Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Apr. 12, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Entity Registrant Name | Yunhong CTI LTD. | ||
Entity Central Index Key | 0001042187 | ||
Trading Symbol | ctib | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 5,886,750 | ||
Entity Public Float | $ 5,866 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock, no par value per share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 429,457 | $ 845,098 |
Accounts receivable | 5,013,195 | 6,793,532 |
Inventories, net | 10,969,711 | 13,536,707 |
Prepaid expenses | 589,149 | 353,183 |
Other current assets | 1,352,419 | 1,312,205 |
Income Tax Receivable | 403,074 | |
Receivable from related party, net of allowance for reserve | 100,000 | 1,387,131 |
Current assets of discontinued operations | 294,219 | 3,396,860 |
Total current assets | 19,151,224 | 27,624,716 |
Property, plant and equipment: | ||
Machinery and equipment | 19,833,903 | 23,822,808 |
Building | 3,321,016 | 3,374,334 |
Office furniture and equipment | 2,231,458 | 2,289,444 |
Intellectual property | 783,179 | 783,179 |
Land | 250,000 | 250,000 |
Leasehold improvements | 407,476 | 415,737 |
Fixtures and equipment at customer locations | 518,450 | 518,450 |
Projects under construction | 71,206 | 74,929 |
Property, Plant and Equipment, Gross | 27,416,688 | 31,528,881 |
Less : accumulated depreciation and amortization | (25,466,213) | (28,997,809) |
Total property, plant and equipment, net | 1,950,475 | 2,531,072 |
Other assets: | ||
Operating lease right-of-use | 361,720 | 1,046,438 |
Other assets | 87,552 | 118,857 |
Total other assets | 449,272 | 1,165,295 |
TOTAL ASSETS | 21,550,971 | 31,321,083 |
Current liabilities: | ||
Trade payables | 5,504,442 | 7,021,580 |
Line of credit | 5,363,340 | 14,518,107 |
Notes payable - current portion | 3,913,666 | 3,451,880 |
Advance from Investor | 1,500,000 | |
Notes payable affiliates - current portion | 8,045 | 12,684 |
Notes payable - officers, subordinated | 1,123,769 | |
Operating lease liabilities | 317,591 | 658,374 |
Accrued liabilities | 871,761 | 1,205,027 |
Current liabilities of discontinued operations | 184,577 | 656,753 |
Total current liabilities | 18,787,191 | 27,524,405 |
Long-term liabilities: | ||
Notes payable - affiliates | 14,340 | |
Notes payable, net of current portion | 1,024,441 | |
Operating lease liabilities | 44,129 | 388,064 |
Notes payable - officers, subordinated | 1,058,486 | |
Deferred gain (non current) | 184,840 | |
Total long-term liabilities | 44,129 | 2,670,171 |
TOTAL LIABILITIES | 18,831,320 | 30,194,576 |
Mezzanine equity: | ||
Series B Preferred stock -- no par value, 170,000 share authorized 170,000 shares issued and outstanding at December 31, 2020 and nil at December 31, 2019 (liquidation preference - $5.0 million as of December 31, 2020) | 1,532,164 | |
Yunhong CTI, Ltd stockholders' equity: | ||
Series A Preferred Stock -- no par value, 3,000,000 shares authorized, 500,000 shares issued and outstanding at December 31, 2020 and nil at December 31, 2019 respectively (liquidation preference - $5.0 million as of December 31, 2020) | 2,754,583 | |
Common stock - no par value, 50,000,000 and 15,000,000 shares authorized, 5,827,304 and 3,879,608 shares issued and 5,783,646 and 3,835,930 shares outstanding at December 31, 2020 and December 31, 2019 respectively | 14,537,828 | 13,898,494 |
Paid-in-capital | 5,041,511 | 3,587,287 |
Accumulated deficit | (14,382,327) | (9,992,841) |
Accumulated other comprehensive loss | (5,885,112) | (5,348,812) |
Less: Treasury stock, 43,658 shares | (160,784) | (160,784) |
Total Yunhong CTI, Ltd Stockholders' Equity | 1,905,699 | 1,983,344 |
Noncontrolling interest | (718,212) | (856,837) |
Total Shareholders' Equity | 1,187,487 | 1,126,507 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | $ 21,550,971 | $ 31,321,083 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Mezzanine equity, par value (in dollars per share) | $ 0 | $ 0 |
Mezzanine equity, shares authorized (in shares) | 170,000 | 170,000 |
Mezzanine equity, shares issued (in shares) | 170,000 | 0 |
Mezzanine equity, shares outstanding (in shares) | 170,000 | 0 |
Mezzanine equity, liquidation preference | $ 5,000,000 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 500,000 | 0 |
Preferred stock, shares outstanding (in shares) | 500,000 | 0 |
Preferred stock, liquidation preference | $ 5,000,000 | $ 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 5,827,304 | 3,879,608 |
Common stock, shares outstanding (in shares) | 5,783,646 | 3,835,930 |
Treasury stock, shares (in shares) | 43,658 | 43,658 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales | $ 26,472,568 | $ 32,271,647 |
Cost of Sales | 22,920,875 | 27,895,798 |
Gross profit | 3,551,693 | 4,375,849 |
Operating expenses: | ||
General and administrative | 4,512,388 | 5,357,861 |
Selling | 145,389 | 425,233 |
Advertising and marketing | 349,714 | 546,091 |
Impairment of long-lived assets | 1,686,929 | |
Gain on loss of control of VIEs | (218,534) | |
Gain on sale of assets | (45,700) | (93,862) |
Total operating expenses | 4,961,791 | 7,493,176 |
Loss from operations | (1,410,098) | (3,117,327) |
Other (expense) income: | ||
Interest expense | (1,269,347) | (2,028,014) |
Gain on forgiveness of Payroll Protection Program funding | 1,047,700 | |
Other expense | (1,180,301) | (679,932) |
Foreign currency loss | (98,707) | (11,996) |
Total other expense, net | (1,500,655) | (2,719,942) |
Loss from continuing operations before taxes | (2,910,753) | (5,837,269) |
Income tax benefit (expense) | 403,074 | (135,094) |
Loss from continuing operations | (2,507,679) | (5,972,363) |
Loss from discontinued operations | (1,743,182) | (2,102,084) |
Net Loss | (4,250,861) | (8,074,448) |
Less: Net (loss) income attributable to noncontrolling interest | 138,625 | (947,093) |
Net loss attributable to Yunhong CTI, Ltd | (4,389,486) | (7,127,354) |
Other Comprehensive Income (Loss) | ||
Foreign currency adjustment | (536,300) | 310,160 |
Comprehensive loss | (4,787,161) | (7,764,287) |
Deemed dividends on preferred stock and amortization of beneficial conversion feature | (4,380,292) | |
Net Loss Attributable to Yunhong CTI Ltd Common Shareholders | $ (8,769,778) | $ (7,127,354) |
Basic income (loss) per common share | ||
Continuing operations (in dollars per share) | $ (1.46) | $ (1.31) |
Discontinued operations (in dollars per share) | (0.40) | (0.55) |
Basic income (loss) per common share (in dollars per share) | (1.86) | (1.86) |
Diluted income (loss) per common share | ||
Continuing operations (in dollars per share) | (1.46) | (1.31) |
Discontinued operations (in dollars per share) | (0.40) | (0.55) |
Diluted income (loss) per common share (in dollars per share) | $ (1.86) | $ (1.86) |
Weighted average number of shares and equivalent shares of common stock outstanding: | ||
Basic (in shares) | 4,705,741 | 3,835,950 |
Diluted (in shares) | 4,705,741 | 3,835,950 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | VIE One [Member]Preferred Stock [Member] | VIE One [Member]Common Stock Outstanding [Member] | VIE One [Member]Additional Paid-in Capital [Member] | VIE One [Member]Retained Earnings [Member] | VIE One [Member]AOCI Attributable to Parent [Member] | VIE One [Member]Treasury Stock [Member] | VIE One [Member]Noncontrolling Interest [Member] | VIE One [Member] | VIE Two [Member]Preferred Stock [Member] | VIE Two [Member]Common Stock Outstanding [Member] | VIE Two [Member]Additional Paid-in Capital [Member] | VIE Two [Member]Retained Earnings [Member] | VIE Two [Member]AOCI Attributable to Parent [Member] | VIE Two [Member]Treasury Stock [Member] | VIE Two [Member]Noncontrolling Interest [Member] | VIE Two [Member] | VIE Three [Member]Preferred Stock [Member] | VIE Three [Member]Common Stock Outstanding [Member] | VIE Three [Member]Additional Paid-in Capital [Member] | VIE Three [Member]Retained Earnings [Member] | VIE Three [Member]AOCI Attributable to Parent [Member] | VIE Three [Member]Treasury Stock [Member] | VIE Three [Member]Noncontrolling Interest [Member] | VIE Three [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]Preferred Stock [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]Common Stock Outstanding [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]Additional Paid-in Capital [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]Retained Earnings [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]AOCI Attributable to Parent [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]Treasury Stock [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member]Noncontrolling Interest [Member] | Conversion of Accounts Payable to Convertible Preferred Stock [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]Preferred Stock [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]Common Stock Outstanding [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]Additional Paid-in Capital [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]Retained Earnings [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]AOCI Attributable to Parent [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]Treasury Stock [Member] | Conversion from Series A Preferred Stock to Common Stock [Member]Noncontrolling Interest [Member] | Conversion from Series A Preferred Stock to Common Stock [Member] | Series A Preferred Stock [Member]Preferred Stock [Member] | Series A Preferred Stock [Member]Common Stock Outstanding [Member] | Series A Preferred Stock [Member]Additional Paid-in Capital [Member] | Series A Preferred Stock [Member]Retained Earnings [Member] | Series A Preferred Stock [Member]AOCI Attributable to Parent [Member] | Series A Preferred Stock [Member]Treasury Stock [Member] | Series A Preferred Stock [Member]Noncontrolling Interest [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member]Common Stock Outstanding [Member] | Series B Preferred Stock [Member]Additional Paid-in Capital [Member] | Series B Preferred Stock [Member]Retained Earnings [Member] | Series B Preferred Stock [Member]AOCI Attributable to Parent [Member] | Series B Preferred Stock [Member]Treasury Stock [Member] | Series B Preferred Stock [Member]Noncontrolling Interest [Member] | Series B Preferred Stock [Member] | Preferred Stock [Member] | Common Stock Outstanding [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, 2018 | 3,578,885 | (43,658) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2018 | $ 13,898,494 | $ 2,506,437 | $ (2,865,486) | $ (6,050,347) | $ (160,784) | $ (1,072,585) | $ 6,255,729 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Convertible Securities (in shares) | 180,723 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Convertible Securities | 600,000 | 600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of VIE | $ 75,806 | $ 75,806 | $ 1,087,035 | $ 1,087,035 | $ 391,375 | $ 391,375 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued (in shares) | 120,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued | 303,000 | 303,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Expense | 177,850 | 177,850 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss | (7,127,355) | (7,127,354) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | (947,093) | (947,093) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (8,074,448) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | 310,160 | 310,160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 3,879,608 | (43,658) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2019 | $ 13,898,494 | 3,587,287 | (9,992,841) | (5,348,812) | $ (160,784) | (856,837) | 1,126,507 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Convertible Securities (in shares) | 48,200 | (90,860) | 941,388 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Convertible Securities | $ 478,017 | $ 478,017 | $ (946,938) | $ 946,938 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued (in shares) | 42,660 | 542,660 | 400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued | $ 426,600 | $ 5,093,267 | $ 333,334 | 5,426,601 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss | (4,389,486) | (4,389,486) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 138,625 | 138,625 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (4,250,861) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | (536,300) | (536,300) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for placement agent fees (in shares) | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for placement agent fees | $ (306,000) | $ 306,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants issued to placement agent and other issuance costs | $ (919,105) | 919,105 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for warrants exercised - cashless (in shares) | 391,308 | 391,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for warrants exercised - cashless | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued - Stock based compensation (in shares) | 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued - Stock based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Placement agent fees and issuance costs | (1,024,313) | (1,024,313) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial Conversion feature (BCF) on Preferred Stock | $ (2,468,473) | $ 2,468,473 | $ 1,500,000 | $ 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed Dividend on BCF of Preferred Stock | 2,468,473 | (2,468,473) | (1,500,000) | (1,500,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Deemed Dividend | $ 379,655 | $ (379,655) | $ (13,600) | $ (13,600) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock | (18,564) | (18,564) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 500,000 | 5,827,304 | (43,658) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2020 | $ 2,754,583 | $ 14,537,828 | $ 5,041,511 | $ (14,382,327) | $ (5,885,112) | $ (160,784) | $ (718,212) | $ 1,187,487 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Cash flows from operating activities: | ||||
Net loss | $ (4,250,861) | $ (8,074,448) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||
Depreciation and amortization | 472,337 | 1,149,896 | ||
Amortization of deferred gain on sale/leaseback | 45,700 | 78,477 | ||
Amortization of ROU Asset | 649,615 | 1,129,878 | ||
Gain on forgiveness of PPP Funding | (1,047,700) | |||
Provision for losses on accounts receivable | (11,110) | 304,180 | ||
Provision for losses on inventories | 1,247,581 | |||
Impairment on assets held for sale | 604,483 | |||
Gain on deconsolidation of Clever | (218,534) | |||
Impairment of Note Receivable | 1,276,813 | |||
Impairment of prepaid, current & non current assets | 168,931 | |||
Impairment of long-lived assets | 1,686,929 | |||
Stock based compensation | 177,850 | |||
Income Tax Receivable | (403,074) | |||
Deferred income taxes | 135,094 | |||
Loss on disposition of asset | 17,480 | |||
Change in assets and liabilities: | ||||
Accounts receivable | 4,157,800 | 475,061 | ||
Inventories | 2,730,049 | 4,507,221 | ||
Prepaid expenses and other assets | (268,207) | 28,232 | ||
Trade payables | (1,302,201) | 1,177,003 | ||
Change in ROU Liability | (649,615) | (1,129,878) | ||
Accrued liabilities | 352,883 | 201,417 | ||
Net cash provided by operating activities | 1,752,429 | 3,666,853 | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (202,203) | (80,472) | ||
Net cash used in investing activities | (202,203) | (80,472) | ||
Cash flows from financing activities: | ||||
Change in checks written in excess of bank balance | (636,142) | |||
Repayment of debt and revolving line of credit | (10,995,083) | (3,454,494) | ||
Proceeds from advance from investor | 1,500,000 | |||
Proceeds from issuance of common stock | 333,334 | |||
Cash paid for stock issuance costs | (1,024,313) | |||
Cash paid for deferred financing fees | (83,424) | (146,102) | ||
Proceeds from PPP | 1,047,700 | |||
Proceeds from issuance of long-term debt | 1,243,684 | 650,000 | ||
Net cash used in financing activities | (1,384,835) | (3,586,738) | ||
Effect of exchange rate changes on cash | (389,842) | 421,611 | ||
Net decrease in cash and cash equivalents | (224,451) | 421,254 | ||
Cash and cash equivalents at beginning of year | 849,404 | [1] | 428,150 | |
Cash and cash equivalents at end of year | [1] | 624,953 | 849,404 | |
Supplemental disclosure of cash flow information: | ||||
Cash payments for interest | 1,269,000 | 2,097,682 | ||
Common stock issued | 306,000 | |||
Accrued dividend and accretion on preferred stock | 412,000 | |||
Issuance of Placement agent warrants in connection with Series A Preferred offering | 919,000 | |||
Amortization of beneficial conversion feature and deemed dividend on Series A and Series B Preferred stock | 3,968,000 | |||
Conversion from Accounts Payable To Common Stock [Member] | ||||
Supplemental disclosure of cash flow information: | ||||
Common stock issued | 303,000 | |||
Conversion of Accounts Payable to Convertible Preferred Stock [Member] | ||||
Supplemental disclosure of cash flow information: | ||||
Conversion of accounts payable debt to Series A Preferred | 478,000 | |||
Conversion from Notes Payable To Common Stock [Member] | ||||
Supplemental disclosure of cash flow information: | ||||
Common stock issued | 600,000 | |||
Series A Preferred Stock [Member] | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of preferred stock | 5,093,267 | |||
Series B Preferred Stock [Member] | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of preferred stock | $ 1,500,000 | |||
[1] | The cash flows related to discontinued operations of $195,496 and $4,307 as of December 31, 2020 and 2019, respectively, have not been segregated, and are included in the Consolidated Statements of Cash Flows. The cash and equivalents amounts presented above differ from cash and equivalents in the Consolidated Balance Sheets due to cash included in "Current assets of discontinued operations." |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows related to discontinued operations | $ 195,496 | $ 4,307 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Nature of Operations Yunhong CTI Ltd. (formerly CTI Industries Corporation), its former United Kingdom subsidiary (CTI Balloons Limited), its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note 23 2019, |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Principles of Consolidation The consolidated financial statements include the accounts of Yunhong CTI Ltd., its wholly owned subsidiaries CTI Balloons Limited and CTI Supply, Inc. and its majority owned subsidiaries, Flexo Universal and CTI Europe. All significant intercompany accounts and transactions have been eliminated upon consolidation. As discussed in Note 23 2019, Variable Interest Entities The determination of whether or not 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 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. Inventory is 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 committed to projects in process of nil $12,000 December 31, 2020 2019, Stock-Based Compensation The Company has stock-based incentive plans which may 18 Fair Value Measurements Current professional accounting guidance applies to all assets and liabilities that are being measured and reported on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The requirements prescribe a fair value hierarchy that has three 1 2 1 3 no The carrying value amounts of the Company's cash and cash equivalents, accounts and notes receivable, accounts payable and other current liabilities are reasonable estimates of their fair values due to the short-term nature of these instruments. The fair value of business segments (as needed for purposes of determining indications of impairment to the carrying value of goodwill) is determined using an average of valuations based on market multiples and discounted cash flows, and consideration of our market capitalization. See Note 5 Goodwill The Company applies the provisions of U.S. GAAP, under which goodwill is tested at least annually for impairment. It is the Company's policy to perform impairment testing annually as of December 31, $1.4 December 31, 2019. December 31, 2020 2019, no 15 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 Deferred Financing Costs Deferred financing costs are amortized 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 11 Revenue Recognition On January 1, 2018, 606, Revenue from Contracts with Customers 606 not Net sales include revenues from sales of products and shipping and handling charges, net of estimates for product returns. Revenue is measured at the amount of consideration the Company expects to receive in exchange for the transferred products. Revenue is recognized at the point in time when we transfer the promised products to the customer and the customer obtains control over the products. The Company recognizes revenue for shipping and handling charges at the time the goods are shipped to the customer, and the costs of outbound freight are included in cost of sales, as we have elected the practical expedient included in ASC 606. The Company provides for product returns based on historical return rates. While we incur costs for sales commissions to our sales employees and outside agents, we recognize commission costs concurrent with the related revenue, as the amortization period is less than one 606. not not A disaggregation of product net sales is presented in Note 20. 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, 2020 2019, $317,000 $287,000, Advertising Costs The Company expenses advertising costs as incurred. Advertising expenses amounted to $11,000 $80,000 December 31, 2020 2019, |
