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NATURE OF OPERATIONS - IPO and Corporate Conversion (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended
	Apr. 17, 2019	Jan. 01, 2018	Jan. 31, 2019	Dec. 31, 2018	Mar. 31, 2020	Mar. 31, 2019
Nature of operations
Shares issued upon incorporation (in shares)		20,000,000
Offering costs						$ 505
Shares repurchased	300,000				62,943
Share repurchase price (in dollars per share)	$ 10.20				$ 10.83
Stock Repurchase Program, Authorized Amount					$ 10,000
IPO
Nature of operations
Shares issued from sale of common stock			600,000	4,000,000
Share price (in dollars per share)			$ 12.00	$ 12.00
Offering costs			$ 505	$ 4,504
Proceeds from IPO net of underwriting discounts and offering expenses			$ 6,695	$ 43,492

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 3,717	$ 1,724
Accounts receivable, net of allowance for doubtful accounts	3,171	1,767
Current portion of consumer loans	6,138	5,994
Current portion of notes receivable from mobile home parks (“MHP”)	9,454	10,969
Current portion of other notes receivable	545	428
Inventories	31,523	27,228
Prepaid expenses and other current assets	3,429	4,857
Total current assets	57,977	52,967
Property, plant and equipment, net	21,124	21,038
Consumer loans, net of deferred financing fees and allowance for loan losses	99,448	99,048
Notes receivable from mobile home parks (“MHP”)	93,827	81,375
Other notes receivable, net of allowance for loan losses	13,064	13,050
Other assets	4,722	4,212
Inventory non-current	11,456	11,930
Total assets	301,618	283,620
Current liabilities:
Accounts payable	3,464	5,168
Accrued liabilities	11,818	8,808
Customer deposits	2,228	1,567
Escrow liability	6,964	7,530
Line of credit		28,860
Total current liabilities	24,474	51,933
Long-term liabilities:
Lines of credit	39,027	2,001
Deferred income taxes	1,766	1,766
Dealer incentive liability	5,522	5,531
Total liabilities	70,789	61,231
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $.001 par value, 10,000,000 shares authorized: issued -0-
Common stock, $.001 par value, 90,000,000 shares authorized; 24,637,222 and 24,620,079 issued and 24,274,279 and 24,320,079 outstanding at March 31, 2020 and December 31, 2019, respectively	25	25
Treasury stock at cost, 362,943 and 300,000 shares at March 31, 2020 and December 31, 2019, respectively	(3,742)	(3,060)
Additional paid-in-capital	175,164	175,067
Retained earnings	59,382	50,357
Total stockholders' equity	230,829	222,389
Total liabilities and stockholders' equity	$ 301,618	$ 283,620

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net income	$ 9,025	$ 7,213
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	281	241
Provision for loan loss—consumer loans	215	406
Share based payment expense	97	234
Changes in operating assets and liabilities:
Accounts receivable	(1,405)	(142)
Consumer loans originations	(3,174)	(5,053)
Consumer loans principal collections	2,297	2,847
Notes receivable MHP originations	(17,205)	(12,849)
Notes receivable MHP principal collections	6,267	8,238
Inventories	(3,821)	1,015
Prepaid expenses and other current assets	1,428	(390)
Other assets	(513)	(467)
Accounts payable	(1,703)	888
Accrued liabilities	3,012	1,153
Customer deposits	661	52
Dealer incentive liability	(9)	5
Net cash provided by (used in) operating activities	(4,547)	3,391
Investing activities:
Purchases of property, plant and equipment	(366)	(757)
Issuance of notes receivable	(215)	(1,400)
Notes receivable collections	85	101
Purchases of consumer loans	(191)	(101)
Collections from purchased consumer loans	310	172
Net cash used in investing activities	(377)	(1,985)
Financing activities:
Proceeds from sale of over-allotment common stock in initial public offering		7,200
Offering cost for over-allotment of initial public offering		(505)
Treasury stock purchase	(682)
Escrow liability, net	(567)	(626)
Principal payments on note payable		(459)
Proceeds from lines of credit	18,430	1,482
Payments on lines of credit	(10,264)	(7,999)
Net cash provided by (used in) financing activities	6,917	(907)
Net increase in cash and cash equivalents	1,993	499
Cash and cash equivalents at beginning of period	1,724	2,599
Cash and cash equivalents at end of period	3,717	3,098
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 301	$ 227

DEBT - Notes Payable (Details) - USD ($) $ in Thousands			3 Months Ended	14 Months Ended
DEBT - Notes Payable (Details) - USD ($) $ in Thousands	Apr. 07, 2018	May 24, 2016	Mar. 31, 2019	Apr. 07, 2018	Feb. 02, 2017	Dec. 31, 2016	Apr. 07, 2011
Promissory note with Woodhaven Bank
Notes Payable
Face amount							$ 4,830
Interest rate	4.25%			4.25%	3.85%
Frequency of periodic payment	monthly
Principal and interest payments	$ 30
Interest expense			$ 38
Promissory note with Woodhaven Bank \| Prime Rate
Notes Payable
Spread rate				0.60%
Promissory note with Eagle One LLC
Notes Payable
Face amount		$ 515
Interest rate		6.00%
Frequency of periodic payment		monthly
Principal and interest payments		$ 6
Interest expense			$ 1
PILOT Agreement
Notes Payable
Maximum borrowing capacity						$ 10,000
Interest rate						6.00%

NATURE OF OPERATIONS

3 Months Ended

Mar. 31, 2020

NATURE OF OPERATIONS

NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

Legacy Housing Corporation (the “Company”) was formed on January 1, 2018 as a Delaware corporation through a corporate conversion of Legacy Housing, Ltd. (the “Partnership”), a Texas limited partnership formed in May 2005. Effective December 31, 2019, the Company reincorporated from a Delaware corporation to a Texas corporation. The Company is headquartered in Bedford, Texas.

The Company (1) manufactures and provides for the transport of mobile homes, (2) provides wholesale financing to dealers and mobile home parks, (3) provides retail financing to consumers and (4) is involved in financing and developing new manufactured home communities. The Company manufactures its mobile homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia. The Company relies on a network of dealers to market and sell its mobile homes. The Company also sells homes directly to dealers and mobile home parks.

In December 2018, the Company sold 4,000,000 shares of its common stock through an initial public offering (“IPO”) at $12.00 per share. Proceeds from the IPO, net of $4,504 of underwriting discounts and offering expenses paid by the Company, were $43,492. In January 2019, the Company sold an additional 600,000 shares of its common stock as part of the IPO at $12.00 per share. Proceeds from the January 2019 issuance, net of $505 of underwriting discounts and offering expenses paid by the Company, were $6,695.

On April 17, 2019, the Company purchased 300,000 shares of its common stock at the price of $10.20 per share, pursuant to the Company’s repurchase program. During the first quarter of 2020, the Company purchased 62,943 shares of its common stock at an average price of $10.83 per share, pursuant to the Company’s repurchase program. Under the repurchase program, the Company may purchase up to $10,000 of its common stock. Share purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice.

Corporate Conversion

Effective January 1, 2018, the Partnership converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Legacy Housing Corporation. In order to consummate the corporate conversion completed on January 1, 2018, a certificate of conversion was filed with the Secretary of State of the State of Delaware and with the Secretary of State of the State of Texas. Holders of partnership interests in Legacy Housing, Ltd. received an initial allocation, on a proportional basis, of 20,000,000 shares of common stock of Legacy Housing Corporation.

Following the corporate conversion, Legacy Housing Corporation continues to hold all property and assets of Legacy Housing, Ltd. and all of the debts and obligations of Legacy Housing, Ltd. On the effective date of the corporate conversion, the officers of Legacy Housing, Ltd. became the officers of Legacy Housing Corporation. As a result of the corporate conversion, the Company is now a federal corporate taxpayer.

