Yunhong Green CTI Ltd. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

Total assets increased to $20,619,000 as of September 30, 2024, up from $17,247,000 at the end of 2023. However, current assets decreased to $10,408,000 from $13,019,000, primarily due to a significant drop in cash and cash equivalents, which fell from $921,000 to $5,000. The company’s total liabilities also decreased to $10,686,000 from $13,515,000, while total stockholders’ equity rose significantly to $9,933,000 from $3,732,000.

Net sales for the three months ended September 30, 2024, were $2,540,000, an increase from $1,923,000 in the same period of 2023. For the nine-month period, net sales rose to $11,788,000 from $11,033,000. The increase in sales was driven by higher revenues from foil balloon products, which saw sales rise to $8,493,000 for the nine months, compared to $8,113,000 in 2023. However, the company reported a net loss of $(1,193,000) for the three months ended September 30, 2024, compared to a loss of $(967,000) in the prior year. For the nine months, the net loss increased to $(2,182,000) from $(720,000).

The company’s operational cash flow improved, with net cash provided by operating activities amounting to $862,000 for the nine months, compared to a cash outflow of $(442,000) in 2023. However, cash used in financing activities increased to $(1,476,000) from cash provided of $496,000 in the previous year.

Strategically, Yunhong Green CTI acquired production assets valued at $6.25 million through its subsidiary in China on June 30, 2024, in exchange for 5 million shares of common stock. This acquisition is part of the company’s focus on expanding its production capabilities. The company has also faced challenges, including impacts from the COVID-19 pandemic, supply chain issues, and inflationary pressures, which are expected to continue affecting operations.

As of September 30, 2024, the company had a cumulative net loss of approximately $26 million since inception and expressed substantial doubt about its ability to continue as a going concern for the next year. Management plans to raise additional capital through equity sales and borrowing to address financial needs. The company’s stock has been under scrutiny from Nasdaq for not meeting the minimum bid price requirement, with a deadline set for April 2025 to regain compliance.