0001437749-21-013164.txt : 20210524 0001437749-21-013164.hdr.sgml : 20210524 20210524164206 ACCESSION NUMBER: 0001437749-21-013164 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 61 CONFORMED PERIOD OF REPORT: 20210331 FILED AS OF DATE: 20210524 DATE AS OF CHANGE: 20210524 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Yunhong CTI Ltd. CENTRAL INDEX KEY: 0001042187 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED RUBBER PRODUCTS, NEC [3060] IRS NUMBER: 362848943 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-23115 FILM NUMBER: 21955577 BUSINESS ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 BUSINESS PHONE: 8473821000 MAIL ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 FORMER COMPANY: FORMER CONFORMED NAME: CTI INDUSTRIES CORP DATE OF NAME CHANGE: 19970710 10-Q 1 ctib20210331_10q.htm FORM 10-Q ctib20210331_10q.htm
 

 

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2021

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _________to_________

 

Commission File Number

000-23115

 

YUNHONG CTI LTD.

(Exact name of registrant as specified in its charter)

 

Illinois

 

36-2848943

(State or other jurisdiction of

 

(I.R.S. Employer Identification No.)

incorporation or organization)

   

 

22160 N. Pepper Road

   

Barrington, Illinois

 

60010

(Address of principal executive offices)

 

(Zip Code)

 

(847)382-1000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which

registered

Common Stock, no par value per share

 

CTIB

 

The Nasdaq Stock Market LLC

(The Nasdaq Capital Market)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑     No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

   

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐     No ☑

 

The number of shares outstanding of the registrant’s common stock, no par value per share, as of May 20, 2021 was 5,886,750 (excluding treasury shares).

 

 

 

 

INDEX

 

PART I FINANCIAL INFORMATION

 
     

Item No. 1.  

Financial Statements

 
 

Condensed Consolidated Balance Sheets at March 31, 2021 (unaudited) and December 31, 2020 (audited)

1

 

Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three months ended March 31, 2021 and March 31, 2020

2

 

Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2021 and March 31, 2020

3

 

Condensed Consolidated Statements of Shareholders' Equity (unaudited) for the three months ended March 31, 2021 and March 31, 2020

4

 

Notes to Condensed Consolidated Financial Statements (unaudited)

5

Item No. 2 

Managements Discussion and Analysis of Financial Condition and Results of Operations

19

Item No. 3

Quantitative and Qualitative Disclosures Regarding Market Risk

25

Item No. 4

Controls and Procedures

25

     

PART II OTHER INFORMATION

 
     

Item No. 1 

Legal Proceedings

26

Item No. 1A

Risk Factors

26

Item No. 2

Unregistered Sales of Equity Securities and Use of Proceeds

26

Item No. 3 

Defaults Upon Senior Securities

26

Item No. 4

Mine Safety Disclosures

28

Item No. 5

Other Information

28

Item No. 6

Exhibits

29

 

Signatures

29

 

Exhibit 31.1

 
 

Exhibit 31.2

 
 

Exhibit 32

 
 
 

Yunhong CTI, LTD

Condensed Consolidated Balance Sheets

 

   

March 31, 2021

   

December 31, 2020

 

ASSETS

    (Unaudited)          

Current assets:

               

Cash and cash equivalents

  $ 85,605     $ 429,457  

Accounts receivable

    7,241,714       5,013,195  

Inventories, net

    10,922,713       10,969,711  

Prepaid expenses

    733,891       589,149  

Other current assets

    1,341,046       1,352,419  

Income Tax Receivable

    196,747       403,074  

Receivable from related party

    100,000       100,000  

Assets of discontinued operations

    204,651       294,219  
                 

Total current assets

    20,826,367       19,151,224  
                 

Property, plant and equipment:

               

Machinery and equipment

    19,824,315       19,833,903  

Building

    3,321,016       3,321,016  

Office furniture and equipment

    2,161,061       2,231,458  

Intellectual property

    783,179       783,179  

Land

    250,000       250,000  

Leasehold improvements

    147,416       407,476  

Fixtures and equipment at customer locations

    518,450       518,450  

Projects under construction

    71,206       71,206  
      27,076,643       27,416,688  

Less : accumulated depreciation and amortization

    (25,233,487 )     (25,466,213 )
                 

Total property, plant and equipment, net

    1,843,156       1,950,475  
                 

Other assets:

               

Operating lease right-of-use

    791,211       361,720  

Other assets

    86,474       87,552  
                 

Total other assets

    877,685       449,272  
                 

TOTAL ASSETS

  $ 23,547,208     $ 21,550,971  
                 

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY

               

Current liabilities:

               

Trade payables

  $ 6,118,676     $ 5,504,442  

Line of credit

    6,746,160       5,363,340  

Notes payable - current portion

    3,687,100       3,913,666  

Advance from Investor

    -       1,500,000  

Notes payable affiliates - current portion

    -       8,045  

Notes payable - officers, subordinated

    1,140,709       1,123,769  

Operating Lease Liabilities

    633,447       317,591  

Accrued liabilities

    1,124,974       871,761  

Liabilities of discontinued operations

    115,343       184,577  
                 

Total current liabilities

    19,566,409       18,787,191  
                 

Long-term liabilities:

               

Operating Lease Liabilities

    157,764       44,129  
                 

Total long-term liabilities

    157,764       44,129  
                 
                 

TOTAL LIABILITIES

    19,724,173       18,831,320  
                 

Mezzanine equity:

               

Series B Preferred stock -- no par value, 170,000 shares authorized 170,000 shares issued and outstanding at March 31, 2021 and December 31, 2020

    -       1,532,164  
                 

Equity:

               

Yunhong CTI, Ltd shareholders' equity:

               

Series A Preferred Stock -- no par value, 3,000,000 shares authorized, 500,000 shares issued and outstanding at March 31, 2021 December 31, 2020 (liquidation preference - $5.0 million as of March 31, 2021)

    2,854,583       2,754,583  

Series B Preferred Stock -- no par value, 170,000 shares authorized, 170,000 shares issued and outstanding at March 31, 2021 and December 31, 2020

    1,612,707       -  

Series C Preferred Stock -- no par value, 170,000 shares authorized, 170,000 shares issued and outstanding at March 31, 2021 and nil at December 31, 2020 respectively

    1,528,333       -  

Common stock - no par value, 50,000,000 shares authorized, 5,930,408 and 5,827,304 shares issued and 5,886,750 and 5,783,646 shares outstanding at March 31, 2021 and December 31, 2020 respectively

    14,537,828       14,537,828  

Paid-in-capital

    4,832,635       5,041,511  

Accumulated deficit

    (14,804,490 )     (14,382,327 )

Accumulated other comprehensive loss

    (5,901,379 )     (5,885,112 )

Less: Treasury stock, 43,658 shares

    (160,784 )     (160,784 )

Total Yunhong CTI, Ltd Shareholders' Equity

    4,499,433       1,905,699  
                 

Noncontrolling interest

    (676,398 )     (718,212 )
                 

Total Shareholders' Equity

    3,823,035       1,187,487  
                 

TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY

  $ 23,547,208     $ 21,550,971  

 

See accompanying notes to condensed consolidated unaudited financial statements.

 

 

 

Yunhong CTI, LTD

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 

   

For the Three Months Ended March 31,

 
   

2021

   

2020

 
                 

Net Sales

  $ 7,416,168     $ 7,067,501  
                 

Cost of Sales

    6,322,975       5,586,059  
                 

Gross profit

    1,093,193       1,481,442  
                 

Operating expenses:

               

General and administrative

    1,120,350       702,431  

Selling

    32,753       53,754  

Advertising and marketing

    106,566       120,829  

Gain on sale of assets

    -       (25,684 )
                 

Total operating expenses

    1,259,669       851,330  
                 

Income (Loss) from operations

    (166,476 )     630,112  
                 

Other (expense) income:

               

Interest expense

    (231,159 )     (441,177 )

Other Expense

    (57,693 )     (42,334 )

Foreign currency loss

    (26,383 )     (154,083 )
                 

Total other expense, net

    (315,235 )     (637,594 )
                 

Loss from continuing operations before taxes

    (481,711 )     (7,482 )
                 

Income tax expense

    -       -  
                 
                 

Loss from continuing operations

    (481,711 )     (7,482 )
                 
                 

Gain (loss) from discontinued operations, net of tax

    101,362       (486,637 )
                 

Net Loss

  $ (380,349 )   $ (494,119 )
                 

Less: Net (loss) income attributable to noncontrolling interest

    41,814       144,577  
                 

Net loss attributable to Yunhong CTI, Ltd

  $ (422,163 )   $ (638,696 )
                 

Other Comprehensive Income (Loss)

               

Foreign currency adjustment

    (16,267 )     (1,363,503 )

Comprehensive Loss

  $ (396,616 )   $ (1,857,622 )
                 

Deemed Dividends on preferred stock and amortization of beneficial conversion feature

  $ (1,708,876 )   $ (2,380,944 )
                 

Net Loss attributable to Yunhong CTI Ltd Shareholders

  $ (2,131,039 )   $ (3,019,640 )
                 

Basic income (loss) per common share

               

Continuing operations

 

$

(0.38 )   $ (0.64 )

Discontinued operations

 

 

0.02       (0.12 )

Basic income (loss) per common share

 

$

(0.36 )   $ (0.76 )
                 

Diluted income (loss) per common share

               

Continuing operations

 

$

(0.38 )   $ (0.64 )

Discontinued operations

 

0.02

      (0.12 )

Diluted income (loss) per common share

 

$

(0.36 )   $ (0.76 )
                 

Weighted average number of shares and equivalent shares of common stock outstanding:

               

Basic

 

 

5,854,861       3,973,093  
                 

Diluted

 

 

5,854,861       3,973,093  

 

See accompanying notes to condensed consolidated unaudited financial statements.

 

 

 

Yunhong CTI, LTD

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

   

For the Three Months Ended March 31,

 
   

2021

   

2020

 
                 

Cash flows from operating activities:

               

Net loss

  $ (380,349 )   $ (494,119 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities                

Depreciation and amortization

    124,197       294,003  
    Amortization of ROU Asset     152,053       235,368  

Amortization of deferred gain on sale/leaseback

    -       (25,684 )

Provision for losses on accounts receivable

    12,176       10,492  

Provision for losses on inventories

    -       3,770  

Change in assets and liabilities:

               

Accounts receivable

    (1,859,940 )     797,188  

Inventories

    (15,756 )     241,530  

Prepaid expenses and other assets

    (212,159 )     133,257  

Trade payables

    752,689       (157,864 )
       Change in ROU Liability     (152,053 )     (235,368 )

Accrued liabilities

    158,480       39,729  
                 

Net cash (used in) provided by operating activities

    (1,420,662 )     842,302  
                 

Cash flows from investing activities:

               

Purchases of property, plant and equipment

    (45,784 )     (18,526 )
                 

Net cash used in investing activities

    (45,784 )     (18,526 )
                 

Cash flows from financing activities:

               

Repayment of debt and revolving line of credit

    -       (4,716,429 )

Proceeds from issuance of Series A preferred stock

    -       3,626,600  

Cash paid for stock issuance costs

    -       (570,160 )

Cash paid for deferred financing fees

    -       (39,722 )

Proceeds from issuance of long-term debt and revolving line of credit

    1,557,444       -  
                 

Net cash provided by (used in) financing activities

    1,557,444       (1,699,711 )
                 

Effect of exchange rate changes on cash

    (554,714 )     190,942  
                 

Net decrease in cash and cash equivalents

    (463,716 )     (684,993 )
                 

Cash and cash equivalents at beginning of period

    624,953       845,098  
                 

Cash and cash equivalents at end of period

  $ 161,237     $ 160,105  

The cash flows related to discontinued operations of $75,632 and $6,073 as of March 31,2021 and 2020, respectively have not been segregated, and are included in the Consolidated Statements of Cash Flows. The cash and equivalents amounts presented above differ from cash and equivalents in the Consolidated Balance Sheets due to cash included in “Current assets of discontinued operations.”

               
                 

Supplemental disclosure of cash flow information and noncash investing and financing activities:

               

Cash payments for interest

  $ 194,882     $ 441,000  
       Accrual for stock issuance costs   $ -     $ 250,000  

Conversion of debt to Series A Preferred

  $ -     $ 478,000  

Accrued Divided and Accretion on preferred stock

  $ 208,876     $ 53,000  

Issuance of Placement agent warrants in connection with Series A Preferred offering

  $ -     $ 753,000  

Issuance of Common stock to placement agent

  $ -     $ 306,000  

Issuance of Series C Preferred in exchange from advance from investor

  $ 1,500,000     $ -  
       Lease right-of-use assets and lease liability   $ 567,950     $ -  

Amortization of beneficial conversion feature and deemed dividend on Series C Preferred stock

  $ 1,500,000     $ 2,300,000  

 

See accompanying notes to condensed consolidated unaudited financial statements.

 

 

 

Yunhong CTI, Ltd

Consolidated Statements of Shareholders' Equity

 

   

Yunhong CTI, Ltd

 
   

Three Months Ended March 31, 2020

 
                                                                                   

Accumulated

                                 
    Series A     Series B     Series C                             Accumulated     Other     Less                  
   

Preferred Stock

   

Preferred Stock

   

Preferred Stock

   

Common Stock

   

Paid-in

   

(Deficit)

   

Comprehensive

   

Treasury Stock

   

Noncontrolling

         
   

Shares

   

Amount

   

Shares

   

Amount

   

Shares

   

Amount

   

Shares

   

Amount

   

Capital

   

Earnings

   

Loss

   

Shares

   

Amount

   

Interest

   

TOTAL

 
                                                                                                                         

Balance December 31, 2019

    -     $ -       -     $ -       -     $ -       3,879,608     $ 13,898,494     $ 3,587,287     $ (9,992,841 )   $ (5,348,812 )     (43,658 )   $ (160,784 )   $ (856,837 )   $ 1,126,507  
                                                                                                                         

Convertible Preferred Stock Issuance - cash

    362,660       3,509,933                                       140,000       116,667                                                       3,626,600  

Convertible Preferred Stock Issuance - conversion of debt

    48,200       478,017                                                                                                       478,017  

Common stock issued for placement agent fees

            (306,000 )                                     200,000       306,000                                                       -  

Warrants issued to placement agent and other issuance costs

            (752,924 )                                                     752,927                                                  

Placement agent fees and issuance costs

            (820,160 )                                                                                                     (820,160 )

Beneficial Conversion feature (BCF) on Series A Preferred Stock

            (2,328,473 )                                                     2,328,473                                               -  

Deemed Dividend on BCF of Series A Preferred Stock

            2,328,473                                                       (2,328,473 )                                             -  

Accrued Deemed Dividend - Series A Preferred Stock

            52,741                                                       (52,741 )                                             -  

Net Loss

                                                                            (638,696 )                             144,577       (494,119 )

Foreign Currency Translation

                                                                                    (1,363,503 )                             (1,363,503 )

Balance March 31, 2020

    410,860     $ 2,161,607       -     $ -       -     $ -       4,219,608     $ 14,321,161     $ 4,287,473     $ (10,631,537 )   $ (6,712,315 )     (43,658 )   $ (160,784 )   $ (712,260 )   $ 2,553,342  

 

 

    Three Months Ended March 31, 2021  
                                                                                 

Accumulated

   

 

                 
    Series A     Series B     Series C                 Accumulated     Other     Less                
   

Preferred Stock

   

Preferred Stock

   

Preferred Stock

   

Common Stock

   

Paid-in

   

(Deficit)

   

Comprehensive

   

Treasury Stock

   

Noncontrolling

         
   

Shares

   

Amount

   

Shares

   

Amount

   

Shares

   

Amount

   

Shares

   

Amount

   

Capital

   

Earnings

   

Loss

   

Shares

   

Amount

   

Interest

   

TOTAL

 
                                                                                                                         

Balance December 31, 2020

    500,000     $ 2,754,583       -     $ -       -     $ -       5,827,304     $ 14,537,828     $ 5,041,511     $ (14,382,327 )   $ (5,885,112 )     (43,658 )   $ (160,784 )   $ (718,212 )   $ 1,187,487  
                                                                                                                         

Series C Convertible Preferred Stock Issuance

                                    170,000       1,500,000                                                                       1,500,000  

Series B Convertible Preferred Stock Modification

                    170,000       1,612,707                                                                                       1,612,707  

Convertible Preferred Stock Issuance - conversion of debt

                                                                                                                    -  

Common stock issued for warrants exercised - cashless

                                                    103,104                                                                  

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 )

Accrued Deemed Dividend - Series A Preferred Stock

            100,000               -               -                       (100,000 )                                             -  

Accrued Deemed Dividend - Series B Preferred Stock

                                                                    (33,611 )                                             (33,611 )

Accrued Deemed Dividend - Series C Preferred Stock

                                            28,333                       (28,333 )                                             -  

Accretion of Series B Preferred Stock

                                                                    (46,932 )                                             (46,932 )
                                                                                                                         

Net Loss

                                                                            (422,163 )                             41,814       (380,349 )

Foreign Currency Translation

                                                                                    (16,267 )                             (16,267 )

Balance March 31, 2021

    500,000     $ 2,854,583       170,000     $ 1,612,707       170,000     $ 1,528,333       5,930,408     $ 14,537,828     $ 4,832,635     $ (14,804,490 )   $ (5,901,379 )     (43,658 )   $ (160,784 )   $ (676,398 )   $ 3,823,035  

 

See accompanying notes to unaudited condensed consolidated financial statements

 

 

Yunhong CTI Ltd. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

 

 

 

Note 1 - Basis of Presentation

 

The accompanying condensed (a) consolidated balance sheet as of March 31, 2021 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 months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. 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, 2020.

 

Principles of consolidation and nature of operations:

 

Yunhong CTI Ltd, its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note 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”). Accordingly, the operations of this entity 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. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L.

 

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.

 

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, and assumptions used as inputs in the Black-Scholes option-pricing model. 

 

 

Earnings per share:

 

Basic (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period.

 

Diluted (loss) per share is computed by dividing the net loss by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period.

 

As of March 31, 2021 and 2020, shares to be issued upon the exercise of options and warrants aggregated nil and 632,660, respectively. The number of shares included in the determination of earnings on a diluted basis for the three months ended March 31, 2021 and 2020 were none, as doing so would have been anti-dilutive.

 

 

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, 2020. There were no significant changes to these accounting policies during the three months ended March 31, 2021.

 

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.

 

 

 

Note 2 Discontinued Operations

 

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.

 

In October 2019, we determined that we would not renew our Trademark License Agreement with SC Johnson when it expired on December 31, 2019. Under this Agreement, we were licensed to manufacture and sell a line of vacuum sealing machines and pouches under the Ziploc® Brand Vacuum Sealer System. The terms of the Agreement included a run-off provision which allowed us to sell products under the Ziploc® trademark for 90 days after the end of the Agreement. Our exit of the Ziploc® product line is considered a strategic shift and had a major effect on our operations and financial results. Therefore, this product line has been presented as discontinued operations.

 

CTI Europe recorded a gain from discontinued operations, net of taxes of $52,708 and $317,000 for the three months ended March 31, 2021 and March 31, 2020, respectively.

 

Our Ziploc product line recorded a loss from discontinued operations, net of taxes of nil and ($804,000) for the three months ended March 31, 2021 and March 31, 2020, respectively.

 

 

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 Income for the three months ended:

 

   

March 31, 2021

   

March 31, 2020

 

Income Statement

               

Net Sales

    79,833       1,057,058  

Cost of Sales

    126,906       1,174,045  
                 

Gross Loss

  $ (47,073 )   $ (116,987 )
                 
                 

SG&A

    92,266       524,550  
                 

Operating Loss

  $ (139,339 )   $ (641,537 )
                 

Other Expense

    9,963       13,220  
                 

Total pretax loss from discontinued operations

  $ (149,302 )   $ (654,757 )
                 

Gain from classification to held for sale

    250,664       168,120  
                 

Net Income (Loss) prior to non-controlling interest

  $ 101,362     $ (486,637 )
                 

Non-controlling Interest share of profit/loss

    48,654       152,094  
                 

Net Income (Loss)

  $ 52,708     $ (638,731 )

 

 

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.

Unaudited Consolidated Balance Sheet

 

   

March 31, 2021

   

December 31, 2020

 

Balance Sheet

               

Assets

               

Current Assets

               

Cash on hand and Banks

  $ 75,632     $ 195,496  

Accounts Receivable

    29,398       117,687  

Inventory

    -       -  

Prepaid & Other

    60,633       62,275  
                 

TOTAL Current Assets

    165,663       375,458  
                 

NET Property, Plant, and Equipment

    6,445       7,471  
                 

Other Assets

               

Operating lease right-of-use

    -       129,411  

Other

    32,543       32,543  

TOTAL Other Assets

    32,543       161,954  

TOTAL Non-Current Assets

    38,988       169,425  
                 

Valuation Allowance on Assets Held for Sale

    -       (250,664 )
                 

TOTAL Assets

  $ 204,651     $ 294,219  
                 

Liabilities

               

Current Liabilities

               

Trade Accounts Payable

    83,229       21,256  

Operating Lease Liabilities - Current

    -       93,514  

Other/Accrued Liabilities

    (3,271 )     (2,796 )

TOTAL Current Liabilities

    79,958       111,974  
                 

Non-Current Liabilities

               

Operating Lease Liabilities - Non Current

    -       35,897  

Other Non-Current

    35,385       36,706  

TOTAL Non-Current Liabilities

    35,385       72,603  
                 

TOTAL Liabilities

  $ 115,343     $ 184,577  

 

 

The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The following table summarizes depreciation from discontinued operations for each of the periods presented:

 

   

Three Months Ended

 
   

March 31,

 
   

2021

   

2020

 

Depreciation

  $ 710     $ 154,892  

 

 

 

 

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 March 31, 2021 of over $14 million. The accompanying financial statements for the three months ended March 31, 2021 have been prepared assuming the Company will continue as a going concern. The Company’s cash resources from operations may be insufficient to meet its anticipated needs during the next twelve months. The Company will require additional financing to fund its future planned operations.

 

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 has impacted the Company’s business operations to some extent and is expected to continue to do so and, in light of the effect of such pandemic on financial markets, these impacts may include reduced access to capital. The ability of the Company to continue as a going concern is 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 with PNC (see Note 4). As of March 2019, October 2019 and January 2020, we entered into forbearance agreements with PNC. We encountered subsequent compliance failures with covenants during 2020 and we were out of compliance with the terms of our credit facility, as amended, as of March 31, 2021. 

 

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, consisting of $2,000,000 in cash and a promissory note with a principal amount of $1,500,000, due and payable on May 3, 2021 (the “Purchaser Promissory Note”). Concurrently with the closing under the PSA, the Company and the Purchaser entered into a lease agreement pursuant to which the Company agreed to lease the Lake Barrington Facility from the Purchaser for a period of ten years. The annual base rent commences at $500,000 for the first year of the term and escalates annually to $652,386 during the last year of the term of the lease. As the decision to sell the Lake Barrington Facility was made in April 2021, the facility is not classified as held for sale as of March 31, 2021.  Concurrently with the entry into the PSA and the Lease, the Company entered into a Consent, Forbearance and Amendment No. 6 to Revolving Credit, Term Loan and Security Agreement (the “Amendment Agreement”) with PNC for itself and for the other participant lenders thereunder (collectively, the “Lender”). Prior to entering into the Amendment Agreement, PNC had notified the Company that various events of default had occurred under the Loan Agreement (the “Existing Defaults”) and were continuing. Pursuant to the Amendment Agreement, the Lender consented to the transactions contemplated by the PSA and the Lease, as required under the Loan Agreement.  As a condition to the Amendment Agreement, the Company agreed that the full $2,000,000 in cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the $2,000,000 term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that $1,500,000 in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under revolving credit advances made pursuant to the Loan Agreement (the “Revolving Loans”). Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to the Existing Event of Defaults under the Loan Agreement for a period ending on the earlier of September 30, 2021, the occurrence of a new event of default under the Loan Agreement, or the occurrence of a Termination Event (as defined therein). Additionally, certain additions and amendments to the Loan Agreement were set forth in the Amendment Agreement, including:

 

 

The Maximum Revolving Advance Amount is reduced from $18,000,000 to $9,000,000;

 

The Termination Date of the Loan Agreement is revised from December 14, 2022 to December 31, 2021;

 

 

 

On or before June 30, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall receive an equity investment of at least $1,500,000 and apply 100% of the proceeds to a reduction of the Revolving Credit Advance under the Loan Agreement (the “Equity Investment”);

 

On or before August 15, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall deliver to Lender (i) a binding term sheet, in form and substance acceptable to Lender, from a financing source that provides for the refinance and payment in full, in cash, of the obligations owing under the Loan Agreement on or before September 30, 2021, or (ii) evidence, in form and substance satisfactory to the Lender, that certain equity holders of the Company have available and identifiable funds that are on deposit with a depository institution that are sufficient to pay in full, in cash, all of the Company obligations under the Loan Agreement on or before September 30, 2021;

 

On or before September 30, 2021, the Company will cause all of the amounts owing under the Loan Agreement to be paid in full in cash;

 

The Forbearance Reserve (as defined in Amendment No. 5 to the Loan Agreement) shall be increased from $1,025,000 to $2,525,000;

 

Effective August 1, 2021, accounts receivable from Wal-Mart Stores and its affiliates shall no longer be considered eligible receivables;

 

Modifications will be made to the budget, testing and variance provisions of the Loan Agreement.

 

In consideration for entering into the Loan Amendment, the Company agrees to pay the Lender a Forbearance Fee of $1,000,000. Provided, however, that, so long as no event of default under the Loan Agreement has occurred (including as a result of a failure of the Company to pay down the Revolving Loans by $1,500,000 with the proceeds of the Purchaser Promissory Note, (i) if the Company consummates the Equity Investment by June 30, 2021, the Forbearance Fee shall be reduced by $250,000, to $750,000, and (ii) if the Company causes all of the obligations under the Loan Agreement to be paid in full, in cash, on or before September 30, 2021, the Forbearance Fee shall be reduced by an additional $500,000, to $250,000.

 

 

 

 

Note 4 - Debt

 

During December 2017, we terminated a prior credit arrangement and entered in new financing agreements (as amended to date, the “PNC Agreements”) with PNC Bank, National Association (“PNC”). The PNC Agreements, included a $6 million term loan and a $9 million revolving credit facility, with a termination date of December 2021.

 

 

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:

 

 

Negative Covenants: Negative covenants under which we are prohibited from, or restricted in our ability to:

 

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: Financial covenants we are required to meet including:

 

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 PNC Agreements provides for interest at varying rates in excess of the prime rate, depending on the level of senior debt to EBITDA over time.

 

Failure to comply with these covenants has caused us to pay a higher rate of interest (increased by 4% pursuant to the PNC Agreements), and other potential penalties may impact the availability of the credit facility itself, and thus might negatively impact our ability to remain a going concern. As described above in this Note as well as in Note 3, we remain out of compliance with the terms of this facility.

 

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 million, including accrued interest. This loan accrues interest at 6%, is due on demand, and is subordinate to the PNC Agreements. During January 2019, Mr. Schwan converted $600,000 of the note into approximately 181,000 shares of our common stock at the then market rate of $3.32 per share. As a result of the conversion, the loan balance decreased to $997,019 and Company and Mr. Schwan agreed to increase the interest rate to 6%.

 

The loan and interest payable to Mr. Schwan amounted to $1,140,709 and $1,123,769 as of March 31, 2021 and December 31, 2020, respectively.

 

No payments were made to Mr. Schwan since 2019. Interest expense related to this loan amounted to $17,000 and $15,000 for the three months end March 31, 2021 and 2020, respectively.

 

During 2020, Flexo replaced a $260,000 line of credit with three lines of credit totaling $260,000.  Flexo’s total debt instruments as of March 31, 2021 amounted to $1.8 million.  

