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 | 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 Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 3,835,950 | |
Entity Shell Company | false | |
Document Type | 10-Q/A | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | true | |
Amendment Description | Amendment No. 1 on Form 10-Q/A amends and restates certain items noted below in the Quarterly Report on Form 10-Q of Yunhong CTI Ltd. (formerly CTI Industries Corporation) (the "Company") for the quarter ended June 30, 2019, as originally filed with the Securities and Exchange Commission on August 19, 2019 (the "Original Filing"). This Form 10-Q/A amends the Original Filing to reflect the following changes. First, the Original Filing was made without the benefit of auditor review, as noted in the Original Filing, and this amendment reflects the inclusion of outside auditor participation. Second, additional information of subsequent events is detailed in this amended filing. Third, we adjusted the financial statement line items on which the $3 million impairment charge was recorded and added footnote disclosure to further describe the impairment charge. Finally, we adjusted our lease accounting entry on the balance sheet. As of January 3, 2020, the Audit Committee of the Board approved the engagement of RBSM, LLP ("RBSM") as the Company's independent registered public accounting firm for the Company’s fiscal year ended December 31, 2019. This Form 10-Q/A is being prepared with the benefit of auditor review and will constitute our amended filing. This Form 10-Q/A has also been updated to reflect disclosure of subsequent events that have occurred after the balance sheet date, but before the issuance of the associated financial statements. The subsequent events included the Company's decision to exit its underperforming international subsidiaries, exit a significant product line, change its capital structure and focus its efforts on its US-based foil balloon and related product offerings. For the convenience of the reader, this Form 10-Q/A amends and restates only the following financial statements and disclosures that were impacted from the changes: Item No. 1 – Financial Statements Item No. 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations Item No. 4 – Controls and Procedures Item No. 6 – Exhibits Except as described above, no other changes have been made to the Original Filing. | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | 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 $515,000 and $85,000, respectively) | 8,398,010 | 10,830,555 |
Inventories, net (VIE $242,000 and $340,000, respectively) | 19,266,094 | 20,007,488 |
Prepaid expenses (VIE $106,000 and $127,000, respectively) | 385,399 | 858,158 |
Other current assets | 1,191,924 | 886,383 |
Total current assets | 29,419,724 | 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 | 87,857 | 150,272 |
Property, Plant and Equipment, Gross | 31,993,055 | 31,935,436 |
Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) | (28,623,748) | (28,120,455) |
Total property, plant and equipment, net | 3,369,307 | 3,814,981 |
Other assets: | ||
Goodwill (VIE $0 and $440,000, respectively) | 0 | 1,473,176 |
Net deferred income tax asset | 135,094 | 135,094 |
Operating lease right-of-use | 2,127,636 | |
Other assets | 174,935 | 326,849 |
Total other assets | 2,437,665 | 1,935,119 |
TOTAL ASSETS | 35,226,695 | 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 | 4,222,104 | 4,432,320 |
Notes payable affiliates - current portion | 11,727 | 10,821 |
Operating Lease Liabilities | 1,154,853 | 0 |
Accrued liabilities (VIE $35,000 and $89,000, respectively) | 1,285,064 | 1,866,796 |
Total current liabilities | 28,811,925 | 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) | 743,675 | 399,912 |
Operating Lease Liabilities | 972,782 | |
Notes payable - officers, subordinated | 1,027,280 | 1,597,019 |
Deferred gain (non current) | 257,348 | 100,340 |
Total long-term debt, net of current portion | 3,223,493 | 2,296,393 |
Total liabilities | 32,035,418 | 32,505,105 |
Yunhong CTI, LTD 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 | (6,604,052) | (2,865,486) |
Accumulated other comprehensive loss | (5,753,138) | (6,050,347) |
Less: Treasury stock, 43,658 shares | (160,784) | (160,784) |
Total CYunhong CTI, LTD stockholders' equity | 4,842,352 | 7,328,314 |
Noncontrolling interest | (1,651,075) | (1,072,585) |
Total Equity | 3,191,277 | 6,255,729 |
TOTAL LIABILITIES AND EQUITY | $ 35,226,695 | $ 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 | 8,398,010 | 10,830,555 |
Inventories, net | 19,266,094 | 20,007,488 |
Prepaid expenses | 385,399 | 858,158 |
Office furniture and equipment | 2,685,450 | 2,649,280 |
Goodwill | 0 | 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 | 1,285,064 | 1,866,796 |
Notes payable | $ 743,675 | $ 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 [Member] | ||
Cash and cash equivalents | $ 2,000 | $ 57,000 |
Allowance for doubtful accounts | 515,000 | 85,000 |
Inventories, net | 242,000 | 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 | 0 | 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 | 11,122,253 | 12,189,204 | 21,662,471 | 23,299,990 |
Gross profit | 1,284,587 | 3,795,522 | 3,280,758 | 6,663,913 |
Operating expenses: | ||||
General and administrative | 1,624,548 | 1,680,490 | 3,472,446 | 3,564,536 |
Selling | 415,038 | 958,796 | 852,603 | 1,817,333 |
Advertising and marketing | 178,479 | 331,609 | 351,056 | 628,489 |
Impairment of long-lived assets | 258,566 | 1,252,283 | (29,386) | |
Gain on sale of assets | (23,662) | (22,998) | (47,209) | (47,413) |
Total operating expenses | 2,452,969 | 2,947,897 | 6,140,638 | 5,962,945 |
Income (loss) from operations | (1,168,382) | 847,625 | (2,859,880) | 700,968 |
Other (expense) income: | ||||
Interest expense | (516,161) | (550,780) | (1,063,067) | (1,114,840) |
Interest income | 11,389 | 11,043 | ||
Other (expense) income | (85,481) | (394,958) | ||
Foreign currency loss | 9,444 | (13,246) | 849 | 17,783 |
Total other expense, net | (592,198) | (552,637) | (1,457,176) | (1,086,014) |
Net income (loss) before taxes | (1,760,580) | 294,988 | (4,317,056) | (385,046) |
Income tax expense (benefit) | 89,281 | (120,202) | ||
Net income (loss) | (1,760,580) | 205,707 | (4,317,056) | (264,844) |
Less: Net (loss) income attributable to noncontrolling interest | (516,102) | (44,497) | (578,490) | (52,040) |
Net income attributable toYunhong CTI, LTD | (1,244,478) | 250,204 | (3,738,566) | (212,804) |
Other Comprehensive Income (Loss) | ||||
Foreign currency adjustment | 61,333 | (775,497) | 297,209 | (342,432) |
Comprehensive Loss | $ (1,183,145) | $ (525,293) | $ (3,441,357) | $ (555,236) |
Basic income (loss) per common share (in dollars per share) | $ (0.32) | $ 0.07 | $ (0.97) | $ (0.06) |
Diluted income (loss) per common share (in dollars per share) | $ (0.32) | $ 0.07 | $ (0.97) | $ (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 loss | $ (4,317,056) | $ (264,844) |
Depreciation and amortization | 522,670 | 701,839 |
Amortization of deferred gain on sale/leaseback | (54,948) | |
Other | 261,075 | |
Provision for losses on accounts receivable | 393,938 | (55,320) |
Provision for losses on inventories | 1,278,561 | (10,471) |
Impairments of Prepaids, Current & Non Current Assets | 168,931 | |
Impairment of long-lived assets | 1,252,283 | (29,386) |
Stock based compensation | 52,396 | 105,745 |
Deferred income taxes | (90,206) | |
Loss on disposition of asset | 17,480 | |
Change in assets and liabilities: | ||
Accounts receivable | 2,162,480 | (671,380) |
Inventories | (474,804) | (483,573) |
Prepaid expenses and other assets | 530,172 | 115,988 |
Trade payables | 1,998,495 | 800,813 |
Accrued liabilities | (593,960) | (285,976) |
Net cash provided by (used in) operating activities | 3,197,713 | (166,771) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (72,662) | (18,193) |
Net cash (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) |
