Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 01, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Yunhong CTI LTD. | |
Entity Central Index Key | 0001042187 | |
Trading Symbol | ctib | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 4,494,608 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 160,105 | $ 845,098 |
Accounts receivable | 7,288,853 | 9,011,569 |
Inventories, net | 12,686,643 | 13,959,499 |
Prepaid expenses | 306,923 | 353,183 |
Other current assets | 1,112,566 | 1,312,205 |
Receivable from related party | 1,386,638 | 1,387,131 |
Current assets of discontinued operations | 881,378 | 756,031 |
Total current assets | 23,823,106 | 27,624,716 |
Property, plant and equipment: | ||
Machinery and equipment | 23,466,349 | 23,822,808 |
Building | 3,374,334 | 3,374,334 |
Office furniture and equipment | 2,269,379 | 2,289,444 |
Intellectual property | 783,179 | 783,179 |
Land | 250,000 | 250,000 |
Leasehold improvements | 382,213 | 415,737 |
Fixtures and equipment at customer locations | 518,450 | 518,450 |
Projects under construction | 111,177 | 74,929 |
Property, Plant and Equipment, Gross | 31,155,081 | 31,528,881 |
Less : accumulated depreciation and amortization | (28,890,383) | (28,997,809) |
Total property, plant and equipment, net | 2,264,698 | 2,531,072 |
Other assets: | ||
Operating lease right-of-use | 671,872 | 1,046,438 |
Other assets | 84,179 | 118,857 |
Total other assets | 756,051 | 1,165,295 |
TOTAL ASSETS | 26,843,855 | 31,321,083 |
Current liabilities: | ||
Trade payables | 6,249,294 | 7,021,580 |
Line of credit | 10,106,037 | 14,518,107 |
Notes payable - current portion | 3,198,453 | 3,451,880 |
Notes payable affiliates - current portion | 10,311 | 12,684 |
Operating Lease Liabilities | 399,044 | 658,374 |
Accrued liabilities | 1,192,690 | 1,205,027 |
Current liabilities of discontinued operations | 303,715 | 656,753 |
Total current liabilities | 21,459,544 | 27,524,405 |
Long-term liabilities: | ||
Notes payable - affiliates | 9,436 | 14,340 |
Notes payable, net of current portion | 1,315,107 | 1,024,441 |
Operating Lease Liabilities | 272,828 | 388,064 |
Notes payable - officers, subordinated | 1,074,442 | 1,058,486 |
Deferred gain (non current) | 159,156 | 184,840 |
Total long-term debt, net of current portion | 2,830,969 | 2,670,171 |
Total long-term liabilities | 2,830,969 | 2,670,171 |
TOTAL LIABILITIES | 24,290,513 | 30,194,576 |
Yunhong CTI, Ltd stockholders' equity: | ||
Preferred Stock -- no par value, 3,000,000 shares authorized, 410,860 shares issued and outstanding at March 31, 2020 and nil at December 31,2019 respectively (liquidation preference - $4,108,000 as of March 31, 2020) | 2,161,607 | |
Common stock - no par value, 15,000,000 shares authorized, 4,219,608 and 3,879,608 shares issued and 4,175,950 and 3,835,930 shares outstanding at March 31, 2020 and December 31, 2019 respectively | 14,321,161 | 13,898,494 |
Paid-in-capital | 4,287,470 | 3,587,287 |
Accumulated deficit | (10,631,537) | (9,992,841) |
Accumulated other comprehensive loss | (6,712,315) | (5,348,812) |
Less: Treasury stock, 43,658 shares | (160,784) | (160,784) |
Total Yunhong CTI, Ltd Stockholders' Equity | 3,265,602 | 1,983,344 |
Noncontrolling interest | (712,260) | (856,837) |
Total Equity | 2,553,342 | 1,126,507 |
TOTAL LIABILITIES AND EQUITY | $ 26,843,855 | $ 31,321,083 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
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) | 410,860 | 0 |
Preferred stock, shares outstanding (in shares) | 410,860 | 0 |
Preferred stock, liquidation preference | $ 4,108,000 | $ 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) | 4,219,608 | 3,879,608 |
Common stock, shares outstanding (in shares) | 4,175,950 | 3,835,930 |
Treasury stock, shares (in shares) | 43,658 | 43,658 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 7,067,501 | $ 8,680,017 |
Cost of Sales | 5,586,059 | 6,723,011 |
Gross profit | 1,481,442 | 1,957,006 |
Operating expenses: | ||
General and administrative | 702,431 | 1,358,639 |
Selling | 53,754 | 119,388 |
Advertising and marketing | 120,829 | 158,834 |
Impairment of long-lived assets | 1,253,176 | |
Gain on sale of assets | (25,684) | (23,547) |
Total operating expenses | 851,330 | 2,866,490 |
Gain (Loss) from operations | 630,112 | (909,484) |
Other (expense) income: | ||
Interest expense | (441,177) | (564,160) |
Other Expense | (42,334) | (303,109) |
Foreign currency loss | (154,083) | (5,683) |
Total other expense, net | (637,594) | (872,952) |
Loss from continuing operations before taxes | (7,482) | (1,782,436) |
Income tax expense | ||
Loss from continuing operations | (7,482) | (1,782,436) |
Loss from discontinued operations , net of tax | (486,637) | (774,040) |
Net Loss | (494,119) | (2,556,476) |
Less: Net income (loss) attributable to noncontrolling interest | 144,577 | (62,388) |
Net loss attributable to Yunhong CTI, Ltd | (638,696) | (2,494,088) |
Other Comprehensive Income (Loss) | ||
Foreign currency adjustment | (1,363,503) | 235,876 |
Comprehensive Loss | (1,857,622) | (2,320,600) |
Deemed Dividends on preferred stock and amortization of beneficial conversion feature | (2,380,944) | |
Net loss attributable to Yunhong CTI Ltd Shareholders | $ (3,019,640) | $ (2,320,600) |
Basic loss per common share | ||
Continuing operations (in dollars per share) | $ (0.60) | $ (0.46) |
Discontinued operations (in dollars per share) | (0.12) | (0.21) |
Basic loss per common share (in dollars per share) | (0.72) | (0.67) |
Diluted loss per common share | ||
Continuing operations (in dollars per share) | (0.60) | (0.46) |
Discontinued operations (in dollars per share) | (0.12) | (0.21) |
Diluted loss per common share (in dollars per share) | $ (0.72) | $ (0.67) |
Weighted average number of shares and equivalent shares of common stock outstanding: | ||
Basic (in shares) | 4,175,950 | 3,735,950 |
Diluted (in shares) | 4,175,950 | 3,735,950 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows from operating activities: | |||
Net loss | $ (494,119) | $ (2,556,476) | |
Depreciation and amortization | 294,003 | 308,084 | |
Amortization of deferred gain on sale/leaseback | (25,684) | (27,474) | |
Provision for losses on accounts receivable | 10,492 | 6,085 | |
Provision for losses on inventories | 3,770 | (10,656) | |
Impairment of long-lived assets | 1,253,176 | ||
Stock Based Compensation | 28,967 | ||
Change in assets and liabilities: | |||
Accounts receivable | 797,188 | 660,299 | |
Inventories | 241,530 | (827,084) | |
Prepaid expenses and other assets | 133,257 | (20,233) | |
