TURNING POINT BRANDS, INC., 10-K filed on 3/6/2025
Annual Report
v3.25.0.1
Document And Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 28, 2025
Jun. 30, 2024
Document Information [Line Items]      
Entity Central Index Key 0001290677    
Entity Registrant Name Turning Point Brands, Inc.    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2024    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Document Transition Report false    
Entity File Number 001-37763    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-0709285    
Entity Address, Address Line One 5201 Interchange Way    
Entity Address, City or Town Louisville    
Entity Address, State or Province KY    
Entity Address, Postal Zip Code 40229    
City Area Code 502    
Local Phone Number 778-4421    
Title of 12(b) Security Common Stock, $0.01 par value    
Trading Symbol TPB    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 484,000,000
Entity Common Stock, Shares Outstanding   17,747,117  
Auditor Firm ID 49    
Auditor Name RSM US LLP    
Auditor Location Charlotte, North Carolina    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash $ 46,158 $ 116,725
Accounts receivable, net of allowances of $66 in 2024 and $78 in 2023 9,624 10,002
Inventories, net 96,253 91,698
Current assets held for sale 11,470 12,267
Other Assets, Current 34,700 36,937
Total current assets 198,205 267,629
Property, plant, and equipment, net 26,337 25,142
Deferred tax assets, net 995 1,468
Operating and Finance Lease, Right-of-Use Asset 11,610 11,359
Deferred financing costs, net 1,823 2,450
Goodwill 135,932 136,250
Other intangible assets, net 65,254 66,490
Master Settlement Agreement (MSA) escrow deposits 28,676 28,684
Noncurrent assets held for sale 3,859 14,731
Other assets 20,662 15,166
Total assets 493,353 569,369
Liabilities, Current [Abstract]    
Accounts payable 11,675 7,794
Accrued Liabilities, Current 31,096 32,052
Current portion of long-term debt 0 58,294
Current liabilities held for sale 2,049 2,209
Total current liabilities 44,820 100,349
Notes payable and long-term debt 248,604 307,064
Operating and Finance Lease, Liability, Noncurrent 9,549 9,898
Noncurrent liabilities held for sale 0 52
Total liabilities 302,973 417,363
Commitments and contingencies
Stockholders’ equity:    
Preferred stock; $0.01 par value; authorized shares 40,000,000; issued and outstanding shares -0- 0 0
Additional paid-in capital 126,662 119,075
Cost of repurchased common stock (2,471,405 and 2,316,460 shares at December 31, 2024 and 2023) (83,144) (78,093)
Accumulated other comprehensive loss (2,903) (2,648)
Accumulated earnings 147,164 112,443
Non-controlling interest 2,399 1,030
Total stockholders’ equity 190,380 152,006
Total liabilities and stockholders’ equity 493,353 569,369
Voting Common Stock [Member]    
Stockholders’ equity:    
Common Stock 202 199
Nonvoting Common Stock [Member]    
Stockholders’ equity:    
Common Stock $ 0 $ 0
v3.25.0.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Allowance for doubtful accounts $ 66 $ 78
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 40,000,000 40,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Treasury stock, shares repurchased (in shares) 2,471,405 2,316,460
Voting Common Stock [Member]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 190,000,000 190,000,000
Common stock, shares issued (in shares) 20,200,886 19,922,137
Common stock, shares outstanding (in shares) 17,729,481 17,605,677
Nonvoting Common Stock [Member]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 10,000,000 10,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.25.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net sales [1] $ 360,660 $ 325,064 $ 321,229
Cost of sales 159,095 142,122 143,399
Gross profit 201,565 182,942 177,830
Selling, general, and administrative expenses 122,407 104,327 103,822
Other operating income (1,674) (4,345) 0
Operating income 80,832 82,960 74,008
Interest expense, net 13,983 14,645 19,524
Investment loss 1,893 11,914 13,303
Other income 0 (4,000) 0
Gain on extinguishment of debt 0 (1,664) (885)
Income from continuing operations before income taxes 64,956 62,065 42,066
Income tax expense 16,929 23,999 10,980
Income from continuing operations 48,027 38,066 31,086
Loss from discontinued operations, net of tax (7,517) (285) (19,929)
Consolidated net income 40,510 37,781 11,157
Net income (loss) attributable to non-controlling interest 701 (681) (484)
Net income attributable to Turning Point Brands, Inc. $ 39,809 $ 38,462 $ 11,641
Basic income (loss) per common share:      
Continuing operations (in dollars per share) $ 2.67 $ 2.2 $ 1.76
Discontinued operations (in dollars per share) (0.43) (0.01) (1.11)
Basic earnings per share (in dollars per share) 2.24 2.19 0.65
Diluted income (loss) per common share:      
Continuing operations (in dollars per share) 2.53 2.02 1.75
Discontinued operations (in dollars per share) (0.39) (0.01) (1.11)
Diluted earnings per share (in dollars per share) $ 2.14 $ 2.01 $ 0.64
Weighted average common shares outstanding:      
Basic (in shares) 17,734,239 17,578,270 17,899,794
Diluted (in shares) 19,362,806 20,467,406 18,055,015
[1] Net sales include excise taxes billed to customers of $0.8 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively. Net sales include excise taxes billed to customer of $2.3 million and $3.4 million for the nine months ended September 30, 2024 and 2023, respectively.
v3.25.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Consolidated net income $ 40,510 $ 37,781 $ 11,157
Other comprehensive income (loss), net of tax      
Unrealized (loss) gain on MSA investments, net of tax of $9 in 2024 and $161 in 2023 and $860 in 2022 (17) 542 (2,879)
Foreign currency translation, net of tax of $0 in 2024, 2023 and 2022 (197) (74) (269)
Unrealized (loss) gain on derivative instruments, net of tax of $54 in 2024, $237 in 2023 and $273 in 2022 (173) (747) 857
Unrealized gain on investments, net of tax of $0 in 2024 50 0 0
Consolidated comprehensive income 40,173 37,502 8,866
Comprehensive income (loss) attributable to non-controlling interest 619 (705) (577)
Comprehensive income attributable to Turning Point Brands, Inc. $ 39,554 $ 38,207 $ 9,443
v3.25.0.1
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrealized gain (loss) on MSA investments, tax $ 9 $ 161 $ 860
Foreign currency translation, tax 0 0 0
Unrealized gain (loss) on derivative instruments, tax 54 237 273
Unrealized gain on investments, tax $ 0 $ 0 $ 0
v3.25.0.1
Consolidated Statements of Cash Flows
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Cash flows from operating activities:      
Consolidated net income $ 40,510 $ 37,781 $ 11,157
Loss from discontinued operations, net of tax 7,517 285 19,929
Adjustments to reconcile net income to net cash provided by operating activities:      
Gain on extinguishment of debt 0 (1,664) (885)
Loss (gain) on sale of property, plant, and equipment 75 62 (33)
Gain on insurance recovery of inventory loss 0 (15,181) 0
Loss on investments 2,722 12,177 13,570
Depreciation and other amortization expense 4,439 2,921 2,859
Amortization of other intangible assets 1,223 1,197 524
Amortization of deferred financing costs 2,430 2,445 2,576
Deferred income tax (benefit) expense 519 7,024 (6,506)
Stock compensation expense 7,243 6,561 5,273
Noncash lease (income) expense (622) (72) 84
Gain on MSA investments (14) 0 (54)
Changes in operating assets and liabilities:      
Accounts receivable 185 (2,625) (3,344)
Inventories (4,770) 13,287 (26,719)
Other current assets (1,421) (3,794) (379)
Other assets (1,767) (4,865) 420
Accounts payable 3,689 100 1,506
Accrued liabilities and other (1,000) 601 1,320
Operating cash flows from continuing operations 60,958 56,240 21,298
Operating cash flows from discontinued operations 6,104 10,641 8,975
Net cash provided by operating activities 67,062 66,881 30,273
Cash flows from investing activities:      
Capital expenditures (4,623) (5,707) (7,834)
Purchases of investments (10,857) (202) (1,000)
Proceeds from sale of investments 5,420 0 0
Purchases of non-marketable equity investments (500) 0 0
Proceeds on sale of property, plant and equipment 5 3 35
MSA escrow deposits, net 46 0 (10,170)
Investing cash flows from continuing operations (10,509) (5,906) (18,969)
Investing cash flows from discontinued operations 0 0 176
Net cash used in investing activities (10,509) (5,906) (18,793)
Cash flows from financing activities:      
Convertible Senior Notes repurchased 0 (41,794) (9,000)
Payment of Convertible Senior Notes (118,541) 0 0
Proceeds from call options 0 114 51
Payment of dividends (4,905) (4,497) (4,250)
Payments of financing costs (133) (2,437) 0
Exercise of options 2,807 450 504
Redemption of options (335) (346) (155)
Redemption of restricted stock units (914) (995) (1,229)
Redemption of performance based restricted stock units (1,212) 0 0
Common stock repurchased (5,051) 0 (29,224)
Financing cash flows from continuing operations (128,284) (49,505) (43,303)
Financing cash flows from discontinued operations 0 0 0
Net cash used in financing activities (128,284) (49,505) (43,303)
Net (decrease) increase in cash (71,731) 11,470 (31,823)
Effect of foreign currency translation on cash (182) 13 (320)
Unrestricted 117,886 106,403 128,320
Restricted 4,929 4,929 15,155
Total cash at beginning of period 122,815 111,332 143,475
Unrestricted 48,941 117,886 106,403
Restricted 1,961 4,929 4,929
Total cash at end of period 50,902 122,815 111,332
Supplemental disclosures of cash flow information:      
Cash paid during the period for interest 17,488 18,047 18,717
Cash paid during the period for income taxes, net 20,997 12,447 13,369
Accrued capital expenditures 18 8 11
Accrued consideration for acquisition of investments 0 248 0
Dividends declared not paid $ 1,588 $ 1,489 $ 1,354
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Share-Based Payment Arrangement, Option [Member]
Common Stock Outstanding [Member]
Share-Based Payment Arrangement, Option [Member]
Additional Paid-in Capital [Member]
Share-Based Payment Arrangement, Option [Member]
Treasury Stock, Common [Member]
Share-Based Payment Arrangement, Option [Member]
AOCI Attributable to Parent [Member]
Share-Based Payment Arrangement, Option [Member]
Retained Earnings [Member]
Share-Based Payment Arrangement, Option [Member]
Noncontrolling Interest [Member]
Share-Based Payment Arrangement, Option [Member]
Performance Based Restricted Stock Units [Member]
Common Stock Outstanding [Member]
Performance Based Restricted Stock Units [Member]
Additional Paid-in Capital [Member]
Performance Based Restricted Stock Units [Member]
Treasury Stock, Common [Member]
Performance Based Restricted Stock Units [Member]
AOCI Attributable to Parent [Member]
Performance Based Restricted Stock Units [Member]
Retained Earnings [Member]
Performance Based Restricted Stock Units [Member]
Noncontrolling Interest [Member]
Performance Based Restricted Stock Units [Member]
Restricted Stock Units (RSUs) [Member]
Common Stock Outstanding [Member]
Restricted Stock Units (RSUs) [Member]
Additional Paid-in Capital [Member]
Restricted Stock Units (RSUs) [Member]
Treasury Stock, Common [Member]
Restricted Stock Units (RSUs) [Member]
AOCI Attributable to Parent [Member]
Restricted Stock Units (RSUs) [Member]
Retained Earnings [Member]
Restricted Stock Units (RSUs) [Member]
Noncontrolling Interest [Member]
Restricted Stock Units (RSUs) [Member]
Common Stock Outstanding [Member]
Additional Paid-in Capital [Member]
Treasury Stock, Common [Member]
AOCI Attributable to Parent [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Total
Balance (in shares) at Dec. 31, 2021                                           18,395,476            
Balance at Dec. 31, 2021                                           $ 197 $ 108,811 $ (48,869) $ (195) $ 71,460 $ 2,312 $ 133,716
Unrealized (loss) gain on MSA investments, net of tax of $9 in 2024 and $161 in 2023 and $860 in 2022                                           0 0 0 (2,879) 0 0 (2,879)
Unrealized (loss) gain on derivative instruments, net of tax of $54 in 2024, $237 in 2023 and $273 in 2022                                           0 0 0 857 0 0 857
Foreign currency translation, net of tax of $0 in 2024, 2023 and 2022                                           0 0 0 (176) 0 (93) (269)
Stock compensation expense                                           0 5,273 0 0 0 0 5,273
Stock compensation expense                                           $ 0 5,273 0 0 0 0 5,273
Exercise of options (in shares)                                           35,394            
Exercise of options                                           $ 1 503 0 0 0 0 504
Exercise of options                                           $ 1 503 0 0 0 0 $ 504
Redemption of options $ 0 $ (155) $ 0 $ 0 $ 0 $ 0 $ (155)                                          
Issuance of performance based restricted stock units (in shares)               69,756             5,589                          
Issuance of performance based restricted stock units               $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0              
Redemption of performance based restricted stock units               $ 0 (1,141) 0 0 0 0 (1,141)                            
Redemption of restricted stock units                             0 (88) 0 0 0 0 (88)              
Cost of repurchased common stock (in shares)                                           (1,021,052)           (1,021,052)
Cost of repurchased common stock                                           $ 0 0 (29,224) 0 0 0 $ (29,224)
Settlement of call options, net of tax of $12                                           0 39 0 0 0 0 39
Dividends                                           0 0 0 0 (4,410) 0 (4,410)
Consolidated net income                                           0 0 0 0 11,641 (484) 11,157
Stock compensation expense                                           $ 0 5,273 0 0 0 0 5,273
Redemption of restricted stock units                             0 88 0 0 0 0 88              
Unrealized gain on investments, net of tax of $0 in 2024                                                       0
Redemption of restricted stock units                             $ 0 (88) 0 0 0 0 (88)              
Balance (in shares) at Dec. 31, 2022                                           17,485,163            
Balance at Dec. 31, 2022                                           $ 198 113,242 (78,093) (2,393) 78,691 1,735 113,380
Unrealized (loss) gain on MSA investments, net of tax of $9 in 2024 and $161 in 2023 and $860 in 2022                                           0 0 0 542 0 0 542
Unrealized (loss) gain on derivative instruments, net of tax of $54 in 2024, $237 in 2023 and $273 in 2022                                           0 0 0 (747) 0 0 (747)
Foreign currency translation, net of tax of $0 in 2024, 2023 and 2022                                           0 0 0 (50) 0 (24) (74)
Stock compensation expense                                           0 6,561 0 0 0 0 6,561
Stock compensation expense                                           $ 0 6,561 0 0 0 0 6,561
Exercise of options (in shares)                                           33,851            
Exercise of options                                           $ 0 450 0 0 0 0 450
Exercise of options                                           0 450 0 0 0 0 $ 450
Redemption of options $ 0 (346) 0 0 0 0 (346)                                          
Issuance of performance based restricted stock units (in shares)               105,032             40,910                          
Issuance of performance based restricted stock units               $ 1 75 0 0 0 0 76 $ 0 2 0 0 0 0 2              
Redemption of performance based restricted stock units               $ 0 (800) 0 0 0 0 (800)                            
Redemption of restricted stock units                             $ (0) 195 (0) (0) (0) (0) 195              
Cost of repurchased common stock (in shares)                                                       0
Settlement of call options, net of tax of $12                                           0 86 0 0 0 0 $ 86
Dividends                                           0 0 0 0 (4,710) 0 (4,710)
Consolidated net income                                           0 0 0 0 38,462 (681) 37,781
Stock compensation expense                                           $ 0 6,561 0 0 0 0 6,561
Redemption of options (in shares) (15,985)             (34,704)             8,590                          
Redemption of performance based restricted stock units (in shares) (15,985)             (34,704)             8,590                          
Redemption of restricted stock units (in shares) 15,985             34,704             (8,590)                          
Redemption of restricted stock units                             $ 0 (195) 0 0 0 0 (195)              
Unrealized gain on investments, net of tax of $0 in 2024                                                       0
Redemption of restricted stock units (in shares) 15,985             34,704             (8,590)                          
Redemption of restricted stock units                             $ (0) 195 (0) (0) (0) (0) 195              
Balance (in shares) at Dec. 31, 2023                                           17,605,677            
Balance at Dec. 31, 2023                                           $ 199 119,075 (78,093) (2,648) 112,443 1,030 152,006
Unrealized (loss) gain on MSA investments, net of tax of $9 in 2024 and $161 in 2023 and $860 in 2022                                           0 0 0 (17) 0 0 (17)
Unrealized (loss) gain on derivative instruments, net of tax of $54 in 2024, $237 in 2023 and $273 in 2022                                           0 0 0 (173) 0 0 (173)
Foreign currency translation, net of tax of $0 in 2024, 2023 and 2022                                           0 0 0 (115) 0 (82) (197)
Stock compensation expense                                           0 7,243 0 0 0 0 7,243
Stock compensation expense                                           $ 0 7,243 0 0 0 0 7,243
Exercise of options (in shares)                                           132,572            
Exercise of options                                           $ 1 2,806 0 0 0 0 2,807
Exercise of options                                           $ 1 2,806 0 0 0 0 $ 2,807
Redemption of options $ 0 $ (335) $ 0 $ 0 $ 0 $ 0 $ (335)                                          
Issuance of performance based restricted stock units (in shares)               129,316             106,249                          
Issuance of performance based restricted stock units               $ 1 0 0 0 0 0 1 $ 1 78 0 0 0 0 79              
Redemption of performance based restricted stock units               $ 0 $ (1,212) $ 0 $ 0 $ 0 $ 0 $ (1,212)                            
Redemption of restricted stock units                             $ 0 (993) 0 0 0 0 (993)              
Cost of repurchased common stock (in shares)                                           (154,945)           (154,945)
Cost of repurchased common stock                                           $ 0 0 (5,051) 0 0 0 $ (5,051)
Dividends                                           0 0 0 0 (5,088) 0 (5,088)
Consolidated net income                                           0 0 0 0 39,809 701 40,510
Stock compensation expense                                           0 7,243 0 0 0 0 7,243
Redemption of options (in shares) (9,735)             (48,170)             31,483                          
Redemption of performance based restricted stock units (in shares) (9,735)             (48,170)             31,483                          
Redemption of restricted stock units (in shares) 9,735             48,170             (31,483)                          
Redemption of restricted stock units                             $ 0 993 0 0 0 0 993              
Unrealized gain on investments, net of tax of $0 in 2024                                           0 0 0 50 0 0 50
Acquisition of non-controlling interest                                           $ 0 0 0 0 0 750 750
Redemption of restricted stock units (in shares) 9,735             48,170             (31,483)                          
Redemption of restricted stock units                             $ 0 $ (993) $ 0 $ 0 $ 0 $ 0 $ (993)              
Balance (in shares) at Dec. 31, 2024                                           17,729,481            
Balance at Dec. 31, 2024                                           $ 202 $ 126,662 $ (83,144) $ (2,903) $ 147,164 $ 2,399 $ 190,380
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Unrealized gain (loss) on MSA investments, tax $ 161 $ 860
Unrealized gain (loss) on derivative instruments, tax 237 273
Foreign currency translation, tax 0 0
Settlement of call options, tax 28 12
Unrealized gain on investments, tax $ 0 $ 0
v3.25.0.1
Insider Trading Arrangements
 12 Months Ended
Dec. 31, 2024
Insider Trading Arr Line Items  
Rule 10b5-1 Arrangement Adopted [Flag] false
Non-Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Terminated [Flag] false
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

We rely on our technology infrastructure and information systems for our internal communications, controls, reporting and relations with customers and suppliers, to utilize our data, and to bill, collect, and make payments. Our technology infrastructure and information systems also support and form the foundation for our accounting and finance systems and form an integral part of our disclosure and accounting control environment. Our internally developed system and processes, as well as those systems and processes provided by third-party vendors, may be susceptible to damage or interruption from cybersecurity threats, which include any unauthorized access to our information systems that may result in adverse effects on the confidentiality, integrity, or availability of such systems or the related information. Potential cybersecurity threats include terrorist or hacker attacks, the introduction of malicious computer viruses, ransomware, falsification of banking and other information, insider risk, or other security breaches. Such attacks have become more and more sophisticated over time, especially as threat actors have become increasingly well-funded by, or themselves include, governmental actors with significant means. We expect that sophistication of cyber-threats will continue to evolve as threat actors increase their use of AI and machine-learning technologies.

 

We have implemented robust processes to assess, identify, and manage cybersecurity risks, including potentially material risks, related to our internal information systems and our products. In response to the increasing threats presented by cyber incidents, in 2023 we established a Cybersecurity Steering Committee, which meets bimonthly. This committee is comprised of our Head of IT and Security Leader, along with our Deputy General Counsel who reports to our General Counsel. The Cybersecurity Steering Committee oversees activities related to the monitoring, prevention, detection, mitigation and remediation of cybersecurity risks. The Cybersecurity Steering Committee develops and implements cybersecurity risk mitigation strategies and activities, including the management of comprehensive incident response plans, oversees the cybersecurity risks posed by third-party vendors, ensures policies and procedures are current and followed, and receives regular updates on cybersecurity-related matters.

 

Our Board of Directors oversees our enterprise risk management process and our Audit Committee of the Board has direct oversight of our management of cybersecurity risks. Under the direction and supervision of our Chief Financial Officer, we conduct an annual comprehensive enterprise risk assessment, which includes details of our management of enterprise-wide risk topics, such as those related to cybersecurity risks. The Board of Directors receives the full results of the annual enterprise risk assessment, including an evaluation of cybersecurity risks presented, a detailed description of the actions we have taken to mitigate these risks. Our Cybersecurity Steering Committee reviews the results of any enterprise risk assessment with management on a bimonthly basis and with the Board of Directors quarterly or when risks are identified. Management provides a comprehensive update to the Audit Committee of the Board on cybersecurity threats and risk mitigation at least annually, and more frequently as relevant.

 

Our Head of IT, reporting to our Chief Financial Officer, has principal responsibility for assessing and managing cybersecurity risks and threats, implementing the activities and systems necessary to address such risks and threats and preparing updates for the Board of Directors. Our Head of IT has over 20 years of IT experience, including over 10 years experience in cybersecurity, data security and regulatory compliance. Our Security Leader reports to our Head of IT and is responsible for the operation of our cybersecurity program and management of our cybersecurity team. Our Security Leader has 20 years of IT experience.

 

We have adopted the National Institute of Standards and Technology Cybersecurity Framework and the Center for Internet Security Critical Security Controls to continually evaluate and enhance our cybersecurity. Activities include mandatory quarterly online training for all employees, technical security controls, enhanced data protection, the maintenance of backup and protective systems, policy review and implementation, the evaluation and retention of cybersecurity insurance, periodic assessments of third-party service providers to assess cyber preparedness of key vendors, and running simulated cybersecurity drills, including vulnerability scanning, penetration testing and disaster recovery exercises, throughout our organization. These cybersecurity drills are performed both in-house and by a third-party service provider. We use automated tools that monitor, detect, and prevent cybersecurity risks and have a security operations center that operates 24 hours a day to alert us to any potential cybersecurity threats. Our Cybersecurity Steering Committee also has effected comprehensive incident response plans that outline the appropriate communication flow and response for certain categories of potential cybersecurity incidents. The Cybersecurity Steering Committee escalates events, including to the Chief Financial Officer, Audit Committee and Board of Directors, as relevant, according to pre-defined criteria.

 

If we were to experience a cybersecurity incident, our Security Leader would inform the Cybersecurity Steering Committee, which would then evaluate and assess the materiality of the incident to the Company and the impact of the incident on the Company’s information technology infrastructure and data integrity, and determine whether the incident should be reported to the Audit Committee of the Board in advance of the next regular cybersecurity update. The Cybersecurity Steering Committee, with the assistance and input of the Audit Committee of the Board, has established a set of predefined criteria that it uses to make such determinations. Once a cybersecurity incident has been reported to the Audit Committee of the Board, the Audit Committee of the Board, with the input of the Cybersecurity Steering Committee, will determine how to address it.

 

We engage subject matter experts such as consultants and auditors to assist us in establishing processes to assess, identify, and manage potential and actual cybersecurity threats, to actively monitor our systems internally using widely accepted digital applications, processes, and controls, and to provide forensic assistance to facilitate system recovery in the case of an incident. The Cybersecurity Steering Committee oversees and establishes the parameters of our engagement with these experts to ensure we obtain supplement assistance needed in this area, if any.

 

If we were to experience a cybersecurity incident, we may suffer interruptions in service, loss of assets or data, or reduced functionality. Security breaches of our systems which allow inappropriate access to or inadvertent transfer of information and misappropriation or unauthorized disclosure of confidential information, belonging to us or to our employees, providers, suppliers, customers or insurance companies could result in our suffering significant financial and reputational damage. Though we take steps to ensure our products and software are secure, a cyber-attack could result in the loss or compromise of our or our employees’, suppliers’ and customers’ critical data. If a supplier or customer alleges that a cyber-attack causes or contributes to a loss or compromise of critical data, whether or not caused by us, we could face harm to our reputation and financial condition and incur regulatory repercussions. See Item 1A “Risk Factors – Security and privacy breaches may expose us to liability and cause us to lose customers”. A cybersecurity incident could materially harm our reputation and financial condition and cause us to incur legal liability and increased costs when responding to such events.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have implemented robust processes to assess, identify, and manage cybersecurity risks, including potentially material risks, related to our internal information systems and our products. In response to the increasing threats presented by cyber incidents, in 2023 we established a Cybersecurity Steering Committee, which meets bimonthly. This committee is comprised of our Head of IT and Security Leader, along with our Deputy General Counsel who reports to our General Counsel. The Cybersecurity Steering Committee oversees activities related to the monitoring, prevention, detection, mitigation and remediation of cybersecurity risks. The Cybersecurity Steering Committee develops and implements cybersecurity risk mitigation strategies and activities, including the management of comprehensive incident response plans, oversees the cybersecurity risks posed by third-party vendors, ensures policies and procedures are current and followed, and receives regular updates on cybersecurity-related matters.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] If we were to experience a cybersecurity incident, we may suffer interruptions in service, loss of assets or data, or reduced functionality. Security breaches of our systems which allow inappropriate access to or inadvertent transfer of information and misappropriation or unauthorized disclosure of confidential information, belonging to us or to our employees, providers, suppliers, customers or insurance companies could result in our suffering significant financial and reputational damage. Though we take steps to ensure our products and software are secure, a cyber-attack could result in the loss or compromise of our or our employees’, suppliers’ and customers’ critical data. If a supplier or customer alleges that a cyber-attack causes or contributes to a loss or compromise of critical data, whether or not caused by us, we could face harm to our reputation and financial condition and incur regulatory repercussions. See Item 1A “Risk Factors – Security and privacy breaches may expose us to liability and cause us to lose customers”. A cybersecurity incident could materially harm our reputation and financial condition and cause us to incur legal liability and increased costs when responding to such events.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors oversees our enterprise risk management process and our Audit Committee of the Board has direct oversight of our management of cybersecurity risks. Under the direction and supervision of our Chief Financial Officer, we conduct an annual comprehensive enterprise risk assessment, which includes details of our management of enterprise-wide risk topics, such as those related to cybersecurity risks. The Board of Directors receives the full results of the annual enterprise risk assessment, including an evaluation of cybersecurity risks presented, a detailed description of the actions we have taken to mitigate these risks. Our Cybersecurity Steering Committee reviews the results of any enterprise risk assessment with management on a bimonthly basis and with the Board of Directors quarterly or when risks are identified. Management provides a comprehensive update to the Audit Committee of the Board on cybersecurity threats and risk mitigation at least annually, and more frequently as relevant.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Head of IT, reporting to our Chief Financial Officer, has principal responsibility for assessing and managing cybersecurity risks and threats, implementing the activities and systems necessary to address such risks and threats and preparing updates for the Board of Directors. Our Head of IT has over 20 years of IT experience, including over 10 years experience in cybersecurity, data security and regulatory compliance. Our Security Leader reports to our Head of IT and is responsible for the operation of our cybersecurity program and management of our cybersecurity team. Our Security Leader has 20 years of IT experience.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Note 1 - Organizations and Basis of Presentation
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1. Organizations 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® along with FRE®, Beech-Nut® and Trophy®. The Company’s products are available in more than 220,000 retail outlets in North America. The Company operates two segments, Zig-Zag products and Stoker’s products.

