Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | CTI INDUSTRIES CORP | ||
Entity Central Index Key | 1,042,187 | ||
Trading Symbol | ctib | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,530,227 | ||
Entity Public Float | $ 10,452 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents (VIE $2,000 and $51,000, respectively) | $ 181,026 | $ 563,043 |
Accounts receivable, (less allowance for doubtful accounts of $114,000 and $137,000 respectively) (VIE $28,000 and $6,000, respectively) | 11,235,834 | 14,838,978 |
Inventories, net (VIE $498,000 and $719,000, respectively) | 18,865,932 | 18,348,011 |
Prepaid expenses (VIE $80,000 and $18,000, respectively) | 887,885 | 678,689 |
Other current assets | 1,120,808 | 530,669 |
Total current assets | 32,291,485 | 34,959,390 |
Property, plant and equipment: | ||
Machinery and equipment | 23,439,781 | 26,348,443 |
Building | 3,367,082 | 3,379,636 |
Office furniture and equipment (VIE $268,000 and $154,000, respectively) | 2,591,159 | 3,597,158 |
Intellectual property | 752,044 | 482,088 |
Land | 250,000 | 250,000 |
Leasehold improvements | 402,963 | 395,603 |
Fixtures and equipment at customer locations | 518,450 | 3,302,868 |
Projects under construction | 121,241 | 493,859 |
Property, Plant and Equipment, Gross | 31,442,720 | 38,249,655 |
Less : accumulated depreciation and amortization (VIE $36,000 and $29,000, respectively) | (26,886,139) | (32,938,267) |
Total property, plant and equipment, net | 4,556,581 | 5,311,388 |
Other assets: | ||
Goodwill (VIE $440,000 and $440,000 respectively) | 1,473,176 | 1,473,176 |
Net deferred income tax asset | 1,102,467 | 1,696,690 |
Other assets (due from related party $53,000 and $47,000, respectively) | 560,329 | 473,095 |
Total other assets | 3,135,972 | 3,642,961 |
Total assets | 39,984,038 | 43,913,739 |
Current liabilities: | ||
Checks written in excess of bank balance (VIE $16,000 and $11,000, respectively) | 454,850 | 1,688,675 |
Trade payables (VIE $144,000 and $92,000, respectively) | 5,414,497 | 5,861,932 |
Line of credit (net of deferred financing costs of $0 and $62,000, respectively) (VIE $338,000 and $408,000, respectively) | 13,783,930 | 11,263,531 |
Notes payable - current portion (net discount of $0 and $113,000, respectively) | 942,533 | 1,709,220 |
Notes Payable Officers - current portion | 180,000 | |
Notes Payable Affiliates - current portion | 9,615 | 8,141 |
Capital Lease - current portion | 7,562 | 40,660 |
Accrued liabilities (VIE $96,000 and $140,000, respectively) | 2,047,893 | 3,127,425 |
Total current liabilities | 22,660,880 | 23,879,584 |
Long-term liabilities: | ||
Notes Payable - Affiliates (VIE 144,000 and 153,000 respectively) | 212,545 | 218,858 |
Notes payable, net of current portion (net discount of $0 and $0, respectively) (VIE $83,000 and $301,000, respectively) | 4,951,581 | 5,301,491 |
Notes payable - officer, subordinated | 1,507,362 | 1,416,138 |
Capital Lease | 4,690 | |
Deferred gain (non current) (VIE $31,000 and $39,000, respectively) | 207,410 | 297,521 |
Total long-term debt, net of current portion | 6,878,898 | 7,238,698 |
Warrants Payable | 817,880 | |
Total long-term liabilities | 6,878,898 | 8,056,578 |
CTI Industries Corporation stockholders' equity: | ||
Preferred Stock -- no par value 3,000,000 shares authorized 0 shares issued and outstanding | ||
Common stock - no par value, 15,000,000 shares authorized, 3,568,885 issued and 3,525,227 oustanding on December 31, 2017 and 2016 | 13,898,494 | 13,898,494 |
Paid-in-capital | 2,271,261 | 2,250,235 |
Accumulated earnings | 720,223 | 2,323,326 |
Accumulated other comprehensive loss | (5,365,364) | (5,593,878) |
Less: Treasury stock - 43,658 shares as of December 31, 2017 and 2016 | (160,784) | (160,784) |
Total CTI Industries Corporation stockholders' equity | 11,363,830 | 12,717,393 |
Noncontrolling interest | (919,570) | (739,816) |
Total Equity | 10,444,260 | 11,977,577 |
TOTAL LIABILITIES AND EQUITY | $ 39,984,038 | $ 43,913,739 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 181,026 | $ 563,043 |
Allowance for doubtful accounts | 114,000 | 137,000 |
Inventories, net | 18,865,932 | 18,348,011 |
Prepaid expenses | 887,885 | 678,689 |
Office furniture and equipment | 2,591,159 | 3,597,158 |
Accumulated depreciation and amortization | 26,886,000 | 32,938,000 |
Goodwill | 1,473,176 | 1,473,176 |
Due from related party | 53,000 | 47,000 |
Checks written in excess of bank balance | 454,850 | 1,688,675 |
Trade payables | 5,414,497 | 5,861,932 |
Debt Issuance Costs, Net | 0 | 62,000 |
Line of credit | 13,783,930 | 11,263,531 |
Notes payable - current portion, discount | 0 | 113,000 |
Accrued liabilities | 2,047,893 | 3,127,425 |
Notes Payable - Affiliates | 212,545 | 218,858 |
Notes Payable, net of non current portion, net discount | 0 | 0 |
Deferred gain (non current) | $ 207,410 | $ 297,521 |
Preferred Stock, Par or Stated Value Per (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 3,568,885 | 3,568,885 |
Common stock, shares outstanding (in shares) | 3,525,227 | 3,525,227 |
Treasury stock, shares (in shares) | ||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ||
Cash and cash equivalents | $ 2,000 | $ 51,000 |
Allowance for doubtful accounts | 28,000 | 6,000 |
Inventories, net | 498,000 | 719,000 |
Prepaid expenses | 80,000 | 18,000 |
Office furniture and equipment | 268,000 | 154,000 |
Accumulated depreciation and amortization | 36,000 | 29,000 |
Goodwill | 440,000 | 440,000 |
Checks written in excess of bank balance | 16,000 | 11,000 |
Trade payables | 144,000 | 92,000 |
Line of credit | 338,000 | 408,000 |
Accrued liabilities | 96,000 | 140,000 |
Notes Payable - Affiliates | 144,000 | 153,000 |
Notes Payable, net of non current portion, net discount | 83,000 | 301,000 |
Deferred gain (non current) | $ 31,000 | $ 39,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net Sales | $ 56,236,560 | $ 64,268,367 |
Cost of Sales | 42,481,710 | 47,149,360 |
Gross profit | 13,754,850 | 17,119,007 |
Operating expenses: | ||
General and administrative | 7,657,338 | 7,378,296 |
Selling | 3,638,241 | 4,748,061 |
Advertising and marketing | 1,971,420 | 2,189,620 |
Gain on sale of assets | (140,494) | (36,745) |
Other operating income | (1,416) | |
Total operating expenses | 13,125,089 | 14,279,232 |
Income from operations | 629,761 | 2,839,775 |
Other (expense) income: | ||
Interest expense | (1,576,229) | (1,454,589) |
Change in fair value of warrants | 19,999 | (103,636) |
Foreign currency (loss) gain | 144,855 | (43,263) |
Total other expense, net | (1,701,085) | (1,514,962) |
(Loss) Income before taxes | (1,071,324) | 1,324,813 |
Income tax (benefit) expense | 711,533 | 702,877 |
Net (Loss) Income | (1,782,857) | 621,936 |
Less: Net (loss) attributable to noncontrolling interest | (179,754) | (30,602) |
Net (loss) income attributable to CTI Industries Corporation | (1,603,103) | 652,538 |
Other Comprehensive (Loss) Income | ||
Foreign currency adjustment | 228,514 | (1,517,560) |
Comprehensive (loss) attributable to CTI Industries Corporation | $ (1,374,589) | $ (865,022) |
Basic (loss) income per common share (in dollars per share) | $ (0.45) | $ 0.18 |
Diluted (loss) income per common share (in dollars per share) | $ (0.44) | $ 0.18 |
Weighted average number of shares and equivalent shares of common stock outstanding: | ||
Basic (in shares) | 3,568,885 | 3,566,400 |
Diluted (in shares) | 3,616,244 | 3,727,554 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 3,386,579 | (43,658) | |||||
Balance at Dec. 31, 2015 | $ 13,775,994 | $ 1,577,807 | $ 1,670,788 | $ (4,076,318) | $ (160,784) | $ (198,463) | $ 12,589,024 |
Stocks Issued (in shares) | 177,596 | ||||||
Stocks Issued | $ 122,500 | 672,428 | $ 794,928 | ||||
Exercised (in shares) | 4,710 | 4,906 | |||||
Member contributions, net | 201,249 | $ 201,249 | |||||
Dividends Declared | (712,000) | (712,000) | |||||
Net (loss) income | 652,538 | (30,602) | 621,936 | ||||
Foreign currency translation | (1,517,560) | (1,517,560) | |||||
Balance (in shares) at Dec. 31, 2016 | 3,568,885 | (43,658) | |||||
Balance at Dec. 31, 2016 | $ 13,898,494 | 2,250,235 | 2,323,326 | (5,593,878) | $ (160,784) | (739,816) | $ 11,977,577 |
Exercised (in shares) | |||||||
Net (loss) income | (1,603,103) | (179,754) | $ (1,782,857) | ||||
Foreign currency translation | 228,514 | 228,514 | |||||
Stock Option Expense | 21,026 | 21,026 | |||||
Balance (in shares) at Dec. 31, 2017 | 3,568,885 | (43,658) | |||||
Balance at Dec. 31, 2017 | $ 13,898,494 | $ 2,271,261 | $ 720,223 | $ (5,365,364) | $ (160,784) | $ (919,570) | $ 10,444,260 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,782,857) | $ 621,936 |
Adjustment to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,546,413 | 1,420,789 |
Amortization of debt discount | 112,622 | 170,931 |
Change in fair value of warrants | (19,999) | 103,636 |
Stock based compensation | 34,104 | |
Amortization of deferred gain on sale-leaseback | (109,976) | (60,401) |
Provision for losses on accounts receivable | (29,227) | 26,318 |
Change in allowance for excess quantities of inventory | (295,430) | (11,294) |
Deferred income taxes | 594,223 | 50,591 |
Change in assets and liabilities: | ||
Accounts receivable | 3,878,170 | (4,083,379) |
Inventories | (222,491) | (1,364,450) |
Prepaid expenses and other assets | (690,015) | 473,328 |
Trade payables | (564,333) | 2,070,011 |
Accrued liabilities | (1,157,701) | 99,005 |
