Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | CTI INDUSTRIES CORP | |
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 Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 3,835,950 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (VIE $2,000 and $57,000, respectively) | $ 178,298 | $ 428,150 |
Accounts receivable, (less allowance for doubtful accounts of $94,000 and $85,000, respectively) | 8,884,291 | 10,830,555 |
Inventories, net (VIE $269,000 and $340,000, respectively) | 20,519,240 | 20,007,488 |
Prepaid expenses (VIE $106,000 and $127,000, respectively) | 394,797 | 858,158 |
Other current assets | 1,342,896 | 886,383 |
Total current assets | 31,319,522 | 33,010,734 |
Property, plant and equipment: | ||
Machinery and equipment | 23,880,732 | 23,807,985 |
Building | 3,374,334 | 3,367,082 |
Office furniture and equipment (VIE $303,000 and $303,000, respectively) | 2,685,450 | 2,649,280 |
Intellectual property | 783,179 | 783,179 |
Land | 250,000 | 250,000 |
Leasehold improvements | 413,053 | 409,188 |
Fixtures and equipment at customer locations | 518,450 | 518,450 |
Projects under construction | 180,955 | 150,272 |
Property, Plant and Equipment, Gross | 32,086,153 | 31,935,436 |
Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) | (28,657,592) | (28,120,455) |
Total property, plant and equipment, net | 3,428,561 | 3,814,981 |
Other assets: | ||
Goodwill (VIE $440,000 and $440,000, respectively) | 1,473,176 | 1,473,176 |
Net deferred income tax asset | 539,305 | 135,094 |
Operating lease right-of-use | 1,872,470 | |
Other non-current assets | (3,000,000) | |
Other assets | 15,274 | 326,849 |
Total other assets | 900,225 | 1,935,119 |
TOTAL ASSETS | 35,648,308 | 38,760,834 |
Current liabilities: | ||
Checks written in excess of bank balance (VIE $2,000 and $7,000, respectively) | 1,030,369 | 636,142 |
Trade payables (VIE $77,000 and $62,000, respectively) | 8,678,165 | 6,679,670 |
Line of credit (VIE $232,000 and $267,000, respectively) | 12,429,643 | 16,582,963 |
Notes payable - current portion | 4,522,104 | 4,432,320 |
Notes payable affiliates - current portion | 11,727 | 10,821 |
Operating Lease Liabilities | 1,005,650 | 0 |
Accrued liabilities (VIE $35,000 and $89,000, respectively) | 1,705,380 | 1,866,796 |
Total current liabilities | 29,383,038 | 30,208,712 |
Long-term liabilities: | ||
Notes payable - affiliates | 222,408 | 199,122 |
Notes payable, net of current portion (VIE $30,000 and $27,000, respectively) | 443,675 | 399,912 |
Operating Lease Liabilities | 866,820 | |
Notes payable - officers, subordinated | 1,027,280 | 1,597,019 |
Deferred gain (non current) | 257,348 | 100,340 |
Deferred income tax liability | ||
Total long-term debt, net of current portion | 2,817,531 | 2,296,393 |
Total long-term liabilities | 2,817,531 | 2,296,393 |
CTI Industries Corporation stockholders' equity: | ||
Preferred Stock -- no par value, 3,000,000 shares authorized, 0 shares issued and outstanding | ||
Common stock - no par value, 15,000,000 shares authorized, 3,879,608 shares issued and 3,835,950 shares outstanding | 13,898,494 | 13,898,494 |
Paid-in-capital | 3,461,832 | 2,506,437 |
Accumulated earnings | (6,840,594) | (2,865,486) |
Accumulated other comprehensive loss | (5,753,138) | (6,050,347) |
Less: Treasury stock, 43,658 shares | (160,784) | (160,784) |
Total CTI Industries Corporation stockholders' equity | 4,605,810 | 7,328,314 |
Noncontrolling interest | (1,158,071) | (1,072,585) |
Total Equity | 3,447,739 | 6,255,729 |
TOTAL LIABILITIES AND EQUITY | $ 35,648,308 | $ 38,760,834 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 178,298 | $ 428,150 |
Allowance for doubtful accounts | 94,000 | 85,000 |
Inventories, net | 20,519,240 | 20,007,488 |
Prepaid expenses | 394,797 | 858,158 |
Office furniture and equipment | 2,685,450 | 2,649,280 |
Goodwill | 1,473,176 | 1,473,176 |
Checks written in excess of bank balance | 1,030,369 | 636,142 |
Trade payables | 8,678,165 | 6,679,670 |
Line of credit | 12,429,643 | 16,582,963 |
Accrued liabilities | 1,705,380 | 1,866,796 |
Notes payable | $ 443,675 | $ 399,912 |
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) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 3,879,608 | 3,879,608 |
Common stock, shares outstanding (in shares) | 3,835,950 | 3,835,950 |
Treasury stock, shares (in shares) | 43,658 | 43,658 |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ||
Cash and cash equivalents | $ 2,000 | $ 57,000 |
Inventories, net | 269,000 | 340,000 |
Prepaid expenses | 106,000 | 127,000 |
Office furniture and equipment | 303,000 | 303,000 |
Accumulated depreciation and amortization | 107,000 | 104,000 |
Goodwill | 440,000 | 440,000 |
Checks written in excess of bank balance | 2,000 | 7,000 |
Trade payables | 77,000 | 62,000 |
Line of credit | 232,000 | 267,000 |
Accrued liabilities | 35,000 | 89,000 |
Notes payable | $ 30,000 | $ 27,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 12,406,840 | $ 15,984,726 | $ 24,943,229 | $ 29,963,903 |