Note 3 - Liquidity and Going Co
Note 3 - Liquidity and Going Concern | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Liquidity and Going Concern [Text Block] | Note 3 Liquidity and Going Concern The Company's financial statements are prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a cumulative net loss from inception to December 31, 2020 $14 December 31, 2020 twelve The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses. Management's plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The COVID- 19 may one not The Company's primary sources of liquidity have traditionally been comprised of cash and cash equivalents as well as availability under the Credit Agreement with PNC (see Note 9 9, $7.5 November 15, 2018. not As of March 2019, October 2019 January 2020, 2020 not During January 2020, $5 $1 first $2.5 January 2020 February 2020, $0.7 140,000 April 2020, $1.3 second 260,000 $0.5 June 2020. $2 $1 Since January 2020, Management's plans include: ( 1 Continuing to explore additional equity and/or debt financing transactions. ( 2 Continuing to focus our Company on the most profitable elements. ( 3 Exploring alternative funding sources on an as needed basis. Management Assessment Considering both quantitative and qualitative information, we continue to believe that our plans to obtain additional financing will provide us with an ability to finance our operations through 2021 |
Note 4 - New Accounting Pronoun
Note 4 - New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 4 . New Accounting Pronouncements Recent Accounting Pronouncements Not Credit Loss In June 2016, December 15, 2020, first 2021. not Income Taxes In December 2019, 740, December 15, 2020, first 2021. not In August 2020, 2020 06, 470 20, not 815, not no 835, 260 no 815 40, 815 40 December 15, 2021, December 15, 2020. |
Note 5 - Fair Value Disclosures
Note 5 - Fair Value Disclosures; Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | 5. Fair Value Disclosures; Derivative Instruments 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 ● Level 2 ● Level 3 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 interest rate swap entered into December 14, 2017 three December 14, 2020) $3 2.25% 1.47% 9 2019, no December 31, 2019. |
Note 6 - Other Comprehensive Lo
Note 6 - Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 6. Other Comprehensive Loss For the year ended December 31, 2020 $536,000 December 31, 2019 $310,000 |
Note 7 - Major Customer
Note 7 - Major Customer | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 7 . Major Customer For the year ended December 31, 2020, two 47% 14% December 31, 2019, two 35% 12% December 31, 2020 December 31, 2019, $804,000 $1,168,000, |
Note 8 - Inventories
Note 8 - Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 8. Inventories 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 Inventories of continuing operations are comprised of the following: December 31, 2020 December 31, 2019 Raw materials $ 1,177,000 $ 1,545,000 Work in Process 2,799,000 3,110,000 Finished Goods 7,224,000 9,134,000 In Transit 88,000 100,000 Allowance for excess quantities (318,000 ) (352,000 ) Total inventories $ 10,970,000 $ 13,537,000 |
Note 9 - Notes Payable and Capi
Note 9 - Notes Payable and Capital Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 9. Notes Payable and Capital Leases Long term debt consists of: December 31, 2020 2019 Subordinated notes (officer) due on demand, interest at 4% $ 1,123,769 $ 1,058,486 Notes payable (Mexico) 1,756,771 - Term Loan 2,156,895 - Total long-term debt 5,037,435 1,058,486 Less current portion (5,0137,435 ) - Total Long-term debt, net of current portion $ - $ 1,058,486 During December 2017, December 31, 2020, $2.3 $5.3 December 2022. $100,000, 8.25%, December 2022. Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at Yunhong CTI, LTD Due to a failure to meet our covenants during 2018 March 2019, March 31, 2019 not July 31, 2019 June 30, 2019. $1.2 zero six $250,000. 3 2019 2020. Certain terms of the PNC Agreements include: ● Restrictive Covenants 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 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 ratio allowed by the PNC Agreements are: Fiscal Quarter Ratio March 31, 2019 not applicable June 30, 2019 3.00 to 1.00 September 30, 2019 2.75 to 1.00 January, 2020 and thereafter not applicable 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 Fiscal Quarter Ratio March 31, 2020 0.75 to 1.00 June 30, 2020 0.85 to 1.00 September 30, 2020 0.95 to 1.00 December 31, 2020 1.05 to 1.00 April 15, 2021 and thereafter 1.15 to 1.00 Failure to comply with these covenants has caused us to pay a higher rate of interest on the Term Loan and the Revolver (by 4% may The Company's Flexo subsidiary has entered into financing agreements with local financial institutions. As of December 31, 2020, 35 $1.7 three $846,000 2021, 4.5%. As of December 31, 2020, $143,105 2021 $4,284,391, 2022 344,734, 2023 $551,414. On April 30, 2020, $1,047,700 March 27, 2020, one April 30, 2022 six may no may may $1,048,000 2020 no December 31, 2020. |
Note 10 - Subordinated Debt - R
Note 10 - Subordinated Debt - Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Subordinated Borrowings Disclosure [Text Block] | 10. Subordinated Debt Related Parties As of December 2017, $1.1 $0.4 December 2017 January 2019, $0.6 181,000 $3.32 December 31, 2020 2019, $1.1 $1.1 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income Taxes Tax Reform act of 2017 On December 22, 2017, December 22, 2017, No. 118 118 118 740, 118 118 118 not one 35% 21%; ASU 2019 12 ASU 2019 12 2019 12 740 740. December 15, 2020, not 2019 12 CARES Act On March 27, 2020, 19 2018, 2019, 2020 five not Due to an ownership change in the first 2020, The provision (benefit) for income taxes consists of the following: Year Ended December 31, 2020 2019 Current: Federal $ (410,069 ) $ (845 ) State - - Foreign 1,824 11,264 Total Current (408,245 ) 10,420 Deferred: Federal - $ 71,007 State - 32,659 Foreign - 31,517 Total Deferred - 135,183 Provision (Benefit) for income taxes (408,245 ) 145,602 Income tax provision (benefit) related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21% Year Ended December 31, 2020 2019 U.S. Federal provision (benefit) At Statutory Rate $ (598,492 ) $ (1,503,581 ) State Taxes (285,914 ) (412,909 ) Change in Valuation Allowance 936,808 2,473,248 NOL Carryback Claim (CARES Act) (201,654 ) Nondeductible Expenses (367,848 ) 216,790 Foreign Taxes (69,969 ) (48,304 ) Deconsolidation & Impairment 134,115 (373,448 ) Other 44,710 (206,193 ) Rounding (1 ) (1 ) Total $ (408,245 ) $ 145,602 Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets for federal and state income taxes are as follows): Year Ended December 31, 2020 2019 Deferred Tax Assets: Federal & State NOL Carryforward 1,669,717 531,864 Foreign Tax Credit & Other Credits 581,479 463,451 Reserves and Accruals 216,591 320,961 Unicap 263A Adjustment 63,006 72,294 Other DTA (36,776 ) 65,215 Foreign NOL Carryforward 1,049,887 802,907 Deferred Interest Expense 1,383,772 1,030,634 Deconsolidation & Impairment 1,388,551 1,028,249 Total Gross DTA 6,316,227 4,319,575 Less: Val. Allowance (6,397,605 ) (4,315,957 ) Total Deferred Tax Assets (81,378 ) 3,618 Deferred Tax Liabilities: Fixed Assets & Intangibles 81,378 (3,618 ) Deferred State Income Tax - - Total Gross DTL 81,378 (3,618 ) Net Deferred Tax Assets - - Realization of our deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Due to the lack of earnings history, a valuation allowance has been recorded to reduce the deferred tax assets to its net realizable value. The valuation allowance increased by $2,081,649 $2,473,248 December 31, 2020 December 31, 2019, Net Operating Loss and Tax Credit Carryforwards As of December 31, 2020, $4.2 2024. 8.2 2021. $0.8 2020. $3.5 may 1986. 600 2021. No 2020. |
Note 12 - Employee Benefit Plan
Note 12 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 12. Employee Benefit Plan The Company has a defined contribution plan for substantially all employees. Profit sharing contributions may 4% No December 31, 2020 2019, |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 13. Related Party Transactions John H. Schwan, Chairman of the Board until June 2020, one $13,000 $16,000 December 31, 2020 2019, As of January 1, 2019, $1.6 6%, January 2019, $600,000 181,000 $3.32 $600,000 $997,019 6%. $1,058,486 $1,123,769 December 31, 2019 2020, No 2019 2020, $65,000 $61,000, 2020 2019. Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of December 31, 2020 2019 $nil $14,000, On July 1, 2019, $1.3 $1,277,000 2020. |
Note 14 - Variable Interest Ent
Note 14 - Variable Interest Entities ("VIE") and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 14. Variable Interest Entities ( VIE ) and Transactions During 2010, two 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, The Company has not no May 31, 2016, 8.7M $470,000 Mr. Schwan and Mr. Merrick were partial owners of Clever Container (renamed Clever Organizing Solutions; “Clever”), 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. The Company acquired a 28.5% third 2016. two October 1, 2013. Through June 30, 2019, third no no July 1, 2019, not June 30, 2019. $219,000. 810 10 no |
Note 15 - Goodwill
Note 15 - Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 15. 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. In the first 2019, first $220,000. first 2019, first $1,033,000. December 31, 2020 2019 zero |
Note 16 - Commitments
