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Note 2 - Basis of Presentation
 3 Months Ended
Apr. 05, 2020
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]
(
2
)
Basis of Presentation
 
The accompanying unaudited consolidated financial statements include the accounts of Sypris Solutions, Inc. and its wholly-owned subsidiaries and have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with the instructions to Form
10
-Q and Article
10
of Regulation S-
X
of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. The
December 31, 2019
consolidated balance sheet data was derived from audited statements, but does
not
include all disclosures required by U.S. GAAP. The Company’s operations are domiciled in the United States (U.S.) and Mexico, and we serve a wide variety of domestic and international customers. All intercompany transactions and accounts have been eliminated.
 
These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state the results of operations, financial position and cash flows for the periods presented, and the disclosures herein are adequate to make the information presented
not
misleading. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results for the
three
months ended
April 5, 2020
are
not
necessarily indicative of the results that
may
be expected for the year ending
December 
31,
 
2020.
These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended
December 31, 2019
as presented in the Company’s Annual Report on Form
10
-K. Certain prior period amounts have been reclassified to conform with current period presentation.
 
COVID-
19
Assessment
In
March 2020,
the World Health Organization categorized the current coronavirus disease (“COVID-
19”
) as a pandemic, and the President of the United States declared the COVID-
19
outbreak a national emergency. COVID-
19
continues to spread throughout the United States and other countries across the world, and the duration and severity of its effects are currently unknown. While the Company expects the effects of the pandemic to negatively impact its results of operations, cash flows and financial position, the current level of uncertainty over the economic and operational impacts of COVID-
19
means the related financial impact cannot be reasonably estimated at this time. The Company’s consolidated financial statements presented herein reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. Such estimates and assumptions affect, among other things, the Company’s long-lived asset valuation; inventory valuation; valuation of deferred income taxes and income tax contingencies; the allowance for doubtful accounts; and pension plan assumptions. Events and changes in circumstances arising after
April 5, 2020,
including those resulting from the impacts of COVID-
19,
will be reflected in management’s estimates for future periods. Factors deriving from the COVID-
19
response that have or
may
negatively impact sales and gross margin in the future include, but are
not
limited to: limitations on the ability of our suppliers to manufacture, or procure from manufacturers, the material components we utilize in the manufacture of the products we sell, or to meet delivery requirements and commitments; limitations on the ability of our employees to perform their work due to illness caused by the pandemic or local, state, or federal orders requiring employees to remain at home; limitations on the ability of our customers to conduct their business and purchase our products; and limitations on the ability of our customers to pay us on a timely basis.