 

Contribution of Creative Distribution Solutions

 

On January 2, 2025, the Company contributed 100% of its interest in South Beach Brands LLC ("SBB"), the subsidiary that owns and operates the Company’s Creative Distribution Solutions (“CDS”) segment, to General Wireless Operations, Inc. (“GWO”) in exchange for 49% of the issued and outstanding GWO common stock. GWO is a joint venture between the Company and Standard General, LP entered into in December 2018. The Company will provide certain transition services to GWO in connection with the operation of SBB on an arm’s length basis. 

 

For all periods presented in these consolidated financial statements, the assets and liabilities associated with the CDS disposal group have been classified as held for sale in the Consolidated Balance Sheets and its operations have been classified as discontinued operations in the Consolidated Statements of Income and Cash Flows. See Note 3, "Assets Held for Sale and Discontinued Operations" for additional information regarding the CDS divestiture, including the assets and liabilities held for sale and the loss from discontinued operations. Unless otherwise noted, disclosures in the notes to these consolidated financial statements relate solely to the Company's continuing operations.

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and Securities and Exchange Commission (“SEC”) regulations. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company’s estimates include those affecting the valuation of goodwill and other intangible assets, the fair value of assets held for sale, deferred income tax valuation allowances, the valuation of investments and the valuation of inventory, including reserves.

 

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.

 
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Significant Accounting Policies [Text Block]

Note 2. Summary of Significant Accounting Policies

 

Consolidation

 

The consolidated financial statements include the accounts of the Company, its subsidiaries, all of which are wholly-owned, and variable interest entities (“VIEs”) for which the Company is considered to have a controlling interest based on the voting interest entity model or the variable interest entity model. All significant intercompany transactions have been eliminated.

 

U.S. GAAP requires the Company to identify entities for which control is achieved through means other than voting rights and to determine whether the Company is the primary beneficiary of VIEs. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; and (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affects the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary.

 

The primary beneficiary of a VIE is the entity that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. The Company performs this analysis on an ongoing basis.

 

Management of the Company has determined that Turning Point Brands Canada and ALP Supply Co, LLC ("ALP") are VIEs for which the Company is required to consolidate. The Company has a controlling financial interest of 65% equity in Turning Point Brands Canada, provides additional subordinated financing, and has a distribution agreement for the sale of the Company’s products that makes up a significant portion of Turning Point Brands Canada’s business activities. The Company has a 50% equity interest in ALP, provides additional financing, has a supply agreement to be the exclusive provider of product and is the primary beneficiary due to the power the Company has over the activities that most significantly impact the economic performance, and the right to receive benefits and the obligation to absorb losses. See Note 4,"Joint Venture Agreement" for additional information on the current year ALP transaction. 

 

Revenue Recognition

 

The Company recognizes revenues in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (Topic 606), which includes excise taxes and shipping and handling charges billed to customers, net of cash discounts for prompt payment, sales returns and incentives, upon delivery of goods to the customer – at which time the Company’s performance obligation is satisfied - at an amount that the Company expects to be entitled to in exchange for those goods in accordance with the five-step analysis outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied. The Company includes in its transaction price excise taxes on smokeless tobacco, cigars or other nicotine products billed to customers, and excludes sales taxes and value-added taxes imposed at the time of sale.

 

The Company records an allowance for sales returns, based principally on historical volume and return rates, which is included in accrued liabilities on the consolidated balance sheets. The Company records sales incentives, which consist of consumer incentives and trade promotion activities, as a reduction in revenues (a portion of which is based on amounts estimated to be due to wholesalers, retailers and consumers at the end of the period) based principally on historical volume and utilization rates. Expected payments for sales incentives are included in accrued liabilities on the consolidated balance sheets.

 

A further requirement of ASC 606 is for entities to disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company’s management views business performance through segments that closely resemble the performance of major product lines. Thus, the primary and most useful disaggregation of the Company’s contract revenue for decision making purposes is the disaggregation by segment which can be found in Note 21, “Segment Information”. 

 

Held for Sale and Discontinued Operations

 

The Company classifies assets and liabilities to be sold (disposal group) as held for sale in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the sale of the disposal group is generally probable of being completed within one year. 

 

Assets and liabilities held for sale are presented separately within the Consolidated Balance Sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each period the disposal group remains classified as held for sale, its recoverability is reassessed, and any necessary adjustments are made to its carrying value. 

 

The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that will have a major effect on its operations and financial results. The results of discontinued operations are reported as Loss from discontinued operations, net of tax in the Consolidated Statements of Income for the current and prior periods commencing in the period in which the held for sale criteria are met. Loss from discontinued operations includes direct costs attributable to the divested business and excludes any cost allocations associated with any shared or corporate functions. Loss from discontinued operations will include any gain or loss recognized upon disposition or from any adjustment of the carrying amount of the assets and liabilities of the discontinued operations to fair value less costs to sell while classified as held for sale.


Derivative Instruments

 

The Company enters into foreign currency forward contracts to hedge a portion of its exposure to changes in foreign currency exchange rates on inventory purchase commitments. The Company accounts for its forward contracts under the provisions of ASC 815, Derivatives and Hedging. Under the Company’s policy, the Company may hedge up to 100% of its anticipated purchases of inventory in the denominated invoice currency over a forward period not to exceed twelve months. The Company may also, from time to time, hedge up to 100% of its non-inventory purchases (e.g., production equipment) in the denominated invoice currency. Forward contracts that qualify as hedges are adjusted to their fair value through other comprehensive income as determined by market prices on the measurement date, except any hedge ineffectiveness which is recognized currently in income. Gains and losses on these forward contracts are reclassified from other comprehensive income into inventory as the related inventories are received and are transferred to net income as inventory is sold. Changes in fair value of any contracts that do not qualify for hedge accounting or are not designated as hedges are recognized currently in income.

 

Shipping Costs

 

The Company records shipping costs incurred as a component of selling, general and administrative expenses. Shipping costs incurred were approximately $17.9 million, $16.0 million, and $14.0 million in 2024, 2023, and 2022, respectively.

 

Research and Development and Quality Assurance Costs

 

Research and development and quality assurance costs are expensed as incurred. These expenses, classified as selling, general and administrative expenses, were approximately $1.3 million, $0.6 million, and $0.6 million in 2024, 2023, and 2022, respectively.

 

Cash and Cash Equivalents

 

The Company considers any highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents.

 

Inventories

 

Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) method. Leaf tobacco is presented in current assets in accordance with standard industry practice, notwithstanding the fact that such tobaccos are carried longer than one year for the purpose of curing.

 

Property, Plant and Equipment

 

Property, plant and equipment is stated at cost less accumulated depreciation and impairment. Depreciation is provided using the straight-line method over the lesser of the estimated useful lives of the assets or the life of the leases for leasehold improvements (4 to 7 years for machinery, equipment and furniture, 10 to 15 years for leasehold improvements, and up to 15 years for buildings and building improvements). Expenditures for repairs and maintenance are charged to expense as incurred. The costs of major renewals and improvements are capitalized and depreciated over their estimated useful lives. Upon disposition of fixed assets, the costs and related accumulated depreciation amounts are relieved. Any resulting gain or loss is reflected in operations during the period of disposition. Long-lived assets are reviewed for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

 

Goodwill and Other Intangible Assets

 

The Company follows the provisions of ASC 350, Intangibles – Goodwill and Other in accounting for goodwill and other intangible assets. Goodwill is tested for impairment annually on December 31, or more frequently if certain indicators are present.

 

When testing goodwill for impairment, the Company has the option to first perform qualitative testing to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company chooses not to complete a qualitative assessment for a given reporting unit or if the initial assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is required. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized in the amount by which the carrying value of the reporting unit exceeds its fair value, limited to the amount of goodwill at the reporting unit. The Company determines fair values for each of the reporting units using a combination of the income approach and/or market approach. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. Under the market approach, the Company selects peer sets based on close competitors and reviews the revenue and EBITDA multiples to determine the fair value. See Note 11, “Goodwill and Other Intangible Assets” for further information on goodwill.

 

Indefinite-lived intangible assets are tested for impairment at least annually; however, these tests are performed more frequently when events or changes in circumstances indicate that the asset may be impaired. Impairment exists when carrying value exceeds fair value. The Company’s fair value methodology is primarily based on the relief from royalty approach.

 

Definite-lived intangible assets are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3.5 to 15 years. The Company continually evaluates the reasonableness of the useful lives of these assets.

 

Fair Value

 

U.S. GAAP establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

The three levels of the fair value hierarchy under U.S. GAAP are described below:

 

 

•

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets at the measurement date.

 

•

Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

•

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

 

Equity Investments

 

The Company's investments include equity securities, which are accounted for at cost and under the equity method of accounting.

 

For equity investments that do not qualify to be accounted for under the equity method of accounting and that do not have a readily determinable fair value, the Company has elected a practical expedient to record the investment at the original cost, as adjusted for impairment and observable price changes. Under the practical expedient, if a qualitative analysis indicates impairment exists, the fair value of the investment is required to be estimated and any excess of the carrying value over the estimated fair value is recognized as an impairment loss.

 

Equity investments accounted for under the equity method of accounting are assessed for impairment when events or circumstances suggest that any loss in value of the investment may be other than temporary. A loss in value of an investment is other than temporary when evidence of a loss in value indicates the absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

 

In the absence of observable data, the Company estimates the fair values of these investments using a market approach derived from applying market multiples of comparable public companies to the financial results of each investment. The valuation methodology and the significant assumptions used by management in estimating the fair values of each investment involve a high degree of judgment and may involve the use of third-party valuation specialists.

 

Deferred Financing Costs

 

Deferred financing costs are amortized over the terms of the related debt obligations using the straight-line method. Unamortized amounts are expensed upon extinguishment of the related borrowings. Deferred financing costs are presented as a direct deduction from the carrying amount of that debt liability except for deferred financing costs relating to our revolving credit facility, which are presented as an asset.

 

Income Taxes

 

The Company records the effects of income taxes under the liability method in which deferred income tax assets and liabilities are recognized based on the difference between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse. The Company assesses its ability to realize future benefits of deferred tax assets by determining if they meet the “more likely than not” criteria in ASC 740, Income Taxes. If the Company determines that future benefits do not meet the “more likely than not” criteria, a valuation allowance is recorded.

 

Advertising and Promotion

 

Advertising and promotion costs, including point of sale materials, are expensed as incurred and amounted to $12.0 million, $7.6 million, and $6.2 million for the years ended December 31, 2024, 2023, and 2022, respectively.

 

Stock-Based Compensation

 

The Company measures stock-based compensation costs related to its stock options on the fair value-based method under the provisions of ASC 718, Compensation – Stock Compensation. The fair value-based method requires compensation cost for stock options to be recognized over the requisite service period based on the fair value of stock options granted. The Company determined the fair value of these awards using the Black-Scholes option pricing model.

 

The Company grants performance-based restricted stock units (“PRSU”) subject to both performance-based and service-based vesting conditions. The fair value of each PRSU is the Company’s stock price on the date of grant. For purposes of recognizing compensation expense as services are rendered in accordance with ASC 718, the Company assumes all employees involved in the PRSU grant will provide service through the end of the performance period. Stock compensation expense is recorded based on the probability of achievement of the performance conditions specified in the PRSU grant.

 

The Company grants restricted stock units (“RSU”) subject to service-based vesting conditions. The fair value of each RSU is the Company’s stock price on the date of grant. The Company recognizes compensation expense as services are rendered in accordance with ASC 718. Stock compensation expense is recorded over the service period in the RSU grant.

 

Risks and Uncertainties

 

Manufacturers and sellers of tobacco products are subject to regulation at the federal, state, and local levels. Such regulations include, among others, labeling requirements, limitations on advertising, and prohibition of sales to minors. The tobacco industry is likely to continue to be heavily regulated. There can be no assurance as to the ultimate content, timing, or effect of any regulation of tobacco products by any federal, state, or local legislative or regulatory body, nor can there be any assurance that any such legislation or regulation would not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. In a number of states targeted flavor bans have been proposed or enacted legislatively or by the administrative process. Depending on the number and location of such bans, that legislation or regulation could have a material adverse effect on the Company’s financial position, results of operations or cash flows. The U.S. Food and Drug Administration (“FDA”) continues to consider various restrictive regulations around our products, including targeted flavor bans; however, the details, timing, and ultimate implementation of such measures remain unclear.

 

The tobacco industry has experienced, and is experiencing, significant product liability litigation. Most tobacco liability lawsuits have been brought against manufacturers and sellers of cigarettes for injuries allegedly caused by smoking or exposure to smoke. However, several lawsuits have been brought against manufacturers and sellers of smokeless products for injuries to health allegedly caused by use of smokeless products. Typically, such claims assert that use of smokeless products is addictive and causes oral cancer. There can be no assurance the Company will not sustain losses in connection with such lawsuits and that such losses will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

 

Master Settlement Agreement (MSA) 

 

Forty-six states, certain U.S. territories, and the District of Columbia are parties to the Master Settlement Agreement (“MSA”) and the Smokeless Tobacco Master Settlement Agreement (“STMSA”). To the Company’s knowledge, signatories to the MSA include 49 cigarette manufacturers and/or distributors. The only signatory to the STMSA is US Smokeless Tobacco Company. In the Company’s opinion, the fundamental basis for each agreement is the states’ consents to withdraw all claims for monetary, equitable, and injunctive relief against certain tobacco products manufacturers and others and, in return, the signatories have agreed to certain marketing restrictions and regulations as well as certain payment obligations.

 

Pursuant to the MSA and subsequent states’ statutes, a “cigarette manufacturer” (which is defined to also include make-your-own ("MYO") cigarette tobacco) has the option of either becoming a signatory to the MSA or opening, funding, and maintaining an escrow account, with sub-accounts on behalf of each settling state. The STMSA has no similar provisions. The MSA escrow accounts are governed by states’ statutes that expressly give the manufacturers the option of opening, funding, and maintaining an escrow account in lieu of becoming a signatory to the MSA. The statutes require companies who are not signatories to the MSA to deposit, on an annual basis, into qualified banks, escrow funds based on the number of cigarettes or cigarette equivalents, i.e., the pounds of MYO tobacco, sold. The purpose of these statutes is expressly stated to be to eliminate the cost disadvantage the settling manufacturers have as a result of entering into the MSA. Such companies are entitled to direct the investment of the escrowed funds and withdraw any appreciation, but cannot withdraw the principal for twenty-five years from the year of each annual deposit, except to withdraw funds deposited pursuant to an individual state’s escrow statute to pay a final judgment to that state’s plaintiffs in the event of such a final judgment against the company. Either option – becoming an MSA signatory or establishing an escrow account – is permissible.

 

The Company chose to open and fund an MSA escrow account as its means of compliance. It is management’s opinion, due to the possibility of future federal or state regulations, though none have to date been enacted, that entering into one or both of the settlement agreements or establishing and maintaining an escrow account would not necessarily prevent future regulations from having a material adverse effect on the results of operations, financial position, and cash flows of the Company.

 

Various states have enacted or proposed complementary legislation intended to curb the activity of certain manufacturers and importers of cigarettes that are selling into MSA states without signing the MSA or who have failed to properly establish and fund a qualifying escrow account. To the best of the Company’s knowledge, no such statute has been enacted which could inadvertently and negatively impact the Company, which has been, and is currently, fully compliant with all applicable laws, regulations, and statutes. However, there can be no assurance that the enactment of any such complementary legislation in the future will not have a material adverse effect on the results of operations, financial position, or cash flows of the Company.

 

Pursuant to the MSA escrow account statutes, in order to be compliant with the MSA escrow requirements, companies selling products covered by the MSA are required to deposit such funds for each calendar year into a qualifying escrow account by April 15 of the following year. At December 31, 2024 and 2023, the Company had on deposit approximately $32.1 million, the fair value of which was approximately $28.7 million. During 2024, no monies were deposited into this qualifying escrow account. The investment vehicles available to the Company are specified in the state escrow agreements and are limited to low-risk government securities.

 

The Company discontinued its generic category of MYO in 2019 and its Zig-Zag branded MYO cigarette smoking tobacco in 2017. Thus, pending a change in MSA legislation, the Company has no remaining product lines covered by the MSA and will not be required to make future escrow deposits.

 

The Company has chosen to invest a portion of the MSA escrow, from time to time, in U.S. Government securities including Treasury inflation-protected securities, Treasury notes and Treasury bonds. These investments are classified as available-for-sale and carried at fair value. Realized losses are prohibited under the MSA; thus, any investment with an unrealized loss position will be held until the value is recovered, or until maturity.

 

Fair values for the U.S. Governmental agency obligations are Level 2 in the fair value hierarchy. The following tables show cost and estimated fair value of the assets held in the MSA account, respectively, as well as the maturities of the U.S. Governmental agency obligations held in such account for the periods indicated.

 

  

As of December 31, 2024

  

As of December 31, 2023

 
      

Gross

  

Gross

  

Estimated

      

Gross

  

Gross

  

Estimated

 
      

Unrealized

  

Unrealized

  

Fair

      

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

  

Cost

  

Gains

  

Losses

  

Value

 

Cash and cash equivalents

 $1,961  $-  $-  $1,961  $1,929  $-  $-  $1,929 

U.S. Governmental agency obligations (unrealized position < 12 months)

  4,168   11   (48)  4,131   -   -   -   - 

U.S. Governmental agency obligations (unrealized position > 12 months)

  25,944   95   (3,455)  22,584   30,144   -   (3,389)  26,755 

Total

 $32,073  $106  $(3,503) $28,676  $32,073  $-  $(3,389) $28,684 

 

  

As of

 
  

December 31, 2024

 

Less than one year

 $250 

One to five years

  14,771 

Five to ten years

  13,136 

Greater than ten years

  1,955 

Total

 $30,112 

 

The following shows the amount of deposits by sales year for the MSA escrow account:

 

  

Deposits as of December 31,

 

Sales Year

 

2024

  

2023

 

1999

 $211  $211 

2000

  1,017   1,017 

2001

  1,673   1,673 

2002

  2,271   2,271 

2003

  4,249   4,249 

2004

  3,714   3,714 

2005

  4,553   4,553 

2006

  3,847   3,847 

2007

  4,167   4,167 

2008

  3,364   3,364 

2009

  1,619   1,619 

2010

  406   406 

2011

  193   193 

2012

  199   199 

2013

  173   173 

2014

  143   143 

2015

  101   101 

2016

  91   91 

2017

  82   82 

Total

 $32,073  $32,073 

 

 

Concentration of Credit Risk: At December 31, 2024 and 2023, the Company had bank deposits, including MSA escrow accounts, in excess of federally insured limits of approximately $47.4 million and $119.0 million, respectively. During 2024 and 2023, the Company invested a portion of the MSA escrow accounts in U.S. Government securities including TIPS, Treasury notes, and Treasury bonds.

 

The Company sells its products to distributors, retail establishments, and consumers throughout the U.S. and also sells Zig-Zag® premium cigarette papers in Canada and some smaller quantities in other countries. For 2024, the Company had one customer that accounted for 10.2% of net sales. There were no customers that accounted for more than 10% of net sales for 2023 or 2022. The Company performs periodic credit evaluations of its customers and generally does not require collateral on trade receivables. Historically, the Company has not experienced significant credit losses.

 

Accounts Receivable

 

Accounts receivable are recognized at their net realizable value. All accounts receivable are trade related, recorded at the invoiced amount, and do not bear interest. The Company maintains allowances for credit losses for estimated uncollectible invoices resulting from a customer’s inability to pay (bankruptcy, out of business, etc., i.e. “bad debt” which results in write-offs). The activity of allowance for credit losses for the years ended December 31, 2024, 2023 and 2022 is as follows:

 

  

2024

  

2023

  

2022

 

Balance at beginning of period

 $78  $40  $29 

Additions to allowance account during period

  23   38   24 

Deductions of allowance account during period

  (35)  -   (13)

Balance at end of period

 $66  $78  $40 

 

Recent Accounting Pronouncements

 

Recently adopted

 

In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances reportable segment disclosures by requiring disclosure of significant reportable segment expenses and other items regularly provided to the Chief Operating Decision Maker (“CODM”) and included within measures of a segment’s profit or loss. Additional requirements include the title and position of the CODM and an explanation of how the CODM uses the reported measure of a segment’s profit or loss to assess performance and allocate resources, and the amount and composition of other segment items necessary to reconcile segment revenue, significant expenses, and the reported measure of profit or loss. The Company adopted this guidance retrospectively beginning with its fiscal 2024 annual financial statements. See Note 21, "Segment Information" for the additional disclosures required by this guidance. 

 

Issued but not yet adopted

 

In December 2023, the FASB issued guidance which enhances income tax disclosures to require reporting entities to disclose annual income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes and to provide additional disaggregated information for individual jurisdictions under certain conditions. The guidance also requires disclosure of amounts and percentages in the annual rate reconciliation table, rather than amounts or percentages, and will eliminate certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. This guidance will be effective for the Company beginning with its fiscal 2025 annual financial statements, with early adoption permitted. The guidance may be applied prospectively, while retrospective application is permitted. The Company is currently assessing the impact of this guidance and expects its incremental disclosures will likely be provided on a prospective basis upon adoption.

 

In November 2024, the FASB issued guidance requiring reporting entities to disclose in the notes to the financial statements, specified information about certain categories of expenses including purchases of inventory, employee compensation, depreciation and amortization for each caption on the income statement where such expenses are included. This guidance will be effective for the Company beginning with its fiscal 2027 annual financial statements and interim periods thereafter. Early adoption is permitted, in addition to either prospective or retrospective application. The Company is currently assessing the impact and extent to which this guidance will affect its disclosures. 

 
v3.25.0.1
Note 3 - Assets Held for Sale and Discontinued Operations
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 3. Assets and Liabilities Held for Sale and Discontinued Operations 

 

On January 2, 2025, the Company entered into an agreement to contribute 100% of its interest in SBB, the subsidiary that owns and operates the Company’s CDS segment, to GWO in exchange for 49% of the issued and outstanding GWO common stock on a fully-diluted basis. GWO is a joint venture between the Company and Standard General, LP entered into in December 2018. Under certain circumstances the Company has the right to redeem the contribution of SSB from GWO at fair market value. In addition, the Company received an option with a 15-year term to purchase the remaining 51% of GWO at an exercise price initially set at $22.0 million, which decreases over time based on certain tax sharing payments to GWO. 

 

The assets and liabilities associated with the CDS business have been classified as held for sale as of December 31, 2024, and its financial results are classified as discontinued operations and reported separately for all periods presented herein. With the strategic shift of the Company's operations, as a result of this transaction, the CDS segment has been classified as discontinued operations. As a result, the Company now has two reportable segments as disclosed in Note 21, "Segment Information". 

 

Upon meeting the criteria for held for sale classification, the Company recorded a non-cash charge of $8.8 million with an equivalent valuation allowance against net assets held for sale to reduce the carrying value of the disposal group to fair value. Fair value of the disposal group utilized inputs within Level 3 of the fair value hierarchy, and was determined using both a market and an income approach. 

 

The following table summarizes income from discontinued operations, net of tax, included in the Consolidated Statements of Income:

 

  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 

Net sales

 $59,051  $80,329  $93,784 

Cost of sales

  46,041   60,030   66,076 

Gross profit

  13,010   20,299   27,708 

Selling, general, and administrative expenses

  12,246   18,442   24,287 

Loss on assets held for sale fair value adjustment

  8,801   -   - 

Depreciation

  236   341   529 

Amortization of other intangible assets

  1,843   1,899   1,386 

Goodwill and intangible impairment loss

  -   -   27,566 

Operating loss from discontinued operations

  (10,116)  (383)  (26,060)

Interest income

  (146)  -   - 

Loss from discontinued operations before income taxes

  (9,970)  (383)  (26,060)

Income tax benefit

  (2,453)  (98)  (6,131)

Loss from discontinued operations

 $(7,517) $(285) $(19,929)

 

The following table summarizes the carrying amounts of assets and liabilities classified as held for sale and included in the Consolidated Balance Sheets: 

 

  

December 31,

 
  

2024

  

2023

 

Current assets

        

Cash

 $2,783  $1,161 

Inventories, net

  5,813   7,262 

Other current assets

  2,874   3,844 

Current assets held for sale

  11,470   12,267 
         

Noncurrent assets

        

Property, plant, and equipment, net

  -   158 

Right of use assets

  51   121 

Other intangible assets, net

  12,609   14,452 

Allowance to adjust held for sale assets to fair value

  (8,801)  - 

Noncurrent assets held for sale

  3,859   14,731 

Total assets held for sale

 $15,329  $26,998 
         

Current liabilities

        

Accounts payable

 $532  $613 

Accrued liabilities

  1,517   1,596 

Current liabilities held for sale

  2,049   2,209 
         

Noncurrent liabilities

        

Lease liabilities

  -   52 

Noncurrent liabilities held for sale

  -   52 

Total liabilities held for sale

 $2,049  $2,261 

 
v3.25.0.1
Note 4 - Joint Venture Agreement
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Joint Venture Formation [Text Block]

Note 4. Joint Venture Agreement

 

In September 2024, a wholly-owned subsidiary of the Company invested $0.8 million to acquire a 50% ownership interest in ALP Supply Co., LLC ("ALP"). Additionally, the Company has provided ALP with a $10.0 million line of credit. ALP is a joint venture established between the subsidiary and Last Country Ventures, LLC for the purpose of selling and distributing tobacco-free moist nicotine pouches in various strengths. Per the joint venture agreement, the Company's subsidiary will be responsible for selling products to ALP and providing warehousing and shipping services on its behalf. The Company has determined that ALP is a VIE and that it has a controlling financial interest requiring consolidation. As a result, the assets, liabilities and result of operations of ALP have been included in the Company's consolidated financial statements.  

 

The assets and liabilities of ALP included in the consolidated balance sheet at December 31, 2024 primarily include $5.3 million in cash, $0.9 million of inventory, $1.1 million of other assets, and accounts payable and accrued liabilities of $3.6 million inclusive of amounts payable to the Company of $3.2 million. 
v3.25.0.1
Note 5 - Derivative Instruments
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 5. Derivative Instruments

 

Foreign Currency

 

The Company’s policy is to manage the risks associated with foreign exchange rate movements. The policy allows hedging up to 100% of its anticipated purchases of inventory over a forward period that will not exceed 12 rolling and consecutive months. The Company may, from time to time, hedge currency for non-inventory purchases, e.g., production equipment, not to exceed 100% of the purchase price. During 2024, the Company executed various foreign exchange contracts which met hedge accounting requirements for the purchase of €3.6 million and sale of €3.6 million. During 2023, the Company executed various foreign exchange contract, which met hedge accounting requirements for the purchase of €20.1 million and sale of €15.2 million. 

 

At December 31, 2024, the Company had foreign currency contracts outstanding for the purchase of €2.1 million and sale of €2.1 million. The fair value of the foreign currency contracts at December 31, 2024, resulted in an asset of $0.0 million included in Other current assets and a liability of $0.1 million included in Accrued liabilities. At December 31, 2023, the Company had foreign currency contracts outstanding for the purchase of €15.2 million and sale of €15.2 million. The fair value of the foreign currency contracts at December 31, 2023, resulted in an asset of $0.3 million included in Other current assets and a liability of $0.1 million included in Accrued liabilities. A $0.2 million gain, $0.9 million gain and $0.1 million loss were reclassified from Accumulated other comprehensive loss to Cost of sales for the years ended December 31, 2024, 2023 and 2022, respectively.

 
v3.25.0.1
Note 6 - Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 6. Fair Value of Financial Instruments

 

The estimated fair value amounts have been determined by the Company using the methods and assumptions described below. However, considerable judgment is required to interpret market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

 

Cash and Cash Equivalents

 

Cash and cash equivalents are, by definition, short-term. Thus, the carrying amount is a reasonable estimate of fair value.

 

Accounts Receivable

 

The fair value of accounts receivable approximates their carrying value due to their short-term nature.

 

Long-Term Debt

 

The Company’s Senior Secured Notes bear interest at a rate of 5.625% per year. As of December 31, 2024, the fair value approximated $251.2 million, with a carrying value of $250 million.  As of December 31, 2023, the fair value approximated $234.9 million with a carrying value of $250 million. 

 

The Convertible Senior Notes with a carrying value of $118.5 million were retired with cash on  July 15, 2024.  As of December 31, 2023, the fair value approximated $114.7 million, with a carrying value of $118.5 million.

 

See Note 14, “Notes Payable and Long-Term Debt” for further information regarding the Company’s long-term debt.