Cash paid for deferred financing fees | (55,170) | (59,530) |
Proceeds from issuance of long-term debt | 650,000 | |
Net cash provided by (used in) financing activities | (3,726,435) | 425,814 |
Effect of exchange rate changes on cash | 351,532 | 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 |
Cash payments for taxes | 300,000 | |
Conversion from Accounts Payable To Common Stock [Member] | ||
Supplemental disclosure of cash flow information: | ||
Common stock issued | 303,000 | |
Conversion from Notes Payable To Common Stock [Member] | ||
Supplemental disclosure of cash flow information: | ||
Common stock issued | $ 600,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Restated) - 6 months ended Jun. 30, 2019 - USD ($) | 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 |
Note conversion - Schwan (in shares) | 180,723 | ||||||
Note conversion - Schwan | 600,000 | 600,000 | |||||
Stock Issued (in shares) | 120,000 | ||||||
Stock Issued | 303,000 | 303,000 | |||||
Stock Option Expense | 52,396 | 52,396 | |||||
Net loss | (3,738,566) | (578,490) | (4,317,056) | ||||
Foreign currency translation | 297,209 | 297,209 | |||||
Balance June 30, 2019, restated (in shares) at Jun. 30, 2019 | 3,879,608 | (43,658) | |||||
Balance at Jun. 30, 2019 | $ 13,898,494 | $ 3,461,833 | $ (6,604,052) | $ (5,753,138) | $ (160,784) | $ (1,651,075) | $ 3,191,277 |
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 Yunhong CTI Ltd. (formerly 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, Variable Interest Entities (“VIEs”): 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, January 3 rd 2020, December 31 st 2019. 10 10 Prior Period Reclassification Certain amounts in prior periods have been reclassified to conform with current period presentation and had no Recently Adopted Accounting Pronouncements In February 2016, No. 2016 02 Leases 842 842” 840 Leases 840 not twelve twelve may 842 December 31, 2019. December 31, 2018 840 January 1, 2019 not not 840 , 842 Other key practical expedients elected by the Company (as a lessee) relate to maintaining leases with an initial term of 12 not two two not $2.8 no |
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, 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. These changes in cash flows have created strain within our operations and have therefore increased our desire to incorporate additional funding resources. Management’s plans include: ( 1 ( 2 ( 3 ( 4 2018, ( 5 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 2019 |
Note 3 - Debt
Note 3 - Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 3 During December 2017, $6 $18 December 2022. Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at Yunhong CTI, LTD (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 Yunhong CTI, LTD (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 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 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 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 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, 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 293,136 480,716 Allowance for excess quantities (1,679,438 ) (454,774 ) Total inventories $ 19,266,094 $ 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 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 $ 207,000 257,000 $ 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 $ 20,839,000 $ 25,354,000 Europe $ 2,118,000 3,052,000 Mexico $ 11,490,000 9,476,000 United Kingdom $ 780,000 879,000 $ 35,227,000 $ 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] | Note 9 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, 2019 June 30, 2018 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 30%, $1,044,000 12%, June 30, 2018 $4,808,000 57%, $1,524,000 18% |
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% |
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 11 - 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. 2019 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 $2.8 $1.1 $1.7 not 842 no We determine if an arrangement is a lease at inception. Most of our operating leases do not 12 not not January 1, 2019 The table below describes our lease position as of June 30, 2019: Assets As of June 30, 2019 Operating lease right-of-use assets 2,850,000 Accumulated amortization (722,000 ) Net lease assets 2,128,000 Liabilities Current Operating 1,155,000 Noncurrent Operating 973,000 Total lease liabilities 2,128,000 Weighted average remaining term (years) – operating leases (years) 3 Weighted average discount rate – operating leases 11.25 % During the three June 30, 2019, Operating right-of-use lease asset amortization 361,000 Total expense during three months ended June 30, 2019 361,000 During the six June 30, 2019, Operating right-of-use lease asset amortization 722,000 Total expense during six months ended June 30, 2019 722,000 Operating lease expense were approximately $379,000 three $758,000 six June 30, 2019. not $361,000 three $722,000 six June 30, 2019. The following table summarizes the maturities of our lease liabilities for all operating leases as of June 30, 2019 (in thousands) 06/30/2019 2019 829 2020 724 2021 757 2022 and thereafter 167 Total lease payments 2,477 less: Imputed interest -349 Present value of lease liabilities 2,128 |
Note 13 - Summary of Subsequent
Note 13 - Summary of Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 13 In July 2019 not July 19, 2019, fourth 2019 first 2020. third 2019, October 2019, not December 31, 2019. 90 three March 31, 2019, $2.2 2020, not first 2020. January 3, 2020 February 24, 2020 April 13, 2020, ( 500,000 ten $10.00 $5,000,000 may may, 200,000 $10.00 January 13, 2020, first $2,500,000. one first second 2020 May 15, 2020 third 2020 January 13, 2020, March 12, 2020, 492,660 $4,926,600. April 1, 2020, $482,000 48,200 may 19. may may December 2019, 19 19 19 19 may may may may may $1 19 not |
Note 14 - Impairment
Note 14 - Impairment | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | Note 14 Impairment – In connection with management’s intentions to simplify our operations and organizational structure, we identified impairments of $2.9 two first 2019, $1.25 $66,000 $1.3M $280,000 |
Note 15 - Restatement of Financ
Note 15 - Restatement of Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Accounting Changes and Error Corrections [Text Block] | Note 15 As of January 3, 2020, December 31, 2019. 10 This Form 10 The company had previously included a non-cash charge of $3,000,000 second 2019 10 $237,000 Yunhong CTI, LTD (f/k/a CTI Industries Corporation) Condensed Consolidated Balance Sheets June 30, 2019 As Previously Reported Adjustments As Restated ASSETS Current assets: Cash and cash equivalents (VIE $2,000 and $57,000, respectively) $ 178,298 $ - $ 178,298 Accounts receivable, (less allowance for doubtful accounts of $515,000 and $85,000, respectively) 8,884,291 (486,281 ) 8,398,010 Inventories, net (VIE $242,000 and $340,000, respectively) 20,519,240 (1,253,146 ) 19,266,094 Prepaid expenses (VIE $106,000 and $127,000, respectively) 394,797 (9,398 ) 385,399 Other current assets 1,342,896 (150,972 ) 1,191,924 Total current assets 31,319,522 (1,899,798 ) 29,419,724 Property, plant and equipment: Machinery and equipment 23,880,732 23,880,732 Building 3,374,334 3,374,334 Office furniture and equipment (VIE $303,000 and $303,000, respectively) 2,685,450 2,685,450 Intellectual property 783,179 783,179 Land 250,000 250,000 Leasehold improvements 413,053 413,053 Fixtures and equipment at customer locations 518,450 518,450 Projects under construction 180,955 (93,098 ) 87,857 32,086,153 (93,098 ) 31,993,055 Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) (28,657,592 ) 33,844 (28,623,748 ) - Total property, plant and equipment, net 3,428,561 (59,254 ) 3,369,307 Other assets: Goodwill (VIE $0 and $440,000, respectively) 1,473,176 (1,473,176 ) Net deferred income tax asset 539,305 (404,211 ) 135,094 Operating lease right-of-use 1,872,470 255,165 2,127,636 Other