10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K/A

Amendment No. 1 to Form 10-K

(Mark One)

 x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2011

OR

 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________to_________

Commission File Number

000-23115

CTI INDUSTRIES CORPORATION

(Exact name of Registrant as specified in its charter)

Illinois	36-2848943
(State or other jurisdiction of	(I.R.S. Employer Identification Number)
incorporation or organization)

22160 N. Pepper Road
Barrington, Illinois	60010
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (847) 382-1000

Securities Registered pursuant to sections 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, No Par	NASDAQ Capital Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No þ     

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No þ     

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ     No o

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes þ     No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  þ     

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o     Accelerated filer  o    Non-accelerated filer  o Smaller Reporting Company þ 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o     No þ

Based upon the closing price of $5.25 per share of the Registrant’s Common Stock as reported on NASDAQ Capital Market tier of The NASDAQ Stock Market on June 30, 2011, the aggregate market value of the voting common stock held by non-affiliates of the Registrant was then approximately $8,911,000. (The determination of stock ownership by non-affiliates was made solely for the purpose of responding to the requirements of the Form and the Registrant is not bound by this determination for any other purpose.)

The number of shares outstanding of the Registrant’s Common Stock as of March 1, 2012 was 3,204,506 (excluding treasury shares).

DOCUMENTS INCORPORATED BY REFERENCE

Document	Part of Form 10-K into Which  Document Is Incorporated
None.

ANNUAL REPORT ON FORM 10-K/A

For the annual period ended December 31, 2011

EXPLANATORY NOTE

This Form 10-K/A is being filed by the Company solely to amend the Exhibit Index contained in the Form 10-K of the Company for the annual period ended December 31, 2011, filed on March 29, 2012. This Amendment No. 1 is filed to state that the Exhibit Index is amended to reflect that Exhibit Number 10.14, which contains a Trademark License Agreement between S.C. Johnson & Son, Inc. and CTI Industries Corporation dated December 14, 2011, has had portions of the Trademark License Agreement omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

This Amendment No. 1 contains only information for the annual period ended December 31, 2011. The sections and exhibits to the Form 10-K as originally filed are unchanged and continue in full force and effect as previously filed. This Amendment No. 1 speaks as of the date of the original filings of the Form 10-K and has not been updated to reflect events occurring subsequent to the original filing dates.

PART IV

Item No. 15 – Exhibits and Financial Statement Schedules

Exhibit
Number	Document
3.1*	Third Restated Certificate of Incorporation of CTI Industries Corporation (Incorporated by reference to Exhibit A contained in Registrant’s Schedule 14A Definitive Proxy Statement for solicitation of written consent of shareholders, as filed with the Commission on October 25, 1999)
3.2 *	By-Laws of CTI Industries Corporation (Incorporated by reference to Exhibit 3.2, contained in Registrant’s Form SB-2 Registration Statement (File No. 333-31969) effective November 5, 1997)
4.1*	Form of CTI Industries Corporation’s common stock certificate (Incorporated by reference to Exhibit 4.1, contained in Registrant’s Form SB-2 Registration Statement (File No. 333-31969) effective November 5, 1997)
10.1*	CTI Industries Corporation 1999 Stock Option Plan (Incorporated by reference to Appendix A contained in Registrant’s Schedule 14A Definitive Proxy Statement, as filed with the Commission on March 26, 1999)
10.2*	CTI Industries Corporation 2001 Stock Option Plan (Incorporated by reference to Appendix E contained in Registrant’s Schedule 14A Definitive Proxy Statement, as filed with the Commission on May 21, 2001)
10.3*	CTI Industries Corporation 2002 Stock Option Plan (Incorporated by reference to   Appendix A contained in Registrant’s Schedule 14A Definitive Proxy Statement, as filed with the Commission on May 15, 2002)
10.4*	CTI Industries Corporation 2007 Stock Incentive Plan (Incorporated by reference to Appendix A contained in Registrant’s Schedule 14A Definitive Proxy Statement, as filed with the Commission on April 30, 2007)
10.5*	CTI Industries Corporation 2009 Stock Incentive Plan (Incorporated by reference to Schedule A contained in Registrant’s Schedule 14A Definitive Proxy Statement, as filed with the Commission on April 30, 2009)

 *Filed with our Form 10K as filed on March 29, 2012.

10.6 *	Employment Agreement dated June 30, 1997, between CTI Industries Corporation and Howard W. Schwan (Incorporated by reference to Exhibit 10.9, contained in Registrant’s Form SB-2 Registration Statement (File No. 333-31969) effective November 5, 1997)
10.7*	License Agreement between Rapak, LLC and the Company dated April 28, 2006 (Incorporated by reference to Exhibit 10.1 contained in Registrant’s Report on Form 8-K dated May 3, 2006)
10.8*	Supply and License Agreement among Registrant and S.C. Johnson & Son, Inc. dated February 1, 2008 (Incorporated by reference to Exhibit 10.1 contained in Registrant’s Report on Form 8-K/A dated March 19, 2008)
10.9 *	Amendment to the License Agreement between Rapak, LLC and the Company dated May 6, 2008 (Incorporated by reference to Exhibit 10.1 contained in Registrant’s Report on Form 8-K dated May 8, 2008)
10.10*	Credit Agreement between Harris N.A. and CTI Industries Corporation dated April 29, 2010 (Incorporated by reference to Exhibit 10.2 contained in Registrant’s Report on Form 10-Q dated May 14, 2010)
10.11*	Mortgage and Security Agreement between Harris N.A. and the Company dated April 29, 2010 (Incorporated by reference to Exhibit 10.3 contained in Registrant’s Report on Form 10-Q dated May 14, 2010)
10.12*	Security Agreement between Harris N.A. and the Company dated April 29, 2010 (Incorporated by reference to Exhibit 10.4 contained in Registrant’s Report on Form 10-Q dated May 14, 2010)
10.13*	Pledge Agreement between Harris N.A. and the Company dated April 29, 2010 (Incorporated by reference to Exhibit 10.5 contained in Registrant’s Report on Form 10-Q dated May 14, 2010)
10.14*	Trademark License Agreement between S.C. Johnson & Son, Inc. and CTI Industries Corporation dated December 14, 2011. Portions redacted and filed separately with the SEC pursuant to a request for confidential treatment.
14*	Code of Ethics (Incorporated by reference to Exhibit contained in the Registrant’s Form 10-K/A Amendment No. 2, as filed with the Commission on October 8, 2004)
21*	Subsidiaries (description incorporated in Form 10-K under Item No. 1)
23.1*	Consent of Independent Registered Public Accounting Firm, Blackman Kallick, LLP
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended (filed herewith)
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended (filed herewith)

32* Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

*Filed with our Form 10K as filed on March 29, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:  September 11, 2012	CTI INDUSTRIES CORPORATION
	By:	/s/ Howard W. Schwan
		Howard W. Schwan, President
	By:	/s/ Stephen M. Merrick
		Stephen M. Merrick, Executive Vice
		President and Chief Financial Officer

XML

Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

18. Stockholders’ Equity

Stock Options

The Company has adopted GAAP USA which requires all stock-based payments to employees, including grants of employee stock options, to be recognized in the consolidated financial statements based on their grant-date fair values.

The Compensation Committee administers the stock-based plans. The exercise price for Incentive Stock Options (“ISO”) cannot be less than the fair value of the stock subject to the option on the grant date (110% of such fair value in the case of ISOs granted to a stockholder who owns more than 10% of the Company’s Common Stock). The exercise price of a Non-Qualified Stock Options (“NQSO”) shall be fixed by the Compensation Committee at whatever price the Committee may determine in good faith. Unless the Committee determines otherwise, options beginning with the 2007 Plan generally have a 4-year term with a 3-year vesting schedule. Unless the Committee provides otherwise, options terminate upon the termination of a participant’s employment, except that the participant may exercise an option to the extent it was exercisable on the date of termination for a period of time after termination. Officers, directors and employees of, and consultants to the Company, or any parent or subsidiary corporation selected by the Committee, are eligible to receive options under the Plan. Subject to certain restrictions, the Committee is authorized to designate the number of shares to be covered by each award, the terms of the award, the date on which and the rates at which options or other awards may be exercised, the method of payment, vesting and other terms.

