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Note 23 - Discontinued Operations | 12 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 23. 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 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 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 were applied for all periods presented. The Company divested its CTI Balloons (United Kingdom) subsidiary in the fourth quarter 2019 and CTI Europe (Germany) subsidiary in the first half of 2021. 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 none and $7,000 for the years ended December 31, 2021 and2020, respectively. 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 will have a major effect on our operations and financial results on a go forward basis therefore, this product line has been presented as discontinued operations and was abandoned as of March 31, 2020. The Ziploc® product line recorded losses from discontinued operations, net of taxes of ($2,024,851) for the year ended December 31, 2020. The Ziploc® product line recorded income from discontinued operations, net of taxes of $1,111,452 for the year ended December 31, 2019. In October 2021, the Company sold its interest in Flexo Universal (its subsidiary in Mexico that manufactured latex balloons). This transaction was recorded during the fourth quarter of 2021. The Company recorded an expense of approximately $10 million associated with this transaction, as well as the reversal of previously recognized Other Comprehensive Income charges of approximately $6 million, for the year ended December 31, 2021. The Company received an aggregate of $245,000 from the sale date until December 31, 2021, part of the $500,000 it received in consideration of the sale As of December 31, 2021, the Company had a note receivable associated with the transaction of $255,000, which is expected to be collected over the course of 2022. 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
|  | December 31, 2021 |  |  | December 31, 2020 |
Income Statement |  |  |  |  |  |  |  |
Net Sales |  |  | 3,120,308 |  |  |  | 7,593,627 |
Cost of Sales |  |  | 3,539,732 |  |  |  | 7,746,582 |
Gross Margin |  |  | (419,424 | ) |  |  | (152,955 | )
SG&A |  |  | 808,456 |  |  |  | 2,039,612 |
Operating Income |  |  | (1,227,880 | ) |  |  | (2,192,567 | )
Other Income / (Expense) |  |  | 1,082,883 |  |  |  | (410,594 | )
Loss from discontinued operations |  |  | (144,996 | ) |  |  | (2,603,161 | )
Gain from classification to held for sale |  |  | 318,723 |  |  |  | 82,545 |
Net Loss prior to non-controlling interest |  |  | 173,727 |  |  |  | (2,520,616 | )
Non-controlling Interest share of income/loss |  |  | 70,476 |  |  |  | 135,202 |
Net Income / (Loss) |  |  | 103,251 |  |  |  | (2,655,818 | )
The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:
|  | December 31, 2021 |  |  | December 31, 2020 |
Balance Sheet |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |  |
Cash on hand and Banks |  |  | - |  |  |  | 301,517 |
Accounts Receivable |  |  | - |  |  |  | 3,361,236 |
Inventory |  |  | - |  |  |  | 3,697,734 |
Prepaid & Other |  |  | - |  |  |  | 1,541,037 |
TOTAL Current Assets |  |  | - |  |  |  | 8,901,525 |
NET Property, Plant, and Equipment |  |  | - |  |  |  | 151,639 |
Other Assets |  |  |  |  |  |  |  |
Operating lease right-of-use |  |  | - |  |  |  | 448,642 |
Other |  |  | - |  |  |  | 120,095 |
TOTAL Other Assets |  |  | - |  |  |  | 568,737 |
TOTAL Non-Current Assets |  |  | - |  |  |  | 568,737 |
Valuation Allowance on Assets Held for Sale |  |  | - |  |  |  | (250,664 | )
TOTAL Assets |  |  | - |  |  |  | 9,219,598 |
Liabilities |  |  |  |  |  |  |  |
Current Liabilities |  |  |  |  |  |  |  |
Trade Accounts Payable |  |  | - |  |  |  | 2,220,771 |
Operating Lease Liabilities - Current |  |  | - |  |  |  | 372,630 |
Other/Accrued Liabilities |  |  | - |  |  |  | 2,000,552 |
TOTAL Current Liabilities |  |  | - |  |  |  | 4,593,953 |
Non-Current Liabilities |  |  |  |  |  |  |  |
Operating Lease Liabilities - Non Current |  |  | - |  |  |  | 76,013 |
Other Non-Current |  |  | - |  |  |  | 36,705 |
TOTAL Non-Current Liabilities |  |  | - |  |  |  | 112,718 |
TOTAL Liabilities |  |  | - |  |  |  | 4,706,671 |

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