It is now 100% finished. I have sewn in the threads, added the tassels at the top and the flag emblems, one on each side. I really like the tassels. They add a bit of quirky fun without the weight of a pom-pom. They were made by braiding the yarn and not crocheting a chain. I put the tip of the hat under the pressure foot of my sewing machine to give me that third hand that kept tension on the braid while braiding. The ends of the yarn are frayed to give the fluffy look and the red is just yarn wrapped around the braid.
You can compare to the picture from my previous post on the hat. I had not decided when I made this who it would be for. Now I think I will keep it for me! Once I figured out the pattern error in the band, it really did not take that long to knit. Maybe I will make a second one for my husband. The style is really kind of a cross between a beanie and a short stocking cap. It is quite nice to wear since it is deep enough that it does not plaster down the hair at the top of your head.