Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CTI INDUSTRIES CORP | ||
Entity Central Index Key | 1,042,187 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 6,230,000 | ||
Trading Symbol | CTIB | ||
Entity Common Stock, Shares Outstanding | 3,371,504 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents (VIE $82,000 and $14,000, respectively) | $ 346,404 | $ 150,332 |
Accounts receivable, (less allowance for doubtful accounts of $126,000 and $230,000 respectively) (VIE $4,000 and $9,000, respectively) | 11,410,999 | 11,286,797 |
Inventories, net (VIE $1,264,000 and $699,000, respectively) | 17,869,911 | 17,755,300 |
Net deferred income tax asset | 761,096 | 718,694 |
Prepaid expenses (VIE $17,000 and $22,000, respectively) | 1,057,464 | 1,983,915 |
Other current assets (VIE $33,000 and $46,000, respectively) | 991,297 | 578,888 |
Total current assets | 32,437,171 | 32,473,926 |
Property, plant and equipment: | ||
Machinery and equipment (VIE $546,000 and $640,000, respectively) | 26,847,110 | 26,739,353 |
Building | 3,360,017 | 3,360,017 |
Office furniture and equipment (VIE $66,000 and $46,000, respectively) | 3,512,613 | 3,473,009 |
Intellectual property | 482,088 | 482,088 |
Land | 250,000 | 250,000 |
Leasehold improvements | 624,902 | 640,166 |
Fixtures and equipment at customer locations | 3,174,535 | 3,013,747 |
Projects under construction | 773,985 | 859,631 |
Property, Plant and Equipment, Gross | 39,025,250 | 38,818,011 |
Less : accumulated depreciation and amortization (VIE $150,000 and $129,000, respectively) | (32,471,694) | (31,062,484) |
Total property, plant and equipment, net | 6,553,556 | 7,755,527 |
Other assets: | ||
Deferred financing costs, net | 112,615 | 157,061 |
Goodwill (VIE $440,000 and $440,000, respectively) | 1,473,176 | 1,473,176 |
Net deferred income tax asset | 986,181 | 1,013,392 |
Other assets (due from related party $46,000 and $47,000, respectively) | 242,270 | 173,828 |
Total other assets | 2,814,242 | 2,817,457 |
TOTAL ASSETS | 41,804,969 | 43,046,910 |
Current liabilities: | ||
Checks written in excess of bank balance | 1,481,827 | 1,432,212 |
Trade payables (VIE $238,000 and $74,000, respectively) | 4,271,860 | 4,468,859 |
Line of credit (VIE $484,000 and $494,000, respectively) | 10,952,924 | 12,158,300 |
Notes payable - current portion (net discount of $171,000 and $146,000, respectively) (VIE $311,000 and $114,000, respectively) | 501,710 | 328,942 |
Notes Payable Affiliates - current portion | 8,670 | 9,034 |
Capital Lease - current portion | 41,204 | 38,595 |
Accrued liabilities (VIE $655,000 and $60,000, respectively) | 2,942,481 | 2,493,435 |
Total current liabilities | 20,200,676 | 20,929,377 |
Long-term liabilities: | ||
Notes Payable - Affiliates (VIE 183,000 and 179,000 respectively) | 266,835 | 284,547 |
Notes payable, net of current portion (net discount of $113,000 and $284,000, respectively) (VIE $200 and $322,000, respectively) | 6,665,700 | 7,177,406 |
Notes payable - officer, subordinated | 1,323,139 | 1,236,476 |
Capital Lease | 45,351 | 86,555 |
Total long-term debt, net of current portion | 8,301,025 | 8,784,984 |
Warrants Payable | 714,245 | 525,180 |
Total long-term liabilities | 9,015,270 | 9,310,164 |
CTI Industries Corporation stockholders' equity: | ||
Preferred Stock no par value 2,000,000 shares authorized 0 shares issued and outstanding | 0 | 0 |
Common stock - no par value, 5,000,000 shares authorized, 3,386,284 and 3,376,743 shares issued and 3,310,657 and 3,301,116 outstanding, respectively | 13,775,994 | 13,775,994 |
Paid-in-capital | 1,577,807 | 1,542,718 |
Accumulated earnings | 1,670,788 | 623,455 |
Accumulated other comprehensive loss | (4,076,318) | (2,901,212) |
Less: Treasury stock - 75,627 shares and 75,627 shares, respectively | (160,784) | (160,784) |
Total CTI Industries Corporation stockholders' equity | 12,787,487 | 12,880,171 |
Noncontrolling interest | (198,464) | (72,802) |
Total Equity | 12,589,023 | 12,807,369 |
TOTAL LIABILITIES AND EQUITY | $ 41,804,969 | $ 43,046,910 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 346,404 | $ 150,332 |
Allowance for doubtful accounts | 126,000 | 230,000 |
Inventory, Net, Total | 17,869,911 | 17,755,300 |
Prepaid expenses | 1,057,464 | 1,983,915 |
Other current assets | 991,297 | 578,888 |
Machinery and equipment | 26,847,110 | 26,739,353 |
Office Furniture and Equipment | 3,512,613 | 3,473,009 |
Accumulated depreciation and amortization | 32,471,694 | 31,062,484 |
Goodwill | 1,473,176 | 1,473,176 |
Notes payable - current portion | 501,710 | 328,942 |
Due from related party | 46,000 | 47,000 |
Trade payables | 4,271,860 | 4,468,859 |
Line Of Credit, Current | 10,952,924 | 12,158,300 |
Discount On Notes Payable Current | 171,000 | 146,000 |
Accrued liabilities | 2,942,481 | 2,493,435 |
Notes Payable - Affiliates | 8,670 | 9,034 |
Notes Payable, net of current portion, net discount | 113,000 | 284,000 |
Notes payable, net of current portion | $ 6,665,700 | $ 7,177,406 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 3,386,284 | 3,376,743 |
Common stock, shares outstanding (in shares) | 3,310,657 | 3,301,116 |
Treasury Stock, Shares (in shares) | 75,627 | 75,627 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | $ 82,000 | $ 14,000 |
Allowance for doubtful accounts | 4,000 | 9,000 |
Inventory, Net, Total | 1,264,000 | 699,000 |
Prepaid expenses | 17,000 | 22,000 |
Other current assets | 33,000 | 46,000 |
Machinery and equipment | 546,000 | 640,000 |
Office Furniture and Equipment | 66,000 | 46,000 |
Accumulated depreciation and amortization | 150,000 | 129,000 |
Goodwill | 440,000 | 440,000 |
Notes payable - current portion | 311,000 | 114,000 |
Trade payables | 238,000 | 74,000 |
Line Of Credit, Current | 484,000 | 494,000 |
Accrued liabilities | 655,000 | 60,000 |
Notes Payable - Affiliates | 183,000 | 179,000 |
Notes payable, net of current portion | $ 200 | $ 322,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales | $ 59,364,701 | $ 57,828,200 |
Cost of Sales | 43,013,345 | 43,623,666 |
Gross profit | 16,351,356 | 14,204,534 |
Operating expenses: | ||
General and administrative | 7,134,385 | 7,231,243 |
Selling | 3,510,824 | 3,041,937 |
Advertising and marketing | 2,889,609 | 2,322,172 |
Total operating expenses | 13,534,818 | 12,595,352 |
Income from operations | 2,816,538 | 1,609,182 |
Other (expense) income: | ||
Interest expense | (1,614,574) | (1,131,441) |
Interest income | 72,834 | 22,140 |
Foreign currency gain | 32,470 | 39,367 |
Total other expense, net | (1,509,270) | (1,069,934) |
Income before taxes | 1,307,268 | 539,248 |
Income tax expense | 369,596 | 189,967 |
Net Income | 937,672 | 349,281 |
Less: Net (loss) income attributable to noncontrolling interest | (109,661) | (165,037) |
Net income attributable to CTI Industries Corporation | 1,047,333 | 514,318 |
Other Comprehensive (Loss) Income | ||
Foreign currency adjustment | (1,175,106) | (647,711) |
Comprehensive (loss) income attributable to CTI Industries Corporation | $ (127,773) | $ (133,393) |
Basic income per common share | $ 0.32 | $ 0.16 |
Diluted income per common share | $ 0.3 | $ 0.15 |
Weighted average number of shares and equivalent shares of common stock outstanding: | ||
Basic | 3,297,448 | 3,288,332 |
Diluted | 3,437,140 | 3,439,427 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated (Deficit) Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2013 | $ 12,764,125 | $ 13,775,994 | $ 1,165,549 | $ 109,137 | $ (2,253,501) | $ (141,289) | $ 108,235 |
Balance (in shares) at Dec. 31, 2013 | 3,320,773 | (72,127) | |||||
Stock Purchase | 300,000 | 300,000 | |||||
Stock Purchase (in shares) | 55,970 | ||||||
Compensation relating to Option Issuance | 77,169 | 77,169 | |||||
Stock Redemption | (19,495) | $ (19,495) | |||||
Stock Redemption (in shares) | (3,500) | ||||||
Dividends Declared | (16,000) | (16,000) | |||||
Net Income | 349,281 | 514,318 | (165,037) | ||||
Other comprehensive income, net of taxes Foreign currency translation | (647,711) | (647,711) | |||||
Balance at Dec. 31, 2014 | 12,807,369 | $ 13,775,994 | 1,542,718 | 623,455 | (2,901,212) | $ (160,784) | (72,802) |
Balance (in shares) at Dec. 31, 2014 | 3,376,743 | (75,627) | |||||
Stock Purchase | 0 | ||||||
Compensation relating to Option Issuance | 35,089 | 35,089 | |||||
Compensation relating to Option Issuance (in shares) | 9,541 | ||||||
Stock Redemption | 0 | ||||||
Dividends Declared | (16,000) | (16,000) | |||||
Net Income | 937,672 | 1,047,333 | (109,661) | ||||
Other comprehensive income, net of taxes Foreign currency translation | (1,175,106) | (1,175,106) | |||||
Balance at Dec. 31, 2015 | $ 12,589,023 | $ 13,775,994 | $ 1,577,807 | $ 1,670,788 | $ (4,076,318) | $ (160,784) | $ (198,463) |
Balance (in shares) at Dec. 31, 2015 | 3,386,284 | (75,627) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 937,672 | $ 349,281 |
Adjustment to reconcile net income to cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,779,524 | 2,074,701 |
Amortization of debt discount | 146,441 | 125,459 |
Change in value of swap agreement | 0 | (59,859) |
Stock based compensation | 29,329 | 77,169 |
Provision for losses on accounts receivable | 54,863 | 67,195 |
Provision for losses on inventories | 178,769 | (92,100) |
Deferred income taxes | (15,191) | (483,202) |
Change in assets and liabilities: | ||
Accounts receivable | (689,953) | (2,884,838) |
Inventories | (972,687) | (2,768,021) |
Prepaid expenses and other assets | 350,158 | (278,540) |
Trade payables | 79,473 | 996,802 |
Accrued liabilities | 717,612 | (479,159) |
Net cash provided by (used in) operating activities | 2,596,010 | (3,355,112) |
Cash flows from investing activities: | ||
Cash effect from consolidation of variable interest entity | 0 | 0 |
Purchases of property, plant and equipment | (681,952) | (1,174,191) |
Net cash used in investing activities | (681,952) | (1,174,191) |
Cash flows from financing activities: | ||
Change in checks written in excess of bank balance | 57,136 | 728,751 |
Net change in revolving line of credit | (1,205,375) | 3,392,860 |
Repayment of long-term debt (related parties $32,000 and $49,000) | (532,198) | (505,484) |
Proceeds from issuance of debt | 4,951 | 115,803 |
Proceeds from issuance of stock, net | 0 | 300,000 |
Proceeds from exercise of stock options and warrants | 5,760 | 0 |
Dividends paid | (16,000) | (16,000) |
Purchase of treasury stock | 0 | (19,495) |
Cash paid for deferred financing fees | (8,627) | (21,500) |
Net cash (used in) provided by financing activities | (1,694,353) | 3,974,935 |
Effect of exchange rate changes on cash | (23,633) | 38,084 |
Net increase (decrease) in cash and cash equivalents | 196,072 | (516,284) |
Cash and cash equivalents at beginning of year | 150,332 | 666,616 |
Cash and cash equivalents at end of year | 346,404 | 150,332 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest | 1,235,878 | 1,155,461 |
Cash payments for taxes | 0 | 215,000 |
Supplemental Disclosure of non-cash investing and financing activity | ||
Property, Plant & Equipment acquisitions funded by liabilities | 70,928 | 80,765 |
Interest accrued not paid | $ 86,663 | $ 80,772 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows [Parenthetical] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Repayment of related party debt | $ 32,000 | $ 49,000 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Nature of Business Nature of Operations CTI Industries Corporation, its United Kingdom subsidiary (CTI Balloons Limited), its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies The consolidated financial statements include the accounts of CTI Industries Corporation, its wholly owned subsidiaries CTI Balloons Limited and CTI Supply, Inc. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L., Venture Leasing L.L.C., and Clever Container Company, L.L.C. (Clever Container). The last three entities have been consolidated as variable interest entities. All significant intercompany accounts and transactions have been eliminated upon consolidation. The determination of whether or not to consolidate a variable interest entity under U.S. GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interest. To make these judgments, management has conducted an analysis of the relationship of the holders of variable interest to each other, the design of the entity, the expected operations of the entity, which holder of variable interests is most “closely associated” to the entity and which holder of variable interests is the primary beneficiary required to consolidate the entity. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a variable interest entity. Upon the adoption of amended accounting guidance applicable to variable interest entities on January 1, 2015, management continually reconsiders whether the Company is deemed to be a variable interest entity’s primary beneficiary who consolidates such entity. The Company has three entities that have been consolidated as variable interest entities. (See Note 13) The financial statements of foreign subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities, the historical exchange rate for stockholders’ equity, and a weighted average exchange rate for each period for revenues and expenses. Translation adjustments are recorded in accumulated other comprehensive income (loss) as the local currencies of the subsidiaries are the functional currencies. Foreign currency transaction gains and losses are recognized in the period incurred and are included in the consolidated statements of operations. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the amounts reported of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period in the financial statements and accompanying notes. Actual results may differ from those estimates. The Company’s significant estimates include valuation allowances for doubtful accounts, lower of cost or market of inventory, slow moving inventory, deferred tax assets, recovery value of goodwill, and assumptions used as inputs in the Black-Scholes option-pricing model. Cash and cash equivalents include cash on hand, demand deposits and short term investments with original maturities of three months or less. Trade receivables are carried at original invoice amount less an estimate for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts, evaluating the individual customer receivables through consideration of the customer’s financial condition, credit history and current economic conditions and use of historical experience applied to an aging of accounts. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for a period over the customer’s normal terms. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Inventories are stated at the lower of cost or market. Cost is determined using standard costs which approximates costing determined on a first-in, first-out basis, to reflect the actual cost of production of inventories. Production costs of work in process and finished goods include material, labor and overhead. Work in process and finished goods are not recorded in excess of net realizable value. Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line method over the lesser of the estimated useful life or the lease term. The estimated useful lives range as follows: Building 25 30 Machinery and equipment 3 15 Projects that prolong the life and increase efficiency of machinery 3 5 Light Machinery 5 10 Heavy Machinery 10 15 Office furniture and equipment 5 8 Intellectual Property 9 15 Leasehold improvements 5 8 Furniture and equipment at customer locations 1 3 Light machinery consists of forklifts, scissor lifts, and other warehouse machinery. Heavy machinery consists of production equipment including laminating, printing and converting equipment. Projects in process represent those costs capitalized in connection with construction of new assets and/or improvements to existing assets including a factor for interest on funds committed to projects in process of $ 29,000 35,000 The Company has stock-based incentive plans which may grant stock option, restricted stock, and unrestricted stock awards. The Company recognizes stock-based compensation expense based on the grant date fair value of the award and the related vesting terms. The fair value of stock-based awards is determined using the Black-Scholes model, which incorporates assumptions regarding the risk-free interest rate, expected volatility, expected option life, and dividend yield. See Note 16 for additional information. GAAP USA defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements required under other accounting pronouncements. See Note 4 for further discussion. The Company accounts for derivative instruments in accordance with GAAP USA, which requires that all derivative instruments be recognized on the balance sheet at fair value. We enter into interest rate swaps to fix the interest rate on a portion of our variable interest rate debt to reduce the potential volatility in our interest expense that would otherwise result from changes in market interest rates. Our derivative instruments are recorded at fair value and are included in accrued liabilities of our consolidated balance sheet. Our accounting policies for these instruments are based on whether they meet our criteria for designation as hedging transactions, which include the instrument’s effectiveness, risk reduction and, in most cases, a one-to-one matching of the derivative instrument to our underlying transaction. Gains and losses from changes in fair values of derivatives that are not designated as hedges for accounting purposes are recognized in the consolidated statement of operations. We have no derivative financial instruments designated as hedges. Therefore, changes in fair value for the respective periods were recognized in the consolidated statement of operations. The Company applies the provisions of GAAP USA, under which goodwill is tested at least annually for impairment. Goodwill on the accompanying balance sheets relates to the Company’s acquisition of Flexo Universal in a prior year as well as the investment in CTI Europe in a prior year and the goodwill related to Clever Container, a variable interest entity in which CTI is the primary beneficiary. It is the Company’s policy to perform impairment testing for Flexo Universal and Clever Container annually as of December 31, or as circumstances change. An annual impairment review was completed and no impairment was noted for the years ended December 31, 2015 and 2014 (see Note 14). While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect these evaluations. The Company evaluates whether events or circumstances have occurred which indicate that the carrying amounts of long-lived assets (principally property, plant and equipment) may be impaired or not recoverable. The significant factors that are considered that could trigger an impairment review include: changes in business strategy, market conditions, or the manner of use of an asset; underperformance relative to historical or expected future operating results; and negative industry or economic trends. In evaluating an asset for possible impairment, management estimates that asset’s future undiscounted cash flows and appraised values to measure whether the asset is recoverable. The Company measures the impairment based on the projected discounted cash flows of the asset over its remaining life. Deferred financing costs are amortized on a straight line basis over the term of the loan. Upon a refinancing, existing unamortized deferred financing costs are expensed. The Company accounts for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when management cannot determine, in its opinion, that it is more likely than not that the Company will recover that recorded value of the deferred tax asset. The Company is subject to U.S. Federal, state and local taxes as well as foreign taxes in the United Kingdom, Germany and Mexico. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Unrecognized tax benefits are accounted for as required by GAAP USA which prescribes a more likely than not threshold for financial statement presentation and measurement of a tax position taken or expected to be taken in a tax return. See Note 10 for further discussion. The Company recognizes revenue when title transfers upon shipment. Revenue from a transaction is not recognized until (i) a definitive arrangement exists, (ii) delivery of the product has occurred or the services have been performed and legal title and risk are transferred to the customer, (iii) the price to the buyer has been fixed or is determinable, and (iv) collectability is reasonably assured. In some cases, product is provided on consignment to customers. For these cases, revenue is recognized when the customer reports a sale of the product. The Company conducts product development and research activities which include (i) creative product development and (ii) engineering. During the years ended December 31, 2015 and 2014, research and development activities totaled $ 633,000 633,000 The Company expenses advertising costs as incurred. Advertising expenses amounted to $ 215,000 220,000 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 3 . In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Cost In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases ( |
Fair Value Disclosures; Derivat
Fair Value Disclosures; Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | 4. Fair Value Disclosures; Derivative Instruments GAAP USA clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. GAAP USA also requires that a fair value measurement reflect the assumptions market participants would use in pricing an asset or liability based upon the best information available. GAAP USA establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs are observable for the asset or liability, or unobservable but corroborated by market data, for substantially the full term of the financial instrument. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of the input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Amount as of Description 12/31/2015 Level 1 Level 2 Level 3 Warrant Liability $ 714,000 - $ 714,000 - $ 714,000 $ 714,000 Amount as of Description 12/31/2014 Level 1 Level 2 Level 3 Warrant Liability $ 525,000 - $ 525,000 - $ 525,000 $ 525,000 The fair value of the warrants issued to BMO Equity (see Note 8) was estimated on the date of the grant using the Black-Scholes option-pricing model. This model uses the assumptions listed in the table below as of July 17, 2012 (initial valuation date of the warrants). In the valuation of the warrants, it was determined that the warrants were required to be carried as a derivative liability at fair value. Changes in the fair value of the warrants have been recognized in the consolidated statement of operations. GAAP USA requires an entity to recognize all derivatives as either assets or liabilities in the consolidated balance sheet and to measure those instruments at fair value. Under certain conditions, a derivative may be specifically designated as a fair value hedge or a cash flow hedge. |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 5. Other Comprehensive Loss The following table sets forth the tax effects of components of other comprehensive loss and the accumulated balance of other comprehensive loss and each component. for the years ended December 31, 2015 and 2014 Tax Before-Tax (Expense) Net-of-Tax Amount or Benefit Amount 2015 Foreign currency translation adjustments $ (1,175,106) $ - $ (1,175,106) Other comprehensive loss $ (1,175,106) $ - $ (1,175,106) Tax Before-Tax (Expense) Net-of-Tax Amount or Benefit Amount 2014 Foreign currency translation adjustments $ (647,711) $ - $ (647,711) Other comprehensive loss $ (647,711) $ - $ (647,711) Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (2,901,212) $ (2,901,212) Current period change (1,175,106) (1,175,106) Ending balance $ (4,076,318) $ (4,076,318) Accumulated Other Comprehensive Loss Balances as of December 31, 2014 Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (2,253,501) $ (2,253,501) Current period change (647,711) (647,711) Ending balance $ (2,901,212) $ (2,901,212) For the years ended December 31, 2015 and 2014, no tax benefit has been recorded on the foreign currency translation adjustments; as such amounts would result in a deferred tax asset and are not expected to reverse in the foreseeable future. |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2015 | |
Major Customers Disclosure [Abstract] | |
Major Customers Disclosure [Text Block] | 6 . For the year ended December 31, 2015, the Company had two customers that accounted for approximately 26.9 15.4 26.2 13.7 2,849,000 2,685,000 2,951,000 2,422,000 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 7. Inventories Inventories are stated at the lower of cost or market. Cost is determined using standard costs which approximate costing determined on a first-in, first out basis. Standard costs are reviewed and adjusted periodically and at year end based on actual direct and indirect production costs. On a periodic basis, the Company reviews its inventory for estimated obsolescence or unmarketable items, primarily by reviewing future demand requirements and shelf life of the product. December 31, December 31, 2015 2014 Raw materials $ 2,770,636 $ 3,294,030 Work in Process 2,198,981 1,657,164 Finished Goods 13,723,090 13,448,796 Allowance for excess quantities (822,796) (644,690) Total inventories $ 17,869,911 $ 17,755,300 |
Notes Payable and Capital Lease