Note 16 - Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 16. Commitments Operating Leases We adopted ASC Topic 842 January 1, 2019 not Upon adoption of ASC 842 $2.8 $1.1million $1.7 not 842 no We determine if an arrangement is a lease at inception. Most of our operating leases do not 12 not The table below describes our lease position as of December 31, 2020 2019: Assets As of December 31, 2020 As of December 31, 2019 Operating lease right-of-use assets $ 1,630,000 $ 2,176,000 Accumulated amortization (1,268,000 ) (1,130,000 ) Net lease assets $ 362,000 $ 1,046,000 Liabilities Current Operating $ 318,000 $ 658,000 Noncurrent Operating 44,000 388,000 Total lease liabilities $ 362,000 $ 1,046,000 Weighted average remaining term (years) – operating leases 2 2 Weighted average discount rate – operating leases 11.25 % 11.25 % During the year ended December 31, 2020 2019, Year ended December 31 2020 2019 Operating right-of-use lease asset amortization $ 650,000 $ 1,130,000 Financing lease asset amortization - - Related interest expense - - Total expense during twelve months $ 650,000 $ 1,130,000 The following table summarizes the maturities of our lease liabilities for all operating leases as of December 31, 2020 (in thousands) 12/31/2020 2021 $ 415 2022 and thereafter 57 Total lease payments 472 less: Imputed interest $ (110 ) Present value of lease liabilities $ 362 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. As the last such agreement expired on December 31, 2019, no |
Note 17 - Convertible Redeemabl
Note 17 - Convertible Redeemable Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 17. Convertible Redeemable Preferred Stock In November 2020, 170,000 $1,500,000. The Series B Preferred have an initial stated value of $10.00 $1.00. 8 The Series B Preferred, in whole or part, may November 30, 2021 Since the Series B Preferred may not $1.5 $1.5 |
Note 18 - Stockholders' Equity
Note 18 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 18. Stockholders Equity Series A Preferred Stock As discussed in Note 3, 500,000 400,000 $5,000,000. three Additionally, in 2020 42,660 $426,600. April 1, 2020, $478,000 48,200 Each share of Series A Preferred is convertible into ten 8% $10 may 2020 $379,655 The issuances of the Company's Series A Preferred generated a beneficial conversion feature. The fair value of the common stock into which the Series A Preferred was convertible exceeded the allocated purchase price fair value of the Series A Preferred Stock at the closing dates by approximately $2.5 $2.5 In 2020, 90,860 941,388 Common Stock On November 20, 2020, 15,000,000 50,000,000. During January 2019, 21, 20,000 December 31, 2018. During 2019, $600,000 180,723 100,000 $300,000 During 2020, 400,000 200,000 Restricted Stock In 2020, 15,000 Stock Options The Compensation Committee (“Committee”) administers the Company's stock-based plans. The exercise price of the stock options shall be fixed by the Committee at whatever price the Committee may 4 3 may In 2009, 2009 “2009 2009 510,000 On June 8, 2018, 2018 “2018 2018 300,000 no 8 12 not The Company, at the discretion of the board, may not The Company recognized share based compensation expense of approximately $0 $178,000 2020 2019, December 31, 2020, no Warrants In connection with the Series A Offering, the Company issued 792,660 792,660 $1 During 2020, 597,500 391,308 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 warrants granted in 2020 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 with a similar maturity in effect at the time of the grant, which was a range from .42% 1.65%. Expected life: The expected life of the warrants represents the period of time warrants were expected to be outstanding. The Company used an expected life of 5 Dividend yield: The estimate for dividend yield is 0%, not 2020 2019 not Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements. A summary of the Company's stock options, warrants and related information, is as follows: Options Weighted Average Exercise Price Warrants Weighted Average Exercise Price Balance at January 1, 2019 471,144 $ 3.95 - - Granted - - - - Cancelled/Expired - - - - Exercised/Issued - - - - Balance at December 31, 2019 471,144 $ 3.95 - - Granted - - 792,660 1.00 Cancelled/Expired (471,144 ) 3.95 - Exercised/Issued (597,500 ) 1.00 Balance at December 31, 2020 - - 195,160 $ 1.00 Exercisable at December 31, 2020 195,160 $ 1.00 The stock options above have no December 31, 2020 December 31, 2020. $140,615 December 31, 2020. As of December 31, 2020, Warrants 195,160 Series A Preferred Stock 5,482,000 Series B Preferred Stock 1,700,000 7,377,160 |
Note 19 - Loss Per Share
Note 19 - Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 19. Loss Per Share Basic earnings per share is computed by dividing net loss attributable to Yunhong CTI Ltd. Common shareholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net loss attributable to Yunhong CTI Ltd. Common shareholders 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 2020 2019 Loss from continuing operations $ (2,507,679 ) $ (5,972,363 ) (Gain)/loss attributable to noncontrolling interest (3,423 ) 292,518 Deemed dividends on preferred stock and amortization of beneficial conversion feature (4,380,292 ) Loss from continuing operations attributable to Yunhong CTI Ltd common shareholders $ (6,891,394 ) $ (5,679,845 ) Loss from discontinued operations $ (1,743,182 ) $ (2,102,084 ) (Gain)/loss attributable to noncontrolling interest (135,202 ) 1,239,611 Loss from discontinued operations attributable to Yunhong CTI Ltd common shareholders $ (1,878,384 ) $ (862,473 ) Basic and Diluted loss per common share: Continuing operations $ (1.46 ) $ (1.48 ) Discontinued operations (0.40 ) (0.22 ) $ (1.77 ) $ (1.70 ) Basic and Diluted weighted average number of shares and equivalent shares of common stock outstanding 4,705,741 3,835,950 |
Note 20 - Product and Geographi
Note 20 - Product and Geographic Segment Data | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 20. The Company's operations consist of a single December 31, 2020 2019, Net Sales to Outside Customers For the Year Ended December 31, 2020 2019 United States $ 21,192,000 $ 23,754,000 Mexico 5,280,000 8,518,000 $ 26,473,000 $ 32,272,000 Total Assets at December 31, December 31, 2020 2019 United States $ 12,459,000 $ 17,450,000 Mexico 8,798,000 10,897,000 Assets Held for Sale 294,000 2,974,000 $ 21,551,000 $ 31,321,000 The following table provides a breakdown of product net sales from operations in each of the years indicated (in thousands): Twelve Months Ended December 31, 2020 December 31, 2019 $ % of $ % of Product Category (000) Omitted Net Sales (000) Omitted Net Sales Foil Balloons 17,061 64 % 17,630 55 % Latex Balloons 4,718 18 % 7,409 23 % Film Products 804 3 % 1,883 6 % Other 3,890 15 % 5,350 17 % Total 26,473 100 % 32,272 100 % |
Note 21 - Contingencies
Note 21 - Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 21. 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 |
Note 22 - Legal Proceedings
Note 22 - Legal Proceedings | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 22. Legal Proceedings The Company may not In July, 2017, January 2019. 20,000 $5,000 $7,667 March 1, 2019 August 1, 2021. $0.3 December 31, 2018 FedEx Trade Networks Transport and Brokerage Inc. v. CTI Industries Corp. No. 20 46, January 27, 2020 19 th $163,964.75 October 15, 2020, $100,400.00 $10,000 ten 10 $10,400. first October 30, 2020, $0.1 December 31, 2020 Airgas USA, LLC v. CTI Industries Corp. No. 01 20 0014 7852 September 8, 2020. $212,000, February 10, 2021, $125,000 10 $0.1 December 31, 2020 On October 19, 2020, $65,846.99 no not April 5, 2020 $98,244.55 $0.1 December 31, 2020 On October 19, 2020, $98,960.88 no not $0.1 December 31, 2020 |
Note 23 - Discontinued Operatio
Note 23 - Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 23. Discontinued Operations In July 2019 not July 19, 2019, fourth 2019 first 2021. In connection with management's intentions to simplify these operations and organizational structure, we identified write-offs of $1.75 December 31, 2019, December 31, 2019 $1.0M $67,000 $8,000 $7,000 December 31, 2020 2019, CTI Balloons recorded losses from discontinued operations, net of taxes, of ( $1,006,000 2019, $321,000. CTI Europe recorded losses from discontinued operations, net of taxes of ( $1,005,000 December 31, 2019 $683,000 In October 2019, not December 31, 2019. 90 March 31, 2020. $2,024,851 December 31, 2020. $1,111,452 December 31, 2019. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the International operations that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Income for the year ended December 31, 2020 December 31, 2019 Income Statement Net Sales $ 2,180,412 $ 13,218,279 Cost of Sales 2,795,474 12,199,387 Gross Margin (615,062 ) 1,018,892 SG&A 1,165,462 2,448,641 Operating Income (1,780,524 ) (1,429,749 ) Other Expense 45,203 67,852 Loss from discontinued operations (1,825,727 ) (1,497,601 ) Loss from classification to held for sale 82,545 604,483 Net Loss prior to non-controlling interest (1,743,182 ) (2,102,084 ) Non-controlling Interest share of income/loss 135,202 (1,239,609 ) Net Loss $ (1,878,384 ) $ (862,475 ) The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented: December 31, 2020 December 31, 2019 Balance Sheet Assets Current Assets Cash on hand and Banks $ 195,496 $ 4,307 Accounts Receivable 117,687 2,757,947 Inventory - 497,175 Prepaid & Other 62,275 135,912 TOTAL Current Assets 375,457 3,395,341 NET Property, Plant, and Equipment 7,471 53,919 Other Assets Operating lease right-of-use 129,411 220,541 Other 32,543 47,958 TOTAL Other Assets 161,954 268,499 TOTAL Non-Current Assets 169,426 322,418 Valuation Allowance on Assets Held for Sale (250,664 ) (320,899 ) TOTAL Assets $ 294,219 $ 3,396,860 Liabilities Current Liabilities Trade Accounts Payable 21,256 384,333 Operating Lease Liabilities - Current 93,514 203,291 Other/Accrued Liabilities (2,796 ) 19,562 TOTAL Current Liabilities 111,974 607,187 Non-Current Liabilities Operating Lease Liabilities - Non Current 35,897 17,250 Other Non-Current 36,705 32,317 TOTAL Non-Current Liabilities 72,603 49,567 TOTAL Liabilities $ 184,577 $ 656,753 |
Note 24 - Subsequent Events
Note 24 - Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 24. Subsequent Events In October 2020, $1,500,000 January 2021, to170,000 no ten $0.88 $1,500,000. December 31, 2020, During the first 2021 103,104 Benchmark Investments, Inc. v. Yunhong CTI Ltd filed a case in the United States District Court for the Southern District of New York on March 16, 2021 March 31, 2021. April 21, 2021 $500,000. During March 2021 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Yunhong CTI Ltd., its wholly owned subsidiaries CTI Balloons Limited and CTI Supply, Inc. and its majority owned subsidiaries, Flexo Universal and CTI Europe. All significant intercompany accounts and transactions have been eliminated upon consolidation. As discussed in Note 23 2019, |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities The determination of whether or not |
