Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

14. Related Party Transactions

Stephen M. Merrick is of counsel to a law firm from which we received legal services during the year. Mr. Merrick is both a director and a shareholder of the Company. Legal fees paid to this firm were $127,000 and $154,000 for the years ended December 31, 2011 and 2010, respectively.

John H. Schwan, Chairman of the Company, is a principal of Shamrock Packaging and affiliated companies. The Company made payments for of packaging materials, rent and temporary employees from Shamrock of approximately $2,019,000 and $2,076,000 during the years ended December 31, 2011 and 2010, respectively.

John H. Schwan, Chairman of the Company, is an owner of White Horse Production, Inc. The Company made payments for website services from White Horse of approximately $15,000 and $21,000 during the years ended December 31, 2011 and 2010, respectively.

John H. Schwan, Chairman of the Company, and Howard W. Schwan, President of the Company, are the brothers of Gary Schwan, an owner of Schwan Incorporated which provides building maintenance and remodeling services to the Company. The Company made payments to Schwan Incorporated of approximately $37,000 and $44,000 during the years ended December 31, 2011 and 2010, respectively.

During the period from January 2003 to the present, John H. Schwan, Chairman of the Company, and Stephen M. Merrick, Executive Vice President and Chief Financial Officer, have made loans to the Company and to Flexo which have outstanding balances, for the Company of $1,425,000 and $1,420,000 (net of discount of $0 and $5,000, respectively) and for Flexo of $104,000 and $351,000 as of December 31, 2011 and 2010, respectively.

During 2011 and 2010, interest expense to these individuals on these outstanding loans was $112,000 and $217,000, respectively (see Notes 10 and 12).

As disclosed in Note 10, on February 1, 2006, two principal officers and shareholders of the Company each loaned to our Company the sum of $500,000 in exchange for Promissory Notes and five year warrants to purchase up to 151,515 shares of common stock of the Company at the price of $3.30 per share. On May 28, 2010, each of these officer/shareholders exercised the warrants to purchase 151,515 shares each of common stock of the Company in exchange for cancellation of indebtedness of the Company to them in the amount of the purchase price for the shares.

On October 1, 2008, the Company issued warrants to purchase 20,000 shares of common stock of the Company to both John Schwan and Stephen M. Merrick exercisable at the price of $4.80 per share (see Note 18).

During 2010, two entities owned by John H. Schwan and Stephen M. Merrick provided financing for the acquisition and construction of latex balloon production and related equipment (see Note 15).

Other Assets include amounts due to the Company from its employees. As of December 31, 2011 and 2010, the balance outstanding on these amounts was $29,000 and $213,000, respectively.

Items identified as Notes Payable Affiliates in the Company's Consolidated Balance Sheet as of December 31, 2011 include loans by shareholders to Flexo Universal totaling $112,000 as well as a loan to CTI Europe totaling $27,000.  The remaining balance of $1,000 represents loans from a number of various employees of Flexo Universal (see Note 12).