non-current assets (3,000,000 ) 3,000,000 Other assets 15,274 159,661 174,935 - Total other assets 900,225 1,537,439 2,437,665 - TOTAL ASSETS $ 35,648,308 $ (421,613 ) $ 35,226,695 LIABILITIES AND EQUITY Current liabilities: Checks written in excess of bank balance (VIE $2,000 and $7,000, respectively) $ 1,030,369 $ 1,030,369 Trade payables (VIE $77,000 and $62,000, respectively) 8,678,165 8,678,165 Line of credit (VIE $232,000 and $267,000, respectively) 12,429,643 12,429,643 Notes payable - current portion 4,522,104 (300,000 ) 4,222,104 Notes payable affiliates - current portion 11,727 11,727 Operating Lease Liabilities 1,005,650 149,203 1,154,853 Accrued liabilities (VIE $35,000 and $89,000, respectively) 1,705,380 (420,316 ) 1,285,064 - Total current liabilities 29,383,038 (571,113 ) 28,811,925 Long-term liabilities: Notes payable - affiliates 222,408 222,408 Notes payable, net of current portion (VIE $30,000 and $27,000, respectively) 443,675 300,000 743,675 Operating Lease Liabilities 866,820 105,962 972,782 Notes payable - officers, subordinated 1,027,280 - 1,027,280 Deferred gain (non current) 257,348 - 257,348 Total long-term debt, net of current portion 2,817,531 405,962 3,223,493 - Total liabilities 32,200,569 (165,151) 32,035,418 Equity: Yunhong CTI, LTD 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 3,461,832 Accumulated earnings (6,840,594 ) 236,542 (6,604,052 ) Accumulated other comprehensive loss (5,753,138 ) (5,753,138 ) Less: Treasury stock, 43,658 shares (160,784 ) (160,784 ) Total Yunhong CTI, LTD stockholders' equity 4,605,810 236,542 4,842,352 Noncontrolling interest (1,158,071 ) (493,004 ) (1,651,075 ) Total Equity 3,447,739 (256,462 ) 3,191,277 TOTAL LIABILITIES AND EQUITY $ 35,648,308 $ (421,613 ) $ 35,226,695 Yunhong CTI, LTD (f/k/a CTI Industries Corporation) Condensed Consolidated Statements of Comprehensive Income (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2019 2019 2019 As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated Net Sales $ 12,406,840 $ - $ 12,406,840 $ 24,943,229 $ - $ 24,943,229 - - Cost of Sales 9,869,107 1,253,146 11,122,253 20,409,325 1,253,146 21,662,471 - - Gross profit 2,537,733 (1,253,146 ) 1,284,587 4,533,904 (1,253,146 ) 3,280,758 - Operating expenses: - General and administrative 1,531,125 93,423 1,624,548 3,587,197 (114,751) 3,472,446 Selling 415,038 - 415,038 852,603 - 852,603 Advertising and marketing 270,355 (91,876) 178,479 544,235 (193,179) 351,056 Impairment on long-lived assets 258,566 258,566 1,511,742 1,511,742 Gain on sale of assets (23,662 ) - (23,662 ) (47,209 ) - (47,209 ) Total operating expenses 2,192,856 260,113 2,452,969 4,936,826 1,203,812 6,140,638 - Income from operations 344,877 (1,513,259 ) (1,168,382 ) (402,922 ) (2,456,958 ) (2,859,880 ) - - Other (expense) income: - - Interest expense (516,161 ) - (516,161 ) (1,063,067 ) - (1,063,067 ) Interest income 335 (335) 336 (336) Other Expense (3,000,000 ) 2,914,519 (85,481) (3,000,000 ) 2,605,042 (394,958) Foreign currency loss 9,444 - 9,444 849 - 849 - - Total other expense, net (3,506,382 ) 2,914,184 (592,198 ) (4,061,882 ) 2,604,706 (1,457,176 ) - Net income before taxes (3,161,505 ) 1,400,925 (1,760,580 ) (4,464,804 ) 147,748 (4,317,056 ) - - Income tax expense (43,719 ) 43,719 (404,210 ) 404,210 - Net income (3,117,786 ) 1,357,206 (1,760,580 ) (4,060,594 ) (256,462 ) (4,317,056 ) - Less: Net (loss) income attributable to noncontrolling interest (23,098 ) (493,004 ) (516,102 ) (85,486 ) (493,004 ) (578,490 ) - Net income attributable to Yunhong CTI, LTD $ (3,094,687 ) $ 1,850,210 $ (1,244,478 ) $ (3,975,108 ) $ 236,542 $ (3,738,566 ) Other Comprehensive Income (Loss) Foreign currency adjustment 61,333 - 61,333 297,209 - 297,209 Comprehensive Income (Loss) $ (3,033,355 ) $ 1,850,210 $ (1,183,145 ) $ (3,677,899 ) $ 236,542 $ (3,441,357 ) Basic income per common share $ (0.81 ) $ 0.48 $ (0.32 ) $ (1.04 ) $ 0.06 $ (0.97 ) Diluted income per common share $ (0.81 ) $ 0.48 $ (0.32 ) $ (1.04 ) $ 0.06 $ (0.97 ) Weighted average number of shares and equivalent shares of common stock outstanding: Basic 3,835,950 - 3,835,950 3,835,950 - 3,835,950 - - Diluted 3,835,950 - 3,835,950 3,835,950 - 3,835,950 Yunhong CTI, LTD (f/k/a CTI Industries Corporation) Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, 2019 2019 As Previously Reported Adjustments As Restated Cash flows from operating activities: Net loss $ (4,060,594 ) $ (256,462 ) $ (4,317,056 ) Depreciation and amortization 522,670 522,670 Operating cash flows from operating leases 487,239 (487,239) Amortization of deferred gain on sale/leaseback 155,433 (210,381) (54,948) Other 261,075 261,075 Provision for losses on accounts receivable 7,657 386,281 393,938 Provision for losses on inventories 25,415 1,253,146 1,278,561 Impairment of Prepaids, Current & Non Current Assets 168,931 168,931 Impairment of long-lived assets 1,252,283 1,252,283 Stock Based Compensation 52,396 52,396 Deferred income taxes (404,210 ) 404,210 Loss on disposition of asset 17,480 - 17,480 Change in assets and liabilities: - Accounts receivable 2,001,248 161,232 2,162,480 Other non-current assets 3,000,000 (3,000,000 ) Inventories (474,804 ) - (474,804 ) Prepaid expenses and other assets (140,125 ) 670,297 530,172 Trade payables 1,921,337 77,158 1,998,495 Accrued liabilities (476,644 ) (117,316 ) (593,960 ) Net cash provided by (used in) operating activities 2,582,102 615,611 3,197,713 Cash flows from investing activities: Purchases of property, plant and equipment (72,662 ) (72,662 ) Net cash provided by (used in) investing activities (72,662 ) (72,662 ) Cash flows from financing activities: Change in checks written in excess of bank balance 394,227 394,227 Net change in revolving line of credit (4,160,724 ) (4,160,724 ) Repayment of long-term debt (554,768 ) (554,768 ) Proceeds from issuance of stock 955,396 (955,396) 0 Cash paid for deferred financing fees 31,388 (86,558) (55,170) Proceeds from issuance of long-term debt 650,000 650,000 Net cash provided by (used in) financing activities (2,684,481 ) (1,041,954) (3,726,435 ) Effect of exchange rate changes on cash (74,811) 426,343 351,532 Net increase/(decrease) in cash and cash equivalents (249,852 ) (249,852 ) Cash and cash equivalents at beginning of period 428,150 428,150 Cash and cash equivalents at end of period $ 178,298 $ - $ 178,298 Supplemental disclosure of cash flow information: Cash payments for interest $ 1,045,943 $ 1,045,943 Common stock issued for accounts payable $ 303,000 $ 303,000 Common stock issued for notes payable $ 600,000 $ 600,000 |
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, 10 8 X. not three six June 30, 2019 not may December 31, 2019. 10 December 31, 2018. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation and nature of operations: The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd. (formerly 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, |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities (“VIEs”): 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 , |
Lessee, Leases [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, January 3 rd 2020, December 31 st 2019. 10 10 |
Reclassification, Comparability Adjustment [Policy Text Block] | Prior Period Reclassification Certain amounts in prior periods have been reclassified to conform with current period presentation and had no |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In February 2016, No. 2016 02 Leases 842 842” 840 Leases 840 not twelve twelve may 842 December 31, 2019. December 31, 2018 840 January 1, 2019 not not 840 , 842 Other key practical expedients elected by the Company (as a lessee) relate to maintaining leases with an initial term of 12 not two two not $2.8 no |
Note 3 - Debt (Tables)