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 |
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 |
Accounts Receivable [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. Inventory is 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 committed to projects in process of nil $12,000 December 31, 2020 2019, |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation The Company has stock-based incentive plans which may 18 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Current professional accounting guidance applies to all assets and liabilities that are being measured and reported on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The requirements prescribe a fair value hierarchy that has three 1 2 1 3 no The carrying value amounts of the Company's cash and cash equivalents, accounts and notes receivable, accounts payable and other current liabilities are reasonable estimates of their fair values due to the short-term nature of these instruments. The fair value of business segments (as needed for purposes of determining indications of impairment to the carrying value of goodwill) is determined using an average of valuations based on market multiples and discounted cash flows, and consideration of our market capitalization. See Note 5 |
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. It is the Company's policy to perform impairment testing annually as of December 31, $1.4 December 31, 2019. December 31, 2020 2019, no 15 |
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 |
Deferred Financing Costs, Policy [Policy Text Block] | Deferred Financing Costs Deferred financing costs are amortized 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 11 |
Revenue [Policy Text Block] | Revenue Recognition On January 1, 2018, 606, Revenue from Contracts with Customers 606 not Net sales include revenues from sales of products and shipping and handling charges, net of estimates for product returns. Revenue is measured at the amount of consideration the Company expects to receive in exchange for the transferred products. Revenue is recognized at the point in time when we transfer the promised products to the customer and the customer obtains control over the products. The Company recognizes revenue for shipping and handling charges at the time the goods are shipped to the customer, and the costs of outbound freight are included in cost of sales, as we have elected the practical expedient included in ASC 606. The Company provides for product returns based on historical return rates. While we incur costs for sales commissions to our sales employees and outside agents, we recognize commission costs concurrent with the related revenue, as the amortization period is less than one 606. not not A disaggregation of product net sales is presented in Note 20. |
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, 2020 2019, $317,000 $287,000, |
Advertising Cost [Policy Text Block] | Advertising Costs The Company expenses advertising costs as incurred. Advertising expenses amounted to $11,000 $80,000 December 31, 2020 2019, |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 8 - Inventories (Tables)
Note 8 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2020 December 31, 2019 Raw materials $ 1,177,000 $ 1,545,000 Work in Process 2,799,000 3,110,000 Finished Goods 7,224,000 9,134,000 In Transit 88,000 100,000 Allowance for excess quantities (318,000 ) (352,000 ) Total inventories $ 10,970,000 $ 13,537,000 |
Note 9 - Notes Payable and Ca_2
Note 9 - Notes Payable and Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2020 2019 Subordinated notes (officer) due on demand, interest at 4% $ 1,123,769 $ 1,058,486 Notes payable (Mexico) 1,756,771 - Term Loan 2,156,895 - Total long-term debt 5,037,435 1,058,486 Less current portion (5,0137,435 ) - Total Long-term debt, net of current portion $ - $ 1,058,486 |
Schedule of Leverage Ratios [Table Text Block] | Fiscal Quarter Ratio March 31, 2019 not applicable June 30, 2019 3.00 to 1.00 September 30, 2019 2.75 to 1.00 January, 2020 and thereafter not applicable |
Schedule of Fixed Charge Coverage Ratio [Table Text Block] | Fiscal Quarter Ratio March 31, 2020 0.75 to 1.00 June 30, 2020 0.85 to 1.00 September 30, 2020 0.95 to 1.00 December 31, 2020 1.05 to 1.00 April 15, 2021 and thereafter 1.15 to 1.00 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2020 2019 Current: Federal $ (410,069 ) $ (845 ) State - - Foreign 1,824 11,264 Total Current (408,245 ) 10,420 Deferred: Federal - $ 71,007 State - 32,659 Foreign - 31,517 Total Deferred - 135,183 Provision (Benefit) for income taxes (408,245 ) 145,602 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2020 2019 U.S. Federal provision (benefit) At Statutory Rate $ (598,492 ) $ (1,503,581 ) State Taxes (285,914 ) (412,909 ) Change in Valuation Allowance 936,808 2,473,248 NOL Carryback Claim (CARES Act) (201,654 ) Nondeductible Expenses (367,848 ) 216,790 Foreign Taxes (69,969 ) (48,304 ) Deconsolidation & Impairment 134,115 (373,448 ) Other 44,710 (206,193 ) Rounding (1 ) (1 ) Total $ (408,245 ) $ 145,602 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Year Ended December 31, 2020 2019 Deferred Tax Assets: Federal & State NOL Carryforward 1,669,717 531,864 Foreign Tax Credit & Other Credits 581,479 463,451 Reserves and Accruals 216,591 320,961 Unicap 263A Adjustment 63,006 72,294 Other DTA (36,776 ) 65,215 Foreign NOL Carryforward 1,049,887 802,907 Deferred Interest Expense 1,383,772 1,030,634 Deconsolidation & Impairment 1,388,551 1,028,249 Total Gross DTA 6,316,227 4,319,575 Less: Val. Allowance (6,397,605 ) (4,315,957 ) Total Deferred Tax Assets (81,378 ) 3,618 Deferred Tax Liabilities: Fixed Assets & Intangibles 81,378 (3,618 ) Deferred State Income Tax - - Total Gross DTL 81,378 (3,618 ) Net Deferred Tax Assets - - |
Note 16 - Commitments (Tables)
Note 16 - Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Assets and Liabilities [Table Text Block] | Assets As of December 31, 2020 As of December 31, 2019 Operating lease right-of-use assets $ 1,630,000 $ 2,176,000 Accumulated amortization (1,268,000 ) (1,130,000 ) Net lease assets $ 362,000 $ 1,046,000 Liabilities Current Operating $ 318,000 $ 658,000 Noncurrent Operating 44,000 388,000 Total lease liabilities $ 362,000 $ 1,046,000 Weighted average remaining term (years) – operating leases 2 2 Weighted average discount rate – operating leases 11.25 % 11.25 % |
Lease, Cost [Table Text Block] | Year ended December 31 2020 2019 Operating right-of-use lease asset amortization $ 650,000 $ 1,130,000 Financing lease asset amortization - - Related interest expense - - Total expense during twelve months $ 650,000 $ 1,130,000 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (in thousands) 12/31/2020 2021 $ 415 2022 and thereafter 57 Total lease payments 472 less: Imputed interest $ (110 ) Present value of lease liabilities $ 362 |
Note 18 - Stockholders' Equity
Note 18 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Activity [Table Text Block] | Options Weighted Average Exercise Price Warrants Weighted Average Exercise Price Balance at January 1, 2019 471,144 $ 3.95 - - Granted - - - - Cancelled/Expired - - - - Exercised/Issued - - - - Balance at December 31, 2019 471,144 $ 3.95 - - Granted - - 792,660 1.00 Cancelled/Expired (471,144 ) 3.95 - Exercised/Issued (597,500 ) 1.00 Balance at December 31, 2020 - - 195,160 $ 1.00 Exercisable at December 31, 2020 195,160 $ 1.00 |
Shares Reserved for Future Issuance [Table Text Block] | Warrants 195,160 Series A Preferred Stock 5,482,000 Series B Preferred Stock 1,700,000 7,377,160 |
Note 19 - Loss Per Share (Table
Note 19 - Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Consolidated earnings per share 2020 2019 Loss from continuing operations $ (2,507,679 ) $ (5,972,363 ) (Gain)/loss attributable to noncontrolling interest (3,423 ) 292,518 Deemed dividends on preferred stock and amortization of beneficial conversion feature (4,380,292 ) Loss from continuing operations attributable to Yunhong CTI Ltd common shareholders $ (6,891,394 ) $ (5,679,845 ) Loss from discontinued operations $ (1,743,182 ) $ (2,102,084 ) (Gain)/loss attributable to noncontrolling interest (135,202 ) 1,239,611 Loss from discontinued operations attributable to Yunhong CTI Ltd common shareholders $ (1,878,384 ) $ (862,473 ) Basic and Diluted loss per common share: Continuing operations $ (1.46 ) $ (1.48 ) Discontinued operations (0.40 ) (0.22 ) $ (1.77 ) $ (1.70 ) Basic and Diluted weighted average number of shares and equivalent shares of common stock outstanding 4,705,741 3,835,950 |
Note 20 - Product and Geograp_2
Note 20 - Product and Geographic Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Net Sales to Outside Customers For the Year Ended December 31, 2020 2019 United States $ 21,192,000 $ 23,754,000 Mexico 5,280,000 8,518,000 $ 26,473,000 $ 32,272,000 |
Long-lived Assets by Geographic Areas [Table Text Block] | Total Assets at December 31, December 31, 2020 2019 United States $ 12,459,000 $ 17,450,000 Mexico 8,798,000 10,897,000 Assets Held for Sale 294,000 2,974,000 $ 21,551,000 $ 31,321,000 |
Schedule of Segment Reporting Information, by Product [Table Text Block] | Twelve Months Ended December 31, 2020 December 31, 2019 $ % of $ % of Product Category (000) Omitted Net Sales (000) Omitted Net Sales Foil Balloons 17,061 64 % 17,630 55 % Latex Balloons 4,718 18 % 7,409 23 % Film Products 804 3 % 1,883 6 % Other 3,890 15 % 5,350 17 % Total 26,473 100 % 32,272 100 % |
Note 23 - Discontinued Operat_2