 

 

 

 

Note 5 - Shareholders' Equity 

 

 

Series A 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, President and Chief Executive Officer, Mr. Yubao Li, agreed to purchase, up to 500,000 shares of the Company’s newly created shares of Series A Preferred Stock (“Series A Preferred”), with each share of Series A Preferred initially convertible into ten shares of the Company’s common stock, at a purchase price of $10.00 per share, for aggregate gross proceeds of $5,000,000 (the “LF International Offering”). As permitted by the Purchase Agreement, the Company may, in its discretion issue up to an additional 200,000 shares of Series A Preferred for a purchase price of $10.00 per share (the “Additional Shares Offering,” and collectively with the LF International Offering, the “Offering”). Approximately $1 million of Series A Preferred has been sold as of March 31, 2021, including to an investor which converted an account receivable of $478,000 owed to the investor by the Company in exchange for 48,200 shares of Series A Preferred. The Company completed several closings with LF International from January 2020 through June 2020. The majority of the funds received reduced our bank debt. We issued a total of 400,000 shares of common stock to LF International and, pursuant to the LF Purchase Agreement, changed our name from CTI Industries Corporation to Yunhong CTI Ltd. LF International has the right to name three directors to serve on our Board. They are Mr. Yubao Li, our Chairman, Ms. Wan Zhang and Ms. Yaping Zhang.     

 

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 million as of the closing dates.  We recognized this BCF by allocating the intrinsic value of the conversion option, to additional paid-in capital, resulting in a discount on the Series A Preferred. As the Series A Preferred is immediately convertible, the Company accreted the discount on the date of issuance.  The accretion was recognized as dividend equivalents.  Holders of the Series A Preferred will be entitled to receive quarterly dividends at the annual rate of 8% of the stated value ($10 per share). Such dividends may be paid in cash or in shares of common stock at the Company’s discretion.  In the three months ending March 31 2021 and 2020 the Company accrued $100,000 and $52,741, respectively, of these dividends. 

 

 

 

Series B Preferred

 

In November 2020, we issued 170,000 shares of Series B Preferred for an aggregate purchase price of $1,500,000. The Series B Preferred have an initial stated value of $10.00 per share and liquidation preference over common stock. The Series B Preferred is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of $1.00. The Series B Preferred accrues dividends at a rate of 8 percent per annum, payable at our election either in cash or shares of the Company’s common stock. Initially, the Series B Preferred, in whole or part, was redeemable at the option of the holder (but not mandatorily redeemable) at any time on or after November 30, 2021 for the stated value, plus any accrued and unpaid dividends and thus was classified as mezzanine equity and initially recognized at fair value of $1.5 million (the proceeds on the date of issuance). In March 2021, the terms of the Series B Preferred were modified to eliminate the ability of the holder to redeem the Series B Preferred. As the Series B Preferred is no longer redeemable, the Series B Preferred is not classified as mezzanine equity as of March 31, 2021.  As a result, the carrying value as of March 31, 2021 amounted to $1,612,707 which consists of $1,500,000 original carrying value, $47,206 accrued dividends and $65,500 accretion ($46,937 which occurred in 2021).

 

 

Series C Preferred

 

In January 2021 we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.  We issued 170,000 shares of Series C Preferred for an aggregate purchase price of $1,500,000. The Series C Preferred have an initial stated value of $10.00 per share and liquidation preference over common stock. The Series C Preferred is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of $1.00. The Series C Preferred accrues dividends at a rate of 8 percent per annum, payable at our election either in cash or shares of the Company’s common stock. The issuance of the Series C 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 C Preferred was convertible exceeded the allocated purchase price of the Series C Preferred at the closing dates by greater than the allocated purchase price. Therefore, the BCF was the purchase price of the Series C Preferred ($1.5 million) and was allocated to Additional Paid-in Capital, resulting in a discount on the Series C Preferred Stock. As the Series C Preferred Stock is immediately convertible, the Company accreted the discount on the date of issuance.  The accretion to the carrying value of the Series C Preferred is treated as a deemed dividend, recorded as a charge to Additional Paid in Capital and deducted in computing earnings per share.

 

 

 

Warrants

In connection with the Series A Offering, in 2020 the Company issued 792,660 warrants to purchase 792,660 shares of the Company’s common stock for $1 per share. During 2020, 597,500 warrants were exercised in cash-less exchange for 391,308 shares of the Company’s common stock.  In January and February 2021, the remaining 195,160 warrants were exercised in a cash-less exchange for 103,104 shares of the Company’s common stock.

 

The Company has applied the Black-Scholes model to value stock-based awards. That model incorporates various assumptions in the valuation of stock-based awards relating to the risk-free rate of interest to be applied, the estimated dividend yield and expected volatility of the Company’s Common Stock. The risk-free rate of interest is the U.S. Treasury yield curve for periods within the expected term of the option at the time of grant. The expected volatility is based on historical volatility of the Company’s Common Stock.

 

The valuation assumptions we have applied to determine the value of warrants granted in 2020 were as follows:

 

Historical stock price volatility: The Company used the weekly closing price to calculate historical annual volatility.

 

Risk-free interest rate: The Company bases the risk-free interest rate on the rate payable on US treasury securities with a similar maturity in effect at the time of the grant, which was a range from .42% - 1.65%.

 

Expected life: The expected life of the warrants represents the period of time warrants were expected to be outstanding. The Company used an expected life of 5 years.

 

Dividend yield: The estimate for dividend yield is 0%, as the Company did not issue dividends during 2020 or 2019 and does not expect to do so in the foreseeable future.

 

Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements.

 

A summary of the Company’s stock warrant activity is as follows:

 

   

Shares under

Option

   

Weighted

Average

Exercise

Price

 

Balance at December 31, 2020

    195,160     $ 1.00  

Granted

    -       1.00  

Cancelled/Expired

    -       1.00  

Exercised/Issued

    (195,160

)

    1.00  

Outstanding at March 31, 2021

    -       1.00  
                 

Exercisable at March 31, 2021

    -     $ 1.00  

 

 

 

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.

 

In July, 2017, God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (“Claimants”) filed an action against the Company based on disputed compensation amounts over several years. This action was resolved by mutual agreement between the parties during January 2019. Mr. Page received 20,000 shares of CTI common stock, $5,000 in cash, and a minimum payout in his monthly royalty calculation of $7,667 beginning March 1, 2019 and ending August 1, 2021. The balance remaining as of March 31, 2021 and December 31, 2020 amounted to $38,325 and $53,659, respectively.

 

FedEx Trade Networks Transport and Brokerage Inc. v. CTI Industries Corp., Case No. 20 L 46, was filed on January 27, 2020 in the Circuit Court of the 19th Judicial Circuit, Lake County, Illinois.  The complaint for breach of contract sought $163,964.75 in damages, plus interest and court costs. On October 15, 2020, the case was dismissed with leave to reinstate pursuant to settlement. The settlement calls for the payment of $100,400.00 in monthly installments of $10,000 per month for a period of ten (10) months and with the last payment being in the amount of $10,400. The first payment came due and was made on October 30, 2020, and payments have been made monthly. The balance remaining as of March 31, 2021 and December 31, 2020 amounted to $40,400 and $70,400, respectively.

 

Airgas USA, LLC v. CTI Industries Corp., Case No. 01-20-0014-7852 was filed with the American Arbitration Association on or about September 8, 2020. The claim seeks $212,000, plus interest, attorneys’ fees and costs for breach of contract. Claimant agreed to give CTI an extension to respond to the claim so the parties could attempt to resolve. On February 10, 2021, Airgas accepted CTI’s offer to pay $125,000 over 10 months. Airgas agreed to the settlement in March of 2021. The liability recorded by the Company as of March 31, 2021 and December 31, 2020 amounted to $125,000, respectively.

 

On October 19, 2020, Jules and Associates, Inc. sent CTI a demand letter related to the lease of certain equipment. The letter demanded $65,846.99 for alleged past due amounts under the lease as well as a return of the equipment. Discussions regarding the return of the equipment are ongoing and no lawsuit has been filed. On April 5, 2020 Jules & Associates, Inc. filed and served on CTI a demand for arbitration with JAMS related to the lease of certain equipment.  The demand requests $98,244.55 for alleged past due amounts under the lease as well as a return of the equipment or its fair market value. The Company accrued the $0.1 million in committed costs under this settlement in its March 31, 2021 financial statements. The liability recorded by the Company as of March 31, 2021 and December 31, 2020 amounted to $91,298 and $75,187, respectively.

 

On October 19, 2020, Redwood Multimodal sent CTI a demand for the withholding of payment in the amount $98,960.88 for loads brokered by Redwood. Settlement discussions are ongoing and no lawsuit has been filed. The Company accrued the $0.1 million in committed costs under this settlement in its March 31, 2021 financial statements. The liability recorded by the Company as of March 31, 2021 and December 31, 2020 amounted to $98,961.

 

Benchmark Investments, Inc. v. Yunhong CTI Ltd filed a case in the United States District Court for the Southern District of New York on March 16, 2021 and served on CTI on March 31, 2021.  CTI has through June 4, 2021 to file its response to the complaint.  The complaint seeks damages in excess of $500,000.

 

 

 

 

 

Note 7 - Other Comprehensive Income

 

In the three months ended March 31, 2021 and 2020, the Company incurred other comprehensive income (loss) of approximately $32,000 and ($1,364,000), respectively, from foreign currency translation adjustments.  The main contributing factor for the large other comprehensive loss in the three months ended March 31, 2020 was the sudden 25% decline in the valuation of the Mexican peso related to the COVID-19 pandemic and the resulting large-scale, rapid impacts to the world economy.  The Mexican peso has since generally stabilized which has afforded the Company a small income for three months ended March 31, 2021.  

 

 

 

 

Note 8 - Geographic Segment Data

 

The Company has determined that it operates primarily in one business segment that designs, manufactures, and distributes film and film related products for use in packaging, storage, and novelty balloon products. The Company operates in foreign and domestic regions. Information about the Company's continuing operations by geographic area is as follows:

 

   

Net Sales to Outside Customers

 
   

For the Three Months Ended

 
   

March 31,

 
   

2021

   

2020

 
                 

United States

  $ 6,599,000     $ 5,426,000  

Mexico

    817,000       1,642,000  
                 
    $ 7,416,000     $ 7,068,000  

 

 

   

Total Assets at

 
   

March 31,

   

December 31,

 
   

2021

   

2020

 
                 

United States

 

$

15,836,000

   

$

12,459,000

 

Mexico

   

7,506,000

     

8,798,000

 

Assets Held for Sale International Subsidiaries

   

205,000

     

294,000

 
                 
   

$

23,547,000

   

$

21,551,000

 

 

 

 

 

Note 9 - Inventories, Net of Continuing Operations

 

   

March 31,

2021

   

December 31,

2020

 

Raw materials

  $ 1,218,000     $ 1,177,000  

Work in process

    2,979,000       2,799,000  

Finished goods

    6,890,000       7,224,000  

In Transit

    86,000       88,000  

Allowance for excess quantities

    (250,000

)

    (318,000

)

Total inventories

  $ 10,923,000     $ 10,970,000  

 

 

 

 

Note 10 - 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 months ended March 31, 2021 and 2020, there was one customer whose purchases represented more than 10% of the Company’s consolidated net sales. Sales to this customer for the three months ended March 31, 2021 and 2020 are as follows:

 

   

Three Months Ended

   

Three Months Ended

 
   

March 31, 2021

   

March 31, 2020

 

Customer

 

Net Sales

   

% of Net

Sales

   

Net Sales

   

% of Net

Sales

 

Customer A

  $ 3,991,000       54

%

  $ 3,222,000       46

%

 

 

As of March 31, 2021, the total amounts owed to the Company by this customer were approximately $2,385,000 or 33% of the Company’s consolidated net accounts receivable. The amounts owed at March 31, 2020 by this customer was approximately $2,097,000 or 29% of the Company’s consolidated net accounts receivable.

 

 

 

 

Note 11 - Related Party Transactions

 

John H. Schwan, who resigned as Chairman of the Board on June 1, 2020, is the brother of Gary Schwan, one of the owners of Schwan Incorporated, which provides building maintenance services to the Company. The Company made payments to Schwan Incorporated of approximately $31,000 and none during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 the payable balance amounted to nil. Jana M. Schwan, Chief Operating Officer of the Company, is the daughter of John H. Schwan. 

 

During the period from January 2003 to the present, John H. Schwan has made loans to the Company which had outstanding balances of $1,140,709 and $1,123,769 as of March 31, 2021 and December 31, 2020, respectively.  No payments were made to Mr. Schwan since 2019. Interest expense related to this loan amounted to $17,000 and $15,000 for the three months end March 31, 2021 and 2020, respectively.

 

Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of March 31, 2021 and 2020 include loans by shareholders to Flexo Universal totaling nil and $9,000, respectively.

 

On July 1, 2019, the Company deconsolidated Clever, and as result the Company recorded a note receivable of $1.3 million. One of owners of Clever is John Schwan from above. In 2020, the Company had reserved $1,277,000 of this receivable and as a result the balance as of December 31, 2020 and March 31, 2021 amounted to $100,000.

 

In January 2021 we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.  We issued 170,000 shares of Series C Preferred for an aggregate purchase price of $1,500,000.  Additional details regarding the transaction are discussed in Note 5.  

 

 

 

 

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 enter into interest rate swaps to fix the interest rate on a portion of our variable interest rate debt to reduce the potential volatility in our interest expense that would otherwise result from changes in market interest rates. Our derivative instruments are recorded at fair value and are included in accrued liabilities of our consolidated balance sheet. Our accounting policies for these instruments are based on whether they meet our criteria for designation as hedging transactions, which include the instrument’s effectiveness, risk reduction and, in most cases, a one-to-one matching of the derivative instrument to our underlying transaction. As of March 31, 2021, we had no such instrument.

 

 

 

 

Note 13 - 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 are $38,000.  The Company made a policy election to not recognize right of use assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Consolidated Balance Sheets.   However, the Company recognized these lease payments in the Consolidated Statement of Operations on a straight-line basis over the lease term and variable lease payments in the period in which the expense was incurred. This lease terminated during 2021 and was replaced with a new lease. In March 2021, the Company entered into a lease agreement for a building through September 2022. The monthly lease payments are $34,000.  As a result of this new lease, in March 2021, the Company recorded a right of use asset of $567,950 and a related operating lease liability and used the incremental borrowing rate of 11%.

 

 

 

Note 14 - Subsequent Events

 

The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Other than the items discussed in Note 3 related to the April 23, 2021 Purchase and Sale Agreement ("PSA") and related lease and note payable, there were no subsequent events that required recognition or disclosure.

 

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 

Forward Looking Statements

 

This Quarterly Report on Form 10-Q includes both historical and “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future results. Words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or similar words are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from the views and expectations set forth in this Quarterly Report on Form 10-Q. We disclaim any intent or obligation to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q to conform such statements to actual results or to changes in our opinions or expectations. These forward-looking statements are affected by factors, risks, uncertainties and assumptions that we make, including, without limitation, those discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 under the heading “Risk Factors.”

 

Overview

 

We produce film products for novelty, packaging and container applications. These products include foil balloons, latex balloons and related products, films for packaging and custom product applications, and flexible containers for packaging and consumer storage applications. We produce all of our film products for packaging, container applications and most of our foil balloons at our plant in Lake Barrington, Illinois. We produce all of our latex balloons and latex products at our facility in Guadalajara, Mexico. Substantially all of our film products for packaging and custom product applications are sold to customers in the United States. We market and sell our novelty items and flexible containers for consumer use in the United States, Mexico, Latin America, and Europe. We also market and sell Candy Blossoms and party goods.

 

 

Summary of Subsequent Events

 

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, consisting of $2,000,000 in cash and a promissory note with a principal amount of $1,500,000, due and payable on May 3, 2021 (the “Purchaser Promissory Note”). Concurrently with the closing under the PSA, the Company and the Purchaser entered into a lease agreement pursuant to which the Company agreed to lease the Lake Barrington Facility from the Purchaser for a period of ten years. The annual base rent commences at $500,000 for the first year of the term and escalates annually to $652,386 during the last year of the term of the lease. As the decision to sell the lake Barrington Facility was made in April 2021, the facility is not classified as held for sale as of March 31, 2021.Concurrently with the entry into the PSA and the Lease, the Company entered into a Consent, Forbearance and Amendment No. 6 to Revolving Credit, Term Loan and Security Agreement (the “Amendment Agreement”) with PNC for itself and for the other participant lenders thereunder (collectively, the “Lender”). Prior to entering into the Amendment Agreement, PNC had notified the Company that various events of default had occurred under the Loan Agreement (the “Existing Defaults”) and were continuing. Pursuant to the Amendment Agreement, the Lender consented to the transactions contemplated by the PSA and the Lease, as required under the Loan Agreement.  As a condition to the Amendment Agreement, the Company agreed that the full $2,000,000 in cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the $2,000,000 term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that $1,500,000 in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under revolving credit advances made pursuant to the Loan Agreement (the “Revolving Loans”). Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to the Existing Event of Defaults under the Loan Agreement for a period ending on the earlier of September 30, 2021, the occurrence of a new event of default under the Loan Agreement, or the occurrence of a Termination Event (as defined therein). Additionally, certain additions and amendments to the Loan Agreement were set forth in the Amendment Agreement, including:

 

 

The Maximum Revolving Advance Amount is reduced from $18,000,0000 to $9,000,000;

 

The Termination Date of the Loan Agreement is revised from December 14, 2022 to December 31, 2021;

 

On or before June 30, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall receive an equity investment of at least $1,500,000 and apply 100% of the proceeds to a reduction of the Revolving Credit Advance under the Loan Agreement (the “Equity Investment”);

 

On or before August 15, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall deliver to Lender (i) a binding term sheet, in form and substance acceptable to Lender, from a financing source that provides for the refinance and payment in full, in cash, of the obligations owing under the Loan Agreement on or before September 30, 2021, or (ii) evidence, in form and substance satisfactory to the Lender, that certain equity holders of the Company have available and identifiable funds that are on deposit with a depository institution that are sufficient to pay in full, in cash, all of the Company obligations under the Loan Agreement on or before September 30, 2021;

 

On or before September 30, 2021, the Company will cause all of the amounts owing under the Loan Agreement to be paid in full in cash;

 

The Forbearance Reserve (as defined in Amendment No. 5 to the Loan Agreement) shall be increased from $1,025,000 to $2,525,000;

 

Effective August 1, 2021, accounts receivable from Wal-Mart Stores and its affiliates shall no longer be considered eligible receivables;

 

Modifications will be made to the budget, testing and variance provisions of the Loan Agreement.

 

In consideration for entering into the Loan Amendment, the Company agreed to pay the Lender a Forbearance Fee of $1,000,000. Provided, however, that, so long as no Event of Default under the Loan Agreement has occurred (including as a result of a failure of the Company to pay down the Revolving Loans by $1,500,000 with the proceeds of the Purchaser Promissory Note, (i) if the Company consummates the Equity Investment by June 30, 2021, the Forbearance Fee shall be reduced by $250,000, to $750,000, and (ii) if the Company causes all of the obligations under the Loan Agreement to be paid in full, in cash, on or before September 30, 2021, the Forbearance Fee shall be reduced by an additional $500,000, to $250,000.

 

Comparability

 

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 these international subsidiaries. These actions were 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 International 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 Company divested its CTI Balloons (United Kingdom) subsidiary in the fourth quarter 2019, its Ziploc product line in the first quarter 2020, and is divesting its CTI Europe (Germany) subsidiary in 2021.

 

 

Results of Operations

 

Net Sales. For the three month periods ended March 31, 2021 and 2020, net sales were $7,416,000 and $7,068,000, respectively.

 

For the three-month period ended March 31, 2021 and 2020, net sales by product category were as follows:

 

   

Three Months Ended

                 
   

March 31, 2021

   

March 31, 2020

                 
   

$

   

% of

   

$

   

% of

                 

Product Category

 

(000) Omitted

   

Net Sales

   

(000) Omitted

   

Net Sales

   

Variance

   

% change

 
                                                 

Foil Balloons

  $ 5,036       68 %   $ 4,492       64 %   $ 544       12.1 %
                                                 

Latex Balloons

    697       9 %     1,583       22 %     (886 )     -56.0 %
                                                 

Film Products

    445       6 %     215       3 %     230       107.1 %
                                                 

Other

  $ 1,237       17 %   $ 778       11 %   $ 459       59.0 %
                                                 

Total

   $ 7,416       100 %    $ 7,068       100 %    $ 348       4.9 %

 

 

Foil Balloons. Revenues from the sale of foil balloons increased during the three-month period from $4,492,000 ending March 31, 2020 compared to $5,036,000 during the three month period of 2021. 

 

Latex Balloons. Revenues from the sale of latex balloons decreased during the three-month period from $1,583,000 during the three period ended March 31, 2020, to $697,000 during the same period of 2021. Latex balloons encountered a COVID-19 constraint, as production activities were severely limited by the Mexican government.

 

Films. Revenues from the sale of commercial films were $445,000 during the three-month period ended March 31, 2021, compared to $215,000 during the same period of 2020.

 

 

Other Revenues. Revenues from the sale of other products were $1,237,000 during the three-month period ended March 31, 2021, compared to $778,000 during the same period of 2020. The revenues from the sale of other products during the first three months of 2021 and 2020 include (i) sales of a line of “Candy Blossoms” and similar products consisting of candy and small inflated balloons sold in small containers and (ii) the sale of accessories and supply items related to balloon products.

 

Sales to a limited number of customers continue to represent a large percentage of our net sales. The table below illustrates the impact on sales of our top three and ten customers for the three month periods ended March 31, 2021 and 2020.

 

   

Three Months Ended March 31,

 
   

% of Sales

 
   

2021

   

2020

 
                 

Top 3 Customers

    77

%

    56

%

                 

Top 10 Customers

    92

%

    69

%

 

 

During the three-month period ended March 31, 2021, there was one customer whose purchases represented more than 10% of the Company’s consolidated net sales. Sales to this customer for the three month period ended March 31, 2021 was $3,991,000 or 54% of consolidated net sales. Sales to this customer for the three months ended March 31, 2020 was $3,222,000, or 45% of consolidated net sales. As of March 31, 2021, the total amount owed to the Company by this customer was approximately $2,385,000, or 33% of the Company’s consolidated net accounts receivable. The amount owed at March 31, 2020 by this customer was approximately $2,097,000, or 29% of the Company’s consolidated net accounts receivable.

 

Cost of Sales. During the three month period ended March 31, 2021, the cost of sales was $6,323,000, compared to $5,586,000 for the same period of 2020 due to higher sales volume. 

 

General and Administrative. During the three month period ended March 31, 2021, general and administrative expenses were $1,120,000 as compared to $702,000 for the same period in 2020 due mainly to increase to PNC violation and legal matters with vendors.  

 

Selling, Advertising and Marketing. During the three month period ended March 31, 2021, selling, advertising and marketing expenses were $139,000 as compared to $175,000 for the same period in 2020.

 

Other Income (Expense). During the three month period ended March 31, 2021, the Company incurred interest expense of $231,000 as compared to interest expense of $441,000 during the same period of 2020.  Interest expense decreased due to the reduction of the Company's senior debt facility.  

 

For the three month period ended March 31, 2021, the Company had a foreign currency transaction loss of $26,000 as compared to a loss of $154,000 during the same period of 2020.

 

Financial Condition, Liquidity and Capital Resources

 

Cash Flow Items.

 

Operating Activities. During the three months ended March 31, 2021, net cash used in operations was $1,421,000, compared to net cash provided by operations during the three months ended March 31, 2020 of $842,000.

 

Significant changes in working capital items during the three months ended March 31, 2021 included:

 

 

An increase in accounts receivable of $1,860,000 compared to a decrease in accounts receivable of $797,000 in the same period of 2020.

 

An increase in inventory of $16,000 compared to a decrease in inventory of $242,000 in 2020.

 

An increase in trade payables of $752,000 compared to a decrease in trade payables of $158,000 in 2020.

  An increase in prepaid expenses and other assets of $212,000 compared to a decrease of $133,000 in 2020. 
 

An increase in accrued liabilities of $158,000 compared to an increase in accrued liabilities of $40,000 in 2020.

 

Investing Activity. During the three months ended March 31, 2021, cash used in investing activity was $46,000, compared to cash used in investing activity for the same period of 2020 in the amount of $19,000.

 

Financing Activities. During the three months ended March 31, 2021, cash provided by financing activities was $1,557,000 compared to cash used in financing activities for the same period of 2020 in the amount of $1,700,000. Financing activity consisted principally of changes in the balances of revolving and long-term debt.

 

Liquidity and Capital Resources.

 

At March 31, 2021, the Company had cash balances of $86,000 compared to cash balances of $160,000 for the same period of 2020.  These amounts do not include cash related to discontinued operations of $75,632 and $6,073 as of March 31, 2021 and 2020.

 

 

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 has impacted the Company’s business operations to some extent and is expected to continue to do so and, in light of the effect of such pandemic on financial markets, these impacts may include reduced access to capital. The ability of the Company to continue as a going concern is 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 with PNC (see Note 4). As of March 2019, October 2019 and January 2020, we entered into forbearance agreements with PNC. We encountered subsequent compliance failures with covenants during 2020 and we were out of compliance with the terms of our credit facility, as amended, as of March 31, 2021. 

 

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, consisting of $2,000,000 in cash and a promissory note with a principal amount of $1,500,000, due and payable on May 3, 2021 (the “Purchaser Promissory Note”). Concurrently with the closing under the PSA, the Company and the Purchaser entered into a lease agreement pursuant to which the Company agreed to lease the Lake Barrington Facility from the Purchaser for a period of ten years. The annual base rent commences at $500,000 for the first year of the term and escalates annually to $652,386 during the last year of the term of the lease. Concurrently with the entry into the PSA and the Lease, the Company entered into a Consent, Forbearance and Amendment No. 6 to Revolving Credit, Term Loan and Security Agreement (the “Amendment Agreement”) with PNC for itself and for the other participant lenders thereunder (collectively, the “Lender”). Prior to entering into the Amendment Agreement, PNC had notified the Company that various events of default had occurred under the Loan Agreement (the “Existing Defaults”) and were continuing. Pursuant to the Amendment Agreement, the Lender consented to the transactions contemplated by the PSA and the Lease, as required under the Loan Agreement.  As a condition to the Amendment Agreement, the Company agreed that the full $2,000,000 in cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the $2,000,000 term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that $1,500,000 in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under revolving credit advances made pursuant to the Loan Agreement (the “Revolving Loans”). Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to the Existing Event of Defaults under the Loan Agreement for a period ending on the earlier of September 30, 2021, the occurrence of a new event of default under the Loan Agreement, or the occurrence of a Termination Event (as defined therein). Additionally, certain additions and amendments to the Loan Agreement were set forth in the Amendment Agreement, including:

 

 

The Maximum Revolving Advance Amount is reduced from $18,000,0000 to $9,000,000;

 

The Termination Date of the Loan Agreement is revised from December 14, 2022 to December 31, 2021;

 

On or before June 30, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall receive an equity investment of at least $1,500,000 and apply 100% of the proceeds to a reduction of the Revolving Credit Advance under the Loan Agreement (the “Equity Investment”);

 

On or before August 15, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall deliver to Lender (i) a binding term sheet, in form and substance acceptable to Lender, from a financing source that provides for the refinance and payment in full, in cash, of the obligations owing under the Loan Agreement on or before September 30, 2021, or (ii) evidence, in form and substance satisfactory to the Lender, that certain equity holders of the Company have available and identifiable funds that are on deposit with a depository institution that are sufficient to pay in full, in cash, all of the Company obligations under the Loan Agreement on or before September 30, 2021;

 

On or before September 30, 2021, the Company will cause all of the amounts owing under the Loan Agreement to be paid in full in cash;

 

The Forbearance Reserve (as defined in Amendment No. 5 to the Loan Agreement) shall be increased from $1,025,000 to $2,525,000;

 

Effective August 1, 2021, accounts receivable from Wal-Mart Stores and its affiliates shall no longer be considered eligible receivables;

 

Modifications will be made to the budget, testing and variance provisions of the Loan Agreement.

