Note 24 - Subsequent Events

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

24.

  

Subsequent Events

In

October 2020,

the Company received

$1,500,000

as an advance from LF International Pte. is a related party which is controlled by the Company's CEO and director Mr. Yubao Li (LF International) for an investment to be made in the Company. During

January 2021,

the Company finalized the stock purchase agreement with LF International, pursuant to which the Company agreed to issue and sell, and LF International agreed to purchase, up

to170,000

shares of the Company's newly created Series C Convertible Preferred Stock,

no

par value per share (“Series C Preferred”), with each share of Series C Preferred initially convertible into

ten

shares of the Company's common stock, at a purchase price of

$0.88

per share, for aggregate gross proceeds of

$1,500,000.

  As of

December 31, 2020,

the advance was classified as a current liability on the consolidated balance sheet.

During the

first

quarter of

2021

all remaining warrants were exercised and

103,104

shares of common stock issued. 

Benchmark Investments, Inc. v. Yunhong CTI Ltd filed a case in the United States District Court for the Southern District of New York on

March 16, 2021

and served on CTI on

March 31, 2021. 

CTI has through

April 21, 2021

to file its response to the complaint.  The complaint seeks damages in excess of

$500,000.

During

March 2021

the Company relocated its light assembly and warehousing operation from Lake Zurich, IL to Elgin, IL.