Notes Payable and Capital Leases | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | Notes Payable and Capital Leases Dec. 31, 2015 Dec. 31, 2014 Mezzanine Note Payable with BMO Private Equity, balance due January 18, 2018, interest at 11.50% (effective rate of 15.56%) $ 5,000,000 $ 5,000,000 Less: Remaining debt discount to be amortized (283,000) (430,000) Term Loan with Barrington Bank, payable in monthly installments of $11,000 amortized over 7 years, interest at 6.25%, balance due May 2016, which uses balloon production and related equipment as collateral 311,000 426,000 Mortgage Loan with BMO Harris, payable in monthly installments of $7,778 plus interest at prime (3.25%) plus a variable rate (based on loan covenants) of 0.75% (4.0%) at December 31, 2015 (amortized over 25 years), balance due July 18, 2017 1,804,000 1,898,000 Promissory Note with John J. Blaser and Stephanie M. Blaser (Related Party) due on demand, interest at 4.25%. - 10,000 Term Loan with BMO Harris, payable in monthly installments of $22,323 beginning April 2012 plus interest at prime (3.25%) plus a variable rate (based on loan covenants) of 0.75% (4.00%) at December 31, 2015, (amortized over 5 years), balance due March 31, 2017. 335,000 603,000 Capital Lease with First American Equipment Finance, payable in monthly installments of $2,890 (amortized over 5 years). 67,000 96,000 Capital Lease with Wells Fargo, payable in monthly installments of $367 (amortized over 5 years). 10,000 14,000 Capital Lease with Wells Fargo, payable in monthly installments of $550 (amortized over 3 years). 10,000 15,000 Subordinated Notes (Officer) due on demand, interest at 9% (see Notes 9, 12). 5,000 4,000 Subordinated Notes (Officer) due on demand, interest at 8% (see Notes 9, 12). 741,000 684,000 Subordinated Notes (Officer) due on demand, interest at prime (3.25%) plus 2% (5.25%) at December 31, 2015 (see Note 9). 577,000 548,000 Notes Payable (Affiliates) due 2015, interest at prime (3.25%) plus 0.25% (3.50%) at December 31, 2015 (see Note 12) (Related Party). 27,000 29,000 Promissory Note with Merrick Company due on demand, interest at 4.25% (Related Party). 113,000 109,000 Promissory Note with Schwan Leasing due on demand, interest at 4.25% (Related Party). 70,000 70,000 Notes Payable (Affiliates) due 2021, interest at 11.75% (see Note 12) (Related Party). 65,000 85,000 Total long-term debt 8,852,000 9,161,000 Less current portion (551,000) (376,000) Total Long-term debt, net of current portion $ 8,301,000 $ 8,785,000 On April 29, 2010, the Company entered into a Credit Agreement and associated documents with BMO Harris under which BMO Harris agreed to extend to the Company a credit facility in the aggregate amount of $ 14,417,000 9,000,000 2,500,000 2,333,350 583,333 85 60 12,000,000 25 10,469,000 1,456,000 Certain terms of the loan agreement, as amended, include: · Restrictive Covenants : The Loan Agreement includes several restrictive covenants under which we are prohibited from, or restricted in our ability to: o Borrow money; o Pay dividends and make distributions; o Make certain investments; o Use assets as security in other transactions; o Create liens; o Enter into affiliate transactions; o Merge or consolidate; or o Transfer and sell assets. · Financial Covenants : The Loan Agreement includes a series of financial covenants we are required to meet including: o We are required to maintain a tangible net worth (plus Subordinated Debt) in excess of $ 7,100,000 50 o We are required to maintain specified ratios of senior debt to EBITDA on an annual basis and determined quarterly; and, o We are required to maintain a level of adjusted EBITDA to fixed charges on an annual basis determined quarterly of not less than 1.1 to 1 As of December 31, 2015, the Company was in compliance with these covenants. On July 17, 2012, the Company entered into Amendment Number 3 to the Credit Agreement among the Company and BMO Harris pursuant to which (i) the amount of the loan commitment on the revolver loan of BMO Harris was increased from $ 9 12 Also, on July 17, 2012, the Company entered into a Note and Warrant Purchase Agreement with BMO Private Equity (U.S.) pursuant to which (i) BMO Equity advanced to the Company the sum of $ 5 4 140,048 0.01 703,000 146,000 110,000 11.5 The Note and Warrant Purchase Agreement includes provisions for: (i) a closing fee of $ 100,000 (ii) payment of the principal amount in five and a half years with optional prepayment subject to certain prepayment premiums; (iii) security for the note obligations in all assets of the Company junior to the security interest of BMO Harris; (iv) various representations and warranties and covenants of the Company; (v) financial covenants including an applicable senior leverage ratio, fixed charge coverage ratio and tangible net worth amount. On April 12, 2013, the Company entered into Amendment No. 4 to the Credit Agreement among the Company and BMO Harris Bank N.A. (the “Bank”) (the “Credit Agreement Amendment”) and also entered into Amendment No. 1 to the Note and Warrant Purchase Agreement among the Company and BMO Private Equity (U.S.) (the “NWPA Agreement Amendment”). In the Credit Agreement Amendment, the Bank, and in the NWPA Agreement Amendment, BMO Equity, waives defaults by the Company as of December 31, 2012 and March 31, 2013 with respect to certain financial covenants in the agreement relating to the Senior Leverage Ratio and Total Leverage Ratio. In addition, the levels of these financial covenants for June 30, 2013 and subsequent quarters during the term of the agreements are revised. On December 23, 2014, the Company entered into Amendment No. 5 to the Credit Agreement among the Company and BMO Harris, and Amendment No. 2 to the Note and Warrant Purchase Agreement among the Company and BMO Equity. In the Amendments, BMO Harris and BMO Equity waived certain anticipated events of default as of December 31, 2014 by the Company with respect the amount of capital expenditures and the change of name of a subsidiary, and both the Credit Agreement and the Note and Warrant Purchase Agreement were amended (i) to exclude from the definition of Senior Funded Debt and Total Funded Debt certain indebtedness of a variable interest entity, (ii) to require Registrant to provide financial reports and variance reports to the Bank within 45 days after the end of each calendar month, (iii) to change the Senior Leverage Ratio and Total Leverage Ratio requirements for fiscal quarters ending December 31, 2014 and for each fiscal quarter thereafter to the maturity of the loans, and (iv) to provide for the engagement by the Company of a financial consultant to provide business financial planning and advisory services to the Company. On October 13, 2015, the Company entered into Amendment No. 6 to the Credit Agreement among the Company and BMO Harris. Pursuant to the terms of the Amendment, the company will be able to obtain advances under the revolving line of credit with BMO Harris in the amount provided for in the borrowing base formula plus an overadvance amount of up to $ 1 12 2016 $ 551,000 2017 1,716,000 2018 5,016,000 2019 12,000 2020 14,000 Thereafter 1,543,000 Total $ 8,852,000 |
Subordinated Debt - Related Par
Subordinated Debt - Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Borrowings [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | 9. Subordinated Debt - Related Parties In February 2003, the Company received $ 1,630,000 9 163,000 4.87 880,000 460,000 794,000 4,000 In February 2006, the Company received $ 1,000,000 303,030 3.30 443,000 577,000 At various times from 2003 to 2005, certain shareholders loaned an aggregate of $ 814,000 8 741,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. Income Taxes Dec. 31 2015 Dec. 31 2014 Current: Federal $ 6,516 $ - State 4,200 94,371 Foreign 374,071 578,798 $ 384,787 $ 673,169 Deferred Federal $ (63,433) $ (550,089) State - - Foreign 48,242 66,887 (15,191) (483,202) Total Income Tax Provision $ 369,596 $ 189,967 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 21,150 $ 69,898 Inventory allowances 314,101 246,425 Accrued liabilities 372,172 282,055 Unicap 263A adjustment 170,765 157,240 Net operating loss carryforwards 511,403 685,322 Alternative minimum tax credit carryforwards - 398,162 State investment tax credit carryforward 22,448 10,912 Foreign tax credit carryforward 916,121 696,509 Other foreign tax items 44,394 50,747 Foreign net operating loss carryforwards 424,164 466,053 Total deferred tax assets 2,796,718 3,063,323 Deferred tax liabilities: Tax over book basis of capital assets (1,004,437) (1,083,852) Undistributed Earnings from Subsidiaries - (247,385) Other foreign tax items - - Net deferred tax assets before valuation allowance $ 1,792,281 $ 1,732,086 Less: Valuation allowance (45,000) - Net deferred tax assets 1,747,281 1,732,086 The Company has net operating loss carryforwards of approximately $ 1,858,000 Years Ended December 31, 2015 2014 Taxes at statutory rate $ 444,471 $ 183,344 State income taxes 66,867 27,583 Nondeductible expenses 46,523 59,129 Foreign taxes and other (188,266) (80,089) Income tax provision $ 369,596 $ 189,967 The Company files tax returns in the U.S., and in the U.K, Germany and Mexico foreign tax jurisdictions and also in various state jurisdictions in the U.S. The tax years 2012 through 2014 remain open to examination. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2015 and 2014, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2015 and 2014, as the Company does not believe it h as any uncertain tax positions. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 11. Employee Benefit Plan The Company has a defined contribution plan for substantially all employees. Profit sharing contributions may be made at the discretion of the Board of Directors. Effective January 1, 2006, the Company amended its defined contribution plan. Under the amended plan, the maximum contribution for the Company is 4% of gross wages. Employer contributions to the plan totaled $76,000 and $98,000 for the years ended December 31, 2015 and 2014, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 12. Related Party Transactions Stephen M. Merrick, President of the Company, is of counsel to a law firm from which the Company received legal services during the year. Mr. Merrick is both a director and a shareholder of the Company. Legal fees paid to this firm were $ 149,000 175,000 John H. Schwan, Chief Executive Officer of the Company, is the brother of Gary Schwan, one of the owners of Schwan Incorporated, which provides building maintenance and remodeling services to the Company. The Company made payments to Schwan Incorporated of approximately $ 4,000 22,000 During the period from January 2003 to the present, John H. Schwan, Chief Executive Officer of the Company, has made loans to the Company which have outstanding balances, for the Company of $ 1,323,000 1,236,000 87,000 81,000 During 2010, Schwan Leasing and Merrick Company, owned by John H. Schwan and Stephen M. Merrick, provided financing for the acquisition and construction of latex balloon production and related equipment (see Note 13). Other Assets include amounts due to the Company from its employees. As of December 31, 2015 and 2014, the balance outstanding on these amounts was $ 46,000 47,000 Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of December 31, 2015 and 2014 include loans by shareholders to Flexo Universal totaling $ 65,000 85,000 27,000 29,000 The transactions described in Note 13. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIE") and Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities and Transactions [Text Block] | 13. Variable Interest Entities (“VIE”) and Transactions During 2010, two entities owned by officers and principal shareholders of the Company (John H. Schwan and Stephen M. Merrick) provided financing for Flexo Universal, the Company’s Mexico subsidiary, for the acquisition and construction of latex balloon production and related equipment. The entities included Venture Leasing L.L.C., (“VLUS”), an Illinois limited liability company which is 100% owned by an entity owned by Mr. Schwan and Mr. Merrick, and Venture Leasing Mexico S. A. de R. L (“VLM”), a Mexico company which is also owned 100% by entities owned by Mr. Schwan and Mr. Merrick. The Company is the primary beneficiary of VLUS & VLM and accordingly consolidated the result of the entities in its financial statements. Mr. Schwan and Mr. Merrick, through entities owned by them, arranged for a line of credit in the amount of $1,000,000 from Barrington Bank in order to loan monies to VLUS as needed. During 2010, VLUS received advances on this line totaling $700,000. VLUS loaned substantially all of these funds to VLM. VLM utilized the funds to purchase materials, parts, components and services for the acquisition and construction of balloon production and related equipment to be placed at the premises of Flexo Universal. Assembly and construction of this equipment was completed on or about December 31, 2010 and, in January 2011, the equipment was placed in service at Flexo Universal. Title to the equipment remains in the name of VLM. VLM leases the equipment to Flexo Universal under a lease in which Flexo Universal will pay to VLM rental payments at the rate of approximately $9,000 per month and will have the right to purchase the equipment from VLM at the expiration of the lease at fair market value. The Company has not provided any guarantees related to VLUS or VLM and no creditors of the variable interest entities have recourse to the general credit of the Company as a result of including VLUS & VLM in the consolidated financial statements. The accounts of VLM and VLUS have been consolidated with the accounts of the Company. Mr. Schwan and Mr. Merrick are 50% owners of Clever Container, an Illinois limited liability company engaged in the sale and distribution through a network of independent distributors, of household items including containers and organizing products. The Company produces and sells certain container products to Clever Container and also purchases and re-sells products to Clever Container. By reason of the level of ownership of Clever Container by two principal officers and shareholders of the Company and the transactions among the Company and Clever Container, the determination was made to consolidate the results of Clever Container in the consolidated financial statements of the Company commencing as of October 1, 2013 and going forward. The following sets forth the condensed balance sheet of VLM, VLUS and Clever Container for December 31, 2015 and 2014. Dec. 31, 2015 Dec. 31, 2014 Current Assets $ 1,400,000 $ 790,000 Property, plant and equipment, net 462,000 557,000 Other noncurrent assets 794,000 879,000 Total assets $ 2,657,000 $ 2,226,000 Mortgages and other long-term debt payable $ 2,775,000 $ 2,142,000 Total liabilities $ 2,775,000 $ 2,142,000 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | 14. Goodwill Under the provisions of GAAP USA, goodwill is subject to at least annual assessments for impairment by applying a fair-value based test. GAAP USA also requires that an acquired intangible asset should be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, licensed, rented or exchanged, regardless of the acquirer’s intent to do so. The Company has no acquired intangible assets other than goodwill. As of December 31, 2015 and 2014, we determined that the fair value of the Company’s interest in goodwill related to Flexo Universal as recorded was not impaired. The carrying amount of goodwill as of December 31, 2015 and 2014 was $ 989,000 During 2010, the Company purchased an additional interest of $ 101,000 44,000 As of October 1, 2013, the Company became the primary beneficiary of a variable interest entity, Clever Container, and as a result consolidated the operations of this entity in its consolidated financial statements, in which goodwill of approximately $ 440,000 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | 15. Commitments Operating Leases In August 2015, the Company’s United Kingdom subsidiary entered into a 5 9,000 6,000 In September 2012, the Company’s German subsidiary entered into a 3 3,000 2,000 5 6,000 5,000 In August 2011, Flexo Universal entered into a 5 73,000 30,000 February 28, 2017 117,000 Lease period Amount per month March 1, 2013 October 31, 2013 $ 25,000 November 1, 2013 October 31, 2014 28,000 November 1, 2014 October 31, 2015 30,000 November 1, 2015 October 31, 2016 33,000 November 1, 2016 February 28, 2017 36,000 All of the Company’s lease payments are recognized on a straight-line basis. The net lease expense was $ 950,000 954,000 2016 $ 773,000 2017 197,000 2018 126,000 Thereafter 574,000 Total $ 1,670,000 Licenses The Company has certain merchandising license agreements that require royalty payments based upon the Company’s net sales of the respective products. The agreements call for guaranteed minimum commitments that are determined on a calendar year basis. 