# EDGAR Filing Document

**Accession Number:** 0001456189
**File Stem:** 0001062993-26-002511
**Filing Date:** 2026-5
**Character Count:** 25673
**Document Hash:** c49dcf341a1510df82c20bce0bdd9011
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-26-002511.hdr.sgml**: 20260512

**ACCESSION NUMBER**: 0001062993-26-002511

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260512

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260512

**DATE AS OF CHANGE**: 20260512

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Leatt Corp
- **CENTRAL INDEX KEY:** 0001456189
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTORCYCLES, BICYCLES & PARTS [3751]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 202819367
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-54693
- **FILM NUMBER:** 26965932

**BUSINESS ADDRESS:**
- **STREET 1:** 12 KIEPERSOL DRIVE, ATLAS GARDENS
- **STREET 2:** CONTERMANSKLOOF ROAD
- **CITY:** DURBANVILLE, WESTERN CAPE
- **STATE:** T3
- **ZIP:** 7550
- **BUSINESS PHONE:** (27)21-556-5409

**MAIL ADDRESS:**
- **STREET 1:** 12 KIEPERSOL CRES, ATLAS GARDENS
- **STREET 2:** CONTERMANSKLOOF ROAD
- **CITY:** DURBANVILLE, WESTERN CAPE
- **STATE:** T3
- **ZIP:** 7550

?xml version='1.0' encoding='ASCII'? Leatt Corp.: Form 8-K - Filed by newsfilecorp.com

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**___________________________**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported):  **<u>May 12, 2026</u>**

**<u>LEATT CORP.</u>**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
|  **<u>Nevada</u>** |  **<u>000-54693</u>** |  **<u>20-2819367</u>** |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **12 Kiepersol Drive, Atlas Gardens, Contermanskloof Road <u>Durbanville, Western Cape, South Africa 7550</u>** (Address of principal executive offices) (ZIP Code)

Registrant's telephone number, including area code:  **<u>+27-21-557-7257</u>**

**<u>Not Applicable</u>**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbols** | **Name of each exchange on which registered** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).

Emerging growth company ☑

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☑

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**ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

On May 12, 2026, the Company issued a press release announcing its financial results for the quarter ended May 31, 2026. A copy of the press release, which the Company is furnishing to the Securities and Exchange Commission (the "Commission") is attached as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Current Report on Form 8-K, the information contained in this Report and the exhibit attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information or such exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**ITEM 7.01 REGULATION FD DISCLOSURE.**

The information set forth in Item 2.02 above is incorporated by reference herein.

**ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.**

**(d) Exhibits.**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](exhibit99-1.htm) | [Press Release, dated May 12, 2026](exhibit99-1.htm) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **LEATT CORPORATION** | **LEATT CORPORATION** |
| Dated: May 12, 2026 | By: | <u>/s/ Sean Macdonald</u> |
|  |  | Sean Macdonald |
|  |  | Chief Executive Officer and Chief Financial Officer |

---

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**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](exhibit99-1.htm) | [Press Release, dated May 12, 2026](exhibit99-1.htm) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

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## Exhibit 99.1

------

![](exhibit99-1x001.jpg)

**Leatt Corp Announces Results for First Quarter 2026**

*Total revenues increase 27%; net income increases 58%;*

*continued revenue growth in all major product categories*

**CAPE TOWN, South Africa**, (May 12, 2026) - Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of head-to-toe protective equipment for Moto, MTB, ADV, and a wide range of extreme and high-velocity sports, today announced financial results for the first quarter ended March 31, 2026. All financial numbers are in U.S. dollars.

**First Quarter 2026 and Recent Highlights**

· First quarter 2026 revenues were $19.51 million, up 27%, compared to the 2025 first quarter.

· First quarter 2026 net income was $1.77 million, up 58%, compared to the 2025 first quarter.

· Revenue growth in all major product categories.

· Consumer direct sales increased 49%, compared to the first quarter of 2025.

· Cash flow generated by operations was $4.55 million.

· Cash, cash equivalents and restricted cash increased 30%, to $17.19 million.

Leatt Chief Executive Officer Sean Macdonald commented, "The first quarter of 2026 was a great start to the year for our Company. Revenues continue to grow strongly, global demand for our products fueled robust re-ordering patterns, and domestic sales showed very encouraging traction at the dealer and consumer level. We continue to accelerate our investments in developing emerging markets, as well as in developing Leatt as a global consumer brand that compels riders to engage with us.

"Global revenues for the first quarter were $19.51 million, an increase of 27%, compared to the 2025 first quarter. Consumer direct sales increased by 49%, which we believe is a testament to the tremendous momentum of the Leatt brand's attraction at the consumer level. International sales to our distribution partners increased by 24%, and dealer direct sales increased by 30%, as our re-organized and re-energized MOTO and MTB domestic sales force continues to develop and build a strong, sustainable and committed dealer network and gain substantial traction with our head-to-toe product offerings.