Net cash provided by (used in) operating activities | 1,259,399 | (448,875) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (753,199) | (630,187) |
Proceeds from equipment sale-leaseback | 783,134 | |
Purchase of member units | (87,500) | |
Net cash (used in) provided by investing activities | (753,199) | 65,447 |
Cash flows from financing activities: | ||
Change in checks written in excess of bank balance | (1,233,825) | 206,848 |
Net change in revolving line of credit | 2,466,652 | 373,059 |
Repayment of long-term debt (related parties $1,416,000 and $32,000) | (8,663,000) | (1,528,927) |
Proceeds from issuance of debt | 7,507,362 | 1,180,000 |
Proceeds from issuance of notes receivable | 8,740 | |
Proceeds from issuance of stock, net | 638,323 | |
Cash paid for deferred financing fees | (299,824) | (9,953) |
Distributions to Variable Interest Entity members | (467,000) | |
Contributions received by Variable Interest Entity | 515,912 | 288,750 |
Net cash provided by financing activities | 302,017 | 681,100 |
Effect of exchange rate changes on cash | (1,190,234) | (81,033) |
Net (decrease) increase in cash and cash equivalents | (382,017) | 216,639 |
Cash and cash equivalents at beginning of year | 563,043 | 346,404 |
Cash and cash equivalents at end of year | 181,026 | 563,043 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest | 1,426,743 | 910,414 |
Cash payments for taxes | 300,000 | |
Supplemental Disclosure of non-cash investing and financing activity | ||
Property, plant & equipment acquisitions funded by liabilities | 186,409 | 13,522 |
Interest accrued not paid | 65,000 | 92,900 |
Contributed Capital to Clever Container | ||
Stock | 122,500 | |
Debt | 43,750 | |
Accounts Receivable | $ 183,750 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Repayment of related party debt |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Nature of Operations CTI Industries Corporation, its United Kingdom subsidiary (CTI Balloons Li mited), 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. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. 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 Variable Interest Entities The determination of whether or not generally accepted accounting principles in the United States of America (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. 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 13 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 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 ’s significant estimates include valuation allowances for doubtful accounts, inventory valuation, deferred tax assets, goodwill and intangible asset valuation, and assumptions used as inputs in the Black-Scholes option-pricing model . Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short term investments with original maturities of three 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. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using standard costs which approximates costing determined on a first first Production costs of work in process and finished goods include material, labor and overhead. Work in process and finished goods are not 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: In years 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 committ ed to projects in process of $11,000 $33,000 December 31, 2017 2016, Stock-Based Compensation The Company has stock-based incentive plans which may 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 Fair Value Measurements U.S. GAAP 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 . The Company accounts for derivative instruments in accordance with U.S. GAAP, which requires that all derivative instruments be recognized on the balance sheet at fair value. We may one one December 31, 2017, one no 31, 2016. not no December 31, 2017. Goodwill The Company applies the provisions of U.S. GAAP, 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, 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 annually as of December 31, no December 31, 2017 2016 14 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 not ’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 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 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 not Unrecognized tax benefits are accounted for as required by U.S. GAAP which prescribes a more likely than not 10 Revenue Recognition The Company recognizes revenue when all of the following criteria have been met: ● Persuasive evidence of an arrangement exists; ● Delivery has occurred or a service has been provided; ● The sales price is fixed and determinable; and ● Collection is reasonably assured. For most of our revenue, these criteria are met at the time that product is shipped. In some cases, such as when material is sold on consignment, revenue is recognized when those products are reported as sold by the customer. Return rates fluctuate over time. We estimate returns at the time of shipment based on prior experience and relevant information. 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, 2017 2016, $345,000 $496,000, Advertising Costs The Company expenses advertising costs as incurred. Advertising expenses amounted to $119,000 $139,000 December 31, 2017 2016, |
Note 3 - New Accounting Pronoun
Note 3 - New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3 . New Accounting Pronouncements In 2014, five 2015, 2018, 2017. 2016, . The Company has completed its evaluation of the overall impact of the new standard on its accounting policies, processes, system requirements and internal controls over financial reporting. The Company will adopt the new standard as of January 1, 2018 not In July 2015, 2015 11, Simplifying the Measurement of Inventory No 2015 11 December 15, 2016. not In November 2015, 2015 17, Balance Sheet Classification of Deferred Taxes December 15, 2016, 2015 17 not 30, 2017 $779,000 $773,000 31, 2016. In February 2016, 2016 02, Leases ( 842 December 15, 2018, December 15, 2019, December 15, 2020. On August 26, 2016, No. 2016 15, Statement of Cash Flows (Topic 230 2016 15” No. 230 230” 230 2016 15 eight 2016 15 December 15, 2017. not |
Note 4 - Fair Value Disclosures
Note 4 - Fair Value Disclosures; Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | 4. U.S. GAAP 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. U.S. GAAP 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. U.S. GAAP establishes a three one three three ● 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. The following table presents information about the Company’s liabilities measured at fair value on a recurring basis as of December 31, 2017 2016, Amount as of Description 12/31/201 7 Level 1 Level 2 Level 3 Warrant Liability - - - - - - - - Amount as of Description 12/31/201 6 Level 1 Level 2 Level 3 Warrant Liability $ 818,000 - $ 818,000 - $ 818,000 $ 818,000 The warrants were converted into notes and repaid during 2017. The interest rate swap entered into December 14, 2017 three December 14, 2020) $3 2.25% 1.47% 8 December 31, 2017. |
Note 5 - Other Comprehensive Lo
Note 5 - Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 5. ther Comprehensive Loss Accumulated Other Comprehensive Loss Balances as of December 31, 2017 Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (5,593,878 ) $ (5,593,878 ) Current period change 228,514 228,514 Ending balance $ (5,365,364 ) $ (5,365,364 ) Accumulated Ot her Comprehensive Loss Balances as of December 31, 201 6 Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (4,076,318 ) $ (4,076,318 ) Current period change (1,517,560 ) (1,517,560 ) Ending balance $ (5,593,878 ) $ (5,593,878 ) For the years ended December 31, 201 7 2016, no not |
Note 6 - Major Customers
Note 6 - Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 6 . Major Customers For the year ended December 31, 2017, two 27.5% 16.9% December 31, 2016, two 24.6% 28.0% December 31, 2017, $2,871,000 $3,088,000, December 31, 2016, $2,842,000 $5,512,000, |
Note 7 - Inventories
Note 7 - Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 7. Inventories are stated at the lower of cost or net realizable value. Cost is determined using standard costs which approximate costing determined on a first first primarily by reviewing future demand requirements and shelf life of the product. Inventories are comprised of the following: December 31, 201 7 December 31, 201 6 Raw materials $ 2,632,415 $ 3,310,310 Work in Process 3,386,078 1,942,600 Finished Goods 13,347,620 13,889,328 Allowance for excess quantities (500,181 ) (794,227 ) Total inventories $ 18,865,932 $ 18,348,011 |
Note 8 - Notes Payable and Capi