2016 $ 450,000 Thereafter 500,000 Total $ 950,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 16. Stockholders’ Equity Stock Options The Company has adopted GAAP USA which requires all stock-based payments to employees, including grants of employee stock options, to be recognized in the consolidated financial statements based on their grant-date fair values. The Compensation Committee administers the stock-based plans. The exercise price for Incentive Stock Options (“ISO”) cannot be less than the fair value of the stock subject to the option on the grant date (110% of such fair value in the case of ISOs granted to a stockholder who owns more than 10% of the Company’s Common Stock). The exercise price of a Non-Qualified Stock Options (“NQSO”) shall be fixed by the Compensation Committee at whatever price the Committee may determine in good faith. Unless the Committee determines otherwise, options beginning with the 2007 Plan generally have a 4-year term with a 3-year vesting schedule. The Company has applied the Black-Scholes model to value stock-based awards. That model incorporates various assumptions in the valuation of stock-based awards relating to the risk-free rate of interest to be applied, the estimated dividend yield and expected volatility of the Company’s Common Stock. The risk-free rate of interest is the U.S. Treasury yield curve for periods within the expected term of the option at the time of grant. The expected volatility is based on historical volatility of the Company’s Common Stock. The valuation assumptions we have applied to determine the value of stock-based awards were as follows: Historical stock price volatility: The Company used the weekly closing price to calculate historical annual volatility. Risk-free interest rate: The Company bases the risk-free interest rate on the rate payable on US treasury securities in effect at the time of the grant, which varied between 1.36% and 1.80%. Expected life: The expected life of the option represents the period of time options are expected to be outstanding. The Company uses an expected life of 3.75 Dividend yield: The estimate for dividend yield is 0.0 Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements. The Company, at the discretion of the board, may issue options in excess of the total available, if options related to that stock plan are cancelled. In some cases, not all shares that are available to a stock plan are issued, as the Company is unable to issue options to a previous plan when a new plan is in place. The Company’s pre-tax income for the fiscal year ended December 31, 2015 and 2014 includes approximately $ 29,000 77,000 60,000 34,000 14,000 7,000 On April 12, 2001, the Board of Directors approved for adoption, effective December 27, 2001, the 2001 Stock Option Plan (“2001 Plan”). The 2001 Plan authorizes the grant of options to purchase up to an aggregate of 119,050 139,958 2,000 On April 24, 2002, the Board of Directors approved for adoption, effective October 12, 2002, the 2002 Stock Option Plan (“2002 Plan”). The 2002 Plan authorizes the grant of options to purchase up to an aggregate of 142,860 123,430 27,500 On April 10, 2009, the Board of Directors approved for adoption, and on June 5, 2009, the shareholders of the Company approved the 2009 Stock Incentive Plan (“2009 Plan”). The 2009 Plan authorizes the issuance of up to 250,000 49,000 250,000 154,000 64,400 89,600 148,000 6,000 Vesting Schedule A Vesting Schedule B Vesting Schedule C Vesting Schedule D 25 % 12 months 33 % 24 months 50 % 48 months 20 % 6 months 50 % 24 months 67 % 36 months 100 % 57 months 40 % 18 months 75 % 36 months 100 % 48 months 60 % 30 months 100 % 48 months 80 % 42 months 100 % 54 months No options were exercised during the years ended December 31, 2015 and December 31, 2014. December 31, 2015 December 31, 2014 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Exercisable, beginning of period 132,099 $ 5.07 83,718 $ 4.67 Vested 34,801 5.65 56,464 5.76 Exercised 29,500 2.88 - - Cancelled (73,000) 6.06 (8,083) 5.77 Exercisable at the end of period 64,400 $ 5.26 132,099 $ 5.07 December 31, 2015 December 31, 2014 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Outstanding, beginning of period 214,500 $ 5.20 228,500 $ 5.23 Granted 49,000 5.27 - - Exercised 29,500 2.88 - - Cancelled (80,000) 6.01 (14,000) 5.68 Outstanding at the end of period 154,000 $ 5.25 214,500 $ 5.20 At December 31, 2015, there were 96,000 Options Outstanding Options Vested Options by Weighted Remain. Intrinsic Weighted Remain. Intrinsic Grant Date Shares Avg. Life Val Shares Avg. Life Val Dec 2005 - - - - - - - - Dec 2010 - - - - - - - - Jan 2011 6,000 5.96 0.0 - 6,000 5.96 0.0 - Nov 2012 94,000 5.17 1.9 - 56,400 5.17 1.9 - Nov 2013 5,000 5.75 2.9 - 2,000 5.75 2.9 - Dec 2015 49,000 5.27 5.0 $ 1,450 - - - - TOTAL 154,000 5.25 2.9 $ 1,450 64,400 5.26 1.8 - Warrants On July 17, 2012, the Company issued detachable warrants in connection with the Note and Warrant Purchase Agreement with BMO Equity (see Note 8). The warrants are exercisable at any time after July 17, 2012 and until July 17, 2022, or 18 months after full payment of the related $ 5,000,000 4 0.01 703,000 The fair value of the detachable warrants was estimated on the date of the grant using the Black-Scholes option-pricing model. This model uses the assumptions listed in the table below as of July 17, 2012 (initial valuation date of the warrants). In the valuation of the warrants, it was determined that the warrants were required to be carried as a derivative liability at fair value. December 31, December 31, December 31, December 31, July 17, 2015 2014 2013 2012 2012 Weighted average fair value per warrant $ 5.11 $ 3.76 $ 5.84 $ 4.87 $ 5.03 Risk-free interest rate 1.76 % 2.47 % 2.45 % 1.18 % 0.99 % Expected lives 4.0 yrs. 5.0 yrs. 6.0 yrs. 7.0 yrs. 7.5 yrs. Expected volatility 28.99 % 44.99 % 37.49 % 28.18 % 36.98 % December 31, 2015 December 31, 2014 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Outstanding and exercisable, beginning of period 140,048 $ 0.01 140,048 $ 0.01 Granted - - - - Exercised - - - - Cancelled - - - - Outstanding and exercisable at the end of period 140,048 $ 0.01 140,048 $ 0.01 The warrants outstanding and exercisable as of December 31, 2015 have a remaining life of 6.55 714,000 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 17. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period. For the three and twelve months ended December 31, 2015, 106,065 185,000 Year Ended December 31, 2015 2014 Basic Average shares outstanding: Weighted average number of shares outstanding during the period 3,297,448 3,288,332 Earnings: Net income attributable to CTI Industries Corporation $ 1,047,333 $ 514,318 Amount for per share Computation $ 1,047,333 $ 514,318 Net earnings applicable to Common Shares $ 0.32 $ 0.16 Diluted Average shares outstanding: 3,297,448 3,288,332 Weighted averages shares Outstanding Common stock equivalents (options, warrants) 139,692 151,095 Weighted average number of shares outstanding during the period 3,437,140 3,439,427 Earnings: Net income attributable to CTI Industries Corporation $ 1,047,333 $ 514,318 Amount for per share computation $ 1,047,333 $ 514,318 Net income applicable to Common Shares $ 0.30 $ 0.15 |
Geographic Segment Data
Geographic Segment Data | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 18. Geographic Segment Data The Company’s operations consist of a business segment which designs, manufactures, and distributes film products. Transfers between geographic areas were primarily at cost plus a standard markup. The Company’s subsidiaries have assets consisting primarily of trade accounts receivable, inventory and machinery and equipment. Europe United Kingdom (Excluding United States (UK) UK) Mexico Consolidated Year ended 12/31/15 Sales to outside customers $ 46,520,000 $ 2,207,000 $ 1,530,000 $ 9,108,000 $ 59,365,000 Total Assets $ 30,772,000 $ 1,791,000 $ 1,562,000 $ 7,680,000 $ 41,805,000 Europe United Kingdom (Excluding United States (UK) UK) Mexico Consolidated Year ended 12/31/14 Sales to outside customers $ 42,896,000 $ 2,497,000 $ 1,592,000 $ 10,843,000 $ 57,828,000 Total Assets $ 33,026,000 $ 1,048,000 $ 1,457,000 $ 7,516,000 $ 43,047,000 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies Disclosure [Text Block] | 19. Contingencies In the ordinary conduct of our business, we are from time to time subject to lawsuits, investigations and claims, including environmental claims and employee-related matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, including civil penalties or other enforcement actions, we do not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on our business, financial condition or results of operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 20. Subsequent Events On January 8, 2016, the Company acquired a 28.5 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts: | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II Valuation and Qualifying Accounts: The following is a summary of the allowance for doubtful accounts related to accounts receivable for the years ended December 31: 2015 2014 Balance at beginning of year $ 230,000 $ 217,000 Charged to expenses 55,000 67,000 Uncollectible accounts written off (159,000) (54,000) Balance at end of year $ 126,000 $ 230,000 The following is a summary of the allowance for excess inventory for the years ended December 31: 2015 2014 Balance at beginning of year $ 645,000 $ 738,000 Charged to expenses 179,000 (92,000) Obsolete inventory written off (1,000) (1,000) Balance at end of year $ 823,000 $ 645,000 The following is a summary of property and equipment and the related accounts of accumulated depreciation for the years ended December 31: 2015 2014 Cost Basis Balance at beginning of year $ 38,818,011 $ 38,400,335 Additions 207,239 817,636 Disposals - (399,960) Balance at end of year $ 39,025,250 $ 38,818,011 Accumulated depreciation Balance at beginning of year $ 31,062,484 $ 29,718,564 Depreciation 1,409,210 1,743,880 Disposals - (399,960) Balance at end of year $ 32,471,694 $ 31,062,484 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of CTI Industries Corporation, its wholly owned subsidiaries CTI Balloons Limited and CTI Supply, Inc. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L., Venture Leasing L.L.C., and Clever Container Company, L.L.C. (Clever Container). The last three entities have been consolidated as variable interest entities. All significant intercompany accounts and transactions have been eliminated upon consolidation. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities The determination of whether or not to consolidate a variable interest entity under U.S. GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interest. To make these judgments, management has conducted an analysis of the relationship of the holders of variable interest to each other, the design of the entity, the expected operations of the entity, which holder of variable interests is most “closely associated” to the entity and which holder of variable interests is the primary beneficiary required to consolidate the entity. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a variable interest entity. Upon the adoption of amended accounting guidance applicable to variable interest entities on January 1, 2015, management continually reconsiders whether the Company is deemed to be a variable interest entity’s primary beneficiary who consolidates such entity. The Company has three entities that have been consolidated as variable interest entities. (See Note 13) |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of foreign subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities, the historical exchange rate for stockholders’ equity, and a weighted average exchange rate for each period for revenues and expenses. Translation adjustments are recorded in accumulated other comprehensive income (loss) as the local currencies of the subsidiaries are the functional currencies. Foreign currency transaction gains and losses are recognized in the period incurred and are included in the consolidated statements of operations. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the amounts reported of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period in the financial statements and accompanying notes. Actual results may differ from those estimates. The Company’s significant estimates include valuation allowances for doubtful accounts, lower of cost or market of inventory, slow moving inventory, deferred tax assets, recovery value of goodwill, and assumptions used as inputs in the Black-Scholes option-pricing model. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short term investments with original maturities of three months or less. |