Note 3 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Leverage Ratios [Table Text Block] | 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, 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 293,136 480,716 Allowance for excess quantities (1,679,438 ) (454,774 ) Total inventories $ 19,266,094 $ 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 $ 207,000 257,000 $ 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 $ 20,839,000 $ 25,354,000 Europe $ 2,118,000 3,052,000 Mexico $ 11,490,000 9,476,000 United Kingdom $ 780,000 879,000 $ 35,227,000 $ 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, 2019 June 30, 2018 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 2,850,000 Accumulated amortization (722,000 ) Net lease assets 2,128,000 Liabilities Current Operating 1,155,000 Noncurrent Operating 973,000 Total lease liabilities 2,128,000 Weighted average remaining term (years) – operating leases (years) 3 Weighted average discount rate – operating leases 11.25 % |
Lease, Cost [Table Text Block] | Operating right-of-use lease asset amortization 361,000 Total expense during three months ended June 30, 2019 361,000 Operating right-of-use lease asset amortization 722,000 Total expense during six months ended June 30, 2019 722,000 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the maturities of our lease liabilities for all operating leases as of June 30, 2019 (in thousands) 06/30/2019 2019 829 2020 724 2021 757 2022 and thereafter 167 Total lease payments 2,477 less: Imputed interest -349 Present value of lease liabilities 2,128 |
Note 15 - Restatement of Fina_2
Note 15 - Restatement of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | June 30, 2019 As Previously Reported Adjustments As Restated ASSETS Current assets: Cash and cash equivalents (VIE $2,000 and $57,000, respectively) $ 178,298 $ - $ 178,298 Accounts receivable, (less allowance for doubtful accounts of $515,000 and $85,000, respectively) 8,884,291 (486,281 ) 8,398,010 Inventories, net (VIE $242,000 and $340,000, respectively) 20,519,240 (1,253,146 ) 19,266,094 Prepaid expenses (VIE $106,000 and $127,000, respectively) 394,797 (9,398 ) 385,399 Other current assets 1,342,896 (150,972 ) 1,191,924 Total current assets 31,319,522 (1,899,798 ) 29,419,724 Property, plant and equipment: Machinery and equipment 23,880,732 23,880,732 Building 3,374,334 3,374,334 Office furniture and equipment (VIE $303,000 and $303,000, respectively) 2,685,450 2,685,450 Intellectual property 783,179 783,179 Land 250,000 250,000 Leasehold improvements 413,053 413,053 Fixtures and equipment at customer locations 518,450 518,450 Projects under construction 180,955 (93,098 ) 87,857 32,086,153 (93,098 ) 31,993,055 Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) (28,657,592 ) 33,844 (28,623,748 ) - Total property, plant and equipment, net 3,428,561 (59,254 ) 3,369,307 Other assets: Goodwill (VIE $0 and $440,000, respectively) 1,473,176 (1,473,176 ) Net deferred income tax asset 539,305 (404,211 ) 135,094 Operating lease right-of-use 1,872,470 255,165 2,127,636 Other non-current assets (3,000,000 ) 3,000,000 Other assets 15,274 159,661 174,935 - Total other assets 900,225 1,537,439 2,437,665 - TOTAL ASSETS $ 35,648,308 $ (421,613 ) $ 35,226,695 LIABILITIES AND EQUITY Current liabilities: Checks written in excess of bank balance (VIE $2,000 and $7,000, respectively) $ 1,030,369 $ 1,030,369 Trade payables (VIE $77,000 and $62,000, respectively) 8,678,165 8,678,165 Line of credit (VIE $232,000 and $267,000, respectively) 12,429,643 12,429,643 Notes payable - current portion 4,522,104 (300,000 ) 4,222,104 Notes payable affiliates - current portion 11,727 11,727 Operating Lease Liabilities 1,005,650 149,203 1,154,853 Accrued liabilities (VIE $35,000 and $89,000, respectively) 1,705,380 (420,316 ) 1,285,064 - Total current liabilities 29,383,038 (571,113 ) 28,811,925 Long-term liabilities: Notes payable - affiliates 222,408 222,408 Notes payable, net of current portion (VIE $30,000 and $27,000, respectively) 443,675 300,000 743,675 Operating Lease Liabilities 866,820 105,962 972,782 Notes payable - officers, subordinated 1,027,280 - 1,027,280 Deferred gain (non current) 257,348 - 257,348 Total long-term debt, net of current portion 2,817,531 405,962 3,223,493 - Total liabilities 32,200,569 (165,151) 32,035,418 Equity: Yunhong CTI, LTD 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 3,461,832 Accumulated earnings (6,840,594 ) 236,542 (6,604,052 ) Accumulated other comprehensive loss (5,753,138 ) (5,753,138 ) Less: Treasury stock, 43,658 shares (160,784 ) (160,784 ) Total Yunhong CTI, LTD stockholders' equity 4,605,810 236,542 4,842,352 Noncontrolling interest (1,158,071 ) (493,004 ) (1,651,075 ) Total Equity 3,447,739 (256,462 ) 3,191,277 TOTAL LIABILITIES AND EQUITY $ 35,648,308 $ (421,613 ) $ 35,226,695 For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2019 2019 2019 As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated Net Sales $ 12,406,840 $ - $ 12,406,840 $ 24,943,229 $ - $ 24,943,229 - - Cost of Sales 9,869,107 1,253,146 11,122,253 20,409,325 1,253,146 21,662,471 - - Gross profit 2,537,733 (1,253,146 ) 1,284,587 4,533,904 (1,253,146 ) 3,280,758 - Operating expenses: - General and administrative 1,531,125 93,423 1,624,548 3,587,197 (114,751) 3,472,446 Selling 415,038 - 415,038 852,603 - 852,603 Advertising and marketing 270,355 (91,876) 178,479 544,235 (193,179) 351,056 Impairment on long-lived assets 258,566 258,566 1,511,742 1,511,742 Gain on sale of assets (23,662 ) - (23,662 ) (47,209 ) - (47,209 ) Total operating expenses 2,192,856 260,113 2,452,969 4,936,826 1,203,812 6,140,638 - Income from operations 344,877 (1,513,259 ) (1,168,382 ) (402,922 ) (2,456,958 ) (2,859,880 ) - - Other (expense) income: - - Interest expense (516,161 ) - (516,161 ) (1,063,067 ) - (1,063,067 ) Interest income 335 (335) 336 (336) Other Expense (3,000,000 ) 2,914,519 (85,481) (3,000,000 ) 2,605,042 (394,958) Foreign currency loss 9,444 - 9,444 849 - 849 - - Total other expense, net (3,506,382 ) 2,914,184 (592,198 ) (4,061,882 ) 2,604,706 (1,457,176 ) - Net income before taxes (3,161,505 ) 1,400,925 (1,760,580 ) (4,464,804 ) 147,748 (4,317,056 ) - - Income tax expense (43,719 ) 43,719 (404,210 ) 404,210 - Net income (3,117,786 ) 1,357,206 (1,760,580 ) (4,060,594 ) (256,462 ) (4,317,056 ) - Less: Net (loss) income attributable to noncontrolling interest (23,098 ) (493,004 ) (516,102 ) (85,486 ) (493,004 ) (578,490 ) - Net income attributable to Yunhong CTI, LTD $ (3,094,687 ) $ 1,850,210 $ (1,244,478 ) $ (3,975,108 ) $ 236,542 $ (3,738,566 ) Other Comprehensive Income (Loss) Foreign currency adjustment 61,333 - 61,333 297,209 - 297,209 Comprehensive Income (Loss) $ (3,033,355 ) $ 1,850,210 $ (1,183,145 ) $ (3,677,899 ) $ 236,542 $ (3,441,357 ) Basic income per common share $ (0.81 ) $ 0.48 $ (0.32 ) $ (1.04 ) $ 0.06 $ (0.97 ) Diluted income per common share $ (0.81 ) $ 0.48 $ (0.32 ) $ (1.04 ) $ 0.06 $ (0.97 ) Weighted average number of shares and equivalent shares of common stock outstanding: Basic 3,835,950 - 3,835,950 3,835,950 - 3,835,950 - - Diluted 3,835,950 - 3,835,950 3,835,950 - 3,835,950 For the Six Months Ended June 30, 2019 2019 As Previously Reported Adjustments As Restated Cash flows from operating activities: Net loss $ (4,060,594 ) $ (256,462 ) $ (4,317,056 ) Depreciation and amortization 522,670 522,670 Operating cash flows from operating leases 487,239 (487,239) Amortization of deferred gain on sale/leaseback 155,433 (210,381) (54,948) Other 261,075 261,075 Provision for losses on accounts receivable 7,657 386,281 393,938 Provision for losses on inventories 25,415 1,253,146 1,278,561 Impairment of Prepaids, Current & Non Current Assets 168,931 168,931 Impairment of long-lived assets 1,252,283 1,252,283 Stock Based Compensation 52,396 52,396 Deferred income taxes (404,210 ) 404,210 Loss on disposition of asset 17,480 - 17,480 Change in assets and liabilities: - Accounts receivable 2,001,248 161,232 2,162,480 Other non-current assets 3,000,000 (3,000,000 ) Inventories (474,804 ) - (474,804 ) Prepaid expenses and other assets (140,125 ) 670,297 530,172 Trade payables 1,921,337 77,158 1,998,495 Accrued liabilities (476,644 ) (117,316 ) (593,960 ) Net cash provided by (used in) operating activities 2,582,102 