Trade payables | (157,864) | 2,000,334 | |
Accrued liabilities | 39,729 | (149,957) | |
Net cash provided by operating activities | 842,302 | 665,065 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (18,526) | (52,243) | |
Net cash used in investing activities | (18,526) | (52,243) | |
Cash flows from financing activities: | |||
Change in checks written in excess of bank balance | 18,504 | ||
Net change in revolving line of credit | (4,340,992) | (1,235,126) | |
Repayment of long-term debt | (375,437) | (213,521) | |
Proceeds from issuance of stock | 3,626,600 | ||
Cash paid for stock issuance costs | (570,160) | ||
Cash paid for deferred financing fees | (39,722) | (27,585) | |
Proceeds from issuance of long-term debt | 650,000 | ||
Net cash used in financing activities | (1,699,711) | (807,728) | |
Effect of exchange rate changes on cash | 190,942 | (57,802) | |
Net decrease in cash and cash equivalents | (684,993) | (252,708) | |
Cash and cash equivalents at beginning of period | 845,098 | 428,150 | |
Cash and cash equivalents at end of period | [1] | 160,105 | 175,442 |
Supplemental disclosure of cash flow information: | |||
Cash payments for interest | 441,000 | 367,000 | |
Accrued Dividend on preferred stock | 53,000 | ||
Accrual for Stock Issuance Costs | 250,000 | ||
Series A Preferred Stock [Member] | |||
Supplemental disclosure of cash flow information: | |||
Amortization of beneficial conversion feature and deemed dividend on Series A Preferred stock | 2,300,000 | ||
Stock Placement Agent [Member] | |||
Supplemental disclosure of cash flow information: | |||
Common stock issued | 306,000 | ||
Series A Preferred Stock Warrants [Member] | |||
Supplemental disclosure of cash flow information: | |||
Issuance of Placement agent warrants in connection with Series A Preferred offering | 753,000 | ||
Conversion of Debt to Series A Preferred [Member] | |||
Supplemental disclosure of cash flow information: | |||
Conversion of debt to Series A Preferred | 478,000 | ||
Conversion from Notes Payable To Common Stock [Member] | |||
Supplemental disclosure of cash flow information: | |||
Common stock issued | $ 600,000 | ||
[1] | The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows. The cash and equivalents amounts presented above differ from cash and equivalents in the Consolidated Balance Sheets due to cash included in "Current assets of discontinued operations in amount of $57,000." |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2020 - USD ($) | Preferred Stock [Member] | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 3,879,608 | (43,658) | ||||||
Balance at Dec. 31, 2019 | $ 13,898,494 | $ 3,587,287 | $ (9,992,841) | $ (5,348,812) | $ (160,784) | $ (856,837) | $ 1,126,507 | |
Convertible Preferred Stock Issuance - Cash (in shares) | 362,660 | 140,000 | ||||||
Convertible Preferred Stock Issuance - Cash | $ 3,509,933 | $ 116,667 | 3,626,600 | |||||
Convertible Preferred Stock Issuance - conversion of debt (in shares) | 48,200 | |||||||
Convertible Preferred Stock Issuance - conversion of debt | $ 478,017 | 478,017 | ||||||
Common stock issued for placement agent fees (in shares) | 200,000 | |||||||
Common stock issued for placement agent fees | $ (306,000) | $ 306,000 | ||||||
Warrants issued to placement agent and other issuance costs | (752,924) | 752,924 | ||||||
Placement agent fees and issuance costs | (820,160) | (820,160) | ||||||
Beneficial conversion feature of Preferred Stock | (2,328,473) | 2,328,473 | ||||||
Deemed Dividend on beneficial conversion feature of Preferred Stock | 2,328,473 | (2,328,473) | ||||||
Accrued Deemed Dividend | 52,741 | (52,741) | ||||||
Net loss | (638,696) | 144,577 | (494,119) | |||||
Foreign Currency Translation | (1,363,503) | (1,363,503) | ||||||
Balance (in shares) at Mar. 31, 2020 | 410,860 | 4,219,608 | (43,658) | |||||
Balance at Mar. 31, 2020 | $ 2,161,607 | $ 14,321,161 | $ 4,287,470 | $ (10,631,537) | $ (6,712,315) | $ (160,784) | $ (712,260) | $ 2,553,342 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, 10 8 X. not three March 31, 2020 not may December 31, 2020. 10 December 31, 2019. Principles of consolidation and nature of operations: The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd. and its wholly-owned subsidiaries, CTI Balloons Limited (CTI Balloons; divested during 2019 2 third 2019, July 1, 2019 first 2019 not first 2020. The Company (i) designs, manufactures and distributes balloon and related novelty (candy and party related) products, and (ii) operates systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products Variable Interest Entities (“VIE’s”): The determination of whether or not 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 (loss) per share: Basic (loss) per common share is computed by dividing the net (loss) by the weighted average number of shares of common stock outstanding for each period. Diluted (loss) per share is computed by dividing the net (loss) by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable through the common stock equivalents. The effect of dilution on net loss becomes anti-dilutive and therefore is not Common stock equivalents, including Series A Preferred, stock options and warrants, as of March 31, 2020 March 31, 2019 4.1 0.6 not three March 31, 2020 March 31, 2019. As of March 31, 2020, 2019, 632,660 471,000, Significant Accounting Policies: The Company’s significant accounting policies are summarized in Note 2 December 31, 2019. no three March 31, 2020 . The Company evaluates embedded conversion features within convertible debt under ASC 815 not 815, 470 20 On January 1, 2019, 842 12. 