The Company has applied the Black-Scholes model to value stock-based awards. That model incorporates various assumptions in the valuation of stock-based awards relating to the risk-free rate of interest to be applied, the estimated dividend yield and expected volatility of the Company’s Common Stock. The risk-free rate of interest is the U.S. Treasury yield curve for periods within the expected term of the option at the time of grant. The expected volatility is based on historical volatility of the Company’s Common Stock.

The valuation assumptions we have applied to determine the value of stock-based awards were as follows:

Historical stock price volatility: The Company used the weekly closing price to calculate historical annual volatility.

Risk-free interest rate: The Company bases the risk-free interest rate on the rate payable on US treasury securities in effect at the time of the grant.

Expected life: The expected life of the option represents the period of time options are expected to be outstanding. The Company uses an expected life of 2.8 years.

Dividend yield: The dividend yield is estimated to be 1.14%, based on the stock price at December 31, 2011.

Estimated forfeitures: When estimating forfeitures, the Company considers historical terminations as well as anticipated retirements.

The Company, at the discretion of the board, may issue options in excess of the total available, if options related to that stock plan are cancelled. In some cases, not all shares that are available to a stock plan are issued, as the Company is unable to issue options to a previous plan when a new plan is in place.

The Company’s pre-tax income for the fiscal year ended December 31, 2011 and 2010 includes approximately $134,000 and $131,000, respectively, of compensation costs related to share-based payments. As of December 31, 2011, there is $197,000 of unrecognized compensation expense related to non-vested stock option grants. We expect approximately $88,000, $59,000, $41,000 and $9,000 to be recognized during 2012, 2013, 2014 and 2015, respectively.

On March 19, 1999, the Board of Directors approved for adoption, effective May 6, 1999, the 1999 Stock Option Plan (“1999 Plan”). The 1999 Plan authorizes the grant of options to purchase up to an aggregate of 158,733 shares of the Company’s Common Stock. As of December 31, 2010, 148,223 options have been granted under the 1999 Plan and were fully vested at the time of grant. During 2010, 25,786 options were exercised and no options remain outstanding as of December 31, 2010.

On April 12, 2001, the Board of Directors approved for adoption, effective December 27, 2001, the 2001 Stock Option Plan (“2001 Plan”). The 2001 Plan authorizes the grant of options to purchase up to an aggregate of 119,050 shares of the Company’s Common Stock. As of December 31, 2011, 139,958 options (including cancelled shares re-issued under the Plan) have been granted and were fully vested at the time of grant; 7,500 remain outstanding. No options were exercised during 2011.

On April 24, 2002, the Board of Directors approved for adoption, effective October 12, 2002, the 2002 Stock Option Plan (“2002 Plan”). The 2002 Plan authorizes the grant of options to purchase up to an aggregate of 142,860 shares of the Company’s Common Stock. As of December 31, 2011, 123,430 options have been granted and were fully vested at the time of grant; 27,500 remain outstanding. No options were exercised during 2011.

On June 22, 2007, the Board of Directors approved for adoption, effective October 1, 2007, the 2007 Stock Incentive Plan (“2007 Plan”). The 2007 Plan authorizes the grant of options to purchase up to an aggregate of 150,000 shares of the Company’s Common Stock. On October 1, 2007, the company issued 74,000 options under the 2007 Plan. During 2008, the company issued an additional 77,500 options under the 2007 Plan. Under this plan, 46,000 options remain outstanding all of which are fully vested. During 2011, 40,000 options expired, 3,750 options were cancelled and 4,000 options were exercised.

Also under the 2007 Plan, in January 2010, the Company granted 14,250 restricted shares. During 2010, 7,125 shares had their restriction expire and the remaining 7,125 shares will have their restriction expire during 2011, the value of these shares were determined using the market value of the Company’s shares on the day the shares were issued.

On April 10, 2009, the Board of Directors approved for adoption, and on June 5, 2009, the shareholders of the Company approved the 2009 Stock Incentive Plan (“2009 Plan”). The 2009 Plan authorizes the issuance of up to 250,000 shares of stock or options to purchase stock of the Company. As of December 31, 2011, 82,000 options have been granted; 81,500 remain outstanding of which 5,625 are vested and 75,875 are not vested. During 2011, 500 options were cancelled and 8,000 options were granted. Of the total outstanding options, 22,500 have vesting schedule A, 29,000 have vesting schedule B, and 30,000 have vesting schedule C. Vesting schedules for the 2009 Plan are as follows:

Vesting Schedule A		Vesting Schedule B		Vesting Schedule C
25%	12 months	33%	24 months	50%	48 months
50%	24 months	67%	36 months	100%	57 months
75%	36 months	100%	48 months
100%	48 months

The following is a summary of options exercised during the years ended December 31:

	2011		2010
		Intrinsic		Intrinsic
	Shares	Value	Shares	Value
1999 Plan Options	-	$                -	25,786	$    15,333
2001 Plan Options	-	$                -	11,953	$     56,448
2002 Plan Options	-	$                -	1,000	$       2,630
2007 Plan Options	4,000	$        9,750	38,250	$   108,215

The following is a summary of the activity in the Company’s stock option plans and other options for the years ended December 31, 2011 and 2010, respectively:

	December 31, 2011		December 31, 2010
		Weighted Avg		Weighted Avg
	Shares	Exercise Price	Shares	Exercise Price
Exercisable, beginning of period	110,625	$3.36	180,269	$3.03
Granted	-	-	-	-
Vested	22,250	2.97	33,000	3.42
Exercised	(4,000)	2.49	(76,989)	2.80
Cancelled	(42,250)	4.78	(25,655)	2.78
Exercisable at the end of period	86,625	$2.61	110,625	$3.36

	December 31, 2011		December 31, 2010
		Weighted Avg		Weighted Avg
	Shares	Exercise Price	Shares	Exercise Price
Outstanding, beginning of period	202,750	$4.28	232,644	$3.04
Granted	8,000	5.96	74,000	6.19
Exercised	(4,000)	2.49	(76,989)	2.80
Cancelled	(44,250)	4.84	(26,905)	2.87
Outstanding at the end of period	162,500	$4.25	202,750	$4.61

At December 31, 2011, available options to grant were 87,500 under the 2009 Plan.

Significant option groups remained outstanding at December 31, 2011 and related weighted average grant date fair value, remaining life and intrinsic value information are as follows:

Options by	Options Outstanding							Options Vested
Grant Date		Shares	Wtd Avg	Remain. Life		Intrinsic Val	Shares		Wtd Avg	Remain. Life		Intrinsic Val
Dec 2005		35,000	$2.88	4.0	$	52,500	35,000	$	2.88	4.0	$	52,500
Oct 2008		2,500	$4.97	0.8	$	-	2,500	$	4.97	0.8	$	-
Nov 2008		43,500	$1.83	0.9	$	111,066	43,500	$	1.83	0.9	$	111,066
Dec 2010		73,500	$6.13	4.0	$	-	5,625	$	5.97	4.0	$	-
Jan 2011		8,000	$5.96	4.0	$	-	-	$	-	-	$	-
TOTAL		162,500	$4.25	3.1	$	163,566	86,625	$	2.61	2.3	$	163,566

Warrants

In February 2006, certain members of company management were issued warrants, which fully vested immediately, to purchase 303,030 shares of the Company’s Common Stock at an exercise price of $3.30 per share in consideration of their loaning the company $1,000,000. The fair value of the warrants granted on February 1, 2006, was $443,000 which was estimated at the date of grant using the Black-Scholes pricing model. On May 28, 2010, all of these warrants were exercised in exchange for note indebtedness.