615,611 3,197,713 Cash flows from investing activities: Purchases of property, plant and equipment (72,662 ) (72,662 ) Net cash provided by (used in) investing activities (72,662 ) (72,662 ) Cash flows from financing activities: Change in checks written in excess of bank balance 394,227 394,227 Net change in revolving line of credit (4,160,724 ) (4,160,724 ) Repayment of long-term debt (554,768 ) (554,768 ) Proceeds from issuance of stock 955,396 (955,396) 0 Cash paid for deferred financing fees 31,388 (86,558) (55,170) Proceeds from issuance of long-term debt 650,000 650,000 Net cash provided by (used in) financing activities (2,684,481 ) (1,041,954) (3,726,435 ) Effect of exchange rate changes on cash (74,811) 426,343 351,532 Net increase/(decrease) in cash and cash equivalents (249,852 ) (249,852 ) Cash and cash equivalents at beginning of period 428,150 428,150 Cash and cash equivalents at end of period $ 178,298 $ - $ 178,298 Supplemental disclosure of cash flow information: Cash payments for interest $ 1,045,943 $ 1,045,943 Common stock issued for accounts payable $ 303,000 $ 303,000 Common stock issued for notes payable $ 600,000 $ 600,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 471,144 | 471,144 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | ||
Operating Lease, Right-of-Use Asset | $ 2,127,636 | |||
Operating Lease, Liability, Total | $ 2,128,000 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 2,800,000 | |||
Operating Lease, Liability, Total | $ 2,800,000 |
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 | $ (1,244,478) | $ 250,204 | $ (3,738,566) | $ (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 ($) | Nov. 15, 2018USD ($) | 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 (Year) | 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 (in shares) | 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 (Week) | 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 | |
Maximum [Member] | ||||||||
Leverage ratio | 3 | 3.5 | 4.25 | 4.5 | 4.75 | |||
Maximum [Member] | Forecast [Member] | ||||||||
Leverage ratio | 2.75 | |||||||
Minimum [Member] | ||||||||
Leverage ratio | 1 | 1 | 1 | 1 | 1 | |||
Minimum [Member] | Forecast [Member] | ||||||||
Leverage ratio | 1 |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation; Changes in Equity (Details Textual) - USD ($) $ / shares in Units, xbrli-pure in Thousands | 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% | |||||||||
Share-based Payment Arrangement, Expense | $ 23,000 | $ 44,000 | $ 52,000 | $ 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 (in shares) | 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 (in dollars per share) | $ 3.32 | ||||||||||
Promissory Note [Member] | John H Schwan [Member] | |||||||||||
Debt Conversion, Original Debt, Amount | $ 600,000 | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 180,723 | ||||||||||
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) | 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 (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 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 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 | Dec. 31, 2018 | |
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 (in shares) | 100,000 | 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 | 3,191,277 |
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 | 293,136 | 480,716 |
Allowance for excess quantities | (1,679,438) | (454,774) |
Total inventories | $ 19,266,094 | $ 20,007,488 |
Note 8 - Geographic Segment D_3
Note 8 - Geographic Segment Data (Details Textual) | 6 Months Ended |
Jun. 30, 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 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 12,406,840 | $ 15,984,726 | $ 24,943,229 | $ 29,963,903 | |
Assets | 35,226,695 | 35,226,695 | $ 38,760,834 | ||
UNITED STATES | |||||
Revenue from Contract with Customer, Including Assessed Tax | 9,095,000 | 12,075,000 | 17,855,000 | 21,813,000 | |
Assets | 20,839,000 | 20,839,000 | 25,354,000 | ||
Europe [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 1,083,000 | 1,275,000 | 2,358,000 | 2,637,000 | |
Assets | 2,118,000 | 2,118,000 | 3,052,000 | ||
MEXICO | |||||
Revenue from Contract with Customer, Including Assessed Tax | 2,022,000 | 2,378,000 | 4,103,000 | 4,564,000 | |
Assets | 11,490,000 | 11,490,000 | 9,476,000 | ||
UNITED KINGDOM | |||||
Revenue from Contract with Customer, Including Assessed Tax | 207,000 | $ 257,000 | 627,000 | $ 950,000 | |
UKRAINE | |||||
Assets | $ 780,000 | $ 780,000 | $ 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 | 30.00% | 57.00% | ||
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% | 18.00% |
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 | $ 7,343,000 |
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 (Year) | 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 ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Assets, Noncurrent, Excluding Property, Plant, and Equipment | $ 2,437,665 | $ 2,437,665 | $ 1,935,119 | |
Liabilities, Current, Total | 28,811,925 | 28,811,925 | $ 30,208,712 | |
Operating Lease, Expense | 379,000 | 758,000 | ||
Operating Lease, Payments | $ 361,000 | $ 722,000 | ||
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 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 | $ 2,850,000 | $ 2,850,000 | |
Accumulated amortization | (361,000) | (722,000) | |
Operating Lease, Right-of-Use Asset | 2,127,636 | 2,127,636 | |
Operating | 1,154,853 | 1,154,853 | 0 |
Operating | 972,782 | 972,782 | |
Operating Lease, Liability, Total | $ 2,128,000 | $ 2,128,000 | |
Weighted average remaining term (years) – operating leases (years) (Year) | 3 years | 3 years | |
Weighted average discount rate – operating leases | 11.25% | 11.25% |
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 | $ 361,000 | $ 722,000 |
Total expense | $ 361,000 | $ 722,000 |
Note 12 - Leases - Maturities f
Note 12 - Leases - Maturities for Operating Lease Liabilities (Details) | Jun. 30, 2019USD ($) |
2019 | $ 829,000 |
2020 | 724,000 |
2021 | 757,000 |
2022 and thereafter | 167,000 |
Total lease payments | 2,477,000 |
less: Imputed interest | (349,000) |
Operating Lease, Liability, Total | $ 2,128,000 |
Note 13 - Summary of Subseque_2
Note 13 - Summary of Subsequent Events (Details Textual) - USD ($) | Apr. 01, 2020 | Jan. 13, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | May 18, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 03, 2020 |
Revenue from Contract with Customer, Including Assessed Tax | $ 12,406,840 | $ 15,984,726 | $ 24,943,229 | $ 29,963,903 | |||||
Subsequent Event [Member] | |||||||||
Proceeds from Paycheck Protection Program Under CARES Act | $ 1,000,000 | ||||||||
Forecast [Member] | Conversion of Accounts Receivable Owed to Investor to Preferred Stock [Member] | |||||||||
Debt Conversion, Original Debt, Amount | $ 482,000 | ||||||||
Forecast [Member] | Series A Preferred Stock [Member] | Conversion of Accounts Receivable Owed to Investor to Preferred Stock [Member] | |||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 48,200 | ||||||||
Forecast [Member] | Purchase Agreement [Member] | Series A Preferred Stock [Member] | |||||||||
Sale of Stock, Shares Agreed to Purchase (in shares) | 500,000 | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 10 | ||||||||
Shares Issued, Price Per Share (in dollars per share) | $ 10 | ||||||||
Sale of Stock, Offering Amount | $ 5,000,000 | ||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 4,926,600 | ||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 492,660 | ||||||||
Forecast [Member] | Additional Offering [Member] | Series A Preferred Stock [Member] | |||||||||
Shares Issued, Price Per Share (in dollars per share) | $ 10 | ||||||||
Sale of Stock, Contingent Additional Offered Shares (in shares) | 200,000 | ||||||||
Forecast [Member] | First Closing of the Offering [Member] | Series A Preferred Stock [Member] | |||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 2,500,000 | ||||||||
