Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 10, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-23115 | |
Entity Registrant Name | YUNHONG CTI LTD. | |
Entity Central Index Key | 0001042187 | |
Entity Tax Identification Number | 36-2848943 | |
Entity Incorporation, State or Country Code | IL | |
Entity Address, Address Line One | 22160 N. Pepper Road | |
Entity Address, City or Town | Barrington | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60010 | |
City Area Code | (847) | |
Local Phone Number | 382-1000 | |
Title of 12(b) Security | Common Stock, no par value per share | |
Trading Symbol | CTIB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,911,750 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 54,000 | $ 66,000 |
Accounts receivable, net | 2,736,000 | 3,443,000 |
Inventories, net | 8,281,000 | 7,876,000 |
Prepaid expenses | 499,000 | 625,000 |
Other current assets | 202,000 | 464,000 |
Total current assets | 11,772,000 | 12,474,000 |
Property, plant and equipment: | ||
Machinery and equipment | 17,647,000 | 17,470,000 |
Office furniture and equipment | 2,076,000 | 2,076,000 |
Intellectual property | 783,000 | 783,000 |
Leasehold improvements | 36,000 | 23,000 |
Fixtures and equipment at customer locations | 519,000 | 519,000 |
Projects under construction | 126,000 | 223,000 |
Property plant and equipment, gross | 21,187,000 | 21,094,000 |
Less : accumulated depreciation and amortization | (20,146,000) | (19,951,000) |
Total property, plant and equipment, net | 1,041,000 | 1,143,000 |
Other assets: | ||
Operating lease right-of-use | 4,319,000 | 3,530,000 |
Other assets | 135,000 | |
Total other assets | 4,319,000 | 3,665,000 |
TOTAL ASSETS | 17,132,000 | 17,282,000 |
Current liabilities: | ||
Trade payables | 2,020,000 | 2,132,000 |
Line of credit | 4,782,000 | 5,003,000 |
Notes payable - current portion | 239,000 | 726,000 |
Notes payable – related party, subordinated | 1,193,000 | |
Operating Lease Liabilities - current | 500,000 | 670,000 |
Accrued liabilities | 531,000 | 647,000 |
Total current liabilities | 8,072,000 | 10,371,000 |
Long-term liabilities: | ||
Notes payable - noncurrent | 480,000 | |
Notes payable – related party, subordinated | 1,229,000 | |
Operating Lease Liabilities – noncurrent | 3,628,000 | 2,860,000 |
Total long-term liabilities | 5,337,000 | 2,860,000 |
TOTAL LIABILITIES | 13,409,000 | 13,231,000 |
Equity: | ||
Common stock - no par value, 50,000,000 shares authorized, 5,955,408 and 5,930,408 shares issued and 5,911,750 and 5,886,750 shares outstanding at June 30, 2022 and December 31, 2021 respectively | 14,538,000 | 14,538,000 |
Paid-in-capital | 4,005,000 | 4,317,000 |
Accumulated deficit | (23,075,000) | (22,655,000) |
Less: Treasury stock, 43,658 shares | (161,000) | (161,000) |
Total Yunhong CTI, Ltd Stockholders’ Equity | 3,723,000 | 4,051,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 17,132,000 | 17,282,000 |
Series A Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock value | 3,355,000 | 3,155,000 |
Series B Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock value | 1,783,000 | 1,715,000 |
Series C Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock value | 1,698,000 | 1,630,000 |
Series D Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock value | $ 1,580,000 | $ 1,512,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Common stock, no par value | $ 0 | $ 0 | |
Common stock, shares authorized | 50,000,000 | 50,000,000 | |
Common stock, shares issued | 5,955,408 | 5,930,408 | |
Common stock, shares outstanding | 5,911,750 | 5,886,750 | |
Treasury stock, shares | 43,658 | 43,658 | |
Series A Preferred Stock [Member] | |||
Preferred stock, par value | $ 0 | $ 0 | |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | |
Preferred stock, shares issued | 500,000 | 500,000 | |
Preferred stock, shares outstanding | 500,000 | 500,000 | |
Preferred stock, liquidation preference | $ 5 | ||
Series B Preferred Stock [Member] | |||
Preferred stock, par value | $ 0 | $ 0 | |
Preferred stock, shares authorized | 170,000 | 170,000 | |
Preferred stock, shares issued | 170,000 | 170,000 | |
Preferred stock, shares outstanding | 170,000 | 170,000 | |
Preferred stock, liquidation preference | 1.7 | ||
Series C Preferred Stock [Member] | |||
Preferred stock, par value | $ 0 | $ 0 | |
Preferred stock, shares authorized | 170,000 | 170,000 | |
Preferred stock, shares issued | 170,000 | 170,000 | |
Preferred stock, shares outstanding | 170,000 | 170,000 | |
Preferred stock, liquidation preference | 1.7 | ||
Series D Preferred Stock [Member] | |||
Preferred stock, par value | $ 0 | $ 0 | |
Preferred stock, shares authorized | 170,000 | 170,000 | |
Preferred stock, shares issued | 170,000 | 170,000 | |
Preferred stock, shares outstanding | 170,000 | 170,000 | |
Preferred stock, liquidation preference | $ 1.7 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net Sales | $ 4,418,000 | $ 5,712,000 | $ 10,215,000 | $ 12,311,000 |
Cost of Sales | 3,615,000 | 4,718,000 | 8,373,000 | 10,031,000 |
Gross profit | 803,000 | 994,000 | 1,842,000 | 2,280,000 |
Operating expenses: | ||||
General and administrative | 998,000 | 1,048,000 | 1,835,000 | 1,897,000 |
Selling | 34,000 | 32,000 | 72,000 | 65,000 |
Advertising and marketing | 77,000 | 75,000 | 260,000 | 181,000 |
Gain on sale of assets | (3,357,000) | (3,357,000) | ||
Total operating (income) expenses | 1,109,000 | (2,202,000) | 2,167,000 | (1,214,000) |
(Loss)/income from operations | (306,000) | 3,196,000 | (325,000) | 3,494,000 |
Other (expense) income: | ||||
Interest expense | (109,000) | (148,000) | (205,000) | (348,000) |
Other income/(expense) | 16,000 | (221,000) | 110,000 | (227,000) |
Total other expense, net | (93,000) | (369,000) | (95,000) | (575,000) |
(Loss) /income from continuing operations before taxes | (399,000) | 2,827,000 | (420,000) | 2,919,000 |
Income tax expense | ||||
Income (Loss) from continuing operations | (399,000) | 2,827,000 | (420,000) | 2,919,000 |
Loss from discontinued operations, net | (343,000) | (816,000) | ||
Net (Loss) / income | (399,000) | 2,484,000 | (420,000) | 2,103,000 |
Less: Net income attributable to noncontrolling interest | 702,000 | 743,000 | ||
Net (loss) / income attributable to Yunhong CTI, Ltd | (399,000) | 1,782,000 | (420,000) | 1,360,000 |
Other Comprehensive Income (Loss) | ||||
Foreign currency adjustment | 45,000 | 61,000 | ||
Comprehensive (loss) / income | (399,000) | 2,439,000 | (420,000) | 2,042,000 |
Deemed Dividends on preferred stock and amortization of beneficial conversion feature | (202,000) | (168,000) | (404,000) | (1,877,000) |
Net (Loss) / income attributable to Yunhong CTI Ltd common Shareholders | $ (601,000) | $ 1,614,000 | $ (824,000) | $ (517,000) |
Basic (loss) / income per common share | ||||
Continuing operations | $ (0.10) | $ 0.33 | $ (0.14) | $ 0.05 |