 

In consideration for entering into the Loan Amendment, the Company agreed to pay the Lender a Forbearance Fee of $1,000,000. Provided, however, that, so long as no Event of Default under the Loan Agreement has occurred (including as a result of a failure of the Company to pay down the Revolving Loans by $1,500,000 with the proceeds of the Purchaser Promissory Note, (i) if the Company consummates the Equity Investment by June 30, 2021, the Forbearance Fee shall be reduced by $250,000, to $750,000, and (ii) if the Company causes all of the obligations under the Loan Agreement to be paid in full, in cash, on or before September 30, 2021, the Forbearance Fee shall be reduced by an additional $500,000, to $250,000.

 

 

Seasonality

 

In the foil balloon product line, sales have historically been seasonal with approximately 40% occurring in the period from December through March of the succeeding year and 24% being generated in the period July through October in recent years.

 

Please see pages 11-13 of our Annual Report on Form 10-K for the year ended December 31, 2020 for a description of policies that are critical to our business operations and the understanding of our results of operations. The impact and any associated risks related to these policies on our business operations is discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations where such policies affect our reported and expected financial results. No material changes to such information have occurred during the three months ended March 31, 2021.

 

Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

(a)   Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified by the Commission's rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are properly recorded, processed, summarized and reported within the time periods required by the Commission's rules and forms.

 

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), of the effectiveness of the design and operation of these disclosure controls and procedures, as such term is defined in Exchange Act Rule 13a-15(e), as of March 31, 2021. Based on this evaluation, the Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) concluded that our disclosure controls and procedures were not effective as of March 31, 2021, the end of the period covered by this Quarterly Report on Form 10-Q due to the material weaknesses described below.

 

 

(b)   Management's Report on Internal Control over Financial Reporting

 

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

 

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness of internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Management has assessed the effectiveness of our internal control over financial reporting as of March 31, 2021. In making our assessment of the effectiveness of internal control over financial reporting, management used the criteria set forth in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").

 

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the registrant's annual or interim financial statements will not be prevented or detected on a timely basis. As a result of our evaluation of our internal control over financial reporting, management identified the following material weaknesses in our internal control over financial reporting:

 

 

We lacked a sufficient number of accounting professionals with the necessary knowledge, experience and training to adequately account for significant, unusual transactions that resulted in misapplications of GAAP, particularly with regard to the timing of recognition of certain non-cash charges, and

 

 

We are overly dependent upon our Chief Financial Officer within an environment that is highly manual in nature.

 

As a result of the material weaknesses, we have concluded that we did not maintain effective internal control over financial reporting as of March 31, 2021.

 

 

Part II. OTHER INFORMATION

 

Item 1. 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.

 

In July, 2017, God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (“Claimants”) filed an action against the Company based on disputed compensation amounts over several years. This action was resolved by mutual agreement between the parties during January 2019. Mr. Page received 20,000 shares of CTI common stock, $5,000 in cash, and a minimum payout in his monthly royalty calculation of $7,667 beginning March 1, 2019 and ending August 1, 2021. The balance remaining as of March 31, 2021 and December 31, 2020 amounted to $38,325 and $53,659, respectively.

 

FedEx Trade Networks Transport and Brokerage Inc. v. CTI Industries Corp., Case No. 20 L 46, was filed on January 27, 2020 in the Circuit Court of the 19th Judicial Circuit, Lake County, Illinois.  The complaint for breach of contract sought $163,964.75 in damages, plus interest and court costs. On October 15, 2020, the case was dismissed with leave to reinstate pursuant to settlement. The settlement calls for the payment of $100,400.00 in monthly installments of $10,000 per month for a period of ten (10) months and with the last payment being in the amount of $10,400. The first payment came due and was made on October 30, 2020, and payments have been made monthly. The balance remaining as of March 31, 2021 and December 31, 2020 amounted to $40,400 and $70,400, respectively.

 

Airgas USA, LLC v. CTI Industries Corp., Case No. 01-20-0014-7852 was filed with the American Arbitration Association on or about September 8, 2020. The claim seeks $212,000, plus interest, attorneys’ fees and costs for breach of contract. Claimant agreed to give CTI an extension to respond to the claim so the parties could attempt to resolve. On February 10, 2021, Airgas accepted CTI’s offer to pay $125,000 over 10 months. Airgas agreed to the settlement in March of 2021. The liability recorded by the Company as of March 31, 2021 and December 31, 2020 amounted to $125,000, respectively.

 

On October 19, 2020, Jules and Associates, Inc. sent CTI a demand letter related to the lease of certain equipment. The letter demanded $65,846.99 for alleged past due amounts under the lease as well as a return of the equipment. Discussions regarding the return of the equipment are ongoing and no lawsuit has been filed. On April 5, 2020 Jules & Associates, Inc. filed and served on CTI a demand for arbitration with JAMS related to the lease of certain equipment.  The demand requests $98,244.55 for alleged past due amounts under the lease as well as a return of the equipment or its fair market value. The Company accrued the $0.1 million in committed costs under this settlement in its March 31, 2021 financial statements. The liability recorded by the Company as of March 31, 2021 and December 31, 2020 amounted to $91,298 and $75,187, respectively.

 

On October 19, 2020, Redwood Multimodal sent CTI a demand for the withholding of payment in the amount $98,960.88 for loads brokered by Redwood. Settlement discussions are ongoing and no lawsuit has been filed. The Company accrued the $0.1 million in committed costs under this settlement in its March 31, 2021 financial statements. The liability recorded by the Company as of March 31, 2021 and December 31, 2020 amounted to $98,961.

 

Benchmark Investments, Inc. v. Yunhong CTI Ltd filed a case in the United States District Court for the Southern District of New York on March 16, 2021 and served on CTI on March 31, 2021.  CTI has through June 4, 2021 to file its response to the complaint.  The complaint seeks damages in excess of $500,000.

 

Item 1A. Risk Factors

 

Not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Not applicable.

 

Item 3. Defaults Upon Senior Securities

 

On December 14, 2017, the Company entered into a Revolving Credit, Term Loan and Security Agreement (the “Loan Agreement”) with PNC Bank, National Association and the other participant lenders thereunder (collectively, “Lender”).

 

Prior to January 13, 2020, certain events of default under the Loan Agreement had occurred (the "Prior Defaults"). On January 13, 2020, a Limited Waiver, Consent, Amendment No. 5 and Forbearance Agreement (the “Forbearance Agreement”) between Lender and the Company became effective, pursuant to which Lender agreed to, among other things, forebear from exercising the rights and remedies in respect of the Prior Defaults afforded to Lender under the Loan Agreement for a period ending no later than December 31, 2020 (the “Forbearance Period”).

 

On June 15, 2020, the Lender provided the Company notice (the “Default Notice”) that (i) an additional Event of Default (as defined in the Loan Agreement) had occurred and is continuing as a result of the Company's failure to maintain a Fixed Charge Coverage Ratio (as defined in the Loan Agreement) of 0.75 to 1.00 for the three-month period ended March 31, 2020 (the "March FCCR Default"), (ii) as a result of the occurrence and continuance of the March FCCR Default, the Forbearance Period has ended, and (iii) as a result of the termination of the Forbearance Period, the Lender is entitled to exercise immediately all of its rights and remedies under the Loan Agreement including, without limitation, ceasing to make further advances to the Company and declaring all obligations to be immediately due and payable in accordance with the Loan Agreement.

 

 

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, consisting of $2,000,000 in cash and a promissory note with a principal amount of $1,500,000, due and payable on May 3, 2021 (the “Purchaser Promissory Note”). Concurrently with the closing under the PSA, the Company and the Purchaser entered into a lease agreement pursuant to which the Company agreed to lease the Lake Barrington Facility from the Purchaser for a period of ten years. The annual base rent commences at $500,000 for the first year of the term and escalates annually to $652,386 during the last year of the term of the lease. Concurrently with the entry into the PSA and the Lease, the Company entered into a Consent, Forbearance and Amendment No. 6 to Revolving Credit, Term Loan and Security Agreement (the “Amendment Agreement”) with PNC for itself and for the other participant lenders thereunder (collectively, the “Lender”). Prior to entering into the Amendment Agreement, PNC had notified the Company that various events of default had occurred under the Loan Agreement (the “Existing Defaults”) and were continuing. Pursuant to the Amendment Agreement, the Lender consented to the transactions contemplated by the PSA and the Lease, as required under the Loan Agreement.  As a condition to the Amendment Agreement, the Company agreed that the full $2,000,000 in cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the $2,000,000 term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that $1,500,000 in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under revolving credit advances made pursuant to the Loan Agreement (the “Revolving Loans”). Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to the Existing Event of Defaults under the Loan Agreement for a period ending on the earlier of September 30, 2021, the occurrence of a new event of default under the Loan Agreement, or the occurrence of a Termination Event (as defined therein). Additionally, certain additions and amendments to the Loan Agreement were set forth in the Amendment Agreement, including:

 

 

The Maximum Revolving Advance Amount is reduced from $18,000,0000 to $9,000,000;

 

The Termination Date of the Loan Agreement is revised from December 14, 2022 to December 31, 2021;

 

On or before June 30, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall receive an equity investment of at least $1,500,000 and apply 100% of the proceeds to a reduction of the Revolving Credit Advance under the Loan Agreement (the “Equity Investment”);

 

On or before August 15, 2021, or such later date as the Lender agrees in its sole discretion, the Company shall deliver to Lender (i) a binding term sheet, in form and substance acceptable to Lender, from a financing source that provides for the refinance and payment in full, in cash, of the obligations owing under the Loan Agreement on or before September 30, 2021, or (ii) evidence, in form and substance satisfactory to the Lender, that certain equity holders of the Company have available and identifiable funds that are on deposit with a depository institution that are sufficient to pay in full, in cash, all of the Company obligations under the Loan Agreement on or before September 30, 2021;

 

On or before September 30, 2021, the Company will cause all of the amounts owing under the Loan Agreement to be paid in full in cash;

 

The Forbearance Reserve (as defined in Amendment No. 5 to the Loan Agreement) shall be increased from $1,025,000 to $2,525,000;

 

Effective August 1, 2021, accounts receivable from Wal-Mart Stores and its affiliates shall no longer be considered eligible receivables;

 

Modifications will be made to the budget, testing and variance provisions of the Loan Agreement.

 

In consideration for entering into the Loan Amendment, the Company agreed to pay the Lender a Forbearance Fee of $1,000,000. Provided, however, that, so long as no Event of Default under the Loan Agreement has occurred (including as a result of a failure of the Company to pay down the Revolving Loans by $1,500,000 with the proceeds of the Purchaser Promissory Note, (i) if the Company consummates the Equity Investment by June 30, 2021, the Forbearance Fee shall be reduced by $250,000, to $750,000, and (ii) if the Company causes all of the obligations under the Loan Agreement to be paid in full, in cash, on or before September 30, 2021, the Forbearance Fee shall be reduced by an additional $500,000, to $250,000.

 

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

 

 

Item 6. Exhibits

 

The following are being filed as exhibits to this report:

 

Exhibit

Number

Description

   

31.1*

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended (filed herewith).

31.2*

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended (filed herewith).

32**

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

101*

Interactive Data Files, including the following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to Consolidated Financial Statements.

 

*

Filed herewith

**

furnished herewith

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date: May 24, 2021    Yunhong CTI Ltd.
   
   
 

By: /s/ Jennifer M. Connerty

Jennifer M. Connerty

Chief Financial Officer

 

 

 

By: /s/ Yubao Li

Yubao Li

President and Chief Executive Officer

 

29
EX-31.1 2 ex_248051.htm EXHIBIT 31.1 ex_248051.htm

 

EXHIBIT 31.1

CERTIFICATIONS

 

I, Yubao Li, certify that:

 

1.     I have reviewed this quarterly report on Form 10-Q of Yunhong CTI Ltd. (the “Company”).

 

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the condensed consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.     The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: May 24, 2021

 

/s/ Yubao Li

 
 

Yubao Li

 
 

President and Chief Executive Officer

 

 

 

 
EX-31.2 3 ex_248052.htm EXHIBIT 31.2 ex_248052.htm

 

EXHIBIT 31.2

CERTIFICATIONS

 

I, Jennifer M. Connerty, certify that:

 

1.     I have reviewed this quarterly report on Form 10-Q of Yunhong CTI Ltd. (the “Company”).

 

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the condensed consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.     The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: May 24, 2021

 

     
 

By:

/s/ Jennifer M. Connerty

 
   

Jennifer M. Connerty

 
   

Chief Financial Officer

 

 

 

 
EX-32 4 ex_248053.htm EXHIBIT 32 ex_248053.htm

 

Exhibit 32

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Yunhong CTI Ltd. (the “Company”) for the quarterly period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Yubao Li, President and Chief Executive Officer of the Company, and Jennifer M. Connerty, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: May 24, 2021

 

 

/s/ Jennifer M. Connerty                      

Jennifer M. Connerty

Chief Financial Officer

 

 

/s/ Yubao Li                                       

Yubao Li

President and Chief Executive Officer

 

 