 

Foreign Currency

 

The fair value of the Company’s foreign currency contracts are based upon quoted market prices for similar instruments, thus leading to a Level 2 classification within the fair value hierarchy. See Note 5, "Derivative Instruments", for further information regarding the Company's foreign currency contracts.

 
v3.25.0.1
Note 7 - Inventories
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Inventory Disclosure [Text Block]

Note 7. Inventories

 

The components of inventories, net are as follows:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Raw materials and work in process

 $7,699  $5,201 

Leaf tobacco

  35,622   34,894 

Finished goods - Zig-Zag products

  38,042   41,783 

Finished goods - Stoker’s products

  12,966   8,109 

Other

  1,924   1,711 

Inventories

 $96,253  $91,698 

 

The following represents the activity in the inventory valuation allowance for the years ended December 31:   

 

  

2024

  

2023

  

2022

 

Balance at beginning of period

 $(16,927) $(772) $(4,122)

Charged to cost and expense

  (648)  (17,370)  (772)

Deductions for inventory disposed

  -   1,215   4,122 

Balance at end of period

 $(17,575) $(16,927) $(772)

 

In December 2023, a third-party warehouse in Tennessee used to store some of the Company’s leaf tobacco incurred significant tornado damage resulting in damage to the leaf tobacco. As a result, the Company recorded a $15.2 million inventory reserve related to its leaf tobacco inventory, which is included in Other operating income, net in the Consolidated Statement of Income for the year ended December 31, 2023. The leaf tobacco inventory is covered by the Company’s stock throughput insurance policy and the Company believes the inventory loss is probable of being fully recovered under the policy. As a result, the Company recorded a $15.2 million insurance recovery receivable which is included in Other current assets in the Consolidated Balance Sheets.  

 

In 2022, the Company determined that the incorrect weight had been used in calculating the amount of federal excise tax assessed and paid on its imported MYO cigar wraps during the years 2019 - 2021. As a result, the Company filed a refund claim for $4.3 million with the Alcohol and Tobacco Tax and Trade Bureau for the overpayment of federal excise taxes, which was approved and paid. The Company filed an additional claim for $1.7 million in 2023, which was approved and paid in 2024. The refunds are presented in Other operating income in the Consolidated Statements of Income. 

 
v3.25.0.1
Note 8 - Other Current Assets
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Other Current Assets [Text Block]

Note 8. Other Current Assets

 

Other current assets consists of:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Inventory deposits

 $5,981  $3,612 

Insurance deposit

  -   3,000 

Prepaid taxes

  3,586   153 

Settlement receivable

  -   4,000 

Insurance recovery receivable

  15,181   15,181 

Other

  9,952   10,991 

Total

 $34,700  $36,937 

 
v3.25.0.1
Note 9 - Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

Note 9. Property, Plant and Equipment, Net

 

Property, plant and equipment consists of:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Land

 $22  $22 

Buildings and improvements

  4,216   3,956 

Leasehold improvements

  7,983   5,440 

Machinery and equipment

  31,207   29,645 

Furniture and fixtures

  4,723   5,765 

Gross property, plant and equipment

  48,151   44,828 

Accumulated depreciation

  (21,814)  (19,686)

Property, plant and equipment, net

 $26,337  $25,142 

 
v3.25.0.1
Note 10 - Deferred Financing Costs, Net
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Deferred Financing Costs [Text Block]

Note 10. Deferred Financing Costs, Net

 

Deferred financing costs consist of:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Deferred financing costs, net of accumulated amortization of $747 and $104, respectively

 $1,823  $2,450 

 
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 11. Goodwill and Other Intangible Assets

 

The following table summarizes goodwill by segment:

 

  

Zig-Zag

  

Stoker’s

  

Total

 

Balance as of December 31, 2022

 $103,663  $32,590  $136,253 
             

Cumulative translation adjustment

  (3)  -   (3)

Balance as of December 31, 2023

 $103,660  $32,590  $136,250 
             

Cumulative translation adjustment

  (318)  -   (318)

Balance as of December 31, 2024

 $103,342  $32,590  $135,932 

 

The Company tests goodwill for impairment annually as of December 31, or more frequently when events or changes in circumstances indicate that the fair value is below its carrying value. The Company performed a quantitative assessment in evaluating its Zig-Zag and Stoker’s reporting units for impairment as of December 31, 2024. 

 

For the quantitative assessment, the Company used a discounted cash flow model (income approach) utilizing Level 3 unobservable inputs. The Company’s significant assumptions for the discount cash flow model include, but are not limited to, future cash flow projections, the weighted average cost of capital, the terminal growth rate, and the tax rate. The Company believes the current assumptions and estimates utilized in the discounted cash flow model are both reasonable and appropriate. The Company’s estimates of future cash flows are based on current regulatory and economic climates, recent operating results, and planned business strategies. These estimates could be negatively affected by changes in federal, state, or local regulations or economic downturns. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from the Company’s estimates. If the Company’s ongoing estimates of future cash flows are not met or if discount rates change, the Company may have to record impairment charges in future periods. Based on the analysis performed, the Company concluded that no impairment exists for its Zig-Zag or Stoker's reporting units as of December 31, 2024. 

 

In 2023, the Company performed a qualitative assessment in evaluating its Zig-Zag and Stoker’s reporting units. As part of that assessment, the Company considered macro and micro-economic indicators, changes in costs, overall financial performance and other relevant entity-specific events, and noted no indications of impairment. The Company also considered the significant excess of fair values over carrying values as determined in the 2022 quantitative assessment. The underlying assumptions utilized during the 2022 quantitative assessment remained sufficiently similar in 2023 and in line with Company projections. Accordingly, such underlying assumptions on which the previous fair values were based had not sufficiently changed from 2022 to suggest a material difference in the 2023 fair value assessments, and thus indicated that the fair values of the reporting units as of December 31, 2023 remained above their carrying amounts.

 

The following tables summarize information about the Company’s other intangible assets. Gross carrying amounts of indefinite-lived intangible assets are shown below:

 

  

December 31, 2024

  

December 31, 2023

 
  

Zig-Zag

  

Stoker’s

  

Total

  

Zig-Zag

  

Stoker’s

  

Total

 

Indefinite-lived intangible assets:

                        

Trade names

 $-  $8,500  $8,500  $-  $8,500  $8,500 

Formulas

  42,245   53   42,298   42,245   53   42,298 

Total

 $42,245  $8,553  $50,798  $42,245  $8,553  $50,798 

 

In 2024, the Company performed a quantitative assessment of its indefinite-lived intangible assets and noted no indicators of impairment as of December 31, 2024. The Company’s fair value methodology for the quantitative assessment is primarily based on the relief from royalty approach. Significant assumptions in this approach include, but are not limited to, projected revenue, the weighted average cost of capital and royalty rate.

 

In 2023, the Company performed a qualitative assessment of its indefinite-lived intangible assets. As part of this assessment, the Company evaluated whether indicators of impairment were present by considering macro and micro-economic factors, along with market and other relevant company-specific events and determined that there were no indications of impairment as of December 31, 2023. In January 2023, the Company transferred certain of its indefinite-lived formulas within the Zig-Zag segment to amortized intangible assets. The Company began to amortize the formula over its useful life of 15 years and, as a result, incurred additional amortization expense of $0.7 million in 2023. The effect of this change in estimate reduced 2023 net income by $0.4 million and reduced 2023 basic and diluted earnings per share by $0.02 per share. The estimated annual straight line amortization expense related to this transfer is $0.7 million per year for each of the next five years.  

 

Amortized intangible assets consists of:

 

  

Zig-Zag

  

Stoker’s

 
  

December 31,

  

December 31,

  

December 31,

  

December 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

Gross

  

Accumulated

  

Gross

  

Accumulated

  

Gross

  

Accumulated

  

Gross

  

Accumulated

 
  

Carrying

  

Amortization

  

Carrying

  

Amortization

  

Carrying

  

Amortization

  

Carrying

  

Amortization

 

Amortized intangible assets:

                                

Trade names (useful life of 15 years)

 $437  $45  $449  $10  $2,372  $791  $2,372  $633 

Formulas (useful life of 15 years)

  9,972   1,330   9,972   665   -   -   -   - 

Master distribution agreement (useful life of 15 years)

  5,489   1,648   5,489   1,281   -   -   -   - 

Total

 $15,898  $3,023  $15,910  $1,956  $2,372  $791  $2,372  $633 

 

 

Annual amortization expense for the next five years is estimated to be approximately $1.2 million for 2025 and $4.8 million for 2026 through 2029, assuming no additional transactions occur that require the amortization of intangible assets.

 
v3.25.0.1
Note 12 - Other Assets
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Investments and Other Noncurrent Assets [Text Block]

Note 12. Other Assets

 

Other assets consists of:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Non-marketable equity investments

 $1,231  $2,405 

Debt security investment

  6,276   6,750 

Capitalized software

  7,409   5,923 

Captive investments - available-for-sale marketable securities

  5,487   - 

Other

  259   88 

Total

 $20,662  $15,166 

 

Debt Security and Non-Marketable Equity Investments

 

The Company records its non-marketable equity investments without a readily determinable fair value, that are not accounted for under the equity method, at cost, with adjustments for impairment and observable price changes. Should assumptions underlying the determination of the fair values of the Company’s non-marketable equity and debt security investments change, it could result in material future impairment charges.

 

In January 2024, the Company invested $0.8 million to acquire an 18.7% stake in Teaza Energy, LLC (“TeaZa”). TeaZa is an innovative brand of flavorful oral pouch products that can be dipped or sipped, designed as a health-conscious alternative to high energy drinks and other conventional oral stimulants. The investment was comprised of $0.5 million in cash and a $0.3 million payable to be offset against the Company’s allocated portion of future profit distributions. The Company also has the option to purchase, at fair value, up to 100% of the equity interest from February 1, 2025 through June 30, 2026. The Company accounts for its investment in TeaZa using the equity method of accounting.

 

In July 2021, the Company invested $8.0 million in Old Pal Holding Company, LLC (“Old Pal”), with an additional $1.0 million invested in July 2022. The Company invested in the form of a convertible note which includes additional follow-on investment rights. Interest on the convertible note is payable annually in arrears in July of each year. Accrued interest of $0.2 million, $0.3 million and $0.3 million was rolled into the convertible note in July 2022, 2023 and 2024, respectively, resulting in a total investment of $9.8 million. Old Pal is a leading brand in the cannabis lifestyle space that operates a non-plant touching licensing model. The convertible note bears an interest rate of 3.0% per year and matures July 31, 2027. Interest and principal not paid to date are receivable at maturity. Old Pal has the option to extend the maturity date of the convertible note in one-year increments. The interest rate is subject to change based on Old Pal reaching certain sales thresholds. The weighted average interest rate on the convertible note was 3.0% as of  December 31, 2024 and 2023. Old Pal has the option to convert the note into shares once sales reach a certain threshold. The conditions required to allow Old Pal to convert the note were not met as of December 31, 2024. Additionally, the Company has the right to convert the note into shares at any time. The Company has classified the debt security with Old Pal as available for sale. The Company reports interest income on available for sale debt securities in interest income in our Consolidated Statements of Income. The Company performs a qualitative assessment on a quarterly basis to determine if the fair value of the investment could be less than the amortized cost basis. In addition, the Company utilizes a third-party to perform a quantitative assessment to determine fair value using a Monte Carlo simulation (Level 3) when indicated, and at least bi-annually. Based upon a quantitative fair value assessment, the Company determined the fair value to be $6.4 million, $6.9 million and $7.9 million as of December 31, 2024, 2023 and 2022, respectively. The Company recorded an allowance for credit losses of $0.8 million, $1.3 million and $1.4 million included in investment loss for the years ended December 31, 2024, 2023 and 2022, respectively. The Company has recorded an accrued interest receivable of $0.1 million and $0.1 million at December 31, 2024 and 2023, respectively, in Other current assets on our Consolidated Balance Sheets.

 

In April 2021, the Company invested in Docklight Brands, Inc. (“Docklight”). In 2023, based on Docklight’s financial results, a decline in the revenue multiples for comparable public companies, and a significant change in Docklight’s business model, the Company deemed the investment in Docklight fully impaired resulting in a loss of $8.7 million which was recorded in investment loss for the year ended December 31, 2023. Fair value was determined using a valuation derived from relevant revenue multiples (Level 3). There were no purchases of inventory from, or amounts payable to Docklight Brands, Inc. at December 31, 2024 and 2023.

 

In October 2020, the Company acquired a 20% stake in Wild Hempettes, LLC (“Wild Hempettes”). In 2023, based on Wild Hempettes' financial results, the Company deemed its investment in Wild Hempettes to be impaired resulting in a $2.2 million impairment charge included in investment loss for the year ended December 31, 2023. Fair value for the Company’s share of investment in Wild Hempettes was determined using a valuation derived from relevant revenue multiples (Level 3). In 2024, the Company reached an agreement to return its 20% equity stake to Wild Hempettes for no consideration resulting in an impairment charge of $0.3 million recorded in investment loss for the year ended December 31, 2024. The Company accounted for its 20% share of Wild Hempettes using the equity method of accounting. There were no purchases of inventory from, or amounts payable to Wild Hempettes at December 31, 2024 and 2023. The Company had a $0.2 million receivable from Wild Hempettes at December 31, 2023 for the return of previously purchased and paid for product.

 

In October 2020, the Company invested in BOMANI Cold Buzz, LLC (“Bomani”). In 2024, due to market conditions in the cold brew, alcohol-infused caffeinated beverages industry, the Company has determined that the fair value of Bomani is zero, and thus recorded a $1.8 million impairment which is included in investment loss for the year ended December 31, 2024. There were no purchases of inventory from, or amounts payable to Bomani at December 31, 2024 and 2023.

 

In December 2018, the Company acquired a minority ownership position in General Wireless Operations, Inc. from 5G gaming LLC for $0.4 million. In  December 2024, the Company entered into an agreement to contribute 100% of its interest in SBB, the subsidiary that owns and operates the Company’s CDS segment, to General Wireless Operations, Inc. in exchange for 49% of the issued and outstanding GWO common stock. See Note 3, "Assets Held for Sale and Discontinued Operations" for more information regarding the disposal of the Company's CDS business. There were no amounts payable to General Wireless Operations, Inc. at December 31, 2024 and 2023.

 

In October 2020, the Company invested $15.0 million in dosist™ (“Dosist”), a global cannabinoid company. In 2021, based on the financial results of Dosist and the overall cannabinoid market, the Company deemed its investment was impaired resulting in a loss of $7.1 million recorded in investment loss for the year ended December 31, 2021. In 2022, after a contemplated sale of the assets of Dosist did not occur, Dosist entered into an agreement with a new buyer receiving the assets of Dosist for the assumption of its liabilities. As such, the Company considered its remaining investment in Dosist to be fully impaired and recorded an additional loss of $7.9 million in investment loss for the year ended December 31, 2022.

 

The Company had a minority ownership position in Canadian American Standard Hemp (“CASH”). CASH is headquartered in Warwick, Rhode Island, and manufactures cannabidiol isolate (“CBD”) developed through highly efficient and proprietary processes. In 2022, as a result of a significant decline in the enterprise value, the Company determined that the fair value of the investment was $0.0 and fully impaired the investment. The impairment resulted in a loss of $4.3 million which is recorded in investment loss for the year ended December 31, 2022.

 

Captive Investments - Available-for-Sale Marketable Securities

 

In  December 2023, the Company formed a captive insurance company, Interchange, IC, incorporated in the District of Columbia, to write a portion of its insurance coverage, including with respect to general product, and officer and director liability coverages under deductible reinsurance policies. Interchange, IC is a fully licensed captive insurance company holding a certificate of authority from the District of Columbia Department of Insurance, Securities and Banking. Interchange, IC is a wholly-owned subsidiary of Turning Point Brands and is consolidated in the Company’s financial statements. 

 

The investments held within the captive insurance company are not available for operating activities and are carried at fair value on the Consolidated Balance Sheet as of December 31, 2024. They consist of money market, stocks, corporate bonds, government securities and real estate investment trusts. The Company believes any investments held with gross unrealized losses to be temporary and not the result of credit risk. 

 

The Company’s captive investments are summarized in the following table (excludes money market funds):

 

  

As of December 31, 2024

 
  

Amortized Cost

  

Gross Unrealized Gains (Losses)

  

Estimated Fair Value

 

Stocks

 $1,517  $9   1,526 

Exchange traded funds

  1,189   (5)  1,184 

Corporate Bonds

  2,383   50   2,433 

Real estate investment trusts

  343   1   344 

Total

 $5,432  $55  $5,487 

 

The following table summarizes the fair value of the Company's captive investments by contractual maturity: 

 

  

As of

 
  

December 31, 2024

 

Due within one year

 $2,242 

Due in one to five years

  191 

Stocks, real estate investment trusts and exchange traded funds

  3,054 

Total investments at fair value

 $5,487 

 
v3.25.0.1
Note 13 - Accrued Liabilities
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Note 13. Accrued Liabilities

 

Accrued liabilities consists of:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Accrued payroll and related items

 $9,564  $6,599 

Customer returns and allowances

  5,160   5,064 

Taxes payable

  358   3,413 

Lease liabilities

  3,121   2,608 

Accrued interest

  5,473   6,682 

Other

  7,420   7,686 

Total

 $31,096  $32,052 

 
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 14. Notes Payable and Long-Term Debt

 

Notes payable and long-term debt consists of the following in order of preference:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

2026 Notes

 $250,000  $250,000 

Convertible Senior Notes

  -   118,541 

Gross notes payable and long-term debt

  250,000   368,541 

Less deferred financing costs

  (1,396)  (3,183)

Less current maturities

  -   (58,294)

Notes payable and long-term debt

 $248,604  $307,064 

 

The components of interest expense, net consists of the following:

 

  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 

Interest expense

 $18,526  $21,028  $21,920 

Interest income

  (4,543)  (6,383)  (2,396)

Interest expense, net

 $13,983  $14,645  $19,524 

 

2026 Notes

 

On February 11, 2021, we closed a private offering of $250.0 million aggregate principal amount of our 5.625% senior secured notes due 2026 (the “2026 Notes”). The 2026 Notes incurred interest at a rate of 5.625%. Interest on the 2026 Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2021.We used the proceeds from the offering (i) to repay all obligations under and terminate the 2018 First Lien Credit Facility, (ii) to pay related fees, costs and expenses and (iii) for general corporate purposes.

 

Obligations under the 2026 Notes were guaranteed by the Company’s existing and future wholly-owned domestic subsidiaries (the “Guarantors”) that guarantee any credit facility (as defined in the indenture governing the 2026 Notes or the “2026 Notes Indenture”) or capital markets debt securities of the Company or Guarantors in excess of $15.0 million. The 2026 Notes and the related guarantees are secured by first-priority liens on substantially all of the assets of the Company and the Guarantors, subject to certain exceptions. We were in compliance with all covenants under the 2026 Notes as of December 31, 2024.

 

 

The 2026 Notes Indenture contains covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to: (i) grant or incur liens; (ii) incur, assume or guarantee additional indebtedness; (iii) sell or otherwise dispose of assets, including capital stock of subsidiaries; (iv) make certain investments; (v) pay dividends, make distributions or redeem or repurchase capital stock; (vi) engage in certain transactions with affiliates; and (vii) consolidate or merge with or into, or sell substantially all of our assets to another entity. These covenants are subject to a number of limitations and exceptions set forth in the Senior Secured Notes Indenture. For instance, the Company is generally permitted to make restricted payments, including the payment of dividends to shareholders, provided that, at the time of payment, or as a result of payment, the Company is not in default on its debt covenants; however, there are earnings and market capitalization requirements that if not met could limit the aggregate amount of quarterly dividends payable during a fiscal year. The 2026 Notes Indenture provides for customary events of default. 

 

The Company incurred debt issuance costs attributable to the issuance of the 2026 Notes of $6.4 million which are amortized to interest expense using the straight-line method over the expected life of the 2026 Notes.

 

The 2026 Notes were redeemed on February 20, 2025.  See Note 24, "Subsequent Events" for additional information. 

 

2021 Revolving Credit Facility

 

In connection with the Offering, the Company also entered into a $25.0 million senior secured revolving credit facility (the “2021 Revolving Credit Facility”) with the lenders party thereto and Barclays Bank PLC, as administrative agent and collateral agent. On May 10, 2023, the Company and certain of its subsidiaries, as guarantors, entered into an amendment (the “Amendment”) to the 2021 Revolving Credit Facility (as amended, the “Amended Revolving Credit Facility”).  The Amendment includes certain modifications to the 2021 Revolving Credit Facility relating to the replacement of the London Inter-Bank Offered Rate with a Secured Overnight Financing Rate (“SOFR”) as the interest rate benchmark under the 2021 Revolving Credit Facility and adjusts certain other provisions to reflect current documentation standards and other agreed modifications.

 

On November 7, 2023, in connection with the entry by a subsidiary of the Company in a new asset-backed revolving credit facility, the Company terminated the Amended Revolving Credit Facility. See “2023 ABL Facility” below.

 

The Company incurred debt issuance costs attributable to the issuance of the Amended Revolving Credit Facility of $0.5 million, with a remaining $0.2 million written off to gain on debt extinguishment upon termination of the facility in 2023.

 

2023 ABL Facility

 

On November 7, 2023, TPB Specialty Finance, LLC, a wholly-owned subsidiary of the Company (the “ABL Borrower”), entered into a new $75.0 million asset-backed revolving credit facility (the “2023 ABL Facility”), with the several lenders thereunder, and Barclays Bank PLC, as administrative agent (the “Administrative Agent”) and as collateral agent and First-Citizens Bank & Trust Company as additional collateral agent (the “Additional Collateral Agent”). Under the 2023 ABL Facility, the ABL Borrower may draw up to $75.0 million under revolving credit loans and last-in, last-out (“LILO”) loans. The 2023 ABL Facility includes a $40.0 million accordion feature.  In connection with the 2023 ABL Facility, the Company contributed certain existing inventory to the ABL Borrower. The 2023 ABL Facility is secured on a first-priority basis (subject to customary exceptions) by all assets of the ABL Borrower.

 

The 2023 ABL Facility contains customary borrowing conditions including a borrowing base equal to the sum of (a) the lesser of (1) 85% of the lower of (A) the market value (on a first in first out basis) of the sum of eligible inventory, plus eligible in-transit inventory of the ABL Borrower and (B) 85% of the cost of the sum of eligible inventory, plus eligible in-transit inventory of the ABL Borrower and (2) 85% of the net orderly liquidation value (“NOLV”) percentage of the lower of (1)(A) or (1)(B); plus (b) 85% of the face value of all eligible accounts of the ABL Borrower minus (c) the amount of all eligible reserves.  The 2023 ABL Facility also includes a LILO borrowing base equal to the sum of (a) the lesser of: (1) 10% of the lower of (A) the market value (on a first in first out basis) of the sum of eligible inventory, plus eligible in-transit inventory of the ABL Borrower and (B) the cost of the sum of eligible inventory, plus eligible in-transit inventory and (2) 10% of the NOLV percentage of the lower of  (1)(A) or (1)(B); plus (b) 10% of the face amount of eligible account; minus (c) the amount of all eligible reserves.

 

Amounts borrowed under the 2023 ABL Facility are subject to an interest rate margin per annum equal to (a) from and after the closing date until the last day of the first full fiscal quarter ended after the closing date, (i) 1.25% per annum, in the case base rate loans, and (ii) 2.25% per annum, in the case of revolving credit loans that are SOFR Loans, (b)(i) 2.25% per annum, in the case of LILO loans that are base rate loans, and (ii) 3.25% per annum, in the case of LILO loans that are SOFR loans, (c) on the first day of each fiscal quarter, the applicable interest rate margins will be determined from the pricing grid below based upon the historical excess availability for the most recent fiscal quarter ended immediately prior to the relevant date, as calculated by the Administrative Agent.

 

   

Applicable Margin

  

Applicable Margin

 

Level

Historical Excess Availability

 

for SOFR Loans

  

or Base Rate Loans

 

I

Greater than or equal to 66.66%

  1.75%  0.75%

II

Less than 66.66%, but greater than or equal to 33.33%

  2.00%  1.00%

III

Less than 33.33%

  2.25%  1.25%

 

The 2023 ABL Facility also requires the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 as of the end of any four consecutive fiscal quarters if excess availability shall be less than the greater of (a) 12.5% of the line cap and (b) $9.4 million, at any time and continuing until excess availability is equal to or exceeds the greater of (i) 12.5% of the line and (ii) $9.4 million for thirty (30) consecutive calendar days; provided that such $9.4 million level shall automatically increase in proportion to the amount of any increase in the aggregate revolving credit commitments thereunder in connection with any incremental facility.

 

The 2023 ABL Facility shall mature on the earlier of (x) November 7, 2027 and (y) the date that is 91 days prior to the maturity date of any material debt of the ABL Borrower or the Company or any of its restricted subsidiaries (subject to customary extensions agreed by the lenders thereunder); provided that clause (y) shall not apply to the extent that on any applicable date of determination (on any date prior to the date set forth in clause (y)), (A) the sum of (x) cash that is held in escrow for the repayment of such material debt pursuant to arrangements satisfactory to the Administrative Agent, (y) cash that is held in accounts with the Administrative Agent and/or the Additional Collateral Agent, plus (z) excess availability, is sufficient to repay such material debt and (B) the ABL Borrower has excess availability of at least $15.0 million after giving effect to such repayment of material debt, including any borrowings under the commitments in connection therewith.

 

The Company has not drawn any borrowings under the 2023 ABL Facility but has letters of credit of approximately $2.3 million outstanding under the facility and has an available balance of $57.4 million based on the borrowing base as of December 31, 2024.

 

The Company incurred debt issuance costs attributable to the 2023 ABL Facility of $2.6 million which are amortized to interest expense using the straight-line method over the expected life of the 2023 ABL Facility.

 

Convertible Senior Notes

 

In July 2019, the Company closed an offering of $172.5 million in aggregate principal amount of its 2.50% convertible senior notes due  July 15, 2024 (the “Convertible Senior Notes”). The Convertible Senior Notes were senior unsecured obligations of the Company and the remaining outstanding balance of $118.5 million was retired with cash on  July 15, 2024.

 

In 2022, a wholly owned subsidiary of the Company repurchased $10.0 million in aggregate principal amount of the Convertible Senior Notes on the open market resulting in a $0.9 million gain on extinguishment of debt. Subsequent principal repurchases occurred in 2023 for an aggregate principal amount of $44.0 million resulting in a gain on extinguishment of debt of $1.9 million. Including amounts repurchased in 2022, a total of $54.0 million in aggregate principal amount of the Convertible Senior Notes had been repurchased as of December 31, 2023. The repurchased notes were retired on July 1, 2024, with no principal amounts remaining outstanding or held by third parties as of December 31, 2024. As of December 31, 2023, $118.5 million aggregate principal was recorded in current liabilities on the Company’s Consolidated Balance Sheet.

 
v3.25.0.1
Note 15 - Income Taxes
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 15. Income Taxes 

 

Income tax expense (benefit) for the years ended December 31 consists of the following components:

 

  

2024

  

2023

  

2022

 
  

Current

  

Deferred

  

Total

  

Current

  

Deferred

  

Total

  

Current

  

Deferred

  

Total

 

Federal

 $14,005  $240  $14,245  $13,404  $4,091  $17,495  $13,505  $(4,713) $8,792 

State and Local

  2,405   279   2,684   3,587   2,166   5,753   3,897   (1,291)  2,606 

Foreign

  -   -   -   (16)  767   751   84   (502)  (418)

Total

 $16,410  $519  $16,929  $16,975  $7,024  $23,999  $17,486  $(6,506) $10,980 

 

Deferred tax assets and liabilities consists of:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 
  

Assets

  

Liabilities

  

Assets

  

Liabilities

 

Inventory

 $4,802  $-  $5,310  $- 

Property, plant, and equipment

  -   3,433   -   3,120 

Goodwill and other intangible assets

  -   3,549   -   3,182 

Foreign NOL carryforward

  1,505   -   1,495   - 

State NOL carryforward

  2,339   -   2,398   - 

Unrealized loss on investments

  3,846   -   7,203   - 

Leases

  3,278   3,004   3,278   2,978 

Original issue discount

  -   -   426   - 

Stock compensation

  4,306   -   4,879   - 

Insurance receivable

  -   3,728   -   3,764 

Capital loss carryforward

  4,108   -   -   - 

Other

  5,117   2,006   4,536   3,567 

Gross deferred income taxes

  29,301   15,720   29,525   16,611 

Valuation allowance

  (12,586)  -   (11,446)  - 

Net deferred income taxes

 $16,715  $15,720  $18,079  $16,611 

 

At December 31, 2024, the Company had state net operating loss (“NOL”) carryforwards for income tax purposes of approximately $23.6 million, which expire between 2034 and 2042, $27.2 million of which has an indefinite carryforward period. The Company has determined that, at December 31, 2024 and 2023 its ability to realize future benefits of its state NOL carryforwards does not meet the “more likely than not” criteria in ASC 740, Income Taxes. Therefore, a valuation allowance for state NOL carryforwards of $3.1 million and $2.9 million has been recorded at December 2024 and 2023, respectively. The Company has determined that at December 31, 2024 and 2023, its ability to realize future benefits of its capital loss carryforward, unrealized loss on investments and foreign NOL carryforwards do not meet the “more likely than not” criteria in ASC 740, Income Taxes. Therefore, a valuation allowance for capital loss carryforward of $4.1 million, unrealized loss on investments of $3.1 million and foreign NOL carryforwards of $1.8 million has been recorded at December 31, 2024

and a valuation allowance for unrealized loss on investments of $6.4 million and foreign NOL carryforwards of $1.7 million has been recorded as of December 31, 2023. 