Note 8 - Notes Payable and Capital Leases | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 8. Notes Payable and Capital Leases Long term debt consists of: Dec. 31, 201 7 Dec. 31, 201 6 Mezzanine Note Payable with BMO Private Equity, balance due January 18, 2018, interest at 11.50% (effective rate of 15.56%) $ - $ 5,000,000 Less: Remaining debt discount to be amortized (113,000 ) Loan with Officer, payable on receipt, interest at 6.25%, balance paid January 2017, S/T - 180,000 Mortgage Loan with BMO Harris, payable in monthly installments of $7,778 plus interest at prime (3.75%) plus a variable rate (based on loan covenants) of 0.75% (4.5%) at December 31, 2016 (amortized over 25 years) - 1,711,000 Promissory Note with Clever Container shareholder(s) due 2018 L/T - 81,000 Promissory Note from CTI to Clever Container shareholder S/T - 45,000 Promissory Note with John Schwan due 2018 L/T - 220,000 Term Loan with BMO Harris, payable in monthly installments of $22,323 beginning April 2012 plus interest at prime (3.75%) plus a variable rate (based on loan covenants) of 0.75% (4.5%) at December 31, 2016, (amortized over 5 years), balance due March 30, 2017. - 67,000 Capital Lease with First American Equipment Finance, payable in monthly installments of $2,890 (amortized over 5 years). 3,000 36,000 Capital Lease with Wells Fargo, payable in monthly installments of $367 (amortized over 5 years). 2,000 6,000 Capital Lease with Wells Fargo, payable in monthly installments of $550 (amortized over 3 years). - 3,000 Subordinated Notes (Officer ) due on demand, interest at 9% (see Notes 9, 12). - 5,000 Subordinated Notes (Officer ) due on demand, interest at 8% (see Notes 9, 12). - 802,000 Subordinated Notes (Officer ) due on demand, interest at prime (3.75%) plus 2% (5.75%) at December 31, 2016 (see Note 9). - 609,000 Subordinated Notes (Officers) due on demand, interest at 4% , which consolidated prior Subordinated Notes (Officers) 1,507,000 - Notes Payable (Affiliates) d ue 2015, interest at prime (3.25%) plus 0.25% (3.5%) at December 31, 2017 (see Note 12) (Related Party). 32,000 27,000 Promissory Note with Merrick Company due on demand, interest at 4.25% (Related Party). 76,000 83,000 Promissory Note with Schwan Leasing due on demand, interest at 4.25% (Related Party). 60,000 70,000 Notes Payable (Affiliate s) due 2021, interest at 11.75% (see Note 12) (Related Party). 41,000 47,000 Term Loan with PNC, payable in monthly installments of $100,000 amortized over 5 years, interest at 8.25%, balance due December 2022, which uses balloons and related equipment as collateral 6,000,000 - Total long-term debt 7,721,000 8,879,000 Less current portion (1,247,000 ) (1,938,000 ) Total Long-term debt, net of current portion $ 6,474,000 $ 6,941,000 Until December 2017, $17 December 2017, repaid all amounts owed BMO under those agreements, including the outstanding warrant note payable and associated fees and costs related to termination, as we entered in new financing agreements with PNC Bank, National Association (“PNC”). The “PNC Agreements” include a $6 $18 December 2022. Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at CTI Industries (U.S.) and Flexo Universal (Mexico). Certain terms of the PNC Agreements include: ● Restrictive Covenants : The Credit 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 Credit Agreement includes a series of financial covenants we are required to meet including: o We are required to maintain a "Leverage Ratio", which is defined as the ratio of (a) Funded Debt (other than the Shareholder Subordinated Loan) as of such date of determination to (b) EBITDA (as defined in the PNC Agreements) for the applicable period then ended. The highest values for this ration allowed by the PNC Agreements are: Fiscal Quarter Ratio December 31, 2017 4.75 to 1.00 March 31, 2018 4.50 to 1.00 June 30, 2018 4.25 to 1.00 September 30, 2018 3.75 to 1.00 December 31, 2018 3.50 to 1.00 March 31, 2019 3.25 to 1.00 June 30, 2019 3.00 to 1.00 September 30, 2019 and thereafter 2.75 to 1.00 o We are required to maintain a "Fixed Charge Coverage Ratio", which is defined as the ratio of (a) EBITDA for such fiscal period, minus Unfinanced Capital Expenditures made during such period, minus distributions (including tax distributions) and dividends made during such period, minus cash taxes paid during such period to (b) all Debt Payments made during such period. This ratio must not 1.1 1.0 The credit agreement provides for interest at varying rates in excess of the prime rate, depending on the level of senior debt to EBITDA over time. We also entered into a swap agreement with PNC Bank to fix the rate of interest for $3 3 2.25%. December 14, 2017 Failure to comply with these covenants might cause us to pay a higher rate of interest (by 2% December 31, 2017. |
Note 9 - Subordinated Debt - Re
Note 9 - Subordinated Debt - Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Subordinated Borrowings Disclosure [Text Block] | 9 . Subordinated Debt – Related Parties On September 30, 2016, $530,000 $370,000 ’s obligation to purchase and produce inventory for a substantial order for vacuum sealing systems to be delivered in November 2016. December 2016 January 2017. As of December 2017, $1,099,091, $399,731, December 2017 representing the amount owed to Mr. Schwan. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10 . Income Taxes The income tax provisions are comprised of the following: Dec. 31 2017 Dec. 31 2016 Current: Federal $ (188,549 ) $ 448,462 State (11,964 ) - Foreign 317,823 203,824 $ 117,310 $ 652,286 Deferred Federal $ 732,895 $ 70,223 State (79,598 ) 71,716 Foreign (59,074 ) (91,348 ) 594,223 50,591 Total Income Tax Provision $ 711,533 $ 702,877 The 2017 $0.2 34% 21%. The components of the net deferred tax asset at December 31 2017 2016 Deferred tax assets: Federal and state net operating loss carryforwards $ 523,808 $ 438,075 Foreign tax credit and other credits 592,993 581,917 Reserves and accruals 271,884 731,655 Unicap 263A adjustment 126,944 170,765 Other deferred tax assets 26,198 17,922 Foreign and VIE net operating loss carryforwards 569,147 541,983 Total gross deferred tax assets 2,110,974 2,482,317 Deferred tax liabilities: Fixed assets and intangibles (273,746 ) (740,627 ) Deferred state income tax (103,055 ) - Total gross deferred tax liabilities (376,801 ) (740,627 ) Less: valuation allowance (631,706 ) (45,000 ) Net deferred tax assets 1,102,467 1,696,690 Deferred Tax Asset Valuation Allowance 2017 201 6 Beginning Balance $ 45,000 $ 45,000 Additions charged (credited) to expense $ 586,706 $ - Balance at end of year $ 631,706 $ 45,000 The Company has a net operating loss carryforward for federal income tax purposes of approximately $0.4 2025, $0.6 2018. $4.5 2022. December 22, 2017, may $0.6 December 31, 2017, December 31, 2016. Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows: Years Ended December 31, 2017 201 6 Federal Taxes at statutory rate $ (372,364 ) $ 450,464 State income taxes , net of Federal tax effect (60,695 ) 67,768 Nondeductible expenses 35,083 51,741 Foreign taxes 522,803 132,905 Change in valuation allowance 586,706 - Income tax provision $ 711,533 $ 702,877 The Compan y 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 2014 2016 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, 2017 2016, not not December 31, 2017 2016, not Tax Reform act of 2017 On December 22, 2017, No. 118 118 118 740, 118 ’s financial statements for the reporting period which includes the enactment date. SAB 118 118 not one |
Note 11 - Employee Benefit Plan
Note 11 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
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 plan, the maximum contribution for the Company is 4% $47,000 $78,000 December 31, 2017 2016, 2017. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12 . Related Party Transactions Stephen M. Merrick , Chief Executive Officer 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 $154,000 $188,000 December 31, 2017 2016, John H. Schwan, Chairman of the Board, is the brother of Gary Schwan, one $19,000 $15,000 December 31, 2017 2016, During the period from January 2003 Chairman of the Board, has made loans to the Company which have outstanding balances, for the Company of $1,507,000 $1,416,000 December 31, 2017 2016, 2017 2016, $94,000 $93,000, 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 Items identified as Notes Payable Affiliates in the Company's Consolidated Balan ce Sheet as of December 31, 2017 2016 $41,000 $47,000, $32,000 $27,000, |
Note 13 - Variable Interest Ent
Note 13 - Variable Interest Entities ("VIE") and Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 13. Variable Interest Entities (“VIE”) and Transactions During 2010, two officers and/or 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% 100% Mr. Schwan and Mr. Merrick, through entities owned by them, arranged for a line of credit in the amount of $1,000,000 2010, $700,000. December 31, 2010 January 2011, was placed in service at Flexo Universal. Title to the equipment remained in the name of VLM. VLM leased the equipment to Flexo Universal under a lease in which Flexo Universal paid to VLM rental payments at the rate of approximately $9,000 not no On May 31, 2016 , Flexo Universal purchased the equipment from VLM for 8,700,000 Mr. Schwan and Mr. Merrick are partial 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. Together they own roughly half of Clever Container. The Company acquired a 28.5% third 2016. two October 1, 2013 The following sets forth the condensed balance sheet of VLM, VLUS and Clever Container for December 31, 2017 2016. Dec. 31, 201 7 Dec. 31, 2016 Current Assets $ 608,000 $ 794,000 Property, plant and equipment, net 231,000 125,000 Other noncurrent assets 740,000 794,000 Total assets $ 1,579,000 $ 1,713,000 Mortgages and other long-term debt payable $ 2,062,000 $ 1,962,000 Total liabilities $ 2,062,000 $ 1,962,000 |
Note 14 - Goodwill
Note 14 - Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 14 . Goodwill Under the provisions of U.S. GAAP, goodwill is subject to at least annual assessments for impairment by applying a fair-value based test. U.S. GAAP 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 The Company has determined that the fair value of goodwill was not impaired as of December 31, 2017 2016 . |
Note 15 - Commitments
