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Note 2 - Discontinued Operations | 9 Months Ended
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Sep. 30, 2021
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 2 – Discontinued Operations In July 2019 management and the board of directors of the Company (the Board”) engaged in a review of CTI Balloons and CTI Europe and determined that they were not accretive to the Company overall, added complexity to the Company’s structure and utilized resources. Therefore, as of July 19, 2019, the Board authorized management to divest of CTI Balloons and CTI Europe. These actions were 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 of 2019, its Ziploc product line in the first quarter of 2020, and its CTI Europe subsidiary in the second quarter of 2021. In October 2019, we determined that we would not renew our Trademark License Agreement with SC Johnson when it expired on December 31, 2019. Under this Agreement, we were licensed to manufacture and sell a line of vacuum sealing machines and pouches under the Ziploc® Brand Vacuum Sealer System. The terms of the Agreement included a run-off provision which allowed us to sell products under the Ziploc trademark for 90 days after the end of the Agreement. Our exit of the Ziploc product line is considered a strategic shift and had a major effect on our operations and financial results. Therefore, this product line has been presented as discontinued operations. CTI Europe recorded a gain from discontinued operations, net of taxes of nil and $146,000 for the three- and nine-month periods ended September 30, 2021, respectively. CTI Europe recorded a loss from discontinued operations, net of taxes of $(76,000) for the three months ended September 30, 2020, compared to a gain from discontinued operations net of taxes of $313,000 for the nine months ended September 30, 2020. Our Ziploc product line recorded a loss from discontinued operations, net of taxes of nil for the three and nine months ended September 30, 2021. The loss, net of taxes, was ($37,000) and ($1,513,000) for the three- and nine-month periods ended September 30, 2020, respectively. Summarized Discontinued Operations Financial Information The following table summarizes the major line items for the operations that are included in the income from discontinued operations, net of tax line item in the Unaudited Consolidated Statements of Comprehensive Income for the three months ended:
|  | September 30, 2021 |  |  | September 30, 2020 |
Income Statement |  |  |  |  |  |  |  |
Net Sales |  | $ | - |  |  | $ | 655,896 |
Cost of Sales |  |  | - |  |  |  | 412,663 |
Gross Loss |  |  | - |  |  |  | 243,233 |
SG&A |  |  | - |  |  |  | 194,300 |
Operating Income |  |  | - |  |  |  | 48,933 |
Other Expense |  |  | - |  |  |  | (10,848 | )
Pretax loss from discontinued operations |  |  | - |  |  |  | 38,085 |
Loss from classification to held for sale |  |  | - |  |  |  | (151,140 | )
Net Loss from discontinued operations |  |  | - |  |  |  | (113,055 | )
Non-controlling Interest share of profit/loss |  |  | - |  |  |  | (72,211 | )
Net Loss |  | $ | - |  |  | $ | (40,844 | )
The following table summarizes the major line items for the operations that are included in the income from discontinued operations, net of tax line item in the Unaudited Consolidated Statements of Income for the nine months ended:
|  | September 30, 2021 |  |  | September 30, 2020 |
Income Statement |  |  |  |  |  |  |  |
Net Sales |  | $ | 79,840 |  |  | $ | 2,328,341 |
Cost of Sales |  |  | 202,402 |  |  |  | 2,527,937 |
Gross Loss |  |  | (122,562 | ) |  |  | (199,597 | )
SG&A |  |  | 127,150 |  |  |  | 1,049,295 |
Operating Income |  |  | (249,712 | ) |  |  | (1,248,892 | )
Other (Expense) Income |  |  | 77,242 |  |  |  | (33,301 | )
Pretax loss from discontinued operations |  |  | (172,470 | ) |  |  | (1,282,193 | )
Gain from classification to held for sale |  |  | 318,722 |  |  |  | 82,545 |
Income (Loss) from discontinued operations |  |  | 146,252 |  |  |  | (1,199,648 | )
Non-controlling Interest share of profit/loss |  |  | 70,201 |  |  |  | 150,458 |
Net Income (Loss) attributable to controlling interest |  | $ | 76,051 |  |  | $ | (1,350,106 | )

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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