 
EX-101.INS 5 ctib-20210331.xml XBRL INSTANCE DOCUMENT 52741 -52741 100000 -100000 -33611 -33611 28333 -28333 25233487 25466213 -46932 -46932 1500000 1500000 1500000 1500000 1500000 2300000 -25684 877685 449272 -2328473 2328473 -39722 597500 195160 195160 792660 -14000000 1 1025000 2525000 1500000 1000000 750000 250000 -250000 -500000 2328473 -2328473 -1500000 -1500000 1708876 2380944 124197 294003 250664 168120 32543 161954 35897 93514 129411 -3271 -2796 -9963 -13220 250664 0.75 0.85 0.95 1.05 1.15 518450 518450 -152053 -235368 783179 783179 753000 500000 652386 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">3</div> </div>&#x2013;<div style="display: inline; font-weight: bold;"> Liquidity and Going Concern</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company's financial statements are prepared using accounting principles generally accepted in the United States (&#x201c;U.S. GAAP&#x201d;) 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 <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>of over <div style="display: inline; font-style: italic; font: inherit;">$14</div> million. The accompanying financial statements for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>have been prepared assuming the Company will continue as a going concern. The Company's cash resources from operations <div style="display: inline; font-style: italic; font: inherit;"> may </div>be insufficient to meet its anticipated needs during the next <div style="display: inline; font-style: italic; font: inherit;">twelve</div> months. The Company will require additional financing to fund its future planned operations.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic has impacted the Company's business operations to some extent and is expected to continue to do so and, in light of the effect of such pandemic on financial markets, these impacts <div style="display: inline; font-style: italic; font: inherit;"> may </div>include reduced access to capital. The ability of the Company to continue as a going concern is 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 <div style="display: inline; font-style: italic; font: inherit;">one</div> year from the issuance of the accompanying consolidated financial statements. The accompanying consolidated financial statements do <div style="display: inline; font-style: italic; font: inherit;">not</div> include any adjustments that might be necessary if the Company is unable to continue as a going concern.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company's primary sources of liquidity have traditionally been comprised of cash and cash equivalents as well as availability under the Credit Agreement with PNC (see Note <div style="display: inline; font-style: italic; font: inherit;">4</div>). As of <div style="display: inline; font-style: italic; font: inherit;"> March 2019, </div><div style="display: inline; font-style: italic; font: inherit;"> October 2019 </div>and <div style="display: inline; font-style: italic; font: inherit;"> January 2020, </div>we entered into forbearance agreements with PNC. We encountered subsequent compliance failures with covenants during <div style="display: inline; font-style: italic; font: inherit;">2020</div> and we were out of compliance with the terms of our credit facility, as amended, as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.&nbsp;</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">On <div style="display: inline; font-style: italic; font: inherit;"> April 23, 2021, </div>the Company entered into a Purchase and Sale Agreement (&#x201c;PSA&#x201d;) with an unaffiliated purchaser (the &#x201c;Purchaser&#x201d;) pursuant to which the Company sold its facility in Lake Barrington, Illinois (the &#x201c;Lake Barrington Facility&#x201d;), in which our headquarters office, production and warehouse space are located, to the Purchaser. The sale price for the Lake Barrington Facility was <div style="display: inline; font-style: italic; font: inherit;">$3,500,000,</div> consisting of <div style="display: inline; font-style: italic; font: inherit;">$2,000,000</div> in cash and a promissory note with a principal amount of <div style="display: inline; font-style: italic; font: inherit;">$1,500,000,</div> due and payable on <div style="display: inline; font-style: italic; font: inherit;"> May 3, 2021 (</div>the &#x201c;Purchaser Promissory Note&#x201d;). Concurrently with the closing under the PSA, the Company and the Purchaser entered into a lease agreement pursuant to which the Company agreed to lease the Lake Barrington Facility from the Purchaser for a period of <div style="display: inline; font-style: italic; font: inherit;">ten</div> years. The annual base rent commences at <div style="display: inline; font-style: italic; font: inherit;">$500,000</div> for the <div style="display: inline; font-style: italic; font: inherit;">first</div> year of the term and escalates annually to <div style="display: inline; font-style: italic; font: inherit;">$652,386</div> during the last year of the term of the lease. As the decision to sell the Lake Barrington Facility was made in <div style="display: inline; font-style: italic; font: inherit;"> April 2021, </div>the facility is <div style="display: inline; font-style: italic; font: inherit;">not</div> classified as held for sale as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.&nbsp; </div>Concurrently with the entry into the PSA and the Lease, the Company entered into a Consent, Forbearance and Amendment <div style="display: inline; font-style: italic; font: inherit;">No.</div> <div style="display: inline; font-style: italic; font: inherit;">6</div> to Revolving Credit, Term Loan and Security Agreement (the &#x201c;Amendment Agreement&#x201d;) with PNC for itself and for the other participant lenders thereunder (collectively, the &#x201c;Lender&#x201d;). Prior to entering into the Amendment Agreement, PNC had notified the Company that various events of default had occurred under the Loan Agreement (the &#x201c;Existing Defaults&#x201d;) and were continuing. Pursuant to the Amendment Agreement, the Lender consented to the transactions contemplated by the PSA and the Lease, as required under the Loan Agreement.&nbsp; As a condition to the Amendment Agreement, the Company agreed that the full <div style="display: inline; font-style: italic; font: inherit;">$2,000,000</div> in cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the <div style="display: inline; font-style: italic; font: inherit;">$2,000,000</div> term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that <div style="display: inline; font-style: italic; font: inherit;">$1,500,000</div> in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under revolving credit advances made pursuant to the Loan Agreement (the &#x201c;Revolving Loans&#x201d;). Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to the Existing Event of Defaults under the Loan Agreement for a period ending on the earlier of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2021, </div>the occurrence of a new event of default under the Loan Agreement, or the occurrence of a Termination Event (as defined therein). Additionally, certain additions and amendments to the Loan Agreement were set forth in the Amendment Agreement, including:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">The Maximum Revolving Advance Amount is reduced from <div style="display: inline; font-style: italic; font: inherit;">$18,000,000</div>&nbsp;to <div style="display: inline; font-style: italic; font: inherit;">$9,000,000;</div></div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">The Termination Date of the Loan Agreement is revised from <div style="display: inline; font-style: italic; font: inherit;"> December 14, 2022 </div>to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2021;</div></div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">On or before <div style="display: inline; font-style: italic; font: inherit;"> June 30, 2021, </div>or such later date as the Lender agrees in its sole discretion, the Company shall receive an equity investment of at least <div style="display: inline; font-style: italic; font: inherit;">$1,500,000</div> and apply <div style="display: inline; font-style: italic; font: inherit;">100%</div> of the proceeds to a reduction of the Revolving Credit Advance under the Loan Agreement (the &#x201c;Equity Investment&#x201d;);</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">On or before <div style="display: inline; font-style: italic; font: inherit;"> August 15, 2021, </div>or such later date as the Lender agrees in its sole discretion, the Company shall deliver to Lender (i) a binding term sheet, in form and substance acceptable to Lender, from a financing source that provides for the refinance and payment in full, in cash, of the obligations owing under the Loan Agreement on or before <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2021, </div>or (ii) evidence, in form and substance satisfactory to the Lender, that certain equity holders of the Company have available and identifiable funds that are on deposit with a depository institution that are sufficient to pay in full, in cash, all of the Company obligations under the Loan Agreement on or before <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2021;</div></div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">On or before <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2021, </div>the Company will cause all of the amounts owing under the Loan Agreement to be paid in full in cash;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">The Forbearance Reserve (as defined in Amendment <div style="display: inline; font-style: italic; font: inherit;">No.</div> <div style="display: inline; font-style: italic; font: inherit;">5</div> to the Loan Agreement) shall be increased from <div style="display: inline; font-style: italic; font: inherit;">$1,025,000</div> to <div style="display: inline; font-style: italic; font: inherit;">$2,525,000;</div></div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">Effective <div style="display: inline; font-style: italic; font: inherit;"> August 1, 2021, </div>accounts receivable from Wal-Mart Stores and its affiliates shall <div style="display: inline; font-style: italic; font: inherit;">no</div> longer be considered eligible receivables;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:2%;">&nbsp;</td> <td style="vertical-align:top;width:2%;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td style="vertical-align:top;width:0%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">Modifications will be made to the budget, testing and variance provisions of the Loan Agreement.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In consideration for entering into the Loan Amendment, the Company agrees to pay the Lender a Forbearance Fee of <div style="display: inline; font-style: italic; font: inherit;">$1,000,000.</div> Provided, however, that, so long as <div style="display: inline; font-style: italic; font: inherit;">no</div> event of default under the Loan Agreement has occurred (including as a result of a failure of the Company to pay down the Revolving Loans by <div style="display: inline; font-style: italic; font: inherit;">$1,500,000</div> with the proceeds of the Purchaser Promissory Note, (i) if the Company consummates the Equity Investment by <div style="display: inline; font-style: italic; font: inherit;"> June 30, 2021, </div>the Forbearance Fee shall be reduced by <div style="display: inline; font-style: italic; font: inherit;">$250,000,</div> to <div style="display: inline; font-style: italic; font: inherit;">$750,000,</div> and (ii) if the Company causes all of the obligations under the Loan Agreement to be paid in full, in cash, on or before <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2021, </div>the Forbearance Fee shall be reduced by an additional <div style="display: inline; font-style: italic; font: inherit;">$500,000,</div> to <div style="display: inline; font-style: italic; font: inherit;">$250,000.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div></div> 10400 10000 P300D P300D 1277000 1 1 0 632660 2161061 2231458 38000 34000 1 1 7667 200000 500000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0pt" cellspacing="0pt" style="font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; margin-left: 36pt; margin-right: auto; min-; min-width: 700px;"> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <td style="width: 69%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Fiscal Quarter Ratio</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;">&nbsp;</td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">March 31, 2020&nbsp;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">0.75</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">June 30, 2020</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">0.85</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">September 30, 2020</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">0.95</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">December 31, 2020</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">1.05</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">March 31, 2021 and thereafter</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">1.15</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> </table></div> 200000 391308 103104 103104 103104 -306000 306000 -820160 -820160 -752924 752927 false --12-31 Q1 2021 2021-03-31 10-Q 0001042187 5886750 Yes false Non-accelerated Filer Yes Yunhong CTI LTD. false true Common Stock, no par value per share ctib 6118676 5504442 0 2385000 2097000 7241714 5013195 1124974 871761 -5901379 -5885112 4832635 5041511 0 0 23547208 21550971 15836000 12459000 7506000 8798000 20826367 19151224 204651 294219 205000 294000 204651 294219 165663 375458 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Principles of consolidation and nature of operations:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Yunhong CTI Ltd, its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the &#x201c;Company&#x201d;) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note <div style="display: inline; font-style: italic; font: inherit;">2</div> Discontinued Operations, effective in the <div style="display: inline; font-style: italic; font: inherit;">third</div> quarter of <div style="display: inline; font-style: italic; font: inherit;">2019,</div> the Company determined that it was exiting the business formerly conducted by CTI Europe GmbH (&#x201c;CTI Europe&#x201d;). Accordingly, the operations of this entity are classified as discontinued operations in these financial statements.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd., and CTI Supply, Inc. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">The determination of whether or <div style="display: inline; font-style: italic; font: inherit;">not</div> 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 &#x201c;closely associated&#x201d; 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.</div></div></div></div></div> 3321016 3321016 85605 429457 624953 845098 161237 160105 -463716 -684993 1 792660 0 0 50000000 50000000 5930408 5827304 5886750 5783646 14537828 14537828 -396616 -1857622 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">7</div> - Other Comprehensive Income</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> the Company incurred other comprehensive income (loss) of approximately <div style="display: inline; font-style: italic; font: inherit;">$32,000</div> and (<div style="display: inline; font-style: italic; font: inherit;">$1,364,000</div>), respectively, from foreign currency translation adjustments.&nbsp; The main contributing factor for the large other comprehensive loss in the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020 </div>was the sudden <div style="display: inline; font-style: italic; font: inherit;">25%</div> decline in the valuation of the Mexican peso related to the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic and the resulting large-scale, rapid impacts to the world economy.&nbsp; The Mexican peso has since generally stabilized which has afforded the Company a small income&nbsp;for <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.&nbsp;&nbsp;</div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">10</div> - Concentration of Credit Risk</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> there was <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">one</div></div> customer whose purchases represented more than <div style="display: inline; font-style: italic; font: inherit;">10%</div> of the Company's consolidated net sales. Sales to this customer for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020</div> are as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2021</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2020</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 48%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Customer</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Net Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">% of Net </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Net Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">% of Net </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Customer A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,991,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">54</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">%</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,222,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">46</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">%</div> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021, </div>the total amounts owed to the Company by this customer were approximately <div style="display: inline; font-style: italic; font: inherit;">$2,385,000</div> or <div style="display: inline; font-style: italic; font: inherit;">33%</div> of the Company's consolidated net accounts receivable. The amounts owed at <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020 </div>by this customer was approximately <div style="display: inline; font-style: italic; font: inherit;">$2,097,000</div> or <div style="display: inline; font-style: italic; font: inherit;">29%</div> of the Company's consolidated net accounts receivable.</div></div> 0.33 0.29 0.54 0.46 71206 71206 10 6322975 5586059 181000 48200 600000 478000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">4</div> - Debt</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">During <div style="display: inline; font-style: italic; font: inherit;"> December 2017, </div>we terminated a prior credit arrangement and entered in new financing agreements (as amended to date, the &#x201c;PNC Agreements&#x201d;) with PNC Bank, National Association (&#x201c;PNC&#x201d;). The PNC Agreements, included a <div style="display: inline; font-style: italic; font: inherit;">$6</div> million term loan and a&nbsp;<div style="display: inline; font-style: italic; font: inherit;">$9</div> million revolving credit facility, with a termination date of <div style="display: inline; font-style: italic; font: inherit;"> December 2021.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Available credit under the Revolving Credit facility is determined by eligible receivables and inventory at CTI Industries (U.S.) and Flexo Universal (Mexico).</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Certain terms of the PNC Agreements include:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-style: italic;">Negative Covenants</div>: Negative covenants under which we are prohibited from, or restricted in our ability to:</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Borrow money;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Pay dividends and make distributions;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Make certain investments;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Use assets as security in other transactions;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Create liens;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Enter into affiliate transactions;</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Merge or consolidate; or</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Transfer and sell assets.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&#x25cf;</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-style: italic;">Financial Covenants</div>: Financial covenants we are required to meet including:</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">o</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">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:</div> </td> </tr> </table> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">&nbsp;</div> <div> <table cellpadding="0pt" cellspacing="0pt" style="font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; margin-left: 36pt; margin-right: auto; min-width: 700px;"> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <td style="width: 69%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Fiscal Quarter Ratio</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 3%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;">&nbsp;</td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">March 31, 2020&nbsp;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">0.75</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">June 30, 2020</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">0.85</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">September 30, 2020</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">0.95</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">December 31, 2020</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">1.05</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> <tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 69%;">March 31, 2021 and thereafter</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 12%;"><div style="display: inline; font-style: italic; font: inherit;">1.15</div></td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font: inherit;">to</div></td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 16%;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> </tr> </table> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The PNC Agreements provides for interest at varying rates in excess of the prime rate, depending on the level of senior debt to EBITDA over time.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Failure to comply with these covenants has caused us to pay a higher rate of interest (increased by <div style="display: inline; font-style: italic; font: inherit;">4%</div> pursuant to the PNC Agreements), and other potential penalties <div style="display: inline; font-style: italic; font: inherit;"> may </div>impact the availability of the credit facility itself, and thus might negatively impact our ability to remain a going concern. As described above in this Note as well as in Note <div style="display: inline; font-style: italic; font: inherit;">3,</div> we remain out of compliance with the terms of this facility.</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> January 1, 2019, </div>the Company had a note payable to John H. Schwan, Director and former Chairman of the Board, for <div style="display: inline; font-style: italic; font: inherit;">$1.6</div> million, including accrued interest. This loan accrues interest at <div style="display: inline; font-style: italic; font: inherit;">6%,</div> is due on demand, and is subordinate to the PNC Agreements. During <div style="display: inline; font-style: italic; font: inherit;"> January 2019, </div>Mr. Schwan converted <div style="display: inline; font-style: italic; font: inherit;">$600,000</div> of the note into approximately <div style="display: inline; font-style: italic; font: inherit;">181,000</div> shares of our common stock at the then market rate of <div style="display: inline; font-style: italic; font: inherit;">$3.32</div> per share. As a result of the conversion, the loan balance decreased&nbsp;to <div style="display: inline; font-style: italic; font: inherit;">$997,019</div> and Company and Mr. Schwan agreed to increase the interest rate to <div style="display: inline; font-style: italic; font: inherit;">6%.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">The loan and interest payable to Mr. Schwan amounted to <div style="display: inline; font-style: italic; font: inherit;">$1,140,709</div> and <div style="display: inline; font-style: italic; font: inherit;">$1,123,769</div> as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">No</div> payments were made to Mr. Schwan since <div style="display: inline; font-style: italic; font: inherit;">2019.</div> Interest expense related to this loan amounted to <div style="display: inline; font-style: italic; font: inherit;">$17,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$15,000</div> for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months end <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">During <div style="display: inline; font-style: italic; font: inherit;">2020,</div> Flexo replaced a <div style="display: inline; font-style: italic; font: inherit;">$260,000</div> line of credit with <div style="display: inline; font-style: italic; font: inherit;">three</div> lines of credit&nbsp;totaling <div style="display: inline; font-style: italic; font: inherit;">$260,000.</div>&nbsp; Flexo's total debt instruments as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;">$1.8</div> million.&nbsp;&nbsp;</div></div> 0 9000 6000000 0.04 0.06 0.06 19724173 18831320 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">12</div></div> <div style="display: inline; font-weight: bold;">-</div> <div style="display: inline; font-weight: bold;">Derivative Instruments; Fair Value</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;"> may </div>enter into interest rate swaps to fix the interest rate on a portion of our variable interest rate debt to reduce the potential volatility in our interest expense that would otherwise result from changes in market interest rates. Our derivative instruments are recorded at fair value and are included in accrued liabilities of our consolidated balance sheet. Our accounting policies for these instruments are based on whether they meet our criteria for designation as hedging transactions, which include the instrument's effectiveness, risk reduction and, in most cases, a <div style="display: inline; font-style: italic; font: inherit;">one</div>-to-<div style="display: inline; font-style: italic; font: inherit;">one</div> matching of the derivative instrument to our underlying transaction. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021, </div>we had <div style="display: inline; font-style: italic; font: inherit;">no</div> such instrument.</div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">5</div> - Shareholders' Equity&nbsp;</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; text-decoration: underline;">Series A Preferred Stock</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">On <div style="display: inline; font-style: italic; font: inherit;"> January 3, 2020, </div>the Company entered into a stock purchase agreement (as amended on <div style="display: inline; font-style: italic; font: inherit;"> February 24, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;"> April 13, 2020 (</div>the &#x201c;LF Purchase Agreement&#x201d;)), pursuant to which the Company agreed to issue and sell, and LF International Pte. Ltd., a Singapore private limited company (&#x201c;LF International&#x201d;), which is controlled by Company director, President and Chief Executive Officer, Mr. Yubao Li, agreed to purchase, up to <div style="display: inline; font-style: italic; font: inherit;">500,000</div> shares of the Company's newly created shares of Series A Preferred Stock (&#x201c;Series A Preferred&#x201d;), with each share of Series A Preferred initially convertible into <div style="display: inline; font-style: italic; font: inherit;">ten</div> shares of the Company's common stock, at a purchase price of <div style="display: inline; font-style: italic; font: inherit;">$10.00</div> per share, for aggregate gross proceeds of <div style="display: inline; font-style: italic; font: inherit;">$5,000,000</div> (the &#x201c;LF International Offering&#x201d;). As permitted by the Purchase Agreement, the Company <div style="display: inline; font-style: italic; font: inherit;"> may, </div>in its discretion issue up to an additional <div style="display: inline; font-style: italic; font: inherit;">200,000</div> shares of Series A Preferred for a purchase price of <div style="display: inline; font-style: italic; font: inherit;">$10.00</div> per share (the &#x201c;Additional Shares Offering,&#x201d; and collectively with the LF International Offering, the &#x201c;Offering&#x201d;). Approximately <div style="display: inline; font-style: italic; font: inherit;">$1</div> million of Series A Preferred has been sold as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021, </div>including to an investor which converted an account receivable of <div style="display: inline; font-style: italic; font: inherit;">$478,000</div> owed to the investor by the Company in exchange for <div style="display: inline; font-style: italic; font: inherit;">48,200</div> shares of Series A Preferred. The Company completed several closings with LF International from <div style="display: inline; font-style: italic; font: inherit;"> January 2020 </div>through <div style="display: inline; font-style: italic; font: inherit;"> June 2020. </div>The majority of the funds received reduced our bank debt. We issued a total of <div style="display: inline; font-style: italic; font: inherit;">400,000</div> shares of common stock to LF International and, pursuant to the LF Purchase Agreement, changed our name from CTI Industries Corporation to Yunhong CTI Ltd. LF International has the right to name <div style="display: inline; font-style: italic; font: inherit;">three</div> directors to serve on our Board. They are Mr. Yubao Li, our Chairman, Ms. Wan Zhang and Ms. Yaping Zhang. &nbsp;&nbsp;&nbsp;&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;">$2.5</div> million as of the closing dates.&nbsp; We recognized this BCF by allocating the intrinsic value of the conversion option, to additional paid-in capital, resulting in a discount on the Series A Preferred. As the Series A Preferred is immediately convertible, the Company accreted the discount on the date of issuance.&nbsp; The accretion was recognized as dividend equivalents.&nbsp; Holders of the Series A Preferred will be entitled to receive quarterly dividends at the annual rate of <div style="display: inline; font-style: italic; font: inherit;">8%</div> of the stated value (<div style="display: inline; font-style: italic; font: inherit;">$10</div> per share). Such dividends <div style="display: inline; font-style: italic; font: inherit;"> may </div>be paid in cash or in shares of common stock at the Company's discretion.&nbsp; In the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ending <div style="display: inline; font-style: italic; font: inherit;"> March 31 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020</div> the Company accrued <div style="display: inline; font-style: italic; font: inherit;">$100,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$52,741,</div> respectively, of these dividends.&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; text-decoration: underline;">Series B Preferred</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In <div style="display: inline; font-style: italic; font: inherit;"> November 2020, </div>we issued <div style="display: inline; font-style: italic; font: inherit;">170,000</div> shares of Series B Preferred for an aggregate purchase price of <div style="display: inline; font-style: italic; font: inherit;">$1,500,000.</div> The Series B Preferred have an initial stated value of <div style="display: inline; font-style: italic; font: inherit;">$10.00</div> per share and liquidation preference over common stock. The Series B Preferred is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of <div style="display: inline; font-style: italic; font: inherit;">$1.00.</div> The Series B Preferred accrues dividends at a rate of <div style="display: inline; font-style: italic; font: inherit;">8</div> percent per annum, payable at our election either in cash or shares of the Company's common stock. Initially, the Series B Preferred, in whole or part, was redeemable at the option of the holder (but <div style="display: inline; font-style: italic; font: inherit;">not</div> mandatorily redeemable) at any time on or after <div style="display: inline; font-style: italic; font: inherit;"> November 30, 2021 </div>for the stated value, plus any accrued and unpaid dividends and thus was classified as mezzanine equity and initially recognized at fair value of <div style="display: inline; font-style: italic; font: inherit;">$1.5</div> million (the proceeds on the date of issuance). In <div style="display: inline; font-style: italic; font: inherit;"> March 2021, </div>the terms of the Series B Preferred were modified to eliminate the ability of the holder to redeem the Series B Preferred. As the Series B Preferred is <div style="display: inline; font-style: italic; font: inherit;">no</div> longer redeemable, the Series B Preferred is <div style="display: inline; font-style: italic; font: inherit;">not</div> classified as mezzanine equity as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.&nbsp;&nbsp;</div>As a result, the carrying value as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;">$1,612,707</div> which consists of <div style="display: inline; font-style: italic; font: inherit;">$1,500,000</div> original carrying value, <div style="display: inline; font-style: italic; font: inherit;">$47,206</div> accrued dividends and <div style="display: inline; font-style: italic; font: inherit;">$65,500</div> accretion (<div style="display: inline; font-style: italic; font: inherit;">$46,937</div> which occurred in <div style="display: inline; font-style: italic; font: inherit;">2021</div>).</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; text-decoration: underline;">Series C Preferred</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In <div style="display: inline; font-style: italic; font: inherit;"> January 2021 </div>we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.&nbsp; We&nbsp;issued <div style="display: inline; font-style: italic; font: inherit;">170,000</div> shares of Series C Preferred for an aggregate purchase price of <div style="display: inline; font-style: italic; font: inherit;">$1,500,000.</div> The Series C Preferred have an initial stated value of <div style="display: inline; font-style: italic; font: inherit;">$10.00</div> per share and liquidation preference over common stock. The Series C Preferred is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of <div style="display: inline; font-style: italic; font: inherit;">$1.00.</div> The Series C Preferred accrues dividends at a rate of <div style="display: inline; font-style: italic; font: inherit;">8</div> percent per annum, payable at our election either in cash or shares of the Company's common stock. The issuance of the Series C 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 C Preferred was convertible exceeded the allocated purchase price of the Series C Preferred at the closing dates by greater than the allocated purchase price. Therefore, the BCF was the purchase price of the Series C Preferred (<div style="display: inline; font-style: italic; font: inherit;">$1.5</div> million) and was allocated to Additional Paid-in Capital, resulting in a discount on the Series C Preferred Stock. As the Series C Preferred Stock is immediately convertible, the Company accreted the discount on the date of issuance.&nbsp; The accretion to the carrying value of the Series C Preferred is treated as a deemed dividend, recorded as a charge to Additional Paid in Capital and deducted in computing earnings per share.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Warrants</div></div></div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In connection with the Series A Offering, in <div style="display: inline; font-style: italic; font: inherit;">2020</div> the Company issued <div style="display: inline; font-style: italic; font: inherit;">792,660</div> warrants to purchase <div style="display: inline; font-style: italic; font: inherit;">792,660</div> shares of the Company's common stock for <div style="display: inline; font-style: italic; font: inherit;">$1</div> per share. During <div style="display: inline; font-style: italic; font: inherit;">2020,</div> <div style="display: inline; font-style: italic; font: inherit;">597,500</div> warrants were exercised in cash-less exchange for <div style="display: inline; font-style: italic; font: inherit;">391,308</div> shares of the Company's common stock.&nbsp;&nbsp;In <div style="display: inline; font-style: italic; font: inherit;"> January </div>and <div style="display: inline; font-style: italic; font: inherit;"> February 2021, </div>the remaining <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">195,160</div></div> warrants were exercised in a cash-less exchange for <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">103,104</div></div> shares of the Company's common stock.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company has applied the Black-Scholes model to value stock-based awards. That model incorporates various assumptions in the valuation of stock-based awards relating to the risk-free rate of interest to be applied, the estimated dividend yield and expected volatility of the Company's Common Stock. The risk-free rate of interest is the U.S. Treasury yield curve for periods within the expected term of the option at the time of grant. The expected volatility is based on historical volatility of the Company's Common Stock.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The valuation assumptions we have applied to determine the value of warrants granted in <div style="display: inline; font-style: italic; font: inherit;">2020</div> were as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Historical stock price volatility: The Company used the weekly closing price to calculate historical annual volatility.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Risk-free interest rate: The Company bases the risk-free interest rate on the rate payable on US treasury securities with a similar maturity in effect at the time of the grant, which was a range from <div style="display: inline; font-style: italic; font: inherit;">.42%</div> - <div style="display: inline; font-style: italic; font: inherit;">1.65%.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Expected life: The expected life of the warrants represents the period of time warrants were expected to be outstanding. The Company used an expected life of <div style="display: inline; font-style: italic; font: inherit;">5</div>&nbsp;years.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Dividend yield: The estimate for dividend yield is <div style="display: inline; font-style: italic; font: inherit;">0%,</div> as the Company did <div style="display: inline; font-style: italic; font: inherit;">not</div> issue dividends during <div style="display: inline; font-style: italic; font: inherit;">2020</div> or <div style="display: inline; font-style: italic; font: inherit;">2019</div> and does <div style="display: inline; font-style: italic; font: inherit;">not</div> expect to do so in the foreseeable future.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">A summary of the Company's stock warrant activity is as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Shares under</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Option</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Weighted</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Average</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Exercise</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Price</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Balance at December 31, 2020</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">195,160</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Granted</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Cancelled/Expired</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercised/Issued</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(195,160</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at March 31, 2021</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercisable at March 31, 2021</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div></div> -149302 -654757 29398 117687 83229 21256 38988 169425 75632 195496 3500000 126906 1174045 710 154892 92266 524550 -47073 -116987 -139339 -641537 32543 32543 35385 36706 60633 62275 6445 7471 79833 1057058 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">2</div> </div>&#x2013;<div style="display: inline; font-weight: bold;"> Discontinued Operations</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In <div style="display: inline; font-style: italic; font: inherit;"> July 2019 </div>management and the Board engaged in a review of CTI Balloons and CTI Europe and determined that they are <div style="display: inline; font-style: italic; font: inherit;">not</div> accretive to the Company overall, add complexity to the Company's structure and utilize resources. Therefore, as of <div style="display: inline; font-style: italic; font: inherit;"> July 19, 2019, </div>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 <div style="display: inline; font-style: italic; font: inherit;">three</div> months. The Company divested its CTI Balloons (United Kingdom) subsidiary in the <div style="display: inline; font-style: italic; font: inherit;">fourth</div> quarter <div style="display: inline; font-style: italic; font: inherit;">2019.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">In <div style="display: inline; font-style: italic; font: inherit;"> October 2019, </div>we determined that we would <div style="display: inline; font-style: italic; font: inherit;">not</div> renew our Trademark License Agreement with SC Johnson when it expired on <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019. </div>Under this Agreement, we were licensed to manufacture and sell a line of vacuum sealing machines and pouches under the Ziploc&reg; Brand Vacuum Sealer System. The terms of the Agreement included a run-off provision which allowed us to sell products under the Ziploc&reg; trademark for <div style="display: inline; font-style: italic; font: inherit;">90</div> days after the end of the Agreement. Our exit of the Ziploc&reg; product line is considered a strategic shift and had a major effect on our operations and financial results. Therefore, this product line has been presented as discontinued operations.