Note 15 - Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 15 . Commitments Operating Leases In August 2015, he Company’s United Kingdom subsidiary entered into a 5 9,000 $6,000 In November 2016, 13,000 February 1, 2017 February 1, 2022 $9,000. February 1, 2017. In August 2011, 5 73,000 $22,000 February 28, 2017. March 1, 2017, five 493,090 $26,000 In September 2012, February 28, 2017 118,000 March 1, 2017, three Lease period Amount per month March 1, 2017 – February 28, 2018 $ 38,000 March 1, 2018 – February 28, 2019 $ 40,000 March 1, 2019 – February 29, 2020 $ 42,000 All of the Company ’s lease payments are recognized on a straight-line basis. The net lease expense was approximately $1.4 December 31, 2017 2016, The future aggregate minimum net lease payments under existing agreements as of December 31 Total 201 8 1,443,000 2019 1,427,000 2020 947,000 2021 805,000 2022+ 201,000 Total $ 4,823,000 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. Future guaranteed commitments due, as computed on a pro rata basis, as of December 31, 2018 500,000 2019 500,000 Total $ 1,000,000 |
Note 16 - Stockholders' Equity
Note 16 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 16 . Stockholders ’ Equity Stock Options 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% 10% may 2009 4 3 may may 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 1.4% 2.20%. 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%, not 2017 not Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements. The Company, at the discretion of the board, may not The Company ’s pre-tax income for the fiscal year ended December 31, 2017 2016 $21,000 $34,000, December 31, 2017, $364,000 $172,000, $92,000, $56,000 2018, 2019, 2020 On April 10, 2009, June 5, 2009, 2009 “2009 2009 authorizes the issuance of up to 510,000 December 31, 2017, 399,469 26,788 372,681 not 2009 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 D uring the year ended December 31, 2017, no 4,906 December 31, 2016. The following is a summary of the activity in the Company ’s stock option plans and other options for the years ended December 31, 2017 2016, December 31, 2017 December 31, 201 6 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Exercisable, beginning of period 83,275 $ 5.20 63,800 $ 5.26 Vested 37,138 5.70 30,381 5.22 Exercised - - 4,906 5.15 Cancelled /Expired (16,950 ) 5.17 (6,000 ) 5.96 Exercisable at the end of period 103,463 $ 5.38 83,275 $ 5.20 December 31, 201 7 December 31, 201 6 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Outstanding, beginning of period 143,094 $ 5.22 154,000 $ 5.25 Granted 350,000 3.52 - - Exercised - - 4,906 5.15 Cancelled /Expired (16,950 ) 5.17 (6,000 ) 5.96 Outstanding at the end of period 476,144 $ 3.97 143,094 $ 5.22 On December 1, 2017, 25,000 four 65,000 five 260,000 five At December 31, 201 7, 50,000 Warrants On July 17, 2012, 8 were exercisable at any time after July 17, 2012 July 17, 2022, 18 $5,000,000 4% $0.01 $703,000 December 31, 2017 $831,000. The fair value of the detachable warrants was estimated on the date of the grant using the Black-Scholes option-pricing model. This model use d the assumptions listed in the table below as of July 17, 2012 ( December 2017. Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Weighted average fair value per warrant - $ 5.85 $ 5.11 Risk-free interest rate - 1.47 % 1.76 % Expected lives (yrs.) - 3.0 4.0 Expected volatility - 34.03 % 28.99 % |
Note 17 - Earnings Per Share
Note 17 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
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. Consolidated Earnings per Share Year Ended December 31, 2017 2016 Basic Average shares outstanding: Weighted average number of shares outstanding during the period 3,568,885 3,566,400 Earnings: Net (loss)/income attributable to CTI Industries Corporation $ (1,603,103 ) $ 652,538 Amount for per share Computation $ (1,603,103 ) $ 652,538 Net (loss)/income per share applicable to Common Shares $ (0.45 ) $ 0.18 Diluted Average shares outstanding: 3,568,885 3,566,400 Weighted averages shares Outstanding Common stock equivalents (options, warrants) 47,359 161,154 Weighted average number of shares outstanding during the period 3,616,244 3,727,554 Earnings: Net (loss)/income attributable to CTI Industries Corporation $ (1,603,103 ) $ 652,538 Amount for per share computation $ (1,603,103 ) $ 652,538 Net (loss)/income per share applicable to Common Shares $ (0.44 ) $ 0.18 |
Note 18 - Geographic Segment Da
Note 18 - Geographic Segment Data | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 18 . Geographic Segment Data The Company ’s operations consist of a single 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. Sales and selected financial information by geographic area for the years ended December 31, 2017 2016, United States United Kingdom (UK) Europe (Excluding UK) Mexico Consolidated Year ended 12/31/1 7 Sales to outside customers $ 41,165,000 $ 1,908,000 $ 4,142,000 $ 9,022,000 $ 56,237,000 Total Assets $ 27,784,000 $ 923,000 $ 2,989,000 $ 8,288,000 $ 39,984,000 United States United Kingdom (UK) Europe (Excluding UK) Mexico Consolidated Year ended 12/31/1 6 Sales to outside customers $ 51,792,000 $ 2,427,000 $ 2,590,000 $ 7,459,000 $ 64,268,000 Total Assets $ 33,108,000 $ 1,324,000 $ 2,418,000 $ 7,064,000 $ 43,914,000 |
Note 19 - Contingencies
Note 19 - Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
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 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts: | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | – Valuation and Qualifying Accounts: The following is a summary of the allowance for doubtful accounts related to accounts receivable for the years e nded December 31: 201 7 201 6 Balance at beginning of year $ 137,000 $ 126,000 Charged to expenses 6,000 26,000 Uncollectible accounts written off (29,000 ) (15,000 ) Balance at end of year $ 114,000 $ 137,000 The following is a summary of the allowance for excess inventory for the years ended December 31: 201 7 2016 Balance at beginning of year $ 794,000 $ 823,000 Charged to expenses - (11,000 ) Excess inventory written off (294,000 ) (18,000 ) Balance at end of year $ 500,000 $ 794,000 The following is a summary of property and equipment and the related accounts of accumulated depreciation for the years ended December 3 1: 201 7 201 6 Cost Basis Balance at beginning of year $ 38,250,000 $ 39,025,000 Additions 813,697 - Disposals (7,620,697 ) (775,000 ) Balance at end of year $ 31,443,000 $ 38,250,000 Accumulated depreciation Balance at beginning of year $ 32,938,000 $ 32,472,000 Depreciation 1,568,697 466,000 Disposals (7,620,697 ) - Balance at end of year $ 26,886,000 $ 32,938,000 The following is a summary of the valuation allowance for income taxes for the years ended December 31: Deferred Tax Asset Valuation Allowance 2017 2016 Beginning Balance $ 45,000 $ 45,000 Additions charged (credited) to expense 586,706 - Balance at end of year $ 631,706 $ 45,000 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities The determination of whether or not generally accepted accounting principles in the United States of America (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. 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 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 ’s significant estimates include valuation allowances for doubtful accounts, inventory valuation, deferred tax assets, goodwill and intangible asset valuation, 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 |
Trade and Other 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 net realizable value. Cost is determined using standard costs which approximates costing determined on a first first Production costs of work in process and finished goods include material, labor and overhead. Work in process and finished goods are not |
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: In years 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 committ ed to projects in process of $11,000 $33,000 December 31, 2017 2016, |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company has stock-based incentive plans which may 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 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements U.S. GAAP 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 . The Company accounts for derivative instruments in accordance with U.S. GAAP, which requires that all derivative instruments be recognized on the balance sheet at fair value. We may one one December 31, 2017, one no 31, 2016. not no December 31, 2017. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill The Company applies the provisions of U.S. GAAP, 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, 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 annually as of December 31, no December 31, 2017 2016 14 |
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 not ’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 not Unrecognized tax benefits are accounted for as required by U.S. GAAP which prescribes a more likely than not 10 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue when all of the following criteria have been met: ● Persuasive evidence of an arrangement exists; ● Delivery has occurred or a service has been provided; ● The sales price is fixed and determinable; and ● Collection is reasonably assured. For most of our revenue, these criteria are met at the time that product is shipped. In some cases, such as when material is sold on consignment, revenue is recognized when those products are reported as sold by the customer. Return rates fluctuate over time. We estimate returns at the time of shipment based on prior experience and relevant information. |