Basis of Presentation

The accompanying unaudited interim condensed financial statements as of March 31, 2020 and for the three months ended March 31, 2020 and 2019, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") as required by Regulation S-X, Rule 8-03. In the opinion of management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or any other period. The accompanying consolidated balance sheet as of December 31, 2019 was derived from audited financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2019 (the "Form 10-K"). The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K.

Use of Estimates

The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Material estimates that are susceptible to significant change in the near term primarily relate to the determination of accounts receivable, consumer loans and notes receivable, inventory obsolescence, income taxes, fair value of financial instruments and contingent liabilities. Actual results could differ from these estimates.

Revenue Recognition

Product sales primarily consist of sales of mobile homes to consumers and mobile home parks through various sales channels, which include Direct Sales, Commercial Sales, Consignment Sales, and Retail Store Sales. Direct Sales include homes sold directly to independent retailers or customers that are not financed by the Company and are not sold under a consignment arrangement. These types of homes are generally paid for prior to shipment. Commercial Sales include homes sold to mobile home parks under commercial loan programs or paid for upfront. The Company provides floor plan financing for independent retailers, which takes the form of a consignment arrangement. Consignment Sales are considered sales of consigned homes from independent dealers to individual customers. Retail Store Sales are homes sold through Company-owned retail locations. Consignment Sales and Retail Sales of homes may be financed by the Company, by a third party, or in paid in cash.

Revenue from product sales is recognized at a point in time when the performance obligation under the terms of a contract with our customers is satisfied which typically occurs upon delivery and transfer of title of the home, as this depicts when control of the promised good is transferred to our customers. For financed sales by the Company, the individual customer enters into a sales and financing contract and is required to make a down payment. These financed sales contain a significant financing component and any interest income is separately recorded in the statement of operations.

Revenue is measured as the amount of consideration expected to be received in exchange for transferring the homes to the customers. Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue.

The Company made an accounting policy election to account for any shipping and handling costs that occur after the transfer of control as a fulfillment cost that is accrued when control is transferred. Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less. Contract costs, which include commissions incurred related to the sale of homes, are expensed at the point-in-time when the related revenue is recognized.

For the three months ended March 31, 2020 and 2019, sales to an independent third-party and its affiliates accounted for $11,986 or 37.2% and $4,803 or 15.9% of our product sales, respectively.

For the three months ended March 31, 2020 and 2019, total cost of product sales included $4,907 and $4,327 of costs, mainly relating to up front dealer commission and reimbursed dealer expenses for consignment sales and certain other similar costs incurred for retail store and commercial sales.

Other revenue consists of consignment fees, service fees and other miscellaneous income. Consignment fees are charged to independent retailers on a monthly basis for homes held by the independent retailers pursuant to a consignment arrangement until the home is sold to an individual customer. Consignment fees are determined as a percentage of the home’s wholesale price to the independent dealer. Revenue recognition for consignment fees are recognized over time using the output method as it provides a faithful depiction of the Company’s performance toward completion of the performance obligation under the contract and the value transferred to the independent retailer for the time the home is held under consignment. Revenue for service fees and miscellaneous income is recognized at a point in time when the performance obligation is satisfied.

Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by source of the revenue for the three months ended March 31, 2020 and 2019:


	Three months ended
	March 31,
	2020		2019
Product sales:
Direct sales	$	2,225	$	4,457
Commercial sales		15,791		12,503
Consignment sales		8,840		10,037
Retail store sales		3,182		3,341
Other (1)		1,157		1,212
Total product sales		31,195		31,550
Consumer and MHP loans interest:
Interest - consumer installment notes		4,149		4,130
Interest - MHP notes		2,275		1,400
Total consumer and MHP loans interest		6,424		5,530
Other		654		874
Total net revenue	$	38,273	$	37,954

(1)

Other product sales revenue from ancillary products and services including parts, freight and other services

Share-Based Compensation

The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation. Share-based compensation expense is recognized based on the award’s estimated grant date fair value in order to recognize compensation cost for those shares expected to vest. The Company has elected to record forfeitures as they occur. Compensation cost is recognized on a straight-line basis over the vesting period of the awards and adjusted as forfeitures occur.

The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each restricted stock unit (the”RSU”) is calculated based on the closing price of the Company’s common stock on the grant date.

The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon securities that correspond to the expected life of the award. As a recently formed public entity with a small public float and limited trading of its common shares on the NASDAQ Global Market, it was not practicable for the Company to estimate the volatility of its common shares; therefore, management estimated volatility based on the historical volatilities of a small group of companies considered as close to comparable to the Company as available, all equally weighted, over the expected life of the option. Management concluded that this group is more characteristic of the Company’s business than a broad industry index. The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience. The Company does not expect to pay dividends on its common stock.

Accounts Receivable

Included in accounts receivable are receivables from direct sales of mobile homes and sales of parts and supplies to customers, consignment fees and interest receivables.

Accounts receivables are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines the allowance by considering several factors, including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible. At March 31, 2020 and December 31, 2019, the allowance for doubtful accounts totaled $572 and $457, respectively.

Recent Accounting Pronouncements

The Company has elected to use longer phase‑in periods for the adoption of new or revised financial accounting standards under the JOBS Act as an emerging growth company.

In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and an asset representing its right to use the underlying asset for the lease term. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous requirements. The Company plans to use longer phase‑in period for adoption and accordingly this ASU is effective for the Company’s fiscal year beginning January 1, 2021. Modified retrospective application and early adoption is permitted. The Company expects that the adoption of this standard will result in a material increase to assets and liabilities on the balance sheet but will not have a material impact on the statement of operations. While the Company is continuing to assess all the effects of adoption, it currently believes the most significant effects relate to (i) the recognition of new right-of-use assets and lease liabilities on its balance sheet for its property and equipment operating leases and (ii) providing significant new disclosures about its leasing activities.

In June 2016, the FASB issued an accounting standards update ASU 2016‑13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write‑down and affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company plans to use longer phase‑in period for adoption and accordingly this ASU is effective for the Company’s fiscal year beginning January 1, 2023. The Company is continuing to evaluate the impact of the adoption of this ASU and is uncertain of the impact on the financial statements and disclosures at this point in time.

From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s Financial Statements upon adoption.

OTHER ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
OTHER ASSETS
Leased property	$ 2,589	$ 2,067
Prepaid rent	293	299
Repossessed homes	1,840	1,846
Total	4,722	$ 4,212
Depreciation expense on leased property	$ 33

ACCRUED LIABILITIES

3 Months Ended

Mar. 31, 2020

ACCRUED LIABILITIES.

ACCRUED LIABILITIES

8. ACCRUED LIABILITIES

Accrued liabilities consisted of the following at March 31, 2020 and December 31, 2019:


	As of March 31,		As of December 31,
	2020		2019
Warranty liability	$	3,093	$	3,078
Litigation reserve		283		325
Federal and state taxes payable		4,140		1,761
Accrued expenses & other accrued liabilities		4,302		3,644
Total	$	11,818	$	8,808

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Apr. 30, 2020	Mar. 31, 2020
SUBSEQUENT EVENTS
Value of shares authorized for repurchase		$ 10,000
Subsequent event
SUBSEQUENT EVENTS
Number of shares purchased	82,035
Share price (in dollars per share)	$ 8.95
Value of shares authorized for repurchase	$ 10,000

SHARE-BASED COMPENSATION - Plan (Details) - USD ($) $ in Thousands				3 Months Ended
	Mar. 27, 2020	Aug. 02, 2019	Feb. 07, 2019	Mar. 31, 2020
SHARE-BASED COMPENSATION
Number of shares may be issued to employees, directors, consultants and nonemployee service providers in the form of stock options, stock and stock appreciation rights				10,000,000
Number of shares available for grant				9,800,000
Stock options
SHARE-BASED COMPENSATION
Contractual life				10 years
Senior management \| Restricted shares
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)		39,526	120,000
Grant date fair value		$ 496	$ 1,636
Vesting percentage		20.00%	14.30%
Senior management \| Stock options
SHARE-BASED COMPENSATION
Vesting percentage			12.50%
Independent directors \| Restricted shares
SHARE-BASED COMPENSATION
Restricted shares granted (in shares)	1,903		2,936

NATURE OF OPERATIONS (Policies)

3 Months Ended

Mar. 31, 2020

NATURE OF OPERATIONS

Basis of Presentation

Use of Estimates

Revenue Recognition

For the three months ended March 31, 2020 and 2019, sales to an independent third-party and its affiliates accounted for $11,986 or 37.2% and $4,803 or 15.9% of our product sales, respectively.

Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by source of the revenue for the three months ended March 31, 2020 and 2019:


	Three months ended
	March 31,
	2020		2019
Product sales:
Direct sales	$	2,225	$	4,457
Commercial sales		15,791		12,503
Consignment sales		8,840		10,037
Retail store sales		3,182		3,341
Other (1)		1,157		1,212
Total product sales		31,195		31,550
Consumer and MHP loans interest:
Interest - consumer installment notes		4,149		4,130
Interest - MHP notes		2,275		1,400
Total consumer and MHP loans interest		6,424		5,530
Other		654		874
Total net revenue	$	38,273	$	37,954

(1)

Other product sales revenue from ancillary products and services including parts, freight and other services

Share-based Compensation

Share-Based Compensation

Accounts Receivable

Included in accounts receivable are receivables from direct sales of mobile homes and sales of parts and supplies to customers, consignment fees and interest receivables.

Recent Accounting Pronouncements

The Company has elected to use longer phase‑in periods for the adoption of new or revised financial accounting standards under the JOBS Act as an emerging growth company.

Fair Value Measurements

The Company accounts for its investments and derivative instruments in accordance with ASC 820‑10, Fair Value Measurement, which among other things provides the 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 I measurement) and the lowest priority to unobservable inputs (Level III measurements). The three levels of fair value hierarchy under ASC 820‑10, Fair Value Measurement, are as follows:

Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include: (1) Quoted prices for similar assets or liabilities in active markets; (2) Quoted prices for identical or similar assets or liabilities in inactive markets; (3) Inputs other than quoted prices that are observable; (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.

Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The Company uses derivatives to manage risks related to interest rate movements. The Company does not enter into derivative contracts for speculative purposes. Interest rate swap contracts are recognized as assets or liabilities on the balance sheets and are measured at fair value. The fair value was calculated and provided by the lender, a Level II valuation technique. Management reviewed the fair values for the instruments as provided by the lender and determined the related asset and liability to be an accurate estimate of future gains and losses to the Company. The fair values of the interest rate swap are assets and valued at $7 and $3 as of March 31, 2020 and December 31, 2019, respectively.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, lines of credit, notes payable, and dealer portion of consumer loans.

The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short‑term maturities or expected settlement dates of these instruments. This is considered a Level I valuation technique. The MHP Notes, other notes, lines of credit, and notes payable have variable interest rates that reflect market rates and their fair value approximates their carrying value. This is considered a Level II valuation technique. The Company also assessed the fair value of the consumer loans receivable based on the discounted value of the remaining principal and interest cash flows. The Company determined that the fair value of the consumer loan portfolio was approximately $125,000 compared to the book value of $105,714 as of March 31, 2020, and a fair value of approximately $119,000 compared to the book value of $105,042 as of December 31, 2019. This is a Level III valuation technique.

- Definition

Disclosure of accounting policy for trade and other accounts receivables. This disclosure may include the basis at which such receivables are carried in the entity's statements of financial position (for example, net realizable value), how the entity determines the level of its allowance for doubtful accounts, when impairments, charge-offs or recoveries are recognized, and the entity's income recognition policies for such receivables, including its treatment of related fees and costs, its treatment of premiums, discounts or unearned income, when accrual of interest is discontinued, how the entity records payments received on nonaccrual receivables and its policy for resuming accrual of interest on such receivables. If the enterprise holds a large number of similar loans, disclosure may include the accounting policy for the anticipation of prepayments and significant assumptions underlying prepayment estimates for amortization of premiums, discounts, and nonrefundable fees and costs.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 15
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(5))
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5093-111524

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(9))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=84159169&loc=d3e10133-111534

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(4))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

+ Details

NOTES RECEIVABLE FROM MOBILE HOME PARKS (MHP Notes) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Notes Receivable from Mobile Home Parks
Notes Receivable
Charge offs	$ 0	$ 0
Allowance for loan losses	$ 0		$ 0
Accounts receivable \| Credit concentration risk \| Independent third party and affiliates
Notes Receivable
Concentration risk percentage	45.70%		38.30%

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS During April 2020, the Company purchased 82,035 shares of its common stock at an average price of $8.95 per share, pursuant to the Company’s repurchase program. Under the repurchase program, the Company may purchase up to $10,000 of its common stock. The purchases were made in the open market and in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice.

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ACCRUED LIABILITIES.
Warranty liability	$ 3,093	$ 3,078
Litigation reserve	283	325
Federal and state taxes payable	4,140	1,761
Accrued expenses & other accrued liabilities	4,302	3,644
Total	$ 11,818	$ 8,808

SHARE-BASED COMPENSATION - Stock options (Details) - Stock options - $ / shares		3 Months Ended
	Feb. 07, 2019	Mar. 31, 2020
Fair value assumptions for options granted
Expiration period		10 years
Risk free interest rate		2.41%
Dividend yield		0.00%
Expected volatility		65.00%
Expected life		7 years 10 months 24 days
Senior management
Fair value assumptions for options granted
Stock options granted (in shares)	58,694
Exercise price (in dollar per share)	$ 13.63
Vesting percentage	12.50%

SHARE-BASED COMPENSATION - Summary of Stock options activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Dec. 31, 2019	Mar. 31, 2020
Number of units
Outstanding at the beginning		59,000
Outstanding at the end	59,000	59,000
Exercisable		15,000
Weighted Average Exercise Price
Outstanding at the beginning (in dollars per share)		$ 13.63
Outstanding at the end (in dollars per share)	$ 13.63	13.63
Exercisable (in dollars per share)		13.63
Weighted Average Fair Value
Outstanding at the beginning (in dollars per share)		7.69
Outstanding at the end (in dollars per share)	$ 7.69	7.69
Exercisable (in dollars per share)		$ 7.69
Weighted Average Remaining Contractual Life and Intrinsic Value
Outstanding (in years)	8 years 10 months 6 days	8 years 10 months 6 days
Exercisable (in years)		8 years 10 months 6 days
Non-vested shares		44,000
Unrecognized compensation expense		$ 330
Unrecognized compensation expense, recognition period		5 years 10 months 10 days

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
INVENTORIES
Raw materials	$ 10,649	$ 9,434
Work in progress	513	383
Finished goods	31,817	29,341
Total	$ 42,979	$ 39,158

EARNINGS PER SHARE- Tabular (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income (in 000's)	$ 9,025	$ 7,213
Denominator:
Basic weighted-average common shares outstanding	24,319,328	24,516,762
Effect of dilutive securities:
Diluted weighted-average common shares outstanding	24,361,083	24,571,088
Earnings per share attributable to Legacy Housing Corporation
Basic	$ 0.37	$ 0.29
Diluted	$ 0.37	$ 0.29
Restricted stock units
Effect of dilutive securities:
Dilutive securities	7,749	54,326
Stock options
Effect of dilutive securities:
Dilutive securities	34,006

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2020
INCOME TAXES
INCOME TAXES	11. INCOME TAXES The provision for income tax expense for the three months ended March 31, 2020 and 2019 was $2.6 million and $2.0 million, respectively. The effective tax rate for the three months ended March 31, 2020 was 22.3% and differs from the statutory rate of 21% primarily due to state income taxes. The effective tax rate for the three months ended March 31, 2019 was 21.8% and differs from the statutory rate of 21% due to state income taxes.

