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Note 15 - Restatement of Financial Statements (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2019
Notes Tables |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] |
|  | March 31, 2019 |
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents (VIE $3,000 and $57,000, respectively) |  | $ | 175,442 |  |  | $ | - |  |  | $ | 175,442 |
Accounts receivable, (less allowance for doubtful accounts of $524,000 and $85,000, respectively) |  |  | 10,602,710 |  |  |  | (432,454 | ) |  |  | 10,170,256 |
Inventories, net (VIE $315,000 and $340,000, respectively) |  |  | 20,837,907 |  |  |  |  |  |  |  | 20,837,907 |
Prepaid expenses (VIE $106,000 and $127,000, respectively) |  |  | 646,164 |  |  |  | 12,000 |  |  |  | 658,164 |
Other current assets |  |  | 1,419,371 |  |  |  | (12,000) |  |  |  | 1,407,371 |
Total current assets |  |  | 33,681,594 |  |  |  | (432,454 | ) |  |  | 33,249,140 |
Property, plant and equipment: |  |  |  |  |  |  |  |  |  |  |  |
Machinery and equipment |  |  | 23,842,559 |  |  |  |  |  |  |  | 23,842,559 |
Building |  |  | 3,374,334 |  |  |  |  |  |  |  | 3,374,334 |
Office furniture and equipment (VIE $303,000 and $303,000, respectively) |  |  | 2,656,519 |  |  |  |  |  |  |  | 2,656,519 |
Intellectual property |  |  | 783,179 |  |  |  |  |  |  |  | 783,179 |
Land |  |  | 250,000 |  |  |  |  |  |  |  | 250,000 |
Leasehold improvements |  |  | 411,426 |  |  |  |  |  |  |  | 411,426 |
Fixtures and equipment at customer locations |  |  | 518,450 |  |  |  |  |  |  |  | 518,450 |
Projects under construction |  |  | 188,181 |  |  |  |  |  |  |  | 188,181 |
|  |  | 32,024,648 |  |  |  |  |  |  |  | 32,024,648 |
Less : accumulated depreciation and amortization (VIE $106,000 and $104,000, respectively) |  |  | (28,427,729 | ) |  |  |  |  |  |  | (28,427,729 | )
|  |  |  |  |  |  | - |  |  |  |  |
Total property, plant and equipment, net |  |  | 3,596,919 |  |  |  |  |  |  |  | 3,596,919 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (VIE $0 and $440,000, respectively) |  |  | 1,473,176 |  |  |  | (1,473,176 | ) |  |  | 0 |
Net deferred income tax asset |  |  | 495,586 |  |  |  | (360,492 | ) |  |  | 135,094 |
Operating lease right-of-use |  |  | 2,110,723 |  |  |  | 367,094 |  |  |  | 2,477,817 |
Other assets |  |  | 26,088 |  |  |  | 220,000 |  |  |  | 246,088 |
|  |  |  |  |  |  | - |  |  |  |  |
Total other assets |  |  | 4,105,573 |  |  |  | (1,246,574 | ) |  |  | 2,858,999 |
|  |  |  |  |  |  | - |  |  |  |  |
TOTAL ASSETS |  | $ | 41,384,086 |  |  | $ | (1,679,028 | ) |  | $ | 39,705,058 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Checks written in excess of bank balance (VIE $4,000 and $7,000, respectively) |  | $ | 654,646 |  |  |  |  |  |  | $ | 654,646 |
Trade payables (VIE $142,000 and $62,000, respectively) |  |  | 8,680,004 |  |  |  |  |  |  |  | 8,680,004 |
Line of credit (VIE $249,000 and $267,000, respectively) |  |  | 15,351,709 |  |  |  |  |  |  |  | 15,351,709 |
Notes payable - current portion |  |  | 4,414,581 |  |  |  |  |  |  |  | 4,414,581 |
Notes payable affiliates - current portion |  |  | 11,271 |  |  |  |  |  |  |  | 11,271 |
Operating Lease Liabilities |  |  | 1,016,687 |  |  |  | 284,140 |  |  |  | 1,300,827 |
Accrued liabilities (VIE $47,000 and $89,000, respectively) |  |  | 2,082,161 |  |  |  | (432,454 | ) |  |  | 1,649,707 |
|  |  |  |  |  |  | - |  |  |  |  |
Total current liabilities |  |  | 32,211,059 |  |  |  | (148,314 | ) |  |  | 32,062,745 |
|  |  |  |  |  |  | - |  |  |  |  |
Long-term liabilities: |  |  |  |  |  |  | - |  |  |  |  |
Notes payable - affiliates |  |  | 175,512 |  |  |  |  |  |  |  | 175,512 |