Ziploc [Member] | |||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,200,000 |
Note 14 - Impairment (Details T
Note 14 - Impairment (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Asset Impairment Charges, Total | $ 2,900,000 | |||
Inventory Write-down | $ 1,250,000 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 66,000 | $ 393,938 | $ (55,320) | |
Goodwill, Impairment Loss | $ 3,000,000 | 1,300,000 | ||
Other Asset Impairment Charges | $ 280,000 |
Note 15 - Restatement of Fina_3
Note 15 - Restatement of Financial Statements (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill, Impairment Loss | $ 3,000,000 | $ 1,300,000 | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | (6,604,052) | $ (6,604,052) | $ (2,865,486) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | (1,760,580) | $ 205,707 | (4,317,056) | $ (264,844) | ||
Revision of Prior Period, Adjustment [Member] | ||||||
Retained Earnings (Accumulated Deficit), Ending Balance | 236,542 | 236,542 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | $ 1,357,206 | $ (256,462) |
Note 15 - Restatement of Fina_4
Note 15 - Restatement of Financial Statements - Restatement of Financial Statements (Details) - 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 | |
Cash and cash equivalents | $ 178,298 | $ 178,298 | $ 428,150 | ||||
Allowance for doubtful accounts | 8,398,010 | 8,398,010 | 10,830,555 | ||||
Inventories, net | 19,266,094 | 19,266,094 | 20,007,488 | ||||
Prepaid expenses | 385,399 | 385,399 | 858,158 | ||||
Other current assets | 1,191,924 | 1,191,924 | 886,383 | ||||
Total current assets | 29,419,724 | 29,419,724 | 33,010,734 | ||||
Machinery and equipment | 23,880,732 | 23,880,732 | 23,807,985 | ||||
Building | 3,374,334 | 3,374,334 | 3,367,082 | ||||
Office furniture and equipment | 2,685,450 | 2,685,450 | 2,649,280 | ||||
Intellectual property | 783,179 | 783,179 | 783,179 | ||||
Land | 250,000 | 250,000 | 250,000 | ||||
Leasehold improvements | 413,053 | 413,053 | 409,188 | ||||
Fixtures and equipment at customer locations | 518,450 | 518,450 | 518,450 | ||||
Projects under construction | 87,857 | 87,857 | 150,272 | ||||
Property, Plant and Equipment, Gross, Ending Balance | 31,993,055 | 31,993,055 | 31,935,436 | ||||
Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) | (28,623,748) | (28,623,748) | (28,120,455) | ||||
Total property, plant and equipment, net | 3,369,307 | 3,369,307 | 3,814,981 | ||||
Goodwill | 0 | 0 | 1,473,176 | ||||
Net deferred income tax asset | 135,094 | 135,094 | 135,094 | ||||
Operating Lease, Right-of-Use Asset | 2,127,636 | 2,127,636 | |||||
Other non-current assets | |||||||
Other assets | 174,935 | 174,935 | |||||
Assets, Noncurrent, Excluding Property, Plant, and Equipment | 2,437,665 | 2,437,665 | 1,935,119 | ||||
TOTAL ASSETS | 35,226,695 | 35,226,695 | 38,760,834 | ||||
Checks written in excess of bank balance | 1,030,369 | 1,030,369 | 636,142 | ||||
Trade payables | 8,678,165 | 8,678,165 | 6,679,670 | ||||
Line of credit | 12,429,643 | 12,429,643 | 16,582,963 | ||||
Notes payable - current portion | 4,222,104 | 4,222,104 | 4,432,320 | ||||
Notes payable affiliates - current portion | 11,727 | 11,727 | 10,821 | ||||
Operating | 1,154,853 | 1,154,853 | 0 | ||||
Accrued liabilities | 1,285,064 | 1,285,064 | 1,866,796 | ||||
Liabilities, Current, Total | 28,811,925 | 28,811,925 | 30,208,712 | ||||
Notes payable - affiliates | 222,408 | 222,408 | 199,122 | ||||
Notes payable | 743,675 | 743,675 | 399,912 | ||||
Operating Lease Liabilities | 972,782 | 972,782 | |||||
Notes payable - officers, subordinated | 1,027,280 | 1,027,280 | 1,597,019 | ||||
Deferred gain (non current) | 257,348 | 257,348 | 100,340 | ||||
Total long-term debt, net of current portion | 3,223,493 | 3,223,493 | 2,296,393 | ||||
Total liabilities | 32,035,418 | 32,035,418 | 32,505,105 | ||||
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 | 13,898,494 | ||||
Paid-in-capital | 3,461,832 | 3,461,832 | 2,506,437 | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | (6,604,052) | (6,604,052) | (2,865,486) | ||||
Accumulated other comprehensive loss | (5,753,138) | (5,753,138) | (6,050,347) | ||||
Less: Treasury stock, 43,658 shares | (160,784) | (160,784) | (160,784) | ||||
Total Yunhong CTI, LTD stockholders' equity | 4,842,352 | 4,842,352 | 7,328,314 | ||||
Noncontrolling interest | (1,651,075) | (1,651,075) | (1,072,585) | ||||
Total Equity | 3,191,277 | 3,191,277 | 6,255,729 | ||||
TOTAL LIABILITIES AND EQUITY | 35,226,695 | 35,226,695 | 38,760,834 | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,406,840 | $ 15,984,726 | 24,943,229 | $ 29,963,903 | |||
Cost of Sales | 11,122,253 | 12,189,204 | 21,662,471 | 23,299,990 | |||
Gross profit | 1,284,587 | 3,795,522 | 3,280,758 | 6,663,913 | |||
General and administrative | 1,624,548 | 1,680,490 | 3,472,446 | 3,564,536 | |||
Selling | 415,038 | 958,796 | 852,603 | 1,817,333 | |||
Advertising and marketing | 178,479 | 331,609 | 351,056 | 628,489 | |||
Impairment on long-lived assets | 258,566 | 1,252,283 | (29,386) | ||||
Gain on sale of assets | (23,662) | (22,998) | (47,209) | (47,413) | |||
Total operating expenses | 2,452,969 | 2,947,897 | 6,140,638 | 5,962,945 | |||
Income from operations | (1,168,382) | 847,625 | (2,859,880) | 700,968 | |||
Interest expense | (516,161) | (550,780) | (1,063,067) | (1,114,840) | |||
Interest income | 11,389 | 11,043 | |||||
Other Expense | (85,481) | (394,958) | |||||
Foreign currency loss | 9,444 | (13,246) | 849 | 17,783 | |||
Total other expense, net | (592,198) | (552,637) | (1,457,176) | (1,086,014) | |||
Net income before taxes | (1,760,580) | 294,988 | (4,317,056) | (385,046) | |||
Income tax expense | 89,281 | (120,202) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | (1,760,580) | 205,707 | (4,317,056) | (264,844) | |||
Less: Net (loss) income attributable to noncontrolling interest | (516,102) | (44,497) | (578,490) | (52,040) | |||
Net Income (Loss) Attributable to Parent, Total | (1,244,478) | 250,204 | (3,738,566) | (212,804) | (3,600,000) | $ (1,600,000) | $ 700,000 |
Foreign currency adjustment | 61,333 | (775,497) | 297,209 | (342,432) | |||
Comprehensive Income (Loss) | $ (1,183,145) | $ (525,293) | $ (3,441,357) | $ (555,236) | |||
Basic income per common share (in dollars per share) | $ (0.32) | $ 0.07 | $ (0.97) | $ (0.06) | |||
Diluted income per common share (in dollars per share) | $ (0.32) | $ 0.07 | $ (0.97) | $ (0.06) | |||
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 | |||
Depreciation and amortization | $ 522,670 | $ 701,839 | |||||
Operating cash flows from operating leases | |||||||
Amortization of deferred gain on sale/leaseback | (54,948) | ||||||
Other | 261,075 | ||||||
Provision for losses on inventories | 1,278,561 | (10,471) | |||||
Impairment of Prepaids, Current & Non Current Assets | 168,931 | ||||||
Stock Based Compensation | 52,396 | 105,745 | |||||
Deferred income taxes | (90,206) | ||||||
Loss on disposition of asset | 17,480 | ||||||
Accounts receivable | 2,162,480 | (671,380) | |||||
Other non-current assets | |||||||
Inventories | (474,804) | (483,573) | |||||
Prepaid expenses and other assets | 530,172 | 115,988 | |||||
Trade payables | 1,998,495 | 800,813 | |||||
Accrued liabilities | (593,960) | (285,976) | |||||
Net cash provided by (used in) operating activities | 3,197,713 | (166,771) | |||||
Purchases of property, plant and equipment | (72,662) | (18,193) | |||||
Net cash provided by (used in) investing activities | (72,662) | (18,193) | |||||
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 | 0 | ||||||
Cash paid for deferred financing fees | (55,170) | (59,530) | |||||
Proceeds from issuance of long-term debt | 650,000 | ||||||
Net cash provided by (used in) financing activities | (3,726,435) | 425,814 | |||||
Effect of exchange rate changes on cash | 351,532 | 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 | 181,026 | ||||
Cash and cash equivalents at end of period | $ 178,298 | $ 452,826 | 178,298 | 452,826 | 428,150 | $ 181,026 | |