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 (the market price of the stock on the date of the warrants) in consideration for the personal guarantees by each of up to $2 million in principal amount of the bank debt of the Company. On May 28, 2010, Mssrs. Schwan and Merrick exercised these warrants in exchange for outstanding indebtedness of the Company to them.

The following is a summary of the activity of the Company’s warrants for the years ended December 2011 and 2010:

			Weighted			Weighted
			Avg			Avg
	Dec. 31,		Exercise	Dec. 31,		Exercise
	2011		Price	2010		Price
Outstanding and Exercisable, beginning of period	-	$	-	343,030	$	3.47
Granted	-		-	-		-
Exercised	-		-	(343,030)		3.47
Cancelled	-		-	-		-
Outstanding and Exercisable at the end of period	-	$	-	-	$	-

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of CTI Industries Corporation, its wholly owned subsidiaries CTI Balloons Limited, CTF International S.A. de C.V., and CTI Helium, Inc. and its majority owned subsidiaries, Flexo Universal, CTI Mexico Corporation and CTI Europe, as well as the accounts of Venture Leasing S. A. de R. L. and Venture Leasing L.L.C. The last two entities have been consolidated as variable interest entities. All significant intercompany accounts and transactions have been eliminated upon consolidation.

Variable Interest Entities

The determination of whether or not to consolidate a variable interest entity under U.S. GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interest. To make these judgments, management has conducted an analysis of the relationship of the holders of variable interest to each other, the design of the entity, the expected operations of the entity, which holder of variable interests is most “closely associated” to the entity and which holder of variable interests is the primary beneficiary required to consolidate the entity. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a variable interest entity. Upon the adoption of amended accounting guidance applicable to variable interest entities on January 1, 2010, management continually reconsiders whether we are deemed to be a variable interest entity’s primary beneficiary who consolidates such entity. The Company has two entities that have been consolidated as variable interest entities.

Foreign Currency Translation

The financial statements of foreign subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities, the historical exchange rate for stockholders’ equity, and a weighted average exchange rate for each period for revenues and expenses. Translation adjustments are recorded in accumulated other comprehensive income (loss) as the local currencies of the subsidiaries are the functional currencies. Foreign currency transaction gains and losses are recognized in the period incurred and are included in the consolidated statements of operations.

Use of Estimates

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the amounts reported of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period in the financial statements and accompanying notes. Actual results may differ from those estimates. The Company’s significant estimates include valuation allowances for doubtful accounts, lower of cost or market of inventory, deferred tax assets, and recovery value of goodwill.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits and short term investments with original maturities of three months or less.

Accounts Receivable

Trade receivables are carried at original invoice amount less an estimate for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts, evaluating the individual customer receivables through consideration of the customer’s financial condition, credit history and current economic conditions and use of historical experience applied to an aging of accounts. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for a period over the customer’s normal terms. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received.

Inventories

Inventories are stated at the lower of cost or market. Cost is determined using standard costs which approximates costing determined on a first-in, first-out basis, to reflect the actual cost of production of inventories.

Production costs of work in process and finished goods include material, labor and overhead. Work in process and finished goods are not recorded in excess of net realizable value.

Property, Plant and Equipment

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred. Depreciation is computed using the straight-line method over estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line method over the lesser of the estimated useful life or the lease term. The estimated useful lives range as follows:

Building	25 - 30 years
Machinery and equipment	3 - 15 years
Projects that prolong the life and increase efficiency of machinery	3 - 5 years
Light Machinery	5 - 10 years
Heavy Machinery	10 - 15 years
Office furniture and equipment	5 - 8 years
Leasehold improvements	5 - 8 years
Furniture and equipment at customer locations	1 - 3 years

Light machinery consists of forklifts, scissor lifts, and other warehouse machinery. Heavy machinery consists of production equipment including laminating, printing and converting equipment. Projects in process represent those costs capitalized in connection with construction of new assets and/or improvements to existing assets including a factor for interest on funds committed to projects in process of $25,000 and $17,000 for the years ended December 31, 2011 and 2010, respectively. Upon completion, these costs are reclassified to the appropriate asset class.

Stock-Based Compensation

The Company has stock-based incentive plans which may grant stock option, restricted stock, and unrestricted stock awards.  The Company recognizes stock-based compensation expense based on the grant date fair value of the award and the related vesting terms.  The fair value of stock-based awards is determined using the Black-Scholes model, which incorporates assumptions regarding the risk-free interest rate, expected volatility, expected option life, and dividend yield.  See Note 18 for additional information.

Fair Value Measurements

GAAP USA defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements required under other accounting pronouncements.  See Note 4 for further discussion.

The Company accounts for derivative instruments in accordance with GAAP USA, which requires that all derivative instruments be recognized on the balance sheet at fair value. We enter into interest rate swaps to fix the interest rate on a portion of our variable interest rate debt to reduce the potential volatility in our interest expense that would otherwise result from changes in market interest rates. Our derivative instruments are recorded at fair value and are included in accrued liabilities of our consolidated balance sheet. Our accounting policies for these instruments are based on whether they meet our criteria for designation as hedging transactions, which include the instrument’s effectiveness, risk reduction and, in most cases, a one-to-one matching of the derivative instrument to our underlying transaction. Gains and losses from changes in fair values of derivatives that are not designated as hedges for accounting purposes are recognized in the consolidated statement of operations. We have no derivative financial instruments designated as hedges. Therefore, changes in fair value for the respective periods were recognized in the consolidated statement of operations.

Goodwill

The Company applies the provisions of GAAP USA, under which goodwill is tested at least annually for impairment. Goodwill on the accompanying balance sheets relates to the Company’s acquisition of Flexo Universal in a prior year as well as the investment in CTI Europe during the current reporting period. It is the Company’s policy to perform impairment testing for Flexo Universal annually as of December 31, or as circumstances change. An annual impairment review was completed and no impairment was noted for the years ended December 31, 2011 and 2010 (see Note 16). While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such cash flows could materially affect these evaluations.

Valuation of Long Lived Assets

The Company evaluates whether events or circumstances have occurred which indicate that the carrying amounts of long-lived assets (principally property, plant and equipment) may be impaired or not recoverable. The significant factors that are considered that could trigger an impairment review include: changes in business strategy, market conditions, or the manner of use of an asset; underperformance relative to historical or expected future operating results; and negative industry or economic trends. In evaluating an asset for possible impairment, management estimates that asset’s future undiscounted cash flows and appraised values to measure whether the asset is recoverable. The Company measures the impairment based on the projected discounted cash flows of the asset over its remaining life.

Deferred Financing Costs

Deferred financing costs are amortized on a straight line basis over the term of the loan. Upon a refinancing, existing unamortized deferred financing costs are expensed.

Income Taxes

The Company accounts for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when, management cannot determine, in its opinion, that it is more likely than not that the Company will recover that recorded value of the deferred tax asset. The Company is subject to U.S. Federal, state and local taxes as well as foreign taxes in the United Kingdom, Germany and Mexico. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested.

Unrecognized tax benefits are accounted for as required by GAAP USA which prescribes a more likely than not threshold for financial statement presentation and measurement of a tax position taken or expected to be taken in a tax return.  See Note 11 for further discussion.

Revenue Recognition

The Company recognizes revenue when title transfers upon shipment. Revenue from a transaction is not recognized until (i) a definitive arrangement exists, (ii) delivery of the product has occurred or the services have been performed and legal title and risk are transferred to the customer, (iii) the price to the buyer has been fixed or is determinable, and (iv) collectability is reasonably assured. In some cases, product is provided on consignment to customers. For these cases, revenue is recognized when the customer reports a sale of the product.

Research and Development

The Company conducts product development and research activities which include (i) creative product development and (ii) engineering. During the years ended December 31, 2011 and 2010, research and development activities totaled $728,000 and $443,000, respectively.