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
PROPERTY, PLANT AND EQUIPMENT
Total	$ 27,500		$ 27,165
Less accumulated depreciation	(6,376)		(6,127)
Total property, plant and equipment	21,124		21,038
Depreciation expense	248	$ 241
Cost of product sales
PROPERTY, PLANT AND EQUIPMENT
Depreciation expense	106	$ 89
Land
PROPERTY, PLANT AND EQUIPMENT
Total	11,671		11,659
Buildings and leasehold improvements
PROPERTY, PLANT AND EQUIPMENT
Total	10,139		10,059
Vehicles
PROPERTY, PLANT AND EQUIPMENT
Total	1,636		1,580
Machinery and equipment
PROPERTY, PLANT AND EQUIPMENT
Total	3,780		3,653
Furniture and fixtures
PROPERTY, PLANT AND EQUIPMENT
Total	$ 274		$ 214

PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2020

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

6. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:


	As of March 31,		As of December 31,
	2020		2019
Land	$	11,671	$	11,659
Buildings and leasehold improvements		10,139		10,059
Vehicles		1,636		1,580
Machinery and equipment		3,780		3,653
Furniture and fixtures		274		214
Total		27,500		27,165
Less accumulated depreciation		(6,376)		(6,127)
Total property, plant and equipment	$	21,124	$	21,038

Depreciation expense was $248 with $106 included as a component of cost of product sales for the three months ended March 31, 2020 and $241 with $89 included as a component of cost of product sales for the three months ended March 31, 2019.

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

14. EARNINGS PER SHARE

Basic earnings per common share (“EPS”) is computed based on the weighted‑average number of common shares outstanding during each reporting period. Diluted EPS is based on the weighted-average number of common shares outstanding plus the number of additional shares that would have been outstanding had the dilutive common shares been issued. The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS.


	Three months ended
	March 31,
	2020		2019
Numerator:
Net income (in 000's)	$	9,025	$	7,213
Denominator:
Basic weighted-average common shares outstanding		24,319,328		24,516,762
Effect of dilutive securities:
Restricted stock grants		7,749		54,326
Stock options		34,006		—
Diluted weighted-average common shares outstanding		24,361,083		24,571,088
Earnings per share attributable to Legacy Housing Corporation
Basic	$	0.37	$	0.29
Diluted	$	0.37	$	0.29

The diluted earnings per share calculation excludes 144,082 and 51,467 potential shares for the three months ended March 31, 2020 and 2019, respectively because the effect of including theses potential shares would be antidilutive.

OTHER ASSETS

3 Months Ended

Mar. 31, 2020

OTHER ASSETS

OTHER ASSETS

7. OTHER ASSETS

Other assets consisted of the following at March 31, 2020 and December 31, 2019:


	As of March 31,		As of December 31,
	2020		2019
Leased property	$	2,589	$	2,067
Prepaid rent		293		299
Repossessed loans		1,840		1,846
Total	$	4,722	$	4,212

Depreciation expense for the leased property was $33 for the three months ended March 31, 2020.

SHARE-BASED COMPENSATION - Restricted stock units (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Number of units
Nonvested at the beginning \| shares	142
Granted \| shares	2
Vested \| shares	17
Nonvested at the end \| shares	127
Weighted average grant date fair value
Nonvested at the beginning (in dollars per share) \| $ / shares	$ 13.34
Granted (in dollars per share) \| $ / shares	9.59
Vested (in dollars per share) \| $ / shares	13.63
Nonvested at the end (in dollars per share) \| $ / shares	$ 13.24
Unrecognized compensation expense \| $	$ 1,583
Unrecognized compensation expense, recognition period	4 years 8 months 1 day

CONSUMER LOANS RECEIVABLE - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Average contractual interest rate	14.00%
Escrow liability	$ 6,964	$ 7,530
Number of years historical loss rate considers for calculation	3 years
Repossessed assets	$ 1,840	$ 1,846
Minimum
Consumer loans receivable term	5 years
Maximum
Consumer loans receivable term	25 years

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE

Summary of reconciliation of the numerators and denominators used in the computations of both basic and diluted EPS


	Three months ended
	March 31,
	2020		2019
Numerator:
Net income (in 000's)	$	9,025	$	7,213
Denominator:
Basic weighted-average common shares outstanding		24,319,328		24,516,762
Effect of dilutive securities:
Restricted stock grants		7,749		54,326
Stock options		34,006		—
Diluted weighted-average common shares outstanding		24,361,083		24,571,088
Earnings per share attributable to Legacy Housing Corporation
Basic	$	0.37	$	0.29
Diluted	$	0.37	$	0.29

CONSUMER LOANS RECEIVABLE - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSUMER LOANS RECEIVABLE
Allowance for loan losses, beginning of period	$ 913	$ 712
Provision for loan losses	215	406
Charge offs	(108)	(233)
Allowance for loan losses, end of period	$ 1,020	$ 885

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 11, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	Legacy Housing Corp
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,764,206
Entity Central Index Key	0001436208
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

ACCRUED LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2020

ACCRUED LIABILITIES.

Schedule of accrued liabilities


	As of March 31,		As of December 31,
	2020		2019
Warranty liability	$	3,093	$	3,078
Litigation reserve		283		325
Federal and state taxes payable		4,140		1,761
Accrued expenses & other accrued liabilities		4,302		3,644
Total	$	11,818	$	8,808

DERIVATIVES	3 Months Ended
DERIVATIVES	Mar. 31, 2020
DERIVATIVES
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS	13. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Derivative Financial Instruments On February 2, 2012, the Company entered into a master interest rate swap agreement. The Company elected not to designate the interest rate swap agreements as cash flow hedges and, therefore, gains or losses on the agreements as well as the other offsetting gains or losses on the hedged items attributable to the hedged risk are recognized in current earnings. ASC 815‑10, Derivatives and Hedging, requires derivative instruments to be measured at fair value and recorded in the statements of financial position as either assets or liabilities. The Company entered into interest rate swap agreement with Capital One Bank on June 12, 2017 to fix the variable rate portion for $8,000 of the line of credit. This interest rate swap agreement is the only one outstanding at March 31, 2020 and has a maturity of May 11, 2020. The fair values of the interest rate swap agreement are assets included in prepaid expenses and other current assets and were $7 and $3 at March 31, 2020 and December 31, 2019, respectively. Included in the statements of operations for the three months ended March 31, 2020 and 2019 was a gain of $2 and a loss of $16, respectively, which are the result of the changes in the fair values of the interest rate swap agreement. Fair Value Measurements The Company accounts for its investments and derivative instruments in accordance with ASC 820‑10, Fair Value Measurement, which among other things provides the 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 I measurement) and the lowest priority to unobservable inputs (Level III measurements). The three levels of fair value hierarchy under ASC 820‑10, Fair Value Measurement, are as follows: Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include: (1) Quoted prices for similar assets or liabilities in active markets; (2) Quoted prices for identical or similar assets or liabilities in inactive markets; (3) Inputs other than quoted prices that are observable; (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability. Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company uses derivatives to manage risks related to interest rate movements. The Company does not enter into derivative contracts for speculative purposes. Interest rate swap contracts are recognized as assets or liabilities on the balance sheets and are measured at fair value. The fair value was calculated and provided by the lender, a Level II valuation technique. Management reviewed the fair values for the instruments as provided by the lender and determined the related asset and liability to be an accurate estimate of future gains and losses to the Company. The fair values of the interest rate swap are assets and valued at $7 and $3 as of March 31, 2020 and December 31, 2019, respectively. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, lines of credit, notes payable, and dealer portion of consumer loans. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short‑term maturities or expected settlement dates of these instruments. This is considered a Level I valuation technique. The MHP Notes, other notes, lines of credit, and notes payable have variable interest rates that reflect market rates and their fair value approximates their carrying value. This is considered a Level II valuation technique. The Company also assessed the fair value of the consumer loans receivable based on the discounted value of the remaining principal and interest cash flows. The Company determined that the fair value of the consumer loan portfolio was approximately $125,000 compared to the book value of $105,714 as of March 31, 2020, and a fair value of approximately $119,000 compared to the book value of $105,042 as of December 31, 2019. This is a Level III valuation technique.