Cost of Sales | 9,869,107 | 12,189,204 | 20,409,325 | 23,299,990 |
Gross profit | 2,537,733 | 3,795,522 | 4,533,904 | 6,663,913 |
Operating expenses: | ||||
General and administrative | 1,531,125 | 1,680,490 | 3,587,197 | 3,564,536 |
Selling | 415,038 | 958,796 | 852,603 | 1,817,333 |
Advertising and marketing | 270,355 | 331,609 | 544,235 | 628,489 |
Gain on sale of assets | (23,662) | (22,998) | (47,209) | (47,413) |
Total operating expenses | 2,192,856 | 2,947,897 | 4,936,826 | 5,962,945 |
Income from operations | 344,877 | 847,625 | (402,922) | 700,968 |
Other (expense) income: | ||||
Interest expense | (516,161) | (550,780) | (1,063,067) | (1,114,840) |
Interest income | 335 | 11,389 | 336 | 11,043 |
Other Expense | (3,000,000) | (3,000,000) | ||
Foreign currency loss | 9,444 | (13,246) | 849 | 17,783 |
Total other expense, net | (3,506,382) | (552,637) | (4,061,882) | (1,086,014) |
Net income before taxes | (3,161,505) | 294,988 | (4,464,804) | (385,046) |
Income tax expense | (43,719) | 89,281 | (404,210) | (120,202) |
Net income | (3,117,786) | 205,707 | (4,060,594) | (264,844) |
Less: Net (loss) income attributable to noncontrolling interest | (23,099) | (44,497) | (85,486) | (52,040) |
Net income attributable to CTI Industries Corporation | (3,094,688) | 250,204 | (3,975,108) | (212,804) |
Other Comprehensive Income (Loss) | ||||
Foreign currency adjustment | 61,333 | (775,497) | 297,209 | (342,432) |
Comprehensive Income (Loss) | $ (3,033,355) | $ (525,293) | $ (3,677,899) | $ (555,236) |
Basic income per common share (in dollars per share) | $ (0.81) | $ 0.07 | $ (1.04) | $ (0.06) |
Diluted income per common share (in dollars per share) | $ (0.81) | $ 0.07 | $ (1.04) | $ (0.06) |
Weighted average number of shares and equivalent shares of common stock outstanding: | ||||
Basic (in shares) | 3,835,950 | 3,530,227 | 3,835,950 | 3,530,227 |
Diluted (in shares) | 3,835,950 | 3,567,315 | 3,835,950 | 3,530,227 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ (4,060,594) | $ (264,844) |
Depreciation and amortization | 522,670 | 701,839 |
Operating cash flows from operating leases | 487,239 | |
Amortization of deferred gain on sale/leaseback | 155,433 | (55,320) |
Provision for losses on accounts receivable | 7,657 | (10,471) |
Provision for losses on inventories | 25,415 | (29,386) |
Deferred income taxes | (404,210) | (90,206) |
Loss on disposition of asset | 17,480 | |
Change in assets and liabilities: | ||
Accounts receivable | 2,001,248 | (671,380) |
Other non-current assets | 3,000,000 | |
Inventories | (474,804) | (483,573) |
Prepaid expenses and other assets | (140,125) | 115,988 |
Trade payables | 1,921,337 | 800,813 |
Accrued liabilities | (476,644) | (285,976) |
Net cash provided by (used in) operating activities | 2,582,102 | (272,516) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (72,662) | (18,193) |
Net cash provided by (used in) investing activities | (72,662) | (18,193) |
Cash flows from financing activities: | ||
Change in checks written in excess of bank balance | 394,227 | (445,854) |
Net change in revolving line of credit | (4,160,724) | 1,699,201 |
Repayment of long-term debt | (554,768) | (768,003) |
Proceeds from issuance of stock | 955,396 | 105,745 |
Cash paid for deferred financing fees | 31,388 | (59,530) |
Proceeds from issuance of long-term debt | 650,000 | |
Net cash provided by (used in) financing activities | (2,684,481) | 531,559 |
Effect of exchange rate changes on cash | (74,811) | 30,950 |
Net increase/(decrease) in cash and cash equivalents | (249,852) | 271,800 |
Cash and cash equivalents at beginning of period | 428,150 | 181,026 |
Cash and cash equivalents at end of period | 178,298 | 452,826 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest | 1,045,943 | 934,231 |
Supplemental Disclosure of non-cash investing and financing activity | ||
Property, Plant & Equipment acquisitions funded by liabilities | $ 34,046 | $ 82,231 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2019 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 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 |
Note conversion - Schwan | 600,000 | 600,000 | |||||
Stock Issued | 303,000 | 303,000 | |||||
Stock Option Expense | 52,396 | 52,396 | |||||
Net income | (3,975,108) | (85,486) | (4,060,594) | ||||
Foreign currency translation | 297,209 | 297,209 | |||||
Balance (in shares) at Jun. 30, 2019 | 3,879,608 | ||||||