 

ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company has determined that they did not have any uncertain tax positions requiring recognition as a result of the provisions of ASC 740-10-25. The Company’s policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense. For the years ended December 31, 2024, 2023, and 2022, no estimated interest or penalties were recognized for the uncertainty of tax positions taken. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. In general, the Company is no longer subject to U.S. federal and state tax examinations for years prior to 2021.

 

Reconciliation of the federal statutory rate and the effective income tax rate for the years ended December 31 is as follows:

 

  

2024

  

2023

  

2022

 

Federal statutory rate

  21.0%  21.0%  21.0%

Foreign rate differential

  (0.1)%  (0.1)%  (0.2)%

State taxes

  3.4%  4.3%  5.0%

Permanent differences

  (0.6)%  (0.1)%  - 

Other

  0.6%  -   0.2%

Valuation allowance

  1.8%  13.6%  0.1%

Effective income tax rate

  26.1%  38.7%  26.1%

 

The permanent differences for the years ended December 31, 2024, 2023 and 2022 are not significant in the aggregate. 

 
v3.25.0.1
Note 16 - 401(k) Retirement Savings Plan
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Retirement Benefits [Text Block]

Note 16. 401(k) Retirement Savings Plan

 

The Company sponsors a voluntary 401(k) retirement savings plan. Eligible employees may elect to contribute up to 15% of their annual earnings subject to certain limitations. For the 2024, 2023 and 2022 plan years, the Company contributed 4% to employees who contributed 4% or more of their annual earnings. Employees contributing less than 4% received a 100% match on their contributions. Additionally, for all years presented, the Company made discretionary contributions of 1% to all employees, regardless of an employee’s contribution level. Company contributions to this plan were approximately $1.5 million for 2024, $1.4 million for 2023 and $1.5 million for 2022.

 
v3.25.0.1
Note 17 - Lease Commitments
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Lessee, Operating Leases and Finance Leases [Text Block]

Note 17. Lease Commitments

 

The Company’s leases consist primarily of leased property for manufacturing, warehouse, corporate offices and retail space as well as vehicle leases. At lease inception, the Company recognizes a lease right of use asset and lease liability calculated as the present value of future minimum lease payments. Some leases may require payment of other components such as taxes, insurance, maintenance and operating expenses. When payments related to these other components are considered fixed, they are included in the determination of the lease liability due to the Company’s election to combine lease and non-lease components and account for them as a single lease component. Otherwise, they are recognized as variable payments, along with variable payments not based on a rate or index, in the period in which the obligation for those payments is incurred.

 

In general, the Company does not recognize renewal periods within the lease terms as there are no significant barriers to ending the lease at the initial term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

 

The components of lease expense consist of the following:

 

  

For the year ended December 31,

 
  

2024

  

2023

  

2022

 

Operating lease cost

            

Cost of sales

 $502  $507  $940 

Selling, general and administrative

  1,760   1,756   1,388 

Variable lease cost

  1,091   1,161   699 

Short-term lease cost

  -   24   37 

Total

 $3,353  $3,448  $3,064 

 

 

  

For the year ended December 31,

 
  

2024

  

2023

  

2022

 

Financing lease cost

            

Selling, general and administrative

 $860  $1,164  $1,138 

Interest expense, net

  173   -   - 

Variable lease cost

  72  $-  $- 

Total

 $1,105  $1,164  $1,138 

 

The Company's lease balances consist of the following:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Assets:

        

Right of use assets - Operating

 $8,338  $8,829 

Right of use assets - Financing

  3,272   2,530 

Total lease assets

 $11,610  $11,359 
         

Liabilities:

        

Current lease liabilities - Operating (1)

 $2,011  $1,921 

Current lease liabilities - Financing (1)

  1,110   687 

Long-term lease liabilities - Operating

  7,400   8,322 

Long-term lease liabilities - Financing

  2,149   1,576 

Total lease liabilities

 $12,670  $12,506 

 

(1)

Reported within accrued liabilities on the balance sheet

 

Other information related to the Company's leases consists of the following:

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Right of use assets obtained in exchange for lease obligations:

        

Operating leases

 $1,209  $143 

Finance leases

 $1,842  $2,169 

 

  

As of December 31,

 
  

2024

  

2023

 

Weighted-average remaining lease term - operating leases (years)

  4.8   5.7 

Weighted-average discount rate - operating leases

  5.65%  5.17%

Weighted-average remaining lease term - financing leases (years)

  3.1   3.4 

Weighted-average discount rate - financing leases

  6.64%  6.48%

 

Nearly all the lease contracts for the Company do not provide a readily determinable implicit rate. For these contracts, the Company uses a discount rate that approximates its incremental borrowing rate at the time of the lease commencement.

 

The following table illustrates the Company's future minimum rental payments for non-cancelable leases as of December 31, 2024:

 

Year

 

Operating

  

Finance

 

2025

 $2,487  $1,293 

2026

  2,299   1,176 

2027

  2,449   833 

2028

  1,158   302 

2029

  1,159   - 

Years thereafter

  1,379   - 

Total lease payments

  10,931   3,604 

Less: Imputed interest

  1,520   345 

Present value of lease liabilities

 $9,411  $3,259 

 
v3.25.0.1
Note 18 - Share Incentive Plans
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 18. Share Incentive Plans

 

On March 22, 2021, the Company’s Board of Directors adopted the Turning Point Brands, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), pursuant to which awards may be granted to employees, non-employee directors, and consultants. In addition, the 2021 Plan provides for the granting of nonqualified stock options to employees of the Company or any subsidiary of the Company. Pursuant to the 2021 Plan, 1,290,000 shares, plus 100,052 shares remaining available for issuance under the 2015 Equity Incentive Plan (the “2015 Plan”), of TPB Common Stock are reserved for issuance as awards to employees, non-employee directors, and consultants as compensation for past or future services or the attainment of certain performance goals. The 2021 Plan is scheduled to terminate on March 21, 2031. The 2021 Plan is administered by the compensation committee (the “Committee”) of the Company’s Board of Directors. The Committee determines the vesting criteria for the awards, with such criteria to be specified in the award agreement. As of December 31, 2024, net of forfeitures, there were 381,717 Restricted Stock Units (“RSUs”), 125,213 options and 75,059 Performance Based Restricted Stock Units (“PRSUs”) granted under the 2021 Plan. There are 808,063 shares available for future grant under the 2021 Plan.

 

On April 28, 2016, the Board of Directors of the Company adopted the 2015 Plan, pursuant to which awards could have been granted to employees, non-employee directors, and consultants. In addition, the 2015 Plan provided for the granting of nonqualified stock options to employees of the Company or any subsidiary of the Company. Upon adoption of the 2021 Plan, the 2015 Plan was terminated, and the Company determined no additional grants would be made under the 2015 Plan. However, all awards issued under the 2015 Plan that have not been previously terminated or forfeited remain outstanding and continue unaffected. There are no shares available for grant under the 2015 Plan.

 

Stock option activity for the 2015 and 2021 Plans is summarized below:

 

      

Weighted

  

Weighted

 
  

Stock

  

Average

  

Average

 
  

Option

  

Exercise

  

Grant Date

 
  

Shares

  

Price

  

Fair Value

 

Outstanding, December 31, 2022

  683,214  $29.74  $9.24 
             

Granted

  77,519   20.71   6.45 

Exercised

  (33,851)  13.30   4.24 

Forfeited

  (69,931)  27.51   9.11 

Outstanding, December 31, 2023

  656,951  $29.79  $9.18 
             

Granted

  54,289   27.19   9.21 

Exercised

  (132,572)  21.36   6.97 

Forfeited

  (42,878)  38.11   11.94 

Outstanding, December 31, 2024

  535,790  $30.69  $9.51 

 

Under the 2015 and 2021 Plans, the total intrinsic value of options exercised during the years ended December 31, 2024, 2023, and 2022, was $2.6 million, $0.3 million, and $0.7 million, respectively.

 

At December 31, 2024, under the 2015 and 2021 Plans, the risk-free interest rate is based on the U.S. Treasury rate for the expected life at the time of grant. The expected volatility is based on the average long-term historical volatilities of peer companies. We intend to continue to consistently use the same group of publicly traded peer companies to determine expected volatility until sufficient information regarding volatility of our share price becomes available or until the selected companies are no longer suitable for this purpose. Due to our limited trading history, we are using the simplified method presented by SEC Staff Accounting Bulletin No. 107 to calculate expected holding periods, which represent the periods of time for which options granted are expected to be outstanding. We will continue to use this method until we have sufficient historical exercise experience to give us confidence in the reliability of our calculations. The fair values of these options were determined using the Black-Scholes option pricing model.

 

The following table outlines the assumptions for options granted under the 2015 Plan.

 

  

February 10,

  

May 17,

  

March 7,

  

March 20,

  

March 18,

  

February 18,

 
  

2017

  

2017

  

2018

  

2019

  

2020

  

2021

 

Number of options granted

  40,000   93,819   98,100   155,780   155,000   100,000 

Options outstanding at December 31, 2024

  20,000   30,969   49,267   100,147   62,207   68,900 

Number exercisable at December 31, 2024

  20,000   30,969   49,267   100,147   62,207   68,900 

Exercise price

 $13.00  $15.41  $21.21  $47.58  $14.85  $51.75 

Remaining lives

  2.12   2.38   3.19   4.22   5.22   6.14 

Risk free interest rate

  1.89%  1.76%  2.65%  2.34%  0.79%  0.56%

Expected volatility

  27.44%  26.92%  28.76%  30.95%  35.72%  28.69%

Expected life

  6.000   6.000   6.000   6.000   6.000   6.000 

Dividend yield

  -   -   0.83%  0.42%  1.49%  0.55%

Fair value at grant date

 $3.98  $4.60  $6.37  $15.63  $4.41  $13.77 

 

The following table outlines the assumptions for options granted under the 2021 Plan.

 

  

May 17,

  

March 14,

  

April 29,

  

May 12,

  

March 11,

 
  

2021

  

2022

  

2022

  

2023

  

2024

 

Number of options granted

  7,500   100,000   14,827   77,519   54,289 

Options outstanding at December 31, 2024

  7,500   58,719   6,273   77,519   54,289 

Number exercisable at December 31, 2024

  7,500   38,744   4,203   77,519   54,289 

Exercise price

 $45.05  $30.46  $31.39  $20.71  $27.19 

Remaining lives

  6.38   7.21   7.33   8.37   9.20 

Risk free interest rate

  0.84%  2.10%  2.92%  3.41%  4.06%

Expected volatility

  31.50%  35.33%  35.33%  34.51%  35.09%

Expected life

  6.000   6.000   6.000   5.186   5.186 

Dividend yield

  0.63%  1.01%  0.98%  1.61%  1.26%

Fair value at grant date

 $13.23  $10.23  $11.07  $6.45  $9.21 

 

The Company has recorded compensation expense related to the options based on the provisions of ASC 718 under which the fixed portion of such expense is determined as the fair value of the options on the date of grant and amortized over the vesting period. The Company recorded compensation expense related to the options of approximately $0.5 million, $0.7 million and $1.1 million for the years ended December 31, 2024, 2023 and 2022, respectively. At December 31, 2024, the options have been fully expensed with zero remaining. 

 

PRSUs are restricted stock units subject to both performance-based and service-based vesting conditions. The number of shares of TPB Common Stock a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance metrics related to the Company’s performance over a five-year period. PRSUs will vest on the measurement date, which is no more than 65 days after the performance period provided the applicable service and performance conditions are satisfied. At December 31, 2024, there are 372,218 PRSUs outstanding.

 

The following table outlines the PRSUs granted and outstanding as of December 31, 2024.

 

  

March 18,

  

February 18,

  

March 14,

  

May 4,

  

March 1,

  

April 1,

 
  

2020

  

2021

  

2022

  

2023

  

2024

  

2024

 

Number of PRSUs granted

  94,000   100,000   49,996   133,578   111,321   8,242 

PRSUs outstanding at December 31, 2024

  70,910   69,190   33,049   93,313   97,514   8,242 

Fair value as of grant date

 $14.85  $51.75  $30.46  $22.25  $26.52  $29.12 

Remaining lives

  -   1.00   2.00   1.00   2.00   2.00 

 

The Company recorded compensation expense related to the PRSUs of approximately $3.4 million, $3.0 million and $2.9 million in the consolidated statements of income for the years ended December 31, 2024, 2023 and 2022, respectively, based on the probability of achieving the performance condition. Total unrecognized compensation expense related to these awards at December 31, 2024, is $2.7 million, which will be expensed over the service period based on the probability of achieving the performance condition.

 

RSUs are stock units subject to service-based vesting conditions over one to five years. At December 31, 2024, there are 222,007 RSUs outstanding.

 

The following table outlines the RSUs granted and outstanding as of December 31, 2024.

 

  

March 14,

  

March 14,

  

April 29,

  

May 5,

  

March 1,

  

April 1,

  

May 8,

 
  

2022

  

2022

  

2022

  

2023

  

2024

  

2024

  

2024

 

Number of RSUs granted

  50,004   28,726   4,522   130,873   105,257   5,495   16,905 

RSUs outstanding at December 31, 2024

  32,091   9,481   1,913   69,114   87,008   5,495   16,905 

Fair value as of grant date

 $30.46  $30.46  $31.39  $22.25  $26.52  $29.12  $33.13 

Remaining lives

  2.00   -   2.00   1.25   2.25   2.25   0.25 

 

The Company has recorded compensation expense related to the RSUs based on the provisions of ASC 718 under which the fixed portion of such expense is determined as the fair value of the RSUs on the date of grant and amortized over the vesting period. The Company recorded compensation expense related to the RSUs of approximately $3.3 million, $2.9 millionand $1.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. Total unrecognized compensation expense related to RSUs at December 31, 2024, is $2.2 million, which will be expensed over 1.9 years.

 
v3.25.0.1
Note 19 - Contingencies
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 19. Contingencies

 

On October 9, 2020, a purported stockholder of Turning Point Brands, Inc., Paul-Emile Berteau, filed a complaint in the Delaware Court of Chancery relating to the merger of Standard Diversified, Inc. (“SDI”) with a TPB subsidiary (“Merger Sub”) pursuant to the Agreement and Plan of Merger and Reorganization, dated as of April 7, 2020, by and among TPB, SDI and Merger Sub. The parties attended a mediation in late November 2022 where a settlement was reached. On December 12, 2023, the Court approved the settlement and dismissed the action with prejudice. As of December 31, 2023, the Company recorded a $4.0 million receivable in other current assets, and a corresponding gain on settlement in other income on its Consolidated Statement of Income for the year ended December 31, 2023. These funds were received in January 2024.

 

Other major tobacco companies are defendants in product liability claims. In a number of these cases, the amounts of punitive and compensatory damages sought are significant and, if such a claim were brought against the Company, could have a material adverse effect on our business and results of operations. 

 

The CDS segment has several subsidiaries engaged in making, distributing, and selling liquid nicotine products. As a result of the overall publicity and controversy surrounding the industry generally, many companies have received informational subpoenas from various regulatory bodies and in some jurisdictions regulatory lawsuits have been filed regarding marketing practices and possible underage sales. We expect that our subsidiaries will be subject to some such cases and investigative requests. To the extent that litigation becomes necessary, we believe that the subsidiaries have strong factual and legal defenses against claims that they unfairly marketed products.

 

The probable losses, if any, associated with any such lawsuits are not currently reasonably estimable and therefore are not accrued.

 
v3.25.0.1
Note 20 - Earnings Per Share
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 20. Earnings Per Share

 

The Company calculates earnings per share using the treasury stock method for its options and non-vested restricted stock units, and the if-converted method for its Convertible Senior Notes.

 

The following is a reconciliation of the numerators and denominators of the basic and diluted EPS computations:

 

  

December 31, 2024

  

December 31, 2023

  

December 31, 2022

 
  

Income (Loss)

  

Shares

  

Per Share

  

Income (Loss)

  

Shares

  

Per Share

  

Income (Loss)

  

Shares

  

Per Share

 

Basic EPS:

                                    

Numerator

                                    

Income from continuing operations less non-controlling interest

 $47,326      $2.67  $38,747      $2.20  $31,570      $1.76 

Loss from discontinued operations, net of tax

  (7,517)      (0.43)  (285)      (0.01)  (19,929)      (1.11)

Net income attributable to Turning Point Brands, Inc.

 $39,809      $2.24  $38,462      $2.19  $11,641      $0.65 
                                     

Denominator

                                    

Weighted average

      17,734,239           17,578,270           17,899,794     
                                     

Diluted EPS:

                                    

Numerator

                                    

Income from continuing operations less non-controlling interest

 $47,326          $38,747          $31,570         

Interest expense related to Convertible Senior Notes, net of tax

  1,597           2,667           -         

Diluted income from continuing operations

 $48,923      $2.53  $41,414      $2.02  $31,570      $1.75 

Loss from discontinued operations, net of tax

  (7,517)      (0.39)  (285)      (0.01)  (19,929)      (1.11)

Diluted net income

 $41,406      $2.14  $41,129      $2.01  $11,641      $0.64 
                                     

Denominator

                                    

Basic weighted average

      17,734,239           17,578,270           17,899,794     

Convertible Senior Notes (1)

      1,192,597           2,533,201           -     

Stock options and restricted stock units (2)

      435,970           355,935           155,221     
       19,362,806           20,467,406           18,055,015     

 

(1)

For 2022, the effect of 3,208,172 shares issuable upon conversion of the Convertible Senior Notes were excluded from the diluted net income per share calculation because the effect would have been antidilutive.

(2)There were 0.2 million, 0.2 million and 0.2 million outstanding stock options not included in the computation of diluted earnings per share for the years ended December 31, 2024, 2023 and 2022, respectively, because the effect would have been antidilutive. 

 
v3.25.0.1
Note 21 - Segment Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 21. Segment Information

 

In accordance with ASC 280, Segment Reporting, the Company has two reportable segments, Zig-Zag products and Stoker’s products. The Zig-Zag products segment markets and distributes (a) rolling papers, tubes, and related products; (b) finished cigars and MYO cigar wraps; and (c) lighters and other accessories. The Stoker’s products segment (a) manufactures and markets moist snuff, (b) contracts for and markets loose-leaf chewing tobacco products, and (c) FRE, its modern oral product. The Company's products are distributed primarily through wholesale distributors in the U.S. and Canada. Corporate unallocated includes the costs and assets of the Company not assigned to one of the two reportable segments and includes corporate overhead expense, including executive management, finance, legal and information technology salaries, and professional services such as audit, external legal costs and information technology services, as well as costs related to the FDA premarket tobacco product application. The Company had one customer that accounted for 10.2% of net sales in 2024, of which 54% was in the Stoker's product segment and 46% was in the Zig-Zag products segment. The Company had no customer that accounted for more than 10% of net sales in 2023, or 2022.

 

The Company’s CODM is its President and Chief Executive Officer and uses segment operating income as the measure of earnings to evaluate the performance of each segment and to make decisions about allocating resources, including employees, property, plant and equipment, as well as financial and capital resources. On a quarterly basis, the CODM reviews segment operating income budget-to-actual variances to assess segment performance and make resource allocation decisions. For both reportable segments, cost of sales is the significant segment expense that is regularly provided to the CODM. 

 

The accounting policies of these segments are the same as those of the Company. Corporate costs are not directly charged to the two reportable segments in the ordinary course of operations. 

 

The tables below present financial information about reportable segments:

 

  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 
             

Net sales

            

Zig-Zag products

 $192,394  $180,455  $190,403 

Stoker’s products

  168,266   144,609   130,826 

Total

 $360,660  $325,064  $321,229 
             

Cost of sales

            

Zig-Zag products

 $85,809  $79,400  $83,827 

Stoker’s products

  73,286   62,722   59,572 

Total

 $159,095  $142,122  $143,399 
             

Gross profit

            

Zig-Zag products

 $106,585  $101,055  $106,576 

Stoker’s products

  94,980   81,887   71,254 

Total

 $201,565  $182,942  $177,830 
             

Other segment items (1)

            

Zig-Zag products

 $39,888  $32,775  $33,234 

Stoker’s products

  26,708   19,679   17,923 

Total

 $66,596  $52,454  $51,157 
             

Operating income (loss)

            

Zig-Zag products

 $66,697  $68,280  $73,342 

Stoker’s products

  68,272   62,208   53,331 

Total segment operating income

  134,969   130,488   126,673 

Corporate unallocated (2)(3)

  (54,137)  (47,528)  (52,665)

Total

 $80,832  $82,960  $74,008 
             

Interest expense, net

  13,983   14,645   19,524 

Investment loss

  1,893   11,914   13,303 

Other income

  -   (4,000)  - 

Gain on extinguishment of debt

  -   (1,664)  (885)
             

Income from continuing operations before income taxes

 $64,956  $62,065  $42,066 
             

Capital expenditures

            

Zig-Zag products

 $2,342  $1,112  $4,641 

Stoker’s products

  2,271   4,595   3,044 

Total

 $4,613  $5,707  $7,685 
             

Depreciation and amortization

            

Zig-Zag products

 $1,469  $1,077  $412 

Stoker’s products

  4,193   3,041   2,972 

Total

 $5,662  $4,118  $3,384 

 

(1)

Includes primarily selling and marketing costs

(2)

Includes corporate costs that are not allocated to any of the three reportable segments

(3)   Includes costs related to PMTA of $3.6 million, $2.1 million and $4.6 million in 2024, 2023, and 2022, respectively.

 

 

  

December 31,

  

December 31,

 
  

2024

  

2023

 

Assets

        

Zig-Zag products

 $224,052  $177,135 

Stoker’s products

  197,038   175,013 

Assets held for sale

  15,329   26,998 

Corporate unallocated (1)

  56,934   190,223 

Total

 $493,353  $569,369 

 

(1)

Includes assets not assigned to the two reportable segments. All goodwill has been allocated to the reportable segments.

 

Net Sales:  Domestic and Foreign

 

The following table shows a breakdown of consolidated net sales between domestic and foreign.

 

  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 

Domestic

 $330,690  $294,296  $288,874 

Foreign

  29,970   30,768   32,355 

Total

 $360,660  $325,064  $321,229 

 
v3.25.0.1
Note 22 - Dividends and Share Repurchase
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Dividends and Share Repurchases [Text Block]

Note 22. Dividends and Share Repurchase

 

The Company currently pays a quarterly cash dividend. Dividends are considered restricted payments under the Senior Secured Notes Indenture. The Company is generally permitted to make restricted payments provided that, at the time of payment, or as a result of payment, the Company is not in default on its debt covenants; however, there are earnings and market capitalization requirements that if not met could limit the aggregate amount of restricted, quarterly dividends during a fiscal year. During the years ended December 31, 2024, 2023 and 2022, the Company paid cash dividends of $0.28 per common share for $4.9 million, $0.26 per common share for $4.5 million and $0.24 per common share for $4.3 million, respectively. 

 

On February 25, 2020, the Company’s Board of Directors approved a $50.0 million share repurchase program which is intended for opportunistic execution based upon a variety of factors including market dynamics. The program is subject to the ongoing discretion of the Board of Directors. On October 25, 2021, the Board of Directors increased the approved share repurchase program by $30.7 million, and by an additional $24.6 million on February 24, 2022. On November 6, 2024, the Board of Directors of the Company increased the Company’s share repurchase authorization by $77.9 million to an aggregate amount of $100.0 million. The total number of shares repurchased for the year ended December 31, 2024 was 154,945 shares for a total cost of $5.1 million and an average price per share of $32.60. As of December 31, 2024, $100.0 million remains available for share repurchases under the program. There were no shares repurchased for the year ended  December 31, 2023. The Company repurchased 1,021,052 shares for a total cost of $29.2 million for the year ended December 31, 2022. 

 
v3.25.0.1
Note 23 - Selected Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Quarterly Financial Information [Text Block]

Note 23. Selected Quarterly Financial Information (Unaudited) 

 

The following table presents the quarterly operating results: 

 

(Per-share amounts in dollars)

 First Quarter  Second Quarter  Third Quarter  Fourth Quarter 
  

2024

  

2023

  

2024

  

2023

  

2024

  

2023

  

2024

  

2023

 

Net sales

 $83,064  $75,549  $93,225  $82,778  $90,704  $83,670  $93,667  $83,067 

Gross profit

 $48,354  $41,855  $50,398  $46,390  $50,395  $47,317  $52,418  $47,380 

Operating income

 $19,270  $17,581  $22,872  $20,085  $20,805  $20,697  $17,885  $24,597 

Income from continuing operations

 $12,181  $7,147  $12,961  $9,363  $12,525  $11,211  $10,360  $10,345 

(Loss) Income from discontinued operations, net of tax

 $(2) $195  $(41) $345  $(165) $(345) $(7,309) $(480)

Net income

 $12,179  $7,342  $12,920  $9,708  $12,360  $10,866  $3,051  $9,865 

Net income (loss) attributable to non-controlling interests

 $169  $(255) $(87) $(217) $(16) $35  $635  $(244)

Net Income attributable to Turning Point Brands, Inc.

 $12,010  $7,597  $13,007  $9,925  $12,376  $10,831  $2,416  $10,109 
                                 

Net Earnings per share

                                

Basic

                                

Continuing operations

 $0.68  $0.42  $0.74  $0.54  $0.71  $0.64  $0.55  $0.60 

Discontinued operations

  (0.00)  0.01   (0.00)  0.02   (0.01)  (0.02)  (0.41)  (0.03)

Basic earnings per share

 $0.68  $0.43  $0.74  $0.56  $0.70  $0.62  $0.14  $0.57 
                                 

Diluted

                                

Continuing operations

 $0.63  $0.40  $0.68  $0.51  $0.69  $0.59  $0.53  $0.56 

Discontinued operations

  (0.00)  0.01   (0.00)  0.02   (0.01)  (0.01)  (0.40)  (0.03)

Diluted earnings per share

 $0.63  $0.41  $0.68  $0.53  $0.68  $0.58  $0.13  $0.53 

 

The amounts presented in the table above are computed independently for each quarter. As a result, their sum may not equal the total year amounts.

 
v3.25.0.1
Note 24 - Subsequent Events
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Subsequent Events [Text Block]

Note 24. Subsequent Events

 

Contribution of Creative Distribution Solutions

 

On January 2, 2025, the Company contributed 100% of its interest in South Beach Brands LLC (“SBB”), the subsidiary that owns and operates the Company’s Creative Distribution Solutions (“CDS”) segment, to General Wireless Operations, Inc. (“GWO”) in exchange for a 49% equity interest in GWO. GWO is a joint venture between the Company and Standard General, LP entered into in December 2018. Under certain circumstances the Company has the right to redeem the contribution of SSB from GWO at fair market value.  In addition, the Company received an option with a 15-year term to purchase the remaining 51% of GWO at an exercise price initially set at $22.0 million, which decreases over time based on certain tax sharing payments to GWO.  The Company will provide certain transition services to GWO in connection with the operation of SBB on an arm’s length basis. The Company determined that, upon completion of the SBB exchange transaction, it will not have a controlling financial interest in GWO and, as a result, will deconsolidate SBB on January 2, 2025, and account for its interest in GWO under the equity method of accounting. 

