Yunhong Green CTI Ltd. reported its financial results for the six months ended June 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of June 30, 2024, total assets increased to $21.6 million from $17.2 million at the end of 2023. This growth was primarily driven by a rise in property, plant, and equipment, which grossed $25.8 million, up from $21.5 million. However, current assets decreased from $13.0 million to $11.2 million, with cash and cash equivalents plummeting from $921,000 to $22,000. Total liabilities also decreased from $13.5 million to $10.5 million, while total stockholders’ equity surged from $3.7 million to $11.1 million.

In terms of revenue, net sales for Q2 2024 reached $4.4 million, a slight increase from $4.1 million in Q2 2023. For the first half of 2024, net sales totaled $9.2 million, compared to $9.1 million in the same period last year. The company’s gross profit for Q2 2024 was $692,000, up from $514,000 in Q2 2023, although gross profit for the first half of 2024 decreased to $1.6 million from $1.6 million in the prior year. Operating expenses rose to $863,000 in Q2 2024 from $804,000 in Q2 2023, leading to a loss from operations of $(171,000), an improvement from $(290,000) in the prior year. However, the net loss for Q2 2024 widened to $(414,000) from $(149,000) in Q2 2023, and the first half of 2024 saw a net loss of $(989,000), contrasting with a net income of $247,000 in the same period of 2023.

Strategically, the company acquired production assets through a wholly-owned subsidiary in China, issuing 5 million shares of common stock valued at $6.25 million. This acquisition is expected to enhance operational capabilities. Additionally, the company raised $500,000 through preferred stock issuance during the first half of 2024, a move not seen in the previous year.

Cash flow from operations improved significantly, with a net cash provided of $108,000 for the first half of 2024, compared to $(1.4 million) in the same period of 2023. However, the company continues to face challenges, including ongoing impacts from the COVID-19 pandemic, supply chain issues, and inflationary pressures, raising substantial doubt about its ability to continue as a going concern. The company’s credit facility, a primary source of liquidity, is set to mature on September 30, 2025.