Accounts Receivable Policy [Policy Text Block] | Accounts Receivable Trade receivables are carried at original invoice amount less an estimate for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts, evaluating the individual customer receivables through consideration of the customer’s financial condition, credit history and current economic conditions and use of historical experience applied to an aging of accounts. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for a period over the customer’s normal terms. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market. Cost is determined using standard costs which approximates costing determined on a first-in, first-out basis, to reflect the actual cost of production of inventories. Production costs of work in process and finished goods include material, labor and overhead. Work in process and finished goods are not recorded in excess of net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line method over the lesser of the estimated useful life or the lease term. The estimated useful lives range as follows: Building 25 30 Machinery and equipment 3 15 Projects that prolong the life and increase efficiency of machinery 3 5 Light Machinery 5 10 Heavy Machinery 10 15 Office furniture and equipment 5 8 Intellectual Property 9 15 Leasehold improvements 5 8 Furniture and equipment at customer locations 1 3 Light machinery consists of forklifts, scissor lifts, and other warehouse machinery. Heavy machinery consists of production equipment including laminating, printing and converting equipment. Projects in process represent those costs capitalized in connection with construction of new assets and/or improvements to existing assets including a factor for interest on funds committed to projects in process of $ 29,000 35,000 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company has stock-based incentive plans which may grant stock option, restricted stock, and unrestricted stock awards. The Company recognizes stock-based compensation expense based on the grant date fair value of the award and the related vesting terms. The fair value of stock-based awards is determined using the Black-Scholes model, which incorporates assumptions regarding the risk-free interest rate, expected volatility, expected option life, and dividend yield. See Note 16 for additional information. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements GAAP USA defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements required under other accounting pronouncements. See Note 4 for further discussion. The Company accounts for derivative instruments in accordance with GAAP USA, which requires that all derivative instruments be recognized on the balance sheet at fair value. We enter into interest rate swaps to fix the interest rate on a portion of our variable interest rate debt to reduce the potential volatility in our interest expense that would otherwise result from changes in market interest rates. Our derivative instruments are recorded at fair value and are included in accrued liabilities of our consolidated balance sheet. Our accounting policies for these instruments are based on whether they meet our criteria for designation as hedging transactions, which include the instrument’s effectiveness, risk reduction and, in most cases, a one-to-one matching of the derivative instrument to our underlying transaction. Gains and losses from changes in fair values of derivatives that are not designated as hedges for accounting purposes are recognized in the consolidated statement of operations. We have no derivative financial instruments designated as hedges. Therefore, changes in fair value for the respective periods were recognized in the consolidated statement of operations. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill The Company applies the provisions of GAAP USA, under which goodwill is tested at least annually for impairment. Goodwill on the accompanying balance sheets relates to the Company’s acquisition of Flexo Universal in a prior year as well as the investment in CTI Europe in a prior year and the goodwill related to Clever Container, a variable interest entity in which CTI is the primary beneficiary. It is the Company’s policy to perform impairment testing for Flexo Universal and Clever Container annually as of December 31, or as circumstances change. An annual impairment review was completed and no impairment was noted for the years ended December 31, 2015 and 2014 (see Note 14). While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect these evaluations. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Valuation of Long Lived Assets The Company evaluates whether events or circumstances have occurred which indicate that the carrying amounts of long-lived assets (principally property, plant and equipment) may be impaired or not recoverable. The significant factors that are considered that could trigger an impairment review include: changes in business strategy, market conditions, or the manner of use of an asset; underperformance relative to historical or expected future operating results; and negative industry or economic trends. In evaluating an asset for possible impairment, management estimates that asset’s future undiscounted cash flows and appraised values to measure whether the asset is recoverable. The Company measures the impairment based on the projected discounted cash flows of the asset over its remaining life. |
Deferred Financing Costs Policy [Policy Text Block] | Deferred Financing Costs Deferred financing costs are amortized on a straight line basis over the term of the loan. Upon a refinancing, existing unamortized deferred financing costs are expensed. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when management cannot determine, in its opinion, that it is more likely than not that the Company will recover that recorded value of the deferred tax asset. The Company is subject to U.S. Federal, state and local taxes as well as foreign taxes in the United Kingdom, Germany and Mexico. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Unrecognized tax benefits are accounted for as required by GAAP USA which prescribes a more likely than not threshold for financial statement presentation and measurement of a tax position taken or expected to be taken in a tax return. See Note 10 for further discussion. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue when title transfers upon shipment. Revenue from a transaction is not recognized until (i) a definitive arrangement exists, (ii) delivery of the product has occurred or the services have been performed and legal title and risk are transferred to the customer, (iii) the price to the buyer has been fixed or is determinable, and (iv) collectability is reasonably assured. In some cases, product is provided on consignment to customers. For these cases, revenue is recognized when the customer reports a sale of the product. |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development The Company conducts product development and research activities which include (i) creative product development and (ii) engineering. During the years ended December 31, 2015 and 2014, research and development activities totaled $ 633,000 633,000 |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs The Company expenses advertising costs as incurred. Advertising expenses amounted to $ 215,000 220,000 |
Fair Value Disclosures; Deriv30
Fair Value Disclosures; Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents information about the Company’s liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Amount as of Description 12/31/2015 Level 1 Level 2 Level 3 Warrant Liability $ 714,000 - $ 714,000 - $ 714,000 $ 714,000 Amount as of Description 12/31/2014 Level 1 Level 2 Level 3 Warrant Liability $ 525,000 - $ 525,000 - $ 525,000 $ 525,000 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Tax Effects Allocated To Each Component Of Other Comprehensive Loss Income [Table Text Block] | Tax Effects Allocated to Each Component of Other Comprehensive Loss for the years ended December 31, 2015 and 2014 Tax Before-Tax (Expense) Net-of-Tax Amount or Benefit Amount 2015 Foreign currency translation adjustments $ (1,175,106) $ - $ (1,175,106) Other comprehensive loss $ (1,175,106) $ - $ (1,175,106) Tax Before-Tax (Expense) Net-of-Tax Amount or Benefit Amount 2014 Foreign currency translation adjustments $ (647,711) $ - $ (647,711) Other comprehensive loss $ (647,711) $ - $ (647,711) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss Balances as of December 31, 2015 Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (2,901,212) $ (2,901,212) Current period change (1,175,106) (1,175,106) Ending balance $ (4,076,318) $ (4,076,318) Accumulated Other Comprehensive Loss Balances as of December 31, 2014 Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (2,253,501) $ (2,253,501) Current period change (647,711) (647,711) Ending balance $ (2,901,212) $ (2,901,212) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories are comprised of the following: December 31, December 31, 2015 2014 Raw materials $ 2,770,636 $ 3,294,030 Work in Process 2,198,981 1,657,164 Finished Goods 13,723,090 13,448,796 Allowance for excess quantities (822,796) (644,690) Total inventories $ 17,869,911 $ 17,755,300 |
Notes Payable and Capital Lea33
Notes Payable and Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long term debt consists of: Dec. 31, 2015 Dec. 31, 2014 Mezzanine Note Payable with BMO Private Equity, balance due January 18, 2018, interest at 11.50% (effective rate of 15.56%) $ 5,000,000 $ 5,000,000 Less: Remaining debt discount to be amortized (283,000) (430,000) Term Loan with Barrington Bank, payable in monthly installments of $11,000 amortized over 7 years, interest at 6.25%, balance due May 2016, which uses balloon production and related equipment as collateral 311,000 426,000 Mortgage Loan with BMO Harris, payable in monthly installments of $7,778 plus interest at prime (3.25%) plus a variable rate (based on loan covenants) of 0.75% (4.0%) at December 31, 2015 (amortized over 25 years), balance due July 18, 2017 1,804,000 1,898,000 Promissory Note with John J. Blaser and Stephanie M. Blaser (Related Party) due on demand, interest at 4.25%. - 10,000 Term Loan with BMO Harris, payable in monthly installments of $22,323 beginning April 2012 plus interest at prime (3.25%) plus a variable rate (based on loan covenants) of 0.75% (4.00%) at December 31, 2015, (amortized over 5 years), balance due March 31, 2017. 335,000 603,000 Capital Lease with First American Equipment Finance, payable in monthly installments of $2,890 (amortized over 5 years). 67,000 96,000 Capital Lease with Wells Fargo, payable in monthly installments of $367 (amortized over 5 years). 10,000 14,000 Capital Lease with Wells Fargo, payable in monthly installments of $550 (amortized over 3 years). 10,000 15,000 Subordinated Notes (Officer) due on demand, interest at 9% (see Notes 9, 12). 5,000 4,000 Subordinated Notes (Officer) due on demand, interest at 8% (see Notes 9, 12). 741,000 684,000 Subordinated Notes (Officer) due on demand, interest at prime (3.25%) plus 2% (5.25%) at December 31, 2015 (see Note 9). 577,000 548,000 Notes Payable (Affiliates) due 2015, interest at prime (3.25%) plus 0.25% (3.50%) at December 31, 2015 (see Note 12) (Related Party). 27,000 29,000 Promissory Note with Merrick Company due on demand, interest at 4.25% (Related Party). 113,000 109,000 Promissory Note with Schwan Leasing due on demand, interest at 4.25% (Related Party). 70,000 70,000 Notes Payable (Affiliates) due 2021, interest at 11.75% (see Note 12) (Related Party). 65,000 85,000 Total long-term debt 8,852,000 9,161,000 Less current portion (551,000) (376,000) Total Long-term debt, net of current portion $ 8,301,000 $ 8,785,000 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Future minimum principal payments for amounts outstanding under these long-term debt agreements for each of the years ended December 31 are: 2016 $ 551,000 2017 1,716,000 2018 5,016,000 2019 12,000 2020 14,000 Thereafter 1,543,000 Total $ 8,852,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The income tax provisions are comprised of the following: Dec. 31 2015 Dec. 31 2014 Current: Federal $ 6,516 $ - State 4,200 94,371 Foreign 374,071 578,798 $ 384,787 $ 673,169 Deferred Federal $ (63,433) $ (550,089) State - - Foreign 48,242 66,887 (15,191) (483,202) Total Income Tax Provision $ 369,596 $ 189,967 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the net deferred tax asset at December 31 are as follows: 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 21,150 $ 69,898 Inventory allowances 314,101 246,425 Accrued liabilities 372,172 282,055 Unicap 263A adjustment 170,765 157,240 Net operating loss carryforwards 511,403 685,322 Alternative minimum tax credit carryforwards - 398,162 State investment tax credit carryforward 22,448 10,912 Foreign tax credit carryforward 916,121 696,509 Other foreign tax items 44,394 50,747 Foreign net operating loss carryforwards 424,164 466,053 Total deferred tax assets 2,796,718 3,063,323 Deferred tax liabilities: Tax over book basis of capital assets (1,004,437) (1,083,852) Undistributed Earnings from Subsidiaries - (247,385) Other foreign tax items - - Net deferred tax assets before valuation allowance $ 1,792,281 $ 1,732,086 Less: Valuation allowance (45,000) - Net deferred tax assets 1,747,281 1,732,086 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows: Years Ended December 31, 2015 2014 Taxes at statutory rate $ 444,471 $ 183,344 State income taxes 66,867 27,583 Nondeductible expenses 46,523 59,129 Foreign taxes and other (188,266) (80,089) Income tax provision $ 369,596 $ 189,967 |
