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Note 22 - Discontinued Operations | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 22. 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 Company divested its CTI Balloons (United Kingdom) subsidiary in the fourth quarter 2019 and expects to divest CTI Europe (Germany) subsidiary in the first half of 2020. In connection with management’s intentions to simplify these operations and organizational structure, we identified write-offs of $1.75 million for the year ended December 31, 2019, respectively, related to CTI Europe, and CTI Balloons. The charges for the year ended December 31, 2019 were comprised of the following: $1.0M inventory, $67,000 allowance for doubtful accounts; and $8,000 for other assets. Depreciation for discontinued operations was $7,000 and $29,000 for the years ended December 31, 2019 and 2018, respectively. CTI Balloons recorded losses from discontinued operations, net of taxes, of ( $1,006,000 ) for 2019, including an estimated loss on sale of $321,000. The losses, net of taxes, for 2018 of $310,000. CTI Europe recorded losses from discontinued operations, net of taxes of ( $1,005,000 ) for the year ended December 31, 2019 respectively (including an estimated loss on sale of $683,000 ). The income, net of taxes was $46,812 for the year ended December 31, 2018 respectively. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the International operations that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Income for the year ended
|  | 12/31/19 |  |  | 12/31/18 |
Income Statement |  |  |  |  |  |  |  |
Net Sales |  |  | 4,952,896 |  |  |  | 6,169,691 |
Cost of Sales |  |  | 5,879,299 |  |  |  | 4,780,719 |
Gross Margin |  |  | (926,403 | ) |  |  | 1,388,972 |
Impairment of Long-Lived Assets |  |  | (4,173 | ) |  |  |  |
SG&A |  |  | 1,618,971 |  |  |  | 1,510,924 |
Operating Income |  |  | (2,541,200 | ) |  |  | (121,952 | )
Other Expense |  |  | 67,853 |  |  |  | (38,313 | )
Total pretax loss from discontinued operations |  |  | (2,609,053 | ) |  |  | (83,639 | )
Loss from classification to held for sale |  |  | (604,483 | ) |  |  | - |
Income Tax Expense |  |  | - |  |  |  | (179,939) |
Net Income prior to non-controlling interest |  |  | (3,213,536 | ) |  |  | (263,578 | )
Non-controlling Interest share of profit/loss |  |  | (1,239,611 | ) |  |  | 22,470 |
Net Income |  |  | (1,973,925 | ) |  |  | (286,048 | )
The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:
|  | 12/31/2019 |  |  | 12/31/2018 |
Balance Sheet |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |  |
Cash on hand and Banks |  |  | 4,307 |  |  |  | 169,912 |
Accounts Receivable |  |  | 539,910 |  |  |  | 584,827 |
Inventory |  |  | 74,383 |  |  |  | 2,618,854 |
Prepaid & Other |  |  | 135,912 |  |  |  | 125,726 |
TOTAL Current Assets |  |  | 754,512 |  |  |  | 3,499,319 |
NET Property, Plant, and Equipment |  |  | 53,919 |  |  |  | 94,069 |
Other Assets |  |  |  |  |  |  |  |
Deferred Income Tax asset |  |  | - |  |  |  | - |
Goodwill |  |  | - |  |  |  | - |
Operating lease right-of-use |  |  | 220,541 |  |  |  | - |
Other |  |  | 47,960 |  |  |  | 78,729 |
TOTAL Other Assets |  |  | 268,501 |  |  |  | 78,729 |
TOTAL Non-Current Assets |  |  | 322,420 |  |  |  | 172,798 |
Valuation Allowance on Assets Held For Sale` |  |  | (320,899 | ) |  |  | - |
TOTAL Assets |  |  | 756,033 |  |  |  | 3,672,117 |
Liabilities |  |  |  |  |  |  |  |
Current Liabilities |  |  | - |  |  |  | - |
Trade Accounts Payable |  |  | 384,333 |  |  |  | 727,741 |
Operating Lease Liabilities - Current |  |  | 203,291 |  |  |  | - |
Other/Accrued Liabilities |  |  | 19,562 |  |  |  | 80,035 |
TOTAL Current Liabilities |  |  | 607,187 |  |  |  | 807,776 |
Non-Current Liabilities |  |  |  |  |  |  |  |
Notes Payable |  |  | - |  |  |  | - |
Operating Lease Liabilities - Non Current |  |  | 17,250 |  |  |  | - |
Other Non-Current |  |  | 32,317 |  |  |  | 31,874 |
TOTAL Non-Current Liabilities |  |  | 49,567 |  |  |  | 31,874 |
|  |  | - |  |  |  | - |
TOTAL Liabilities |  |  | 656,753 |  |  |  | 839,650 |

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