842 12 not Foreign Currency Translation The Company follows Section 830 10 45 830 10 45” 830 10 45 830 10 45, The functional currency of each foreign subsidiary is determined based on management’s judgment and involves consideration of all relevant economic facts and circumstances affecting the subsidiary. Generally, the currency in which the subsidiary transacts a majority of its transactions, including billings, financing, payroll and other expenditures, would be considered the functional currency, but any dependency upon the parent and the nature of the subsidiary’s operations must also be considered. If a subsidiary’s functional currency is deemed to be the local currency, then any gain or loss associated with the translation of that subsidiary’s financial statements is included in accumulated other comprehensive income. However, if the functional currency is deemed to be the U.S. Dollar, then any gain or loss associated with the re-measurement of these financial statements from the local currency to the functional currency would be included in the consolidated statements of income and comprehensive income (loss). If the Company disposes of foreign subsidiaries, then any cumulative translation gains or losses would be recorded into the consolidated statements of income and comprehensive income (loss). If the Company determines that there has been a change in the functional currency of a subsidiary to the U.S. Dollar, any translation gains or losses arising after the date of change would be included within the statement of income and comprehensive income (loss). Based on an assessment of the factors discussed above, the management of the Company determined its operating subsidiary’s local currency (i.e. the Mexican Peso) to be the functional currency for its foreign subsidiary. The functional currency of its German subsidiary is the Euro. Beneficial conversion feature of convertible preferred stock The Company accounts for the beneficial conversion feature on its convertible preferred stock in accordance with ASC 470 20, Debt with Conversion and Other Options To determine the effective conversion price, the Company first The BCF is recognized by allocating the intrinsic value of the conversion option to additional paid-in capital, resulting in a discount on the convertible preferred stock. This discount is accreted from the date on which the BCF is first not Warrants The Company accounts for freestanding warrants within stockholders’ equity or as liabilities based on the characteristics and provisions of each instrument. The Company evaluates outstanding warrants in accordance with ASC 480, 815, none |
Note 2 - Discontinued Operation
Note 2 - Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 2 Discontinued Operations In July 2019 not July 19, 2019, fourth 2019 2020. In October 2019, not December 31, 2019. 90 March 31, 2020. CTI Balloons recorded losses from discontinued operations, net of taxes of ( $73,000 three March 31, 2019. CTI Europe recorded a gain from discontinued operations, net of taxes of $317,000 three March 31, 2020. $147,000 three March 31, 2019. Our Ziploc product line recorded a loss from discontinued operations, net of taxes of ( $804,000 three March 31, 2020. $558,000 three March 31, 2019. Summarized Discontinued Operations Financial Information The following table summarizes the major line items from CTI Europe and Ziploc product line that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Income for the three 03/31/20 03/31/19 Income Statement Net Sales 1,057,058 3,856,372 Cost of Sales 1,174,045 3,817,207 Gross Margin (116,987 ) 39,165 SG&A 524,550 815,179 Operating Income (641,537 ) (776,014 ) Other Expense 13,220 (1,974 ) Total pretax loss from discontinued operations (654,757 ) (774,040 ) Gain from re-measurement of valuation allowance 168,120 - Net loss prior to non-controlling interest (486,637 ) (774,040 ) Non-controlling Interest share of profit/loss 152,094 (76,017 ) Net Loss (638,731 ) (698,023 ) The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented: Yunhong CTI Ltd. Consolidated Balance Sheet 3/31/2020 12/31/2019 Balance Sheet Assets Current Assets Cash on hand and Banks 6,073 4,307 Accounts Receivable 686,639 539,910 Inventory 74,383 Prepaid & Other 112,889 135,912 TOTAL Current Assets 805,601 754,512 NET Property, Plant, and Equipment 8,517 53,919 Other Assets Operating lease right-of-use 220,039 220,541 Other - 47,958 TOTAL Other Assets 220,039 268,499 TOTAL Non-Current Assets 228,556 322,418 Valuation Allowance on Assets Held for Sale (152,779 ) (320,899 ) TOTAL Assets 881,378 756,031 Liabilities Current Liabilities Trade Accounts Payable 31,339 384,333 Operating Lease Liabilities - Current 121,070 203,291 Other/Accrued Liabilities 20,149 19,562 TOTAL Current Liabilities 172,558 607,187 Non-Current Liabilities Operating Lease Liabilities - Non Current 98,968 17,250 Other Non-Current 32,189 32,317 TOTAL Non-Current Liabilities 131,157 49,567 TOTAL Liabilities 303,715 656,753 The cash flows related to discontinued operations have not Three Months Ended March 31, 2020 2019 Depreciation 154,892 89,574 |
Note 3 - Liquidity and Going Co
Note 3 - Liquidity and Going Concern | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Liquidity and Going Concern [Text Block] | Note 3 – Liquidity and Going Concern 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 4 4, 2018 March 2019 March 31, 2019 not June 30, 2019 July 31, 2019. August 1, 2019, October 18, 2019, 4” January 10, 2020 not January 13, 2020, 5” first no December 31, 2020. 4, June 2020. During 2019 2020. January 3, 2020 February 24, 2020 April 13, 2020, ( 500,000 $10.00 $5,000,000. $2 $1 June 1, 2020, $478,017 48,200 January 2020 June 2020. 400,000 three In addition to the above, financial performance in 2017, 2018 2019, $1.6 $3.6 $7.1 March 31, 2020. Additionally, the Company has experienced challenges in maintaining adequate seasonal working capital balances, made more challenging by increases in financing and labor costs, along with a supply disruption in the helium market during 2019. In December 2019, 19 19 19 19 may may may may may $1 second 2020 19 not three March 31, 2020, not 19 Finally, claims have been filed in court by certain vendors regarding claims of non-payment pursuant to contractual obligations. While many have been resolved, the sum of the outstanding claims made or threatened exceeds $0.5 Management’s plans include: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 Management Assessment Considering both quantitative and qualitative information, management believes that our plans to obtain additional financing may 2020 may |
Note 4 - Debt