 

2032 Notes

 

On February 19, 2025, the Company entered into an indenture relating to the issuance and sale of $300.0 million aggregate principal amount of its 7.625% Senior Secured Notes due 2032 (the “2032 Notes”), by and among the Company, the guarantors party thereto and GLAS Trust Company LLC, as trustee and notes collateral agent. Obligations under the 2032 Notes are guaranteed by the Company’s current wholly-owned domestic restricted subsidiaries that guaranteed its 2026 Notes. The 2032 Notes and the related guarantees are secured by first-priority liens on substantially all of the assets of the Company and the guarantors, subject to certain exceptions. Proceeds from the offering were approximately $294.0 million and were used to redeem the 2026 Notes and for general corporate purposes.

 

2026 Notes

 

On February 20, 2025 (the “Redemption Date”), the Company used a portion of the proceeds from the issuance and sale of the 2032 Notes to redeem all $250.0 million of its outstanding 2026 Notes at a redemption price equal to 100% of the aggregate principal amount of the 2026 Notes, plus accrued and unpaid interest thereon to, but excluding the Redemption Date. Upon redemption of the 2026 Notes, the indenture governing the 2026 Notes was satisfied and discharged in accordance with its terms.

 
v3.25.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]

Consolidation

 

The consolidated financial statements include the accounts of the Company, its subsidiaries, all of which are wholly-owned, and variable interest entities (“VIEs”) for which the Company is considered to have a controlling interest based on the voting interest entity model or the variable interest entity model. All significant intercompany transactions have been eliminated.

 

U.S. GAAP requires the Company to identify entities for which control is achieved through means other than voting rights and to determine whether the Company is the primary beneficiary of VIEs. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; and (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affects the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary.

 

The primary beneficiary of a VIE is the entity that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. The Company performs this analysis on an ongoing basis.

 

Management of the Company has determined that Turning Point Brands Canada and ALP Supply Co, LLC ("ALP") are VIEs for which the Company is required to consolidate. The Company has a controlling financial interest of 65% equity in Turning Point Brands Canada, provides additional subordinated financing, and has a distribution agreement for the sale of the Company’s products that makes up a significant portion of Turning Point Brands Canada’s business activities. The Company has a 50% equity interest in ALP, provides additional financing, has a supply agreement to be the exclusive provider of product and is the primary beneficiary due to the power the Company has over the activities that most significantly impact the economic performance, and the right to receive benefits and the obligation to absorb losses. See Note 4,"Joint Venture Agreement" for additional information on the current year ALP transaction. 

 
Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

 

The Company recognizes revenues in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (Topic 606), which includes excise taxes and shipping and handling charges billed to customers, net of cash discounts for prompt payment, sales returns and incentives, upon delivery of goods to the customer – at which time the Company’s performance obligation is satisfied - at an amount that the Company expects to be entitled to in exchange for those goods in accordance with the five-step analysis outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied. The Company includes in its transaction price excise taxes on smokeless tobacco, cigars or other nicotine products billed to customers, and excludes sales taxes and value-added taxes imposed at the time of sale.

 

The Company records an allowance for sales returns, based principally on historical volume and return rates, which is included in accrued liabilities on the consolidated balance sheets. The Company records sales incentives, which consist of consumer incentives and trade promotion activities, as a reduction in revenues (a portion of which is based on amounts estimated to be due to wholesalers, retailers and consumers at the end of the period) based principally on historical volume and utilization rates. Expected payments for sales incentives are included in accrued liabilities on the consolidated balance sheets.

 

A further requirement of ASC 606 is for entities to disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company’s management views business performance through segments that closely resemble the performance of major product lines. Thus, the primary and most useful disaggregation of the Company’s contract revenue for decision making purposes is the disaggregation by segment which can be found in Note 21, “Segment Information”. 

 
Discontinued Operations, Policy [Policy Text Block]

Held for Sale and Discontinued Operations

 

The Company classifies assets and liabilities to be sold (disposal group) as held for sale in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the sale of the disposal group is generally probable of being completed within one year. 

 

Assets and liabilities held for sale are presented separately within the Consolidated Balance Sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each period the disposal group remains classified as held for sale, its recoverability is reassessed, and any necessary adjustments are made to its carrying value. 

 

The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that will have a major effect on its operations and financial results. The results of discontinued operations are reported as Loss from discontinued operations, net of tax in the Consolidated Statements of Income for the current and prior periods commencing in the period in which the held for sale criteria are met. Loss from discontinued operations includes direct costs attributable to the divested business and excludes any cost allocations associated with any shared or corporate functions. Loss from discontinued operations will include any gain or loss recognized upon disposition or from any adjustment of the carrying amount of the assets and liabilities of the discontinued operations to fair value less costs to sell while classified as held for sale.
Derivatives, Policy [Policy Text Block]

Derivative Instruments

 

The Company enters into foreign currency forward contracts to hedge a portion of its exposure to changes in foreign currency exchange rates on inventory purchase commitments. The Company accounts for its forward contracts under the provisions of ASC 815, Derivatives and Hedging. Under the Company’s policy, the Company may hedge up to 100% of its anticipated purchases of inventory in the denominated invoice currency over a forward period not to exceed twelve months. The Company may also, from time to time, hedge up to 100% of its non-inventory purchases (e.g., production equipment) in the denominated invoice currency. Forward contracts that qualify as hedges are adjusted to their fair value through other comprehensive income as determined by market prices on the measurement date, except any hedge ineffectiveness which is recognized currently in income. Gains and losses on these forward contracts are reclassified from other comprehensive income into inventory as the related inventories are received and are transferred to net income as inventory is sold. Changes in fair value of any contracts that do not qualify for hedge accounting or are not designated as hedges are recognized currently in income.

 
Shipping Cost [Policy Text Block]

Shipping Costs

 

The Company records shipping costs incurred as a component of selling, general and administrative expenses. Shipping costs incurred were approximately $17.9 million, $16.0 million, and $14.0 million in 2024, 2023, and 2022, respectively.

 
Research and Development Expense, Policy [Policy Text Block]

Research and Development and Quality Assurance Costs

 

Research and development and quality assurance costs are expensed as incurred. These expenses, classified as selling, general and administrative expenses, were approximately $1.3 million, $0.6 million, and $0.6 million in 2024, 2023, and 2022, respectively.

 
Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

 

The Company considers any highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents.

 
Inventory, Policy [Policy Text Block]

Inventories

 

Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) method. Leaf tobacco is presented in current assets in accordance with standard industry practice, notwithstanding the fact that such tobaccos are carried longer than one year for the purpose of curing.

 
Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

 

Property, plant and equipment is stated at cost less accumulated depreciation and impairment. Depreciation is provided using the straight-line method over the lesser of the estimated useful lives of the assets or the life of the leases for leasehold improvements (4 to 7 years for machinery, equipment and furniture, 10 to 15 years for leasehold improvements, and up to 15 years for buildings and building improvements). Expenditures for repairs and maintenance are charged to expense as incurred. The costs of major renewals and improvements are capitalized and depreciated over their estimated useful lives. Upon disposition of fixed assets, the costs and related accumulated depreciation amounts are relieved. Any resulting gain or loss is reflected in operations during the period of disposition. Long-lived assets are reviewed for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

 
Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Other Intangible Assets

 

The Company follows the provisions of ASC 350, Intangibles – Goodwill and Other in accounting for goodwill and other intangible assets. Goodwill is tested for impairment annually on December 31, or more frequently if certain indicators are present.

 

When testing goodwill for impairment, the Company has the option to first perform qualitative testing to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company chooses not to complete a qualitative assessment for a given reporting unit or if the initial assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is required. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized in the amount by which the carrying value of the reporting unit exceeds its fair value, limited to the amount of goodwill at the reporting unit. The Company determines fair values for each of the reporting units using a combination of the income approach and/or market approach. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. Under the market approach, the Company selects peer sets based on close competitors and reviews the revenue and EBITDA multiples to determine the fair value. See Note 11, “Goodwill and Other Intangible Assets” for further information on goodwill.

 

Indefinite-lived intangible assets are tested for impairment at least annually; however, these tests are performed more frequently when events or changes in circumstances indicate that the asset may be impaired. Impairment exists when carrying value exceeds fair value. The Company’s fair value methodology is primarily based on the relief from royalty approach.

 

Definite-lived intangible assets are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3.5 to 15 years. The Company continually evaluates the reasonableness of the useful lives of these assets.

 
Fair Value Measurement, Policy [Policy Text Block]

Fair Value

 

U.S. GAAP establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

The three levels of the fair value hierarchy under U.S. GAAP are described below:

 

 

•

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets at the measurement date.

 

•

Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

•

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

 
Investment, Policy [Policy Text Block]

Equity Investments

 

The Company's investments include equity securities, which are accounted for at cost and under the equity method of accounting.

 

For equity investments that do not qualify to be accounted for under the equity method of accounting and that do not have a readily determinable fair value, the Company has elected a practical expedient to record the investment at the original cost, as adjusted for impairment and observable price changes. Under the practical expedient, if a qualitative analysis indicates impairment exists, the fair value of the investment is required to be estimated and any excess of the carrying value over the estimated fair value is recognized as an impairment loss.

 

Equity investments accounted for under the equity method of accounting are assessed for impairment when events or circumstances suggest that any loss in value of the investment may be other than temporary. A loss in value of an investment is other than temporary when evidence of a loss in value indicates the absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

 

In the absence of observable data, the Company estimates the fair values of these investments using a market approach derived from applying market multiples of comparable public companies to the financial results of each investment. The valuation methodology and the significant assumptions used by management in estimating the fair values of each investment involve a high degree of judgment and may involve the use of third-party valuation specialists.

 
Deferred Charges, Policy [Policy Text Block]

Deferred Financing Costs

 

Deferred financing costs are amortized over the terms of the related debt obligations using the straight-line method. Unamortized amounts are expensed upon extinguishment of the related borrowings. Deferred financing costs are presented as a direct deduction from the carrying amount of that debt liability except for deferred financing costs relating to our revolving credit facility, which are presented as an asset.

 
Income Tax, Policy [Policy Text Block]

Income Taxes

 

The Company records the effects of income taxes under the liability method in which deferred income tax assets and liabilities are recognized based on the difference between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse. The Company assesses its ability to realize future benefits of deferred tax assets by determining if they meet the “more likely than not” criteria in ASC 740, Income Taxes. If the Company determines that future benefits do not meet the “more likely than not” criteria, a valuation allowance is recorded.

 
Advertising Cost [Policy Text Block]

Advertising and Promotion

 

Advertising and promotion costs, including point of sale materials, are expensed as incurred and amounted to $12.0 million, $7.6 million, and $6.2 million for the years ended December 31, 2024, 2023, and 2022, respectively.

 
Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

 

The Company measures stock-based compensation costs related to its stock options on the fair value-based method under the provisions of ASC 718, Compensation – Stock Compensation. The fair value-based method requires compensation cost for stock options to be recognized over the requisite service period based on the fair value of stock options granted. The Company determined the fair value of these awards using the Black-Scholes option pricing model.

 

The Company grants performance-based restricted stock units (“PRSU”) subject to both performance-based and service-based vesting conditions. The fair value of each PRSU is the Company’s stock price on the date of grant. For purposes of recognizing compensation expense as services are rendered in accordance with ASC 718, the Company assumes all employees involved in the PRSU grant will provide service through the end of the performance period. Stock compensation expense is recorded based on the probability of achievement of the performance conditions specified in the PRSU grant.

 

The Company grants restricted stock units (“RSU”) subject to service-based vesting conditions. The fair value of each RSU is the Company’s stock price on the date of grant. The Company recognizes compensation expense as services are rendered in accordance with ASC 718. Stock compensation expense is recorded over the service period in the RSU grant.

 
Risks and Uncertainties [Policy Text Block]

Risks and Uncertainties

 

Manufacturers and sellers of tobacco products are subject to regulation at the federal, state, and local levels. Such regulations include, among others, labeling requirements, limitations on advertising, and prohibition of sales to minors. The tobacco industry is likely to continue to be heavily regulated. There can be no assurance as to the ultimate content, timing, or effect of any regulation of tobacco products by any federal, state, or local legislative or regulatory body, nor can there be any assurance that any such legislation or regulation would not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. In a number of states targeted flavor bans have been proposed or enacted legislatively or by the administrative process. Depending on the number and location of such bans, that legislation or regulation could have a material adverse effect on the Company’s financial position, results of operations or cash flows. The U.S. Food and Drug Administration (“FDA”) continues to consider various restrictive regulations around our products, including targeted flavor bans; however, the details, timing, and ultimate implementation of such measures remain unclear.

 

The tobacco industry has experienced, and is experiencing, significant product liability litigation. Most tobacco liability lawsuits have been brought against manufacturers and sellers of cigarettes for injuries allegedly caused by smoking or exposure to smoke. However, several lawsuits have been brought against manufacturers and sellers of smokeless products for injuries to health allegedly caused by use of smokeless products. Typically, such claims assert that use of smokeless products is addictive and causes oral cancer. There can be no assurance the Company will not sustain losses in connection with such lawsuits and that such losses will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

 
Master Settlement Agreement MSA [Policy Text Block]

Master Settlement Agreement (MSA) 

 

Forty-six states, certain U.S. territories, and the District of Columbia are parties to the Master Settlement Agreement (“MSA”) and the Smokeless Tobacco Master Settlement Agreement (“STMSA”). To the Company’s knowledge, signatories to the MSA include 49 cigarette manufacturers and/or distributors. The only signatory to the STMSA is US Smokeless Tobacco Company. In the Company’s opinion, the fundamental basis for each agreement is the states’ consents to withdraw all claims for monetary, equitable, and injunctive relief against certain tobacco products manufacturers and others and, in return, the signatories have agreed to certain marketing restrictions and regulations as well as certain payment obligations.

 

Pursuant to the MSA and subsequent states’ statutes, a “cigarette manufacturer” (which is defined to also include make-your-own ("MYO") cigarette tobacco) has the option of either becoming a signatory to the MSA or opening, funding, and maintaining an escrow account, with sub-accounts on behalf of each settling state. The STMSA has no similar provisions. The MSA escrow accounts are governed by states’ statutes that expressly give the manufacturers the option of opening, funding, and maintaining an escrow account in lieu of becoming a signatory to the MSA. The statutes require companies who are not signatories to the MSA to deposit, on an annual basis, into qualified banks, escrow funds based on the number of cigarettes or cigarette equivalents, i.e., the pounds of MYO tobacco, sold. The purpose of these statutes is expressly stated to be to eliminate the cost disadvantage the settling manufacturers have as a result of entering into the MSA. Such companies are entitled to direct the investment of the escrowed funds and withdraw any appreciation, but cannot withdraw the principal for twenty-five years from the year of each annual deposit, except to withdraw funds deposited pursuant to an individual state’s escrow statute to pay a final judgment to that state’s plaintiffs in the event of such a final judgment against the company. Either option – becoming an MSA signatory or establishing an escrow account – is permissible.

 

The Company chose to open and fund an MSA escrow account as its means of compliance. It is management’s opinion, due to the possibility of future federal or state regulations, though none have to date been enacted, that entering into one or both of the settlement agreements or establishing and maintaining an escrow account would not necessarily prevent future regulations from having a material adverse effect on the results of operations, financial position, and cash flows of the Company.

 

Various states have enacted or proposed complementary legislation intended to curb the activity of certain manufacturers and importers of cigarettes that are selling into MSA states without signing the MSA or who have failed to properly establish and fund a qualifying escrow account. To the best of the Company’s knowledge, no such statute has been enacted which could inadvertently and negatively impact the Company, which has been, and is currently, fully compliant with all applicable laws, regulations, and statutes. However, there can be no assurance that the enactment of any such complementary legislation in the future will not have a material adverse effect on the results of operations, financial position, or cash flows of the Company.

 

Pursuant to the MSA escrow account statutes, in order to be compliant with the MSA escrow requirements, companies selling products covered by the MSA are required to deposit such funds for each calendar year into a qualifying escrow account by April 15 of the following year. At December 31, 2024 and 2023, the Company had on deposit approximately $32.1 million, the fair value of which was approximately $28.7 million. During 2024, no monies were deposited into this qualifying escrow account. The investment vehicles available to the Company are specified in the state escrow agreements and are limited to low-risk government securities.

 

The Company discontinued its generic category of MYO in 2019 and its Zig-Zag branded MYO cigarette smoking tobacco in 2017. Thus, pending a change in MSA legislation, the Company has no remaining product lines covered by the MSA and will not be required to make future escrow deposits.

 

The Company has chosen to invest a portion of the MSA escrow, from time to time, in U.S. Government securities including Treasury inflation-protected securities, Treasury notes and Treasury bonds. These investments are classified as available-for-sale and carried at fair value. Realized losses are prohibited under the MSA; thus, any investment with an unrealized loss position will be held until the value is recovered, or until maturity.

 

Fair values for the U.S. Governmental agency obligations are Level 2 in the fair value hierarchy. The following tables show cost and estimated fair value of the assets held in the MSA account, respectively, as well as the maturities of the U.S. Governmental agency obligations held in such account for the periods indicated.

 

  

As of December 31, 2024

  

As of December 31, 2023

 
      

Gross

  

Gross

  

Estimated

      

Gross

  

Gross

  

Estimated

 
      

Unrealized

  

Unrealized

  

Fair

      

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

  

Cost

  

Gains

  

Losses

  

Value

 

Cash and cash equivalents

 $1,961  $-  $-  $1,961  $1,929  $-  $-  $1,929 

U.S. Governmental agency obligations (unrealized position < 12 months)

  4,168   11   (48)  4,131   -   -   -   - 

U.S. Governmental agency obligations (unrealized position > 12 months)

  25,944   95   (3,455)  22,584   30,144   -   (3,389)  26,755 

Total

 $32,073  $106  $(3,503) $28,676  $32,073  $-  $(3,389) $28,684 

 

  

As of

 
  

December 31, 2024

 

Less than one year

 $250 

One to five years

  14,771 

Five to ten years

  13,136 

Greater than ten years

  1,955 

Total

 $30,112 

 

The following shows the amount of deposits by sales year for the MSA escrow account:

 

  

Deposits as of December 31,

 

Sales Year

 

2024

  

2023

 

1999

 $211  $211 

2000

  1,017   1,017 

2001

  1,673   1,673 

2002

  2,271   2,271 

2003

  4,249   4,249 

2004

  3,714   3,714 

2005

  4,553   4,553 

2006

  3,847   3,847 

2007

  4,167   4,167 

2008

  3,364   3,364 

2009

  1,619   1,619 

2010

  406   406 

2011

  193   193 

2012

  199   199 

2013

  173   173 

2014

  143   143 

2015

  101   101 

2016

  91   91 

2017

  82   82 

Total

 $32,073  $32,073 

 

 
Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk: At December 31, 2024 and 2023, the Company had bank deposits, including MSA escrow accounts, in excess of federally insured limits of approximately $47.4 million and $119.0 million, respectively. During 2024 and 2023, the Company invested a portion of the MSA escrow accounts in U.S. Government securities including TIPS, Treasury notes, and Treasury bonds.

 

The Company sells its products to distributors, retail establishments, and consumers throughout the U.S. and also sells Zig-Zag® premium cigarette papers in Canada and some smaller quantities in other countries. For 2024, the Company had one customer that accounted for 10.2% of net sales. There were no customers that accounted for more than 10% of net sales for 2023 or 2022. The Company performs periodic credit evaluations of its customers and generally does not require collateral on trade receivables. Historically, the Company has not experienced significant credit losses.

 
Accounts Receivable [Policy Text Block]

Accounts Receivable

 

Accounts receivable are recognized at their net realizable value. All accounts receivable are trade related, recorded at the invoiced amount, and do not bear interest. The Company maintains allowances for credit losses for estimated uncollectible invoices resulting from a customer’s inability to pay (bankruptcy, out of business, etc., i.e. “bad debt” which results in write-offs). The activity of allowance for credit losses for the years ended December 31, 2024, 2023 and 2022 is as follows:

 

  

2024

  

2023

  

2022

 

Balance at beginning of period

 $78  $40  $29 

Additions to allowance account during period

  23   38   24 

Deductions of allowance account during period

  (35)  -   (13)

Balance at end of period

 $66  $78  $40 

 
New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

 

Recently adopted

 

In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances reportable segment disclosures by requiring disclosure of significant reportable segment expenses and other items regularly provided to the Chief Operating Decision Maker (“CODM”) and included within measures of a segment’s profit or loss. Additional requirements include the title and position of the CODM and an explanation of how the CODM uses the reported measure of a segment’s profit or loss to assess performance and allocate resources, and the amount and composition of other segment items necessary to reconcile segment revenue, significant expenses, and the reported measure of profit or loss. The Company adopted this guidance retrospectively beginning with its fiscal 2024 annual financial statements. See Note 21, "Segment Information" for the additional disclosures required by this guidance. 

 

Issued but not yet adopted

 

In December 2023, the FASB issued guidance which enhances income tax disclosures to require reporting entities to disclose annual income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes and to provide additional disaggregated information for individual jurisdictions under certain conditions. The guidance also requires disclosure of amounts and percentages in the annual rate reconciliation table, rather than amounts or percentages, and will eliminate certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. This guidance will be effective for the Company beginning with its fiscal 2025 annual financial statements, with early adoption permitted. The guidance may be applied prospectively, while retrospective application is permitted. The Company is currently assessing the impact of this guidance and expects its incremental disclosures will likely be provided on a prospective basis upon adoption.

 

In November 2024, the FASB issued guidance requiring reporting entities to disclose in the notes to the financial statements, specified information about certain categories of expenses including purchases of inventory, employee compensation, depreciation and amortization for each caption on the income statement where such expenses are included. This guidance will be effective for the Company beginning with its fiscal 2027 annual financial statements and interim periods thereafter. Early adoption is permitted, in addition to either prospective or retrospective application. The Company is currently assessing the impact and extent to which this guidance will affect its disclosures. 
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block]
  

As of December 31, 2024

  

As of December 31, 2023

 
      

Gross

  

Gross

  

Estimated

      

Gross

  

Gross

  

Estimated

 
      

Unrealized

  

Unrealized

  

Fair

      

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

  

Cost

  

Gains

  

Losses

  

Value

 

Cash and cash equivalents

 $1,961  $-  $-  $1,961  $1,929  $-  $-  $1,929 

U.S. Governmental agency obligations (unrealized position < 12 months)

  4,168   11   (48)  4,131   -   -   -   - 

U.S. Governmental agency obligations (unrealized position > 12 months)

  25,944   95   (3,455)  22,584   30,144   -   (3,389)  26,755 

Total

 $32,073  $106  $(3,503) $28,676  $32,073  $-  $(3,389) $28,684 
Investments Classified by Contractual Maturity Date [Table Text Block]
  

As of

 
  

December 31, 2024

 

Less than one year

 $250 

One to five years

  14,771 

Five to ten years

  13,136 

Greater than ten years

  1,955 

Total

 $30,112 
Schedule of Escrow Deposits Sales by Year [Table Text Block]
  

Deposits as of December 31,

 

Sales Year

 

2024

  

2023

 

1999

 $211  $211 

2000

  1,017   1,017 

2001

  1,673   1,673 

2002

  2,271   2,271 

2003

  4,249   4,249 

2004

  3,714   3,714 

2005

  4,553   4,553 

2006

  3,847   3,847 

2007

  4,167   4,167 

2008

  3,364   3,364 

2009

  1,619   1,619 

2010

  406   406 

2011

  193   193 

2012

  199   199 

2013

  173   173 

2014

  143   143 

2015

  101   101 

2016

  91   91 

2017

  82   82 

Total

 $32,073  $32,073 
Accounts Receivable, Allowance for Credit Loss [Table Text Block]
  

2024

  

2023

  

2022

 

Balance at beginning of period

 $78  $40  $29 

Additions to allowance account during period

  23   38   24 

Deductions of allowance account during period

  (35)  -   (13)

Balance at end of period

 $66  $78  $40 
v3.25.0.1
Note 3 - Assets Held for Sale and Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Disposal Groups, Including Discontinued Operations [Table Text Block]
  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 

Net sales

 $59,051  $80,329  $93,784 

Cost of sales

  46,041   60,030   66,076 

Gross profit

  13,010   20,299   27,708 

Selling, general, and administrative expenses

  12,246   18,442   24,287 

Loss on assets held for sale fair value adjustment

  8,801   -   - 

Depreciation

  236   341   529 

Amortization of other intangible assets

  1,843   1,899   1,386 

Goodwill and intangible impairment loss

  -   -   27,566 

Operating loss from discontinued operations

  (10,116)  (383)  (26,060)

Interest income

  (146)  -   - 

Loss from discontinued operations before income taxes

  (9,970)  (383)  (26,060)

Income tax benefit

  (2,453)  (98)  (6,131)

Loss from discontinued operations

 $(7,517) $(285) $(19,929)
  

December 31,

 
  

2024

  

2023

 

Current assets

        

Cash

 $2,783  $1,161 

Inventories, net

  5,813   7,262 

Other current assets

  2,874   3,844 

Current assets held for sale

  11,470   12,267 
         

Noncurrent assets

        

Property, plant, and equipment, net

  -   158 

Right of use assets

  51   121 

Other intangible assets, net

  12,609   14,452 

Allowance to adjust held for sale assets to fair value

  (8,801)  - 

Noncurrent assets held for sale

  3,859   14,731 

Total assets held for sale

 $15,329  $26,998 
         

Current liabilities

        

Accounts payable

 $532  $613 

Accrued liabilities

  1,517   1,596 

Current liabilities held for sale

  2,049   2,209 
         

Noncurrent liabilities

        

Lease liabilities

  -   52 

Noncurrent liabilities held for sale

  -   52 

Total liabilities held for sale

 $2,049  $2,261 
v3.25.0.1
Note 7 - Inventories (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Raw materials and work in process

 $7,699  $5,201 

Leaf tobacco

  35,622   34,894 

Finished goods - Zig-Zag products

  38,042   41,783 

Finished goods - Stoker’s products

  12,966   8,109 

Other

  1,924   1,711 

Inventories

 $96,253  $91,698 
Inventory Valuation Allowance [Table Text Block]
  

2024

  

2023

  

2022

 

Balance at beginning of period

 $(16,927) $(772) $(4,122)

Charged to cost and expense

  (648)  (17,370)  (772)

Deductions for inventory disposed

  -   1,215   4,122 

Balance at end of period

 $(17,575) $(16,927) $(772)
v3.25.0.1
Note 8 - Other Current Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Other Current Assets [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Inventory deposits

 $5,981  $3,612 

Insurance deposit

  -   3,000 

Prepaid taxes

  3,586   153 

Settlement receivable

  -   4,000 

Insurance recovery receivable

  15,181   15,181 

Other

  9,952   10,991 

Total

 $34,700  $36,937 
v3.25.0.1
Note 9 - Property, Plant, and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Property, Plant and Equipment [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Land

 $22  $22 

Buildings and improvements

  4,216   3,956 

Leasehold improvements

  7,983   5,440 

Machinery and equipment

  31,207   29,645 

Furniture and fixtures

  4,723   5,765 

Gross property, plant and equipment

  48,151   44,828 

Accumulated depreciation

  (21,814)  (19,686)

Property, plant and equipment, net

 $26,337  $25,142 
v3.25.0.1
Note 10 - Deferred Financing Costs, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Deferred financing costs, net of accumulated amortization of $747 and $104, respectively

 $1,823  $2,450 
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Goodwill [Table Text Block]
  

Zig-Zag

  

Stoker’s

  

Total

 

Balance as of December 31, 2022

 $103,663  $32,590  $136,253 
             

Cumulative translation adjustment

  (3)  -   (3)

Balance as of December 31, 2023

 $103,660  $32,590  $136,250 
             

Cumulative translation adjustment

  (318)  -   (318)

Balance as of December 31, 2024

 $103,342  $32,590  $135,932 
Schedule of Indefinite-Lived Intangible Assets [Table Text Block]
  

December 31, 2024

  

December 31, 2023

 
  

Zig-Zag

  

Stoker’s

  

Total

  

Zig-Zag

  

Stoker’s

  

Total

 

Indefinite-lived intangible assets:

                        

