TANDY LEATHER FACTORY INC 10-K

ITEM 2. PROPERTIES We lease our store locations and 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. As of December 31, 2025, we lease our corporate headquarters, which includes our distribution center and production facility, sales, marketing, administrative, and executive offices. In January 2025, the Company completed the sale of its corporate headquarters buildings which consisted of 191,000 square feet located on approximately 30 acres along with our flagship store and details of this transaction can be found in Note 11 below. The following table summarizes the locations of our leased premises excluding our corporate offices as of the date of this filing: 15 Table of Contents U. S. Locations: Alabama 1 Missouri 3 Alaska 1 Montana 1 Arizona 3 Nebraska 1 Arkansas 1 Nevada 2 California 7 New Jersey 1 Colorado 4 New Mexico 2 Connecticut 1 New York 2 Florida 4 North Carolina 2 Georgia 2 Ohio 3 Idaho 1 Oklahoma 2 Illinois 1 Oregon 2 Indiana 1 Pennsylvania 2 Iowa 1 South Dakota 1 Kansas 1 Tennessee 3 Kentucky 1 Texas 18 Louisiana 2 Utah 4 Maryland 1 Washington 3 Massachusetts 1 Wisconsin 1 Michigan 2 Wyoming 1 Minnesota 2 Virginia 1 Canadian Locations: Alberta 3 Ontario 2 British Columbia 1 Saskatchewan 1 Manitoba 1 Nova Scotia 1 International Locations: Spain 1 We regularly review recent and future projected store 4-wall cash flow taking these forecasted costs as well as projected consumer demand, other nearby stores and a number of other factors into consideration when making decisions to close or open stores in a given location.