Note 1 - Business and Basis of Presentation |
6 Months Ended |
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Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] |
Note 1. Business and Basis of Presentation
Description of Business
Turning Point Brands, Inc., including its subsidiaries (collectively referred to herein as the “Company,” “we,” “our,” or “us”), is a leading manufacturer, marketer and distributor of branded consumer products. The Company sells a wide range of products to adult consumers consisting of staple products with its iconic brands Zig-Zag® and Stoker’s® and its next generation products to fulfill evolving consumer preferences. The Company's segments are led by its core proprietary and iconic brands: Zig-Zag® and Stoker’s®, FRE® and ALP®. The Company’s products are available in more than 220,000 retail outlets in North America. The Company operates segments, Zig-Zag products and Stoker’s products.
Basis of Presentation
The accompanying unaudited, interim, consolidated financial statements have been prepared in accordance with the accounting practices described in the Company’s audited, consolidated financial statements as of and for the year ended December 31, 2025. In the opinion of management, the unaudited, interim, consolidated financial statements included herein contain all adjustments necessary to present fairly the financial position, results of operations, and cash flows of the Company for the periods presented. Such adjustments, other than nonrecurring adjustments separately disclosed, are of a normal and recurring nature. The operating results for interim periods are not necessarily indicative of results to be expected for a full year or future interim periods. The unaudited, interim, consolidated financial statements should be read in conjunction with the Company’s audited, consolidated financial statements and accompanying notes as of and for the year ended December 31, 2025. The accompanying interim, consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States (“GAAP”) with respect to annual financial statements.
Certain prior year amounts have been reclassified to conform to the current year’s presentation. The changes did not have an impact on the Company’s consolidated financial position, results of operations, or cash flows in any of the periods presented.
Tariff Refunds
On March 4, 2026, the U.S. Court of International Trade issued an additional ruling that importers that paid tariffs under the International Emergency Economic Powers Act ("IEEPA") are due refunds and ordered U.S. Customs and Border Protection ("CBP") to begin the refund process. Consistent with ASC 450-30 Gain contingencies, the Company does not recognize a tariff refund until the gain is realized or realizable – generally upon receipt of funds. The Company paid IEEPA tariffs totaling $17.9 million. In June 2026, the Company received tariff refunds of $17.8 million from CBP related to those tariffs. The refund consisted of $5.5 million in costs that were capitalized and on the balance sheet with the remaining $12.3 million recorded as a reduction to cost of goods sold based on the nature of the underlying tariff charges.
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