Discontinued operations | (0.06) | (0.14) | ||
Basic (loss) / income per common share | (0.10) | 0.27 | (0.14) | (0.09) |
Diluted (loss) / income per common share | ||||
Continuing operations | (0.10) | 0.33 | (0.14) | 0.05 |
Discontinued operations | (0.06) | (0.14) | ||
Diluted (loss) / income per common share | $ (0.10) | $ 0.27 | $ (0.14) | $ (0.09) |
Weighted average number of shares and equivalent shares of common stock outstanding: | ||||
Basic | 5,911,750 | 5,886,750 | 5,906,225 | 5,870,894 |
Diluted | 5,911,750 | 5,886,750 | 5,906,225 | 5,870,894 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) / income from continuing operations | $ (420,000) | $ 2,103,000 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 195,000 | 239,000 |
Equity compensation expense | 92,000 | |
Gain on sale of building | (3,357,000) | |
Provision for losses on accounts receivable | 22,000 | |
Impairment of note receivable | 95,000 | |
Change in assets and liabilities: | ||
Accounts receivable | 707,000 | 162,000 |
Inventories | (405,000) | (457,000) |
Prepaid expenses and other assets | 333,000 | 219,000 |
Trade payables | (112,000) | 43,000 |
Accrued liabilities | (87,000) | 314,000 |
Net cash provided by (used in) operating activities | 303,000 | (617,000) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (94,000) | (46,000) |
Sale of building | 3,500,000 | |
Net cash (used in) provided by investing activities | (94,000) | 3,454,000 |
Cash flows from financing activities: | ||
Repayment of debt and revolving line of credit | (221,000) | (4,792,000) |
Proceeds from advance from investor | 1,500,000 | |
Proceeds from issuance of long-term debt and revolving line of credit | 597,000 | |
Net cash used in financing activities | (221,000) | (2,695,000) |
Cash flows from discontinued operations: | ||
Operating activities | 473,000 | |
Investing activities | ||
Financing activities | 65,000 | |
Net cash provided by (used in) discontinued operations | 538,000 | |
Effect of exchange rate changes on cash | (481,000) | |
Net (decrease) / increase in cash and cash equivalents | (12,000) | 199,000 |
Cash and cash equivalents at beginning of period | 66,000 | 66,000 |
Cash and cash equivalents at end of period | 54,000 | 265,000 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest | 169,000 | 294,000 |
Accrued Divided and Accretion on preferred stock | 404,000 | 377,000 |
Issuance of Series C Preferred in exchange from advance from investor | 1,500,000 | |
Lease right-of-use assets and lease liability | 747,000 | 3,916,000 |
Amortization of beneficial conversion feature and deemed dividend on Series C Preferred stock | $ 1,500,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Series A Preferred Stock [Member] Preferred Stock [Member] | Series B Preferred Stock [Member] Preferred Stock [Member] | Series C Preferred Stock [Member] Preferred Stock [Member] | Series D Preferred Stock [Member] Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 2,754,000 | $ 14,538,000 | $ 5,042,000 | $ (14,382,000) | $ (5,885,000) | $ (161,000) | $ (718,000) | $ 1,188,000 | |||
Beginning balance, shares at Dec. 31, 2020 | 500,000 | 5,827,000 | (44,000) | ||||||||
Accrued Deemed Dividend - Series A Preferred Stock | $ 100,000 | (100,000) | |||||||||
Accrued Deemed Dividend - Series B Preferred Stock | (34,000) | (34,000) | |||||||||
Accrued Deemed Dividend - Series C Preferred Stock | 28,000 | (28,000) | |||||||||
Net Income (Loss) | (422,000) | 41,000 | (381,000) | ||||||||
Series D Convertible Preferred Stock Issuance | |||||||||||
Series C Convertible Preferred Stock Issuance | $ 1,500,000 | 1,500,000 | |||||||||
Series C Convertible Preferred Stock Issuance, shares | 170,000 | ||||||||||
Series B Convertible Preferred Stock Modification | $ 1,613,000 | 1,613,000 | |||||||||
Series B Convertible Preferred Stock Modification, shares | 170,000 | ||||||||||
Convertible Preferred Stock Issuance - conversion of debt | |||||||||||
Preferred Stock converted | |||||||||||
Common stock issued for placement agent fees | |||||||||||
Warrants issued to placement agent and other issuance costs | |||||||||||
Common stock issued for warrants exercised - cashless, shares | 103,000 | ||||||||||
Placement agent fees and issuance costs | |||||||||||
Beneficial Conversion feature (BCF) on Series A Preferred Stock | (2,468,473) | 2,468,473 | |||||||||
Deemed Dividend on BCF of Series A Preferred Stock | 2,468,473 | (2,468,473) | |||||||||
BCF on Series C Preferred Stock | 1,500,000 | 1,500,000 | |||||||||
Deemed Dividend on BCF of Series C Preferred Stock | (1,500,000) | (1,500,000) | |||||||||
Accretion of Series B Preferred Stock | (47,000) | (47,000) | |||||||||
Completion of HFS | |||||||||||
Foreign Currency Translation | (16,000) | (16,000) | |||||||||
Ending balance, value at Mar. 31, 2021 | $ 2,854,000 | $ 1,613,000 | $ 1,528,000 | $ 14,538,000 | 4,833,000 | (14,804,000) | (5,901,000) | $ (161,000) | (677,000) | 3,823,000 | |
Ending balance, shares at Mar. 31, 2021 | 500,000 | 170,000 | 170,000 | 5,930,000 | (44,000) | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 2,754,000 | $ 14,538,000 | 5,042,000 | (14,382,000) | (5,885,000) | $ (161,000) | (718,000) | 1,188,000 | |||
Beginning balance, shares at Dec. 31, 2020 | 500,000 | 5,827,000 | (44,000) | ||||||||
Net Income (Loss) | 2,103,000 | ||||||||||
Ending balance, value at Jun. 30, 2021 | $ 2,954,000 | $ 1,647,000 | $ 1,562,000 | $ 14,538,000 | 4,665,000 | (13,022,000) | (5,946,000) | $ (161,000) | 25,000 | 6,262,000 | |
Ending balance, shares at Jun. 30, 2021 | 500,000 | 170,000 | 170,000 | 5,930,000 | (44,000) | ||||||
Beginning balance, value at Mar. 31, 2021 | $ 2,854,000 | $ 1,613,000 | $ 1,528,000 | $ 14,538,000 | 4,833,000 | (14,804,000) | (5,901,000) | $ (161,000) | (677,000) | 3,823,000 | |
Beginning balance, shares at Mar. 31, 2021 | 500,000 | 170,000 | 170,000 | 5,930,000 | (44,000) | ||||||
Accrued Deemed Dividend - Series A Preferred Stock | $ 100,000 | (100,000) | |||||||||
Accrued Deemed Dividend - Series B Preferred Stock | 34,000 | (34,000) | |||||||||
Accrued Deemed Dividend - Series C Preferred Stock | 34,000 | (34,000) | |||||||||
Net Income (Loss) | 1,782,000 | 702,000 | 2,484,000 | ||||||||
Series D Convertible Preferred Stock Issuance | |||||||||||
Series C Convertible Preferred Stock Issuance | |||||||||||
Series B Convertible Preferred Stock Modification | |||||||||||
BCF on Series C Preferred Stock | |||||||||||
Deemed Dividend on BCF of Series C Preferred Stock | |||||||||||
Accretion of Series B Preferred Stock | |||||||||||
Foreign Currency Translation | (45,000) | (45,000) | |||||||||
Ending balance, value at Jun. 30, 2021 | $ 2,954,000 | $ 1,647,000 | $ 1,562,000 | $ 14,538,000 | 4,665,000 | (13,022,000) | (5,946,000) | $ (161,000) | 25,000 | 6,262,000 | |
Ending balance, shares at Jun. 30, 2021 | 500,000 | 170,000 | 170,000 | 5,930,000 | (44,000) | ||||||