Advertising Costs

The Company expenses advertising costs as incurred. Advertising expenses amounted to $63,000 and $203,000 for the years ended December 31, 2011 and 2010, respectively.

XML

Schedule II Valuation and Qualifying Accounts:

12 Months Ended

Dec. 31, 2011

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Schedule II – Valuation and Qualifying Accounts:

The following is a summary of the allowance for doubtful accounts related to accounts receivable for the years ended December 31:

	2011		2010
Balance at beginning of year	$	59,000	$	57,000
Charged to expenses		21,000		8,000
Uncollectible accounts written off		(10,000)		(6,000)
Balance at end of year	$	70,000	$	59,000

The following is a summary of the allowance for excess inventory for the years ended December 31:

	2011		2010
Balance at beginning of year	$	376,000	$	342,000
Charged to expenses		8,000		42,000
Obsolete inventory written off				(8,000)
Balance at end of year	$	384,000	$	376,000

The following is a summary of property and equipment and the related accounts of accumulated depreciation for the years ended December 31:

	2011		2010
Cost Basis
Balance at beginning of year	$	33,539,000	$	32,088,000
Additions		1,377,000		2,061,000
Disposals		-		-
Balance at end of year	$	34,916,000	$	34,149,000
Accumulated depreciation
Balance at beginning of year	$	24,486,000	$	22,555,000
Depreciation		1,586,000		1,935,000
Disposals		-		-
Balance at end of year	$	26,072,000	$	24,490,000

XML

Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Contingencies Disclosure [Text Block]

21. Contingencies

The Company is not party to any lawsuits or claims.

XML

Nature of Business

12 Months Ended

Dec. 31, 2011

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. Nature of Business

Nature of Operations

CTI Industries Corporation, its United Kingdom subsidiary (CTI Balloons Limited), its Mexican subsidiaries (Flexo Universal, S.A. de C.V., CTI Mexico Corporation, S.A. de C.V. and CTF International S.A. de C.V.), its German subsidiary (CTI Europe GmbH) and CTI Helium, Inc. (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products.

XML

Consolidated Balance Sheets (USD $)	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents (VIE $11,000 and $38,000, respectively)	$ 338,523	$ 761,874
Accounts receivable, (less allowance for doubtful accounts of $70,000 and $59,000 respectively)	7,091,194	8,533,626
Inventories, net	13,338,317	10,368,037
Net deferred income tax asset	760,241	750,485
Prepaid expenses (VIE $10,000 and $0, respectively)	1,345,223	582,025
Other current assets (VIE $83,000 and $0, respectively)	427,471	430,042
Total current assets	23,300,969	21,426,089
Property, plant and equipment:
Machinery and equipment	24,333,989	22,900,460
Building	3,329,174	3,260,201
Office furniture and equipment	3,022,719	2,718,425
Intellectual property	432,070	345,092
Land	250,000	250,000
Leasehold improvements	415,663	443,630
Fixtures and equipment at customer locations	2,629,902	2,629,902
Projects under construction (VIE $0 and $587,000, respectively)	502,021	1,601,682
Property Plant Equipment and Intellectual Property Gross	34,915,538	34,149,392
Less : accumulated depreciation and amortization	(26,071,629)	(24,489,624)
Total property, plant and equipment, net	8,843,909	9,659,768
Other assets:
Deferred financing costs, net	42,986	63,634
Goodwill	1,033,077	1,033,077
Net deferred income tax asset	197,243	360,830
Other assets (due from related party $79,000 and $213,000, respectively)	197,338	317,990
Total other assets	1,470,644	1,775,531
TOTAL ASSETS	33,615,522	32,861,388
LIABILITIES AND EQUITY
Checks written in excess of bank balance	154,501	692,141
Trade payables (VIE $0 and $58,000, respectively)	6,359,757	4,307,358
Line of credit (VIE $0 and $700,000, respectively)	7,298,363	8,225,900
Notes payable - current portion (VIE $91,000 and $0, respectively)	362,927	276,667
Notes payable - officers, current portion, net of debt discount of $0 and $5,000	1,424,923	1,410,807
Capital lease - current portion	2,559	5,117
Notes Payable Affiliates - current portion	6,718	6,754
Accrued liabilities	2,079,246	3,027,298
Total current liabilities	17,688,994	17,952,042
Long-term liabilities:
Notes Payable - Affiliates	134,919	155,648
Notes payable, net of current portion (VIE $687,000 and $0, respectively)	3,932,032	2,611,127
Capital Lease	426	2,559
Notes payable - officers, subordinated	103,656	360,351
Total long-term liabilities	4,171,033	3,129,685
Equity:
Preferred Stock -- no par value 2,000,000 shares authorized 0 shares issued and outstanding	0	0
Common stock - no par value, 5,000,000 shares authorized, 3,276,633 and 3,209,475 shares issued and 3,137,348 and 2,808,720 outstanding, respectively	13,704,890	13,394,940
Paid-in-capital	950,968	817,138
Accumulated deficit	(368,122)	(693,651)
Accumulated other comprehensive loss	(2,285,679)	(1,592,798)
Less: Treasury stock, 72,127 shares	(141,289)	(141,289)
Total CTI Industries Corporation stockholders' equity	11,860,768	11,784,340
Noncontrolling interest	(105,273)	(4,679)
Total Equity	11,755,495	11,779,661
TOTAL LIABILITIES AND EQUITY	$ 33,615,522	$ 32,861,388

XML

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 383,316	$ 1,753,268
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,804,049	1,909,497
Amortization of debt discount	5,042	90,994
Change in value of swap agreement	158,090	0
Stock based compensation	133,830	131,010
Provision for losses on accounts receivable	20,714	8,219
Provision for losses on inventories	8,032	41,742
Deferred income taxes	153,830	(43,104)
Change in assets and liabilities:
Accounts receivable	1,144,953	(1,092,959)
Inventories	(3,308,400)	(626,056)
Prepaid expenses and other assets	(753,267)	(336,137)
Trade payables	2,218,733	1,099,336
Accrued liabilities	(1,150,949)	279,854
Net cash provided by operating activities	817,973	3,215,664
Cash flows from investing activities - purchases of property, plant and equipment	(1,106,907)	(2,007,286)
Cash received from investment in subsidiary	0	42,299
Net cash used in investing activities	(1,106,907)	(1,964,987)
Cash flows from financing activities:
Change in checks written in excess of bank balance	(535,524)	(44,012)
Net change in revolving line of credit	(208,251)	(72,771)
Repayment of long-term debt (related parties $268,000 and $432,000)	(506,272)	(1,721,084)
Proceeds from issuance of debt	970,523	726,965
Proceeds from exercise of stock options and warrants	9,950	139,947
Proceeds from issuance of stock, net	300,000	0
Dividends paid	(158,381)	(314,441)
Cash paid for deferred financing fees	(7,510)	(90,066)
Net cash used in financing activities	(135,465)	(1,375,462)
Effect of exchange rate changes on cash	1,048	16,213
Net decrease in cash and cash equivalents	(423,351)	(108,572)
Cash and cash equivalents at beginning of year	761,874	870,446
Cash and cash equivalents at end of year	338,523	761,874
Supplemental disclosure of cash flow information:
Cash payments for interest	767,965	855,738
Cash payments for taxes	42,250	116,054
Supplemental Disclosure of non-cash investing and financing activity
Exercise of Warrants and payment of Subordinated Debt	0	1,027,000
Exercise of Options and Warrants by Surrender of Shares	0	240,579
Property, Plant & Equipment acquisitions funded by liabilities	49,248	35,020
Inventory used as investment in subsidiary	0	101,400
Reclassification of Line of Credit to Long-Term Debt	$ 700,000	$ 0

XML

Variable Interest Entities ("VIE") and Transactions

12 Months Ended

Dec. 31, 2011

Variable Interest Entities [Abstract]

Variable Interest Entities and Transactions [Text Block]

15. Variable Interest Entities (“VIE”) and Transactions

During 2010, two entities owned by officers and principal shareholders of the Company (John H. Schwan and Stephen M. Merrick) provided financing for Flexo Universal, the Company’s Mexico subsidiary, for the acquisition and construction of latex balloon production and related equipment. The entities included Venture Leasing L.L.C., (“VLUS”), an Illinois limited liability company which is 100% owned by an entity owned by Mr. Schwan and Mr. Merrick, and Venture Leasing Mexico S. A. de R. L (“VLM”), a Mexico company which is also owned 100% by entities owned by Mr. Schwan and Mr. Merrick. The Company is the primary beneficiary of VLUS & VLM and accordingly consolidated the result of the entities in its financial statements.