Trade names

 $-  $8,500  $8,500  $-  $8,500  $8,500 

Formulas

  42,245   53   42,298   42,245   53   42,298 

Total

 $42,245  $8,553  $50,798  $42,245  $8,553  $50,798 
Schedule of Finite-Lived Intangible Assets [Table Text Block]
  

Zig-Zag

  

Stoker’s

 
  

December 31,

  

December 31,

  

December 31,

  

December 31,

 
  

2024

  

2023

  

2024

  

2023

 
  

Gross

  

Accumulated

  

Gross

  

Accumulated

  

Gross

  

Accumulated

  

Gross

  

Accumulated

 
  

Carrying

  

Amortization

  

Carrying

  

Amortization

  

Carrying

  

Amortization

  

Carrying

  

Amortization

 

Amortized intangible assets:

                                

Trade names (useful life of 15 years)

 $437  $45  $449  $10  $2,372  $791  $2,372  $633 

Formulas (useful life of 15 years)

  9,972   1,330   9,972   665   -   -   -   - 

Master distribution agreement (useful life of 15 years)

  5,489   1,648   5,489   1,281   -   -   -   - 

Total

 $15,898  $3,023  $15,910  $1,956  $2,372  $791  $2,372  $633 
v3.25.0.1
Note 12 - Other Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Other Assets, Noncurrent [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Non-marketable equity investments

 $1,231  $2,405 

Debt security investment

  6,276   6,750 

Capitalized software

  7,409   5,923 

Captive investments - available-for-sale marketable securities

  5,487   - 

Other

  259   88 

Total

 $20,662  $15,166 
Schedule of Available-for-sale Debt Securities [Table Text Block]
  

As of December 31, 2024

 
  

Amortized Cost

  

Gross Unrealized Gains (Losses)

  

Estimated Fair Value

 

Stocks

 $1,517  $9   1,526 

Exchange traded funds

  1,189   (5)  1,184 

Corporate Bonds

  2,383   50   2,433 

Real estate investment trusts

  343   1   344 

Total

 $5,432  $55  $5,487 
Schedule of Maturities of Available-for-Sale Debt Securities [Table Text Block]
  

As of

 
  

December 31, 2024

 

Due within one year

 $2,242 

Due in one to five years

  191 

Stocks, real estate investment trusts and exchange traded funds

  3,054 

Total investments at fair value

 $5,487 
v3.25.0.1
Note 13 - Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Accrued Liabilities [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Accrued payroll and related items

 $9,564  $6,599 

Customer returns and allowances

  5,160   5,064 

Taxes payable

  358   3,413 

Lease liabilities

  3,121   2,608 

Accrued interest

  5,473   6,682 

Other

  7,420   7,686 

Total

 $31,096  $32,052 
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Long-Term Debt Instruments [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

2026 Notes

 $250,000  $250,000 

Convertible Senior Notes

  -   118,541 

Gross notes payable and long-term debt

  250,000   368,541 

Less deferred financing costs

  (1,396)  (3,183)

Less current maturities

  -   (58,294)

Notes payable and long-term debt

 $248,604  $307,064 

 

The components of interest expense, net consists of the following:
Interest Income and Interest Expense Disclosure [Table Text Block]
  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 

Interest expense

 $18,526  $21,028  $21,920 

Interest income

  (4,543)  (6,383)  (2,396)

Interest expense, net

 $13,983  $14,645  $19,524 
Schedule of Historical Excess Availability [Table Text Block]
   

Applicable Margin

  

Applicable Margin

 

Level

Historical Excess Availability

 

for SOFR Loans

  

or Base Rate Loans

 

I

Greater than or equal to 66.66%

  1.75%  0.75%

II

Less than 66.66%, but greater than or equal to 33.33%

  2.00%  1.00%

III

Less than 33.33%

  2.25%  1.25%
v3.25.0.1
Note 15 - Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
  

2024

  

2023

  

2022

 
  

Current

  

Deferred

  

Total

  

Current

  

Deferred

  

Total

  

Current

  

Deferred

  

Total

 

Federal

 $14,005  $240  $14,245  $13,404  $4,091  $17,495  $13,505  $(4,713) $8,792 

State and Local

  2,405   279   2,684   3,587   2,166   5,753   3,897   (1,291)  2,606 

Foreign

  -   -   -   (16)  767   751   84   (502)  (418)

Total

 $16,410  $519  $16,929  $16,975  $7,024  $23,999  $17,486  $(6,506) $10,980 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 
  

Assets

  

Liabilities

  

Assets

  

Liabilities

 

Inventory

 $4,802  $-  $5,310  $- 

Property, plant, and equipment

  -   3,433   -   3,120 

Goodwill and other intangible assets

  -   3,549   -   3,182 

Foreign NOL carryforward

  1,505   -   1,495   - 

State NOL carryforward

  2,339   -   2,398   - 

Unrealized loss on investments

  3,846   -   7,203   - 

Leases

  3,278   3,004   3,278   2,978 

Original issue discount

  -   -   426   - 

Stock compensation

  4,306   -   4,879   - 

Insurance receivable

  -   3,728   -   3,764 

Capital loss carryforward

  4,108   -   -   - 

Other

  5,117   2,006   4,536   3,567 

Gross deferred income taxes

  29,301   15,720   29,525   16,611 

Valuation allowance

  (12,586)  -   (11,446)  - 

Net deferred income taxes

 $16,715  $15,720  $18,079  $16,611 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
  

2024

  

2023

  

2022

 

Federal statutory rate

  21.0%  21.0%  21.0%

Foreign rate differential

  (0.1)%  (0.1)%  (0.2)%

State taxes

  3.4%  4.3%  5.0%

Permanent differences

  (0.6)%  (0.1)%  - 

Other

  0.6%  -   0.2%

Valuation allowance

  1.8%  13.6%  0.1%

Effective income tax rate

  26.1%  38.7%  26.1%
v3.25.0.1
Note 17 - Lease Commitments (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Lessee, Operating Leases [Text Block]
  

For the year ended December 31,

 
  

2024

  

2023

  

2022

 

Operating lease cost

            

Cost of sales

 $502  $507  $940 

Selling, general and administrative

  1,760   1,756   1,388 

Variable lease cost

  1,091   1,161   699 

Short-term lease cost

  -   24   37 

Total

 $3,353  $3,448  $3,064 
Lease, Cost [Table Text Block]
  

For the year ended December 31,

 
  

2024

  

2023

  

2022

 

Financing lease cost

            

Selling, general and administrative

 $860  $1,164  $1,138 

Interest expense, net

  173   -   - 

Variable lease cost

  72  $-  $- 

Total

 $1,105  $1,164  $1,138 
Lessee, Operating Lease and Finance Lease Information [Table Text Block]
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Assets:

        

Right of use assets - Operating

 $8,338  $8,829 

Right of use assets - Financing

  3,272   2,530 

Total lease assets

 $11,610  $11,359 
         

Liabilities:

        

Current lease liabilities - Operating (1)

 $2,011  $1,921 

Current lease liabilities - Financing (1)

  1,110   687 

Long-term lease liabilities - Operating

  7,400   8,322 

Long-term lease liabilities - Financing

  2,149   1,576 

Total lease liabilities

 $12,670  $12,506 
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Right of use assets obtained in exchange for lease obligations:

        

Operating leases

 $1,209  $143 

Finance leases

 $1,842  $2,169 
  

As of December 31,

 
  

2024

  

2023

 

Weighted-average remaining lease term - operating leases (years)

  4.8   5.7 

Weighted-average discount rate - operating leases

  5.65%  5.17%

Weighted-average remaining lease term - financing leases (years)

  3.1   3.4 

Weighted-average discount rate - financing leases

  6.64%  6.48%
Lessee, Operating and Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Table Text Block]

Year

 

Operating

  

Finance

 

2025

 $2,487  $1,293 

2026

  2,299   1,176 

2027

  2,449   833 

2028

  1,158   302 

2029

  1,159   - 

Years thereafter

  1,379   - 

Total lease payments

  10,931   3,604 

Less: Imputed interest

  1,520   345 

Present value of lease liabilities

 $9,411  $3,259 
v3.25.0.1
Note 18 - Share Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Share-Based Payment Arrangement, Option, Activity [Table Text Block]
      

Weighted

  

Weighted

 
  

Stock

  

Average

  

Average

 
  

Option

  

Exercise

  

Grant Date

 
  

Shares

  

Price

  

Fair Value

 

Outstanding, December 31, 2022

  683,214  $29.74  $9.24 
             

Granted

  77,519   20.71   6.45 

Exercised

  (33,851)  13.30   4.24 

Forfeited

  (69,931)  27.51   9.11 

Outstanding, December 31, 2023

  656,951  $29.79  $9.18 
             

Granted

  54,289   27.19   9.21 

Exercised

  (132,572)  21.36   6.97 

Forfeited

  (42,878)  38.11   11.94 

Outstanding, December 31, 2024

  535,790  $30.69  $9.51 
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
  

February 10,

  

May 17,

  

March 7,

  

March 20,

  

March 18,

  

February 18,

 
  

2017

  

2017

  

2018

  

2019

  

2020

  

2021

 

Number of options granted

  40,000   93,819   98,100   155,780   155,000   100,000 

Options outstanding at December 31, 2024

  20,000   30,969   49,267   100,147   62,207   68,900 

Number exercisable at December 31, 2024

  20,000   30,969   49,267   100,147   62,207   68,900 

Exercise price

 $13.00  $15.41  $21.21  $47.58  $14.85  $51.75 

Remaining lives

  2.12   2.38   3.19   4.22   5.22   6.14 

Risk free interest rate

  1.89%  1.76%  2.65%  2.34%  0.79%  0.56%

Expected volatility

  27.44%  26.92%  28.76%  30.95%  35.72%  28.69%

Expected life

  6.000   6.000   6.000   6.000   6.000   6.000 

Dividend yield

  -   -   0.83%  0.42%  1.49%  0.55%

Fair value at grant date

 $3.98  $4.60  $6.37  $15.63  $4.41  $13.77 
  

May 17,

  

March 14,

  

April 29,

  

May 12,

  

March 11,

 
  

2021

  

2022

  

2022

  

2023

  

2024

 

Number of options granted

  7,500   100,000   14,827   77,519   54,289 

Options outstanding at December 31, 2024

  7,500   58,719   6,273   77,519   54,289 

Number exercisable at December 31, 2024

  7,500   38,744   4,203   77,519   54,289 

Exercise price

 $45.05  $30.46  $31.39  $20.71  $27.19 

Remaining lives

  6.38   7.21   7.33   8.37   9.20 

Risk free interest rate

  0.84%  2.10%  2.92%  3.41%  4.06%

Expected volatility

  31.50%  35.33%  35.33%  34.51%  35.09%

Expected life

  6.000   6.000   6.000   5.186   5.186 

Dividend yield

  0.63%  1.01%  0.98%  1.61%  1.26%

Fair value at grant date

 $13.23  $10.23  $11.07  $6.45  $9.21 
Share-Based Payment Arrangement, Performance Shares, Outstanding Activity [Table Text Block]
  

March 18,

  

February 18,

  

March 14,

  

May 4,

  

March 1,

  

April 1,

 
  

2020

  

2021

  

2022

  

2023

  

2024

  

2024

 

Number of PRSUs granted

  94,000   100,000   49,996   133,578   111,321   8,242 

PRSUs outstanding at December 31, 2024

  70,910   69,190   33,049   93,313   97,514   8,242 

Fair value as of grant date

 $14.85  $51.75  $30.46  $22.25  $26.52  $29.12 

Remaining lives

  -   1.00   2.00   1.00   2.00   2.00 
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]
  

March 14,

  

March 14,

  

April 29,

  

May 5,

  

March 1,

  

April 1,

  

May 8,

 
  

2022

  

2022

  

2022

  

2023

  

2024

  

2024

  

2024

 

Number of RSUs granted

  50,004   28,726   4,522   130,873   105,257   5,495   16,905 

RSUs outstanding at December 31, 2024

  32,091   9,481   1,913   69,114   87,008   5,495   16,905 

Fair value as of grant date

 $30.46  $30.46  $31.39  $22.25  $26.52  $29.12  $33.13 

Remaining lives

  2.00   -   2.00   1.25   2.25   2.25   0.25 
v3.25.0.1
Note 20 - Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

December 31, 2024

  

December 31, 2023

  

December 31, 2022

 
  

Income (Loss)

  

Shares

  

Per Share

  

Income (Loss)

  

Shares

  

Per Share

  

Income (Loss)

  

Shares

  

Per Share

 

Basic EPS:

                                    

Numerator

                                    

Income from continuing operations less non-controlling interest

 $47,326      $2.67  $38,747      $2.20  $31,570      $1.76 

Loss from discontinued operations, net of tax

  (7,517)      (0.43)  (285)      (0.01)  (19,929)      (1.11)

Net income attributable to Turning Point Brands, Inc.

 $39,809      $2.24  $38,462      $2.19  $11,641      $0.65 
                                     

Denominator

                                    

Weighted average

      17,734,239           17,578,270           17,899,794     
                                     

Diluted EPS:

                                    

Numerator

                                    

Income from continuing operations less non-controlling interest

 $47,326          $38,747          $31,570         

Interest expense related to Convertible Senior Notes, net of tax

  1,597           2,667           -         

Diluted income from continuing operations

 $48,923      $2.53  $41,414      $2.02  $31,570      $1.75 

Loss from discontinued operations, net of tax

  (7,517)      (0.39)  (285)      (0.01)  (19,929)      (1.11)

Diluted net income

 $41,406      $2.14  $41,129      $2.01  $11,641      $0.64 
                                     

Denominator

                                    

Basic weighted average

      17,734,239           17,578,270           17,899,794     

Convertible Senior Notes (1)

      1,192,597           2,533,201           -     

Stock options and restricted stock units (2)

      435,970           355,935           155,221     
       19,362,806           20,467,406           18,055,015     
v3.25.0.1
Note 21 - Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 
             

Net sales

            

Zig-Zag products

 $192,394  $180,455  $190,403 

Stoker’s products

  168,266   144,609   130,826 

Total

 $360,660  $325,064  $321,229 
             

Cost of sales

            

Zig-Zag products

 $85,809  $79,400  $83,827 

Stoker’s products

  73,286   62,722   59,572 

Total

 $159,095  $142,122  $143,399 
             

Gross profit

            

Zig-Zag products

 $106,585  $101,055  $106,576 

Stoker’s products

  94,980   81,887   71,254 

Total

 $201,565  $182,942  $177,830 
             

Other segment items (1)

            

Zig-Zag products

 $39,888  $32,775  $33,234 

Stoker’s products

  26,708   19,679   17,923 

Total

 $66,596  $52,454  $51,157 
             

Operating income (loss)

            

Zig-Zag products

 $66,697  $68,280  $73,342 

Stoker’s products

  68,272   62,208   53,331 

Total segment operating income

  134,969   130,488   126,673 

Corporate unallocated (2)(3)

  (54,137)  (47,528)  (52,665)

Total

 $80,832  $82,960  $74,008 
             

Interest expense, net

  13,983   14,645   19,524 

Investment loss

  1,893   11,914   13,303 

Other income

  -   (4,000)  - 

Gain on extinguishment of debt

  -   (1,664)  (885)
             

Income from continuing operations before income taxes

 $64,956  $62,065  $42,066 
             

Capital expenditures

            

Zig-Zag products

 $2,342  $1,112  $4,641 

Stoker’s products

  2,271   4,595   3,044 

Total

 $4,613  $5,707  $7,685 
             

Depreciation and amortization

            

Zig-Zag products

 $1,469  $1,077  $412 

Stoker’s products

  4,193   3,041   2,972 

Total

 $5,662  $4,118  $3,384 
  

December 31,

  

December 31,

 
  

2024

  

2023

 

Assets

        

Zig-Zag products

 $224,052  $177,135 

Stoker’s products

  197,038   175,013 

Assets held for sale

  15,329   26,998 

Corporate unallocated (1)

  56,934   190,223 

Total

 $493,353  $569,369 
Revenue from External Customers by Geographic Areas [Table Text Block]
  

For the years ended December 31,

 
  

2024

  

2023

  

2022

 

Domestic

 $330,690  $294,296  $288,874 

Foreign

  29,970   30,768   32,355 

Total

 $360,660  $325,064  $321,229 
v3.25.0.1
Note 23 - Selected Quarterly Financial Information (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2024
Notes Tables  
Quarterly Financial Information [Table Text Block]

(Per-share amounts in dollars)

 First Quarter  Second Quarter  Third Quarter  Fourth Quarter 
  

2024

  

2023

  

2024

  

2023

  

2024

  

2023

  

2024

  

2023

 

Net sales

 $83,064  $75,549  $93,225  $82,778  $90,704  $83,670  $93,667  $83,067 

Gross profit

 $48,354  $41,855  $50,398  $46,390  $50,395  $47,317  $52,418  $47,380 

Operating income

 $19,270  $17,581  $22,872  $20,085  $20,805  $20,697  $17,885  $24,597 

Income from continuing operations

 $12,181  $7,147  $12,961  $9,363  $12,525  $11,211  $10,360  $10,345 

(Loss) Income from discontinued operations, net of tax

 $(2) $195  $(41) $345  $(165) $(345) $(7,309) $(480)

Net income

 $12,179  $7,342  $12,920  $9,708  $12,360  $10,866  $3,051  $9,865 

Net income (loss) attributable to non-controlling interests

 $169  $(255) $(87) $(217) $(16) $35  $635  $(244)

Net Income attributable to Turning Point Brands, Inc.

 $12,010  $7,597  $13,007  $9,925  $12,376  $10,831  $2,416  $10,109 
                                 

Net Earnings per share

                                

Basic

                                

Continuing operations

 $0.68  $0.42  $0.74  $0.54  $0.71  $0.64  $0.55  $0.60 

Discontinued operations

  (0.00)  0.01   (0.00)  0.02   (0.01)  (0.02)  (0.41)  (0.03)

Basic earnings per share

 $0.68  $0.43  $0.74  $0.56  $0.70  $0.62  $0.14  $0.57 
                                 

Diluted

                                

Continuing operations

 $0.63  $0.40  $0.68  $0.51  $0.69  $0.59  $0.53  $0.56 

Discontinued operations

  (0.00)  0.01   (0.00)  0.02   (0.01)  (0.01)  (0.40)  (0.03)

Diluted earnings per share

 $0.63  $0.41  $0.68  $0.53  $0.68  $0.58  $0.13  $0.53 

 

The amounts presented in the table above are computed independently for each quarter. As a result, their sum may not equal the total year amounts.