Notes payable, net of current portion (VIE $30,000 and $27,000, respectively) |  |  | 639,327 |  |  |  |  |  |  |  | 639,327 |
Operating Lease Liabilities |  |  | 1,094,036 |  |  |  | 82,954 |  |  |  | 1,176,990 |
Notes payable - officers, subordinated |  |  | 1,012,024 |  |  |  | - |  |  |  | 1,012,024 |
Deferred gain (non current) |  |  | 74,364 |  |  |  | - |  |  |  | 74,364 |
Total long-term debt, net of current portion |  |  | 2,995,263 |  |  |  | 82,954 |  |  |  | 3,078,217 |
|  |  |  |  |  |  | - |  |  |  |  |
Total liabilities |  |  | 35,206,322 |  |  |  | (65,360) |  |  |  | 35,140,962 |
|  |  |  |  |  |  | - |  |  |  |  |
Equity: |  |  |  |  |  |  | - |  |  |  |  |
Yunhong CTI, LTD stockholders' equity: |  |  |  |  |  |  | - |  |  |  |  |
Preferred Stock -- no par value, 3,000,000 shares authorized, 0 shares issued and outstanding |  |  | - |  |  |  | - |  |  |  | - |
Common stock - no par value, 15,000,000 shares authorized, 3,779,608 shares issued and 3,730,950 shares outstanding |  |  | 13,898,494 |  |  |  |  |  |  |  | 13,898,494 |
Paid-in-capital |  |  | 3,135,404 |  |  |  |  |  |  |  | 3,135,404 |
Accumulated earnings |  |  | (3,745,907 | ) |  |  | (1,613,668 | ) |  |  | (5,359,575 | )
Accumulated other comprehensive loss |  |  | (5,814,471 | ) |  |  |  |  |  |  | (5,814,471 | )
Less: Treasury stock, 43,658 shares |  |  | (160,784 | ) |  |  |  |  |  |  | (160,784 | )
Total Yunhong CTI, LTD stockholders' equity |  |  | 7,312,736 |  |  |  | (1,613,668 | ) |  |  | 5,699,068 |
Noncontrolling interest |  |  | (1,134,972 | ) |  |  |  |  |  |  | (1,134,972 | )
Total Equity |  |  | 6,177,764 |  |  |  | (1,613,668 | ) |  |  | 4,564,096 |
TOTAL LIABILITIES AND EQUITY |  | $ | 41,384,086 |  |  | $ | (1,679,028 | ) |  | $ | 39,705,058 |
|  | For the Three Months Ended March 31, |
|  | 2019 |  |  |  |  |  |  | 2019 |
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
Net Sales |  | $ | 12,536,389 |  |  | $ | - |  |  | $ | 12,536,389 |
|  |  |  |  |  |  | - |  |  |  |  |
Cost of Sales |  |  | 10,540,218 |  |  |  | - |  |  |  | 10,540,218 |
|  |  |  |  |  |  | - |  |  |  |  |
Gross profit |  |  | 1,996,171 |  |  |  | - |  |  |  | 1,996,171 |
|  |  |  |  |  |  | - |  |  |  |  |
Operating expenses: |  |  |  |  |  |  | - |  |  |  |  |
General and administrative |  |  | 2,056,073 |  |  |  | (214,175) |  |  |  | 1,841,898 |
Selling |  |  | 437,565 |  |  |  | - |  |  |  | 437,565 |
Advertising and marketing |  |  | 273,880 |  |  |  | (101,303) |  |  |  | 172,577 |
Impairment on long-lived assets |  |  |  |  |  |  | 1,253,176 |  |  |  | 1,253,176 |
Gain on sale of assets |  |  | (23,547 | ) |  |  | - |  |  |  | (23,547 | )
Total operating expenses |  |  | 2,743,971 |  |  |  | 937,698 |  |  |  | 3,681,669 |
|  |  |  |  |  |  | - |  |  |  |  |
Loss from operations |  |  | (747,800 | ) |  |  | (937,698 | ) |  |  | (1,685,498 | )
Other (expense) income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (546,906 | ) |  |  | - |  |  |  | (546,906 | )
Other income (expense) |  |  |  |  |  |  | (315,478) |  |  |  | (315,478) |
Foreign currency loss |  |  | (8,594 | ) |  |  | - |  |  |  | (8,594 | )
Total other expense, net |  |  | (555,500 | ) |  |  | (315,478) |  |  |  | (870,978 | )
Net loss before taxes |  |  | (1,303,300 | ) |  |  | (1,253,176 | ) |  |  | (2,556,476 | )
Income tax (benefit) expense |  |  | (360,491 | ) |  |  | 360,491 |  |  |  |  |
Net loss |  |  | (942,809 | ) |  |  | (1,613,667 | ) |  |  | (2,556,476 | )
Less: loss attributable to noncontrolling interest |  |  | (62,388 | ) |  |  | - |  |  |  | (62,388 | )
Net loss attributable to Yunhong CTI, LTD |  | $ | (880,421 | ) |  | $ | (1,613,667 | ) |  | $ | (2,494,088 | )