Note 4 - Debt | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 4 During December 2017, $6 $18 December 2022. Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at CTI Industries (U.S.) and Flexo Universal (Mexico). We notified PNC of our failure to meet two March 31, 2018. June 8, 2018, No. 1 1” September 2018, 1 October 8, 2018, No. 2 2” 2 $5 $2 September 30, 2018, $7.5 November 15, 2018 no November 15, 2018 We engaged PNC to resolve this failure to meet our amended covenant, and as of March 2019 March 31, 2019 not July 31, 2019 June 30, 2019. $1.2 zero six $250,000. On August 1, 2019, October 2019 January 2020. January 13, 2020, No. 5 first no December 31, 2020. On June 15, 2020, 0.75 1.00 three March 31, 2020 ( "March March Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at CTI Industries (U.S.) and Flexo Universal (Mexico). Certain terms of the PNC Agreements include: ● Restrictive Covenants o Borrow money; o Pay dividends and make distributions; o Make certain investments; o Use assets as security in other transactions; o Create liens; o Enter into affiliate transactions; o Merge or consolidate; or o Transfer and sell assets. ● Financial Covenants o We were 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. This requirement was removed during the January 2020 5. 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. The highest values allowed for each quarterly calculation are as follow: Fiscal Quarter Ratio March 31, 2020 0.75 to 1.00 June 30, 2020 0.85 to 1.00 September 30, 2020 0.95 to 1.00 December 31, 2020 1.05 to 1.00 March 31, 2021 and thereafter 1.15 to 1.00 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 believe that, during the first three 2020, not Failure to comply with these covenants has caused us to pay a higher rate of interest (by 2% may 3, As of December 2017, $1,099,000, $400,000, December 2017 January 2019, $600,000 181,000 No 2019 three March 31, 2020, $16,000 $15,000, first three 2020 2019, July 1, 2019, $1.3 |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation; Changes in Equity | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 5 The Company follows 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. The Company’s net loss for the three March 31, 2020 2019 none $29,000, March 31, 2020, no On April 10, 2009, June 5, 2009, 2009 “2009 2009 510,000 June 8, 2018, 2018 “2018 2018 300,000 no 8 12 not March 31, 2020, 20,000 A summary of the Company’s stock option activity, which includes grants of 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, 2019 471,144 $ 3.95 Granted 612,660 1.00 Cancelled/Expired 432,519 - Exercised/Issued 15,000 5.48 Outstanding at March 31, 2020 636,285 $ 1.10 Exercisable at March 31, 2020 19,625 $ 5.48 The instruments above have no March 31, 2020 March 31, 2020. |
Note 6 - Legal Proceedings
Note 6 - Legal Proceedings | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | Note 6 The Company may not During 2019 2020, $0.5 June 2020. not |
Note 7 - Other Comprehensive In
Note 7 - Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 7 In the three March 31, 2020, $1,364,000 25% 19 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, 2020 $ (5,348,812 ) $ (5,348,812 ) Current period change, net of tax (1,363,503) (1,363,503 ) Ending Balance as of March 31, 2020 (6,712,315 ) (6,712,315) |
Note 8 - Geographic Segment Dat
Note 8 - Geographic Segment Data | 3 Months Ended |
Mar. 31, 2020 | |
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 For the Three Months Ended March 31, 2020 2019 United States $ 5,426,000 $ 6,600,000 Mexico 1,642,000 2,080,000 $ 7,068,000 $ 8,680,000 Total Assets at March 31, December 31, 2020 2019 United States $ 17,770,000 $ 19,668,000 Mexico 8,193,000 10,897,000 Assets Held for Sale International Subsidiaries 881,000 756,000 $ 26,844,000 $ 31,321,000 |
Note 9 - Inventories, Net of Co
Note 9 - Inventories, Net of Continuing Operations | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 9 Inventories, Net of Continuing Operations March 31, 2020 December 31, 2019 Raw materials $ 1,555,838 $ 1,544,949 Work in process 3,171,759 3,110,296 Finished goods 8,431,874 9,766,060 In Transit 92,671 99,923 Allowance for excess quantities (565,499 ) (561,729 ) Total inventories $ 12,686,643 $ 13,959,499 |
Note 10 - Concentration of Cred
Note 10 - Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 10 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 March 31, 2020 2019, one 10% three March 31, 2020 2019 Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 3,222,000 45 % $ 3,861,000 45 % As of March 31, 2020, $2,097,000 29% March 31, 2019 $2,933,000 39% |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 11 - Related Party Transactions John H. Schwan, who resigned as Chairman of the Board on June 1, 2020, one none $8,000 three March 31, 2020 2019, During the period from January 2003 $1.6 December 31, 2018. January 2019 $0.6 $1.1 March 31, 2020. 2020 2019, $15,000 $16,000, Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of March 31, 2020 2019 $9,000 $14,000, On July 1, 2019, $1.3 |
Note 12 - Derivative Instrument
Note 12 - Derivative Instruments; Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | Note 12 - 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 March 31, 2020, no |
Note 13 - Leases
Note 13 - Leases | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 13 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 The table below describes our lease position as of March 31, 2020: Assets As of March 31, 2020 Operating lease right-of-use assets $ 1,371,000 Accumulated amortization (699,000 ) Net lease assets 672,000 Liabilities Current Operating 399,000 Noncurrent Operating 273,000 Total lease liabilities 672,000 Weighted average remaining term (years) – operating leases 2 Weighted average discount rate – operating leases 11.25 % During the three March 31, 2020, Operating right-of-use lease asset amortization $ 251,000 Total expense during three months ended March 31, 2020 251,000 Operating lease expense were approximately $251,000 three March 31, 2020. not $251,000 three March 31, 2020. The following table summarizes the maturities of our lease liabilities for all operating leases as of March 31, 2020 (in thousands) 3/31/2020 2020 $ 382 2021 277 2022 and thereafter 33 Total lease payments 692 less: Imputed interest (20 ) Present value of lease liabilities $ 672 |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 14 On April 30, 2020, $1,047,700 March 27, 2020, April 23, 2020. one April 30, 2022 six may no may may no On June 1, 2020, On April 13, 2020, second 130,000 $10.00 $1,300,000 third 260,000 April 13, 2020, June 5, 2020, 50,000 $10.00 $500,000 ten 10% ten 10% $1.00 |
Note 15 - Equity Transaction
