Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

( 1 ) Basis of Presentation

The interim condensed consolidated financial statements of UFP Technologies, Inc. (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 

10

-Q and do

not

include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended

December 31, 2018,

included in the Company's

2018

Annual Report on Form 

10

-K, as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheets as of

June 30, 2019

and

December 31, 2018,

the condensed consolidated statements of income for the

three

- and

six

-month periods ended

June 30, 2019

and

2018,

the condensed consolidated statements of stockholders’ equity for the

three

- and

six

-month periods ended

June 30, 2019

and

2018,

and the condensed consolidated statements of cash flows for the

six

-month periods ended

June 30, 2019

and

2018

are unaudited but, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results for these interim periods. The condensed consolidated balance sheet as of

December 31, 2018

has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm but does

not

include all of the information and footnotes required for complete annual financial statements.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The results of operations for the

three

- and

six

-month periods ended

June 30, 2019

are

not

necessarily indicative of the results to be expected for the entire fiscal year ending

December 

31,

2019.

Recent Accounting Pronouncements

In

February 2016,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 

No.

2016

-

02,

 “

Leases (Accounting Standards Codification (ASC)

842

),

” and issued subsequent amendments to the initial guidance in

January 2018

within ASU 

No.

2018

-

01

 and in

July 2018

within ASU Nos. 

2018

-

10

 and 

2018

-

11.

The Company adopted ASC

842

on

January 1, 2019.

See Note

7

for further details.

In

January 2017,

the FASB issued ASU 

No.

2017

-

04,

Intangibles—Goodwill and Other (ASC

350

), Simplifying the Test for Goodwill Impairment

. The guidance removes Step

2

of the goodwill impairment test and eliminates the need to determine the fair value of individual assets and liabilities to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value,

not

to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The guidance will be applied prospectively and is effective for annual and interim goodwill impairment tests in fiscal years beginning after

December 

15,

2019.

Early adoption is permitted for any impairment tests performed on testing dates after

January 

1,

2017.

The Company does

not

believe adoption will have a material impact on its financial condition or results of operations.

Revisions

Certain revisions have been made to the Condensed Consolidated Statements of Cash Flows for the

six

months ended

June 30, 2018,

due to a reclassification of deferred

revenue. The reclassification resulted in a decrease to the change in deferred revenue and a decrease in the change in accrued expenses in the amount of approximately

$573

thousand. These revisions had

no

impact on previously reported net income and are deemed immaterial to the previously issued financial statements.