Balance at Jun. 30, 2019 | $ 13,898,494 | $ 3,461,833 | $ (6,840,594) | $ (5,753,138) | $ (160,784) | $ (1,158,071) | $ 3,447,739 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 The accompanying condensed (a) consolidated balance sheet as of December 31, 2018, 10 8 X. not three six June 30, 2019 not may December 31, 2019. 10 December 31, 2018. Principles of consolidation and nature of operations: The condensed consolidated financial statements include the accounts of CTI Industries Corporation and its wholly-owned subsidiaries, CTI Balloons Limited and CTI Supply, Inc., its majority-owned subsidiaries, Flexo Universal, S. de R.L. de C.V. and CTI Europe gmbH, as well as the accounts of Venture Leasing S. A. de R. L., Venture Leasing L.L.C and Clever Container Company, L.L.C. (the “Company”). The last three June 30, 2019, June 2019, two no $3 June 2019 Variable Interest Entities (“VIE’s”): The determination of whether or not three Use of estimates: In preparing condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenue and expenses during the reporting period in the condensed consolidated financial statements and accompanying notes. Actual results may Earnings per share: Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period. As of June 30, 2019 2018, 471,144 three June 30, 2019 2018 none Significant Accounting Policies: The Company’s significant accounting policies are summarized in Note 2 December 31, 2018. no three six June 30, 2019, 842, Leases . On January 1, 2019, 842 12. 842 12 not On January 1, 2018, 606 606 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 Auditor Replacement Process: During April 2019, 10Q |
Note 2 - Liquidity and Going Co
Note 2 - Liquidity and Going Concern | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Liquidity and Going Concern [Text Block] | Note 2 The Company’s primary sources of liquidity are cash and cash equivalents as well as availability under the Credit Agreement with PNC Bank, National Association (“PNC”) (see Note 3 3, 2018 March 2019 March 31, 2019 not June 30, 2019 July 31, 2019. August 1, 2019, During 2019 one no In addition to the above, due to financial performance in 2016, 2017 2018, $0.7 $1.6 $3.6 June 30, 2019. Additionally, we have experienced challenges in maintaining adequate seasonal working capital balances, made more challenging by increases in financing and labor costs, along with a supply disruption in the helium market. These changes in cash flows have created very significant strain within our operations, and have therefore increased our desire to obtain additional funding resources. Management’s plans include: ( 1 ( 2 ( 3 ( 4 ( 5 Management Assessment Considering both quantitative and qualitative information, we believe that our plans to obtain additional financing may 2019 may |
Note 3 - Debt
Note 3 - Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 3 - Debt During December 2017, $6 $18 December 2022. Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at CTI Industries (U.S.) and Flexo Universal (Mexico). We notified PNC of our failure to meet two March 31, 2018. June 8, 2018, No. 1 1” September 2018, 1 October 8, 2018, No. 2 2” 2 $5 $2 September 30, 2018, $7.5 November 15, 2018 no November 15, 2018 We engaged PNC to resolve this failure to meet our amended covenant, and as of March 2019 March 31, 2019 not July 31, 2019 June 30, 2019. $1.2 zero six $250,000. On August 1, 2019, Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at CTI Industries (U.S.) and Flexo Universal (Mexico). Certain terms of the PNC Agreements include: ● Restrictive Covenants 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 December 31, 2017 4.75 to 1.00 June 30, 2018 4.50 to 1.00 June 30, 2018 4.25 to 1.00 September 30, 2018 not applicable December 31, 2018 3.50 to 1.00 March 31, 2019 not applicable June 30, 2019 3.00 to 1.00 September 30, 2019 and thereafter 2.75 to 1.00 o We are required to maintain a "Fixed Charge Coverage Ratio", which is defined as the ratio of (a) EBITDA for such fiscal period, minus Unfinanced Capital Expenditures made during such period, minus distributions (including tax distributions) and dividends made during such period, minus cash taxes paid during such period to (b) all Debt Payments made during such period. This ratio must not 1.1 1.0 The credit agreement provides for interest at varying rates in excess of the prime rate, depending on the level of senior debt to EBITDA over time. We also entered into a swap agreement with PNC Bank to fix the rate of interest for $3 3 2.25%. December 14, 2017 2019 no Failure to comply with these covenants has caused us to pay a higher rate of interest (by 2% may 2, As of December 2017, $1,099,000, $400,000, December 2017 January 2019, $600,000 181,000 No 2018 three six June 30, 2019, $15,000 $30,000, |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation; Changes in Equity | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 4 - Stock-Based Compensation; Changes in Equity The Company has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 The Company has applied the Black-Scholes model to value stock-based awards and issued warrants related to notes payable. 