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, 2017 2016, $345,000 $496,000, |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs The Company expenses advertising costs as incurred. Advertising expenses amounted to $119,000 $139,000 December 31, 2017 2016, |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant, and Equipment, Useful Life [Table Text Block] | In years 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 |
Note 4 - Fair Value Disclosur30
Note 4 - Fair Value Disclosures; Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Amount as of Description 12/31/201 7 Level 1 Level 2 Level 3 Warrant Liability - - - - - - - - Amount as of Description 12/31/201 6 Level 1 Level 2 Level 3 Warrant Liability $ 818,000 - $ 818,000 - $ 818,000 $ 818,000 |
Note 5 - Other Comprehensive 31
Note 5 - Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (5,593,878 ) $ (5,593,878 ) Current period change 228,514 228,514 Ending balance $ (5,365,364 ) $ (5,365,364 ) Accumulated Foreign Other Currency Comprehensive Items Loss Beginning balance $ (4,076,318 ) $ (4,076,318 ) Current period change (1,517,560 ) (1,517,560 ) Ending balance $ (5,593,878 ) $ (5,593,878 ) |
Note 7 - Inventories (Tables)
Note 7 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 201 7 December 31, 201 6 Raw materials $ 2,632,415 $ 3,310,310 Work in Process 3,386,078 1,942,600 Finished Goods 13,347,620 13,889,328 Allowance for excess quantities (500,181 ) (794,227 ) Total inventories $ 18,865,932 $ 18,348,011 |
Note 8 - Notes Payable and Ca33
Note 8 - Notes Payable and Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | Dec. 31, 201 7 Dec. 31, 201 6 Mezzanine Note Payable with BMO Private Equity, balance due January 18, 2018, interest at 11.50% (effective rate of 15.56%) $ - $ 5,000,000 Less: Remaining debt discount to be amortized (113,000 ) Loan with Officer, payable on receipt, interest at 6.25%, balance paid January 2017, S/T - 180,000 Mortgage Loan with BMO Harris, payable in monthly installments of $7,778 plus interest at prime (3.75%) plus a variable rate (based on loan covenants) of 0.75% (4.5%) at December 31, 2016 (amortized over 25 years) - 1,711,000 Promissory Note with Clever Container shareholder(s) due 2018 L/T - 81,000 Promissory Note from CTI to Clever Container shareholder S/T - 45,000 Promissory Note with John Schwan due 2018 L/T - 220,000 Term Loan with BMO Harris, payable in monthly installments of $22,323 beginning April 2012 plus interest at prime (3.75%) plus a variable rate (based on loan covenants) of 0.75% (4.5%) at December 31, 2016, (amortized over 5 years), balance due March 30, 2017. - 67,000 Capital Lease with First American Equipment Finance, payable in monthly installments of $2,890 (amortized over 5 years). 3,000 36,000 Capital Lease with Wells Fargo, payable in monthly installments of $367 (amortized over 5 years). 2,000 6,000 Capital Lease with Wells Fargo, payable in monthly installments of $550 (amortized over 3 years). - 3,000 Subordinated Notes (Officer ) due on demand, interest at 9% (see Notes 9, 12). - 5,000 Subordinated Notes (Officer ) due on demand, interest at 8% (see Notes 9, 12). - 802,000 Subordinated Notes (Officer ) due on demand, interest at prime (3.75%) plus 2% (5.75%) at December 31, 2016 (see Note 9). - 609,000 Subordinated Notes (Officers) due on demand, interest at 4% , which consolidated prior Subordinated Notes (Officers) 1,507,000 - Notes Payable (Affiliates) d ue 2015, interest at prime (3.25%) plus 0.25% (3.5%) at December 31, 2017 (see Note 12) (Related Party). 32,000 27,000 Promissory Note with Merrick Company due on demand, interest at 4.25% (Related Party). 76,000 83,000 Promissory Note with Schwan Leasing due on demand, interest at 4.25% (Related Party). 60,000 70,000 Notes Payable (Affiliate s) due 2021, interest at 11.75% (see Note 12) (Related Party). 41,000 47,000 Term Loan with PNC, payable in monthly installments of $100,000 amortized over 5 years, interest at 8.25%, balance due December 2022, which uses balloons and related equipment as collateral 6,000,000 - Total long-term debt 7,721,000 8,879,000 Less current portion (1,247,000 ) (1,938,000 ) Total Long-term debt, net of current portion $ 6,474,000 $ 6,941,000 |
Schedule of Leverage Ratios [Table Text Block] | Fiscal Quarter Ratio December 31, 2017 4.75 to 1.00 March 31, 2018 4.50 to 1.00 June 30, 2018 4.25 to 1.00 September 30, 2018 3.75 to 1.00 December 31, 2018 3.50 to 1.00 March 31, 2019 3.25 to 1.00 June 30, 2019 3.00 to 1.00 September 30, 2019 and thereafter 2.75 to 1.00 |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Dec. 31 2017 Dec. 31 2016 Current: Federal $ (188,549 ) $ 448,462 State (11,964 ) - Foreign 317,823 203,824 $ 117,310 $ 652,286 Deferred Federal $ 732,895 $ 70,223 State (79,598 ) 71,716 Foreign (59,074 ) (91,348 ) 594,223 50,591 Total Income Tax Provision $ 711,533 $ 702,877 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2017 2016 Deferred tax assets: Federal and state net operating loss carryforwards $ 523,808 $ 438,075 Foreign tax credit and other credits 592,993 581,917 Reserves and accruals 271,884 731,655 Unicap 263A adjustment 126,944 170,765 Other deferred tax assets 26,198 17,922 Foreign and VIE net operating loss carryforwards 569,147 541,983 Total gross deferred tax assets 2,110,974 2,482,317 Deferred tax liabilities: Fixed assets and intangibles (273,746 ) (740,627 ) Deferred state income tax (103,055 ) - Total gross deferred tax liabilities (376,801 ) (740,627 ) Less: valuation allowance (631,706 ) (45,000 ) Net deferred tax assets 1,102,467 1,696,690 |
Summary of Valuation Allowance [Table Text Block] | Deferred Tax Asset Valuation Allowance 2017 201 6 Beginning Balance $ 45,000 $ 45,000 Additions charged (credited) to expense $ 586,706 $ - Balance at end of year $ 631,706 $ 45,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years Ended December 31, 2017 201 6 Federal Taxes at statutory rate $ (372,364 ) $ 450,464 State income taxes , net of Federal tax effect (60,695 ) 67,768 Nondeductible expenses 35,083 51,741 Foreign taxes 522,803 132,905 Change in valuation allowance 586,706 - Income tax provision $ 711,533 $ 702,877 |
Note 13 - Variable Interest E35
Note 13 - Variable Interest Entities ("VIE") and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Variable Interest Entities [Table Text Block] | Dec. 31, 201 7 Dec. 31, 2016 Current Assets $ 608,000 $ 794,000 Property, plant and equipment, net 231,000 125,000 Other noncurrent assets 740,000 794,000 Total assets $ 1,579,000 $ 1,713,000 Mortgages and other long-term debt payable $ 2,062,000 $ 1,962,000 Total liabilities $ 2,062,000 $ 1,962,000 |
Note 15 - Commitments (Tables)
Note 15 - Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Lease period Amount per month March 1, 2017 – February 28, 2018 $ 38,000 March 1, 2018 – February 28, 2019 $ 40,000 March 1, 2019 – February 29, 2020 $ 42,000 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Total 201 8 1,443,000 2019 1,427,000 2020 947,000 2021 805,000 2022+ 201,000 Total $ 4,823,000 |
Schedule of Minimum Guaranteed Benefit Liabilities [Table Text Block] | 2018 500,000 2019 500,000 Total $ 1,000,000 |
Note 16 - Stockholders' Equity
Note 16 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | 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 |
Share-based Compensation, Activity [Table Text Block] | December 31, 2017 December 31, 201 6 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Exercisable, beginning of period 83,275 $ 5.20 63,800 $ 5.26 Vested 37,138 5.70 30,381 5.22 Exercised - - 4,906 5.15 Cancelled /Expired (16,950 ) 5.17 (6,000 ) 5.96 Exercisable at the end of period 103,463 $ 5.38 83,275 $ 5.20 December 31, 201 7 December 31, 201 6 Weighted Avg. Weighted Avg. Shares Exercise Price Shares Exercise Price Outstanding, beginning of period 143,094 $ 5.22 154,000 $ 5.25 Granted 350,000 3.52 - - Exercised - - 4,906 5.15 Cancelled /Expired (16,950 ) 5.17 (6,000 ) 5.96 Outstanding at the end of period 476,144 $ 3.97 143,094 $ 5.22 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Weighted average fair value per warrant - $ 5.85 $ 5.11 Risk-free interest rate - 1.47 % 1.76 % Expected lives (yrs.) - 3.0 4.0 Expected volatility - 34.03 % 28.99 % |
Note 17 - Earnings Per Share (T
Note 17 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2017 2016 Basic Average shares outstanding: Weighted average number of shares outstanding during the period 3,568,885 3,566,400 Earnings: Net (loss)/income attributable to CTI Industries Corporation $ (1,603,103 ) $ 652,538 Amount for per share Computation $ (1,603,103 ) $ 652,538 Net (loss)/income per share applicable to Common Shares $ (0.45 ) $ 0.18 Diluted Average shares outstanding: 3,568,885 3,566,400 Weighted averages shares Outstanding Common stock equivalents (options, warrants) 47,359 161,154 Weighted average number of shares outstanding during the period 3,616,244 3,727,554 Earnings: Net (loss)/income attributable to CTI Industries Corporation $ (1,603,103 ) $ 652,538 Amount for per share computation $ (1,603,103 ) $ 652,538 Net (loss)/income per share applicable to Common Shares $ (0.44 ) $ 0.18 |
Note 18 - Geographic Segment 39