Variable Interest Entities ("35
Variable Interest Entities ("VIE") and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following sets forth the condensed balance sheet of VLM, VLUS and Clever Container for December 31, 2015 and 2014. Dec. 31, 2015 Dec. 31, 2014 Current Assets $ 1,400,000 $ 790,000 Property, plant and equipment, net 462,000 557,000 Other noncurrent assets 794,000 879,000 Total assets $ 2,657,000 $ 2,226,000 Mortgages and other long-term debt payable $ 2,775,000 $ 2,142,000 Total liabilities $ 2,775,000 $ 2,142,000 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | In September 2012, we entered into a lease agreement, expiring on February 28, 2017 117,000 Lease period Amount per month March 1, 2013 October 31, 2013 $ 25,000 November 1, 2013 October 31, 2014 28,000 November 1, 2014 October 31, 2015 30,000 November 1, 2015 October 31, 2016 33,000 November 1, 2016 February 28, 2017 36,000 |
Schedule of Property Subject to or Available for Operating Lease [Table Text Block] | The future aggregate minimum net lease payments under existing agreements as of December 31, are as follows: 2016 $ 773,000 2017 197,000 2018 126,000 Thereafter 574,000 Total $ 1,670,000 |
Schedule of Minimum Guaranteed Benefit Liabilities [Table Text Block] | Future guaranteed commitments due, as computed on a pro rata basis, as of December 31, are as follows: 2016 $ 450,000 Thereafter 500,000 Total $ 950,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | Vesting schedules for the 2009 Plan are as follows: Vesting Schedule A Vesting Schedule B Vesting Schedule C Vesting Schedule D 25 % 12 months 33 % 24 months 50 % 48 months 20 % 6 months 50 % 24 months 67 % 36 months 100 % 57 months 40 % 18 months 75 % 36 months 100 % 48 months 60 % 30 months 100 % 48 months 80 % 42 months 100 % 54 months |
Schedule of Share-based Compensation, Activity [Table Text Block] | The following is a summary of the activity in the Company’s stock option plans and other options for the years ended December 31, 2015 and 2014, respectively: December 31, 2015 December 31, 2014 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Exercisable, beginning of period 132,099 $ 5.07 83,718 $ 4.67 Vested 34,801 5.65 56,464 5.76 Exercised 29,500 2.88 - - Cancelled (73,000) 6.06 (8,083) 5.77 Exercisable at the end of period 64,400 $ 5.26 132,099 $ 5.07 December 31, 2015 December 31, 2014 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Outstanding, beginning of period 214,500 $ 5.20 228,500 $ 5.23 Granted 49,000 5.27 - - Exercised 29,500 2.88 - - Cancelled (80,000) 6.01 (14,000) 5.68 Outstanding at the end of period 154,000 $ 5.25 214,500 $ 5.20 |
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Vested Outstanding By Grant Date [Table Text Block] | Significant option groups remained outstanding at December 31, 2015 and related weighted average grant date fair value, remaining life and intrinsic value information are as follows: Options Outstanding Options Vested Options by Weighted Remain. Intrinsic Weighted Remain. Intrinsic Grant Date Shares Avg. Life Val Shares Avg. Life Val Dec 2005 - - - - - - - - Dec 2010 - - - - - - - - Jan 2011 6,000 5.96 0.0 - 6,000 5.96 0.0 - Nov 2012 94,000 5.17 1.9 - 56,400 5.17 1.9 - Nov 2013 5,000 5.75 2.9 - 2,000 5.75 2.9 - Dec 2015 49,000 5.27 5.0 $ 1,450 - - - - TOTAL 154,000 5.25 2.9 $ 1,450 64,400 5.26 1.8 - |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Changes in the fair value of the warrants have been recognized in the consolidated statement of operations. December 31, December 31, December 31, December 31, July 17, 2015 2014 2013 2012 2012 Weighted average fair value per warrant $ 5.11 $ 3.76 $ 5.84 $ 4.87 $ 5.03 Risk-free interest rate 1.76 % 2.47 % 2.45 % 1.18 % 0.99 % Expected lives 4.0 yrs. 5.0 yrs. 6.0 yrs. 7.0 yrs. 7.5 yrs. Expected volatility 28.99 % 44.99 % 37.49 % 28.18 % 36.98 % |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The following is a summary of the activity of the Company’s warrants for the years ended December 2015 and 2014: December 31, 2015 December 31, 2014 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Outstanding and exercisable, beginning of period 140,048 $ 0.01 140,048 $ 0.01 Granted - - - - Exercised - - - - Cancelled - - - - Outstanding and exercisable at the end of period 140,048 $ 0.01 140,048 $ 0.01 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Consolidated Earnings per Share Year Ended December 31, 2015 2014 Basic Average shares outstanding: Weighted average number of shares outstanding during the period 3,297,448 3,288,332 Earnings: Net income attributable to CTI Industries Corporation $ 1,047,333 $ 514,318 Amount for per share Computation $ 1,047,333 $ 514,318 Net earnings applicable to Common Shares $ 0.32 $ 0.16 Diluted Average shares outstanding: 3,297,448 3,288,332 Weighted averages shares Outstanding Common stock equivalents (options, warrants) 139,692 151,095 Weighted average number of shares outstanding during the period 3,437,140 3,439,427 Earnings: Net income attributable to CTI Industries Corporation $ 1,047,333 $ 514,318 Amount for per share computation $ 1,047,333 $ 514,318 Net income applicable to Common Shares $ 0.30 $ 0.15 |
Geographic Segment Data (Tables
Geographic Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Sales and selected financial information by geographic area for the years ended December 31, 2015 and 2014, respectively, are: Europe United Kingdom (Excluding United States (UK) UK) Mexico Consolidated Year ended 12/31/15 Sales to outside customers $ 46,520,000 $ 2,207,000 $ 1,530,000 $ 9,108,000 $ 59,365,000 Total Assets $ 30,772,000 $ 1,791,000 $ 1,562,000 $ 7,680,000 $ 41,805,000 Europe United Kingdom (Excluding United States (UK) UK) Mexico Consolidated Year ended 12/31/14 Sales to outside customers $ 42,896,000 $ 2,497,000 $ 1,592,000 $ 10,843,000 $ 57,828,000 Total Assets $ 33,026,000 $ 1,048,000 $ 1,457,000 $ 7,516,000 $ 43,047,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Accounting Policies [Line Items] | ||
Interest Costs Capitalized | $ 29,000 | $ 35,000 |
Research and Development Expense | 633,000 | 633,000 |
Advertising Expense | 215,000 | 220,000 |
Goodwill, Impairment | $ 0 | $ 0 |
Minimum [Member] | Intellectual Property [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 9 years | |
Maximum [Member] | Intellectual Property [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Building [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Building [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Project Life [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Project Life [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Light Machinery [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Light Machinery [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Heavy Machinery [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Heavy Machinery [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Other Furniture and Equipment [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Other Furniture and Equipment [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Furniture and Equipment At Customer Locations [Member] | Minimum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Furniture and Equipment At Customer Locations [Member] | Maximum [Member] | ||
Disclosure of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years |
New Accounting Pronouncements (
New Accounting Pronouncements (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Cost. The ASU requires debt issuance costs associated with a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. An entity should apply the new guidance on a retrospective basis. We adopted this ASU effective with the first quarter of fiscal year 2016. The adoption of this accounting standard update will not have a material impact to our consolidated financial statements.   |
Accounting Standards Update 2015-11 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements.   |
Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, to eliminate the current requirements to classify deferred income tax assets and liabilities between current and noncurrent. To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of ASU 2015-17 on our consolidated financial statement.   |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), aimed at making leasing activities more transparent and comparable. The new standard requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including today’s operating leases. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted for all entities. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements and related disclosures. |
Fair Value Disclosures; Deriv42
Fair Value Disclosures; Derivative Instruments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Warrant Liability | $ 714,000 | $ 525,000 |
Liabilities, Fair Value Disclosure | 714,000 | 525,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Warrant Liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Warrant Liability | 714,000 | 525,000 |
Liabilities, Fair Value Disclosure | 714,000 | 525,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Warrant Liability | $ 0 | $ 0 |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation adjustments, Before-Tax Amount | $ (1,175,106) | $ (647,711) |
Other comprehensive loss, Before-Tax Amount | (1,175,106) | (647,711) |
Foreign currency translation adjustments, Tax (Expense) or Benefit | 0 | 0 |
Other comprehensive loss, Tax (Expense) or Benefit | 0 | 0 |
Foreign currency translation adjustments, Net-of-Tax Amount | (1,175,106) | (647,711) |
Other comprehensive loss, Net-of-Tax Amount | $ (1,175,106) | $ (647,711) |
Other Comprehensive Loss (Det44
Other Comprehensive Loss (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign Currency Items, Beginning balance | $ (2,901,212) | $ (2,253,501) |
Foreign Currency Items, Current period change | (1,175,106) | (647,711) |
Foreign Currency Items, Ending Balance | (4,076,318) | (2,901,212) |
Accumulated Other Comprehensive Loss, Beginning balance | (2,901,212) | (2,253,501) |
Accumulated Other Comprehensive Loss, Current period change | (1,175,106) | (647,711) |
Accumulated Other Comprehensive Loss, Ending Balance | $ (4,076,318) | $ (2,901,212) |
Other Comprehensive Loss (Det45
Other Comprehensive Loss (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 |
Major Customers (Details Textua
Major Customers (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Customer One [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 26.90% | 15.40% |
Accounts Receivable, Gross | $ 2,849,000 | $ 2,951,000 |
Customer Two [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 26.20% | 13.70% |
Accounts Receivable, Gross | $ 2,685,000 | $ 2,422,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 2,770,636 | $ 3,294,030 |
Work in Process | 2,198,981 | 1,657,164 |
Finished Goods | 13,723,090 | 13,448,796 |
Allowance for excess quantities | (822,796) | (644,690) |
Total inventories | $ 17,869,911 | $ 17,755,300 |
Notes Payable and Capital Lea48
Notes Payable and Capital Leases (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 8,852,000 | $ 9,161,000 |
Less current portion | (551,000) | (376,000) |
Total Long-term debt, net of current portion | 8,301,025 | 8,784,984 |
Mezzanine Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 5,000,000 | 5,000,000 |
Less: Remaining debt discount to be amortized | (283,000) | (430,000) |
Term Loan With Barrington Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 311,000 | 426,000 |
Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,804,000 | 1,898,000 |
John J.Blaser And Stephanie M.Blaser [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 0 | 10,000 |
Term Loan With BMO Harris [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 335,000 | 603,000 |
First American Equipment Finance [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 67,000 | 96,000 |
Wells Fargo [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 10,000 | 14,000 |
Capital Lease [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 10,000 | 15,000 |
Subordinated Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 5,000 | 4,000 |
Subordinated Notes One [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 741,000 | 684,000 |
Subordinated Notes Two [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 577,000 | 548,000 |
Notes Payable Affiliates [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 27,000 | 29,000 |
Merrick [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 113,000 | 109,000 |
Schwan [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 70,000 | 70,000 |
Notes Payable Affiliates One [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 65,000 | $ 85,000 |
Notes Payable and Capital Lea49
Notes Payable and Capital Leases (Details 1) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 551,000 |
2,017 | 1,716,000 |
2,018 | 5,016,000 |
2,019 | 12,000 |
2,020 | 14,000 |
Thereafter | 1,543,000 |
Total | $ 8,852,000 |
Notes Payable and Capital Lea50
Notes Payable and Capital Leases (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2012 | Apr. 29, 2010 | Jan. 02, 2010 | Jul. 17, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 13, 2015 | |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 9,000,000 | ||||||
Equipment Loan | 2,500,000 | ||||||
Mortgage Loan Amount Of Carrying Value | 2,333,350 | ||||||
Term Loan Amount Of Carrying Value | 583,333 | ||||||
Revolving Credit Facility Eligible Accounts Percentage | 85.00% | ||||||
Revolving Credit Facility Eligible Inventory Percentage | 60.00% | ||||||
Subordinated Debt | $ 7,100,000 | ||||||