------

"We grew revenues year-over-year in all of our major product categories: helmet revenues increased by 59%; other products, parts and accessories increased by 9%; neck brace revenues increased by 7%; and body armor revenues increased by 25%.

"Net income for the first quarter of 2026 was $1.77 million, an increase of 58%, over the 2025 first quarter, and income before tax was $2.39 million, an increase of $0.88 million. Gross profit as a percentage of sales remained stable at 44%, as domestic sales continued to grow and we continue to ship our newer products and improve our global logistics efficiencies.

"Cash increased by $3.96 million, to $17.19 million, despite strong investment in our marketing and selling capabilities, and in our product and brand development that will fuel future growth.

"We expect working capital investments to grow in the coming periods as ordering patterns continue to signal growth, and we have sufficient liquidity to fuel this growth."

**Financial Summary**

Revenues for the three months ended March 31, 2026 were $19.51 million, a 27% increase, compared to revenues of $15.37 million for the first quarter of 2025. This increase in worldwide revenues is primarily attributable to a $1.99 million increase in helmet sales, a $1.72 million increase in body armor sales, a $0.38 million increase in sales of other products, parts and accessories, and a $0.05 million increase in neck brace sales.

Net income for the three months ended March 31, 2026 was $1.77 million, or $0.28 per basic and $0.27 per diluted share, a 58% increase compared to $1.12 million for the first quarter of 2025.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. Cash, cash equivalents and restricted cash increased by $3.96 million or 30%, for the three months ended March 31, 2026, when compared to $13.23 million in cash, cash equivalents and restricted cash on hand at December 31, 2025, and a current ratio of 8.2:1.

Founder and Chairman Dr. Christopher Leatt remarked, "The continued growth in worldwide sales of our exceptional product categories and the popularity of our brand with consumers validates the exceptional ability of our team of developers and engineers to continuously develop an exciting pipeline of innovative products designed for a wide range of consumers."

------

**Business Outlook**

Mr. Macdonald added, "Our entire team is very excited about the future of Leatt. While there are still some potentially challenging global geo-political headwinds, domestic sales are gaining promising traction, participation remains strong, and international ordering patterns remain robust, driven by strong demand for our products around the world.

"There is real excitement about the Leatt brand, both in the U.S. and abroad. We are accelerating our drive to elevate the brand globally to reach a much wider audience across our core markets, and I look forward to sharing the results of this shift in campaign focus in the coming quarters.

"With a focus on investing in our innovative product portfolio, a drive to accelerate and amplify our brand to meet a much wider rider audience and a robust balance sheet to fuel growth, we remain confident that we are well positioned for future growth and increased shareholder value."

**Conference Call**

The Company will host a conference call at 10:00 AM ET on Tuesday, May 12, 2026, to discuss the 2026 first quarter results.

Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-800-579-2543 (U.S.A) or 1-785-424-1789 (international) to access the call.

**Audio Webcast**

There will also be a simultaneous live webcast through the Company's website, <u>www.leatt-corp.com</u>. Participants should register on the website approximately ten minutes prior to the start of the webcast.

**Replay**

An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (U.S.A) or 1-412-317-6671 (international) and using passcode 11161813.

For those unable to attend the call, a recording of the live webcast will be archived shortly following the event for 30 days on the Company's website.

**About Leatt Corp**

Driven by the science of thrill, Leatt Corporation develops head-to-toe personal protective gear for extreme and action sports. This includes the award-winning Leatt-Brace®, a neck brace system considered the gold standard for neck protection when worn in conjunction with a helmet. Leatt products are designed for participants in extreme sports that use motorcycles, bicycles, mountain bikes, all-terrain vehicles, snowmobiles, and other open-air vehicles. For more information, visit <u>www.leatt.com</u><u>.</u>

**Follow Leatt®** on <u>Facebook</u> and <u>Instagram</u>.

------

**Forward-looking Statements**

*This press release may contain forward-looking statements regarding Leatt Corporation (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the Company's ability to maintain sufficient liquidity to continue investing in its product portfolio and elevating the brand to reach a wider audience and fuel growth; the Company's ability to continue developing a pipeline of innovative products that connect with consumers; the general ability of the Company to achieve its commercial objectives,; the business strategy, plans and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.*

**Contact:**

Michael Mason

Investor Relations

<u>Investor-info@leatt.com</u>

**[FINANCIAL TABLES TO FOLLOW]**

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**LEATT CORPORATION<br>CONSOLIDATED BALANCE SHEETS**