Beginning balance, value at Dec. 31, 2021 | $ 3,155,000 | $ 1,715,000 | $ 1,630,000 | $ 1,512,000 | $ 14,538,000 | 4,317,000 | (22,655,000) | $ (161,000) | 4,051,000 | ||
Beginning balance, shares at Dec. 31, 2021 | 500,000 | 170,000 | 170,000 | 170,000 | 5,930,408 | (44,000) | |||||
Accrued Deemed Dividend - Series A Preferred Stock | $ 200,000 | (200,000) | |||||||||
Accrued Deemed Dividend - Series B Preferred Stock | $ 68,000 | (68,000) | |||||||||
Accrued Deemed Dividend - Series C Preferred Stock | $ 68,000 | (68,000) | |||||||||
Accrued Deemed Dividend - Series D Preferred Stock | $ 68,000 | (68,000) | |||||||||
Stock Issuance | |||||||||||
Stock Issuance, shares | 25,000 | ||||||||||
Equity Compensation Charge | 92,000 | 92,000 | |||||||||
Net Income (Loss) | (420,000) | (420,000) | |||||||||
Ending balance, value at Jun. 30, 2022 | $ 3,355,000 | $ 1,783,000 | $ 1,698,000 | $ 1,580,000 | $ 14,538,000 | 4,005,000 | (23,075,000) | $ (161,000) | 3,723,000 | ||
Ending balance, shares at Jun. 30, 2022 | 500,000 | 170,000 | 170,000 | 170,000 | 5,955,408 | (44,000) | |||||
Beginning balance, value at Mar. 31, 2022 | $ 3,255,000 | $ 1,749,000 | $ 1,664,000 | $ 1,546,000 | $ 14,538,000 | 4,146,000 | (22,676,000) | $ (161,000) | 4,061,000 | ||
Beginning balance, shares at Mar. 31, 2022 | 500,000 | 170,000 | 170,000 | 170,000 | 5,955,408 | (44,000) | |||||
Accrued Deemed Dividend - Series A Preferred Stock | $ 100,000 | (100,000) | |||||||||
Accrued Deemed Dividend - Series B Preferred Stock | $ 34,000 | (34,000) | |||||||||
Accrued Deemed Dividend - Series C Preferred Stock | $ 34,000 | (34,000) | |||||||||
Accrued Deemed Dividend - Series D Preferred Stock | $ 34,000 | (34,000) | |||||||||
Stock Issuance | |||||||||||
Stock Issuance, shares | |||||||||||
Equity Compensation Charge | 61,000 | 61,000 | |||||||||
Net Income (Loss) | (399,000) | (399,000) | |||||||||
Ending balance, value at Jun. 30, 2022 | $ 3,355,000 | $ 1,783,000 | $ 1,698,000 | $ 1,580,000 | $ 14,538,000 | $ 4,005,000 | $ (23,075,000) | $ (161,000) | $ 3,723,000 | ||
Ending balance, shares at Jun. 30, 2022 | 500,000 | 170,000 | 170,000 | 170,000 | 5,955,408 | (44,000) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation The accompanying condensed (a) consolidated balance sheet as of June 30, 2022 and (b) the unaudited interim condensed consolidated financial statements have been prepared and, in the opinion of management, contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the consolidated financial position and the consolidated statements of comprehensive income and consolidated cash flows for the periods presented in conformity with generally accepted accounting principles for interim consolidated financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021, filed on April 15, 2022, which can be found on the Company’s website ( www.ctiindustries.com Principles of consolidation and nature of operations Yunhong CTI Ltd and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized balloon products throughout the world, (ii) distribute purchased latex balloons products, and (iii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note 2 Discontinued Operations, effective in the third quarter of 2019, the Company determined that it was exiting the business formerly conducted by CTI Europe GmbH (“CTI Europe”). In addition, during October 2021, the Company sold its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), a manufacturer of latex balloons. Accordingly, the operations of these entities are classified as discontinued operations in these financial statements. The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd., and CTI Supply, Inc. See Note 2. The determination of whether or not to consolidate a variable interest entity under U.S. GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interest. To make these judgments, management has conducted an analysis of the relationship of the holders of variable interest to each other, the design of the entity, the expected operations of the entity, which holder of variable interests is most “closely associated” to the entity and which holder of variable interests is the primary beneficiary required to consolidate the entity. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a variable interest entity. Reclassification Certain amounts in the Company’s condensed consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. Use of estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the amounts reported of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period in the financial statements and accompanying notes. Actual results may differ from those estimates. The Company’s significant estimates include valuation allowances for doubtful accounts and inventory valuation, preferred stock dividends and beneficial conversion features, and assumptions used as inputs in the Black-Scholes option-pricing model. Segments The Company operates as a single segment, both in terms of geography and operations, particularly in light of the October 2021 sale of its Flexo Universal subsidiary. After that date, all manufacturing occurs in the United States. Earnings per share Basic income (loss) per share is computed by dividing net income (loss) attributable to Yunhong CTI Ltd shareholders by the weighted average number of shares of common stock outstanding during each period. Diluted income (loss) per share is computed by dividing the net income (loss) attributable to Yunhong CTI Ltd shareholders 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, 2022 and 2021, shares to be issued upon the exercise of options and warrants aggregated 128,000 none Significant Accounting Policies The Company’s significant accounting policies are summarized in Note 2 of the Company’s consolidated financial statements for the year ended December 31, 2021. There were no significant changes to these accounting policies during the three and six months ended June 30, 2022. 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 year and we have elected the practical expedient included in ASC 606. We do not incur incremental costs to obtain contracts with our customers. Our product warranties are assurance-type warranties, which promise the customer that the products are as specified in the contract. Therefore, the product warranties are not a separate performance obligation and are accounted for as described herein. Sales taxes assessed by governmental authorities are accounted for on a net basis and are excluded from net sales. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 2 Discontinued Operations During October 2021, the Company sold its interest in Flexo Universal, S. de R.L. de C.V. (“Flexo”), a manufacturer of latex balloons based in Guadalajara, Mexico. The Company received $ 100,000 400,000 202,000 255,000 343,000 816,000 none In July 2019 management and the Board engaged in a review of CTI Balloons and CTI Europe and determined that they are not accretive to the Company overall, add complexity to the Company’s structure and utilize resources. Therefore, as of July 19, 2019, the board authorized management to divest of CTI Balloons and CTI Europe. These actions are being taken to focus our resources and efforts on our core business activities, particularly foil balloons and ancillary products based in North America. The Company determined that these entities met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of these operations as discontinued operations in the Consolidated Statements of Comprehensive Income and presented the related assets and liabilities as held-for-sale in the Consolidated Balance Sheets. These changes have been applied for all periods presented. The disposal of CTI Europe was delayed due to COVID issues but is expected to be completed in the next three months. The Company divested its CTI Balloons (United Kingdom) subsidiary in the fourth quarter 2019. CTI Europe recorded a gain from discontinued operations, net of taxes of $ 45,000 146,000 none Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the operations that are included in the income from discontinued operations, net of tax line item in the Unaudited Consolidated Statements of Comprehensive Income for the six months ended: Schedule of Discontinued Operations Financial Information June 30, 2022 June 30, 2021 Income Statement Net Sales $ - $ 1,430,000 Cost of Sales - 1,751,000 Gross Loss - (321,000 ) SG&A - 481,000 Operating Income - (802,000 ) Other Expense - 160,000 Pretax loss from discontinued operations - (962,000 ) Gain from classification to held for sale - 319,000 Net Income (loss) from discontinued operations - (643,000 ) Non-controlling Interest share of profit/loss - 173,000 Net Loss $ - $ (816,000 ) |
Liquidity and Going Concern
Liquidity and Going Concern | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Going Concern | Note 3 Liquidity and Going Concern The Company’s financial statements are prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a cumulative net loss from inception to June 30, 2022 of approximately $ 23 The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses. Management’s plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing, continuing to focus our Company on the most profitable elements, and exploring alternative funding sources on an as needed basis. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The COVID-19 pandemic, supply chain challenges, and inflationary pressures have impacted the Company’s business operations to some extent and is expected to continue to do so and, these impacts may include reduced access to capital. The ability of the Company to continue as a going concern may be dependent upon its ability to successfully secure other sources of financing and attain profitable operations. There is substantial doubt about the ability of the Company to continue as a going concern for one year from the issuance of the accompanying consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company’s primary sources of liquidity have traditionally been comprised of cash and cash equivalents as well as availability under the Credit Agreement in place at the time (see Note 4). We endured compliance failures with covenants until September 2021 when we refinanced our credit facility. We believe we have been in compliance with our new credit facility since that time. As of June 30, 2022 we have drawn approximately $ 4.8 6.0 160,000 123,000 On April 23, 2021, the Company entered into a Purchase and Sale Agreement (“PSA”) with an unaffiliated purchaser (the “Purchaser”) pursuant to which the Company sold its facility in Lake Barrington, Illinois (the “Lake Barrington Facility”), in which our headquarters office, production and warehouse space are located, to the Purchaser. The sale price for the Lake Barrington Facility was $ 3,500,000 2,000,000 1,500,000 ten years 500,000 652,386 2,000,000 2,000,000 1,500,000 In consideration for entering into the Loan Amendment, the Company agrees to pay the Former Lender a Forbearance Fee of $ 1,000,000 1,500,000 250,000 750,000 500,000 250,000 250,000 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 4 - Debt On September 30, 2021 (the “Closing Date”), the Company entered into a loan and security agreement (the “Agreement”) with Line Financial (the “Lender”), which provides for a senior secured financing consisting of a revolving credit facility (the “Revolving Credit Facility) in an aggregate principal amount of up to $ 6 0.7 Interest on the Senior Facilities shall be the prime rate published from time to time published in the Wall Street Journal ( 4.75 1.95 48 15,000 4.62 1.25 The Senior Facilities mature on September 30, 2023 and shall automatically be extended for successive periods of one year 1.25 The Senior Facilities require that the Company shall, commencing December 31, 2021, maintain Tangible Net Worth of at least $ 4,000,000 4.8 6.0 The Senior Facilities contain certain affirmative and negative covenants that limit the ability of the Company, among other things and subject to certain significant exceptions, to incur debt or liens, make investments, enter into certain mergers, consolidations, and acquisitions, pay dividends and make other restricted payments, or make capital expenditures exceeding $ 1,000,000 As of June 30, 2022 and December 31, 2021, respectively, the term loan balance amounted to $ 0.5 0.6 0.6 0.7 0.1 4,782,000 5,003,000 As of January 1, 2019, the Company had a note payable to John H. Schwan, Director and former Chairman of the Board, for $ 1.6 600,000 181,000 3.32 1 1.2 18,000 36,000 17,000 34,000 As of June 30, 2022 and December 31, 2021, the Company had a note payable to Alex Feng for approximately $ 0.2 3 In accordance with the subordination agreement, payments may be made beginning April 2022 subject to availability under the revolving line of credit, and the maturity date for this loan is March 2024. |
Shareholders_ Equity
