Note 15 - Restatement of Financial Statements (Tables)

3 Months Ended

Mar. 31, 2019

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