Percentage Of Cumulative Net Income | 50.00% | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 11.50% | ||||||
Capital Lease Obligations, Current | $ 41,204 | $ 38,595 | |||||
Loan Amortization Term | 25 years | ||||||
Revolver Loan Commitment Minimum | $ 9,000,000 | ||||||
Revolver Loan Commitment Maximum | $ 12,000,000 | 12,000,000 | |||||
Proceeds From Issuance Of Note and Warrants | $ 5,000,000 | ||||||
Percentage Of Common Stock Issued | 4.00% | ||||||
Warrants Issued To Purchase Common Stock | 140,048 | ||||||
Share Price | $ 0.01 | ||||||
Closing Fee | $ 100,000 | ||||||
Debt Instrument Additional Interest Expense | $ 146,000 | $ 110,000 | |||||
Level Of Adjusted EBITDA, Description | not less than 1.1 to 1 | ||||||
Value Allocated To Detachable Warrant | $ 703,000 | ||||||
Long-Term Line Of Credit | $ 14,417,000 | ||||||
BMO Harris Bank N.A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,456,000 | ||||||
Long-Term Line Of Credit | $ 10,469,000 | ||||||
Mezzanine Note Payable [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.50% | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 15.56% | ||||||
Debt Instrument, Maturity Date, Description | January 18, 2018 | ||||||
Term Loan With Barrington Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Notes Payable To Bank Monthly Installment | $ 11,000 | ||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 7 years | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||||||
Debt Instrument, Maturity Date, Description | May 2,016 | ||||||
Mortgage Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 25 years | ||||||
Debt Instrument, Maturity Date, Description | July 18, 2017 | ||||||
Loan Monthly Installment | $ 7,778 | ||||||
Debt Instrument, Interest Rate Terms | interest at prime (3.25%) plus a variable rate (based on loan covenants) of 0.75% (4.0%) at December 31, 2015 | ||||||
John J.Blaser And Stephanie M.Blaser [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||||
First American Equipment Finance [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 5 years | ||||||
Capital Lease Obligations, Current | $ 2,890 | ||||||
Wells Fargo [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 5 years | ||||||
Capital Lease Obligations, Current | $ 367 | ||||||
Wells Fargo [Member] | Installment one [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 3 years | ||||||
Capital Lease Obligations, Current | $ 550 | ||||||
Subordinated Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due on demand | ||||||
Debt Instrument, Interest Rate Terms | interest at 9% | ||||||
Subordinated Notes One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due on demand | ||||||
Debt Instrument, Interest Rate Terms | interest at 8% | ||||||
Subordinated Notes Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due on demand | ||||||
Debt Instrument, Interest Rate Terms | interest at prime (3.25%) plus 2% (5.25%) at December 31, 2015 | ||||||
Notes Payable Affiliates [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due 2,015 | ||||||
Debt Instrument, Interest Rate Terms | interest at prime (3.25%) plus 0.25% (3.50%) at December 31, 2015 | ||||||
Merrick [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due on demand | ||||||
Debt Instrument, Interest Rate Terms | interest at 4.25% | ||||||
Schwan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due on demand | ||||||
Debt Instrument, Interest Rate Terms | interest at 4.25% | ||||||
Notes Payable Affiliates One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | due 2,021 | ||||||
Debt Instrument, Interest Rate Terms | interest at 11.75% | ||||||
Term Loan With BMO Harris [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 5 years | ||||||
Debt Instrument, Maturity Date, Description | March 31, 2017 | ||||||
Loan Monthly Installment | $ 22,323 | ||||||
Debt Instrument, Interest Rate Terms | interest at prime (3.25%) plus a variable rate (based on loan covenants) of 0.75% (4.00%) at December 31, 2015 |
Subordinated Debt - Related P51
Subordinated Debt - Related Parties (Details Textual) - USD ($) | Feb. 08, 2008 | Jul. 17, 2012 | Feb. 28, 2006 | Feb. 28, 2003 | Dec. 31, 2015 | Dec. 31, 2014 | May. 28, 2010 |
Subordinated Borrowing [Line Items] | |||||||
Warrants To Purchase Common Shares | 303,030 | 163,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 3.30 | $ 4.87 | $ 0 | $ 0 | |||
Bank Loan Refinance | $ 880,000 | ||||||
Fair Value Of Warrants | $ 703,000 | $ 443,000 | $ 460,000 | $ 714,000 | |||
Notes Reduction | $ 794,000 | ||||||
Notes Payable | $ 4,000 | $ 5,000,000 | $ 577,000 | ||||
Notes Bearing Interest Description | five year subordinated notes bearing interest at 2% over the prime rate determined on a quarterly basis | ||||||
Warrants Term | 5 years | 5 years | |||||
Various Times From 2003 To 2005 [Member] | |||||||
Subordinated Borrowing [Line Items] | |||||||
Notes Payable To Bank | 814,000 | ||||||
Subordinated Demand Notes | $ 741,000 | ||||||
Percentage Of Interest Bearing On Notes | 8.00% | ||||||
Subordinated Debt [Member] | |||||||
Subordinated Borrowing [Line Items] | |||||||
Sale of Stock, Consideration Received on Transaction | $ 1,000,000 | $ 1,630,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | $ 6,516 | $ 0 |
State | 4,200 | 94,371 |
Foreign | 374,071 | 578,798 |
Current Income Tax Expense (Benefit) | 384,787 | 673,169 |
Deferred | ||
Federal | (63,433) | (550,089) |
State | 0 | 0 |
Foreign | 48,242 | 66,887 |
Deferred Income Tax Expense (Benefit) | (15,191) | (483,202) |
Total Income Tax Provision | $ 369,596 | $ 189,967 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 21,150 | $ 69,898 |
Inventory allowances | 314,101 | 246,425 |
Accrued liabilities | 372,172 | 282,055 |
Unicap 263A adjustment | 170,765 | 157,240 |
Net operating loss carryforwards | 511,403 | 685,322 |
Alternative minimum tax credit carryforwards | 0 | 398,162 |
State investment tax credit carryforward | 22,448 | 10,912 |
Foreign tax credit carryforward | 916,121 | 696,509 |
Other foreign tax items | 44,394 | 50,747 |
Foreign net operating loss carryforwards | 424,164 | 466,053 |
Total deferred tax assets | 2,796,718 | 3,063,323 |
Deferred tax liabilities: | ||
Tax over book basis of capital assets | (1,004,437) | (1,083,852) |
Undistributed Earnings from Subsidiaries | 0 | (247,385) |
Other foreign tax items | 0 | 0 |
Net deferred tax assets before valuation allowance | 1,792,281 | 1,732,086 |
Less: Valuation allowance | (45,000) | 0 |
Net deferred tax assets | $ 1,747,281 | $ 1,732,086 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Examination [Line Items] | ||
Taxes at statutory rate | $ 444,471 | $ 183,344 |
State income taxes | 66,867 | 27,583 |
Nondeductible expenses | 46,523 | 59,129 |
Foreign taxes and other | (188,266) | (80,089) |
Income tax provision | $ 369,596 | $ 189,967 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Examination [Line Items] | |
Operating Loss Carryforwards | $ 1,858,000 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2025 |
Employee Benefit Plan (Details
Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefit Plan [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% | |
Defined Benefit Plan, Contributions by Employer | $ 76,000 | $ 98,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Legal Fees | $ 149,000 | $ 175,000 |
Interest Expenses | 87,000 | 81,000 |
Due to Related Parties, Noncurrent | 1,323,000 | 1,236,000 |
Due from Employees | 46,000 | 47,000 |
Total Long-Term Debt | 8,852,000 | |
Flexo Universal [Member] | ||
Related Party Transaction [Line Items] | ||
Total Long-Term Debt | 65,000 | 85,000 |
Cti Europe [Member] | ||
Related Party Transaction [Line Items] | ||
Total Long-Term Debt | 27,000 | 29,000 |
Schwan Incorporated [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 4,000 | $ 22,000 |
Variable Interest Entities ("58
Variable Interest Entities ("VIE") and Transactions (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Current Assets | $ 32,437,171 | $ 32,473,926 |
Property, plant and equipment, net | 6,553,556 | 7,755,527 |
Total assets | 41,804,969 | 43,046,910 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Current Assets | 1,400,000 | 790,000 |
Property, plant and equipment, net | 462,000 | 557,000 |
Other noncurrent assets | 794,000 | 879,000 |
Total assets | 2,657,000 | 2,226,000 |
Mortgages and other long-term debt payable | 2,775,000 | 2,142,000 |
Total liabilities | $ 2,775,000 | $ 2,142,000 |
Variable Interest Entities ("59
Variable Interest Entities ("VIE") and Transactions (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2013 | Dec. 31, 2010 | Apr. 29, 2010 | |
Variable Interest Entity [Line Items] | ||||
Long-term Line of Credit | $ 14,417,000 | |||
Flexo Universal [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Sale Leaseback Transaction, Monthly Rental Payments | $ 9,000 | |||
Clever Container L.L.C [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Venture Leasing L.L.C [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||
Advances Line Of Credit Amount Received | $ 700,000 | |||
Venture Leasing Mexico [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||
John H Schwan And Stephen M Merrick [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Long-term Line of Credit | $ 1,000,000 |
Goodwill (Details Textual)
Goodwill (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Goodwill (VIE $440,000 and $440,000, respectively) | $ 1,473,176 | $ 1,473,176 | |
Flexo Universal [Member] | |||
Goodwill [Line Items] | |||
Goodwill (VIE $440,000 and $440,000, respectively) | 989,000 | 989,000 | |
Cti Europe [Member] | |||
Goodwill [Line Items] | |||
Goodwill (VIE $440,000 and $440,000, respectively) | $ 44,000 | ||
Payments to Acquire Additional Interest in Subsidiaries | $ 101,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Goodwill [Line Items] | |||
Goodwill (VIE $440,000 and $440,000, respectively) | $ 440,000 | $ 440,000 |
Commitments (Details)
Commitments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 950,000 | $ 954,000 |
Illinois One [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 25,000 | |
Illinois One [Member] | Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Mar. 1, 2013 | |
Illinois One [Member] | Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Oct. 31, 2013 | |
Illinois Two [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 28,000 | |
Illinois Two [Member] | Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Nov. 1, 2013 | |
Illinois Two [Member] | Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Oct. 31, 2014 | |
Illinois Three [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 30,000 | |
Illinois Three [Member] | Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Nov. 1, 2014 | |
Illinois Three [Member] | Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Oct. 31, 2015 | |
Illinois Four [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 33,000 | |
Illinois Four [Member] | Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Nov. 1, 2015 | |
Illinois Four [Member] | Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Oct. 31, 2016 | |
Illinois Five [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense | $ 36,000 | |
Illinois Five [Member] | Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Nov. 1, 2016 | |
Illinois Five [Member] | Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease Period | Feb. 28, 2017 |
Commitments (Details 1)
Commitments (Details 1) | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 773,000 |
2,017 | 197,000 |
2,018 | 126,000 |
Thereafter | 574,000 |
Total | $ 1,670,000 |
Commitments (Details 2)
Commitments (Details 2) | Dec. 31, 2015USD ($) |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |
2,016 | $ 450,000 |
Thereafter | 500,000 |
Total | $ 950,000 |
Commitments (Details Textual)
Commitments (Details Textual) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2015USD ($)ft² | Feb. 28, 2015USD ($)ft² | Sep. 30, 2012USD ($)ft² | Aug. 31, 2011USD ($)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Lease Expiration Date | Feb. 28, 2017 | |||||
Operating Leases, Rent Expense | $ | $ 950,000 | $ 954,000 | ||||
Land Subject to Ground Leases | ft² | 117,000 | |||||
Flexo Universal [Member] | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Operating Leases, Rent Expense | $ | $ 30,000 | |||||
Lease Terms | 5 years | |||||
Land Subject to Ground Leases | ft² | 73,000 | |||||
United Kingdom Subsidiary [Member] | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Operating Leases, Rent Expense | $ | $ 6,000 | |||||
Lease Terms | 5 years | |||||
Land Subject to Ground Leases | ft² | 9,000 | |||||
German subsidiary [Member] | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Operating Leases, Rent Expense | $ | $ 2,000 | |||||
Lease Terms | 3 years | |||||
Land Subject to Ground Leases | ft² | 3,000 | |||||
Cti Europe [Member] | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Operating Leases, Rent Expense | $ | $ 5,000 | |||||
Lease Terms | 5 years | |||||
Land Subject to Ground Leases | ft² | 6,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Vesting Schedule A [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 25.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage One | 50.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage Two | 75.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage Three | 100.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period One | 24 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period Two | 36 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period Three | 48 months |
Vesting Schedule B [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 33.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage One | 67.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage Two | 100.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period One | 36 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period Two | 48 months |