Shareholders’ Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 5 - Shareholders’ Equity Series A Convertible Preferred Stock On January 3, 2020, the Company entered into a stock purchase agreement (as amended on February 24, 2020 and April 13, 2020 (the “LF Purchase Agreement”)), pursuant to which the Company agreed to issue and sell, and LF International Pte. Ltd., a Singapore private limited company (“LF International”), which is controlled by Company director, Chairman, President and Chief Executive Officer, Mr. Yubao Li, agreed to purchase, up to 500,000 10.00 5,000,000 200,000 10.00 1 478,000 48,200 400,000 The issuance of the Series A Preferred 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 $ 2.5 8 10 100,000 200,000 Series B Convertible Preferred Stock In November 2020, we issued 170,000 1,500,000 10.00 1.00 8 1.5 1,783,000 1,715,000 1,500,000 236,000 47,000 Series C Convertible Preferred Stock In January 2021 we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by Company director and Chairman, Mr. Yubao Li, to purchase shares of Series C Preferred stock. We issued 170,000 1,500,000 10.00 1.00 8 1.5 1,698,000 1,630,000 1,500,000 198,000 Series D Convertible Preferred Stock In June 2021, the Company received $ 1.5 1.5 0.3 8 10 128,000 1.75 85 230,000 1,580,000 1,512,000 1,500,000 80,000 Schedule of Preferred Stock Preferred Stock Rollforward Balance as of December 31, 2021 Accrued Deemed Dividends Balance as of June 30, 2022 Series A 3,155,000 200,000 3,355,000 Series B 1,715,000 68,000 1,783,000 Series C 1,630,000 68,000 1,698,000 Series D 1,512,000 68,000 1,580,000 Warrants A summary of the Company’s stock warrant activity is as follows: Schedule of Company’s Stock Warrant Activity Shares under Option Weighted Average Exercise Price Balance at December 31, 2021 128,000 $ 1.75 Granted - - Cancelled/Expired - - Exercised/Issued - - Outstanding at June 30, 2022 128,000 1.75 Exercisable at June 30, 2022 128,000 $ 1.75 As of June 30, 2022 and December 31, 2021 the Company reserved the following shares of its common stock for the exercise of warrants, and preferred stock: Schedule of Reserved Shares of Common Stock for Exercise of Warrants and Preferred Stock Series A Preferred Stock 5,482,000 Series B Preferred Stock 1,700,000 Series C Preferred Stock 1,700,000 Series D Preferred Stock 1,700,000 2021 Warrants 128,572 Shares reserved as of June 30, 2022 and December 31, 2021 10,710,572 Effective January 2022, and in accordance with the Employment Agreement of Chief Executive Officer Frank Cesario, a grant of restricted stock was made in the amount of 250,000 25,000 225,000 225,000 ● The restrictions on 56,250 ● The restrictions on 56,250 ● The restrictions on 56,250 ● The restrictions on 56,250 The Audit Committee (as defined in the Plan) shall be responsible for determining when the conditions above have been satisfied. The Company records compensation expense with each vesting, and records a likelihood of vesting weighted analysis to the extent it has visibility to do so. Without such visibility, it considers such probability as de minimis until additional information is available. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Note 6 - Legal Proceedings The Company may be party to certain lawsuits or claims arising in the normal course of business. The ultimate outcome of these matters is unknown but, in the opinion of management, we do not believe any of these proceedings will have, individually or in the aggregate, a material adverse effect upon our financial condition, cash flows or future results of operation. Benchmark Investments, Inc. v. Yunhong CTI Ltd., Case No. 1:21-cv-02279, was filed a case in the United States District Court for the Southern District of New York on March 16, 2021 and served on the Company on March 31, 2021. The Company has filed its Answer and Counterclaim to the complaint. Pursuant to an agreement between the parties during June 2022, the matter has been concluded. During February 2022, Engie Resources LLC filed a claim against the Company, seeking payment of $ 94,000 75,000 30,000 |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 7 Inventories, Net Schedule of Inventories June 30, December 31, Raw materials $ 1,664,000 $ 1,249,000 Work in process 2,501,000 2,492,000 Finished goods 4,420,000 4,425,000 Allowance for excess quantities (304,000 ) (290,000 ) Total inventories $ 8,281,000 $ 7,876,000 |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 8 - Concentration of Credit Risk Concentration of credit risk with respect to trade accounts receivable is generally limited due to the large number of entities comprising the Company’s customer base. The Company performs ongoing credit evaluations and provides an allowance for potential credit losses against the portion of accounts receivable which is estimated to be uncollectible. Such losses have historically been within management’s expectations. During the three and six months ended June 30, 2022 and 2021, there were two customers Schedules of Concentration of Risk Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 1,829,000 41 % $ 3,421,000 60 % Customer B $ 1,323,000 30 % $ 812,000 14 % Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 4,331,000 42 % $ 7,344,000 60 % Customer B $ 2,670,000 26 % $ 2,106,000 17 % As of June 30, 2022, the total amounts owed to the Company by these customers were approximately $ 2,008,000 73% 2,202,000 64% |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 - Related Party Transactions John H. Schwan, who resigned as Chairman of the Board on June 1, 2020, has made loans to the Company which had outstanding balances of approximately $ 1.2 No 18,000 36,000 17,000 34,000 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | Note 10 - Leases We adopted ASC Topic 842 (Leases) on January 1, 2019. In July 2020, the Company entered into a lease agreement for a building through June 2021 (with no extension options). The monthly lease payments were $ 38,000 This lease was subsequently extended during March 2022 to extend through December 31, 2025. 34,000 11% When this lease was extended during March 2022, the ROU (right of use) asset increased to $ 4,277,000 3,530,000 500,000 3,777,000 648,000 2,860,000 500,000 3,628,000 4,319,000 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation and nature of operations | Principles of consolidation and nature of operations Yunhong CTI Ltd and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized balloon products throughout the world, (ii) distribute purchased latex balloons products, and (iii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note 2 Discontinued Operations, effective in the third quarter of 2019, the Company determined that it was exiting the business formerly conducted by CTI Europe GmbH (“CTI Europe”). In addition, during October 2021, the Company sold its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), a manufacturer of latex balloons. Accordingly, the operations of these entities are classified as discontinued operations in these financial statements. The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd., and CTI Supply, Inc. See Note 2. The determination of whether or not to consolidate a variable interest entity under U.S. GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interest. To make these judgments, management has conducted an analysis of the relationship of the holders of variable interest to each other, the design of the entity, the expected operations of the entity, which holder of variable interests is most “closely associated” to the entity and which holder of variable interests is the primary beneficiary required to consolidate the entity. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a variable interest entity. |