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
CONDENSED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	24,637,222	24,620,079
Common stock, shares outstanding	24,274,279	24,320,079
Treasury stock, shares	362,943	300,000

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
Sale common stock offering, offering costs	$ 505

NATURE OF OPERATIONS - Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Accounts Receivable
Credit period	30 days
Allowance for doubtful accounts	$ 572	$ 457

NATURE OF OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2020

NATURE OF OPERATIONS

Schedule of disaggregation of revenue


	Three months ended
	March 31,
	2020		2019
Product sales:
Direct sales	$	2,225	$	4,457
Commercial sales		15,791		12,503
Consignment sales		8,840		10,037
Retail store sales		3,182		3,341
Other (1)		1,157		1,212
Total product sales		31,195		31,550
Consumer and MHP loans interest:
Interest - consumer installment notes		4,149		4,130
Interest - MHP notes		2,275		1,400
Total consumer and MHP loans interest		6,424		5,530
Other		654		874
Total net revenue	$	38,273	$	37,954

(1)

Other product sales revenue from ancillary products and services including parts, freight and other services

COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2020

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum lease commitments


2020	$	474
2021		548
2022		476
2023		425
2024		314
Thereafter		808
Total	$	3,045

SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2020

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

10. SHARE-BASED COMPENSATION

Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Compensation Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants and nonemployee service providers in the form of stock options, stock and stock appreciation rights. Stock options may be granted with a contractual life of up to ten years. At March 31, 2020, the Company had 9.8 million shares available for grant under the Compensation Plan.

In February 2019, the Company granted 120,000 restricted shares of its common stock to members of senior management. The shares were granted on February 7, 2019 and had a grant date fair value of $1,636. The shares vest at a rate of 14.3% annually, beginning on February 7, 2019, and becoming fully vested on February 7, 2025.

The Company granted 2,936 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on February 7, 2019 and become fully vested on December 13, 2019.

In August 2019, the Company granted 39,526 restricted shares of its common stock to a member of senior management. The shares were granted on August 2, 2019 and had a grant date fair value of $496. The shares vest at a rate of 20.0% annually, beginning on August 2, 2020, becoming fully vested on August 2, 2024.

The Company granted 1,903 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on March 27, 2020 and become fully vested on December 13, 2020.

The following is a summary of restricted stock units (the “RSU”) activity (in thousands, except per unit data):


	Number of Units		Weighted Average Grant date Fair Value
Nonvested, January 1, 2020	142	$	13.34
Granted	2	$	9.59
Vested	17	$	13.63
Nonvested, March 31, 2020	127	$	13.24

As of March 31, 2020, approximately 127,000 RSUs remained unvested. Unrecognized compensation expense related to these RSUs at March 31, 2020 was $1,583 and is expected to be recognized over 4.67 years.

The Company granted 58,694 incentive stock options to a member of senior management. The options were granted on February 7, 2019 at an exercise price of $13.63 per share. The options vest at a rate of 12.5% annually, beginning on February 7, 2019, and becoming fully vested on February 7, 2026. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of 2.41%; dividend yield of 0.00%; expected volatility of common stock of 65.0% and expected life of options of 7.9 years.

The following is a summary of option activity (in thousands, except per unit data):


	Number of Units	Weighted Average Exercise Price		Weighted Average Fair Value		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2020	59		13.63		7.69	8.85
Granted	—	$	—	$	—	—	$	—
Exercised	—		—		—	—
Forfeited	—		—		—	—
Outstanding, March 31, 2020	59	$	13.63	$	7.69	8.85	$	—
Exercisable, March 31, 2020	15	$	13.63	$	7.69	8.85	$	—

As of March 31, 2020, approximately 44,000 options remained unvested. Unrecognized compensation expense related to these options at March 31, 2020 was $330 and is expected to be recognized over 5.86 years.

CONSUMER LOANS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2020

CONSUMER LOANS RECEIVABLE

Schedule of Consumer loans receivable, net of allowance for loan losses and deferred financing fees


	As of March 31,		As of December 31,
	2020		2019
Consumer loans receivable	$	109,635	$	109,005
Loan discount and deferred financing fees, net		(3,029)		(3,050)
Allowance for loan losses		(1,020)		(913)
Consumer loans receivable, net	$	105,586	$	105,042

Schedule of allowance for loan losses


	Three Months Ended March 31,
	2020		2019
Allowance for loan losses, beginning of period	$	913	$	712
Provision for loan losses		215		406
Charge offs		(108)		(233)
Allowance for loan losses	$	1,020	$	885

Schedule of impaired and general reserve for allowance for loan losses


	As of March 31,		As of December 31,
	2020		2019
Total consumer loans	$	109,635	$	109,005
Total allowance for loan losses		1,020		913
Impaired loans individually evaluated for impairment		1,928		1,677
Specific reserve against impaired loans		661		529
Other loans collectively evaluated for allowance		107,707		107,328
General allowance for loan losses		359		384

Schedule of consumer loans receivable that are past due


	As of March 31,			As of December 31,
	2020		%	2019		%
Total consumer loans receivable	$	109,635	100.0	$	109,005	100.0
Past due consumer loans:
31 - 60 days past due	$	386	0.4	$	267	0.2
61 - 90 days past due		239	0.2		122	0.1
91 - 120 days past due		105	0.1		103	0.1
Greater than 120 days past due		1,205	1.1		1,065	1.0
Total past due	$	1,935	1.8	$	1,557	1.4