Note 15 - Equity Transaction | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 15 Transaction On January 3, 2020, 500,000 $10.00 $5,000,000 Holders of the Series A Preferred will be entitled to receive quarterly dividends at the annual rate of 8% $10 may $10 Each holder of Series A Preferred shall have the right to convert the stated value of such shares, as well as accrued but unpaid declared dividends thereon (collectively the “Conversion Amount”) into shares of the Company’s common stock. The number of shares of common stock issuable upon conversion of the Conversion Amount shall equal the Conversion Amount divided by the conversion price of $1.00, ten 10 50,000 80% not, On January 13, 2020, first 250,000 $2,500,000. February 24, 2020, 70,000 $10.00 $700,000 second 140,000 During the first 2020, 90,860 $426,600 $478,000. In connection with the issuance of the Series A Preferred, the Company paid placement agents a fee equal to ten 10% ten 10% $1.00 $1,679,000 Beneficial Conversion Features The issuance of the Company’s Series A Preferred Stock generated a beneficial conversion feature (BCF), which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The fair value of the common stock into which the Series A Preferred was convertible exceeded the allocated purchase price fair value of the Series A Preferred Stock at the closing dates by approximately $2.2 Warrants The Company evaluates outstanding warrants in accordance with ASC 480, 815, none first 2020, 612,660 $1.00 $753,000, 5 155%, 1.19%, 0%. As of March 31, 2020 December 31, 2019, 3/31/2020 12/31/2019 Conversion of Series A Preferred 5,296,800 - Stock Warrants 612,600 - Stock Options - - 5,909,400 - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying condensed (a) consolidated balance sheet as of March 31, 2020, 10 8 X. not three March 31, 2020 not may December 31, 2020. 10 December 31, 2019. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation and nature of operations: The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd. and its wholly-owned subsidiaries, CTI Balloons Limited (CTI Balloons; divested during 2019 2 third 2019, July 1, 2019 first 2019 not first 2020. The Company (i) designs, manufactures and distributes balloon and related novelty (candy and party related) products, and (ii) operates systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities (“VIE’s”): The determination of whether or not |
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 (loss) per share: Basic (loss) per common share is computed by dividing the net (loss) by the weighted average number of shares of common stock outstanding for each period. Diluted (loss) per share is computed by dividing the net (loss) by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable through the common stock equivalents. The effect of dilution on net loss becomes anti-dilutive and therefore is not Common stock equivalents, including Series A Preferred, stock options and warrants, as of March 31, 2020 March 31, 2019 4.1 0.6 not three March 31, 2020 March 31, 2019. |
New Accounting Pronouncements, Policy [Policy Text Block] | Significant Accounting Policies: The Company’s significant accounting policies are summarized in Note 2 December 31, 2019. no three March 31, 2020 . The Company evaluates embedded conversion features within convertible debt under ASC 815 not 815, 470 20 On January 1, 2019, 842 12. 842 12 not |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Company follows Section 830 10 45 830 10 45” 830 10 45 830 10 45, The functional currency of each foreign subsidiary is determined based on management’s judgment and involves consideration of all relevant economic facts and circumstances affecting the subsidiary. Generally, the currency in which the subsidiary transacts a majority of its transactions, including billings, financing, payroll and other expenditures, would be considered the functional currency, but any dependency upon the parent and the nature of the subsidiary’s operations must also be considered. If a subsidiary’s functional currency is deemed to be the local currency, then any gain or loss associated with the translation of that subsidiary’s financial statements is included in accumulated other comprehensive income. However, if the functional currency is deemed to be the U.S. Dollar, then any gain or loss associated with the re-measurement of these financial statements from the local currency to the functional currency would be included in the consolidated statements of income and comprehensive income (loss). If the Company disposes of foreign subsidiaries, then any cumulative translation gains or losses would be recorded into the consolidated statements of income and comprehensive income (loss). If the Company determines that there has been a change in the functional currency of a subsidiary to the U.S. Dollar, any translation gains or losses arising after the date of change would be included within the statement of income and comprehensive income (loss). Based on an assessment of the factors discussed above, the management of the Company determined its operating subsidiary’s local currency (i.e. the Mexican Peso) to be the functional currency for its foreign subsidiary. The functional currency of its German subsidiary is the Euro. |
Beneficial Conversion Feature of Convertible Preferred Stock [Policy Text Block] | Beneficial conversion feature of convertible preferred stock The Company accounts for the beneficial conversion feature on its convertible preferred stock in accordance with ASC 470 20, Debt with Conversion and Other Options To determine the effective conversion price, the Company first The BCF is recognized by allocating the intrinsic value of the conversion option to additional paid-in capital, resulting in a discount on the convertible preferred stock. This discount is accreted from the date on which the BCF is first not |
Warrants [Policy Text Block] | Warrants The Company accounts for freestanding warrants within stockholders’ equity or as liabilities based on the characteristics and provisions of each instrument. The Company evaluates outstanding warrants in accordance with ASC 480, 815, none |
Note 2 - Discontinued Operati_2
Note 2 - Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | 03/31/20 03/31/19 Income Statement Net Sales 1,057,058 3,856,372 Cost of Sales 1,174,045 3,817,207 Gross Margin (116,987 ) 39,165 SG&A 524,550 815,179 Operating Income (641,537 ) (776,014 ) Other Expense 13,220 (1,974 ) Total pretax loss from discontinued operations (654,757 ) (774,040 ) Gain from re-measurement of valuation allowance 168,120 - Net loss prior to non-controlling interest (486,637 ) (774,040 ) Non-controlling Interest share of profit/loss 152,094 (76,017 ) Net Loss (638,731 ) (698,023 ) 3/31/2020 12/31/2019 Balance Sheet Assets Current Assets Cash on hand and Banks 6,073 4,307 Accounts Receivable 686,639 539,910 Inventory 74,383 Prepaid & Other 112,889 135,912 TOTAL Current Assets 805,601 754,512 NET Property, Plant, and Equipment 8,517 53,919 Other Assets Operating lease right-of-use 220,039 220,541 Other - 47,958 TOTAL Other Assets 220,039 268,499 TOTAL Non-Current Assets 228,556 322,418 Valuation Allowance on Assets Held for Sale (152,779 ) (320,899 ) TOTAL Assets 881,378 756,031 Liabilities Current Liabilities Trade Accounts Payable 31,339 384,333 Operating Lease Liabilities - Current 121,070 203,291 Other/Accrued Liabilities 20,149 19,562 TOTAL Current Liabilities 172,558 607,187 Non-Current Liabilities Operating Lease Liabilities - Non Current 98,968 17,250 Other Non-Current 32,189 32,317 TOTAL Non-Current Liabilities 131,157 49,567 TOTAL Liabilities 303,715 656,753 Three Months Ended March 31, 2020 2019 Depreciation 154,892 89,574 |