Mr. Schwan and Mr. Merrick, through entities owned by them, arranged for a line of credit in the amount of $1,000,000 from Barrington Bank in order to loan monies to VLUS as needed. During 2010, VLUS received advances on this line totaling $700,000. VLUS loaned substantially all of these funds to VLM. VLM utilized the funds to purchase materials, parts, components and services for the acquisition and construction of balloon production and related equipment to be placed at the premises of Flexo Universal. Assembly and construction of this equipment was completed on or about December 31, 2010 and, in January 2011, the equipment has been placed in service at Flexo Universal.

Title to the equipment remains in the name of VLM. VLM leases the equipment to Flexo Universal under a three-year lease under which Flexo Universal will pay to VLM rental payments at the rate of approximately $9,000 per month and will have the right to purchase the equipment from VLM at the expiration of the lease at fair market value. The Company has not provided any guarantees related to VLUS or VLM and no creditors of the variable interest entities have recourse to the general credit of the Company as a result of including VLUS & VLM in the consolidated financial statements.

The accounts of VLM and VLUS have been consolidated with the accounts of the Company for 2011 and 2010 and will be consolidated in the future.

	Dec. 31, 2011		Dec. 31, 2010
Current Assets	$	104,926	$	132,576
Property, plant and equipment, net		550,315		586,536
Other noncurrent assets		773,913		710,038
Total assets	$	1,429,154	$	1,429,150
Mortgages and other long-term debt payable	$	1,488,285	$	1,434,852
Total liabilities	$	1,488,285	$	1,434,852

XML

Commitments

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure [Text Block]

17. Commitments

Operating Leases

The Company’s United Kingdom subsidiary maintains a lease for office and warehouse space which expires December 2014 at a cost of $5,000 per month. In August 2011, Flexo Universal entered into a 5-year lease to rent 73,000 square feet of warehouse and office space in Guadalajara, Mexico at the cost of $30,000 per month. In September 2010, the Company’s German subsidiary entered into a 3-year lease to rent approximately 3,000 square feet of office and warehouse space in Heusenstamm, Germany at a cost of $2,000 per month. The Company leases office and warehouse equipment under operating leases, which expire on various dates through September 2012. All of the Company’s lease payments are recognized on a straight-line basis as none of the leases have escalation clauses.

The net lease expense was $683,000 and $553,000 for the years ended December 31, 2011 and 2010, respectively.

The future aggregate minimum net lease payments under existing agreements as of December 31, are as follows:

2012	$	866,000
2013		616,000
2014		597,000
2015		503,000
2016		269,000
Thereafter		-
Total	$	2,851,000

Licenses

The Company has certain merchandising license agreements, which are of a one to two year duration that require royalty payments based upon the Company’s net sales of the respective products. The agreements call for guaranteed minimum commitments that are determined on a calendar year basis. Future guaranteed commitments due, as computed on a pro rata basis, as of December 31, are as follows:

2012 $ 152,000

XML

Consolidated Statements of Cash Flows [Parenthetical] (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Repayment of related party debt (in dollars)	$ 268,000	$ 432,000

XML

Consolidated Balance Sheets [Parenthetical] (USD $)	Dec. 31, 2011	Dec. 31, 2010
Cash and cash equivalents	$ 338,523	$ 761,874
Allowance for doubtful accounts	70,000	59,000
Prepaid expenses	1,345,223	582,025
Other current assets	427,471	430,042
Projects under construction	502,021	1,601,682
Due from related party	79,000	213,000
Trade payables	6,359,757	4,307,358
Line of credit	7,298,363	8,225,900
Notes Payable, Current	362,927	276,667
Debt discount, Notes payable - officers, subordinated, Noncurrent	0	5,000
Notes payable, net of current portion	3,932,032	2,611,127
Preferred Stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	5,000,000	5,000,000
Common stock, shares issued (in shares)	3,276,633	3,209,475
Common stock, shares outstanding (in shares)	3,137,348	2,808,720
Treasury stock, shares (in shares)	72,127	72,127
Variable Interest Entity, Primary Beneficiary [Member]
Cash and cash equivalents	11,000	38,000
Prepaid expenses	10,000	0
Other current assets	83,000	0
Projects under construction	0	587,000
Trade payables	0	58,000
Line of credit	0	700,000
Notes Payable, Current	91,000	0
Notes payable, net of current portion	$ 687,000	$ 0

XML

Subordinated Debt

12 Months Ended

Dec. 31, 2011

Disclosure Text Block [Abstract]

Subordinated Borrowings Disclosure [Text Block]

10. Subordinated Debt

In February 2003, the Company received $1,630,000 from certain shareholders in exchange for (i) 9% subordinated notes and (ii) five year warrants to purchase 163,000 common shares at $4.87 per share. The proceeds were to (i) re-finance the bank loan of CTI Mexico in the amount of $880,000 and (ii) to provide financing for CTI Mexico and Flexo Universal. The value of the warrants was $460,000 calculated using Black-Scholes option pricing formula. The Company applied the discount against the subordinated debt. The discount wasamortized using the effective interest method to interest expense over the term of the debt. These loans are subordinated to the bank debt of the Company. On February 8, 2008 those shareholders exercised these warrants in exchange for a reduction on these notes of $794,000. The remaining balance of $33,000 is due on demand.

In February 2006, the Company received $1,000,000 from certain shareholders in exchange for (i) five year subordinated notes bearing interest at 2% over the prime rate determined on a quarterly basis and (ii) five year warrants to purchase an aggregate of 303,030 shares of common stock of the Company at the price of $3.30 per share. The proceeds were to fund capital improvements and give additional liquidity to the Company. The value of the warrants was $443,000 using the Black-Scholes option pricing formula. The Company applied the discount against the subordinated debt. The discount wasamortized using the effective interest method to interest expense over the term of the debt. These loans are subordinated to the bank debt of the Company. On May 28, 2010, these shareholders exercised all of these warrants in exchange for note indebtedness. The remaining balance of $597,000 is due on demand.

At various times from 2003 to 2005, certain shareholders loaned an aggregate of $814,000 to the Company in exchange for notes bearing interest at an annual rate of 8%. These notes are subordinated to the bank loan of the Company. The remaining balance of $795,000 is due on demand.

At various times from 2003 to 2006, certain shareholders loaned amounts to the Company in exchange for notes bearing interest of 8.5%.  These notes are subordinated to the bank loan of the Company.  The remaining balance of $104,000 is due in 2013.