Note 18 - Geographic Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | United States United Kingdom (UK) Europe (Excluding UK) Mexico Consolidated Year ended 12/31/1 7 Sales to outside customers $ 41,165,000 $ 1,908,000 $ 4,142,000 $ 9,022,000 $ 56,237,000 Total Assets $ 27,784,000 $ 923,000 $ 2,989,000 $ 8,288,000 $ 39,984,000 United States United Kingdom (UK) Europe (Excluding UK) Mexico Consolidated Year ended 12/31/1 6 Sales to outside customers $ 51,792,000 $ 2,427,000 $ 2,590,000 $ 7,459,000 $ 64,268,000 Total Assets $ 33,108,000 $ 1,324,000 $ 2,418,000 $ 7,064,000 $ 43,914,000 |
Schedule II - Valuation and Q40
Schedule II - Valuation and Qualifying Accounts: (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Valuation and Qualifying Accounts [Table Text Block] | 201 7 201 6 Balance at beginning of year $ 137,000 $ 126,000 Charged to expenses 6,000 26,000 Uncollectible accounts written off (29,000 ) (15,000 ) Balance at end of year $ 114,000 $ 137,000 201 7 2016 Balance at beginning of year $ 794,000 $ 823,000 Charged to expenses - (11,000 ) Excess inventory written off (294,000 ) (18,000 ) Balance at end of year $ 500,000 $ 794,000 Deferred Tax Asset Valuation Allowance 2017 2016 Beginning Balance $ 45,000 $ 45,000 Additions charged (credited) to expense 586,706 - Balance at end of year $ 631,706 $ 45,000 |
Schedule of Property and Equipment and the Related Depreciation [Table Text Block] | 201 7 201 6 Cost Basis Balance at beginning of year $ 38,250,000 $ 39,025,000 Additions 813,697 - Disposals (7,620,697 ) (775,000 ) Balance at end of year $ 31,443,000 $ 38,250,000 Accumulated depreciation Balance at beginning of year $ 32,938,000 $ 32,472,000 Depreciation 1,568,697 466,000 Disposals (7,620,697 ) - Balance at end of year $ 26,886,000 $ 32,938,000 |
Note 2 - Summary of Significa41
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of Entities Consolidated as Variable Interest Entities | 3 | |
Interest Costs Capitalized | $ 11,000 | $ 33,000 |
Goodwill, Impairment Loss | 0 | 0 |
Research and Development Expense | 345,000 | 496,000 |
Advertising Expense | $ 119,000 | $ 139,000 |
Note 2 - Summary of Significa42
Note 2 - Summary of Significant Accounting Policies - Property, Plant, and Equipment, Useful Life (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | Intellectual Property [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 9 years |
Maximum [Member] | Intellectual Property [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 15 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 25 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 30 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 15 years |
Project Life [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Project Life [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Light Machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Light Machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Heavy Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Heavy Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 8 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 8 years |
Furniture and Equipment At Customer Locations [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 1 year |
Furniture and Equipment At Customer Locations [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Note 3 - New Accounting Prono43
Note 3 - New Accounting Pronouncements (Details Textual) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Standards Update 2015-17 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 779,000 | $ 773,000 |
Note 4 - Fair Value Disclosur44
Note 4 - Fair Value Disclosures; Derivative Instruments (Details Textual) - PNC [Member] - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] $ in Millions | Dec. 14, 2017USD ($) |
Derivative, Term of Contract | 3 years |
Derivative Liability, Notional Amount | $ 3 |
Derivative, Fixed Interest Rate | 2.25% |
Derivative, Variable Interest Rate | 1.47% |
Note 4 - Fair Value Disclosur45
Note 4 - Fair Value Disclosures; Derivative Instruments - Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Warrant Liability | $ 817,880 | |
Fair Value, Measurements, Recurring [Member] | ||
Warrant Liability | 818,000 | |
Liabilities, Fair Value Disclosure | 818,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrant Liability | 0 | |
Liabilities, Fair Value Disclosure | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrant Liability | 818,000 | |
Liabilities, Fair Value Disclosure | 818,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrant Liability | 0 | |
Liabilities, Fair Value Disclosure | $ 0 |
Note 5 - Other Comprehensive 46
Note 5 - Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 |
Note 5 - Other Comprehensive 47
Note 5 - Other Comprehensive Loss - Accumulated Other Comprehensive Loss Balances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance | $ 11,977,577 | $ 12,589,024 |
Balance | 10,444,260 | 11,977,577 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balance | (5,593,878) | (4,076,318) |
Accumulated Other Comprehensive Loss, Current period change | 228,514 | (1,517,560) |
Balance | (5,365,364) | (5,593,878) |
AOCI Attributable to Parent [Member] | ||
Balance | (5,593,878) | (4,076,318) |
Accumulated Other Comprehensive Loss, Current period change | 228,514 | (1,517,560) |
Balance | $ (5,365,364) | $ (5,593,878) |
Note 6 - Major Customers (Detai
Note 6 - Major Customers (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Customer One [Member] | ||
Accounts Receivable, Gross | $ 2,871,000 | $ 2,842,000 |
Customer Two [Member] | ||
Accounts Receivable, Gross | $ 3,088,000 | $ 5,512,000 |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Number of Major Customers | 2 | 2 |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer One [Member] | ||
Concentration Risk, Percentage | 27.50% | 24.60% |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer Two [Member] | ||
Concentration Risk, Percentage | 16.90% | 28.00% |
Note 7 - Inventories - Inventor
Note 7 - Inventories - Inventories (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Raw materials | $ 2,632,415 | $ 3,310,310 |
Work in Process | 3,386,078 | 1,942,600 |
Finished Goods | 13,347,620 | 13,889,328 |
Allowance for excess quantities | (500,181) | (794,227) |
Total inventories | $ 18,865,932 | $ 18,348,011 |
Note 8 - Notes Payable and Ca50
Note 8 - Notes Payable and Capital Leases (Details Textual) | Dec. 14, 2017USD ($) | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Potential Percent Increase in Interest Rates Contingent on Covenant Compliance | 2.00% | |||
PNC [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Liability, Notional Amount | $ 3,000,000 | |||
Derivative, Term of Contract | 3 years | |||
Derivative, Fixed Interest Rate | 2.25% | |||
Maximum [Member] | ||||
Fixed Charge Coverage Ratio | 1.1 | |||
BMO [Member] | ||||
Long-term Debt | $ 17,000,000 | |||
PNC [Member] | Term Loan [Member] | ||||
Long-term Debt | $ 6,000,000 | |||
PNC [Member] | PNC Agreements [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 18,000,000 | |||
PNC [Member] | PNC Agreements [Member] | Term Loan [Member] | ||||
Long-term Debt | $ 6,000,000 |
Note 8 - Notes Payable and Ca51
Note 8 - Notes Payable and Capital Leases - Long-term Debt (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Total long-term debt | $ 7,721,000 | $ 8,879,000 |
Less current portion | (1,247,000) | (1,938,000) |
Total Long-term debt, net of current portion | 6,474,000 | 6,941,000 |
Loan With Officer [Member] | ||
Long-term debt | 180,000 | |
Mortgages [Member] | ||
Long-term debt | 1,711,000 | |
Promissory Note With Clever Container Shareholder [Member] | ||
Long-term debt | 81,000 | |
Promissory Note From CTI To Clever Container Shareholder [Member] | ||
Long-term debt | 45,000 | |
Promissory Note With John Schwan [Member] | ||
Long-term debt | 220,000 | |
9% Subordinated Notes [Member] | ||
Long-term debt | 5,000 | |
8% Subordinated Notes [Member] | ||
Long-term debt | 802,000 | |
Prime + 2% Subordinated Notes [Member] | ||
Long-term debt | 609,000 | |
4% Subordinated Notes [Member] | ||
Long-term debt | 1,507,000 | |
Prime + .25% Note Payable [Member] | CTI Europe [Member] | ||
Long-term debt | 32,000 | 27,000 |
Promissory Note With Merrick [Member] | ||
Long-term debt | 76,000 | 83,000 |
Promissory Note with Schwan Leasing [Member] | ||
Long-term debt | 60,000 | 70,000 |
Note Payable at 11.75% [Member] | Flexo Universal [Member] | ||
Long-term debt | 41,000 | 47,000 |
BMO Equity [Member] | Mezzanine Note Payable [Member] | ||
Long-term debt | 5,000,000 | |
Less: Remaining debt discount to be amortized | (113,000) | |
BMO Harris Bank N.A. [Member] | Term Loan [Member] | ||
Long-term debt | 67,000 | |
First American Equipment Finance [Member] | ||
Capital lease obligation | 3,000 | 36,000 |
Wells Fargo [Member] | 5 Year Capital Lease [Member] | ||
Capital lease obligation | 2,000 | 6,000 |
Wells Fargo [Member] | 3 Year Capital Lease [Member] | ||
Capital lease obligation | 3,000 | |
PNC [Member] | Term Loan [Member] | ||
Long-term debt | $ 6,000,000 |
Note 8 - Notes Payable and Ca52
Note 8 - Notes Payable and Capital Leases - Long-term Debt (Details) (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loan With Officer [Member] | ||
Stated Rate | 6.25% | |
Mortgages [Member] | ||
Effective Rate | 4.50% | |
Periodic payment | $ 7,778 | |
Prime rate | 3.75% | |
Variable rate | 0.75% | |
Amortization period (Year) | 25 years | |
9% Subordinated Notes [Member] | ||
Stated Rate | 9.00% | |
Maturty date description | Due on demand | |
8% Subordinated Notes [Member] | ||
Stated Rate | 8.00% | |