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 our common stock. The risk-free rate of interest is the related U.S. Treasury yield curve for periods within the expected term of the option at the time of grant. The dividend yield on our common stock is estimated to be 0% not 2019 2018. The Company’s net loss for the three six June 30, 2019 2018 $23,000 $44,000, 2019 $52,000 $172,000, June 30, 2019, $140,000 $40,000 2019, $56,000 2020. On April 10, 2009, June 5, 2009, 2009 “2009 2009 510,000 June 8, 2018, 2018 “2018 2018 300,000 no 8 12 not June 30, 2019, 471,144 A summary of the Company’s stock option activity, which includes grants of restricted stock, non-qualified stock options, incentive stock options, warrants and related information, is as follows: Shares under Option Weighted Average Exercise Price Balance at December 31, 2018 471,144 $ 3.95 Granted - - Cancelled/Expired - - Exercised/Issued - - Outstanding at June 30, 2019 471,144 $ 3.95 Exercisable at June 30, 2019 165,264 $ 4.05 The instruments above have an aggregate intrinsic value of $80,000, June 30, 2019 June 30, 2019. As described in Note 5, 20,000 January 2019. $67,000. 100,000 May 2019, $303,000 On January 11, 2019, $600,000 180,723 $3.32 December 20, 2018. |
Note 5 - Legal Proceedings
Note 5 - Legal Proceedings | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | Note 5 - 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 |
Note 6 - Other Comprehensive In
Note 6 - Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 6 - Other Comprehensive Income In the three six June 30, 2019, $297,000 The following table sets forth the accumulated balance of other comprehensive income and each component. Foreign Currency Items Total Accumulated Other Comprehensive Income Beginning balance as of January 1, 2019 $ (6,050,347 ) $ (6,050,347 ) Current period change, net of tax 297,209 297,209 Ending Balance as of June 30, 2019 (5,753,138 ) (5,753,138 ) |
Note 7 - Inventories, Net
Note 7 - Inventories, Net | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 7 Inventories, Net June 30 , 201 9 December 31, 201 8 Raw materials $ 2,085,908 $ 1,994,741 Work in process 3,057,682 3,052,224 Finished goods 15,508,804 14,934,581 In Transit 293,138 480,716 Allowance for excess quantities (426,292 ) (454,774 ) Total inventories $ 20,519,240 $ 20,007,488 |
Note 8 - Geographic Segment Dat
Note 8 - Geographic Segment Data | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 8 - Geographic Segment Data The Company has determined that it operates primarily in one Net Sales to Outside Customers Net Sales to Outside Customers For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 United States $ 9,095,000 $ 12,075,000 $ 17,855,000 $ 21,813,000 Europe $ 1,083,000 1,275,000 $ 2,358,000 2,637,000 Mexico $ 2,022,000 2,378,000 $ 4,103,000 4,564,000 United Kingdom $ 207,000 257,0000 $ 627,000 950,000 $ 12,407,000 $ 15,985,000 $ 24,943,000 $ 29,964,000 Total Assets at June 30, December 31, 2019 2018 United States $ 22,907,000 $ 25,354,000 Europe $ 3,105,000 3,052,000 Mexico $ 11,490,000 9,476,000 United Kingdom $ 1,146,000 879,000 Reserve $ (3,000,000 ) - $ 35,648,000 $ 38,761,000 |
Note 9 - Concentration of Credi
Note 9 - Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Not e 9 - Concentration of Credit Risk Concentration of credit risk with respect to trade accounts receivable is generally limited due to the large number of entities comprising the Company's customer base. The Company performs ongoing credit evaluations and provides an allowance for potential credit losses against the portion of accounts receivable which is estimated to be uncollectible. Such losses have historically been within management's expectations. During the three six June 30, 2019 2018, two 10% three June 30, 2019 2018 Three Months Ended Three Months Ended June 30 , 201 9 June 30 , 201 8 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 4,179,000 34 % $ 4,871,000 30 % Customer B $ 2,769,000 22 % $ 3,660,000 23 % Sales to these customers for the six June 30, 2019 2018 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 6,337,000 25 % $ 7.343,000 24 % Customer B $ 6,630,000 27 % $ 8,110,000 27 % As of June 30, 2019, $2,488,000 28%, $1,044,000 12%, June 30, 2018 $4,808,000 54%, $1,524,000 17% |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 10 - Related Party Transactions Stephen M. Merrick, Chief Executive Officer of the Company, is of counsel to the law firm of Vanasco Genelly and Miller PC which used to provide legal services to the Company. Legal fees paid by the Company to this firm for the three June 30, 2019 2018, none $16,000. six June 30, 2019 2018, none $88,000. John H. Schwan, through an investment entity, and Stephen M. Merrick, Chief Executive Officer of the Company, also through an investment entity own, in aggregate, a 50% three June 30, 2019 2018, $1,000 $259,000, six June 30, 2019 2018, $63,000 $442,000, June 30, 2019 2018, $1,379,000 $1,199,000, 28.5% not |
Note 11 - Derivative Instrument
Note 11 - Derivative Instruments; Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | Note 1 1 - Derivative Instruments; Fair Value The Company accounts for derivative instruments in accordance with U.S. GAAP, which requires that all derivative instruments be recognized on the balance sheet at fair value. We may one one June 30, 2019 December 31, 2018, one June 30, 2018. not no December 31, 2018. The interest rate swap we entered into December 14, 2017 three December 14, 2020) $3 2.25% 1.47% June 30, 2018 December 31, 2018 June 30, 2019. no March 2019. |