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Mar. 01, 2012	Jun. 30, 2011
Entity Registrant Name	CTI INDUSTRIES CORP
Entity Central Index Key	0001042187
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ctib
Entity Common Stock, Shares Outstanding		3,204,506
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2011
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 8,911,000

XML

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

11. Income Taxes

The income tax provisions are comprised of the following: :

	Dec. 31 2011		Dec. 31 2010
Current:
Federal	$	-	$	-
State		15,851		-
Foreign		149,763		385,792
	$	165,614	$	385,792
Deferred
Federal	$	228,524	$	(43,104)
State		-		-
Foreign		(74,694)		-
		153,830		(43,104)
Total Income Tax Provision	$	319,444	$	342,688

The components of the net deferred tax asset at December 31 are as follows:

	2011		2010
Deferred tax assets:
Allowance for doubtful accounts	$	11,682	$	13,748
Inventory allowances		181,170		141,244
Accrued liabilities		70,765		92,095
Unicap 263A adjustment		151,625		145,035
Net operating loss carryforwards		955,717		975,327
Alternative minimum tax credit carryforwards		351,619		351,619
State investment tax credit carryforward		30,512		30,512
Foreign tax credit carryforward		298,635		298,636
Other foreign tax items		246,473		247,035
Foreign asset tax credit carryforward		-		(80,368)
Total deferred tax assets		2,298,198		2,214,883
Deferred tax liabilities:
Book over tax basis of capital assets		(1,175,615)		(943,582)
Other foreign tax items		(165,099)		(159,986)
Net deferred tax assets	$	957,484	$	1,111,315

The Company maintained a valuation allowance with respect to deferred tax assets as a result of the uncertainty of ultimate realization as of December 31, 2009. At December 31, 2011 and 2010, the Company believes that it is more likely than not that it will utilize all of its net operating loss carry forwards and no longer requires a valuation allowance. The Company has a net operating loss carryforwards of approximately $2,730,000 expiring in various years through 2025. In addition, the Company has approximately $352,000 of alternative minimum tax credits as of December 31, 2011, which have no expiration date.

Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows:

	Years Ended December 31,
	2011		2010
Taxes at statutory rate	$	245,966	$	733,585
State income taxes		43,395		100,983
Nondeductible expenses		57,772		55,871
Decrease in deferred tax valuation allowance		-		(528,988)
Foreign taxes and other		(27,689)		(18,763)
Income tax provision	$	319,444	$	342,688

The Company files tax returns in the U.S. federal and U.K, Germany and Mexico foreign tax jurisdictions and various state jurisdictions. The tax years 2006 through 2010 remain open to examination. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the twelve months ended December 31, 2011 and 2010, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2011 and 2010, as the Company does not believe it has taken any uncertain tax positions.

XML

Consolidated Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Net Sales	$ 47,171,498	$ 47,747,611
Cost of Sales	37,965,245	37,145,439
Gross profit	9,206,253	10,602,172
Operating expenses:
General and administrative	5,278,507	4,921,457
Selling	910,882	914,698
Advertising and marketing	1,579,162	1,719,509
Total operating expenses	7,768,551	7,555,664
Income from operations	1,437,702	3,046,508
Other (expense) income:
Interest expense	(794,152)	(936,769)
Interest income	21,041	17,599
Foreign currency gain (loss)	38,169	(31,382)
Total other expense, net	(734,942)	(950,552)
Income before taxes	702,760	2,095,956
Income tax expense	319,444	342,688
Net Income	383,316	1,753,268
Less: Net loss attributable to noncontrolling interest	(100,594)	(74,250)
Net income attributable to CTI Industries Corporation	483,910	1,827,518
Other Comprehensive Income
Unrealized gain on derivative instruments	0	188,615
Foreign currency adjustment	(692,881)	22,029
Comprehensive (loss) income attributable to CTI Industries Corporation	$ (208,971)	$ 2,038,162
Basic income per common share (in dollars per share)	$ 0.15	$ 0.61
Diluted income per common share (in dollars per share)	$ 0.15	$ 0.60
Weighted average number of shares and equivalent shares of common stock outstanding:
Basic (in shares)	3,138,958	2,981,188
Diluted (in shares)	3,181,102	3,039,442

XML

Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2011

Stockholders Equity Note [Abstract]

Comprehensive Income (Loss) Note [Text Block]

5. Other Comprehensive (Loss) Income

The following table sets forth the tax effects of components of other comprehensive (loss) income and the accumulated balance of other comprehensive (loss) income and each component.

Tax Effects Allocated to Each Component of Other Comprehensive (Loss) Income
for the years ended December 31, 2011 and 2010
		Tax
	Before-Tax	(Expense)	Net-of-Tax
	Amount	or Benefit	Amount
2011
Foreign currency translation adjustments	$      (692,881)	$                -	$      (692,881)
Unrealized gain on derivative instruments	-	-	-
Other comprehensive loss	$      (692,881)	$                -	$      (692,881)
		Tax
	Before-Tax	(Expense)	Net-of-Tax
	Amount	or Benefit	Amount
2010
Foreign currency translation adjustments	$          22,029	$                -	$             22,029
Unrealized gain on derivative instruments	188,615	-	188,615
Other comprehensive income	$        210,644	$                -	$           210,644
Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2011
			Accumulated
	Foreign	Unrealized	Other
	Currency	Gain (Loss) on	Comprehensive
	Items	Derivatives	Income (Loss)
Beginning balance	$     (1,592,798)	$                -	$     (1,592,798)
Current period change	(692,881)	-	(692,881)
Ending balance	$     (2,285,679)	$                -	$     (2,285,679)
Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2010
			Accumulated
	Foreign	Unrealized	Other
	Currency	Gain (Loss) on	Comprehensive
	Items	Derivatives	Income (Loss)
Beginning balance	$    (1,614,827)	$      (188,615)	$       (1,803,442)
Current period change	22,029	188,615	210,644
Ending balance	$     (1,592,798)	$            -	$        (1,592,798)

For the years ended December 31, 2011 and 2010, no tax benefit has been recorded on the foreign currency translation adjustments, as such amounts would result in a deferred tax asset and the associated long-term intercompany balances are not currently expected to be repaid in the foreseeable future.

XML

Fair Value Disclosures; Derivative Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Derivatives and Fair Value [Text Block]

4. Fair Value Disclosures; Derivative Instruments

GAAP USA clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. GAAP USA also requires that a fair value measurement reflect the assumptions market participants would use in pricing an asset or liability based upon the best information available.

GAAP USA establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows:

• Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets are liabilities in active markets.

• Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs are observable for the asset or liability, or unobservable but corroborated by market data, for substantially the full term of the financial instrument.

• Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of the input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The following table presents information about the Company’s liabilities measured at fair value on a recurring basis as of December 31, 2011 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

	Amount as of
Description	12/31/2011		Level 1		Level 2		Level 3
Interest Rate Swap 2011	$	141,000	$	-	$	141,000	$	-
	$	141,000			$	141,000

As of December 31, 2010, the Company did not maintain any swap agreements.

The Company’s interest rate swap agreements were valued using the counterparty’s mark-to-market statement, which were validated using modeling techniques that include market inputs such as publically available interest rate yield curves, and were designated as Level 2 within the valuation hierarchy.

GAAP USA requires an entity to recognize all derivatives as either assets or liabilities in the consolidated balance sheet and to measure those instruments at fair value. Under certain conditions, a derivative may be specifically designated as a fair value hedge or a cash flow hedge.

As a result of the use of derivative instruments, the Company was exposed to risk that the counterparty might fail to meet their contractual obligations. Recent adverse developments in the global financial and credit markets could have negatively impacted the creditworthiness of our counterparty and caused them to fail to perform as expected. To mitigate the counterparty credit risk, we only entered into contracts with a major financial institution based upon their credit ratings and other factors, and continually assessed the creditworthiness of the counterparty. The counterparty performed in accordance with their contractual obligations.

On July 1, 2011, we entered into a swap agreement with BMO Capital Markets with respect to $6,780,000 of our loan balances with Harris. This swap agreement limits the Company’s exposure to interest rate fluctuations on the Company’s floating rate loans. The swap agreement has the effect of fixing the interest rate on the loan balances covered by the swap at 4.65% per annum. The swap agreement is a derivative financial instrument and we determine and record the fair value of the swap agreement each quarter. This value is recorded on the balance sheet of the Company and the amount of the unrealized gain or loss for each period is recorded as interest income or expense on the statement of operations, as the swap is not designated as a hedge for accounting purposes.