 
v3.25.0.1
Note 1 - Organizations and Basis of Presentation (Details Textual)
 12 Months Ended
Dec. 31, 2024
Jan. 25, 2025
Jan. 02, 2025
Number of Stores 220,000    
Number of Operating Segments 2    
South Beach Brands LLC [Member]      
Percentage of Subsidiary Contributed by Parent to Joint Venture 100.00%    
Subsequent Event [Member] | General Wireless Operations [Member]      
Equity Method Investment, Ownership Percentage     49.00%
Subsequent Event [Member] | South Beach Brands LLC [Member]      
Percentage of Subsidiary Contributed by Parent to Joint Venture   100.00% 100.00%
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies (Details Textual)
$ in Thousands
 1 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Shipping Costs   $ 17,900 $ 16,000 $ 14,000
Research and Development Expense   1,300 600 600
Marketing and Advertising Expense   $ 12,000 7,600 $ 6,200
Number of States That are Parties to Settlement Agreements   46    
Number of Cigarette Manufacturers and or Distributors That Signed Agreement   49    
Escrow Deposits, Term for Restricted Withdrawal of Principal Balance From Account (Year)   25 years    
Deposit Assets   $ 32,100    
Deposit Assets, Fair Value Disclosure     28,700  
Escrow Deposits, Deposit Made for Sales in Prior Fiscal Year   0    
Cash, Uninsured Amount   $ 47,400 $ 119,000  
Customer Concentration Risk [Member] | Revenue Benchmark [Member]        
Concentration Risk, Number of Significant Customers   1 0 0
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member]        
Concentration Risk, Percentage   10.20%    
Maximum [Member]        
Percentage of Anticipated Purchases of Inventory That May Be Hedged   100.00%    
Derivative, Term of Contract (Month)   12 months    
Percentage of Non Inventory Purchases That May Be Hedged   100.00%    
Finite-Lived Intangible Asset, Useful Life (Year)   15 years    
Maximum [Member] | Machinery Equipment and Furniture [Member]        
Property, Plant and Equipment, Useful Life (Year)   7 years    
Maximum [Member] | Leasehold Improvements [Member]        
Property, Plant and Equipment, Useful Life (Year)   15 years    
Maximum [Member] | Building and Building Improvements [Member]        
Property, Plant and Equipment, Useful Life (Year)   15 years    
Minimum [Member]        
Finite-Lived Intangible Asset, Useful Life (Year)   3 years 6 months    
Minimum [Member] | Machinery Equipment and Furniture [Member]        
Property, Plant and Equipment, Useful Life (Year)   4 years    
Minimum [Member] | Leasehold Improvements [Member]        
Property, Plant and Equipment, Useful Life (Year)   10 years    
Turning Point Brands Canada [Member]        
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage   65.00%    
ALP Supply Co LLC [Member]        
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage 50.00%      
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies - Fair Value of MSA Escrow Account (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash and cash equivalents, cost $ 48,941 $ 117,886 $ 106,403 $ 128,320
Total, cost 32,073 32,073    
Total, gross unrealized gains 106 0    
Total, gross unrealized losses (3,503) (3,389)    
Total, estimated fair value 28,676 28,684    
Cash and Cash Equivalents [Member]        
Cash and cash equivalents, cost 1,961 1,929    
Cash and cash equivalents, gross unrealized gains 0 0    
Cash and cash equivalents, gross unrealized losses 0 0    
Cash and cash equivalents, estimated fair value 1,961 1,929    
US Government Agencies Debt Securities [Member]        
U.S. Governmental agency obligations (unrealized position less than 12 months), cost 4,168 0    
U.S. Governmental agency obligations (unrealized position less than 12 months), gross unrealized gains 11 0    
U.S. Governmental agency obligations (unrealized position less than 12 months), gross unrealized losses (48) 0    
U.S. Governmental agency obligations (unrealized position less than 12 months), estimated fair value 4,131 0    
U.S. Governmental agency obligations (unrealized position greater than 12 months), cost 25,944 30,144    
U.S. Governmental agency obligations (unrealized position greater than 12 months), gross unrealized gains 95 0    
U.S. Governmental agency obligations (unrealized position greater than 12 months), gross unrealized losses (3,455) (3,389)    
U.S. Governmental agency obligations (unrealized position greater than 12 months), estimated fair value $ 22,584 $ 26,755    
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies - Maturities of Debt Securities Held in MSA Escrow Account (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Less than one year $ 250
One to five years 14,771
Five to ten years 13,136
Greater than ten years 1,955
Total $ 30,112
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies - Schedule of MSA Escrow Deposits By Year (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
1999 $ 211 $ 211
2000 1,017 1,017
2001 1,673 1,673
2002 2,271 2,271
2003 4,249 4,249
2004 3,714 3,714
2005 4,553 4,553
2006 3,847 3,847
2007 4,167 4,167
2008 3,364 3,364
2009 1,619 1,619
2010 406 406
2011 193 193
2012 199 199
2013 173 173
2014 143 143
2015 101 101
2016 91 91
2017 82 82
Total $ 32,073 $ 32,073
v3.25.0.1
Note 2 - Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Balance at beginning of period $ 78 $ 40 $ 29
Additions to allowance account during period 23 38 24
Deductions of allowance account during period (35) 0 (13)
Balance at end of period $ 66 $ 78 $ 40
v3.25.0.1
Note 3 - Assets Held for Sale and Discontinued Operations (Details Textual)
$ in Millions
 9 Months Ended 12 Months Ended
Jan. 25, 2025
USD ($)
Jan. 02, 2025
USD ($)
Sep. 30, 2024
Dec. 31, 2024
USD ($)
Number of Reportable Segments     3 2
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down       $ 8.8
General Wireless Operations Inc [Member]        
Equity Method Investment, Ownership Percentage       49.00%
Subsequent Event [Member] | General Wireless Operations Inc [Member]        
Equity Method Investment, Ownership Percentage 49.00% 49.00%    
Equity Method Investment, Option to Purchase Interest, Period (Year) 15 years 15 years    
Equity Method Investment, Option, Price $ 22.0 $ 22.0    
Subsequent Event [Member] | General Wireless Operations Inc [Member] | Standard General, LP [Member]        
Equity Method Investment, Ownership Percentage 51.00% 51.00%    
South Beach Brands LLC [Member]        
Percentage of Subsidiary Contributed by Parent to Joint Venture       100.00%
South Beach Brands LLC [Member] | Subsequent Event [Member]        
Percentage of Subsidiary Contributed by Parent to Joint Venture 100.00% 100.00%    
v3.25.0.1
Note 3 - Assets Held for Sale and Discontinued Operations - Information Related to Discontinued Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loss on assets held for sale fair value adjustment                 $ 8,800    
Loss from discontinued operations, net of tax $ (7,309) $ (165) $ (41) $ (2) $ (480) $ (345) $ 345 $ 195 (7,517) $ (285) $ (19,929)
Current assets                      
Current assets held for sale 11,470       12,267       11,470 12,267  
Noncurrent assets                      
Noncurrent assets held for sale 3,859       14,731       3,859 14,731  
Current liabilities                      
Current liabilities held for sale 2,049       2,209       2,049 2,209  
Noncurrent liabilities                      
Noncurrent liabilities held for sale 0       52       0 52  
Creative Distribution Solutions Products [Member]                      
Net sales                 59,051 80,329 93,784
Cost of sales                 46,041 60,030 66,076
Gross profit                 13,010 20,299 27,708
Selling, general, and administrative expenses                 12,246 18,442 24,287
Loss on assets held for sale fair value adjustment                 8,801 0 0
Depreciation                 236 341 529
Amortization of other intangible assets                 1,843 1,899 1,386
Goodwill and intangible impairment loss                 0 0 27,566
Operating loss from discontinued operations                 (10,116) (383) (26,060)
Interest income                 (146) 0 0
Loss from discontinued operations before income taxes                 (9,970) (383) (26,060)
Income tax benefit                 (2,453) (98) (6,131)
Loss from discontinued operations, net of tax                 (7,517) (285) $ (19,929)
Current assets                      
Cash 2,783       1,161       2,783 1,161  
Inventories, net 5,813       7,262       5,813 7,262  
Other current assets 2,874       3,844       2,874 3,844  
Current assets held for sale 11,470       12,267       11,470 12,267  
Noncurrent assets                      
Property, plant, and equipment, net 0       158       0 158  
Right of use assets 51       121       51 121  
Other intangible assets, net 12,609       14,452       12,609 14,452  
Allowance to adjust held for sale assets to fair value (8,801)       0       (8,801) 0  
Noncurrent assets held for sale 3,859       14,731       3,859 14,731  
Total assets held for sale 15,329       26,998       15,329 26,998  
Current liabilities                      
Accounts payable 532       613       532 613  
Accrued liabilities 1,517       1,596       1,517 1,596  
Current liabilities held for sale 2,049       2,209       2,049 2,209  
Noncurrent liabilities                      
Lease liabilities 0       52       0 52  
Noncurrent liabilities held for sale 0       52       0 52  
Total liabilities held for sale $ 2,049       $ 2,261       $ 2,049 $ 2,261  
v3.25.0.1
Note 4 - Joint Venture Agreement (Details Textual) - USD ($)
$ in Thousands
 1 Months Ended
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Cash   $ 46,158 $ 116,725
Inventory, Net   96,253 $ 91,698
ALP Supply Co LLC [Member]      
Cash   5,300  
Inventory, Net   900  
Other Assets   1,100  
Accounts Payable and Other Accrued Liabilities   3,600  
Amounts Receivable from Related Party   $ 3,200  
ALP Supply Co LLC [Member]      
Payments to Acquire Interest in Joint Venture $ 800    
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage 50.00%    
Long-Term Line of Credit $ 10,000    
v3.25.0.1
Note 5 - Derivative Instruments (Details Textual)
$ in Thousands, € in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Dec. 31, 2022
USD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2023
EUR (€)
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Current   Other Assets, Current     Other Assets, Current Other Assets, Current
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current   Accrued Liabilities, Current     Accrued Liabilities, Current Accrued Liabilities, Current
Foreign Exchange Contract [Member]              
Derivative Asset | $ $ 0   $ 300        
Derivative Liability | $ 100   100        
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ $ 200   $ 900   $ (100)    
Foreign Exchange Contract [Member] | Long [Member]              
Derivative, Notional Amount of Contracts Executed   € 3.6   € 20.1      
Derivative, Notional Amount           € 2.1 € 15.2
Foreign Exchange Contract [Member] | Short [Member]              
Derivative, Notional Amount of Contracts Executed   € 3.6   € 15.2      
Derivative, Notional Amount           € 2.1 € 15.2
Maximum [Member]              
Percentage of Anticipated Purchases of Inventory That may be Hedged Under Inventory Contracts 100.00% 100.00%          
Derivative, Term of Contract (Month) 12 months 12 months          
Percentage of Purchase Price of Non-Inventory Purchases That May be Hedged 100.00% 100.00%          
v3.25.0.1
Note 6 - Fair Value of Financial Instruments (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Jul. 15, 2024
Jul. 01, 2024
Dec. 31, 2023
Jul. 31, 2019
Long-Term Debt, Gross $ 250,000     $ 368,541  
Senior Secured Notes Due 2026 [Member]          
Debt Instrument, Interest Rate, Stated Percentage 5.625%        
Debt Instrument, Fair Value Disclosure $ 251,200     234,900  
Long-Term Debt, Gross 250,000     250,000  
Convertible Senior Notes [Member]          
Debt Instrument, Interest Rate, Stated Percentage         2.50%
Debt Instrument, Fair Value Disclosure       114,700  
Long-Term Debt, Gross $ 0 $ 118,500 $ 0 $ 118,541  
v3.25.0.1
Note 7 - Inventories (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2024
Insurance Settlements Receivable, Current $ 15,181   $ 15,181
Refund Claim with the Alcohol and Tobacco Tax and Trade Bureau [Member]      
Loss Contingency, Damages Sought, Value 1,700 $ 4,300  
Other Current Assets [Member]      
Insurance Settlements Receivable, Current 15,200    
Leaf Tobacco Inventory [Member]      
Inventory Adjustments $ 15,200    
v3.25.0.1
Note 7 - Inventories - Schedule of Inventory Balances (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Raw materials and work in process $ 7,699 $ 5,201
Leaf tobacco 35,622 34,894
Other 1,924 1,711
Inventories 96,253 91,698
Zig Zag Products [Member]    
Finished goods 38,042 41,783
Stokers Products [Member]    
Finished goods $ 12,966 $ 8,109
v3.25.0.1
Note 7 - Inventories - Schedule of Inventory Valuation Allowance (Details) - SEC Schedule, 12-09, Reserve, Inventory [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Balance at beginning of period $ (16,927) $ (772) $ (4,122)
Charged to cost and expense (648) (17,370) (772)
Deductions for inventory disposed 0 1,215 4,122
Balance at end of period $ (17,575) $ (16,927) $ (772)
v3.25.0.1
Note 8 - Other Current Assets - Schedule of Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory deposits $ 5,981 $ 3,612
Insurance deposit 0 3,000
Prepaid taxes 3,586 153
Settlement receivable 0 4,000
Insurance recovery receivable 15,181 15,181
Other 9,952 10,991
Total $ 34,700 $ 36,937
v3.25.0.1
Note 9 - Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, plant and equipment $ 48,151 $ 44,828
Accumulated depreciation (21,814) (19,686)
Property, plant and equipment, net 26,337 25,142
Land [Member]    
Property, plant and equipment 22 22
Building and Building Improvements [Member]    
Property, plant and equipment 4,216 3,956
Leasehold Improvements [Member]    
Property, plant and equipment 7,983 5,440
Machinery and Equipment [Member]    
Property, plant and equipment 31,207 29,645
Furniture and Fixtures [Member]    
Property, plant and equipment $ 4,723 $ 5,765
v3.25.0.1
Note 10 - Deferred Financing Costs, Net - Schedule of Deferred Financing Costs, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred financing costs, net of accumulated amortization of $747 and $104, respectively $ 1,823 $ 2,450
v3.25.0.1
Note 10 - Deferred Financing Costs, Net - Schedule of Deferred Financing Costs, Net (Details) (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred financing costs, accumulated amortization $ 747 $ 104
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets (Details Textual) - USD ($)
$ / shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Amortization of Intangible Assets $ 1,223 $ 1,197 $ 524
Finite-Lived Intangible Asset, Expected Amortization, Year One 1,200    
Finite-Lived Intangible Asset, Expected Amortization, Year Two 4,800    
Finite-Lived Intangible Asset, Expected Amortization, Year Three 4,800    
Finite-Lived Intangible Asset, Expected Amortization, Year Four 4,800    
Finite-Lived Intangible Asset, Expected Amortization, Year Five $ 4,800    
Trade Secrets and Trade Name [Member]      
Finite-Lived Intangible Asset, Useful Life (Year)   15 years  
Amortization of Intangible Assets   $ 700  
Intangible Assets, Change in Classification, Effect on Net Income   $ 400  
Intangible Assets, Change in Classification, Effect on Net Income, Per Share (in dollars per share)   $ 20  
Zig Zag Products [Member]      
Goodwill, Impairment Loss   $ 0  
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Balance $ 136,250 $ 136,253
Cumulative translation adjustment (318) (3)
Balance 135,932 136,250
Zig Zag Products [Member]    
Balance 103,660 103,663
Cumulative translation adjustment (318) (3)
Balance 103,342 103,660
Stokers Products [Member]    
Balance 32,590 32,590
Cumulative translation adjustment 0 0
Balance $ 32,590 $ 32,590
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Gross carrying amount $ 50,798 $ 50,798
Gross carrying amount 50,798 50,798
Trade Names [Member]    
Gross carrying amount 8,500 8,500
Gross carrying amount 8,500 8,500
Trade Secrets [Member]    
Gross carrying amount 42,298 42,298
Gross carrying amount 42,298 42,298
Zig Zag Products [Member]    
Gross carrying amount 42,245 42,245
Gross carrying amount 42,245 42,245
Zig Zag Products [Member] | Trade Names [Member]    
Gross carrying amount 0 0
Gross carrying amount 0 0
Zig Zag Products [Member] | Trade Secrets [Member]    
Gross carrying amount 42,245 42,245
Gross carrying amount 42,245 42,245
Stokers Products [Member]    
Gross carrying amount 8,553 8,553
Gross carrying amount 8,553 8,553
Stokers Products [Member] | Trade Names [Member]    
Gross carrying amount 8,500 8,500
Gross carrying amount 8,500 8,500
Stokers Products [Member] | Trade Secrets [Member]    
Gross carrying amount 53 53
Gross carrying amount $ 53 $ 53
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Zig Zag Products [Member]    
Gross carrying amount $ 15,898 $ 15,910
Accumulated amortization 3,023 1,956
Zig Zag Products [Member] | Trade Names [Member]    
Gross carrying amount 437 449
Accumulated amortization 45 10
Zig Zag Products [Member] | Trade Secrets [Member]    
Gross carrying amount 9,972 9,972
Accumulated amortization 1,330 665
Zig Zag Products [Member] | Distribution Rights [Member]    
Gross carrying amount 5,489 5,489
Accumulated amortization 1,648 1,281
Stokers Products [Member]    
Gross carrying amount 2,372 2,372
Accumulated amortization 791 633
Stokers Products [Member] | Trade Names [Member]    
Gross carrying amount 2,372 2,372
Accumulated amortization 791 633
Stokers Products [Member] | Trade Secrets [Member]    
Gross carrying amount 0 0
Accumulated amortization 0 0
Stokers Products [Member] | Distribution Rights [Member]    
Gross carrying amount 0 0
Accumulated amortization $ 0 $ 0
v3.25.0.1
Note 11 - Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) (Parentheticals)
Dec. 31, 2024
Trade Names [Member]  
Useful life (Year) 15 years
Trade Secrets [Member]  
Useful life (Year) 15 years
Distribution Rights [Member]  
Useful life (Year) 15 years
v3.25.0.1
Note 12 - Other Assets (Details Textual) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Jul. 31, 2022
Jul. 31, 2021
Oct. 31, 2020
Dec. 31, 2018
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jul. 31, 2024
Jul. 31, 2023
Equity Method Investments           $ 1,231 $ 2,405        
Payments to Acquire Investments           10,857 202 $ 1,000      
Gain (Loss) on Investments           (2,722) (12,177) (13,570)      
Payments to Acquire Equity Method Investments           $ 500 (0) (0)      
South Beach Brands LLC [Member]                      
Percentage of Subsidiary Contributed by Parent to Joint Venture           100.00%          
Teaza Engery, LLC [Member]                      
Equity Method Investments $ 800                    
Equity Method Investment, Ownership Percentage 18.70%                    
Payments to Acquire Investments $ 500                    
Equity Method Investment, Payable to be Offset Against Future Profit Distributions $ 300                    
Teaza Engery, LLC [Member] | Maximum [Member]                      
Equity Method Investment, Ownership Percentage Option           100.00%          
Old Pal Holding Company LLC [Member]                      
Payments to Acquire Investments   $ 1,000 $ 8,000                
Interest Receivable   $ 200               $ 300 $ 300
Investments           $ 9,800          
Note Receivable, Interest Rate, Stated Percentage           3.00%          
Note Receivable, Term of Extension Increment (Year)           1 year          
Note Receivable, Weighted Average Interest Rate           3.00%          
Financing Receivable, Allowance for Credit Loss           $ 800 1,300 1,400      
Old Pal Holding Company LLC [Member] | Other Current Assets [Member]                      
Interest Receivable, Current           100 100        
Old Pal Holding Company LLC [Member] | Fair Value, Inputs, Level 3 [Member]                      
Investments, Fair Value Disclosure           6,400 6,900 7,900      
Docklight Brands Inc [Member]                      
Gain (Loss) on Investments             (8,700)        
Related Party Transaction, Purchases from Related Party           $ 0 0        
Accounts Payable             0        
Wild Hempettes LLC [Member]                      
Equity Method Investment, Ownership Percentage       20.00%   20.00%          
Related Party Transaction, Purchases from Related Party           $ 0 0        
Equity Method Investment, Other-than-Temporary Impairment           300 2,200        
Accounts Receivable, after Allowance for Credit Loss             200        
Accounts Payable             0        
Bomani Cold Buzz LLC [Member]                      
Related Party Transaction, Purchases from Related Party           0 0        
Equity Method Investment, Other-than-Temporary Impairment           $ 1,800          
Accounts Payable             0        
General Wireless Operations Inc [Member]                      
Equity Method Investment, Ownership Percentage           49.00%          
Payments to Acquire Equity Method Investments         $ 400            
Accounts Payable           $ 0 $ 0        
Dosist [Member]                      
Gain (Loss) on Investments               (7,900) $ (7,100)    
Payments to Acquire Equity Method Investments       $ 15,000              
Canadian American Standard Hemp [Member]                      
Equity Method Investments               0      
Gain (Loss) on Investments               $ (4,300)      
v3.25.0.1
Note 12 - Other Assets - Schedule of Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Non-marketable equity investments $ 1,231 $ 2,405
Debt security investment 6,276 6,750
Capitalized software 7,409 5,923
Captive investments - available-for-sale marketable securities 5,487 0
Other 259 88
Total $ 20,662 $ 15,166
v3.25.0.1
Note 12 - Other Assets - Schedule of Available-for-Sale Debt Securities (Details) - Interchange IC [Member]
$ in Thousands
Dec. 31, 2024
USD ($)
Debt securities, available-for-sale, amortized cost $ 5,432
Debt securities, available-for-sale, unrealized gains (losses) 55
Debt Securities, available-for-sale, fair value 5,487
Stocks [Member]  
Debt securities, available-for-sale, amortized cost 1,517
Debt securities, available-for-sale, unrealized gains (losses) 9
Debt Securities, available-for-sale, fair value 1,526
Exchange Traded Funds [Member]  
Debt securities, available-for-sale, amortized cost 1,189
Debt securities, available-for-sale, unrealized gains (losses) (5)
Debt Securities, available-for-sale, fair value 1,184
Corporate Bond Securities [Member]  
Debt securities, available-for-sale, amortized cost 2,383
Debt securities, available-for-sale, unrealized gains (losses) 50
Debt Securities, available-for-sale, fair value 2,433
Real Estate Investment [Member]  
Debt securities, available-for-sale, amortized cost 343
Debt securities, available-for-sale, unrealized gains (losses) 1
Debt Securities, available-for-sale, fair value $ 344
v3.25.0.1
Note 12 - Other Assets - Schedule of Maturities of Available-for-sale Securities (Details) - Interchange IC [Member]
$ in Thousands
Dec. 31, 2024
USD ($)
Due within one year $ 2,242
Due in one to five years 191
Stocks, real estate investment trusts and exchange traded funds 3,054
Total investments at fair value $ 5,487
v3.25.0.1
Note 13 - Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accrued payroll and related items $ 9,564 $ 6,599
Customer returns and allowances 5,160 5,064
Taxes payable 358 3,413
Lease liabilities 3,121 2,608
Accrued interest 5,473 6,682
Other 7,420 7,686
Total $ 31,096 $ 32,052
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Nov. 07, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jul. 15, 2024
Jul. 01, 2024
Feb. 11, 2021
Jul. 31, 2019
Long-Term Debt, Gross   $ 250,000 $ 368,541          
Gain (Loss) on Extinguishment of Debt   $ (0) 1,664 $ 885        
Senior Secured Notes 2026 [Member]                
Debt Instrument, Face Amount             $ 250,000  
Debt Instrument, Interest Rate, Stated Percentage   5.625%            
Debt Instrument, Guarantee Threshold   $ 15,000            
Debt Issuance Costs, Gross             6,400  
Long-Term Debt, Gross   250,000 250,000          
Revolving Credit Facility 2021 As Amended [Member]                
Debt Issuance Costs, Gross   500            
Line of Credit Facility, Maximum Borrowing Capacity             $ 25,000  
Gain (Loss) on Extinguishment of Debt, before Debt Issuance Cost Writeoff   200            
Asset Backed Revolving Credit Facility 2023 [Member]                
Debt Issuance Costs, Gross   2,600            
Line of Credit Facility, Maximum Borrowing Capacity $ 75,000              
Line of Credit Facility, Accordion Feature $ 40,000              
Debt Instrument, Percentage Used in Calculation of Borrowing Base 85.00%              
Debt Instrument, Percentage Used in Calculation of LILO Borrowing Base 10.00%              
Debt Instrument Covenant, Fixed Charge Coverage Ratio 1.00%              
Debt Instrument, Number of Consecutive Quarters to Maintain Minimum Fixed Charge Coverage Ratio 4              
Debt Instrument, Percentage of Line Cap 12.50%              
Debt Instrument, Threshold Excess Availability $ 9,400              
Debt Instrument, Period to Maintain Excess Availability (Year) 30 years              
Debt Instrument, Period Prior to Maturity Date of Any Material Debt Outstanding (Year) 91 years              
Debt Instrument, Excess Availability Threshold $ 15,000              
Proceeds from Lines of Credit   0            
Letters of Credit Outstanding, Amount   2,300            
Line of Credit Facility, Remaining Borrowing Capacity   57,400            
Asset Backed Revolving Credit Facility [Member] | Base Rate [Member]                
Debt Instrument, Basis Spread on Variable Rate 1.25%              
Asset Backed Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member]                
Debt Instrument, Basis Spread on Variable Rate 2.25%              
LILO Loans [Member] | Base Rate [Member]                
Debt Instrument, Basis Spread on Variable Rate 2.25%              
LILO Loans [Member] | Secured Overnight Financing Rate (SOFR) [Member]                
Debt Instrument, Basis Spread on Variable Rate 3.25%              
Convertible Senior Notes [Member]                
Debt Instrument, Face Amount               $ 172,500
Debt Instrument, Interest Rate, Stated Percentage               2.50%
Long-Term Debt, Gross   $ 0 118,541   $ 118,500 $ 0    
Debt Instrument, Repurchased Face Amount     44,000 10,000        
Gain (Loss) on Extinguishment of Debt     1,900 $ 900        
Debt Instrument, Cumulative Repurchased Face Amount     $ 54,000          
Debt Instrument, Maturity Date   Jul. 15, 2024            
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt - Schedule of Notes Payable and Long-Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jul. 15, 2024
Jul. 01, 2024
Dec. 31, 2023
Debt Instrument, Carrying amount $ 250,000     $ 368,541
Less deferred financing costs (1,396)     (3,183)
Less current maturities 0     (58,294)
Notes payable and long-term debt 248,604     307,064
Senior Secured Notes 2026 [Member]        
Debt Instrument, Carrying amount 250,000     250,000
Convertible Senior Notes [Member]        
Debt Instrument, Carrying amount $ 0 $ 118,500 $ 0 $ 118,541
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt - Components of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest expense $ 18,526 $ 21,028 $ 21,920
Interest income (4,543) (6,383) (2,396)
Interest expense, net $ 13,983 $ 14,645 $ 19,524
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt - Schedule of Excess Availability (Details) - Asset Backed Revolving Credit Facility [Member]
Nov. 07, 2023
Secured Overnight Financing Rate (SOFR) [Member]  
I 1.75%
II 2.00%
III 2.25%
Base Rate [Member]  
I 0.75%
II 1.00%
III 1.25%
v3.25.0.1
Note 14 - Notes Payable and Long-Term Debt - Schedule of Excess Availability (Details) (Parentheticals) - Asset Backed Revolving Credit Facility 2023 [Member]
Nov. 07, 2023
Maximum [Member]  
Debt Instrument, Historical Excess Availability Threshold 66.66%
Minimum [Member]  
Debt Instrument, Historical Excess Availability Threshold 33.33%
v3.25.0.1
Note 15 - Income Taxes (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Deferred Tax Assets, Valuation Allowance $ 12,586 $ 11,446  
Unrecognized Tax Benefits 0    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense 0 0 $ 0
Capital Loss Carryforward [Member]      
Deferred Tax Assets, Valuation Allowance 4,100    
Unrealized Loss On Investments [Member]      
Deferred Tax Assets, Valuation Allowance 3,100 6,400  
State and Local Jurisdiction [Member]      
Operating Loss Carryforwards 23,600    
Operating Loss Carryforwards with Indefinite Carryforward Period 27,200    
Operating Loss Carryforwards, Valuation Allowance 3,100 2,900  
Foreign Tax Jurisdiction [Member]      
Operating Loss Carryforwards, Valuation Allowance $ 1,800 $ 1,700  
v3.25.0.1
Note 15 - Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current, Federal $ 14,005 $ 13,404 $ 13,505
Deferred, Federal 240 4,091 (4,713)
Total, Federal 14,245 17,495 8,792
Current, Federal 14,005 13,404 13,505
Deferred, Federal 240 4,091 (4,713)
Total, Federal 14,245 17,495 8,792
Current, State and Local 2,405 3,587 3,897
Deferred, State and Local 279 2,166 (1,291)
Total, State and Local 2,684 5,753 2,606
Current, State and Local 2,405 3,587 3,897
Deferred, State and Local 279 2,166 (1,291)
Total, State and Local 2,684 5,753 2,606
Current, Foreign 0 (16) 84
Deferred, Foreign 0 767 (502)
Total, Foreign 0 751 (418)
Current, Foreign 0 (16) 84
Deferred, Foreign 0 767 (502)
Total, Foreign 0 751 (418)
Current, Total 16,410 16,975 17,486
Deferred, Total 519 7,024 (6,506)
Total 16,929 23,999 10,980
Current, Total 16,410 16,975 17,486
Deferred, Total 519 7,024 (6,506)
Total $ 16,929 $ 23,999 $ 10,980
v3.25.0.1
Note 15 - Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory, Assets $ 4,802 $ 5,310
Inventory, Liabilities 0 0
Property, plant, and equipment, Assets 0 0
Property, plant, and equipment, Liabilities 3,433 3,120
Goodwill and other intangible assets, Assets 0 0
Goodwill and other intangible assets, Liabilities 3,549 3,182
Foreign NOL carryforward, Assets 1,505 1,495
State NOL carryforward, Assets 2,339 2,398
Unrealized loss on investments, Assets 3,846 7,203
Leases, Assets 3,278 3,278
Leases, Liabilities 3,004 2,978
Original issue discount, Assets 0 426
Original issue discount, Liabilities 0 0
Stock compensation, assets 4,306 4,879
Insurance receivable, liabilities 3,728 3,764
Capital loss carryforward, assets 4,108 0
Other, Assets 5,117 4,536
Other, Liabilities 2,006 3,567
Other, Liabilties 2,006 3,567
Gross deferred income taxes, Assets 29,301 29,525
Gross deferred income taxes, Liabilities 15,720 16,611
Valuation allowance, Assets (12,586) (11,446)
Net deferred income taxes, Assets $ 16,715 $ 18,079
v3.25.0.1
Note 15 - Income Taxes - Reconciliation of Income Tax Rate (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Federal statutory rate 21.00% 21.00% 21.00%
Foreign rate differential (0.10%) (0.10%) (0.20%)
State taxes 3.40% 4.30% 5.00%
Permanent differences (0.60%) (0.10%) 0.00%
Other 0.60% 0.00% 0.20%
Valuation allowance 1.80% 13.60% 0.10%
Effective income tax rate 26.10% 38.70% 26.10%
v3.25.0.1
Note 16 - 401(k) Retirement Savings Plan (Details Textual) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent 15.00%    
Defined Contribution Plan, Employer Contribution Percentage for Employee Contributing Four Percent or Greater 4.00%    
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay 4.00%    
Defined Contribution Plan, Employer Contribution Percentage for Employee Contributing Less Than Four Percent 4.00%    
Defined Contribution Plan, Employer Matching Contribution, Percent of Match 100.00%    
Defined Contribution Plan, Employer Discretionary Contribution, Percentage 1.00%    
Defined Contribution Plan, Cost $ 1.5 $ 1.4 $ 1.5
v3.25.0.1
Note 17 - Lease Commitments - Reconciliation of Operating Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Variable lease cost $ 1,091 $ 1,161 $ 699
Short-term lease cost 0 24 37
Total 3,353 3,448 3,064
Cost of Sales [Member]      
Cost of sales 502 507 940
Selling, General and Administrative Expenses [Member]      
Cost of sales $ 1,760 $ 1,756 $ 1,388
v3.25.0.1
Note 17 - Lease Commitments - Reconciliation of Finance Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Selling, general and administrative $ 1,105 $ 1,164 $ 1,138
Interest expense, net 173 0 0
Variable lease cost 72 0 0
Selling, General and Administrative Expenses [Member]      
Selling, general and administrative $ 860 $ 1,164 $ 1,138
v3.25.0.1
Note 17 - Lease Commitments - Schedule of Operating and Finance Lease Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Right of use assets - Operating $ 8,338 $ 8,829
Right of use assets - Financing 3,272 2,530
Operating and Finance Lease, Right-of-Use Asset 11,610 11,359
Current lease liabilities - Operating (1) [1] 2,011 1,921
Current lease liabilities - Financing (1) [1] 1,110 687
Long-term lease liabilities - Operating 7,400 8,322
Long-term lease liabilities - Financing 2,149 1,576
Total lease liabilities 12,670 12,506
Operating leases 1,209 143
Finance leases $ 1,842 $ 2,169
Weighted-average remaining lease term - operating leases (years) (Year) 4 years 9 months 18 days 5 years 8 months 12 days
Weighted-average discount rate - operating leases 5.65% 5.17%
Weighted-average remaining lease term - financing leases (years) (Year) 3 years 1 month 6 days 3 years 4 months 24 days
Weighted-average discount rate - financing leases 6.64% 6.48%
[1] Reported within accrued liabilities on the balance sheets.
v3.25.0.1
Note 17 - Lease Commitments - Schedule of Operating and Finance Lease Information (Details) (Parentheticals)
Dec. 31, 2024
Dec. 31, 2023
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Operating and Finance Lease, Right-of-Use Asset Operating and Finance Lease, Right-of-Use Asset
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Operating and Finance Lease, Right-of-Use Asset Operating and Finance Lease, Right-of-Use Asset
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
US Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Operating and Finance Lease, Liability, Noncurrent Operating and Finance Lease, Liability, Noncurrent
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Operating and Finance Lease, Liability, Noncurrent Operating and Finance Lease, Liability, Noncurrent
v3.25.0.1
Note 17 - Lease Commitments - Maturities of Operating and Finance Leases (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
2025, Operating Lease $ 2,487
2025, Finance Lease 1,293
2026, Operating Lease 2,299
2026, Finance Lease 1,176
2027, Operating Lease 2,449
2027, Finance Lease 833
2028, Operating Lease 1,158
2028, Finance Lease 302
2029, Operating Lease 1,159
2029, Finance Lease 0
Years thereafter, Operating Lease 1,379
Years thereafter, Finance Lease 0
Total lease payments, Operating Lease 10,931
Total lease payments, Finance Lease 3,604
Less: Imputed interest, Operating Lease (1,520)
Less: Imputed interest, Finance Lease (345)
Present value of lease liabilities, Operating Lease 9,411
Present value of lease liabilities, Finance Lease $ 3,259
v3.25.0.1