Note 12 - Leases
Note 12 - Leases | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 12 - Leases We adopted ASC Topic 842 January 1, 2019. January 1, 2019 842, not 840. not Upon adoption of ASC 842 $2.4 $1.0 $1.4 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 June 30, 2019: Assets As of June 30, 2019 Operating lease right-of-use assets 2,360,000 Accumulated amortization (487,000) Net lease assets 1,873,000 Liabilities Current Operating 1,006,000 Noncurrent Operating 867,000 Total lease liabilities 1,872,000 Weighted average remaining term (years) – operating leases (in years) 3 Weighted average discount rate – operating leases 10% During the three June 30, 2019, Operating right-of-use lease asset amortization 239,000 Financing lease asset amortization - Related interest expense - Total expense during three months ended June 30, 2019 239,000 During the six June 30, 2019, Operating right-of-use lease asset amortization 487,000 Financing lease asset amortization - Related interest expense - Total expense during six months ended June 30, 2019 487,000 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying condensed (a) consolidated balance sheet as of December 31, 2018, which has been derived from audited consolidated financial statements, and (b) the unaudited interim condensed consolidated financial statements have been prepared and, in the opinion of management, contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the consolidated financial position and the consolidated statements of comprehensive income and consolidated cash flows for the periods presented in conformity with generally accepted accounting principles for interim consolidated financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2018. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation and nature of operations: The condensed consolidated financial statements include the accounts of CTI Industries Corporation and its wholly-owned subsidiaries, CTI Balloons Limited and CTI Supply, Inc., its majority-owned subsidiaries, Flexo Universal, S. de R.L. de C.V. and CTI Europe gmbH, as well as the accounts of Venture Leasing S. A. de R. L., Venture Leasing L.L.C and Clever Container Company, L.L.C. (the “Company”). The last three entities have been consolidated as variable interest entities. All significant intercompany transactions and accounts have been eliminated in consolidation. The Company (i) designs, manufactures and distributes balloon and related novelty (candy and party related) products throughout the world, (ii) operates 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, and (iii) distributes vacuum sealing products and home organization products in the United States. We have announced our intention to divest our interest in Clever Container and deconsolidate that entity from our group. As we held an equity interest in Clever Container as of June 30, 2019, it remains consolidated as a variable interest entity. During June 2019, we determined that this and the two $3 |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities (“VIE’s”): The determination of whether or not three |
Use of Estimates, Policy [Policy Text Block] | Use of estimates: In preparing condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenue and expenses during the reporting period in the condensed consolidated financial statements and accompanying notes. Actual results may |
Earnings Per Share, Policy [Policy Text Block] | Earnings per share: Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period. As of June 30, 2019 2018, 471,144 three June 30, 2019 2018 none, |
New Accounting Pronouncements, Policy [Policy Text Block] | Significant Accounting Policies: The Company’s significant accounting policies are summarized in Note 2 December 31, 2018. no three six June 30, 2019, 842, Leases . On January 1, 2019, 842 12. 842 12 not On January 1, 2018, 606 606 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 |
Auditor Replacement Process [Policy Text Block] | Auditor Replacement Process: During April 2019, 10Q |
Note 3 - Debt (Tables)
Note 3 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Leverage Ratios [Table Text Block] | Fiscal Quarter Ratio December 31, 2017 4.75 to 1.00 June 30, 2018 4.50 to 1.00 June 30, 2018 4.25 to 1.00 September 30, 2018 not applicable December 31, 2018 3.50 to 1.00 March 31, 2019 not applicable June 30, 2019 3.00 to 1.00 September 30, 2019 and thereafter 2.75 to 1.00 |
Note 4 - Stock-based Compensa_2
Note 4 - Stock-based Compensation; Changes in Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Activity [Table Text Block] | Shares under Option Weighted Average Exercise Price Balance at December 31, 2018 471,144 $ 3.95 Granted - - Cancelled/Expired - - Exercised/Issued - - Outstanding at June 30, 2019 471,144 $ 3.95 Exercisable at June 30, 2019 165,264 $ 4.05 |