Maturty date description | Due on demand | |
Prime + 2% Subordinated Notes [Member] | ||
Effective Rate | 5.75% | |
Prime rate | 3.75% | |
Variable rate | 2.00% | |
Maturty date description | Due on demand | |
4% Subordinated Notes [Member] | ||
Stated Rate | 4.00% | |
Prime + .25% Note Payable [Member] | CTI Europe [Member] | ||
Effective Rate | 3.50% | 3.50% |
Prime rate | 3.25% | 3.25% |
Variable rate | 0.25% | 0.25% |
Maturty date description | Due 2,015 | Due 2,015 |
Promissory Note With Merrick [Member] | ||
Stated Rate | 4.25% | 4.25% |
Promissory Note with Schwan Leasing [Member] | ||
Stated Rate | 4.25% | 4.25% |
Maturty date description | Due on demand | Due on demand |
Note Payable at 11.75% [Member] | Flexo Universal [Member] | ||
Stated Rate | 11.75% | 11.75% |
Maturty date description | Due 2,021 | Due 2,021 |
BMO Equity [Member] | Mezzanine Note Payable [Member] | ||
Stated Rate | 11.50% | |
Effective Rate | 15.56% | |
Maturity Date | Jan. 18, 2018 | |
BMO Harris Bank N.A. [Member] | Term Loan [Member] | ||
Effective Rate | 4.50% | |
Maturity Date | Mar. 31, 2017 | |
Periodic payment | $ 22,323 | |
Prime rate | 3.75% | |
Variable rate | 0.75% | |
Amortization period (Year) | 5 years | |
First American Equipment Finance [Member] | ||
Periodic payment | $ 2,890 | $ 2,890 |
Amortization period (Year) | 5 years | 5 years |
Wells Fargo [Member] | 5 Year Capital Lease [Member] | ||
Periodic payment | $ 367 | $ 367 |
Amortization period (Year) | 5 years | 5 years |
Wells Fargo [Member] | 3 Year Capital Lease [Member] | ||
Periodic payment | $ 550 | |
Amortization period (Year) | 3 years | |
PNC [Member] | Term Loan [Member] | ||
Stated Rate | 8.25% | |
Periodic payment | $ 100,000 | |
Amortization period (Year) | 5 years |
Note 8 - Notes Payable and Ca53
Note 8 - Notes Payable and Capital Leases - Leverage Ratios (Details) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Leverage ratio | 4.75 | |||||||
Scenario, Forecast [Member] | ||||||||
Leverage ratio | 2.75 | 3 | 3.25 | 3.5 | 3.75 | 4.25 | 4.5 |
Note 9 - Subordinated Debt - 54
Note 9 - Subordinated Debt - Related Parties (Details Textual) - John H Schwan [Member] - Promissory Note [Member] - USD ($) | Sep. 30, 2016 | Dec. 31, 2017 |
Proceeds from Related Party Debt | $ 530,000 | |
Debt Instrument, Face Amount | $ 370,000 | |
Due to Related Parties | $ 1,099,091 | |
Interest Payable | $ 399,731 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 200,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 586,706 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | |
Unrecognized Tax Benefits | $ 0 | $ 0 | |
Earliest Tax Year [Member] | |||
Open Tax Year | 2,014 | ||
Latest Tax Year [Member] | |||
Open Tax Year | 2,016 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards | $ 400,000 | ||
Tax Credit Carryforward, Amount | 600,000 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards | $ 4,500,000 | ||
Scenario, Forecast [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 10 - Income Taxes - Income
Note 10 - Income Taxes - Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | $ (188,549) | $ 448,462 |
State | (11,964) | |
Foreign | 317,823 | 203,824 |
Current Income Tax Expense (Benefit) | 117,310 | 652,286 |
Deferred | ||
Federal | 732,895 | 70,223 |
State | (79,598) | 71,716 |
Foreign | (59,074) | (91,348) |
Deferred Income Tax Expense (Benefit) | 594,223 | 50,591 |
Total Income Tax Provision | $ 711,533 | $ 702,877 |
Note 10 - Income Taxes - Deferr
Note 10 - Income Taxes - Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | |||
Federal and state net operating loss carryforwards | $ 523,808 | $ 438,075 | |
Foreign tax credit and other credits | 592,993 | 581,917 | |
Reserves and accruals | 271,884 | 731,655 | |
Unicap 263A adjustment | 126,944 | 170,765 | |
Other deferred tax assets | 26,198 | 17,922 | |
Foreign and VIE net operating loss carryforwards | 569,147 | 541,983 | |
Total gross deferred tax assets | 2,110,974 | 2,482,317 | |
Deferred tax liabilities: | |||
Fixed assets and intangibles | (273,746) | (740,627) | |
Deferred state income tax | (103,055) | ||
Total gross deferred tax liabilities | (376,801) | (740,627) | |
Less: valuation allowance | (631,706) | (45,000) | $ (45,000) |
Net deferred tax assets | $ 1,102,467 | $ 1,696,690 |
Note 10 - Income Taxes - Summar
Note 10 - Income Taxes - Summary of Deferred Tax Asset Valuation Allowance (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning Balance | $ 45,000 | $ 45,000 |
Additions charged (credited) to expense | 586,706 | |
Balance at end of year | $ 631,706 | $ 45,000 |
Note 10 - Income Taxes - Inco59
Note 10 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Taxes at statutory rate | $ (372,364) | $ 450,464 |
State income taxes, net of Federal tax effect | (60,695) | 67,768 |
Nondeductible expenses | 35,083 | 51,741 |
Foreign taxes | 522,803 | 132,905 |
Change in valuation allowance | 586,706 | |
Total Income Tax Provision | $ 711,533 | $ 702,877 |
Note 11 - Employee Benefit Pl60
Note 11 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 47,000 | $ 78,000 |
Note 12 - Related Party Trans61
Note 12 - Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Legal Fees | $ 154,000 | $ 188,000 |
Due to Related Parties, Noncurrent | 1,507,000 | 1,416,000 |
Interest Expense, Related Party | 94,000 | 93,000 |
Due from Employees | 41,000 | 47,000 |
Schwan Incorporated [Member] | ||
Related Party Transaction, Amounts of Transaction | 19,000 | 15,000 |
CTI Europe [Member] | ||
Long-term Debt, Gross | $ 32,000 | $ 27,000 |
Note 13 - Variable Interest E62
Note 13 - Variable Interest Entities ("VIE") and Transactions (Details Textual) | May 31, 2016MXN ($) | Jan. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2016 |
Clever Container [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 28.50% | |||
Venture Leasing L.L.C [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||
Proceeds from Lines of Credit | $ 700,000 | |||
Venture Leasing Mexico S. A. de R. L [Member] | Flexo Universal [Member] | ||||
Operating Lease, Monthly Rent | $ 9,000 | |||
Flexo Universal [Member] | Venture Leasing Mexico S. A. de R. L [Member] | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ 8,700,000 | |||
Venture Leasing L.L.C [Member] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||
Venture Leasing Mexico S. A. de R. L [Member] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% |
Note 13 - Variable Interest E63
Note 13 - Variable Interest Entities ("VIE") and Transactions - Condensed Balance Sheet (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | $ 32,291,485 | $ 34,959,390 |
Property, plant and equipment, net | 4,556,581 | 5,311,388 |
Total assets | 39,984,038 | 43,913,739 |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ||
Current Assets | 608,000 | 794,000 |
Property, plant and equipment, net | 231,000 | 125,000 |
Other noncurrent assets | 740,000 | 794,000 |
Total assets | 1,579,000 | 1,713,000 |
Mortgages and other long-term debt payable | 2,062,000 | 1,962,000 |
Total liabilities | $ 2,062,000 | $ 1,962,000 |
Note 14 - Goodwill (Details Tex
Note 14 - Goodwill (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-lived Intangible Assets Acquired | $ 0 | |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | $ 0 |
Indefinite-lived Intangible Assets Acquired | $ 0 |
Note 15 - Commitments (Details
Note 15 - Commitments (Details Textual) | Mar. 01, 2017USD ($) | Mar. 01, 2017MXN ($) | Nov. 30, 2016USD ($)ft² | Aug. 31, 2015USD ($)ft² | Aug. 31, 2011USD ($)ft² | Dec. 31, 2017USD ($) | Sep. 30, 2012a |
Operating Leases, Rent Expense, Net | $ | $ 1.40 | ||||||
Warehouse and Office Space in Lake Zurich, Illinois [Member] | |||||||
Area of Real Estate Property | a | 118,000 | ||||||
Lessee, Operating Lease, Renewal Term | 3 years | 3 years | |||||
CTI Balloons Limited [Member] | Warehouse and Office Space in Rugby, England [Member] | |||||||
Lessee, Operating Lease, Term of Contract | 5 years | ||||||
Area of Real Estate Property | ft² | 9,000 | ||||||
Operating Lease, Monthly Rent | $ | $ 6,000 | ||||||
CTI Europe [Member] | Office and Warehouse Space in Heusenstamm, Germany [Member] | |||||||
Area of Real Estate Property | ft² | 13,000 | ||||||
Operating Lease, Monthly Rent | $ | $ 9,000 | ||||||
Flexo Universal [Member] | Warehouse and Office Space in Guadalajara, Mexico [Member] | |||||||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years | 5 years | ||||
Area of Real Estate Property | ft² | 73,000 | ||||||
Operating Lease, Monthly Rent | $ 26,000 | $ 493,090 | $ 22,000 |
Note 15 - Commitments - Operati
Note 15 - Commitments - Operating Leases (Details) - Scenario, Forecast [Member] - USD ($) | 12 Months Ended | ||
Feb. 28, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Lease expiration date | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Lease start date | Mar. 1, 2019 | Mar. 1, 2018 | Mar. 1, 2017 |
Amount per month | $ 42,000 | $ 40,000 | $ 38,000 |
Note 15 - Commitments - Future
Note 15 - Commitments - Future Minimum Lease Payments (Details) | Dec. 31, 2017USD ($) |
2,018 | $ 1,443,000 |
2,019 | 1,427,000 |
2,020 | 947,000 |
2,021 | 805,000 |
2022+ | 201,000 |
Total | $ 4,823,000 |
Note 15 - Commitments - Futur68
Note 15 - Commitments - Future Guaranteed Commitments Due (Details) | Dec. 31, 2017USD ($) |
2,018 | $ 500,000 |
2,019 | 500,000 |
Total | $ 1,000,000 |
Note 16 - Stockholders' Equit69