Note 23 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | December 31, 2020 December 31, 2019 Income Statement Net Sales $ 2,180,412 $ 13,218,279 Cost of Sales 2,795,474 12,199,387 Gross Margin (615,062 ) 1,018,892 SG&A 1,165,462 2,448,641 Operating Income (1,780,524 ) (1,429,749 ) Other Expense 45,203 67,852 Loss from discontinued operations (1,825,727 ) (1,497,601 ) Loss from classification to held for sale 82,545 604,483 Net Loss prior to non-controlling interest (1,743,182 ) (2,102,084 ) Non-controlling Interest share of income/loss 135,202 (1,239,609 ) Net Loss $ (1,878,384 ) $ (862,475 ) December 31, 2020 December 31, 2019 Balance Sheet Assets Current Assets Cash on hand and Banks $ 195,496 $ 4,307 Accounts Receivable 117,687 2,757,947 Inventory - 497,175 Prepaid & Other 62,275 135,912 TOTAL Current Assets 375,457 3,395,341 NET Property, Plant, and Equipment 7,471 53,919 Other Assets Operating lease right-of-use 129,411 220,541 Other 32,543 47,958 TOTAL Other Assets 161,954 268,499 TOTAL Non-Current Assets 169,426 322,418 Valuation Allowance on Assets Held for Sale (250,664 ) (320,899 ) TOTAL Assets $ 294,219 $ 3,396,860 Liabilities Current Liabilities Trade Accounts Payable 21,256 384,333 Operating Lease Liabilities - Current 93,514 203,291 Other/Accrued Liabilities (2,796 ) 19,562 TOTAL Current Liabilities 111,974 607,187 Non-Current Liabilities Operating Lease Liabilities - Non Current 35,897 17,250 Other Non-Current 36,705 32,317 TOTAL Non-Current Liabilities 72,603 49,567 TOTAL Liabilities $ 184,577 $ 656,753 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Costs Capitalized | $ 12,000 | |
Goodwill, Impairment Loss | 1,400,000 | |
Goodwill, Ending Balance | $ 0 | 0 |
Research and Development Expense, Total | 317,000 | 287,000 |
Advertising Expense | $ 11,000 | $ 80,000 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Property, Plant, and Equipment, Useful Life (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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 - Liquidity and Going _2
Note 3 - Liquidity and Going Concern (Details Textual) - USD ($) | Nov. 15, 2018 | Apr. 30, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 15, 2021 |
Cumulative Net Loss | $ (14,000,000) | ||||||
Stock Issued During Period, Value, New Issues | 5,426,601 | $ 303,000 | |||||
Proceeds from Issuance of Convertible Preferred Stock | $ 1,500,000 | ||||||
Equity Financing Arrangement [Member] | |||||||
Restricted Cash, Total | $ 500,000 | ||||||
Equity Financing Arrangement [Member] | Common Stock [Member] | |||||||
Stock Issued During Period, Shares, New Issues (in shares) | 400,000 | ||||||
Equity Financing Arrangement [Member] | Convertible Preferred Stock [Member] | |||||||
Value of Shares Issuable to Other Investor | $ 2,000,000 | ||||||
LF International Pte [Member] | Equity Financing Arrangement [Member] | |||||||
Preferred Stock, Convertible, Conversion Price (in dollars per share) | $ 1 | ||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 1,300,000 | $ 700,000 | $ 2,500,000 | ||||
LF International Pte [Member] | Equity Financing Arrangement [Member] | Common Stock [Member] | |||||||
Stock Issued During Period, Shares, New Issues (in shares) | 260,000 | 140,000 | |||||
LF International Pte [Member] | Equity Financing Arrangement [Member] | Convertible Preferred Stock [Member] | |||||||
Stock Issued During Period, Value, New Issues | $ 5,000,000 | ||||||
Other Investor [Member] | Equity Financing Arrangement [Member] | Convertible Preferred Stock [Member] | |||||||
Stock Issued During Period, Value, New Issues | $ 1,000,000 | ||||||
PNC [Member] | PNC Agreements, Amendment Two [Member] | |||||||
Debt Instrument, Covenant, Required Proceeds from Equity Issuance | $ 7,500,000 |
Note 5 - Fair Value Disclosur_2
Note 5 - Fair Value Disclosures; Derivative Instruments (Details Textual) - PNC [Member] - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 14, 2017 | Dec. 31, 2019 |
Derivative, Term of Contract (Year) | 3 years | |
Derivative Liability, Notional Amount | $ 3,000 | $ 0 |
Derivative, Fixed Interest Rate | 2.25% | |
Derivative, Variable Interest Rate | 1.47% |
Note 6 - Other Comprehensive _2
Note 6 - Other Comprehensive Loss (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Total | $ (536,000) | $ 310,000 |
Note 7 - Major Customer (Detail
Note 7 - Major Customer (Details Textual) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Two Customers [Member] | ||
Accounts Receivable, before Allowance for Credit Loss | $ 804,000 | $ 1,168,000 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Customers | 2 | 2 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member] | ||
Concentration Risk, Percentage | 47.00% | 35.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member] | ||
Concentration Risk, Percentage | 14.00% | 12.00% |
Note 8 - Inventories - Inventor
Note 8 - Inventories - Inventories (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Raw materials | $ 1,177,000 | $ 1,545,000 |
Work in Process | 2,799,000 | 3,110,000 |
Finished Goods | 7,224,000 | 9,134,000 |
In Transit | 88,000 | 100,000 |
Allowance for excess quantities | (318,000) | (352,000) |
Total inventories | $ 10,969,711 | $ 13,536,707 |
Note 9 - Notes Payable and Ca_3
Note 9 - Notes Payable and Capital Leases (Details Textual) $ in Millions | Apr. 30, 2020USD ($) | May 15, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020MXN ($) |
Potential Percent Increase in Interest Rates Contingent on Covenant Compliance | 4.00% | |||||
Long-Term Debt, Maturity, Year One | $ 4,284,391 | |||||
Debt Issuance Costs, Net, Total | 143,105 | |||||
Long-Term Debt, Maturity, Year Two | 344,734 | |||||
Long-Term Debt, Maturity, Year Three | 551,414 | |||||
Other Income, Paycheck Protection Program Grant | 1,047,700 | |||||
Deferred Other Income Liability | 0 | |||||
Notes Payable to Banks [Member] | Flexo Universal [Member] | ||||||
Long-term Debt, Total | $ 1,756,771 | $ 35 | ||||
Debt Instrument, Term (Year) | 3 years | |||||
Long-Term Debt, Maturity, Year One | $ 846,000 | |||||
Notes Payable to Banks [Member] | Flexo Universal [Member] | Interbank Equilibrium Interest Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||
Paycheck Protection Program CARES Act [Member] | ||||||
Proceeds from Issuance of Debt | $ 1,047,700 | |||||
PNC [Member] | Term Loan [Member] | ||||||
Long-term Debt, Total | $ 2,156,895 | |||||
PNC [Member] | PNC Agreements [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,300,000 | |||||
Line of Credit Facility, Temporary Over-advance | $ 0 | $ 1,200,000 | ||||
Line of Credit Facility, Temporary Over-advance, Fee | $ 250,000 | |||||
PNC [Member] | PNC Agreements [Member] | Term Loan [Member] | ||||||
Long-term Debt, Total | 2,300,000 | |||||
Debt Instrument, Periodic Payment, Total | $ 100,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | 8.25% |
Note 9 - Notes Payable and Ca_4
Note 9 - Notes Payable and Capital Leases - Long-term Debt (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) |
Total long-term debt | $ 5,037,435 | $ 1,058,486 | |
Less current portion | (50,137,435) | ||
Total Long-term debt, net of current portion | 1,058,486 | ||
4% Subordinated Notes [Member] | |||
Long-term debt | 1,123,769 | 1,058,486 | |
Notes Payable to Banks [Member] | Flexo Universal [Member] | |||
Long-term debt | 1,756,771 | $ 35 | |
Term Loan [Member] | PNC [Member] | |||
Long-term debt | $ 2,156,895 |
Note 9 - Notes Payable and Ca_5
Note 9 - Notes Payable and Capital Leases - Long-term Debt (Details) (Parentheticals) | Dec. 31, 2020 | Dec. 31, 2019 |
4% Subordinated Notes [Member] | ||
Stated Rate | 4.00% | 4.00% |
Note 9 - Notes Payable and Ca_6
Note 9 - Notes Payable and Capital Leases - Leverage Ratios (Details) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Maximum [Member] | ||
Leverage ratio | 2.75 | 3 |
Note 9 - Notes Payable and Ca_7
Note 9 - Notes Payable and Capital Leases - Fixed Charge Coverage Ratio (Details) - Maximum [Member] | 3 Months Ended | 24 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | |
Fixed Charge Coverage Ratio | 1.05 | 0.95 | 0.85 | 0.75 | |
Forecast [Member] | |||||
Fixed Charge Coverage Ratio | 1.15 |
Note 10 - Subordinated Debt -_2
Note 10 - Subordinated Debt - Related Parties (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||||
Jan. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 11, 2019 | Dec. 31, 2017 | |
Share Price (in dollars per share) | $ 3.32 | ||||
John H Schwan [Member] | Exchange of Debt To Common Stock [Member] | |||||
Debt Conversion, Original Debt, Amount | $ 0.6 | ||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 181,000 | ||||
Share Price (in dollars per share) | $ 3.32 | ||||
Long-term Debt, Total | $ 1.1 | $ 1.1 | |||
John H Schwan [Member] | Promissory Note [Member] | |||||
Due to Related Parties, Total | $ 1.1 | ||||
Interest Payable | $ 0.4 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 2,081,649 | $ 2,473,248 |
Operating Loss Carryforwards, Expired | 800,000 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards, Total | 8,200,000 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards, Total | 4,200,000 | |
Tax Credit Carryforward, Amount | 600,000 | |
Tax Credit Carryforward, Expired | 0 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards, Total | $ 3,500,000 |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Federal | $ (410,069) | $ (845) |
State | ||
Foreign | 1,824 | 11,264 |
Total Current | (408,245) | 10,420 |
Federal | 71,007 | |
State | 32,659 | |
Foreign | 31,517 | |
Total Deferred | 135,183 | |
Provision (Benefit) for income taxes | $ (403,074) | $ 135,094 |
Note 11 - Income Taxes - Inco_2
Note 11 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
At Statutory Rate | $ (598,492) | $ (1,503,581) |
State Taxes | (285,914) | (412,909) |
Change in Valuation Allowance | 936,808 | 2,473,248 |
NOL Carryback Claim (CARES Act) | (201,654) | |
Nondeductible Expenses | (367,848) | 216,790 |
Foreign Taxes | (69,969) | (48,304) |
Deconsolidation & Impairment | 134,115 | (373,448) |
Other | 44,710 | (206,193) |
Rounding | (1) | (1) |
Provision (Benefit) for income taxes | $ (403,074) | $ 135,094 |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Federal & State NOL Carryforward | $ 1,669,717 | $ 531,864 |
Foreign Tax Credit & Other Credits | 581,479 | 463,451 |
Reserves and Accruals | 216,591 | 320,961 |
Unicap 263A Adjustment | 63,006 | 72,294 |
Other DTA | (36,776) | 65,215 |
Foreign NOL Carryforward | 1,049,887 | 802,907 |
Deferred Interest Expense | 1,383,772 | 1,030,634 |
Deconsolidation & Impairment | 1,388,551 | 1,028,249 |
Total Gross DTA | 6,316,227 | 4,319,575 |
Less: Val. Allowance | (6,397,605) | (4,315,957) |
Total Deferred Tax Assets | (81,378) | 3,618 |
Fixed Assets & Intangibles | 81,378 | (3,618) |
Deferred State Income Tax | ||
Total Gross DTL | 81,378 | (3,618) |
Net Deferred Tax Liabilities | ||
Net Deferred Tax Assets |
Note 12 - Employee Benefit Pl_2
Note 12 - Employee Benefit Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Note 13 - Related Party Trans_2