<br> ---

| | | |
|:---|:---|:---|
| **ASSETS** | **ASSETS** | **ASSETS** |
|  | **March 31, 2026** | **December 31, 2025** |
|  | **Unaudited** | **Audited** |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $17014780 | $12988111 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 175996 | 244936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 6262523 | 7904885 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | 16355242 | 20897693 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments in advance | 1243364 | 1197284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | 114302 | 734193 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 4391989 | 3634255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 45558196 | 47601357 |
| Property and equipment, net | 3295373 | 3660704 |
| Operating lease right-of-use assets, net | 262967 | 342413 |
| Deferred tax asset, net | 396294 | 396294 |
| Other Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 44910 | 45189 |
| Total Assets | $49557740 | $52045957 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $4651604 | $8595892 |
| &nbsp;&nbsp;&nbsp;&nbsp;Refund liability | 65084 | 65140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable, current |  | 1804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 262967 | 309019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 32813 | 8370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short term loan, net of finance charges | 540926 | 800000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5553394 | 9780225 |
| Operating lease liabilities, net of current portion |  | 33394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5553394 | 9813619 |
| Commitments and contingencies |  |  |
| &nbsp;&nbsp;Preferred stock, $.001 par value, 1,120,000 shares authorized, 120,000 shares issued and outstanding as of March 31, 2026 and December 31, 2024 | 3000 | 3000 |
| &nbsp;&nbsp;Common stock, $.001 par value, 28,000,000 shares authorized, 6,237,561 shares issued and 6,233,773 outstanding as of March 31, 2026 and 6,255,989 shares issued and 6,234,689 outstanding as of December 31, 2025 | 130533 | 130534 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (1097672) | (983640) |
| &nbsp;&nbsp;Retained earnings | 33629797 | 31859103 |
| &nbsp;&nbsp;Additional paid - in capital | 11373490 | 11478399 |
| &nbsp;&nbsp;Treasury stock, at cost, 3,788 and 21,300 shares of common stock, as of March 31, 2026 and December 31, 2025, respectively | (34802) | (255058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 44004346 | 42232338 |
| Total Liabilities and Stockholders' Equity | $49557740 | $52045957 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**LEATT CORPORATION<br>CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

<br> ---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31** | **March 31** |
|  | **2026** | **2025** |
|  | **Unaudited** | **Unaudited** |
| Revenues | $19507486 | $15367864 |
| Cost of Revenues | 10933059 | 8646851 |
| Gross Profit | 8574427 | 6721013 |
| Product Royalty Income | 372819 | 85298 |
| Operating Expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and wages | 2148626 | 1857380 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions and consulting expenses | 235793 | 157722 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 290492 | 360051 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising and marketing | 1061196 | 892057 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office lease and expenses | 240715 | 169176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development costs | 797348 | 664490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bad debt recovery | 130082 | (63504) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 1210233 | 1012649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 514616 | 327008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6629101 | 5377029 |
| Income from Operations | 2318145 | 1429282 |
| Other Income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and other income, net | 74496 | 82147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 74496 | 82147 |
| Income Before Provision for Income Taxes | 2392641 | 1511429 |
| Provision for Income taxes | 621947 | 390305 |
| Net Income Available to Common Shareholders | $1770694 | $1121124 |
| Net Income per Common Share |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.28 | $0.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.27 | $0.17 |
| Weighted Average Number of Common Shares Outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 6236178 | 6217550 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 6466734 | 6470546 |
| Comprehensive Income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income | $1770694 | $1121124 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net of $0 and $0 deferred income taxes in 2026 and 2025 Foreign currency translation | (114032) | 66380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Comprehensive Income | $1656662 | $1187504 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**LEATT CORPORATION<br>CONSOLIDATED STATEMENTS OF CASH FLOWS<br>FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

<br> ---

| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Cash flows from operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $1770694 | $1121124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 514616 | 327008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 184286 | 120837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense (recovery) | 130082 | (63504) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory reserve | 37852 | 46291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of property and equipment | (388) | (14985) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in refund liability | (56) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1512281 | 92226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 4504599 | 1012261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments in advance | (46080) | (221652) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (757734) | 7342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | 619891 | 409187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term accounts receivable |  | 56391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 279 | (851) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (3944289) | (2123551) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 24443 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 4550476 | 768124 |
| Cash flows from investing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (166885) | (195826) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 743 | 15250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (166142) | (180576) |
| Cash flows from financing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable to bank | (1804) | (13003) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of short-term loan, net | (259074) | (288465) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury stock under share repurchase plan | (68940) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (329818) | (301468) |
| Effect of exchange rates on cash, cash equivalents and restricted cash | (96787) | 45162 |
| Net increase in cash, cash equivalents and restricted cash | 3957729 | 331242 |
| Cash, cash equivalents and restricted cash - beginning of period | 13233047 | 12368100 |
| Cash, cash equivalents and restricted cash - end of period | $17190776 | $12699342 |
| Reconciliation of cash, cash equivalents and restricted cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 17014780 | 12699342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 175996 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | $17190776 | $12699342 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $12180 | $17170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncash investing and financing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of treasury shares | $289196 | $- |

---

The accompanying notes are an integral part of these consolidated financial statements.

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