Fair Values of Derivative Instruments in the Consolidated Balance Sheets
		Liability Derivatives
As of	December 31	2011		2010
	Derivatives not designated as hedging instruments under Statement 133	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
	Interest Rate Contracts	Accrued Liabilities	$           141,000	Accrued Liabilities	$             -

The Effect of Derivative Instruments on the Consolidated Statements of Operations
for the 12 month
period ending	December 31	2011		2010
	Derivatives not Designated as Hedging Instruments under Statement 133	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative
	Interest Rate Contracts	Interest Expense	* $ (181,000)	Interest Expense	** $(208,000)

* Includes interest of $41,000 associated with variances between fixed and variable rates.

** Designated as a cash flow hedge.

XML

Goodwill

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure [Text Block]

16. Goodwill

Under the provisions of GAAP USA, goodwill is subject to at least annual assessments for impairment by applying a fair-value based test. GAAP USA also requires that an acquired intangible asset should be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, licensed, rented or exchanged, regardless of the acquirer’s intent to do so. The Company has no acquired intangible assets other than goodwill.

As of December 31, 2011 and 2010, we determined that the fair value of the Company’s interest in goodwill related to Flexo Universal as recorded was not impaired. The carrying amount of goodwill as of December 31, 2011 and 2010 was $989,000.

During 2010, the Company purchased an additional interest of $101,000 in its German subsidiary, CTI Europe, and recorded $44,000 of goodwill in the transaction.  We have determined that the fair value of the Company's interest in the goodwill related to CTI Europe was not impaired as of December 31, 2011 and 2010.

XML

Notes Payable Affiliates

12 Months Ended

Dec. 31, 2011

Notes Payable Affiliates [Abstract]

Notes Payable Affiliates Disclosure [Text Block]

12. Notes Payable Affiliates

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.

XML

Notes Payable and Capital Leases

12 Months Ended

Dec. 31, 2011

Debt Disclosure [Abstract]

Debt and Capital Leases Disclosures [Text Block]

8. Notes Payable and Capital Leases   

Long term debt consists of:

		Dec. 31, 2011		Dec. 31, 2010
Term Loan with Barrington Bank, payable in monthly installments of $11,000 amortized over 7 years, interest at 6.25%, balance due May 2016, which uses balloon production and related equipment as collateral.	$	779,000	$	-
Term Loan with Harris, payable in monthly installments of $58,333 plus interest at prime (3.25%) plus a premium rate (based on loan covenants) of 0.50% (3.75%) at December 31, 2010 (amortized over 10 months), balance due January 31, 2011.		-		117,000
Mortgage Loan with Harris, payable in monthly installments of $7,778 plus interest at prime (3.25%) plus a premium rate (based on loan covenants) of 0.75% (4.00%) and 0.50% (3.75%) at December 31, 2011 and 2010, respectively (amortized over 25 years), balance due April 30, 2013.		2,178,000		2,271,000
Equipment Loan with Harris, payable in monthly installments of $22,323 beginning May 2012 plus interest at prime (3.25%) plus a premium rate (based on loan covenants) of 0.75% (4.00%) at December 31, 2011, (amortized over 60 months), balance due April 30, 2013.  (2010) Equipment Loan with Harris, payable in monthly installments of $8,333 beginning May 2011 plus interest at prime (3.25%) plus a premium rate (based on loan covenants) of 0.50% (3.75%) at December 31, 2010, (amortized over 60 months), balance due April 30, 2013.		1,339,000		500,000
Capital Lease with Yale Financial Services, payable in monthly installments of $574 (amortized over 5 years).		3,000		8,000
Subordinated Notes (Officers) due on demand, interest at 9% (see Notes 10, 14).		33,000		33,000
Subordinated Notes (Officers) due on demand, interest at 8% (see Notes 10, 14).		795,000		795,000
Subordinated Notes (Officers) due on demand, interest at prime (3.25%) plus 2% (5.25%) at December 31, 2011 and 2010, net of debt discount of $0 and $5,000 at December 31, 2011 and 2010, respectively (See Note 10).		597,000		592,000
Subordinated Notes (Officers) due 2013, interest at 8.5% (see Note 10).		104,000		351,000
Notes Payable (Affiliates) due 2015, interest at prime (3.25%) plus 0.25% (3.50%) at December 31, 2011 and 2010.		28,000		28,000
Notes Payable (Affiliates) due 2021, interest at 11.75%.		112,000		134,000
Total long-term debt		5,968,000		4,829,000
Less current portion		(1,797,000)		(1,692,000)
Total Long-term debt, net of current portion	$	4,171,000	$	3,137,000

On April 29, 2010, the Company entered into a Credit Agreement and associated documents with Harris N.A. (“Harris”) under which Harris agreed to extend to the Company a credit facility in the aggregate amount of $14,417,000. The facility includes (i) a Revolving Credit providing for maximum advances to the Company, and letters of credit, based upon the level of availability measured by levels of eligible receivables and inventory of the Company of $9,000,000, (ii) an Equipment Loan of up to $2,500,000 providing for loans for the purchase of equipment, (iii) a Mortgage Loan of $2,333,350, and (iv) a Term Loan in the amount of $583,333. The amount we can borrow on the Revolving Credit includes 85% of eligible accounts and 60% of eligible inventory (up to a maximum of $9,000,000). The Mortgage Loan is amortized over a term of 25 years. The maturity date of the facility is April 30, 2013. As of December 31, 2011 the balance outstanding on the Revolving Line of credit with Harris was $7,144,000, which bears interest of 4%, leaving an available balance of $2,106,000.

On April 30, 2010, the loan transaction was closed and loan advances were made by Harris in the aggregate amount of $11,964,739 to pay off all loan balances and lease obligations of the Company with RBS Citizens, N.A. and RBS Asset Finance, Inc. The advances included $8,548,000 under the Revolving Credit and $500,000 under the Equipment Loan.

Certain terms of the loan agreement, as amended, include:

· Restrictive Covenants: The Loan Agreement includes several restrictive covenants under which we are prohibited from, or restricted in our ability to:

o Borrow money;

o Pay dividends and make distributions;

o Make certain investments;

o Use assets as security in other transactions;

o Create liens;

o Enter into affiliate transactions;

o Merge or consolidate; or

o Transfer and sell assets.

· Financial Covenants: The Loan Agreement includes a series of financial covenants we are required to meet including:

o We are required to maintain a tangible net worth (plus Subordinated Debt) in excess of $7,100,000 plus 50% of cumulative net income of the Company after January 1, 2010;

o We are required to maintain specified ratios of senior debt to EBITDA on an annual basis and determined quarterly; and,

o We are required to maintain a level of adjusted EBITDA to fixed charges on an annual basis determined quarterly of not less than 1.1 to 1. Adjusted EBITDA is EBITDA minus (i) taxes paid, (ii) dividends paid, (iii) payments for the purchase or redemption of stock, and (iv) unfunded capital expenditures.

As of December 31, 2011, the Company was in compliance with these covenants.

John H. Schwan and Stephen M. Merrick each, as officers, directors and principal shareholders of the Company have each personally guaranteed the obligations of the Company to Harris up to $1,750,000. In the agreement, the amount of the maximum liability to each decreases to $1,500,000 if the senior leverage ratio requirement is met. At December 31, 2011 and 2010, the Company had met this requirement (see Note 14).

Future minimum principal payments for amounts outstanding under these long-term debt agreements for each of the years ended December 31 are:

2012	$	1,797,000
2013		3,356,000
2014		118,000
2015		158,000
2016		396,000
Thereafter		143,000
Total	$	5,968,000

XML

Major Customers

12 Months Ended

Dec. 31, 2011

Major Customers Disclosure [Abstract]

Major Customers Disclosure [Text Block]

6. Major Customers

For the year ended December 31, 2011, the Company had three customers that accounted for approximately 28.8%, 12.2% and 9.4% of consolidated net sales. In 2010, the top three customers accounted for approximately 28.7%, 14.2% and 12.3%. At December 31, 2011, the outstanding accounts receivable balances due from these three customers were $2,390,000, $746,000 and $0, respectively. At December 31, 2010, the outstanding accounts receivable balances due from these three customers were $3,599,000, $389,000 and $224,000, respectively.