Note 13 - Related Party Transactions (Details Textual) - USD ($) | Jan. 11, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2019 | Dec. 31, 2018 |
Share Price (in dollars per share) | $ 3.32 | ||||
Due from Related Parties, Current, Total | $ 100,000 | $ 1,387,131 | |||
Conversion of Related Party Debt to Equity [Member] | |||||
Debt Conversion, Original Debt, Amount | $ 600,000 | ||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 181,000 | ||||
Schwan Incorporated [Member] | |||||
Related Party Transaction, Amounts of Transaction | 13,000 | 16,000 | |||
John H Schwan [Member] | |||||
Due to Related Parties, Total | 1,123,769 | 1,058,486 | |||
John H Schwan [Member] | Promissory Note [Member] | |||||
Due to Related Parties, Noncurrent, Total | $ 997,019 | $ 1,600,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||
Repayments of Related Party Debt | 0 | 0 | |||
Interest Expense, Related Party | 65,000 | 61,000 | |||
CTI Europe [Member] | |||||
Long-term Debt, Gross | 0 | $ 14,000 | |||
Board of Directors Chairman [Member] | |||||
Due from Related Parties, Current, Total | $ 1,300,000 | ||||
Note Receivable, Reserve | $ 1,277,000 |
Note 14 - Variable Interest E_2
Note 14 - Variable Interest Entities ("VIE") and Transactions (Details Textual) $ in Millions | May 31, 2016USD ($) | May 31, 2016MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2016 |
Deconsolidation, Gain (Loss), Amount | $ 218,534 | |||||
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, Total | $ 700,000 | |||||
Flexo Universal [Member] | Venture Leasing Mexico S. A. de R. L [Member] | ||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 470,000 | $ 8.7 | ||||
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 15 - Goodwill (Details Tex
Note 15 - Goodwill (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | |
Goodwill, Impairment Loss | $ 1,400,000 | ||
Goodwill, Ending Balance | $ 0 | $ 0 | |
Clever Container Company, L.L.C. [Member] | |||
Goodwill, Impairment Loss | $ 220,000 | ||
Flexo Universal [Member] | |||
Goodwill, Impairment Loss | $ 1,033,000 |
Note 16 - Commitments (Details
Note 16 - Commitments (Details Textual) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Assets, Noncurrent, Excluding Property, Plant, and Equipment | $ 449,272 | $ 1,165,295 | |
Liabilities, Current, Total | 18,787,191 | 27,524,405 | |
Liabilities, Noncurrent, Total | $ 44,129 | $ 2,670,171 | |
Accounting Standards Update 2016-02 [Member] | |||
Assets, Noncurrent, Excluding Property, Plant, and Equipment | $ 2,800,000 | ||
Liabilities, Current, Total | 1,100,000 | ||
Liabilities, Noncurrent, Total | $ 1,700,000 |
Note 16 - Commitments - Lease P
Note 16 - Commitments - Lease Position (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating lease right-of-use assets | $ 1,630,000 | $ 2,176,000 |
Accumulated amortization | (1,268,000) | (1,130,000) |
Net lease assets | 361,720 | 1,046,438 |
Operating | 317,591 | 658,374 |
Operating | 44,129 | 388,064 |
Total lease liabilities | $ 362,000 | $ 1,046,000 |
Weighted average remaining term (years) – operating leases (Year) | 2 years | 2 years |
Weighted average discount rate – operating leases | 11.25% | 11.25% |
Note 16 - Commitments - Lease C
Note 16 - Commitments - Lease Cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating right-of-use lease asset amortization | $ 650,000 | $ 1,130,000 |
Financing lease asset amortization | ||
Related interest expense | ||
Total expense during twelve months | $ 650,000 | $ 1,130,000 |
Note 16 - Commitments - Maturit
Note 16 - Commitments - Maturities for Operating Lease Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
2021 | $ 415,000 | |
2022 and thereafter | 57,000 | |
Total lease payments | 472,000 | |
less: Imputed interest | (110,000) | |
Total lease liabilities | $ 362,000 | $ 1,046,000 |
Note 17 - Convertible Redeema_2
Note 17 - Convertible Redeemable Preferred Stock (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests, Ending Balance | $ 1,532,164 | ||
Series B Preferred Stock [Member] | |||
Stock Issued During Period, Shares, New Issues (in shares) | 170,000 | ||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 1,500,000 | $ 1,500,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 10 | ||
Preferred Stock, Convertible, Conversion Price (in dollars per share) | $ 1 | ||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests, Ending Balance | $ 1,500,000 | ||
Preferred Stock, Convertible, Beneficial Conversion Feature | $ 1,500,000 |
Note 18 - Stockholders' Equit_2
Note 18 - Stockholders' Equity (Details Textual) - USD ($) | Jun. 05, 2020 | Apr. 01, 2020 | Apr. 30, 2020 | Feb. 29, 2020 | Jan. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 20, 2020 | Nov. 19, 2020 | Dec. 31, 2018 | Jun. 08, 2018 | Apr. 10, 2009 |
Stock Issued During Period, Value, New Issues | $ 5,426,601 | $ 303,000 | ||||||||||
Common Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | 15,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 4 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 178,000 | ||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 0 | |||||||||||
Class of Warrant or Right, Granted in Period (in shares) | 792,660 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1 | |||||||||||
Class of Warrant or Right, Exercised During Period (in shares) | 597,500 | |||||||||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | 391,308 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year) | 5 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | |||||||||||
Class of Warrant or Right, Outstanding, Intrinsic Value | $ 140,615 | |||||||||||
Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.42% | |||||||||||
Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.65% | |||||||||||
Series A Preferred Stock Warrants [Member] | ||||||||||||
Class of Warrant or Right, Granted in Period (in shares) | 792,660 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 792,660 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1 | |||||||||||
Class of Warrant or Right, Exercised During Period (in shares) | 597,500 | |||||||||||
Stock Incentive Plan 2009 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 510,000 | |||||||||||
Stock Incentive Plan 2018 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 300,000 | |||||||||||
Restricted Stock [Member] | Former Chief Executive Officer [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 15,000 | |||||||||||
LF International Pte [Member] | ||||||||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 400,000 | |||||||||||
Garden State Securities [Member] | ||||||||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 200,000 | |||||||||||
Conversion from Series A Preferred Stock to Common Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted (in shares) | 90,860 | |||||||||||
Conversion of Stock, Shares Issued (in shares) | 941,388 | |||||||||||
Conversion from Notes Payable To Common Stock [Member] | ||||||||||||
Debt Conversion, Original Debt, Amount | $ 600,000 | |||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 180,723 | |||||||||||
Conversion from Accounts Payable To Common Stock [Member] | ||||||||||||
Debt Conversion, Original Debt, Amount | $ 300,000 | |||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 100,000 | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 42,660 | |||||||||||
Stock Issued During Period, Value, New Issues | $ 426,600 | |||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 10 | |||||||||||
Preferred Stock, Dividend Rate, Percentage | 8.00% | |||||||||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount (in dollars per share) | $ 10 | |||||||||||
Dividends, Total | $ 379,655 | |||||||||||
Preferred Stock Redemption Premium | $ 2,500,000 | |||||||||||
Beneficial Conversion Feature of Preferred Stock | ||||||||||||
Series A Preferred Stock [Member] | Conversion of Accounts Receivable Owed to Investor to Preferred Stock [Member] | ||||||||||||
Debt Conversion, Original Debt, Amount | $ 478,000 | |||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 48,200 | |||||||||||
Preferred Stock [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 542,660 | |||||||||||
Stock Issued During Period, Value, New Issues | $ 5,093,267 | |||||||||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | ||||||||||||
Preferred Stock [Member] | Series A Preferred Stock [Member] | ||||||||||||
Beneficial Conversion Feature of Preferred Stock | $ (2,468,473) | |||||||||||
Common Stock [Member] | Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 20,000 | |||||||||||
Additional Paid-in Capital [Member] | ||||||||||||
Stock Issued During Period, Value, New Issues | $ 303,000 | |||||||||||
Additional Paid-in Capital [Member] | Series A Preferred Stock [Member] | ||||||||||||
Beneficial Conversion Feature of Preferred Stock | $ 2,500,000 | 2,468,473 | ||||||||||
Equity Financing Arrangement [Member] | ||||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 5,000,000 | |||||||||||
Equity Financing Arrangement [Member] | Preferred Stock [Member] | Series A Preferred Stock [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 500,000 | |||||||||||
Equity Financing Arrangement [Member] | Common Stock [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 400,000 | |||||||||||
Equity Financing Arrangement [Member] | Common Stock [Member] | LF International Pte [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 260,000 | 140,000 |
Note 18 - Stockholders' Equit_3
Note 18 - Stockholders' Equity - Option and Warrant Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Outstanding, options (in shares) | 471,144 | 471,144 |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.95 | $ 3.95 |
Outstanding, warrants (in shares) | ||
Outstanding, warrants, weighted average exercise price (in dollars per share) | ||
Granted, options (in shares) | ||
Granted, weighted average exercise price (in dollars per share) | ||
Granted, warrants (in shares) | 792,660 | |
Granted, warrants, weighted average exercise price (in dollars per share) | $ 1 | |
Cancelled/Expired, options (in shares) | (471,144) | |
Cancelled/Expired, weighted average exercise price (in dollars per share) | $ 3.95 | |
Cancelled/Expired, warrants (in shares) | ||
Cancelled/Expired, warrants, weighted average exercise price (in dollars per share) | ||
Exercised/Issued, options (in shares) | ||
Exercised/Issued, weighted average exercise price (in dollars per share) | ||
Exercised/Issued, warrants (in shares) | (597,500) | |
Exercised/Issued, warrants, weighted average exercise price (in dollars per share) | $ 1 | |