Note 6 - Other Comprehensive _2
Note 6 - Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Items Total Accumulated Other Comprehensive Income Beginning balance as of January 1, 2019 $ (6,050,347 ) $ (6,050,347 ) Current period change, net of tax 297,209 297,209 Ending Balance as of June 30, 2019 (5,753,138 ) (5,753,138 ) |
Note 7 - Inventories, Net (Tabl
Note 7 - Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30 , 201 9 December 31, 201 8 Raw materials $ 2,085,908 $ 1,994,741 Work in process 3,057,682 3,052,224 Finished goods 15,508,804 14,934,581 In Transit 293,138 480,716 Allowance for excess quantities (426,292 ) (454,774 ) Total inventories $ 20,519,240 $ 20,007,488 |
Note 8 - Geographic Segment D_2
Note 8 - Geographic Segment Data (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Net Sales to Outside Customers Net Sales to Outside Customers For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 United States $ 9,095,000 $ 12,075,000 $ 17,855,000 $ 21,813,000 Europe $ 1,083,000 1,275,000 $ 2,358,000 2,637,000 Mexico $ 2,022,000 2,378,000 $ 4,103,000 4,564,000 United Kingdom $ 207,000 257,0000 $ 627,000 950,000 $ 12,407,000 $ 15,985,000 $ 24,943,000 $ 29,964,000 Total Assets at June 30, December 31, 2019 2018 United States $ 22,907,000 $ 25,354,000 Europe $ 3,105,000 3,052,000 Mexico $ 11,490,000 9,476,000 United Kingdom $ 1,146,000 879,000 Reserve $ (3,000,000 ) - $ 35,648,000 $ 38,761,000 |
Note 9 - Concentration of Cre_2
Note 9 - Concentration of Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Three Months Ended June 30 , 201 9 June 30 , 201 8 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 4,179,000 34 % $ 4,871,000 30 % Customer B $ 2,769,000 22 % $ 3,660,000 23 % Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 6,337,000 25 % $ 7.343,000 24 % Customer B $ 6,630,000 27 % $ 8,110,000 27 % |
Note 12 - Leases (Tables)
Note 12 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Assets and Liabilities [Table Text Block] | Assets As of June 30, 2019 Operating lease right-of-use assets 2,360,000 Accumulated amortization (487,000) Net lease assets 1,873,000 Liabilities Current Operating 1,006,000 Noncurrent Operating 867,000 Total lease liabilities 1,872,000 Weighted average remaining term (years) – operating leases (in years) 3 Weighted average discount rate – operating leases 10% |
Lease, Cost [Table Text Block] | Operating right-of-use lease asset amortization 239,000 Financing lease asset amortization - Related interest expense - Total expense during three months ended June 30, 2019 239,000 Operating right-of-use lease asset amortization 487,000 Financing lease asset amortization - Related interest expense - Total expense during six months ended June 30, 2019 487,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2019USD ($)shares | Jun. 30, 2019shares | Jun. 30, 2018shares | |
Common Stock, Capital Shares Reserved for Future Issuance | 471,144 | 471,144 | 471,144 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | |
Europe [Member] | |||
Restructuring and Related Cost, Number of Subsidiaries Eliminated | 2 | 2 | |
Restructuring Charges, Total | $ | $ 3 |
Note 2 - Liquidity and Going _2
Note 2 - Liquidity and Going Concern (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income (Loss) Attributable to Parent, Total | $ (3,094,688) | $ 250,204 | $ (3,975,108) | $ (212,804) | $ (3,600,000) | $ (1,600,000) | $ 700,000 |
Note 3 - Debt (Details Textual)
Note 3 - Debt (Details Textual) | Jan. 11, 2019USD ($)shares | Oct. 08, 2018USD ($) | Jun. 08, 2018 | Dec. 14, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Interest Expense, Total | $ 516,161 | $ 550,780 | $ 1,063,067 | $ 1,114,840 | |||||||
PNC [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||||||||
Derivative Liability, Notional Amount | $ 3,000,000 | ||||||||||
Derivative, Term of Contract | 3 years | ||||||||||
Derivative, Fixed Interest Rate | 2.25% | ||||||||||
Promissory Note [Member] | John H Schwan [Member] | |||||||||||
Due to Related Parties, Total | $ 1,099,000 | ||||||||||
Interest Payable | 400,000 | ||||||||||
Debt Conversion, Original Debt, Amount | $ 600,000 | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 180,723 | ||||||||||
Repayments of Related Party Debt | 0 | 0 | $ 0 | ||||||||
Interest Expense, Total | 15,000 | 30,000 | |||||||||
PNC [Member] | PNC Agreements [Member] | |||||||||||
Debt Instrument, Temporary Over-Advance | 1,200,000 | 1,200,000 | |||||||||
Debt Instrument, Temporary Over-Advance, End Balance | $ 0 | $ 0 | |||||||||
Debt Instrument, Temporary Over-Advance, Term | 42 days | ||||||||||
Debt instrument, Amendment Fee | $ 250,000 | ||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% | ||||||||||
PNC [Member] | PNC Agreements [Member] | Maximum [Member] | |||||||||||
Fixed Charge Coverage Ratio | 1.1 | ||||||||||