DEBT	3 Months Ended
DEBT	Mar. 31, 2020
DEBT
DEBT	9. DEBT Lines of Credit Revolver 1 At December 31, 2019, the Company had a revolving line of credit (“Revolver 1”) with Capital One, N.A. with a maximum credit limit of $45,000 and a maturity date of May 11, 2020. On March 30, 2020, the Company entered into an agreement with Capital One, N.A. to replace Revolver 1 with a new revolving line of credit (“New Revolver”). The New Revolver has a maximum credit limit of $70,000 and a maturity date of March 30, 2024. For the period January 1, 2020 through March 30, 2020 and for the year ended December 31, 2019, Revolver 1 accrued interest at one-month LIBOR plus 2.40%. The interest rate in effect as of December 31, 2019 was 4.09%. Amounts available under Revolver 1 were subject to a formula based on eligible consumer loans and MHP Notes and were secured by all accounts receivable and the consumer loans receivable and MHP Notes. The amount of available credit under Revolver 1 was $16,140 as of December 31, 2019. The New Revolver accrues interest at one-month LIBOR plus 2.00%. The interest rate in effect as of March 31, 2020 was 3.02%. As with Revolver 1, amounts available under the New Revolver are subject to a formula based on eligible consumer loans and MHP Notes and are secured by all accounts receivable and the consumer loans receivable and MHP Notes. The amount of available credit under the New Revolver was $32,974 as of March 31, 2020. For the three months ended March 31, 2020 and 2019, interest expense under the Capital One Revolvers was $320 and $73, respectively. The outstanding balance as of March 31, 2020 and December 31, 2019 was $37,026 and $28,860, respectively. The Company was in compliance with all financial covenants as of March 31, 2020, including that it maintain a tangible net worth of at least $120,000 and that it maintain a ratio of debt to EBITDA of 4 to 1, or less. Revolver 2 In April 2016, the Company entered into an agreement with Veritex Community Bank to secure an additional revolving line of credit of $15,000 (“Revolver 2”). Revolver 2 accrues interest at one month LIBOR plus 2.50% and all unpaid principal and interest is due at maturity on April 4, 2021. Revolver 2 is secured by all finished goods inventory excluding repossessed homes. Amounts available under Revolver 2 are subject to a formula based on eligible inventory. The interest rates in effect as of March 31, 2020 and December 31, 2019 were 4.17% and 4.19%, respectively. On May 12, 2017, the Company entered into an agreement to increase the line of credit to $20,000. On October 15, 2018, Revolver 2 was amended to extend the maturity date from April 4, 2019 to April 4, 2021. The amount of available credit under Revolver 2 was $12,028 and $11,262 at March 31, 2020 and December 31, 2019, respectively. The Company was in compliance with all required covenants as of March 31, 2020. For the three months ended March 31, 2020 and 2019, interest expense was $21 and $61, respectively. The outstanding balance as of March 31, 2020 and December 31, 2019 was $2,001. The Company was in compliance with the other financial covenants that it maintain a tangible net worth of at least $80,000. In April 2020, this note was paid in full and the facility was terminated. Notes Payable On April 7, 2011, the Company signed a promissory note for $4,830 with Woodhaven Bank. The amount due under the promissory note accrues interest at an annual rate of 3.85% through February 2, 2017 and then at the prime interest rate plus 0.60% through maturity on April 7, 2018. On April 7, 2018, the promissory note with Woodhaven Bank was renewed with varying amounts of principal and interest due through the maturity date, April 7, 2033. The promissory note calls for an interest rate of 4.25% and monthly payments of $30 with a final payment due at maturity. The note is secured by certain real property of the Company. Interest expense was $38 for the three months ended March 31, 2019. In October 2019, this note was paid in full. On May 24, 2016, the Company signed a promissory note for $515 with Eagle One, LLC collateralized by the purchase of real property located in Oklahoma City, Oklahoma. The amount due under the promissory note accrues interest at an annual rate of 6.00%. The promissory note calls for monthly principal and interest payments of $6 until June 1, 2026. Interest expense was $1 for the three months ended March 31, 2019. In January 2019, this note was paid in full. PILOT Agreement In December 2016, the Company entered into a Payment in Lieu of Taxes (“PILOT”) agreement commonly offered in Georgia by local community development programs to encourage industry development. The net effect of the PILOT agreement is to provide the Company with incentives through the abatement of local, city and county property taxes and to provide financing for improvements to the Company’s Georgia plant (the “Project”). In connection with the PILOT agreement, the Putman County Development Authority provides a credit facility for up to $10,000 which can be drawn upon to fund Project improvements and capital expenditures as defined in the agreement. If funds are drawn, the Company would pay transactions costs and debt service payments. The PILOT agreement requires interest payments of 6.00% per annum on outstanding balances, which are due each December 1st through maturity on December 1, 2021, at which time all unpaid principal and interest are due. The PILOT agreement is collateralized by the assets of the Project. As of March 31, 2020, the Company had not drawn on this credit facility.

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Mar. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	15. RELATED PARTY TRANSACTIONS Bell Mobile Homes, a retailer owned by one of the Company’s significant owners, purchases manufactured homes from the Company. Accounts receivable balances due from Bell Mobile Homes were $544 and $549 as of March 31, 2020 and December 31, 2019, respectively. Accounts payable balances due to Bell Mobile Homes for maintenance and related services were $80 and $74 as of March 31, 2020 and December 31, 2019, respectively. Home sales to Bell Mobile Homes were $883 and $858 for the three months ended March 31, 2020 and 2019, respectively.

CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Net revenue:
Product sales	$ 31,195	$ 31,550
Consumer and MHP loans interest	6,424	5,530
Other	654	874
Total net revenue	38,273	37,954
Operating expenses:
Cost of product sales	21,858	21,885
Selling, general administrative expenses	5,612	6,491
Dealer incentive	194	210
Income from operations	10,609	9,368
Other income (expense):
Non‑operating interest income	237	39
Miscellaneous, net	38	3
Gain on settlement, net	1,075
Interest expense	(338)	(189)
Total other	1,012	(147)
Income before income tax expense	11,621	9,221
Income tax expense	(2,596)	(2,008)
Net income	$ 9,025	$ 7,213
Weighted average shares outstanding:
Basic	24,319,328	24,516,762
Diluted	24,361,083	24,571,088
Net income per share:
Basic	$ 0.37	$ 0.29
Diluted	$ 0.37	$ 0.29

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Repurchase agreements
Commitment
Repurchase commitment	$ 501	$ 260

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

As of January 1, 2020, the Company instituted a self-insured health benefits plan with a stop-loss policy, which provides medical benefits to employees electing coverage under the plan. The Company estimates and records costs for incurred but not reported medical claims and claim development. This reserve is based on historical experience and other assumptions, some of which are subjective. The Company will adjust its self-insured medical benefits reserve based on actual experience, estimated costs and changes to assumptions. At March 31, 2020, the liability for incurred but not reported claims was insignificant.

The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer. The Company’s obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer. The maximum amount for which the Company was liable under such agreements approximated $501 and $260 at March 31, 2020 and December 31, 2019, respectively, without reduction for the resale value of the homes. The Company considers its obligations on current contracts to be immaterial and accordingly have not recorded any reserve for repurchase commitment as of March 31, 2020 or December 31, 2019.

Leases. The Company leases facilities under operating leases that typically have 10‑year terms. These leases usually offer the Company a right of first refusal that affords the Company the option to purchase the leased premises under certain terms in the event the landlord attempts to sell the leased premises to a third party. Rent expense was $144 and $131 for the three months ended March 31, 2020, and 2019, respectively. The Company also subleases properties to third parties, ranging from 3‑year to 11‑year terms with various renewal options. Rental income from the subleased property was approximately $85 and $89 for the three months ended March 31, 2020 and 2019, respectively.

Future minimum lease commitments under all non‑cancelable operating leases for each of the next five years at March 31, 2020, are as follows:


2020	$	474
2021		548
2022		476
2023		425
2024		314
Thereafter		808
Total	$	3,045

Legal Matters

The Company is party to certain legal proceedings that arise in the ordinary course and are incidental to its business. Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract and warranty, product liability and personal injury. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company’s financial position, liquidity or results of operations. However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company’s financial position, liquidity or results of operations in any future reporting periods.

DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Derivative Financial Instruments (Details) - Interest rate swap agreement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jun. 12, 2017
Derivative instruments
Gain (Loss) resulted from changes in fair values of the interest rate swap agreement	$ 2	$ 16
Line of credit
Derivative instruments
Interest rate swap agreement				$ 8,000
Level 2
Derivative instruments
Fair values of interest rate swap agreement	7		$ 3
Prepaid Expenses and Other Current Assets
Derivative instruments
Fair values of interest rate swap agreement	$ 7		$ 3

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2020

INVENTORIES

Schedule of inventory


	As of March 31,		As of December 31,
	2020		2019
Raw materials	$	10,649	$	9,434
Work in progress		513		383
Finished goods		31,817		29,341
Total	$	42,979	$	39,158

CONSUMER LOANS RECEIVABLE

3 Months Ended

Mar. 31, 2020

CONSUMER LOANS RECEIVABLE

CONSUMER LOANS RECEIVABLE

2. CONSUMER LOANS RECEIVABLE

Consumer loans receivable result from financing transactions entered into with retail consumers of mobile homes sold through independent retailers and company-owned retail locations. Consumer loans receivable generally consist of the sales price and any additional financing fees, less the buyer’s down payment. Interest income is recognized monthly per the terms of the financing agreements. The average contractual interest rate per loan was approximately 14.0% as of March 31, 2020 and December 31, 2019. Consumer loans receivable have maturities that range from 5 to 25 years.

Loan applications go through an underwriting process that considers credit history to evaluate credit risk of the consumer. Interest rates on approved loans are determined based on consumer credit score, payment ability and down payment amount.

The Company uses payment history to monitor the credit quality of the consumer loans on an ongoing basis.

The Company may also receive escrow payments for property taxes and insurance included in its consumer loan collections. The liabilities associated with these escrow collections totaled $6,964 and $7,530 as of March 31, 2020 and December 31, 2019, respectively, and are included in escrow liability in the balance sheets.