Note 4 - Debt (Tables)
Note 4 - Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Leverage Ratios [Table Text Block] | Fiscal Quarter Ratio March 31, 2020 0.75 to 1.00 June 30, 2020 0.85 to 1.00 September 30, 2020 0.95 to 1.00 December 31, 2020 1.05 to 1.00 March 31, 2021 and thereafter 1.15 to 1.00 |
Note 5 - Stock-based Compensa_2
Note 5 - Stock-based Compensation; Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Activity [Table Text Block] | Shares under Option Weighted Average Exercise Price Balance at December 31, 2019 471,144 $ 3.95 Granted 612,660 1.00 Cancelled/Expired 432,519 - Exercised/Issued 15,000 5.48 Outstanding at March 31, 2020 636,285 $ 1.10 Exercisable at March 31, 2020 19,625 $ 5.48 |
Note 7 - Other Comprehensive _2
Note 7 - Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 $ (5,348,812 ) $ (5,348,812 ) Current period change, net of tax (1,363,503) (1,363,503 ) Ending Balance as of March 31, 2020 (6,712,315 ) (6,712,315) |
Note 8 - Geographic Segment D_2
Note 8 - Geographic Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Net Sales to Outside Customers For the Three Months Ended March 31, 2020 2019 United States $ 5,426,000 $ 6,600,000 Mexico 1,642,000 2,080,000 $ 7,068,000 $ 8,680,000 Total Assets at March 31, December 31, 2020 2019 United States $ 17,770,000 $ 19,668,000 Mexico 8,193,000 10,897,000 Assets Held for Sale International Subsidiaries 881,000 756,000 $ 26,844,000 $ 31,321,000 |
Note 9 - Inventories, Net of _2
Note 9 - Inventories, Net of Continuing Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 2020 December 31, 2019 Raw materials $ 1,555,838 $ 1,544,949 Work in process 3,171,759 3,110,296 Finished goods 8,431,874 9,766,060 In Transit 92,671 99,923 Allowance for excess quantities (565,499 ) (561,729 ) Total inventories $ 12,686,643 $ 13,959,499 |
Note 10 - Concentration of Cr_2
Note 10 - Concentration of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 3,222,000 45 % $ 3,861,000 45 % |
Note 13 - Leases (Tables)
Note 13 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Assets and Liabilities [Table Text Block] | Assets As of March 31, 2020 Operating lease right-of-use assets $ 1,371,000 Accumulated amortization (699,000 ) Net lease assets 672,000 Liabilities Current Operating 399,000 Noncurrent Operating 273,000 Total lease liabilities 672,000 Weighted average remaining term (years) – operating leases 2 Weighted average discount rate – operating leases 11.25 % |
Lease, Cost [Table Text Block] | Operating right-of-use lease asset amortization $ 251,000 Total expense during three months ended March 31, 2020 251,000 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (in thousands) 3/31/2020 2020 $ 382 2021 277 2022 and thereafter 33 Total lease payments 692 less: Imputed interest (20 ) Present value of lease liabilities $ 672 |
Note 15 - Equity Transaction (T
Note 15 - Equity Transaction (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Shares Reserved for Future Issuance [Table Text Block] | 3/31/2020 12/31/2019 Conversion of Series A Preferred 5,296,800 - Stock Warrants 612,600 - Stock Options - - 5,909,400 - |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 4,100,000 | 600,000 |
Number of Shares Issuable Upon the Exercise of Options and Warrants (in shares) | 632,660 | 471,000 |
Note 2 - Discontinued Operati_3
Note 2 - Discontinued Operations (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | $ (486,637) | $ (774,040) |
CTI Balloons Limited [Member] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | 73,000 | |
CTI Europe [Member] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | 317,000 | (147,000) |
Ziploc Product Line [Member] | Discontinued Operations [Member] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | $ (804,000) | $ 558,000 |
Note 2 - Discontinued Operati_4
Note 2 - Discontinued Operations - Summarized Discontinued Operating Financial Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Net loss prior to non-controlling interest | $ (486,637) | $ (774,040) | |
Net Loss | (638,731) | (698,023) | |
TOTAL Current Assets | 881,378 | $ 756,031 | |
Valuation Allowance on Assets Held for Sale | (152,779) | (320,899) | |
TOTAL Assets | 881,000 | 756,000 | |
TOTAL Current Liabilities | 303,715 | 656,753 | |
TOTAL Non-Current Liabilities | 2,830,969 | 2,670,171 | |
CTI Balloons and CTI Europe [Member] | |||
Net Sales | 1,057,058 | 3,856,372 | |
Cost of Sales | 1,174,045 | 3,817,207 | |
Gross Margin | (116,987) | 39,165 | |
SG&A | 524,550 | 815,179 | |
Operating Income | (641,537) | (776,014) | |
Other Expense | 13,220 | (1,974) | |
Total pretax loss from discontinued operations | (654,757) | (774,040) | |
Gain from re-measurement of valuation allowance | 168,120 | ||
Net loss prior to non-controlling interest | (486,637) | (774,040) | |
Non-controlling Interest share of profit/loss | 152,094 | (76,017) | |
Cash on hand and Banks | 6,073 | 4,307 | |
Accounts Receivable | 686,639 | 539,910 | |
Inventory | 74,383 | ||
Prepaid & Other | 112,889 | 135,912 | |
TOTAL Current Assets | 805,601 | 754,512 | |
NET Property, Plant, and Equipment | 8,517 | 53,919 | |
Operating lease right-of-use | 220,039 | 220,541 | |
Other | 47,958 | ||
TOTAL Other Assets | 220,039 | 268,499 | |
TOTAL Non-Current Assets | 228,556 | 322,418 | |
TOTAL Assets | 881,378 | 756,031 | |
Trade Accounts Payable | 31,339 | 384,333 | |
Operating Lease Liabilities - Current | 121,070 | 203,291 | |
Other/Accrued Liabilities | 20,149 | 19,562 | |
TOTAL Current Liabilities | 172,558 | 607,187 | |
Operating Lease Liabilities - Non Current | 98,968 | 17,250 | |
Other Non-Current | 32,189 | 32,317 | |
TOTAL Non-Current Liabilities | 131,157 | 49,567 | |
TOTAL Liabilities | 303,715 | $ 656,753 | |
Depreciation | $ 154,892 | $ 89,574 |
Note 3 - Liquidity and Going _2
Note 3 - Liquidity and Going Concern (Details Textual) - USD ($) | Jun. 01, 2020 | Jan. 03, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 26, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Sale of Stock, Number of Shares Issued in Transaction | $ 3,626,600 | |||||||
Net Income (Loss) Attributable to Parent, Total | (638,696) | $ (2,494,088) | $ (7,100,000) | $ (3,600,000) | $ (1,600,000) | |||