PNC [Member] | PNC Agreements [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 18,000,000 | ||||||||||
PNC [Member] | PNC Agreements [Member] | Term Loan [Member] | |||||||||||
Long-term Debt, Total | $ 6,000,000 | ||||||||||
PNC [Member] | PNC Agreements, Amendment Two [Member] | |||||||||||
Debt Instrument, Funding Proceeds Used to Repay Term Loan | $ 2,000,000 | $ 5,000,000 | |||||||||
Debt Instrument, Covenant, Required Proceeds from Equity Issuance | 7,500,000 | ||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 0 |
Note 3 - Debt - Leverage Ratios
Note 3 - Debt - Leverage Ratios (Details) | 3 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Leverage ratio | 3 | 3.5 | 4.25 | 4.5 | 4.75 | |||
Forecast [Member] | ||||||||
Leverage ratio | 2.75 |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation; Changes in Equity (Details Textual) - USD ($) | Jan. 11, 2019 | May 31, 2019 | Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 20, 2018 | Jun. 08, 2018 | Apr. 10, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |||||||||
Dividends, Common Stock, Cash | $ 0 | $ 0 | |||||||||
Share-based Payment Arrangement, Expense | $ 23,000 | $ 52,000 | 44,000 | $ 172,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 140,000 | 140,000 | |||||||||
Expected Recognized Compensation Expenses, Remainder of the Fiscal Year | 40,000 | 40,000 | |||||||||
Expected Recognized Compensation Expenses in Year Two | $ 56,000 | $ 56,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 471,144 | 471,144 | 471,144 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 80,000 | $ 80,000 | |||||||||
Stock Issued During Period, Value, New Issues | $ 303,000 | ||||||||||
Share Price | $ 3.32 | ||||||||||
Promissory Note [Member] | John H Schwan [Member] | |||||||||||
Debt Conversion, Original Debt, Amount | $ 600,000 | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 180,723 | ||||||||||
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 | 100,000 | 20,000 | |||||||||
Stock Issued During Period, Value, New Issues | $ 303,000 | $ 67,000 | |||||||||
Stock Incentive Plan 2009 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 510,000 | ||||||||||
Stock Incentive Plan 2018 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 471,144 | 471,144 |
Note 4 - Stock-based Compensa_4
Note 4 - Stock-based Compensation; Changes in Equity - Option Activity (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Outstanding, beginning of period (in shares) | shares | 471,144 |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 3.95 |
Granted (in shares) | shares | |
Granted (in dollars per share) | $ / shares | |
Cancelled/Expired (in shares) | shares | |
Cancelled/Expired (in dollars per share) | $ / shares | |
Exercised/Issued (in shares) | shares | |
Exercised/Issued (in dollars per share) | $ / shares | |
Outstanding at the end of period (in shares) | shares | 471,144 |
Outstanding at the end of period (in dollars per share) | $ / shares | $ 3.95 |
Exercisable at the end of period (in shares) | shares | 165,264 |
Exercisable at the end of period (in dollars per share) | $ / shares | $ 4.05 |
Note 5 - Legal Proceedings (Det
Note 5 - Legal Proceedings (Details Textual) - Disputed Compensation Amounts by Claimants [Member] - God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] - USD ($) | 1 Months Ended | |
May 31, 2019 | Jan. 31, 2019 | |
Stock Issued During Period, Shares, New Issues | 100,000 | 20,000 |
Payments for Legal Settlements | $ 5,000 | |
Loss Contingency Accrual, Ending Balance | 300,000 | |
Minimum [Member] | ||
Royalty Monthly Payout, Amount | $ 7,667 | |
Common Stock [Member] | ||
Stock Issued During Period, Shares, New Issues | 20,000 |
Note 6 - Other Comprehensive _3
Note 6 - Other Comprehensive Income (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Total | $ 297,000 | $ 297,000 |
Note 6 - Other Comprehensive _4
Note 6 - Other Comprehensive Income - Accumulated Other Comprehensive Loss Balances (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Balance | $ 6,255,729 |
Balance | 3,447,739 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (6,050,347) |
Accumulated Other Comprehensive Loss, Current period change | 297,209 |
Balance | (5,753,138) |
AOCI Attributable to Parent [Member] | |
Balance | (6,050,347) |
Accumulated Other Comprehensive Loss, Current period change | 297,209 |
Balance | $ (5,753,138) |
Note 7 - Inventories, Net - Inv
Note 7 - Inventories, Net - Inventories (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Raw materials | $ 2,085,908 | $ 1,994,741 |
Work in process | 3,057,682 | 3,052,224 |
Finished goods | 15,508,804 | 14,934,581 |
In Transit | 293,138 | 480,716 |
Allowance for excess quantities | (426,292) | (454,774) |
Total inventories | $ 20,519,240 | $ 20,007,488 |
Note 8 - Geographic Segment D_3
Note 8 - Geographic Segment Data (Details Textual) | 3 Months Ended |
Mar. 31, 2019 | |
Number of Operating Segments | 1 |
Note 8 - Geographic Segment D_4