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">CTI Europe recorded a gain from discontinued operations, net of taxes of <div style="display: inline; font-style: italic; font: inherit;">$52,708</div> and <div style="display: inline; font-style: italic; font: inherit;">$317,000</div> for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020, </div>respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Our Ziploc product line recorded a loss from discontinued operations, net of taxes of <div style="display: inline; font-style: italic; font: inherit;">nil</div> and (<div style="display: inline; font-style: italic; font: inherit;">$804,000</div>) for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020, </div>respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Summarized Discontinued Operations Financial Information</div></div></div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 Income for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2021</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2020</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-weight: bold;">Income Statement</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 66.9%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Net Sales</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">79,833</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">1,057,058</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Cost of Sales</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">126,906</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">1,174,045</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Gross Loss</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">(47,073</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">(116,987</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">SG&amp;A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">92,266</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">524,550</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Operating Loss</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">(139,339</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(641,537</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Other Expense</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">9,963</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">13,220</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Total pretax loss from discontinued operations</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(149,302</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;">)</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(654,757</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="padding: 0pt 0pt 0pt 45pt;">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Gain from classification to held for sale</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">250,664</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">168,120</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Net Income (Loss)&nbsp;prior to non-controlling interest</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">101,362 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(486,637</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Non-controlling Interest share of profit/loss</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">48,654</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">152,094</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 3px double black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Net Income (Loss)</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 3px double black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">52,708 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(638,731</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:bottom;width:28.4%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-weight: bold;">Yunhong CTI Ltd. </div></div> </td> </tr> <tr> <td style="vertical-align:bottom;width:28.4%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-weight: bold;">Unaudited Consolidated Balance Sheet </div></div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2021</div></div></div></div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, 2020</div></div></div></div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Balance Sheet</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-weight: bold;">Assets</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">Current Assets</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Cash on hand and Banks</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">75,632</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">195,496</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Accounts Receivable</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">29,398</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">117,687</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Inventory</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Prepaid &amp; Other</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">60,633</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">62,275</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid black;">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">TOTAL Current Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">165,663</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">375,458</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid black;">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">NET Property, Plant, and Equipment</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">6,445 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">7,471 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">Other Assets</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Operating lease right-of-use</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">129,411</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Other</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">32,543</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">32,543</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">TOTAL Other Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">32,543 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">161,954 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">TOTAL Non-Current Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">38,988 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">169,425</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">Valuation Allowance on Assets Held for Sale</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">- </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(250,664</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">)</div></div></div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-weight: bold;">TOTAL Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">204,651 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">294,219 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">Liabilities</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">Current Liabilities</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Trade Accounts Payable</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">83,229</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">21,256</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Operating Lease Liabilities - Current</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">93,514</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Other/Accrued Liabilities</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(3,271</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(2,796</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">TOTAL Current Liabilities</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">79,958</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">111,974 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">Non-Current Liabilities</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Operating Lease Liabilities - Non Current</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">35,897</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Other Non-Current</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">35,385</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">36,706</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">TOTAL Non-Current Liabilities</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">35,385 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">72,603 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">TOTAL Liabilities</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">115,343 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">184,577 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The cash flows related to discontinued operations have <div style="display: inline; font-style: italic; font: inherit;">not</div> been segregated and are included in the Consolidated Statements of Cash Flows. The following table summarizes depreciation from discontinued operations for each of the periods presented:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Depreciation</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">710</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">154,892</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div></div> 100000 52741 47206 1300000 100000 100000 100000 100000 8045 1140709 1123769 1600000 997019 1140709 1123769 -0.36 -0.76 -0.36 -0.76 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">Earnings per share:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Basic (loss)&nbsp;per share is computed by dividing net loss&nbsp;by the weighted average number of shares of common stock outstanding during each period.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Diluted (loss)&nbsp;per share is computed by dividing the net loss by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> shares to be issued upon the exercise of options and warrants aggregated <div style="display: inline; font-style: italic; font: inherit;">nil</div>&nbsp;and <div style="display: inline; font-style: italic; font: inherit;">632,660,</div> respectively. The number of shares included in the determination of earnings on a diluted basis for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020</div> were <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">none</div>,</div> as doing so would have been anti-dilutive.</div></div></div></div></div> -554714 190942 260000 -26383 -154083 25684 1120350 702431 1093193 1481442 -481711 -7482 -481711 -7482 -0.38 -0.64 -0.38 -0.64 52708 317000 0 -804000 101362 -486637 101362 -486637 48654 152094 52708 -638731 0.02 -0.12 0.02 -0.12 196747 403074 752689 -157864 1859940 -797188 158480 39729 15756 -241530 212159 -133257 231159 441177 17000 15000 194882 441000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">9</div> </div>-<div style="display: inline; font-weight: bold;"> Inventories, Net of Continuing Operations</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">March 31,</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2021</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">December 31,</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2020</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Raw materials</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,218,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,177,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Work in process</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,979,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,799,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Finished goods</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">6,890,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,224,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">In Transit</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">86,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">88,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Allowance for excess quantities</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(250,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(318,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total inventories</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10,923,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10,970,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div></div> 6890000 7224000 3770 10922713 10969711 1218000 1177000 250000 318000 2979000 2799000 250000 250000 147416 407476 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">6</div> - Legal Proceedings</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company <div style="display: inline; font-style: italic; font: inherit;"> may </div>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 <div style="display: inline; font-style: italic; font: inherit;">not</div> 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.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">In <div style="display: inline; font-style: italic; font: inherit;"> July, 2017, </div>God's Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (&#x201c;Claimants&#x201d;) filed an action against the Company based on disputed compensation amounts over several years. This action was resolved by mutual agreement between the parties during <div style="display: inline; font-style: italic; font: inherit;"> January 2019. </div>Mr. Page received <div style="display: inline; font-style: italic; font: inherit;">20,000</div> shares of CTI common stock, <div style="display: inline; font-style: italic; font: inherit;">$5,000</div> in cash, and a minimum payout in his monthly royalty calculation of <div style="display: inline; font-style: italic; font: inherit;">$7,667</div> beginning <div style="display: inline; font-style: italic; font: inherit;"> March 1, 2019 </div>and ending <div style="display: inline; font-style: italic; font: inherit;"> August 1, 2021. </div>The balance remaining as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;">$38,325</div> and <div style="display: inline; font-style: italic; font: inherit;">$53,659,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">FedEx Trade Networks Transport and Brokerage Inc. v. CTI Industries Corp., Case <div style="display: inline; font-style: italic; font: inherit;">No.</div> <div style="display: inline; font-style: italic; font: inherit;">20</div> L <div style="display: inline; font-style: italic; font: inherit;">46,</div> was filed on <div style="display: inline; font-style: italic; font: inherit;"> January 27, 2020 </div>in the Circuit Court of the <div style="display: inline; font-style: italic; font: inherit;">19th</div> Judicial Circuit, Lake County, Illinois.&nbsp; The complaint for breach of contract sought <div style="display: inline; font-style: italic; font: inherit;">$163,964.75</div> in damages, plus interest and court costs. On <div style="display: inline; font-style: italic; font: inherit;"> October 15, 2020, </div>the case was dismissed with leave to reinstate pursuant to settlement. The settlement calls for the payment of <div style="display: inline; font-style: italic; font: inherit;">$100,400.00</div> in monthly installments of <div style="display: inline; font-style: italic; font: inherit;">$10,000</div> per month for a period of <div style="display: inline; font-style: italic; font: inherit;">ten</div> (<div style="display: inline; font-style: italic; font: inherit;">10</div>) months and with the last payment being in the amount of <div style="display: inline; font-style: italic; font: inherit;">$10,400.</div> The <div style="display: inline; font-style: italic; font: inherit;">first</div> payment came due and was made on <div style="display: inline; font-style: italic; font: inherit;"> October 30, 2020, </div>and payments have been made monthly.&nbsp;The balance remaining as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;">$40,400</div> and <div style="display: inline; font-style: italic; font: inherit;">$70,400,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">Airgas USA, LLC v. CTI Industries Corp., Case <div style="display: inline; font-style: italic; font: inherit;">No.</div> <div style="display: inline; font-style: italic; font: inherit;">01</div>-<div style="display: inline; font-style: italic; font: inherit;">20</div>-<div style="display: inline; font-style: italic; font: inherit;">0014</div>-<div style="display: inline; font-style: italic; font: inherit;">7852</div> was filed with the American Arbitration Association on or about <div style="display: inline; font-style: italic; font: inherit;"> September 8, 2020. </div>The claim seeks <div style="display: inline; font-style: italic; font: inherit;">$212,000,</div> plus interest, attorneys' fees and costs for breach of contract. Claimant agreed to give CTI an extension to respond to the claim so the parties could attempt to resolve. On <div style="display: inline; font-style: italic; font: inherit;"> February 10, 2021, </div>Airgas accepted CTI's offer to pay <div style="display: inline; font-style: italic; font: inherit;">$125,000</div> over <div style="display: inline; font-style: italic; font: inherit;">10</div> months. Airgas agreed to the settlement in <div style="display: inline; font-style: italic; font: inherit;"> March </div>of <div style="display: inline; font-style: italic; font: inherit;">2021.</div>&nbsp;The liability recorded by the Company as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">$125,000</div>,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">On <div style="display: inline; font-style: italic; font: inherit;"> October 19, 2020, </div>Jules and Associates, Inc. sent CTI a demand letter related to the lease of certain equipment. The letter demanded <div style="display: inline; font-style: italic; font: inherit;">$65,846.99</div> for alleged past due amounts under the lease as well as a return of the equipment. Discussions regarding the return of the equipment are ongoing and <div style="display: inline; font-style: italic; font: inherit;">no</div> lawsuit has been filed. On <div style="display: inline; font-style: italic; font: inherit;"> April 5, 2020 </div>Jules &amp; Associates, Inc. filed and served on CTI a demand for arbitration with JAMS related to the lease of certain equipment.&nbsp; The demand requests <div style="display: inline; font-style: italic; font: inherit;">$98,244.55</div> for alleged past due amounts under the lease as well as a return of the equipment or its fair market value. The Company accrued the <div style="display: inline; font-style: italic; font: inherit;">$0.1</div> million in committed costs under this settlement in its <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>financial statements.&nbsp;The liability recorded by the Company as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;">$91,298</div> and <div style="display: inline; font-style: italic; font: inherit;">$75,187,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">On <div style="display: inline; font-style: italic; font: inherit;"> October 19, 2020, </div>Redwood Multimodal sent CTI a demand for the withholding of payment in the amount <div style="display: inline; font-style: italic; font: inherit;">$98,960.88</div> for loads brokered by Redwood. Settlement discussions are ongoing and <div style="display: inline; font-style: italic; font: inherit;">no</div> lawsuit has been filed. The Company accrued the <div style="display: inline; font-style: italic; font: inherit;">$0.1</div> million in committed costs under this settlement in its <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021&nbsp;</div>financial statements.&nbsp;The liability recorded by the Company as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">$98,961</div>.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">Benchmark Investments, Inc. v. Yunhong CTI Ltd filed a case in the United States District Court for the Southern District of New York on <div style="display: inline; font-style: italic; font: inherit;"> March 16, 2021 </div>and served on CTI on <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.&nbsp; </div>CTI has through <div style="display: inline; font-style: italic; font: inherit;"> June 4, 2021&nbsp;</div>to file its response to the complaint.&nbsp; The complaint seeks damages in excess of <div style="display: inline; font-style: italic; font: inherit;">$500,000.</div></div></div> 0.11 P10Y <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">13</div></div> <div style="display: inline; font-weight: bold;">-</div> <div style="display: inline; font-weight: bold;">Leases</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">We adopted ASC Topic <div style="display: inline; font-style: italic; font: inherit;">842</div> (Leases) on <div style="display: inline; font-style: italic; font: inherit;"> January 1, 2019. </div>In <div style="display: inline; font-style: italic; font: inherit;"> July 2020, </div>the Company entered into a lease agreement for a building through <div style="display: inline; font-style: italic; font: inherit;"> June 2021 (</div>with <div style="display: inline; font-style: italic; font: inherit;">no</div> extension options).&nbsp;&nbsp; The monthly lease payments are <div style="display: inline; font-style: italic; font: inherit;">$38,000.</div>&nbsp; The Company made a policy election to <div style="display: inline; font-style: italic; font: inherit;">not</div> recognize right of use assets and lease liabilities that arise from leases with an initial term of <div style="display: inline; font-style: italic; font: inherit;">twelve</div> months or less on the Consolidated Balance Sheets. &nbsp;&nbsp;However, the Company recognized these lease payments in the Consolidated Statement of Operations on a straight-line basis over the lease term and variable lease payments in the period in which the expense was incurred. This lease terminated during <div style="display: inline; font-style: italic; font: inherit;">2021</div> and was replaced with a new lease. In <div style="display: inline; font-style: italic; font: inherit;"> March 2021, </div>the Company entered into a lease agreement for a building through <div style="display: inline; font-style: italic; font: inherit;"> September 2022. </div>The monthly lease payments are <div style="display: inline; font-style: italic; font: inherit;">$34,000.</div>&nbsp;&nbsp;As a result of this new lease, in <div style="display: inline; font-style: italic; font: inherit;"> March 2021, </div>the Company recorded a right of use asset of <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">$567,950</div></div> and a related operating lease liability and used the incremental borrowing rate of <div style="display: inline; font-style: italic; font: inherit;">11%.</div></div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: center; margin: 0pt;">&nbsp;</div></div> 23547208 21550971 19566409 18787191 157764 44129 115343 184577 115343 184577 79958 111974 35385 72603 260000 18000000 9000000 6746160 5363340 100400 125000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-; min-width: 700px;"> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="6" style="vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Total Assets at</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">March 31,</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">December 31,</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2021</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2020</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align:bottom;width:32%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">United States</div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">15,836,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">12,459,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Mexico</div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,506,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">8,798,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Assets Held for Sale International Subsidiaries</div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">205,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">294,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">23,547,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">21,551,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> </table></div> 2000000 1800000 38325 53659 40400 70400 125000 91298 75187 98961 98961 125000 163964.75 212000 65846.99 98244.55 98960.88 500000 19824315 19833903 106566 120829 -676398 -718212 75632 6073 1557444 -1699711 -45784 -18526 -1420662 842302 -422163 -638696 -638696 -422163 41814 144577 144577 41814 -2131039 -3019640 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Significant Accounting Policies:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company's significant accounting policies are summarized in Note <div style="display: inline; font-style: italic; font: inherit;">2</div> of the Company's consolidated financial statements for the year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>There were <div style="display: inline; font-style: italic; font: inherit;">no</div> significant changes to these accounting policies during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;">606.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;">one</div> year and we have elected the practical expedient included in ASC <div style="display: inline; font-style: italic; font: inherit;">606.</div> We do <div style="display: inline; font-style: italic; font: inherit;">not</div> 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 <div style="display: inline; font-style: italic; font: inherit;">not</div> 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.</div></div></div></div></div> -315235 -637594 3687100 3913666 1140709 1123769 1500000 1 1259669 851330 -166476 630112 567950 633447 317591 157764 44129 567950 791211 361720 152053 235368 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">1</div> - Basis of Presentation </div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The accompanying condensed (a) consolidated balance sheet as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>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 <div style="display: inline; font-style: italic; font: inherit;">10</div>-Q and Article <div style="display: inline; font-style: italic; font: inherit;">8</div> of Regulation S-<div style="display: inline; font-style: italic; font: inherit;">X.</div> Accordingly, they do <div style="display: inline; font-style: italic; font: inherit;">not</div> include all the information and footnotes required by accounting principles generally accepted in the United States of America. Operating results for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>are <div style="display: inline; font-style: italic; font: inherit;">not</div> necessarily indicative of the results that <div style="display: inline; font-style: italic; font: inherit;"> may </div>be expected for the fiscal year ending <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2021. </div>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 <div style="display: inline; font-style: italic; font: inherit;">10</div>-K for the fiscal year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"></div> <div style="display: inline; font-style: italic; font: inherit;"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Principles of consolidation and nature of operations:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Yunhong CTI Ltd, its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the &#x201c;Company&#x201d;) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note <div style="display: inline; font-style: italic; font: inherit;">2</div> Discontinued Operations, effective in the <div style="display: inline; font-style: italic; font: inherit;">third</div> quarter of <div style="display: inline; font-style: italic; font: inherit;">2019,</div> the Company determined that it was exiting the business formerly conducted by CTI Europe GmbH (&#x201c;CTI Europe&#x201d;). Accordingly, the operations of this entity are classified as discontinued operations in these financial statements.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The condensed consolidated financial statements include the accounts of Yunhong CTI Ltd., and CTI Supply, Inc. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">The determination of whether or <div style="display: inline; font-style: italic; font: inherit;">not</div> 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 &#x201c;closely associated&#x201d; 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.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"></div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"></div> <div style="display: inline; font-style: italic; font: inherit;"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Use of estimates:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;"> may </div>differ from those estimates. The Company's significant estimates include valuation allowances for doubtful accounts and&nbsp;inventory valuation, and assumptions used as inputs in the Black-Scholes option-pricing model.&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;"></div> <div style="display: inline; font-style: italic; font: inherit;"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">Earnings per share:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Basic (loss)&nbsp;per share is computed by dividing net loss&nbsp;by the weighted average number of shares of common stock outstanding during each period.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Diluted (loss)&nbsp;per share is computed by dividing the net loss by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> shares to be issued upon the exercise of options and warrants aggregated <div style="display: inline; font-style: italic; font: inherit;">nil</div>&nbsp;and <div style="display: inline; font-style: italic; font: inherit;">632,660,</div> respectively. The number of shares included in the determination of earnings on a diluted basis for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020</div> were <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">none</div>,</div> as doing so would have been anti-dilutive.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"></div> <div style="display: inline; font-style: italic; font: inherit;"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Significant Accounting Policies:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company's significant accounting policies are summarized in Note <div style="display: inline; font-style: italic; font: inherit;">2</div> of the Company's consolidated financial statements for the year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>There were <div style="display: inline; font-style: italic; font: inherit;">no</div> significant changes to these accounting policies during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;">606.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;">one</div> year and we have elected the practical expedient included in ASC <div style="display: inline; font-style: italic; font: inherit;">606.</div> We do <div style="display: inline; font-style: italic; font: inherit;">not</div> 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 <div style="display: inline; font-style: italic; font: inherit;">not</div> 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.</div></div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div></div> 86474 87552 1341046 1352419 -1363503 -1363503 -16267 -16267 -16267 -1363503 32000 1364000 86000 88000 -57693 -42334 5000 45784 18526 570160 65500 46937 10 0.08 0.08 0.08 5000000 0 0 0 0 0 0 0 10 10 2500000 3000000 3000000 170000 170000 170000 170000 500000 500000 170000 170000 170000 0 500000 500000 170000 170000 170000 0 1612707 1500000 2854583 2754583 1528333 733891 589149 478000 1557444 5000000 1500000 1500000 1500000 3626600 208876 53000 2000000 -380349 -494119 27076643 27416688 1843156 1950475 12176 10492 31000 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">11</div> - Related Party Transactions </div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">John H. Schwan, who resigned as Chairman of the Board on <div style="display: inline; font-style: italic; font: inherit;"> June 1, 2020, </div>is the brother of Gary Schwan, <div style="display: inline; font-style: italic; font: inherit;">one</div> of the owners of Schwan Incorporated, which provides building maintenance services to the Company. The Company made payments to Schwan Incorporated of approximately <div style="display: inline; font-style: italic; font: inherit;">$31,000</div> and <div style="display: inline; font-style: italic; font: inherit;">none</div> during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> respectively. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>the payable&nbsp;balance amounted to <div style="display: inline; font-style: italic; font: inherit;">nil.</div>&nbsp;Jana M. Schwan, Chief Operating Officer of the Company, is the daughter of John H. Schwan.&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">During the period from <div style="display: inline; font-style: italic; font: inherit;"> January 2003 </div>to the present, John H. Schwan has made loans to the Company which had outstanding balances of <div style="display: inline; font-style: italic; font: inherit;">$1,140,709</div> and <div style="display: inline; font-style: italic; font: inherit;">$1,123,769</div> as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>respectively.&nbsp; <div style="display: inline; font-style: italic; font: inherit;">No</div> payments were made to Mr. Schwan since <div style="display: inline; font-style: italic; font: inherit;">2019.</div> Interest expense related to this loan amounted to <div style="display: inline; font-style: italic; font: inherit;">$17,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$15,000</div> for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months end <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020</div> include loans by shareholders to Flexo Universal totaling <div style="display: inline; font-style: italic; font: inherit;">nil</div> and <div style="display: inline; font-style: italic; font: inherit;">$9,000,</div> respectively.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">On <div style="display: inline; font-style: italic; font: inherit;"> July 1, 2019, </div>the Company deconsolidated Clever, and as result the Company recorded a note receivable of <div style="display: inline; font-style: italic; font: inherit;">$1.3</div> million. One of owners of Clever is John Schwan from above. In <div style="display: inline; font-style: italic; font: inherit;">2020,</div> the Company had reserved <div style="display: inline; font-style: italic; font: inherit;">$1,277,000</div> of this receivable and as a result the balance as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>amounted to <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">$100,000</div>.</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">In <div style="display: inline; font-style: italic; font: inherit;"> January 2021 </div>we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.&nbsp; We&nbsp;issued <div style="display: inline; font-style: italic; font: inherit;">170,000</div> shares of Series C Preferred for an aggregate purchase price of <div style="display: inline; font-style: italic; font: inherit;">$1,500,000.</div>&nbsp; Additional details regarding the transaction are discussed in Note <div style="display: inline; font-style: italic; font: inherit;">5.</div>&nbsp;&nbsp;</div></div> 4716429 0 0 -14804490 -14382327 7416168 7067501 3991000 3222000 6599000 5426000 817000 1642000 567950 10 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2021</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2020</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><div style="display: inline; font-weight: bold;">Income Statement</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 66.9%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Net Sales</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">79,833</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">1,057,058</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Cost of Sales</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">126,906</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">1,174,045</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Gross Loss</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">(47,073</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">(116,987</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">SG&amp;A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">92,266</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">524,550</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Operating Loss</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">(139,339</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(641,537</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Other Expense</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">9,963</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">13,220</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Total pretax loss from discontinued operations</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(149,302</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;">)</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(654,757</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="padding: 0pt 0pt 0pt 45pt;">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Gain from classification to held for sale</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">250,664</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">168,120</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Net Income (Loss)&nbsp;prior to non-controlling interest</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">101,362 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(486,637</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;">Non-controlling Interest share of profit/loss</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">48,654</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font: inherit;">152,094</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 3px double black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt;"><div style="display: inline; font-weight: bold;">Net Income (Loss)</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 3px double black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">52,708 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0); text-align: right;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(638,731</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"><div style="display: inline; font-weight: bold;">)</div></td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2021</div></div></div></div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, 2020</div></div></div></div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Balance Sheet</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-weight: bold;">Assets</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">Current Assets</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Cash on hand and Banks</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">75,632</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">195,496</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Accounts Receivable</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">29,398</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">117,687</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Inventory</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Prepaid &amp; Other</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">60,633</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">62,275</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid black;">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">TOTAL Current Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">165,663</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">375,458</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid black;">&nbsp;</td> <td style="padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">NET Property, Plant, and Equipment</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">6,445 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">7,471 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">Other Assets</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Operating lease right-of-use</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">129,411</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Other</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">32,543</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">32,543</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">TOTAL Other Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">32,543 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">161,954 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">TOTAL Non-Current Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">38,988 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">169,425</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">Valuation Allowance on Assets Held for Sale</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">- </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">(250,664</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">)</div></div></div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-weight: bold;">TOTAL Assets</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">204,651 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">294,219 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">Liabilities</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">Current Liabilities</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Trade Accounts Payable</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">83,229</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">21,256</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Operating Lease Liabilities - Current</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">93,514</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Other/Accrued Liabilities</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(3,271</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">)</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(2,796</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">TOTAL Current Liabilities</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">79,958</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">111,974 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">Non-Current Liabilities</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Operating Lease Liabilities - Non Current</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">35,897</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Other Non-Current</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">35,385</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">36,706</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid black;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;"><div style="display: inline; font-weight: bold;">TOTAL Non-Current Liabilities</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; border-bottom: 1px solid black;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">35,385 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">72,603 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;"><div style="display: inline; font-weight: bold;">TOTAL Liabilities</div></div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">115,343 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">184,577 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Depreciation</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">710</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">154,892</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">March 31,</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2021</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">December 31,</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2020</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Raw materials</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,218,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,177,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Work in process</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,979,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,799,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Finished goods</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">6,890,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,224,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">In Transit</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">86,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">88,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Allowance for excess quantities</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(250,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(318,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total inventories</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10,923,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10,970,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Net Sales to Outside Customers</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">For the Three Months Ended</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">March 31,</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2021</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2020</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 68%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">United States</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">6,599,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">5,426,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Mexico</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">817,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,642,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">7,416,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">7,068,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Shares under</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Option</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Weighted</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Average</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Exercise</div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Price</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 70%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Balance at December 31, 2020</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">195,160</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Granted</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Cancelled/Expired</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercised/Issued</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(195,160</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at March 31, 2021</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercisable at March 31, 2021</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2021</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, 2020</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 48%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Customer</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Net Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">% of Net </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Net Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">% of Net </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Sales</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Customer A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,991,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">54</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">%</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,222,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">46</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">%</div> </td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">8</div> - Geographic Segment Data</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company has determined that it operates primarily in <div style="display: inline; font-style: italic; font: inherit;">one</div> business segment that designs, manufactures, and distributes film and film related products for use in packaging, storage, and novelty balloon products. The Company operates in foreign and domestic regions. Information about the Company's continuing operations by geographic area is as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: &quot;Times New Roman&quot;; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Net Sales to Outside Customers</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">For the Three Months Ended</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">March 31,</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2021</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2020</div> </td> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 68%;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">United States</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">6,599,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">5,426,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Mexico</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">817,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,642,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">7,416,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">7,068,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto; min-width: 700px;"> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="6" style="vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">Total Assets at</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">March 31,</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">December 31,</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2021</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td colspan="2" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;">2020</div> </td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align:bottom;width:32%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">United States</div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">15,836,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">12,459,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Mexico</div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,506,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">8,798,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align:bottom;width:0%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Assets Held for Sale International Subsidiaries</div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">205,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">294,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="border-bottom:solid 1px #000000;vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align:bottom;width:0%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">23,547,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:0.