UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 7)* CTI Industries Corporation (Name of Issuer) Common Stock, No Par Value (Title of Class of Securities) 125961 30 0 (CUSIP Number) Check the follow box if a fee is being paid with this statement. (A fee is not required only if the filing person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in Item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of five percent or less of such class.) (see Rule 13d-7) *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP NO. 125961 30 0 13G Page 2 of 7 Pages -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON. S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Stephen M. Merrick -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)_______ (b)_______ -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION United States -------------------------------------------------------------------------------- NUMBER OF 5. SOLE VOTING POWER 438,544 SHARES -------------------------------------- BENEFICIALLY 6. SHARED VOTING POWER 87,214 OWNED BY -------------------------------------- EACH 7. SOLE DISPOSITIVE POWER 438,544 REPORTING -------------------------------------- PERSON 8. SHARED DISPOSITIVE POWER 87,214 WITH -------------------------------------------------------------------------------- CUSIP NO. 125961 30 0 13G Page 3 of 7 Pages 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 525,758 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 25.11% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON* IN -------------------------------------------------------------------------------- CUSIP NO. 125961 30 0 13G Page 4 of 7 Pages ITEM 1. (a) Name of Issuer CTI Industries Corporation (b) Address of Issuer's Principal Executive Offices 22160 North Pepper Road Barrington, Illinois 60010 ITEM 2 (a) Name of Person Filing Stephen M. Merrick (b) Address of principal Business Office or, if none, Residence 22160 North Pepper Road Barrington, Illinois 60010 (c) Citizenship United States (d) Title of Class of Securities Common Stock, No Par Value (e) CUSIP Number 125961 30 0 ITEM 3 N/A ITEM 4 OWNERSHIP (a) Amount Beneficially Owned 525,758 (b) Percent of Class 25.11% CUSIP NO. 125961 30 0 13G Page 5 of 7 Pages (c) Number of shares as to which such person has: (i) sole power to vote or to direct the vote 438,544 (ii) shared power to vote or to direct the vote 87,214 (iii)sole power to dispose or to direct the disposition of 438,544 (iv) shared power to dispose or to direct the disposition of 87,214 ITEM 5 OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS. N/A ITEM 6 OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON. N/A ITEM 7 IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY. N/A ITEM 8 IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP. N/A ITEM 9 NOTICE OF DISSOLUTION OF GROUP. N/A CUSIP NO. 125961 30 0 13G Page 6 of 7 Pages ITEM 10 CERTIFICATION. N/A CUSIP NO. 125961 30 0 13G Page 7 of 7 Pages SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. The filing of this statement shall not be construed as an admission that the undersigned is for the purpose of Section 13(d) or 13(g) of the Act, the beneficial owner of any securities covered by this statement. January 31, 2005 -------------------- Date /s/Stephen M. Merrick -------------------- Stephen M. Merrick