XML

Inventories

12 Months Ended

Dec. 31, 2011

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

7. Inventories

Inventories are stated at the lower of cost or market. Cost is determined using standard costs which approximate costing determined on a first-in, first out basis. Standard costs are reviewed and adjusted periodically and at year end based on actual direct and indirect production costs. On a periodic basis, the Company reviews its inventory for estimated obsolescence or unmarketable items, primarily by reviewing future demand requirements and shelf life of the product.

Inventories are comprised of the following:

		December 31, 2011		December 31, 2010
Raw materials	$	3,027,000	$	2,588,000
Work in Process		1,503,000		685,000
Finished Goods		9,193,000		7,471,000
Allowance for excess quantities		(384,000)		(376,000)
Total inventories	$	13,339,000	$	10,368,000

XML

Current Liabilities

12 Months Ended

Dec. 31, 2011

Accrued Liabilities Disclosure [Abstract]

Accrued Liabilities Disclosure [Text Block]

9. Current Liabilities

As of December 31, 2011 and 2010, Accrued Liabilities include $139,000 and $137,000 in payroll accruals, respectively.

XML

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).

XML

Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

19. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period.

Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and equivalents (stock options and warrants), unless anti-dilutive, during each period.

For the three months ended December 31, 2011, 84,000 shares were anti-dilutive (not included in the determination of earnings on a diluted basis), all of which were represented by options. For the twelve months ended December 31, 2011, 81,500 shares were anti-dilutive, all of which were represented by options. For the three months ended December 31, 2010, there were no anti-dilutive shares. For the twelve months ended December 31, 2010, 6,228 shares were anti-dilutive, all of which were represented by options.

Consolidated Earnings per Share

	Year Ended December 31,
	2011		2010
Basic
Average shares outstanding:
Weighted average number of shares outstanding during the period		3,138,958		2,981,188
Earnings:
Net income attributable to CTI Industries Corporation	$	483,910	$	1,827,518
Amount for per share Computation	$	483,910	$	1,827,518
Net earnings applicable to Common Shares	$	0.15	$	0.61
Diluted
Average shares outstanding:		3,138,958		2,981,188
Weighted averages shares Outstanding Common stock equivalents (options, warrants)		42,144		58,254
Weighted average number of shares outstanding during the period		3,181,102		3,039,442
Earnings:
Net income attributable to CTI Industries Corporation	$	483,910	$	1,827,518
Amount for per share computation	$	483,910	$	1,827,518
Net income applicable to Common Shares	$	0.15	$	0.60

XML

Consolidated Statements of Stockholders' Equity and Comprehensive (Loss) Income (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Value Of Warrants Issued In Connection With Subordinated Debt [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2009	$ 3,764,020	$ 8,693,946	$ 443,313	$ (2,206,728)	$ (1,803,442)	$ (128,446)	$ 16,558	$ 8,779,221
Balance (in shares) at Dec. 31, 2009	2,808,720					(70,657)
Adjustment to Paid-in-Capital for no-par shares	8,007,819	(8,007,819)						0
Compensation relating to Option Issuance		71,992						71,992
Compensation relating to Stock Grants		59,019						59,019
Compensation relating to Stock Grants (in shares)	14,250
Options Exercised	215,526							215,526
Options Exercised (in shares)	76,989
Stock exchanged for cashless exercise of options	(62,730)					(12,843)		(75,573)
Stock exchanged for cashless exercise of options (in shares)	(10,723)					(1,470)
Warrants Exercised	1,191,999							1,191,999
Warrants Exercised (in shares)	343,030
Stock exchanged for cashless exercise of warrants	(165,007)							(165,007)
Stock exchanged for cashless exercise of warrants (in shares)	(22,791)
Reclass value of warrants exercised in connection with subordinated debt	443,313		(443,313)					0
Dividends Declared				(314,441)				(314,441)
Net Income				1,827,518			(74,250)	1,753,268
Noncontrolling interest in subsidiary							53,013	53,013
Other comprehensive income, net of taxes
Adjustment to accumulated balance on swap termination					188,615			188,615
Foreign currency translation					22,029			22,029
Total comprehensive income								1,963,912
Balance at Dec. 31, 2010	13,394,940	817,138	0	(693,651)	(1,592,798)	(141,289)	(4,679)	11,779,661
Balance (in shares) at Dec. 31, 2010	3,209,475					(72,127)
Stock Purchase	300,000							300,000
Stock Purchase (in shares)	63,158
Compensation relating to Option Issuance		133,830						133,830
Options Exercised	9,950							9,950
Options Exercised (in shares)	4,000
Dividends Declared				(158,381)				(158,381)
Net Income				483,910			(100,594)	383,316
Other comprehensive income, net of taxes
Foreign currency translation					(692,881)			(692,881)
Total comprehensive income								(309,565)
Balance at Dec. 31, 2011	$ 13,704,890	$ 950,968	$ 0	$ (368,122)	$ (2,283,682)	$ (141,289)	$ (105,273)	$ 11,755,495
Balance (in shares) at Dec. 31, 2011	3,276,633					(72,127)

XML

New Accounting Pronouncements

12 Months Ended

Dec. 31, 2011

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

3. New Accounting Pronouncements

In September 2011, the FASB issued Accounting Standards Update No. 2011-08 (“ASU 2011-08”) Intangibles – Goodwill and Other (Topic 350). Under ASU 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test. Under ASU 2011-08, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. We do not expect that ASU 2011-08 will have a material impact on our financial statements or related disclosures.

In June 2011, the Financial Accounting Standards Board (FASB) issued an amendment on the presentation of other comprehensive income. Under this amendment, entities will be required to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or two separate but consecutive statements. The current option to report other comprehensive income and its components in the statement of changes in equity has been eliminated. This amendment will be effective for the Company on January 1, 2012, and retrospective application is required. The Company does not anticipate that this amendment will have a material impact on its financial statements.

XML

Geographic Segment Data

12 Months Ended

Dec. 31, 2011

Geographic Segment Reporting Disclosure [Abstract]

Geographic Segment Reporting Disclosure [Text Block]

20. Geographic Segment Data

The Company’s operations consist of a business segment which designs, manufactures, and distributes film products. Transfers between geographic areas were primarily at cost plus a standard markup. The Company’s subsidiaries have assets consisting primarily of trade accounts receivable, inventory and machinery and equipment. Sales and selected financial information by geographic area for the years ended December 31, 2011 and 2010, respectively, are:

	United States	United Kingdom (UK)	Europe (Excluding UK)	Mexico	Consolidated
Year ended 12/31/11
Sales to outside customers	$     34,657,000	$    1,838,000	$     376,000	$  10,300,000	$   47,171,000
Total Assets	$     25,302,000	$       734,000	$     464,000	$    7,116,000	$   33,616,000
	United States	United Kingdom (UK)	Europe (Excluding UK)	Mexico	Consolidated
Year ended 12/31/10
Sales to outside customers	$     36,721,000	$    2,387,000	$     108,000	$   8,532,000	$   47,748,000
Total Assets	$     24,711,000	$       977,000	$     220,000	$   6,953,000	$   32,861,000

XML

Employee Benefit Plan

12 Months Ended

Dec. 31, 2011

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

13. Employee Benefit Plan

The Company has a defined contribution plan for substantially all employees. Profit sharing contributions may be made at the discretion of the Board of Directors. Effective January 1, 2006, the Company amended its defined contribution plan. Under the amended plan, the maximum contribution for the Company is 4% of gross wages. Employer contributions to the plan totaled $113,000 and $106,000 for the years ended December 31, 2011 and 2010, respectively.