Vesting Schedule C [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 50.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage One | 100.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 48 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period One | 57 months |
Vesting Schedule D [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 20.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage One | 40.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage Two | 60.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage Three | 80.00% |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage Four | 100.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period One | 18 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period Two | 30 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period Three | 42 months |
Share Based Compensation Arrangement By Share Based Payment Award Vesting Period Four | 54 months |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Exercisable, beginning of period (in shares) | 132,099 | 83,718 |
Shares, Vested (in shares) | 34,801 | 56,464 |
Shares, Exercised (in shares) | 29,500 | 0 |
Shares, Cancelled (in shares) | (73,000) | (8,083) |
Shares Exercisable at the end of period (in shares) | 64,400 | 132,099 |
Weighted Average Exercise Price, Exercisable, beginning of period (in dollars per share) | $ 5.07 | $ 4.67 |
Weighted Average Exercise Price, Vested (in dollars per share) | 5.65 | 5.76 |
Weighted Average Exercise Price, Exercised (in dollars per share) | 2.88 | 0 |
Weighted Average Exercise Price, Cancelled (in dollars per share) | 6.06 | 5.77 |
Weighted Average Exercise Price, Exercisable at the end of period (in dollars per share) | $ 5.26 | $ 5.07 |
Shares Outstanding, beginning of period (in shares) | 214,500 | 228,500 |
Shares, Granted (in shares) | 49,000 | 0 |
Shares Exercised (in shares) | 29,500 | 0 |
Shares Cancelled (in shares) | (80,000) | (14,000) |
Shares Outstanding at the end of period (in shares) | 154,000 | 214,500 |
Weighted Average Exercise Price, Outstanding, beginning of period (in dollars per share) | $ 5.20 | $ 5.23 |
Weighted Average Exercise Price, Granted (in dollars per share) | 5.27 | 0 |
Weighted Average Exercise Price, Exercised (in dollars per share) | 2.88 | 0 |
Weighted Average Exercise Price, Cancelled (in dollars per share) | 6.01 | 5.68 |
Weighted Average Exercise Price, Outstanding at the end of period (in dollars per share) | $ 5.25 | $ 5.20 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares, Options Outstanding (in shares) | 154,000 | 214,500 | 228,500 |
Weighted Average, Options Outstanding (in dollars per share) | $ 5.25 | $ 5.20 | $ 5.23 |
Remaining Life, Options Outstanding | 2 years 10 months 24 days | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 1,450 | ||
Shares, Options Vested (in shares) | 64,400 | 132,099 | 83,718 |
Weighted Average, Options Vested (in dollars per share) | $ 5.26 | $ 5.07 | $ 4.67 |
Remaining Life, Option Vested | 1 year 9 months 18 days | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 | ||
Stock Options By Grant Date Dec 2005 [Member] | |||
Shares, Options Outstanding (in shares) | 0 | ||
Weighted Average, Options Outstanding (in dollars per share) | $ 0 | ||
Remaining Life, Options Outstanding | 0 years | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 0 | ||
Shares, Options Vested (in shares) | 0 | ||
Weighted Average, Options Vested (in dollars per share) | $ 0 | ||
Remaining Life, Option Vested | 0 years | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 | ||
Stock Options By Grant Date Dec 2010 [Member] | |||
Shares, Options Outstanding (in shares) | 0 | ||
Weighted Average, Options Outstanding (in dollars per share) | $ 0 | ||
Remaining Life, Options Outstanding | 0 years | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 0 | ||
Shares, Options Vested (in shares) | 0 | ||
Weighted Average, Options Vested (in dollars per share) | $ 0 | ||
Remaining Life, Option Vested | 0 years | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 | ||
Stock Options By Grant Date Jan 2011 [Member] | |||
Shares, Options Outstanding (in shares) | 6,000 | ||
Weighted Average, Options Outstanding (in dollars per share) | $ 5.96 | ||
Remaining Life, Options Outstanding | 0 years | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 0 | ||
Shares, Options Vested (in shares) | 6,000 | ||
Weighted Average, Options Vested (in dollars per share) | $ 5.96 | ||
Remaining Life, Option Vested | 0 years | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 | ||
Stock Options By Grant Date Nov 2012 [Member] | |||
Shares, Options Outstanding (in shares) | 94,000 | ||
Weighted Average, Options Outstanding (in dollars per share) | $ 5.17 | ||
Remaining Life, Options Outstanding | 1 year 10 months 24 days | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 0 | ||
Shares, Options Vested (in shares) | 56,400 | ||
Weighted Average, Options Vested (in dollars per share) | $ 5.17 | ||
Remaining Life, Option Vested | 1 year 10 months 24 days | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 | ||
Stock Options By Grant Date Nov 2013 [Member] | |||
Shares, Options Outstanding (in shares) | 5,000 | ||
Weighted Average, Options Outstanding (in dollars per share) | $ 5.75 | ||
Remaining Life, Options Outstanding | 2 years 10 months 24 days | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 0 | ||
Shares, Options Vested (in shares) | 2,000 | ||
Weighted Average, Options Vested (in dollars per share) | $ 5.75 | ||
Remaining Life, Option Vested | 2 years 10 months 24 days | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 | ||
Stock Options By Grant Date Dec 2015 [Member] | |||
Shares, Options Outstanding (in shares) | 49,000 | ||
Weighted Average, Options Outstanding (in dollars per share) | $ 5.27 | ||
Remaining Life, Options Outstanding | 5 years | ||
Intrinsic Value, Options Outstanding (in dollars) | $ 1,450 | ||
Shares, Options Vested (in shares) | 0 | ||
Weighted Average, Options Vested (in dollars per share) | $ 0 | ||
Remaining Life, Option Vested | 0 years | ||
Intrinsic Value, Options Vested (in dollars) | $ 0 |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) - Warrant [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |||
Jul. 17, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Weighted average fair value per warrant | $ 5.03 | $ 5.11 | $ 3.76 | $ 5.84 | $ 4.87 |
Risk-free interest rate | 0.99% | 1.76% | 2.47% | 2.45% | 1.18% |
Expected lives | 7 years 6 months | 4 years | 5 years | 6 years | 7 years |
Expected volatility | 36.98% | 28.99% | 44.99% | 37.49% | 28.18% |
Stockholders' Equity (Details 4
Stockholders' Equity (Details 4) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Outstanding and exercisable, beginning of period (in shares) | 140,048 | 140,048 |
Shares, Granted (in shares) | 0 | 0 |
Shares, Exercised (in shares) | 0 | 0 |
Shares, Cancelled (in shares) | 0 | 0 |
Shares Outstanding and exercisable at the end of period (in shares) | 140,048 | 140,048 |
Weighted Average Exercise Price, Outstanding and exercisable, beginning of period (in dollars per share) | $ 0.01 | $ 0.01 |
Weighted Average Exercise Price, Granted (in dollars per share) | 0 | 0 |
Weighted Average Exercise Price, Exercised (in dollars per share) | 0 | 0 |
Weighted Average Exercise Price, Cancelled (in dollars per share) | 0 | 0 |
Weighted Average Exercise Price, Outstanding and exercisable at the end of period (in dollars per share) | $ 0.01 | $ 0.01 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Jul. 17, 2012 | Feb. 28, 2006 | Feb. 28, 2003 | Jul. 17, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 05, 2015 | Dec. 31, 2013 | May. 28, 2010 | Apr. 10, 2009 | Feb. 08, 2008 | Apr. 24, 2002 | Apr. 12, 2001 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Employee Stock Ownership Plan (ESOP), Plan Description | The Compensation Committee administers the stock-based plans. The exercise price for Incentive Stock Options (ISO) cannot be less than the fair value of the stock subject to the option on the grant date (110% of such fair value in the case of ISOs granted to a stockholder who owns more than 10% of the Companys Common Stock). The exercise price of a Non-Qualified Stock Options (NQSO) shall be fixed by the Compensation Committee at whatever price the Committee may determine in good faith. Unless the Committee determines otherwise, options beginning with the 2007 Plan generally have a 4-year term with a 3-year vesting schedule. | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 9 months | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||||
Allocated Share-based Compensation Expense | $ 29,000 | $ 77,000 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 60,000 | ||||||||||||
Expected Recognized Compensation Expenses Year 2016 | 34,000 | ||||||||||||
Expected Recognized Compensation Expenses Year 2017 | $ 14,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 96,000 | ||||||||||||
Shares, Options Outstanding (in shares) | 154,000 | 214,500 | 228,500 | ||||||||||
Percentage Of Common Stock Issued | 4.00% | ||||||||||||
Share Price | $ 0.01 | $ 0.01 | |||||||||||
Warrants Expiration Term | 6 years 6 months 18 days | ||||||||||||
Notes Payable | $ 5,000,000 | $ 5,000,000 | $ 577,000 | $ 4,000 | |||||||||
Fair Value Of Warrants | $ 703,000 | $ 443,000 | $ 460,000 | $ 714,000 | |||||||||
Expected Recognized Compensation Expenses Year 2018 | $ 7,000 | ||||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | 49,000 | 0 | |||||||||||
Minimum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.36% | ||||||||||||
Maximum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.80% | ||||||||||||
Vesting Schedule D [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares, Options Outstanding (in shares) | 148,000 | ||||||||||||
Stock Option Plan 2001 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 119,050 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 139,958 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 2,000 | ||||||||||||
Stock Option Plan 2002 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 142,860 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 123,430 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 27,500 | ||||||||||||
Stock Incentive Plan 2009 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 250,000 | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Outstanding Number | 154,000 | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested | 64,400 | 6,000 | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Not Vested | 89,600 | ||||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | 49,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Average shares outstanding: | ||
Weighted average number of shares outstanding during the period (in shares) | 3,297,448 | 3,288,332 |
Earnings: | ||
Net income attributable to CTI Industries Corporation | $ 1,047,333 | $ 514,318 |
Amount for per share Computation | $ 1,047,333 | $ 514,318 |
Net earnings applicable to Common Shares (in dollars per share) | $ 0.32 | $ 0.16 |
Diluted | ||
Average shares outstanding: (in shares) | 3,297,448 | 3,288,332 |
Weighted averages shares Outstanding Common stock equivalents (options, warrants) (in shares) | 139,692 | 151,095 |
Weighted average number of shares outstanding during the period (in shares) | 3,437,140 | 3,439,427 |
Earnings: | ||
Net income attributable to CTI Industries Corporation | $ 1,047,333 | $ 514,318 |
Amount for per share computation | $ 1,047,333 | $ 514,318 |
Net income applicable to Common Shares (in dollars per share) | $ 0.3 | $ 0.15 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 106,065 | 185,000 |
Geographic Segment Data (Detail
Geographic Segment Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Sales to outside customers | $ 59,364,701 | $ 57,828,200 |
Total Assets | 41,804,969 | 43,046,910 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to outside customers | 46,520,000 | 42,896,000 |
Total Assets | 30,772,000 | 33,026,000 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to outside customers | 2,207,000 | 2,497,000 |
Total Assets | 1,791,000 | 1,048,000 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to outside customers | 1,530,000 | 1,592,000 |
Total Assets | 1,562,000 | 1,457,000 |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to outside customers | 9,108,000 | 10,843,000 |
Total Assets | $ 7,680,000 | $ 7,516,000 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) | Jan. 08, 2016 |
Subsequent Event [Member] | Clever Container Company L.L.C [Member] | |
Subsequent Event [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 28.50% |
Schedule II - Valuation and Q75
Schedule II - Valuation and Qualifying Accounts: (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of year | $ 230,000 | $ 217,000 |
Charged to expenses | 55,000 | 67,000 |
Written off | (159,000) | (54,000) |
Balance at end of year | 126,000 | 230,000 |
Inventory Valuation Reserve [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of year | 645,000 | 738,000 |
Charged to expenses | 179,000 | (92,000) |
Written off | (1,000) | (1,000) |
Balance at end of year | $ 823,000 | $ 645,000 |
Schedule II - Valuation and Q76
Schedule II - Valuation and Qualifying Accounts: (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cost Basis | ||
Balance at beginning of year | $ 38,818,011 | $ 38,400,335 |
Additions | 207,239 | 817,636 |
Disposals | 0 | (399,960) |
Balance at end of year | 39,025,250 | 38,818,011 |
Accumulated depreciation | ||
Balance at beginning of year | 31,062,484 | 29,718,564 |
Depreciation | 1,409,210 | 1,743,880 |
Disposals | 0 | (399,960) |
Balance at end of year | $ 32,471,694 | $ 31,062,484 |