Note 16 - Stockholders' Equity (Details Textual) - USD ($) | Dec. 01, 2017 | Jul. 17, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 10, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Minimum Ownership Percentage to Trigger Greater than Fair Value Purchase Price | 10.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 273 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Dividends, Common Stock, Cash | $ 0 | |||||
Allocated Share-based Compensation Expense | 21,000 | $ 34,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 364,000 | |||||
Expected Recognized Compensation Expenses Next Year | 172,000 | |||||
Expected Recognized Compensation Expenses in Year Two | 92,000 | |||||
Expected Recognized Compensation Expenses in Year Three | $ 56,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 476,144 | 143,094 | 154,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,906 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 350,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 50,000 | |||||
Warrants and Rights Outstanding | $ 817,880 | |||||
Note and Warrant Purchase Agreement [Member] | ||||||
Notes Payable | $ 5,000,000 | $ 831,000 | ||||
Warrants Issued in Connection with the Note and Warrant Purchase Agreement [Member] | ||||||
Warrants Term | 1 year 180 days | |||||
Percentage of Common Stock Issued | 4.00% | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |||||
Warrants and Rights Outstanding | $ 703,000 | |||||
President [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 25,000 | |||||
President [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 65,000 | |||||
President [Member] | Non-qualified Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 260,000 | |||||
Stock Incentive Plan 2009 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 510,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 399,469 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 26,788 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 372,681 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 4,906 | ||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.40% | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.20% |
Note 16 - Stockholders' Equit70
Note 16 - Stockholders' Equity - Vesting Schedule (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Vesting period | 3 years |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche One [Member] | Awards Using Vesting Schedule A [Member] | |
Vesting period | 1 year |
Vesting percentage | 25.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche One [Member] | Awards Using Vesting Schedule B [Member] | |
Vesting period | 2 years |
Vesting percentage | 33.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche One [Member] | Awards Using Vesting Schedule C [Member] | |
Vesting period | 4 years |
Vesting percentage | 50.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche One [Member] | Awards Using Vesting Schedule D [Member] | |
Vesting period | 180 days |
Vesting percentage | 20.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Two [Member] | Awards Using Vesting Schedule A [Member] | |
Vesting period | 2 years |
Vesting percentage | 50.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Two [Member] | Awards Using Vesting Schedule B [Member] | |
Vesting period | 3 years |
Vesting percentage | 67.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Two [Member] | Awards Using Vesting Schedule C [Member] | |
Vesting period | 4 years 270 days |
Vesting percentage | 100.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Two [Member] | Awards Using Vesting Schedule D [Member] | |
Vesting period | 1 year 180 days |
Vesting percentage | 40.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Three [Member] | Awards Using Vesting Schedule A [Member] | |
Vesting period | 3 years |
Vesting percentage | 75.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Three [Member] | Awards Using Vesting Schedule B [Member] | |
Vesting period | 4 years |
Vesting percentage | 100.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Three [Member] | Awards Using Vesting Schedule D [Member] | |
Vesting period | 2 years 180 days |
Vesting percentage | 60.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Four [Member] | Awards Using Vesting Schedule A [Member] | |
Vesting period | 4 years |
Vesting percentage | 100.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Four [Member] | Awards Using Vesting Schedule D [Member] | |
Vesting period | 3 years 180 days |
Vesting percentage | 80.00% |
Stock Incentive Plan 2009 [Member] | Share-based Compensation Award, Tranche Five [Member] | Awards Using Vesting Schedule D [Member] | |
Vesting period | 4 years 180 days |
Vesting percentage | 100.00% |
Note 16 - Stockholders' Equit71
Note 16 - Stockholders' Equity - Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Exercisable, beginning of period (in shares) | 83,275 | 63,800 |
Exercisable, beginning of period (in dollars per share) | $ 5.20 | $ 5.26 |
Vested (in shares) | 37,138 | 30,381 |
Vested (in dollars per share) | $ 5.70 | $ 5.22 |
Exercised (in shares) | 4,906 | |
Exercised (in dollars per share) | $ 5.15 | |
Cancelled/Expired (in shares) | (16,950) | (6,000) |
Cancelled/Expired (in dollars per share) | $ 5.17 | $ 5.96 |
Exercisable at the end of period (in shares) | 103,463 | 83,275 |
Exercisable at the end of period (in dollars per share) | $ 5.38 | $ 5.20 |
Outstanding, beginning of period (in shares) | 143,094 | 154,000 |
Outstanding, beginning of period (in dollars per share) | $ 5.22 | $ 5.25 |
Granted (in shares) | 350,000 | |
Granted (in dollars per share) | $ 3.52 | |
Exercised (in shares) | 4,906 | |
Exercised (in dollars per share) | $ 5.15 | |
Cancelled/Expired (in shares) | (16,950) | (6,000) |
Cancelled/Expired (in dollars per share) | $ 5.17 | $ 5.96 |
Outstanding at the end of period (in shares) | 476,144 | 143,094 |
Outstanding at the end of period (in dollars per share) | $ 3.97 | $ 5.22 |
Note 16 - Stockholders' Equit72
Note 16 - Stockholders' Equity - Fair Value Assumptions of Warrants (Details) - Warrants Issued in Connection with the Note and Warrant Purchase Agreement [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average fair value per warrant (in dollars per share) | $ 5.85 | $ 5.11 | |
Risk-free interest rate | 1.47% | 1.76% | |
Expected lives (yrs.) (Year) | 3 years | 4 years | |
Expected volatility | 34.03% | 28.99% |
Note 17 - Earnings Per Share -
Note 17 - Earnings Per Share - Consolidated Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Basic | ||
Weighted average number of shares outstanding during the period (in shares) | 3,568,885 | 3,566,400 |
Earnings Per Share, Basic: | ||
Net (loss)/income attributable to CTI Industries Corporation | $ (1,603,103) | $ 652,538 |
Amount for per share Computation | $ (1,603,103) | $ 652,538 |
Net (loss)/income per share applicable to Common Shares (in dollars per share) | $ (0.45) | $ 0.18 |
Weighted average number of shares outstanding during the period (in shares) | 3,568,885 | 3,566,400 |
Weighted averages shares Outstanding Common stock equivalents (options, warrants) (in shares) | 47,359 | 161,154 |
Weighted average number of shares outstanding during the period (in shares) | 3,616,244 | 3,727,554 |
Earnings Per Share, Diluted: | ||
Net (loss)/income attributable to CTI Industries Corporation | $ (1,603,103) | $ 652,538 |
Amount for per share computation | $ (1,603,103) | $ 652,538 |
Net (loss)/income per share applicable to Common Shares (in dollars per share) | $ (0.44) | $ 0.18 |
Note 18 - Geographic Segment 74
Note 18 - Geographic Segment Data - Financial Information By Geographic Area (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales to outside customers | $ 56,236,560 | $ 64,268,367 |
Total Assets | 39,984,038 | 43,913,739 |
UNITED STATES | ||
Sales to outside customers | 41,165,000 | 51,792,000 |
Total Assets | 27,784,000 | 33,108,000 |
UNITED KINGDOM | ||
Sales to outside customers | 1,908,000 | 2,427,000 |
Total Assets | 923,000 | 1,324,000 |
Europe [Member] | ||
Sales to outside customers | 4,142,000 | 2,590,000 |
Total Assets | 2,989,000 | 2,418,000 |
MEXICO | ||
Sales to outside customers | 9,022,000 | 7,459,000 |
Total Assets | $ 8,288,000 | $ 7,064,000 |
Schedule II - Valuation and Q75
Schedule II - Valuation and Qualifying Accounts - Summary of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Member] | ||
Balance at beginning of year | $ 137,000 | $ 126,000 |
Charged to expenses | 6,000 | 26,000 |
Deductions | (29,000) | (15,000) |
Balance at end of year | 114,000 | 137,000 |
Inventory Valuation Reserve [Member] | ||
Balance at beginning of year | 794,000 | 823,000 |
Charged to expenses | (11,000) | |
Excess inventory written off | (294,000) | (18,000) |
Balance at end of year | 500,000 | 794,000 |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Balance at beginning of year | 45,000 | 45,000 |
Excess inventory written off | 586,706 | |
Balance at end of year | $ 631,706 | $ 45,000 |
Schedule II - Valuation and Q76
Schedule II - Valuation and Qualifying Accounts - Summary of Property and Equipment and the Related Accumulated Depreciation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cost Basis | ||
Balance at beginning of year | $ 38,249,655 | $ 39,025,000 |
Additions | 813,697 | |
Disposals | (7,620,697) | (775,000) |
Balance at end of year | 31,442,720 | 38,249,655 |
Accumulated depreciation | ||
Balance at beginning of year | 32,938,000 | 32,472,000 |
Depreciation | 1,568,697 | 466,000 |
Disposals | (7,620,697) | 0 |
Balance at end of year | $ 26,886,000 | $ 32,938,000 |