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">$</div> </td> <td style="border-bottom:double 3px #000000;vertical-align:bottom;width:5.5%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">21,551,000</div></div> </td> <td style="vertical-align:bottom;width:0.5%;">&nbsp;</td> </tr> </table> </div></div> 32753 53754 0 0.0042 0.0165 1 1 195160 1 1 1 1 3.32 P5Y 10 3879608 -43658 410860 4219608 -43658 500000 5827304 -43658 500000 170000 170000 5930408 -43658 250000 306000 1500000 48200 400000 170000 170000 20000 170000 362660 140000 170000 170000 195160 478017 478017 1000000 3509933 116667 3626600 1500000 1500000 1612707 1612707 4499433 1905699 3823035 1187487 13898494 3587287 -9992841 -5348812 -160784 -856837 1126507 2161607 14321161 4287473 -10631537 -6712315 -160784 -712260 2553342 2754583 14537828 5041511 -14382327 -5885112 -160784 -718212 2854583 1612707 1528333 14537828 4832635 -14804490 -5901379 -160784 -676398 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">14</div></div>&nbsp;<div style="display: inline; font-weight: bold;">- Subsequent Events</div></div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Other than the items discussed in Note <div style="display: inline; font-style: italic; font: inherit;">3</div> related to the <div style="display: inline; font-style: italic; font: inherit;"> April 23, 2021 </div>Purchase and Sale Agreement ("PSA") and related lease and note payable, there were <div style="display: inline; font-style: italic; font: inherit;">no</div> subsequent events that required recognition or disclosure.</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">&nbsp;</div></div> 1500000 1532164 0 0 170000 170000 170000 170000 170000 170000 43658 43658 160784 160784 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">Use of estimates:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">&nbsp;</div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">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 <div style="display: inline; font-style: italic; font: inherit;"> may </div>differ from those estimates. 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Line of credit ctib_LitigationSettlementAmountAwardedToOtherPartyTerm Litigation Settlement, Amount Awarded to Other Party, Term (Month) The term of litigation settlement. ctib_LitigationSettlementAmountAwardedToOtherPartyLastPaymentAmount Litigation Settlement, Amount Awarded to Other Party, Last Payment Amount The last payment amount of the litigation settlement. us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice Outstanding, beginning of period (in dollars per share) Outstanding at the end of period (in dollars per share) Cancelled/Expired (in dollars per share) Granted (in dollars per share) Exercised/Issued (in dollars per share) Accrued liabilities Derivatives and Fair Value [Text Block] Lessee, Operating Leases [Text Block] Trade payables Revolving Credit Facility [Member] us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber Outstanding, beginning of period (in shares) Outstanding at the end of period (in shares) us-gaap_PaymentsForProceedsFromProductiveAssets Purchases of property, plant and equipment us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod Cancelled/Expired (in shares) Credit Facility [Axis] Credit Facility [Domain] us-gaap_ProceedsFromSaleOfBuildings Proceeds from Sale of Buildings us-gaap_PolicyTextBlockAbstract Accounting Policies Stock issued Weighted average number of shares and equivalent shares of common stock outstanding: us-gaap_LossContingencyAccrualAtCarryingValue Loss Contingency Accrual, Ending Balance Current liabilities: Assets us-gaap_Assets TOTAL ASSETS Supplemental disclosure of cash flow information and noncash investing and financing activities: Assets Held for Sale International Subsidiaries us-gaap_AssetsOfDisposalGroupIncludingDiscontinuedOperation TOTAL Assets us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic Net Loss attributable to Yunhong CTI Ltd Shareholders ctib_SaleOfStockSharesAgreedToPurchase Sale of Stock, Shares Agreed to Purchase (in shares) The number of shares agreed to purchase under a sale of stock. Legal Matters and Contingencies [Text Block] Cash on hand and Banks us-gaap_DisposalGroupIncludingDiscontinuedOperationCashAndCashEquivalents Conversion from Accounts Payable To Common Stock [Member] Information related to the conversion from accounts payable to common stock. Accounts Receivable us-gaap_DisposalGroupIncludingDiscontinuedOperationAccountsNotesAndLoansReceivableNet Purchase Agreement [Member] Related to the stock purchase agreement. us-gaap_LossContingencyDamagesSoughtValue Loss Contingency, Damages Sought, Value Share-based Payment Arrangement [Text Block] Additional Offering [Member] Related to the additional offering. ctib_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantEquipmentAndIntellectualProperty Less : accumulated depreciation and amortization The cumulative amount of depreciation, depletion and amortization related to property, plant, equipment and intellectual property, but not including land. Second Purchase Agreement Amendment [Member] Related to the second purchase agreement amendment. us-gaap_PreferredStockRedemptionPremium Preferred Stock Redemption Premium ctib_SaleOfStockContingentAdditionalOfferedShares Sale of Stock, Contingent Additional Offered Shares (in shares) The number of additional contingent offered shares in a sale of stock. Other assets ctib_DisposalGroupIncludingDiscontinuedOperationValuationAllowanceOnAssetsHeldForSale Valuation Allowance on Assets Held for Sale Amount of valuation allowance on assets held for sale, attributable to disposal group held for sale or disposed of. us-gaap_IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity Net Income (Loss) Net Loss Net loss attributable to Yunhong CTI, Ltd Net Loss Series A Preferred Stock Warrants [Member] Related to Series A Preferred Stock Warrants. Less: Net (loss) income attributable to noncontrolling interest Office furniture and equipment Carrying amount at the balance sheet date for long-lived, depreciable asset commonly used in offices. Examples include desks, chairs, and store fixtures. Loss Contingency, Nature [Domain] Fixtures and equipment at customer locations Carrying amount at the balance sheet date for long-lived, depreciable fixtures and equipment commonly used at customer location. Examples include desks, chairs, and store fixtures. Intellectual property Gross carrying amount before accumulated amortization as of the balance sheet date of Intellectual Property. ctib_AssetsNoncurrentExcludingPropertyPlantAndEquipment Total other assets Sum of the carrying amounts as of the balance sheet date of all assets excluding property, plant and equipment that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer. Settled Litigation [Member] Loss Contingency Nature [Axis] Other assets: Litigation Status [Axis] Litigation Status [Domain] Pending Litigation [Member] us-gaap_PropertyPlantAndEquipmentNet Total property, plant and equipment, net Promissory Note [Member] Written promise to pay a note to a specified party. John H Schwan [Member] Chief executive officer of the company. us-gaap_PropertyPlantAndEquipmentGross Property, Plant and Equipment, Gross Machinery and equipment Series B Preferred stock -- no par value, 170,000 shares authorized 170,000 shares issued and outstanding at March 31, 2021 and December 31, 2020 Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests, Ending Balance Projects under construction Leasehold improvements Long-term Debt, Type [Axis] Land Long-term Debt, Type [Domain] us-gaap_Dividends Dividends, Total Building Gain from classification to held for sale Represents gain (loss) from classification to held for sale for disposal group including discontinued operation. Property, plant and equipment: us-gaap_AccountsReceivableGross Accounts Receivable, before Allowance for Credit Loss us-gaap_NotesReceivableGross Financing Receivable, before Allowance for Credit Loss, Total Net loss Net Loss us-gaap_DiscontinuedOperationIncomeLossFromDiscontinuedOperationBeforeIncomeTax Total pretax loss from discontinued operations Amortization of deferred gain on sale/leaseback This element represent the amount of amortization of deferred gain on sale or leaseback. Gain (loss) from discontinued operations, net of tax us-gaap_IncomeLossFromDiscontinuedOperationsNetOfTax Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total Net Income (Loss) prior to non-controlling interest Cash flows from investing activities: Extinguishment of Debt, Type [Domain] Non-controlling Interest share of profit/loss us-gaap_IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToNoncontrollingInterest us-gaap_ExtinguishmentOfDebtAmount Extinguishment of Debt, Amount Extinguishment of Debt [Axis] Additional Shares Offering [Member] Represents information related to additional shares offering. us-gaap_IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest Loss from continuing operations us-gaap_RelatedPartyTransactionAmountsOfTransaction Related Party Transaction, Amounts of Transaction Conversion from Each Share Series A Preferred Stock to Common Stock [Member] Represents conversion from each share series A preferred stock to common stock. Related Party Transactions Disclosure [Text Block] Line of Credit [Member] us-gaap_IncreaseDecreaseInAccruedLiabilities Accrued liabilities Income tax expense ctib_NoteReceivableReserve Note Receivable, Reserve Represents reserve for note receivable. us-gaap_OperatingExpenses Total operating expenses us-gaap_IncreaseDecreaseInAccountsPayableTrade Trade payables General and administrative us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Total Cash and cash equivalents ctib_DeemedDividendsOnPreferredStockAndAmortizationOfBenefitConversionFeature Deemed Dividends on preferred stock and amortization of beneficial conversion feature Represents deemed dividends on preferred stock and amortization of benefit conversion feature. Conversion of Accounts Receivable Owed to Investor to Preferred Stock [Member] Represents the conversion of an accounts receivable owed to an investor to preferred stock. Ziploc Product Line [Member] Represents information related to Ziploc product line. Amendment Flag Issuance of Placement agent warrants in connection with Series A Preferred offering Represents information related to issuance of warrants. Other Comprehensive Income (Loss) us-gaap_ComprehensiveIncomeNetOfTax Comprehensive Loss Accrued Deemed Dividend Represents information related to accrued deemed dividends. Use of Estimates, Policy [Policy Text Block] New Accounting Pronouncements, Policy [Policy Text Block] LF International [Member] Represents information related to LF international. us-gaap_SharesOutstanding Balance (in shares) Balance (in shares) Common stock, shares outstanding (in shares) Preferred stock, shares outstanding (in shares) Current Fiscal Year End Date us-gaap_DebtInstrumentInterestRateStatedPercentage Debt Instrument, Interest Rate, Stated Percentage us-gaap_PreferredStockAccretionOfRedemptionDiscount Preferred Stock, Accretion of Redemption Discount us-gaap_DebtInstrumentInterestRateIncreaseDecrease Debt Instrument, Interest Rate, Increase (Decrease) us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets Prepaid expenses and other assets Document Fiscal Period Focus Document Fiscal Year Focus Document Period End Date Lease right-of-use assets and lease liability Entity Emerging Growth Company us-gaap_DebtInstrumentFaceAmount Debt Instrument, Face Amount Document Type Entity Small Business ctib_NumberOfMajorCustomers Number of Major Customers Represents the number of major customers accounting for 10% or more of the specified concentration risk benchmark, which includes, but not limited to, sales revenue, accounts receivable, etc. Entity Shell Company Document Information [Line Items] Document Information [Table] Customer One [Member] Represents the first major customer. Conversion of Accounts Payable to Convertible Preferred Stock [Member] Represents the conversion of accounts payable to convertible preferred stock Entity Filer Category Debt Instrument [Axis] Entity Current Reporting Status Debt Instrument, Name [Domain] Term Loan [Member] Represents a term loan. Accretion of Series B Preferred Stock Amount of increase (decrease) to additional paid in capital (APIC) resulting from accretion of preferred stock. Percent of net sales Concentration Risk, Percentage us-gaap_IncreaseDecreaseInAccountsReceivable Accounts receivable Entity Central Index Key Jules and Associates, Inc. [Member] Represents Jules and Associates, Inc. Entity Registrant Name Redwood Multimodal [Member] Represents Redwood Multimodal. Demand for the Withholding of Payment [Member] Represents demand for the withholding of payment. Entity [Domain] Stock Placement Agent [Member] Represents the stock placement agent. MEXICO Legal Entity [Axis] Airgas USA, LLC v. CTI Industries Corp. [Member] Represents Airgas USA, LLC v. CTI Industries Corp.. Customer Concentration Risk [Member] Alleged Past Due Amounts Under Lease [Member] Represents alleged past due amounts under lease. Beneficial Conversion feature (BCF) on Preferred Stock The adjustments to equity attributable to the beneficial conversion feature of preferred stock. Deemed Dividend on BCF of Preferred Stock Deemed Dividend on BCF of Series C Preferred Stock The adjustments to equity attributable to the deemed dividend on beneficial conversion feature of preferred stock. Common stock issued for placement agent fees (in shares) The number of shares issued for placement agent fees during the period. Common stock issued for placement agent fees Value of stock issued for placement agent fees. Concentration Risk Type [Axis] Warrants issued to placement agent and other issuance costs Value of warrants issued to placement agent and other issuance costs. Concentration Risk Type [Domain] us-gaap_TreasuryStockValue Less: Treasury stock, 43,658 shares Placement agent fees and issuance costs This element represents movements included in the statement of changes in stockholders' equity which attributable to placement agent fees and issuance costs. ctib_NumberOfSharesIssuableUponTheExerciseOfOptionsAndWarrants Number of Shares Issuable Upon the Exercise of Options and Warrants (in shares) The number of shares issuable upon the exercise of options and warrants aggregated. Entity Common Stock, Shares Outstanding (in shares) Lake Barrington Facility Lease [Member] Information related to the Lake Barrington facility lease. ctib_LesseeOperatingLeaseAnnualBaseRentOnFirstYear Lessee, Operating Lease, Annual Base Rent on First Year Amount of annual base rent on the first year of the lease term of lessee's operating lease. Advertising and marketing ctib_LesseeOperatingLeaseAnnualBaseRentOnLastYear Lessee, Operating Lease, Annual Base Rent on Last Year Amount of annual base rent on the last year of the lease term of lessee's operating lease. Revenue Benchmark [Member] ctib_DebtInstrumentCovenantPercentageOfTotalProceedsFromEquityIssuanceRequired Debt Instrument, Covenant, Percentage of Total Proceeds from Equity Issuance Required The percentage of total proceeds from equity issuance required to be applied for the reduction of debt under a debt instrument. Accounts Receivable [Member] Lake Barrington Facility [Member] Information related to the Lake Barrington Facility. ctib_DebtInstrumentForbearanceFeeIfFullCashPaymentsReceived Debt Instrument, Forbearance Fee if Full Cash Payments Received The amount of forbearance fee if full cash payments are received for the debt instrument. ctib_DebtInstrumentIncreaseDecreaseInForbearanceFeeIfFullCashPaymentsReceived Debt Instrument, Increase (Decrease) in Forbearance Fee if Full Cash Payments Received The amount of increase (decrease) in forbearance fee if full cash payments are received for the debt instrument. us-gaap_IncreaseDecreaseInInventories Inventories Trading Symbol BCF on Series C Preferred Stock Adjustments to Additional Paid in Capital, Preferred Stock with Beneficial Conversion Feature Amount of increase (decrease) in additional paid in capital (APIC) resulting from recognition of preferred stock beneficial conversion feature. ctib_DebtInstrumentCovenantRequiredForbearanceReserve Debt Instrument, Covenant, Required Forbearance Reserve The amount of forbearance reserve required under the debt agreement. ctib_DebtInstrumentForbearanceFee Debt Instrument, Forbearance Fee The amount of forbearance fee under the debt instrument. Concentration Risk Benchmark [Axis] ctib_DebtInstrumentIncreaseDecreaseInForbearanceFeeIfEquityIssuanceOccurs Debt Instrument, Increase (Decrease) in Forbearance Fee if Equity Issuance Occurs The amount of increase (decrease) in the amount of forbearance fee for the debt instrument if equity issuance occurs. Concentration Risk Benchmark [Domain] ctib_DebtInstrumentForbearanceFeeIfEquityIssuanceOccurs Debt Instrument, Forbearance Fee if Equity Issuance Occurs The amount of forbearance fee if equity issuance occurs for the debt instrument. Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] Convertible Preferred Stock Issuance - conversion of debt Convertible Preferred Stock Issuance - conversion of debt (in shares) Amortization of beneficial conversion feature and deemed dividend on Series C Preferred stock The amount of amortization on beneficial conversion feature and deemed dividend on preferred stock. us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised Exercised/Issued (in shares) us-gaap_GainLossOnDispositionOfAssets Gain on sale of assets us-gaap_TableTextBlock Notes Tables us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity Line of Credit Facility, Maximum Borrowing Capacity Related Party [Axis] Related Party [Domain] Provision for losses on accounts receivable Granted (in shares) Line of Credit Facility, Lender [Domain] Convertible Preferred Stock Issuance - cash (in shares) Stock Issued During Period, Shares, New Issues (in shares) Lender Name [Axis] Selling us-gaap_LiabilitiesAndStockholdersEquity TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Convertible Preferred Stock Issuance - cash Stock Issued During Period, Value, New Issues UNITED STATES us-gaap_DisposalGroupIncludingDiscontinuedOperationAssetsNoncurrent TOTAL Non-Current Assets Accumulated deficit Accumulated other comprehensive loss NET Property, Plant, and Equipment us-gaap_DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipmentNoncurrent Debt Disclosure [Text Block] Other us-gaap_DisposalGroupIncludingDiscontinuedOperationOtherNoncurrentAssets us-gaap_InterestExpense Interest expense Change in assets and liabilities: us-gaap_DisclosureTextBlockAbstract Notes to Financial Statements us-gaap_InterestExpenseRelatedParty Interest Expense, Related Party Inventory Disclosure [Text Block] Subsequent Event [Member] us-gaap_OperatingLeaseLiabilityNoncurrent Operating Lease Liabilities Schedule of Inventory, Current [Table Text Block] us-gaap_OperatingLeaseLiability Operating Lease, Liability, Total Subsequent Event Type [Axis] Operating Lease Liabilities us-gaap_OperatingLeaseLiabilityCurrent Subsequent Event Type [Domain] Subsequent Events [Text Block] Operating lease right-of-use Operating Lease, Right-of-Use Asset us-gaap_DebtConversionConvertedInstrumentSharesIssued1 Debt Conversion, Converted Instrument, Shares Issued (in shares) Earnings Per Share, Policy [Policy Text Block] us-gaap_DebtConversionOriginalDebtAmount1 Debt Conversion, Original Debt, Amount Three Lines of Credit [Member] Represents three unique lines of credit. Debt Conversion Description [Axis] Debt Conversion, Name [Domain] Operating expenses: Provision for losses on inventories us-gaap_LesseeOperatingLeaseTermOfContract Lessee, Operating Lease, Term of Contract (Year) us-gaap_ConversionOfStockSharesConverted1 Conversion of Stock, Shares Converted (in shares) us-gaap_SharesIssuedPricePerShare Shares Issued, Price Per Share (in dollars per share) Stock Conversion Description [Axis] Conversion of Stock, Name [Domain] us-gaap_AssetsCurrent Total current assets Cash paid for deferred financing fees The amount of change in cash for deferred financing costs. Income Tax Receivable Treasury stock, shares (in shares) Assets of discontinued operations TOTAL Current Assets Common stock - no par value, 50,000,000 shares authorized, 5,930,408 and 5,827,304 shares issued and 5,886,750 and 5,783,646 shares outstanding at March 31, 2021 and December 31, 2020 respectively Other/Accrued Liabilities ctib_DisposalGroupIncludingDiscontinuedOperationOtherAndAccruedLiabilitiesAssetsCurrent Amount classified as other/accrued liabilities (assets) attributable to disposal group held for sale or disposed of, expected to be disposed of within one year or the normal operating cycle, if longer. PNC [Member] Information pertaining to PNC Bank, National Association. Adjustments to reconcile net loss to net cash (used in) provided by operating activities Fixed Charge Coverage Ratio Financial ratio that measures the entity's ability to pay all of its fixed charges or expenses with its income before interest and income taxes. Common stock, shares authorized (in shares) Inventory us-gaap_DisposalGroupIncludingDiscontinuedOperationInventoryCurrent PNC Agreements [Member] Information pertaining to the PNC Agreements. Common stock, shares issued (in shares) us-gaap_LesseeOperatingLeaseDiscountRate Lessee, Operating Lease, Discount Rate Prepaid & Other us-gaap_DisposalGroupIncludingDiscontinuedOperationPrepaidAndOtherAssetsCurrent Common stock, no par value (in dollars per share) Statistical Measurement [Domain] Maximum [Member] Minimum [Member] us-gaap_PaymentsForLegalSettlements Payments for Legal Settlements Other current assets Statistical Measurement [Axis] Litigation Case [Axis] Preferred stock, liquidation preference Litigation Case [Domain] Preferred stock Preferred Stock, Value, Issued, Ending Balance Preferred stock, shares issued (in shares) Cash payments for interest Prepaid expenses Preferred stock, par value (in dollars per share) Geographical [Axis] Geographical [Domain] Preferred stock, shares authorized (in shares) Inventories, net Total inventories us-gaap_PreferredStockParOrStatedValuePerShare Preferred Stock, Par or Stated Value Per Share (in dollars per share) Work in process Net Sales us-gaap_InventoryValuationReserves Allowance for excess quantities Foreign currency loss Finished goods In Transit Customer [Axis] Customer [Domain] us-gaap_PreferredStockDividendRatePerDollarAmount Preferred Stock, Dividend Rate, Per-Dollar-Amount (in dollars per share) Raw materials us-gaap_PreferredStockDividendRatePercentage Preferred Stock, Dividend Rate, Percentage Noncontrolling interest Receivable from related party Due from Related Parties, Current, Total Cash flows from operating activities: Statement [Line Items] us-gaap_NumberOfOperatingSegments Number of Operating Segments Accounts receivable ctib_ClassOfWarrantOrRightGrantedInPeriod Class of Warrant or Right, Granted in Period (in shares) The number of warrants or rights granted during period. ctib_ClassOfWarrantOrRightExercisedDuringPeriod Class of Warrant or Right, Exercised During Period (in shares) The number of warrants or rights exercised during period. Paid-in-capital AOCI Attributable to Parent [Member] Yunhong CTI, Ltd shareholders' equity: Board of Directors Chairman [Member] Other Expense us-gaap_NonoperatingIncomeExpense Total other expense, net Segment Reporting Disclosure [Text Block] Common stock issued for warrants exercised - cashless (in shares) Stock Issued During Period, Shares, Warrants Exercised (in shares) Number of shares of stock issued during the period from warrants exercised. Lease Agreement for a Building [Member] Represents information regarding a lease agreement for a building. Current assets: us-gaap_SaleOfStockPricePerShare Sale of Stock, Price Per Share (in dollars per share) Mezzanine equity, shares authorized (in shares) Mezzanine equity, shares issued (in shares) Mezzanine equity, shares outstanding (in shares) us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Mezzanine equity, par value (in dollars per share) ctib_OperatingLeasePaymentPerMonth Operating Lease, Payment Per Month Represents the monthly payment amount under an operating lease. Effect of exchange rate changes on cash us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect Net decrease in cash and cash equivalents us-gaap_NetCashProvidedByUsedInFinancingActivities Net cash provided by (used in) financing activities Sale of Stock [Axis] Mezzanine equity: Sale of Stock [Domain] us-gaap_OperatingIncomeLoss Income (Loss) from operations us-gaap_LiabilitiesOfDisposalGroupIncludingDiscontinuedOperation TOTAL Liabilities us-gaap_NetCashProvidedByUsedInOperatingActivities Net cash (used in) provided by operating activities Other (expense) income: us-gaap_NetCashProvidedByUsedInInvestingActivities Net cash used in investing activities us-gaap_GrossProfit Gross profit Cost of Sales Counterparty Name [Axis] Counterparty Name [Domain] us-gaap_DueToRelatedPartiesCurrentAndNoncurrent Due to Related Parties, Total Cash flows related to discontinued operations Liquidity and Going Concern [Text Block] The entire disclosure for liquidity and going concern. us-gaap_PaymentsOfStockIssuanceCosts Cash paid for stock issuance costs Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] Disposal Group Classification [Axis] Disposal Group Classification [Domain] Noncontrolling Interest [Member] Scenario [Domain] Forecast [Member] Retained Earnings [Member] Conversion of debt to Series A Preferred Treasury Stock [Member] Proceeds from issuance of preferred stock Proceeds from Issuance of Preferred Stock and Preference Stock Scenario [Axis] Additional Paid-in Capital [Member] us-gaap_DeferredGainOnSaleOfProperty TOTAL LIABILITIES Common Stock [Member] Preferred Stock [Member] Depreciation and amortization The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets, excluding the amortization of ROU asset. ctib_CumulativeNetLoss Cumulative Net Loss Represents the amount of cumulative net loss. Equity Components [Axis] Equity Component [Domain] ctib_IncreaseDecreaseInROULiability Change in ROU Liability The increase (decrease) during the period in ROU liability. us-gaap_LongTermDebt Long-term Debt, Total Benchmark Investments, Inc. v. Yunhong CTI Ltd [Member] Information related to Benchmark Investments, Inc. v. Yunhong CTI Ltd. us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) Loss from continuing operations before taxes us-gaap_ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) Comprehensive Income (Loss) Note [Text Block] us-gaap_LineOfCredit Long-term Line of Credit, Total ctib_DebtInstrumentCovenantRequiredProceedsFromEquityIssuance Debt Instrument, Covenant, Required Proceeds from Equity Issuance The amount in debt convenants of required proceeds from equity issuance under a debt instrument. us-gaap_RepaymentsOfRelatedPartyDebt Repayments of Related Party Debt us-gaap_DebtInstrumentCarryingAmount Long-term Debt, Gross Accounting Policies [Abstract] Basis of Accounting, Policy [Policy Text Block] Concentration Risk Disclosure [Text Block] Schedules of Concentration of Risk, by Risk Factor [Table Text Block] Entity Interactive Data Current Title of 12(b) Security Flexo Universal [Member] Represents the company's Mexican subsidiary. us-gaap_ProceedsFromIssuanceOfLongTermDebt Proceeds from issuance of long-term debt and revolving line of credit CTI Europe [Member] Represents the company's German subsidiary. Common Stock Outstanding [Member] Represents common stock outstanding. Discontinued Operations [Member] Other Non-Current us-gaap_DisposalGroupIncludingDiscontinuedOperationOtherNoncurrentLiabilities us-gaap_SharePrice Share Price (in dollars per share) us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) Diluted (in shares) us-gaap_AccountsPayableRelatedPartiesCurrentAndNoncurrent Accounts Payable, Related Parties Accrued Divided and Accretion on preferred stock ctib_PreferredStockConvertibleConversionPrice Preferred Stock, Convertible, Conversion Price (in dollars per share) The price per share of the conversion feature embedded in the preferred stock. Schwan Incorporated [Member] Partly owned by Gary Schwan the brother of the company's CEO John H Schwan. Trade Accounts Payable us-gaap_DisposalGroupIncludingDiscontinuedOperationAccountsPayableCurrent Notes payable affiliates - current portion Equity Financing Arrangement [Member] Represents the equity financing arrangement. Schedule of Fixed Charge Coverage Ratio [Table Text Block] Tabular disclosure of fixed charge coverage ratio. Statement [Table] Notes payable - officers, subordinated us-gaap_IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare Discontinued operations (in dollars per share) Statement of Financial Position [Abstract] us-gaap_EarningsPerShareDiluted Diluted income (loss) per common share (in dollars per share) Basic (in shares) Diluted income (loss) per common share us-gaap_IncomeLossFromContinuingOperationsPerDilutedShare Continuing operations (in dollars per share) us-gaap_IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare Discontinued operations (in dollars per share) Depreciation us-gaap_EarningsPerShareBasic Basic income (loss) per common share (in dollars per share) SG&A us-gaap_DisposalGroupIncludingDiscontinuedOperationGeneralAndAdministrativeExpense us-gaap_DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss Operating Loss us-gaap_IncomeLossFromContinuingOperationsPerBasicShare Continuing operations (in dollars per share) Net Sales us-gaap_DisposalGroupIncludingDiscontinuedOperationRevenue Basic income (loss) per common share Statement of Cash Flows [Abstract] Cost of Sales us-gaap_DisposalGroupIncludingDiscontinuedOperationCostsOfGoodsSold Gross Loss us-gaap_DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss ctib_RoyaltyMonthlyPayoutAmount Royalty Monthly Payout, Amount The amount of payout for the monthly royalty calculation. Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] Lease Contractual Term [Domain] Statement of Stockholders' Equity [Abstract] us-gaap_DisposalGroupIncludingDiscontinuedOperationConsideration Disposal Group, Including Discontinued Operation, Consideration Lease Contractual Term [Axis] Income Statement [Abstract] Disposal Groups, Including Discontinued Operations [Table Text Block] God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] Information related to God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (“Claimants”). Disposal Group Name [Axis] Disposal Group Name [Domain] Disputed Compensation Amounts by Claimants [Member] Information related to God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (“Claimants”) action against the reporting entity based on disputed compensation amounts over several years. Long-lived Assets by Geographic Areas [Table Text Block] us-gaap_RepaymentsOfDebt Repayment of debt and revolving line of credit Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] us-gaap_LiabilitiesNoncurrent Total long-term liabilities us-gaap_LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationNoncurrent TOTAL Non-Current Liabilities Cash flows from financing activities: us-gaap_DueToRelatedPartiesNoncurrent Due to Related Parties, Noncurrent, Total us-gaap_DividendsPayableCurrentAndNoncurrent Dividends Payable Series C Preferred Stock [Member] Series A Preferred Stock [Member] Series B Preferred Stock [Member] us-gaap_StockholdersEquity Total Yunhong CTI, Ltd Shareholders' Equity Amortization of ROU Asset Class of Stock [Axis] Class of Stock [Domain] Conversion of Related Party Debt to Equity [Member] Represents the conversion of related party debt to equity. EX-101.PRE 10 ctib-20210331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 11 R1.htm IDEA: XBRL DOCUMENT v3.21.1
Document And Entity Information - shares
3 Months Ended
Mar. 31, 2021
May 20, 2021
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)   5,886,750
Entity Shell Company false  
Document Type 10-Q  
Document Period End Date Mar. 31, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Title of 12(b) Security Common Stock, no par value per share  
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.21.1
Condensed Condensed Consolidated Balance Sheets - USD ($)
Mar. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 85,605 $ 429,457
Accounts receivable 7,241,714 5,013,195
Inventories, net 10,922,713 10,969,711
Prepaid expenses 733,891 589,149
Other current assets 1,341,046 1,352,419
Income Tax Receivable 196,747 403,074
Receivable from related party 100,000 100,000
Assets of discontinued operations 204,651 294,219
Total current assets 20,826,367 19,151,224
Property, plant and equipment:    
Machinery and equipment 19,824,315 19,833,903
Building 3,321,016 3,321,016
Office furniture and equipment 2,161,061 2,231,458
Intellectual property 783,179 783,179
Land 250,000 250,000
Leasehold improvements 147,416 407,476
Fixtures and equipment at customer locations 518,450 518,450
Projects under construction 71,206 71,206
Property, Plant and Equipment, Gross 27,076,643 27,416,688
Less : accumulated depreciation and amortization (25,233,487) (25,466,213)
Total property, plant and equipment, net 1,843,156 1,950,475
Other assets:    
Operating lease right-of-use 791,211 361,720
Other assets 86,474 87,552
Total other assets 877,685 449,272
TOTAL ASSETS 23,547,208 21,550,971
Current liabilities:    
Trade payables 6,118,676 5,504,442
Line of credit 6,746,160 5,363,340
Notes payable - current portion 3,687,100 3,913,666
Advance from Investor 1,500,000
Notes payable affiliates - current portion 8,045
Notes payable - officers, subordinated 1,140,709 1,123,769
Operating Lease Liabilities 633,447 317,591
Accrued liabilities 1,124,974 871,761
Liabilities of discontinued operations 115,343 184,577
Total current liabilities 19,566,409 18,787,191
Long-term liabilities:    
Operating Lease Liabilities 157,764 44,129
Total long-term liabilities 157,764 44,129
TOTAL LIABILITIES 19,724,173 18,831,320
Yunhong CTI, Ltd shareholders' equity:    
Common stock - no par value, 50,000,000 shares authorized, 5,930,408 and 5,827,304 shares issued and 5,886,750 and 5,783,646 shares outstanding at March 31, 2021 and December 31, 2020 respectively 14,537,828 14,537,828
Paid-in-capital 4,832,635 5,041,511
Accumulated deficit (14,804,490) (14,382,327)
Accumulated other comprehensive loss (5,901,379) (5,885,112)
Less: Treasury stock, 43,658 shares (160,784) (160,784)
Total Yunhong CTI, Ltd Shareholders' Equity 4,499,433 1,905,699
Noncontrolling interest (676,398) (718,212)
Total Shareholders' Equity 3,823,035 1,187,487
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY 23,547,208 21,550,971
Series B Preferred Stock [Member]    
Mezzanine equity:    
Series B Preferred stock -- no par value, 170,000 shares authorized 170,000 shares issued and outstanding at March 31, 2021 and December 31, 2020 1,532,164
Yunhong CTI, Ltd shareholders' equity:    
Preferred stock 1,612,707
Series A Preferred Stock [Member]    
Yunhong CTI, Ltd shareholders' equity:    
Preferred stock 2,854,583 2,754,583
Series C Preferred Stock [Member]    
Yunhong CTI, Ltd shareholders' equity:    
Preferred stock $ 1,528,333
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.21.1
Condensed Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)
$ / shares in Thousands
Mar. 31, 2021
Dec. 31, 2020
Common stock, no par value (in dollars per share) $ 0 $ 0
Common stock, shares authorized (in shares) 50,000,000 50,000,000
Common stock, shares issued (in shares) 5,930,408 5,827,304
Common stock, shares outstanding (in shares) 5,886,750 5,783,646
Treasury stock, shares (in shares) 43,658 43,658
Series B Preferred Stock [Member]    
Mezzanine equity, par value (in dollars per share) $ 0 $ 0
Mezzanine equity, shares authorized (in shares) 170,000 170,000
Mezzanine equity, shares issued (in shares) 170,000 170,000
Mezzanine equity, shares outstanding (in shares) 170,000 170,000
Preferred stock, par value (in dollars per share) $ 0 $ 0
Preferred stock, shares authorized (in shares) 170,000 170,000
Preferred stock, shares issued (in shares) 170,000 170,000
Preferred stock, shares outstanding (in shares) 170,000 170,000
Series A Preferred Stock [Member]    
Preferred stock, par value (in dollars per share) $ 0 $ 0
Preferred stock, shares authorized (in shares) 3,000,000 3,000,000
Preferred stock, shares issued (in shares) 500,000 500,000
Preferred stock, shares outstanding (in shares) 500,000 500,000
Preferred stock, liquidation preference $ 5,000,000 $ 0
Series C Preferred Stock [Member]    
Preferred stock, par value (in dollars per share) $ 0 $ 0
Preferred stock, shares authorized (in shares) 170,000 170,000
Preferred stock, shares issued (in shares) 170,000 0
Preferred stock, shares outstanding (in shares) 170,000 0
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.21.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net Sales $ 7,416,168 $ 7,067,501
Cost of Sales 6,322,975 5,586,059
Gross profit 1,093,193 1,481,442
Operating expenses:    
General and administrative 1,120,350 702,431
Selling 32,753 53,754
Advertising and marketing 106,566 120,829
Gain on sale of assets (25,684)
Total operating expenses 1,259,669 851,330
Income (Loss) from operations (166,476) 630,112
Other (expense) income:    
Interest expense (231,159) (441,177)
Other Expense (57,693) (42,334)
Foreign currency loss (26,383) (154,083)
Total other expense, net (315,235) (637,594)
Loss from continuing operations before taxes (481,711) (7,482)
Income tax expense
Loss from continuing operations (481,711) (7,482)
Gain (loss) from discontinued operations, net of tax 101,362 (486,637)
Net Loss (380,349) (494,119)
Less: Net (loss) income attributable to noncontrolling interest 41,814 144,577
Net loss attributable to Yunhong CTI, Ltd (422,163) (638,696)
Other Comprehensive Income (Loss)    
Foreign currency adjustment (16,267) (1,363,503)
Comprehensive Loss (396,616) (1,857,622)
Deemed Dividends on preferred stock and amortization of beneficial conversion feature (1,708,876) (2,380,944)
Net Loss attributable to Yunhong CTI Ltd Shareholders $ (2,131,039) $ (3,019,640)
Basic income (loss) per common share    
Continuing operations (in dollars per share) $ (0.38) $ (0.64)
Discontinued operations (in dollars per share) 0.02 (0.12)
Basic income (loss) per common share (in dollars per share) (0.36) (0.76)
Diluted income (loss) per common share    
Continuing operations (in dollars per share) (0.38) (0.64)
Discontinued operations (in dollars per share) 0.02 (0.12)
Diluted income (loss) per common share (in dollars per share) $ (0.36) $ (0.76)
Weighted average number of shares and equivalent shares of common stock outstanding:    
Basic (in shares) 5,854,861 3,973,093
Diluted (in shares) 5,854,861 3,973,093
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.21.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities:    
Net loss $ (380,349) $ (494,119)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities    
Depreciation and amortization 124,197 294,003
Amortization of ROU Asset 152,053 235,368
Amortization of deferred gain on sale/leaseback (25,684)
Provision for losses on accounts receivable 12,176 10,492
Provision for losses on inventories 3,770
Change in assets and liabilities:    
Accounts receivable (1,859,940) 797,188
Inventories (15,756) 241,530
Prepaid expenses and other assets (212,159) 133,257
Trade payables 752,689 (157,864)
Change in ROU Liability (152,053) (235,368)
Accrued liabilities 158,480 39,729
Net cash (used in) provided by operating activities (1,420,662) 842,302
Cash flows from investing activities:    
Purchases of property, plant and equipment (45,784) (18,526)
Net cash used in investing activities (45,784) (18,526)
Cash flows from financing activities:    
Repayment of debt and revolving line of credit (4,716,429)
Cash paid for stock issuance costs (570,160)
Cash paid for deferred financing fees (39,722)
Proceeds from issuance of long-term debt and revolving line of credit 1,557,444
Net cash provided by (used in) financing activities 1,557,444 (1,699,711)
Effect of exchange rate changes on cash (554,714) 190,942
Net decrease in cash and cash equivalents (463,716) (684,993)
Cash and cash equivalents at beginning of period 624,953 845,098
Supplemental disclosure of cash flow information and noncash investing and financing activities:    
Cash payments for interest 194,882 441,000
Accrued Divided and Accretion on preferred stock 208,876 53,000
Issuance of Placement agent warrants in connection with Series A Preferred offering 753,000
Lease right-of-use assets and lease liability 567,950
Amortization of beneficial conversion feature and deemed dividend on Series C Preferred stock 1,500,000 2,300,000
Stock Placement Agent [Member]    
Supplemental disclosure of cash flow information and noncash investing and financing activities:    
Stock issued 306,000
Conversion from Accounts Payable To Common Stock [Member]    
Supplemental disclosure of cash flow information and noncash investing and financing activities:    
Stock issued 250,000
Conversion of Accounts Payable to Convertible Preferred Stock [Member]    
Supplemental disclosure of cash flow information and noncash investing and financing activities:    
Conversion of debt to Series A Preferred 478,000
Series A Preferred Stock [Member]    
Cash flows from financing activities:    
Proceeds from issuance of preferred stock 3,626,600
Series B Preferred Stock [Member]    
Cash flows from financing activities:    
Cash and cash equivalents at end of period 161,237 160,105
Series C Preferred Stock [Member]    
Supplemental disclosure of cash flow information and noncash investing and financing activities:    
Stock issued $ 1,500,000
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.21.1
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Series B Preferred Stock [Member]    
Cash flows related to discontinued operations $ 75,632 $ 6,073
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.21.1
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
Series C Preferred Stock [Member]
Preferred Stock [Member]
Series C Preferred Stock [Member]
Additional Paid-in Capital [Member]
Series C Preferred Stock [Member]
Series B Preferred Stock [Member]
Preferred Stock [Member]
Series B Preferred Stock [Member]
Additional Paid-in Capital [Member]
Series B Preferred Stock [Member]
Series A Preferred Stock [Member]
Preferred Stock [Member]
Series A Preferred Stock [Member]
Additional Paid-in Capital [Member]
Series A 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)       752,927
Placement agent fees and issuance costs         (820,160)       (820,160)
Beneficial Conversion feature (BCF) on Preferred Stock         (2,328,473)     2,328,473  
Deemed Dividend on BCF of Preferred Stock         2,328,473     (2,328,473)  
Accrued Deemed Dividend         52,741     (52,741)  
Net Loss               (638,696)   (638,696)
Net Loss               (638,696)   (638,696)
Less: Net (loss) income attributable to noncontrolling interest                             144,577 144,577
Net loss                               (494,119)
Foreign Currency Translation               (1,363,503) (1,363,503)
Deemed Dividend on BCF of Series C Preferred Stock         $ 2,328,473     (2,328,473)  
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 4,287,473 (10,631,537) (6,712,315) $ (160,784) (712,260) 2,553,342
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
Common stock issued for warrants exercised - cashless (in shares)                               391,308
Balance (in shares) at Dec. 31, 2020             500,000     5,827,304       (43,658)    
Balance at Dec. 31, 2020             $ 2,754,583     $ 14,537,828 5,041,511 (14,382,327) (5,885,112) $ (160,784) (718,212) $ 1,187,487
Convertible Preferred Stock Issuance - cash (in shares) 170,000     170,000                        
Convertible Preferred Stock Issuance - cash $ 1,500,000   $ 1,500,000 $ 1,612,707   $ 1,612,707     $ 1,000,000              
Deemed Dividend on BCF of Preferred Stock                     (1,500,000)         (1,500,000)
Accrued Deemed Dividend $ 28,333 $ (28,333)     $ (33,611) $ (33,611) $ 100,000 $ (100,000)                
Net Loss                       (422,163)       (422,163)
Net Loss                       (422,163)       (422,163)
Less: Net (loss) income attributable to noncontrolling interest                             41,814 41,814
Net loss                               (380,349)
Foreign Currency Translation                         (16,267)     (16,267)
Common stock issued for warrants exercised - cashless (in shares)                   103,104            
BCF on Series C Preferred Stock     $ 1,500,000               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                     (46,932)         (46,932)
Balance (in shares) at Mar. 31, 2021 170,000     170,000     500,000     5,930,408       (43,658)    
Balance at Mar. 31, 2021 $ 1,528,333     $ 1,612,707     $ 2,854,583     $ 14,537,828 $ 4,832,635 $ (14,804,490) $ (5,901,379) $ (160,784) $ (676,398) $ 3,823,035
XML 18 R8.htm IDEA: XBRL DOCUMENT v3.21.1
Note 1 - Basis of Presentation
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
Note
1
- Basis of Presentation
 