Allowance for Loan Losses—Consumer Loans Receivable

The allowance for loan losses reflects management’s estimate of losses inherent in the consumer loans that may be uncollectible based upon review and evaluation of the consumer loan portfolio as of the date of the balance sheet. An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics, including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience.

The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The Company’s calculation of the general reserve considers the historical loss rate for the last three years, adjusted for the estimated loss discovery period and any qualitative factors both internal and external to the Company. Specific reserves are determined based on probable losses on specific classified impaired loans.

The Company’s policy is to place a loan on nonaccrual status when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is normally when either principal or interest is past due and remains unpaid for more than 90 days. Management implemented this policy based on an analysis of historical data, current performance of loans and the likelihood of recovery once principal or interest payments became delinquent and were aged more than 90 days. Payments received on nonaccrual loans are accounted for on a cash basis, first to interest and then to principal, as long as the remaining book balance of the asset is deemed to be collectible. The accrual of interest resumes when the past due principal or interest payments are brought within 90 days of being current.

Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impaired loans, or portions thereof, are charged off when deemed uncollectible. A loan is generally deemed impaired if it is more than 90 days past due on principal or interest, is in bankruptcy proceedings, or is in the process of repossession. A specific reserve is created for impaired loans based on fair value of underlying collateral value, less estimated selling costs. The Company uses various factors to determine the value of the underlying collateral for impaired loans. These factors are: (1) the length of time the unit was unsold after construction; (2) the amount of time the house was occupied; (3) the cooperation level of the borrowers, i.e., loans requiring legal action or extensive field collection efforts; (4) units located on private property as opposed to a manufactured home park; (5) the length of time the borrower has lived in the house without making payments; (6) location, size, and market conditions; and (7) the experience and expertise of the particular dealer assisting in collection efforts.

Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is computed based on the historical recovery rates of previously charged‑off loans; the loan is charged off and the loss is charged to the allowance for loan losses. At each reporting period, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled $1,840 and $1,846 as of March 31, 2020 and December 31, 2019, respectively, and are included in other assets in the balance sheets.

Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consisted of the following:


	As of March 31,		As of December 31,
	2020		2019
Consumer loans receivable	$	109,635	$	109,005
Loan discount and deferred financing fees, net		(3,029)		(3,050)
Allowance for loan losses		(1,020)		(913)
Consumer loans receivable, net	$	105,586	$	105,042

The following table presents a detail of the activity in the allowance for loan losses:


	Three Months Ended March 31,
	2020		2019
Allowance for loan losses, beginning of period	$	913	$	712
Provision for loan losses		215		406
Charge offs		(108)		(233)
Allowance for loan losses	$	1,020	$	885

The impaired and general reserve for allowance for loan losses:


	As of March 31,		As of December 31,
	2020		2019
Total consumer loans	$	109,635	$	109,005
Total allowance for loan losses		1,020		913
Impaired loans individually evaluated for impairment		1,928		1,677
Specific reserve against impaired loans		661		529
Other loans collectively evaluated for allowance		107,707		107,328
General allowance for loan losses		359		384

As of March 31, 2020 and December 31, 2019, the total principal outstanding for consumer loans on nonaccrual status was $1,928 and $1,677, respectively. A detailed aging of consumer loans receivable that are past due as of March 31, 2020 and December 31, 2019 were as follows:


	As of March 31,			As of December 31,
	2020		%	2019		%
Total consumer loans receivable	$	109,635	100.0	$	109,005	100.0
Past due consumer loans:
31 - 60 days past due	$	386	0.4	$	267	0.2
61 - 90 days past due		239	0.2		122	0.1
91 - 120 days past due		105	0.1		103	0.1
Greater than 120 days past due		1,205	1.1		1,065	1.0
Total past due	$	1,935	1.8	$	1,557	1.4

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

OTHER NOTES RECEIVABLE

3 Months Ended

Mar. 31, 2020

OTHER NOTES RECEIVABLE

OTHER NOTES RECEIVABLE

4. OTHER NOTES RECEIVABLE

Other notes receivable relate to various notes issued to mobile park owners and dealers, which are not directly tied to sale of mobile homes. The other notes have varying maturity dates and call for monthly principal and interest payments. The other notes are collateralized by mortgages on real estate, units being financed and used as offices, as well as vehicles, and are typically personally guaranteed by the borrowers. The interest rate on the other notes are fixed and range from 6.25% to 12.00%. The Company reserves for estimated losses on the other notes based on current economic conditions that may affect the borrower’s ability to pay, the borrower’s financial strength, and historical loss experience.

The balance outstanding on the other notes receivable were as follows:


	As of March 31,		As of December 31,
	2020		2019
Outstanding principal balance	$	13,681	$	13,552
Allowance for loan losses		(72)		(74)
Total	$	13,609	$	13,478

COMMITMENTS AND CONTINGENCIES - Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases
Operating lease, term of contract (in years)	10 years
Rent expense	$ 144	$ 131
Sublease rental income	85	$ 89
Future minimum lease commitments
2020	474
2021	548
2022	476
2023	425
2024	314
Thereafter	808
Total	$ 3,045
Minimum
Leases
Sublease, term of contract (in years)	3 years
Maximum
Leases
Sublease, term of contract (in years)	11 years

OTHER NOTES RECEIVABLE (Details) - Other Note Receivable - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Notes Receivable
Outstanding principal balance	$ 13,681	$ 13,552
Allowance for loan losses	(72)	(74)
Total	$ 13,609	$ 13,478
Minimum
Notes Receivable
Interest rate on the other notes	6.25%
Maximum
Notes Receivable
Interest rate on the other notes	12.00%

PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2020

PROPERTY, PLANT AND EQUIPMENT

Schedule of property, plant and equipment


	As of March 31,		As of December 31,
	2020		2019
Land	$	11,671	$	11,659
Buildings and leasehold improvements		10,139		10,059
Vehicles		1,636		1,580
Machinery and equipment		3,780		3,653
Furniture and fixtures		274		214
Total		27,500		27,165
Less accumulated depreciation		(6,376)		(6,127)
Total property, plant and equipment	$	21,124	$	21,038

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
INCOME TAXES
Tax expense	$ 2,596	$ 2,008
Effective tax rate (as a percent)	22.30%	21.80%
Federal statutory rate	21.00%	21.00%

OTHER NOTES RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2020

OTHER NOTES RECEIVABLE

Schedule of balance outstanding on the other notes receivable


	As of March 31,		As of December 31,
	2020		2019
Outstanding principal balance	$	13,681	$	13,552
Allowance for loan losses		(72)		(74)
Total	$	13,609	$	13,478

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Common Stock	Treasury stock	Additional paid-in-capital	Retained earnings	Total
Beginning Balance at Dec. 31, 2018	$ 24		$ 167,743	$ 21,513	$ 189,280
Beginning Balance (in shares) at Dec. 31, 2018	24,000,000
Sale of common stock, net of offering costs of $505 and $4,504 costs during 2019 and 2018, respectively	$ 1		6,694		6,695
Shares issued from sale of common stock	600,000
Share based compensation expense and stock units vested			234		234
Share based compensation expense and stock units vested (in shares)	17,143
Net income				7,213	7,213
Ending Balance at Mar. 31, 2019	$ 25		174,671	28,726	203,422
Ending Balance (in shares) at Mar. 31, 2019	24,617,143
Beginning Balance at Dec. 31, 2019	$ 25	$ (3,060)	175,067	50,357	$ 222,389
Beginning Balance (in shares) at Dec. 31, 2019	24,620,079				24,620,079
Share based compensation expense and stock units vested			97		$ 97
Share based compensation expense and stock units vested (in shares)	17,143
Purchase of treasury stock		(682)			(682)
Net income				9,025	9,025
Ending Balance at Mar. 31, 2020	$ 25	$ (3,742)	$ 175,164	$ 59,382	$ 230,829
Ending Balance (in shares) at Mar. 31, 2020	24,637,222				24,637,222