Claims For Non Payment Of Contractual Obligations [Member] | ||||||||
Aggregate Claims Made or Threatened | $ 500,000 | |||||||
Purchase Agreement [Member] | Subsequent Event [Member] | ||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 400,000 | |||||||
Purchase Agreement [Member] | Series A Preferred Stock [Member] | ||||||||
Sale of Stock, Shares Agreed to Purchase (in shares) | 500,000 | |||||||
Shares Issued, Price Per Share (in dollars per share) | $ 10 | |||||||
Sale of Stock, Offering Amount | $ 5,000,000 | |||||||
Purchase Agreement [Member] | Series A Preferred Stock [Member] | Subsequent Event [Member] | ||||||||
Debt Conversion, Original Debt, Amount | $ 478,017 | |||||||
Accounts Receivable, Shares Converted to Preferred Stock (in shares) | 48,200 | |||||||
Purchase Agreement [Member] | Series A Preferred Stock [Member] | Other Investors [Member] | ||||||||
Sale of Stock, Additional Authorized Shares | $ 2,000,000 | |||||||
Purchase Agreement [Member] | Series A Preferred Stock [Member] | Other Investors [Member] | Subsequent Event [Member] | ||||||||
Sale of Stock, Number of Shares Issued in Transaction | $ 1,000,000 |
Note 4 - Debt (Details Textual)
Note 4 - Debt (Details Textual) - USD ($) | Jan. 11, 2019 | Oct. 08, 2018 | Jun. 08, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Jul. 01, 2019 | Dec. 31, 2017 |
Proceeds from Issuance or Sale of Equity, Total | $ 3,626,600 | |||||||||
Fixed Charge Coverage Ratio | 0.75 | |||||||||
Interest Expense, Total | 441,177 | 564,160 | ||||||||
Due from Related Parties, Current, Total | 1,386,638 | $ 1,387,131 | ||||||||
Board of Directors Chairman [Member] | ||||||||||
Due from Related Parties, Current, Total | $ 1,300,000 | |||||||||
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 | |||||||||
Accounts Receivable, Shares Converted to Preferred Stock (in shares) | 181,000 | |||||||||
Repayments of Related Party Debt | 0 | $ 0 | ||||||||
Interest Expense, Total | $ 16,000 | $ 15,000 | ||||||||
PNC [Member] | PNC Agreements [Member] | ||||||||||
Debt Instrument, Temporary Over-Advance | $ 1,200,000 | |||||||||
Debt Instrument, Temporary Over-Advance, End Balance | $ 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] | 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 4 - Debt - Leverage Ratios
Note 4 - Debt - Leverage Ratios (Details) | 3 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2017 | |
Maximum [Member] | |||||
Fixed Charge Coverage Ratio | 0.75 | ||||
Maximum [Member] | Forecast [Member] | |||||
Fixed Charge Coverage Ratio | 1.15 | 1.05 | 0.95 | 0.85 | |
Minimum [Member] | |||||
Fixed Charge Coverage Ratio | 1 | ||||
Minimum [Member] | Forecast [Member] | |||||
Fixed Charge Coverage Ratio | 1 | 1 | 1 | 1 |
Note 5 - Stock-based Compensa_3
Note 5 - Stock-based Compensation; Changes in Equity (Details Textual) - USD ($) xbrli-pure in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jun. 08, 2018 | Apr. 10, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||
Share-based Payment Arrangement, Expense | $ 0 | $ 29,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 636,285 | 471,144 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
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) | 20,000 |
Note 5 - Stock-based Compensa_4
Note 5 - Stock-based Compensation; Changes in Equity - Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / 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 | 612,660 |
Granted (in dollars per share) | $ / shares | $ 1 |
Cancelled/Expired (in shares) | shares | 432,519 |
Cancelled/Expired (in dollars per share) | $ / shares | |
Exercised/Issued (in shares) | shares | 15,000 |
Exercised/Issued (in dollars per share) | $ / shares | $ 5.48 |
Outstanding at the end of period (in shares) | shares | 636,285 |
Outstanding at the end of period (in dollars per share) | $ / shares | $ 1.10 |
Exercisable at the end of period (in shares) | shares | 19,625 |
Exercisable at the end of period (in dollars per share) | $ / shares | $ 5.48 |
Note 6 - Legal Proceedings (Det
Note 6 - Legal Proceedings (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Former Vendors Alleging Non-payment of Obligations [Member] | ||
Aggregate Claims Made or Threatened | $ 0.5 | $ 0.5 |
Note 7 - Other Comprehensive _3
Note 7 - Other Comprehensive Income (Details Textual) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Total | $ 1,364,000 |
Note 7 - Other Comprehensive _4
Note 7 - Other Comprehensive Income - Accumulated Other Comprehensive Loss Balances (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Balance | $ 1,126,507 |
Balance | 2,553,342 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (5,348,812) |
Accumulated Other Comprehensive Loss, Current period change | (1,363,503) |
Balance | (6,712,315) |
AOCI Attributable to Parent [Member] | |
Balance | (5,348,812) |
Accumulated Other Comprehensive Loss, Current period change | (1,363,503) |
Balance | $ (6,712,315) |
Note 8 - Geographic Segment D_3
Note 8 - Geographic Segment Data (Details Textual) | 3 Months Ended |
Mar. 31, 2020 | |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Sales to outside customers | $ 7,067,501 | $ 8,680,017 | |
Assets | 26,843,855 | $ 31,321,083 | |
Assets Held for Sale International Subsidiaries | 881,000 | 756,000 | |
UNITED STATES | |||
Sales to outside customers | 5,426,000 | 6,600,000 | |
Assets | 17,770,000 | 19,668,000 | |
MEXICO | |||
Sales to outside customers | 1,642,000 | $ 2,080,000 | |
Assets | $ 8,193,000 | $ 10,897,000 |
Note 9 - Inventories, Net of _3
Note 9 - Inventories, Net of Continuing Operations (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Raw materials | $ 1,555,838 | $ 1,544,949 |
Work in process | 3,171,759 | 3,110,296 |
Finished goods | 8,431,874 | 9,766,060 |
In Transit | 92,671 | 99,923 |
Allowance for excess quantities | (565,499) | (561,729) |
Total inventories | $ 12,686,643 | $ 13,959,499 |
Note 10 - Concentration of Cr_3
Note 10 - Concentration of Credit Risk (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Revenue Benchmark [Member] | ||
Number of Major Customers | 1 | 1 |
Revenue Benchmark [Member] | Customer One [Member] | ||
Concentration Risk, Percentage | 45.00% | 45.00% |
Accounts Receivable [Member] | Customer One [Member] | ||
Accounts Receivable, before Allowance for Credit Loss | $ 2,097,000 | $ 2,933,000 |
Concentration Risk, Percentage | 29.00% | 39.00% |
Note 10 - Concentration of Cr_4
Note 10 - Concentration of Credit Risk - Concentration of Credit Risk, Net Sales (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 7,067,501 | $ 8,680,017 |