Cash payments for interest | 1,045,943 | 934,231 | |||||
Conversion from Accounts Payable To Common Stock [Member] | |||||||
Common stock issued | 303,000 | ||||||
Conversion from Notes Payable To Common Stock [Member] | |||||||
Common stock issued | 600,000 | ||||||
Previously Reported [Member] | |||||||
Cash and cash equivalents | 178,298 | 178,298 | |||||
Allowance for doubtful accounts | 8,884,291 | 8,884,291 | |||||
Inventories, net | 20,519,240 | 20,519,240 | |||||
Prepaid expenses | 394,797 | 394,797 | |||||
Other current assets | 1,342,896 | 1,342,896 | |||||
Total current assets | 31,319,522 | 31,319,522 | |||||
Machinery and equipment | 23,880,732 | 23,880,732 | |||||
Building | 3,374,334 | 3,374,334 | |||||
Office furniture and equipment | 2,685,450 | 2,685,450 | |||||
Intellectual property | 783,179 | 783,179 | |||||
Land | 250,000 | 250,000 | |||||
Leasehold improvements | 413,053 | 413,053 | |||||
Fixtures and equipment at customer locations | 518,450 | 518,450 | |||||
Projects under construction | 180,955 | 180,955 | |||||
Property, Plant and Equipment, Gross, Ending Balance | 32,086,153 | 32,086,153 | |||||
Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) | (28,657,592) | (28,657,592) | |||||
Total property, plant and equipment, net | 3,428,561 | 3,428,561 | |||||
Goodwill | 1,473,176 | 1,473,176 | |||||
Net deferred income tax asset | 539,305 | 539,305 | |||||
Operating Lease, Right-of-Use Asset | 1,872,470 | 1,872,470 | |||||
Other non-current assets | (3,000,000) | (3,000,000) | |||||
Other assets | 15,274 | 15,274 | |||||
Assets, Noncurrent, Excluding Property, Plant, and Equipment | 900,225 | 900,225 | |||||
TOTAL ASSETS | 35,648,308 | 35,648,308 | |||||
Checks written in excess of bank balance | 1,030,369 | 1,030,369 | |||||
Trade payables | 8,678,165 | 8,678,165 | |||||
Line of credit | 12,429,643 | 12,429,643 | |||||
Notes payable - current portion | 4,522,104 | 4,522,104 | |||||
Notes payable affiliates - current portion | 11,727 | 11,727 | |||||
Operating | 1,005,650 | 1,005,650 | |||||
Accrued liabilities | 1,705,380 | 1,705,380 | |||||
Liabilities, Current, Total | 29,383,038 | 29,383,038 | |||||
Notes payable - affiliates | 222,408 | 222,408 | |||||
Notes payable | 443,675 | 443,675 | |||||
Operating Lease Liabilities | 866,820 | 866,820 | |||||
Notes payable - officers, subordinated | 1,027,280 | 1,027,280 | |||||
Deferred gain (non current) | 257,348 | 257,348 | |||||
Total long-term debt, net of current portion | 2,817,531 | 2,817,531 | |||||
Total liabilities | 32,200,569 | 32,200,569 | |||||
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 | 3,461,832 | |||||
Retained Earnings (Accumulated Deficit), Ending Balance | (6,840,594) | (6,840,594) | |||||
Accumulated other comprehensive loss | (5,753,138) | (5,753,138) | |||||
Less: Treasury stock, 43,658 shares | (160,784) | (160,784) | |||||
Total Yunhong CTI, LTD stockholders' equity | 4,605,810 | 4,605,810 | |||||
Noncontrolling interest | (1,158,071) | (1,158,071) | |||||
Total Equity | 3,447,739 | 3,447,739 | |||||
TOTAL LIABILITIES AND EQUITY | 35,648,308 | 35,648,308 | |||||
Revenue from Contract with Customer, Including Assessed Tax | 12,406,840 | 24,943,229 | |||||
Cost of Sales | 9,869,107 | 20,409,325 | |||||
Gross profit | 2,537,733 | 4,533,904 | |||||
General and administrative | 1,531,125 | 3,587,197 | |||||
Selling | 415,038 | 852,603 | |||||
Advertising and marketing | 270,355 | 544,235 | |||||
Impairment on long-lived assets | |||||||
Gain on sale of assets | (23,662) | (47,209) | |||||
Total operating expenses | 2,192,856 | 4,936,826 | |||||
Income from operations | 344,877 | (402,922) | |||||
Interest expense | (516,161) | (1,063,067) | |||||
Interest income | 335 | 336 | |||||
Other Expense | (3,000,000) | (3,000,000) | |||||
Foreign currency loss | 9,444 | 849 | |||||
Total other expense, net | (3,506,382) | (4,061,882) | |||||
Net income before taxes | (3,161,505) | (4,464,804) | |||||
Income tax expense | (43,719) | (404,210) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | (3,117,786) | (4,060,594) | |||||
Less: Net (loss) income attributable to noncontrolling interest | (23,098) | (85,486) | |||||
Net Income (Loss) Attributable to Parent, Total | (3,094,687) | (3,975,108) | |||||
Foreign currency adjustment | 61,333 | 297,209 | |||||
Comprehensive Income (Loss) | $ (3,033,355) | $ (3,677,899) | |||||
Basic income per common share (in dollars per share) | $ (0.81) | $ (1.04) | |||||
Diluted income per common share (in dollars per share) | $ (0.81) | $ (1.04) | |||||
Basic (in shares) | 3,835,950 | 3,835,950 | |||||
Diluted (in shares) | 3,835,950 | 3,835,950 | |||||
Depreciation and amortization | $ 522,670 | ||||||
Operating cash flows from operating leases | 487,239 | ||||||
Amortization of deferred gain on sale/leaseback | 155,433 | ||||||
Other | |||||||
Provision for losses on inventories | 25,415 | ||||||
Impairment of Prepaids, Current & Non Current Assets | |||||||
Stock Based Compensation | |||||||
Deferred income taxes | (404,210) | ||||||
Loss on disposition of asset | 17,480 | ||||||
Accounts receivable | 2,001,248 | ||||||
Other non-current assets | 3,000,000 | ||||||
Inventories | (474,804) | ||||||
Prepaid expenses and other assets | (140,125) | ||||||
Trade payables | 1,921,337 | ||||||
Accrued liabilities | (476,644) | ||||||
Net cash provided by (used in) operating activities | 2,582,102 | ||||||
Purchases of property, plant and equipment | (72,662) | ||||||
Net cash provided by (used in) investing activities | (72,662) | ||||||
Change in checks written in excess of bank balance | 394,227 | ||||||
Net change in revolving line of credit | (4,160,724) | ||||||
Repayment of long-term debt | (554,768) | ||||||
Proceeds from issuance of stock | 955,396 | ||||||
Cash paid for deferred financing fees | 31,388 | ||||||
Proceeds from issuance of long-term debt | 650,000 | ||||||
Net cash provided by (used in) financing activities | (2,684,481) | ||||||
Effect of exchange rate changes on cash | (74,811) | ||||||
Net increase/(decrease) in cash and cash equivalents | (249,852) | ||||||
Cash and cash equivalents at beginning of period | 428,150 | ||||||
Cash and cash equivalents at end of period | $ 178,298 | 178,298 | 428,150 | ||||
Cash payments for interest | 1,045,943 | ||||||
Previously Reported [Member] | Conversion from Accounts Payable To Common Stock [Member] | |||||||
Common stock issued | 303,000 | ||||||
Previously Reported [Member] | Conversion from Notes Payable To Common Stock [Member] | |||||||
Common stock issued | 600,000 | ||||||
Revision of Prior Period, Adjustment [Member] | |||||||
Cash and cash equivalents | |||||||
Allowance for doubtful accounts | (486,281) | (486,281) | |||||
Inventories, net | (1,253,146) | (1,253,146) | |||||
Prepaid expenses | (9,398) | (9,398) | |||||
Other current assets | (150,972) | (150,972) | |||||
Total current assets | (1,899,798) | (1,899,798) | |||||
Machinery and equipment | |||||||
Building | |||||||
Office furniture and equipment | |||||||
Intellectual property | |||||||
Land | |||||||
Leasehold improvements | |||||||
Fixtures and equipment at customer locations | |||||||
Projects under construction | (93,098) | (93,098) | |||||
Property, Plant and Equipment, Gross, Ending Balance | (93,098) | (93,098) | |||||
Less : accumulated depreciation and amortization (VIE $107,000 and $104,000, respectively) | 33,844 | 33,844 | |||||
Total property, plant and equipment, net | (59,254) | (59,254) | |||||
Goodwill | (1,473,176) | (1,473,176) | |||||
Net deferred income tax asset | (404,211) | (404,211) | |||||
Operating Lease, Right-of-Use Asset | 255,165 | 255,165 | |||||
Other non-current assets | 3,000,000 | 3,000,000 | |||||
Other assets | 159,661 | 159,661 | |||||
Assets, Noncurrent, Excluding Property, Plant, and Equipment | 1,537,439 | 1,537,439 | |||||
TOTAL ASSETS | (421,613) | (421,613) | |||||
Checks written in excess of bank balance | |||||||
Trade payables | |||||||
Line of credit | |||||||
Notes payable - current portion | (300,000) | (300,000) | |||||