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSUMER LOANS RECEIVABLE - Consumer loans receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
CONSUMER LOANS RECEIVABLE
Consumer loans receivable	$ 109,635	$ 109,005
Loan discount and deferred financing fees, net	(3,029)	(3,050)
Allowance for loan losses	(1,020)	(913)	$ (885)	$ (712)
Consumer loans receivable, net	$ 105,586	$ 105,042

SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2020

SHARE-BASED COMPENSATION

Schedule of restricted stock units activity

The following is a summary of restricted stock units (the “RSU”) activity (in thousands, except per unit data):


	Number of Units		Weighted Average Grant date Fair Value
Nonvested, January 1, 2020	142	$	13.34
Granted	2	$	9.59
Vested	17	$	13.63
Nonvested, March 31, 2020	127	$	13.24

Schedule of stock option activity

The following is a summary of option activity (in thousands, except per unit data):


	Number of Units	Weighted Average Exercise Price		Weighted Average Fair Value		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2020	59		13.63		7.69	8.85
Granted	—	$	—	$	—	—	$	—
Exercised	—		—		—	—
Forfeited	—		—		—	—
Outstanding, March 31, 2020	59	$	13.63	$	7.69	8.85	$	—
Exercisable, March 31, 2020	15	$	13.63	$	7.69	8.85	$	—

CONSUMER LOANS RECEIVABLE - Impaired and general reserve for allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
CONSUMER LOANS RECEIVABLE
Total consumer loans	$ 109,635	$ 109,005
Total allowance for loan losses	1,020	913	$ 885	$ 712
Impaired loans individually evaluated for impairment	1,928	1,677
Specific reserve against impaired loans	661	529
Other loans collectively evaluated for allowance	107,707	107,328
General allowance for loan losses	$ 359	$ 384

RELATED PARTY TRANSACTIONS (Details) - Bell Mobile Homes - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Accounts receivable related parties	$ 544		$ 549
Accounts payable related parties	80		$ 74
Home sales to related parties	$ 883	$ 858

NATURE OF OPERATIONS - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue
Product sales	$ 31,195	$ 31,550
Incremental costs of obtaining a contract	true
Dealer commission, reimbursed dealer expenses and other similar costs	$ 4,907	4,327
Revenue from contract with customer product and service benchmark \| Customer concentration risk \| Independent third party and affiliates
Disaggregation of Revenue
Product sales	$ 11,986	$ 4,803
Concentration risk percentage	37.20%	15.90%

DEBT - Lines of Credit (Details) $ in Thousands		3 Months Ended			12 Months Ended
DEBT - Lines of Credit (Details) $ in Thousands	Mar. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)	Mar. 30, 2020 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	May 12, 2017 USD ($)	Apr. 30, 2016 USD ($)
Revolver 1
Lines of Credit
Maximum borrowing capacity			$ 70,000		$ 45,000
Effective interest rate	3.02%	3.02%			4.09%
Amount of available credit	$ 32,974	$ 32,974			$ 16,140
Interest expense		320		$ 73
Outstanding balance	37,026	37,026		28,860
Tangible net worth	$ 120,000	$ 120,000
Debt to EBITDA ratio		4
Revolver 1 \| London Interbank Offered Rate (LIBOR)
Lines of Credit
Spread rate	2.00%		2.40%		2.40%
Revolver 2
Lines of Credit
Maximum borrowing capacity						$ 20,000	$ 15,000
Effective interest rate	4.17%	4.17%			4.19%
Amount of available credit	$ 12,028	$ 12,028			$ 11,262
Interest expense		21		$ 61
Outstanding balance	2,001	2,001			$ 2,001
Tangible net worth	$ 80,000	$ 80,000
Revolver 2 \| London Interbank Offered Rate (LIBOR)
Lines of Credit
Spread rate		2.50%

DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value \| Level 3
Receivables, Fair Value Disclosure [Abstract]
Loans	$ 125,000	$ 119,000
Book Value
Receivables, Fair Value Disclosure [Abstract]
Loans	$ 105,714	$ 105,042

NOTES RECEIVABLE FROM MOBILE HOME PARKS (MHP Notes)	3 Months Ended
NOTES RECEIVABLE FROM MOBILE HOME PARKS (MHP Notes)	Mar. 31, 2020
NOTES RECEIVABLE FROM MOBILE HOME PARKS (“MHP Notes”)
NOTES RECEIVABLE FROM MOBILE HOME PARKS (“MHP Notes”)	3. NOTES RECEIVABLE FROM MOBILE HOME PARKS (“MHP Notes”) MHP Notes are stated at amounts due from customers, net of allowance for loan losses. The Company determines the allowance by considering several factors including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance reserve composed of specific and general reserve amounts. The Company had concentrations of MHP Notes with an independent third-party and its affiliates that equaled 45.7% and 38.3% of the principal balance outstanding, all of which was secured, as of March 31, 2020 and December 31, 2019, respectively. There were minimal past due balances on the MHP Notes as of March 31, 2020 and December 31, 2019 and no charge offs were recorded for MHP Notes during the three months ended March 31, 2020 and 2019, respectively. Allowance for loan loss is considered immaterial and accordingly no loss is recorded against the MHP Notes as of March 31, 2020 and December 31, 2019.

NATURE OF OPERATIONS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue
Product sales	$ 31,195	$ 31,550
Consumer and MHP loans interest:
Interest - consumer installments notes	4,149	4,130
Interest - MHP notes	2,275	1,400
Total consumer and MHP loans interest	6,424	5,530
Other	654	874
Total net revenue	38,273	37,954
Direct sales
Disaggregation of Revenue
Product sales	2,225	4,457
Commercial sales
Disaggregation of Revenue
Product sales	15,791	12,503
Consignment sales
Disaggregation of Revenue
Product sales	8,840	10,037
Retail store sales
Disaggregation of Revenue
Product sales	3,182	3,341
Other
Disaggregation of Revenue
Product sales	$ 1,157	$ 1,212

EARNINGS PER SHARE - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Antidilutive shares excluded from calculation of earnings per share	144,082	51,467

OTHER ASSETS (Tables)

3 Months Ended

Mar. 31, 2020

OTHER ASSETS

Schedule of Other Assets


	As of March 31,		As of December 31,
	2020		2019
Leased property	$	2,589	$	2,067
Prepaid rent		293		299
Repossessed loans		1,840		1,846
Total	$	4,722	$	4,212

INVENTORIES

3 Months Ended

Mar. 31, 2020

INVENTORIES

INVENTORIES

5. INVENTORIES

Inventories consisted of the following:


	As of March 31,		As of December 31,
	2020		2019
Raw materials	$	10,649	$	9,434
Work in progress		513		383
Finished goods		31,817		29,341
Total	$	42,979	$	39,158

CONSUMER LOANS RECEIVABLE - Aging of consumer loans receivable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Past due consumer loans:
Principal outstanding on consumer loans	$ 1,928	$ 1,677
Total consumer loans	$ 109,635	$ 109,005
Total consumer loans receivable (as a percent)	100.00%	100.00%
Consumer loans receivable past due	$ 1,935	$ 1,557
Consumer loans receivable past due (Percent)	1.80%	1.40%
31 - 60 days past due
Past due consumer loans:
Consumer loans receivable past due	$ 386	$ 267
Consumer loans receivable past due (Percent)	0.40%	0.20%
61 - 90 days past due
Past due consumer loans:
Consumer loans receivable past due	$ 239	$ 122
Consumer loans receivable past due (Percent)	0.20%	0.10%
91 - 120 days past due
Past due consumer loans:
Consumer loans receivable past due	$ 105	$ 103
Consumer loans receivable past due (Percent)	0.10%	0.10%
Greater than 120 days past due
Past due consumer loans:
Consumer loans receivable past due	$ 1,205	$ 1,065
Consumer loans receivable past due (Percent)	1.10%	1.00%