Note 8 - Geographic Segment Data - Financial Information by Geographic Area (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Sales to outside customers | $ 12,406,840 | $ 15,984,726 | $ 24,943,229 | $ 29,963,903 | |
Assets | 35,648,308 | 35,648,308 | $ 38,760,834 | ||
Reserve | (3,000,000) | (3,000,000) | |||
UNITED STATES | |||||
Sales to outside customers | 9,095,000 | 12,075,000 | 17,855,000 | 21,813,000 | |
Assets | 22,907,000 | 22,907,000 | 25,354,000 | ||
Europe [Member] | |||||
Sales to outside customers | 1,083,000 | 1,275,000 | 2,358,000 | 2,637,000 | |
Assets | 3,105,000 | 3,105,000 | 3,052,000 | ||
MEXICO | |||||
Sales to outside customers | 2,022,000 | 2,378,000 | 4,103,000 | 4,564,000 | |
Assets | 11,490,000 | 11,490,000 | 9,476,000 | ||
UNITED KINGDOM | |||||
Sales to outside customers | 207,000 | $ 2,570,000 | 627,000 | $ 950,000 | |
UKRAINE | |||||
Assets | $ 1,146,000 | $ 1,146,000 | $ 879,000 |
Note 9 - Concentration of Cre_3
Note 9 - Concentration of Credit Risk (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Revenue Benchmark [Member] | ||||
Number of Major Customers | 2 | 2 | 2 | 2 |
Revenue Benchmark [Member] | Customer One [Member] | ||||
Concentration Risk, Percentage | 34.00% | 30.00% | 25.00% | 24.00% |
Revenue Benchmark [Member] | Customer Two [Member] | ||||
Concentration Risk, Percentage | 22.00% | 23.00% | 27.00% | 27.00% |
Accounts Receivable [Member] | Customer One [Member] | ||||
Accounts Receivable, before Allowance for Credit Loss | $ 2,488,000 | $ 4,808,000 | $ 2,488,000 | $ 4,808,000 |
Concentration Risk, Percentage | 28.00% | 54.00% | ||
Accounts Receivable [Member] | Customer Two [Member] | ||||
Accounts Receivable, before Allowance for Credit Loss | $ 1,044,000 | $ 1,524,000 | $ 1,044,000 | $ 1,524,000 |
Concentration Risk, Percentage | 12.00% | 17.00% |
Note 9 - Concentration of Cre_4
Note 9 - Concentration of Credit Risk - Concentration of Credit Risk, Net Sales (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 12,406,840 | $ 15,984,726 | $ 24,943,229 | $ 29,963,903 |
Customer One [Member] | ||||
Net Sales | $ 4,179,000 | $ 4,871,000 | $ 6,337,000 | $ 7.343 |
Customer One [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Percent of net sales | 34.00% | 30.00% | 25.00% | 24.00% |
Customer Two [Member] | ||||
Net Sales | $ 2,769,000 | $ 3,660,000 | $ 6,630,000 | $ 8,110,000 |
Customer Two [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Percent of net sales | 22.00% | 23.00% | 27.00% | 27.00% |
Note 10 - Related Party Trans_2
Note 10 - Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Legal Fees | $ 0 | $ 16,000 | $ 0 | $ 88,000 |
Clever Container [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 28.50% | 28.50% | ||
John H Schwan And Stephen M Merrick [Member] | Clever Container [Member] | ||||
Ownership Percentage | 50.00% | 50.00% | ||
Schwan Incorporated [Member] | ||||
Related Party Transaction, Amounts of Transaction | $ 1,000 | 259,000 | $ 63,000 | 442,000 |
Due to Related Parties, Noncurrent, Total | $ 1,379,000 | $ 1,199,000 | $ 1,379,000 | $ 1,199,000 |
Note 11 - Derivative Instrume_2
Note 11 - Derivative Instruments; Fair Value (Details Textual) - PNC [Member] - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] | Dec. 14, 2017USD ($) |
Derivative, Term of Contract | 3 years |
Derivative Liability, Notional Amount | $ 3,000,000 |
Derivative, Fixed Interest Rate | 2.25% |
Derivative, Variable Interest Rate | 1.47% |
Note 12 - Leases (Details Textu
Note 12 - Leases (Details Textual) - USD ($) | Jan. 01, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Assets, Noncurrent, Excluding Property, Plant, and Equipment | $ 900,225 | $ 1,935,119 | |
Liabilities, Current, Total | 29,383,038 | 30,208,712 | |
Liabilities, Noncurrent, Total | $ 2,817,531 | $ 2,296,393 | |
Accounting Standards Update 2016-02 [Member] | |||
Assets, Noncurrent, Excluding Property, Plant, and Equipment | $ 2,400,000 | ||
Liabilities, Current, Total | 1,000,000 | ||
Liabilities, Noncurrent, Total | 1,400,000 | ||
Cumulative Effect on Retained Earnings, Net of Tax, Total | $ 0 |
Note 12 - Leases - Lease Positi
Note 12 - Leases - Lease Position (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Operating lease right-of-use assets | $ 2,360,000 | $ 2,360,000 | |
Accumulated amortization | (239,000) | (487,000) | |
Net lease assets | 1,872,470 | 1,872,470 | |
Operating | 1,005,650 | 1,005,650 | 0 |
Operating | 866,820 | 866,820 | |
Total lease liabilities | $ 1,872,000 | $ 1,872,000 | |
Weighted average remaining term (years) – operating leases (in years) (Year) | 3 years | 3 years | |
Weighted average discount rate – operating leases | 10.00% | 10.00% |
Note 12 - Leases - Lease Cost (
Note 12 - Leases - Lease Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Operating right-of-use lease asset amortization | $ 239,000 | $ 487,000 |
Financing lease asset amortization | ||
Related interest expense | ||
Total expense during three months ended June 30, 2019 | $ 239,000 | $ 487,000 |