Notes payable affiliates - current portion | |||||||
Operating | 149,203 | 149,203 | |||||
Accrued liabilities | (420,316) | (420,316) | |||||
Liabilities, Current, Total | (571,113) | (571,113) | |||||
Notes payable - affiliates | |||||||
Notes payable | 300,000 | 300,000 | |||||
Operating Lease Liabilities | 105,962 | 105,962 | |||||
Notes payable - officers, subordinated | |||||||
Deferred gain (non current) | |||||||
Total long-term debt, net of current portion | 405,962 | 405,962 | |||||
Total liabilities | (165,151) | (165,151) | |||||
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 | |||||||
Paid-in-capital | |||||||
Retained Earnings (Accumulated Deficit), Ending Balance | 236,542 | 236,542 | |||||
Accumulated other comprehensive loss | |||||||
Less: Treasury stock, 43,658 shares | |||||||
Total Yunhong CTI, LTD stockholders' equity | 236,542 | 236,542 | |||||
Noncontrolling interest | (493,004) | (493,004) | |||||
Total Equity | (256,462) | (256,462) | |||||
TOTAL LIABILITIES AND EQUITY | (421,613) | (421,613) | |||||
Revenue from Contract with Customer, Including Assessed Tax | |||||||
Cost of Sales | 1,253,146 | 1,253,146 | |||||
Gross profit | (1,253,146) | (1,253,146) | |||||
General and administrative | 93,423 | (114,751) | |||||
Selling | |||||||
Advertising and marketing | (91,876) | (193,179) | |||||
Impairment on long-lived assets | 258,566 | 1,511,742 | |||||
Gain on sale of assets | |||||||
Total operating expenses | 260,113 | 1,203,812 | |||||
Income from operations | (1,513,259) | (2,456,958) | |||||
Interest expense | |||||||
Interest income | (335) | (336) | |||||
Other Expense | 2,914,519 | 2,605,042 | |||||
Foreign currency loss | |||||||
Total other expense, net | 2,914,184 | 2,604,706 | |||||
Net income before taxes | 1,400,925 | 147,748 | |||||
Income tax expense | 43,719 | 404,210 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 1,357,206 | (256,462) | |||||
Less: Net (loss) income attributable to noncontrolling interest | (493,004) | (493,004) | |||||
Net Income (Loss) Attributable to Parent, Total | 1,850,210 | 236,542 | |||||
Foreign currency adjustment | |||||||
Comprehensive Income (Loss) | $ 1,850,210 | $ 236,542 | |||||
Basic income per common share (in dollars per share) | $ 0.48 | $ 0.06 | |||||
Diluted income per common share (in dollars per share) | $ 0.48 | $ 0.06 | |||||
Basic (in shares) | |||||||
Diluted (in shares) | |||||||
Depreciation and amortization | |||||||
Operating cash flows from operating leases | (487,239) | ||||||
Amortization of deferred gain on sale/leaseback | (210,381) | ||||||
Other | 261,075 | ||||||
Provision for losses on inventories | 1,253,146 | ||||||
Impairment of Prepaids, Current & Non Current Assets | 168,931 | ||||||
Stock Based Compensation | 52,396 | ||||||
Deferred income taxes | 404,210 | ||||||
Loss on disposition of asset | |||||||
Accounts receivable | 161,232 | ||||||
Other non-current assets | (3,000,000) | ||||||
Inventories | |||||||
Prepaid expenses and other assets | 670,297 | ||||||
Trade payables | 77,158 | ||||||
Accrued liabilities | (117,316) | ||||||
Net cash provided by (used in) operating activities | 615,611 | ||||||
Purchases of property, plant and equipment | |||||||
Net cash provided by (used in) investing activities | |||||||
Change in checks written in excess of bank balance | |||||||
Net change in revolving line of credit | |||||||
Repayment of long-term debt | |||||||
Proceeds from issuance of stock | (955,396) | ||||||
Cash paid for deferred financing fees | (86,558) | ||||||
Proceeds from issuance of long-term debt | |||||||
Net cash provided by (used in) financing activities | (1,041,954) | ||||||
Effect of exchange rate changes on cash | 426,343 | ||||||
Net increase/(decrease) in cash and cash equivalents | |||||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | |||||||
Revision of Prior Period, Adjustment [Member] | Conversion from Accounts Payable To Common Stock [Member] | |||||||
Common stock issued | |||||||
Revision of Prior Period, Adjustment [Member] | Conversion from Notes Payable To Common Stock [Member] | |||||||
Common stock issued |
Note 15 - Restatement of Fina_5
Note 15 - Restatement of Financial Statements - Restatement of Financial Statements (Details) (Parentheticals) - USD ($) $ / shares in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 178,298 | $ 428,150 |
Allowance for doubtful accounts | 8,398,010 | 10,830,555 |
Inventories, net | 19,266,094 | 20,007,488 |
Prepaid expenses | 385,399 | 858,158 |
Office furniture and equipment | 2,685,450 | 2,649,280 |
Accumulated depreciation and amortization | 28,623,748 | 28,120,455 |
Goodwill | 0 | 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 | 1,285,064 | 1,866,796 |
Notes payable | $ 743,675 | $ 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 [Member] | ||
Cash and cash equivalents | $ 57,000 | |
Allowance for doubtful accounts | 85,000 | |
Inventories, net | 340,000 | |
Prepaid expenses | 127,000 | |
Office furniture and equipment | 303,000 | |
Accumulated depreciation and amortization | 104,000 | |
Goodwill | 440,000 | |
Checks written in excess of bank balance | 7,000 | |
Trade payables | 62,000 | |
Line of credit | 267,000 | |
Accrued liabilities | 89,000 | |
Notes payable | 27,000 | |
Previously Reported [Member] | ||
Cash and cash equivalents | 178,298 | |
Allowance for doubtful accounts | 8,884,291 | |
Inventories, net | 20,519,240 | |
Prepaid expenses | 394,797 | |
Office furniture and equipment | 2,685,450 | |
Accumulated depreciation and amortization | 28,657,592 | |
Goodwill | 1,473,176 | |
Checks written in excess of bank balance | 1,030,369 | |
Trade payables | 8,678,165 | |
Line of credit | 12,429,643 | |
Accrued liabilities | 1,705,380 | |
Notes payable | $ 443,675 | |
Preferred stock, par value (in dollars per share) | $ 0 | |
Preferred stock, shares authorized (in shares) | 3,000,000 | |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Common stock, no par value (in dollars per share) | $ 0 | |
Common stock, shares authorized (in shares) | 15,000,000 | |
Common stock, shares issued (in shares) | 3,879,608 | |
Common stock, shares outstanding (in shares) | 3,835,950 | |
Treasury stock, shares (in shares) | 43,658 | |
Previously Reported [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | $ 2,000 | |
Allowance for doubtful accounts | 515,000 | |
Inventories, net | 242,000 | |
Prepaid expenses | 106,000 | |
Office furniture and equipment | 303,000 | |
Accumulated depreciation and amortization | 107,000 | |
Goodwill | 0 | |
Checks written in excess of bank balance | 2,000 | |
Trade payables | 77,000 | |
Line of credit | 232,000 | |
Accrued liabilities | 35,000 | |
Notes payable | 30,000 | |
Revision of Prior Period, Adjustment [Member] | ||
Cash and cash equivalents | ||
Allowance for doubtful accounts | (486,281) | |
Inventories, net | (1,253,146) | |
Prepaid expenses | (9,398) | |
Office furniture and equipment | ||
Accumulated depreciation and amortization | (33,844) | |
Goodwill | (1,473,176) | |
Checks written in excess of bank balance | ||
Trade payables | ||
Line of credit | ||
Accrued liabilities | (420,316) | |
Notes payable | $ 300,000 | |
Preferred stock, par value (in dollars per share) | ||
Preferred stock, shares authorized (in shares) | ||
Preferred stock, shares issued (in shares) | ||
Preferred stock, shares outstanding (in shares) | ||
Common stock, no par value (in dollars per share) | ||
Common stock, shares authorized (in shares) | ||
Common stock, shares issued (in shares) | ||
Common stock, shares outstanding (in shares) | ||
Treasury stock, shares (in shares) | ||
Revision of Prior Period, Adjustment [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | ||
Allowance for doubtful accounts | ||
Inventories, net | ||
Prepaid expenses | ||
Office furniture and equipment | ||
Accumulated depreciation and amortization | ||
Goodwill | ||
Checks written in excess of bank balance | ||
Trade payables | ||
Line of credit | ||
Accrued liabilities | ||
Notes payable |