Reclassification | Reclassification Certain amounts in the Company’s condensed consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. |
Use of estimates | Use of estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the amounts reported of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period in the financial statements and accompanying notes. Actual results may differ from those estimates. The Company’s significant estimates include valuation allowances for doubtful accounts and inventory valuation, preferred stock dividends and beneficial conversion features, and assumptions used as inputs in the Black-Scholes option-pricing model. |
Segments | Segments The Company operates as a single segment, both in terms of geography and operations, particularly in light of the October 2021 sale of its Flexo Universal subsidiary. After that date, all manufacturing occurs in the United States. |
Earnings per share | Earnings per share Basic income (loss) per share is computed by dividing net income (loss) attributable to Yunhong CTI Ltd shareholders by the weighted average number of shares of common stock outstanding during each period. Diluted income (loss) per share is computed by dividing the net income (loss) attributable to Yunhong CTI Ltd shareholders 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, 2022 and 2021, shares to be issued upon the exercise of options and warrants aggregated 128,000 none |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are summarized in Note 2 of the Company’s consolidated financial statements for the year ended December 31, 2021. There were no significant changes to these accounting policies during the three and six months ended June 30, 2022. 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 year and we have elected the practical expedient included in ASC 606. We do not incur incremental costs to obtain contracts with our customers. Our product warranties are assurance-type warranties, which promise the customer that the products are as specified in the contract. Therefore, the product warranties are not a separate performance obligation and are accounted for as described herein. Sales taxes assessed by governmental authorities are accounted for on a net basis and are excluded from net sales. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Financial Information | Schedule of Discontinued Operations Financial Information June 30, 2022 June 30, 2021 Income Statement Net Sales $ - $ 1,430,000 Cost of Sales - 1,751,000 Gross Loss - (321,000 ) SG&A - 481,000 Operating Income - (802,000 ) Other Expense - 160,000 Pretax loss from discontinued operations - (962,000 ) Gain from classification to held for sale - 319,000 Net Income (loss) from discontinued operations - (643,000 ) Non-controlling Interest share of profit/loss - 173,000 Net Loss $ - $ (816,000 ) |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Preferred Stock | Schedule of Preferred Stock Preferred Stock Rollforward Balance as of December 31, 2021 Accrued Deemed Dividends Balance as of June 30, 2022 Series A 3,155,000 200,000 3,355,000 Series B 1,715,000 68,000 1,783,000 Series C 1,630,000 68,000 1,698,000 Series D 1,512,000 68,000 1,580,000 |
Schedule of Company’s Stock Warrant Activity | A summary of the Company’s stock warrant activity is as follows: Schedule of Company’s Stock Warrant Activity Shares under Option Weighted Average Exercise Price Balance at December 31, 2021 128,000 $ 1.75 Granted - - Cancelled/Expired - - Exercised/Issued - - Outstanding at June 30, 2022 128,000 1.75 Exercisable at June 30, 2022 128,000 $ 1.75 |
Schedule of Reserved Shares of Common Stock for Exercise of Warrants and Preferred Stock | As of June 30, 2022 and December 31, 2021 the Company reserved the following shares of its common stock for the exercise of warrants, and preferred stock: Schedule of Reserved Shares of Common Stock for Exercise of Warrants and Preferred Stock Series A Preferred Stock 5,482,000 Series B Preferred Stock 1,700,000 Series C Preferred Stock 1,700,000 Series D Preferred Stock 1,700,000 2021 Warrants 128,572 Shares reserved as of June 30, 2022 and December 31, 2021 10,710,572 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Schedule of Inventories June 30, December 31, Raw materials $ 1,664,000 $ 1,249,000 Work in process 2,501,000 2,492,000 Finished goods 4,420,000 4,425,000 Allowance for excess quantities (304,000 ) (290,000 ) Total inventories $ 8,281,000 $ 7,876,000 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk | Schedules of Concentration of Risk Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 1,829,000 41 % $ 3,421,000 60 % Customer B $ 1,323,000 30 % $ 812,000 14 % Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 Customer Net Sales % of Net Sales Net Sales % of Net Sales Customer A $ 4,331,000 42 % $ 7,344,000 60 % Customer B $ 2,670,000 26 % $ 2,106,000 17 % |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Shares issued upon the exercise of options and warrants | 128,000 | 0 |
Schedule of Discontinued Operat
Schedule of Discontinued Operations Financial Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Income (loss) from discontinued operations | $ (343,000) | $ (816,000) | ||
CTI Europe [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 1,430,000 | |||
Cost of Sales | 1,751,000 | |||
Gross Loss | (321,000) | |||
SG&A | 481,000 | |||
Operating Income | (802,000) | |||
Other Expense | 160,000 | |||
Pretax loss from discontinued operations | (962,000) | |||
Gain from classification to held for sale | 319,000 | |||
Net Income (loss) from discontinued operations | (643,000) | |||
Non-controlling Interest share of profit/loss | 173,000 | |||
Net Loss | $ (816,000) |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on discontinued operations | $ (343,000) | $ (816,000) | ||||
CTI Europe [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on discontinued operations | (643,000) | |||||
Discontinued Operations [Member] | Flexo Universal [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash received | $ 100,000 | |||||
Notes receivable | $ 400,000 | 202,000 | 202,000 | $ 255,000 | ||
Loss from discontinued operations, net of tax | 0 | 343,000 | 0 | 816,000 | ||
Discontinued Operations [Member] | CTI Europe [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on discontinued operations | $ 0 | $ 45,000 | $ 0 | $ 146,000 |
Liquidity and Going Concern (De
Liquidity and Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Apr. 23, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | May 03, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Net loss | $ (399,000) | $ 1,782,000 | $ (420,000) | $ 1,360,000 | $ 23,000,000 | |||
Line of credit | 4,782,000 | 4,782,000 | 4,782,000 | $ 5,003,000 | ||||
Maximum credit facility | $ 6,000,000 | 6,000,000 | $ 6,000,000 | |||||
Employee retention tax credits | 160,000 | |||||||
