Assets by segment:

(in thousands)

	March 31,		December 31,
	2020		2019
United States	$	96,654	$	98,578
Canada		5,427		6,168
Europe		6,041		6,003
Consolidated	$	108,122	$	110,749