The accompanying condensed (a) consolidated balance sheet as of
March 31, 2021
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
months ended
March 31, 2021
are
not
necessarily indicative of the results that
may
be expected for the fiscal year ending
December 31, 2021.
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, 2020.
 
Principles of consolidation and nature of operations:
 
Yunhong CTI Ltd, its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note
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”). Accordingly, the operations of this entity 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. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L.
 
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.
 
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, and assumptions used as inputs in the Black-Scholes option-pricing model. 
 
Earnings per share:
 
Basic (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period.
 
Diluted (loss) per share is computed by dividing the net loss by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period.
 
As of
March 31, 2021
and
2020,
shares to be issued upon the exercise of options and warrants aggregated
nil
 and
632,660,
respectively. The number of shares included in the determination of earnings on a diluted basis for the
three
months ended
March 31, 2021
and
2020
were
none
,
as doing so would have been anti-dilutive.
 
 
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, 2020.
There were
no
significant changes to these accounting policies during the
three
months ended
March 31, 2021.
 
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.
 
XML 19 R9.htm IDEA: XBRL DOCUMENT v3.21.1
Note 2 - Discontinued Operations
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Note
2
Discontinued Operations
 
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.
 
In
October 2019,
we determined that we would
not
renew our Trademark License Agreement with SC Johnson when it expired on
December 31, 2019.
Under this Agreement, we were licensed to manufacture and sell a line of vacuum sealing machines and pouches under the Ziploc® Brand Vacuum Sealer System. The terms of the Agreement included a run-off provision which allowed us to sell products under the Ziploc® trademark for
90
days after the end of the Agreement. Our exit of the Ziploc® product line is considered a strategic shift and had a major effect on our operations and financial results. Therefore, this product line has been presented as discontinued operations.
 
CTI Europe recorded a gain from discontinued operations, net of taxes of
$52,708
and
$317,000
for the
three
months ended
March 31, 2021
and
March 31, 2020,
respectively.
 
Our Ziploc product line recorded a loss from discontinued operations, net of taxes of
nil
and (
$804,000
) for the
three
months ended
March 31, 2021
and
March 31, 2020,
respectively.
 
 
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 Income for the
three
months ended:
 
   
March 31, 2021
   
March 31, 2020
 
Income Statement
 
 
 
 
 
 
 
 
Net Sales
   
79,833
     
1,057,058
 
Cost of Sales
   
126,906
     
1,174,045
 
                 
Gross Loss
 
$
(47,073
)  
$
(116,987
)
                 
                 
SG&A
   
92,266
     
524,550
 
                 
Operating Loss
 
$
(139,339
)  
$
(641,537
)
                 
Other Expense
   
9,963
     
13,220
 
                 
Total pretax loss from discontinued operations
 
$
(149,302
)
 
$
(654,757
)
                 
Gain from classification to held for sale
   
250,664
     
168,120
 
                 
Net Income (Loss) prior to non-controlling interest
 
$
101,362
   
$
(486,637
)
                 
Non-controlling Interest share of profit/loss
   
48,654
     
152,094
 
                 
Net Income (Loss)
 
$
52,708
   
$
(638,731
)
 
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.
Unaudited Consolidated Balance Sheet
 
   
March 31, 2021
   
December 31, 2020
 
Balance Sheet
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
Cash on hand and Banks
  $
75,632
    $
195,496
 
Accounts Receivable
   
29,398
     
117,687
 
Inventory
   
-
     
-
 
Prepaid & Other
   
60,633
     
62,275
 
                 
TOTAL Current Assets
 
 
165,663
   
 
375,458
 
                 
NET Property, Plant, and Equipment
 
 
6,445
   
 
7,471
 
                 
Other Assets
 
 
 
 
 
 
 
 
Operating lease right-of-use
   
-
     
129,411
 
Other
   
32,543
     
32,543
 
TOTAL Other Assets
 
 
32,543
   
 
161,954
 
TOTAL Non-Current Assets
 
 
38,988
   
 
169,425
 
                 
Valuation Allowance on Assets Held for Sale
 
 
-
   
 
(250,664
)
                 
TOTAL Assets
 
$
204,651
   
$
294,219
 
                 
Liabilities
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
Trade Accounts Payable
   
83,229
     
21,256
 
Operating Lease Liabilities - Current
   
-
     
93,514
 
Other/Accrued Liabilities
   
(3,271
)    
(2,796
)
TOTAL Current Liabilities
 
 
79,958
   
 
111,974
 
                 
Non-Current Liabilities
 
 
 
 
 
 
 
 
Operating Lease Liabilities - Non Current
   
-
     
35,897
 
Other Non-Current
   
35,385
     
36,706
 
TOTAL Non-Current Liabilities
 
 
35,385
   
 
72,603
 
                 
TOTAL Liabilities
 
$
115,343
   
$
184,577
 
 
The cash flows related to discontinued operations have
not
been segregated and are included in the Consolidated Statements of Cash Flows. The following table summarizes depreciation from discontinued operations for each of the periods presented:
 
   
Three Months Ended
 
   
March 31,
 
   
2021
   
2020
 
Depreciation
  $
710
    $
154,892
 
XML 20 R10.htm IDEA: XBRL DOCUMENT v3.21.1
Note 3 - Liquidity and Going Concern
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Liquidity and Going Concern [Text Block]
Note
3
Liquidity and Going Concern
 
The Company's financial statements are prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a cumulative net loss from inception to
March 31, 2021
of over
$14
million. The accompanying financial statements for the
three
months ended
March 31, 2021
have been prepared assuming the Company will continue as a going concern. The Company's cash resources from operations
may
be insufficient to meet its anticipated needs during the next
twelve
months. The Company will require additional financing to fund its future planned operations.
 
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 has impacted the Company's business operations to some extent and is expected to continue to do so and, in light of the effect of such pandemic on financial markets, these impacts
may
include reduced access to capital. The ability of the Company to continue as a going concern is 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 with PNC (see Note
4
). As of
March 2019,
October 2019
and
January 2020,
we entered into forbearance agreements with PNC. We encountered subsequent compliance failures with covenants during
2020
and we were out of compliance with the terms of our credit facility, as amended, as of
March 31, 2021. 
 
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,
consisting of
$2,000,000
in cash and a promissory note with a principal amount of
$1,500,000,
due and payable on
May 3, 2021 (
the “Purchaser Promissory Note”). Concurrently with the closing under the PSA, the Company and the Purchaser entered into a lease agreement pursuant to which the Company agreed to lease the Lake Barrington Facility from the Purchaser for a period of
ten
years. The annual base rent commences at
$500,000
for the
first
year of the term and escalates annually to
$652,386
during the last year of the term of the lease. As the decision to sell the Lake Barrington Facility was made in
April 2021,
the facility is
not
classified as held for sale as of
March 31, 2021. 
Concurrently with the entry into the PSA and the Lease, the Company entered into a Consent, Forbearance and Amendment
No.
6
to Revolving Credit, Term Loan and Security Agreement (the “Amendment Agreement”) with PNC for itself and for the other participant lenders thereunder (collectively, the “Lender”). Prior to entering into the Amendment Agreement, PNC had notified the Company that various events of default had occurred under the Loan Agreement (the “Existing Defaults”) and were continuing. Pursuant to the Amendment Agreement, the Lender consented to the transactions contemplated by the PSA and the Lease, as required under the Loan Agreement.  As a condition to the Amendment Agreement, the Company agreed that the full
$2,000,000
in cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the
$2,000,000
term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that
$1,500,000
in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under revolving credit advances made pursuant to the Loan Agreement (the “Revolving Loans”). Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to the Existing Event of Defaults under the Loan Agreement for a period ending on the earlier of
September 30, 2021,
the occurrence of a new event of default under the Loan Agreement, or the occurrence of a Termination Event (as defined therein). Additionally, certain additions and amendments to the Loan Agreement were set forth in the Amendment Agreement, including:
 
 
The Maximum Revolving Advance Amount is reduced from
$18,000,000
 to
$9,000,000;
 
The Termination Date of the Loan Agreement is revised from
December 14, 2022
to
December 31, 2021;
 
 
On or before
June 30, 2021,
or such later date as the Lender agrees in its sole discretion, the Company shall receive an equity investment of at least
$1,500,000
and apply
100%
of the proceeds to a reduction of the Revolving Credit Advance under the Loan Agreement (the “Equity Investment”);
 
On or before
August 15, 2021,
or such later date as the Lender agrees in its sole discretion, the Company shall deliver to Lender (i) a binding term sheet, in form and substance acceptable to Lender, from a financing source that provides for the refinance and payment in full, in cash, of the obligations owing under the Loan Agreement on or before
September 30, 2021,
or (ii) evidence, in form and substance satisfactory to the Lender, that certain equity holders of the Company have available and identifiable funds that are on deposit with a depository institution that are sufficient to pay in full, in cash, all of the Company obligations under the Loan Agreement on or before
September 30, 2021;
 
On or before
September 30, 2021,
the Company will cause all of the amounts owing under the Loan Agreement to be paid in full in cash;
 
The Forbearance Reserve (as defined in Amendment
No.
5
to the Loan Agreement) shall be increased from
$1,025,000
to
$2,525,000;
 
Effective
August 1, 2021,
accounts receivable from Wal-Mart Stores and its affiliates shall
no
longer be considered eligible receivables;
 
Modifications will be made to the budget, testing and variance provisions of the Loan Agreement.
 
In consideration for entering into the Loan Amendment, the Company agrees to pay the Lender a Forbearance Fee of
$1,000,000.
Provided, however, that, so long as
no
event of default under the Loan Agreement has occurred (including as a result of a failure of the Company to pay down the Revolving Loans by
$1,500,000
with the proceeds of the Purchaser Promissory Note, (i) if the Company consummates the Equity Investment by
June 30, 2021,
the Forbearance Fee shall be reduced by
$250,000,
to
$750,000,
and (ii) if the Company causes all of the obligations under the Loan Agreement to be paid in full, in cash, on or before
September 30, 2021,
the Forbearance Fee shall be reduced by an additional
$500,000,
to
$250,000.
 
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Note 4 - Debt
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Debt Disclosure [Text Block]
Note
4
- Debt
 
During
December 2017,
we terminated a prior credit arrangement and entered in new financing agreements (as amended to date, the “PNC Agreements”) with PNC Bank, National Association (“PNC”). The PNC Agreements, included a
$6
million term loan and a 
$9
million revolving credit facility, with a termination date of
December 2021.
 
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:
 
 
Negative Covenants
: Negative covenants under which we are prohibited from, or restricted in our ability to:
 
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
: Financial covenants we are required to meet including:
 
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 PNC Agreements provides for interest at varying rates in excess of the prime rate, depending on the level of senior debt to EBITDA over time.
 
Failure to comply with these covenants has caused us to pay a higher rate of interest (increased by
4%
pursuant to the PNC Agreements), and other potential penalties
may
impact the availability of the credit facility itself, and thus might negatively impact our ability to remain a going concern. As described above in this Note as well as in Note
3,
we remain out of compliance with the terms of this facility.
 
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
million, including accrued interest. This loan accrues interest at
6%,
is due on demand, and is subordinate to the PNC Agreements. During
January 2019,
Mr. Schwan converted
$600,000
of the note into approximately
181,000
shares of our common stock at the then market rate of
$3.32
per share. As a result of the conversion, the loan balance decreased to
$997,019
and Company and Mr. Schwan agreed to increase the interest rate to
6%.
 
The loan and interest payable to Mr. Schwan amounted to
$1,140,709
and
$1,123,769
as of
March 31, 2021
and
December 31, 2020,
respectively.
 
No
payments were made to Mr. Schwan since
2019.
Interest expense related to this loan amounted to
$17,000
and
$15,000
for the
three
months end
March 31, 2021
and
2020,
respectively.
 
During
2020,
Flexo replaced a
$260,000
line of credit with
three
lines of credit totaling
$260,000.
  Flexo's total debt instruments as of
March 31, 2021
amounted to
$1.8
million.  
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Note 5 - Stock-based Compensation; Changes in Equity
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
Note
5
- Shareholders' Equity 
 
 
Series A 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, President and Chief Executive Officer, Mr. Yubao Li, agreed to purchase, up to
500,000
shares of the Company's newly created shares of Series A Preferred Stock (“Series A Preferred”), with each share of Series A Preferred initially convertible into
ten
shares of the Company's common stock, at a purchase price of
$10.00
per share, for aggregate gross proceeds of
$5,000,000
(the “LF International Offering”). As permitted by the Purchase Agreement, the Company
may,
in its discretion issue up to an additional
200,000
shares of Series A Preferred for a purchase price of
$10.00
per share (the “Additional Shares Offering,” and collectively with the LF International Offering, the “Offering”). Approximately
$1
million of Series A Preferred has been sold as of
March 31, 2021,
including to an investor which converted an account receivable of
$478,000
owed to the investor by the Company in exchange for
48,200
shares of Series A Preferred. The Company completed several closings with LF International from
January 2020
through
June 2020.
The majority of the funds received reduced our bank debt. We issued a total of
400,000
shares of common stock to LF International and, pursuant to the LF Purchase Agreement, changed our name from CTI Industries Corporation to Yunhong CTI Ltd. LF International has the right to name
three
directors to serve on our Board. They are Mr. Yubao Li, our Chairman, Ms. Wan Zhang and Ms. Yaping Zhang.     
 
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
million as of the closing dates.  We recognized this BCF by allocating the intrinsic value of the conversion option, to additional paid-in capital, resulting in a discount on the Series A Preferred. As the Series A Preferred is immediately convertible, the Company accreted the discount on the date of issuance.  The accretion was recognized as dividend equivalents.  Holders of the Series A Preferred will be entitled to receive quarterly dividends at the annual rate of
8%
of the stated value (
$10
per share). Such dividends
may
be paid in cash or in shares of common stock at the Company's discretion.  In the
three
months ending
March 31 2021
and
2020
the Company accrued
$100,000
and
$52,741,
respectively, of these dividends. 
 
 
 
Series B Preferred
 
In
November 2020,
we issued
170,000
shares of Series B Preferred for an aggregate purchase price of
$1,500,000.
The Series B Preferred have an initial stated value of
$10.00
per share and liquidation preference over common stock. The Series B Preferred is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of
$1.00.
The Series B Preferred accrues dividends at a rate of
8
percent per annum, payable at our election either in cash or shares of the Company's common stock. Initially, the Series B Preferred, in whole or part, was redeemable at the option of the holder (but
not
mandatorily redeemable) at any time on or after
November 30, 2021
for the stated value, plus any accrued and unpaid dividends and thus was classified as mezzanine equity and initially recognized at fair value of
$1.5
million (the proceeds on the date of issuance). In
March 2021,
the terms of the Series B Preferred were modified to eliminate the ability of the holder to redeem the Series B Preferred. As the Series B Preferred is
no
longer redeemable, the Series B Preferred is
not
classified as mezzanine equity as of
March 31, 2021.  
As a result, the carrying value as of
March 31, 2021
amounted to
$1,612,707
which consists of
$1,500,000
original carrying value,
$47,206
accrued dividends and
$65,500
accretion (
$46,937
which occurred in
2021
).
 
Series C Preferred
 
In
January 2021
we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.  We issued
170,000
shares of Series C Preferred for an aggregate purchase price of
$1,500,000.
The Series C Preferred have an initial stated value of
$10.00
per share and liquidation preference over common stock. The Series C Preferred is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of
$1.00.
The Series C Preferred accrues dividends at a rate of
8
percent per annum, payable at our election either in cash or shares of the Company's common stock. The issuance of the Series C 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 C Preferred was convertible exceeded the allocated purchase price of the Series C Preferred at the closing dates by greater than the allocated purchase price. Therefore, the BCF was the purchase price of the Series C Preferred (
$1.5
million) and was allocated to Additional Paid-in Capital, resulting in a discount on the Series C Preferred Stock. As the Series C Preferred Stock is immediately convertible, the Company accreted the discount on the date of issuance.  The accretion to the carrying value of the Series C Preferred is treated as a deemed dividend, recorded as a charge to Additional Paid in Capital and deducted in computing earnings per share.
 
 
 
Warrants
In connection with the Series A Offering, in
2020
the Company issued
792,660
warrants to purchase
792,660
shares of the Company's common stock for
$1
per share. During
2020,
597,500
warrants were exercised in cash-less exchange for
391,308
shares of the Company's common stock.  In
January
and
February 2021,
the remaining
195,160
warrants were exercised in a cash-less exchange for
103,104
shares of the Company's common stock.
 
The Company has applied the Black-Scholes model to value stock-based awards. That model incorporates various assumptions in the valuation of stock-based awards relating to the risk-free rate of interest to be applied, the estimated dividend yield and expected volatility of the Company's Common Stock. The risk-free rate of interest is the U.S. Treasury yield curve for periods within the expected term of the option at the time of grant. The expected volatility is based on historical volatility of the Company's Common Stock.
 
The valuation assumptions we have applied to determine the value of warrants granted in
2020
were as follows:
 
Historical stock price volatility: The Company used the weekly closing price to calculate historical annual volatility.
 
Risk-free interest rate: The Company bases the risk-free interest rate on the rate payable on US treasury securities with a similar maturity in effect at the time of the grant, which was a range from
.42%
-
1.65%.
 
Expected life: The expected life of the warrants represents the period of time warrants were expected to be outstanding. The Company used an expected life of
5
 years.
 
Dividend yield: The estimate for dividend yield is
0%,
as the Company did
not
issue dividends during
2020
or
2019
and does
not
expect to do so in the foreseeable future.
 
Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements.
 
A summary of the Company's stock warrant activity is as follows:
 
   
Shares under
Option
   
Weighted
Average
Exercise
Price
 
Balance at December 31, 2020
   
195,160
    $
1.00
 
Granted
   
-
     
1.00
 
Cancelled/Expired
   
-
     
1.00
 
Exercised/Issued
   
(195,160
)
   
1.00
 
Outstanding at March 31, 2021
   
-
     
1.00
 
                 
Exercisable at March 31, 2021
   
-
    $
1.00
 
 
XML 23 R13.htm IDEA: XBRL DOCUMENT v3.21.1
Note 6 - Legal Proceedings
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Legal Matters and Contingencies [Text Block]
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.
 
In
July, 2017,
God's Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (“Claimants”) filed an action against the Company based on disputed compensation amounts over several years. This action was resolved by mutual agreement between the parties during
January 2019.
Mr. Page received
20,000
shares of CTI common stock,
$5,000
in cash, and a minimum payout in his monthly royalty calculation of
$7,667
beginning
March 1, 2019
and ending
August 1, 2021.
The balance remaining as of
March 31, 2021
and
December 31, 2020
amounted to
$38,325
and
$53,659,
respectively.
 
FedEx Trade Networks Transport and Brokerage Inc. v. CTI Industries Corp., Case
No.
20
L
46,
was filed on
January 27, 2020
in the Circuit Court of the
19th
Judicial Circuit, Lake County, Illinois.  The complaint for breach of contract sought
$163,964.75
in damages, plus interest and court costs. On
October 15, 2020,
the case was dismissed with leave to reinstate pursuant to settlement. The settlement calls for the payment of
$100,400.00
in monthly installments of
$10,000
per month for a period of
ten
(
10
) months and with the last payment being in the amount of
$10,400.
The
first
payment came due and was made on
October 30, 2020,
and payments have been made monthly. The balance remaining as of
March 31, 2021
and
December 31, 2020
amounted to
$40,400
and
$70,400,
respectively.
 
Airgas USA, LLC v. CTI Industries Corp., Case
No.
01
-
20
-
0014
-
7852
was filed with the American Arbitration Association on or about
September 8, 2020.
The claim seeks
$212,000,
plus interest, attorneys' fees and costs for breach of contract. Claimant agreed to give CTI an extension to respond to the claim so the parties could attempt to resolve. On
February 10, 2021,
Airgas accepted CTI's offer to pay
$125,000
over
10
months. Airgas agreed to the settlement in
March
of
2021.
 The liability recorded by the Company as of
March 31, 2021
and
December 31, 2020
amounted to
$125,000
,
respectively.
 
On
October 19, 2020,
Jules and Associates, Inc. sent CTI a demand letter related to the lease of certain equipment. The letter demanded
$65,846.99
for alleged past due amounts under the lease as well as a return of the equipment. Discussions regarding the return of the equipment are ongoing and
no
lawsuit has been filed. On
April 5, 2020
Jules & Associates, Inc. filed and served on CTI a demand for arbitration with JAMS related to the lease of certain equipment.  The demand requests
$98,244.55
for alleged past due amounts under the lease as well as a return of the equipment or its fair market value. The Company accrued the
$0.1
million in committed costs under this settlement in its
March 31, 2021
financial statements. The liability recorded by the Company as of
March 31, 2021
and
December 31, 2020
amounted to
$91,298
and
$75,187,
respectively.
 
On
October 19, 2020,
Redwood Multimodal sent CTI a demand for the withholding of payment in the amount
$98,960.88
for loads brokered by Redwood. Settlement discussions are ongoing and
no
lawsuit has been filed. The Company accrued the
$0.1
million in committed costs under this settlement in its
March 31, 2021 
financial statements. The liability recorded by the Company as of
March 31, 2021
and
December 31, 2020
amounted to
$98,961
.
 
Benchmark Investments, Inc. v. Yunhong CTI Ltd filed a case in the United States District Court for the Southern District of New York on
March 16, 2021
and served on CTI on
March 31, 2021. 
CTI has through
June 4, 2021 
to file its response to the complaint.  The complaint seeks damages in excess of
$500,000.
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Note 7 - Other Comprehensive Income
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]
Note
7
- Other Comprehensive Income
 
In the
three
months ended
March 31, 2021
and
2020,
the Company incurred other comprehensive income (loss) of approximately
$32,000
and (
$1,364,000
), respectively, from foreign currency translation adjustments.  The main contributing factor for the large other comprehensive loss in the
three
months ended
March 31, 2020
was the sudden
25%
decline in the valuation of the Mexican peso related to the COVID-
19
pandemic and the resulting large-scale, rapid impacts to the world economy.  The Mexican peso has since generally stabilized which has afforded the Company a small income for
three
months ended
March 31, 2021.  
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Note 8 - Geographic Segment Data
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
8
- Geographic Segment Data
 
The Company has determined that it operates primarily in
one
business segment that designs, manufactures, and distributes film and film related products for use in packaging, storage, and novelty balloon products. The Company operates in foreign and domestic regions. Information about the Company's continuing operations by geographic area is as follows:
 
   
Net Sales to Outside Customers
 
   
For the Three Months Ended
 
   
March 31,
 
   
2021
   
2020
 
                 
United States
  $
6,599,000
    $
5,426,000
 
Mexico
   
817,000
     
1,642,000
 
                 
    $
7,416,000
    $
7,068,000
 
 
   
Total Assets at
 
   
March 31,
   
December 31,
 
   
2021
   
2020
 
                 
United States
 
$
15,836,000
   
$
12,459,000
 
Mexico
   
7,506,000
     
8,798,000
 
Assets Held for Sale International Subsidiaries
   
205,000
     
294,000
 
                 
   
$
23,547,000
   
$
21,551,000
 
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Note 9 - Inventories, Net of Continuing Operations
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Inventory Disclosure [Text Block]
Note
9
-
Inventories, Net of Continuing Operations
 
   
March 31,
2021
   
December 31,
2020
 
Raw materials
  $
1,218,000
    $
1,177,000
 
Work in process
   
2,979,000
     
2,799,000
 
Finished goods
   
6,890,000
     
7,224,000
 
In Transit
   
86,000
     
88,000
 
Allowance for excess quantities
   
(250,000
)
   
(318,000
)
Total inventories
  $
10,923,000
    $
10,970,000
 
XML 27 R17.htm IDEA: XBRL DOCUMENT v3.21.1
Note 10 - Concentration of Credit Risk
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
Note
10
- 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
months ended
March 31, 2021
and
2020,
there was
one
customer whose purchases represented more than
10%
of the Company's consolidated net sales. Sales to this customer for the
three
months ended
March 31, 2021
and
2020
are as follows:
 
   
Three Months Ended
   
Three Months Ended
 
   
March 31, 2021
   
March 31, 2020
 
Customer
 
Net Sales
   
% of Net
Sales
   
Net Sales
   
% of Net
Sales
 
Customer A
  $
3,991,000
     
54
%
  $
3,222,000
     
46
%
 
As of
March 31, 2021,
the total amounts owed to the Company by this customer were approximately
$2,385,000
or
33%
of the Company's consolidated net accounts receivable. The amounts owed at
March 31, 2020
by this customer was approximately
$2,097,000
or
29%
of the Company's consolidated net accounts receivable.
XML 28 R18.htm IDEA: XBRL DOCUMENT v3.21.1
Note 11 - Related Party Transactions
3 Months Ended
Mar. 31, 2021
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,
is the brother of Gary Schwan,
one
of the owners of Schwan Incorporated, which provides building maintenance services to the Company. The Company made payments to Schwan Incorporated of approximately
$31,000
and
none
during the
three
months ended
March 31, 2021
and
2020,
respectively. As of
March 31, 2021
the payable balance amounted to
nil.
 Jana M. Schwan, Chief Operating Officer of the Company, is the daughter of John H. Schwan. 
 
During the period from
January 2003
to the present, John H. Schwan has made loans to the Company which had outstanding balances of
$1,140,709
and
$1,123,769
as of
March 31, 2021
and
December 31, 2020,
respectively. 
No
payments were made to Mr. Schwan since
2019.
Interest expense related to this loan amounted to
$17,000
and
$15,000
for the
three
months end
March 31, 2021
and
2020,
respectively.
 
Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of
March 31, 2021
and
2020
include loans by shareholders to Flexo Universal totaling
nil
and
$9,000,
respectively.
 
On
July 1, 2019,
the Company deconsolidated Clever, and as result the Company recorded a note receivable of
$1.3
million. One of owners of Clever is John Schwan from above. In
2020,
the Company had reserved
$1,277,000
of this receivable and as a result the balance as of
December 31, 2020
and
March 31, 2021
amounted to
$100,000
.
 
In
January 2021
we entered into an agreement with a related party, LF International Pte. Ltd. which is controlled by the Chairman of the Board of Directors Mr. Yubao Li, to purchase shares of Series C Preferred stock.  We issued
170,000
shares of Series C Preferred for an aggregate purchase price of
$1,500,000.
  Additional details regarding the transaction are discussed in Note
5.
  
XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.1
Note 12 - Derivative Instruments; Fair Value
3 Months Ended
Mar. 31, 2021
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
enter into interest rate swaps to fix the interest rate on a portion of our variable interest rate debt to reduce the potential volatility in our interest expense that would otherwise result from changes in market interest rates. Our derivative instruments are recorded at fair value and are included in accrued liabilities of our consolidated balance sheet. Our accounting policies for these instruments are based on whether they meet our criteria for designation as hedging transactions, which include the instrument's effectiveness, risk reduction and, in most cases, a
one
-to-
one
matching of the derivative instrument to our underlying transaction. As of
March 31, 2021,
we had
no
such instrument.
XML 30 R20.htm IDEA: XBRL DOCUMENT v3.21.1
Note 13 - Leases
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]
Note
13
-
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 are
$38,000.
  The Company made a policy election to
not
recognize right of use assets and lease liabilities that arise from leases with an initial term of
twelve
months or less on the Consolidated Balance Sheets.   However, the Company recognized these lease payments in the Consolidated Statement of Operations on a straight-line basis over the lease term and variable lease payments in the period in which the expense was incurred. This lease terminated during
2021
and was replaced with a new lease. In
March 2021,
the Company entered into a lease agreement for a building through
September 2022.
The monthly lease payments are
$34,000.
  As a result of this new lease, in
March 2021,
the Company recorded a right of use asset of
$567,950
and a related operating lease liability and used the incremental borrowing rate of
11%.
 
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.21.1
Note 14 - Subsequent Events
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Subsequent Events [Text Block]
Note
14
 
- Subsequent Events
 
The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Other than the items discussed in Note
3
related to the
April 23, 2021
Purchase and Sale Agreement ("PSA") and related lease and note payable, there were
no
subsequent events that required recognition or disclosure.
 
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.21.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Principles of consolidation and nature of operations:
 
Yunhong CTI Ltd, its Mexican subsidiary (Flexo Universal, S. de R.L. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Supply, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products. As discussed in Note
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”). Accordingly, the operations of this entity 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. and its majority owned subsidiaries, Flexo Universal and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L.
 
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.
Use of Estimates, Policy [Policy Text Block]
Use of estimates:
 
In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the amounts reported of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period in the financial statements and accompanying notes. Actual results
may
differ from those estimates. The Company's significant estimates include valuation allowances for doubtful accounts and inventory valuation, and assumptions used as inputs in the Black-Scholes option-pricing model. 
Earnings Per Share, Policy [Policy Text Block]
Earnings per share:
 
Basic (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period.
 
Diluted (loss) per share is computed by dividing the net loss by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period.
 
As of
March 31, 2021
and
2020,
shares to be issued upon the exercise of options and warrants aggregated
nil
 and
632,660,
respectively. The number of shares included in the determination of earnings on a diluted basis for the
three
months ended
March 31, 2021
and
2020
were
none
,
as doing so would have been anti-dilutive.
New Accounting Pronouncements, Policy [Policy Text Block]
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, 2020.
There were
no
significant changes to these accounting policies during the
three
months ended
March 31, 2021.
 
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.
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.21.1
Note 2 - Discontinued Operations (Tables)
3 Months Ended
Mar. 31, 2021
Notes Tables  
Disposal Groups, Including Discontinued Operations [Table Text Block]
   
March 31, 2021
   
March 31, 2020
 
Income Statement
 
 
 
 
 
 
 
 
Net Sales
   
79,833
     
1,057,058
 
Cost of Sales
   
126,906
     
1,174,045
 
                 
Gross Loss
 
$
(47,073
)  
$
(116,987
)
                 
                 
SG&A
   
92,266
     
524,550
 
                 
Operating Loss
 
$
(139,339
)  
$
(641,537
)
                 
Other Expense
   
9,963
     
13,220
 
                 
Total pretax loss from discontinued operations
 
$
(149,302
)
 
$
(654,757
)
                 
Gain from classification to held for sale
   
250,664
     
168,120
 
                 
Net Income (Loss) prior to non-controlling interest
 
$
101,362
   
$
(486,637
)
                 
Non-controlling Interest share of profit/loss
   
48,654
     
152,094
 
                 
Net Income (Loss)
 
$
52,708
   
$
(638,731
)
   
March 31, 2021
   
December 31, 2020
 
Balance Sheet
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
Cash on hand and Banks
  $
75,632
    $
195,496
 
Accounts Receivable
   
29,398
     
117,687
 
Inventory
   
-
     
-
 
Prepaid & Other
   
60,633
     
62,275
 
                 
TOTAL Current Assets
 
 
165,663
   
 
375,458
 
                 
NET Property, Plant, and Equipment
 
 
6,445
   
 
7,471
 
                 
Other Assets
 
 
 
 
 
 
 
 
Operating lease right-of-use
   
-
     
129,411
 
Other
   
32,543
     
32,543
 
TOTAL Other Assets
 
 
32,543
   
 
161,954
 
TOTAL Non-Current Assets
 
 
38,988
   
 
169,425
 
                 
Valuation Allowance on Assets Held for Sale
 
 
-
   
 
(250,664
)
                 
TOTAL Assets
 
$
204,651
   
$
294,219
 
                 
Liabilities
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
Trade Accounts Payable
   
83,229
     
21,256
 
Operating Lease Liabilities - Current
   
-
     
93,514
 
Other/Accrued Liabilities
   
(3,271
)    
(2,796
)
TOTAL Current Liabilities
 
 
79,958
   
 
111,974
 
                 
Non-Current Liabilities
 
 
 
 
 
 
 
 
Operating Lease Liabilities - Non Current
   
-
     
35,897
 
Other Non-Current
   
35,385
     
36,706
 
TOTAL Non-Current Liabilities
 
 
35,385
   
 
72,603
 
                 
TOTAL Liabilities
 
$
115,343
   
$
184,577
 
   
Three Months Ended
 
   
March 31,
 
   
2021
   
2020
 
Depreciation
  $
710
    $
154,892
 
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.21.1
Note 4 - Debt (Tables)
3 Months Ended
Mar. 31, 2021
Notes Tables  
Schedule of Fixed Charge Coverage Ratio [Table Text Block]
Fiscal Quarter Ratio      
       
March 31, 2020 
0.75
to
1.00
June 30, 2020
0.85
to
1.00
September 30, 2020
0.95
to
1.00
December 31, 2020
1.05
to
1.00
March 31, 2021 and thereafter
1.15
to
1.00
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.21.1
Note 5 - Stock-based Compensation; Changes in Equity (Tables)
3 Months Ended
Mar. 31, 2021
Notes Tables  
Share-based Payment Arrangement, Activity [Table Text Block]
   
Shares under
Option
   
Weighted
Average
Exercise
Price
 
Balance at December 31, 2020
   
195,160
    $
1.00
 
Granted
   
-
     
1.00
 
Cancelled/Expired
   
-
     
1.00
 
Exercised/Issued
   
(195,160
)
   
1.00
 
Outstanding at March 31, 2021
   
-
     
1.00
 
                 
Exercisable at March 31, 2021
   
-
    $
1.00
 
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.21.1
Note 8 - Geographic Segment Data (Tables)
3 Months Ended
Mar. 31, 2021
Notes Tables  
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]
   
Net Sales to Outside Customers
 
   
For the Three Months Ended
 
   
March 31,
 
   
2021
   
2020
 
                 
United States
  $
6,599,000
    $
5,426,000
 
Mexico
   
817,000
     
1,642,000
 
                 
    $
7,416,000
    $
7,068,000
 
Long-lived Assets by Geographic Areas [Table Text Block]
   
Total Assets at
 
   
March 31,
   
December 31,
 
   
2021
   
2020
 
                 
United States
 
$
15,836,000
   
$
12,459,000
 
Mexico
   
7,506,000
     
8,798,000
 
Assets Held for Sale International Subsidiaries
   
205,000
     
294,000
 
                 
   
$
23,547,000
   
$
21,551,000
 
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.21.1
Note 9 - Inventories, Net of Continuing Operations (Tables)
3 Months Ended
Mar. 31, 2021
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
   
March 31,
2021
   
December 31,
2020
 
Raw materials
  $
1,218,000
    $
1,177,000
 
Work in process
   
2,979,000
     
2,799,000
 
Finished goods
   
6,890,000
     
7,224,000
 
In Transit
   
86,000
     
88,000
 
Allowance for excess quantities
   
(250,000
)
   
(318,000
)
Total inventories
  $
10,923,000
    $
10,970,000
 
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.21.1
Note 10 - Concentration of Credit Risk (Tables)
3 Months Ended
Mar. 31, 2021
Notes Tables  
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]
   
Three Months Ended
   
Three Months Ended
 
   
March 31, 2021
   
March 31, 2020
 
Customer
 
Net Sales
   
% of Net
Sales
   
Net Sales
   
% of Net
Sales
 
Customer A
  $
3,991,000
     
54
%
  $
3,222,000
     
46
%
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.21.1
Note 1 - Basis of Presentation (Details Textual) - shares
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Number of Shares Issuable Upon the Exercise of Options and Warrants (in shares) 0 632,660
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 0 0
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.21.1
Note 2 - Discontinued Operations (Details Textual) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total $ 101,362 $ (486,637)
CTI Europe [Member]    
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total 52,708 317,000
Ziploc Product Line [Member] | Discontinued Operations [Member]    
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total $ 0 $ (804,000)
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.21.1
Note 2 - Discontinued Operations - Summarized Discontinued Operatings Financial Information (Details) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Net Income (Loss) prior to non-controlling interest $ 101,362 $ (486,637)  
TOTAL Current Assets 204,651   $ 294,219
TOTAL Assets 205,000   294,000
TOTAL Current Liabilities 115,343   184,577
CTI Balloons and CTI Europe [Member]      
Net Sales 79,833 1,057,058  
Cost of Sales 126,906 1,174,045  
Gross Loss (47,073) (116,987)  
SG&A 92,266 524,550  
Operating Loss (139,339) (641,537)  
Other Expense 9,963 13,220  
Total pretax loss from discontinued operations (149,302) (654,757)  
Gain from classification to held for sale 250,664 168,120  
Net Income (Loss) prior to non-controlling interest 101,362 (486,637)  
Non-controlling Interest share of profit/loss 48,654 152,094  
Net Income (Loss) 52,708 (638,731)  
Cash on hand and Banks 75,632   195,496
Accounts Receivable 29,398   117,687
Inventory  
Prepaid & Other 60,633   62,275
TOTAL Current Assets 165,663   375,458
NET Property, Plant, and Equipment 6,445   7,471
Operating lease right-of-use   129,411
Other 32,543   32,543
TOTAL Other Assets 32,543   161,954
TOTAL Non-Current Assets 38,988   169,425
Valuation Allowance on Assets Held for Sale   (250,664)
TOTAL Assets 204,651   294,219
Trade Accounts Payable 83,229   21,256
Operating Lease Liabilities - Current   93,514
Other/Accrued Liabilities (3,271)   (2,796)
TOTAL Current Liabilities 79,958   111,974
Operating Lease Liabilities - Non Current   35,897
Other Non-Current 35,385   36,706
TOTAL Non-Current Liabilities 35,385   72,603
TOTAL Liabilities 115,343   $ 184,577
Depreciation $ 710 $ 154,892  
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.21.1
Note 3 - Liquidity and Going Concern (Details Textual) - USD ($)
Apr. 23, 2021
Apr. 22, 2021
Mar. 31, 2021
Dec. 31, 2017
Cumulative Net Loss     $ (14,000,000)  
PNC [Member] | PNC Agreements [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility, Maximum Borrowing Capacity       $ 18,000,000
Subsequent Event [Member] | PNC [Member] | PNC Agreements [Member]        
Debt Instrument, Covenant, Required Forbearance Reserve $ 2,525,000 $ 1,025,000    
Debt Instrument, Forbearance Fee 1,000,000      
Debt Instrument, Increase (Decrease) in Forbearance Fee if Equity Issuance Occurs (250,000)      
Debt Instrument, Forbearance Fee if Equity Issuance Occurs 750,000      
Debt Instrument, Increase (Decrease) in Forbearance Fee if Full Cash Payments Received (500,000)      
Debt Instrument, Forbearance Fee if Full Cash Payments Received 250,000      
Subsequent Event [Member] | PNC [Member] | PNC Agreements [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility, Maximum Borrowing Capacity 9,000,000      
Debt Instrument, Covenant, Required Proceeds from Equity Issuance $ 1,500,000      
Debt Instrument, Covenant, Percentage of Total Proceeds from Equity Issuance Required 100.00%      
Subsequent Event [Member] | PNC [Member] | PNC Agreements [Member] | Term Loan [Member]        
Long-term Debt, Total $ 2,000,000      
Subsequent Event [Member] | Lake Barrington Facility Lease [Member]        
Lessee, Operating Lease, Term of Contract (Year) 10 years      
Lessee, Operating Lease, Annual Base Rent on First Year $ 500,000      
Lessee, Operating Lease, Annual Base Rent on Last Year 652,386      
Lake Barrington Facility [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Subsequent Event [Member]        
Disposal Group, Including Discontinued Operation, Consideration 3,500,000      
Proceeds from Sale of Buildings 2,000,000      
Financing Receivable, before Allowance for Credit Loss, Total $ 1,500,000      
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.21.1
Note 4 - Debt (Details Textual) - USD ($)
3 Months Ended 12 Months Ended
Jan. 01, 2019
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Apr. 23, 2021
Dec. 31, 2018
Dec. 31, 2017
Due to Related Parties, Noncurrent, Total   $ 1,140,709   $ 1,123,769        
Share Price (in dollars per share) $ 3.32              
Flexo Universal [Member]                
Long-term Debt, Total       1,800,000        
Line of Credit [Member] | Flexo Universal [Member]                
Extinguishment of Debt, Amount       260,000        
Conversion of Related Party Debt to Equity [Member]                
Debt Conversion, Original Debt, Amount $ 600,000              
Debt Conversion, Converted Instrument, Shares Issued (in shares) 181,000              
John H Schwan [Member]                
Due to Related Parties, Total   1,140,709   1,123,769        
Promissory Note [Member] | John H Schwan [Member]                
Due to Related Parties, Noncurrent, Total $ 997,019           $ 1,600,000  
Debt Instrument, Interest Rate, Stated Percentage 6.00%           6.00%  
Repayments of Related Party Debt   0     $ 0      
Interest Expense, Related Party   $ 17,000 $ 15,000          
Three Lines of Credit [Member] | Flexo Universal [Member]                
Long-term Line of Credit, Total       $ 260,000        
PNC [Member] | PNC Agreements [Member]                
Debt Instrument, Interest Rate, Increase (Decrease)   4.00%            
PNC [Member] | PNC Agreements [Member] | Revolving Credit Facility [Member]                
Line of Credit Facility, Maximum Borrowing Capacity               $ 18,000,000
PNC [Member] | PNC Agreements [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member]                
Line of Credit Facility, Maximum Borrowing Capacity           $ 9,000,000    
PNC [Member] | PNC Agreements [Member] | Term Loan [Member] | Subsequent Event [Member]                
Debt Instrument, Face Amount           6,000,000    
Long-term Debt, Total           $ 2,000,000    
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.21.1
Note 4 - Debt - Fixed Charge Coverage Ratio (Details) - Maximum [Member]
3 Months Ended 9 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Fixed Charge Coverage Ratio 1.05 0.95 0.85 0.75  
Forecast [Member]          
Fixed Charge Coverage Ratio         1.15
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.21.1
Note 5 - Stock-based Compensation; Changes in Equity (Details Textual) - USD ($)
1 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended 12 Months Ended
Jun. 05, 2020
Apr. 13, 2020
Apr. 01, 2020
Feb. 28, 2021
Jan. 31, 2021
Nov. 30, 2020
Mar. 31, 2021
Mar. 31, 2020
Mar. 31, 2021
Jun. 30, 2020
Dec. 31, 2020
Stock Issued During Period, Value, New Issues               $ 3,626,600      
Adjustments to Additional Paid in Capital, Preferred Stock with Beneficial Conversion Feature             $ 1,500,000        
Stock Issued During Period, Shares, Warrants Exercised (in shares)                     391,308
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year)                     5 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate                     0.00%
Minimum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate                     0.42%
Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate                     1.65%
Series A Preferred Stock [Member]                      
Proceeds from Issuance of Preferred Stock and Preference Stock             3,626,600      
Stock Issued During Period, Value, New Issues             1,000,000        
Preferred Stock Redemption Premium $ 2,500,000                    
Preferred Stock, Dividend Rate, Percentage 8.00%                    
Preferred Stock, Dividend Rate, Per-Dollar-Amount (in dollars per share) $ 10                    
Dividends, Total             100,000 $ 52,741      
Preferred Stock, Value, Issued, Ending Balance             2,854,583   $ 2,854,583   $ 2,754,583
Series A Preferred Stock [Member] | Conversion of Accounts Receivable Owed to Investor to Preferred Stock [Member]                      
Debt Conversion, Original Debt, Amount     $ 478,000                
Debt Conversion, Converted Instrument, Shares Issued (in shares)     48,200                
Series B Preferred Stock [Member]                      
Proceeds from Issuance of Preferred Stock and Preference Stock           $ 1,500,000          
Stock Issued During Period, Value, New Issues             1,612,707        
Stock Issued During Period, Shares, New Issues (in shares)           170,000          
Preferred Stock, Dividend Rate, Percentage           8.00%          
Preferred Stock, Par or Stated Value Per Share (in dollars per share)           $ 10          
Preferred Stock, Convertible, Conversion Price (in dollars per share)           $ 1          
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests, Ending Balance           $ 1,500,000     1,532,164
Preferred Stock, Value, Issued, Ending Balance           $ 1,500,000 1,612,707   1,612,707  
Dividends Payable             47,206   47,206    
Preferred Stock, Accretion of Redemption Discount             46,937   65,500    
Series C Preferred Stock [Member]                      
Proceeds from Issuance of Preferred Stock and Preference Stock         $ 1,500,000            
Stock Issued During Period, Value, New Issues             1,500,000        
Stock Issued During Period, Shares, New Issues (in shares)         170,000            
Preferred Stock, Dividend Rate, Percentage         8.00%            
Preferred Stock, Par or Stated Value Per Share (in dollars per share)         $ 10            
Preferred Stock, Convertible, Conversion Price (in dollars per share)         $ 1            
Preferred Stock, Value, Issued, Ending Balance             1,528,333   $ 1,528,333  
Adjustments to Additional Paid in Capital, Preferred Stock with Beneficial Conversion Feature             $ 1,500,000        
Series A Preferred Stock Warrants [Member]                      
Class of Warrant or Right, Granted in Period (in shares)                     792,660
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)                     792,660
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)                     $ 1
Class of Warrant or Right, Exercised During Period (in shares)       195,160 195,160           597,500
Stock Issued During Period, Shares, Warrants Exercised (in shares)       103,104 103,104            
Purchase Agreement [Member] | Series A Preferred Stock [Member]                      
Sale of Stock, Shares Agreed to Purchase (in shares)   500,000                  
Second Purchase Agreement Amendment [Member] | Series A Preferred Stock [Member]                      
Shares Issued, Price Per Share (in dollars per share)   $ 10                  
Proceeds from Issuance of Preferred Stock and Preference Stock   $ 5,000,000                  
Second Purchase Agreement Amendment [Member] | Series A Preferred Stock [Member] | Conversion from Each Share Series A Preferred Stock to Common Stock [Member]                      
Conversion of Stock, Shares Converted (in shares)   10                  
Additional Offering [Member] | Series A Preferred Stock [Member]                      
Sale of Stock, Contingent Additional Offered Shares (in shares)   200,000                  
Additional Shares Offering [Member] | Series A Preferred Stock [Member]                      
Sale of Stock, Price Per Share (in dollars per share)   $ 10                  
Equity Financing Arrangement [Member] | Common Stock [Member]                      
Stock Issued During Period, Shares, New Issues (in shares)                   400,000  
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.21.1
Note 5 - Stock-based Compensation; Changes in Equity - Option Activity (Details)
3 Months Ended
Mar. 31, 2021
$ / shares
shares
Outstanding, beginning of period (in shares) | shares 195,160
Outstanding, beginning of period (in dollars per share) | $ / shares $ 1
Granted (in shares) | shares
Granted (in dollars per share) | $ / shares $ 1
Cancelled/Expired (in shares) | shares
Cancelled/Expired (in dollars per share) | $ / shares $ 1
Exercised/Issued (in shares) | shares (195,160)
Exercised/Issued (in dollars per share) | $ / shares $ 1
Outstanding at the end of period (in shares) | shares
Outstanding at the end of period (in dollars per share) | $ / shares $ 1
Exercisable at the end of period (in shares) | shares
Exercisable at the end of period (in dollars per share) | $ / shares $ 1
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.21.1
Note 6 - Legal Proceedings (Details Textual) - USD ($)
1 Months Ended
Mar. 16, 2021
Feb. 10, 2021
Oct. 19, 2020
Oct. 15, 2020
Sep. 08, 2020
Apr. 05, 2020
Jan. 27, 2020
Jan. 31, 2019
Mar. 31, 2021
Dec. 31, 2020
Claims Filed by FedEx Trade Networks Transport [Member] | Pending Litigation [Member]                    
Loss Contingency, Damages Sought, Value             $ 163,964.75      
Litigation Settlement, Amount Awarded to Other Party       $ 100,400            
Claims Filed by FedEx Trade Networks Transport [Member] | Settled Litigation [Member]                    
Loss Contingency Accrual, Ending Balance                 $ 40,400 $ 70,400
Litigation Settlement, Amount Awarded to Other Party, Monthly Installment       $ 10,000            
Litigation Settlement, Amount Awarded to Other Party, Term (Month)       300 days            
Litigation Settlement, Amount Awarded to Other Party, Last Payment Amount       $ 10,400            
Jules and Associates, Inc. [Member] | Alleged Past Due Amounts Under Lease [Member]                    
Loss Contingency Accrual, Ending Balance                 91,298 75,187
Loss Contingency, Damages Sought, Value     $ 65,846.99     $ 98,244.55        
Redwood Multimodal [Member] | Demand for the Withholding of Payment [Member]                    
Loss Contingency Accrual, Ending Balance                 98,961 98,961
Loss Contingency, Damages Sought, Value     $ 98,960.88              
Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member]                    
Payments for Legal Settlements               $ 5,000    
Loss Contingency Accrual, Ending Balance                 38,325 53,659
Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] | Minimum [Member]                    
Royalty Monthly Payout, Amount               $ 7,667    
Disputed Compensation Amounts by Claimants [Member] | God’s Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page [Member] | Common Stock [Member]                    
Stock Issued During Period, Shares, New Issues (in shares)               20,000    
Airgas USA, LLC v. CTI Industries Corp. [Member] | Pending Litigation [Member]                    
Loss Contingency, Damages Sought, Value         $ 212,000          
Airgas USA, LLC v. CTI Industries Corp. [Member] | Settled Litigation [Member]                    
Loss Contingency Accrual, Ending Balance                 $ 125,000 $ 125,000
Litigation Settlement, Amount Awarded to Other Party   $ 125,000                
Litigation Settlement, Amount Awarded to Other Party, Term (Month)   300 days                
Benchmark Investments, Inc. v. Yunhong CTI Ltd [Member]                    
Loss Contingency, Damages Sought, Value $ 500,000                  
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.21.1
Note 7 - Other Comprehensive Income (Details Textual) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Total $ 32,000 $ 1,364,000
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.21.1
Note 8 - Geographic Segment Data (Details Textual)
3 Months Ended
Mar. 31, 2021
Number of Operating Segments 1
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.21.1
Note 8 - Geographic Segment Data - Net Sales to Outside Customers (Details) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net Sales $ 7,416,168 $ 7,067,501
UNITED STATES    
Net Sales 6,599,000 5,426,000
MEXICO    
Net Sales $ 817,000 $ 1,642,000
XML 51 R41.htm IDEA: XBRL DOCUMENT v3.21.1
Note 8 - Geographic Segment Data - Assets by geographic Areas (Details) - USD ($)
Mar. 31, 2021
Dec. 31, 2020
Assets $ 23,547,208 $ 21,550,971
Assets Held for Sale International Subsidiaries 205,000 294,000
UNITED STATES    
Assets 15,836,000 12,459,000
MEXICO    
Assets $ 7,506,000 $ 8,798,000
XML 52 R42.htm IDEA: XBRL DOCUMENT v3.21.1
Note 9 - Inventories, Net of Continuing Operations - Inventories (Details) - USD ($)
Mar. 31, 2021
Dec. 31, 2020
Raw materials $ 1,218,000 $ 1,177,000
Work in process 2,979,000 2,799,000
Finished goods 6,890,000 7,224,000
In Transit 86,000 88,000
Allowance for excess quantities (250,000) (318,000)
Total inventories $ 10,922,713 $ 10,969,711
XML 53 R43.htm IDEA: XBRL DOCUMENT v3.21.1
Note 10 - Concentration of Credit Risk (Details Textual) - Customer Concentration Risk [Member]
3 Months Ended
Mar. 31, 2021
USD ($)
Mar. 31, 2020
USD ($)
Revenue Benchmark [Member]    
Number of Major Customers 1 1
Revenue Benchmark [Member] | Customer One [Member]    
Concentration Risk, Percentage 54.00% 46.00%
Accounts Receivable [Member] | Customer One [Member]    
Accounts Receivable, before Allowance for Credit Loss $ 2,385,000 $ 2,097,000
Concentration Risk, Percentage 33.00% 29.00%
XML 54 R44.htm IDEA: XBRL DOCUMENT v3.21.1
Note 10 - Concentration of Credit Risk - Concentration of Credit Risk, Net Sales (Details) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net Sales $ 7,416,168 $ 7,067,501
Customer One [Member]    
Net Sales $ 3,991,000 $ 3,222,000
Customer One [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member]    
Percent of net sales 54.00% 46.00%
XML 55 R45.htm IDEA: XBRL DOCUMENT v3.21.1
Note 11 - Related Party Transactions (Details Textual) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2021
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Jul. 01, 2019
Jan. 01, 2019
Dec. 31, 2018
Due to Related Parties, Noncurrent, Total   $ 1,140,709   $ 1,123,769        
Due from Related Parties, Current, Total   100,000   100,000        
Series C Preferred Stock [Member]                
Stock Issued During Period, Shares, New Issues (in shares) 170,000              
Proceeds from Issuance of Preferred Stock and Preference Stock $ 1,500,000              
Schwan Incorporated [Member]                
Related Party Transaction, Amounts of Transaction   31,000 $ 0          
Accounts Payable, Related Parties   0            
John H Schwan [Member] | Promissory Note [Member]                
Due to Related Parties, Noncurrent, Total             $ 997,019 $ 1,600,000
Repayments of Related Party Debt   0     $ 0      
Interest Expense, Related Party   17,000 15,000          
CTI Europe [Member]                
Long-term Debt, Gross   0 $ 9,000          
Board of Directors Chairman [Member]                
Due from Related Parties, Current, Total   $ 100,000   100,000   $ 1,300,000    
Note Receivable, Reserve       $ 1,277,000        
LF International [Member] | Series C Preferred Stock [Member]                
Stock Issued During Period, Shares, New Issues (in shares) 170,000              
Proceeds from Issuance of Preferred Stock and Preference Stock $ 1,500,000              
XML 56 R46.htm IDEA: XBRL DOCUMENT v3.21.1
Note 13 - Leases (Details Textual) - USD ($)
1 Months Ended
Mar. 31, 2021
Jul. 31, 2020
Dec. 31, 2020
Operating Lease, Right-of-Use Asset $ 791,211   $ 361,720
Lease Agreement for a Building [Member]      
Operating Lease, Payment Per Month 34,000 $ 38,000  
Operating Lease, Right-of-Use Asset $ 567,950    
Lessee, Operating Lease, Discount Rate 11.00%    
Operating Lease, Liability, Total $ 567,950    
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