Note 17 - Subsequent Events	12 Months Ended
Dec. 31, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	17. SUBSEQUENT EVENTS Management has reviewed for subsequent events and identified the following: In December 2019, a novel strain of coronavirus (SARS-CoV- 2 ), which causes COVID- 19, was reported to have surfaced in China. The spread of this virus has caused business disruption beginning in the first quarter of 2020, including supply chain disruptions, delays in some customer projects, and adjustments for staffing to work from home, among other things. In March 2020, the World Health Organization declared the outbreak of COVID- 19 to be a pandemic, and the U.S. economy began to experience pronounced effects including a significant decline in the stock market, employee absences and adjustment to work from home situations, among other things. At this time, there is significant uncertainty relating to the potential effect of the novel coronavirus on our business. Although our operations qualify as “Essential Critical Infrastructure Work” under the most recent US Department of Homeland Security guidelines, infections have become more widespread, which may worsen the supply shortage or force us to restrict our operations. In addition, due to the further spread of the outbreak where we have corporate offices, we have implemented various measures including remote working solutions, reduced hours, adjusted shifts, and placed various restrictions on access to our offices, which could negatively impact productivity, particularly if we restrict access to our offices for a longer period of time. Any of these occurrences may have a negative impact on our business, financial condition or results of operations. Therefore, while we expect this matter to negatively impact our results, the related financial impact cannot be reasonably estimated at this time. On January 1 , 2020, the Company agreed to the purchase of the VE Technology designated intellectual property for a total of 1.5 million British Pounds (approximately $ 2.0 million), payable 750 thousand GBP during Q1 2020 and the remaining balance due July 31, 2020. Through this acquisition, the Company will no longer owe royalties on sales of its VE Technology products and will control all rights to the use of the VE Technology. CUI Global announced that on March 24, 2020, it entered into a definitive agreement to acquire Reach Construction Group, LLC, an industry-leading solar construction company. The transaction will consist of third -party debt and company equity valued at approximately $37.0 million (excluding working capital and certain other adjustments upon closing). The acquisition is expected to close in April 2020, subject to customary closing conditions. On March 13, 2020, the Company entered into a short-term promissory note receivable for $3 million with Reach Construction Group. The note accrues interest at 6% per annum and is payable in sixty days. Upon closing of the acquisition of Reach Construction Group, that note will become an intercompany receivable. Stock Issuances in 2020 On February 3, 2020, 37,312 shares of common stock were issued to a third party pursuant to a royalty agreement. The shares were valued at $39 thousand based on the dates earned under the royalty agreement.

17.

SUBSEQUENT EVENTS

Management has reviewed for subsequent events and identified the following:

December 2019,

a novel strain of coronavirus (SARS-CoV-

), which causes COVID-

19,

was reported to have surfaced in China. The spread of this virus has caused business disruption beginning in the

first

quarter of

2020,

including supply chain disruptions, delays in some customer projects, and adjustments for staffing to work from home, among other things. In

March 2020,

the World Health Organization declared the outbreak of COVID-

to be a pandemic, and the U.S. economy began to experience pronounced effects including a significant decline in the stock market, employee absences and adjustment to work from home situations, among other things. At this time, there is significant uncertainty relating to the potential effect of the novel coronavirus on our business. Although our operations qualify as “Essential Critical Infrastructure Work” under the most recent US Department of Homeland Security guidelines, infections have become more widespread, which

may

worsen the supply shortage or force us to restrict our operations. In addition, due to the further spread of the outbreak where we have corporate offices, we have implemented various measures including remote working solutions, reduced hours, adjusted shifts, and placed various restrictions on access to our offices, which could negatively impact productivity, particularly if we restrict access to our offices for a longer period of time. Any of these occurrences

may

have a negative impact on our business, financial condition or results of operations. Therefore, while we expect this matter to negatively impact our results, the related financial impact cannot be reasonably estimated at this time.

January 1

2020,

the Company agreed to the purchase of the VE Technology designated intellectual property for a total of

1.5

million British Pounds (approximately

2.0

million), payable

750

thousand GBP during

2020

and the remaining balance due

July 31, 2020.

Through this acquisition, the Company will

longer owe royalties on sales of its VE Technology products and will control all rights to the use of the VE Technology.

CUI Global announced that on

March 24, 2020,

it entered into a definitive agreement to acquire Reach Construction Group, LLC, an industry-leading solar construction company. The transaction will consist of

third

-party debt and company equity valued at approximately

$37.0

million (excluding working capital and certain other adjustments upon closing). The acquisition is expected to close in

April 2020,

subject to customary closing conditions. On

March 13, 2020,

the Company entered into a short-term promissory note receivable for

million with Reach Construction Group. The note accrues interest at

per annum and is payable in

sixty

days. Upon closing of the acquisition of Reach Construction Group, that note will become an intercompany receivable.

Stock Issuances in

2020

February 3, 2020,

37,312

shares of common stock were issued to a

third

party pursuant to a royalty agreement. The shares were valued at

$39

thousand based on the dates earned under the royalty agreement.