TANDY LEATHER FACTORY INC 10-K

ITEM 2. PROPERTIES We lease our store locations, with the exception of our flagship store located in Fort Worth, Texas. The majority of our stores have initial lease terms of at least five years. The leases are generally renewable, with increases in lease rental rates in some cases. We believe that all of our properties are adequately covered by insurance. We own the 22,000 square foot building that houses our flagship store. Further, we own our corporate headquarters, which includes our central distribution center and manufacturing facility, sales, marketing, administrative, and executive offices. The facility consists of 191,000 square feet located on approximately 30 acres. 18 Table of Contents The following table summarizes the locations of our leased premises as of the date of this filing: U.S. Locations Alabama 1 Missouri 3 Alaska 1 Montana 1 Arizona 3 Nebraska 1 Arkansas 1 Nevada 2 California 10 New Mexico 2 Colorado 4 New York 1 Connecticut 1 New Jersey 1 Florida 5 North Carolina 2 Georgia 2 Ohio 3 Idaho 1 Oklahoma 2 Illinois 1 Oregon 2 Indiana 1 Pennsylvania 3 Iowa 1 South Carolina 1 Kansas 1 South Dakota 1 Kentucky 1 Tennessee 3 Louisiana 2 Texas 16 Maryland 1 Utah 4 Massachusetts 1 Washington 3 Michigan 2 Wisconsin 1 Minnesota 2 Wyoming 1 Canadian locations: International locations: Alberta 3 Spain 1 British Columbia 1 Manitoba 1 Nova Scotia 1 Ontario 3 Saskatchewan 1 As a result of the COVID-19 pandemic and resulting legal requirements in most of our markets, we temporarily closed all of our stores to the public during March 2020. In addition, during the second quarter of 2020, we negotiated lease modifications for some of our properties with our landlords to abate or defer a portion of the rent or other expenses due during the time period that our properties were closed/limited. During the fourth quarter of 2020 and into the present, we continued to manage through the pandemic as we saw increased spikes in COVID-19 infections, and continue to see varying levels of infection rates, and were forced to close certain stores or move certain stores to “curbside only” operations. As of the date of filing this Form 10-K, most of our stores have reopened fully, and reduced store capacity, social distancing and other measures are in place in all stores but are not believed to be materially impacting store sales in most locations. However, some stores have had to temporarily close due to COVID-19, especially with the rise of the Delta variant in the third quarter of 2021, which has negatively impacted sales for those stores. 19 Table of Contents