Other Comprehensive Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency adjustment |  |  | 235,876 |  |  |  | - |  |  |  | 235,876 |
Comprehensive loss |  | $ | (644,545 | ) |  | $ | (1,613,667 | ) |  | $ | (2,258,212 | )
Basic loss per common share |  | $ | (0.24 | ) |  | $ | (0.43 | ) |  | $ | (0.67 | )
Diluted loss per common share |  | $ | (0.24 | ) |  | $ | (0.43 | ) |  | $ | (0.67 | )
Weighted average number of shares and equivalent shares of common stock outstanding: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 3,735,950 |  |  |  |  |  |  |  | 3,735,950 |
Diluted |  |  | 3,735,950 |  |  |  |  |  |  |  | 3,735,950 |
|  | For the Three Months Ended March 31, |
|  | 2019 |  |  |  |  |  |  | 2019 |
|  | As Previously Reported |  |  | Adjustments |  |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (942,809 | ) |  | $ | (1,613,667 | ) |  | $ | (2,556,476 | )
Depreciation and amortization |  |  | 308,084 |  |  |  | - |  |  |  | 308,084 |
Operating cash flows from operating leases |  |  | 248,757 |  |  |  | (248,757) |  |  |  |  |
Amortization of deferred gain on sale/leaseback |  |  | (27,474) |  |  |  |  |  |  |  | (27,474 | )
Provision for losses on accounts receivable |  |  | 6,085 |  |  |  |  |  |  |  | 6,085 |
Provision for losses on inventories |  |  | (10,656) |  |  |  |  |  |  |  | (10,656 | )
Impairment of long-lived assets |  |  |  |  |  |  | 1,253,176 |  |  |  | 1,253,176 |
Deferred income taxes |  |  | (360,491 | ) |  |  | 360,491 |  |  |  |  |
Stock based compensation |  |  |  |  |  |  | 28,967 |  |  |  | 28,967 |
Change in assets and liabilities: |  |  |  |  |  |  | - |  |  |  |  |
Accounts receivable |  |  | 249,950 |  |  |  | 410,349 |  |  |  | 660,299 |
Inventories |  |  | (827,084 | ) |  |  | - |  |  |  | (827,084 | )
Prepaid expenses and other assets |  |  | (235,701 | ) |  |  | 215,468 |  |  |  | (20,233 | )
Trade payables |  |  | 1,971,593 |  |  |  | 28,741 |  |  |  | 2,000,334 |
Accrued liabilities |  |  | (149,957 | ) |  |  |  |  |  |  | (149,957 | )
Net cash provided by operating activities |  |  | 230,297 |  |  |  | 434,768 |  |  |  | 665,065 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Purchases of property, plant and equipment |  |  | (52,243 | ) |  |  |  |  |  |  | (52,243 | )
Net cash (used in) investing activities |  |  | (52,243 | ) |  |  |  |  |  |  | (52,243 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Change in checks written in excess of bank balance |  |  | 18,504 |  |  |  |  |  |  |  | 18,504 |
Net change in revolving line of credit |  |  | (1,235,126 | ) |  |  |  |  |  |  | (1,235,126 | )
Repayment of long-term debt |  |  | 771,113 |  |  |  | (984,634) |  |  |  | (213,521) |
Proceeds from issuance of stock |  |  | 28,967 |  |  |  | (28,967) |  |  |  | - |
Cash paid for deferred financing fees |  |  | 3,800 |  |  |  | (31,385) |  |  |  | (27,585) |
Proceeds from issuance of long-term note payable |  |  |  |  |  |  | 650,000 |  |  |  | 650,000 |
Net cash (used in) financing activities |  |  | (412,742 | ) |  |  | (394,986) |  |  |  | (807,728 | )
Effect of exchange rate changes on cash |  |  | (18,020) |  |  |  | (39,782) |  |  |  | (57,802) |
Net increase/(decrease) in cash and cash equivalents |  |  | (252,708 | ) |  |  |  |  |  |  | (252,708 | )
Cash and cash equivalents at beginning of period |  |  | 428,150 |  |  |  |  |  |  |  | 428,150 |
Cash and cash equivalents at end of period |  | $ | 175,442 |  |  | $ |  |  |  | $ | 175,442 |
Supplemental disclosure of cash flow information: |  |  |  |  |  |  |  |  |  |  |  |
Cash payments for interest |  | $ | 366,688 |  |  |  |  |  |  | $ | 366,688 |
Common stock issued for notes payable |  |  |  |  |  |  |  |  |  | $ | 600,000 |

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