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Note 6 - Legal Proceedings | 9 Months Ended
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Sep. 30, 2021
Notes to Financial Statements |
Legal Matters and Contingencies [Text Block] | Note 6 - Legal Proceedings The Company may be party to certain lawsuits or claims arising in the normal course of business. The ultimate outcome of these matters is unknown but, in the opinion of management, we do not believe any of these proceedings will have, individually or in the aggregate, a material adverse effect upon our financial condition, cash flows or future results of operation. On July 16, 2021, Transportation Solutions Group LLC d/b/a Redwood Multimodal filed a complaint against the Company for breach of contract or in the alternative alleging damages for unpaid invoices in the amount of $98,660 plus attorneys’ fees and costs. The Company was served on July 30. Thereafter, the Company and Redwood entered into a settlement agreement, which calls for the total settlement of $65,000 to be paid in installments. The case was dismissed on September 17, 2021 pursuant to the settlement agreement and with the court retaining jurisdiction to enforce the terms of the settlement. The final payment will come due under the settlement agreement on March 10, 2022. The balance as of September 30, 2021 and December 31, 2020 amounted to $65,000 and $98,961, respectively. On April 5, 2020, Jules and Associates, Inc. filed and served on the Company a demand for arbitration with JAMS, an arbitration service, related to the lease of certain equipment. The demand requested $98,244.55 for alleged past due amounts, plus amounts that Jules alleges continue to accrue under the lease, attorneys’ fees and costs, as well as a return of the equipment or its fair market value. The Company has settled this matter for $90,000 to be paid in installments as follows: $15,000 upon execution of the settlement agreement, $25,000 on October 15, 2021; $25,000 on November 15, 2021; and $25,000 on December 15, 2021. Additionally, as part of the settlement, the Company is entitled to keep the equipment and Jules will execute a bill of sale to the Company for the equipment upon receipt of the settlement amount. The arbitration was dismissed pursuant to the settlement agreement. The balance as of September 30, 2021 and December 31, 2020 amounted to $75,000 and $75,187, respectively. Airgas USA, LLC v. CTI Industries Corp., Case No. 01-20-0014-7852, was filed with the American Arbitration Association on or about September 8, 2020. The claim sought $212,000, plus interest, attorneys’ fees and costs for breach of contract. Airgas agreed to give the Company an extension to respond to the claim so the parties could attempt to settle it. On February 10, 2021, Airgas accepted the Company’s offer to pay $125,000 over 10 months. The balance as of September 30, 2021 and December 31, 2020 amounted to $62,500 and $125,000, respectively. Benchmark Investments, Inc. v. Yunhong CTI Ltd., Case No. 1:21-cv-02279, was filed a case in the United States District Court for the Southern District of New York on March 16, 2021 and served on the Company on March 31, 2021. The complaint seeks damages in excess of $500,000. The Company has filed its Answer and Counterclaim to the complaint. The matter is currently still pending. The Company is currently unable to estimate the probability of any potential loss and thus no accrual has been recorded.

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- Definition The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 + Details
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