Customer One [Member] | ||
Net Sales | $ 3,222,000 | $ 3,861,000 |
Customer One [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Percent of net sales | 45.00% | 45.00% |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jul. 01, 2019 | Dec. 31, 2018 | |
Legal Fees | $ 0 | $ 8,000 | |||
Due to Related Parties, Noncurrent, Total | 1,100,000 | $ 1,600,000 | |||
Interest Expense, Related Party | 15,000 | 16,000 | |||
CTI Europe [Member] | |||||
Long-term Debt, Gross | $ 9,000 | $ 14,000 | |||
Schwan Incorporated [Member] | |||||
Due to Related Parties, Noncurrent, Total | $ 1,300,000 | ||||
Conversion of Related Party Debt to Equity [Member] | |||||
Debt Conversion, Original Debt, Amount | $ 600,000 |
Note 13 - Leases (Details Textu
Note 13 - Leases (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Assets, Noncurrent, Excluding Property, Plant, and Equipment | $ 756,051 | $ 1,165,295 | |
Liabilities, Current, Total | 21,459,544 | 27,524,405 | |
Liabilities, Noncurrent, Total | 2,830,969 | $ 2,670,171 | |
Operating Lease, Expense | 251,000 | ||
Operating Lease, Payments | $ 251,000 | ||
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 13 - Leases - Lease Positi
Note 13 - Leases - Lease Position (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Operating lease right-of-use assets | $ 1,371,000 | |
Accumulated amortization | (699,000) | |
Net lease assets | 671,872 | $ 1,046,438 |
Operating | 399,044 | 658,374 |
Operating | 272,828 | $ 388,064 |
Total lease liabilities | $ 672,000 | |
Weighted average remaining term (years) – operating leases (Year) | 2 years | |
Weighted average discount rate – operating leases | 11.25% |
Note 13 - Leases - Lease Cost (
Note 13 - Leases - Lease Cost (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Operating right-of-use lease asset amortization | $ 251,000 |
Total expense | $ 251,000 |
Note 13 - Leases - Maturities f
Note 13 - Leases - Maturities for Operating Lease Liabilities (Details) | Mar. 31, 2020USD ($) |
2020 | $ 382,000 |
2021 | 277,000 |
2022 and thereafter | 33,000 |
Total lease payments | 692,000 |
less: Imputed interest | (20,000) |
Total lease liabilities | $ 672,000 |
Note 14 - Subsequent Events (De
Note 14 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($) | Jun. 05, 2020 | Apr. 30, 2020 | Apr. 13, 2020 |
Proceeds from Paycheck Protection Program Under CARES Act | $ 1,047,700 | ||
Warrants Issued with Second Purchase Agreement Amendment [Member] | |||
Warrants Issued, Percentage of Common Stock Issuable | 10.00% | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1 | ||
Second Purchase Agreement Amendment [Member] | |||
Sale of Stock, Offering Fee, Percentage | 10.00% | ||
Second Purchase Agreement Amendment [Member] | Common Stock [Member] | |||
Stock Issued During Period, Shares, New Issues (in shares) | 260,000 | ||
Second Purchase Agreement Amendment [Member] | Series A Preferred Stock [Member] | |||
Stock Issued During Period, Shares, New Issues (in shares) | 50,000 | 130,000 | |
Shares Issued, Price Per Share (in dollars per share) | $ 10 | $ 10 | |
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 500,000 | $ 1,300,000 |
Note 15 - Equity Transaction (D
Note 15 - Equity Transaction (Details Textual) - USD ($) | Jan. 13, 2020 | Jan. 03, 2020 | Mar. 31, 2020 | Feb. 24, 2020 |
Series A Preferred Stock Warrants [Member] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1 | |||
Class of Warrant or Right, Outstanding (in shares) | 612,660 | |||
Warrants and Rights Outstanding | $ 753,000 | |||
Series A Preferred Stock Warrants [Member] | Measurement Input, Expected Term [Member] | ||||
Warrants and Rights Outstanding, Term | 5 | |||
Series A Preferred Stock Warrants [Member] | Measurement Input, Price Volatility [Member] | ||||
Warrants and Rights Outstanding, Term | 155 | |||
Series A Preferred Stock Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||
Warrants and Rights Outstanding, Term | 1.19 | |||
Series A Preferred Stock Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | ||||
Warrants and Rights Outstanding, Term | 0 | |||
Conversion of Debt to Series A Preferred [Member] | ||||
Debt Conversion, Original Debt, Amount | $ 478,000 | |||
Purchase Agreement [Member] | Series A Preferred Stock [Member] | ||||
Sale of Stock, Shares Agreed to Purchase (in shares) | 500,000 | |||
Shares Issued, Price Per Share (in dollars per share) | $ 10 | |||
Sale of Stock, Offering Amount | $ 5,000,000 | |||
Preferred Stock, Dividend Rate, Percentage | 8.00% | |||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 10 | |||
Preferred Stock, Liquidation Preference Per Share (in dollars per share) | 10 | |||
Preferred Stock, Convertible, Conversion Price (in dollars per share) | $ 1 | |||
Preferred Stock, Number of Votes | 10 | |||
Percentage Holders of Preferred Stock Consent Required if Greater than 50,000 Shares Outstanding | 80.00% | |||
Shares Issued, Price Per Share (in dollars per share) | $ 10 | |||
First Closing of the Offering [Member] | Series A Preferred Stock [Member] | ||||
Stock Issued During Period, Shares, New Issues (in shares) | 250,000 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 2,500,000 | |||
Purchase Agreement Amendment [Member] | Series A Preferred Stock Warrants [Member] | ||||
Sale of Stock, Offering Fee, Percent | 10.00% | |||
Class Of Warrant Or Right, Percentage Of Common Stock Issuable | 10.00% | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1 | |||
Purchase Agreement Amendment [Member] | Common Stock [Member] | ||||
Sale of Stock, Contingent Additional Offered Shares (in shares) | 140,000 | |||
Purchase Agreement Amendment [Member] | Series A Preferred Stock [Member] | ||||
Sale of Stock, Shares Agreed to Purchase (in shares) | 70,000 | |||
Sale of Stock, Offering Amount | $ 700,000 | |||
Stock Issued During Period, Shares, New Issues (in shares) | 90,860 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 426,600 | |||
Shares Issued, Price Per Share (in dollars per share) | $ 10 | |||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 1,679,000 | |||
Preferred Stock, Convertible, Beneficial Conversion Feature | $ 2,200,000 |
Note 15 - Equity Transaction -
Note 15 - Equity Transaction - Shares Reserved for Future Issuance (Details) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 5,909,400 | |
Convertible Preferred Stock [Member] | ||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 5,296,800 | |
Warrant [Member] | ||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 612,600 | |
Equity Option [Member] | ||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) |