Outstanding, options (in shares) | 471,144 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.95 | |
Outstanding, warrants (in shares) | 195,160 | |
Outstanding, warrants, weighted average exercise price (in dollars per share) | $ 1 | |
Exercisable at the end of period, options (in shares) | 312,020 | |
Exercisable at the end of period, weighted average exercise price (in dollars per share) | ||
Exercisable at December 31, 2020, warrants (in shares) | 195,160 | |
Exercisable at December 31, 2020, warrants, weighted average exercise price (in dollars per share) | $ 1 |
Note 18 - Stockholders' Equit_4
Note 18 - Stockholders' Equity - Reserved Shares (Details) | Dec. 31, 2020shares |
Shares reserved (in shares) | 7,377,160 |
Series A Preferred Stock [Member] | |
Shares reserved (in shares) | 5,482,000 |
Series B Preferred Stock [Member] | |
Shares reserved (in shares) | 1,700,000 |
Series A Preferred Stock Warrants [Member] | |
Shares reserved (in shares) | 195,160 |
Note 19 - Loss Per Share - Cons
Note 19 - Loss Per Share - Consolidated Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss from continuing operations | $ (2,507,679) | $ (5,972,363) |
(Gain)/loss attributable to noncontrolling interest | 3,423 | (292,518) |
Deemed dividends on preferred stock and amortization of beneficial conversion feature | 4,380,292 | |
Loss from continuing operations attributable to Yunhong CTI Ltd common shareholders | (6,891,394) | (5,679,845) |
Loss from discontinued operations | (1,743,182) | (2,102,084) |
(Gain)/loss attributable to noncontrolling interest | 135,202 | (1,239,611) |
Loss from discontinued operations attributable to Yunhong CTI Ltd common shareholders | $ (1,878,384) | $ (862,473) |
Continuing operations (in dollars per share) | $ (1.46) | $ (1.48) |
Discontinued operations (in dollars per share) | (0.40) | (0.22) |
Earnings Per Share, Basic and Diluted, Total | $ (1.77) | $ (1.70) |
Basic and Diluted weighted average number of shares and equivalent shares of common stock outstanding (in shares) | 4,705,741 | 3,835,950 |
Note 20 - Product and Geograp_3
Note 20 - Product and Geographic Segment Data (Details Textual) | 12 Months Ended |
Dec. 31, 2020 | |
Number of Operating Segments | 1 |
Note 20 - Product and Geograp_4
Note 20 - Product and Geographic Segment Data - Net Sales to Outside Customers (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales | $ 26,472,568 | $ 32,271,647 |
UNITED STATES | ||
Net Sales | 21,192,000 | 23,754,000 |
MEXICO | ||
Net Sales | $ 5,280,000 | $ 8,518,000 |
Note 20 - Product and Geograp_5
Note 20 - Product and Geographic Segment Data - Assets by geographic Areas (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | $ 21,550,971 | $ 31,321,083 |
UNITED STATES | ||
Assets | 12,459,000 | 17,450,000 |
MEXICO | ||
Assets | 8,798,000 | 10,897,000 |
Other Geographic Areas [Member] | ||
Assets | $ 294,000 | $ 2,974,000 |
Note 20 - Product and Geograp_6
Note 20 - Product and Geographic Segment Data - Financial Information By Product Net Sales (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales | $ 26,472,568 | $ 32,271,647 |
Net Sales Percentage | 100.00% | 100.00% |
Foil Balloons [Member] | ||
Net Sales | $ 17,061,000 | $ 17,630,000 |
Net Sales Percentage | 64.00% | 55.00% |
Latex Balloons [Member] | ||
Net Sales | $ 4,718,000 | $ 7,409,000 |
Net Sales Percentage | 18.00% | 23.00% |
Film Products [Member] | ||
Net Sales | $ 804,000 | $ 1,883,000 |
Net Sales Percentage | 3.00% | 6.00% |
Other Products [Member] | ||
Net Sales | $ 3,890,000 | $ 5,350,000 |
Net Sales Percentage | 15.00% | 17.00% |
Note 22 - Legal Proceedings (De
Note 22 - Legal Proceedings (Details Textual) - USD ($) | Feb. 10, 2021 | Oct. 19, 2020 | Oct. 15, 2020 | Sep. 08, 2020 | Apr. 05, 2020 | Jan. 27, 2020 | Jan. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 |
Claims Filed by FedEx Trade Networks Transport [Member] | Pending Litigation [Member] | |||||||||
Loss Contingency, Damages Sought, Value | $ 163,964.75 | ||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 100,400 | ||||||||
Claims Filed by FedEx Trade Networks Transport [Member] | Settled Litigation [Member] | |||||||||
Loss Contingency Accrual, Ending Balance | $ 100,000 | ||||||||
Litigation Settlement, Amount Awarded to Other Party, Monthly Installment | $ 10,000 | ||||||||
Litigation Settlement, Amount Awarded to Other Party, Term (Month) | 300 days | ||||||||
Litigation Settlement, Amount Awarded to Other Party, Last Payment Amount | $ 10,400 | ||||||||
Jules and Associates, Inc. [Member] | Alleged Past Due Amounts Under Lease [Member] | |||||||||
Loss Contingency Accrual, Ending Balance | 100,000 | ||||||||
Loss Contingency, Damages Sought, Value | $ 65,846.99 | $ 98,244.55 | |||||||
Redwood Multimodal [Member] | Demand for the Withholding of Payment [Member] | |||||||||
Loss Contingency Accrual, Ending Balance | 100,000 | ||||||||
Loss Contingency, Damages Sought, Value | $ 98,960.88 | ||||||||
Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] | |||||||||
Payments for Legal Settlements | $ 5,000 | ||||||||
Loss Contingency Accrual, Ending Balance | $ 300,000 | ||||||||
Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] | Minimum [Member] | |||||||||
Royalty Monthly Payout, Amount | $ 7,667 | ||||||||
Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] | Common Stock [Member] | |||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 20,000 | ||||||||
Airgas USA, LLC v. CTI Industries Corp. [Member] | Pending Litigation [Member] | |||||||||
Loss Contingency, Damages Sought, Value | $ 212,000 | ||||||||
Airgas USA, LLC v. CTI Industries Corp. [Member] | Settled Litigation [Member] | |||||||||
Loss Contingency Accrual, Ending Balance | $ 100,000 | ||||||||
Airgas USA, LLC v. CTI Industries Corp. [Member] | Settled Litigation [Member] | Subsequent Event [Member] | |||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 125,000 | ||||||||
Litigation Settlement, Amount Awarded to Other Party, Term (Month) | 300 days |
Note 23 - Discontinued Operat_3
Note 23 - Discontinued Operations (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | $ (1,743,182) | $ (2,102,084) |
CTI Europe [Member] | ||
Disposal Group, Including Discontinued Operation, Assets, Total | 1,750,000 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | (1,005,000) | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | (683,000) | |
CTI Balloons and CTI Europe [Member] | ||
Disposal Group, Including Discontinued Operation, Assets, Total | 294,219 | 3,396,860 |
Disposal Group, Including Discontinued Operation, Inventory | 1,000,000 | |
Disposal Group, Including Discontinued Operation, Allowance for Doubtful Accounts | 67,000 | |
Disposal Group, Including Discontinued Operation, Other Assets | 8,000 | |
Depreciation and Amortization, Discontinued Operations | 7,000 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | (1,743,182) | (2,102,084) |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | (82,545) | (604,483) |
CTI Balloons Limited [Member] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | (1,006,000) | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | (321,000) | |
Ziploc Product Line [Member] | Discontinued Operations [Member] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | $ (2,024,851) | $ 1,111,452 |
Note 23 - Discontinued Operat_4
Note 23 - Discontinued Operations - Summarized Discontinued Operatings Financial Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Loss prior to non-controlling interest | $ (1,743,182) | $ (2,102,084) |
(Gain)/loss attributable to noncontrolling interest | 135,202 | (1,239,611) |
Loss from discontinued operations attributable to Yunhong CTI Ltd common shareholders | (1,878,384) | (862,473) |
TOTAL Current Assets | 294,219 | 3,396,860 |
TOTAL Current Liabilities | 184,577 | 656,753 |
CTI Balloons and CTI Europe [Member] | ||
Net Sales | 2,180,412 | 13,218,279 |
Cost of Sales | 2,795,474 | 12,199,387 |
Gross Margin | (615,062) | 1,018,892 |
SG&A | 1,165,462 | 2,448,641 |
Operating Income | (1,780,524) | (1,429,749) |
Other Expense | 45,203 | 67,852 |
Loss from discontinued operations | (1,825,727) | (1,497,601) |
Loss from classification to held for sale | 82,545 | 604,483 |
Net Loss prior to non-controlling interest | (1,743,182) | (2,102,084) |
(Gain)/loss attributable to noncontrolling interest | 135,202 | (1,239,609) |
Loss from discontinued operations attributable to Yunhong CTI Ltd common shareholders | (1,878,384) | (862,475) |
Cash on hand and Banks | 195,496 | 4,307 |
Accounts Receivable | 117,687 | 2,757,947 |
Inventory | 497,175 | |
Prepaid & Other | 62,275 | 135,912 |
TOTAL Current Assets | 375,457 | 3,395,341 |
NET Property, Plant, and Equipment | 7,471 | 53,919 |
Operating lease right-of-use | 129,411 | 220,541 |
Other | 32,543 | 47,958 |
TOTAL Other Assets | 161,954 | 268,499 |
TOTAL Non-Current Assets | 169,426 | 322,418 |
Valuation Allowance on Assets Held for Sale | (250,664) | (320,899) |
TOTAL Assets | 294,219 | 3,396,860 |
Trade Accounts Payable | 21,256 | 384,333 |
Operating Lease Liabilities - Current | 93,514 | 203,291 |
Other/Accrued Liabilities | (2,796) | 19,562 |
TOTAL Current Liabilities | 111,974 | 607,187 |
Operating Lease Liabilities - Non Current | 35,897 | 17,250 |
Other Non-Current | 36,705 | 32,317 |
TOTAL Non-Current Liabilities | 72,603 | 49,567 |
TOTAL Liabilities | $ 184,577 | $ 656,753 |
Note 24 - Subsequent Events (De
Note 24 - Subsequent Events (Details Textual) - USD ($) | Mar. 16, 2021 | Oct. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2021 | Dec. 31, 2019 |
Proceeds from Advances on Proposed Equity Financing | $ 1,500,000 | |||||
Preferred Stock, No Par Value (in dollars per share) | $ 0 | $ 0 | ||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | 391,308 | |||||
Subsequent Event [Member] | ||||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | 103,104 | |||||
Subsequent Event [Member] | Benchmark Investments, Inc. v. Yunhong CTI Ltd [Member] | ||||||
Loss Contingency, Damages Sought, Value | $ 500,000 | |||||
Subsequent Event [Member] | Series C Preferred Stock [Member] | ||||||
Equity Financing Agreement, Maximum Number of Shares to Purchase (in shares) | 170,000 | |||||
Preferred Stock, No Par Value (in dollars per share) | $ 0 | |||||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 10 | |||||
Equity Financing Agreement, Purchase Price (in dollars per share) | $ 0.88 | |||||
Equity Financing Agreement, Aggregate Gross Proceeds | $ 1,500,000 |