General and administrative expense | 123,000 | |||||||
Proceeds from Sale of building | $ 3,500,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Repayment of loan | $ 1,500,000 | |||||||
PNC Agreements [Member] | PNC [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Forbearance fee | 1,000,000 | |||||||
Final forbearance fee | 250,000 | |||||||
PNC Agreements [Member] | PNC [Member] | Minimum [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Final forbearance fee | 250,000 | |||||||
Additional reduced forbearance fee | 500,000 | |||||||
PNC Agreements [Member] | PNC [Member] | Maximum [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Final forbearance fee | 750,000 | |||||||
Additional reduced forbearance fee | $ 250,000 | |||||||
Loan Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Repayment of loan | $ 2,000,000 | |||||||
Lake Barrington Facility Lease [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Lease contract year | 10 years | |||||||
Annual rent | $ 500,000 | |||||||
Annual rent last year | 652,386 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Lake Barrington Facility [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Sale of price | 3,500,000 | |||||||
Proceeds from Sale of building | 2,000,000 | |||||||
Principal amount | $ 1,500,000 | |||||||
Proceeds from purchaser promissory note | $ 1,500,000 |
Debt (Details Narrative)
Debt (Details Narrative) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 02, 2019 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) Integer | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, covenant, tangible net worth | $ 4,000,000 | |||||||
Line of credit | $ 4,782,000 | 5,003,000 | $ 4,782,000 | $ 4,782,000 | ||||
John H. Schwan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable - related party | 1,200,000 | 1,200,000 | $ 1,600,000 | 1,200,000 | 1,200,000 | |||
Debt conversion, amount | 600,000 | |||||||
Loan decreased, amount | $ 1,000,000 | |||||||
Interest expense, related party | 18,000 | $ 17,000 | 36,000 | $ 34,000 | ||||
John H. Schwan [Member] | Common Stock [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt conversion, shares | shares | 181,000 | |||||||
Share Price (in dollars per share) | $ / shares | $ 3.32 | |||||||
Alex Feng [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 200,000 | 200,000 | $ 200,000 | $ 200,000 | ||||
Interest rate | 3% | 3% | 3% | |||||
Loan description | In accordance with the subordination agreement, payments may be made beginning April 2022 subject to availability under the revolving line of credit, and the maturity date for this loan is March 2024. | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | |||||
Capital expenditures amount | $ 1,000,000 | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan amount | 500,000 | 600,000 | 500,000 | 500,000 | ||||
Loan and interest payable | 600,000 | 700,000 | 600,000 | 600,000 | ||||
Deferred financing costs | 100,000 | 100,000 | 100,000 | 100,000 | ||||
Promissory Note [Member] | John H. Schwan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan and interest payable | $ 1,200,000 | $ 1,200,000 | 1,200,000 | 1,200,000 | ||||
Interest expense, related party | $ 18,000 | $ 17,000 | $ 36,000 | $ 34,000 | ||||
PNC Agreements [Member] | PNC [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 6,000,000 | |||||||
Line Financial Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Monthly installments | Integer | 48 | |||||||
Debt instrument periodic payment | $ 15,000 | |||||||
Debt instrument collateral monitoring fee percent | 4.62% | |||||||
Debt instrument fee amount percent | 1.25% | |||||||
Debt term | 1 year | |||||||
Debt instrument renewal fee percent | 1.25% | |||||||
Line Financial Agreement [Member] | Prime Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument reference rate | 4.75% | |||||||
Debt percentage per annum | 1.95% | |||||||
Line Financial Agreement [Member] | Line Financial [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 700,000 |
Schedule of Preferred Stock (De
Schedule of Preferred Stock (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Series A Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Beginning balance, Preferred stock value issued | $ 3,155,000 |
Accrued Deemed Dividends | 200,000 |
Ending balance, Preferred stock value issued | 3,355,000 |
Series B Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Beginning balance, Preferred stock value issued | 1,715,000 |
Accrued Deemed Dividends | 68,000 |
Ending balance, Preferred stock value issued | 1,783,000 |
Series C Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Beginning balance, Preferred stock value issued | 1,630,000 |
Accrued Deemed Dividends | 68,000 |
Ending balance, Preferred stock value issued | 1,698,000 |
Series D Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Beginning balance, Preferred stock value issued | 1,512,000 |
Accrued Deemed Dividends | 68,000 |
Ending balance, Preferred stock value issued | $ 1,580,000 |
Schedule of Company_s Stock War
Schedule of Company’s Stock Warrant Activity (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance, shares | shares | 128,000 |
Weighted average exercise price, beginning balance | $ / shares | $ 1.75 |
Granted | shares | |
Weighted average exercise price, granted | $ / shares | |
Cancelled/Expired | shares | |
Weighted average exercise price, cancelled/expired | $ / shares | |
Exercised/Issued | shares | |
Weighted average exercise price, Exercised/issued | $ / shares | |
Ending balance, shares | shares | 128,000 |
Weighted average exercise price, ending balance | $ / shares | $ 1.75 |
Exercisable shares | shares | 128,000 |
Weighted average exercise price, exercisable | $ / shares | $ 1.75 |
Schedule of Reserved Shares of
Schedule of Reserved Shares of Common Stock for Exercise of Warrants and Preferred Stock (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Shares reserved (in shares) | 10,710,572 | 10,710,572 |
2021 Warrants [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved (in shares) | 128,572 | 128,572 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved (in shares) | 5,482,000 | 5,482,000 |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved (in shares) | 1,700,000 | 1,700,000 |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved (in shares) | 1,700,000 | 1,700,000 |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved (in shares) | 1,700,000 | 1,700,000 |
Shareholders_ Equity (Details N
Shareholders’ Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jan. 03, 2020 | Jan. 31, 2022 | Jun. 30, 2021 | Jan. 31, 2021 | Nov. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||||||||||
Purchase price of shares | |||||||||||||
Preferred stock with beneficial conversion feature | $ 1,500,000 | ||||||||||||
Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 25,000 | ||||||||||||