Note 18 - Share Incentive Plans (Details Textual) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mar. 22, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value $ 2.6 $ 0.3 $ 0.7  
Restricted Stock Units (RSUs) [Member]        
Share-Based Payment Arrangement, Expense $ 3.3 2.9 1.3  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) 222,007      
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount $ 2.2      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) 1 year 10 months 24 days      
Restricted Stock Units (RSUs) [Member] | Minimum [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 1 year      
Restricted Stock Units (RSUs) [Member] | Maximum [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 5 years      
Share-Based Payment Arrangement, Option [Member]        
Share-Based Payment Arrangement, Expense $ 0.5 0.7 1.1  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) 0      
Performance Shares [Member]        
Share-Based Payment Arrangement, Expense $ 3.4 $ 3.0 $ 2.9  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) 372,218      
Share-based Compensation Arrangement by Share-based Payment Award, Performance Period (Year) 5 years      
Share-based Compensation Arrangement by Share-based Payment Award, Period Between Performance Period and Measurement Date (Year) 65 years      
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount $ 2.7      
Turning Point Brands Inc 2021 Equity Incentive Plan [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)       1,290,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) 808,063      
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Awards Granted, Net of Forfeitures, Number (in shares) 381,717      
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Awards Granted, Net of Forfeitures, Number (in shares) 125,213      
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Performance Shares [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Awards Granted, Net of Forfeitures, Number (in shares) 75,059      
Turning Point Brands Inc 2015 Equity Incentive Plan [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)       100,052
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) 0      
v3.25.0.1
Note 18 - Share Incentive Plans - Summary of Stock Option Activity (Details) - North Atlantic Holding Company Inc 2006 Equity Incentive Plan, Turning Point Brands Inc 2015 Equity Incentive Plan and Turning Point Brands Inc 2021 Equity Incentive Plan [Member] - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Outstanding (in shares) 656,951 683,214
Outstanding, weighted average exercise price (in dollars per share) $ 29.79 $ 29.74
Outstanding, weighted average grant date fair value (in dollars per share) $ 9.18 $ 9.24
Number of options granted (in shares) 54,289 77,519
Granted, weighted average exercise price (in dollars per share) $ 27.19 $ 20.71
Fair value at grant date (in dollars per share) $ 9.21 $ 6.45
Exercised (in shares) (132,572) (33,851)
Exercised, weighted average exercise price (in dollars per share) $ 21.36 $ 13.3
Exercised, weighted average grant date fair value (in dollars per share) $ 6.97 $ 4.24
Forfeited (in shares) (42,878) (69,931)
Forfeited, weighted average exercise price (in dollars per share) $ 38.11 $ 27.51
Forfeited, weighted average grant date fair value (in dollars per share) $ 11.94 $ 9.11
Outstanding (in shares) 535,790 656,951
Outstanding, weighted average exercise price (in dollars per share) $ 30.69 $ 29.79
Outstanding, weighted average grant date fair value (in dollars per share) $ 9.51 $ 9.18
v3.25.0.1
Note 18 - Share Incentive Plans - Summary of Stock Option Plans (Details) - Share-Based Payment Arrangement, Option [Member] - $ / shares
 12 Months Ended
Mar. 11, 2024
May 12, 2023
Apr. 29, 2022
Mar. 14, 2022
May 17, 2021
Feb. 18, 2021
Mar. 18, 2020
Mar. 20, 2019
Mar. 07, 2018
May 17, 2017
Feb. 10, 2017
Dec. 31, 2024
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Awards Granted 20210517 [Member]                        
Number of options granted (in shares)         7,500              
Options outstanding at December 31, 2024 (in shares)                       7,500
Number exercisable at December 31, 2024 (in shares)                       7,500
Exercise price (in dollars per share)                       $ 45.05
Remaining lives (Year)                       6 years 4 months 17 days
Risk free interest rate                       0.84%
Expected volatility                       31.50%
Expected life (Year)                       6 years
Dividend yield                       0.63%
Fair value at grant date (in dollars per share)                       $ 13.23
Number of options granted (in shares)         7,500              
Options outstanding at December 31, 2024 (in shares)                       7,500
Number exercisable at December 31, 2024 (in shares)                       7,500
Exercise price (in dollars per share)                       $ 45.05
Risk free interest rate                       0.84%
Expected volatility                       31.50%
Expected life (Year)                       6 years
Dividend yield                       0.63%
Fair value at grant date (in dollars per share)                       $ 13.23
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Awards Granted 20220314 [Member]                        
Number of options granted (in shares)       100,000                
Options outstanding at December 31, 2024 (in shares)                       58,719
Number exercisable at December 31, 2024 (in shares)                       38,744
Exercise price (in dollars per share)                       $ 30.46
Remaining lives (Year)                       7 years 2 months 15 days
Risk free interest rate                       2.10%
Expected volatility                       35.33%
Expected life (Year)                       6 years
Dividend yield                       1.01%
Fair value at grant date (in dollars per share)                       $ 10.23
Number of options granted (in shares)       100,000                
Options outstanding at December 31, 2024 (in shares)                       58,719
Number exercisable at December 31, 2024 (in shares)                       38,744
Exercise price (in dollars per share)                       $ 30.46
Risk free interest rate                       2.10%
Expected volatility                       35.33%
Expected life (Year)                       6 years
Dividend yield                       1.01%
Fair value at grant date (in dollars per share)                       $ 10.23
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Awards Granted 20220429 [Member]                        
Number of options granted (in shares)     14,827                  
Options outstanding at December 31, 2024 (in shares)                       6,273
Number exercisable at December 31, 2024 (in shares)                       4,203
Exercise price (in dollars per share)                       $ 31.39
Remaining lives (Year)                       7 years 3 months 29 days
Risk free interest rate                       2.92%
Expected volatility                       35.33%
Expected life (Year)                       6 years
Dividend yield                       0.98%
Fair value at grant date (in dollars per share)                       $ 11.07
Number of options granted (in shares)     14,827                  
Options outstanding at December 31, 2024 (in shares)                       6,273
Number exercisable at December 31, 2024 (in shares)                       4,203
Exercise price (in dollars per share)                       $ 31.39
Risk free interest rate                       2.92%
Expected volatility                       35.33%
Expected life (Year)                       6 years
Dividend yield                       0.98%
Fair value at grant date (in dollars per share)                       $ 11.07
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Awards Granted 20230512 [Member]                        
Number of options granted (in shares)   77,519                    
Options outstanding at December 31, 2024 (in shares)                       77,519
Number exercisable at December 31, 2024 (in shares)                       77,519
Exercise price (in dollars per share)                       $ 20.71
Remaining lives (Year)                       8 years 4 months 13 days
Risk free interest rate                       3.41%
Expected volatility                       34.51%
Expected life (Year)                       5 years 2 months 7 days
Dividend yield                       1.61%
Fair value at grant date (in dollars per share)                       $ 6.45
Number of options granted (in shares)   77,519                    
Options outstanding at December 31, 2024 (in shares)                       77,519
Number exercisable at December 31, 2024 (in shares)                       77,519
Exercise price (in dollars per share)                       $ 20.71
Risk free interest rate                       3.41%
Expected volatility                       34.51%
Expected life (Year)                       5 years 2 months 7 days
Dividend yield                       1.61%
Fair value at grant date (in dollars per share)                       $ 6.45
Turning Point Brands Inc 2021 Equity Incentive Plan [Member] | Awards Granted 20240311 [Member]                        
Number of options granted (in shares) 54,289                      
Options outstanding at December 31, 2024 (in shares)                       54,289
Number exercisable at December 31, 2024 (in shares)                       54,289
Exercise price (in dollars per share)                       $ 27.19
Remaining lives (Year)                       9 years 2 months 12 days
Risk free interest rate                       4.06%
Expected volatility                       35.09%
Expected life (Year)                       5 years 2 months 7 days
Dividend yield                       1.26%
Fair value at grant date (in dollars per share)                       $ 9.21
Number of options granted (in shares) 54,289                      
Options outstanding at December 31, 2024 (in shares)                       54,289
Number exercisable at December 31, 2024 (in shares)                       54,289
Exercise price (in dollars per share)                       $ 27.19
Risk free interest rate                       4.06%
Expected volatility                       35.09%
Expected life (Year)                       5 years 2 months 7 days
Dividend yield                       1.26%
Fair value at grant date (in dollars per share)                       $ 9.21
Turning Point Brands Inc 2015 Equity Incentive Plan [Member] | Awards Granted 20170210 [Member]                        
Number of options granted (in shares)                     40,000  
Options outstanding at December 31, 2024 (in shares)                       20,000
Number exercisable at December 31, 2024 (in shares)                       20,000
Exercise price (in dollars per share)                       $ 13
Remaining lives (Year)                       2 years 1 month 13 days
Risk free interest rate                       1.89%
Expected volatility                       27.44%
Expected life (Year)                       6 years
Dividend yield                       0.00%
Fair value at grant date (in dollars per share)                       $ 3.98
Number of options granted (in shares)                     40,000  
Options outstanding at December 31, 2024 (in shares)                       20,000
Number exercisable at December 31, 2024 (in shares)                       20,000
Exercise price (in dollars per share)                       $ 13
Risk free interest rate                       1.89%
Expected volatility                       27.44%
Expected life (Year)                       6 years
Dividend yield                       0.00%
Fair value at grant date (in dollars per share)                       $ 3.98
Turning Point Brands Inc 2015 Equity Incentive Plan [Member] | Awards Granted 20170517 [Member]                        
Number of options granted (in shares)                   93,819    
Options outstanding at December 31, 2024 (in shares)                       30,969
Number exercisable at December 31, 2024 (in shares)                       30,969
Exercise price (in dollars per share)                       $ 15.41
Remaining lives (Year)                       2 years 4 months 17 days
Risk free interest rate                       1.76%
Expected volatility                       26.92%
Expected life (Year)                       6 years
Dividend yield                       0.00%
Fair value at grant date (in dollars per share)                       $ 4.6
Number of options granted (in shares)                   93,819    
Options outstanding at December 31, 2024 (in shares)                       30,969
Number exercisable at December 31, 2024 (in shares)                       30,969
Exercise price (in dollars per share)                       $ 15.41
Risk free interest rate                       1.76%
Expected volatility                       26.92%
Expected life (Year)                       6 years
Dividend yield                       0.00%
Fair value at grant date (in dollars per share)                       $ 4.6
Turning Point Brands Inc 2015 Equity Incentive Plan [Member] | Awards Granted 20180307 [Member]                        
Number of options granted (in shares)                 98,100      
Options outstanding at December 31, 2024 (in shares)                       49,267
Number exercisable at December 31, 2024 (in shares)                       49,267
Exercise price (in dollars per share)                       $ 21.21
Remaining lives (Year)                       3 years 2 months 8 days
Risk free interest rate                       2.65%
Expected volatility                       28.76%
Expected life (Year)                       6 years
Dividend yield                       0.83%
Fair value at grant date (in dollars per share)                       $ 6.37
Number of options granted (in shares)                 98,100      
Options outstanding at December 31, 2024 (in shares)                       49,267
Number exercisable at December 31, 2024 (in shares)                       49,267
Exercise price (in dollars per share)                       $ 21.21
Risk free interest rate                       2.65%
Expected volatility                       28.76%
Expected life (Year)                       6 years
Dividend yield                       0.83%
Fair value at grant date (in dollars per share)                       $ 6.37
Turning Point Brands Inc 2015 Equity Incentive Plan [Member] | Awards Granted 20190320 [Member]                        
Number of options granted (in shares)               155,780        
Options outstanding at December 31, 2024 (in shares)                       100,147
Number exercisable at December 31, 2024 (in shares)                       100,147
Exercise price (in dollars per share)                       $ 47.58
Remaining lives (Year)                       4 years 2 months 19 days
Risk free interest rate                       2.34%
Expected volatility                       30.95%
Expected life (Year)                       6 years
Dividend yield                       0.42%
Fair value at grant date (in dollars per share)                       $ 15.63
Number of options granted (in shares)               155,780        
Options outstanding at December 31, 2024 (in shares)                       100,147
Number exercisable at December 31, 2024 (in shares)                       100,147
Exercise price (in dollars per share)                       $ 47.58
Risk free interest rate                       2.34%
Expected volatility                       30.95%
Expected life (Year)                       6 years
Dividend yield                       0.42%
Fair value at grant date (in dollars per share)                       $ 15.63
Turning Point Brands Inc 2015 Equity Incentive Plan [Member] | Awards Granted 20200318 [Member]                        
Number of options granted (in shares)             155,000          
Options outstanding at December 31, 2024 (in shares)                       62,207
Number exercisable at December 31, 2024 (in shares)                       62,207
Exercise price (in dollars per share)                       $ 14.85
Remaining lives (Year)                       5 years 2 months 19 days
Risk free interest rate                       0.79%
Expected volatility                       35.72%
Expected life (Year)                       6 years
Dividend yield                       1.49%
Fair value at grant date (in dollars per share)                       $ 4.41
Number of options granted (in shares)             155,000          
Options outstanding at December 31, 2024 (in shares)                       62,207
Number exercisable at December 31, 2024 (in shares)                       62,207
Exercise price (in dollars per share)                       $ 14.85
Risk free interest rate                       0.79%
Expected volatility                       35.72%
Expected life (Year)                       6 years
Dividend yield                       1.49%
Fair value at grant date (in dollars per share)                       $ 4.41
Turning Point Brands Inc 2015 Equity Incentive Plan [Member] | Awards Granted 20210218 [Member]                        
Number of options granted (in shares)           100,000            
Options outstanding at December 31, 2024 (in shares)                       68,900
Number exercisable at December 31, 2024 (in shares)                       68,900
Exercise price (in dollars per share)                       $ 51.75
Remaining lives (Year)                       6 years 1 month 20 days
Risk free interest rate                       0.56%
Expected volatility                       28.69%
Expected life (Year)                       6 years
Dividend yield                       0.55%
Fair value at grant date (in dollars per share)                       $ 13.77
Number of options granted (in shares)           100,000            
Options outstanding at December 31, 2024 (in shares)                       68,900
Number exercisable at December 31, 2024 (in shares)                       68,900
Exercise price (in dollars per share)                       $ 51.75
Risk free interest rate                       0.56%
Expected volatility                       28.69%
Expected life (Year)                       6 years
Dividend yield                       0.55%
Fair value at grant date (in dollars per share)                       $ 13.77
v3.25.0.1
Note 18 - Share Incentive Plans - Summary of Performance Shares (Details) - Performance Shares [Member] - $ / shares
 12 Months Ended
Apr. 01, 2024
Mar. 01, 2024
May 04, 2023
Mar. 14, 2022
Feb. 18, 2021
Mar. 18, 2020
Dec. 31, 2024
PRSUs outstanding at December 31, 2024 (in shares)             372,218
Awards Granted 20200318 [Member]              
Number of PRSUs granted (in shares)           94,000  
PRSUs outstanding at December 31, 2024 (in shares)             70,910
Fair value as of grant date (in dollars per share)           $ 14.85  
Awards Granted 20210218 [Member]              
Number of PRSUs granted (in shares)         100,000    
PRSUs outstanding at December 31, 2024 (in shares)             69,190
Fair value as of grant date (in dollars per share)         $ 51.75    
Remaining lives (Year)             1 year
Awards Granted 20220314 [Member]              
Number of PRSUs granted (in shares)       49,996      
PRSUs outstanding at December 31, 2024 (in shares)             33,049
Fair value as of grant date (in dollars per share)       $ 30.46      
Remaining lives (Year)             2 years
Awards Granted 20230504 [Member]              
Number of PRSUs granted (in shares)     133,578        
PRSUs outstanding at December 31, 2024 (in shares)             93,313
Fair value as of grant date (in dollars per share)     $ 22.25        
Remaining lives (Year)             1 year
Awards Granted 20240301 [Member]              
Number of PRSUs granted (in shares)   111,321          
PRSUs outstanding at December 31, 2024 (in shares)             97,514
Fair value as of grant date (in dollars per share)   $ 26.52          
Remaining lives (Year)             2 years
Awards Granted 20240401 [Member]              
Number of PRSUs granted (in shares) 8,242            
PRSUs outstanding at December 31, 2024 (in shares)             8,242
Fair value as of grant date (in dollars per share) $ 29.12            
Remaining lives (Year)             2 years
v3.25.0.1
Note 18 - Share Incentive Plans - Summary of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares
 12 Months Ended
Apr. 01, 2024
Mar. 11, 2024
Mar. 01, 2024
May 05, 2023
Apr. 29, 2022
Mar. 14, 2022
Dec. 31, 2024
PRSUs outstanding at December 31, 2024 (in shares)             222,007
Awards One Granted 20220314 [Member]              
Number of PRSUs granted (in shares)           50,004  
PRSUs outstanding at December 31, 2024 (in shares)             32,091
Fair value as of grant date (in dollars per share)           $ 30.46  
Remaining lives (Year)             2 years
Awards Two Granted 20220314 [Member]              
Number of PRSUs granted (in shares)           28,726  
PRSUs outstanding at December 31, 2024 (in shares)             9,481
Fair value as of grant date (in dollars per share)           $ 30.46  
Awards Granted 20220429 [Member]              
Number of PRSUs granted (in shares)         4,522    
PRSUs outstanding at December 31, 2024 (in shares)             1,913
Fair value as of grant date (in dollars per share)         $ 31.39    
Remaining lives (Year)             2 years
Awards One Granted 20230505 [Member]              
Number of PRSUs granted (in shares)       130,873      
PRSUs outstanding at December 31, 2024 (in shares)             69,114
Fair value as of grant date (in dollars per share)       $ 22.25      
Remaining lives (Year)             1 year 3 months
Awards Granted 20240301 [Member]              
Number of PRSUs granted (in shares)     105,257        
PRSUs outstanding at December 31, 2024 (in shares)             87,008
Fair value as of grant date (in dollars per share)     $ 26.52        
Remaining lives (Year)             2 years 3 months
Awards Granted 20240401 [Member]              
Number of PRSUs granted (in shares)   5,495          
PRSUs outstanding at December 31, 2024 (in shares)             5,495
Fair value as of grant date (in dollars per share)   $ 29.12          
Remaining lives (Year)             2 years 3 months
Awards Granted 20240508 [Member]              
Number of PRSUs granted (in shares) 16,905            
PRSUs outstanding at December 31, 2024 (in shares)             16,905
Fair value as of grant date (in dollars per share) $ 33.13            
Remaining lives (Year)             3 months
v3.25.0.1
Note 19 - Contingencies (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loss Contingency, Receivable, Current $ 0 $ 4,000
Positive Outcome of Litigation [Member] | Other Current Assets [Member]    
Loss Contingency, Receivable, Current   $ 4,000
v3.25.0.1
Note 20 - Earnings Per Share (Details Textual) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Convertible Debt Securities [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)     3,208,172
Share-Based Payment Arrangement, Option [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 200,000 200,000 200,000
v3.25.0.1
Note 20 - Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income from continuing operations less non-controlling interest                 $ 47,326 $ 38,747 $ 31,570
Income from continuing operations less non-controlling interest, per share (in dollars per share) $ 0.55 $ 0.71 $ 0.74 $ 0.68 $ 0.6 $ 0.64 $ 0.54 $ 0.42 $ 2.67 $ 2.2 $ 1.76
Loss from discontinued operations, net of tax                 $ (7,517) $ (285) $ (19,929)
Loss from discontinued operations, net of tax, per share (in dollars per share) $ (0.41) $ (0.01) $ (0) $ (0) $ (0.03) $ (0.02) $ 0.02 $ 0.01 $ (0.43) $ (0.01) $ (1.11)
Net income attributable to Turning Point Brands, Inc. $ 2,416 $ 12,376 $ 13,007 $ 12,010 $ 10,109 $ 10,831 $ 9,925 $ 7,597 $ 39,809 $ 38,462 $ 11,641
Basic earnings per share (in dollars per share) $ 0.14 $ 0.7 $ 0.74 $ 0.68 $ 0.57 $ 0.62 $ 0.56 $ 0.43 $ 2.24 $ 2.19 $ 0.65
Basic (in shares)                 17,734,239 17,578,270 17,899,794
Interest expense related to Convertible Senior Notes, net of tax                 $ 1,597 $ 2,667 $ 0
Diluted income from continuing operations                 $ 48,923 $ 41,414 $ 31,570
Diluted income from continuing operations, per share (in dollars per share) 0.53 0.69 0.68 0.63 0.56 0.59 0.51 0.4 $ 2.53 $ 2.02 $ 1.75
Loss from discontinued operations, net of tax, diluted, per share (in dollars per share) (0.4) (0.01) (0) (0) (0.03) (0.01) 0.02 0.01 $ (0.39) $ (0.01) $ (1.11)
Diluted net income                 $ 41,406 $ 41,129 $ 11,641
Diluted net income, per share (in dollars per share) $ 0.13 $ 0.68 $ 0.68 $ 0.63 $ 0.53 $ 0.58 $ 0.53 $ 0.41 $ 2.14 $ 2.01 $ 0.64
Convertible Senior Notes (1) (in shares) [1]                 1,192,597 2,533,201 0
Stock options and restricted stock units (2) (in shares) [2]                 435,970 355,935 155,221
Weighted Average Number of Shares Outstanding, Diluted                 19,362,806 20,467,406 18,055,015
[1] For 2022, the effect of 3,208,172 shares issuable upon conversion of the Convertible Senior Notes were excluded from the diluted net income per share calculation because the effect would have been antidilutive.
[2] There were 0.2 million, 0.2 million and 0.2 million outstanding stock options not included in the computation of diluted earnings per share for the years ended December 31, 2024, 2023 and 2022, respectively, because the effect would have been antidilutive.
v3.25.0.1
Note 21 - Segment Information (Details Textual)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Number of Reportable Segments 3 2    
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]        
Selling, General and Administrative Expense, Premarket Tobacco Product Application   $ 3.6 $ 2.1 $ 4.6
Customer Concentration Risk [Member] | Revenue Benchmark [Member]        
Concentration Risk, Number of Significant Customers   1 0 0
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member]        
Concentration Risk, Percentage   10.20%    
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member] | Stokers Products [Member]        
Concentration Risk, Percentage   54.00%    
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member] | Zig Zag Products [Member]        
Concentration Risk, Percentage   46.00%    
v3.25.0.1
Note 21 - Segment Information - Summary of Reportable Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net sales $ 93,667 $ 90,704 $ 93,225 $ 83,064 $ 83,067 $ 83,670 $ 82,778 $ 75,549 $ 360,660 [1] $ 325,064 [1] $ 321,229 [1]
Zig-Zag products, cost of sales                 159,095 142,122 143,399
Zig-Zag products, gross profit 52,418 50,395 50,398 48,354 47,380 47,317 46,390 41,855 201,565 182,942 177,830
Zig-Zag products, operating income (loss) 17,885 $ 20,805 $ 22,872 $ 19,270 24,597 $ 20,697 $ 20,085 $ 17,581 80,832 82,960 74,008
Interest expense, net                 13,983 14,645 19,524
Investment loss                 1,893 11,914 13,303
Other income                 0 (4,000) 0
Gain on extinguishment of debt                 0 (1,664) (885)
Income from continuing operations before income taxes                 64,956 62,065 42,066
Assets 493,353       569,369       493,353 569,369  
Corporate unallocated, assets 493,353       569,369       493,353 569,369  
Operating Segments [Member]                      
Net sales                 360,660 325,064 321,229
Zig-Zag products, cost of sales                 159,095 142,122 143,399
Zig-Zag products, gross profit                 201,565 182,942 177,830
Zig-Zag products, other segment items [2]                 66,596 52,454 51,157
Zig-Zag products, operating income (loss)                 134,969 130,488 126,673
Zig-Zag products, capital expenditures                 4,613 5,707 7,685
Zig-Zag products, depreciation and amortization                 5,662 4,118 3,384
Assets held for sale                 15,329 26,998  
Operating Segments [Member] | Zig Zag Products [Member]                      
Net sales                 192,394 180,455 190,403
Zig-Zag products, cost of sales                 85,809 79,400 83,827
Zig-Zag products, gross profit                 106,585 101,055 106,576
Zig-Zag products, other segment items [2]                 39,888 32,775 33,234
Zig-Zag products, operating income (loss)                 66,697 68,280 73,342
Zig-Zag products, capital expenditures                 2,342 1,112 4,641
Zig-Zag products, depreciation and amortization                 1,469 1,077 412
Assets 224,052       177,135       224,052 177,135  
Corporate unallocated, assets 224,052       177,135       224,052 177,135  
Operating Segments [Member] | Stokers Products [Member]                      
Net sales                 168,266 144,609 130,826
Zig-Zag products, cost of sales                 73,286 62,722 59,572
Zig-Zag products, gross profit                 94,980 81,887 71,254
Zig-Zag products, other segment items [2]                 26,708 19,679 17,923
Zig-Zag products, operating income (loss)                 68,272 62,208 53,331
Zig-Zag products, capital expenditures                 2,271 4,595 3,044
Zig-Zag products, depreciation and amortization                 4,193 3,041 2,972
Assets 197,038       175,013       197,038 175,013  
Corporate unallocated, assets 197,038       175,013       197,038 175,013  
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]                      
Zig-Zag products, operating income (loss) [3],[4]                 (54,137) (47,528) (52,665)
Assets [5] 56,934       190,223       56,934 190,223  
Corporate unallocated, assets [5] $ 56,934       $ 190,223       56,934 190,223  
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member]                      
Interest expense, net                 $ 13,983 $ 14,645 $ 19,524
[1] Net sales include excise taxes billed to customers of $0.8 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively. Net sales include excise taxes billed to customer of $2.3 million and $3.4 million for the nine months ended September 30, 2024 and 2023, respectively.
[2] Includes primarily selling and marketing costs
[3] Includes corporate costs that are not allocated to any of the three reportable segments
[4] Includes costs related to PMTA of $3.6 million, $2.1 million and $4.6 million in 2024, 2023, and 2022, respectively.
[5] Includes assets not assigned to the two reportable segments. All goodwill has been allocated to the reportable segments.
v3.25.0.1
Note 21 - Segment Information - Disaggregation of Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net sales $ 93,667 $ 90,704 $ 93,225 $ 83,064 $ 83,067 $ 83,670 $ 82,778 $ 75,549 $ 360,660 [1] $ 325,064 [1] $ 321,229 [1]
UNITED STATES                      
Net sales                 330,690 294,296 288,874
Non-US [Member]                      
Net sales                 $ 29,970 $ 30,768 $ 32,355
[1] Net sales include excise taxes billed to customers of $0.8 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively. Net sales include excise taxes billed to customer of $2.3 million and $3.4 million for the nine months ended September 30, 2024 and 2023, respectively.
v3.25.0.1
Note 22 - Dividends and Share Repurchase (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Nov. 06, 2024
Feb. 24, 2022
Oct. 25, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Feb. 25, 2020
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)       $ 0.28 $ 0.26 $ 0.24  
Payments of Ordinary Dividends, Common Stock       $ 4,905 $ 4,497 $ 4,250  
Share Repurchase Program, Authorized, Amount $ 100,000     $ 100,000     $ 50,000
Stock Repurchase Program, Increase in Authorized Amount $ 77,900 $ 24,600 $ 30,700        
Treasury Stock, Shares, Acquired (in shares)       154,945 0 1,021,052  
Treasury Stock, Value, Acquired, Cost Method       $ 5,051   $ 29,224  
Shares Acquired, Average Cost Per Share (in dollars per share)       $ 32.6      
v3.25.0.1
Note 23-Selected Quarterly Financial Information (Unaudited) - Quarterly Operating Results (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net sales $ 93,667 $ 90,704 $ 93,225 $ 83,064 $ 83,067 $ 83,670 $ 82,778 $ 75,549 $ 360,660 [1] $ 325,064 [1] $ 321,229 [1]
Gross profit 52,418 50,395 50,398 48,354 47,380 47,317 46,390 41,855 201,565 182,942 177,830
Operating income 17,885 20,805 22,872 19,270 24,597 20,697 20,085 17,581 80,832 82,960 74,008
Income from continuing operations 10,360 12,525 12,961 12,181 10,345 11,211 9,363 7,147 48,027 38,066 31,086
(Loss) Income from discontinued operations, net of tax (7,309) (165) (41) (2) (480) (345) 345 195 (7,517) (285) (19,929)
Net income 3,051 12,360 12,920 12,179 9,865 10,866 9,708 7,342 40,510 37,781 11,157
Net income (loss) attributable to non-controlling interests 635 (16) (87) 169 (244) 35 (217) (255) 701 (681) (484)
Net Income attributable to Turning Point Brands, Inc. $ 2,416 $ 12,376 $ 13,007 $ 12,010 $ 10,109 $ 10,831 $ 9,925 $ 7,597 $ 39,809 $ 38,462 $ 11,641
Continuing operations (in dollars per share) $ 0.55 $ 0.71 $ 0.74 $ 0.68 $ 0.6 $ 0.64 $ 0.54 $ 0.42 $ 2.67 $ 2.2 $ 1.76
Discontinued operations (in dollars per share) (0.41) (0.01) (0) (0) (0.03) (0.02) 0.02 0.01 (0.43) (0.01) (1.11)
Basic earnings per share (in dollars per share) 0.14 0.7 0.74 0.68 0.57 0.62 0.56 0.43 2.24 2.19 0.65
Continuing operations (in dollars per share) 0.53 0.69 0.68 0.63 0.56 0.59 0.51 0.4 2.53 2.02 1.75
Discontinued operations (in dollars per share) (0.4) (0.01) (0) (0) (0.03) (0.01) 0.02 0.01 (0.39) (0.01) (1.11)
Diluted earnings per share (in dollars per share) $ 0.13 $ 0.68 $ 0.68 $ 0.63 $ 0.53 $ 0.58 $ 0.53 $ 0.41 $ 2.14 $ 2.01 $ 0.64
[1] Net sales include excise taxes billed to customers of $0.8 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively. Net sales include excise taxes billed to customer of $2.3 million and $3.4 million for the nine months ended September 30, 2024 and 2023, respectively.
v3.25.0.1
Note 24 - Subsequent Events (Details Textual) - USD ($)
$ in Millions
Feb. 25, 2025
Feb. 19, 2025
Jan. 25, 2025
Jan. 02, 2025
Dec. 31, 2024
Feb. 11, 2021
Senior Secured Notes 2026 [Member]            
Debt Instrument, Face Amount           $ 250
Debt Instrument, Interest Rate, Stated Percentage         5.625%  
General Wireless Operations Inc [Member]            
Equity Method Investment, Ownership Percentage         49.00%  
South Beach Brands LLC [Member]            
Percentage of Subsidiary Contributed by Parent to Joint Venture         100.00%  
Subsequent Event [Member] | The 2032 Senior Secured Notes [Member]            
Debt Instrument, Face Amount   $ 300        
Debt Instrument, Interest Rate, Stated Percentage   7.625%        
Proceeds from Issuance of Long-Term Debt   $ 294        
Subsequent Event [Member] | Senior Secured Notes 2026 [Member]            
Repayments of Long-Term Debt $ 250          
Debt Instrument, Redemption Price, Percentage 100.00%          
Subsequent Event [Member] | General Wireless Operations Inc [Member]            
Equity Method Investment, Ownership Percentage     49.00% 49.00%    
Equity Method Investment, Option to Purchase Interest, Period (Year)     15 years 15 years    
Equity Method Investment, Option, Price     $ 22 $ 22    
Subsequent Event [Member] | General Wireless Operations Inc [Member] | Standard General, LP [Member]            
Equity Method Investment, Ownership Percentage     51.00% 51.00%    
Subsequent Event [Member] | South Beach Brands LLC [Member]            
Percentage of Subsidiary Contributed by Parent to Joint Venture     100.00% 100.00%