Chief Executive Officer [Member] | Restricted Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of restricted stock grants | 250,000 | ||||||||||||
Number of restricted shares vested | 25,000 | ||||||||||||
Remaining shares subject to performance | 225,000 | 225,000 | |||||||||||
Chief Executive Officer [Member] | Restricted Stock [Member] | Trailing-twelve-month EBITDA Equals or Exceeds $1 Million [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of restricted shares vested | 56,250 | ||||||||||||
Chief Executive Officer [Member] | Restricted Stock [Member] | Common Shares Trade at or Above $5/share for Ten or More Consecutive Trading Days [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of restricted shares vested | 56,250 | ||||||||||||
Chief Executive Officer [Member] | Restricted Stock [Member] | Operating Cash Flow, Calculated Cumulatively From the Date of Employment, Equals or Exceeds $1.5 Million [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of restricted shares vested | 56,250 | ||||||||||||
Chief Executive Officer [Member] | Restricted Stock [Member] | Company is Able to Refinance Its Current Lender With a Traditional Lender [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of restricted shares vested | 56,250 | ||||||||||||
LF International Offering [Member] | Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 400,000 | ||||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt instrument convertible beneficial conversion feature | $ 2,500,000 | ||||||||||||
Preferred stock, dividend rate | 8% | ||||||||||||
Preferred stock, par value | $ 10 | ||||||||||||
Payments for dividend | $ 100,000 | $ 200,000 | |||||||||||
Series A Preferred Stock [Member] | Investor [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Purchase price of shares | $ 1,000,000 | ||||||||||||
Conversion of debt, amount | $ 478,000 | ||||||||||||
Debt conversion of shares, shares | 48,200 | ||||||||||||
Series A Preferred Stock [Member] | Additional Shares Offering [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 200,000 | ||||||||||||
Share issued price per share | $ 10 | ||||||||||||
Series B Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 170,000 | ||||||||||||
Purchase price of shares | $ 1,500,000 | ||||||||||||
Preferred stock, dividend rate | 8% | ||||||||||||
Preferred stock, par value | $ 10 | ||||||||||||
Preferred stock conversion price | $ 1 | ||||||||||||
Proceeds from issuance of preferred stock | $ 1,500,000 | ||||||||||||
Equity carrying value | $ 1,715,000 | 1,783,000 | 1,783,000 | $ 1,715,000 | |||||||||
Original carrying value | 1,500,000 | 1,500,000 | |||||||||||
Accrued dividends | 236,000 | ||||||||||||
Preferred stock, accretion of redemption discount | 47,000 | ||||||||||||
Series C Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 170,000 | ||||||||||||
Purchase price of shares | $ 1,500,000 | ||||||||||||
Preferred stock, dividend rate | 8% | ||||||||||||
Preferred stock, par value | $ 10 | ||||||||||||
Preferred stock conversion price | $ 1 | ||||||||||||
Equity carrying value | 1,630,000 | 1,698,000 | 1,698,000 | $ 1,630,000 | |||||||||
Original carrying value | 1,500,000 | 1,500,000 | |||||||||||
Accrued dividends | 198,000 | ||||||||||||
Preferred stock with beneficial conversion feature | $ 1,500,000 | ||||||||||||
Series D Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt instrument convertible beneficial conversion feature | $ 300,000 | ||||||||||||
Preferred stock, dividend rate | 8% | ||||||||||||
Preferred stock, par value | $ 10 | $ 10 | |||||||||||
Equity carrying value | $ 1,512,000 | 1,580,000 | 1,580,000 | $ 1,512,000 | |||||||||
Original carrying value | $ 1,500,000 | 1,500,000 | |||||||||||
Accrued dividends | $ 80,000 | ||||||||||||
Advance from investor | $ 1,500,000 | ||||||||||||
Warrants to purchase shares | 128,000 | 128,000 | |||||||||||
Exercise price of warrants | $ 1.75 | $ 1.75 | |||||||||||
Percentage of variable price on VWAP | 85% | 85% | |||||||||||
Fair value of warrants | $ 230,000 | ||||||||||||
Series D Preferred Stock [Member] | Unrelated Third Party [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Proceeds from issuance of convertible preferred stock | $ 1,500,000 | ||||||||||||
Stock Purchase Agreement [Member] | Series A Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 500,000 | ||||||||||||
Share issued price per share | $ 10 | ||||||||||||
Proceeds from share issuance | $ 5,000,000 |
Legal Proceedings (Details Narr
Legal Proceedings (Details Narrative) - Engie Resources LLC [Member] - USD ($) | 1 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Feb. 28, 2022 | |
Payment related to utilities | $ 94,000 | ||
Payments for losses and loss adjustment expense | $ 30,000 | $ 75,000 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,664,000 | $ 1,249,000 |
Work in process | 2,501,000 | 2,492,000 |
Finished goods | 4,420,000 | 4,425,000 |
Allowance for excess quantities | (304,000) | (290,000) |
Total inventories | $ 8,281,000 | $ 7,876,000 |
Schedules of Concentration of R
Schedules of Concentration of Risk (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Net Sales | $ 1,829,000 | $ 3,421,000 | $ 4,331,000 | $ 7,344,000 |
Percentage of Net Sales | 41% | 60% | 42% | 60% |
Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Net Sales | $ 1,323,000 | $ 812,000 | $ 2,670,000 | $ 2,106,000 |
Percentage of Net Sales | 30% | 14% | 26% | 17% |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Narrative) - Customers [Member] - Accounts Receivable [Member] - Customer Concentration Risk [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | ||
Net accounts receivable | $ 200,800,000 | $ 220,200,000 |
Concentration risk, percentage | 73% | 64% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - John H. Schwan [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Jan. 02, 2019 | |
Related Party Transaction [Line Items] | ||||||
Due to related parties | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | $ 1,600,000 | ||
Repayments of related party debt | 0 | |||||
Interest expense | $ 18,000 | $ 17,000 | $ 36,000 | $ 34,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Jul. 31, 2020 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease, right-of-use asset | $ 4,319,000 | $ 3,530,000 | |||
Operating lease, liability, current | 500,000 | 670,000 | |||
Operating lease, liability, noncurrent | $ 3,628,000 | 2,860,000 | |||
Lease Agreement [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Monthly lease payments | $ 34,000 | $ 38,000 | |||
Lease description | This lease was subsequently extended during March 2022 to extend through December 31, 2025. | ||||
Incremental borrowing rate | 11% | ||||
Operating lease, right-of-use asset | $ 4,277,000 | 3,530,000 | |||
Operating lease, liability, current | 500,000 | 648,000 | |||
Operating lease, liability, noncurrent | $ 3,777,000 | $ 2,860,000 |